Albert Hasudungan and Risa Bhinekawati
This study aims to investigate the influence of corporate social responsibility (CSR) disclosure on asymmetric information and return on investment (RoI) in Indonesia. The…
Abstract
Purpose
This study aims to investigate the influence of corporate social responsibility (CSR) disclosure on asymmetric information and return on investment (RoI) in Indonesia. The research specifically assesses the effects of CSR disclosure along with other independent variables such as total assets, return on equity, capital expenditures, net profit margin and sales growth on asymmetric information and RoI.
Design/methodology/approach
The study applied a panel econometric regression model to examine and test the effects of CSR disclosure and financial indicators on asymmetric information and RoI. A total of 275 samples were garnered from private and state-owned publicly listed companies selected in the SRI-Kehati index as sustainable firms in Indonesia from 2009 to 2019. Those listed companies in the SRI-Kehati index have market recognition and are able to maintain sustainability practices in their business doings. Asymmetric information was calculated by measuring the spread of market share prices. CSR disclosure was measured with global reporting initiative standards. Other variables did not require calculation.
Findings
This study discerns the significant influence of CSR disclosure on asymmetric information and RoI on the listed firms of the SRI-Kehati Index in Indonesia. To articulate, the more transparent CSR disclosure is, the asymmetric information should be lower. Besides that, more comprehensive CSR disclosure is associated with a better corporate return of investment. In scrutinizing the control variables, this research validates the significant influence of corporate assets and sales revenue on both dependent variables.
Research limitations/implications
This research has some limitations that require further research. First, the research was conducted in Indonesia. However, other Southeast Asian markets may have their own uniqueness. Therefore, further research is needed in other specific Southeast Asian countries. Second, the sampling bounds on the corporation which gained sustainable recognition in SRI-Kehati Index. Future studies can extend more observation by comparing SRI-Kehati index to firms, which are not listed in the index.
Practical implications
This study recommends better capital market monitoring and evaluation to improve the quality of the firms’ reports in both business and social aspects. By investing more in philanthropic and social activities, firms can signal the market credibility to their various external stakeholders on their market adjustment to changing external business environment.
Social implications
As for society, robust CSR disclosures will facilitate investors’ understanding of the conditions before making an investment in public listed companies. At the same time, companies issuing the disclosures are expected by society to perform responsibly, as illuminated in the report. As a result, the CSR disclosures will create a virtuous cycle of sustainability between the company and the society.
Originality/value
First, this research reinforces the global corporate governance concern to urge more corporate disclosures on firm performance in an Indonesian context. Second, this study fills the research gap on the association of CSR disclosure to asymmetric information in Indonesian literature. Third, the findings underpin the integration of social responsibility on the firms’ core business decision-makings to warrant business credibility to all firms’ stakeholders in Indonesia.
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Albert Hasudungan and Harriman Samuel Saragih
This study aims to explore the relationship between personal innovativeness, perceived symbolic value and green purchase intentions within the context of sustainable consumption…
Abstract
Purpose
This study aims to explore the relationship between personal innovativeness, perceived symbolic value and green purchase intentions within the context of sustainable consumption. Specifically, it investigates how personal innovativeness influences both green purchase intentions and perceived symbolic value and examines whether perceived symbolic value mediates the relationship between personal innovativeness and green purchase intentions.
Design/methodology/approach
Using a survey-based quantitative approach, data were collected from a sample of Indonesian consumers using online panels via SurveyMonkey®. The study used Rogers’ diffusion theory to conceptualize personal innovativeness and drew on theories of symbolic consumption to frame perceived symbolic value. Partial least square structural equation modeling was used to test the proposed hypotheses and explore the relationships among the constructs.
Findings
The results indicate that personal innovativeness positively affects green purchase intentions and enhances the perceived symbolic value of green products. Moreover, perceived symbolic value influences green purchase intentions and partially mediates the relationship between personal innovativeness and green purchase intentions. These findings underscore the critical role of symbolic value in the adoption of green products and highlight personal innovativeness as a key driver in sustainable consumer behavior.
Originality/value
This research contributes to the sustainable consumption literature by integrating personal innovativeness with symbolic value considerations in green purchasing decisions, offering a novel insight into how individual traits and product symbolism interact to influence consumer behavior in the context of environmental sustainability.
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Albert Hasudungan and Harriman Samuel Saragih
Using a hierarchical component model conceptualization, this study aims to investigate the moderating role of perceived corporate social responsibility (CSR) dimensions (i.e.…
Abstract
Purpose
Using a hierarchical component model conceptualization, this study aims to investigate the moderating role of perceived corporate social responsibility (CSR) dimensions (i.e., economic, environmental and social) on the impact of brand awareness towards consumer relationship intention.
Design/methodology/approach
This study used a two-stage disjoint approach of partial least squares structural equation modeling using data from 325 respondents based in a Southeast Asian region. The case of ecolabel brands was chosen as the context of the investigation.
Findings
The results suggest that brand awareness and perceived CSR dimensions positively impact consumer relationship intention. It was also observed that perceived CSR dimensions moderate the relationship between brand awareness and relationship intention. Consumers with more favorable sentiments of economic, environmental and social dimensions as reflected by the firms' CSR programs exhibit a higher degree of relationship intention.
Research limitations/implications
Using the stakeholder theory as well as the brand value chain framework, this study adds to the literature regarding the significance of perceived CSR dimensions to better build and maintain relationships with the targeted customers of an environmentally friendly product. CSR strategies should be emphasized for relevant companies in terms of the economic, environmental and social aspects. According to this research, customer views about the three CSR initiative characteristics may act as a moderator in the interactions between consumer awareness and relationship intention.
Practical implications
CSR may be utilized in addition to traditional marketing communication to represent the firm's unique value proposition in the market. It is vital to create a CSR program that combines economic, environmental and social factors. Firms may collaborate with various stakeholders to ensure that their CSR initiatives include three elements.
Originality/value
This study adds to the literature on the moderating role of perceived CSR dimensions on the relationship of consumer brand awareness and relationship intention using the theoretical lens of the stakeholder theory and the brand value chain.