Search results

This study aims to investigate the effect of the classification of origin country of institutional shareholder (domestic, developed and developing country) and its status on stock exchange (listed and unlisted) on environmental disclosure level in Indonesian companies.

The data set comprises 474 non-financial firms listed in Indonesian Stock Exchange (IDX) for the period of 2017 to 2019. The study uses an environmental disclosure checklist to measure the extent of environmental disclosure in companies’ reports. Panel regression analysis technique is adopted to investigate the association between total percentage of shares held by institutional shareholders based on the classification of origin country and the status in stock exchange, and the extent of environmental disclosure.

The study reveals that the extent of environmental disclosure is positively and significantly associated with institutional investors from domestic, developed countries, listed and unlisted institutional investors. Further analysis shows interesting results that institutions from developing countries have a negative and significant relationship with environmental disclosure in non-sensitive industries.

The authors recognize the issue of authors’ subjectivity in the measurement process of environmental disclosure. The sample for this study encompasses Indonesian listed firms. Thus, the results may not be generalized to Indonesian unlisted firms and other countries or regions.

This study suggests managers to engage more with institutional shareholders because they have greater concern for environmental disclosure practices. The current study also suggests managers to make strong environmental policies as they are important to ensure that institutional shareholders’ investments are safe.

Given the positive impact institutional shareholders have on the level of environmental disclosure, it indirectly indicates that institutional shareholders have a strong motivation to make the world a better place.

This study offers in-depth insights into the effect of institutional ownership on environmental disclosure based on the classification of origin country and listing status of institutional investors.

This paper aims to examine Indonesia Stock Exchange (IDX)-listed companies’ society disclosures.

Year-ending 2012 annual report disclosures of 75 IDX-listed companies are analyzed. The widely acknowledged Global Reporting Initiative guidelines are used as the disclosure index checklist.

The results show a relatively low level of voluntary society disclosure (40.27 per cent). The highest level of communication is for issues related to society programs. Very few companies disclosed information about public policy, donations to political parties and actions taken in response to corruption incidents. Statistical analysis reveals that company size is a positively significant predictor of “society” communication. Ethical stakeholder theory partially explains the variability of these disclosures.

The main implication of the findings is that Indonesian companies are not involved in the public policy-making process. Companies also probably attempt to hide certain information regarding corruption issues to protect their image and reputation.

This paper provides insights into the disclosure practices of society issues, a specific social disclosure theme which is rarely examined in prior literature, within the framework of ethical stakeholder theory. The research also includes corruption issues to be investigated in the disclosure analysis.

The purpose of this paper is to examine the factors explaining voluntary occupational health and safety disclosures (OHSDs).

Annual report disclosures of 223 Indonesia Stock Exchange listed companies for the year ending 2007 are analyzed. The OHSD components of the 2006 Global Reporting Initiative guidelines are used as the disclosure index checklist.

The results show that approximately 30 percent of Indonesian listed companies provide OHSD. The most disclosed item is health and safety programs. Logistical regression analysis reveals that industry type and international operations significantly influence the propensity to provide OHSD. These findings suggest that coercive isomorphism partially explains OHSD practices in Indonesia.

The main implications of the findings are that Indonesian listed companies generally have poor health and safety information disclosure sets and largely ignore the potential roles of their workers in any health and safety committees.

This paper provides insights into the disclosure practices of occupational health and safety issues, a vital subset of corporate social responsibility disclosure which is still under-researched. The paper also empirically investigates the key determinants of OHSD, an empirical test which is largely ignored in past OHSD-related studies.

This paper aims to examine the Indonesian Stock Exchange-listed (IDX-listed) companies’ human rights disclosures.

The year-ending 2012 annual report disclosures of 75 IDX-listed companies are analyzed. The Global Reporting Initiative (GRI) guidelines are used as the disclosure index checklist.

The results show a low level of voluntary human rights disclosure (36.74 per cent). The highest level of communication is for assessment issues. Very few companies disclosed information about child labor and forced and compulsory labor. Statistical analysis reveals that board size significantly influences “human rights” communication in a positive direction. Company size, one of the control variables in this study, is also found to be positively significant. The managerial stakeholder theory partially explains the variability of these disclosures.

The main implication of the findings is that key stakeholders do not see the importance of human rights issues to be disclosed, except for commissioners. It seems that commissioners have the spirit of the United Nation Guiding Principles (UNGPs), requiring companies to respect human rights in daily business operations. Another implication is that companies may attempt to hide certain information regarding child labor and forced and compulsory labor.

This paper provides insights into the disclosure practices of human rights issues in Indonesia. The paper also investigates the key determinants of human rights disclosures, an empirical test which is largely ignored in previous human rights reporting studies. This paper highlights the potency of commissioners in campaigning and promoting the importance of social responsibility on human rights for corporate sustainability.

This paper aims to examine the extent of ethical values information disclosure on the top 100 Malaysian and Indonesian companies’ annual reports using coercive isomorphism under the institutional theory.

Using the content analysis, the presence or exclusion of ethical values information disclosed on 100 Malaysian and Indonesian companies’ annual reports using a newly developed Ethical Values Disclosure Index is carried out.

The results of the analysis found that Indonesian companies on average disclosed 31 items under study compared to 27 items disclosed by the companies in Malaysia. The results suggest that Indonesian companies are more vigilant in the code of ethics, companies policy on ethical issues, monitoring program and accountability, ethical performance, ethical infrastructure and organizational responsibility aspects, whereas their Malaysian counterparts are better in reporting governance and integrity committee or board of directors.

The findings may not be applicable to other countries in the same region, nevertheless, revealed the importance of adequate ethical values disclosure in determining the level of ethical behavior.

Companies in Indonesia are coercively pressed by various influential stakeholder groups to address ethical issues. The less disclosure regarding corporate ethical behavior may indicate that unethical practices continue to be a problem in the Malaysian corporate sector.

This paper adds to the literature by examining the elements of ethical values adapted mainly from the professional bodies that regulate the accounting profession and other organizations using the institutional theory, particularly in two countries.

The purpose of this paper is to investigate the process by which the level of immersion in virtual reality-based behavioral simulation (VR-BS) impacts on the non-cognitive and cognitive outcomes. The cognitive outcome is measured using the increase in the level of Sharia financial literacy, while the noncognitive outcome is measured using the behavioral intention to use VR-BS.

The method consists of two parts: First, the development of VR-BS, in the context of sharia financial literacy, using the waterfall model. Second, testing the effectiveness of VR-BS using the theory of interactive media effects framework. The participants were 142 students from three secondary schools (two Islamic religious schools and one public school) in Yogyakarta and Central Java, Indonesia. Partial least squares structural equation modeling was used for testing the hypotheses.

VR-BS creates a perceived coolness and vividness, which in turn has an impact on increasing the participants’ engagement. Also, the use of VR has an impact on natural mapping, which increases a user’s engagement through its perceived ease of use. As predicted, the user’s engagement affects VR’s behavior, mediated by the user’s attitude toward VR media. VR’s interactivity, however, does not impact on the cognitive aspect.

The participants were not randomly selected, as the data were collected during the COVID-19 pandemic. As a result, the majority of the participants had never tried VR before this study. The participants, however, were digital natives.

It is implied from the findings that Islamic financial business actors and the relevant government agencies (e.g. the Indonesian Financial Services Authority [OJK], the Ministry of Education, Culture, Research and Technology and the Ministry of Religious Affairs) should collaborate to best prepare the future generation of ummah by using VR-BS in their joint promotion and education programs. The results of the current study reveal that the use of VR-BS may attract people to engage in Islamic financial activities. By engaging in such activities, or at least engaging in real-life simulations/classes/workshops, people may gradually acquire more knowledge about Islamic finance.

As predicted, the user’s engagement has an impact on behavior toward VR-BS, which is mediated by attitude toward VR-BS.

This study aims to advance explanations of the communication level of labor disclosures of Indonesian listed companies.

Year‐ending 2007 Annual report disclosures of 223 Indonesia Stock Exchange (IDX) listed companies are analyzed. The labor practices and decent work disclosure component of the 2006 Global Reporting Initiative (GRI) guidelines are used as the benchmark disclosure index checklist.

The results show a low level of voluntary disclosure (17.7 per cent). The highest level of communication is for issues related to skills management and lifelong learning programs for employees. Very few companies disclosed information about health and safety committee and agreements, and salary of men to women. Statistical analysis reveals that government ownership and international operations are positively significant predictors of “labour” communication. Isomorphic institutional theory partially explains the variability of these disclosures. Bigger companies also provide more labor practices and decent work disclosures.

The main implications of the findings are that Indonesian companies are not clearly communicating labor responsibility issues as a key precondition of corporate social responsibility (CSR). They may be obfuscating some information to protect their image and reputation.

This paper provides insights into the disclosure practices of labor issues, a specific social disclosure theme which is rarely examined in prior literature, under the umbrella of institutional theory. The research also includes “goal factor” to be tested as one of the independent variables.

This paper aims to focus on corporate social responsibility and workplace well-being by examining Indonesian Stock Exchange (IDX)-listed companies’ labour disclosures.

Year-ending 2007 and 2010 annual report disclosures of 31 IDX-listed companies are analysed. The widely acknowledged Global Reporting Initiative (GRI) guidelines are used as the disclosure index checklist.

The results reveal that the overall labour disclosure level increases from 21.84 per cent in 2007 to 30.52 per cent in 2010. The levels of four of the five specific labour disclosures also increase with employment being the exception. The results further show that the Indonesian Government does not influence the increase in the levels of the overall labour disclosure or the four categories showing increased disclosure but, surprisingly, does significantly affect the decrease in the level of the employment category.

It is implied that the government is at best ambiguous given that, on one side, the government regulates all corporate social responsibility (CSR) activities and reporting but appears to coercively pressure companies to hide employment-specific issues.

It is implied that Indonesian companies need to have “strong and influential” independent commissioners on the boards to counter any possible pressures from the government resulting in lower disclosure levels.

This paper provides insights into the “journey” of labour-related CSR disclosure practices in Indonesia and contributes to the literature by testing one specific variant of isomorphic institutional theory, namely, coercive isomorphism.