Social and Environment Disclosure in Indonesia: Does the Ownership matter?

Abstract

Research aims: This study aims to analyze the effect of ownership structure on social and environmental disclosure in annual reports of companies in Indonesia.Design/Methodology/Approach: This study uses 208 panel data from 52 companies in the plantation and agriculture, mining, and real estate and building construction sectors. The dependent variable in this study was obtained by analyzing the content of the company's annual report. The hypothesis in this study was tested with multiple linear regression.Research findings: The results of the regression test show that institutional ownership and managerial ownership have an effect on social and environmental disclosure, while multiple share ownership (MLSS) is found to have no effect on social and environmental disclosure.Theoretical contribution/ Originality: This study enrich the literature about social and environment disclosure with new approach named SEDI. In addition, This research contributes to the scrutiny about the effect of dual ownership structure (MLSS) on social and environmental disclosure, especially in the Indonesian context. This study provides empirical evidence on the influence of ownership structure on social and environmental disclosure. Research limitation/Implication: This research is only limited to companies that have a lot of contact with social and environmental, namely mining, agriculture and real estate and building construction. Meanwhile, other companies are expected to be scrutinized in future research.