Antecedents and Consequences of Corporate Social Responsibility Disclosure in Perspective Legitimation Theory

Abstract

Corporate social responsibility can affect financial performance and indirectly provide positive social information to keep corporate legitimacy in society. The current research aims to empirically demonstrate the impact of environmental performance and environmental costs on financial performance through the disclosure of corporate social responsibility. The research population is primary consumer goods companies listed on the Indonesia Stock Exchange in 2017–2021. The sampling technique was purposive sampling. The analytical methods used were descriptive statistical analysis, classical assumption tests, and hypothesis tests. Results show that environmental performance has no impact on financial performance. Meanwhile, environmental costs have a positive impact on financial performance; corporate social responsibility disclosure has a positive impact on financial performance; and environmental performance has no impact on financial performance through corporate social responsibility disclosures. Corporate Social Responsibility discloses environmental costs and financial performances. Keywords: environmental performance, environmental costs, disclosure of corporate social responsibility and financial performance