Determinants of Islamic Social Reporting: Analysis of the Characteristics of Energy Companies in Indonesia
DOI:
https://doi.org/10.18326/ijier.v7i2.5518Keywords:
Firm Characteristics, Firm age, Pandemic Covid-19, Islamic Social ReportingAbstract
This study aims to obtain evidence regarding the factors influencing the level of Islamic Social Responsibility disclosure in energy companies. The population of this study were energy companies listed on the Indonesian Sharia Stock Index, covering the period 2019-2023. The sample was determined using a purposive sampling technique and a sample size of 20 companies. Data were analyzed using a panel regression with a fixed effect approach. The company characteristics tested included environmental performance, profitability, leverage, firm size, and good corporate governance mechanisms. Control variables were firm age and the COVID-19 pandemic. The results showed that environmental performance, profitability, firm size, and good corporate governance significantly influenced Islamic social responsibility. Meanwhile, leverage, firm age, and the COVID-19 pandemic did not influence Islamic social responsibility. This finding is in line with legitimacy theory, which states that companies disclose Islamic social responsibility (ISR) to maintain a positive public perception. This finding is also in line with sharia enterprise theory, which explains that good internal company characteristics will encourage accountability to God, humans, and the environment through ISR disclosure. The results of this study also strengthen stakeholder theory, where companies respond to stakeholder demands for transparency and social responsibility through ISR disclosure.
References
Affandi, H., & Nursita, M. (2019). Profitabilitas, Likuiditas, Leverage, dan Ukuran Perusahaan: Sebuah Analisis Islamic Social Reporting (ISR) pada Perusahaan yang Terdaftar di JII. Majalah Ilmiah Bijak. 16(1), 1-11. https://doi.org/10.31334/bijak.v16i1.318
Anggraini, A., & Wulan, M. (2019). Faktor Financial -Non Financial Dan Tingkat Pengungkapan Islamic Social Reporting (ISR). Jurnal Akuntansi dan Keuangan Islam, 3(2), 161-184. https://doi.org/10.35836/jakis.v3i2.35
Embuningtiyas, S. S., Puspasari, O. R., Utama, A. A. G. S., & Ardianti, R. I. (2020). Bank financial soundness and the disclosure of banking sustainability reporting in Indonesia. International Journal of Innovation, Creativity and Change, 10(12), 237-247.
Haniffa, R. (2002). Social Reporting Disclosure: An Islamic Perspective. Indonesian Management & Accounting Research, 1(2), 128-146.
Hussain, A., Khan, M., Rehman, A., Sahib Zada, S., Malik, S., Khattak, A., & Khan, H. (2021). Determinants of Islamic social reporting in Islamic banks of Pakistan. International Journal of Law and Management, 63(1), 1–15. https://doi.org/10.1108/IJLMA-02-2020-0060
Indrawaty, & Wardayati, S. M. (2016). Implementing Islamic Corporate Governance (ICG) and Islamic Social Reporting (ISR) in Islamic Financial Institution (IFI). Procedia - Social and Behavioral Sciences, 219, 338–343. https://doi.org/10.1016/j.sbspro.2016.04.042
Jannah, A., & Asrori, A. (2016). Pengaruh GCG, Size, Jenis Produk dan Kepemilikan Saham Publik Terhadap Pengungkapan ISR. Accounting Analysis Journal, 5(1). https://doi.org/10.15294/aaj.v5i1.9758
Jati, K. W., Agustina, L., Muliasari, I., & Armeliza, D. (2020). Islamic social reporting disclosure as a form of social responsibility of Islamic banks in Indonesia. Banks and Bank Systems, 15(2), 47–55. https://doi.org/10.21511/bbs.15(2).2020.05
Kurniawati, M., & Yaya, R. (2017). Pengaruh Mekanisme Corporate Governance, Kinerja Keuangan dan Kinerja Lingkungan terhadap Pengungkapan Islamic Social Reporting. Jurnal Akuntansi Dan Investasi, 18(2). https://doi.org/10.18196/jai.180280
Lu, J., & Wang, J. (2021). Corporate governance, law, culture, environmental performance and CSR disclosure: A global perspective. Journal of International Financial Markets, Institutions and Money, 70. https://doi.org/10.1016/j.intfin.2020.101264
Luqyana, I., & Zunaidi, D.S. (2021). Determinants of Islamic Social Reporting on Sharia Commercial Banks of Indonesia. Journal of Business and Banking. 11, 151–166. https://doi.org/10.14414/jbb.v11i1.2727
Maali, B., Casson, P. and Napier, C. (2006), Social Reporting by Islamic Banks. Abacus, 42: 266-289. https://doi.org/10.1111/j.1467-6281.2006.00200.x
Mallin, C., Farag, H., & Ow-Yong, K. (2014). Corporate social responsibility and financial performance in Islamic banks. Journal of Economic Behavior and Organization, 103. https://doi.org/10.1016/j.jebo.2014.03.001
Mukhibad, H., Yudo Jayanto, P., Suryarini, T., & Bagas Hapsoro, B. (2022). Corporate governance and Islamic bank accountability based on disclosure—a study on Islamic banks in Indonesia. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2080151
Murdiansyah, I. (2021). Leverage, Ukuran Dewan Komisaris, Ukuran Dewan Pengawas Syariah dan Pengaruhnya Terhadap Pengungkapan Islamic Social Reporting (ISR). MALIA: Journal of Islamic Banking and Finance, 5(1), 43. https://doi.org/10.21043/malia.v5i1.10543
Othman, R., Thani, A. M., & Ghani, E. K. (2009). Determinants of Islamic social reporting among top shariah-approved companies in Bursa Malaysia. Research Journal of International Studies, 12(12), 4–20.
Please, K., Tarigan, A. A., & Yafiz, M. (2022). Iwan Triyuwono's Thought About the Concept Of Sharia Enterprise Theory In The Development Of Sharia Accounting Theory in Indonesia. Al-Masharif: Jurnal Ilmu Ekonomi dan Keislaman, 10(1), 127-142. https://doi.org/10.24952/masharif.v10i1.5870
Rahayu, T. P., & Budi, A.S. (2018). Analisis Faktor-Faktor yang Mempengaruhi Pengungkapan Islamic Social Reporting pada Perusahaan yang Terdaftar di Jakarta Islamic Index Periode 2010-2013. E-Journal Ekonomi Bisnis Dan Akuntansi, 5(2), 109-114. https://doi.org/10.19184/ejeba.v5i2.8644
Sawitri, D. R., Juanda, A., & Jati, A. W. (2017). Analisis Pengungkapan Corporate Social Responsibility Perbankan Syariah Indonesia Berdasarkan Islamic Social Reporting Index. Kompartemen: Jurnal Ilmiah Akuntansi, 15(2). https://doi.org/10.30595/kompartemen.v15i2.1876
Suaidah, Y. M., & Kartini, P. C. A. (2020). Pengaruh Kinerja Lingkungan Dan Corporate Social Responsibility Terhadap Kinerja Keuangan Perusahaan. JAD : Jurnal Riset Akuntansi & Keuangan Dewantara, 3(2), 101–109. https://doi.org/10.26533/jad.v3i2.666
Susbiyani, A., Halim, M., & Animah, A. (2023). Determinants of Islamic social reporting disclosure and its effect on firm’s value. Journal of Islamic Accounting and Business Research, 14(3), 416–435. https://doi.org/10.1108/JIABR-10-2021-0277
Umiyati, U., & Baiquni, M. D. (2018). Ukuran perusahaan, profitabilitas, dan leverage terhadap Islamic social reporting pada bank umum syariah di Indonesia. Jurnal Akuntansi Dan Keuangan Islam, 6(1), 85-104. https://doi.org/10.35836/jakis.v6i1.10
Wahyuni, S. (2018, July). Islamic Social Reporting Disclosure and Determinant Factors: Empirical Evidence from Islamic Banks in Indonesia. In 2018 3rd International Conference on Education, Sports, Arts and Management Engineering (ICESAME 2018) (pp. 389-392). Atlantis Press. https://doi.org/10.2991/amca-18.2018.107
Widyanti, A. D., & Cilarisinta, N. (2020). Pengaruh Profitabilitas, Kepemilikan Institusional dan Kinerja Lingkungan Terhadap Islamic Social Reporting. Kompartemen: Jurnal Ilmiah Akuntansi, 18(2). https://doi.org/10.30595/kompartemen.v18i2.7700
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Sandra Sukma Embuningtiyas, Oktaviani Ritas Puspasari
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
