The Effect of Good Corporate Governance Characteristics on Corporate Social Responsibility Disclosure in Agricultural Sector Companies Listed on the Indonesia Stock Exchange

ABSTRACT: Environmental accounting uses all costs incurred by the company through Corporate Social Responsibility (CSR) funds and recording the use of these funds as the basis for reporting. Disclosure of Corporate Social Responsibility (CSR) is carried out in order to fulfill the environmental and social interests of the company in accordance with the Law of the Republic of Indonesia Number 40 of 2007 concerning Limited Liability Companies. This study aims to analyze the effect of Good Corporate Governance on the Corporate Social Responsibility Disclosure. This research was conducted on agricultural sub-sector companies listed on the Indonesia Stock Exchange from 2016-2020. The sample was determined by purposive sampling as many as 75 financial statements as observations. The data analysis technique used is multiple linear regression analysis. Good Corporate Governance research results have a simultaneous effect on Corporate Social Responsibility, board of commissioners size, board of directors gender, the proportion of the audit committee, managerial ownership, and institutional ownership have a positive effect on the Corporate Social Responsibility (CSR) Disclosure. The implications of this research theoretically provide support for Agency Theory and the findings of previous studies. Practically, this research has implications for companies in the agricultural sub-sector to synergize in creating credibility and being accountable to investors, the community, and the government.

KEYWORDS: Good Corporate Governance, Corporate Social Responsibility