Post IFRS Convergence Investigation: Corporate Social Responsibility Disclosure in Relation to Good Corporate Governance and Company Size

This research aims to determine the factors that influence the level of Corporate Social Responsibility Disclosures after International Financial Reporting Standards convergence by testing the effect of Institutional Ownership, Public Ownership, Board of Independent Commissioner Size and Company Size on Corporate Social Responsibility Disclosures index. Sample used are mining sector companies that listed on Indonesia Stock Exchange for period 2013-2016. The sources of the data were taken from audited financial reports and annual reports and sample were 19 banks which taken by using purposive sampling. This research uses quantitative approach with multiple linier regression analysis. The results show that institutional ownership, public ownership and company size have a positive and significant effect on corporate social responsibility disclosures. There is no evidence to suggest that board of independent commissioner size have any effect on corporate social responsibility disclosures. The results simultaneously show that Institutional Ownership, Public Ownership, Board of Independent Commissioner Size and Company Size have an influence on Corporate Social Responsibility Disclosures.. Keywords—Corporate Social Responsibility Disclosure, Institutional Ownership, Public Ownership, Board of Independent Commissioner Size and Corporate Size.


I. INTRODUCTION
Understanding the international dimension was very important for those who want a business or acquire or supply financing across national borders (Choi & Gary, 2017). This improved the need for globally accepted accounting standards which will be very useful in presenting company reports and also as a unified perception in assessing or comparing information among multinational corporations. In this case International Financial Reporting Standards (IFRS) can meet those needs.
In Indonesia, the adoption of IFRS began in 2008 and is fully adopted to statement of financial accounting standards starting 1 January 2012 for all listed companies (go public). The most fundamental difference of the IFRS convergence is from the historical cost approach to turning into a fair value, rule-based approach to principle based and the last one IFRS is more demanding to make more and more detailed disclosure (Susilawati, 2017). The information disclosed in the annual report consists of mandatory disclosure and voluntary disclosure (Hidayat, 2017).
This study focuses on voluntary disclosure reflected in corporate social responsibility (CSR) disclosure, as CSR issues are increasingly being discussed over the past few years. This was because companies that do not pay attention to social aspects and promote sound corporate governance such as environmental pollution due to massive exploitation of natural resources, increased pollution and waste, poor product quality and product safety, investment misuse, customary violations, and gaps social and economic issues (Istifaro & Subardjo, 2017). In addition, the company's encouragement to implement CSR is due to The CSR disclosure movement has increased since the introduction of IFRS (Bruslerie & Gapteni, 2014;Smith et al., 2014). This is also one of the reasons that encourages researchers to reexamine the impact of Good Corporate Governance and company size on the level of disclosure of Corporate Social Responsibility after convergence IFRS, the year of sample testing starting from 2013 because in that year the number and understanding of IFRS convergence has been more both from the previous year which is the first year of IFRS convergence and empirical study in this research that is all banking companies listed in Indonesia Stock Exchange (BEI), because banking company is a financial institution whose role is quite crucial in economy, besides now many companies that failures and financial crises, financial institutions here can play a more important role in meeting their morale and ethics in achieving goals by engaging more CSR initiatives.

II.
LITERATURE REVIEW

Agency Theory
Agency Theory proposed by Jensen & Meckling (1976) states that between agents and principal information gaps arise, the agent knows more information about the company than the principal or owner, this is often called the asymmetry of information (Hidayat, 2017). Agency theory can explain why accounting reports can be given voluntarily, it is also related to the separation between owners and supervision. Principal as owner but can only oversee the company without direct down in the management in accordance with the contract made between the principal and the agent.

Stakeholder Theory
Stakeholder theory explained the relationship between stakeholders and the information they received (Ningsih, 2017). In this case, the company as an entity that can not be run by itself has responsibility to the internal and external stakeholders. Thus, the stakeholders are: government, competitor companies, local communities, the international environment, outside agencies (NGOs and the like), corporate workers, environmental agencies, etc. whose existence is strongly influenced and influenced by the company (Herawati, 2015). Stakeholder theory can explain related to voluntary disclosure, because the company's need factor to meet its responsibility to stakeholders to disclose more information in order to expose how the company is run has been in accordance with the needs and interests of all parties associated with the company.

Signaling Theory
Signal theory suggests how companies should signal to users of financial statements (Fatoni et al, 2016). The company discloses information that can be goodnews, wherein that information can then increase its credibility. The company will disclose information that is not required but may have a positive impact on the company. Signaling theory can explain voluntary disclosure through the impulse to reveal more to external parties as a signal to the capital market that information asymmetry can be suppressed. This will give a good impact, external parties such as investors or creditors will be interested to invest in the company, financial costs become low and the value of the company will also increase.

Corporate Social Responsibility Disclosure (CSRD)
Corporate social responsibility (CSR) is a globally developed concept and its application has penetrated into all sectors (Maiyarni et al, 2014). Disclosure of CSR communicates the social and environmental impacts of a firm's economic activities on a particular group of interests to the community as a whole (Herawati, 2015). This is done to emphasize the important role of corporate communication in establishing and maintaining communication with multiple stakeholders to encourage ethically and socially responsible actions for various issues. Thus disclosure of CSR will be able to reduce the bad assumption to the company related to the implementation of its responsibilities to stakeholders (shim et al, 2017). Based on this, the company should report all aspects that affect the continuity of the company's operations to the community (Lestari & Asyik, 2015).

Good Corporate Governance (GCG)
In this study, researchers projecting Good Corporate Governance of the following three components:

Institutional Ownership
Institutional ownership is the ownership of the company's shares by financial institutions, such as insurance companies, banks, pension funds, and asset management (Sari et al, 2013). Ownership by institutional investors will encourage more optimal supervision of management performance, since share ownership represents a source of power that can be used to support or otherwise over the performance of management. Institutional investors are generally big shareholders because they have large funding (Sukasih & Sugiyanto, 2017).

Public Ownership
Public ownership is the proportion of shares owned by the wider community with the management. Public shareholding represents the level of corporate ownership by the public. This variable is indicated by the percentage of shares owned by the public is calculated by comparing the number of shares owned by the public with the total shares of the company in circulation (Rindawati & Asyik, 2015). With the ownership of the public, this will increasingly demand the company to more disclose company information.
These demands are also related to the trust or perspectives of shareholders on the performance of the company.

Board of Independent Commissioner Size
One of the principles of Corporate Governance under the Organization for Economic Cooperation and Development (OECD) is the role of the board of commissioners (Nugraha & Andayani, 2013). Agency theory suggests that conflicts of interest between agents and principals can be reduced by proper supervision. The existence of an independent board of commissioners will improve the quality of supervisory functions within the company. the greater the independent board of commissioners shows better supervisory function.

Company Size
Company size is a measure of the size of a company (Susilo & Mildawati, 2015). A benchmark indicating the size of the firm is total sales, average sales rate, and total assets (Sari et al, 2013). But in this study, the indicator used to measure the level of firm size is total assets. The size of the company as one of the main determinants of voluntary disclosure, larger companies will reveal more information (Gisbert & Navallas, 2013).

Relationship between Institutional Ownership of Corporate Social Responsibility Disclosure
The existence of corporate stock ownership by the institutional is expected to influence the management of the company in the disclosure of financial performance report and corporate social responsibility report. The higher level of corporate stock ownership by the institutional then it is expected that the higher performance of financial performance is revealed and the more expansive the disclosure of corporate social responsibility report. The existence of an independent board of commissioners will improve the quality of supervisory functions within the company. the greater the independent board of commissioners the better the supervisory function will be. The results of Agustia (2013) and Lamia, Zirman, & Yuneita (2014) stated that the size of the commissioners influences CSR disclosure. Therefore, the following hypotheses are tested: H3 : Board of Independent Commissioner Size has a positive effect on corporate social responsibility disclosure

Relationship Corporate Size on Corporate Social
Responsibility Disclosure The size of the company as one of the main determinants of voluntary disclosure, larger companies will reveal more information (Gisbert & Navallas, 2013

Variable
There are 5 variables in this study, the dependent variable is the level of CSR disclosure and four independent variables such as institutional ownership, public ownership, size independent board of commissioners and company size. In this study the calculation of the index using items that have been used previously. Checklist is done by looking the disclosure of corporate social responsibility covers in seven categories, among others:  (4) Company Size = Ln (total assets) (5)

Analysis Method
Hypothesis testing in this research will be done by using regression model linear multiple, where in the regression analysis will be tested the influence between variables, institutional ownership, public ownership, independent board size and size company.

Multicollinearity Test
The multicollinearity test can be tested using tolerance values and VIF values. There is no multicolinearity if the tolerance values of all variables are greater than 0.1 and if the VIF value of all the variables is less than 10. This research has Tolerance value less than 0,100 > 0,100 and VIF <10 means there is no correlation between independent variables. Thus it can be said that there is no multicollinearity.

Heteroscedasticity Test
In

Autocorrelation Test
Autocorrelation test in this research is done by using Test Runs Test. If the value of Asymp.Sig. (2tailed) greater than 0.05 then there is no autocorrelation problem. The result shows Asymp. Sig. of 0.065 > 0.05, this means that the data used is quite random and there is no problem autokorelasi.

Determination Coefficient Test
The value of Adj R Square is 0.485 which means that the dependent variable which can be explained by independent variable is 48.5% which is the contribution of the firm size variable, the size of the independent board of commissioner, the public ownership and the institutional ownership of CSR disclosure and the rest of 51,5% influenced by other variable not examined in this research.

Statistical t Test (t Test)
The result of t test of research variable is as follows: •

V. CONCLUSION
Based on the results of the analysis of research data, it can be concluded that the ownership of Institution, Public Ownership and Corporate Size partially have a positive and significant impact on CSR disclosure in banking sector companies listed in Indonesia Stock Exchange period 2013-2016. this means the greater the shares owned by the company and the public then the level of CSR disclosure also increased. Likewise with the size of the company, the greater the company's CSR disclosure is also increased. Size of Board of Independent Commissioner variable has no effect on CSR disclosure level. This means that the number of independent boards does not necessarily encourage the company to increase its CSR disclosure. However, simultaneously all the variables in this study have a significant influence on the level of CSR disclosure.
Increased CSR activity can provide a good image of the company. The more disclosure of CSR gives the company an assessment that the company's management is good, because the company's need factor to meet its responsibility to stakeholders to disclose more information in order to expose how the company is run has been in accordance with the needs and interests of all parties associated with the company. Based on the results of the research and the conclusion above, the research has practical implications. This research can contribute to the company that the results of this research can be input to understand what factors influencing corporate social disclosure in the banking sector, because the results of this study found that the ownership of institutions and the public and the size of the company in line with the level of CSR disclosure. Thus, corporate management in terms of ownership of public institutions and the higher the disclosure of CSR also increased. Various parties such as investors and creditors can predict the level of CSR disclosure of a company in the future by looking at the relationship between variables on CSR disclosure in this study.
Limitations in this study first lies in the sample used in this study only focused on the banking sector listed in Indonesian securities, so the conclusions generated from this research can not be generalized in other industrial sectors. Second, Adj R Square's result of this research is 48.5% of the variables used in this study namely the ownership of the institution, the public ownership, the size of the independent board of commissioners and the size of the company, so that there are 51.5% other variables that affect the index of completeness of voluntary disclosure annual report of the bank but not contained in this study. For further research it is advisable to involve all industry sectors and can multiply other variables such as audit committees, managerial ownership, listing age and other variables that may affect CSR disclosure so that results can be better.