The Effect of Contextual Variables in the Relationship Between CSR and CFP: Evidence from Indonesian Companies

Issues in Social and Environmental Accounting, Vol. 4, No. 1, 2010

25 Pages Posted: 14 Nov 2010

See all articles by Hasan Fauzi

Hasan Fauzi

Sebelas Maret University

Kamil Idris

Universiti Utara Malaysia

Date Written: November 13, 2010

Abstract

The objectives of this study is to investigate whether business environment, business strategy, formalization, decentralization, reliance on combination of belief & boundary system, reliance on combination of diagnostic & interactive control system, reliance on interactive control system moderate the relationship between CSR and CFP under the slack resource and good management theories. 220 respondents from manufacturing companies listed on the Jakarta Stock Exchange were selected and two regression models were developed to examine the relationship between the related variables. The findings show that business environment has moderated the CSR-CFP link under good management theory, decentralization has moderated the CSR-CFP link under slack resource theory, and reliance on combination of diagnostic and interactive control system has moderated the CSR and CFP link based on slack resource theory.

Keywords: CSR, Slack Resource Theory, Good Management Theory, Contextual Variables, Financial Performance, Business Environment, Business Strategy, Decentralization, Formalization, Specialization, Belief System, Boundary System, Diagnostic Control System, Interactive Control System, Indonesia

JEL Classification: M40, M41, M49

Suggested Citation

Fauzi, Hasan and Idris, Kamil, The Effect of Contextual Variables in the Relationship Between CSR and CFP: Evidence from Indonesian Companies (November 13, 2010). Issues in Social and Environmental Accounting, Vol. 4, No. 1, 2010. Available at SSRN: https://ssrn.com/abstract=1708519

Hasan Fauzi (Contact Author)

Sebelas Maret University ( email )

Jl. Ir. Sutami 36A
Kentingan
Surakarta, Jawa Tengah 57126
Indonesia

Kamil Idris

Universiti Utara Malaysia ( email )

Sintok
COLGIS, UUM
Sintok, KY KEDAH DARUL 06010
Malaysia

HOME PAGE: http://cob.uum.edu.my

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