What Factors Do Influence Islamic Social Reporting (ISR) Disclosure? Evidence from Indonesia

Abstract

This research was aimed to identify factors affecting disclosure quality of Islamic Social Reporting (ISR) disclosure. ISR is an index that measures the level of social disclosure following the sharia principles conveyed by the company in its annual report. To assess corporate social disclosure following Islamic sharia, an index is known as Islamic Social Reporting (ISR). There are four factors believed to influence disclosure ISR quality, i.e. the board of independent commissioners, liquidity, company growth, the age of the company and the size of the company. The data used are secondary data taken from the website of the Indonesia Stock Exchange. The population of this study was the Jakarta Islamic Index company listed in Indonesia Stock Exchange during 2014-2016 period. The samples in this study were taken by using purposive sampling technique to obtain 16 companies. Data analysis techniques used are multiple regression analysis methods. The results showed that liquidity and the size of the firm significantly affect the quality of Islamic social reporting disclosure. While for the board of independent commissioner, company growth and the age of the company has no significant effect on quality of Islamic social reporting disclosure.

Keywords: age; company growth; liquidity; size; Islamic social reporting disclosure

JEL Classification: G32, M41, Q01