The effect of ownership structure on corporate social responsibility disclosure

This study was done to examine the effect of ownership structure which are institutional ownership, managerial ownership and foreign ownership on the corporate social responsibility disclosures. The study sample was manufacturing companies listed in Indonesia Stock Exchange (ISE) from 2012 until 2014 whichwas a total of 143 companies with 407 annual reports. The data wereanalyzedusing multiple regression analysis. The study proved that institutional, managerial and foreign ownership would push the company to disclose more social activities to gain the public legitimacy for assuring of long term stability of the company. Meanwhile, managerial ownership would disclose more corporate social activity to prove that company worked in accordance with applicable regulations, systems and norms to gain public’s legitimacy. Besides, foreignownership would give encouragement to the company to disclose corporate social responsibility activities because foreign investors’corporate social responsibility is considered as important issue to be disclosed in annual report.