CSR disclosure, politically connected supervisory board and cost of debt financing: evidence from Indonesia

Joni, Joni and Angela, Aurora and Prayogo, Enny and Natalia, Maria (2025) CSR disclosure, politically connected supervisory board and cost of debt financing: evidence from Indonesia. International Journal of Business and Emerging Markets, 17 (3). pp. 326-338. ISSN 1753-6227

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Abstract

We examine the effect of corporate social responsibility (CSR) disclosure on the cost of debt financing (COD) in an emerging market, Indonesia. Next, the moderating effect of political relations through a connected supervisory board (PC-SVB) is investigated in this association. The paper uses all Indonesian listed companies as our population, and the final sample is 1,886 observations. Moderated regression analysis is applied to investigate the moderating effect of political relations on the association between CSR and cost of debt. Also, we address the endogeneity problem by using the generalised method of moments (GMM). We find that firms with more CSR disclosure have lower costs of debt financing in Indonesia. It means that CSR is valuable from the perspective of creditors or lenders. Additionally, the relationship is stronger in the presence of politically connected supervisory boards.

Item Type:	Article
Contributors:	Contribution Contributors NIDN/NIDK Email Author Joni, Joni UNSPECIFIED UNSPECIFIED Author Angela, Aurora UNSPECIFIED UNSPECIFIED Author Prayogo, Enny UNSPECIFIED UNSPECIFIED Author Natalia, Maria UNSPECIFIED UNSPECIFIED
Uncontrolled Keywords:	corporate social responsibility; CSR; cost of debt; COD; politically connected supervisory boards; PC-SVB; emerging market; Indonesia.
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Depositing User:	Perpustakaan Maranatha
Date Deposited:	24 Apr 2025 04:27
Last Modified:	24 Apr 2025 04:27
URI:	http://repository.maranatha.edu/id/eprint/34506

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