The Influence of Stakeholder Pressure on the Extent of Corporate Social Responsibility Disclosure and Its Impact on Firm Performance (An Empirical Study on State-Owned Enterprises Listed on the Indonesia Stock Exchange for the Period 2020–2023)

Abstract :

This study examines the influence of stakeholder pressure on Corporate Social Responsibility (CSR) disclosure and its impact on firm performance among Indonesian State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange from 2020-2023. Using a quantitative approach with Partial Least Squares Structural Equation Modeling (PLS-SEM), data were collected from 31 SOEs over four years (n=124 observations). The research measures stakeholder pressure through six dimensions: shareholder, employee, consumer, environmental, creditor, and media pressures. CSR disclosure is measured using POJK 51/POJK.03/2017 framework, while firm performance is assessed through Tobin’s Q ratio. Findings reveal that only environmental pressure (β=0.246, p=0.005) and media pressure (β=0.285, p=0.003) significantly influence CSR disclosure. Shareholder pressure (β=0.329, p<0.001) and creditor pressure (β=0.288, p=0.008) positively affect firm performance, while environmental pressure (β=-0.069, p=0.033) and media pressure (β=-0.080, p=0.026) negatively impact performance. CSR disclosure negatively affects firm performance (β=-0.280, p=0.001) and mediates the relationship between environmental/media pressures and performance. The study enriches legitimacy and stakeholder theory by highlighting trade-offs between social transparency and short-term market valuation in emerging markets.