Good Corporate Governance on Corporate Social Responsibility with Profitability, Size and Leverage as Moderating Variables (case study at Regional Development Banks in Indonesia)

This research aim is to examine the effect of good corporate governance (GCG) on Corporate Social Responsibility (CSR) with profitability, size and leverage as moderating variables at District Development Banks (BPD) in Indonesia. The legitimacy theory, agency theory and stakeholder theory are employed as underpinning theories. The sample of this study is 15 of BPD which issued annual reports, GCG and CSR reports above the year 2011 to 2015. The independent variable is GCG, and CSR as the dependent variable. The CSR is scored by 78 disclosure items. The GCG is proxy by number of commissaries board; number of audit committee, quality of external auditor, and ownership of managements. For testing the effect of GCG on CSR with moderating variables, Moderated Regression Analysis is employed. The result indicates that GCG affects CSR. Size, Leverage and Profitability respectively is not able to moderate the relationship between GCG and CSR. Size, Leverage, and ROE aggregately influence CSR.