Abstract
This study examines whether mandatory and voluntary corporate social responsibility (CSR) disclosure have different associations with firm value among companies included in Indonesia's LQ45 index during 2021–2024. Using a balanced panel of 25 consistently listed and reporting firms (100 firm-year observations), the study constructs two non-overlapping, binary content-analysis indices: a mandatory disclosure index based on POJK 51/POJK.03/2017 and SEOJK 16/SEOJK.04/2021, and a voluntary disclosure index based on additional GRI Standards 2021 items. Firm value is measured using Tobin's Q. The pooled Main Model includes firm size and return on equity as controls and reports firm-clustered robust standard errors, with year-effects, first-difference, and fixed-effects specifications used as supplementary checks. The results show that mandatory CSR disclosure has a positive but statistically insignificant association with firm value (β = .378, p = .632), whereas voluntary CSR disclosure has a negative and statistically significant association (β = −.883, p = .011). Firm size is negatively associated with firm value, while profitability is positively associated. The Main Model is jointly significant (F(4, 24) = 8.881, p < .001), but this result does not establish a positive combined disclosure effect or complementarity. The study contributes a regulation-based measurement approach that separates compliance-oriented disclosure from discretionary sustainability reporting and demonstrates why their market associations should not be inferred from an aggregate CSR index.
Recommended Citation
Dravita, Carissa Cetta; Tanzil, Nanny Dewi; and Kanti, Runita Arum
(2026)
"The Impact of Mandatory and Voluntary Corporate Social Responsibility (CSR) on Firm Value (A Study on LQ45 Index Companies During 2021–2024),"
Journal of Accounting Auditing and Business: Vol. 9:
No.
2, Article 1.
Available at:
https://journal.unpad.ac.id/jaab/vol9/iss2/1