Global Journal of Business and Social Science Review. About the Journal. Objectives. Scope

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2 Global Journal of Business and Social Science Review About the Journal Global Journal of Business and Social Science Review (GJBSSR) best practices in finance and accounts diversity, research, academia and social sciences. It is directly beneficial for research scholar, academicians, trainers, policy makers and finance professionals. The journal publishes high-quality research papers in business, social science and their interface. All empirical methods are included but not limited to, qualitative, quantitative, experimental, and combination methods. GJBSSR provides a forum for the exchange of knowledge among academicians and researchers for advancement of research in financial management. We prefer empirically oriented papers, but do not exclude review articles or theoretical contributions provided that they are of high quality and relevant to the journal s aims. Among empirical papers, we prefer those that are relevant to a broad international audience, i.e., papers covering a range of countries or analyzing topics that are clearly relevant outside a single country. The purpose of GJBSSR is to improve communications between, and within, the academic and other research communities and policymakers. Operational decision makers at financial institutions - private and public, national and international, and their regulators. GJBSSR accepts submission of mainly four types: original articles, short communications, reviews, and proposals for special issues. Objectives GJBSSR aims to persuade Malaysian academic journal publishers to publish their journals on the web and to enhance access to the contents of their journals to the worldwide community, in addition to develop the visibility of contents, consequently, hopeful convention moreover generating credentials to articles published. Scope Areas relevant to the scope of the GJBSSR include Accounting, Law, Finance, Education, Banking, Political Science, Economics, Psychology, Management, Communication & Culture, Marketing and Society. ISSN Global Academy of Training & Research. All rights reserved.

3 GJBSSR Global Journal of Business and Social Science Review Editor-in-Chief: Kashan Pirzada, Ph. D Global Academy of Training & Research (GATR), Malaysia President: Prof. Dr. Ahmad Fauzi Abdul Hamid, Ph. D Universiti Sains Malaysia (USM), Malaysia Associate Editors: Prof. Dr. Danture Wickramasinghe, Ph.D. University of Glasgow, UK Prof. Dr. Kamran Ahmed, Ph.D. La Trobe Business School, Australia Prof. Dr. Gabriël A Moens, Ph. D Curtin University, Australia Prof. Dr. Bjoren Willy Aamo, Ph.D. University of Norland, Norway Editorial Staff: Muhammad Imran Global Academy of Training & Research (GATR), Malaysia Rasulkhon Shukurov Global Academy of Training & Research (GATR), Malaysia Nur Hazira Md Alimuddin Global Academy of Training & Research (GATR), Malaysia Editorial Office: Global Academy of Training & Research (GATR) Suite 15, Taman Bukit Angkasa, Jalan Pantai Dalam, Kuala Lumpur Tel: Mob: gjbssr.officer@gmail.com Website: Editorial Board Members Prof. Dr. Milena Popov, Ph.D. The City University of New York, USA Prof. Dr. Wynand Grobler, Ph.D. North West University, South Africa Prof. Dr. Steven Tam, Ph.D. Fort Hays State University, USA Prof. Dr.Fouzia Naeem Khan, Ph.D. SMI University, Pakistan Prof. Dr. Yasushi Suzuki, Ph.D. Ritsumeikan Asia Pacific University, Japan Prof. Dr.Lucy Xu, Ph.D. Macro think Institute, USA Prof. Dr. Nadir Kolachi, Ph.D. Skyline University College, UAE Prof. Dr. Nayan Kanwal, Ph.D. University Putra Malaysia, Malaysia Prof. Dr. Ahmad Fauzi Abdul Hamid, Ph.D. Universiti Sains Malaysia, Malaysia Prof. Dr. Siah Hwee Ang, Ph.D. Victoria University, New Zealand Prof. Dr. Osayimwense Osa, Ph.D. American University of Ras Al Khaimah, UAE Prof. Dr. Michele Ambaye, Ph.D. Pau Business School, Pau, France Prof. Dr. Suzan Abed, Ph.D. Applied Science Private University, Jordan Prof. Dr. Shobha Sundaresan, PhD. Maharani Lakshmi Ammanni College for Women, India Prof. Dr. Iwan Triyuwono, Ph.D. University of Brawijaya, Indonesia Prof. Dr. Mohamed A. Suleiman Al Sardy, Ph.D. Al Balqa Applied University, Jordan Prof. Dr. Subramanian Arumugam, Ph.D. Kalasalingam University, India Assoc. Prof. Dr. Nuraisyah Chua Abdullah, Ph.D. Universiti Teknologi MARA, Malaysia Dr. Muhammad Umar Draz, Ph.D. UCSI University Kuala Lumpur, Malaysia Dr. Martin Surya Mulyadi, Ph.D. Bina Nusantara University, Indonesia Dr. Mohd Zulkhairi Bin Mustapha, Ph.D. University of Malaya, Malaysia Dr. Noor Sharoja Binti Sapiei, Ph.D. University of Malaya, Malaysia Dr. Mohammad Jameel, Ph.D. University of Malaya, Malaysia Dr. Ali Alashwal, Ph.D. University of Malaya, Malaysia Dr. Aleš Kocourek, Ph.D. Technical University of Liberec, Czech Republic Dr. Kausar Saida, Ph.D. Emirates College for Management and IT, UAE Dr. Maniam Kaliannan, Ph.D. The University of Nottingham, Malaysia Dr. Mukhtar E. Eltaweel, Ph.D. Misurata University, Libya Dr. Toto Rusmanto, Ph.D. Binus Business School, Indonesia Dr. Smitha Dev, Ph.D. Abu Dhabi University, UAE Dr. Mohamed I. Mugableh, Ph.D. Irbid National University, Jordan Dr. P.Lalitha, Ph.D. BITS Pilani, India Dr. Sharifah Syahirah Syed Sheikh, Ph.D. Universiti Teknologi MARA, Malaysia Dr. Rohana bt Kamaruddin, Ph.D. Universiti Teknologi MARA, Malaysia Dr. Emin Cihan Duyan, Ph.D. ANadolu University, Turkey Dr. Bashir Said AbulQaraya, Ph.D. Zayed University, UAE Dr. Caleb Chen, Ph.D. Hong Kong Baptist University, China Abstracting/ Indexing: Global Journal of Business and Social Science Review (GJBSSR) is being indexed with following organizations: Cabell Publishing, Inc., Ulrichsweb, Directory of Open Access Journals (DOAJ), JournalSeek, IndexCopernicus, ProQuest, Gale, The Australian Research Council (ARC), Massmann International Booksellers, Malaysian Citation Centre (MCC), Google Scholar, Citefactor and CrossRef. ISSN Global Academy of Training & Research. All rights reserved.

4 Global Journal of Business and Social Science Review Vol. 4 (1) October December 2015 Contents Foreword i Regular Articles Title The Impact of Macro Economics on Firm Values and Financial Performance as an Intervening Variable: An Empirical Study of LQ-45 Banking Industries in Indonesia Indra Siswanti, Eko Ganis Sukoharsono, Embun Prowanta Implementation of Shariah Accounting Theory in Shariah Value Added: A Theoretical Study Ari Sita Nastiti, Siti Maria Wardayati Impact of Work Life Balance on Job Satisfaction: A Study on Indian Women Journalists B. Divya Keerthika Determinants of Systematic Risk of Banking Sector in Indonesia Stock Exchange Paulina Yuritha Amtiran, Rina Indiastuti, Sulaeman Rahman Nidar, Dian Masyita The Effect of Environmental Performance, Foreign Ownership and Leverage to Disclosure of Corporate Social Responsibility (Study on Manufacturing Companies in Indonesia Stock Exchange) Musfialdy, Enni Savitri Organizational Creative Climate in Determining the Work Innovativeness among the Knowledge Workers Cheng Ling Tan, Mei Yan Ho Strategic CSR based on Local Wisdom for Corporate Sustainability (A Case Study on Sugar Factories in Karesidenan Besuki) Yosefa Sayekti, Taufik Kurrohman, Purnamie Titisari Utilization of Productive Zakat Model on Poverty Reduction in Jember Regency Page No ISSN GATR Enterprise. All rights reserved.

5 Ririn Irmadariyani, Andriana Factors affecting the Adoption Decision of Home Grown Medical Technology in Malaysian Hospitals: An Exploratory Study Zarina Denan, Nur Zana Mat Nur, Mailud Balal Perception of the Service Experience: An Exploration of Public Sector in PDAM Tirta Khatulistiwa Pontianak West Kalimantan Using Repertory Grid Technique. Nur Afifah, Ahmad Shalahuddin, and Ilzar Daud Philosophical Study of Interference in Setting the Legal Protection of Bank Customers in Indonesia Theresia Anita Christiani Gender, Subsidies and Financial Capital Impact on Microfinance Institutions Performance Maheni Ika Sari, Retno Endah Supeni The Contribution of Health Law to Social Change Anny Retnowati Child Protection through Intercountry Adoption with Special Reference to the Hague Convention on Protection of Children and Co-operation in Respect of Intercountry Adoption 1993 Nadhilah A.Kadir, Azizah Mohd, Roslina Che Najibah Mohd Zin The Influence of Entrepreneurship Orientation on Organizational Learning, Sustainable Competitive Advantage, and Company Performance at Small and Medium Enterprises in West Java Artarina D.A. Samoedra, Hayun Setiawan Macroeconomic Determinants of FDI Inflow: Malaysia Evidence Sridevi R.K. Narayanan, Hassanudin Mohd Thas Thaker Determinants of Women Involvement in Sarawak Cooperative Movement Jati Kasuma Ali, Yusman Yacob, Cynthia Gundu Bullok, Rashinah Binti Hossen Contribution of SMEs to Economic Development of ASEAN Countries: The Three Focus Areas Shamini Kandasamy, Chung Chay Yoke, Ung Leng Yean, Tee Peck Ling, Pok Wei Fong, Aik Nai Chiek ISSN GATR Enterprise. All rights reserved.

6 Critical analysis on the Children and Young Person Employment Act 1966 and the Education Act 1996 in relation to causes and effect of child labour in Malaysia Nik Ahmad Kamal, Marhanum, Azizah, Ashgar, Yusuff Why The Ancient Musical Essence Is Still Retained In Dusun Tindal s Instrumental Music Within Its Modern Community? Chong Lee Suan Marketing Organ Donation in Universities: A Literature Review Sharifah Nurafizah Syed Annuar, Stephen Laison Sondoh Jr, Andreas Totu A Review of Empirical Studies on User Acceptance of Driver Assistance Systems Mohd Hafzi Md Isa, Baba Md Deros, Khairil Anwar Abu Kassim Development and Validation Process of an Innovative Instrument to Assess Perception of Research University Image Noordini Abdullah, Nooraini Mohamad Sheriff Conversion of Religion: A Study on the Position of Law, Religion, and Practice in Malaysia and Egypt Nur Arfah Abdul Sabian, Abdul Mutalib Embong, Raja Ahmad Iskandar Raja Yaacob, Zullina Hussain Shaari Issues and Challenges of Social Media Adoption by Tourism SMEs Cynthia Robert Dawayan, Stephen Laison Sondoh Jr. The Implementation of Strategy, Organizational Culture and Performance: Finding The Best Fit Achmad Sobirin, Bambang Tutuko Normative and Empirical Research Methods: Their Usefulness and Relevance in the Study of Law as an Object Theresia Anita Christiani Behavior Finance; Telkom Telkom University Student Entrepreneurship; the effect of amount of investment, source of funds, potential losses against income and Re-Investment Hendratno, Alex Winarno The Effect of Tax Inspection in compliance with Taxpayers Pay Income Tax (Income Tax article 25) case study on Tax Office Pratama Tampan Pekanbaru. Atika Zarefar, Arumega Zarefar, Andreas ISSN GATR Enterprise. All rights reserved.

7 Personal Factors and Acceptance of Dysfunctional Audit Behaviour: Evidence from Indonesian Public Sector Audit Suhernita, Husna Roza The Relationship Between Transformational Leadership Characteristic, Organizational Commitment, and Job Performance of the Employees of Four State-Owned Banks in Pontianak, West Kalimantan Ilzar Daud, Sopian Bin Haji Bujang, and Nur Afifah Risk Assessment and Earning Management in Banking of Indonesia: Corporate Governance Mechanisms Trinandari Prasetya Nugrahanti The Practicality of Nominating Committee in a Company. Nurul Jannah Mustafa Khan, Nor Akhmal Hasmin Forms of Acknowledgement of Debt in Malaysia: The Legal Implications Duryana bt Mohamed The Influence of the Types of Compensation (Financial and Non-Financial) on Job Performance among Employees at the Employees Provident Fund (EPF) in Kuala Terengganu, Terengganu, Malaysia Mas Anom bt. Abdul Rashid, Mohd Noor Azman bin Othman, Mohd Zainudin bin Othman, Nurul Fatini A Study of International Financial Reporting Standards (IFRS) Implementation in Indonesia: The Preparers Perspectives Asniati Bahari, Suhernita, Elvira Luthan, Efa Yonnedi Service Quality Dimensions and Customers Satisfactions in Mobile Communications S.Sakthivel Rani, S.Kannan The Model of Infaq and Shodaqoh Management in Increasing the Society s Economy Welfare Kurjono, Lena Nuryanti, Heny Hendrayati Impact of Student Satisfaction towards Customer Evaluation of Hei s With Reference to Southern Tamilnad. B. Shanmuga Priya, Dr. M. Jeyakumaran Crude Oil Price and Food Security Related Variables in Malaysia Shri Dewi Applanaidu, Mukhriz Izraf Azman Aziz A Review of Political Branding Research ISSN GATR Enterprise. All rights reserved.

8 Akhmad Farhan, Azhar Ahmad The Role of Technology to Achieve Sustainable Economic Development in Africa Sally M. Farid The Influence of Innovation Characteristics on Low Loss Microwave Transmission Glass Adoption: A Conceptual Paper Haslinda Musa, Namirah Ab Rahim, Badrul Hisham Ahmad, Mohamad Zoinol Abidin Abd Aziz Financial Resilience: A comparative study of Islamic and Conventional Banking Areeba Khan, Junaina Muhammad Suggested Information Strategies for Malaysian Land Administration Nordaliza Zulkifli, Mohammad Tahir Sabit Mohammad, Abd. Halim Hamzah Spiritual Intelligence Forming Ulul Albab s Personality Elmi Bin Baharuddin, Zainab Binti Ismail Social Media, Social Competence and Teenagers (Study of Students Digital Media Literacy Level s in Jakarta) Khotimatus Sholikhati Proposed Framework for Cyber Wellness Index in Singapore Brian Chin Hin Lee An Empirical Study on the Effect of Service Quality on Student Satisfaction in Malaysian Distance Education Institutions Fazelina Sahul Hamid Practices of the Five Disciplines of Learning Organization in a Private Organization in Indonesia Ida Juliana Hutasuhut, Shahren Ahmad Zaidi Adruce, Sopian Bujang Shareholder Activism, Institutional Shareholders and Agency Problems in Malaysia Maizatul Akmal Musa, Shahril Eashak Ismail Exploring the Relationships among Interest Rate, Exchange Rate, and Stock Market in Indonesia Sherlinda Octa Yuniarsa, Jui-Chuan Della Chang Head of Regional Characteristics and the Local Government Performance in Indonesia ISSN GATR Enterprise. All rights reserved.

9 Agus Prasetyo, Camelia Putrini The Influence of Personality, Driver Stress and Driver Behavior as Mediator on Road Accident among bus Driver in Riau Province Indonesia Fikri, Rozmi Ismail, Fatimah Wati Halim Customer Retention Strategies: Benefits on Small Businesses in Nigeria Ibrahim Ahmed, Usman Yerima Abdullahi, Ibrahim Abba Talaqqi Method in Teaching and Learning Islamic Education at Pondok Institutions Syuhaida Idha Binti Abd Rahim, Mohd Asmadi Yakob, Siti Khurshiah Mohd Mansor, Rukiah Mohamad The Attempt to Improve Mathematics Learning Motivation Using the Geoboard (Spiked Board) Among Grade II Elementary School Students Rahmiati The Relationship of the Antecedent Factors of Entrepreneurial Intention with Entrepreneurial Intention: A Case Study Baharu Kemat Alhaj, Elmi Baharuddin, Saadiah Hj Mat Dahari The Evaluation of Effectiveness on Management Transfer of Land and Building Tax for Rural and Urban Sector from Central Government to Regional Government in Indonesia Maya Safira Dewi, Aries Wicaksono, Stefanus Ariyanto ISSN GATR Enterprise. All rights reserved.

10 Foreword Global Journal for Business & Social Science Review (GJBSSR) is a refereed international quarterly journal which has an advisory panel from the world's leading universities and business schools. The journal welcomes articles in all areas of Management and Business. Both theoretical and applied manuscripts are considered for the journal. The journal employs double blind and peer reviewed process. The primary goal of GJBSSR is to provide opportunities for Academicians and Corporate leaders from various business related fields in a global realm to publish their paper in one source. In order to bring quality to the published work in GJBSSR, we have established an internationally renowned large Editorial Board, consisting of excellent scholars and well-qualified subject specialists. This is to ensure that the research published is filtered through a double-blind peer review process, thus bringing accuracy, clarity and quality to the work published. This issue contains 59 articles. The authors of these articles come from different countries, namely, Australia, Britain, Egypt, India, Indonesia, Malaysia, Nigeria, Saudi Arabia, Singapore and UAE. The articles cover a wide range of topics, from Accounting, Finance, Banking, Marketing, Economics, Management, Law, Education, Political Science, Communication & Culture, Psychology and Society. I sincerely hope that this journal will contribute to furthering business and social sciences research by exploring alternative methods, frameworks and issues, and delegates career development in particular. Furthermore, the GJBSSR is getting more international each year, which is an indicator that is getting worldwide known and recognized. Scholars from all over the world contributed to the issue of the journal. Special thanks are to all the reviewers, the member of international editorial board and editorial staff. I hope that you will enjoy reading the papers. Best regards, Editor In Chief Kashan Pirzada, CA, MBA, MA, MS, PhD. Global Academy of Training & Research (GATR), Malaysia. address: kashan@gatrenterprise.com ISSN GATR Enterprise. All rights reserved.

11 Global Journal of Business and Social Science Review journal homepage: GJBSSR, Vol. 4(1), October-December 2015: ISSN The Effect of Environmental Performance, Foreign Ownership and Leverage to Disclosure of Corporate Social Responsibility * (Study on Manufacturing Companies in Indonesia Stock Exchange) Musfialdy 1*, Enni Savitri 2 1 Department of Communication, State Islamic University of Sultan Syarif Kasim Riau, Indonesia 2 Department of Accounting, Faculty of Economics, University of Riau, Indonesia ABSTRACT Objective: The purpose of this study is to examine the effect of environmental performance, foreign ownership and leverage to disclosure of corporate social responsibility (CSR). Methodology/Technique: CSR of disclosure in this study using performance indicators based GRI (Global Reporting Initiatives). Data collection using purposive sampling method for manufacturing companies in Indonesia stock exchange in 2011 through 2013, there were 85 companies in the sample. Data were analyzed by multiple linear regression method. Findings: The result shows that the environmental performance and leverage effect on disclosure of corporate social responsibility, while foreign ownership doesn t affect on disclosure of corporate social responsibility. Novelty: this study adds to the variable debt and foreign ownership Type of Paper: Empirical Keywords: Corporate Social Responsibility, Environmental Performance, Foreign Ownership and leverage 1. Introduction Disclosure of corporate social responsibility (CSR disclosure) is an information disclosed by management, as a signal to the stakeholders about the activities related to corporate responsibility towards society and the environment. The emergence of public awareness of the role of companies in society led to criticism because it creates social problems, pollution, resources, waste, product quality, product safety level, and the rights and status of workers. Pressure from various parties to force the company to accept responsibility for the impact of business activities on society. Based on the Global Reporting Initiative (GRI), disclosure of CSR can be divided into three groups, such as economic dimensions, the environmental dimensions and social dimensions. It has an impact, especially for the economy, * Paper Info : Revised : September, 2015 Accepted : December, 2015 * Corresponding author: musfaildy@uin-suska.ac.id Affiliation: Department of Communication, State Islamic University of Sultan ISSN GATR Enterprise. All rights reserved.

12 Musfialdy and Enni Savitri the environment and social life. CSR in Indonesia, it's set in the law no. 40 of 2007 about the corporate; The companies whose business field and/or natural resources required to implement social and environmental responsibility. Suratno et.al., (2006) argues that good environmental performance is green. Ministry of the environmental issuing program the company s environmental Performance Rating Program Company (PROPER), which is a program on the implementation of corporate environmental responsibility. PROPER measurement of environmental performance through indicators of colors ranging from green, gold, blue, red and black. Research conducted by Tia Rahma, et.al., (2013), Rakhiemah (2009), argues that environmental performance affect on disclosure of CSR in the annual report. Leverage reflecting the company s leverage rise because it can illustrate the company s capital structure and determine the risk of non-collection of a debt. The financial risk the company because it can describe the structure the company's capital and do not know the risk of a debt-collection. Belkaoui and Karpik (1989) argue that the higher the leverage the more likely the company will violate the credit agreement so that the company will report higher earnings now. The companies with high leverage have high agency costs that the company will reduce the costs of CSR (Haniffa, 2005). 2. Literature Review and Hypothesis 2.1 Agency Theory Agency theory is a theory that reveals the relationship between the owner (principal) and management (agent). Agency theory explains that the agency relationship arises when one person or more (principal) employs another person (the agent) to provide a service and then delegate decision-making authority to the agent (Jensen and Meckling, 1976). 2.2 Stakeholder Theory (Stakeholder Theory) Chariri and Ghazali (2007) argue that the company is not an entity that only operates for its own sake, but must provide benefits to its stakeholders (shareholders, creditors, customers, suppliers, government, the public, analysts and other parties) and the company's survival depends on the support stakeholder 2.3 Corporate Social Responsibility (CSR) Corporate Social Responsibility (CSR) is a transparent business practices based on ethical values, by paying attention to employees, society and the environment, and is designed to preserve the general public and also the shareholders (Inawesnia, 2008). In carrying out its activities, the company is not only focused on the production process within the company, but also have to pay attention to corporate social responsibility outside the company. European Commission defines CSR as: "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with Reviews their stakeholders on a voluntary basis. CSR is the effort made by the company to take into account the social and environmental impact of its operations through proactive measures of prevention pollution and social impact assessment, so that negative impacts can be anticipated and avoided while positive impact can be optimized. Corporate Social Responsibility is essentially the responsibility of the company as a result of a business decision that can provide benefits to society and the environment 2.4 Environmental Performance Environmental performance is a business enterprise to create a good environment to carry out the activities and the use of materials that do not damage the environment (Tia Rahma, P, 2013). Environmental responsibility also called environmental performance which should be done by the company in its development is still on the basis of public pressure that companies are responsible to the community through environmental awareness social ranking system 35 P a g e GJBSSR, Vol. 4 (1), October - December 2015: 34-39

13 Musfialdy and Enni Savitri performance proper include the rating company in five colors to be scored in a row -turut with the highest score for the 5 gold, 4 for green, 3 for blue, 2 for red, and the lowest value 1 for the black color. 2.5 Foreign Ownership Ownership of foreign capital can be defined as a shareholding company by parties who are not registered as citizens and legally recognized the right to strive in that country (Sari, Grace, 2010). Foreign ownership is a proportion of the company's common stock owned by individuals, legal entities, government and the status of its parts abroad. 2.6 Leverage Leverage ratio is the ratio used to measure the extent of corporate assets financed with debt (Kashmir 2013) leverage policy is an important decision in the company where policy leverage is one of the parts of the funding policy of the company. H1: Environmental performance affect on disclosure of CSR H2: Foreign ownership affect on the disclosure of CSR. H3: Leverage affect on the disclosure of CSR 3. Methods 3.1 Population and sample Population is manufacturing companies listed on the Stock Exchange Indonesia in Sample selection criteria are corporate companies, which didn t delisting and joined in Proper and have foreign equity in the company. The company publishes the annual report the period and companies provide information on the implementation CSR and making the sign of the disclosure list CSR based GRI 3.2 Measurement of variables Disclosure of CSR Disclosure of CSR as the dependent variable is measured as follows (Gray et al, 2001): CSDI j = ΣX ij n j CSDI : Corporate Social Responsibility Disclosure Index companies j: nj : the number of items for company j, nj 78 Xij : 1 = if the item i disclosed; 0 = if the item i is not disclosed. Thus, 0 <CSDIt <1 (1) Environmental Performance Environmental performance as an independent variable (X1) is measured by PROPER, as follows: Gold = 5, Green = 4, Blue = 3, Red = 2, Black = 1. Environmental performance in this study was measured by the company's participation in the PROPER using dummy variables. Give points 1 if the company follows PROPER, and given points 0 if the company does not follow the PROPER program Foreign Ownership 36 P a g e GJBSSR, Vol. 4 (1), October - December 2015: 34-39

14 Musfialdy and Enni Savitri Foreign ownership as an independent variable (X2) (Kasmir, 2013): Foreign ownership = Foreign Ownership Number of shares issued x100% (2) Leverage One measurement is to use the leverage of the Debt to Equity Ratio (X3), (Kasmir, 2013) If the result is 100%, meaning that the amount of debt is still smaller than the amount of the company's capital. If the result is 100%, meaning that is the amount of debt is greater than the amount of the company's capital Validity and Reliability Test Validity test used to measure whether or not a valid questionnaire. If the corrected item-total correlation> r table means the data is valid (Ghozali, 2011). Reliability test is used to determine the measurement result REMAIN consistent if it is done twice or more of the symptoms are the same as using the same measuring instrument. Constructs or variables are said to be reliable if it gives the value of Cronbach Alpha> 0.60 (Ghozali, 2011) Normality test and Classical assumption test The normal distribution test in this study using normal probability plots. Classical assumption test for linear regression models is made to Ensure that the models are free from multicollinearity, autocorrelation and heteroscedasticity Multiple Linear Regression Analysis Y = α + β1x1 + β2x2 + β3x3 + e (3) Where, Y1 X1 X2 X3 β 1, β2, β3 ε = CSR disclosure = Environmental Performance = Foreign Shareholding = Leverage = Regression Coefficients = Error Following that, using 5% of the hypothesis will be tested statistically, the t and F tests using multiple regression. 4. Result and Discussion 4.1 Descriptive Analysis The result of descriptive statistical analysis shows that the average value of respondents greater than the standard deviation means that the data has low variability. 4.2 Normality and Classical assumption test results Using normal probability plots shows the distribution pattern and classical assumption test results free of multicollinearity, and heteroscedasticity antocorrelation. 37 P a g e GJBSSR, Vol. 4 (1), October - December 2015: 34-39

15 Musfialdy and Enni Savitri 4.3 Hypothesis Testing Environmental performance has a positive influence on the disclosure of CSR. Companies registered in the Proper given in accordance with the company s performance indicators for environment sustainability expressed in the report on the annual report disclosure of CSR so that more and more companies conduct environmental responsibility more extensive disclosure statements CSR company. Foreign ownership has no effect on the disclosure of CSR. Whether or not ownership by foreigners in the company don t effect the company s report on the annual report CSR. Leverage has a positive influence on the disclosure of CSR.. This proves that agency theory predicts that firms with higher leverage ratios will reveal more information because the cost of agency companies with capital structure as it is higher. Additional information is needed to dispel doubts bondholders towards the fulfillment of their rights as creditors. 5. Conclusion and Implication This paper presents the results of this study that investigates the effect of environmental performance, foreign ownership and leverage to disclosure of corporate social responsibility. The findings conclude that the environmental performance and leverage have an effect on corporate social responsibility, while foreign ownership has no effect on corporate social responsibility Companies that follow will reveal CSR proper higher because the company will be care for environment and discuss in the financial statements.companies that have a high leverage is necessary to provide disclosure statements of social responsibility so as to give a good performance. References Adnantara, Komang Fridagustin. (2013). Effect of Shareholding Structure and Corporate Social Responsibility in Corporate Value. Journal of Economic Bulletin Vol.2.Bali. Aditya Permana, Vigiwan. Prog. (2012). Effect of Corporate Environmental Performance And Characteristics Of Corporate Social Responsibility (CSR) Disclosure (Empirical Study On Manufacturing Companies Listed on the Stock Exchange). Journal. Volume 1, Number 2, Year 2012, pages Diponeoro University. Semarang Al-Tuwajiri, S., Christensen, T., and Hughes, KE. (2004). The Relations Among Environmental Disclosure, Environmental Performance and Economic Performance: A Simultaneous Equations Approach, Accounting, Organizations and Society, 29, Anugrah, Ageng Widhy. Yuyetta, Etna Nur Afri. (2010). Analysis of Effect of Environmental Performance, Structure Corporate Governance, Disclosure and Earnings Management Of Corporate Social Responsibility. Journal. Faculty of Economics, University of Diponegoro. Semarang. Ballabanis, Phillip and Lyall. (1998). Corporate Social Responsibility and Economic Performance in the Top British Companies: Are they Linked. Europan Business Review. Vol. 98, No.1, 1998, pp Barkemeyer, Ralf. (2007). Legitimacy as a Key Driver and Determinant of CSR in Developing Countries. Paper for the 2007 Marie Curie Summer School on Earth System Governance, 28 May - 06 June 2007, Amsterdam. 38 P a g e GJBSSR, Vol. 4 (1), October - December 2015: 34-39

16 Musfialdy and Enni Savitri Belkaoui, Ahmed and Philip G. Karpik. (1989). Determinants of the Decision to Corporate Social Disclosure Information. Accounting, Auditing and Accountability Journal, Vol.2, No.1, p Fauzi Hasan. (2006). Corporate Social and Environment Performance: A Comparative Study Between Indonesian Companies and Multinational Companies (MNCs) Operating In Indonesia. Journal of Accounting and Business, Vol.6, No.1, February 2006, p Ghozali, Imam. (2011). Analysis and Application Multivariate with SPSS Program, Semarang. Gray, R, Javad, M., Power, David M., and Donald C. Sinclair. (2001). Social and Environmental Disclosure and Corporate Characteristic.Journal. Haniffa, RM and TE Cooke. (2005). The Impact of Culture and Governance on Corporate Social Reporting, Journal of Accounting and Public Policy, 24, pp Inawesnia, K. (2008). Motive Behind Practice and Disclosure CSR Stakeholder Ke From Award. Faculty of Economics, University of Diponegoro. Semarang. Jensen, M. and Meckling, W. (1976). Theory of the Firm: Managerial Behavior, Agency Cost, and Ownership Structure. Journal of Finance Economics 3, pp Kasmir. (2013). Banks and Other Financial Institutions. Jakarta: Eagles Release. Ministry of Environment, Corporate Performance Rating Program in Environmental Management. (on line). ( (diakeses on December 11, 2014). Patten, DM. (2002). The Relation Between Environmental Performance and Environmental Disclosure: A Research Note, Accounting, Organizations and Society, Vol.27. pp Porter, M. and Van der Linde, C. (1995). Toward a New Conception of the Environment- Competitiveness Relationship. Journal of Economic Perspectives, Vol. 9 (4).pp Putri, Tia Rahma et al. (2013). Effects of Foreign Ownership, Environmental Performance and Political Influence of Broad Disclosure of Corporate Social Responsibility In Mining Company Listed in Indonesia Stock Exchange. Journal of Socio-Economic Development. Pekanbaru. Rakhiemah, NA and Agustia, D. (2009). Effects of Environmental Performance on the Corporate Social Responsibility (CSR) Disclosure and Financial Performance Manufacturing Companies Listed in Indonesia Stock Exchange. National Symposium of Accounting 12. Palembang. Sari, Ria Nelly. (2010). Effect of Ownership Structure, quality audits and company size on Transparency of Information. Pekbis Journal, Vol 2. Pekanbaru. Simerly, R. and Li, M. (2000). Environmental Dynamism, capital structure and performance: a theoretical integration and an empirical test. Strategic Management Journal 21. Spicer, B Investors, Corporate Social Performance and Information Disclosure: an Empirical Study. The Accounting Review. Vol. 53. pp Suratno, Ignatius Bondan, et al. (2006). Effect of Environmental Performance Against Disclosure Environmental and Economic Performance (Empirical Study On The Manufacturing Company is listed on the Jakarta Stock Exchange Period ). Accounting National Symposium IX. Padang. accessed on December 20, P a g e GJBSSR, Vol. 4 (1), October - December 2015: 34-39