Drivers of CSR Disclosure in Mining Sector: Liquidity, Green Index, or Profitability?
DOI:
https://doi.org/10.59890/ijfbm.v4i3.1Keywords:
CSR Disclosure, Current Ratio, Green Accounting, Mining Sector, ProfitabilityAbstract
This study examines whether liquidity, green accounting, or profitability drives CSR disclosure in Indonesian mining companies, contributing first empirical evidence comparing mandatory PROPER ratings against financial metrics. Using panel data from nine mining firms listed on the Indonesia Stock Exchange over 2019–2022 (36 observations), CSR disclosure is measured via GRI-based index, green accounting by PROPER rating, and liquidity and profitability by current ratio and return on assets. The findings reveal that profitability has a positive and significant effect on CSR disclosure, while liquidity shows no significant effect. Contrary to expectations, PROPER rating does not significantly affect CSR disclosure, attributed to limited rating variation (all Red-Blue, no Green-Gold). The low explanatory power (14%) suggests unobserved factors dominate. For regulators, the non-significant PROPER effect indicates mandatory ratings do not automatically encourage voluntary disclosure.
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