ESG Disclosure in Mining Companies: The Moderating Role of Political Connections in the Influence of Public Ownership and Firm Size

Taufiqurrahman Taufiqurrahman; Fachrul A Siregar

Authors

Taufiqurrahman Taufiqurrahman Program Studi Ilmu Pengetahuan Sosial, STKIP Al Maksum
Fachrul A Siregar Program Studi Akuntansi, Fakultas Ekonomi & Bisnis, Universitas Battuta

Keywords:

Public Ownership, Firm Size, ESG Disclosure, Political Connection

Abstract

This study examines the effect of public ownership and firm size on ESG disclosure, with political connection as a moderating variable, in mining companies listed on the Indonesia Stock Exchange during the 2022-2025 period. Using a quantitative approach, data were collected from the annual reports and sustainability reports of 10 purposively selected mining companies observed over four years, producing 40 firm-year observations. Multiple linear regression was used to examine the direct effects of the independent variables on ESG disclosure, while Moderated Regression Analysis (MRA) was applied to test the moderating role of political connection. The results indicate that public ownership has a positive relationship with ESG disclosure, whereas firm size shows no significant effect on ESG disclosure. Political connection is found to strengthen the effect of public ownership on ESG disclosure, while its moderating effect on the relationship between firm size and ESG disclosure is comparatively weaker. These findings suggest that political connection can encourage mining companies, particularly those with substantial public ownership, to be more proactive in ESG disclosure. This study highlights the importance of political ties in improving transparency and sustainability reporting in the mining sector.

Downloads

Download data is not yet available.

References

R. D. Aviyanti, H. P. Devi, N. Amah, D. N. Andriani, and P. W. Widiastuti, "Pengaruh Tata Kelola, Koneksi Politik, dan Kompensasi Dewan Direksi Terhadap Pengungkapan Tanggung Jawab Sosial," Inventory: Jurnal Akuntansi, vol. 6, no. 2, 2022, doi: 10.25273/inventory.v6i2.14244.

U. L. Nanda and G. Rismayani, "Pengaruh Gender Diversity, Profitabilitas, Ukuran Perusahaan, Ukuran KAP Terhadap Pengungkapan Tanggung Jawab Sosial Perusahaan," Jurnal Riset Keuangan dan Akuntansi, vol. 5, no. 1, 2019, doi: 10.25134/jrka.v5i1.1882.

S. Wimelson and L. Widianingsih, "Berpengaruhkah BOC Eks Politik Terhadap Pengungkapan CSR Perusahaan Sektor Energi dan Basic Materials?," Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), vol. 8, no. 3, 2024, doi: 10.31955/mea.v8i3.4503.

M. Y. Khairin and A. Firmansyah, "Political Connection, Public Ownership, Pengungkapan CSR: Peran Moderasi Ukuran Perusahaan," Owner: Riset dan Jurnal Akuntansi, vol. 8, no. 4, pp. 4174-4185, 2024, doi: 10.33395/owner.v8i4.2300.

W. F. Ningsih and R. Rachmawati, "Implementasi Green Accounting dalam Meningkatkan Kinerja Perusahaan," JABE (Journal of Applied Business and Economic), vol. 4, no. 2, 2017, doi: 10.30998/jabe.v4i2.2142.

A. Iswari and B. Nurcahyo, "Analisis Rasio Keuangan untuk Memprediksi Financial Distress pada Perusahaan Pertambangan di Indonesia," Jurnal Nusantara Aplikasi Manajemen Bisnis, vol. 5, no. 1, 2020, doi: 10.29407/nusamba.v5i1.13526.

T. Jurnali and N. S. Manurung, "Ukuran Dewan, Keberagaman Dewan dan Pengungkapan Tanggung Jawab Sosial Perusahaan: Peran Koneksi Politik," Jurnal Bisnis dan Akuntansi, vol. 25, no. 1, pp. 45-64, 2023, doi: 10.34208/jba.v25i1.1722.

D. Mey Intakhiya, U. P. Santoso, and D. Mutiarin, "Strategi dalam Penanganan Kasus Lumpur Lapindo pada Masyarakat Terdampak Lumpur Lapindo Porong-Sidoarjo Jawa Timur," Jurnal Moderat, vol. 7, no. 3, 2021.

B. Xu and T. Zeng, "Profitability, State Ownership, Tax Reporting and Corporate Social Responsibility: Evidence from Chinese Listed Firms," Social Responsibility Journal, vol. 12, no. 1, pp. 23-31, 2016, doi: 10.1108/SRJ-06-2014-0076.

T. Ulfa, D. Sari, and F. Syam Bz, "Determinants of Corporate Social Responsibility Disclosure: Case of Mining Companies in Indonesia," International Journal of Research in Business and Social Science, vol. 11, pp. 324-334, 2022, doi: 10.20525/ijrbs.v11i5.1831.

N. Pratiwi, "Profitabilitas, Leverage, Kepemilikan Publik, dan Pengungkapan Corporate Social Responsibility," E-Jurnal Akuntansi, vol. 33, 2023, doi: 10.24843/EJA.2023.v33.i07.p17.

Kamaliah, "Disclosure of Corporate Social Responsibility (CSR) and Its Implications on Company Value as a Result of the Impact of Corporate Governance and Profitability," International Journal of Law and Management, vol. 62, no. 4, 2020, doi: 10.1108/IJLMA-08-2017-0197.

S. Handoyo, "The Determinants of Corporate Social Responsibility Disclosure: Empirical Evidence from Indonesia Listed Firms," Journal of Accounting Auditing and Business, vol. 3, no. 1, 2020, doi: 10.24198/jaab.v3i1.26228.

J. Dyduch and J. Krasodomska, "Determinants of Corporate Social Responsibility Disclosure: An Empirical Study of Polish Listed Companies," Sustainability, vol. 9, no. 11, 2017, doi: 10.3390/su9111934.

W. P. B. G. T. S. Sirait, "Pengaruh Kepemilikan Saham Publik, Leverage, Profitabilitas, dan Ukuran Perusahaan Terhadap Pengungkapan Tanggung Jawab Sosial pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia Tahun 2019-2021," METHOSIKA: Jurnal Akuntansi dan Keuangan Methodist, vol. 7, no. 1, pp. 57-64, 2023, doi: 10.46880/jsika.Vol7No1.pp57-64.

G. I. Santo and D. A. Rahayuningsih, "Karakteristik Perusahaan yang Mempengaruhi Pengungkapan Corporate Social Responsibility," Jurnal Bisnis dan Akuntansi, vol. 24, no. 1, pp. 171-184, 2022, doi: 10.34208/jba.v24i1.1166.

R. Najaf, "How Does Political Connection Impact the Firm Performance?," Austin Journal of Business Administration and Management, vol. 4, no. 1, 2020.

F. Bencheikh and N. Boulila Taktak, "The Effect of Political Connections on the Firm Performance in a Newly Democratised Country," Mediterranean Journal of Social Sciences, vol. 8, pp. 40-46, 2017, doi: 10.1515/mjss-2017-0004.

B. Mukhtar, M. K. Shad, L. F. Woon, M. Haider, and A. Waqas, "Integrating ESG Disclosure into the Relationship between CSR and Green Organizational Culture toward Green Innovation," Social Responsibility Journal, vol. 20, no. 2, pp. 288-304, 2024, doi: 10.1108/SRJ-03-2023-0125.

J. Dowling and J. Pfeffer, "Organizational Legitimacy: Social Values and Organizational Behavior," Pacific Sociological Review, vol. 18, no. 1, pp. 122-136, 1975, doi: 10.2307/1388226.

F. Y. Lai, H. C. Tang, S. C. Lu, Y. C. Lee, and C. C. Lin, "Transformational Leadership and Job Performance: The Mediating Role of Work Engagement," SAGE Open, vol. 10, no. 1, 2020, doi: 10.1177/2158244019899085.

F. Sampong, N. Song, K. O. Boahene, and K. A. Wadie, "Disclosure of CSR Performance and Firm Value: New Evidence from South Africa on the Basis of the GRI Guidelines for Sustainability Disclosure," Sustainability, vol. 10, no. 12, 2018, doi: 10.3390/su10124518.

C. H. Limbong, "Analisis Faktor-Faktor yang Mempengaruhi Pengungkapan Corporate Social Responsibility pada Perusahaan Pertambangan yang Terdaftar di BEI," ECOBISMA (Jurnal Ekonomi, Bisnis dan Manajemen), vol. 6, no. 2, 2019, doi: 10.36987/ecobi.v6i2.11.

D. A. Aruan, V. Veronica, C. Liandy, D. Christina, and F. Fanny, "Pengaruh Kepemilikan Publik, NPM, Pertumbuhan Perusahaan, dan Solvabilitas terhadap Pengungkapan CSR pada Perusahaan Infrastruktur," Owner, vol. 5, no. 2, 2021, doi: 10.33395/owner.v5i2.455.

P. P. R. Aprilyani Dewi, I. P. Sudana, I. D. N. Badera, and I. K. Rasmini, "The Effect of CSR Disclosure on Firm Value with Profitability and Leverage as Moderators," Indonesian Journal of Sustainability Accounting and Management, vol. 5, no. 1, pp. 113-122, 2021, doi: 10.28992/ijsam.v5i1.325.

S. P. Hamdani, W. S. Yuliandari, and E. Budiono, "Kepemilikan Saham Publik dan Return on Assets terhadap Pengungkapan Corporate Social Responsibility," 2017.

M. Carboni, The Financial Impact of Political Connections. Cham, Switzerland: Springer, 2017, doi: 10.1007/978-3-319-52776-5.

M. B. Muttakin, D. G. Mihret, and A. Khan, "Corporate Political Connection and Corporate Social Responsibility Disclosures: A Neo-Pluralist Hypothesis and Empirical Evidence," Accounting, Auditing and Accountability Journal, vol. 31, no. 2, 2018, doi: 10.1108/AAAJ-06-2015-2078.

H. Wu, S. Li, S. Ying, and X. Chen, "Politically Connected CEOs, Firm Performance, and CEO Pay," Journal of Business Research, vol. 91, pp. 169-180, 2018, doi: 10.1016/j.jbusres.2018.06.003.

V. Arantes, S. Dicko, and R. Soares, "Firms' Political Connections and Performance in Brazil and Canada: An Analysis of the Effect of Country Institutional Factors," Journal of Management and Governance, vol. 28, pp. 1-50, 2023, doi: 10.1007/s10997-022-09666-1.

A. E. Erviana and Junaidi, "Analisis Pengaruh Leverage, Profitabilitas, Ukuran Perusahaan dan Kepemilikan Saham Publik Terhadap Kebijakan Pengungkapan Tanggung Jawab Sosial dan Lingkungan pada Perusahaan Manufaktur di Bursa Efek Indonesia Tahun 2013-2016," Jurnal Ekonomi Universitas Islam Malang, vol. 147, no. 3, 2017.

I. G. A. L. Indraswari and N. P. S. H. Mimba, "Pengaruh Profitabilitas, Pertumbuhan Perusahaan, Kapitalisasi Pasar dan Kepemilikan Saham Publik pada Tingkat Pengungkapan CSR," Jurnal Akuntansi, vol. 20, no. 2, 2017.

R. H. Koeshardjono, S. Priantono, and T. Amani, "Pengaruh Corporate Social Responsibility, Ukuran Perusahaan, Leverage dan Profitabilitas Terhadap Nilai Perusahaan dengan Kepemilikan Manajerial dan Komisaris Independen Sebagai Variabel Moderating," JIAI (Jurnal Ilmiah Akuntansi Indonesia), 2019.

F. N. Latifah and J. Widiatmoko, "Pengaruh Struktur Kepemilikan Terhadap Corporate Social Responsibility dan Dampaknya pada Nilai Perusahaan," JIMAT (Jurnal Ilmiah Mahasiswa Akuntansi) Undiksha, vol. 13, no. 3, pp. 921-937, 2022, doi: 10.23887/jimat.v13i03.44363.

G. H. Ramadhan and H. N. L. Ermaya, "Faktor-Faktor yang Mempengaruhi Pengungkapan Corporate Social Responsibility pada Perusahaan di Indonesia," Accounting Student Research Journal, vol. 2, no. 2, pp. 123-142, 2023, doi: 10.62108/asrj.v2i2.6660.

F. Rauf, C. L. Voinea, H. Bin Azam Hashmi, and C. Fratostiteanu, "Moderating Effect of Political Embeddedness on the Relationship between Resources Base and Quality of CSR Disclosure in China," Sustainability, vol. 12, no. 8, 2020, doi: 10.3390/su12083323.

T. Nguyen-Thi-Hong, N. To-The, L. Ho-Bao, et al., "Do Political Connections and Foreign Investments Matter for ESG Disclosure in Emerging Countries? Evidence from Vietnam," Asian Journal of Business Ethics, vol. 14, pp. 35-57, 2025, doi: 10.1007/s13520-024-00228-2.

E. S. Alharasis et al., "Bridging Power and Policy: Political Connections as Moderators of CEO Traits and ESG Disclosure—A Resource Dependence and Upper Echelons Perspective," Corporate Social Responsibility and Environmental Management, 2026, doi: 10.1002/csr.70234.

R. Guedes, M. E. Neves, and E. Vieira, "Bridging Governance Gaps: Politically Connected Boards, Gender Diversity and the ESG Performance Puzzle in Iberian Companies," Business Process Management Journal, 2024, doi: 10.1108/BPMJ-01-2024-0039.

M. R. Salisa and Y. J. M. Isa, "Do Sharia-Indexed Firms Enhance ESG Disclosure? Evidence from Indonesian Mining," Research Horizon, 2025.