Factors Affecting the Disclosure of Islamic Social Reporting

Abstract

Social responsibility measurement used Islamic issuers should ideally use Islamic Social Reporting (ISR) that in accordance with the rules of Sharia. The purpose of this study was to examine the effect of industry type, profitability and public share ownership on ISR disclosures on companies listed in the List of Sharia Securities (DES) for the 2013-2016 period and obtained thirty company samples. The method used is content analysis, namely by giving value to each item during the disclosure contained in each annual report the company recorded in the DES. Given a value of 1 if the company is listed on the DES do disclosure annual reports on each of the ISR and the value 0 is given if the company does not conduct disclosure of ISR annual reports on each. The results showed that industry type variable has no effect against the disclosure of ISR. This is possible because the company has the view that the types of industries that fall into the category of high profile does not require legitimacy from the community. The variable profitability effect on disclosure of ISR. This is in accordance with Signaling hypothesis that companies that have high profit will give the signal to investors by revealing his social information. Variable stock ownership has no effect against public disclosure of ISR. This is because the company s share ownership in Asia dominated the stock family, so that public ownership is not capable of pressing companies in expressing social accountability in the sharia. Keywords—islamic social reporting; the type of industry; profitability; share ownership of the public