The Effect of Corporate Social Responsibility Disclosure on Conditional Accounting Conservatism: The Moderating Role of Family Ownership

Abstract

This study analyzes the impact of corporate social responsibility (CSR) disclosure on conditional accounting conservatism, with family ownership as a moderating variable. Conditional accounting conservatism encourages faster recognition of losses than gains, which is relevant in uncertain economic environments. Using data from energy sector companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2022, this research assesses the effect of CSR disclosure quantity and quality on the degree of accounting conservatism, along with the interaction effect of CSR disclosure and family ownership. The analysis results indicate that family ownership significantly reinforces the negative impact of CSR disclosure on conditional accounting conservatism. Additionally, profitability is positively correlated with conservatism, indicating that more profitable companies tend to maintain a higher level of conservatism. This study contributes to accounting literature by expanding the understanding of the determinants of conditional accounting conservatism in the context of family-owned structures common in Indonesia. These findings highlight the importance of ownership structure and CSR transparency in shaping accounting conservatism policies in firms. Furthermore, these results are relevant for regulators and practitioners in developing policies that consider company ownership structures and CSR approaches to minimize moral hazard and conflicts of interest between shareholders and management.