THE IMPACT OF GREEN CREDIT, BANK SIZE, AND LEVERAGE ON CSR DISCLOSURE

Abstract

Purpose: The purpose of this study is to examine the impact of green credit, bank size and leverage on corporate social responsibility (CSR) by banks listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022.

Methodology/approach: A total of 46 banks listed on the IDX became the study population. The saturated sample method was used in the sampling process, and secondary data from the Financial Services Authority (OJK) and the IDX were collected using the documentation method. A fixed effect regression model was used to analyse the data.

Results/finding: The findings show a significant positive relationship between green credit and bank size on CSR disclosure, which suggests that banks with larger size and green credit programmes also tend to be more active in disclosing CSR. Meanwhile, leverage has a significant negative effect on CSR disclosure, which means that banks with higher levels of debt tend to reduce the level of CSR disclosure.

Limitations: The limitations of this study are the narrow focus on the period 2018-2022 and the use of secondary data, which may not be able to explain all variables affecting CSR disclosure in banks in Indonesia. The results of this study provide an important perspective for the banking sector regarding the variables that influence social responsibility in banking.

Contribution: In addition, this study provides new insights into the relationship between green credit and CSR disclosure, which is still relatively under-researched in the Indonesian banking sector, and provides new insights into the role of sustainable banking policies in enhancing corporate social responsibility.

Novelty: In addition, this study provides new insights into the relationship between green credit and CSR disclosure, which is still relatively under-researched in the Indonesian banking sector, and provides new insights into the role of sustainable banking policies in enhancing corporate social responsibility.