Factors that explain community contributions made by Indonesian firms.

What is it about?

Using multi lens theoretical framework, this paper investigates the determinants of corporate community contributions in the Indonesian companies setting. Based on a sample of 41 public companies and using data pooled from 2008 through 2011(143 observations), the study finds that corporate community contributions are positively associated with variables relating to ownership and industry type. Further, the results indicate that high profile industries and state-owned enterprises (SOEs) have higher propensity to involve in community contributions. This paper contributes to provide a better understanding related to factors influencing community contributions.

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Why is it important?

research in the area of community contributions is still very sparse, specifically in Indonesia. In the international arena, this area is still under-researched. This study offers valuable insights into factors influencing community contributions. Furthermore, community contributions are important area to be investigated being a growing discretionary item for firms