Title: Corporate social responsibility and internationalisation in mitigating risk

Authors: Saarce Elsye Hatane; Noorlailie Soewarno

Addresses: Accounting Department of Universitas Airlangga, Jalan Airlangga, No. 4-6, Surabaya, Indonesia; Accounting Department of Universitas Kristen Petra, Jalan Siwalankerto, Surabaya, Indonesia ' Accounting Department of Universitas Airlangga, Jalan Airlangga, No. 4-6, Surabaya, Indonesia

Abstract: This study aims to recognise the effect of corporate social responsibility (CSR) and internationalisation on the idiosyncratic risk of the tourism and hospitality industry in ASEAN. The generalised method of moments (GMM) two-step model examined the research framework from 405 firm-years applied from 81 companies in Indonesia, Malaysia, Thailand, and Singapore, from 2015 until 2019. The results prove that CSR activities and internationalisation strategy can mitigate idiosyncratic risk. In addition, the demand for social responsibility in the global market is undoubtedly higher than in the local market. Therefore, adequate CSR disclosure is required to meet investor satisfaction in international markets. This study contributes to social responsibility studies by investigating the effect of CSR activities on idiosyncratic risk in ASEAN countries. Analysis of the interaction between internationalisation and CSR leverages the values of this study.

Keywords: corporate social responsibility; CSR; idiosyncratic risk; ASEAN; internationalisation; tourism and hospitality.

DOI: 10.1504/IJSSOC.2022.125647

International Journal of Sustainable Society, 2022 Vol.14 No.3, pp.221 - 242

Received: 03 Dec 2021
Received in revised form: 17 Apr 2022
Accepted: 29 May 2022
Published online: 18 Sep 2022 *

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