Corporate social responsibility and corporate investments: does research and development intensity matter?

Figures & data

Table 1. Sample selection.

Criteria	N
Number of basic and chemical industries listed on IDX	70
Number of companies with incomplete data	(23)
Number of samples per year	47
Final sample (5 years x 47 companies)	235

Table 2. Variable measurements.

Variable	Measurement
CSER expenditure	Amount of monetary social and environmental expenditures of a firm that is self-reported in annual and/or sustainability reports (Januarti et al., 2019).
R&D intensity	The ratio of R&D expenditure to total revenues (Gallego‐Álvarez et al., 2011).
Corporate investment	The sum of the yearly growth in property, plant and equipment, plus growth in inventory, plus R&D expenditure, all deflated by the lagged book value of assets (Chen et al., 2017).
Profitability	ROA = net income divided by total assets (Faisal et al., 2023).
Sales	Amount of sales for the firm (Faisal et al., 2023).

Table 3. Descriptive statistics.

Variables	n	Minimum	Maximum	Mean	Std. Deviation
Social expenditure (million rupiahs)	235	980.93	87,014.42	4,418.59	9,468.92
Environmental expenditure (million rupiahs)	235	142.57	72,970.00	6,501.12	12,818.73
R&D intensity (million rupiahs)	235	24.03	78,685.00	216.80	166.95
Corporate investment (million rupiahs)	235	133.58	46,875.12	3,496.31	7,372.28
Profitability	235	0.00	0.67	0.08	0.08
Sales	235	21,671.00	31,025.00	27,470.00	2,013.00

Notes: social expenditure = amount of monetary social expenditure; environmental expenditure = amount of monetary environmental expenditure; R&D intensity = ratio of R&D expenditure to total revenues; corporate investment = the sum of the yearly growth in property, plant and equipment, plus growth in inventory, plus R&D expenditure, all deflated by the lagged book value of assets; profitability is measured by ROA = net income divided by total assets; sales = amount of sales.

Table 4. Pearson correlation matrix.

	1	2	3	4	5
CSER expenditure	1	0.348**	0.170**	0.041	0.272**
R&D intensity	0.348**	1	0.202**	−0.055	0.335*
Corporate investment	0.170**	0.202**	1	0.072	0.283**
Profitability	0.041	−0.505	0.072	1	0.069
Sales	0.272**	0.335**	0.283**	0.102	1

Notes: **statistically significant at 0.01 (two-tailed); *statistically significant at 0.05 (two-tailed).

1 = CSER expenditure; 2 = R&D intensity; 3 = corporate investment; 4 = profitability; 5 = sales.

Table 5. Regression analysis results.

Variables	Coefficient	t	þ-value
Equation 1(1) $$\text{Corporate\hspace{0.17em}\hspace{0.17em}}{\text{investment}}_{\text{t\hspace{0.17em}+\hspace{0.17em}1}}\text{=\hspace{0.17em}}\alpha \text{\hspace{0.17em}+\hspace{0.17em}}{\beta }_1\text{\hspace{0.17em}CSER\hspace{0.17em}\hspace{0.17em}}{\text{expenditure}}_t\text{+\hspace{0.17em}}{\beta }_2\hspace{0.17em}{\text{profitability}}_t\text{+\hspace{0.17em}}{\beta }_3\hspace{0.17em}{\text{sales}}_t\text{+\hspace{0.17em}}\epsilon$$(1) : Corporate investmentt+1 = α + β1 CSER expendituret + β2 profitabilityt + β3 salest + ε
Constant	13.698	8.387	0.000**
CSER expenditure	0.101	1.690	0.092
Profitability	1.432	1.284	0.200
Sales	0.181	3.925	0.000**
R^2= 0.094; Adj R^2 = 0.082; F = 7.957; þ-value = 0.000** N = 235
Equation 2(2) $$\text{R\&D\hspace{0.17em}\hspace{0.17em}}{\text{intensity}}_{\text{t\hspace{0.17em}\hspace{0.17em}\hspace{0.17em}\hspace{0.17em}}}\text{=\hspace{0.17em}}\alpha \text{\hspace{0.17em}+\hspace{0.17em}}{\beta }_1\text{\hspace{0.17em}CSER\hspace{0.17em}\hspace{0.17em}}{\text{expenditure}}_t\text{+\hspace{0.17em}}{\beta }_2\hspace{0.17em}{\text{profitability}}_t\text{+\hspace{0.17em}}{\beta }_3\hspace{0.17em}{\text{sales}}_t\text{+\hspace{0.17em}}\epsilon$$(2) : R&D intensityt = α + β1 CSER expendituret + β2 profitabilityt + β3 salest + ε
Constant	13.177	7.042	0.000**
CSER expenditure	0.271	3.986	0.000**
Profitability	−2.425	−1.907	0.058*
Sales	0.112	2.121	0.035*
R^2= 0.102; Adj R^2 = 0.091; F = 8.772; þ-value = 0.000** N = 235

Notes: **statistically significant at 0.01 (two-tailed); *statistically significant at 0.05 (two-tailed).

Table 6. Path analysis results.

Variable	Coefficient	t	p-value	Adjusted R^2
Equation 3(3) $$\text{R\&D\hspace{0.17em}\hspace{0.17em}}{\text{intensity}}_t\text{=\hspace{0.17em}}\alpha {\text{+p}}_2\text{\hspace{0.17em}CSER\hspace{0.17em}\hspace{0.17em}}{\text{expenditure}}_t\text{+\hspace{0.17em}}{\epsilon }_1$$(3) : R&D intensityt = α + p2 CSER expenditure + e1
Constant	15.542	10.859	0.000**	0.070
CSER expenditure	0.292	4.301	0.000**
Equation 4(4) $$\text{Corporate\hspace{0.17em}\hspace{0.17em}}{\text{investment}}_{\text{t\hspace{0.17em}+\hspace{0.17em}1}}\text{=\hspace{0.17em}}\alpha {\text{+p}}_1\text{\hspace{0.17em}CSER\hspace{0.17em}\hspace{0.17em}expenditure\hspace{0.17em}}{\text{+p}}_3\text{\hspace{0.17em}R\&D\hspace{0.17em}\hspace{0.17em}intensity\hspace{0.17em}+\hspace{0.17em}}{\epsilon }_2$$(4) : Corporate investmentt+1 = α + p1 CSER expenditure + p3 R&D intensity + e3
Constant	17.152	13.970	0.000**	0.050
CSER expenditure	0.167	1.667	0.097
R&D intensity	0.170	2.988	0.003**

Note: **statistically significant at 0.01 (two-tailed); *statistically significant at 0.05 (two-tailed).

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Data availability statement

The data that support the findings of this study are available on request from the corresponding author.