How Deep Is Your Care? Analysis of Corporations’ “Caring Level” and Impact on Earnings Volatility from the Ethics of Care Perspective

Corporate failures and unethical conduct of business indicate the value of business ethics to protect stakeholders’ interests. This research is aimed at assessing the level of caring principles exercised by companies in Indonesia and investigating the impact of caring behaviour on the earnings volat...

Full description

Bibliographic Details
Main Authors: Desi Adhariani, Sylvia Veronica Siregar
Format: Article
Language:English
Published: University of Wollongong 2018-12-01
Series:Australasian Accounting, Business and Finance Journal
Subjects:
Online Access:https://ro.uow.edu.au/aabfj/vol12/iss4/4/
id doaj-14902e73b8714ccd8539a516ce0cae24
record_format Article
spelling doaj-14902e73b8714ccd8539a516ce0cae242020-11-25T00:14:09ZengUniversity of WollongongAustralasian Accounting, Business and Finance Journal1834-20001834-20192018-12-01124435910.14453/aabfj.v12i4.4How Deep Is Your Care? Analysis of Corporations’ “Caring Level” and Impact on Earnings Volatility from the Ethics of Care PerspectiveDesi Adhariani0Sylvia Veronica Siregar1Department of Accounting, Faculty of Economics and Business, Universitas Indonesia, Department of Accounting, Faculty of Economics and Business, Universitas Indonesia, Corporate failures and unethical conduct of business indicate the value of business ethics to protect stakeholders’ interests. This research is aimed at assessing the level of caring principles exercised by companies in Indonesia and investigating the impact of caring behaviour on the earnings volatility. The caring principles emphasise building good relationships with stakeholders including in conflict resolutions. Assessment of the caring principles is conducted through analysis of disclosures using the matrix approach of content analysis for information provided in the Annual Report and Sustainability Report in the period 2012-2016. The ethics of care is the underlying theory of this research, from which the caring principles were developed. The results show that the caring level assessed from disclosures is still low, but there is an increasing trend of disclosures in the five-year period, representing ample room for improvement in the ethical practices and related disclosures. Furthermore, in line with the hypothesis, the caring practices measured in the disclosures are found to lower the earnings volatility. This study contributes to the literature of business ethics, especially the ethics of care, by offering the assessment of corporate caring level through disclosures. The practical implication of the study is expected to raise awareness of the importance to be more caring in conducting business as it can support companies in maintaining the level of stable earnings.https://ro.uow.edu.au/aabfj/vol12/iss4/4/Caringethics of carecontent analysisearnings volatility
collection DOAJ
language English
format Article
sources DOAJ
author Desi Adhariani
Sylvia Veronica Siregar
spellingShingle Desi Adhariani
Sylvia Veronica Siregar
How Deep Is Your Care? Analysis of Corporations’ “Caring Level” and Impact on Earnings Volatility from the Ethics of Care Perspective
Australasian Accounting, Business and Finance Journal
Caring
ethics of care
content analysis
earnings volatility
author_facet Desi Adhariani
Sylvia Veronica Siregar
author_sort Desi Adhariani
title How Deep Is Your Care? Analysis of Corporations’ “Caring Level” and Impact on Earnings Volatility from the Ethics of Care Perspective
title_short How Deep Is Your Care? Analysis of Corporations’ “Caring Level” and Impact on Earnings Volatility from the Ethics of Care Perspective
title_full How Deep Is Your Care? Analysis of Corporations’ “Caring Level” and Impact on Earnings Volatility from the Ethics of Care Perspective
title_fullStr How Deep Is Your Care? Analysis of Corporations’ “Caring Level” and Impact on Earnings Volatility from the Ethics of Care Perspective
title_full_unstemmed How Deep Is Your Care? Analysis of Corporations’ “Caring Level” and Impact on Earnings Volatility from the Ethics of Care Perspective
title_sort how deep is your care? analysis of corporations’ “caring level” and impact on earnings volatility from the ethics of care perspective
publisher University of Wollongong
series Australasian Accounting, Business and Finance Journal
issn 1834-2000
1834-2019
publishDate 2018-12-01
description Corporate failures and unethical conduct of business indicate the value of business ethics to protect stakeholders’ interests. This research is aimed at assessing the level of caring principles exercised by companies in Indonesia and investigating the impact of caring behaviour on the earnings volatility. The caring principles emphasise building good relationships with stakeholders including in conflict resolutions. Assessment of the caring principles is conducted through analysis of disclosures using the matrix approach of content analysis for information provided in the Annual Report and Sustainability Report in the period 2012-2016. The ethics of care is the underlying theory of this research, from which the caring principles were developed. The results show that the caring level assessed from disclosures is still low, but there is an increasing trend of disclosures in the five-year period, representing ample room for improvement in the ethical practices and related disclosures. Furthermore, in line with the hypothesis, the caring practices measured in the disclosures are found to lower the earnings volatility. This study contributes to the literature of business ethics, especially the ethics of care, by offering the assessment of corporate caring level through disclosures. The practical implication of the study is expected to raise awareness of the importance to be more caring in conducting business as it can support companies in maintaining the level of stable earnings.
topic Caring
ethics of care
content analysis
earnings volatility
url https://ro.uow.edu.au/aabfj/vol12/iss4/4/
work_keys_str_mv AT desiadhariani howdeepisyourcareanalysisofcorporationscaringlevelandimpactonearningsvolatilityfromtheethicsofcareperspective
AT sylviaveronicasiregar howdeepisyourcareanalysisofcorporationscaringlevelandimpactonearningsvolatilityfromtheethicsofcareperspective
_version_ 1725391378503958528