DETERMINANT OF ISLAMIC SOCIAL REPORTING ON COMPANY REGISTERED AS INDONESIA SYARIA STOCK INDEX

The purpose of this study is to study several factors that influence the Islamic Social Reporting Company. These factors are company size and profitability. The variables in this study are company size and profitability, while the dependent variable is Islamic Social Reporting. The research method uses explanation research with a quantitative approach. The sample of this study is a company registered as the Indonesian Syariah Stock Index in 2016. The sample was selected by purposive sampling method which obtained 179 samples. Data Assumption Test for bias data bias bias. Test of Multiple Linear Regression Analysis, Determination Coefficient Test, Statistical Test and Statistical Test to test the hypothesis. Based on this research, it can be proven that leverage has a positive and insignificant effect on the Islamic Social Reporting Company in the form of the Indonesian Islamic Stock Index, while the positive and significant profitability of the Islamic Social Reporting Company in the form of the Indonesian Islamic Stock Index. In addition, leverage and profitability together have a positive and significant effect on the Islamic Social Reporting Company in the form of the Indonesian Islamic Stock Index.


INTRODUCTION
This is a fact that a company which is present in one environment will bring both positive and negative impact for that environment. There are somepositive impacts such as it gives the availability of job opportunity, provides the things needed by society to be consumed, pays the tax gives donation, etc. However, there are some excessive negative externalities of industrialization such as some national-scale and international-scale cases of global warming,air pollution, poisoning, noise,discrimination, coercion, 'haram' (forbidden) food production, radiation as well as the present of deadly sickness because of the infection of chemistry from industrialization.
Corporate Social Responsibilityis a general discourse in business in Indonesia,this phenomenon is because of the increasing trends of CSR on business. The practice and the disclosure of CSR in Indonesia has grown up with the raising attention of global society concern toward the development of transnational or multinational company which operate in Indonesia. Besides, the disclosure of CSR is also related to the damage of environment in Indonesia such as deforestation, air pollution, water pollutin, climate change, etc. In the share market, that condition is seen from the implementation of index which includes stocks of companies with CSR practice.
The company which can implement a good CSR, it will give a feedback for that company in the form of public support and social strengthening factor and sustainable development.
Furthermore, the success of company commercial will be determined by how the company can manage its social responsibility towards its operational surrounding community.
The development of CSR in Islamic economic also impacted on the increase of community attention towards syaria institutions or syaria institution. This increasing attention indicated that the needs of society towards syaria institution have grown up from time to time. The syaria stock market as an institution and profession whih had important rules in increasing the syaria share market companies which wanted to participate in syaria stock market in Indonesia.
In Indonesia, the development of syaria stock market was started by the establishment of Jakarta Islamic Index (JII).
Othman and Thani (2010) explained that the fast development of syaria stock market made companies included in the list of syaria stockwhich is epected to preview a religious dimension on the disclosure of annual report aiming at giving benefits for the muslim stakeholders. Thus, a guideline was needed to determine howfar these companies which were listed in the syaria stock could make social reporting which included the religious aspects in annual report. Othman et al. (2009) developed the relevant disclosure index which has been mentioned before in the Islamic Social Reporting (ISR) Index. ISR was firstly stated by Haniffa (2002), then it was extensively developed by Othman et al. (2009) in Malaysia. Haniffa (2002 stated that there was limits on the social conventional reporting ; therefore, she stated the frame concept of Islamic Social Reporting based on the syaria provision which not only helped the company to fulfill its responsibility toward Allah SubhanaahuwaTa'alaand community. Some researchers who have conducted research on ISR wereHaniffa (2002), Haniffaand Hudaib (2007), Othman et al (2009), Othman andThani (2010), Lestari (2013), Putri (2014), and some researchs have been done in some universities in Indonesia.
Islamic Social Reporting is the benchmark of the implementation of the social performance in syaria banking and other syaria business included the compilation of CSR standard set by AAOIFI which later was developed by the researchers about the items of CSRwith Islamic entity. Items of Islamic Social Reportingwhich were developed were called Index ISR. Specifically, this index is the extension of social reportingincluded the community expectation about the company's role in economy and company's role in the spiritual perspective. ISR index was trusted to be the first step on CSR disclosure based on Islamic perspetive (Fitriaand Hartati, 2010).
In a view of that, Othman et al. (2009)   From 351 emitent stocks and public company stocks, there were three emitent stocks and public company of syaria entity and 348 emitents which did not mention their activities based on syaria principle, but they were included to the criteria of syaria stock. From those 351, the biggest DES came from trade, service, and investment which were for about 90 stocks or around 25,64% out of the total of. Then, followed by property, real estate, building construction which were 59 stocks or 16,81%, and basic industry and chemical industry for about 52 stocks or 14,81 % out of the total of DES. (https://beimediahariini.wordpress.co m) Based on the background of problems above, therefore, the formulation of the problem in this research is "Doleverage and profitability influence partially and simultaneously towardIslamic Social Reporting of company listed in Indosia Syaria Stock Index?"Based on formulation of the problem above, the aim of this research is tofind out the influence of leverage and profitability partially and simultaneously towards Islamic Social Reportingof company listed in IndosiaSyaria Stock Index.

LITIRATURE RIVIEW
In line with the increasing of the implementation of Corporate Social Reporting (CSR)in business, then the intention of creating social reporting also increased. There are so many opinions about the disclosure of socialreporting.SocialReportingis the extension of the financial reporting system which refelects new estimation and was wider than the community in accordance with the roles of business community in economy. (Hannifa,2002).
Meanwhile, according to Gray et al.(1987) social reportingwas a process to communicate the environmental social effect due to the economic activity conducted by company to community. The rules of social reporting can be both accepted by some communities and refused by others. This was because the ethic code in socialreportingwas relative (Lewis and Unerman,1999).There was no way to decide the right ethic code. Besides, Grayetal.(1987)stated that identified responsibility of an organization is a problem because responsibility alsways changes all the times.
Siwarand Hossain (2009) stated that the basic foundations of Islam are aqidah (belief and faith), worship, and akhlaq (morality and ethics). Besides, the other principle for Muslim is tauhid (worshiping the only God Allah Subhanallahuwa Ta'ala) One of the forms of accountability in the perspective of Islamic economic is the Social Reporting responsibility which was in line with the syaria principle. In conventional economic,this social reporting was known as the extension of financial reporting system which reflected the wider social expectation in relation with the role of community in economy or company activity.
Level ofleverageis about the ability of a company to finish its all responsibilities toother party. The company must explain to the investor, creditor and otherrelated party about their ability to pay loan and the impact of the loantowards the company activity. Company with high leveragelevel would have a push to give information and one of the information was a social information to the party outside. The disclosure would lessen the assymetric of information and uncertainty about the prospect of company in the future and this aimed at giving conviction to creditor that compay did not break covenants(agreement) (Ramadhani, 2016).
Company with high leverage had the responsibility to do wider

Determinant Of Islamic Social Reporting On Company Registered
As Indonesia Syaria Stock zndex|161 disclosure than that of the company with lower leverage ratio. Kolsi (2012)in Rama and Meliawati (2014)argumented that company with haigher leverage ratio would be more careful than the company which depended much on capital loan.As a result, the company with high leverage ratio would disclose wider information. The research which was conducted by Pramudinata (2015) and Ramadhani (2016) proved that leverage influenced positively and it was significant to the disclosure of Islamic Social Reporting. Disclosure of social responsibility reflected the company approach in doing dynamic and multidimensional adaptation with the environment. The relation between social responsibilities and company profitability which reflected that social reaction needed managerial style conducted by the management in order to make the company receive profit (Bowman andHaire,1976 in Sembiring,2003).
In Islam perspective, a company would disclose in a whole without seeing whether its company gave profit or not (Haniffa,2002).But Janggu(2004) argued that a company with higher profitability would disclose more information than that of with lower profitability.
According to Watts and Zimmerman (1986), a company with higher profitability would do a policy intervention. Therefore, this company would disclose detail information in its annual report to decrease its political cost and to show the financial performance to public. The reassarch conducted byOthman et al.

METHOD
This research was conducted in Indonesia stock Exchange through the legal site that was accessed online http://www.idx.co.id.
The time dimension used was cross sectional time, which meant that this research was conducted in certain time. In this research, it was conducted in 2016. It was an explanation research with quantitative approach. The population of this research was all registered company as Indonesia Syaria Stock Index in 2016. Sampling technique used was nonprobability samplingwith purposive sampling. Dataused in this research was in the formof secondary data in 2016 annual report. That data was taken from the share market publication, especially one which was available in Indonesia Stock Exchange. The typesof data was a documenter data in the form of annual report in 2016 from the company registered in Indonesia Syaria Stock Index (ISSI).
The Data analysis method used in this research was a multiple linear regression. This multiple linear regression study the form between two or more of independent variable (X) and dependent variable (Y). Meanwhile the dependent variable (Y) in this research was in the form of response calculated based on the independent variables (X).
To analyze Islamic Social Reportingas a dependent variable with some independent variables, it used multiple linear regressions. This reseach model was estimated by using OLS (Ordinary Least Square)method in each hypothesis. Normality test aimed at testing whether in the regression model, residual variable had normal distribution. Normality test used normal p-p plottest. The basic of the analysis was if the dots were spread surpressedly around diagonal line and in the same direction following its diagonal lines, it could be concluded that the data had a normal distribution (Ghozali, 2011).
Heterodexity testaimed to find out whether varianceof the residual data from one observation to other observation was different or stayed the same. The basic of analysis was if there was an organized pattern such as certain dots created patterns of ( wavy,widen, then narrow)then the Heteroscedasticity occurred. If there was no clear patternsspreadedover and under 0 on Y axis, there was no Heteroscedasticity (Ghozali, 2011).
Multicollinearity test was used totest whether in its reression model there was correlation among independent variables or not. Ingeneral, the value used to show the presence of multicollinearity with the value of Tolerance ≤ 0,10or equal to the value if VIF ≥ 10. A good regression model showed no problem of multicollinearity, (Ghozali, 2011).
Autocorrelation test was used to find out the existence of unusual assumption of classic autocorrelation which was correlation occurred between residual in one observation and other observation in the regression model.If the value of DW was between -2 and+2 or 2≤DW≤+2then, there was no autocorrellation (Ghozali, 2011).
Determinant Coefficient test was used to find out the value of contribution or the influence of independent variable quadrantingthe coefficient correlation. The value of determinancy coefficient was between zero and one. The small value of R²meant that the ability of independent variables to explain variation of dependent variables was really limited. The value which was closer to one meant that independent variable gave all information neede to produce dependent variables (Ghozali, 2011).
Method used to test hypothesis in this research was simultant significant test (F-test) and significant test of individual parameter (u t test). F test showed if all independent variables inserted in the model had simultaneous influence to dependent variable. However, t-test showed how one individual variable could explain variation of dependent variables (Ghozali, 2011).

RESULTS AND DISCUSSION
Objects in this research were companies registered as Indonesia Syaria Stock Index(ISSI) in Indonesia Stock Exchange within period of observation in 2016. All the data used

Determinant Of Islamic Social Reporting On Company Registered
As Indonesia Syaria Stock zndex|163 in this research received from the annual financial report published by Indonesia Stock Exchange.The choosing of sample used purposive sampling method in which the samples included in this research must fulfil certain criteria. After they were selected based on the criteria, then there would be final samples for about 179 companies. Based on table2above, it showed that the value of VIF (Variance Inflation Factor) was 1,001which was less than 10 and the value of tolerancewas 0,999 which was over 0,1 in all variables used in this research. This condition showed that there was no perfect linear correlation among independent variables. Therefore, the regression model in this research could not find problem of multicollinearity and it has fulfilled the criteria of a good regression model. Besides, table 2 above showed that the value of DW (Durbin-Watson) resulted from the regression model was 1,928. Because the value of DW was between -2and 2 or -2≤ 1,928 ≤ 2, thus, the model of regression in this research was free from autocorrelation problem . Based on table2above, it was known that Fcountfor about 117,966in which Fcountwas bigger than Ftable (df1=2, df2=176, α=0,05) which was for about 3,047or 117,966>3,047. Besides, it was known the value ofsig was for about 0,00 in which sig value was smaller than 0,05 or 0,000< 0,05, thus Ho was rejected and Ha was accepted, it meant that leverageand profitabilitysimultaneously influence the disclosure of Islamic Social Reporting.

Table2. Multi and Autocorrelation
Then,it was known that the value of tcountfor leveragevariable was 1,455in which the value of tcountwas smaller than ttable (df=177,α=0,05) which was for about 1,974or 1,455 <1,974. Moreover, it was known that the value of sig.was 0,148where the the value of sig.wasbiggerthan 0,05or 0,148 > 0,05 thus, Ho was accepted and Hawas rejected, it meant that leverageinfluenced insignificantly to the disclosure of Islamic Social Reporting.
Meanwhile, the value tcountfor profitability variable for about 15,240in which the value of tcountwas bigger than ttable (df=177,α=0,05) which was 1,974or15,240>1,974. Moreover, it was known the value of sig.was 0,000 in which sig.value was smaller than 0,05 or 0,000< 0,05 thus, Ho was rejected and Ha was accepted, it meant that profitability influenced significantly toward disclosure of Islamic Social Reporting.
The first hypothesis tested the impact of leveragetoward disclosure of Islamic Social Reporting. Theamount of the influence of leveragetoward disclosureofIslamic Social Reportingwas known from the value of Beta coefficientwhich was for about 0,012, it showed that this was insignificant impact because the value of probability (sig) was 0,148and it was bigger than 0,05. Because the value of probability (sig) leverageis bigger than 0,05, therefore, leverageinfluenced positively and insignificantly toward the disclosure ofIslamic Social Reporting, thus the First Hypothesis (H1) was rejected. This result was supported by the rsearch conducted by Rama and Meliawati (2014) which found the same result.
Second hypothesis tested the influence of profitabilitytoward disclosure of Islamic Social Reporting. The value of influence of profitabilitytoward disclosure of Islamic Social Reporting. It was known from the value of Beta coefficient was 15,240, showing that this was significant because the value of probability (sig) was 0,000< 0,05. Because the value of probability (sig) profitability smaller than 0,05, meaning thatprofitability influenced

Determinant Of Islamic Social Reporting On Company Registered
As Indonesia Syaria Stock zndex|165 positively and significantly to disclosure ofIslamic Social Reporting, therefore, the second Hyphothesis (H2) was Accepted.This result was supported by research conducted by Othman et al (2009),Lestari (2013, andPratama, dkk (2016) which found the same result.
The third hypothesis tested the impact of leverageand profitabilityaltogether toward the disclosure of Islamic Social Reporting. The amount of these leverageand profitability altogether towards the disclosure of Islamic Social Reportingwas known from the value of coefficient determinant which was for about 0,573or57,3%. It showed a big significant impact because the value of probability (sig) was 0,000 and it is less than 0,05.
Because the simultaneous value of probability (sig) of leverageandprofitability towards the disclosure of Islamic Social Reportingwhich is less than 0,05, it means leverageand profitabilitygave positive and significant impact towards Islamic Social Reporting,therefore, the third hypothesis(H3) was accepted.

CONCLUSION
Based on the result of the research, it can be concluded as follows: