Concerning SIZE, the study found empirical evidence to support the hypothesis that public visibility (which proxied by size) was positively associated with corporate social and environmental discosure level. This finding confirms the political cost hypothesis that firms with greater visibility in the political arena and, therefore, are attractive targets for government-imposed wealth transfers (e.g. taxation, regulation, government subsidies) have incentives to make more voluntary disclosures in an effort to minimize political costs (Watts & Zimmerman 1986). The fourth firm characteristic was earning management as a proxy of political cost hypothesis. In Indonesian contex, the finding confirms the political costs hypothesis that the more a firm is subject to potential wealth transfers in the political process, the more its management is likely to adopt accounting policies that reduce such a transfer (i.e. earning). Earnings quality is the inverse of earnings management. Consequently, firms with good earnings quality will have low earnings management, and vice versa (Yip et al., 2011). If the association is driven more by political cost considerations, it can be expected that corporate social and environmental disclosure is positively associated with earnings management.