THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE TO COMPANY FINANCIAL AND MARKET PERFORMANCE (An Analysis on Companies Listed in BeI)

Setiawan, Akhmad Dody (2009) THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE TO COMPANY FINANCIAL AND MARKET PERFORMANCE (An Analysis on Companies Listed in BeI). Other thesis, Fakultas Ekonomi.

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Abstract

The purpose of this research is to test the effect of CSR on company,financial and market performance. This research is motivated by the fact that there is a lower level of activities of CSR and its disclosure and also mixed results from previous research. This research used Corporate Social Disclosure Index (CSDI) as a measure of CSR disclosure, based on indicators from Global Reporting Initiatives (GRI). The samples of this research are 47 public companies, listed in Indonesian Stock Exchange (IDX) year 2004 until 2007. Relatively lower score of CSDI shows that CSR disclosure in company's annual report is still low. This may due to there is still no mandatory rules regarding CSR disclosure in Indonesia and the lack qf company's awareness of the importance of CSR and its disclosure in annual report. Test results show that CSR disclosure has negative and unsignificant effect on Return on Equity (REO) as a measure of financial performance, and CSR disclosure do not has signficant effect on cumulative abnormal return (CAR) as a measure of market performance. Keywords: Corporate Social Responsibitity; Return on liquity; Cumulative Abnormal Return.

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