DOES CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE AFFECT STOCK RETURN? (AN EMPIRICAL STUDY IN INDONESIA CRUDE PETROLEUM AND NATURAL GAS INDUSTRY)

Astrie Krisnawati, Yuliana Sari

Abstract

The Government of Republik Indonesia has enforced an obligation for oil and gas mining companies to carry out Corporate Social Responsibility (CSR) activities and disclose them in annual reports. In addition to complying with the obligation, disclosing CSR can also show a good image to the public that the company does not only pursue profit but also conducting sustainable development. CSR disclosure is expected to be one of the considerations of investors and potential investors in making a decision to choose the place of investment. Commonly, the more interested investors, the higher the stock price, thus the higher the stock return. It usually occurs when the disclosure information is released to the public. This study aims to determine whether CSR disclosure can affect stock return. The research was conducted in the oil and gas mining sub-sector of the Indonesia Stock Exchange (IDX) within 2013-2015. Applying panel data regression, the results of this study indicate that CSR disclosure has a significant positive effect on stock return with leverage and firm size as the control variables.
Keywords: CSR disclosure, stock return, leverage, company size

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