The Effect Of Company Characteristics On Corporate Social Responsibility Disclosure And It’s Impact On Stock Price (Study at Companies Listed on Indonesia Stock Exchange Period 2014-2016)

Abstract

This study aims to examine the influence of company characteristics including Profitability, Leverage, Managerial Ownership, Company Size on Disclosure of Corporate Social Responsibility (CSR) and the impact of Corporate Social Responsibility Disclosures on Stock Prices. This study was conducted on companies listed on the Indonesia Stock Exchange in the 2014-2016 period. The sample selection procedure is done by using purposive sampling method and the results are 14 companies that meet the criteria. The analysis technique that will be used is a two-stage regression analysis. The results showed that the characteristics of the company proved to have an effect on CSR disclosure, among others: profitability and firm size while leverage and managerial ownership were not proven to influence CSR disclosure. Other findings indicate that CSR disclosure affects stock prices as measured by abnormal returns. This finding proves that if the company has good environmental and social performance, investors will respond positively through an increase in stock prices.

Keywords: Company characteristics, Corporate Social Responsibility Disclosure, Share Prices