Analysis of Good Corporate Governance and Corporate Social Responsibility Disclosure on Cost of Equity Capital in Listing CGPI and BEI 2013-2017

Abstract

The research objective to be achieved is to provide understanding and knowledge to the public, especially investors and creditors regarding the application of good corporate governance and corporate social responsibility disclosure to the cost of equity capital and can be used as a reference for future researchers and stakeholders (investors, creditors and the government) in making relevant and reliable decisions.The method used is quantitative research with secondary data taken from IICG and annual reports on IDX as well as company websites with data collection techniques using purposive sampling method. Analysis of the data used is multiple linear regression. The research population is the issuers participating in the Indonesian Institute of Corporate Governance (IICG) and listing on the Indonesia Stock Exchange during the observation period of 2013 to 2017. The sample in this study amounted to 45 with 9 issuers each year.The results of this study indicate that the application of good corporate governance has a positive effect on the cost of equity capital, and corporate social responsibility disclosure has a negative effect on the cost of equity capital.

Keywords: good corporate governance, corporate social responsibility, cost pf equity capital

DOI: 10.7176/RJFA/10-16-04

Publication date: August 31^st 2019