Articles from Januari 2018



Kunjungi:

http://www.rusdint.com/

CORPORATE SOCIAL RESPONSIBILITY (CSR) DISCLOSURE AND THE IMPLICATIONS OF EARNING RESPONSE COEFFICIENT (ERC)

Dr. Rusdin
Departement of Business Administration Science
Padjadjaran University
e-mail: rusdin@unpad.ac.id

ABSTRACT

One of the reasons is social management reporting for strategic reasons. Although it is not yet compulsory, but it can be said that almost all the companies listed on the Indonesian Stock Exchange already disclose information about CSR in its annual report in diverse levels. The purpose of the study is to examine the effect of the information of Corporate Social Responsibility disclosed in the companies’ annual reports on the informativeness of earnings (measured by earning response coefficient, ERC). The study hypothesized that there is negative effect of CSR disclosures level on the ERC since the CSR disclosures provide investors more information which is not captured by the accounting earnings. The sample of the study consist of 135 annual reports 2013 and 2014 of the companies listed at the Indonesia Stock Exchange. The empirical results of the study show that the level of CSR disclosures has negative effect on the ERC as predicted. The results of the study indicate that investors assess the CSR information disclosed by the companies in their annual reports for their investment decision.

Keyword: corporate social responsibility, disclosure, earnings response coefficient
http://jurnal.unpad.ac.id/adbispreneur/article/view/10238