Author(s): Nurdiono Nurdiono, Doni Sagitarian Warganegara, Afri Aripin, Agus Zahron, Edwin Mirfazli, Leire San Jose, Daniela Ventsislavova Georgieva
The paper analyzes the effects of disclosed CSR (community social responsibility) information on the market performance of Indonesian companies. Fifteen trade companies listed on the Indonesia Stock Exchange are observed from 2014 to 2016. CSR information is derived from annual reports and financial statements. We find that CSR affects Stock Return (SR), Debt Equity Ratio (DER), and Return on Equity (ROE). We argue that CSR disclosure has a positive but non-significant effect on SR and that it has a negative but non-significant effect on corporate market performance. In addition, it has a positive and significant effect on DER and ROE. Our results contribute to a more in-depth understanding of the impact of non-financial information on market performance.