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http://dx.doi.org/10.20522/APJBR.2019.3.2.1

Dimensions of Corporate Social Responsibility and Market Performance: Evidence from the Indonesia Stock Exchange  

Sudana, I Made (Faculty of Economics and Business, Universitas Airlangga)
Sasikirono, Nugroho (Faculty of Economics and Business, Universitas Airlangga)
Madyan, Muhammad (Faculty of Economics and Business, Universitas Airlangga)
Pramono, Rifqi (Faculty of Economics and Business, Universitas Airlangga)
Publication Information
Asia Pacific Journal of Business Review / v.3, no.2, 2019 , pp. 1-25 More about this Journal
Abstract
This study aims to examine the relationship between certain dimensions of Corporate Social Responsibility (CSR) with market performance, measured by Tobin's Q, on companies within various industries in Indonesia. This study disaggregates CSR into 7 dimensions: environment, energy, occupational safety and health, employee, product, community, and general. Samples consisted of 385 companies listed on the Indonesia Stock Exchange (IDX) during 2007-2014. OLS analysis shows that CSR contributes greatly to the formation of market performance of consumer goods, agriculture, and miscellaneous industries. The dimensions of CSR contribute differently to the formation of Q ratios in different industries. We also found that there are differences in the speed of effect of several dimensions of CSR on the formation of market performance; some CSR dimensions give immediate effect while others are lagged.
Keywords
Corporate social responsibilities; Industry type; Market performance; Indonesia;
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