Empirical Testing of Corporate Social Responsibility Disclosure As A Mechanism to Improve the Earnings Persistence and Stock Return in Indonesia
Emillia Nurdin, Djabir Hamzah, Syarifuddin and Harryanto
This study aims to analyze and explain the role of Corporate Social Responsibility (CSR) disclosure as a mechanism to improving the earnings persistence and stock return. The population used in this study are all companies listed in Indonesia Stock Exchange that were selected by using purposive sampling method to generate 125 companies and has gone through the process of testing various assumptions Goodness-of-Fit Model to produce 83 samples tested by using path analysis with the Amos (analysis of Moment Structure) software version 21. The results showed that: CSR disclosure is a positive and significant effect on the earnings persistence, CSR disclosure is no effect on stock returns, earnings persistence is no effect on stock returns. By using the Sobel test, the results of this study indicate that there is no role of mediating the earnings persistence variables between CSR disclosure on stock returns.