Pengaruh Tanggung Jawab Sosial Perusahaan Terhadap Biaya Modal Ekuitas di Indonesia

Saarce Elsye Hatane, Stefany Lia Jonathan, Maria Brigitta Adriane Irianto


The purpose of this study is to investigate the association of Corporate Social Responsibility
(CSR) on the Cost of Equity (COE) in Indonesia. This study examines 65 public companies in Indonesia
from different industries, except the banking and financial sectors, which fully disclose CSR for 5
years, from 2015 to 2019. A total of 325 observations are examined using ESG scores as an independent
variable and COE as a dependent variable. As a result, it finds that CSR performance can reduce COE.
Companies in Indonesia also need to improve their CSR performance because investors pay attention
to non-financial aspects such as sustainability performance. CSR disclosure is a company's effort to be
transparent to stakeholders, thereby reducing information asymmetry. In line with stakeholder
theory, the information provided in support of CSR in the annual report also assists in the needs of
stakeholders. However, this research is limited to Indonesia’s companies only. Different countries may
have other implications, but countries with similar characteristics as Indonesia may benefit from this
study. In addition, the coefficient of determination in this study is 15%. Future research can expand
this research to fill in the remaining 85% of other variables to explain the management of the COE.


CSR, Sustainability, Cost of Equity, Indonesia

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