TITLE

THE QUALITY OF VOLUNTARY CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE EFFECT ON THE FIRM VALUE OF SERVICE COMPANIES LISTED IN THE INDONESIAN STOCK EXCHANGE

AUTHOR(S)
Karim, Nina Karina; Mukhtaruddin; Marwah, Taufiq; Abukosim; Saftiana, Yulia
PUB. DATE
January 2013
SOURCE
Annual International Conference on Accounting & Finance;2013, p39
SOURCE TYPE
Conference Paper
DOC. TYPE
Article
ABSTRACT
The objective of this research is to explore the quality of voluntary corporate social responsibility (CSR) disclosure and how it effects the firm value of service companies that are listed in the Indonesian Stock Exchange within the period of 2008-2010. The research analized 120 reports from 40 companies in the service sector that contain CSR contents to see the depth of CSR disclosure and whether or not the quality of the voluntary disclosure has an effect on the companies' firm value. The association between the quality of voluntary CSR disclosure and firm value is analyzed using crosstabs statistics and single regression method by SPSS 17.0 program. The quality of voluntary CSR disclosure is assessed by using the six criteria set by Global Reporting Initiative (GRI) through 24 tests of quality in the G3.1 Guidelines that are elaborated further into 50 indicators. Firm value is represented by the free cash flow to the firm (FCFF) discounted at the rate of weighted average cost of capital (WACC). Based on the value of symmetric Lambda from the crosstabs statistics, it shows that there is a significant association between the quality of voluntary CSR disclosure and firm value of companies in the service sector which for the period of 2008-2010 yielded 0.716-0.816. The results from the single regression method also supports the alternative hypothesis that there is a positive association between both variables shown by the increasing level of firmvalue following the rise of quality.
ACCESSION #
88018530

 

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