PENGARUH CORPORATE SOCIAL RESPONSIBILITY DAN LEVERAGE TERHADAP EARNING RESPONSE COEFFICIENT

Abstract

This research aimed to examine empirical evidence of the effect of corporate social responsibility (CSR) and leverage on the earning response coefficient (ERC). While, Earning Response Coefficient of response caused by company profit information which was published. The research was quantitative. The sample was manufacturing companies which were listed on Indonesia Stock Exchange for 4 years 2014-2017. Furthermore, this research used purposive sampling. In line with, there were 39 companies or 156 firm years. Moreover, the data used secondary which were taken from Indonesia Stock Exchange (www.idx.com) and (www.finance.yahoo.com). In addition, the data analysis technique used multiple linear regressions analysis with SPSS version 20. The research result concluded (1) corporate social responsibility (CSR) had positive effect on the ERC. (2) leverage did not affect on the ERC. (3) the control variable of PBV had negative effect on the ERC. (4) the control variable of ROA did not affect on the ERC.
Keywords: Corporate Social Responsibility, Leverage, Earning Response Coefficient, Return On Asset, Price to Book Value