Corporate Social Responsibility Effect on Information Asymmetry

DOI

10.2991/soshec-17.2018.34How to use a DOI?

Keywords

social responsibility, information asymmetry, industry effect.

Abstract

This study was aimed to answer the question of whether Corporate Social Responsibility CSR disclosure as one form of voluntary disclosure can reduce the asymmetric information in Indonesian capital market, as a developing country. In other words, whether information about the performance of CSR provides benefits to investors by reducing uncertainty. The 267 samples used were all companies listed on the Indonesia Stock Exchange from 2014 to 2015, except for the financial and banking industries. Asymmetry information would be measured with bid ask spreads, the larger the spread, the higher the asymmetry information. CSR disclosure would be measured by content analysis, using the index of previous research that has been adjusted to the conditions in Indonesia, then the sample will be separated based on the mining industry, manufacturing, and services. The results of this study showed that the disclosure of corporate social responsibility could reduce information asymmetry. Companies in the manufacturing industry were more sensitive to social and environmental issues covered by CSR activities so that CSR information on this industry was more relevant to investors than to the service industry.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Rizky Eriandani
PY  - 2017/10
DA  - 2017/10
TI  - Corporate Social Responsibility Effect on Information Asymmetry
BT  - Proceedings of Social Sciences, Humanities and Economics Conference (SoSHEC 2017)
PB  - Atlantis Press
SP  - 172
EP  - 176
SN  - 2352-5398
UR  - https://doi.org/10.2991/soshec-17.2018.34
DO  - 10.2991/soshec-17.2018.34
ID  - Eriandani2017/10
ER  -