ANALYSIS OF THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE LEVEL TOWARD COST OF EQUITY CAPITAL OF COMPANY LISTED IN INDONESIA STOCK EXCHANGE ON 2010 - 2013

Abstract

The purpose of this research is to analyze how big the influence of disclosure level of corporate social responsibility toward cost of equity capital of companies listed in Indonesia Stock Exchange on 2010-2013. To determine the sample of the research, researcher use purposive sampling method with 126 companies as sample. The data of the sample is taken from www.idx.co.id. This research use multiple regression method and also classical assumption test such as normality test, multicollinearity test, heteroscedasticity test and autocorrelation test. The hypothesis test is include T-test and F-test to examine the parameter existence in regression. The variables of this research are COE as dependent variable, CSR as independent variable and SIZE, LEV and ROE as control variable. The result of multiple linear regression show variable CSR, SIZE and ROE have positive correlation with COE. In opposite, variable LEV have negative correlation toward COE. The hypothesis testing show that simultaneously, CSR, SIZE, ROE and LEV significantly affect COE. Partially, CSR and SIZE significantly affecting COE, while LEV and ROE does not affecting COE. The result of Coefficient of Determination (R2) of this research is 0.356 which independent variable can explain 35.6% variation of the dependent variable.