Logo

Respon Investor Terhadap Implementasi CSR: Teori Legitimasi Organisasional dan Decision Usefulness

Juniarti, (2013) Respon Investor Terhadap Implementasi CSR: Teori Legitimasi Organisasional dan Decision Usefulness. In: The 6th Doctoral Colloquium and Conference , 27-11-2013 - 28-11-2013, Yogyakarta - Indonesia.

[img] PDF
Download (525Kb)

    Abstract

    This research is aimed to seek the evidence of investors response toward CSR implementation based on legitimacy and decision usefulness theory. Enactment of Indonesian Corporation Act No. 40 in 2007 has invited a number of pros and cons. According to legitimacy theory, investors should support the implementation of CSR since it is needed to obtain legitimacy from their stakeholder as a prerequisite to continue its operation (Tilling 2006), however investors response were not always consistent with the theory. Various prior researches proved that the average, CSR was responded negatively in the short term as well as the result of studies using long-term data. Following it up the existing gap between empirical results and legitimacy theory, this study tries to add the explanation of investor response using decision usefulness arguments. According to decision usefulness approach, investors are rational, under uncertainty they tend to avoid risks with rational actions (Scott 2012). Therefore, investors response to the implementation of CSR are conditional and depend on the companies performance during the CSR implementation. This study uses quantitative approach as it aims to test the association among variables and its result can be generalized. Unit of analysis is listed companies in Indonesian Stock Exchange (IDX) for the period 2008-2012. This research proves that investors do not response the implementation of CSR, in the absent of performance. Implementation of CSR that followed by improvement of CSR is positively responded by investor and third that company size do not influence investors response to CSR implementation. Keywords: Corporation Act No. 40 in 2007, corporate social responsibility, legitimacy theory, decision usefulness theory, investors response

    Item Type: Conference or Workshop Item (Paper)
    Uncontrolled Keywords: Corporation Act No. 40 in 2007, corporate social responsibility, legitimacy theory, decision usefulness theory, investors response
    Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
    Divisions: Faculty of Economic > Accounting Department
    Depositing User: Admin
    Date Deposited: 04 Jul 2014 22:58
    Last Modified: 29 Aug 2014 19:22
    URI: http://repository.petra.ac.id/id/eprint/17290

    Actions (login required)

    View Item