P-10 The Effect of Mandatory Corporate Social Responsibility on Share Returns in Indonesia
Abstract
The purpose of this study is to reveal investor perceptions regarding the relatively new phenomenon of government involvement in Corporate Social Responsibility (CSR). To accomplish this we use an event-study methodology to analyze the effect of the Limited Liability Company Act of 2007, passed by the Indonesian government, on share prices during a three-day window in July 2007. Drawing from the vast amounts of event-study literature, we are applying this method to share prices for the first time. As more countries begin exploring this type of legislation, our findings will provide a foundation for other lawmakers to consider, as well as help to shape corporate attitudes toward such legislation.
Location
Buller Hallway
Start Date
3-7-2014 2:30 PM
End Date
3-7-2014 4:00 PM
P-10 The Effect of Mandatory Corporate Social Responsibility on Share Returns in Indonesia
Buller Hallway
The purpose of this study is to reveal investor perceptions regarding the relatively new phenomenon of government involvement in Corporate Social Responsibility (CSR). To accomplish this we use an event-study methodology to analyze the effect of the Limited Liability Company Act of 2007, passed by the Indonesian government, on share prices during a three-day window in July 2007. Drawing from the vast amounts of event-study literature, we are applying this method to share prices for the first time. As more countries begin exploring this type of legislation, our findings will provide a foundation for other lawmakers to consider, as well as help to shape corporate attitudes toward such legislation.
Acknowledgments
J.N. Andrews Honors Scholar
Advisor: LeRoy Ruhupatty, Accounting, Economics and Finance