Event Title

P-10 The Effect of Mandatory Corporate Social Responsibility on Share Returns in Indonesia

Presenter Information

Stephen Erich, Andrews University

Location

Buller Hallway

Start Date

3-7-2014 2:30 PM

End Date

3-7-2014 4:00 PM

Description

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

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Mar 7th, 2:30 PM Mar 7th, 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.