The association between corporate social responsibility disclosure of cigarette company and company’s financial performance

Abstract

This research examines the association between Corporate Social Responsibility (CSR) disclosure and financial performances-Return on Assets (ROA), Return on Equity (ROE), and Stock Return-within the cigarette companies listed on Indonesian Stock Exchange. This research used 3 cigarettes companies; PT Gudang Garam Tbk., PT Hanjaya Mandala Sampoerna Tbk., and PT Bentoel Internasional Investama. Simple linear regression is used to examine the association between CSR disclosure and the cigarettes companies’ financial performance. The study reveals that the disclosure of CSR only has positive influences toward Return on Assets; yet, it does not correlate with the Return on Equity and Stock Return.

Keywords

• Corporate Social Responsibility (CSR)
• Return on Assets
• Return on Equity
• Stock Return