THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY TO CORPORATE RESILIENCE DURING COVID-19 PANDEMIC: CASE OF IDX LISTED COMPANY

• Main Author: Adaningtyas, Sharfina
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57037
• Institution: Institut Teknologi Bandung

During the coronavirus (COVID-19) pandemic, many companies became actively involved in various corporate social responsibility (CSR) activities to highlight their resilience to investors. However, there are still many companies that don't publish Sustainability Reports. The Indonesian Financial Services Authority (OJK) mandates publicly listed companies to apply Sustainability Report 2020 by April 2021. This research aims to know the effect of corporate social responsibility on corporate resilience during the COVID-19 pandemic in Indonesia. Following the MSCI ESG research method, this research will evaluate each category of environmental, social, and governance disclosures based on GRI Index 2016. The research conducted on all sector publicly listed companies in Indonesia Stock Exchange for 2020. The methodology used in this research is data panel Fixed Effect Model (FEM) regression with cross-section weights to examine the corporate resilience interpreted by the abnormal stock return of the companies. Firm performance is used as a control variable interpreted by return on asset (ROA). The result indicates that corporate social responsibility environmental and social disclosures has a significant effects, meanwhile governance disclosures has no significant effects on corporate resilience. This leads to the conclusion that corporate social responsibility simultaneously has a significant effect on corporate resilience. ROA as profitability has no relationship and influence to support CSR’s strong influence on stock returns. The regression result also emerges that perhaps there is a pronounced individual on publishing the Sustainability Report effect as well as time effect. This research suggests it is better for investors to be selective in selecting the stock of the companies and suggest the company to focus on disclosing CSR, using the same standards for establishing the sustainability reports following GRI Index 2016.