Research Article
Corporate Social Responsibilities and Cost of Capital
@INPROCEEDINGS{10.4108/eai.3-10-2020.2306590, author={Fenny Marietza and Intan Kurnida Julianti and Nila Aprila and Madani Hatta and Baihaqi Baihaqi}, title={Corporate Social Responsibilities and Cost of Capital}, proceedings={Proceedings of the 3rd Beehive International Social Innovation Conference, BISIC 2020, 3-4 October 2020, Bengkulu, Indonesia}, publisher={EAI}, proceedings_a={BISIC}, year={2021}, month={5}, keywords={corporate social responsibility disclosure; the cost of capital; the cost of equity; the cost of debt}, doi={10.4108/eai.3-10-2020.2306590} }- Fenny Marietza
Intan Kurnida Julianti
Nila Aprila
Madani Hatta
Baihaqi Baihaqi
Year: 2021
Corporate Social Responsibilities and Cost of Capital
BISIC
EAI
DOI: 10.4108/eai.3-10-2020.2306590
Abstract
This research aims to provide empirical evidence the effect of corporate social responsibility disclosure on the cost of capital on BUMN companies listed on the Indonesia Stock Exchange with an observation period from 2013-2017. The measurement of corporate social responsibility disclosure using Indeks Global Reporting Initiative G4 (GRI-G4). The cost of capital is divided into 2 namely the cost of equity using the Easton 2004 Model and the cost of debt using the Francis and Periera Model 2005. The sample selections method is the purposive sampling method which totals 13 samples with 65 observations. The results showed that the disclosure of corporate social responsibility has an influence on the cost of equity. Meanwhile, the disclosure of corporate social responsibility has no effect on the cost of debt.
