Open AccessCorporate Social Responsibility (CSR) and Risk Taking: Evidence from Indonesia
Author(s) -
Rezki Ananda Mulia,
Joni Joni
Publication year - 2019
Publication title -
acrn journal of finance and risk perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.122
H-Index - 2
ISSN - 2305-7394
DOI - 10.35944/jofrp.2019.8.1.010
Subject(s) - corporate social responsibility , endogeneity , business , stock exchange , accounting , indonesian , corporate governance , stock market , finance , economics , public relations , econometrics , political science , paleontology , linguistics , philosophy , horse , biology
In this paper, we investigate the effect of Corporate Social Responsibility (CSR) on risk taking in Indonesia. We hand collect CSR and other corporate governance data from 2016-2017 for publicly listed firms on the Indonesian Stock Exchange (IDX). The results, based on 820 firm-year observations, suggest that CSR activity is negatively related to corporate’s risk. This means the presence of CSR activity is positively perceived by stakeholders. Therefore, it reduces operating and market risks of the company. Also, we test for endogeneity and the main findings remain similar.