THE INFLUENCE OF COMPANY’S EXPOSURE OF SOCIAL RESPONSIBILITY TO INVESTOR REACTIONS
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Companies’ social responsibility is not only producing profit but also protecting and increasing social welfare. As a manifest of social responsibility company must disclose the things that related to protecting and increasing social welfare. One of the ways to expose social responsibility is annual company report. By this annual report the market will react. The reactions can be seen from the effect to stocks market price or the activity of trading volume. The study investigates the differences between the investor reactions of the company with exposed social and environment responsibility and investor reaction of the company with unexposed social and environment social responsibility. The investigation is using secondary data from BAPEPAM and Indonesia Stock Exchange. Data analysis and hypothetical test to investigate is the test of normality kolmogorov-smornov using SPSS and paired sample t-test and independent sample t-test. Based on the hypothetical testing we find that the value of stock return and stock trading volume are not varied by the exposure of social responsibility. Then we conclude that there is no significant difference of the investor reaction of the company with exposed social responsibility from company of unexposed social responsibility.