Investor's perception on corporate responsibility of Indonesian listed companies

Abstract

Good corporate responsibility is one principle of Good Corporate Governance (GCG). There is growing concern of GCG implementation nowadays, especially in Indonesia. Implementation of GCG, which also included responsibility, will create corporate sustainability and could be measured with responsibility rating and corporate governance rating issued by National Committee of Governance Policy.Our study employs data panel model and shows that from ten Indonesian companies from January 2010 to January 2011, either responsibility rating or corporate governance rating had no significant impact on stock’s return. It means that investors still do not take account of company’s policy regarding responsibility and corporate governance as one of their consideration in making an investment decision. Key words: Corporate responsibility, good corporate governance, Indonesian listed companies, national committee of governance policy, data panel