Abstract
This research aims to obtain empirical evidence on the effect of corporate social responsibility disclosure on firm risk. This research was conducted on mining companies listed on Indonesia Stock Exchange in 2015-2017. The sample determination method is purposive sampling, with 109 observations. The data analysis technique used is simple linear regression analysis. Based on the research results, it is known that corporate social responsibility disclosure has a negative effect on firm risk. This means that the more CSR disclosure of a company, the lower the firm risk. The implications of the research results supports the signaling theory, stakeholder theory, and legitimacy theory, where risk management efforts are done by sending positive signals through the disclosure of CSR information, to gain the support and trust from the company's stakeholders, and increase the organization's legitimacy. On the other hand, this research provides additional information for all company stakeholders in making decisions.
 Keywords : CSR Disclosure; Firm Risk; Mining.
Highlights
The capital market in Indonesia is known as Indonesia Stock Exchange (IDX)
The sampling method used in this study is the non-probability method with the purposive sampling technique, which is the technique of determining the sample chosen from the available population using predetermined criteria.The criteria for selecting the research sample are presented in Table 1 below
This result can be obtained because management of companies use positive information disclosure, such as information on Corporate Social Responsibility (CSR), as an effort to reduce firm risk
Summary
Among the 10 sectors listed on IDX, the stock price index of the mining sector is considered volatile. Fluctuations in the price of the mining sector stock index can indicate that the realization of stock returns is not in line with the expected return. These fluctuations reflect uncertainty that results in risk for the firms and market participants. The sustainability of the company compared to other companies in the market can be reflected by firm risk. Kim, & Park (2016) stated that the total risk of a firm, is the daily stock returns standard deviation over a period of one year
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