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PENGARUH CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE DAN KUALITAS AUDIT TERHADAP EARNINGS RESPONSE COEFFICIENT

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ABSTRACT THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE AND AUDIT QUALITY ON EARNINGS RESPONSE COEFFICIENT Written by: Frichles Kristianto Simanjuntak NIM: 1432044 The purpose of this study was to describe corporate social responsibility disclosure, audit quality and earnings response coefficient on mining companies, basic and chemical industries in Indonesia Stock Exchange. Another purpose of this study was to find out the significant effect of corporate social responsibility disclosure on earnings response coefficient and the effect of audit quality on earnings response coefficient. This study uses audit firm size (big 4/non big 4) as a proxy of audit quality. The variables in this study are corporate social responsibility disclosure and audit quality as independent variables and earnings response coefficient as the dependent variable. Sample method used was purposive sampling so this study used 27 mining companies, basic and chemical industries as sample. Data obtained from annual reports and daily stock list of mining companies, basic and chemical industries in Indonesia Stock Exchange during 2013-2016. The results show that corporate social responsibility disclosure in mining companies, basic industries and chemicals is still very low, because it does not have mandatory disclosure guidelines. Only one-third of mining companies, basic and chemical industries use large public accounting firms (big 4), the company does not really consider quality audits. The earnings response coefficient rate is negative, which means any earnings announcement will have a negative impact on stock prices. Another result of this study shows that corporate social responsibility disclosure has no significant effect on earnings response coefficient. Audit quality significantly affects earnings response coefficient. Corporate social responsibility disclosure and audit quality simultaneously have no significant effect on earnings response coefficient. Keywords: Corporate Social Responsibility Disclosure, Audit Quality, (big 4/non big 4), Earnings Response Coefficient