Title: The influence of corporate social responsibility on share price before and after tax amnesty

Authors: Josua Tarigan; Aileen Natalia Sutedjo; Ferry Jie; Saarce Elsye Hatane

Addresses: Universitas Kristen Petra, Siwalankerto 121-131, Surabaya, Indonesia ' Universitas Kristen Petra, Siwalankerto 121-131, Surabaya, Indonesia ' School of Business and Law, Edith Cowan University, Joondalup, Australia ' Universitas Kristen Petra, Siwalankerto 121-131, Surabaya, Indonesia

Abstract: With a purpose to provide a more profound clarification in regards to socially and environmentally responsible cultures among Indonesian natural resources industry, this study highlights the empirical confirmation on the correlation between corporate social responsibility (CSR) and share price. Kinder, Lydenberg, and Domini's (KLD) measurement approach is used as a basis to assess CSR performance since it gives more social rating transparency. Panel data analysis and paired sample T test are carried out on 83 Indonesian listed firms in the natural resources industry. The study finds a significant difference in the CSR performance and Tax Amnesty between before and after tax periods. The empirical result suggests that the CSR performance serves as a tool in assisting investors to value share prices. This is the first study, which observes and proves that tax amnesty 2016 gives a significant impact on Indonesian natural resources industry's CSR and share price.

Keywords: corporate social responsibility; KLD; share price; natural resources industry; tax amnesty.

DOI: 10.1504/WREMSD.2022.122528

World Review of Entrepreneurship, Management and Sustainable Development, 2022 Vol.18 No.3, pp.227 - 248

Received: 24 Jun 2019
Accepted: 05 Jul 2020

Published online: 03 May 2022 *

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