PENGARUH PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY (CSR) TERHADAP RETURN SAHAM DENGAN KECANGGIHAN INVESTOR SEBAGAI VARIABEL PEMODERASI

This study aimed to investigate whether the level of disclosure of Corporate Social Responsibility (CSR) affects the firm's stock return, and whether the sophistication of investors (proxies with ownership of shares by institutional investors for shares traded) is moderating the effect of the level of CSR disclosure to firm�s stock return. This test takes a sample of 244 observations consisting of 94 manufacturing companies listed on the Indonesia Stock Exchange during the period of 2006 to 2008. The results showed that the level of disclosure of CSR has a positive effect on the cumulative abnormal return. However, it failed to prove that the sophistication of investors is moderating variable that affected the relationship between the level of CSR disclosure and cumulative abnormal return, allegedly because the disclosure of CSR is not viewed as a top priority of important information in decision making