Do Indonesian Companies with High CSR Rankings Have Lower Pandemic Damage?

Dwi Narullia, Muhammad Muhammad, Ria Zulkha Ermayda


The crisis condition during the Covid-19 period has become a worldwide concern because all sectors are experiencing a crisis. Not only a health crisis, but this pandemic has also caused economies worldwide to go into recession. In this crisis, the debate regarding how stakeholder involvement in protecting and preserving shareholder wealth begins to be questioned. Stakeholder involvement, in this case, is reflected through the company's Corporate Social Responsibility (CSR) activities. This study aims to test whether companies that carry out CSR can minimize the impact of the Covid-19 pandemic on the value of their companies. The focus of the research is that there are 404 companies listed on the IDX from 2018 to 2020. The data of this study were obtained from the capital market site and the company's official website with documentation data collection techniques. Based on the different tests carried out, there was no difference in the impact of the pandemic on company value during the Covid-19 pandemic between companies with good CSR or not. This is due to differences in investor motivation in buying shares, the quality of CSR disclosure in Indonesia is low, and the information presented is less relevant to investors' needs. This research implies that investors are good at assessing the company's sincerity in carrying out CSR activities. Therefore, company managers should increase the honesty and disclosure of CSR so that the company's image rises in the eyes of investors.


Corporate Social Responsibility (CSR); Company Value; Impact of Covid-19

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