ABSTRACT

This study aims to analysis  the Corporate Social Responsibility in the go public mining companies in the Indonesian Stock Exchange by testing the influence of leverage, profitability, and the board of independentcommissioner toCorporate Social Responsibility (CSR) which is moderated by the foreign ownership structure;and examine the influenceof CSR toreturn. The population in this study werethe go public mining companies in the Indonesian Stock Exchange during the period of 2008-2012 by the number of 28 companies.The sampling technic used was  purposive samplingby the following criteria: a). The go public mining companiesin the Indonesian Stock Exchange and had complete financial reports in the period of 2008 to 2012.b). The mining companies which incorporate CSR reporting in the annual report.Through these criteria, it is obtained 12 mining companies for the period of 2008-2012, so that it is obtained 60 observations.The type of data used is secondary data obtained from the company's annual report. The techniqueof analysis uses Moderated Regression Analysis (MRA).After successfully completing the classical assumptions involving heteroscedasticity, multicollinearity and autocorrelation test, the regression results indicatdthat a).Mining companies had implemented CSR well by values ​​above 60, and had 3% increasefrom year to year, b). Leverage and profitability had significant negative influence on Corporate Social Responsibility.It means that CSR wastreated as an expense and not as investment for sustainability, c).Independent board had a significant positive influence on Corporate Social Responsibility.d).Foreign ownership strengthens the influence of leverage on Corporate Social Responsibility; it supports the theory of agency and legitimacy f). Meanwhile, foreign ownership weakens the influence of the proportion of independent board to Corporate Social Responsibility, g).Foreign ownership was not able to either strengthen or weaken the influence of profitability on Corporate Social Responsibility, h).Corporate Social Responsibility had a positive influence onreturns. It means that Investors hadvery interested to companies that implementing CSR as a form of corporate social responsibility towards society and environment.

 

Keywords: Corporate Social Responsibility, Foreign Ownership, Profitability, Leverage,

and Board of Independent Commissioner.