ABSTRACS

Various studies show that investors have started to respond to reports of corporate social responsibility (CSR) which is conducted by the company. Policy of mandatory corporate social responsibility (CSR) set by the government can be good news for investors that will influence investors in making investment decisions. The existence of this good news, then the market will react positively to cause an increase in stock prices and will ultimately affect stock returns. The purpose of this study was to determine the  effect of policy mandatory   disclosure corporate social responsibility   on stock returns. The population in this study are manufacturing companies listed in Indonesia Stock Exchange during 2006 - 2008. Data analysis was performed by ANOVA paired samples t test. The results showed that there were differences in stock returns before and after the policy of mandatory corporate social responsibility (CSR).

Keyword : mandatory corporate social responsibility, voluntary corporate social responsibility, stock returns,