The Influence of Net Income and Corporate Social Responsibility towards Stock Price (an Empirical Study of Manufacturing Companies Listed on Indonesia Stock Exchange (IDX) During the Period of 2014-2016)

Abstract

The aim of this research is to evaluate the influence of net income and corporate social responsibility (CSR) towards stock price. The population involved in this research are manufacturing companies listed on Indonesian Stock Exchange (IDX) during the period of 2014-2016. Purposive sampling method was used to determine samples, where 76 samples were selected based on the research criteria. This research employed stock price to par value ratio for measuring stock price. ROA (Return On Asset) was used to represent net income, and CSRI (Corporate Social Responsibility Index) was used for assessing the degree of CSR disclosure. This research also used corporate size and corporate risk as control variables. This research used a secondary data. The data were analyzed by using multiple linear regression. The results of this research indicated that net income proved to have a significant positive influence towards stock price. Another finding is that CSR had a relatively negative relationship (marginally significant) towards stock price. The research also found that net income and CSR simultaneously had a significant influence with positive influence towards stock price.