CORPORATE FINANCIAL PERFORMANCE, CORPORATE ENVIRONMENTAL PERFORMANCE, CORPORATE SOCIAL PERFORMANCE AND STOCK RETURN

Abstract

The purpose of this study is to examine the influence of corporate financial performance, corporate environmental performance and corporate social performance on the stock return. The samples used by 22 companies that present sustainability report and facilitate in PROPER rating. The panel regression analysis method is used for the data analysis. The study used the financial statements for the period 2009 to 2015. The results show that (a) The corporate finance performance influences positively stock return. It means that investors pay more attention to market-based measures over accounting-based measurers. (b) The corporate environmental performance influences negatively stock return. This indicates that investors do not consider the relative environmental choices of firms or that stock market does not like hearing about the environmental news. (c) The corporate social performance does not influence stock return. This is probably due investors are not interested in the social news because there is another data that can be obtained as a consideration in the decision making