The Role of CSRD on Company's Financial Performance and Earnings Response Coefficient (ERC)

This research aims to analyze the role of CSRD in the annual report on firm's financial performance and ERC value. The population of this research is mining corporations listed in Indonesia Stock Exchange during 2013 – 2014. This is a quantitative research which the data are analyzed by using liner regression method. The result of this research indicates that CSRD influences ROE. On the other hand, CSRD does not influence ROA and ERC. Commonly, investors tend to use short term information so that they ignore CSRD which is perceived as a source of middle and long term information.