Strategic Corporate Social Responsibility (CSR), Company Financial Performance, and Earning Response Coefficient: Empirical Evidence On Indonesian Listed Companies

The purposes of this study are to examine the effect of strategic CSR and non-strategic CSR on financial performance, and to examine the effect of strategic CSR and non-strategic CSR on earnings response coefficient (ERC). The results of this study show that strategic CSR and non-strategic CSR positively and negatively affect financial performance respectively. The level of strategic CSR disclosed in annual reports positively affect earnings response coefficient (ERC), while the non-strategic CSR does not have an effect on the ERC.The main contribution of this study is the developing of a checklist matrix to distinguish between strategic CSR and non-strategic CSR.