EFFECT OF PROFITABILITY, LEVERAGE, AND CORPORATE SOCIAL RESPONSIBILITY (CSR) ON INVESTOR REACTIONS

Abstract

This research to determine the effect Profitability, Leverage, and Corporate Social Responsibility (CSR) on Investors’ Reaction. Profitability was measured by Return on Equity (ROE), Leverage was measured by Debt to Equity Ratio (DER), CSR was measured by Global Reporting Initiative (GRI) Index version 4 and Investors’ Reaction was measured by trading volume activity (TVA). The sample on this research is 285 companies listed on the Indonesian Stock Exchange (IDX) in the period 2013-2015. The analysis technique in this research is multiple linier regression and using SPSS version 22. The result of the research showed that profitability does not affect on investors’ reaction, while leverage and CSR effect on investors’ reaction.