KEMAMPUAN VOLUNTARY DISCLOSURE, CORPORATE SOCIAL RESPONSIBILITY DAN GOOD CORPORATE GOVERNANCE MENURUNKAN COST OF CAPITAL PERUSAHAAN

Abstract

This study aims to determine the ability of voluntary disclosure, corporate social responsibility and good corporate governance lower cost of capital of the company. This research is conducted at companies listed on Indonesia Stock Exchange which follow CGPI (Corporate Governance Perception Index) program from 2010-2014. The number of samples taken as many as 60 selected by using purposive sampling method. Data analysis technique used is multiple linear regression analysis technique. Cost of capital is measured using WACC (Weight Average Cost of Capital). Voluntary disclosure is measured by a voluntary disclosure index. The calculation of corporate social responsibility index using dichotomy approach. CSRD is measured using the index CSR, where the CSRD indicator used refers to GRI 3.1. Good corpotate governance is represented by the Corporate Governance Perception Index (CGPI) produced by an independent institute, The Indonesian Institute for Corporate Governance (IICG). This research gives result that voluntary disclosure and corporate social responsibility can decrease cost of capital while good corporate governance can not decrease cost of capital. This can be due to the CGPI assessment still within the scope of corporate management while there are still other things that can affect cost of capital such as protection of shareholder rights, company size, and others. CGPI information is also not the only information used by investors to make investment decisions.

Keywords: voluntary disclosure, corporate social responsibility, good corporate governance, Cost of capital