Searching for Information Content of Sharia Corporate Social Responsibilty Disclosures: A New Ethical Perspective of CSR

Bunga Maharani (Universitas Jember)
Yosefa Sayekti (Universitas Jember)
Indah Purnamawati (Universitas Jember)
Bayu Aprillianto (Universitas Jember)
Ririn Irmadariyani (Universitas Jember)
Aisa Tri Agustini (Universitas Jember)
Alfi Arif (Universitas Jember)

JABE (Journal of Accounting and Business Education)
Volume 8, Issue 4, June 2024

Our research aimed to test and analyze the information content of Sharia Corporate Social Responsibility (SCSR) disclosure in ethical perspective on the agroindustrial companies in Indonesia. It used the SCSR concept proposed in the research conducted by Irmadariyani, et al. (2019) as the concept to measure the disclosure of SCSR by agroindustrial companies in Indonesia. Using quantitative approach, this research tested and analyzed the correlation between market performance (proxied by information content)and CSRdisclosure from the ethical perspective. Information content measured using Cumulative Abnormal Return (CAR). We find that SCSR disclosure positively affects the Cumulative Abnormal Return (CAR), which means that Sharia Corporate Social Responsibility disclosure provides information content. This research proves that the SCSR is able give signal to investors and has important information content on companies. The application of ethical principles pursuant to the Islamic law indicates good information of companies for investor. SCSR disclosure is a means for a company to show that it has good management to manage its resources, increasing its corporate performance.