CORPORATE SOCIAL RESPONSIBILITY AND INFORMATION ASYMMETRY IN 2SLS ESTIMATION OF DYNAMIC SIMULTANEOUS EQUATION MODELS
Abstract
Several studies have shown that information imbalance is affected by the availability of relevant information in the market. Such information can be either financial information or non-financial information. It has been studied in previous literature that both financial information and non-financial information should be considered by firms. These studies generally assume that non-financial information has value relevance and serves as additional information for stakeholders and market participants. This study aims to examine the impact of CSR on information imbalance in the Financial Industry. The focus is to prove that CSR can reduce information imbalance in Indonesia. The analytical method used is Two-Stage Least Squares (2SLS) Regression Analysis to evaluate the relationship between the variables. Therefore, this study has the potential to provide important insights for the financial industry in understanding the impact of CSR practices on information dynamics in the market.
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