Conclusion Research Limitation and Suggestion Re s

44 CHAPTER V CONCLUSION AND SUGGESTION

5.1 Conclusion

This research examines the influence of level of voluntary disclosure of CSR towards the earnings quality. This research is use 14 mining companies listed in IDX during period 2012-2014 42 total samples. This research finding that level of voluntary disclosure of CSR significantly influences earnings quality measured by discretionary accruals, thus Ha is accepted. Based on the hypothesis testing, the value of coefficient of CSR indicating the amount of influence of CSR to earnings quality proxied by discretionary accruals of earnings management.

5.2 Research Limitation and Suggestion

This research has limitation in observation period. The observation period is 3 years 2012-2014. The observation period cannot be lengthened backward; it is cause by the regulation from BAPEPAM-LK for CSR disclosure items just issued by year 2012. That is why the total sample of this research only 42 samples. Suggestions for future research is to use more data, with the broad criteria thus research has quite a lot of samples and provide an overview of the impact closer to reality. Research limitation also comes from the proxy of earnings quality. This research only uses discretionary accruals of earnings management as the proxy of earnings quality. Suggestion for future research is to use more proxy of earnings quality, such as real active manipulation of earnings management or earnings response coefficient. This research h ex amines the influence of leve el l of voluntary disclosure of CSR towards s th the earnings qua ua lity. This research is use 1 4 4 mining companies listed in n I IDX during g per e io io d 2012 12 2 -2 014 4

4 4

2 2 to o ta al l sa sa mp mp le l s. This res esea e rch finding that at level of f vo vo lu lu ntary disc sc lo lo su re of CSR si gn if if ic ic an an tly influe ue nc nces es earning gs s quality meas s ur u ed ed b b y y disc c r re ti on ary accruals, th us Ha is accepte d. B B as a ed d o o n n th the e hy y po th th esis test t in in g, g, the v v alue of coef fi ci ent of CSR indicating th e amount o f f influe ue nc nc e e of CSR SR to to ear a ning ng s quality proxied by discret io na ry acc ru al s of earnings ma a na n ge e me me nt nt . .

5.2 Re s

sear ch Lim itat ion and Sugg es ti on This research has li mitation in ob se rv ation period. The obse e rv rvation n period is 3 ye ye ar ar s s 2 201 01 2- 2 20 20 14. . T T he obs s e ervation on p p er er io io d d ca ca nn n ot b e lengthen en ed ed ba backward; it is cause by the regulati i on on from BAPEPAM-LK for CSR dis s cl clos osur ur e it it em ems s ju ju st t i i ss ss ue ue d d b b y y ye ye ar ar 2 2 01 01 2 2. . Th T at is why y th th e e to to ta ta l l sa sa mp mp le le o o f f th th i is res s ea earc rc h h o only 42 42 s sam ampl p es. Su u gg gges es ti tion n s s fo fo r r fu fu ture r r es es e earch is is t t o o us us e mo mo re re d d ata, w w it it h h th the e broad criteria t h hus research has quite a l l ot of sa samples and provide an overview of the impact closer to reality. Research limitation also c c om o es f from the proxy of earnings quality. 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APPENDIX I List Items of Voluntary Disclosure of Corporate Social Responsibility GRI 3.1 ITEMS Description EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change. EC3 Coverage of the organization’s defined benefit plan obligations. EC4 Significant financial assistance received from government. EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation. EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. EC7 Procedures for local hiring and proportion of senior management hired from the local GRI 3.1 ITEM M S S Description EC1 Direct economi mi c c value generated and dist ri ri bu bu ted, includ d in ing revenues, op o erating costs, employee c compensation on , do do nation on s an an d d ot o he he r r co co mm mm un un ity invest stme ments, retaine ne d d e ea rn i ings, an d d pa pa ym ym ents to ca ca pi pit tal pr r ov ov id ers and governments. EC EC 2 2 Fina a n nc ial imp li ca tions and other risk s and o op po rtunities for th e organi za ti on’s act iv ities due to c li ma te c hange. EC3 Coverage of th e or gani za ti on ’s d ef in ed b enefit plan o bligatio ns. EC4 Significant financial l a a ss ssis is tanc c e e r received from government. EC EC5 5 Ra Ra ng ng e e of of r r at at i i os o o o f f st st an anda dard rd ent nt ry ry l lev ev el el wag ge e by by ge gend nder er co o mp mpared to lo lo cal mini m mum wage e at significant locations of o o p peration. EC6 Policy, practices, and p r roportion o of spending on locally-based suppliers at signifi ficant locations of operation. List Items of Voluntary Disclosure of Corporate Social Responsibility community at locations of significant operation. EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, inkind, or pro bono engagement. Mandatory in BAPEPAM-LK No. KEP-431BL2012 EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. EN1 Materials used by weight or volume. Mandatory in BAPEPAM-LK No. KEP-431BL2012 EN2 Percentage of materials used that are recycled input materials. Mandatory in BAPEPAM-LK No. KEP-431BL2012 EN3 Direct energy consumption by primary energy source. EN4 Indirect energy consumption by primary source. EN5 Energy saved due to conservation and efficiency improvements. EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. EN7 Initiatives to reduce indirect energy consumption p public benefit through gh c commercia l l, i i nk nk ind, or pro b bono engag ag em ement. KEP-431BL2012 EC9 Unde derstanding and des sc crib ib in in g g si si gn gn if i ic ic a ant indirect economic i imp mpac ac ts t , including the ex xte te nt nt of im m pa pa ct c s. s EN EN 1 Ma a t te rials used b y we ight or volu me. Mand nd at ator ory y in i B AP APEPAM AM -LK N No. KEP - 43 431BL BL 2 2 01 2 EN2 Percentage of m ater ia ls u se d that are r ec yc le d input mate rials. Mandat o ory i in BAPEP A AM-LK K No No KEP-43 1 1B BL2012 2 EN EN3 Direct energy consumptio o n n by by primary energy so s urce. EN EN 4 4 Indirect en n er ergy gy consump ti ti on on b b y y pr pr i imary y sour r ce ce . EN5 En En er er g g y y s saved due to con n se s rvatio o n n and efficiency improvements. EN6 Initiatives to provide de energ gy-efficient or renewable energy based p p rodu ducts and services, and reductions in energy requirements as a result List Items of Voluntary Disclosure of Corporate Social Responsibility and reductions achieved. EN8 Total water withdrawal by source. EN9 Water sources significantly affected by withdrawal of water. EN10 Percentage and total volume of water recycled and reused. EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. EN13 Habitats protected or restored. EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. EN16 Total direct and indirect greenhouse gas emissions by weight. EN17 Other relevant indirect greenhouse gas emissions by weight. EN18 Initiatives to reduce greenhouse gas emissions and withdrawal of water. . EN10 Percentag g e e a and total volume of water recycled a a nd n reus s ed ed. EN EN11 Location and d si i ze ze of land owned, leased d , ma ma na na g ged in n , , r or a a dj dj acent t to to , pr ot ected ar ea s and area s of of high bi biod o iv er er sity v al ue outside pr ot ec ted areas. EN EN 12 De e s sc ription of s ig nificant i mp acts of acti vities, pr od uc ts, and servic es o n biod iv ersit y in protected areas an d ar ea s of hig h bi od iver si ty va lue ou ts id e protected areas. EN13 3 Habitats p p ro ro te te ct ct d ed or re re st s ored. EN EN14 Strategies, current actions, a a nd nd future plans for ma m naging imp p acts on biodiversity. EN15 5 Number o o f f IU IU C CN Red L L is ist t sp sp e e ci cies and nat atio io na nal l co co ns ns er er va va t tion list species s with h habitats in areas affected by operations, b by level of e extinction risk. EN16 Total direct and indirect g greenhou u s se gas emissions by weight. Oth l t i di t h i i List Items of Voluntary Disclosure of Corporate Social Responsibility reductions achieved. EN19 Emissions of ozone-depleting substances by weight. EN20 NO, SO, and other significant air emissions by type and weight. EN21 Total water discharge by quality and destination. EN22 Total weight of waste by type and disposal method. Mandatory in BAPEPAM-LK No. KEP-431BL2012 EN23 Total number and volume of significant spills. EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff. EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. EN27 Percentage of products sold and their packaging materials that are reclaimed by category. EN20 NO, SO, and other r s s ig ignificant a i ir e e mi m ssions by type and w w ei eight. EN21 Tota ta l l water discharge by by q q ua a lity ty a a nd nd de de stination. EN EN22 Total we weight of waste te b b y y ty ty pe a d nd d d is is po po sal m meth th od. Mandator ory in B B AP APEPAM M - -LK L No KE K P-43 431 1BL BL 201 12 EN N 23 2 To o t tal number and volume of si gn ificant sp il ls. EN E 24 W We ight of transp or te d, imp or ted, e xp orted, or tr eated was te d ee med ha za rd ou s unde r the te rm s of the Basel Conve nt ion An nex I, I I, III , and VIII, and perc en en ta ta g ge o f f tr tr an a sported wa wa t ste h sh ip ip pe pe d d internationally. EN N25 25 Id Id entity, size, pr p otected status, and biodiversity value of f w wat ater bodies s an an d d related ha habi bita ta ts ts si si gn gn if if ic ic a antly affected by the reporting organization’s discharge es of water a and runoff. EN26 Initiatives to mitigate en nvironme e n ntal impacts of products and services, an and e extent of impact mitigation List Items of Voluntary Disclosure of Corporate Social Responsibility EN28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations. EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce. EN30 Total environmental protection expenditures and investments by type. Mandatory in BAPEPAM-LK No. KEP-431BL2012 LA1 Total workforce by employment type, employment contract, and region, broken down by gender. LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region. Mandatory in BAPEPAM-LK No. KEP-431BL2012 LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation. LA15 Return to work and retention rates after parental leave, by gender. LA4 Percentage of employees covered by collective bargaining agreements. regulations. EN29 Significant t e e nv ironmental impacts of transpor ti ti ng ng prod d u ucts and other goo o ds s an an d d ma ma te te ri i al a s used for the organiza a ti t on on ’s ’s operations, and tr ran an sp spor or ti t ng me me mb mb er er s s of the he w wo rk force. EN N 30 30 T Tota a l l en vironm en tal protection expenditure s and in n ve stments by typ e. Mand nd at ator ory y in B AP APEPAM AM -LK N No KEP - 43 431BL BL 2 2 01 2 LA1 Total wo rk force by emp lo ym en t ty pe , employment contr ac t, a nd region, b ro ken down by gender. LA LA 2 2 Total number and rate of ne e w w em em ployee hires and employee turnover by age group, gender, d and region. Mandatory in BAPEP EP AM AM- - LK LK No KE KE P - 43 1BL BL 2 2 012 LA3 Be Be ne ne fi fi ts ts pr ovided to full l - - time em mployees that are not provided to temporar ry or part-ti i me employees, by significant locations o f f operatio o n. LA15 Return to work and retenti i on o r r a ates after parental leave by gender List Items of Voluntary Disclosure of Corporate Social Responsibility LA5 Minimum notice periods regarding operational changes, including whether it is specified in collective agreements. LA6 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs. LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender. Mandatory in BAPEPAM-LK No. KEP-431BL2012 LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. Mandatory in BAPEPAM-LK No. KEP-431BL2012 LA9 Health and safety topics covered in formal agreements with trade unions. Mandatory in BAPEPAM-LK No. KEP-431BL2012 LA10 Average hours of training per year per employee by gender, and by employee category. LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. LA12 Percentage of employees receiving regular LA6 Percentage of total l w workforce re repr pr esented in formal joi i nt nt management– tt worker health an an d – safe e ty ty committees that h help lp m m on on it it or or and nd advise on occupational al h h ea ea lt t h h and safety programs. s LA7 7 Ra Ra te te s s of of injury ry , oc cu pational disease s, l os s t t days, an an d d ab se se nt ee is m, and total n um ber of work- re la ted fata ta li ties, by reg ion and by ge nd er. Ma Mand nd atory in B AP AP EP EPAM AM-LK K No KE E P P -431 1BL BL2012 LA8 E Ed uc ation, training, co unseli ng , prev en ti on, and risk-cont ro l pr ograms in plac e to a ss is t workfo rc e members, their fam ilies, or comm un ity members regard in g se e ri ri ou ou s s di dise se as as es. Ma nd at t or o y in in BAPEP A AM-LK No No . KEP-43 1 1BL L 2 2012 2 LA LA 9 9 Health and safety topics covered in formal ag ag re re em em en en ts ts w w it it h h tr tr ad ad e e un unio io ns. Mandatory in BAPEP EP AM AM- - LK LK No KE KE P - 43 1BL BL 2 2 012 LA10 Av Av er er ag ag e e h hours of trainin n g g per ye e a ar per employee by gender, and by emplo oyee categor ry. LA11 Programs for skills ma anagemen nt and lifelong learning that support the co ontin n ued rr employability of employees and assist them in managing career List Items of Voluntary Disclosure of Corporate Social Responsibility performance and career development reviews, by gender. LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity. LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation. HR1 Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening. HR2 Percentage of significant suppliers, contractors, and other business partners that have undergone human rights screening, and actions taken. HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. HR4 Total number of incidents of discrimination and corrective actions taken. HR5 Operations and significant suppliers identified in which the right to exercise freedom of association LA13 of employees per emp mp lo loyee category ry ac a cording to gender, ag g e e group, minority group membersh ship ip , and ot other indicators of d dive ve rs rs it t y. y. LA A14 Ratio of bas s ic ic s s al l a ary and remuneration o o f f wo wo me m n to o m m en en by em em pl oyee category, by sign n if if icant lo lo c cation n s of operation. HR HR 1 Per rc entage and total nu mb er of si gn if icant i inve st me nt agreem ents and con tracts tha t include clauses inc or po rating hu ma n ri gh ts concerns, o r that have undergon e human rights scr eeni ng. HR2 Percenta ge ge o o f f si sig ni ni fi fi ca ca nt suppliers rs, c co t ntra ract ct or or s, and other business partners rs tha ha t have undergone human rights screening, and actions taken. HR3 Tota l l h hour r s s o o f f employee e t t ra ra in in in in g g on polic ie ie s s an an d d pr pr oc oc ed ed u u re res concerning a a sp s ects o o f f human rights s that are relevant to o operations, including the percentage of employees tr t ained. HR4 Total number of incidents of d discrimination and corrective actions taken List Items of Voluntary Disclosure of Corporate Social Responsibility and collective bargaining may be violated or at significant risk, and actions taken to support these rights. HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor. HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor. HR8 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations. HR9 Total number of incidents of violations involving rights of indigenous people and actions taken. HR10 Percentage and total number of operations that have been subject to human rights reviews andor impact assessments. HR11 Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms. HR6 Operations and signi i fi fi c cant suppliers rs i i de d ntified as having sig g ni ni fi ficant risk for incidents of child la bo bo r, and m measures taken to o co o nt nt ri r bu bu te te t t o o th th e effective abolition of c c hi hi ld ld l l abor. HR HR 7 7 Op Op er erat a io io ns and nd s i ig ni fi cant suppliers ident t if if ie ie d as ha ha v ving g s si gnif ic an t risk for incidents of forc ed or com mp ulsory labo r, and mea su re s to cont ri bu te to t th e elimination of all f or ms of fo rced or co mpulsory l abor. HR8 Percentage of se c ur ity pe rsonnel tr aine d in the organiza ti on n ’s s p p l ol ic ic ie ie s s or procedure re s s c conc nc er er ni ni ng ng aspects of human rights t t ha hat t are relevant to operations. HR HR9 9 Tota l l nu mb mber er o o f f in cident nts s of of v vio iola lations invo vo lv lv in in g g ri ri gh g ts s o o f f in indigenous peopl ple and ac c t tions taken. HR10 Percentage and total nu umber of o operations that have been subject to hum man right s s reviews andor impact assessments. Number of grievances related to human rights List Items of Voluntary Disclosure of Corporate Social Responsibility SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs. Mandatory in BAPEPAM-LK No. KEP-431BL2012 SO9 Operations with significant potential or actual negative impacts on local communities. SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities. SO2 Percentage and total number of business units analyzed for risks related to corruption. SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. SO4 Actions taken in response to incidents of corruption. SO5 Public policy positions and participation in public policy development and lobbying. SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. SO7 Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes. SO8 Monetary value of significant fines and total number of non-monetary sanctions for SO9 Operations with sign gn if if i icant potent ntia ia l l or actual negative imp mp ac ts on local communities. SO10 Preve vention and mitigati ti on n m m ea a su su re re s s im im pl p emented in operation ns s wi w th th significant potent i ia l l or o ac ac t tual ne e ga ga ti tive ve impac c ts ts o n local communities. SO O 2 2 Pe Percen ta ta ge and total numbe r of business un it s ana al yzed for risks r elated to co rr uption . SO SO3 P Pe r ce ntage of emplo ye es tra in ed in or ga nization’s an ti-corrup tion policies an d pr oc ed ur es . SO SO4 Actions taken in res po nse to incid ents of corruption . . SO SO5 Public policy positions and d pa part rt i icipation in public po po licy development and lobbying. SO6 Total valu u e e of of f financial a and nd i i n n - ki ki nd contribu buti ti on ons s to to po po li li ti tical parties, p p ol o iticians ns, and related d institutions by country. SO7 Total number of legal ac c tions for r anticompetitive behavior, anti-trust, and mo mono o p poly practices and their outcomes List Items of Voluntary Disclosure of Corporate Social Responsibility noncompliance with laws and regulations. PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes. PR3 Type of product and service information required by procedures and percentage of significant products and services subject to such information requirements. Mandatory in BAPEPAM-LK No. KEP-431BL2012 PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes. PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. Mandatory in BAPEPAM-LK No. KEP-431BL2012 PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, PR1 improvement, and p p er centage of of significant products an an d d services categories subject to s uc uc h proc c e edures. PR2 Total number er o o f f in in cidents of non-comp l lian an ce ce wi w th re e gu gula lati ti o ons and d v vo lu ntary codes concer ning g he h alth an an d d safe fe t ty impacts of products and services during thei ei r life cycle, by type of out co mes. PR3 T Ty pe of product an d se rvice in format io n d required b by proced ur es and per cent ag e of signific an t p products and serv ic es s ub ject to su ch inf or mation requirem en ts ts . Mand at atory i in BAP EP P AM-LK No No KEP-43 1 BL20 012 PR PR4 4 Total number of incidents o o f f no no n n-compliance with regulations and voluntary codes concerning pr d oduct an n d d se se r rvice info fo rm rm at atio ion n a an d labe li ling ng , , by by ty ty pe p o o f f ou ou tc omes. PR5 Practices related to customer r satisfaction, including results of surv veys meas suring customer satisfaction. Mandatory in BAPEPAM-LK No KEP-431BL2012 Programs for adherence to l l aws standards and List Items of Voluntary Disclosure of Corporate Social Responsibility Description: = Items that deducted from GRI list because the item already regulated as mandatory to disclosed by regulation No. X.K.6 of Decision of the Chairman of Capital Market and Financial Institution Supervisory Body BAPEPAM-LK No. KEP- 431BL2012. promotion, and sponsorship. PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes. PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services. Total Remains Items of Voluntary Disclosure 72 D Description: = I Item em s s th that at d d ed ed uc uc te te d from m G G RI RI l l is ist t be because th the e it it em em a alr lre eady re regu gu l late e d d as m an an datory ry t o di i sc sc l lose d d by by r r eg egul ul at at io io n n No No . X. X.K.6 of Decision of the C Chairman an of Capital Market and Financial Institution Supe r rvisory B Body BAPEPAM-LK No. KEP- 431BL2012. marketing communic c at at io ions, includ d in in g g advertising, promotion, n, a and sponsorship by type of outcome e s. s. PR8 Tota a l l number of sub ub st st an n ti ti at at ed ed complaints regarding br r ea ea ch ch es es of customer privacy an an d d lo lo s sses of f c c us us to om mer da a ta ta . PR PR9 9 Mo Moneta a r ry v al ue of sign if icant fine s fo r non ncom pliance wi th laws and reg ul ations c co nc er ning the prov is ion an d us e of p ro du cts and se rvices. T To tal Remains Item s of V ol untary D is clos ur e 72 APPENDIX II List Items of Mandatory Disclosure of Corporate Social Responsibility from BAPEPAM-LK No.KEP-431BL2012 Point 2.h.1 Discussion regarding corporate social responsibility including policy, type of program, costs incurred based on BAPEPAM-LK. Description includes: 1. Environment, such as the use of materials and friendly environmental energy and could be recycle, companys waste management system, certification in environment, etc 2. Employment practice, occupational safety and health, such as the equality of gender and work opportunity, facilities and safety, employees turnover rate, work incident rate, training, etc 3. Social and community development, such as the use of local worker, community empowerment around companies, improvement of social infrastructure, other form of donations, etc and 4. Products responsibility, such as consumer safety and health, products information, infrastructure, the amount and countermeasures of consumers complaints, etc. BAPEPAM AM L -L K K N N o. KE KE P-431BL2012 Point 2.h.1 Discussion reg eg a arding corporate e soc oc ia i l resp p on n si s bility includi ding n policy, type o program, m, c costs incurre e d d ba ba se e d on B B AP A EPAM AM L -L K K. D Des escr cr ip iption include s: s: 1. 1. Envi i ro ro nm nm en en t, such h as as t he use of mate rials an and d friendly ly e e nv nv ir i onment ntal energy an and d co co uld be be recycle, company s waste manage me nt nt syste e m, m, c c er e ti ti fica ti ti on in en enviro o n nm ent, etc 2. 2. Em m pl oyment practice, o ccupatio na l safe ty a nd health, such as s the e equ qu al a ity o o g ge nder and wor k oppo rt un it y, fac ilit ie s and safety , em ployee s turno o ver ra ra te te w wo rk incident rate, tr aining , etc 3. 3 S So cial and c om mu mu ni ni ty ty development, su su ch ch as the use of l loc oc a al wor or ke ke r community empowerment ar arou u nd nd companies, improvement of s soc oc ia infrastructure, other form of donations, etc and 4. 4. Pr Pr od od uc uc ts ts r r es es po po ns ns ib ib il il it ity, s s uc uc h h as as c con onsume mer r sa sa fe fe ty ty a a nd nd h h e ea l lth, h, p p r roduct in in fo fo rm rm at at i ion, n, i i n nfrastructure, the amo o u unt and coun n te te rm rm ea su su re res of of consumer complaints, etc. APPENDIX III List of Mining Companies 2012-2014 NO. IDX CODE COMPANY NAME 1. ANTM PT. Aneka Tambang, Tbk 2. ATPK PT. ATPK Resources, Tbk 3. CITA PT. Cita Mineral Investindo, Tbk 4. CKRA PT. Cakra Mineral, Tbk 5. CTTH PT. Citatah, Tbk 6. DKFT PT. Central Omega Resources, Tbk 7. ELSA PT. Elnusa, Tbk 8. GEMS PT. Golden Energy Mines, Tbk 9. MITI PT. Mitra Investindo, Tbk 10. MYOH PT. Samindo Resources, Tbk 11. PTBA PT. Tambang Batubara Bukit Asam, Tbk 12. RUIS PT. Radiant Utama Interinsco, Tbk 13. SMMT PT. Golden Eagle Energy, Tbk 14. TINS PT. Timah, Tbk NO. IDX CODE CO CO MP M ANY NAME 1. ANTM M PT. Aneka Tamban n g, g, Tbk 2. ATPK PT PT . AT ATPK PK R R es esou ou rces, Tbk 3 3. CI CI TA TA PT . Cita M in er al l I I nv n esti i ndo, o, T T bk

4. .

CK CK RA PT. Cakra Mineral, T bk bk 5. 5. CTTH PT . Ci tatah, Tbk 6. DKFT PT. Ce nt ra l Omeg a Re sources, T bk 7. 7 EL SA PT. Elnusa, Tb k 8. GEMS PT PT. Golden Energy Mines, Tbk 9. 9. MI MI TI TI PT T. Mi Mi tr tra a I Inve ve st st in in do do, Tb Tb k k 10. MY MY OH OH PT. S Samindo Resource ce s s, T T bk 11. PTBA P PT. Tamban n g Batubara Bukit Asam, Tbk 12. RUIS P PT. Ra Radiant Utama Interinsco, Tbk APPENDIX IV Test Results for the New Model

4.1 Result of White Heteroscedasticity Test