This research examines the impact of corporate social responsibility disclosure to
the market reaction of fast moving consumer goods (FMCG) companies in
Indonesia. The method of data collection in this study is documentation of data
collection techniques taken from FMCG companies’ annual report in year 2016-
2017. There are 3 (three) variables in this research; Corporate Social
Responsibility Disclosure as independent variable, market reaction (cumulative
abnormal return) as dependent variable and return on equity (ROE) ratio as the
control variable. This research uses GRI as a CSR disclosure indicator. Abnormal
returns are calculated using the market adjusted return model. Multiple regression
analysis is used to analyze the data. The results show that the disclosure of
corporate social responsibility will have positive impact towards companies’
market reaction. It is better for the further research to use other control variables
beside the ROE, and to use not only companies’ annual report as the data, but also
use the sustainability report to increase the CSR disclosure of the research. The
result of this research can be used for the investors to make investment decisions
by considering the corporate social responsibility activities