Indonesia Conference Directory

The high-quality financial report is considered to be able on reducing information assymetry and also increasing the ability of stockholder to supervise the manager on doing Corporate Social Responsibility (CSR) investment (McDermott, 2011). This analysis aims to verify the quality of financial reports in Indonesia, not only by using the quantitative measurement but also by using the qualitative measurement developed by Braam and Beest (2013). Besides that, this analysis aims to know the effect of high-quality accounting information to the CSR investment efficiency. This analysis uses data from company financial report which is registered in Indonesia Stock Exchange on 2015-2016 and sustainability report which is taken from company-s website. The analysing data techniques in this study are by using multiple regression test and logistic regression. The findings of this study shows that the quality of financial reports using quantitative measurement has a significant positive relation to CSR investment with the probability over investment, in addition has a significant negative relation to CSR investment with the probability under investment. While the quality of financial report using qualitative measurement has a significant positive relation to CSR investment with the probability over investment, and has significant negative relation to CSR investment with the probability under investment.