The Effect of Financial Leverage on Stock Returns with Corporate Social Responsibility Disclosure as Moderating Variable (Empirical Study on Mining Companies Listed on Indonesia Stock Exchange in 2016-2018)

ABSTRACT: Stock returns are the results obtained from stock investments. The main purpose of investorsinvesting their capital is to get high returns. In order to get high returns, investors are also faced with high riskthat may occur. This studyaimed to determine the effect of financial leverage on stock returns with corporatesocial responsibility disclosure as moderating variable on mining companies listed on Indonesia Stock Exchangein 2016-2018. The sampling method used was purposive sampling and 29 companies used as samples.Moderated Regression Analysis (MRA) was used in this study as data analysis technique. Based on the results,financial leverage has a positive effect on stock return. The higher level of financial leverage used by company,the higher stock return obtained by investors. Corporate social responsibility disclosure can strengthen the effectof financial leverage on stock returns. Corporate social responsibility disclosure in the company’s annual reportcauses investors to be more interested in investing their capital in the company.

KEYWORDS: financial leverage, stock return, corporate social responsibility disclosure