This paper aims to examine the sequential effect of cost of equity capital and CSR disclosure with family ownership as moderating variable. This empirical study examines samples of manufacturing firm in Indonesia using multiple regression analysis. Firms with high cost of equity capital in previous years have extensive CSR disclosure level. Further, firms with extensive CSR disclosure get benefit of lower cost of equity capital in the following year. Family ownership weakens the effect of previous years cost of equity capital on CSR disclosure. On the other hand, family owneship do not moderate the effect of CSR disclosure on the cost of equity capital. This study contribute in the literature by providing empirical evidence on sequential effect of cost of equity capital and CSR disclosure with family ownership as moderating variable from one of developing country.