Environmental Performance of Financial Performance and Moderated Environmental Disclosure
DOI:
https://doi.org/10.61841/nqk18488Keywords:
Environmental Performance, Disclosure Performance, Financial PerformanceAbstract
This study aims to examine the effect of environmental performance on financial performance moderated by environmental disclosures. The study uses the annual report data of companies engaged in the manufacturing sector, with the criteria for the report disclosing social and environmental information for the 2013–2015 periods and revealing the results of the assessment of the company's performance rating program in environmental management (called PROPER). The research method used in this study is explanatory research. Data analysis using the t-test and significance that was previously carried out the classical assumption test. Hypothesis answers show that environmental performance influences company profitability, environmental disclosure does not affect profitability, and environmental performance moderated by environmental disclosure influences profitability.
Downloads
References
[1] (UNECE), U. N. E. C. for E. (n.d.). The Guidance on Tools for Pollution Management. Retrieved from www.worldbank.org
[2] Almar, M., Rachmawati, R., & Murni, A. (2012). Pengaruh Pengungkapan Corporate Social Responsibility terhadap Profitabilitas Perusahaan. Universitas Widyatama.
[3] Amelia, R. & Nur, E. (2012). Pengaruh Implementasi Corporate Social Responsibility terhadap Profitabilitas Perusahaan. Pekbis Jurnal, 4(2), 71–84.
[4] Arzizeh, T., Eyo Bassey, & Peter, B. (2012). Environmental Activities and Their Implications on the Profitability of Oil Companies in Nigeria. International Journal of Physical and Social Sciences, 2(3), 285–302.
[5] Atkinson, G. & Mourato, S. (2015). Cost-Benefit Analysis and the Environment. France. Retrieved from www.oecd.org/environment/workingpapers.htm
[6] Aupperle, K., & Carroll, A. (1985). An Empirical Examination of the Relationship Between Corporate and Profitability. Academy of Management Journal, 28(2), 446–463. https://doi.org/10.5465/256210
[7] Bartolomeo, M., Bennett, M., Bouma, J. J., Heydkamp, P., James, P., & Wolters, T. (2010). European Accounting Review Environmental management accounting in Europe : current practice and future potential. European Accounting Review, (December 2014), 37–41. https://doi.org/10.1080/096381800407932
[8] Brigham, E. F. & Houston, J. F. (2012). Fundamentals of Financial Management. Cengage Learning.
[9] Carreira, F. & Abreu, R. (2014). Environmental Disclosure From Accounting to the Report Perspective. In 16th International Conference on Enterprise Information Systems (pp. 496–501). https://doi.org/10.5220/0004973604960501
[10] Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33, 303–327. https://doi.org/10.1016/j.aos.2007.05.003
[11] Cochran, P., & Wood, R. A. (1984). Corporate social responsibility and financial performance. The Academy of Management Journal, 27(1), 42–56.
[12] Cooper, D. R. & Schindler, P. S. (2006). Business Research Methods. Pennsylvania State: McGraw-Hill Irwin.
[13] Cormier, D., & Magnan, M. (1999). Corporate Environmental Disclosure Strategies: Determinants, Costs, and Benefits. Journal of Accounting, Auditing & Finance, 14, 429–451. https://doi.org/10.1177/0148558X9901400403
[14] Elsayed, K. & Paton, D. (2005). The Impact of Environmental Performance on Firm Performance: Static and Dynamic Panel Data Evidence. Structural Change and Economic Dynamics, 16, 395–412. https://doi.org/10.1016/j.strueco.2004.04.004
[15] Fitriani, A. (2013). Pengaruh Kinerja Lingkungan dan Biaya Lingkungan terhadap Kinerja Keuangan pada BUMN. Jurnal Ilmu Manajemen, 1(1), 137–148.
[16] Ghozali, I. (2006). Aplikasi Analisis Multivariate dengan Program SPSS. Semarang: Badan Penerbit Universitas Diponegoro.
[17] Gonzã, J. (2005). Environmental proactivity and business performance: an empirical analysis. The International Journal of Management Science, 33, 1–15. https://doi.org/10.1016/j.omega.2004.03.002
[18] Hair, J., Hult, T., Ringle, C., & Sarstedt, M. (2014). Partial Least Squares Structural Equation Modeling (PLS-SEM). USA: SAGE Publication.
[19] Horváthová, E. (2010). Does environmental performance affect financial performance? A meta-analysis. Ecological Economics, 70(1), 52–59. https://doi.org/10.1016/j.ecolecon.2010.04.004
[20] Hussain, H.I., Herman, Ghani, E.K., & Razimi, M.S.A. (2019), Systematic Risk and Determinants of Cost of Capital: An Empirical Analysis of Selected Case Studies, Journal of Security and Sustainability Issues, 9 (1), 295–307.
[21] Ingram, R. W. & Frazier, K. B. (2013). Environmental Performance and Corporate Disclosure. Journal of Accounting Research, 18(2), 614–622.
[22] Jasch, C. (2000). Environmental performance evaluation and indicators. Journal of Cleaner Production, 8, 79–88.
[23] Kartadjumena, E., & Rodgers, W. (2019). Executive Compensation, Sustainability, Climate, Environmental Concerns, and Company Financial Performance: Evidence from Indonesian Commercial Banks. Sustainability, 11(6), 1–21. https://doi.org/10.3390/su11061673
[24] Konar, S., & Cohen, M. A. (2001). Does the market value environmental performance? The Review of Economics and Statistics, 83(May), 281–289.
[25] Mcwilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: correlation or misspecification? Strategic Management Journal, 21(5), 603-609. https://doi.org/10.1002/(SICI)1097-0266(200005)21
[26] Melnyk, S. A., Sroufe, R. P., & Calantone, R. (2003). Assessing the impact of environmental management systems on corporate and environmental performance. Journal of Operations Management, 21, 329–351.
[27] Nor, N. M., Bahari, N. A. S., Adnan, N. A., Kamal, S., & Ali, I. M. (2016). The Effects of Environmental Disclosure on Financial Performance in Malaysia. Procedia Economics and Finance, 35, 117–126.
[28] OECD Glossary of Statistical Terms: Environmental Costs Definition. (1997).
[29] Peraturan Pemerintah Republik Indonesia Nomo 47 Tahun 2012 tentang Tanggung Jawab Sosial dan Lingkungan Perseroan Terbatas.
[30] Rachmawati, R., & Sari, D. (2010). Related Social Performance (CSP) and Corporate Financial Performance (CFP). In International Conference on Asia Pacific Business Innovation & Technology Management. Retrieved from https://repository.widyatama.ac.id/xmlui/bitstream/handle/123456789/1358/content.pdf?sequence=1
[31] Russo, M. V. & Fouts, P. A. (1997). A Resource-Based Perspective on Corporate Environmental Performance and Profitability. Academy of Management, 40(3), 534–559.
[32] Saudi, M.H.M., Sinaga, O., & Rospinoedji, D., The role of tax education in supply chain management: A case of Indonesian supply chain companies, Polish Journal of Management Studies 18(2):304-319, December 2018.
[33] Sekaran, U. & Bougie, R. (2010). Research Methods for Business: A Skill Building Approach. USA: John Wiley.
[34] Suratno, I. B., Darsono, & Mutmainah, S. (2007). Pengaruh Environmental Performance Terhadap Environmental Disclosure dan Economic Performance (Studi Empiris pada Perusahaan Manufaktur yang terdaftar di BEJ Periode 2001-2004). The Indonesian Journal of Accounting Research, 10(2).
[35] Titisari, K. H., & Alviana, K. (2012). Pengaruh Environmental Performance terhadap Economic Performance. Jurnal Akuntansi Dan Keuangan Indonesia, 9(1), 56–67.
[36] Tjahjono, M. E. S. (2013). Pengaruh Kinerja Lingkungan terhadap Nilai Perusahaan dan Kinerja Keuangan. Jurnal Ekonomi, 4(1), 38–46.
[37] Valentin, C. (2011). Determinants of corporate financial performance (pp. 1–17).
[38] www.idx.co.id. (n.d.). Retrieved from https://www.idx.co.id
[39] www.menlh.go.id. (n.d.). Retrieved from http://www.menlh.go.id/proper/
[40] Yisau, B. (2012). The Impact of Corporate Social Responsibility on Firms' Profitability in Nigeria. European Journal of Economics, Finance, and Administrative Sciences, 4(5), 39–50.
[41] Tulkubayeva, S.A., Vasin, V.G. (2018). Camelina (Camelina sativa) cultivation in the north of Kazakhstan. International Journal of Pharmaceutical Research, 10 (4), pp. 798-802. https://www.scopus.com/inward/record.uri?eid=2-s2.0-
85063453981&doi=10.31838%2fijpr%2f2018.10.04.138&partnerID=40&md5=2123bae0229a65162ac5aa57205fe480
[42] Richa tyagi, Gaurav sharma, Nakuleshwar dut jasuja, and Ekta Menghani (2016) describe Indian medicinal plants as an effective antimicrobial agent. Journal of Critical Reviews, 3 (2), 69-71.
[43] Subramani Parasuraman, Lim Ee Wen. "Animal Model for Obesity: An Overview." Systematic Reviews in Pharmacy 6.1 (2015), 9-12. Print. doi:10.5530/srp.2015.1.3
Downloads
Published
Issue
Section
License
Copyright (c) 2020 AUTHOR
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
