The Effects of Environmental Performance and Environmental Information Disclosure on Financial Performance in Companies Listed on the Indonesia Stock Exchange

Msy. Mikial, Taufiq Marwa, Lukluk Fuadah, Inten Meutia

2018

Abstract

The purpose of this study is to examine the effects of environmental performance and environmental information disclosure on financial performance in companies listed on the Indonesia Stock Exchange. The sample in this study only 20 companies listed on the Indonesia Stock Exchange, issued an Annual Report and Sustainability Report and included in the Sustainability Disclosure Database of the Global Reporting Initiative (GRI). The data used in the form of secondary data obtained from annual reports and sustainability reports of companies listed on the Indonesia Stock Exchange from 2013 to 2016. The analysis technique used was Partial Least Square (PLS). The results of this study show that environmental performance has a positive but not significant effect on financial performance, environmental information disclosure has a negative and significant effect on financial performance. Disclosure of environmental information is more equipped and in accordance with the disclosure guidelines, the cost is not small so that it will reduce financial performance.The first limitation of this study is the difficulty in obtaining environmental cost data because the company has no obligation to disclose environmental costs. In the future, the Indonesian Institute of Accountants is expected to formulate standards for measuring and reporting environmental cost information in order to produce separate and standardized reporting and disclosure of environmental cost information. The second limitation, this study only focuses two environmental variables influence financial performance. Future research can develop other variables for a more comprehensive dimension, with a longer span of time and a greater number of companies in publishing Sustainability Reporting.

Paper Citation

in Harvard Style

Mikial M., Marwa T., Fuadah L. and Meutia I. (2018). The Effects of Environmental Performance and Environmental Information Disclosure on Financial Performance in Companies Listed on the Indonesia Stock Exchange.In Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC, ISBN 978-989-758-387-2, pages 525-532. DOI: 10.5220/0008442105250532

in Bibtex Style

@conference{seabc18,
author={Msy. Mikial and Taufiq Marwa and Lukluk Fuadah and Inten Meutia},
title={The Effects of Environmental Performance and Environmental Information Disclosure on Financial Performance in Companies Listed on the Indonesia Stock Exchange},
booktitle={Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,},
year={2018},
pages={525-532},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008442105250532},
isbn={978-989-758-387-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,
TI - The Effects of Environmental Performance and Environmental Information Disclosure on Financial Performance in Companies Listed on the Indonesia Stock Exchange
SN - 978-989-758-387-2
AU - Mikial M.
AU - Marwa T.
AU - Fuadah L.
AU - Meutia I.
PY - 2018
SP - 525
EP - 532
DO - 10.5220/0008442105250532