Does Eco-Efficency Reduce Cost of Equity Capital? (Empirical Evidence from Indonesia)

Alviani, Lisa; Sholihin, Mahfud

doi:10.2139/ssrn.2518099

Cited by 2 publications

(1 citation statement)

References 4 publications

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“…Eco efficiency according to the environmental dictionary and the Ministry of Environment of the Republic of Indonesia is defined as an efficiency concept that includes aspects of natural resources and energy or a production process that minimizes the use of raw materials, water, energy and environmental impacts per unit of product. The World Business Council for Sustainable Development (WBCSD, 2000) in Alviani and Solihin (2015) explains that eco-efficiency is a business concept because eco-efficiency talks about the language of business, that eco-efficiency will produce good business by increasing production efficiency. The goals of eco-efficiency are:…”

Section: Eco-efficiency and Firm Valuementioning

confidence: 99%

Does Good Corporate Governance and Eco–efficiency Really Contribute to Firm Value? An Empirical Study in Indonesian State-Owned Enterprises (Soes)

Safitri

Nani

2021

Akuntabilitas

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This study examined the relationship between good corporate governance (GCG) and eco-efficiency on firm performance and firm value. Good corporate governance were proxied by GCG score, board meeting, and board independent. Eco-efficiency was proxied by the ownership of the environmental management certificate ISO 14001. Firm value was proxied by Tobins’Q value owned the company. Firm’s financial performance was proxied by Return on Assets (ROA) value. This research was motivated by an empirical gap, which there are companies that have corporate governance issues but still have a positive response by the market as indicated by an increasing share price. In addition, there are still differences results from previous studies. The results of this study indicate that eco-efficiency which proxied by the ownership of an ISO 14001 environmental management certificate has a positive and significant relationship with firm’s financial performance (ROA), where ROA has a positive and significant relationship to firm value. However, eco-efficiency does not have a direct relationship with firm value. Meanwhile, good corporate governance has no relationship with firm’s financial performance and firm value.

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Section: Eco-efficiency and Firm Valuementioning

confidence: 99%

Does Good Corporate Governance and Eco–efficiency Really Contribute to Firm Value? An Empirical Study in Indonesian State-Owned Enterprises (Soes)

Safitri

Nani

2021

Akuntabilitas

View full text Add to dashboard Cite

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The influence of eco-efficiency on firm value with funding structure as a moderating variable

Septianingrum

2022

JAE

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The aim of this research is to prove that eco-efficiency has an effect on firm value and the funding structure has a strong influence on eco-efficiency on firm value. This study includes quantitative research because it uses secondary data and manufacturing companies listed on the Indonesia Stock Exchange from 2015 to 2019 are the samples selected in this study. Multiple linear regression analysis technique was used in this study. The result of the analysis is that eco-efficiency has a significant negative effect on firm value. This is an indication that companies that implement eco-efficiency implementation will reduce firm value. While the results of the analysis on the funding structure have a significant positive effect giving a strong impact on eco-efficiency on firm value. The results indicate that the company's management must plan its obligations in preparing the funding structure for managing the use of natural resources efficiently in order to avoid contingency problems that will arise. The eco-efficiency concept makes it easier for companies to create products with added value and can help companies reduce the risk of the production process.

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Does Eco-Efficency Reduce Cost of Equity Capital? (Empirical Evidence from Indonesia)

Abstract: ABSTRACT

Cited by 2 publications

References 4 publications

Does Good Corporate Governance and Eco–efficiency Really Contribute to Firm Value? An Empirical Study in Indonesian State-Owned Enterprises (Soes)

Does Good Corporate Governance and Eco–efficiency Really Contribute to Firm Value? An Empirical Study in Indonesian State-Owned Enterprises (Soes)

The influence of eco-efficiency on firm value with funding structure as a moderating variable

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