Effect of Environmental Performance and Environmental Costs on Financial Performance With CSR Disclosure As Intervening Variables

Abstract

This research is a conceptual paper that aims to determine the effect of researchers will examine the effect of Environmental Performance and Environmental Costs on Financial Performance with CSR as an Intervening variable on mining companies listed on the Exchange Indonesian Securities and participated in the 2015-2018 PROPER. This research is expected to be used as a material consideration in making policies concerning environmental performance and as a tool to measure financial performance for the progress of the company. In addition to being taken into consideration, researchers hope that this research can be used to help in making investment decisions in the company as an evaluation material.

The Factors Affecting Financial Performance in Mining Sector Companies 2014-2019 Period

“…And this will significantly affect financial performance if environmental costs cannot be controlled properly in prevention efforts and costs for environmental detection activities (Zainab and Burhany, 2020). A positive relationship between environmental cost and financial performance is also revealed in the research results obtained by Derila et al (2020) and Septiadi (2016). H5: Environmental Cost has a positive effect on financial performance in mining sector companies listed on IDX in 2014-2019…”

“…In their research, the result obtained by Ladyve et al (2020) and Zainab and Burhany (2020) explained a significant negative effect of environmental cost on the company's financial performance. Different research results were obtained by Derila et al (2020) and Septiadi (2016), indicating a positive influence from the two variables. In comparison, the results presented by Setiawan et al (2018) and Amani et al (2020) are in the absence of significance.…”

“…Most of the previous literature in examining factors that affect financial performance only focuses on one of the variables used in this research such as leverage (Banafa et al, 2015;Isbanah, 2015;Rachman et al, 2015), capital structure (Setiana and Rahayu, 2012;Nirajini and Priya, 2013;Komara et al, 2016;Mwambuli, 2016;Taqwa, 2016), intellectual capital (Baroroh, 2013;Ciptaningsih, 2013;Trisnowati and Fadah, 2014;Nimtrakoon, 2015;Puspitosari, 2016;Setyawan et al, 2017), and environmental costs (Tunggal and Fachurrozie, 2014;Septiadi, 2016;Amani et al, 2020;Derila et al, 2020;Zainab and Burhany, 2020) or some, such as the firm size and environmental cost (Setiawan et al, 2018;Ladyve et al, 2020) and so on, so it is very limited to specifically use the variables of leverage, firm size, capital structure, intellectual capital, and environmental performance in one research concept, especially in mining sector companies whose application is minimal budgeting for environmental costs. Then, this research also used an observation period of six consecutive years, namely 2014-2019, so it is relatively different from previous researchers.…”

Transformative Leadership, Locus Of Control On Fraud Detection And Environmental Performance

“…Organizations that pay attention to environmental performance have a competitive advantage compared to organizations that do not pay attention to environmental performance. In other words, organizations that pay attention to environmental balance can detect risks posed from outside the organization (Derila et al, 2020) H5: Environmental performance can strengthen the influence of locus of control on fraud detection.…”

Identifying determinants of CSR implementation on SDG 17 partnerships for the goals

“…It is worth mentioning that most of the literature on determinants for CSR focuses around CSR disclosure (i.e., Ali et al, 2017;Gamerschlag et al, 2011) and the determinants between CSR for corporate financial performance (i.e. Derila et al, 2020;Fauzi & Idris, 2010), for this reason, the studies considered as the reference for the survey included those who study determinants of CSR programs in general or in a specific industry.…”