Environmental Performance, Environmental Costs and Financial Performance

Abstract

The purpose of this research was to determine the effect of environmental performance and environmental costs on financial performance. This research uses a quantitative method. Purposive sampling method is used in sample selection in which the companies studied are mining and manufacturing companies in Indonesia which are listed on the Stock Exchange. This research uses ratio analysis to measure financial performance and measure environmental performance sorted by PROPER rating, to measure environmental cost used data obtained by looking for a percentage of the environmental cost and then statistical methods to test the hypothesis. The results of this research indicate that only the environmental costs has an effect on the financial performance of mining and manufacturing companies with a significant level 0.047. It means that the disclosure of environmental costs carried out by mining and manufacturing companies in Indonesia for the 2014-2018 period has an impact on financial performance, and the company's concern, both in terms of costs for environmental prevention, costs for environmental detection, costs for internal failure and costs for external environmental failure can minimize the risk of environmental pollution.

The impact of Environmental Accounting on Financial Performance: Evidence from Oil Companies in IRAQ

“…The relationship between corporate environmental performance and economic performance has been studied by a number of scholars (Okoye, et. al., 2016;Setiawan, & Honesty, 2021). These research' findings are not conclusive.…”

“…Environmental concerns are perceived differently than they are really performed. For instance, there may be discrepancies between managers' and accountants' perceptions of environmental issues and management and actual firm performance, according to Setiawan & Honesty (2021) and Owolabi (2006). This is primarily due to how much managers and accountants perceive the costs and liabilities associated with environmental preservation.…”

Pengaruh Environmental Governance Terhadap Kinerja Keuangan Dengan Ukuran Perusahaan Sebagai Pemoderasi

“…Oleh karena itu, perusahaan yang memandang lingkungan sebagai faktor kunci dalam strategi bisnis mereka dapat mengalami dampak positif yang signifikan pada kinerja keuangan mereka. Namun penelitian tersebut tidak sejalan dengan (Meiyana & Aisyah, 2019) yang menunjukan bahwa biaya lingkungan berpengaruh negatif terhadap kinerja keuangan dan dalam penelitian (Setiawan & Honesty, 2020) yang menunjukan bahwa biaya lingkungan berpengaruh negatif terhadap kinerja keuangan.…”

“…Berdasarkan uji hipotesis, kesimpulan bahwa enviromental performance tidak berpengaruh terhadap Financial Performance. Temuan ini konsisten dengan penelitian yang dilakukan oleh (Setiawan & Honesty, 2020) dan (Fahira & Yusrawati, 2023), yang mengindikasikan bahwa ketidak berpengaruhannya kinerja lingkungan terhadap kinerja keuangan terdapat faktor-faktor eksternal yang lebih dominan mempengaruhi kinerja keuangan perusahaan, seperti fluktuasi pasar atau perubahan regulasi industri. Perusahaan belum sepenuhnya mengintegrasikan praktik-praktik berkelanjutan ke dalam strategi bisnis mereka sehingga dampaknya terhadap kinerja keuangan tidak terlihat dalam jangka pendek.…”

“…H.3 Tidak ada pengaruh antara environmental governance yang di proksi environmental performance secara parsial terhadap financial performance. Hal ini dibuktikan pada tabel 4.15 diperoleh nilai signifikansi sebesar 0,6859 yang berarti lebih besar dari 0,05 (0,6849 > 0,05) dan nilai unstandardized beta -0,0004 dengan arah Negatif dan T hitung > T Tabel (0,4065 < 2,001, temuan ini konsisten dengan penelitian yang dilakukan oleh (Setiawan & Honesty, 2020) dan (Fahira & Yusrawati, 2023).…”