Linking Ownership Concentration to Firm Value: Mediation Role of Environmental Performance

2019 ◽  
Vol 10 (1) ◽  
pp. 182
Author(s):  
Mohamad Nur UTOMO ◽  
Sugeng WAHYUDI ◽  
Harjum MUHARAM ◽  
Monica Rahardian Ary HELMINA
Keyword(s):  
Performance Assessment ◽  
Environmental Performance ◽  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Legitimacy Theory ◽  
Assessment Program ◽  
Environmental Performance Assessment

Research was aimed to examine the indirect effect of ownership concentration on firm value through environmental performance. Firms with businesses at mining, manufacture, and agriculture sectors, and that listing at Indonesia Stock Exchange and participating with Environmental Performance Assessment Program (PROPER), were the sample of research. Research has given some results. Ownership concentration has positive impact non-linearly on environmental performance. Ownership concentration can increase firm value through strategy of improving environmental performance. These results supported stakeholder theory and legitimacy theory. Corporate action that adopts environmentally friendly issue was selected as strategy to create firm value.

scholarly journals Environmental Performance and Firm Value: Testing the Role of Firm Reputation

2019 ◽  
Vol 11 (1) ◽  
pp. 137
Author(s):  
Khanifah Khanifah ◽  
Jaka Isgiyarta ◽  
Fitri Alfiana ◽  
Udin Udin
Keyword(s):  
Environmental Performance ◽  
Firm Value ◽  
Structural Equation ◽  
Stock Exchange ◽  
Mining Industry ◽  
Equation Modeling ◽  
Firm Reputation ◽  
Industry Sectors ◽  
The Relationship

This study aims to analyze the empirical evidence about the effect of environmental performance on firm value mediated by firm reputation. The sample of this study is the mining industry sectors listed on the Indonesia Stock Exchange from 2015 to 2018. The data is analyzed using partial least squares based structural equation modeling (PLS-SEM) with WarpPLS 6.0 software. The results show that environmental performance has a positive and significant effect on firm reputation. In contrast to the expectation, environmental performance has a negative and significant effect on firm value. Firm reputation further becomes a significant mediator in the relationship between environmental performance and firm value. These findings recommend for future studies to expand the objects and extend the observation period.

scholarly journals Pengaruh Kinerja Lingkungan Terhadap Kinerja Keuangan Dengan Corporate Responsibility Sebagai Variabel Intervening Pada Perusahaan Manufaktur Yang Terdaftar Terdaftar Di Bursa Efek Indonesia Tahun 2015 – 2017

2020 ◽  
Vol 7 (2) ◽  
pp. 51
Author(s):  
Marini Yuniarti ◽  
Tapi Rumondang Sari Siregar
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Performance Assessment ◽  
Environmental Performance ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Assessment Program ◽  
The Republic ◽  
Corporate Social

Abstract : This research is about the problem of environmental performance on financial performance with corporate social responsibility as an intervening. This study aims to determine the Influence of Environmental Performance on Financial Performance with Corporate Social Responsibility as an intervening variable in manufacturing companies listed on the Indonesia Stock Exchange and participate in the Corporate Performance Assessment Program (PROPER) of the Ministry of Environment of the Republic of Indonesia. The research period used is 2015-2017. The population in this study are Manufacturing Companies listed on the Indonesia Stock Exchange and participate in the Corporate Performance Assessment Program (PROPER) of the Ministry of Environment of the Republic of Indonesia in the 2015-2017 observation period. The research sample was taken using a purposive sampling method . 24 Manufacturing Companies obtained as samples. The results of the first hypothesis analysis indicate that the results of the t test for environmental performance variables obtained a significance value of 0.096, which means greater than 0.05. While in the second hypothesis, the test results are seen from the significance value of the environmental performance variable of 0.001 which means less than 0.05. Furthermore, the third hypothesis is calculated by multiplying the indirect coefficient, namely ((0,051) x 13,236) = 0,675036 so that the total effect becomes (0,498 + (0,051) x 13,236)) = 1,173036. This means that the level of indirect influence of Environmental Performance on financial performance is 1,173036 greater than the direct relationship coefficient of 0,498. Based on the results of data analysis it can be concluded that: (1) Environmental Performance does not affect Financial Performance . (2) Environmental Performance has a positive and significant effect on Corporate Social Responsibility . (3) Partially Environmental Performance has a positive and significant effect on Financial Performance with Corporate Social Responsibility as an intervening variable. Keywords: environment performance, financial performance, corporate social responsibility

scholarly journals The Effects of Financial and Environmental Performances on Firm Value with Environmental Disclosure as an Intervening Variable

2020 ◽  
Vol 12 (2) ◽  
pp. 90-99
Author(s):  
Theresia Coline Sari Rinsman ◽  
Andrian Budi Prasetyo
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Firm Value ◽  
Stock Price ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Corporate Sustainability ◽  
Secondary Data ◽  
Environmental Disclosure

This study aims to analyze the effects of financial performance and environmental performance to firm value with environmental disclosure as an intervening variable. Financial performance which measured by Ratio On Sales (ROS) and environmental performance which measured by PROPER ranking act as independent variables and firm value which measured by stock price acts as dependent variable also environmental disclosure which measured by GRI Standards as an intervening variable. This study uses secondary data and selects the sample used purposive sampling method. The samples consist of non financial companies listed in the Indonesia Stock Exchange (IDX), participated in the PROPER (Program Penilaian Peringkat Kinerja Perusahaan / Performance Rating Assestment Program on Environment Management) and published both annual report and sustainability report for 2017-2018. Partial Least Squares technique is chosen for the study statistic analysis. Results from this research show that financial performance has a negative impact on environmental disclosure, environmental performance has a significant positive impact on environmental disclosure and environmental disclosure does not affect the firm value. Next, the environmental disclosure is not able to intervene the effects of financial performance and environmental performance on firm value. The implications of this research are prove that the environmental aspects of information disclosed by the company have not been an important assessment for investors in viewing the performance of a company and also suggest investors to consider the company's environmental disclosure in making investment decisions because it contain an important aspect of corporate sustainability.

scholarly journals Pengaruh Corporate Social Responsibility pada Nilai Perusahaan dengan Kinerja Lingkungan Sebagai Pemoderasi

2019 ◽  
pp. 413
Author(s):  
Veronica Padma Lingga ◽  
M. G. Wirakusuma
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Environmental Performance ◽  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Analysis Technique ◽  
Corporate Social ◽  
Positive Effect

This study aims to determine the effect of Corporate Social Responsibility on the value of the company with environmental performance as moderating. This research was conducted on basic industrial and chemical sector companies, various industries, and mining listed on the Indonesia Stock Exchange for the period 2015-2017. The sampling technique in this study was taken based on non-probability sampling method with a purposive sampling technique so as to produce a sample of 43 companies. The data analysis technique used in this study was moderated regression analysis. Based on the results of the analysis it was found that Corporate Social Responsibility had a positive effect on firm value. The results of this study also show that environmental performance is not able to moderate the influence of Corporate Social Responsibility on firm value, which is due to good environmental performance that may not necessarily have a positive impact or benefits for investors.

scholarly journals The Role of Manager Compensation and Integrated Reporting in Company Value: Indonesia vs. Singapore

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 142
Author(s):  
St. Dwiarso Utomo ◽  
Zaky Machmuddah ◽  
Dian Indriana Hapsari
Keyword(s):  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Integrated Reporting ◽  
Company Value ◽  
The Impact ◽  
Manager Compensation ◽  
A Company

The disclosure of integrated reporting elements can reduce information asymmetry for investors when valuing a company. This study aimed to empirically evaluate the effect of manager compensation, directly or indirectly, on firm value, through the mediating role of the disclosure of integrated reporting elements. The research sample included manufacturing companies listed on the Indonesia Stock Exchange (IDX) and the Singapore Stock Exchange (SGX). The method of analysis was PLS-SEM, using the WarpPLS 7.0 application. The results showed that compensation significantly affects firm value and the disclosure of integrated reporting elements. Integrated reporting has a significant positive impact on firm value. In addition, the disclosure of integrated reporting can mediate the impact of manager compensation on increasing firm value. This research theoretically supports agency theory, disclosure theory, and signal theory, although it is not fully applicable to each country or region of the sample company. The current research contributes to the understanding of the importance of a company’s integrated reporting disclosure in improving company value among investors. Integrated reporting describes how a company creates value over time. Our results also suggest that regulators should oblige public companies to disclose integrated reporting.

scholarly journals Carbon Emissions Disclosure as Mechanism to Increase Environmental Performance and Control of Idiosyncratic Risk: How They Impact Firm Value

2020 ◽  
Vol 4 (2) ◽  
pp. 227
Author(s):  
Fransiskus Eduardus Daromes ◽  
Suwandi Ng ◽  
Novita Wijaya
Keyword(s):  
Carbon Emissions ◽  
Environmental Performance ◽  
Firm Value ◽  
Research Study ◽  
Stock Exchange ◽  
Idiosyncratic Risk ◽  
Mediating Role ◽  
High Profile ◽  
And Control

This research attempts to investigate the predictive effect of carbon emissions disclosure on firm value both directly and through environmental performance and idiosyncratic risk. With data collected from all non-financial high-profile companies listed on the Indonesia Stock Exchange and testing through path analysis, findings reveal that carbon emissions disclosure has a positive significant effect on environmental performance, but not on idiosyncratic risk and firm value. Further statistics testing showed that both idiosyncratic risk and environmental performance have a positive and significant effect on firm value. We also used Sobel testing to test mediation role of environmental performance and idiosyncratic risk on the effect of carbon emissions disclosure on firm value. The results show that environmental performance plays a mediating role whereas idiosyncratic risk does not. The implications of this research study are discussed from both theoretical and managerial perspectives.

Peran kepemilikan institusional, perencanaan pajak dan dewan komisaris asing terhadap nilai perusahaan

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Anita Ade Rahma ◽  
Lisa Nabawi ◽  
Ronni Andri Wijaya
Keyword(s):  
Significant Influence ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Total Sample ◽  
Tax Planning ◽  
Purposive Sampling ◽  
Institutional Leadership ◽  
Company Value

The purpose of this study is to analyze the role of institutional leadership, tax planning and foreign board of commissioners on firm value. The population in this study were 615 companies listed on the Indonesia Stock Exchange in 2015-2017. The sample was chosen using purposive sampling to get a total sample of 325 companies with a total of 975 observations of company data. The results of this study indicate that institutional leadership and tax planning have no role in increasing company value. While the foreign board of commissioners showed a significant influence on the value of the company. This proves that there is a need for diversity in the structure of the board that can trigger an increase in the value of the company. In addition, the presence of a foreign board is needed for the progress of the companyKeywords: Investment decisions; funding decisions; dividend policy; company value

Effect of Enterprise Risk Management on Firm Value: Empirical Evidence from Non-Financial Firms in Pakistan

GIS Business ◽  
1970 ◽  
Vol 13 (2) ◽  
pp. 15-28
Author(s):  
Nouman Nasir
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Least Square ◽  
Return On Equity ◽  
Financial Firms ◽  
Enterprise Risk ◽  
Ordinary Least Square Regression

This research examines the effect of enterprise risk management on firm value in Pakistan. Further, this study empirically examines company characteristics that establish the execution of an enterprise risk management system. Using a sample of final dataset of 83 non-financial firms located in Pakistan. The sample included non-financial firms from the year 1999 to 2015 and so up to seventeen observation years per company. As in context of Pakistan, most of the organizations are already implement an ERM programs and establish specialized ERM departments because the ERM is now a global term and has become increasingly relevant because of the growing difficulty of risk and an additional development of regulatory frame works. For the empirical evidences, data collected from non-financial firms listed at the Pakistan Stock Exchange (PSX). Results of logistic regression shows that Capital Opacity, Profitability, Financial Leverage, Firm Size and Slack have positive impact on the implementation of an ERM system but Industrial diversification, Industry and Return on Equity are negatively related to an ERM engagement. The results of ordinary least square regression finds positive relationship between use of an ERM and firm value.

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