DOES ECO-EFFICENCY REDUCE THE COST OF EQUITY CAPITAL? EMPIRICAL EVIDENCE FROM INDONESIA
Keyword(s):
The objective of this study is to examine the effect of eco-efficiency on the cost of equity capital. The study hypothesizes that the implementation of eco-efficiency reduces the cost of equity capital. Using manufacturing companies listed on the Indonesian Stock Exchange for the period 2010-2012 as data, and controlling for beta, company size, Book to Market ratio, and leverage; the study finds that the implementation of eco-efficiency may reduce the cost of equity capital. The findings suggest that companies should implement ecoefficency.Keywords: cost of equity capital; eco-efficiency; ISO 14001; environmental accounting
1973 ◽
Vol 8
(2)
◽
pp. 229
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2021 ◽
Vol 5
(1)
◽
pp. 104-112
Keyword(s):