scholarly journals Does Financial Performance Drive Environmental Disclosure and Environmental Cost? Evidence from Indonesia

2021 ◽  
Vol 16 (2) ◽  
pp. 317
Author(s):  
Rima Kusuma Rini ◽  
Desi Adhariani
Keyword(s):  
Financial Performance ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Least Square ◽  
Environmental Cost ◽  
Environmental Costs ◽  
Environmental Disclosure ◽  
Environmental Disclosures ◽  
Ordinary Least Square Regression

This study examines whether financial performance affects environmental disclosures and environmental costs. Samples from mining and energy companies that are listed on the Indonesia Stock Exchange from 2015 to 2019 were analyzed using the content analysis method and ordinary least square regression.  This study finds that financial performance bears a positive relationship to environmental costs that indicates whether assets are efficiently used as a basis to engage in spending on environmental activities. There is a negative relationship between financial performance and environmental disclosure and a positive relationship between environmental cost and environmental disclosures. This study implies wider stakeholder understanding of how financial performance affects environmental cost and disclosure.  The study implies a role of the cost element in the relationship between financial performance and environmental disclosure.

scholarly journals PENGARUH KINERJA LINGKUNGAN DAN BIAYA LINGKUNGAN TERHADAP KINERJA KEUANGAN DENGAN PENGUNGKAPAN LINGKUNGAN SEBAGAI VARIABEL INTERVENING (Studi Empiris Pada Perusahaan Pertambangan Yang Terdaftar di BEI Tahun 2014-2018

2020 ◽  
Vol 5 (2) ◽  
pp. 123-138
Author(s):  
Mas Findi Mulya Saputra
Keyword(s):  
Linear Regression ◽  
Financial Performance ◽  
Environmental Performance ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Environmental Costs ◽  
Environmental Disclosure ◽  
Mining Companies ◽  
Environmental Disclosures ◽  
Positive Effect

This study aims to determine the effect of environmental performance and environmental costs on financial performance with environmental disclosure as an intervening variable. The population in this study are mining companies listed on the Indonesia Stock Exchange (IDX) in 2014-2018. By using purposive sampling technique obtained 45 sample companies and analyzed using multiple linear regression. The results of this study indicate that (1) environmental performance has a positive effect on financial performance (2) environmental costs have no positive effect on financial performance (3) environmental disclosure has no positive effect on financial performance. (4) Environmental Performance has a positive effect on Environmental Disclosure. (5) Environmental Costs have no positive effect on Environmental Disclosure. (6) Environmental Performance against Financial Performance is mediated by Environmental Disclosures. (7) Environmental Costs to Financial Performance are not mediated by Environmental Disclosures.

scholarly journals Determinants of Quality Accounting Information Disclosure

2017 ◽  
Vol 3 (1) ◽  
pp. 79-86
Author(s):  
Sagin Oghenekowhodo Super ◽  
Nikhil Chandra Shil
Keyword(s):  
Information Disclosure ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Accounting Information ◽  
Negative Relationship ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Least Square ◽  
Disclosure Quality ◽  
Ordinary Least Square Regression

Purpose: This study aims at examining the factors determining the quality of accounting information disclosure in Nigerian firms. The study made use of secondary data obtained from the Nigerian stock exchange. Ordinary least square regression technique was used to test the hypothesis for this study. The study found a positive relationship between firm size and disclosure quality. Institutional ownership, firm performance and earnings per share also had a positive relationship with disclosure quality. Firm leverage was found to have a negative relationship with disclosure quality. This study recommends that firms should introduce the idea of institutional ownership and also leverage usage should be minimized.

scholarly journals PENGARUH CORPORATE SOCIAL RESPONSIBILITY TERHADAP KINERJA KEUANGAN PERUSAHAAN (Studi Empiris Perusahaan Sektor Pertambangan dan Pertanian yang Terdaftar Di Bursa Efek Tahun 2012-2014)

2017 ◽  
Vol 2 (02) ◽  
Author(s):  
Rachmat Harisianto ◽  
Dewi Sutjahyani
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Economic Performance ◽  
Structural Equation ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Partial Least Square ◽  
Least Square ◽  
Corporate Social

ABSTRACTThis research was conducted to analyze the effect of Corporate Social Responsibility performance indicators Economic, Environmental, and Social on financial performance. This study was made to determine how the implementation of Corporate Social Responsibility Financial Performance. The method used in this research is quantitative method and the population is a company mining and agricultural sectors listed in Indonesia Stock Exchange in 2012-2014, using data analysis SEM (Structural Equation Modelling) by the application program PLS (Partial Least Square) version 3.2. 1. Results obtained indicate that Corporate Social Responsibility (CSR) of the three indicators Economic Performance (KE), Environmental Performance (KL), Social Performance (KS) to the company's financial performance and Agriculture Mining sector not significant coefficient -0317 parameter Corporate social yangberarti responsibility (CSR) to the financial performance had a negative relationship which means no direction opposite relationship. Keywords: Influence of Corporate Social Responsibility of the three indicators Economic Performance, Environmental, and Social the Financial Performance.

scholarly journals Association between Degree of Leverages and Firm Value

2016 ◽  
Vol 8 (1) ◽  
pp. 212 ◽  
Author(s):  
Pradeep Kumar Gupta ◽  
Shailendra Kumar ◽  
Piyush Verma
Keyword(s):  
Emerging Markets ◽  
Firm Value ◽  
Stock Price ◽  
Stock Exchange ◽  
Market Price ◽  
Negative Relationship ◽  
Least Square ◽  
Financial Leverage ◽  
Individual Firm ◽  
Ordinary Least Square Regression

<p>This study aims to empirically investigate the association between degree of leverages, operating and financial, and firm value in the context of India, one of big ten emerging markets (Garten, 1997). This study examines this association for 231 manufacturing firms listed in National Stock Exchange (NSE) in India over a period from 2001-2002 to 2010-2011. The independent variables, degrees of operating and financial leverage, and a market price-based dependent variable, called price-earnings ratio as a proxy of firm value, are taken to examine this relationship by using standard ordinary least square regression models at the levels of individual firm and portfolio of firms. The findings of this study show a statistically significant negative relationship between firm value and degree of operating leverage and a statistically insignificant relationship between firm value and degree of financial leverage both at the levels of individual firm and portfolio of firms. Using the data from a country like India, one of fastest growing emerging markets in the world, this study provides an important insight on the effect of leverages on the firm value, the association between independent accounting variables and stock price-based dependent variable, to the practitioners, the scholars and the finance managers. </p>

A study of the relationships among environmental performance, environmental disclosure, and financial performance

2018 ◽  
Vol 26 (1) ◽  
pp. 107-130 ◽  
Author(s):  
Lucy Wenxiang Lu ◽  
Martin Edward Taylor
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Negative Relationship ◽  
Simultaneous Equation ◽  
Least Square ◽  
Medium Size ◽  
Environmental Disclosure ◽  
Content Type ◽  
Industry Effect ◽  
Using Data

Purpose The purpose of this paper is to study the relationships among environmental performance (EP), environmental disclosure (ED), and financial performance (FP) (three corporate constructs) using data from Newsweek’s green rankings. Design/methodology/approach Previous studies document mixed results about the relations among the three constructs. A firm’s overall management strategy may affect the three constructs simultaneously; therefore, the interrelationships among EP, ED, and FP were jointly examined. A simultaneous equations approach was used to test the hypothesis. Findings The three-stage least square (3SLS) estimation results show a negative relationship between EP and FP and a positive relationship between EP and ED, suggesting that financially successful firms are less likely good environmental performers but green firms are more likely to disclose their EP. Research limitations/implications Since the sample firms examined in this study are US large-size companies, the results found in this paper may not apply to small- and/or medium-size firms or to companies in other countries. Practical implications Three corporate constructs are jointly correlated with each one. A firm’s overall strategic plan on environmental engagement is likely reflected in how it engages in each of the constructs that affect costs and benefits. Sustainable efforts, in short term, may put firms at risk. Companies may need to take a long-term perspective when cutting costs is curtailed. Originality/value The research contributes to the ED and EP literature by using a 3SLS simultaneous equation method and analyzing a more recent and comprehensive multi-industry data. By controlling industry effect, the research investigates the interrelationships among three corporate constructs and finds interesting results. An interpretation and discussion are provided.

scholarly journals ENVIRONMENTAL COSTS AND FINANCIAL PERFORMANCE OF OIL AND GAS COMPANIES IN NIGERIA

2021 ◽  
pp. 1-18
Author(s):  
Azubike Oraka
Keyword(s):  
Financial Performance ◽  
Environmental Remediation ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Environmental Cost ◽  
Environmental Costs ◽  
Tobin’S Q ◽  
Compliance Cost ◽  
Tobin's Q ◽  
Oil And Gas Companies

This study ascertains the effect of environmental costs on financial performance of oil and gas companies on the Nigeria stock exchange. The specific objectives are to: Ascertain the effect of Environmental Remediation Cost on Tobin’s Q of Oil and Gas Companies listed on Nigeria Stock Exchange, and evaluate the effect of Compliance Cost on Tobin’s Q of Oil and Gas Companies on the Nigeria Stock Exchange. Ex Post Facto research design was adopted for the study. Data were gathered from the published financial statements of the eleven (11) Oil and Gas companies for eleven (12) years period. The study found that Compliance Cost and Environmental Remediation Cost have significant effect on Tobin’s Q of Oil and Gas Companies listed on Nigeria Stock Exchange. Based on this, the researchers recommended amongst others that since Environmental Remediation Cost and financial performance are positively related, then oil and gas firms should be environmentally friendly to enable them gain competitive advantage, high liquidity and reduced environmental cost in the long run.

scholarly journals The Influence of Environmental Performance, Environmental Cost and ISO 14001 on Financial Performance in Non-Financial Companies Listed on the Indonesia Stock Exchange

2020 ◽  
Vol 1 (2) ◽  
pp. 74-83
Author(s):  
Husnah Nur Laela Ermaya ◽  
Ayunita Ajengtiyas Saputri Mashuri
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Stock Exchange ◽  
Total Sample ◽  
Iso 14001 ◽  
Environmental Cost ◽  
Environmental Costs ◽  
Negative Effect ◽  
Independent Variable ◽  
Iso 14001 Certification

This study aims to determine the effect of Environmental Performance, Environmental Costs and ISO 14001 on Financial Performance. The independent variable in this study was Environmental Performance measured by using PROPER, Environmental Costs measured by environmental costs incurred by companies, ISO 14001 measured by a dummy with a weight of 1 for companies that have ISO 14001 certification and 0 for and vice versa. The population in this study are all non-financial companies listed on the Indonesia Stock Exchange (IDX) with an observation period of 3 years, 2016- 2018, using a sampling method that is purposive sampling and the total sample obtained is 23 sample companies per year, 2 outlier samples , so that the total sample obtained in this study was 67 samples. The results of this study indicate that environmental performance has a significant positive effect on financial performance, environmental costs have a significant negative effect on financial performance, and ISO 14001 doesn't effect on financial performance.

scholarly journals Determinants of dividend payout ratio: evidence from Indonesian manufacturing companies

2019 ◽  
Vol 2 (2) ◽  
pp. 112
Author(s):  
Dessy Widyawati ◽  
Astiwi Indriani
Keyword(s):  
Positive Impact ◽  
Stock Exchange ◽  
Control Variable ◽  
Negative Relationship ◽  
Least Square ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Dividend Payout ◽  
Equity Ratio ◽  
Ordinary Least Square Regression

The purpose of this study is to investigate and analyze the relationship between return on assets, growth sales, debt to equity ratio, lagged dividend to dividend payout ratio and size as control variable. Data collected from manufacturing industries in Indonesian Stock Exchange 2011-2017. The method of this study is ordinary least square regression. The results of this study shows that return on assets and lagged dividend have positive impact to dividend payout ratio. Growth sales has insignificance negative relationship to dividend payout ratio. Debt to equity ratio has positive relationship to dividend payout ratio and has insignificance sign

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.

scholarly journals Financial Performance of Iranian Banks from 2013 to 2019: A Panel Data Approach

2021 ◽  
Vol 14 (6) ◽  
pp. 257
Author(s):  
Pejman Ebrahimi ◽  
Maria Fekete-Farkas ◽  
Parisa Bouzari ◽  
Róbert Magda
Keyword(s):  
Financial Performance ◽  
Inflation Rate ◽  
Banking Sector ◽  
Stock Exchange ◽  
Screening Method ◽  
Negative Relationship ◽  
Statistical Population ◽  
Explanatory Variables ◽  
Significant Negative Relationship ◽  
Research Population

It is widely believed that the financial system is dependent on the banking industry, and its strength and development are vital for economic prosperity. This paper tried to show the financial performance of Iranian banks listed on the Tehran Stock Exchange (TSE) during 2013–2019, as the research population. The statistical population included 18 banks listed on the TSE from 2013 to 2019, which were sampled using a screening method. The results indicated a significant relationship between explanatory variables of capital ratio and the financial performance of banks in all models. However, a significant negative relationship was found between the inflation rate and the financial performance of banks in all models. Furthermore, it seems that banks with high asset strength are more profitable than the others. Regulators should guarantee that banks remain highly capitalized for a viable banking sector in Iran.

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