Consistent Environmental Performance: Does It Matter for Achieving Good Financial Performance?
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Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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open access

Published: 13 December 2018

Consistent Environmental Performance: Does It Matter for Achieving Good Financial Performance?

Juniarti, Denvi Novendri Wijaya, Joshua Taruman, Rio Valentino

Petra Christian University, Indonesia

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.01.04.53

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Abstract

This study examines the impact of environmental performance on financial performance in Indonesia. To improve the prior results, this study focuses on companies that consistently achieve good environmental performance and those who do not consistently obtain good performance. The environmental performance measured by environmental ratings that published through a PROPER Program, while the financial performance is measured by return on assets, earning per share, and Tobin's q. Some control variables included in this study such as firm age, firm size, leverage, and market share. The study finds that environmental performance is positive significantly associated with financial performance for the companies that consistently record a good environmental performance. The more consistent the company’s performance in environmental, the higher the association with the financial performance.

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