Abstract
The aim of this study is to acquire empirical evidence that environmental performance and environmental disclosure has an influence on financial performance. The key differentiation between this study and previous studies is the use of different variables and measurement methods. The hypothesis of this study is based on stakeholder theory and legitimation theory. The purposive sampling method was used to collect data from manufacture companies listed in the Indonesian Stock Exchange and the PROPER 2016-2018 program. Instruments for classic assumptions have been tested. Afterwards, multiple linear regression is used as the analysis method, and secondary data types with the use of documentation methods. The outcome of this study shows that environmental performance and environmental disclosure has a significantly positive influence towards financial performance.
Highlights
Financial performance is expressed in the perennial financial report of a company
From the total number of companies listed in the Indonesian Stock Exchange in 2016-2018, the amount of companies listed for those periods is 66 companies
The main issue motivating the conducted investigation is providing the understanding regarding the role of environmental performance and environmental disclosure influencing the financial performance companies in Indonesia
Summary
Financial performance is expressed in the perennial financial report of a company. A good financial performance provides an intelligible description of the successes of a company. The current economic market does demand the conception of financial performance that solely focuses on generating large profits for the company, and accompanied with an ethical attitude towards financial performance. There is a rise of awareness on sustainable business development as a method to increase longterm financial performance (Gatimbu & Wabwire, 2016). The demand for ethical financial performance has an implication towards the manifestation of industrial activities as a harmonic interaction between shareholders or the business actors themselves. Financial ratio analysis becomes a standard method used to measure the performance of a company financially
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
