Abstract
The environmental damage is one of the essential factors that determine of disasters. Industrial activities that are mostly in urban areas are contributors to this problem. These activities often exploit resources from rural to an urban area. So that industry is required to be actively involved in maintaining the rural area alike implementing a green industry thatcan be represent through the application of green accounting which is disclose environmental information. The purpose of this paper is to explain the involved an industry in rural areas. Especially, to explain benefit and industry motive. This study uses legitimacy theory and stakeholder theory as a theoretical framework to explain the role of industry. The research method used a quantitative approach and seconder data from Indonesia stock exchange with the LQ45 index as a sample. The data analyzed using multiple regression and path analysis to examine environmental factors that influence the economic performance. The result of this study shows that environmental performance and environmental cost has an influence on environmental disclosure then influence economic performance. Furthermore, it can be identified that the company get the benefit from environmental performance and environmental cost. Also, Economic performance is a reason why an industry involved in maintaining the rural area.
Highlights
The environmental damage is the main factors that causes disasters
The indicators are using for measuring corporate performance variables from an investment perspective that has been tested in various top management situations (Wolfe and Sauaia, 2003)
Tobin's Q=((Total share x Price)+(Total Liabilities+Inventory-Current Assets))/(Total Assets) The data is analysed by Multiple Regression technique for analysis factor that influence dependent variable and path Analysis to determine mediatefunction of environmental disclosure
Summary
The environmental damage is the main factors that causes disasters. In 2004, the United Nations High- Level Threat Challenges and Change Panel explain that environmental degradation as one of ten threats to the world.The waste is one of reason the environmental damage. Environmental disclosure is one kind of method of the company's responsibilities to the public It is relevant with theory of legitimacy is explain that stakeholder or community will be involve on legitimacy.the valuation will be influence to company economic performance (Zhongfu et al, 2011). This term will create the paradigm that the company with excellent environmental performance will disclose excellent environmental information (Ingram and Frazier, 1980; Freedman and Wasley, 1990). This research will explain whether the economic performance is main company motive to did green industry practice
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
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 callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
