Effect Of Environmental Performance Research Articles

Effect of Environmental Performance and Company Size on Financial Performance

This research aims to analyze the influence of environmental performance and company size on financial performance in consumer goods sub-sector companies listed on the IDX for 2018-2022. The research sample consisted of 24 companies with a total of 120 observations. The analysis method uses panel data regression. The findings of the study show that partially environmental performance has a significant positive influence on financial performance, while the size of the company does not have a significant effect. Simultaneously, environmental performance and company size significantly influence financial performance with the ability to explain variations in financial performance by 7%. The study concluded that companies with good environmental performance tended to have better financial performance, while company size was not the main factor affecting financial performance. This study advises management to pay attention to environmental factors in financial performance policies and investors to consider environmental performance in investment decisions.

The Effect of Environmental Performance and Agency Cost on Financial Performance

The Effect of Environmental Performance and Agency Cost on Financial Performance

The Quality of CSR Disclosure: Effect of Environmental Performance, Slack Resources, and Sensitivity Classification

This study aims to analyze the influence of slack resources, environmental performance, and industry sensitivity on the quality of Corporate Social Responsibility Disclosure (CSRD) in Energy and Basic Materials sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2017 to 2023. Using a quantitative approach and explanatory research design, data was collected from annual reports, sustainability reports, and PROPER ratings from the Ministry of Environment. The results show that slack resources have a positive and significant effect on the quality of CSRD. Companies with higher slack resources tend to have better quality CSR disclosures. Environmental performance also has a positive effect on CSRD quality, where companies that achieve higher PROPER ratings show better CSR reporting. In addition, industry sensitivity has a positive effect on CSRD quality, which suggests that firms in environmentally sensitive industries tend to provide higher quality CSR disclosures to maintain legitimacy and reputation. Control variables Institutional Ownership and Company Size are not able to control the influence of the relationship between Environmental Performance, Slack Resources and Industry Sensitivity on the quality of Corporate Social Responsibility Disclosure (CSRD). These findings provide empirical evidence on the importance of slack resources, environmental performance, and industry sensitivity in improving the quality of CSRD, and offer valuable insights for corporate management and policy makers.

Understanding interdependency of sustainability dimensions from the lens of collaborative relationship conditions: findings from an emerging economy

PurposeDrawing on the relational view and contingency theories, this study explores supply chain relationship conditions' roles in interrelationships between environmental, social and supply chain performance (SCP), i.e. triple bottom line (TBL).Design/methodology/approachThe data from industries and structural equation modeling (SEM) were used to validate the proposed model. Interviews with industry experts were conducted to further understand the findings.FindingsThe authors find that relationship conditions, such as inventory information sharing, dependency, opportunistic behavior and conflicts, moderate TBL linkages. Interestingly, power asymmetry does not moderate the linkages. Social performance mediates between environmental and SCP. This indirect effect is stronger than the effect of environmental performance on SCP.Originality/valueThis research is perhaps the first to bring a much-needed nuanced view on the importance of relationship conditions for TBL performance linkages. The research further underlines the importance of social performance in an emerging economy.

Evaluation of Impact of ESG Rating and Environmental Performance Factors on the Level of Credit Risk and Shareholder Expectations of Companies in Carbon-Intensive Industries from BRICS Countries

The objective of the study was to evaluate the impact of ESG ratings, environmental (E) pillar scores and environmental performance metrics of non-financial companies from BRICS countries on their credit risks (measured by credit rating) and shareholder expectations (measured by enterprise value (EV) to sales multiple). Environmental performance metrics included emission scores, water efficiency scores, environmental management team scores and the ability to cope with climate risks scores. The relevance of the study is underpinned by the limited number of research in the field for BRICS countries and contradictory conclusions in research about the strength and direction of the influence of ESG factors onthe value and financial metrics of the companies. The ordered logit regression and OLS regression models were applied for credit ratings and EV/Sales multiple respectively. The sample included 206 companies from carbon-intensive industries from Brazil, China, India, South Africa and Russia for 2018-2021. Financial and ESG metrics were taken from Refinitiv while companies' credit ratings were taken from Moody’s and S&P. The results showed that the improvements in ESG and E-scores as well as environmental performance metrics hurt companies’ credit ratings. Conversely, the improvements in ESG, E-scores and environmental performance metrics had a positive impact on EV/Sales metrics. The latter confirms the TGMT (too-much-of-a-good-thing) effect of environmental performance as equity investors expect a positive effect from climate-related actions on equity performance in the long term.

The Effect of Environmental Performance, Eco-Efficiency, and Cash Holding on Firm Value

This study aims to determine whether there is a relationship between the three variables, namely, environmental performance, eco-efficiency, and cash holding on firm value. To analyze the data, the researchers used multiple linear regression with the purposive sampling technique. The data were obtained from the Annual Report and Financial Report of manufacturing companies on subsector consumer non-cyclical listed on the Indonesia Stock Exchange from 2019 to 2021. The results of the study show that the environmental performance, eco-efficiency, and cash holding variables have a significant positive effect on firm value.

The Effect of Environmental Performance, Corporate Social Responsibility, Earnings Per Share, and Return on Assets on Stock Returns on Manufacturing Companies

Every financial information disclosed by a company in the financial statements or annual reports will determine the response of investors in conducting stock investment activities. Public companies tend to require additional funds from external parties such as investors in order to finance their operations. To attract the attention of investors, a company must produce financial performance such as the level of company profitability which can provide significant benefits to investors. In addition, the environmental activities disclosed by the company can also provide input to investors if they want to invest in the company. This study aims to determine how Environmental Performance, Corporate Social Responsibility, Earning Per Share, and Return on Assets have an impact on the level of Stock Return of manufacturing companies listed on the BEI. The results obtained in this study show that the Environmental Performance variable has no effect on Stock Return, Corporate Social Responsibility has a negative effect on Stock Return, and Earning Per Share and Return on Assets have a positive effect on Stock Return. The implication of this research is that investors pay attention to business sustainability, the company must present an Environmental Performance that is more attractive to investors.

The Effect of Environmental Performance, Corporate Social Responsibility, Earnings Per Share, and Return on Assets on Stock Returns on Manufacturing Companies

Every financial information disclosed by a company in the financial statements or annual reports will determine the response of investors in conducting stock investment activities. Public companies tend to require additional funds from external parties such as investors in order to finance their operations. To attract the attention of investors, a company must produce financial performance such as the level of company profitability which can provide significant benefits to investors. In addition, the environmental activities disclosed by the company can also provide input to investors if they want to invest in the company. This study aims to determine how Environmental Performance, Corporate Social Responsibility, Earning Per Share, and Return on Assets have an impact on the level of Stock Return of manufacturing companies listed on the BEI. The results obtained in this study show that the Environmental Performance variable has no effect on Stock Return, Corporate Social Responsibility has a negative effect on Stock Return, and Earning Per Share and Return on Assets have a positive effect on Stock Return. The implication of this research is that investors pay attention to business sustainability, the company must present an Environmental Performance that is more attractive to investors.

The Effect of Environmental Performance, Corporate Social Responsibility, Earnings Per Share, and Return on Assets on Stock Returns on Manufacturing Companies

Every financial information disclosed by a company in the financial statements or annual reports will determine the response of investors in conducting stock investment activities. Public companies tend to require additional funds from external parties such as investors in order to finance their operations. To attract the attention of investors, a company must produce financial performance such as the level of company profitability which can provide significant benefits to investors. In addition, the environmental activities disclosed by the company can also provide input to investors if they want to invest in the company. This study aims to determine how Environmental Performance, Corporate Social Responsibility, Earning Per Share, and Return on Assets have an impact on the level of Stock Return of manufacturing companies listed on the BEI. The results obtained in this study show that the Environmental Performance variable has no effect on Stock Return, Corporate Social Responsibility has a negative effect on Stock Return, and Earning Per Share and Return on Assets have a positive effect on Stock Return. The implication of this research is that investors pay attention to business sustainability, the company must present an Environmental Performance that is more attractive to investors.

The Effect of Environmental Performance and Environmental Disclosure on Return on Asset in Food and Beverage Companies on the Indonesia Stock Exchange in 2019–2021

The Effect of Environmental Performance and Environmental Disclosure on Return on Asset in Food and Beverage Companies on the Indonesia Stock Exchange in 2019–2021

The Effect of Environmental Performance, Political Visibility, Environmental Cost on Corporate Social Responsibility Disclosure

The aim of this research is to analyze and obtain empirical facts regarding Environmental Performance, Political Visibility, and Environmental Costs on Corporate Social Responsibility Disclosure. The population in this study consists of annual reports and financial statements of 18 manufacturing companies in the Textile and Garment Sub-Sector listed on the Indonesia Stock Exchange from 2014 to 2018. The sampling technique used is non-probability sampling in the form of quota sampling. Therefore, the sample in this study consists of 16 companies with a total of 80 observation data. The method used is descriptive and verificative with quantitative data. The analysis techniques used in this study are descriptive analysis, classical assumption tests, panel data regression analysis, coefficient of determination, and hypothesis testing using the Eviews ver.9.0 application program. The results show that Environmental Performance partially has a significant positive effect on Corporate Social Responsibility Disclosure. Political Visibility partially has a significant positive effect on Corporate Social Responsibility Disclosure. Environmental Costs partially have a significant positive effect on Corporate Social Responsibility Disclosure.

Powering profits: how renewable energy boosts financial performance in European non-financial companies

PurposeThe study aims to investigate the relationship between renewable energy use and financial performance in non-financial companies in European countries.Design/methodology/approachThis study examines a panel data set consisting of 1,919 firm-year observations of non-financial companies operating in 13 European nations, covering the period from 2014 to 2021. The study uses the ordinary least squares (OLS) and the two-stage least squares method (2SLS) as the baseline models and further enhances robustness with sub-sample analysis.FindingsThe results demonstrate a positive link between renewable energy use and financial performance, and these results hold up across different measurements, sub-sample analysis and model specifications, demonstrating their robustness. Furthermore, the results indicate that some factors such as the industry nature and environmental, social and governance (ESG) controversies have an impact on this positive association.Practical implicationsThe findings are substantial for both policymakers and companies, highlighting the benefits of incorporating renewable energy into their operations for improved business success.Originality/valueThis study adds to the existing body of literature on the effect of environmental performance on a company’s success by focusing on a novel aspect – the correlation between renewable energy usage and firm performance. It responds to the recent request from researchers to investigate different aspects of sustainability, with a specific emphasis on renewable energy, which is a vital factor in reducing carbon emissions and improving financial performance.

Effect of environmental performance, managerial ownership, and dividend policy on the relative value of a company

Relative value of a company is a method of determining the value of an asset by looking at the price of a comparable asset relative to common variables such as income, book value, or sales. The relative value method allows investors to make an equivalent comparison of the values of similar assets. This study aims to examine the environmental performance, managerial ownership and dividend policy on the relative value of a company. The population of this study is all companies that follow the Corporate Performance Rating Assessment Program (PROPER) and have a positive relative value listed on the Indonesia Stock Exchange (IDX) for the period 2019-2021. The sample determination technique uses a saturated sampling technique with a sample number of 70 companies. In this study, the relative value is measured by combining the value of price to book value (PBV), price to earnings ratio (PER) and price to sales ratio (PSR). Environmental performance is measured using PROPER, managerial ownership is measured using managerial ownership (MOWN) and dividend policy is measured using dividend payout ratio (DPR). The data analysis technique used was multiple linear regression analysis.

The effects of environmental performance and green innovation on corporate venture capital

The aim of this study is to provide investors, policymakers and others with information on how greenhouse gas (GHG) emissions and green innovation affect corporate financial performance. Although reporting by corporate venture capital (CVC) firms on GHG emissions as well as their green innovation has increased significantly, especially in the last two decades, little is known about how these two factors affect financial performance. To fill this gap, this article investigates the relationships between environmental performance, green innovation, and financial performance in CVC investments in the US over an 18-year period between 2002 and 2019. The results show the effects of GHG-emission reduction and green innovation, both separately and combined, on the financial performance of CVC firms. These findings contribute to the ongoing debate on the role of corporations in the efforts to reach net-zero emissions. The results indicate that emission reductions give firms a financial advantage over time and that there is a financial interest for corporate investors to drive green innovation. These results have important implications for research and practice and illustrate the importance for corporate investors of including ecological considerations in their overall business strategies to create competitive advantage.

The effect of environmental performance on sustainability reporting: A case of Indonesia

Sustainability reporting reflects business contribution to sustainable development. Indonesia seeks to engage in sustainable development by assessing the companies using the PROPER scale. The study aims to determine whether environmental performance (assessed by the PROPER scale) affect sustainability reporting of companies in Indonesia. The research population includes companies listed on the Indonesia Stock Exchange that have published annual and sustainability reports within five consecutive years. This study employs WarpPLS to analyze data from 85 observations. The results show an increase in the disclosure of sustainability reports when the audit committee and the board of directors hold regular meetings. Companies without governance committees focus more on improving governance rather than disclosing sustainability reports. Environmental performance, when associated with the type of industry and governance committee, will increase sustainability reporting. However, a company with good environmental performance will make the audit committee and directors focus on other responsibilities because the community already understands that a company with a good PROPER rating properly manages its environmental impact and is aware of the importance of sustainable development. This study concludes that environmental performance measured by the PROPER scale positively affects sustainability reporting considering the type of industry, governance committee, audit committee, and board of directors of companies in Indonesia. The Indonesian government must support, facilitate, and encourage companies to achieve the gold category in the PROPER scale and promote higher disclosure of sustainability reports to contribute to sustainable development.

The Effect of Environmental Performance and Green Accounting on Firm Value

Both large corporations and small and medium-sized businesses frequently ignore environmental problems. However, environmental accounting, known as "Green accounting," has recently gained popularity. The industry and the green movement are coming to terms with the critical idea of sustainable development. Improved natural resources and green accounting will provide essential insights into the environment and business interaction. However, green accounting implementation in organizations purposes for various reasons, including a need for knowledge, ethics education, et cetera. The study samples were collected using purposeful sampling and analyzed using quantitative data. According to the findings of this study, green accounting and environmental performance have a significant impact on firm value.

The Effect of Environmental Performance, Company Characteristics and Media Exposure on Environmental Disclosures (Study of Manufacturing Companies listed on the Indonesia Stock Exchange for the Period 2010-2021)

This study examines the influence of environmental performance, media exposure and company characteristics as represented by profitability, firm size and leverage on environmental disclosure. The population in this study are manufacturing companies listed on the IDX for the 2010-2021 period with the selected research years, namely 2010, 2013, 2016, 2019 and 2021. The data analysis technique used in this research is a quantitative analysis using simple regression analysis using SPSS 26. This study used a sample of 125 manufacturing companies selected using a purposive sampling method. The results of this study explain that environmental performance, firm size and media exposure have a positive and significant effect on environmental disclosure. At the same time, profitability and leverage do not affect environmental disclosure.

Pengaruh Lingkungan Yang Dimoderasi Oleh Ukuran Perusahaan Terhadap Nilai Perusahaan Pada Pandemi Covid-19

The objective of this study was to investigate the relationship between environmental performance and firm value as well as the relationship between environmental disclosure and firm value. The effect of each of these independent variables on the value of the company as well as the study's objective could also be moderated by the company size. There were 62 samples of companies that were listed on the Indonesia Stock Exchange between 2019 and 2021. Data analysis was examined by using multiple linear regression analysis with Moderate Regression Analysis method using SPSS 25 for further details. As a result, disclosure and environmental performance on firm value were significantly positive. Next, firm size as a moderator of firm value strengthens its effect, which was significant positive. Meanwhile, the effect of environmental performance did not moderate firm value.

Mediation effect of environmental performance in the relationship between green supply chain management practices, institutional pressures, and financial performance

Pakistan is an agricultural country that uses a huge number of pesticide chemicals and is confronting environmental and economic issues. Firms need to comprehend the integration of green supply chain management (GSCM) practices in their supply chain. The current study intends to analyze the mediation effect of environmental performance (ENP) in the relationship between GSCM practices, institutional pressures (IP), and financial performance (FNP). Therefore, GSCM-IP-ENP-FNP model was developed with the help of an extensive literature review and then proved with the help of data collected from pesticide chemical firms working in Pakistan. Data were collected through a questionnaire from 500 senior-level managers of the pesticide firms of Pakistan. However, 468 responses were retained for analysis keeping in view the limitations of the current study. SPSS version 22 and SmartPLS 3.0 were used for data analysis. Results of the study indicated strong relationships among all variables. It was also concluded that GSCM practices, IP, and ENP have a positive and statistically significant relationship with a firm’s FNP. This study is an important contribution to theory and practice. The study is unique and has significant contributions because it developed and proved the GSCM-IP-ENP-FNP model. The model helped to prove the mediation effect of ENP in the relationship between GSCM practices, IP, and FNP in the pesticide sector of Pakistan, which would be highly beneficial for the managers of pesticide firms as well as for the government to understand the importance of GSCM practices for improving the ENP as well as the FNP of pesticide firms in Pakistan as well as worldwide, especially in developing countries. This study recommends that the management of firms should implement GSCM practices to protect the environment. Government, consumers, and other institutions should exert pressure and the government should provide subsidies, if necessary, to the firms for successful implementation of GSCM practices. Furthermore, it is recommended to conduct further studies in other countries by using the mixed methodology in the pesticide sector as well as in other sectors of the economy to increase the generalizability of the current study.

Moderating Competitive Advantage On Factors Affecting Economic Performance

The purpose of this study is to determine the effect of environmental performance, corporate image, corporate social performance on economic performance with competitive advantage as a moderating. The population of this study includes all manufacturing company listed on the Indonesia Stock Exchange in the 2014-2018 period. The sampling technique used purposive sampling technique. Based on predetermined criteria obtained 11 companies. The type of data used is secondary data obtained from the Indonesia Stock Exchange website. The analytical method used is panel data logistic regression analysis. The results showed that environmental performance, corporate social performance, competitive advantage proxied by economic performance had a negatif effect, corporate imageproxied by economic performance had no effect. While environmental performance, corporate social performance proxied by economic performance had a positif effect after moderating by competitive advantage, corporate imageproxied by economic performance had no effecteffect after moderating by competitive advantage.