THE EFFECT OF ENVIRONMENTAL PERFORMANCE, ENVIRONMENTAL COSTS, PUBLIC SHAREHOLDING, GREEN ACCOUNTING, CAPITAL STRUCTURE, AND COMPANY SIZE ON FINANCIAL PERFORMANCE
Windhy Puspitasari1*, Risa Nurmala Dewi2, R. Ajeng Entaresmen3, Mohamad Ezrien Bin Mohamad Kamal4, Rima Sekar Ayu Cahyani5

1,2,5Accounting Department, Faculty of Economics and Business, Universitas Trisakti, Jakarta, Indonesia, 11440
3Program Diploma III Islamic Finance and Banking, Faculty of Economics and Business, Universitas Trisakti, Jakarta, Indonesia, 11440
4Faculty of Accountancy, Universiti Teknologi MARA Cawangan Selangor, Kampus Puncak Alam, Selangor, Malaysia, 42300

*Corresponding Authors Email: windhy.puspitasari[at]trisakti.ac.id

Abstract

The aim of this research is to examine the influence of Environmental Performance, Environmental Costs, Public Share Ownership, Green Accounting, Capital Structure and Firm Size on Financial Performance. This study utilises purposive sampling method to select 257 total samples of companies listed on the Indonesia Stock Exchange (IDX), that registered in Public Disclosure Program for Environmental Compliance (PROPER), from 3 categories (1.Basic Industry and Chemical, 2.Various Industries, 3.Consumer Goods Industries) for 2017-2021 period. Data collected was examined using panel data regression analysis technique. The results revealed only Environmental Performance and Public Share Ownership showed significant positive effect on Financial Performance, while Environmental Costs, Green Accounting, Capital Structure and Firm Size were not significant. The findings supported prevailing expectations that good environmental performance by company^s management may lead to increasing financial returns due to positive reputation it potrays. This study has limitation as it only reflects findings of public listed companies registered in PROPER. While other non-registrant may have embarked on environmental initiatives, such were difficult to verified unless disclosure is made. Future research may consider other variable (Risk Management) in assessing influence on financial performance and extended to include other countries within the region for comparison in findings.

Keywords: Environmental Performance- Environmental Cost- Public Share Ownership- Green Accounting- Capital Structure- Firm Size- Financial Performance

Topic: Economics