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ISSN: 2344 - 102X

ISSN-L: 2344 - 102X


Article from Volume 9, Number 3, Year 2021

Author(s): Zirman Zirman, Vera Oktari, Mayla Khoiriyah
DOI: 104316/EJAFB.2021.937
Abstract: This study was conducted to examine the effect of environmental disclosure in mediating financial performance and environmental performance on firm value. The research plan will be completed on primary and secondary industries listed on the Indonesia Stock Exchange (IDX) using data from the last 5 (five) years. The analysis results show that environmental performance and financial performance have a significant effect on firm value, the environmental performance has a significant effect on environmental disclosure. Meanwhile, environmental exposure and environmental performance have no significant impact on firm value. Environmental performance and financial performance do not mediate environmental exposure through firm value. This statement shows that good economic performance does not encourage companies to make good environmental disclosures because the company's primary focus is financial performance. In addition, environmental disclosure is still voluntary, so there is no obligation for companies to make extensive disclosures regarding their environmental performance. The research results are expected to be an additional reference for academics and researchers regarding the importance of environmental disclosure by companies to improve company performance and value, as well as a further concern for capital market supervisors and regulators regarding company management.
Keywords: Company Value; Financial Performance; Environmental Performance; Environmental Disclosure
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