Corporate Value: Are Investors Evaluating Environmental Performance and Eco-Efficiency Alongside Profitability?
Universitas Gunadarma
Indonesia
Universitas Gunadarma
Indonesia
Universitas Gunadarma
Indonesia
Abstract
Corporate value refers to the evaluation investors place on a company's success and performance, which is reflected in its stock market price. This study seeks to analyze the impact of Environmental Performance, Profitability, and Eco-Efficiency on Corporate Value. The independent variables include environmental performance, measured by adherence to standards, profitability assessed through return on assets, and eco-efficiency represented by ISO-14001 certifications. The research utilizes secondary data from the annual financial statements of mining companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2021. A purposive sampling technique was employed based on specific criteria, resulting in a sample of 10 companies. Data analysis was conducted using multiple linear regression analysis with SPSS version 25. The findings indicate that Environmental Performance and Eco-Efficiency do not significantly affect Corporate Value, whereas profitability does have an impact.
Keywords
References
Astuti, T., Amyulianthy, R., & Kaniat, R. (2022). Green Accounting, Financial Performance toward Corporate Value. Asian Journal of Accounting and Finance, 4(1), 1-12.
Aviyanti, S. C., & Isbanah, Y. (2019). The Effect of Eco-Efficiency, Corporate Social Responsibility, Ownership Concentration, and Cash Holding on the Value of Consumer Goods Sector Companies in Bei for the 2011-2016 Period. Journal of Management Science, 7(1).
Budiman, R. (2021). Secrets of Fundamental Stock Analysis Revised Edition. Jakarta: PT Elex Media Komputindo.
Cao, Raymund. (2021). Report Code Red - Asia Pacific Time To Go Green. PWC Dewi, L. S., & Abundanti, N. (2019). The Effect of Profitability, Liquidity, Institutional
Ownership and Managerial Ownership on Corporate Value. E-Journal of Management,
(10), 6099-6118.
Dewi, P. P., & Narayana, I. P. E. (2020). Implementation of Green Accounting, Profitability and Corporate Social Responsibility on Corporate Value. E-Journal of Accounting, 30(12), 3252-3262.
Damas, D., Maghviroh, R. E., Indreswari, M. (2021). The Effect of Eco-Efficiency, Green Innovation and Carbon Emission Disclosure on Corporate Value with Environmental Performance as Moderation. Journal of Master of Accounting Trisakti, 8 (2), 85- 108.
Erlangga, C. M., Fauzi, A., & Sumiati, A. (2021). Implementation of Green Accounting and Corporate Social Responsibility Disclosure on Corporate Value through Profitability. Accountability: Journal of Accounting Science, 14(1), 61- 78.
Environment Indonesia Center. (2016). Getting to know ISO 14001. https://environment- indonesia.com/articles/
Haack, P., & Rasche, A. (2021). The Legitimacy of Sustainability Standards: A Paradox Perspective. Organization Theory, 2(4), 1-25.
Hadi, N. (2018). Corporate Social Responsibility. 2nd edition. Yogyakarta: Expert.
Hansen, D. R., & Mowen, M. M. (2013). Managerial Accounting. Jakarta: Fourth Edition.
Hidayat, I., & Khotimah, K. (2022). The Effect of Profitability and Corporate Size on the Value of Chemical Sub-Sector Companies Listed on the Stock Exchange for the 2018-2020 Period. Scientific Journal of Unitary Accounting, 10(1), 1-8.
Hummel, K., & Schlick, C. (2016). The relationship between sustainability performance and sustainability disclosure - Reconciling voluntary disclosure theory and legitimacy theory. Journal of Accounting and Public Policy, 35(5), 455-476.
Indrarini, S. (2019). Corporate Value Through Earnings Quality (Good Corporate & Corporate Policy). Surabaya: Scopindo Media Pustaka.
Cashmere. (2019). Financial Statement Analysis. First Edition. Twelfth Edition. Jakarta: PT Raja Grafindo Persada.
Labibah, N. K. N. (2022). The effect of corporate social responsibility (csr) on corporate value with corporate governance as a mediating variable. Fair Value: Scientific Journal of Accounting and Finance, 4(11).
Lako, A. (2018). Green Accounting: Issues, Theories, and Applications. Jakarta: Salemba Empat.
Luo, L. (2019). The influence of institutional contexts on the relationship between voluntary carbon disclosure and carbon emission performance. Accounting & Finance, 59(2), 1235-1264.
Melawati, H. G., Rahmawati, M. I. (2022). The Effect of Green Accounting and CSR Disclosure on Corporate Value: Profitability as a Mediating Variable. Journal of Accounting Science and Research, 11(6).
Muchtar, E. H. (2021). Corporate Governance: Concepts and Implementation in Sharia Stock Issuers. Indramayu: CV Adanu Abimata.
Muhari, Abdul. (2022). BNPB Verifies 5,402 Disaster Events throughout 2021. National Disaster Management Agency. https://bnpb.go.id/berita/bnpb-verifikasi-5-402- kejadian-bencana- throughout-year-2021
Nugroho, W. C. (2023). The Mediating Effect of Profitability on the Effect of Green Accounting on Corporate Value. E-Journal of Accounting, 33(3), 648- 663.
Panggau, N. D., & Septiani, A. (2017). The Effect of Eco-Efficiency on Corporate Value with Leverage and Profitability as Moderating Variables. Diponegoro Journal of Accounting, 6(4), 1-8.
Corporate Performance Rating Assessment Program (PROPER). (2019). PROPER Criteria. Ministry of Environment and Forestry. https://proper.menlhk.go.id/proper/kriteria.
Putri, A. Y. (2019). The Effect of Eco-Efficiency on Corporate Value with Funding Structure as a Moderating Variable. Thesis. Surabaya: Faculty of Economics and Business, Airlangga University
PWC (2023). The GRI Standards 2021 alignment strategy with IFRS Sustainability Disclosure Standards S1 and S2. Price Waterhouse Cooper.
Ramdhonah, Z., Solikin, I., & Sari M. (2019). The Effect of Capital Structure, Corporate Size, Corporate Growth, and Profitability on Corporate Value (Empirical Study of Mining Sector Companies Listed on the Indonesia Stock Exchange in 2011-2017). Journal of Accounting and Finance Research, 7(1), 67-82.
Republic of Indonesia. (2013). Regulation of the Minister of Environment of the Republic of Indonesia Number 06 of 2013 concerning the Corporate Performance Rating Assessment Program in Environmental Management.
Ristiyana, R., et al. (2020). Financial Statement Analysis: Assessment of Corporate Performance with a Financial Ratio Approach. Bandung: CV. Media Sains Indonesia.
Salsabila, A., & Widiatmoko, J. (2022). The Effect of Green Accounting on Corporate Value with Financial Performance as a Mediating Variable in Manufacturing Companies Listed on the IDX in 2018-2021. Mirai Management Journal, 7(1), 410-424.
Sugiyono. (2021). Educational Research Methodology. Bandung: CV Alfabeta.
Sumani, Fadah, I., & Roziq, A. (2021). Good Corporate Governance: Capital Structure and Financial Performance. Bantul: Samudra Biru.
Valencia, G., & Sri, D. (2022). The Effect of Eco-Efficiency on Corporate Value with the Independent Board of Commissioners as a Moderating Variable in Manufacturing Companies Listed on Bei in 2017-2019. Journal of Accounting Information, 1(2).
WALHI. (2021). Environmental Conditions in Indonesia Amid Global Warming Issues. available at https://www.walhi.or.id/
Worldbank Group. (2021). State of Global Climate 2021 WMO Provisional Report. World Meteorological Organization.
Yuliani, E., & Prijanto, B. (2022). The effect of implementing green accounting on corporate value with profitability as a moderating variable in coal mining sub-sector companies listed on the Indonesia Stock Exchange for the 2019-2021 period. Fair Value: Scientific Journal of Accounting and Finance, 5(5), 2275-2284.
Zulfikar, R., Mayvita, P. A., & Purboyo. (2019). Introduction to Green Economy. Yogyakarta: Deepublish Publisher.