Open AccessThe Impact of Sustainable Certification on Financial and Market Performance: Evidence from Indonesian Palm Oil Companies
Author(s) -
Arif Imam Suroso,
Hansen Tandra,
Indra Wahyudi
Publication year - 2021
Publication title -
international journal of sustainable development and planning
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.29
H-Index - 15
eISSN - 1743-761X
pISSN - 1743-7601
DOI - 10.18280/ijsdp.160810
Subject(s) - certification , business , palm oil , indonesian , sustainability , clearing , sustainable development , finance , agricultural economics , natural resource economics , economics , agricultural science , philosophy , environmental science , management , political science , law , biology , ecology , linguistics
The palm oil industry is a strategic sector that plays an important role for national economics. Although the palm oil industry's role and contribution are high, land clearing and operation are often associated with environmental and social issues. The sustainable certification was then developed to ensure that palm oil companies can continue to operate without involving environmental and social deprivation. The previous research related to the impact of a sustainable certification found several positive and negative impacts on palm oil companies' performance in general. Therefore, this study aimed to determine the impact of sustainable certification on Indonesia's palm oil companies' financial and market performance. This research focused on 14 palm oil companies in Indonesia that went public with an observation year between 2014 and 2019. Analysis through panel regression found that sustainable certification has no impact on Indonesia's palm oil companies' financial and market performance. The study could be a recommendation and justification for palm oil companies for consider to take a sustainable certification.