Open AccessDoes Financial Performance Drive Environmental Disclosure and Environmental Cost? Evidence from Indonesia
Author(s) -
Rima Kusuma Rini,
Desi Adhariani
Publication year - 2021
Publication title -
jurnal ilmiah akuntansi dan bisnis/jurnal ilmiah akuntansi dan bisnis
Language(s) - English
Resource type - Journals
eISSN - 2303-1018
pISSN - 2302-514X
DOI - 10.24843/jiab.2021.v16.i02.p09
Subject(s) - ordinary least squares , business , stock exchange , accounting , environmental reporting , finance , economics , econometrics
This study examines whether financial performance affects environmental disclosures and environmental costs. Samples from mining and energy companies that are listed on the Indonesia Stock Exchange from 2015 to 2019 were analyzed using the content analysis method and ordinary least square regression. This study finds that financial performance bears a positive relationship to environmental costs that indicates whether assets are efficiently used as a basis to engage in spending on environmental activities. There is a negative relationship between financial performance and environmental disclosure and a positive relationship between environmental cost and environmental disclosures. This study implies wider stakeholder understanding of how financial performance affects environmental cost and disclosure. The study implies a role of the cost element in the relationship between financial performance and environmental disclosure.