How Does Environmental Disclosure and Environmental Certification Affect Indonesia State-Owned Company Performance?

DOI

10.2991/978-94-6463-522-5_9How to use a DOI?

Keywords

Environmental disclosure; Environmental certification; Financial performance; State-owned companies; ROA (Return on Assets)

Abstract

Companies today are not only focused on increasing profits but also must pay attention to environmental aspects when carrying out their activities, especially for state-owned companies in Indonesia that represent government-owned businesses. The purpose of this study is to analyze the effect of environmental disclosure and environmental certification on financial performance. The population in this study were state-owned companies listed on the IDX in 2018-2022. The sample selection technique uses purposive sampling and obtains 93 observation samples through unbalanced pooled data. This study has done a robustness check through different financial performance indicators with ROA and ROE. The result shows robust results that environmental certification negatively affects both ROA and ROE, while environmental disclosure does not affect ROA and ROE. It shows that companies with environmental certification have decreased their net profit performance from managing assets and capital from investors. The result has implications for state-owned companies in Indonesia, which should be more concerned about ecological effects and risks due to their business activities. State-owned companies are expected to be pioneer in making companies more aware of environmental trends because most of their capital is from the government.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - A. K. Widiatami
AU  - P. Suranti
AU  - L. Latifah
AU  - I N. Aeni
AU  - A. Nurkhin
PY  - 2024
DA  - 2024/10/04
TI  - How Does Environmental Disclosure and Environmental Certification Affect Indonesia State-Owned Company Performance?
BT  - Proceedings of the International conference of Economics Business and Economics Education Science (ICE-BEES-24)
PB  - Atlantis Press
SP  - 115
EP  - 122
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-522-5_9
DO  - 10.2991/978-94-6463-522-5_9
ID  - Widiatami2024
ER  -