The associations between environmental disclosures with financial performance, environmental performance, and firm value

Research output: Contribution to journalArticlepeer-review

24 Citations (Scopus)

Abstract

Purpose - This study aims to investigate both the direct and indirect associations of environmental disclosures with financial performance, environmental performance and firmvalue. Design/methodology/approach - The samples are companies listed on the Indonesia Stock Exchange in the agriculture industry, mining industry, basic industry and chemicals, miscellaneous industry and consumer goods industry and that are participating in the Performance Rating Assessment Program on Environment Management (PROPER/Program Penilaian Peringkat Kinerja Perusahaan) of the Ministry of the Environment Republic of Indonesia or have been awarded the Green Industry Award by the Ministry of Industry Republic of Indonesia in 2012-2014. Data are collected from sustainability reports, annual reports and annual financial statements. The authors used simultaneous equation modeling and panel data regression analysis to analyze the data. Findings - The authors find that the financial performance does not affect the environmental disclosures. The lagged environmental performance has a positive effect on the current environmental disclosures, and environmental disclosures do not affect the firm market value and do not mediate the effect of financial performance and environmental performance on firmvalue. Originality/value - This study comprehensively examines both direct and indirect associations of environmental disclosures with financial performance, environmental performance and firm value, which is rarely examined in extant studies.

Original languageEnglish
Pages (from-to)180-193
Number of pages14
JournalSocial Responsibility Journal
Volume14
Issue number1
DOIs
Publication statusPublished - 1 Jan 2018

Keywords

  • Corporate social responsibility
  • Environmental disclosure
  • Environmental performance
  • Financial performance
  • Firm value

Fingerprint Dive into the research topics of 'The associations between environmental disclosures with financial performance, environmental performance, and firm value'. Together they form a unique fingerprint.

Cite this