TY - JOUR
T1 - The associations between environmental disclosures with financial performance, environmental performance, and firm value
AU - Deswanto, Refandi Budi
AU - Siregar, Sylvia Veronica Nalurita Purnama
N1 - Publisher Copyright:
© 2018 Emerald Publishing Limited.
PY - 2018
Y1 - 2018
N2 - 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.
AB - 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.
KW - Corporate social responsibility
KW - Environmental disclosure
KW - Environmental performance
KW - Financial performance
KW - Firm value
UR - http://www.scopus.com/inward/record.url?scp=85043237447&partnerID=8YFLogxK
U2 - 10.1108/SRJ-01-2017-0005
DO - 10.1108/SRJ-01-2017-0005
M3 - Article
AN - SCOPUS:85043237447
SN - 1747-1117
VL - 14
SP - 180
EP - 193
JO - Social Responsibility Journal
JF - Social Responsibility Journal
IS - 1
ER -
