Environmental Performance: In Efforts to Improve Financial Performance and Firm Value
Triwahyuni (a*)- Azizul Kholis (b)-Indra Maipita (c)- Frans Kristanto (d)

(a*) Magister Akuntansi, Universitas Negeri Medan, Medan, Indonesia, triwahyuni2307[at]gmail.com
(b)Magister Akuntansi, Universitas Negeri Medan, Medan, Indonesia
(c)Magister Akuntansi, Universitas Negeri Medan, Medan, Indonesia
(d) Master of Business Administration, University Diponegoro, Semarang, Indonesia

Abstract

This study aims to examine the effect of environmental performance on firm value with financial performance as an intervening variable. Environmental performance is proxied to Public Disclosure Program for Environmental Compliance (PROPER), Financial Performance is proxied to Return on Equity (ROE), Firm value is proxied to Tobins-q Value. The sample in this study amounted to 16 companies listed on the Indonesia Stock Exchange from 2013-2020. This research uses Path Analysis with Logistic Regression. The results of the study show that environmental performance has a significant influence on firm value. Financial Performance is able to mediate the effect of Environmental Performance on Firm Value.

Keywords: Environmental Performance, Firm Value, Financial Perfromance

Topic: Economics, Business and Management Education