The Effect of Environmental Performance and Company Size on The Company's Financial Performance

  • Kamelia Wardatul Azdra Program Studi Akuntansi, Universitas Jenderal Achmad Yani, 40513, Indonesia
  • Ifan Wicaksana Siregar Program Studi Akuntansi, Universitas Jenderal Achmad Yani, 40513, Indonesia
  • Vicky Dzaky Cahaya Program Studi Akuntansi, Universitas Jenderal Achmad Yani, 40513, Indonesia
Abstract views: 293
PDF downloads: 311
DOI: https://doi.org/10.26874/portofolio.v20i1.280
Keywords: company size, environmental performance, financial performance

Abstract

Abstract

The objective of this study is to investigate how Financial Performance is impacted by Environmental Performance and Company Size. The study employs PROPER to measure environmental performance and the natural logarithm of total assets to measure company size as the independent variables. The population under consideration comprises Chemical and Pharmaceutical Sub-Sector Manufacturing Companies listed on the Indonesia Stock Exchange (IDX) during the period of observation from 2016 to 2020, totaling five years. This research used purposive sampling method to select a sample of eight companies per year, resulting in 39 samples for the study, including one outlier. The findings of the study indicate that environmental performance has a positive and significant impact on financial performance. However, company size does not significantly affect financial performance.

Abstrak

Tujuan dari penelitian ini adalah untuk menyelidiki bagaimana Kinerja Keuangan dipengaruhi oleh Kinerja Lingkungan dan Ukuran Perusahaan. Studi ini menggunakan PROPER untuk mengukur kinerja lingkungan dan logaritma natural dari total aset untuk mengukur ukuran perusahaan sebagai variabel independen. Populasi yang diteliti adalah Perusahaan Manufaktur Subsektor Kimia dan Farmasi yang terdaftar di Bursa Efek Indonesia (BEI) selama periode pengamatan tahun 2016 sampai dengan tahun 2020 sebanyak lima tahun. Penelitian ini menggunakan metode purposive sampling untuk memilih sampel delapan perusahaan per tahun, menghasilkan 39 sampel penelitian, termasuk satu outlier. Temuan penelitian menunjukkan bahwa kinerja lingkungan berpengaruh positif dan signifikan terhadap kinerja keuangan. Namun ukuran perusahaan tidak berpengaruh signifikan terhadap kinerja keuangan.

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Published
2023-05-31
How to Cite
Azdra, K., Siregar, I., & Cahaya, V. (2023). The Effect of Environmental Performance and Company Size on The Company’s Financial Performance. Portofolio: Jurnal Ekonomi, Bisnis, Manajemen, Dan Akuntansi, 20(1), 28 - 41. https://doi.org/10.26874/portofolio.v20i1.280
Issue
Vol 20 No 1 (2023): Portofolio: Jurnal Ekonomi, Bisnis, Manajemen dan Akuntansi
Section
Articles

Copyright (c) 2023 Vicky Dzaky Cahaya

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