THE INFLUENCE OF ENVIRONMENTAL COSTS, ENVIRONMENTAL PERFORMANCE AND FIRM SIZE ON FINANCIAL PERFORMANCE WITH ENVIRONMENTAL DISCLOSURES AS AN INTERVENING VARIABLE
DOI:
https://doi.org/10.36085/jamekis.v8i2.7895Abstrak
This study aims to prove and analyze the Effect of Environmental Costs, Environmental Performance, and Company Size on Financial Performance with Environmental Disclosure as an Intervening Variable. Testing is carried out by looking at direct and indirect influences. The use of samples in this study was obtained by purposive sampling method in mining sector companies listed on the Indonesia Stock Exchange in 2019-2023, obtained a PROPER rating in 2019-2023, and made environmental disclosures in the GRI G-4 format. The testing and analysis techniques used are panel data and Sobel test with the help of SPSS 25 test tools.
The direct test results produce evidence that environmental performance and company size directly affect financial performance, environmental performance affects environmental disclosure, while environmental costs and environmental disclosure do not affect financial performance, environmental costs and company size do not affect environmental disclosure. The indirect test results produce evidence that environmental disclosure mediates environmental costs, environmental performance and company size on financial performance.
The results of this study indicate several implications, including, for companies, they should start to manage the environment well, for example by carrying out environmental performance such as waste and waste management and disclosing environmental performance results as widely as possible in the annual report. This is able to provide important information for stakeholders and the community as additional references in decision making. The results of this study support the theory of legitimacy and stakeholders.
Keywords: Company Size, Environmental Costs, Environmental Disclosure, Environmental Performance, Financial Performance.
Referensi
Adyaksana, RI, & Pronosokodewo, BG (2020). Do Environmental Performance and Environmental Costs Affect Environmental Information Disclosure. InFestation: Journal of Business and InFestation (2020), 16 (2), 157–165. https://doi.org/https://doi.org/10.21107
Al-Mawali, H. (2021). Environmental cost accounting and financial performance: The mediating role of environmental performance. Accounting Growing Science, Canada , 7 (3), 535–544. https://doi.org/10.5267/j.ac.2021.1.005
Amani, A., Nurleli, & Lestari, R. (2020). The effect of environmental performance and environmental costs on the financial performance of state-owned companies in 2015-2018. Accounting Proceedings, 6 (1), 266–269.
Artamelia, FN, Surbakti, LP, & Julianto, W. (2021). The Effect of Environmental Performance on Environmental Disclosure and Environmental Disclosure on Company Value. Business Management, Economic, and Accounting National Seminar, 2 (2), 870–884.
Aswir, & Misbah, H. (2018). The Influence of Environmental Performance, Environmental Costs, and Company Size on Financial Performance with Corporate Social Responsibility as an Intervening Variable (Empirical Study on Manufacturing Companies Listed on the Indonesia Stock Exchange in 2014-. In Photosynthetica (Vol. 2, Issue 1). https://doi.org/http://dx.doi.org/10.1038
Baron, R. M., & Kenny, D. A. (1986). The Moderator-Mediator Variable Distinction in Social Psychology. Research: Conceptual, Strategic, And Statistical Considerations. Journal of Personality and Social Psychology , 51 (6), 1173–1182.
Braam, G. J. M., Uit De Weerd, L., Hauck, M., & Huijbregts, M. A. J. (2016). Determinants of corporate environmental reporting: The importance of environmental performance and assurance. Journal of Cleaner Production , 129 (2), 724–734. https://doi.org/10.1016/j.jclepro.2016.03.039
Burgwal, D., & Vieira, R. J. O. (2014). Environmental disclosure determinants in Dutch listed companies. Revista Contabilidade & Finanças - USP , 25 (64), 60–78.
Burhany, DI, & Suwondo, S. (2020). Environmental Cost Analysis to Determine the Effectiveness and Efficiency of Environmental Activity Control. Proceedings 4: Journal of Administrative Sciences, Accounting, Business, Management, and Humanities, Bandung State Polytechnic , 317–322.
Catrina, M., Fitriah, E., & Nurleli. (2021). The Effect of Environmental Performance and Foreign Ownership on Corporate Financial Performance in Mining Companies Listed on the Indonesia Stock Exchange for the Period 2015-2019. Accounting Proceedings: Bandung Islamic University, 168–171. https://doi.org/http://dx.doi.org/10.29313/.v7i1.25636.
Ciriyani, NK, & Putra, IMPD (2016). The effect of company size, profitability, and company age on environmental information disclosure. E-Journal of Accounting, Udayana University , 17 (3), 2091–2119.
Damanik, IGAB, & Yadnyana, IK (2017). The Influence of Environmental Performance on Financial Performance with Corporate Social Responsibility Disclosure as an Intervening Variable. E-Journal of Accounting, Udayana University , 20 (1), 645.
Daromes, FE, & Kawilarang, MF (2020). The Role of Environmental Disclosure in Mediating the Effect of Environmental Performance on Company Value. Journal of Accounting, FEB, Atma Jaya University, Makassar, 14 (1), 77–101. https://doi.org/https://doi.org/10.25170/jara.v14i1
Dewata, E., Jauhari, H., Sari, Y., & Jumarni, E. (2018). The Effect of Environmental Costs, Foreign Ownership and Political Costs on the Performance of Mining Companies in Indonesia. AKSI Journal (Accounting and Information Systems) , 3 (2), 122–132. https://doi.org/10.32486/aksi.v2i2.271.
Elkington, J. (1998). Partnership from Cannibals with Forks: The Triple Bottom Line 0f 21st-Century Business. Environmental Quality Management, 8 (1), 37–51. https://doi.org/https://doi.org/10.1002/tqem.3310080106.
Ethika, E., Azwari, M., & Muslim, RY (2019). Analysis of the Influence of Environmental Accounting Disclosure and Environmental Performance on Company Value (Empirical Study on LQ-45 Index Companies Listed on the IDX). Journal of Accounting and Auditing Studies, 14 (2), 122–133. https://doi.org/10.37301/jkaa.v14i2.15
Evita, M., & Syafruddin, S. (2019). The Influence of Environmental Costs, Environmental Performance, and ISO 14001 on the Financial Performance of Mining Companies Case Study on the Indonesia Stock Exchange 2014-2017. Measurement: Accounting Journal, 13 (1), 27. https://doi.org/10.33373/mja.v13i1.1829
Fajaryani, NLGS, & Suryani, E. (2018). Capital Structure, Liquidity, and Company Size on Company Financial Performance. Journal of Contemporary Accounting Research , 10 (2), 74–79. https://doi.org/10.23969/jrak.v10i2.
Fashikhah, I., Rahmawati, E., & Sofyani, H. (2018). Determinants of Environmental Disclosures of Manufacturing Companies in Indonesia and Malaysia. Indonesian Accounting Journal , 7 (1), 31. https://doi.org/10.30659/jai.7.1.31-55.
Fitriani, A. (2013). The Influence of Environmental Performance and Environmental Costs on Financial Performance in BUMN. Journal of Management Science, Faculty of Economics, Surabaya State University , 1 (1), 137–148.
Gerged, A. M., Beddewela, E., & Cowton, C. J. (2021). Is corporate environmental disclosure associated with firm value? A multicountry study of Gulf Cooperation Council firms. Business Strategy and the Environment, 30 (1), 185–203. https://doi.org/10.1002/bse.2616.
Habib Siregar, F., Syahyunan, & Miraza, Z. (2022). On Financial Performance With Corporate Social Responsibility As An Intervening Variable. Sinergi Cendikia. Journal of Economics, Management, Accounting, Digital Business and Entrepreneurship , 1 (2), 187–205.
Haholongan, R. (2016). Environmental Performance and Economic Performance of Public Manufacturing Companies. Journal of Economics and Business, 19 (3), 413. https://doi.org/10.24914/jeb.v19i3.477.
Hansen, DR, & Mowen, MM (2013). Managerial Accounting: Akuntansi Manajemenial (Third Printing).
Hasti, WW, Maryani, M., & Makshun, A. (2022). The Effect of Leverage, Capital Structure, and Company Size on Financial Performance in Mining Sector Companies. Journal of Accounting, Management, and Business Review (RAMBIS), 2 (2), 139–150. https://doi.org/10.35912/rambis.v2i2.1544.
Heriyani, Nur DP, E., & Silfi, A. (2019). Analysis of Triple Bottom Line Disclosure and Influencing Factors: A Study in Indonesian and Singaporean Companies. Journal of Accounting: Media for Accounting & Finance Research, FEB, University of Riau, 8 (1), 67–79. https://ja.ejournal.unri.ac.id/index.php/JA/article/view/7864
Hu, H., Chang, C. P., Dong, M., Meng, W. N., & Hao, Y. (2018). Does Environmental Information Disclosure Affect the Performance of Energy? Evidence from China. Energy and Environment, 29 (5), 685–705. https://doi.org/10.1177/0958305X18757766.
Huang, J. W., & Li, Y. H. (2017). Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity. Journal of Business Ethics , 145 (2), 309–324. https://doi.org/10.1007/s10551-015-2903-y.
Jaya, H. (2015). Analysis of the Application of Environmental Cost Accounting to the Profit of PT. IMECO Batam Tubular Company. Journal of Chemical Information and Modeling , 9 (1), 59–77.
Jekwam, JJ, & Hermuningsih, S. (2018). The Role of Company Size (Size) in Moderating Corporate Social Responsibility and Liquidity on Financial Performance in Mining Companies Listed on the IDX. Upajiwa Dewantara Journal of Sarjanawiyata Tamansiswa University , 2 (1), 76–85. https://doi.org/10.26460/mmud.v2i1.3071.
Julianto, M., & Sjarief, J. (2016). Analysis of the Influence of Environmental Performance, Earnings Management, Company Size, and Profitability on Environmental Disclosure in Manufacturing Companies Listed on the Indonesia Stock Exchange. Journal of Accounting, 9 (2), 147–171. https://doi.org/10.25170/jara.v9i2.33.
Karmawan, Bahri, A., & Gulo, DG (2020). Implementation of Environmental Accounting at PT Timah TBK. Conference on Economic and Business Innovation.
Khamisah, N., Nani, DA, & Ashsifa, I. (2020). The Effect of Non Performing Loan (NPL), BOPO and Company Size on Return On Assets (ROA) of Banking Companies Listed on the Indonesia Stock Exchange (IDX). TECHNOBIZ: International Journal of Business , 3 (2), 18. https://doi.org/10.33365/tb.v3i2.836.
Kinarsih, S., Mas'ud, M., Abduh, M., & Pramukti, A. (2022). The Effect of Environmental Performance, Environmental Costs and Corporate Social Responsibility Disclosure on Financial Performance. Center of Economic Student Journal , 3 (2), 101–109. https://doi.org/https://doi.org/10.56750/csej.v5i3.542
Kurniawati, H., Rasyid, R., & Setiawan, FA (2020). The Influence of Intellectual Capital and Company Size on Company Financial Performance. Journal of Economics and Business Sciences , 4 (1), 64. https://doi.org/10.24912/jmieb.v4i1.7497
Kusumaningtias, R. (2013). Green Accounting, Why and How? Accounting and Finance.
Lu, L. W., & Taylor, M. E. (2018). A Study Of The Relationships Among Environmental Performance, Environmental Disclosure, And Financial Performance. Asian Review of Accounting, 26 (1), 107–130. https://doi.org/10.1108/ARA-01-2016-0010
Maryanti, E., & Fithri, WN (2017). Corporate Social Responsibility, Good Corporate Governance, Environmental Performance on Financial Performance and Its Influence on Company Value. Journal of Accounting Science, 1 (1), 21–37. https://doi.org/10.21070/jas.v1i1.773
Meiyana, A., & Aisyah, MN (2019). The Influence of Environmental Performance, Environmental Costs, and Company Size on Financial Performance with Corporate Social Responsibility as an Intervening Variable. Nominal: Barometer of Accounting and Management Research, 8 (1), 1–18. https://doi.org/10.21831/nominal.v8i1.24495
Mumtazah, F., & Purwanto, A. (2020). Analysis of the Influence of Financial Performance and Environmental Disclosure on Company Value. Diponegoro Journal of Accounting , 9 (2), 2337–2806. http://ejournal-s1.undip.ac.id/index.php.
Notalin, E., Afrianty, N., & Asnaini, A. (2021). Dampak Covid-19 terhadap tingkat efisiensi kinerja keuangan bank umum syariah di Indonesia menggunakan pendekatan Data Envelopment Analysis (DEA). Jurnal Ilmiah Akuntansi, Manajemen Dan Ekonomi Islam (JAM-EKIS), 4(1), 169-178.
Oraka, A. (2021). Environmental Costs and Financial Performance of Oil and Gas Companies in Nigeria. Research Journal of Management Practice: Ijaar Publishing, 1 (5), 1–18. https://doi.org/10.46654/rjmp.1514.
Putra, YP (2018). The Influence of Environmental Performance on Financial Performance with Corporate Social Responsibility (CSR) Disclosure as an Intervening Variable. BALANCE Journal of Accounting and Business, 2 (2), 227. https://doi.org/10.32502/jab.v2i2.1175.
Putri, SA, & Herawati, SD (2017). The Influence of Environmental Performance on Financial Performance (Empirical Study on Manufacturing Companies Listed on the Indonesia Stock Exchange in 2015). SNAB Journal: National Accounting and Business Standards, 2 (2), 218–228.
Saputra, MFM (2020). The Effect of Environmental Performance and Environmental Costs on Financial Performance with Environmental Disclosure as an Intervening Variable. Tirtayasa Accounting Research Journal, 5 (02), 123–138.
Sari, W. (2021). Financial Performance (NU Rahmi (ed.); 1st ed.). Medan: Unpri Press.
Setiadi, I. (2021). The Effect of Environmental Performance, Environmental Costs and Company Size on Financial Performance. Journal of Financial Economics and Management, 17 (4), 669–679.
Setyaningsih, RD, & Asyik, NF (2016). The Influence of Environmental Performance on Financial Performance with Corporate Social Responsibility as a Moderator. Journal of Accounting Science and Research, 5 (4), 1–15.
Sugiyono. (2019). Quantitative, Qualitative and R&D Research Methods.
Suyudi, M., Permana, D., & Suganda, D. (2020). Implementation of Environmental Accounting as a Form of Corporate Accountability to the Environment. Accounting, Auditing, and Finance Articles Vocational: Samarinda State Polytechnic., 4 (2), 188–216.
Tahu, GP (2019). The Influence of Environmental Performance and Environmental Disclosure on Financial Performance (Study on Manufacturing Companies Listed on the IDX). JASa (Journal of Accounting, Auditing and Accounting Information Systems), 3 (1), 14–26. http://journal.unla.ac.id/index.php/jasa/article/532.
Tunggal, WSP, & Fachrurrozie. (2014). The Influence of Environmental Performance, Environmental Cost and CSR Disclosure on Financial Performance. Accounting Analysis Journal, 3 (3), 310–320.
Widiastuti, H., Utami, E.R., & Handoko, R. (2018). The Effect of Company Size, Industry Type, Growth, and Media Exposure on Corporate Social Responsibility Disclosure (Empirical Study on Companies Listed on the Indonesia Stock Exchange in 2014-2015). Indonesian Accounting and Finance Research, 3 (2), 107–117. https://doi.org/10.23917/reaksi.v3i2.6745
Yovana, DG, & Kadir, A. (2020). The Influence of Company Size, Company Growth, Profitability and Leverage on Corporate Social Responsibility (CSR) Disclosure. Juma: Journal of Management and Accounting, 21 (1), 15–24.
Zainab, A., & Burhany, DI (2020). Environmental Cost, Environmental Performance, and Financial Performance in Manufacturing Companies. IRWNS Journal: Industrial Research Workshop and National Seminar, 26–27.
