A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
The Effect Of Environmental Performance On Firm Value Using Financial Performance As Mediator Variable
Purpose: This study aims to examine the effect of environmental performance on firm value directly or indirectly by employing financial performance as a mediator variable. Design/methodology/approach: This research employs quantitative research. The population of the research is all non-financial companies on the Indonesia Stock Exchange (IDX) in the 2014-2019 period with a sample of 282 firm-years. The employed data analysis technique is Warp PLS 6.0 carried out in the two testing stages; the testing of the direct and the indirect effects of environmental performance variable on firm value. Findings: Environmental performance has a significant positive effect on firm value; environmental performance has no effect on financial performance; financial performance has a significant positive effect on firm value; and financial performance is not proven as a variable that mediates the effect of environmental performance on firm value. Research limitations: The measurement of financial performance employs only one proxy; ROE. Measurement of financial performance may use various proxies to produce more accurate findings. Practical implications: This research provides an overview of the importance of implementing environmental performance for a company in order to increase firm value or company reputation among investors in particular and society in general. Originality/value: This research is a development of previous studies, which produced varying research results, with the addition of financial performance as a mediator variable. Paper type: This research is categorized as a research paper. Keywords: Environmental Performance, Financial Performance and Firm Value
The Effect Of Environmental Performance On Firm Value Using Financial Performance As Mediator Variable
Purpose: This study aims to examine the effect of environmental performance on firm value directly or indirectly by employing financial performance as a mediator variable. Design/methodology/approach: This research employs quantitative research. The population of the research is all non-financial companies on the Indonesia Stock Exchange (IDX) in the 2014-2019 period with a sample of 282 firm-years. The employed data analysis technique is Warp PLS 6.0 carried out in the two testing stages; the testing of the direct and the indirect effects of environmental performance variable on firm value. Findings: Environmental performance has a significant positive effect on firm value; environmental performance has no effect on financial performance; financial performance has a significant positive effect on firm value; and financial performance is not proven as a variable that mediates the effect of environmental performance on firm value. Research limitations: The measurement of financial performance employs only one proxy; ROE. Measurement of financial performance may use various proxies to produce more accurate findings. Practical implications: This research provides an overview of the importance of implementing environmental performance for a company in order to increase firm value or company reputation among investors in particular and society in general. Originality/value: This research is a development of previous studies, which produced varying research results, with the addition of financial performance as a mediator variable. Paper type: This research is categorized as a research paper. Keywords: Environmental Performance, Financial Performance and Firm Value
The Effect Of Environmental Performance On Firm Value Using Financial Performance As Mediator Variable
Aini, Nurul (author) / Faisal, Nabilah Taqiyyah (author)
2021-06-17
doi:10.29138/ijebd.v4i3.1391
IJEBD International Journal Of Entrepreneurship And Business Development eISSN 2597-4785 pISSN 2597-4750; Vol 4 No 3 (2021): May 2021; 390-395 ; 2597-4785 ; 2597-4750 ; 10.29138/ijebd.v4i3
Article (Journal)
Electronic Resource
English
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