How Does Environmental Disclosure and Environmental Certification Affect Indonesia State-Owned Company Performance?

A. K. Widiatami (), P. Suranti, L. Latifah, I N. Aeni and A. Nurkhin
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A. K. Widiatami: Universitas Negeri Semarang, Economic Education Department
P. Suranti: Universitas Negeri Semarang, Economic Education Department
L. Latifah: Universitas Negeri Semarang, Economic Education Department
I N. Aeni: Universitas Negeri Semarang, Economic Education Department
A. Nurkhin: Universitas Negeri Semarang, Economic Education Department

A chapter in Proceedings of the International conference of Economics Business and Economics Education Science (ICE-BEES-24), 2024, pp 115-122 from Springer

Abstract: Abstract Companies today are not only focused on increasing profits but also must pay attention to environmental aspects when carrying out their activities, especially for state-owned companies in Indonesia that represent government-owned businesses. The purpose of this study is to analyze the effect of environmental disclosure and environmental certification on financial performance. The population in this study were state-owned companies listed on the IDX in 2018-2022. The sample selection technique uses purposive sampling and obtains 93 observation samples through unbalanced pooled data. This study has done a robustness check through different financial performance indicators with ROA and ROE. The result shows robust results that environmental certification negatively affects both ROA and ROE, while environmental disclosure does not affect ROA and ROE. It shows that companies with environmental certification have decreased their net profit performance from managing assets and capital from investors. The result has implications for state-owned companies in Indonesia, which should be more concerned about ecological effects and risks due to their business activities. State-owned companies are expected to be pioneer in making companies more aware of environmental trends because most of their capital is from the government.

Keywords: Environmental disclosure; Environmental certification; Financial performance; State-owned companies; ROA (Return on Assets) (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-522-5_9

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