Do Environmental Performance and Disclosure Contribute to the Economic Performance? The Moderating Role of Corporate Action
Abstract
Objective – The purpose of this study is to examine the effect of environmental performance and environmental disclosure on economic performance of the Indonesian listed manufacturing companies by using corporate action as a moderating variable.
Design/methodology – This study used secondary data obtained from the official website of the Indonesia Stock Exchange and the Ministry of Environment and Forestry, Indonesia. The sample consisted of manufacturing companies that are listed and follow the Company Performance Rating Assessment Program (Program Penilaian Peringkat Kinerja Perusahaan/PROPER) issued by the Ministry of Environment and Forestry for the period of 2011-2016. The study employed a purposive sampling approach, which includes 22 companies with 132 observations. The multiple linear regression method was used for data analysis.
Results – The results indicated that environmental performance has a significant positive effect while environmental disclosure has a significant negative effect on economic performance. The testing of corporate action as a moderating variable demonstrated that it could not strengthen the effect of environmental performance on economic performance. However, it could enhance the effect of environmental disclosure on economic performance.
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Al-Tuwaijri, S. A., Christensen, T. E., & Hughes, K. E. (2004). The relations among environmental disclosure, environmental performance, and economic performance: A simultaneous equations approach. Accounting, Organizations and Society Journal, 29(5–6), 447–471.
Albino, V., Balice, A., & Dangelico, R. M. (2009). Environmental strategies and green product development: An overview on sustainability-driven companies. Business Strategy and the Environment, 18(2), 83–96.
Almilia, L Spica, & Wijayanto, D. (2007). Pengaruh environmental performance Dan environmental disclosure terhadap economical performance. In Proceedings The 1st Accounting Confrence (pp. 1–23). Depok.
Almilia, Luciana Spica, & Briliantien. (2007). Faktor-faktor yang mempengaruhi kinerja sistem informasi akuntansi pada bank umum pemerintah di wilayah Surabaya dan Sidoarjo. Jurnal Ilmiah. Retrieved from http://spicaalmilia.wordpress.com
Aragon-Correa, J. A., Marcus, A., & Hurtado-Torres, N. (2016). The natural environmental strategies of international firms: old controversies and new evidence on performance and disclosure. Academy of Management Perspectives, 30(1), 1–16.
Barkemeyer. (2007). Legitimacy as a key driver and determinant of CSR in developing countries. In Paper For the 2007 Marle Curle Summer School on Earth System Govermance, Amsterdam.
Brammer, S., Brooks, C., & Pavelin, S. (2006). Corporate social performance and stock returns: UK evidence from disaggregate measures. Financial Management, 35(3), 97–116.
Campbell, N. A., Reece, J. B., & Mitchell, L. G. (2003). Biologi (5th ed.). Jakarta: Penerbit Erlangga.
Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2011). Does it really pay to be green? Determinants and consequences of proactive environmental strategies. Journal of Accounting and Public Policy, 30(2), 122–144.
Cong, Y., & Freedman, M. (2011). Corporate governance and environmental performance and disclosures. Advances in Accounting, 27(2), 223–232.
Cormier, D., & Gordon, I. M. (2001). An examination of social and environmental reporting strategies. Accounting, Auditing & Accountability Journal, 14(5), 587–617.
de Villiers, C., & van Staden, C. J. (2006). Can less environmental disclosure have a legitimizing effect? Evidence from Africa. Accounting, Organizations and Society, 31(8), 763–781.
Deegan, C. (2002). The legitimizing effect of social and environmental disclosures – a theoretical foundation. Accounting, Auditing and Accountability Journal, 15(3), 282–311.
Deegan, Craig, Rankin, M., & Voght, P. (2000). Firms’ disclosure reactions to major social incidents: Australian evidence. Accounting Forum, 24(1), 101–130. https://doi.org/10.1111/1467-6303.00031
Dewi, K. R. D., Adiputra, M. P., & Yuniarta, G. A. (2015). Pengaruh dividend per share dan earning per share terhadap harga saham pada perusahaan manufaktur yang go public yang terdaftar di bursa efek indonesia periode 2009-2013. Jurnal Akuntansi, 3(1), 1–11.
Freeman, E. R., & Mcvea, J. F. (2001). A stakeholder approach to strategic management. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.263511
Freeman, R. E., & Dmytriyev, S. D. (2017). Corporate social responsibility and stakeholder theory: Learning from each other. Symphonya Emerging Issues in Management. https://doi.org/10.4468/2017.1.02freeman.dmytriyev
Garzella, S., & Rafaelle, F. (2013). The current environmental strategy reporting model: What can be learned from corporate report. Accounting Information Systems for Decision Making, Lecturer Notes in Information Systems and Organization, 3, 93–120.
Ghozali, & Chariri. (2007). Teori akuntansi. Semarang: Badan Penerbit Undip.
Hassan, O. A. G., & Romilly, P. (2018). Relations between corporate economic performance, environmental disclosure and greenhouse gas emissions: New insights. Business Strategy and TheEnvironment, 27(7), 1–17.
Hirunyawipada, T., & Xiong, G. (2018). Corporate environmental commitment and financial performance: Moderating effects of marketing and operations capabilities. Journal of Business Research, 22, 22–31. https://doi.org/10.1016/j.jbusres.2018.01.002
Jambowo, T. (2014). Leverage and corporate market value: Empirical evidence from Zimbabwe stock exchange. International Journal of Economic and Finance, 6(4).
Kurniawan, T., & Breliastiti, R. (2017). Pengaruh komitmen manajemen puncak dan peran akuntan manajemen terhadap sistem informasi lingkungan dan dampaknya kepada kinerja lingkungan. Jurnal Akuntansi Bisnis, 9(1). https://doi.org/10.30813/jab.v9i1.872
Laan, van der, Joyce, S., Adhikari, A., & Tondkar, R. H. (2005). Exploring differences in social disclosures internationally: a stakeholder perspective. Journal of Accounting and Public Policy, 24(2), 123–151.
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.
Maulida, K. A., & Adam, H. (2012). Faktor-faktor yang mempengaruhi pengungkapan sustainability performance. (Studi pada website perusahaan manufaktur terdaftar di Bursa Efek Indonesia tahun 2011). Jurnal Ilmiah Mahasiswa FEB, 1(2).
Murwaningsari, E., & Sistya, R. (2017). The influence of capital intensity and investment opportunity set toward conservatism with managerial ownership as moderating variable. Journal of Advanced Management Science, 5(6).
Nadae, J. de, Carvalho, M. M., & Vieira, D. R. (2019). Exploring the influence of environmental and social standards in integrated management systems on economic performance of firms. Journal of Manufacturing Technology Management, 30(5), 840–861.
Nakumura, E. (2015). The bidirectional CSR investment – economic performance relationship. Journal of Global Responsibility, 6(1), 128–144.
O’Donovan, G. (2002). Environmental disclosures in the annual report: Extending the applicability and predictive power of legitimacy theory. Accounting, Auditing & Accountability Journal, 15(3), 344–371. https://doi.org/10.1108/09513570210435870
Qian, W., & Schaltegger, S. (2017). Revisiting carbon disclosure and performance: Legitimacy and management views. The British Accounting ReviewAccountingReview, 49(4), 365–379.
Rakhiemah, N. A., & Agustia, D. (2007). Pengaruh kinerja lingkungan terhadap corporate social responsibility (CSR) disclosure dan kinerja finansial perusahaan manufaktur yang terdaftar di bursa efek Indonesia. In Proceeding of Simposium Nasional Akuntansi XII (1-31). Palembang: Institute of Indonesian Chartered Accountants.
Republik Indonesia. Peraturan pemerintah republik indonesia nomor 57 tahun 2016 tentang perubahan atas peraturan pemerintah nomor 71 tahun 2014 tentang perlindungan dan pengelolaan ekosistem gambut (2016).
Richardson, A., & Welker, M. (2001). Social disclosure, financial disclosure and the cost of equity capital. Accounting, Organizations and Society, 26(7/8), 597–616.
Riyanto, A. (2020). Corporate action.
San, O. T., Soh, W. N., Teh, B. H., & Ng, S. H. (2015). Influence of environmental disclosures on the financial performance of public listed malaysian manufacturing companies. Asia-Pacific Management Accounting Journal, 10(1), 107–136.
Sharif, T., Purohit, H., & Pillai, R. (2015). Analysis of factors affecting share price: The case of Bahrain Stock Exchange. International Journal of Economics and Finance, 7(3), 207–216.
Singh, Nitish, Ma, J., & Yang, J. (2016). Optimizing environmental expenditures for maximizing economic performance. Management Decision, 54(10), 2544–2561.
Solovida, G. T., & Latan, H. (2017). Linking environmental strategy to environmental performance: Mediation role of environmental management accounting. Sustainability Accounting, Management and Policy Journal, 8(5), 595–619.
Suratno, D. (2006). Pengaruh environtmental performance terhadap environmental disclosure dan economic performance. In Simposium Nasional Akuntansi 9.
Sutami, E. (2011). The effect of voluntary disclosure of environmental performance and level of externalities to corporate economic performance (A case study in companies listed in Indonesia stock exchange). In The 3rd International Conference on Humanities and Social Sciences. Faculty of Liberal Arts, Prince of Songkla University.
Tadros, H., Magnan, M., & Boulianne, E. (2020). Is corporate disclosure of environmental performance indicators reliable or biased information? Alook at the underlying drivers. Journal of Financial Reporting and Accounting, 18(4), 661–686.
Tilling, M. V. (2004). Refinements to legitimacy theory in social and environmental accounting. Commerce Research Paper Series (Vol. 4).
Tumpa, T. J., Ali, S. M., Rahman, M. H., & Paul, S. (2019). Barriers to green supply chain management: An emerging economy context. Journal of Cleaner Production, 236, 1–12. https://doi.org/10.1016/j.jclepro.2019.117617
Utomo, D. (2018). 11 aksi corporate. Retrieved from https://snips.stockbit.com/belajar-saham/2018/5/16
Al-Tuwaijri, S. A., Christensen, T. E., & Hughes, K. E. (2004). The relations among environmental disclosure, environmental performance, and economic performance: A simultaneous equations approach. Accounting, Organizations and Society Journal, 29(5–6), 447–471.
Albino, V., Balice, A., & Dangelico, R. M. (2009). Environmental strategies and green product development: An overview on sustainability-driven companies. Business Strategy and the Environment, 18(2), 83–96.
Almilia, L Spica, & Wijayanto, D. (2007). Pengaruh environmental performance Dan environmental disclosure terhadap economical performance. In Proceedings The 1st Accounting Confrence (pp. 1–23). Depok.
Almilia, Luciana Spica, & Briliantien. (2007). Faktor-faktor yang mempengaruhi kinerja sistem informasi akuntansi pada bank umum pemerintah di wilayah Surabaya dan Sidoarjo. Jurnal Ilmiah. Retrieved from http://spicaalmilia.wordpress.com
Aragon-Correa, J. A., Marcus, A., & Hurtado-Torres, N. (2016). The natural environmental strategies of international firms: old controversies and new evidence on performance and disclosure. Academy of Management Perspectives, 30(1), 1–16.
Barkemeyer. (2007). Legitimacy as a key driver and determinant of CSR in developing countries. In Paper For the 2007 Marle Curle Summer School on Earth System Govermance, Amsterdam.
Brammer, S., Brooks, C., & Pavelin, S. (2006). Corporate social performance and stock returns: UK evidence from disaggregate measures. Financial Management, 35(3), 97–116.
Campbell, N. A., Reece, J. B., & Mitchell, L. G. (2003). Biologi (5th ed.). Jakarta: Penerbit Erlangga.
Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2011). Does it really pay to be green? Determinants and consequences of proactive environmental strategies. Journal of Accounting and Public Policy, 30(2), 122–144.
Cong, Y., & Freedman, M. (2011). Corporate governance and environmental performance and disclosures. Advances in Accounting, 27(2), 223–232.
Cormier, D., & Gordon, I. M. (2001). An examination of social and environmental reporting strategies. Accounting, Auditing & Accountability Journal, 14(5), 587–617.
de Villiers, C., & van Staden, C. J. (2006). Can less environmental disclosure have a legitimizing effect? Evidence from Africa. Accounting, Organizations and Society, 31(8), 763–781.
Deegan, C. (2002). The legitimizing effect of social and environmental disclosures – a theoretical foundation. Accounting, Auditing and Accountability Journal, 15(3), 282–311.
Deegan, Craig, Rankin, M., & Voght, P. (2000). Firms’ disclosure reactions to major social incidents: Australian evidence. Accounting Forum, 24(1), 101–130. https://doi.org/10.1111/1467-6303.00031
Dewi, K. R. D., Adiputra, M. P., & Yuniarta, G. A. (2015). Pengaruh dividend per share dan earning per share terhadap harga saham pada perusahaan manufaktur yang go public yang terdaftar di bursa efek indonesia periode 2009-2013. Jurnal Akuntansi, 3(1), 1–11.
Freeman, E. R., & Mcvea, J. F. (2001). A stakeholder approach to strategic management. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.263511
Freeman, R. E., & Dmytriyev, S. D. (2017). Corporate social responsibility and stakeholder theory: Learning from each other. Symphonya Emerging Issues in Management. https://doi.org/10.4468/2017.1.02freeman.dmytriyev
Garzella, S., & Rafaelle, F. (2013). The current environmental strategy reporting model: What can be learned from corporate report. Accounting Information Systems for Decision Making, Lecturer Notes in Information Systems and Organization, 3, 93–120.
Ghozali, & Chariri. (2007). Teori akuntansi. Semarang: Badan Penerbit Undip.
Hassan, O. A. G., & Romilly, P. (2018). Relations between corporate economic performance, environmental disclosure and greenhouse gas emissions: New insights. Business Strategy and TheEnvironment, 27(7), 1–17.
Hirunyawipada, T., & Xiong, G. (2018). Corporate environmental commitment and financial performance: Moderating effects of marketing and operations capabilities. Journal of Business Research, 22, 22–31. https://doi.org/10.1016/j.jbusres.2018.01.002
Jambowo, T. (2014). Leverage and corporate market value: Empirical evidence from Zimbabwe stock exchange. International Journal of Economic and Finance, 6(4).
Kurniawan, T., & Breliastiti, R. (2017). Pengaruh komitmen manajemen puncak dan peran akuntan manajemen terhadap sistem informasi lingkungan dan dampaknya kepada kinerja lingkungan. Jurnal Akuntansi Bisnis, 9(1). https://doi.org/10.30813/jab.v9i1.872
Laan, van der, Joyce, S., Adhikari, A., & Tondkar, R. H. (2005). Exploring differences in social disclosures internationally: a stakeholder perspective. Journal of Accounting and Public Policy, 24(2), 123–151.
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.
Maulida, K. A., & Adam, H. (2012). Faktor-faktor yang mempengaruhi pengungkapan sustainability performance. (Studi pada website perusahaan manufaktur terdaftar di Bursa Efek Indonesia tahun 2011). Jurnal Ilmiah Mahasiswa FEB, 1(2).
Murwaningsari, E., & Sistya, R. (2017). The influence of capital intensity and investment opportunity set toward conservatism with managerial ownership as moderating variable. Journal of Advanced Management Science, 5(6).
Nadae, J. de, Carvalho, M. M., & Vieira, D. R. (2019). Exploring the influence of environmental and social standards in integrated management systems on economic performance of firms. Journal of Manufacturing Technology Management, 30(5), 840–861.
Nakumura, E. (2015). The bidirectional CSR investment – economic performance relationship. Journal of Global Responsibility, 6(1), 128–144.
O’Donovan, G. (2002). Environmental disclosures in the annual report: Extending the applicability and predictive power of legitimacy theory. Accounting, Auditing & Accountability Journal, 15(3), 344–371. https://doi.org/10.1108/09513570210435870
Qian, W., & Schaltegger, S. (2017). Revisiting carbon disclosure and performance: Legitimacy and management views. The British Accounting ReviewAccountingReview, 49(4), 365–379.
Rakhiemah, N. A., & Agustia, D. (2007). Pengaruh kinerja lingkungan terhadap corporate social responsibility (CSR) disclosure dan kinerja finansial perusahaan manufaktur yang terdaftar di bursa efek Indonesia. In Proceeding of Simposium Nasional Akuntansi XII (1-31). Palembang: Institute of Indonesian Chartered Accountants.
Republik Indonesia. Peraturan pemerintah republik indonesia nomor 57 tahun 2016 tentang perubahan atas peraturan pemerintah nomor 71 tahun 2014 tentang perlindungan dan pengelolaan ekosistem gambut (2016).
Richardson, A., & Welker, M. (2001). Social disclosure, financial disclosure and the cost of equity capital. Accounting, Organizations and Society, 26(7/8), 597–616.
Riyanto, A. (2020). Corporate action.
San, O. T., Soh, W. N., Teh, B. H., & Ng, S. H. (2015). Influence of environmental disclosures on the financial performance of public listed malaysian manufacturing companies. Asia-Pacific Management Accounting Journal, 10(1), 107–136.
Sharif, T., Purohit, H., & Pillai, R. (2015). Analysis of factors affecting share price: The case of Bahrain Stock Exchange. International Journal of Economics and Finance, 7(3), 207–216.
Singh, Nitish, Ma, J., & Yang, J. (2016). Optimizing environmental expenditures for maximizing economic performance. Management Decision, 54(10), 2544–2561.
Solovida, G. T., & Latan, H. (2017). Linking environmental strategy to environmental performance: Mediation role of environmental management accounting. Sustainability Accounting, Management and Policy Journal, 8(5), 595–619.
Suratno, D. (2006). Pengaruh environtmental performance terhadap environmental disclosure dan economic performance. In Simposium Nasional Akuntansi 9.
Sutami, E. (2011). The effect of voluntary disclosure of environmental performance and level of externalities to corporate economic performance (A case study in companies listed in Indonesia stock exchange). In The 3rd International Conference on Humanities and Social Sciences. Faculty of Liberal Arts, Prince of Songkla University.
Tadros, H., Magnan, M., & Boulianne, E. (2020). Is corporate disclosure of environmental performance indicators reliable or biased information? Alook at the underlying drivers. Journal of Financial Reporting and Accounting, 18(4), 661–686.
Tilling, M. V. (2004). Refinements to legitimacy theory in social and environmental accounting. Commerce Research Paper Series (Vol. 4).
Tumpa, T. J., Ali, S. M., Rahman, M. H., & Paul, S. (2019). Barriers to green supply chain management: An emerging economy context. Journal of Cleaner Production, 236, 1–12. https://doi.org/10.1016/j.jclepro.2019.117617
Utomo, D. (2018). 11 aksi corporate. Retrieved from https://snips.stockbit.com/belajar-saham/2018/5/16
DOI: https://doi.org/10.24815/jaroe.v4i1.18672
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