The Relationship Between Environmental Performance and Financial Performance of Indonesian Companies

Susi Sarumpaet
Journal article Jurnal Akuntansi dan Keuangan Universitas Kristen Petra • November 2005 Indonesia


In Bahasa Indonesia : This study examined the relationship between environmental performance and financial performance amongst Indonesian companies. The environmental performance is measured by corporate environmental ratings provided by Bapedal/ the Ministry of Environment RI, through a program, called PROPER, while the financial performance is measured by return on assets (ROA). Some control variables are also included in this analysis, namely: total sales, industry sector, stock exchange listing, and ISO 14001 certification. The study revealed while financial performance is not significantly associated with environmental performance, company size, stock exchange listing and ISO 14001 are significantly associated with environmental performance. This finding also indicates that the government environmental rating is highly consistent with International environmental certification. Keywords: environmental performance, financial performance, return on assets, ISO 14001 certification.




Jurnal Akuntansi dan Keuangan Universitas Kristen Petra

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