Do environmental performance and disclosure bring financial outcome? Evidence from Indonesia
by Devie Devie; Jessica Kamandhanu; Josua Tarigan; Saarce Elsye Hatane
World Review of Science, Technology and Sustainable Development (WRSTSD), Vol. 15, No. 1, 2019

Abstract: In some developing countries such as Indonesia, there is a lack of regulatory controls in social responsibility performance and disclosure. Therefore, this paper is conducted to study the level of social responsibility performance and disclosure, as well as to investigate the relationship of environmental performance with a financial outcome, using environmental disclosure as the mediation variable. A firm's environmental performance is measured by PROPER score and the environmental disclosure with GRI index. Results show that firms' financial outcome is significantly affected by their environmental action (PROPER score and GRI Index). However, the findings also indicate that both environmental disclosure and profitability together are able to mediate the relationship between environmental performances and firms. The findings suggest that, in general, the majority of firms need to follow the GRI guidelines for reporting environmental information; therefore the investors should consider this information when making investment decisions.

Online publication date: Fri, 29-Mar-2019

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the World Review of Science, Technology and Sustainable Development (WRSTSD):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com