Does Environmental Performance Affect Financial Performance?

Rofiqoh Ferawati, As’ad Isma, Khairiyani

This research aimed to examine of environmental performance on financial performance Environmental performance was measured by PROPER. PROPER was assessed by the Ministry of Environment that conducting the development of environmental performance in Indonesia. Financial performance was reflected by ROA (Return On Assets), ROE (Return On Equity), and NPM (Net Profit Margin). This study used 8 mining companies as a sample that is consistently listed in the Indonesian Stock Exchange and followed the PROPER program during 2015-2017. The sample was determined by using purposive sampling. Analysis of data in this study used Structural Equation Modeling-Partial Least Square (SEM-PLS) with Smart-PLS version 3. The result showed that environmental performance was reflected by PROPER affected financial performance (ROA, ROE, and NPM).

Volume 12 | Issue 6

Pages: 3061-3068

DOI: 10.5373/JARDCS/V12I6/S20201272