Article Sidebar

Download
PDF
Statistic
Read Counter : 386 Download : 405

Downloads

Download data is not yet available.

Main Article Content

Abstract

This study aims to examine the relationships between environmental performance, financial leverage, as well as institutional ownership and firm value. In this study, firm value is measured with Tobin's Q ratio. The sample used in this study was 20 manufacturing firms listed at the Indonesia Stock Exchange with the observation period between 2016-2019; so, the total observations made were 80. Multiple regression analysis using SPSS application was carried out to scrutinize the data. The results of this study indicate that all independent variables tested, namely environmental performance, financial leverage, and institutional ownership, have positive influences on firm value. These results provide a good signal for the investors to continuously invest in manufacturing firms. In addition, good environmental performance has an impact on firms’ positive image.

Keywords

Corporate value Environmental Performance Financial Leverage Institutional Ownership

Article Details

License

Copyright (c) 2021 Journal of Contemporary Accounting and Authors

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access). 
How to Cite
Arfazil, M., Saputra, M., & Indayani. (2022). The effects of environmental performance, financial leverage, and institutional ownership on firm value: a study on manufacturing firms in Indonesia. Journal of Contemporary Accounting, 3(3), 162–168. https://doi.org/10.20885/jca.vol3.iss3.art5
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Akisik, O., & Gal, G. (2017). The impact of corporate social responsibility and internal controls on stakeholders’ view of the firm and financial performance. Sustainability Accounting, Management and Policy Journal, 8(3), 246–280. https://doi.org/10.1108/SAMPJ-06-2015-0044
  2. Anindito, T., & Ardiyanto, M. D. (2012). Pengaruh kinerja lingkungan terhadap corporate social responsibility (CSR) disclosure dan kinerja finansial perusahaan kimia dan pertambangan yang terdaftar di Bursa Efek Indonesia. Diponegoro Journal of Accounting, 2(1), 1–12.
  3. Bjuggren, P. O., Nordström, L., & Palmberg, J. (2018). Are female leaders more efficient in family firms than in non-family firms? Corporate Governance: The International Journal of Business in Society, 18(2), 185–205. https://doi.org/10.1108/CG-01-2017-0017
  4. Buchanan, B., Xuying, C., & Chen, C. (2018). Corporate social responsibility, firm value, and influential institutional ownership. Journal of Corporate Finance, 52, 73–95.
  5. Claessens, S., Djankov, S., & Lang, L. H. P. (2000). The separation of ownership and control in East Asian Corporations. Journal of Financial Economics, 58(1–2), 81–112. https://doi.org/10.1016/s0304-405x(00)00067-2
  6. Detthamrong, U., Chancharat, N., & Vithessonthi, C. (2017). Corporate governance, capital structure and firm performance: Evidence from Thailand. Research in International Business and Finance, 42(July), 689–709. https://doi.org/10.1016/j.ribaf.2017.07.011
  7. Hamdani, R., Najamuddin, Y., Haryanto, P. D., & Kholid, M. N. (2020). A comparative study on CSR disclosure between Indonesian Islamic banks and conventional banks : the application of GRI and ISR indexes. Jurnal Akuntansi dan Auditing Indonesia, 24(2), 148–158. https://doi.org/10.20885/jaai.vol24.iss2.art8
  8. Haniffa, R., & Hudaib, M. (2006). Corporate governance structure and performance of Malaysian listed firms. Journal of Business Finance and Accounting, 33(7–8), 1034–1062. https://doi.org/10.1111/j.1468-5957.2006.00594.x
  9. Jensen, C., & Meckling, H. (1976). Theory of the Firm : Managerial behavior, agency costs and ownership structure. 3, 305–360.
  10. Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American Economic Review, 72(2), 323–329. https://doi.org/10.1177/0265407598156003
  11. Joh, S. W. (2003). Corporate governance and firm profitability: Evidence from Korea before the economic crisis. Journal of Financial Economics, 68(2), 287–322. https://doi.org/10.1016/S0304-405X(03)00068-0
  12. King, M. R., & Santor, E. (2008). Family values: Ownership structure, performance and capital structure of Canadian firms. Journal of Banking and Finance, 32(11), 2423–2432. https://doi.org/10.1016/j.jbankfin.2008.02.002
  13. Mardiana, I. A., & Wuryani, E. (2019). Pengaruh kinerja lingkungan terhadap nilai perusahaan dengan profitabilitas sebagai variabel pemoderasi. AKUNESA: Jurnal Akuntansi Unesa, 8(1).
  14. Marpaung, A. P., Harjito, D. A., Hamdani, R., & Ghazali, A. W. (2022). Boards of directors’ feminism, audit committee, and corporate social responsibility. Jurnal Ekonomi Dan Bisnis, 25(1), 16–30. https://doi.org/10.24914/jeb.v25i1.4207
  15. Marpaung, A. P., Koto, M., Shareza Hafiz, M., & Hamdani, R. (2022). Female Directors and Firm Performance: Evidence of Family Firm in Indonesia. Asian Journal of Economics, Business and Accounting, 22(1), 19–30. https://doi.org/10.9734/ajeba/2022/v22i130538
  16. McConnell, J. J., & Servaes, H. (1995). Equity ownership and the two faces of debt. Journal of Financial Economics, 39(1), 131–157. https://doi.org/10.1016/0304-405X(95)00824-X
  17. Nahda, K., & Harjito, D. A. (2011). Pengaruh corporate social responsibility terhadap nilai perusahaan dengan corporate governance sebagai variabel moderasi. Jurnal Siasat Bisnis Vol, 15(1), 1–12.
  18. Nekhili, M., Nagati, H., Chtioui, T., & Rebolledo, C. (2017). Corporate social responsibility disclosure and market value : Family versus nonfamily fi rms. Journal of Business Research, 77(July 2016), 41–52.
  19. Nurminda, A., Isynurwardhana, D., & Nurbaiti, A. (2017). Pengaruh kinerja lingkungan, leverage dan ukuran perusahaan terhadap nilai perusahaan (studi pada perusahaan manufaktur sub sektor baranpg dan konsumsi yang terdaftar di Bursa Efek Indonesia periode tahun 2012 – 2015). E-Proceeding of Managemen, 4(1), 542–549.
  20. Pasaribu, M. Y., Topowijono, & Sulasmiyati, S. (2016). Pengaruh struktur modal, kepemilikan institusional dan kinerja lingkungan terhadap nilai perusahaan pada perusahaan sektor industri dasar dan kimia yang terdaftar di BEI tahun 2011-2014. Jurnal Administrasi Bisnis, 35(1).
  21. Ramli, N. A., Latan, H., & Solovida, G. T. (2018). Determinants of capital structure and firm financial performance—A PLS-SEM approach: Evidence from Malaysia and Indonesia. Quarterly Review of Economics and Finance, 71, 148–160. https://doi.org/10.1016/j.qref.2018.07.001
  22. Sartono, A. (2017). Manajemen Keuangan Teori dan Aplikasi (4th ed.). Yogyakarta: BPFE.
  23. Sukrini, D. (2012). Kepemilikan Manajerial, Kepemilikan Institusioanl, Kebijakan Deviden dan Kebijakan Hutang Analisis Terhadap Nilai Perusahaan. Accounting Analysis Journal, 1(2), 1–12.
  24. Suraida, I. (2005). Pengaruh Etika, Kompetensi, Pengalaman Audit dan Risiko Audit terhadap Skeptisisme Profesional Auditor dan Ketepatan Pemberian Opini Akuntan Publik. Sosiohumaniora, 7(3), 186–202. https://doi.org/10.1038/s41562-017-0193-3
  25. Wang, Z., & Sarkis, J. (2017). Corporate social responsibility governance, outcomes, and financial performance. Journal of Cleaner Production, 162, 1607–1616. https://doi.org/10.1016/j.jclepro.2017.06.142
  26. Yendrawati, R., & Witono, W. (2011). Pengaruh sifat machiavellian, locus of control dan independensi terhadap perilaku etis auditor (studi empiris pada kantor akuntan publik di Yogyakarta). Jurnal Aplikasi Bisnis, 10(9), 10(9), 1233–1256.