Effect of Environmental Performance, Firm Size, Corporate Social Responsibility on Financial Performance on Manufacturing Companies

Mira Afriani; Yadi Nurhayadi; Ummu Salma Al Azizah

doi:10.31149/ijefsd.v3i3.1345

Authors

Mira Afriani
miraafriani1@gmail.com
University of Muhammadiyah Prof. Dr. HAMKA, Jakarta, Indonesia
Yadi Nurhayadi University of Muhammadiyah Prof. Dr. HAMKA, Jakarta, Indonesia
Ummu Salma Al Azizah University of Muhammadiyah Prof. Dr. HAMKA, Jakarta, Indonesia

Vol. 3 No. 3 (2021): MARCH

Articles

March 17, 2021

Downloads

pdf

Abstract
How to Cite
Metrics
References

This study examined the relationship between environmental performance, firm size, corporate social responsibility on financial performance on manufacturing companies listed in ISSI over the period 2014-2018. The independent variables were hypothesized- environmental performance, firm size, and corporate social responsibility. While the dependent variable was a financial performance (ROA). Whereas, the data used are secondary data of finance and annual statements derived from the Indonesian Stock Exchange and the company’s official website, as well as the PROPER data, reconstituted from The Ministry of Environment and Forestry. The method used in analyzing data on this research is multiple regression linear with the EViews 10. The results showed that environmental performance had no significant effect on financial performance (ROA), the firm size significantly affected the financial performances (ROA), corporate social responsibility significantly affected the financial performances (ROA). Thus, environmental performance, firm size, and corporate social responsibility affect simultaneously on financial performances (ROA)

Mira Afriani, Yadi Nurhayadi, & Ummu Salma Al Azizah. (2021). Effect of Environmental Performance, Firm Size, Corporate Social Responsibility on Financial Performance on Manufacturing Companies. International Journal on Economics, Finance and Sustainable Development, 3(3), 27–37. https://doi.org/10.31149/ijefsd.v3i3.1345

Download Citation

kben-Selcuk, E. (2019). Corporate social responsibility and financial performance: The moderating role of ownership concentration in Turkey. Sustainability (Switzerland), 11(13). https://doi.org/10.3390/su11133643

Angelia, D., & Suryaningsih, R. (2015). The Effect of Environmental Performance And Corporate Social Responsibility Disclosure Towards Financial Performance (Case Study to Manufacture, Infrastructure, And Service Companies That Listed At Indonesia Stock Exchange). Procedia - Social and Behavioral Sciences, 211, 348–355. https://doi.org/10.1016/j.sbspro.2015.11.045

Christina O and Robiyanto. (2018). The Effect Of Financial Performance And Firm Size On Stock Prices Of Manufacturing Company In 2013-2016. Prosiding SENDI, 2007, 559–563.

Dewi, K., & Monalisa, M. (2016). Effect of Corporate Social Responsibility Disclosure on Financial Performance with Audit Quality as a Moderating Variable. Binus Business Review, 7(2), 149–155. https://doi.org/10.21512/bbr.v7i2.1687

Eyigege, A. I. (2018). Influence of Firm Size on Financial Performance of Deposit Money Banks Quoted on the Nigeria Stock Exchange. In International Journal of Economics and Financial Research ISSN (Vol. 4, Issue 9).

Fajriana, A., & Priantinah, D. (2016). Pengaruh Corporate Social Responsibility, Keputusan Investasi, Dan Struktur Modal Terhadap Nilai Perusahaan. Nominal, Barometer Riset Akuntansi Dan Manajemen, 5(2). https://doi.org/10.21831/nominal.v5i2.11721

Gautam, R., Singh, A., & Bhowmick, D. (2016). Demystifying relationship between Corporate Social Responsibility (CSR) and financial performance: An Indian business perspective. Independent Journal of Management & Production, 7(4), 1034–1062. https://doi.org/10.14807/ijmp.v7i4.443

Giannarakis, G., Konteos, G., Zafeiriou, E., & Partalidou, X. (2016). The impact of corporate social responsibility on financial performance. Investment Management and Financial Innovations, 13(3), 171–182. https://doi.org/10.21511/imfi.13(3-1).2016.03

Gnanaweera, K. A. K., & Kunori, N. (2018). Corporate sustainability reporting: Linkage of corporate disclosure information and performance indicators. Cogent Business and Management, 5(1). https://doi.org/10.1080/23311975.2018.1423872

H Manurung, D. T., Manurung, D. T., Wedi Rusmawan Kusumah, R., Hapsari, D. W., & Husnatarina, F. (2017). Effect of Corporate Governance, Financial Performance and Environmental Performance on Corporate Social Responsibility Disclosure. International Journal of Arts and Commerce, 6(5). www.ijac.org.uk

Haninun, H., Lindrianasari, L., & Denziana, A. (2018). The effect of environmental performance and disclosure on financial performance. International Journal of Trade and Global Markets, 11(1–2), 138–148. https://doi.org/10.1504/IJTGM.2018.092471

Horváthová, E. (2012). The impact of environmental performance on firm performance: Short-term costs and long-term benefits? Ecological Economics. https://doi.org/10.1016/j.ecolecon.2012.10.001

Iwata, H., & Okada, K. (2011). How does environmental performance affect financial performance? Evidence from Japanese manufacturing firms. Ecological Economics, 70(9), 1691–1700. https://doi.org/10.1016/j.ecolecon.2011.05.010

Maqbool, S., & Zameer, M. N. (2018). Corporate social responsibility and financial performance: An empirical analysis of Indian banks. Future Business Journal, 4(1), 84–93. https://doi.org/10.1016/j.fbj.2017.12.002

Meiyana, A., & Aisyah, M. N. (2019). Pengaruh Kinerja Lingkungan, Biaya Lingkungan, dan Ukuran Perusahaan Terhadap Kinerja Keuangan Dengan Corporate Social Responsibility Sebagai Variabel Intervening. Nominal: Barometer Riset Akuntansi Dan Manajemen, 8(1), 1–18. https://doi.org/10.21831/nominal.v8i1.24495

Nawaiseh, M. E. (2015). Do firm size and financial performance affect corporate social responsibility disclosure: Employees’ and environmental dimensions? American Journal of Applied Sciences, 12(12), 967–981. https://doi.org/10.3844/ajassp.2015.967.981

Ngoc, N. B. (2018). The Effect of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from Credit Institutions in Vietnam. Asian Social Science, 14(4), 109. https://doi.org/10.5539/ass.v14n4p109

Nor, N. M., Bahari, N. A. S., Adnan, N. A., Kamal, S. M. Q. A. S., & Ali, I. M. (2016). The Effects of Environmental Disclosure on Financial Performance in Malaysia. Procedia Economics and Finance, 35, 117–126. https://doi.org/10.1016/s2212-5671(16)00016-2

Oyelade, A., & Opeyemi, A. (2019). THE IMPACT OF FIRM SIZE ON FIRMS PERFORMANCE IN NIGERIA: A COMPARATIVE STUDY OF SELECTED FIRMS IN THE BUILDING INDUSTRY IN NIGERIA Determinants of Export Diversification in Nigeria: Any Special Role for Foreign Direct Investment? View project THE IMPACT O. Asian Development Policy Review, 7(1), 1–9. https://doi.org/10.18488/journal.107.2019.71.1.9

Prof. H. Imam Ghozali, M.Com, Ph.D, CA, A. (2016). Aplikasi Analisis Multivariate (9th ed., pp. 179–180). Badan Penerbit Universitas Diponegoro.

Rahayu, H. R., & Sarsiti. (2016). The Influence of Environmental Performance and Corporate Social Responsibility Towards Financial Performance on Manufacture Companies Listed BEI period 2011-2013. Jurnal Penelitian Dan Kajian Ilmiah Fakultas EKonomi Universitas Surakarta (SMOOTING), 14(4), 49–59.

Rodriguez-Fernandez, M. (2016). Social responsibility and financial performance: The role of good corporate governance. BRQ Business Research Quarterly, 19(2), 137–151. https://doi.org/10.1016/j.brq.2015.08.001

Sarumpaet, S. (2005). The Relationship Between Environmental Performance and Financial Performance of Indonesian Companies. 89–98. http://www.petra.ac.id/~puslit/journals/dir.php?DepartmentID=AKU

Sujoko, S. (2017). Pengaruh Struktur Kepemilikan, Strategi Diversivikasi, Leverage, Faktor Intern dan Faktor Ekstern Terhadap Nilai Perusahaan (Studi Empirik Pada Perusahaan Manufaktur Dan Non Manufaktur Di Bursa Efek Jakarta). EKUITAS (Jurnal Ekonomi Dan Keuangan), 11(2), 236. https://doi.org/10.24034/j25485024.y2007.v11.i2.2236

Szegedi, K., Khan, Y., & Lentner, C. (2020). Corporate social responsibility and financial performance: Evidence from Pakistani listed banks. Sustainability (Switzerland), 12(10), 1–19. https://doi.org/10.3390/SU12104080

The Ministry of Environment and Forstry Republic Indonesia. (2019). Proper 4.0.

Tunggal, W. S. P., & Fachrurrozie. (2014). Pengaruh Environmental Performance, Environmental Cost, dan CSR Terhadap Financial Performance. AAJ, 3(3), 310–320. http://journal.unnes.ac.id/sju/index.php/aaj