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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Effect of Environmental Performance and Financial Performance on Firm Value

Roy Budiharjo

http://dx.doi.org/10.6007/IJARAFMS/v9-i2/6030

Open access

The purpose of this study was to determine the assessment of environmental performance, and financial performance on the value of the company. Secondary data was collected from the Indonesia Stock Exchange listed on the Indonesia Stock Exchange for the period 2015-2017. This study used a purposive sampling method with the criteria as (1) listed on the Indonesia Stock Exchange in 2015 - 2017. (2) Publish the audited financial statements for the period 2015-2017 in Rupiah. (3) always has an advantage. (4) entered in the PROPER list. The data needed to be taken from the 2015-2017 Indonesian Capital Market Directory (ICMD). Statistical tests were carried out by t test and multiple linear regression analysis, before this test the classical assumption test was carried out first. The results of the study show that: 1) Environmental performance proxied by ISO 14001 and PROPER has a positive and insignificant effect on the value of the company proxied by Tobins'Q. 2) Based on the results of the study, it can be seen that financial performance proxied by Total Asset Turn Over (TATO) and Net Profit Margin (NPM) has a positive and significant effect on positive and non-significant proxies with Tobins'Q. with Total Asset Turn Over (TATO).

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Budiharjo R. (2019). Effect of Environmental Performance and Financial Performance on Firm Value, International Journal of Academic Research in Accounting, Finance and Management Sciences 9 (2): 65-73