Conceptual Paper of Environmental Disclosure and Financial Performance: The Role of Environmental Performance
Ifada L.M., Amilahaq F., Najihah N., Khatamy A.A.
Abstract
This research examines the company’s environmental responsibility in responding to current environmental issues. The regulations from stakeholders and the increasing public awareness of pollution are new challenges for companies. Therefore, companies must increase their environmental responsibility and pay more attention to their business activities. This research aims to identify the role of environmental disclosure on the company’s financial and environmental performance. In addition, this study also observes the role of environmental performance in affecting environmental disclosure and financial performance. This research used an exploratory quantitative approach. The population was large companies listed on the Indonesia Stock Exchange (IDX) from 2006–2020. The method used purposive sampling with secondary data. This research is still in the form of a conceptual paper. Therefore, further research is needed to increase the company’s knowledge and competence to respond to environmental issues.
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