Proceedings of the 6th International Accounting Conference (IAC 2017)

Is Environmental Performance Valued by Investors? The Case of Indonesian Listed Companies

Authors
Felisha Felisha, Hilda Rossieta
Corresponding Author
Felisha Felisha
Available Online August 2017.
DOI
https://doi.org/10.2991/iac-17.2018.46How to use a DOI?
Keywords
Environmental Performance; Cost of Debt; Cost of Equity; Indonesian Listed Companies
Abstract

This study aimed to investigate whether environmental performance is valuable to investors. Lower environmental performance is associated with higher litigation and sustainability risk; therefore, investors will ask for a higher return premium for low environmental performance, and vice versa. This study used the results of the Companies’-Performance-Rating Assessment Program (Program Penilaian Peringkat Kinerja Perusahaan) (PROPER), conducted by the Indonesian Environmental Ministry, as a proxy for environmental performance. The empirical results show that environmental performance is positively associated with the cost of debt. This research found no association between environmental performance and the cost of equity.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 6th International Accounting Conference (IAC 2017)
Series
Advances in Economics, Business and Management Research
Publication Date
August 2017
ISBN
978-94-6252-519-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/iac-17.2018.46How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Felisha Felisha
AU  - Hilda Rossieta
PY  - 2017/08
DA  - 2017/08
TI  - Is Environmental Performance Valued by Investors? The Case of Indonesian Listed Companies
BT  - Proceedings of the 6th International Accounting Conference (IAC 2017)
PB  - Atlantis Press
SP  - 260
EP  - 264
SN  - 2352-5428
UR  - https://doi.org/10.2991/iac-17.2018.46
DO  - https://doi.org/10.2991/iac-17.2018.46
ID  - Felisha2017/08
ER  -