Is Environmental Performance Valued by Investors? The Case of Indonesian Listed Companies
- 10.2991/iac-17.2018.46How to use a DOI?
- Environmental Performance; Cost of Debt; Cost of Equity; Indonesian Listed Companies
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.
- © 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 - 10.2991/iac-17.2018.46 ID - Felisha2017/08 ER -