Does Eco-Efficiency Reduce The Cost Of Equity Capital?

DOI

10.2991/icaess-19.2019.65How to use a DOI?

Keywords

cost of equity capital; eco-efficiency; ISO 14001; legitimacy theory

Abstract

The purpose of this study is to examine the impact of eco-efficiency on the cost of equity capital on manufacturing companies listed on the Indonesia Stock Exchange period from 2013 to 2017. Eco-efficiency is proxied by a dummy variable with a maximum value of 1 representing the company implementing ISO 14001 and with a minimum value of 0 representing a company that does not implement ISO 14001. Cost of equity capital is proxied with price earnings growth ratio. This study uses secondary data with purposive sampling techniques. The samples used in this study were 55 companies with a total observation of 275 data. The research data were analyzed by panel data regression analysis using Eviews 9. Our results showed that eco-efficiency implementations have a negative effect on the cost of equity capital.

Copyright

© 2019, 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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TY  - CONF
AU  - Sonia Laura
AU  - Arif Darmawan
PY  - 2019/12
DA  - 2019/12
TI  - Does Eco-Efficiency Reduce The Cost Of Equity Capital?
BT  - Proceedings of the 1st International Conference on Applied Economics and Social Science (ICAESS 2019)
PB  - Atlantis Press
SP  - 15
EP  - 19
SN  - 2352-5398
UR  - https://doi.org/10.2991/icaess-19.2019.65
DO  - 10.2991/icaess-19.2019.65
ID  - Laura2019/12
ER  -