Environmental Costs and Their Impact on the Financial Performance of PROPER-Rated Manufacturing Companies: The Mediating Role of Environmental Performance
DOI:
https://doi.org/10.59890/ijma.v4i1.297Keywords:
Environmental Costs, Environmental Performance, Financial Performance, Manufacturing Companies, PROPERAbstract
This study examines environmental costs’ impact on the financial performance of manufacturing companies and the mediating role of environmental performance. Using a quantitative approach, the data are obtained from financial statements, sustainability reports of manufacturing companies listed on the Indonesia Stock Exchange, and PROPER reports issued by the Ministry of Environment and Forestry. Panel data regression and the Sobel test are employed for mediation analysis. The findings indicate that environmental costs not significantly affect environmental performance, and environmental performance does not significantly influence financial performance, either directly or as a mediating variable.
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