Relationship of Environmental Ability and Economic Ability Company: Evidence From Indonesia

Abstract

Environmental performance is strongly influenced by the extent of impetus towards environmental management carried out by various agencies, especially agencies government. Environmental performance will also be achieved at a high level if the company proactively undertakes various environmental management actions in a controlled manner. The purpose of this study is to examine the effect of performance environment on economic performance. Data were analyzed using regression multiple. The data used in this study comes from annual reports registered on the Indonesia Stock Exchange and PROPER in 2016-2018. Results this research shows that environmental performance has a significant effect on economic performance. The company is expected to pay attention to the completeness of the disclosure items environmental performance that needs to be disclosed in a sustainable report. This will certainly make it easier for investors to assess the company's performance. In besides that there needs to be more binding regulations from the government regarding ongoing reports made by the company so that the company can know more clearly about what information should be disclosed in ongoing report.