THE EFFECT OF ENVIRONMENTAL PERFORMANCE ON COMPANY FINANCIAL PERFORMANCE WITH COMPANY SIZE AND GOOD CORPORATE GOVERNANCE AS MODERATING VARIABLES

Ilham Efendi Lubis, Henny Rahyuda

Abstract

The purpose of this research is to determine the effect of environmental performance on financial performance as proxied by net profit margin (NPM) by adding good corporate governance and company size as moderating variables. The population in this research is all mining companies listed on the Indonesia Stock Exchange in 2015-2019, with a sample of 33 companies. Data were collected through non-participant observation with explanatory research. From the data collected, an analysis was carried out using Moderated Regression Analysis (MRA). Through this analysis, the results of this research state that environmental performance has a positive effect on financial performance. Good corporate governance and company size are able to moderate the influence of environmental performance on the financial performance of mining companies listed on the IDX in 2015-2019. This shows that in order to maximize financial performance, the management of mining companies listed on the Indonesia Stock Exchange should optimize environmental performance, increase company size in profit and implement good management within the company.


Keywords: Company Financial Performance, Environmental Performance, Good Corporate Governance, Company Size

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