ARTICLE
TITLE

Does Eco-Efficiency Improve Financial Performance of Manufacturing Companies in Indonesia?

SUMMARY

This study aims to determine the impact of environmental performance proxied by eco-efficiency on the financial performance of manufacturing companies in Indonesia. In this study, the multiple linear regression test was used to analyse the data.  The sample of this study is manufacturing companies that listed at the Indonesia Stock Exchange from 2012 until 2016 with the total observation is 80 firm-years.The results of this study indicated that the average level of eco-efficiency of the manufacturing companies is still relatively low (0.38). The environmental performance as measured by the eco-efficiency has a positive significant effect on the financial performance of the companies. Therefore, this study suggests that companies can improve their financial performance by enhancing their eco-efficiency level.This study aims to determine the impact of environmental performance proxied by eco-efficiency on the financial performance of manufacturing companies in Indonesia. In this study, the multiple linear regression test was used to analyse the data.  The sample of this study is manufacturing companies that listed at the Indonesia Stock Exchange from 2012 until 2016 with the total observation is 80 firm-years.The results of this study indicated that the average level of eco-efficiency of the manufacturing companies is still relatively low (0.38). The environmental performance as measured by the eco-efficiency has a positive significant effect on the financial performance of the companies. Therefore, this study suggests that companies can improve their financial performance by enhancing their eco-efficiency level.

PAGES
pp. 137 - 150
COLLECTIONS
Economy

 Articles related

Natalia N. Koroteeva,Elnur L. Hasanov,Vladimir A. Mushrub,Elena N. Klochko,Vladimir V. Bakharev,Rustem A. Shichiyakh    

The transition to a market system of management in Russia has put a lot of tourism enterprises in a predicament when the competition forces them to look for new ways of survival, use of competitive advantages and provision competitiveness of tourism ente... see more


Aylin Çigdem Köne, Tayfun Büke    

The environmental efficiencies of 31 member countries of the European Environment Agency between 1990 and 2011 were evaluated using the gross domestic product using purchasing power parity. Categories of imparting pressure on the environment, including g... see more


Olha Sliusarchuk,Ruslan Lavrov,Vasyl Kuybida,Maksym Slatvinskyi,Andrii Zelenskyi    

In order to achieve the purpose outlined, this research uses the following methods: analysis and synthesis; economic and statistical analysis and comparison; economic and mathematical; generalization. The result shows that Poland's fiscal policy aims at ... see more

Revista: Etikonomi

Eko Cristian,Wirdy Leonarsan,Sung Suk Kim    

Banks in Indonesia provide more than 40 percent of funding in economy. Sustainable performance of commercial banks is important because they have large effects on the growth of whole economy. The purpose of this study is to investigate how the effects of... see more


Dic Lo,Guicai Li,Yingquan Jiang    

Despite fundamental market reforms, the Chinese financial system has remained a mixed system. From the perspectives of the mainstream doctrines of financial liberalization, this system is easily judged to be entailing serious allocative inefficiencies. N... see more