Articles

The Effect of Sustainability Accounting and Environmental Performance on Financial Performance (Study of Manufacturing Companies Listed on IDX in 2018-2021)

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As producers of waste that has great potential to damage the environment, companies must show their responsibility by implementing sustainability accounting through the disclosure of information on economic, environmental, and social dimensions and improving their environmental performance. Both aspects can affect stakeholders’ perceptions of the company which in turn will affect the company’s financial performance. This study aims to determine the effect of sustainability accounting implementation and environmental performance on financial performance. This research uses quantitative methods. Using a purposive sampling technique, the research sample is manufacturing companies listed on the Indonesia Stock Exchange in 2018-2021 (4 years). The data used is secondary data obtained from financial reports and annual reports published by the Indonesia Stock Exchange (www.idx.com) and sustainability reports published through the company’s website. Data analysis and hypothesis testing using multiple linear regression analysis. The results showed that partially, the application of sustainability accounting in the economic dimension has no effect on financial performance, the application of sustainability accounting in the environmental dimension has a negative and significant effect on financial performance, the application of sustainability accounting in the social dimension has a positive and significant effect on financial performance, and environmental performance has a negative and significant effect on financial performance. Simultaneously, the four variables have a positive and significant effect on financial performance.

The Influence of Corporate Social Responsibility (CSR) Disclosure and Sustainability Accounting on Earnings Response Coefficient (ERC)

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The research aimed to analyze the factors which provide earning response coefficient (ERC) received by automotive manufacturing companies listed on the Indonesia Stock Exchange using indicators of corporate social responsibility (CSR) and sustainability accounting from 2013 through 2017. The purposive sampling technique was used to gather data with the criteria, according which 13 companies were obtained as samples, (1) automotive manufacturing companies in 2013 – 2017 listed on the Indonesia Stock Exchange (IDX) (2) automotive manufacturing companies that published the annual reports. Meanwhile, the data were obtained from IDX & published annual reports. The research used a panel data regression panel and data regression model as the analysis technique. The analysis consists of three methods, namely common effect method, fixed-effect and random effect, while the hypothesis testing used t-statistics to test partial regression coefficients and f statistics to test the effect simultaneously at the significance level of 5%. Eventually, the results of the analysis used E-views to show whether: (1) corporate social responsibility (CSR) influences the earnings response coefficient (ERC) and (2) sustainability accounting influences the ERC. The T-test analysis results used E-views to reveal whether CSR and sustainability accounting influence ERC in automotive manufacturing companies listed on the IDX in 2013 – 2017.