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Abstract
This research aimed to examine the effect of environmental performance, environmental disclosure, firm size, and return on equity to the economic performance. The population in this study is a 35 non financial company listed on the Indonesia Stock Exchange. These results indicate that environmental performance (X1), environmental performance (X2), firm size (X3) return on equity (X4) positively influence on economic performance (Y).
Keywords: economic performance; environmental performance; firm size; return on equity; environmental disclosure.
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1. Introduction
Successful business strategies depend on the quality and comprehensiveness of information available to decision-makers. The practice of generating management information such as cost of sales is well established, and the systems employed to produce conventional management reports generally ensure timely availability of high-quality data to management.However, competitive advantage is gained by generating and capitalizing on business information not generally investigated by one's competitors. Comprehensive management information, including information on environmental costs and opportunities, can yield competitive advantage. Typically, environmental costs and associated opportunities are buried in various overhead accounts. By distorting costing and pricing across the business, this practice can result in poor investment and strategic decisions. The term "environmental accounting" is open to interpretation. In this guideline, environmental accounting is the identification, measurement and allocation of environmental costs, the integration of these environmental costs into business decisions, and the subsequent communication of the information to a company's stakeholders(Institute of Management Accountants, 1996). Ikhsan (Ikhsan, 2009) said that environmental issues direct or not, has been included in the economic performance of a business/activity or organization. Environmental Accounting can support national income accounting, ecological accounting at local administration level and at micro level related to financial accounting, cost accounting or internal business managerial accounting. Ferreira (Ferreira, Erasmus, & Groenewald, 2009) stated that the issue of environmental conservation is the duty of every individual, government and company. The company has an important role in creating a good and healthy environment. Similarly, Djajadiningrat (Djajadiningrat, Hendriani, Famiola, & Wisesa, 20İ1) said that the world business (company) must play an active role in redefining its operations in a sustainable direction, because without the intervention of the world business, the world as a whole will not be able to succeed in creating sustainable conditions. Therefore, the emphasis of...