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Firm Characteristics, Audit Committee, and Environmental Performance: Insights from Indonesian Companies

Author

Listed:
  • Anis Chariri

    (Faculty of Economics and Business, Diponegoro University, Indonesia)

  • Indira Januarti

    (Faculty of Economics and Business, Diponegoro University, Indonesia,)

  • Etna Nur Afri Yuyetta

    (Faculty of Economics and Business, Diponegoro University, Indonesia.)

Abstract

This study aims to investigate the effect of firm size, profile of industry, independent committee audit, and audit committee meetings on environmental performance. The sample consisted of 136 companies listed on the Indonesia Stock Exchanges and receiving PROPER award issued by the Ministry of Environment, Republic of Indonesia in the year 2009-2015. The data were then analyzed using the ordinal logit regression. The findings indicated that profile of industry, independent committee audit, and audit committee meetings positively affected environmental performance. Meanwhile, firm size did not determine environmental performance. The findings imply that companies which want to create environmental performance should consider their profiles of industry and audit committee characteristics (independence and frequency of meetings).

Suggested Citation

  • Anis Chariri & Indira Januarti & Etna Nur Afri Yuyetta, 2017. "Firm Characteristics, Audit Committee, and Environmental Performance: Insights from Indonesian Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 7(6), pages 19-26.
    • Handle: RePEc:eco:journ2:2017-06-3
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    References listed on IDEAS

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    1. Hamzeh Al Amosh & Saleh F. A. Khatib, 2021. "Corporate governance and voluntary disclosure of sustainability performance: the case of Jordan," SN Business & Economics, Springer, vol. 1(12), pages 1-22, December.

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    More about this item

    Keywords

    Environmental Performance; Indonesia; Firm characteristics;
    All these keywords.

    JEL classification:

    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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