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The effect of environmental performance and CSR on financial performance of manufacturing companies in Indonesia: A market reaction analysis

Author

Listed:
  • Harwidhea Dewantari Putri

    (Master of AccountingStudyProgram, Faculty of Economics and Business, University of Jember, Indonesia)

  • Muhammad Miqdad

    (Master of AccountingStudyProgram, Faculty of Economics and Business, University of Jember, Indonesia)

  • Agung Budi Sulistiyo

    (Master of AccountingStudyProgram, Faculty of Economics and Business, University of Jember, Indonesia)

Abstract

This study aims to analyze the effect of environmental performance and Corporate Social Responsibility (CSR) on financial performance and its impact on market reactions in manufacturing companies listed on Proper 2014-2018. The research method uses path analysis with the SPSS 22 as many as 39 companies listed on the Indonesia Stock Exchange in 2014-2018 with Purposive Sampling. The results showed that environmental performance had no significant effect on financial performance. CSR has no significant effect on financial performance. environmental performance has no significant effect on market reaction. CSR has no significant effect on market reactions. financial performance has a significant effect on market reaction Key Words: ROA, Abnormal Return, Profitability, Company Performance

Suggested Citation

  • Harwidhea Dewantari Putri & Muhammad Miqdad & Agung Budi Sulistiyo, 2020. "The effect of environmental performance and CSR on financial performance of manufacturing companies in Indonesia: A market reaction analysis," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(6), pages 50-57, October.
    • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:6:p:50-57
    DOI: 10.20525/ijrbs.v9i6.913
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