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The Influence of Environmental Aspects on Company Market Valuation

The Influence of Environmental Aspects on Company Market Valuation

Title: The Influence of Environmental Aspects on Company Market Valuation

Authors: Aryo Bimo Setya Permana

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This study aims to examine the influence of environmental aspects on corporate market valuation. This study used 860 samples from 172 high-profile industrial companies listed on the Indonesia Stock Exchange (IDX) during the 2014-2018 period. The influence of environmental aspects on market valuation was tested using multiple linear regression. This study found that the environmental aspects tested significantly influenced corporate market valuation. A negative influence occurred for environmental expenditures, while a positive influence occurred for environmental departments and carbon emission disclosures. This study is expected to provide capital market investors, particularly in Indonesia and developing countries in general, with insights into investor preferences for several environmental aspects and their implications for corporate market valuation.

Keywords: Environmental aspects, environmental disclosure, market valuation.

Sources: http://repository.unair.ac.id/97943/