Authors : Movie Rahmatica Suryani, Wiwiek Dianawati 1
1.Department of Accounting, Airlangga University, Surabaya, Indonesia
Abstract:
The main objective of this research is to demonstrate empirically the effect of environmental commitment on financial performance through green innovation in the manufacturing companies listed on the Indonesia Stock Exchange (IDX). This research was conducted by examining the effect of environmental commitment that refers to ISO 14001 as an independent variable on financial performance of the company that uses return on equity (ROE) as a dependent variable through green process innovation and green product innovation as a mediating variable .
Samples were taken from the financial statements of companies listed in Indonesia Stock Exchange (IDX) in 2014-2016. The sample was selected using census sampling method and acquired 202 companies. Using SPSS version 20 with the method of path analysis completed by hierarchical regression analysis with a significance level of 5% specified.
The results of this study show that environmental commitment has positive and significant effect on financial performance mediated by green process innovation, but green product innovation has not succeeded in mediating the effect of environmental commitment on financial performance.
