Environmental Performance Encourages Return Investment In Consumption Companies: Case Islamic Stock Indonesia (2016-2020)

Title : Environmental Performance Encourages Return Investment In Consumption Companies: Case Islamic Stock Indonesia (2016-2020)

Authors :
1. Ihda Fransiska Khoirotun Nisa
2. Sylva Alif Rusmita
3. Erina Sudaryati

Department : Ekonomi Islam

Journal Name : JEBIS:Jurnal Ekonomi dan Bisnis Islam

Kinds of Journal : Terakreditasi S1 atau S2

ABSTRACT

As khalifah(leader),human beingsare supposed toguard the earth. In this modern era, one way to do it can be by supporting the companies that maintain theirenvironmental performance.As Muslims invest in Islamic indexes, they can take care of the earth at the same time.Therefore,this study aimsto examine the behaviorof investorsin the environmental performance of companieslisted in the Islamicindex. The dependent variables are stock return,and the independent are market value added(MVA), PROPER value, and return on equity (ROE). The sample of this study is consumption companies registered with Indonesia IslamicStock Index (ISSI)from2016to 2020. There are 90 observational data in this study. Using the multiple regression analysis techniques,this study confirmsthat there is a significant positive effect of the PROPER and ROE on stock returns.At the same time,the MAV has no significant positive effect on stock returns. Many other variablesshould be investigated further regarding their effect on stock return in consumer goodscompanies, such as NPM, ROA, and DER. Investorsmay consider index PROPER as the benchmark for investment in Islamic stock. There is a high potential return based on environmental performance.If the company's PROPER value is good,then there is also an indication of a high investment return.

For details : https://e-journal.unair.ac.id/JEBIS/article/view/31277