Proceedings of the First International Conference of Economics, Business & Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia

Research Article

How Does Financial Performance Effect Environmental Investment and How Do Foreign Ownership Moderate It?

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  • @INPROCEEDINGS{10.4108/eai.1-10-2020.2305582,
        author={Yuztitya  Asmaranti and Lindrianasari  Lindrianasari and Kiagus  Andi and Alvira Putri Chairunnisa},
        title={How Does Financial Performance Effect Environmental Investment and How Do Foreign Ownership Moderate It?},
        proceedings={Proceedings of the First International Conference of Economics, Business \& Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia},
        publisher={EAI},
        proceedings_a={ICEBE},
        year={2021},
        month={4},
        keywords={environmental investment financial performance foreign ownership},
        doi={10.4108/eai.1-10-2020.2305582}
    }
    
  • Yuztitya Asmaranti
    Lindrianasari Lindrianasari
    Kiagus Andi
    Alvira Putri Chairunnisa
    Year: 2021
    How Does Financial Performance Effect Environmental Investment and How Do Foreign Ownership Moderate It?
    ICEBE
    EAI
    DOI: 10.4108/eai.1-10-2020.2305582
Yuztitya Asmaranti1,*, Lindrianasari Lindrianasari1, Kiagus Andi1, Alvira Putri Chairunnisa1
  • 1: University of Lampung
*Contact email: yuztitya@yahoo.com

Abstract

The purpose of this study is to examine whether financial performance affects environmental investment. Furthermore, this study examines whether foreign ownership moderates the financial performance of the environmental investment. This study tries to contribute to the response of mining companies in Indonesia in preserving the environment by investing in the environment. The method used in this study is multiple linear regression. The number of samples of this study is 195, which are mining companies in Indonesia published in 2014-2018. The results of this study indicate that mining companies in Indonesia have a relatively low response in making environmental investments. However, this study indicates that financial performance affects environmental investment and foreign ownership moderates the financial performance of the environmental investment. The implication of this research is the important role of the government to encourage mining companies in Indonesia to invest in the environment.