Research Article
How Does Financial Performance Effect Environmental Investment and How Do Foreign Ownership Moderate It?
@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
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.