ENVIRONMENTAL MANAGEMENT ACCOUNTING, ENVIRONMENTAL DISCLOSURE AND PRODUCT INNOVATION TO FIRM VALUE: EVIDENCE FROM INDONESIA

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I Dewa Made Endiana, Putu Edy Arizona, Ni Nyoman Ayu Suryandari, Edy Septian Santosa

Abstract

Phenomenon related to environmental damage becomes an issue of global concern and increasingly widespread environmental damage. There are many aspects that cause increasingly severe environmental damage. The application of environmental management accounting (EMA) will affect the firm value which is reflected by rising stock prices. This study aims to examine the effect of environmental management accounting, environmental disclosure, and product innovation on firm value. The population in this study are manufacturing companies on the IDX following the Company Performance Rating Assessment Program. The sampling technique uses a purposive sampling method. Data collection uses secondary data from IDX and PROPER. The results of this study that manufacturing companies in Indonesia in the period 2016-2018 were able to implement environmental management accounting by allocating appropriate environmental costs and in accordance with their portions so as to increase disclosure of environmental information to the public so as to increase company value. The public assesses that companies that have a good rating in the company ranking in the company performance rating assessment program in environmental management by the Indonesian Ministry of the Environment have good prospects as a place to make investments as indicated by rising company stock prices. On the contrary, product innovation carried out by manufacturing companies is not taken into consideration by investors in valuing companies.

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