Pengaruh Biaya Lingkungan dan Profitabilitas terhadap Dampak Lingkungan Pertunjukan

Abstract

This study aims to analyze the influence of environmental costs and profitability on environmental performance in Indonesian companies. This study is motivated by the phenomenon where many companies allocate environmental costs, but their effectiveness in improving environmental performance is still questionable. Using the Weighted Least Squares (WLS) method to address heteroscedasticity, this study examines the relationship between these variables using secondary data from company financial reports. The results show that Environmental Costs have no significant effect on Environmental Performance, indicating that environmental spending is often used as a legitimacy tool rather than as a real desired strategy. ROE has a significant negative effect on Environmental Performance, indicating that companies with high profitability are more focused on achieving profits than on environmental investments. In contrast, Company Size has a significant positive effect on Environmental Performance, confirming that large companies are better able to implement environmental policies because they have more resources and face greater stakeholder pressure. This study has implications for regulators to increase transparency in environmental spending and for investors in considering the desired aspect in their investment decisions