PENGARUH SISTEM MANAJEMEN LINGKUNGAN ISO14001, UKURAN PERUSAHAAN, DAN KINERJA LINGKUNGAN TERHADAP KINERJA KEUANGAN

Abstract

This research aims to examine the effect of the environmental management system ISO14001, firm size, and environmental performance on financial performance. The environmental management system, i.e. ISO14001 is measured by a dummy, whereas 1 for the company that has ISO14001 certification and 0 for the company which has not ISO14001 certification. Furthermore, the firm size was measured by natural logarithm from the company’s total assets. The environmental performance was measured based on the ranking in PROPER, from the Ministry of Environment and Forestry (KLKH). The research applies quantitatively. The population consists of Chemical and Basic Industry Manufacturing companies listed on The Indonesia Stock Exchange (IDX) during 2019-2023. Moreover, the data collection technique used purposive sampling, i.e., a sample selection based on the determined criteria. In line with that, there were 73 companies selected as the sample. Totally, there were 164 analysis data. The data analysis technique used multiple linear regressions with the SPSS 26 versions. The result shows that the environmental management system ISO14001 has a positive and significant effect on financial performance. However, both firm size and environmental performance do not affect financial performance.