The Influence of Environmental Cost on Profitability and Firm Value

A Study of First Section Chemical Companies Listed on Japan Stock Exchange in 2016 – 2018

DOI

10.2991/aebmr.k.210928.054How to use a DOI?

Keywords

environmental cost, profitability, firm value

Abstract

Environmental cost is a set of methods to measure the total environmental conservation cost. The purpose of this study is to examine the influence of environmental cost towards profitability measured by ROA, ROE, and NPM, and firm value measured by PER and Tobin’s Q. The type of this research is explanatory with a quantitative approach. The object of this study is First Section Chemical Companies listed on the Japan Stock exchange in 2016-2018. The study uses 20 chemical companies with 60 samples of environmental accounting data from sustainability and annual report. The data analysis technique is a descriptive analysis and a simple regression. The results show that (1) environmental cost has a significant negative effect on return on asset, (2) environmental cost has a significant negative effect on return on equity, (3) environmental cost has a significant negative effect on net profit margin, (4) environmental cost has no significant effect towards price-earnings ratio, and (6) environmental cost has significant negative effect towards Tobin’s Q.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Tsabitah Dinniyah
AU  - Nila Firdausi Nuzula
PY  - 2021
DA  - 2021/09/30
TI  - The Influence of Environmental Cost on Profitability and Firm Value
BT  - Proceedings of the 3rd Annual International Conference on Public and Business Administration (AICoBPA 2020)
PB  - Atlantis Press
SP  - 277
EP  - 280
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210928.054
DO  - 10.2991/aebmr.k.210928.054
ID  - Dinniyah2021
ER  -