ENHANCING FINANCIAL PERFORMANCE THROUGH ENVIRONMENT PERFORMANCE AND CORPORATE SOCIAL RESPONSIBILITY

Maya Indriastuti (Faculty of Economics, Universitas Islam Sultan Agung (UNISSULA))
Naila Najihah (Sultan Agung Islamic University)

Trikonomika: Jurnal Ekonomi
Vol 19 No 2 (2020): December Edition

This study examined the effect of environmental performance on financial performance with corporate social responsibility as a mediating variable for 234 manufacturing companies listed on the Indonesia Stock Exchange in 2013-2018. Multiple linier regression was used to examine for the effect of environmental performance on financial performance. Sobel test was used to examine for the role of corporate social responsibility as a mediating variable. Results indicate that that environmental performance and corporate social responsibility have a positive effect on financial performance. In addition, corporate social responsibility is able to mediate the effect of environmental performance on financial performance.