The influence of return on equity, stock performance and environmental risk management to corporate sustainability performance: Indonesia’s basic industry and chemicals, mining, and consumer goods firms
This research aims to analyze the influence of Return on Equity, Stock Performance and Environmental Risk Management towards Corporate Sustainability Performance. This research uses samples on Indonesia’s companies within the basic industry and chemicals, mining, and consumer goods sector that are listed on Indonesia Stock Exchange and have published annual reports and sustainability report for the period of 2017-2019. Independent variable in this research is corporate sustainability performance, measured by GRI standards application. Company’s financial performance measured by Return on Equity (ROE), stock performance, and environmental risk management act as the dependent variable in this research. Lastly, control variables are firm size and age. There are 3 hypotheses in total that will be tested in this research. Data analysis result are taken from the use of GRETL. Result of this research stated that Return on Equity and environmental risk management significantly affects the company’s sustainability performance by using Heteroscedasticity-corrected model.
