The influence of environmental performance, environmental costs, and firm size on financial performance with corporate social responsibility as intervening variables (empirical study on manufacturing companies listed on the Indonesia stock exchange 2014-2018)

Abstract

This study aims to determine (1) the effect of environmental performance on financial performance, (2) the effect of environmental costs on financial performance, (3) the effect of firm size on financial performance, (4) the effect of Corporate Social Responsibility (CSR) on financial performance, (5) CSR as a mediator in the influence of environmental performance on financial performance, (6) CSR as a mediator in the influence of environmental costs on financial performance, and (7) CSR as a mediator in the influence of company size on financial performance. This research is included in comparative causal research. The population of this research is manufacturing companies listed on the Indonesia Stock Exchange in 2014-2018. By using a purposive sampling method, 52 companies meet the criteria with a total of 104 data sets. The data analysis technique used is a simple linear regression analysis and path analysis. The results of this study indicate that (1) environmental performance does not affect financial performance, (2) environmental costs negatively affect financial performance, (3) company size has a positive effect on financial performance, (4) CSR has a positive effect on financial performance, (5) CSR is able to mediate the influence of environmental performance on financial performance, (6) CSR is not able to mediate the relationship of environmental costs to financial performance, and (7) CSR is able to mediate the influence of firm size on financial performance.