The Moderating Effect of Competitive Business Strategy on Corporate Environmental Performance and Corporate Carbon Emission Disclosure Towards Corporate Financial Performance

Abstract

The purpose of this research is to examine the effect of corporate environmental performance and corporate carbon emission disclosure toward corporate financial performance with competitive business strategy as moderating variable. The research design is quantitative methods using secondary data, which is data from the sustainability report of 18 go public companies listed on the Indonesia stock exchange from 2015 to 2017, with 54 units of analysis for the period of 2015-2017. The data analysis used in this research was multiple linear regression with data panel, which is processed by using SPSS. The results show that: (i) corporate environmental performance has a positive and significant effect towards the corporate financial performance; (ii) corporate carbon emission disclosure has not a significant effect towards the corporate financial performance; (iii) competitive business strategy strengthens the effect of corporate environmental performance towards the corporate financial performance; (iv) competitive business strategy has not effect of corporate carbon emission disclosure towards the corporate financial performance. This research contributes to provide the corporate environmental performance literature, corporate carbon emission disclosure literature, and corporate financial performance literature. The results of this study can contribute to making consideration for go public companies to consider whether corporate carbon emission disclosure are needed or not in the direction of the corporate financial performance.

Keywords: Competitive Business Strategy, Corporate Environmental Performance, Corporate Carbon Emission Disclosure, Corporate Financial Performance.

DOI: 10.7176/JESD/10-6-13

Publication date:March 31^st 2019