THE EFFECT OF ENVIRONMENTAL COST AND ASSURANCE PROVIDER ON FIRM VALUE

Delima Putri Prastiwi, Abd Rohman Taufiq, Richo Diana Aviyanti

Abstract


This study aims to examine the effect of environmental cost and assurance provider on firm value in companies listed on the Indonesia Stock Exchange. This study uses a quantitative method with secondary data in the form of annual reports and sustainability reports. The sample was determined using purposive sampling, resulting in 78 companies with 312 observation data. The data were analyzed using descriptive statistics, classical assumption tests, multiple linear regression, and hypothesis testing. The results show that environmental cost and assurance provider have no effect on firm value. This finding indicates that environmental expenditure and the involvement of assurance providers have not been fully perceived as a positive signal by investors, so they have not provided a strong response in shaping firm value. 

Keywords: Environmental Cost, Assurance Provider, Firm Value

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References


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