The Influence of Green Investment, Environmental Policy, Firm Size, and Leverage on Financial Performance of Energy Companies in Indonesia

Sadira Yaffa Winatahadi; Sri Mulyati

doi:10.55927/eajmr.v4i10.415

Authors

Sadira Yaffa Winatahadi Universitas Islam Indonesia
Sri Mulyati Universitas Islam Indonesia

DOI:

https://doi.org/10.55927/eajmr.v4i10.415

Keywords:

Green Investment, Environmental Policy, Firm Size, Leverage, Financial Performance

Abstract

In an era of global competition and increasing environmental concerns, a company's financial performance is influenced not only by internal factors such as company size and leverage, but also by its commitment to environmental and social management. This study aims to analyze the effect of green investment, environmental policies, company size, and leverage on financial performance. The method used is quantitative with secondary data from 9 energy sector companies listed on the IDX and obtained a PROPER rating during the 2020–2021 period, through purposive sampling. The analysis was conducted using multiple linear regression with a Fixed Effect Model. The results show that company size has a positive and significant effect on financial performance, while green investment, environmental policies, and leverage have no effect.

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