THE INFLUENCE OF ENVIRONMENTAL PERFORMANCE, ENVIRONMENTAL COSTS, AND ENVIRONMENTAL DISCLOSURE ON PROFITABILITY IN THE TIME OF COVID-19

Abstract

This study aims to see the effect of environmental performance, environmental costs, and environmental disclosure on profitability during the COVID-19 period. The population in this study comprises companies in the energy, basic materials, industrials, consumer non-cyclical, consumer cyclical, and healthcare sectors that are always listed on the Indonesia Stock Exchange in 2020–2022. The sample selection technique used purposive sampling and 22 companies were selected. The analytical method used is panel data regression analysis with the help of Econometric Views (Eviews) version 12. This study found that environmental performance and costs have no effect on profitability, while environmental disclosure positively affects profitability. The results of this study are expected for companies to continue to monitor the activities carried out and costs incurred related to the environment, and companies can expand environmental disclosure in accordance with predetermined rules, as a form of environmental responsibility to maintain economic sustainability which will affect increased profitability.