Environmental Management Activity toward Financial Performance in Indonesian Mining Companies

Abstract

The objective of this study is to determine the influence of environmentalmanagement activity based on Indonesia’s statement of financial accountingstandards number 33, namely accounting for mining towards the financial performanceof Indonesian mining companies. The measurement of environmentalactivity was proxied by three environmental activity. They are disclosure of strippingcosts in the production phase, exploration and evaluation of assets and environmentalmanagement on general mining.There are 41 samples of this research consisting of all mining companies in Indonesiathat have fulfilled the sample criteria from 2011 until 2013. The data on thisresearch was tested by multiple linear regression. The result of this researchshowed that the stripping costs in the production phase and environmental managementon general mining had significantly positive effects on financial performance,while exploration and evaluation assets had significantly negative effectson financial performance.This study shows that the cost to acquire the best technology that companies usewhen performing exfoliating ground at the beginning of production activitybrings a positive performance for the company. Similarly, environmental managementimplemented in the company also had a positive impact for the survivalof the company. These results indicate that the company implemented best act inthe management of the environment, increasing the company's performance. Theconsequence of all this is the sustainability of the company is increasingly assured