PENGARUH ENVIRONMENTAL DISCLOSURE TERHADAP REAKSI PASAR DAN NILAI PERUSAHAAN

Abstract

nancial market in Indonesia. The focus of this study is the impact of environmental disclosure to market reaction and the impact of environmental disclosure tofirm value. This study aims to observe the environmental disclosures status in Indonesia and examine the impact of environmental disclosure to public listed companies in Indonesian Stock Exchange (IDXJ. In this study, the population of the study is all public listed companies in IDX, and the sample is collected from the non-service industry. Purposive judgment sampling method was use to collect the sample. This study is conducted by using the shares data of non service companies in IDX and by doing content analysis to company's annual report. Then regressions analysis is conducted through a series of statistical tests to examine whether environmental disclosure has an impact to market reaction or to firm value. In the regression analysis, control variables arm size and industry) were used the relationship between environmental discoswre and market reaction andfirm value. The test result indicated that the impact of environmental disclosure to market reaction was positive and statistically not significant. The test result also indicated that the impact of environmental disclosure to firm value was negative statistically significant. Thus, all of the test result does not support thefindings of previous researches and proves the relationship between environmental disclosure and financial market are complex and hardly exist. The results also indicate investors andpublic listed companies in Indonesia have little concerti on environmental issues . Keywords: environmental disclosure, abnormal return, firm value, financial market. ABSTRACT