Consistent Environmental Performance: Does It Matter for Achieving Good Financial Performance?

This study examines the impact of environmental performance on financial performance in Indonesia. To improve
the prior results, this study focuses on companies that consistently achieve good environmental performance and
those who do not consistently obtain good performance. The environmental performance measured by
environmental ratings that published through a PROPER Program, while the financial performance is measured
by return on assets, earning per share, and Tobins q. Some control variables included in this study such as firm
age, firm size, leverage, and market share. The study finds that environmental performance is positive significantly
associated with financial performance for the companies that consistently record a good environmental
performance. The more consistent the company�s performance in environmental, the higher the association with
the financial performance.