The Effect of Environmental Performance on Company Value with Environmental Disclosure as a Mediating Variable

ABSTRACT : This study aims to obtain empirical evidence regarding the effect of environmental performance on company value with environmental disclosure as a mediating variable. This research was conducted at companies belonging to the mining sector in the Indonesia Stock Exchange in 2014-2018. The method of determining the sample used is using purposive sampling with the criteria of companies that publish annual reports and follow PROPER for consecutive 2014-2018 so that 35 observations are obtained. The data analysis technique used is path analysis. Based on the results of the study, it is known that the environmental performance proxied by PROPER has a positive effect on environmental disclosure. Environmental performance has a positive effect on company value. Environmental disclosure that is proxied by the GRI index has a positive effect on company value. Environmental disclosure is able to mediate the effect of environmental performance on company value.
KEYWORDS: environmental performance, environmental disclosure, company value