FINANCIAL PERFORMANCE ANALYSIS OF COMPANIES IN INDONESIA WITH SECOND ORDER SEM - PLS METHOD.

Abstract

This study aims to determine the pattern of environmental disclosure, environmental performance and economic performance in manufacturing companies listed on the Indonesia Stock Exchange 2013-2016. This research used second order SEM-PLS method. The results showed that the indicators that can measure the economic performance are the ratio of profitability, solvency ratio and liquidity ratio. The result of hypothesis testing shows that environmental performance has an effect on economic disclosure, environmental disclosure has an effect on economic performance and environmental disclosure mediates environmental performance relation to economic performance. The influence of environmental performance on environmental disclosure is strong, while the influence of environmental performance and environmental disclosure to economic performance is weak. The results of the research inform that the assessment of environmental performance is an important aspect in assessing a company to improve corporate image in the eyes of the public so as to attract investors to invest capital that will impact on improving corporate financial performance