Do Environmental Compliances Reduce Agricultural Profitability? An Inference from Indonesia

This research seeks to find the effect of environmental compliances on profitability in the agricultural business sector. This research is quantitative by testing the nexus between environmental compliances (environmental cost and reputational incentive) and agricultural profitability. The sample of...

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Autores principales:	Abbas Ahmad, Triani Neks, Nabila Syahrir Sasmita, Ayu Frihatni Andi
Formato:	article
Lenguaje:	EN FR
Publicado:	EDP Sciences 2021
Materias:	Environmental sciences GE1-350
Acceso en línea:	https://doaj.org/article/f9b1601ce9f943b893c0c6a2a8ad59ef
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spelling	oai:doaj.org-article:f9b1601ce9f943b893c0c6a2a8ad59ef2021-11-08T15:19:28ZDo Environmental Compliances Reduce Agricultural Profitability? An Inference from Indonesia2267-124210.1051/e3sconf/202131604006https://doaj.org/article/f9b1601ce9f943b893c0c6a2a8ad59ef2021-01-01T00:00:00Zhttps://www.e3s-conferences.org/articles/e3sconf/pdf/2021/92/e3sconf_iconard2021_04006.pdfhttps://doaj.org/toc/2267-1242This research seeks to find the effect of environmental compliances on profitability in the agricultural business sector. This research is quantitative by testing the nexus between environmental compliances (environmental cost and reputational incentive) and agricultural profitability. The sample of this study identified agricultural public firms in Indonesia including five sub-sectors consisting of farming, fisheries, livestock, plantation, and forestry. Financial statements and annual reports in terms of the environment were utilized in this research. Final samples were 12 public agricultural companies. The research model was analysed using the regression with common, fixed and random effect models and were checked the robustness using Generalized Method of Moment (GMM). The result of this research found no effects on the nexus between environmental cost and profitability. It indicates that the environmental cost spent by agricultural firms doesn’t reduce the profitability. The emerging effect can be found on reputational incentive leading the increase into the extent of agricultural profitability both return on assets and return on equity.Abbas AhmadTriani NeksNabila Syahrir SasmitaAyu Frihatni AndiEDP SciencesarticleEnvironmental sciencesGE1-350ENFRE3S Web of Conferences, Vol 316, p 04006 (2021)
institution	DOAJ
collection	DOAJ
language	EN FR
topic	Environmental sciences GE1-350
spellingShingle	Environmental sciences GE1-350 Abbas Ahmad Triani Neks Nabila Syahrir Sasmita Ayu Frihatni Andi Do Environmental Compliances Reduce Agricultural Profitability? An Inference from Indonesia
description	This research seeks to find the effect of environmental compliances on profitability in the agricultural business sector. This research is quantitative by testing the nexus between environmental compliances (environmental cost and reputational incentive) and agricultural profitability. The sample of this study identified agricultural public firms in Indonesia including five sub-sectors consisting of farming, fisheries, livestock, plantation, and forestry. Financial statements and annual reports in terms of the environment were utilized in this research. Final samples were 12 public agricultural companies. The research model was analysed using the regression with common, fixed and random effect models and were checked the robustness using Generalized Method of Moment (GMM). The result of this research found no effects on the nexus between environmental cost and profitability. It indicates that the environmental cost spent by agricultural firms doesn’t reduce the profitability. The emerging effect can be found on reputational incentive leading the increase into the extent of agricultural profitability both return on assets and return on equity.
format	article
author	Abbas Ahmad Triani Neks Nabila Syahrir Sasmita Ayu Frihatni Andi
author_facet	Abbas Ahmad Triani Neks Nabila Syahrir Sasmita Ayu Frihatni Andi
author_sort	Abbas Ahmad
title	Do Environmental Compliances Reduce Agricultural Profitability? An Inference from Indonesia
title_short	Do Environmental Compliances Reduce Agricultural Profitability? An Inference from Indonesia
title_full	Do Environmental Compliances Reduce Agricultural Profitability? An Inference from Indonesia
title_fullStr	Do Environmental Compliances Reduce Agricultural Profitability? An Inference from Indonesia
title_full_unstemmed	Do Environmental Compliances Reduce Agricultural Profitability? An Inference from Indonesia
title_sort	do environmental compliances reduce agricultural profitability? an inference from indonesia
publisher	EDP Sciences
publishDate	2021
url	https://doaj.org/article/f9b1601ce9f943b893c0c6a2a8ad59ef
work_keys_str_mv	AT abbasahmad doenvironmentalcompliancesreduceagriculturalprofitabilityaninferencefromindonesia AT trianineks doenvironmentalcompliancesreduceagriculturalprofitabilityaninferencefromindonesia AT nabilasyahrirsasmita doenvironmentalcompliancesreduceagriculturalprofitabilityaninferencefromindonesia AT ayufrihatniandi doenvironmentalcompliancesreduceagriculturalprofitabilityaninferencefromindonesia
_version_	1718441912089706496

Do Environmental Compliances Reduce Agricultural Profitability? An Inference from Indonesia

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