ENVIROMENTAL PERFORMANCE OF MANUFACTORY COMPANIES AND ITS EFFECT ON FINANCIAL PERFORMANCE

The Corporate Performance Rating Assessment Program in Environmental Management (PROPER) implemented by The Ministry of Environment provides information on the environmental performance of a company. This program is expected to encourage companies to increase the company's performance of environmental management from the company's activities. The purpose of this study to examine the effect of environmental performance on financial performance. The sample of this research consists of 32 manufacturing companies listed on Indonesia Stock Exchange in the period 2014-2015 with purposive sampling method. Sources of data used are secondary data in the form of financial statements and reports of PROPER assessment results has been published by the Ministry of Environment. This research uses linear regression analysis technique with the instruments of SPSS application. The results showed that the environmental performance of manufacturing companies has no significant effect on financial performance.