Environmental performance analysis of mining companies in indonesia with SEM-PLS

This study aims to determine the pattern of relationship of environmental performance, environmental disclosure and financial performance. Environmental performance measured by using PROPER, Environmental disclosure measured based on the use of 34 items disclosure by G3 GRI (2006) and financial performance measured by using ROA, ROE and NPM indicators. The sample of this research is mining company listed in Indonesia Stock Exchange in 2011-2015. The statistical method used in this research is Structural Equations Modeling - Partial Least Square (SEM-PLS). The analysis used in SEM-PLS is the outer model (Confirmatory Factor Model, Explanatory Factor Analysis) and Inner Model with boostrapping methods. Outer model in this study using Confirmation Factor Analysis (CFA). CFA results indicate that indicators that are able to measure the financial performance of mining companies in Indonesia is ROA and ROE. Meanwhile, environmental disclosure and environmental performance variables are not analyzed using Confirmatory Factor Analysis because they are measured with one indicator. Results of this study indicates that hypothesis 1 is accepted. In other word, environmental disclosure has a positive effect to financial performance. Hypothesis 2 is accepted, environmental performance has a positive effect on the disclosure of the environment. Moreover, hypothesis 3 is accepted, environmental performance has a financial performance. Hypothesis 4 is accepted, that is, environment disclosure has a mediation effect on the relationship of environmental performance and financial performance