The Effect of Environmental Performance on the Return On Assets and Corporate Value based on the Tobin's Q Method as a Moderating Variable on Syariah Company in the group index of Sri-Kehati

Abstract

Environmental performance is very important for the internal and external companies it affects the return on assets because, with Return On Assets high to be followed by high profitability, and the higher the stock price the higher the value of the company, to achieve the company's value generally investors hand over its management to professionals. environmental performance can be measured by PROPER (Program for Environmental Performance) and the company's value is measured using Tobin's Q ratio This study aims to determine the effect of environmental performance on Return On Assets with the value of the company by the method of Tobin's Q as moderating variable. The method used in this research is descriptive. Population in this study are all companies listed in PROPER (Program for Environmental Performance). Methods of sampling performed by the sampling method and based on predetermined criteria, the number of samples in five consecutive years from 1908 the company there are 14 companies which include companies sharia listed in the Jakarta Islamic Index (JII) group index SRI-Care static in the period 2010 to 2014. The research data is secondary data. Testing the hypothesis of the study used a simple analysis techniques and MRA (Moderated Regression Analysis), the software tool SPSS (Statistical Product and Service Solutions). The results showed that: The environmental performance have a significant effect on Return On Assets, viewable by quantitative analysis that produces tcount 1,987 and ttable 1.667. This shows the degree of influence of the environmental performance of the return on assets of 5.4%. Then the value of companies as a moderating variable strengthens the influence of the environmental performance of the return on assets of 9.1%. It is seen from the change in value Rsquare to 14.5%. Return on assets that can increase the value of the company, drawn from rising corporate profits.