DOES ECO-EFFICIENOY REDUCE THE COST OF EQUITY CAPITAL ?

摘要

The purpose of this study is to examine the impact of eco-efficiency on the cost of equity capital on manufacturing companies listed on the Indonesia Stock Exchange period from 2013 to 2017. Eco-efficiency is proxied by a dummy variable with a maximum value of 1 representing the company implementing ISO 14001 and with a minimum value of 0 representing a company that does not implement ISO 14001. Cost of equity capital is proxied with price earnings growth ratio. This study uses secondary data with purposive sampling techniques. The samples used in this study were 55 companies with a total observation of 275 data. The research data were analyzed by panel data regression analysis using Eviews 9. Our results show that eco-efficiency implementations have a negative effect on the cost of equity capital.