Published date:Feb 06 2020

Journal Title: KnE Social Sciences

Issue title: The 6th International Conference on Entrepreneurship (ICOEN) 2019

Pages:242–249

DOI: 10.18502/kss.v4i3.6408

Fanny Septinafanny.septina@yahoo.comInternational Business Management, Universitas Ciputra Surabaya

This study analyzes the returns volatility of ISAT and MEDC in context of green investment. These two stocks are member of SRIKEHATI index. SRIKEHATI is an index containing stocks that concern on environment, social and governance. The period of analysis cover 2009-2014 the focus of the study is on three measures of price earning ratio (PER) and fundamental performance indicator, environment activities disclosure in sustainability report was done. Results show that return volatility of ISAT affects return index of SRIKEHATI significantly, but not for MEDC. ISAT has experienced decreasing profit that continued to a loss, inconsistent reporting environment activities in the sustainability report. MEDC has experienced decreasing of profit but did not lead into a loss. MEDC is also consistent in reporting environment-related activities through publishing sustainability reports.

Keywords: green finance; green investment; SRI-KEHATI index; ISAT; MEDC

[1] Barnea, A., Heinkel, R., & Kraus, A. (2003). Green Investors And Corporate Investment.

[2] Bodie, Z., Kane, A., & Marcus, A. J. (2011). Investments and Portfolio Management, Ninth Edition, Singapore: McGraw-Hill Irwin.

[3] Chowdury, T., Datta, R., & Mohajan, H. (2013). Green Finance Is Essential For Economic Development And Sustainability. International Journal of Research In Commerce, Economics & Management, Vol. 3 (2013), No.10 (October).

[4] Eccles, R.G., Ioannou, I., & Serafeim, G. (2018). The Impact of Corporate Sustainability on Organizational Processes and Performance. Electronic copy available at: http://ssrn.com/abstract=19640, access on August, 10th, 2018.

[5] Eichholtz, P., Kok, N., & Yonder, E. (2012). Portfolio Greenness And Financial Performance Of REITs. Journal Of International Money And Finance XXX (2012) 1–19.

[6] Ganda, F., Ngwakwe, C.C., & Ambe, C. (2015). The Role of Corporate Green Investment Practices On Sustainable Development. Environmental Economics, Vol. 6, Issue 1.

[7] G20. Green Finance Synthesis Report, 5 September 2016, G20 Green Finance Study Group.

[8] Indosat. (2017). https://indosatooredoo.com/en/investor-relation/informasi-keuangan/laporan-tahunan. Access on June 2017.

[9] Indosat. (2011). Laporan Tahunan 2011. Access on September 2017: https://indosatooredoo.com/en/investor-relation/informasi-keuangan/laporan-keuangan

[10] Indosat. (2012). Laporan Tahunan 2012. Access on September 2017: https://indosatooredoo.com/en/investor-relation/informasi-keuangan/laporan-keuangan

[11] Indosat. (2013). Laporan Tahunan 2013. Access on September 2017: https://indosatooredoo.com/en/ investor-relation/informasi-keuangan/laporan-keuangan

[12] Indosat. (2014). Laporan Tahunan 2014. Access on September 2017: https://indosatooredoo.com/en/ investor-relation/informasi-keuangan/laporan-keuangan

[13] Lindenberg, Nannette. (2014). Definition of Green Finance. German Development Institute/Deutsches Institut fur Entwicklungspolitik (DIE).

[14] Medco. (2017). Laporan Keberlanjutan 2014. http://www.medcoenergi.com/id/subpagelist/view/35 accessed July 2017.

[15] Kehati Foundation. (2017). http://www.kehati.or.id/indeks-sri-kehati/ accessed 24 Januari 2017-07-10.

[16] Sustainability Report. http://sra.ncsr-id.org/indosat/. Access on July 2017.

[17] The UNEP, AsrlA, International Finance Corporation. (2015). Towards a Sustainable Financial System in Indonesia. UNEP.

[18] Volz, Ulrich. (2016). Fostering Green Finance in Asia. German Development Institute/Deutsches Institut fur Entwicklungspolitik. DIE.

[19] Zulkafli, A.H., Ahmad, Z., & Ermal, E. The Risk And Return Profiles Of SRI In Indonesia: A Study On Sri Kehati Index. Journal Of Insurance And Financial Management, Vol. 2, Issue 2 (2016) 1–17.

[20] www.bi.go.id

[21] www.financeyahoo.com

[22] www.idx.co.id

[23] www.investing.com