THE INFLUENCE OF ENVIRONMENTAL COSTS, ENVIRONMENTAL PERFORMANCE AND FIRM SIZE ON FINANCIAL PERFORMANCE WITH ENVIRONMENTAL DISCLOSURES AS AN INTERVENING VARIABLE

This study aims to prove and analyze the Effect of Environmental Costs, Environmental Performance, and Company Size on Financial Performance with Environmental Disclosure as an Intervening Variable. Testing is carried out by looking at direct and indirect influences. The use of samples in this study was obtained by purposive sampling method in mining sector companies listed on the Indonesia Stock Exchange in 2019-2023, obtained a PROPER rating in 2019-2023, and made environmental disclosures in the GRI G-4 format. The testing and analysis techniques used are panel data and Sobel test with the help of SPSS 25 test tools. The direct test results produce evidence that environmental performance and company size directly affect financial performance, environmental performance affects environmental disclosure, while environmental costs and environmental disclosure do not affect financial performance, environmental costs and company size do not affect environmental disclosure. The indirect test results produce evidence that environmental disclosure mediates environmental costs, environmental performance and company size on financial performance. The results of this study indicate several implications, including, for companies, they should start to manage the environment well, for example by carrying out environmental performance such as waste and waste management and disclosing environmental performance results as widely as possible in the annual report. This is able to provide important information for stakeholders and the community as additional references in decision making. The results of this study support the theory of legitimacy and stakeholders. Keywords: Company Size, Environmental Costs, Environmental Disclosure, Environmental Performance, Financial Performance.