Environmental costs negatively impact financial performance of mining companies.
The study looked at factors influencing financial performance in mining companies in Indonesia from 2014 to 2019. They examined leverage, firm size, capital structure, intellectual capital, and environmental costs. Results showed that only environmental costs had a significant negative impact on financial performance. Other factors like leverage, firm size, and capital structure did not affect financial performance. This suggests that companies need to balance environmental responsibilities with financial goals to maintain performance. Future research could explore different variables, extend the study period, or include more companies for varied results.