Cultural and Natural Heritage Concerns and Cost of Equity: Case of Global Cement and Cement-Related Industries
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 05
Abstract
In recent business landscape, term of Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) is interesting for many investors who concern on that. By implementing SDGs and ESG, investors and companies are expect to participate in the world sustainable development target. One of the SDG metric is strengthen efforts to protect and safeguard the world’s cultural and natural heritage. With the 75 samples of cement and cement-related company across the world, this thesis delves into the nuanced of relationship between cultural and natural heritage issues and its cost of equity. Recognizing the profound impact of cultural and natural heritage concerns on corporate reputation, social license to operate, as well investor’s perception, this research endeavors to elucidate the intricate interplay between these variables through research approach encompassing quantitative methodologies. The result of this research is showing that cultural and natural heritage issue is negatively correlate to the cost of equity which means the better the cultural and natural heritage score of a company, the lower its cost of equity among its peers. The regression analysis result in P-Value 0.016; coefficient -6.12 for cultural and natural heritage index impact to cost of equity (in market model) and in P-Value 0.033; coefficient -5.30 for cultural and natural heritage index impact to cost of equity (in Bloomberg CAPM), which considered significant. Implication of these finding are that cultural and natural heritage issue can be a threat for the company image as well can influence various aspects of company activities, if it is not well managed. Therefore, companies should start concern on any cultural and natural heritage since it has significant implication for investor’s decision and perception which can be depicted in its each cost of equity.
Authors and Affiliations
Nurul Hidayati, Yunieta Anny Nainggolan,
Keywords
Related Articles
- EP ID EP735820
- DOI 10.47191/ijcsrr/V7-i5-83
- Views 39
- Downloads 0
Design of Business Ecosystem Mapping in the Black Soldier Fly Industry of Bandung City
BSF (Black Soldier Fly) maggot cultivation is an alternative organic waste management that is growing rapidly in the city of Bandung. This research aims to design a business ecosystem map for the BSF maggot cultivation i...
Green Disclosure and Innovation to Corporate Loan: Case of LQ45 Index Companies
Following the Paris Agreement on Climate Change, Indonesia committed to reducing greenhouse gas emissions by 29% through its own efforts and 49% with international support. To achieve this, the Indonesian government is a...
Cost Optimization and Risk Management Program for the Fuel Supply Network in an Oil & Gas Swamp Operation
Marine activity is a critical part of an oil & gas company that operates in the swamp area. The company utilizes rigs, barges, and boats to achieve maximum production. Fuel supply for marine fleets is highly essential to...
Moderation of Life Style on the Influence of Financial Literacy and Self-Control on the Saving Behavior of Millennial Employees in Denpasar City
This study aims to analyze the influence of financial literacy and self-control on the saving behavior of millennial employees, as well as the moderating role of lifestyle in the relationship. Financial literacy, which i...
The Effect of Digital Literacy and Printed Books on Student Learning Outcomes in Elementary School Gugus 2 Tlanakan Indonesia
This study aims to (1) analyse the effect of digital literacy and printed books on student learning outcomes in the area of Gugus 2 Tlanakan Sub-district, Pamekasan Regency. (2) To analyse the effect of digital literacy...