The Effect of Green Process Innovation, Green Product Innovation, Audit Committee Meetings, and Board Meetings on the Financial Performance of Consumer Cyclicals Sector Companies on the Indonesia Stock Exchange in 2021–2024

Putri Nur Indahsyah; Yuyun Isbanah

doi:10.55927/fjmr.v5i7.132

Authors

Putri Nur Indahsyah Universitas Negeri Surabaya
Yuyun Isbanah Universitas Negeri Surabaya

DOI:

https://doi.org/10.55927/fjmr.v5i7.132

Keywords:

Green Process Innovation, Green Product Innovation, Audit Committee Meetings, Board Meetings, Financial Performance

Abstract

This study investigates the effects of green process innovation, green product innovation, audit committee meetings, and board meetings on the financial performance of consumer cyclicals companies listed on the Indonesia Stock Exchange during 2021–2024. Using a quantitative approach, this study analyzed secondary panel data obtained from 89 consumer cyclicals companies, resulting in 345 firm-year observations after outlier elimination. Data were analyzed using panel data regression with STATA 17. The findings reveal that green product innovation and board meetings positively and significantly improve financial performance, whereas green process innovation and audit committee meetings show no significant effects. These results suggest that environmentally friendly product development and effective board oversight contribute more to enhancing firm performance than process-oriented green initiatives and audit committee meeting frequency.

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