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C. Data Collection Method
This research is using secondary source data. The data are obtained from the company‘s website, which consist of company‘s sustainability report and annual report.
The data collection method in this research is using regression panel data. According to Farah 2011 panel data analysis is method of learning a particular topic from multiple sites
and periodically observed within the prescribed period. Data panel is a technique which combines time series data and cross-section data. The combination of the data enhances the
quality and quantity of the data.
D. Analysis Method
This research will use the method of content analysis. Each type of information of environment indicators in the sustainability report will be scored by using numbers. Zero
numbers for no disclosure of environment indicators in sustainability report and 1 for the revealed disclosure of environment indicators in sustainability report.
The variables in this research will be tested through the method of descriptive analysis and hypothesis testing, as follow as:
1. Descriptive Analysis This study is used to determine the general description of the research data. The
research variables includes environmental risk management, cost of equity, cost of debt, and cost of capital. Description of the variables is presented to determine the
value of mean minimum, maximum, and standard deviation of the variables.
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2. Normality Test Normality test is used to determine the distributed data is normal or not. There are
two ways to test, i.e. the graph analysis and statistical tests Ghozali, 2011.
Graph Analysis When using graph analysis, normality test can be done by looking at the spread of the
data dots on the diagonal axis of the graph or by looking at the histogram from the residual.
1 If the dots spread around the diagonal line and follow the direction of the diagonal line, the regression model meets the normality assumption.
2 If the dots spread away from diagonal lines and or do not follow the direction of the diagonal line, the regression model does not meet the normality assumption.
Statistical test Kolmogorov-Smirnov Z 1 - Sample KS uses for making decision regarding the
normality test. 1 If the value Asymp. Sig. 2-tailed less than 0.05, it means that the data are not
normally distributed 2 If the value Asymp. Sig. 2-tailed of more than 0.05, it means that the data are
normally distributed.
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3. Hypothesis Testing This research uses 1 independent variable and 3 dependent variables. The analysis
method use for the hypothesis testing is simple regression method . Simple regression analysis is a method to measure a linear relationship between
one independent variableX and the dependent variable Y. This analysis is to determine the direction of the relationship whether it is positive or negative relation
between the two variables. For testing the hypothesis is used model as follow by: Y
1
=α + β Env Y
2
= α + β Env Y
3
= α + β Env
Description: Y
1
= Cost of Equity Y
2
= Cost of debt Y
3
= Cost of Capital α = constant
β Env = Beta environment
a. Coefficient Determination R
2
Coefficient determination measures the ability of independent variable Environment risk management elaborate dependent variables Cost of equity, Cost of debt, Cost of
capital. Coefficient determination value shows how much variation in the data can be explained by the regression model built. R
2
has a value range between 0 and 1. If the
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R
2
get near to 1, it means that the regression model is precise or the independent variable can elaborate dependent variable.
b. Partial Regression Test T-Test The T-Test is used to determine whether the independent variable X in the
regression model partially has a significant effect on the dependent variable Y. If the significant T is more than 0,05 so H1,H2, or H3 is rejected. While if significant T
is less than 0,05 so H1,H2, or H3 is accepted. If H1,H2, and H3 are accepted means that there is a significant relationship between independent and dependent variables.
E. Variable Operation
Kategori