CULTURAL AND NATURAL HERITAGE CONCERNS AND COST OF EQUITY: CASE OF GLOBAL CEMENT AND CEMENT-RELATED INDUSTRIES

• Main Author: Hidayati, Nurul
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/84041
• Institution: Institut Teknologi Bandung

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 expecting to participate in the world sustainable development target. One of the SDG 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. The regression analysis result is significant on three model of Cost of Equity which are CAPM Bloomberg, Market Model, and Averaged. 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, with every increase of one Standard Deviation (SD) in cultural and natural heritage score/index, there will be a decrease approximately 0.22% up to 0.31% in cost of equity. Implication of these finding is that cultural and natural heritage issue can be a threat for the company image as well can influence various aspects of company activities include economic aspect, if it is not well managed. Therefore, companies should start concern on any decision and perception which can be depicted in its each cost of equity