NEW CRITERIA FOR GREEN INDUSTRY BASED ON FINANCIAL DISTRESS

Companies that receive green industry awards should be healthy companies in terms of capital and technology.However, some companies that have financial issues have also won green industry awards.The purpose of this study is to discover additional variables that supplement existing green industry variables in Indonesia.This study applies a discriminant analysis method to investigate 14 companies that received green industry awards in 2017.Using financial distress criteria, new green industry criteria were proposed.The findings of this study indicate that ten of the companies tested were not in financial distress, while the remaining four had varying degrees of financial distress.This study proposes that financial ratio variables like accounts receivable turnover, working capital turnover and returns on equity be used as new criteria to test the health of green Industry companies.