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Do Firm and Board Characteristics Affect Carbon Emission Disclosures?

Author

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  • Erwin Saraswati

    (Department of Accounting, Faculty of Economics and Business, Brawijaya Universitas, Indonesia.)

  • Nadia Rani Puspita

    (Department of Accounting, Faculty of Economics and Business, Brawijaya Universitas, Indonesia.)

  • Ananda Sagitaputri

    (Department of Accounting, Faculty of Economics and Business, Brawijaya Universitas, Indonesia.)

Abstract

This research examines how profitability, company size, board independence, and board gender diversity affect carbon emission disclosures in Indonesian companies. The sample of this study consists of 36 manufacturing companies which were consecutively listed on Indonesian Stock Exchange from 2015 to 2018. The carbon emission disclosures were measured using a disclosure checklist consisting of 18 items. Using multiple regression analysis, this study found that carbon emission disclosures are greater in more profitable and larger companies. This suggests that financial resources availability and the political visibility can increase carbon emission disclosures. This study also finds that carbon emission disclosures are greater in companies with a large portion of independent commissioners and female directors. This supports the legitimacy and stakeholder theories that a more independent and diversified board will be more able to manage different stakeholder expectations. The findings can provide evidence to companies about how to increase their carbon emission disclosures, which can consequently help the government to control the national carbon emissions.

Suggested Citation

  • Erwin Saraswati & Nadia Rani Puspita & Ananda Sagitaputri, 2021. "Do Firm and Board Characteristics Affect Carbon Emission Disclosures?," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 14-19.
    • Handle: RePEc:eco:journ2:2021-03-3
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    References listed on IDEAS

    as
    1. Lyton Chithambo & Venancio Tauringana, 2014. "Company specific determinants of greenhouse gases disclosures," Journal of Applied Accounting Research, Emerald Group Publishing, vol. 15(3), pages 323-338.
    2. Jose-Manuel Prado-Lorenzo & Isabel-Maria Garcia-Sanchez, 2010. "The Role of the Board of Directors in Disseminating Relevant Information on Greenhouse Gases," Journal of Business Ethics, Springer, vol. 97(3), pages 391-424, December.
    3. Mohammad Nasih & Iman Harymawan & Yuanita Intan Paramitasari & Azizah Handayani, 2019. "Carbon Emissions, Firm Size, and Corporate Governance Structure: Evidence from the Mining and Agricultural Industries in Indonesia," Sustainability, MDPI, vol. 11(9), pages 1-14, April.
    4. Faisal Faisal & Erika Dwi Andiningtyas & Tarmizi Achmad & Haryanto Haryanto & Wahyu Meiranto, 2018. "The content and determinants of greenhouse gas emission disclosure: Evidence from Indonesian companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1397-1406, November.
    5. Lyton Chithambo & Venancio Tauringana, 2014. "Company specific determinants of greenhouse gases disclosures," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 15(3), pages 323-338, November.
    6. Janice Hollindale & Pamela Kent & James Routledge & Larelle Chapple, 2019. "Women on boards and greenhouse gas emission disclosures," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(1), pages 277-308, March.
    7. Patten, Dennis M., 2005. "The accuracy of financial report projections of future environmental capital expenditures: a research note," Accounting, Organizations and Society, Elsevier, vol. 30(5), pages 457-468, July.
    8. Freedman, Martin & Jaggi, Bikki, 2005. "Global warming, commitment to the Kyoto protocol, and accounting disclosures by the largest global public firms from polluting industries," The International Journal of Accounting, Elsevier, vol. 40(3), pages 215-232.
    9. Melsa Ararat & Borhan Sayedy, 2019. "Gender and Climate Change Disclosure: An Interdimensional Policy Approach," Sustainability, MDPI, vol. 11(24), pages 1-19, December.
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    Cited by:

    1. Ignatius Edward Riantono & Felicia Wigna Sunarto, 2022. "Factor Affecting Intentions of Indonesian Companies to Disclose Carbon Emission," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 451-459, May.

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    More about this item

    Keywords

    carbon emission disclosure; profitability; company size; board independence; board gender diversity;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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