IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2023-04-62.html
   My bibliography  Save this article

The Effect of Industrial Type, Environmental Performance and Leverage on Carbon Emission Disclosure: Evidence from Indonesian LQ45 Companies

Author

Listed:
  • Meiryani Meiryani

    (Department of Accounting, School of Accounting, Bina Nusantara University, Jakarat, Indonesia,)

  • Shi-Ming Huang

    (Accounting and Information Technology Department, National Chung Cheng University, Taiwan,)

  • Dezie Leonarda Warganegara

    (Department of Management, BINUS Business School, Doctor of Research in Management, Bina Nusantara University, Jakarta, Indonesia)

  • Moch Doddy Ariefianto

    (Department of Accounting, Finance Program, School of Accounting, Bina Nusantara University, Jakarat, Indonesia.)

  • Vaeren Teresa

    (Department of Accounting, School of Accounting, Bina Nusantara University, Jakarat, Indonesia,)

  • Helda Oktavianie

    (Department of Accounting, School of Accounting, Bina Nusantara University, Jakarat, Indonesia,)

Abstract

This study aims to examine and look for empirical evidence related to the determinants that influence the carbon emissions disclosure. The factors tested in this study include industrial type, environmental performance, leverage, and profitability. This research method uses a quantitative approach. The source of data in this study uses secondary data, namely data from sustainability reports and annual reports. The population used is all LQ45 index companies listed on the Indonesia Stock Exchange in 2016 2020 and this study uses purposive sampling technique. This study uses tests such as descriptive statistical analysis, classical assumption test, hypothesis testing and multiple linear regression analysis. The results of this study indicate that the industrial type and CEO tenure have no effect on carbon emission disclosures, while leverage, profitability, environmental performance, CEO gender and technology for disclosure have a negative effect on carbon emission disclosures. This first study factors effect carbon emission disclosure in emerging countries.

Suggested Citation

  • Meiryani Meiryani & Shi-Ming Huang & Dezie Leonarda Warganegara & Moch Doddy Ariefianto & Vaeren Teresa & Helda Oktavianie, 2023. "The Effect of Industrial Type, Environmental Performance and Leverage on Carbon Emission Disclosure: Evidence from Indonesian LQ45 Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 622-633, July.
    • Handle: RePEc:eco:journ2:2023-04-62
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/14466/7429
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/14466
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:eme:par000:par-12-2017-0107 is not listed on IDEAS
    2. Rezaee, Zabihollah, 2016. "Business sustainability research: A theoretical and integrated perspective," Journal of Accounting Literature, Elsevier, vol. 36(C), pages 48-64.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    4. Pallab Kumar Biswas & Mansi Mansi & Rakesh Pandey, 2018. "Board composition, sustainability committee and corporate social and environmental performance in Australia," Pacific Accounting Review, Emerald Group Publishing Limited, vol. 30(4), pages 517-540, November.
    5. Edmans, Alex, 2011. "Does the stock market fully value intangibles? Employee satisfaction and equity prices," Journal of Financial Economics, Elsevier, vol. 101(3), pages 621-640, September.
    6. repec:eme:jal000:j.acclit.2016.05.003 is not listed on IDEAS
    7. Frank Li & Tao Li & Dylan Minor, 2016. "CEO power, corporate social responsibility, and firm value: a test of agency theory," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 12(5), pages 611-628, October.
    8. Elena Stolyarova, 2013. "Carbon Dioxide Emissions, economic growth and energy mix: empirical evidence from 93 countries," EcoMod2013 5433, EcoMod.
    9. Li Cai & Jinhua Cui & Hoje Jo, 2016. "Corporate Environmental Responsibility and Firm Risk," Journal of Business Ethics, Springer, vol. 139(3), pages 563-594, December.
    10. Frank Li & Tao Li & Dylan Minor, 2016. "CEO power, corporate social responsibility, and firm value: a test of agency theory," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 12(5), pages 611-628, October.
    11. Frank Li & Tao Li & Dylan Minor, 2016. "CEO power, corporate social responsibility, and firm value: a test of agency theory," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 12(5), pages 611-628, October.
    12. Le Luo & Qingliang Tang & Yi‐Chen Lan, 2013. "Comparison of propensity for carbon disclosure between developing and developed countries," Accounting Research Journal, Emerald Group Publishing Limited, vol. 26(1), pages 6-34, July.
    13. Pierluigi Martino & Alessandra Rigolini & Giuseppe D’Onza, 2020. "The relationships between CEO characteristics and strategic risk-taking in family firms," Journal of Risk Research, Taylor & Francis Journals, vol. 23(1), pages 95-116, January.
    14. Cedric Dawkins & John Fraas, 2011. "Coming Clean: The Impact of Environmental Performance and Visibility on Corporate Climate Change Disclosure," Journal of Business Ethics, Springer, vol. 100(2), pages 303-322, May.
    15. Goldman, Eitan & Slezak, Steve L., 2006. "An equilibrium model of incentive contracts in the presence of information manipulation," Journal of Financial Economics, Elsevier, vol. 80(3), pages 603-626, June.
    16. Zabihollah Rezaee, 2016. "Business sustainability research: A theoretical and integrated perspective," Journal of Accounting Literature, Emerald Group Publishing Limited, vol. 36(1), pages 48-64, June.
    17. Clarkson, Peter M. & Li, Yue & Richardson, Gordon D. & Vasvari, Florin P., 2008. "Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 303-327.
    18. Le Luo & Qingliang Tang & Yi‐Chen Lan, 2013. "Comparison of propensity for carbon disclosure between developing and developed countries," Accounting Research Journal, Emerald Group Publishing Limited, vol. 26(1), pages 6-34, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ruixi Long & Shuyang Jia, 2023. "Foreground or background my social responsibility: impact of the trade war on the readability of corporate social responsibility disclosures," Information Technology and Management, Springer, vol. 24(1), pages 79-97, March.
    2. Siew Peng Lee, 2023. "Board monitoring effectiveness and corporate sustainability performance: do legal system and CEO non-duality matter?," Review of Managerial Science, Springer, vol. 17(4), pages 1243-1267, May.
    3. Ruiqin Mou & Tao Ma, 2023. "A Study on the Quality and Determinants of Climate Information Disclosure of A-Share-Listed Banks," Sustainability, MDPI, vol. 15(10), pages 1-19, May.
    4. Lin Liao & Yukun Pan & Daifei (Troy) Yao, 2023. "Capital market liberalisation and voluntary corporate social responsibility disclosure: Evidence from a quasi‐natural experiment in China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 2677-2715, June.
    5. Jongmoo Jay Choi & Hoje Jo & Jimi Kim & Moo Sung Kim, 2018. "Business Groups and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 153(4), pages 931-954, December.
    6. Kim, Taeyeon & Kim, Hyun-Dong & Park, Kwangwoo, 2020. "CEO inside debt holdings and CSR activities," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 508-529.
    7. Andrey Zahariev & Petya Ivanova & Galina Zaharieva & Krasimira Slaveva & Margarita Mihaylova & Tanya Todorova, 2023. "Interplay between CSR and the Digitalisation of Bulgarian Financial Enterprises: HRM Approach and Pandemic Evidence," JRFM, MDPI, vol. 16(9), pages 1-18, August.
    8. Tzouvanas, Panagiotis & Kizys, Renatas & Chatziantoniou, Ioannis & Sagitova, Roza, 2020. "Environmental disclosure and idiosyncratic risk in the European manufacturing sector," Energy Economics, Elsevier, vol. 87(C).
    9. Linda Kusumaning Wedari & Amir Moradi‐Motlagh & Christine Jubb, 2023. "The moderating effect of innovation on the relationship between environmental and financial performance: Evidence from high emitters in Australia," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 654-672, January.
    10. Tzouvanas, Panagiotis & Kizys, Renatas & Chatziantoniou, Ioannis & Sagitova, Roza, 2020. "Environmental and financial performance in the European manufacturing sector: An analysis of extreme tail dependency," The British Accounting Review, Elsevier, vol. 52(6).
    11. Syeda Khiraza Naqvi & Faisal Shahzad & Ijaz Ur Rehman & Fiza Qureshi & Usama Laique, 2021. "Corporate social responsibility performance and information asymmetry: The moderating role of analyst coverage," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1549-1563, November.
    12. Radhakrishnan, Suresh & Tsang, Albert & Liu, Rubing, 2018. "A Corporate Social Responsibility Framework for Accounting Research," The International Journal of Accounting, Elsevier, vol. 53(4), pages 274-294.
    13. Ali Uyar & Mehmet Ali Koseoglu & Cemil Kuzey & Abdullah S Karaman, 2023. "Does firm strategy influence corporate social responsibility and firm performance? Evidence from the tourism industry," Tourism Economics, , vol. 29(5), pages 1272-1301, August.
    14. Camélia Radu & Claude Francoeur, 2017. "Does Innovation Drive Environmental Disclosure? A New Insight into Sustainable Development," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 893-911, November.
    15. Fang, Zhenming & Kong, Xiaoran & Sensoy, Ahmet & Cui, Xin & Cheng, Feiyang, 2021. "Government’s awareness of Environmental protection and corporate green innovation: A natural experiment from the new environmental protection law in China," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 294-312.
    16. Zhe Li & Ping Wang, 2023. "Cross‐border mergers and acquisitions and corporate social responsibility: Evidence from Chinese listed firms," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 50(1-2), pages 335-376, January.
    17. Kurt A. Desender & Mircea Epure, 2013. "Corporate governance and corporate social performance: The influence of ownership, boards and institutions," Economics Working Papers 1398, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2015.
    18. Le Luo & Qingliang Tang & Juan Peng, 2018. "The direct and moderating effects of power distance on carbon transparency: An international investigation of cultural value and corporate social responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1546-1557, December.
    19. I. M. García‐Sánchez & J. Martínez‐Ferrero, 2017. "Independent Directors and CSR Disclosures: The moderating effects of proprietary costs," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(1), pages 28-43, January.
    20. Yanbing Wang & Michael S. Delgado & Jin Xu, 2023. "When and where does it pay to be green? – A look into socially responsible investing and the cost of equity capital," International Journal of Corporate Social Responsibility, Springer, vol. 8(1), pages 1-23, December.

    More about this item

    Keywords

    Carbon Emission Disclosure; Type of Industry; Leverage; Profitability; Environmental Performance;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G2 - Financial Economics - - Financial Institutions and Services
    • G4 - Financial Economics - - Behavioral Finance
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2023-04-62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.