IDEAS home Printed from https://ideas.repec.org/a/wly/corsem/v25y2018i6p1397-1406.html
   My bibliography  Save this article

The content and determinants of greenhouse gas emission disclosure: Evidence from Indonesian companies

Author

Listed:
  • Faisal Faisal
  • Erika Dwi Andiningtyas
  • Tarmizi Achmad
  • Haryanto Haryanto
  • Wahyu Meiranto

Abstract

This paper examined the content and determinants of greenhouse gas (GHG) emission disclosure practices. This study found that the number of firms disclosed is increased from 42.9% in 2011 to 48.1% in 2014. The assessment of risks and opportunities of climate change theme is the most disclosed item. Miscellaneous industries disclosed more GHG emission information compared with any other industry. The results also show that profitability, leverage, company size, and industry are significant determinants that can explain the extent of GHG emission disclosure. The findings of this study indicated that GHG emission disclosures are used as a mechanism to reduce pressures from stakeholders. This study contributes to the GHG emission disclosure literature by providing patterns and determinants of companies' GHG emission disclosure in an emerging country.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:corsem:v:25:y:2018:i:6:p:1397-1406
    DOI: 10.1002/csr.1660
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/csr.1660
    Download Restriction: no
    File URL: https://libkey.io/10.1002/csr.1660?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Denis Cormier & Michel Magnan & Barbara Van Velthoven, 2005. "Environmental disclosure quality in large German companies: Economic incentives, public pressures or institutional conditions?," European Accounting Review, Taylor & Francis Journals, vol. 14(1), pages 3-39.
    3. Juan Peng & Jianfei Sun & Rui Luo, 2015. "Corporate Voluntary Carbon Information Disclosure: Evidence from China's Listed Companies," The World Economy, Wiley Blackwell, vol. 38(1), pages 91-109, January.
    4. Sue Hrasky, 2012. "Carbon footprints and legitimation strategies: symbolism or action?," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 25(1), pages 174-198, January.
    5. Abdifatah Ahmed Haji, 2013. "Corporate social responsibility disclosures over time: evidence from Malaysia," Managerial Auditing Journal, Emerald Group Publishing, vol. 28(7), pages 647-676, July.
    6. Waris Ali & Jedrzej George Frynas & Zeeshan Mahmood, 2017. "Determinants of Corporate Social Responsibility (CSR) Disclosure in Developed and Developing Countries: A Literature Review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(4), pages 273-294, July.
    7. Dye, Ra & Sridhar, Ss, 1995. "Industry-Wide Disclosure Dynamics," Journal of Accounting Research, Wiley Blackwell, vol. 33(1), pages 157-174.
    8. Elizabeth Stanny & Kirsten Ely, 2008. "Corporate environmental disclosures about the effects of climate change," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(6), pages 338-348, November.
    9. Dennis M. Patten, 2002. "Media exposure, public policy pressure, and environmental disclosure: an examination of the impact of tri data availability," Accounting Forum, Taylor & Francis Journals, vol. 26(2), pages 152-171, June.
    10. Rob Gray & Mohammed Javad & David M. Power & C. Donald Sinclair, 2001. "Social and Environmental Disclosure and Corporate Characteristics: A Research Note and Extension," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 28(3-4), pages 327-356.
    11. Choi Ieng Chu & Bikram Chatterjee & Alistair Brown, 2012. "The current status of greenhouse gas reporting by Chinese companies: A test of legitimacy theory," Managerial Auditing Journal, Emerald Group Publishing, vol. 28(2), pages 114-139, December.
    12. Yongqing Li & Ian Eddie & Jinghui Liu, 2014. "Carbon emissions and the cost of capital: Australian evidence," Review of Accounting and Finance, Emerald Group Publishing Limited, vol. 13(4), pages 400-420, November.
    13. Stephen Brammer & Andrew Millington, 2004. "The Development of Corporate Charitable Contributions in the UK: A Stakeholder Analysis," Journal of Management Studies, Wiley Blackwell, vol. 41(8), pages 1411-1434, December.
    14. Ans Kolk & David Levy & Jonatan Pinkse, 2008. "Corporate Responses in an Emerging Climate Regime: The Institutionalization and Commensuration of Carbon Disclosure," European Accounting Review, Taylor & Francis Journals, vol. 17(4), pages 719-745.
    15. Rob Gray & Mohammed Javad & David M. Power & C. Donald Sinclair, 2001. "Social and Environmental Disclosure and Corporate Characteristics: A Research Note and Extension," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 28(3‐4), pages 327-356, April.
    16. Hadrian Gery Djajadikerta & Terri Trireksani, 2012. "Corporate social and environmental disclosure by Indonesian listed companies on their corporate web sites," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 13(1), pages 21-36, May.
    17. Torbjörn Tagesson & Veronica Blank & Pernilla Broberg & Sven‐Olof Collin, 2009. "What explains the extent and content of social and environmental disclosures on corporate websites: a study of social and environmental reporting in Swedish listed corporations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 16(6), pages 352-364, November.
    18. Diogenis Baboukardos, 2017. "Market valuation of greenhouse gas emissions under a mandatory reporting regime: Evidence from the UK," Accounting Forum, Taylor & Francis Journals, vol. 41(3), pages 221-233, September.
    19. Erin M. Reid & Michael W. Toffel, 2009. "Responding to public and private politics: corporate disclosure of climate change strategies," Strategic Management Journal, Wiley Blackwell, vol. 30(11), pages 1157-1178, November.
    20. Robyn Moroney & Carolyn Windsor & Yong Ting Aw, 2012. "Evidence of assurance enhancing the quality of voluntary environmental disclosures: an empirical analysis," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 52(3), pages 903-939, September.
    21. Qian, Wei & Schaltegger, Stefan, 2017. "Revisiting carbon disclosure and performance: Legitimacy and management views," The British Accounting Review, Elsevier, vol. 49(4), pages 365-379.
    22. Mike Adams & Philip Hardwick, 1998. "An Analysis of Corporate Donations: United Kingdom Evidence," Journal of Management Studies, Wiley Blackwell, vol. 35(5), pages 641-654, September.
    23. de Aguiar, Thereza Raquel Sales & Bebbington, Jan, 2014. "Disclosure on climate change: Analysing the UK ETS effects," Accounting forum, Elsevier, vol. 38(4), pages 227-240.
    24. Neu, D. & Warsame, H. & Pedwell, K., 1998. "Managing public impressions: environmental disclosures in annual reports," Accounting, Organizations and Society, Elsevier, vol. 23(3), pages 265-282, April.
    25. Cho, Charles H. & Patten, Dennis M., 2007. "The role of environmental disclosures as tools of legitimacy: A research note," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 639-647.
    26. Fitra Roman Cahaya & Stacey A. Porter & Greg Tower & Alistair Brown, 2012. "Indonesia's low concern for labor issues," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 8(1), pages 114-132, March.
    27. Andrea Liesen & Andreas G. Hoepner & Dennis M. Patten & Frank Figge, 2015. "Does stakeholder pressure influence corporate GHG emissions reporting? Empirical evidence from Europe," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 28(7), pages 1047-1074, September.
    28. Elizabeth Stanny, 2013. "Voluntary Disclosures of Emissions by US Firms," Business Strategy and the Environment, Wiley Blackwell, vol. 22(3), pages 145-158, March.
    29. Murya Habbash, 2016. "Corporate governance and corporate social responsibility disclosure: evidence from Saudi Arabia," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 12(4), pages 740-754, October.
    30. Michaela Rankin & Carolyn Windsor & Dina Wahyuni, 2011. "An investigation of voluntary corporate greenhouse gas emissions reporting in a market governance system," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 24(8), pages 1037-1070, October.
    31. Thereza Raquel Sales de Aguiar & Jan Bebbington, 2014. "Disclosure on climate change: Analysing the UK ETS effects," Accounting Forum, Taylor & Francis Journals, vol. 38(4), pages 227-240, December.
    32. Roberts, Robin W., 1992. "Determinants of corporate social responsibility disclosure: An application of stakeholder theory," Accounting, Organizations and Society, Elsevier, vol. 17(6), pages 595-612, August.
    33. Andreas Andrikopoulos & Nikoleta Kriklani, 2013. "Environmental Disclosure and Financial Characteristics of the Firm: The Case of Denmark," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(1), pages 55-64, January.
    34. Azlan Amran & S. Susela Devi, 2008. "The impact of government and foreign affiliate influence on corporate social reporting: The case of Malaysia," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(4), pages 386-404, April.
    35. Lei Wang & Steven Li & Simon Gao, 2014. "Do Greenhouse Gas Emissions Affect Financial Performance? – an Empirical Examination of Australian Public Firms," Business Strategy and the Environment, Wiley Blackwell, vol. 23(8), pages 505-519, December.
    36. Kim, Eun-Hee & Lyon, Thomas P., 2011. "Strategic environmental disclosure: Evidence from the DOE's voluntary greenhouse gas registry," Journal of Environmental Economics and Management, Elsevier, vol. 61(3), pages 311-326, May.
    37. Nicky J. Welton & Howard H. Z. Thom, 2015. "Value of Information," Medical Decision Making, , vol. 35(5), pages 564-566, July.
    38. 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.
    39. 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.
    40. Carmelo Reverte, 2009. "Determinants of Corporate Social Responsibility Disclosure Ratings by Spanish Listed Firms," Journal of Business Ethics, Springer, vol. 88(2), pages 351-366, August.
    41. Erin Marie Reid & Michael W. Toffel, 2008. "Responding to Public and Private Politics: Corporate Disclosure of Climate Change Strategies," Harvard Business School Working Papers 09-019, Harvard Business School, revised Jun 2009.
    42. Muhammad Azizul Islam & Craig Deegan, 2008. "Motivations for an organisation within a developing country to report social responsibility information," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 21(6), pages 850-874, August.
    43. Grigoris Giannarakis, 2014. "Corporate governance and financial characteristic effects on the extent of corporate social responsibility disclosure," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 10(4), pages 569-590, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mahmoudian, Fereshteh & Yu, Dongning & Lu, Jing & Nazari, Jamal A. & Herremans, Irene M., 2023. "Does cost of debt reflect the value of quality greenhouse gas emissions reduction efforts and disclosure?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 52(C).
    2. Meilani Devi Utami, 2022. "Factors influencing the carbon emissions disclosure in basic and chemical industrial companies listed on the IDX in 2016-2019," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(9), pages 193-204, December.
    3. 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.
    4. Hammad Riaz & Abubakr Saeed, 2020. "Impact of environmental policy on firm's market performance: The case of ISO 14001," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 681-693, March.
    5. Oyerogba Ezekiel & Sunday Olugbenro & Sunday Omojola & Olatunde Wright & Olateju Aregbesola, 2024. "Influence of Board Characteristics on Carbon Emission Disclosure: Evidence from the Nigerian Oil and Gas Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 582-592, September.
    6. Cinthia Leonora Murillo‐Avalos & Mitzi Cubilla‐Montilla & Miguel Ángel Celestino Sánchez & Purificación Vicente‐Galindo, 2021. "What environmental social responsibility practices do large companies manage for sustainable development?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 153-168, January.
    7. Kunofiwa Tsaurai, 2020. "Exploring the Macroeconomic Determinants of Carbon Emissions in Transitional Economies: A Panel Data Analysis Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 536-544.
    8. Manuel Bueno‐García & Gozal Ahmadova, 2024. "The influence of state ownership on environmental proactivity: An institutional perspective of international firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1531-1549, May.

    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. Antonio J. Mateo-Márquez & José M. González-González & Constancio Zamora-Ramírez, 2021. "Components of Countries’ Regulative Dimensions and Voluntary Carbon Disclosures," Sustainability, MDPI, vol. 13(4), pages 1-22, February.
    2. Rong He & Le Luo & Abul Shamsuddin & Qingliang Tang, 2022. "Corporate carbon accounting: a literature review of carbon accounting research from the Kyoto Protocol to the Paris Agreement," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(1), pages 261-298, March.
    3. Luo, Le & Tang, Qingliang, 2014. "Does voluntary carbon disclosure reflect underlying carbon performance?," Journal of Contemporary Accounting and Economics, Elsevier, vol. 10(3), pages 191-205.
    4. Mumtaheena Anwar & Sohanur Rahman & Md. Nurul Kabir, 2021. "Does national carbon pricing policy affect voluntary environmental disclosures? A global evidence," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(2), pages 211-244, April.
    5. Zahra Borghei, 2021. "Carbon disclosure: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5255-5280, December.
    6. Antonio J. Mateo‐Márquez & José M. González‐González & Constancio Zamora‐Ramírez, 2021. "The influence of countries' climate change‐related institutional profile on voluntary environmental disclosures," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1357-1373, February.
    7. Muhammad Safdar Sial & Chunmei Zheng & Nguyen Vinh Khuong & Tehmina Khan & Muhammad Usman, 2018. "Does Firm Performance Influence Corporate Social Responsibility Reporting of Chinese Listed Companies?," Sustainability, MDPI, vol. 10(7), pages 1-12, June.
    8. Ismail N.B. & Sébastien Alcouffe & Galy N & Ceulemans K, 2020. "The impact of international sustainability initiatives on Life Cycle Assessment voluntary disclosures: The case of France’s CAC40 listed companies," Post-Print hal-03082800, HAL.
    9. Yang Stephanie Liu & Xiaoyan Zhou & Jessica Yang & Andreas Hoepner, 2016. "Corporate Carbon Emission and Financial Performance: Does Carbon Disclosure Mediate the Relationship in the UK?," ICMA Centre Discussion Papers in Finance icma-dp2016-03, Henley Business School, University of Reading.
    10. Sohanur Rahman & Tehmina Khan & Pavithra Siriwardhane, 2019. "Sustainable development carbon pricing initiative and voluntary environmental disclosures quality," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1072-1082, September.
    11. Anna Jessop & Nicole Wilson & Michal Bardecki & Cory Searcy, 2019. "Corporate Environmental Disclosure in India: An Analysis of Multinational and Domestic Agrochemical Corporations," Sustainability, MDPI, vol. 11(18), pages 1-33, September.
    12. Waris Ali & Jedrzej George Frynas, 2018. "The Role of Normative CSR‐Promoting Institutions in Stimulating CSR Disclosures in Developing Countries," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 373-390, July.
    13. Liu, Yang Stephanie & Zhou, Xiaoyan & Yang, Jessica Hong & Hoepner, Andreas G.F. & Kakabadse, Nada, 2023. "Carbon emissions, carbon disclosure and organizational performance," International Review of Financial Analysis, Elsevier, vol. 90(C).
    14. Emerald Edem Welbeck & Godfred Matthew Yaw Owusu & Rita Amoah Bekoe & John Amoah Kusi, 2017. "Determinants of environmental disclosures of listed firms in Ghana," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-12, December.
    15. Le Luo & Qingliang Tang & Hanlu Fan & Jamie Ayers, 2023. "Corporate carbon assurance and the quality of carbon disclosure," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(1), pages 657-690, March.
    16. Lyton Chithambo & Ishmael Tingbani & Godfred Afrifa Agyapong & Ernest Gyapong & Isaac Sakyi Damoah, 2020. "Corporate voluntary greenhouse gas reporting: Stakeholder pressure and the mediating role of the chief executive officer," Business Strategy and the Environment, Wiley Blackwell, vol. 29(4), pages 1666-1683, May.
    17. Muttakin, Mohammad Badrul & Khan, Arifur, 2014. "Determinants of corporate social disclosure: Empirical evidence from Bangladesh," Advances in accounting, Elsevier, vol. 30(1), pages 168-175.
    18. Sun Ae Kim & Jong Dae Kim, 2022. "Voluntary Carbon Disclosure (VCD) Strategy under the Korean ETS: With the Interaction among Carbon Performance, Foreign Sales Ratio and Media Visibility," IJERPH, MDPI, vol. 19(18), pages 1-19, September.
    19. Waris Ali & Maha Faisal Alsayegh & Zubair Ahmad & Zeeshan Mahmood & Javed Iqbal, 2018. "The Relationship between Social Visibility and CSR Disclosure," Sustainability, MDPI, vol. 10(3), pages 1-32, March.
    20. Waris Ali & Jedrzej George Frynas & Zeeshan Mahmood, 2017. "Determinants of Corporate Social Responsibility (CSR) Disclosure in Developed and Developing Countries: A Literature Review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(4), pages 273-294, July.

    More about this item

    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:wly:corsem:v:25:y:2018:i:6:p:1397-1406. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1535-3966 .

    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.