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Going Green: Determinants of Carbon Emission Disclosure in Manufacturing Companies in Indonesia

Author

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  • Atang Hermawan

    (Universitas Pasundan, Faculty of Economics and Business, Jalan Tamansari No. 6-8, Bandung 40116, Indonesia,)

  • Isye Siti Aisyah

    (Universitas Pasundan, Faculty of Economics and Business, Jalan Tamansari No. 6-8, Bandung 40116, Indonesia,)

  • Ardi Gunardi

    (Universitas Pasundan, Faculty of Economics and Business, Jalan Tamansari No. 6-8, Bandung 40116, Indonesia,)

  • Wiratri Yustia Putri

    (Universitas Pasundan, Faculty of Economics and Business, Jalan Tamansari No. 6-8, Bandung 40116, Indonesia,)

Abstract

This study aims to gather empirical evidence on the influence of regulators, institutional ownership, firm size, and profitability to carbon emission disclosure. Measurements regarding the area of carbon emissions disclosure are conducted using checklists that are adopted and developed based on the information request sheets provided by the Carbon Disclosure Project (CDP). The population of this study are all manufacturing companies listed on the Indonesia Stock Exchange at the period of 2014-2016. Samples of this study are being chosen by using purposive sampling method; which obtained 22 manufacturing companies, that published their annual financial reports and sustainability reports during the observation period and disclose their carbon emissions. The data used are secondary data from Indonesia Stock Exchange. The analysis technique used is multiple linear regression analysis. The research results proved that the regulator has an effect on carbon emission disclosure, company size influences carbon emission disclosure, and profitability affects carbon emission disclosure, while institutional ownership does not affect carbon emission disclosure.

Suggested Citation

  • Atang Hermawan & Isye Siti Aisyah & Ardi Gunardi & Wiratri Yustia Putri, 2018. "Going Green: Determinants of Carbon Emission Disclosure in Manufacturing Companies in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 55-61.
    • Handle: RePEc:eco:journ2:2018-01-7
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    References listed on IDEAS

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    1. Stephen Brammer & Stephen Pavelin, 2006. "Voluntary Environmental Disclosures by Large UK Companies," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(7-8), pages 1168-1188.
    2. Stephen Brammer & Stephen Pavelin, 2006. "Voluntary Environmental Disclosures by Large UK Companies," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(7‐8), pages 1168-1188, September.
    3. Julie Cotter & Muftah M Najah, 2012. "Institutional investor influence on global climate change disclosure practices," Australian Journal of Management, Australian School of Business, vol. 37(2), pages 169-187, August.
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    Cited by:

    1. Dwi Ratmono & Darsono Darsono & Selviana Selviana, 2021. "Effect of Carbon Performance, Company Characteristics and Environmental Performance on Carbon Emission Disclosure: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 101-109.
    2. Indah Fajarini Sri Wahyuningrum & Linda Agustina & Kuat Waluyo Jati & Muhammad Ihlashul Amal & Sriningsih Sriningsih, 2024. "A Slight Look Environmental Disclosure Score Trends during Covid-19 Outbreak: What’s Driver the Environmental Disclosure in Indonesian Mining and Manufacturing Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 160-171, March.
    3. Yinka Lydia Emmanuel & Olayinka Adenikinju & Mishelle Doorasamy & Tajueden John Ayoola & Abiodun Oyebamiji Oladejo & Jerry D. Kwarbai & Adegbola Olubukola Otekunrin, 2023. "Carbon Emission Disclosure and Financial Performance of Quoted Nigerian Financial Services Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 628-635, November.
    4. Lokita Rizky Megawati & Arie Pratama, 2024. "Sustainable Development Goals in Corporate Reporting: Analysis of Economic, Social, and Environmental Disclosure (Survey among Public Listed Companies in Indonesia)," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 625-638, May.
    5. Muhammad Wahyuddin Abdullah & Rika Musriani & Alim Syariati & Hadriana Hanafie, 2020. "Carbon Emission Disclosure in Indonesian Firms: The Test of Media-exposure Moderating Effects," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 732-741.
    6. Halil Emre Akbaş & Seda Canikli, 2018. "Determinants of Voluntary Greenhouse Gas Emission Disclosure: An Empirical Investigation on Turkish Firms," Sustainability, MDPI, vol. 11(1), pages 1-24, December.
    7. Rahmawati Rahmawati & Doddy Setiawan & Y. Anni Aryani & Kiswanto Kiswanto, 2024. "Role Environmental Performance on Effect Financial Performance to Carbon Emission Disclosure," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 196-204, January.
    8. Anup Kumar Saha & Habiba Al‐Shaer & Rob Dixon & Istemi Demirag, 2021. "Determinants of Carbon Emission Disclosures and UN Sustainable Development Goals: The Case of UK Higher Education Institutions," Australian Accounting Review, CPA Australia, vol. 31(2), pages 79-107, June.

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    More about this item

    Keywords

    carbon emissions disclosure; regulator; institutional ownership; company size; profitability; Indonesia.;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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