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What Drives Environmental Disclosure? Evidence from Mining Companies Listed on The Indonesia Stock Exchange

Author

Listed:
  • Kumba Digdowiseiso

    (Faculty of Economics and Business, University of National, Jakarta, Indonesia.)

  • Bambang Subiyanto

    (Faculty of Economics and Business, University of National, Jakarta, Indonesia.)

  • Retno Setioningsih

    (Faculty of Economics and Business, University of National, Jakarta, Indonesia)

Abstract

This study aims to analyse the effects of environmental performance, profitability, and leverage on the environmental disclosure in mining industry sector companies listed on the Indonesia Stock Exchange. The sample of this study was 15 mining companies which were selected by using a purposive sampling technique. We collected the company's annual report over the period 2014 2021. The results showed that environmental performance had a positive and significant effect on environmental disclosure. In this case, the Corporate Performance Rating Program (PROPER) rating was able to prove that there was a significant influence between the Global Reporting Initiative (GRI) as a form of its responsibility and the extent of environmental disclosure. In addition, profitability produced a negative and significant effect on environmental disclosure. The company considered that it was no longer necessary to carry out environmental disclosure when the company has made a profit annually because the company's environmental performance was good. Finally, leverage had a negative and significant effect on environmental disclosure. Thus, when the leverage of the company reached the maximum point, the company chose to pay off the debt, instead of conducting environmental disclosure.

Suggested Citation

  • Kumba Digdowiseiso & Bambang Subiyanto & Retno Setioningsih, 2022. "What Drives Environmental Disclosure? Evidence from Mining Companies Listed on The Indonesia Stock Exchange," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 32-39, July.
    • Handle: RePEc:eco:journ2:2022-04-4
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    References listed on IDEAS

    as
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    Cited by:

    1. 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.
    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.

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    More about this item

    Keywords

    Environmental Performance; Environmental Disclosure; Profitability; Leverage; Indonesia;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • 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

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