IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2024-02-16.html
   My bibliography  Save this article

A Slight Look Environmental Disclosure Score Trends during Covid-19 Outbreak: What’s Driver the Environmental Disclosure in Indonesian Mining and Manufacturing Companies

Author

Listed:
  • Indah Fajarini Sri Wahyuningrum

    (Department of Accounting, Faculty of Economics and Business, Universitas Negeri, Semarang 50229, Indonesia)

  • Linda Agustina

    (Department of Accounting, Faculty of Economics and Business, Universitas Negeri, Semarang 50229, Indonesia)

  • Kuat Waluyo Jati

    (Department of Accounting, Faculty of Economics and Business, Universitas Negeri, Semarang 50229, Indonesia)

  • Muhammad Ihlashul Amal

    (Department of Accounting, Faculty of Economics and Business, Universitas Negeri, Semarang 50229, Indonesia)

  • Sriningsih Sriningsih

    (Department of Accounting, Faculty of Economics and Business, Universitas Negeri, Semarang 50229, Indonesia)

Abstract

Amid growing environmental challenges and economic development in developing countries, companies must adopt robust environmental disclosure practices to fulfil their corporate responsibility. This study examines environmental disclosure trends from 2020 to 2022 during the COVID-19 pandemic, specifically focusing on the environmentally sensitive manufacturing and mining sectors selected through purposive sampling. A total of 40 company samples, encompassing 120 units of analysis, underwent analysis involving descriptive statistics, classical assumption tests, and multiple linear regression. The research explores the connection between various variables, such as company size, age, profitability, leverage, share ownership, and audit committee composition, and their impact on environmental disclosure practices. The findings reveal a rising trend in environmental disclosure among manufacturing and mining companies during the COVID-19 and post-pandemic period, increasing from 53.2% in 2020 to 60.8% in 2022. In 2022, the energy, industrial, and health sectors saw increased environmental disclosure, while the basic materials and cyclical consumer sectors decreased. Regression analysis shows that company size, profitability, and audit committees impact environmental disclosure, while company age, leverage, and foreign ownership have no discernible influence. This research provides valuable insights into environmental disclosure in Indonesia's manufacturing and mining sectors.

Suggested Citation

  • 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.
    • Handle: RePEc:eco:journ2:2024-02-16
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/15387/7754
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/15387
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Giovanna Michelon & Antonio Parbonetti, 2012. "The effect of corporate governance on sustainability disclosure," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 477-509, August.
    2. Hichem khlif & Khaled Hussainey & Imen Achek, 2015. "The effect of national culture on the association between profitability and corporate social and environmental disclosure," Meditari Accountancy Research, Emerald Group Publishing Limited, vol. 23(3), pages 296-321, October.
    3. 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.
    4. Fatma Baalouch & Salma Damak Ayadi & Khaled Hussainey, 2019. "A study of the determinants of environmental disclosure quality: evidence from French listed companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(4), pages 939-971, December.
    5. Prem Lal Joshi & Mishiel Said Suwaidan & Rajesh Kumar, 2011. "Determinants of environmental disclosures by Indian industrial listed companies: empirical study," International Journal of Accounting and Finance, Inderscience Enterprises Ltd, vol. 3(2), pages 109-130.
    6. Dayuan Li & Min Huang & Shenggang Ren & Xiaohong Chen & Lutao Ning, 2018. "Environmental Legitimacy, Green Innovation, and Corporate Carbon Disclosure: Evidence from CDP China 100," Journal of Business Ethics, Springer, vol. 150(4), pages 1089-1104, July.
    7. Astrid Rudyanto & Sylvia Veronica Siregar, 2018. "The effect of stakeholder pressure and corporate governance on the sustainability report quality," International Journal of Ethics and Systems, Emerald Group Publishing Limited, vol. 34(2), pages 233-249, May.
    8. Akhtaruddin, M., 2005. "Corporate mandatory disclosure practices in Bangladesh," The International Journal of Accounting, Elsevier, vol. 40(4), pages 399-422.
    9. Ratna Nurhayati* & Grantley Taylor & Greg Tower, 2015. "Investigating social and environmental disclosure practices by listed Indian textile firms," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(6), pages 361-372, Special I.
    10. Juliet Wakaisuka-Isingoma & Josiah Aduda & Gituro Wainaina & Cyrus Iraya Mwangi, 2016. "Corporate governance, firm characteristics, external environment and performance of financial institutions in Uganda: A review of literature," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1261526-126, December.
    11. Pablo Archel & Javier Husillos & Carlos Larrinaga & Crawford Spence, 2009. "Social disclosure, legitimacy theory and the role of the state," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 22(8), pages 1284-1307, October.
    12. repec:eme:ijoes0:ijoes-03-2018-0042 is not listed on IDEAS
    13. Dogru, Tarik & Akyildirim, Erdinc & Cepni, Oguzhan & Ozdemir, Ozgur & Sharma, Abhinav & Yilmaz, Muhammed Hasan, 2022. "The effect of environmental, social and governance risks," Annals of Tourism Research, Elsevier, vol. 95(C).
    14. Ki‐Hoon Lee, 2017. "Does Size Matter? Evaluating Corporate Environmental Disclosure in the Australian Mining and Metal Industry: A Combined Approach of Quantity and Quality Measurement," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 209-223, February.
    15. Edwin Mirfazli, 2008. "Evaluate corporate social responsibility disclosure at Annual Report Companies in multifarious group of industry members of Jakarta Stock Exchange (JSX), Indonesia," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 4(3), pages 388-406, August.
    16. 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.
    17. Michael N. Young & Mike W. Peng & David Ahlstrom & Garry D. Bruton & Yi Jiang, 2008. "Corporate Governance in Emerging Economies: A Review of the Principal–Principal Perspective," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 196-220, January.
    18. Marianne Bradford & Julia B. Earp & Paul F. Williams, 2017. "Understanding sustainability for socially responsible investing and reporting," Journal of Capital Markets Studies, Emerald Group Publishing Limited, vol. 1(1), pages 10-35, October.
    19. Ali Altug Bicer & Imad Mohamed Feneir, 2019. "The Impact of Audit Committee Characteristics on Environmental and Social Disclosures:Evidence from Turkey," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(3), pages 111-121, May.
    20. Razzaque, Rushdi Md. Rezaur & Ali, Muhammad Jahangir & Mather, Paul R., 2016. "Real earnings management in family firms: Evidence from an emerging economy," Pacific-Basin Finance Journal, Elsevier, vol. 40(PB), pages 237-250.
    21. Ranjith Appuhami & Shamim Tashakor, 2017. "The Impact of Audit Committee Characteristics on CSR Disclosure: An Analysis of Australian Firms," Australian Accounting Review, CPA Australia, vol. 27(4), pages 400-420, December.
    22. Andrea Liesen & Frank Figge & Andreas Hoepner & Dennis M. Patten, 2017. "Climate Change and Asset Prices: Are Corporate Carbon Disclosure and Performance Priced Appropriately?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 44(1-2), pages 35-62, January.
    23. Garoui Nassreddine, 2022. "Structural analysis of factors influencing environmental disclosure," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2024723-202, December.
    24. Badingatus Solikhah & Ukhti Maulina, 2021. "Factors influencing environment disclosure quality and the moderating role of corporate governance," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1876543-187, January.
    25. Grace N. Ofoegbu & Ndubuisi Odoemelam & Regina G. Okafor, 2018. "Corporate board characteristics and environmental disclosure quantity: Evidence from South Africa (integrated reporting) and Nigeria (traditional reporting)," Cogent Business & Management, Taylor & Francis Journals, vol. 5(1), pages 1551510-155, January.
    26. repec:eme:ijoes0:ijoes-05-2017-0071 is not listed on IDEAS
    27. Abdullah Hamoud Ismail & Azhar Abdul Rahman & Abdulqawi Ahmed Hezabr, 2018. "Determinants of corporate environmental disclosure quality of oil and gas industry in developing countries," International Journal of Ethics and Systems, Emerald Group Publishing Limited, vol. 34(4), pages 527-563, October.
    28. Ali Meftah Gerged, 2021. "Factors affecting corporate environmental disclosure in emerging markets: The role of corporate governance structures," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 609-629, January.
    29. 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.
    30. 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.
    31. Leyva-de la Hiz, Dante I. & Bolívar-Ramos, María Teresa, 2022. "The inverted U relationship between green innovative activities and firms’ market-based performance: The impact of firm age," Technovation, Elsevier, vol. 110(C).
    32. Tracy Artiach & Darren Lee & David Nelson & Julie Walker, 2010. "The determinants of corporate sustainability performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(1), pages 31-51, March.
    33. Bo Bae Choi & Doowon Lee & Jim Psaros, 2013. "An analysis of Australian company carbon emission disclosures," Pacific Accounting Review, Emerald Group Publishing Limited, vol. 25(1), pages 58-79, April.
    34. 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.
    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. 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.
    2. Ali Meftah Gerged & Khaldoon Albitar & Lara Al‐Haddad, 2023. "Corporate environmental disclosure and earnings management—The moderating role of corporate governance structures," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 2789-2810, July.
    3. Shinu Vig, 2024. "Environmental disclosures by Indian companies: role of board characteristics and board effectiveness," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(1), pages 16-31, March.
    4. Wunhong Su & Xingxing Hu & Liuzhen Zhang, 2023. "Association Between Directors With Foreign Experience and Firms’ Environmental Disclosure," SAGE Open, , vol. 13(4), pages 21582440231, December.
    5. Dewan Muktadir‐Al‐Mukit & Firoz Haroon Bhaiyat, 2024. "Impact of corporate governance diversity on carbon emission under environmental policy via the mandatory nonfinancial reporting regulation," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1397-1417, February.
    6. Ge Wang & Huijin Zhang & Saixing Zeng & Xiaohua Meng & Han Lin, 2023. "Reporting on sustainable development: Configurational effects of top management team and corporate characteristics on environmental information disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 28-52, January.
    7. 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).
    8. 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.
    9. Claudio Nuber & Patrick Velte, 2021. "Board gender diversity and carbon emissions: European evidence on curvilinear relationships and critical mass," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1958-1992, May.
    10. Aluchna, Maria & Roszkowska-Menkes, Maria & Khan, Sana, 2024. "Corporate governance perspective on environmental reporting : Literature review and future research agenda," Other publications TiSEM 63f6cd04-4cfd-4f63-afb8-2, Tilburg University, School of Economics and Management.
    11. Sumon Kumar Das & Md Khalilur Rahman & Songita Roy, 2024. "Does ownership type affect sustainability reporting disclosure? Evidence from an emerging market," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(1), pages 52-68, March.
    12. Nurshahirah Abd Majid & Amar Hisham Jaaffar & Raed Hussam Mansour Alzoubi, 2023. "The Impact of Women’s Role in Corporate Governance on Carbon Disclosure Performance: A Descriptive Study of Top 100 Global Energy Leaders," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 404-417, November.
    13. Zhengguang Li & Ping Li & Xibo Zhao & Ziying Tu, 2022. "Business Strategy and Environmental Information Disclosure Quality: Empirical Evidence from Chinese Heavy Pollution Listed Firms," IJERPH, MDPI, vol. 19(14), pages 1-18, July.
    14. Maria Aluchna & Maria Roszkowska‐Menkes & Sana Khan, 2024. "Corporate governance perspective on environmental reporting: Literature review and future research agenda," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1550-1577, May.
    15. Ezhilarasi G. & K. C. Kabra, 2017. "The Impact of Corporate Governance Attributes on Environmental Disclosures: Evidence from India," Indian Journal of Corporate Governance, , vol. 10(1), pages 24-43, June.
    16. Claudia Arena & Saverio Bozzolan & Claudia Imperatore, 2024. "Enhancing environmental reporting: A study on the role of narrative disclosure, firm‐ and country‐level incentives," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3414-3428, July.
    17. Nusirat Ojuolape Gold & Fauziah Md. Taib & Yaxin Ma, 2022. "Firm-Level Attributes, Industry-Specific Factors, Stakeholder Pressure, and Country-Level Attributes: Global Evidence of What Inspires Corporate Sustainability Practices and Performance," Sustainability, MDPI, vol. 14(20), pages 1-28, October.
    18. Fiaz Ahmad Sulehri & Saba Sharif, 2022. "The Impact of Firm Sustainability on Firm Growth: Evidence from USA," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 1-15, August.
    19. Yusuf, Fatima & Yousaf, Amna & Saeed, Abubakr, 2018. "Rethinking agency theory in developing countries: A case study of Pakistan," Accounting forum, Elsevier, vol. 42(4), pages 281-292.
    20. Driss, Hamdi & Drobetz, Wolfgang & El Ghoul, Sadok & Guedhami, Omrane, 2024. "The Sustainability committee and environmental disclosure: International evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 602-625.

    More about this item

    Keywords

    Environmental Disclosure; Manufacturing; Mining; Company Characteristics; Corporate Governance;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

    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:journ2:2024-02-16. 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.