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Carbon Emissions Accounting Disclosure: An Empirical Analysis during the Covid-19 Pandemic Period in a Developing Country

Author

Listed:
  • Maria Entina Puspita

    (Accountant Professional Education Program, Universitas Diponegoro, Semarang, Indonesia; & STIE AMA, Salatiga, Indonesia)

  • Dwi Ratmono

    (Department of Accounting, Universitas Diponegoro, Indonesia)

  • Mitsalina Tantri

    (Accountant Professional Education Program, Universitas Diponegoro, Semarang, Indonesia)

  • Yohanes Julianto

    (Accountant Professional Education Program, Universitas Diponegoro, Semarang, Indonesia)

  • Rizki Ridhasyah

    (Accountant Professional Education Program, Universitas Diponegoro, Semarang, Indonesia)

Abstract

Carbon emissions accounting disclosure (CEAD) is an interesting research area that is related to the increase in global warming that is being caused by the use of non-renewable energy. However, there has been no research that has tested the disclosure of carbon emissions during the COVID-19 pandemic using a comprehensive model. Apart from that, there is still limited previous research that focuses on developing countries where the use of fossil-based energy has become an important issue at the moment. In this sense, this study aims to contribute to CEAD by analyzing earnings management, corporate governance, and media exposure as determinants of CEAD in Indonesia, a developing country. The sample consists of 244 firm-year manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2020-2022 period. The test results, using partial least squares-structural equation modeling (PLS-SEM), indicate support for legitimacy theory, namely the view that corporate governance and media exposure have a positive effect on the level of CEAD. Drawn from the COVID-19 pandemic period, the empirical evidence from this study shows that the sample of manufacturing companies tended to carry out income-increasing earnings management and the disclosure of carbon emissions tended to be low.

Suggested Citation

  • Maria Entina Puspita & Dwi Ratmono & Mitsalina Tantri & Yohanes Julianto & Rizki Ridhasyah, 2024. "Carbon Emissions Accounting Disclosure: An Empirical Analysis during the Covid-19 Pandemic Period in a Developing Country," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 37-45, March.
    • Handle: RePEc:eco:journ2:2024-02-4
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    References listed on IDEAS

    as
    1. Badolato, Patrick G. & Donelson, Dain C. & Ege, Matthew, 2014. "Audit committee financial expertise and earnings management: The role of status," Journal of Accounting and Economics, Elsevier, vol. 58(2), pages 208-230.
    2. 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.
    3. Azlan Amran & Vinod Periasamy & Abdul Hadi Zulkafli, 2014. "Determinants of Climate Change Disclosure by Developed and Emerging Countries in Asia Pacific," Sustainable Development, John Wiley & Sons, Ltd., vol. 22(3), pages 188-204, May.
    4. Marco Allegrini & Giulio Greco, 2013. "Corporate boards, audit committees and voluntary disclosure: evidence from Italian Listed Companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 187-216, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Carbon Emissions Accounting Disclosure; Earnings Management; Corporate Governance; Media Exposure;
    All these keywords.

    JEL classification:

    • 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
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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