Investors React to Disclosure of Carbon Emissions and Environmental Performance (original) (raw)
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KnE Social Sciences, 2018
This study aims to examine the impacts of carbon emission disclosure, environmental performance, and social performance on financial performance of PROPER participating companies listed in Indonesia Stocks Exchange during the years 2013-2016. Methods to measure the carbon emission disclosure are obtained from checklists based on the requisition sheet of the Carbon Disclosure Project (CDP). The environmental performance is measured using PROPER assessment results retrieved from the annual reports, as well as the sustainability reports. The social performance is assessed using social reporting performance scores through the analysis that is given by the Global Reporting Initiative (GRI) G4 Guidelines. Meanwhile, financial performance is measured using Return on Asset (ROA). The samples in this study are applied using purposive sampling, and 87 PROPER participating companies listed in Indonesia Stocks Exchange during the years 2013-2016 have been obtained. The results of this study show that the carbon emission disclosure, and environmental performance have significant positive impacts on the financial performance, meanwhile the social performance does not significantly influence the financial performance.
Accounting Analysis Journal, 2020
The objective of this study is to find out what factors that can have an impact on carbon emissions disclosure in non-financial companies listed on the Indonesia Stock Exchange that publish sustainability reports for the year 2014-2016. The variables that would be tested in this study are independent variables consisting of industry type, company size, profitability, leverage and corporate governance, as well as the dependent variable which is the carbon emissions disclosure. Based on secondary data and purposive sampling methods, a total of 57 companies were obtained as research samples. Multiple linear regression is used as a model analysis of this study. Based on the test results, it has been found that the variables that have a significant influence on the level of carbon emissions disclosure are industry type, company size and leverage, while the remaining variables were found to have no significant effect.
Carbon Emission Disclosure and Environmental Performance Effect on Firm Value
IJASS PUBLICATION, 2022
Companies as carbon emitters must show their responsibility towards the environment by reducing carbon emissions. In order to gain legitimacy, companies need to disclose their carbon emission and have good environmental performance. These two aspects are very important because they will impact investors' perceptions and the value of the firm. This paper determines the impact of the disclosure of carbon emissions and environmental performance on firm value. The sample is seven companies on the SRI-KEHATI index from 2016-2020 (5 years). This study used quantitative methods. The secondary data is obtained from published financial reports by the Indonesia Stock Exchange (www.idx.com), sustainability reports, annual reports published through the company's website, and the Ministry of Environment and Forestry's Decree about the PROPER selection from (proper.menlhk.go.id). In order to test the hypothesis, multiple linear regression is used. This study result shows that: carbon emission disclosure has no affect the firm's value. While the environmental performance positively affects the firm value, the carbon emission disclosure and environmental performance positively affects firm's value.
INTERNATIONAL JOURNAL OF ECONOMICS, BUSINESS AND APPLICATIONS
This study aims to examine empirically the factors that influence greenhouse gas emission disclosure. Factors examined in this research are a type of industry, firm size, profitability, and leverage. In this study, the researcher adopted the checklist issued by the Carbon Disclosure Project (CDP) to measure the extensive disclosure of greenhouse gas emissions. To examine the factors, the researcher utilized multiple regression. The population of this study was all manufacturing companies listed on the Indonesian Stock Exchange in 2018. This research applied the purposive sampling method to obtain 131 listed manufacturing in 2018. The result implies that firm size has a positive and significant correlation with greenhouse gas emission disclosure. Meanwhile, type of industry, profitability, and leverage had no significant correlation with greenhouse gas emission disclosure. Manufacturing companies, especially greenhouse gas-intensive companies, must participate in protecting the envir...
Jurnal Ilmiah Akuntansi dan Bisnis (JIAB), 2019
This study aimed to investigates the effect of greenhouse gas emissions disclosure and environmental performance on firm value. The samples were companies participating in the Performance Rating Assessment Programme on Environment Management (PROPER/Program Penilaian Peringkat Kinerja Perusahaan) of the Ministry of Environment Republic of Indonesia that are listed in the Indonesia Stock Exchange (BEI) 2014-2017 period. The data used were secondary data from annual reports and/or sustainability reports. This study uses moderated regression analysis with panel data processed by using EViews. The results of this research found that greenhouse gas emissions disclosure and environmental performance have a positive effect on firm value. Environmental performance can moderate the relationship between greenhouse gas emissions disclosure and firm value. Debt to equity ratio and net operating income as control variables have a positive effect on firm value, but firm size has a negative effect on firm value.
IOP Conf. Series: Earth and Environmental Science 1359, 2024
Industrial development has a detrimental impact on the Earth's rising surface temperature, primarily due to greenhouse gas emissions. In Indonesia, the energy sector was the leading contributor to carbon emissions until 2022. This study aims to investigate the relationship between financial, carbon, and environmental performance and carbon emissions disclosure. The sample for this research was selected using a purposive sampling method, comprising 20 energy sector companies listed on the Indonesian Stock Exchange. Panel data regression analysis was conducted, with carbon emissions disclosure being the dependent variable and profitability, leverage, environmental performance, company size, and carbon performance as the independent variables. The study's results indicate that financial performance, environmental performance, and company size have a significant impact on carbon emissions disclosure, while leverage and carbon performance do not have a significant effect.
Factors That Can Be Predictors of Carbon Emissions Disclosure
Jurnal Akuntansi - Fakultas Ekonomi Universitas Tarumanagara, 2021
This research is to analyze the role of ISO 14001, performance environment index PROPER, environmental committee, and foreign diversity to carbon emissions disclosure in the plantation company that registered at the Indonesian stock exchange of 2013 to 2019. The data used was 77 companies. The testing of hypotheses uses multiple linear regression with a minimal significance of 5%. this research proves that there is four a variable that has a significant result on the disclosure of the carbon emission in plantation company that is ISO 14001, performance environment index PROPER, environmental committee and Foreign diversity. Three variables have no effect on the disclosure of carbon emissions that is age company, leverage, and return of equity. This research can be used stakeholder to see the company's responsibilities through their environment to ensure there is no risk in the company's future performance before reaching their investment decision.
Determinants of Carbon Emission Disclosure: An Empirical Study on Indonesian Manufacturing Companies
The Indonesian Accounting Review
Due to the worsening environmental issues e.g, climate change, the stakeholders impose greater demand and pressure more towards the companies of caring about the environment. The emergence of carbon accounting is a supplement to the adoption of Kyoto Protocol. However, the government has not applied carbon accounting to all companies in Indonesia, because of non-explicit laws and low quality of human resources. Various studies have been conducted to find the determinant factors for companies to make carbon emission disclosure. This research aims at examining the influence of type of industry, profitability, company size, environmental performance, and audit firm reputation on the carbon emission disclosure of manufacturing companies listed on the Indonesia Stock Exchange years 2016-2019. It employed a purposive sampling technique and obtained 290 observations and the data were analyzed using Ordinary Least Square. The shows that type of industry, profitability and company size influ...
JURNAL DINAMIKA MANAJEMEN DAN BISNIS, 2021
This research was conducted to know the company's characteristics, the determining factors for the disclosure of carbon emissions, and the impact of the disclosure of carbon emissions on economic consequences. The financial result in this study is the decision-making behavior of businesses, governments, and creditors as a result of accounting reporting, in this case, environmental disclosures contained in annual reports and sustainable reports. This study's sample amounted to 45 companies registered in Indonesia, Malaysia, Thailand, and the Philippines, with an observation period of 2008 to 2017. To measure the disclosure of carbon emissions by creating a checklist based on information from the CDP. Company characteristics are proxied by profitability, leverage, size, and sales growth, while economic consequences are proxied by the bid-ask spread, trading volume, and stock price volatility. The analytical method used in this study is the Partial Least Square (PLS) method usi...
Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia
This study aims to determine whether environmental performance, seen from the company's obligation to present PROPER, can increase the disclosure of carbon emissions. The population of this study is the mining sector companies listed on the Indonesia Stock Exchange for the 2016-2019 period. The purposive sampling technique was used in this study and resulted in 144 sample units-analysis of research data using Partial Least Square with WarpPLS software. The results show that profitability does not affect carbon emission disclosures, while leverage, company size, and institutional ownership affect the disclosure of carbon emissions. Only leverage has a negative effect, and others have a positive impact. Environmental performance as a moderating variable cannot strengthen or weaken the impact of profitability, leverage, firm size, and institutional ownership on carbon emission disclosures. This study concludes that the carbon emission disclosures of mining companies will increase when the company's firm size and institutional ownership increase but will decrease as mining companies have high debt. The environmental performance of the sample companies is still not optimal, which causes it to be unable to moderate the effect of the variables tested on the disclosure of carbon emissions.