Carbon Emission Disclosure, Media Exposure, Environmental Performance, Characteristics of Companies: Evidence from Non Fincancial Sectors In Indonesia

Abstract

This paper is aiming to analyze the influence of media exposure, environmental performance, type of industry, company size, profitability and leverage on the carbon emission disclosure in non financial sectors in Indonesia. The carbon emission disclosure was measured by scoring a checklist of the carbon emission disclosure. The media exposure, environmental performance, type of industry, company size, profitability and leverage are the determinants of the carbon emission disclosure. This research used secondary data with the population of all the non-financial sector public companies that joined environmental awards (PROPER) from 2014-2017. The 21 samples of companies were selected by using the purposive sampling technique. This research used the multiple linear regression using Eviews 10. The results proved that media exposure, type of industry and profitability have a positive and significant influence on the carbon emission disclosure, whereas environmental performance, company size and leverage have no influence on the carbon emission disclosure. This research contributes to the development of green accounting in Indonesia and expects that related parties can develop a better evaluation and planning in increasing the carbon emission disclosure of companies in Indonesia.

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

“…Previous research conducted by Rahayu et al (2021) found that media exposure can significantly influence environmental disclosure. The same was found by Ulupui et al (2020) who stated that media exposure significantly influences corporate social responsibility (CSR) disclosure or carbon emission disclosure. Based on the explanation above, the following hypothesis is formulated: H 3 : Media exposure has a positive effect on carbon emissions accounting disclosures.…”

“…Based on the study of Abdullah et al (2020) and also Ulupui et al (2020), the measurement of media exposure in this study is measured using a dummy variable where the company gets a value of 1 if it discloses information related to carbon emissions disclosure via the company website, or on other media such as online news portals, and a value of 0 otherwise.…”

“…Research on media exposure is also now starting to be carried out by researchers to see its impact on the disclosure of carbon emissions. Previous research conducted by Ulupui et al (2020) stated that media exposure significantly influences the disclosure of carbon emissions. This study will analyze the influence of corporate governance, earnings management, and media exposure on CEAD in one comprehensive model.…”

The Influence Of Profitability, Company Size, Media Exposure, And Leverage On Carbon Emissions Disclosure

“…As a result, more and more companies are actively providing carbon emission data on websites, in the form of annual reports and sustainability reports. Research conducted (Abdullah et al, 2020;Tavakolifar et al, 2021;Ulupui et al, 2020), states that increased disclosure of corporate carbon emissions, occurs when high media exposure addresses excessive carbon emissions. According to signaling theory, when a company increases the disclosure of reduced carbon emissions through media exposure, investors receive good signals in the form of information about the company's environmental performance.…”

“…According to the results of the study (Nasih et al, 2019;Ulupui et al, 2020), media exposure and oversight of corporate policies can improve social and environmental performance. Thus, media exposure can make it easier for stakeholders to know environmental conditions and performance related to carbon emissions produced.…”