Environmental Disclosure Information: The Role of Environmental Certification and Firm Size

Abstract

Activities disclosure reflects corporate accountability, responsibility, and transparency to investors and other stakeholders. Therefore, the objectives of this study are to analyze and empirically test the effect of the board of directors and the environment certification at 36 mining companies listed on the Indonesia Stock Exchange within 2019-2021 with 108 annual reports. The results of multiple linear regression data processing showed that the board of directors could not increase the amount of environmental disclosure information. Meanwhile, environmental certification and firm size can increase the amount of environmental disclosure information. The implication of this research is companies need to disclose enviromental information in order to gain business trust from the public, investors and other stakeholders.

The Implication of Profitability as a Moderating in the Relation of Environmental Certification and Financial Performance to Market Reaction

“…One indicator of companies that cares about the environment is a company with an environmental certification, namely ISO 14001 (Kasbun et al, 2016). ISO 14001 certificate ownership is one form of environmental information disclosure which signals to the government, investors, consumers, and other stakeholders that the company has implemented green manufacture (Indriastuti, Chariri and Fuad, 2022;Mao and Wang, 2019). It can be used to improve the company's good image in the eyes of investors and increase stakeholder satisfaction (Tuppura, Toppinen and Puumalainen, 2016;Chiarini, 2017;Purwanto et al , 2021).…”