Abstract
This study aims to analyze and obtain empirical evidence regarding the size of the company, the leverage level, and the profitability of carbon emission disclosure as well as how its impact on investor reaction. The population of this study was manufacturing companies listed on the Indonesia Stock Exchange in the 2016-2018 period. 105 companies were involved as the sample of this study selected using a purposive sampling method. The obtained data were then analyzed using multiple regression analysis and simple regression analysis. The results of this study were company size, leverage level, and profitability simultaneously affect carbon emission disclosure. To be specific, company size does not affect carbon emission disclosure while leverage level negatively affects carbon emission disclosure. Meanwhile, profitability affects carbon emission disclosure, while the effect of carbon emission disclosure does not affect the investor reaction. Keywords: carbon emission disclosure, CSR, investor reaction, profitability, company size, and leverage DOI: 10.7176/RJFA/11-22-11 Publication date: November 30 th 2020
Highlights
1.1 Research BackgroundNowadays, global warming is an urgent issue that is of concern to the world community
It can be inferred that the amount of carbon emission disclosure of manufacturing companies listed on the IDX for the 2016-2018 period was between 0.06 and 0.94 with a mean score of 0.3364 and a standard deviation of 1.18892
The F-test results above show that the significance value of the test was 0.000 < 0.05 (α = 5%). This proves that the variables of company size, leverage level, and profitability simultaneously affect CED (H1 is accepted)
Summary
Global warming is an urgent issue that is of concern to the world community This condition is caused by excessive concentrations of carbon emissions arising from agriculture, land clearing, burning fossil fuels, and other human activities. Some impacts of global warming are the melting of ice peaks which rising the sea levels and earth temperatures and significant climate change. Those impacts might cause harm to the environment and human life. The occurrence of land fires in Jambi, Pekanbaru, Kalimantan, and some parts of Sumatra Island in August and September 2019 Those fires made Indonesia a major source of carbon emissions. Business people in Indonesia are required to think about the importance of protecting land in Indonesia to reduce carbon emissions
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