Abstract
This study aims to determine differences in environmental disclosure practices in Indonesia, Malaysia, and Thailand and to identify factors that are suspected to influence environmental disclosure, including the size of the board of commissioners, profitability, and company size. The population of this study is large companies listed on the Bursa Efek Indonesia (BEI), the Bursa Malaysia (KLSE), and the Bursa Efek Thailand (SET) which are included in the largest stock market indexes in each exchange in 2018. The sampling method uses purposive sampling so that the research sample is 125 units of analysis. This study uses the One-Way ANOVA analysis and multiple regression analysis using the IBM SPSS 21 program. The results of the study indicate that there are no significant differences in environmental disclosure in Indonesia, Malaysia, and Thailand. The average level of environmental disclosure is 30.67% and included in the low category. The results of the multiple regression analysis showed that the size of the board of commissioners had a significant positive effect on environmental disclosure, while profitability and company size did not affect environmental disclosure.
Highlights
Social and environmental disclosure is seen as increasingly important to do because it will have an impact on the company's survival. Ghozali & Chariri (2014) explained that the issue of voluntary disclosure in the form of social and environmental disclosures has increased over the past few years
Profitability variables have a greater standard deviation value than their average value, indicating that the profitability data proxied with ROA is heterogeneous because the deviation of data is quite large compared to the average
The results of different environmental disclosure tests using One-Way ANOVA resulted in significance values of 0.134 and more than 0.05 so it can be concluded that there are no significant differences in environmental disclosure in Indonesia, Malaysia, and Thailand
Summary
Social and environmental disclosure is seen as increasingly important to do because it will have an impact on the company's survival. Ghozali & Chariri (2014) explained that the issue of voluntary disclosure in the form of social and environmental disclosures has increased over the past few years. Governments in several countries encourage companies to focus more on the environment and publish environmental reports by setting some regulations. Several regulations are governing social and corporate environmental disclosure in Indonesia, one of them is the Law of the Republic of Indonesia Number 40 of 2007 concerning Limited Liability Companies article 66 article 74, Statement of Financial Accounting Standards (PSAK) Number 1 (2012) paragraph 9 concerning Presentation of Financial Statements, and Regulation of the Financial Services Authority No 51/POJK.03/2017 on The Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies. In 2015 Malaysia issued a requirement that listed companies must disclose narrative statements on the management of economic materials, environmental and social risks (EES) as well as sustainability report opportunities in published annual reports. In Thailand, in 2008 the Stock Exchange of Thailand (SET) officially required social and AFEBI Accounting Review (AAR) Vol. No.02, December 2020 environmental reporting in the annual reports of listed companies (Suttipun & Stanton, 2012b)
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