Carbon Emission Disclosure Research Articles

Dampak Kualitas Auditor dalam Pengungkapan Emisi Karbon Terhadap Nilai Perusahaan: Studi Empiris pada Perusahaan yang Terdaftar di Bursa Efek Indonesia Periode 2019-2022

This research aimed to test and analyze the effect of carbon emission disclosure and enviromental performance on firm value with audit quality as a moderating variable. Carbon emission disclosure is measured by calculating the carbon emission disclosure checklist index, enviromental performance is obtained from secondary data from the Indonesian Ministry of Envirement’s PROPER report, firm value is measured by Tobin’s Q, and audit quality is measured by the size of KAP. The sample was taken using a purposive sampling technique totaling 28 non-financial companies listed on the IndonesiaStock Exchange (IDX) for teh 2019-2022 period and having a PROPER rating for the 2019-2022 period. The data analysis technique used Structural Equation Modeling Partial Least Square (SEM-PLS) analysis with the help of the WarpPls 7.0 program. The result of the study indicate that: 1) There is a positive effect of carbon emission disclosure on firm value. 2)There is a positive effect of enviromental performance on firm value. 3) Audit quality does not moderate the effect of carbon emission disclosure on firm value. 4) Audit quality does not moderate the effect of enviromental performance on firm value.

Analisis Pengaruh Eko Efisiensi, Inovasi Hijau, Pengungkapan Emisi Karbon, Dan Kinerja Lingkungan Terhadap Nilai Perusahaan Dengan Ukuran Perusahaan Sebagai Variabel Kontrol

This research aims to analyze the influence of eco-efficiency, green innovation, carbon emission disclosure, and environmental performance on corporate value. The research sample consists of Consumer Non-Cyclical companies listed on the Indonesia Stock Exchange during the 2021-2023 period and received the PROPER ratings through the KLHK website. The research results show that eco-efficiency, green innovation, carbon emission disclosure, and environmental performance has a positive effect on corporate value.

KINERJA LINGKUNGAN DAN PROFITABILITAS TERHADAP CARBON EMISSION DISCLOSURE PADA PERUSAHAAN CONSUMER NON CYCLICALS

The issue of environmental change is currently a hot topic throughout the word. The biggest cause of global warming is industrial activities which are increasingly developing and also producing large amounts of emissions. Therefor, disclosing carbon emissions is a form of corporate social and moral responsibility toword society to reduce carbon emissions. This research is entitled The Influence of Environmental Performance and Profitability on Carbon Emission Disclosure in Non Cyclical Consumer Companies Listed on the Indonesia Stock Exchange in 2021 – 2022. This research aims to test and analizy the influence of environmental performance and profitability on carbon emission disclosure. This sample in this research is secondary data from non cyclicals consumer companies listed on the Indonesia Stock Exchange (BEI). The sampling techique used purposive sampling with a total sample obtained 18 companies with observations for 2 years. Current environmental performance and profitability have a significant impact on CO2 emission disclosure. this is because companies that are major consumer with strong environmental dan profitability tend to be better at disclosing their carbon emissions to gain investor trust

Carbon emissions disclosure and firm value: A study of firms in Indonesia

Carbon emissions disclosure and firm value: A study of firms in Indonesia

The Effect of Green Accounting, Carbon Emission Disclosure and Operating Costs on Firm Value with the Sharia Muqashid Index as a Mediating Variable

The purpose of the research is to find out how green accounting, carbon emission disclosure, and operating cost impact on firm value with the help of sharia muqashid index as a mediating variable. Population of this research is Islamic comercial banks and Islamic business units registrasion with Financial Servises Authority in 2021-2023. Using the purposive sampling method, 18 entities we selected as samples with 54 observations. This research uses quantitative methods using secondary data from the OJK. This study found that the R2 value in test I was 20,96% and test II was 39,01 %. After testing this research provides results that carbon emission disclosure affects the muqashid sharia index, green accounting and operating costs have no effect on muqashid sharia index, then carbon emission disclosure and operating costs affect the firm value, and muqashid sharia, green accounting has no effect on firm value. As for mediating variable, carbon emission disclosure can influence the firm value through the muqashid sharia index.

Determinants of Carbon Emission Disclosure in Non-Financial Companies Listed on IDX

According to a report by the Climate Transparency organization, Indonesia is in a critical situation. The organization states that the Indonesian government is not taking adequate steps to meet the Paris Agreement's target of limiting global temperature rise to 1.5°C. As the world's fifth-largest carbon emitter, Indonesia requires concrete actions to reduce its carbon emissions. One approach is to enhance the responsibility and accountability of companies in carbon-intensive industries to disclose their emissions. This study aims to identify the factors influencing carbon emission disclosure. The research uses a population of non-financial sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2021-2023, with 52 samples selected through purposive sampling. Multiple linear regression analysis is applied in this study to examine the relationship between the independent variables and the dependent variable. The results show that firm size affects carbon emission disclosure, while leverage and managerial ownership do not impact carbon emission disclosure.

“Carbon” boards and transition risk: Explicit and implicit exposure implications for total stock returns and dividends payouts

Transition risk disclosure facilitates investors' understanding of the potential company-level risks associated with a low-carbon transition. Among the others, stricter regulations could undermine companies' financial performances, affecting operations costs and revenues and their impact being proportional to the business carbon intensity. Transition risk disclosure takes two forms. One is a textual description of transition risk in compulsory and voluntary non-financial disclosure. The other is the disclosure of carbon emissions and intensity, which is implicitly associated with transition risk exposure. We empirically assess the impact of the two transition risk measures on shareholder returns to test the “carbon premium” hypothesis. We consider shareholder return as the sum of capital gain and dividend paid and analyse the impact of transition risk on both. Evidence supports the “carbon premium” hypothesis but suggests such a premium is transferred to shareholders primarily via dividend payouts. One possible explanation consistent with this evidence is that boards in highly polluting companies use dividends to compensate investors for the relatively lower capital gain, dissuading them from divesting due to low returns, stigmatisation effects and regulatory risks.

Financial performance and carbon emission disclosure

PurposeThis study aims to investigate the impact of financial performance on carbon emission disclosure.Design/methodology/approachThe study uses ordinary least squares (OLS) multiple regression analysis on a sample of 177 Financial Times Stock Exchange 350 index (FTSE-350) non-financial firms to test the impact of market (Tobin’s Q) and accounting (return on equity) financial performance indicators on carbon emission disclosure.FindingsThe results show that the financial performance market indicator has a significant positive impact on carbon emission disclosure. The accounting indicator illustrates similar results except for Scope 3, where the results are insignificant. This study may help firms understand how financial performance affects carbon emission disclosure, particularly by showing that high-performing firms are motivated to maintain strong environmental practices and enhance carbon emission awareness.Originality/valueThis paper enhances stakeholders’ understanding of how firms’ environmental policies align with their financial objectives, thereby expanding knowledge in carbon accounting.

Carbon Emissions Disclosure are Reviewed of Firm Characteristics, Environmental Performance and Women on the Board of Directors

Purpose: This study aims to test and analyze the effect of company size, company age, environmental performance and women on the board of directors on the disclosure of carbon emissions in energy sector companies listed on the Indonesia Stock Exchange for the 2019-2021 period.Method: The data analysis method used, namely multiple linear regression analysis. The sampling technique in this study used purposive sampling technique and obtained a sample of 60 companies, so that the number of observations was 180 observations.Findings: The results of this study indicate that company size and environmental performance affect the disclosure of carbon emissions. While the age of the company and women in the board of directors have no effect on the disclosure of carbon emissions.Originality/Value: The results of this research will most likely help companies develop their understanding of environmental issues, especially in disclosing carbon emissions These findings can assist companies in developing carbon emission management strategies by considering factors such as company size and environmental performance. In addition, the results of this study may increase corporate awareness of the importance of corporate sustainability in business practices.

Exploring the impact of carbon emission disclosure on firm financial performance: moderating role of firm size

PurposeBased on stakeholder and legitimacy theory, this paper aims to investigate the impact of carbon emission disclosure on firm financial performance. Further, the study attempts to explore the potential moderating effect of firm size on this relationship.Design/methodology/approachThe study is based on BSE 100 Indian firms for the period of 2018–2019 to 2020–2021. The association between carbon emission disclosure and firm financial performance, along with the moderating role of firm size, has been explored through regression models.FindingsThe present study confirmed the significant and negative association between carbon emission disclosure and firm financial performance. Furthermore, results reveal that firm size positively moderates the relationship between carbon emission disclosure and firm financial performance.Social implicationsCarbon emission disclosure helps corporate organizations advance the issues of climate change disclosure both nationally and globally.Originality/valueTo the best of the authors’ knowledge, the current study is the first of its kind to explore the potential moderating effect of firm size on the relationship between carbon emission disclosure and firm financial performance. The current study provides significant novel insights into sustainability, climate change and finance literature.

The Influence of Industrial Type, Media Exposure and Institutional Ownership on Carbon Emission Disclosure

The Influence of Industrial Type, Media Exposure and Institutional Ownership on Carbon Emission Disclosure

The Influence of Carbon Performance, Stakeholder Pressure and ISO 14001 Certification on Carbon Emission Disclosure

The Influence of Carbon Performance, Stakeholder Pressure and ISO 14001 Certification on Carbon Emission Disclosure

Factors Affecting Carbon Emission Disclosure And Its Impact On Company Financial Performance (Study Of Energy Sector Companies Listed On The IDX In 2020-2022)

This research aims to determine the influence of carbon performance, environmental costs, and green product innovation on carbon emission disclosure and its impact on financial performance (a case study of Energy Sector Companies Listed on the IDX in 2020-2022). The population in the research is energy sector companies listed on the BEI in 2020-2022. The research sample was selected using a purposive sampling technique, namely a sample determination technique using predetermined criteria, so that a total sample of 54 research samples was obtained. This research method uses quantitative methods. This research uses secondary data obtained through the publication of financial reports, annual reports and sustainability reports for each energy sector company listed on the Indonesia Stock Exchange (BEI). The research results show that carbon performance and green product innovation have a positive and significant effect on carbon emissions disclosure. Environmental costs have a negative but not significant effect on carbon emissions disclosure. Carbon performance has a negative and significant effect on financial performance. Environmental costs have a positive and significant effect on financial performance. Green product innovation has a negative but not significant effect on financial performance. Disclosure of carbon emissions has a positive and significant effect on financial performance. Carbon performance and green product innovation have a positive and significant effect on financial performance through carbon emission disclosure. Environmental costs have a negative but insignificant effect on financial performance through carbon emission disclosure.

Sustainability of Sharia Effects: Evidence from the Markets of Indonesia and Malaysia

This study is designed to assess the empirical impact of increased profitability, leverage, and carbon emission disclosure on the scale of sustainability reporting. A quantitative method was chosen as the primary approach, relying on secondary data as a source of information. Observations were conducted on manufacturing entities listed in the Sharia Securities List in Indonesia and Malaysia during the period from 2021 to 2023, using purposive sampling techniques resulting in a sample of 105 companies. Descriptive and verificative statistical methods were employed for data analysis, including panel data regression using fixed effects models. Eviews 12 software was adopted as the analytical tool. The empirical findings of this research indicate that increased profitability and carbon emission disclosure significantly contribute to the expansion of sustainability reporting disclosure. On the other hand, increased leverage does not have a significant negative impact on the scale of sustainability reporting disclosure.

The role of women in top management in carbon emission disclosure – Evidence from banking entities in ASEAN

Previous empirical research suggests that the characteristics of individuals in the board of directors or peak management teams should be examined. There is a significant gap related to the role of women in the upper level of management and disclosure of carbon emissions. Therefore, this study aims to review the impact of women in top management positions on carbon emission disclosure in the ASEAN banking sector. We analyzed data from 146 banks throughout ASEAN from 2018 to 2022, comprising 719 data of observation. Sample selection employed purposive sampling. Statistical analysis was conducted using Stata MP 17 software, with the fixed effect model identified as the appropriate regression model through Chow, LM, and Hausman tests. Our empirical findings reveal a significant influence of women in upper management, specifically on carbon emission disclosure, as assessed through both Board of Directors (BOD) and audit committee perspectives. These findings have implications for investors and policymakers which support ASEAN countries in achieving net zero pledge, so that sustainability goals related to climate change can be achieved.

The Impact of Family Firms and Supervisory Boards on Corporate Environmental Quality

This paper examines the impact of family ownership and supervisory board characteristics on carbon emission disclosure. It uses balanced panel data and a matched-pair design of 124 non-financial firms listed on the Indonesia Stock Exchange from 2017 to 2019. This study finds that family firms and larger boards improve, while female board members harm carbon emission performance. Further analyses reveal non-linear relationships between family ownership and carbon performance. When control rights are limited, family firms prioritize controlling managers and improving carbon quality. Conversely, they prioritize personal objectives over environmental concerns when there are high control rights, resulting in decreased carbon emission performance. Additionally, family board members generate more carbon information, indicating the family owners effectively utilize their position on the supervisory boards to influence the company’s carbon emission performance. Finally, the study reports that more faculty member boards seem to hurt carbon emission reduction efforts. This result suggests that the diversity of their professional experiences does not affect the environmental effectiveness of supervisory boards. Our findings highlight the importance of understanding SEW principles and their connection to families in comprehending Indonesian corporate carbon emissions disclosures. The findings of this study enrich the worldwide literature by exploring the potential benefits of family business environmental performance. This study also adds to the literature on corporate governance, especially the role played by supervisory boards. Our findings align with the resource dependence theory, emphasizing the central function of supervisory boards as a monitoring tool. This study is constrained by its reliance on carbon emission data extracted from the annual reports of public firms, with a particular emphasis on pre-COVID-19 data. Future research should focus on sustainability reports and explore the time frame encompassing COVID-19 (2020–2022 datasets) to determine any differences in the findings.

DO GREEN ACCOUNTING AND CARBON EMISSION DISCLOSURE AFFECT STOCK RETURN?

Environmental issues such as climate change can be an external factor that influences stock price fluctuations and stock returns. This research aims to analyze the impact of carbon emission disclosure, green accounting practices, and profitability on the share returns of food and beverage sector companies listed on the Indonesia Stock Exchange during the period 2020 to 2022. This research uses a quantitative approach, multiple linear regression analysis methods, and a sample of 54 companies. The results of this study indicate that profitability has a significant impact on stock returns. However, carbon emission disclosure and green accounting do not significantly impact stock returns. The results of this research can be a reference for companies and investors who want to pay closer attention to environmental conditions.

The Impact of Carbon Emission Disclosure on Firm Value

The Impact of Carbon Emission Disclosure on Firm Value

Determining Carbon Emissions Disclosure in Indonesian Companies

Determining Carbon Emissions Disclosure in Indonesian Companies

Transparency pays: How carbon emission disclosure lowers cost of capital

Amidst increasing global attention on corporate environmental responsibility, the impact of carbon emission disclosure on financial outcomes remains a pertinent question. Existing literature suggests that transparency in carbon disclosure can influence investor perception and capital costs, yet detailed mechanisms and broader economic implications are less understood. In this study, using data from Chinese publicly traded companies from 2017 to 2022, we investigate how carbon emission disclosure affects the implied cost of capital, with a focus on the mediating role of stock liquidity. Our findings reveal that enhanced transparency in carbon reporting significantly lowers the implied cost of capital by improving stock liquidity, a previously underexplored channel. This effect is particularly pronounced in sectors with high carbon footprints and within regions emphasizing sustainable finance policies. The results underscore the economic benefits of environmental transparency, suggesting that robust disclosure practices can serve as a strategic tool for firms to reduce financing costs while contributing to broader sustainability goals.