The Effects of Institutional Ownership, Managerial Ownership, Audit Committee, Gender Diversity, and Profitability on Carbon Emissions Disclosure
Main Article Content
Abstract
This study aims to analyze the effects of institutional ownership, managerial ownership, audit committee, gender diversity, and profitability on carbon emission disclosure in non-financial companies listed on the Indonesia Stock Exchange during the 2021–2024 period. This study uses secondary data obtained from annual reports and sustainability reports published by companies listed on the Indonesia Stock Exchange. The sampling technique used was purposive sampling, resulting in a total sample of 56 companies with 224 firm-year observations over a four-year period. The dependent variable in this study is carbon emission disclosure, measured using the Carbon Emission Disclosure (CED) Index. The independent variables include institutional ownership, managerial ownership, audit committee, gender diversity, and profitability. The data analysis method used is multiple linear regression analysis, and the data have passed the classical assumption tests. The results indicate that institutional ownership, managerial ownership, and gender diversity have a negative and significant effect on carbon emission disclosure. Meanwhile, audit committee and profitability do not have a significant effect on carbon emission disclosure.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Al-Shaer, H., Salama, A., & Toms, S. (2017). Audit Committees and Financial Reporting Quality: Evidence from UK Environmental Accounting Disclosures. Environmental Accounting Disclosures, 18, 2–21.
Amaliyah, I., & Solikhah, B. (2019). The Effect of Environmental Performance and Corporate Governance Characteristics on Carbon Emission Disclosure. Journal of Economics, Management, Accounting and Technology, 2(2), 129–141. https://doi.org/10.32500/jematech.v2i2.720
Angelina, A., & Handoko, J. (2023). The Influence of Institutional Ownership, Audit Committees, and Environmental Performance on Carbon Emission Disclosure. Compartment: Scientific Journal of Accounting, 21(1), 49–68. https://doi.org/10.30595/kompartemen.v21i1.15834
Ben-Amar, W., Chang, M., & McIlkenny, P. (2017). Board Gender Diversity and Corporate Response to Sustainability Initiatives: Evidence from the Carbon Disclosure Project. Journal of Business Ethics, 142(2), 369–383. https://doi.org/10.1007/s10551-015-2759-1
Budanti, N. P. L., Rustiarini, N. W., & Putra, I. G. C. (2024). Institutional Ownership, Board Diversity, and Carbon Emission Disclosure. Airlangga Journal of Accounting and Business Research, 9(2), 210–223. https://doi.org/10.20473/jraba.v9i2.62591
Budiharta, P., & Kacaribu, H. E. P. B. (2020). The Influence of Board of Directors, Managerial Ownership, and Audit Committee on Carbon Emission Disclosure: A Study of Non-Financial Companies Listed on IDX. Review of Integrative Business and Economics Research, 9(3), 75–87. https://sibresearch.org/uploads/3/4/0/9/34097180/riber_9-s3_06_h19-121_75-87.pdf
Chariri, A., Januarti, I., & Yuyetta, E. N. A. (2018). Audit Committee Characteristics and Carbon Emission Disclosure. E3S Web of Conferences, 73, 1–5. https://doi.org/10.1051/e3sconf/20187302001
Choi, B. B., Lee, D., & Psaros, J. (2013). An Analysis of Australian Company Carbon Emission Disclosures. Pacific Accounting Review, 25(1), 58–79. https://doi.org/10.1108/01140581311318968
Dharma, F., Marimutu, M., & Alvia, L. (2024). Profitability and Market Value Effect on Carbon Emission Disclosures: The Moderating Role of Environmental Performance. International Journal of Energy Economics and Policy, 14(3), 463–472. https://doi.org/10.32479/ijeep.15915
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The Impact of Corporate Sustainability on Organizational Processes. NBER Working Paper Series, 1–35. https://doi.org/10.1007/s13398-014-0173-7.2
Elmagrhi, M. H., Ntim, C. G., Elamer, A. A., & Zhang, Q. (2019). A Study of Environmental Policies and Regulations, Governance Structures, and Environmental Performance: The Role of Female Directors. Business Strategy and the Environment, 28(1), 206–220. https://doi.org/10.1002/bse.2250
Fama, E. F., & Jensen, M. C. (1983). Separation of Ownership and Control. Corporate Governance: Values, Ethics and Leadership, 26(2), 163–188. https://doi.org/10.1086/467037
Freeman, R. E., & McVea, J. (1984). A Stakeholder Approach to Strategic Management. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.263511
Global temperatures likely to set new records in next 5 years. (2025). World Meteorological Organization. https://public.wmo.int/en/media/press-release
Hamdiyani, A. N. (2023). The Effect of Profitability and Environmental Performance on the Disclosure of Carbon Emissions With Managerial Ownership As a Moderating Variable. Journal of Master of Accounting, 10(1), 99–118. https://doi.org/10.25105/jmat.v10i1.15388
Hapsoro, D., & Sulistyarini, R. D. (2019). The Effect of Profitability and Liquidity on CSR Disclosure and Its Implication to Economic Consequences. The Indonesian Accounting Review, 9(2), 143–154. https://doi.org/10.14414/tiar.v9i2.1730
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm. Journal of Financial Economics, 3(4), 305–360.
Kiswanto, Widhiastuti, R., & Safitri, M. A. (2023). Institutional Ownership in Encouraging Carbon Emission Disclosure for Mining Companies, Basic Industries and Chemicals in Indonesia. Journal of Environmental Management and Tourism, 14(3), 632–644. https://doi.org/10.14505/jemt.v14.3(67).03
MoEF. (2023). Carbon Trading for the Achievement of NDC Targets, Indonesia's Contribution to the Global Climate Change Agenda. Ministry of Environment and Forestry of the Republic of Indonesia. https://ppid.menlhk.go.id/berita/siaran-pers/7443/perdagangan-karbon-untuk-pencapaian-target-ndc-kontribusi-indonesia-bagi-agenda-perubahan-iklim-global
Kurnia, P., Emrinaldi Nur, D. P., & Putra, A. A. (2021). Carbon Emission Disclosure and Firm Value: A Study of Manufacturing Firms in Indonesia and Australia. International Journal of Energy Economics and Policy, 11(2), 83–87. https://doi.org/10.32479/ijeep.10730
Ladista, R. D., Lindrianasari, L., & Syaipudin, U. (2023). Determinants of Carbon Emission Disclosure and Their Impact on Financial Performance. Owner, 7(3), 2262–2283. https://doi.org/10.33395/owner.v7i3.1535
Muhammad, H., & Migliori, S. (2022). Effects of Board Gender Diversity and Sustainability Committees on Environmental Performance: A Quantile Regression Approach. Journal of Management and Organization, 29(6), 1051–1076. https://doi.org/10.1017/jmo.2022.8
Climate change exacerbates the 10 deadliest extreme weather events since 2004. (2024). https://www.antaranews.com/berita/3972894
Pratama, Y. M. (2021). Analysis of Determinants of Carbon Emission Disclosure in Indonesia. Mode, 33(2), 120–137. https://doi.org/10.24002/modus.v33i2.4644
Puspita Wulandari, J., Siagian, A., & N. (2024). Enhancing Transparency to Mitigate Information Asymmetry: A Study of LQ 45 Companies. KnE Social Sciences, 2024, 166–180. https://doi.org/10.18502/kss.v9i25.16960
Saka, C., & Oshika, T. (2014). Disclosure Effects, Carbon Emissions and Corporate Value. Sustainability Accounting, Management and Policy Journal, 5(1), 22–45. https://doi.org/10.1108/SAMPJ-09-2012-0030
Simamora, R. N. H., Safrida, & Elviani, S. (2022). Carbon Emission Disclosure in Indonesia: Viewed from the Aspect of Board of Directors, Managerial Ownership, and Audit Committee. Journal of Contemporary Accounting, 4(1), 1–9. https://doi.org/10.20885/jca.vol4.iss1.art1
Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics.
Suchman, M. C. (1995). Managing Legitimacy: Strategic and Institutional Approaches. Academy of Management Review, 20(3), 571–610. https://doi.org/10.2307/258788
Yang, J., Takahashi, K., Yamadera, S., & Tian, S. W. (2024). Environmental, Social, and Governance Materiality in XBRL Disclosures and Its Performance Predictability: Evidence from Japan. In ADB Economics Working Paper. https://ideas.repec.org/p/ris/adbewp/0744.html
Yusuf, M. (2021). Determinants of Carbon Emission Disclosure in Manufacturing Companies. Journal of Accounting and Business, 8(1), 72–85.