What Drives Environmental Disclosure? Evidence from Mining Companies Listed on The Indonesia Stock Exchange

Authors

  • Kumba Digdowiseiso Faculty of Economics and Business, University of National, Jakarta, Indonesia.
  • Bambang Subiyanto Faculty of Economics and Business, University of National, Jakarta, Indonesia.
  • Retno Setioningsih Faculty of Economics and Business, University of National, Jakarta, Indonesia

DOI:

https://doi.org/10.32479/ijeep.13170

Abstract

This study aims to analyse the effects of environmental performance, profitability, and leverage on the environmental disclosure in mining industry sector companies listed on the Indonesia Stock Exchange. The sample of this study was 15 mining companies which were selected by using a purposive sampling technique. We collected the company's annual report over the period 2014 – 2021. The results showed that environmental performance had a positive and significant effect on environmental disclosure. In this case, the Corporate Performance Rating Program (PROPER) rating was able to prove that there was a significant influence between the Global Reporting Initiative (GRI) as a form of its responsibility and the extent of environmental disclosure. In addition, profitability produced a negative and significant effect on environmental disclosure. The company considered that it was no longer necessary to carry out environmental disclosure when the company has made a profit annually because the company's environmental performance was good. Finally, leverage had a negative and significant effect on environmental disclosure. Thus, when the leverage of the company reached the maximum point, the company chose to pay off the debt, instead of conducting environmental disclosure.

Keywords:

Environmental Performance, Environmental Disclosure, Profitability, Leverage, Indonesia

Downloads

Download data is not yet available.

Downloads

Published

2022-07-19

How to Cite

Digdowiseiso, K., Subiyanto, B., & Setioningsih, R. (2022). What Drives Environmental Disclosure? Evidence from Mining Companies Listed on The Indonesia Stock Exchange. International Journal of Energy Economics and Policy, 12(4), 32–39. https://doi.org/10.32479/ijeep.13170

Issue

Section

Articles