Carbon Emission Disclosure by Non-Financial Companies in Indonesia: A Perspective of Stakeholder Theory

Wahyu Widarjo, Eko Arief Sudaryono, Estetika Mutiaranisa Kurniawati, Adhitya Agri Putra, Baskara Agung Wibawa

Abstract


This study aims to examine the determinant factors of carbon emission disclosure in the perspective of stakeholder theory. Stakeholder theory is the most often use as literature in the carbon emission research. Most studies only capture the carbon emission disclosure based on stakeholder theory elements of economic performance and stakeholder power. This study examines comprehensively the perspective of stakeholder theory by considering economic performance, stakeholder power, and strategy posture. Research sample includes 67 non-financial companies listed on the Indonesian Stock Exchange 2017-2020. Data are accessed from annual report and sustainability report. Economic performance is measured by return on assets and return on equity. Stakeholder power is measured by managerial ownership and leverage. Strategy posture is measured by ISO certification and environmental costs. The result shows that stakeholder power (proxied by leverage) and strategy posture (proxied by ISO certification) have effects on carbon emission disclosure.

Keywords


carbon emission disclosure; stakeholder power; economic performance; strategy posture

References


Abdulrahim, M. O., Sukoharsono, E. G., Saraswati, E., & Subekti, I. (2020). The Mediating Effect of Strategic Posture on The Link Between Organizational Culture And Sustainability Performance. IOSR Journal of Business and Management , 22(6), 1–18. https://doi.org/10.9790/487X-2206080118

Adu, D. A., Flynn, A., & Grey, C. (2023). Carbon performance, financial performance and market value: The moderating effect of pay incentives. Business Strategy and the Environment, 32(4), 2111–2135. https://doi.org/10.1002/bse.3239

Alessa, N., Akparep, J. Y., Sulemana, I., & Agyemang, A. O. (2024). Does stakeholder pressure influence firms environmental, social and governance (ESG) disclosure? Evidence from Ghana. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2303790

Alfi, C. F., Mohamad, M., & Hussainey, K. (2024). Unveiling the hidden symphony: board dynamics and carbon emission disclosure – a meta-analysis study in the realm of developed markets. Journal of Accounting Literature, ahead-of-print(ahead-of-print). https://doi.org/10.1108/JAL-07-2023-0126

Bedi, A., & Singh, B. (2024). Unraveling the impact of stakeholder pressure on carbon disclosure in an emerging economy. Social Responsibility Journal, 20(4), 703–718. https://doi.org/10.1108/SRJ-04-2023-0198

Blanco, C., Caro, F., & Corbett, C. J. (2017). An inside perspective on carbon disclosure. Business Horizons, 60(5), 635–646. https://doi.org/10.1016/j.bushor.2017.05.007

Busch, T., Bassen, A., Lewandowski, S., & Sump, F. (2022). Corporate Carbon and Financial Performance Revisited. Organization & Environment, 35(1), 154–171. https://doi.org/10.1177/1086026620935638

Caby, J., Ziane, Y., & Lamarque, E. (2020). The determinants of voluntary climate change disclosure commitment and quality in the banking industry. Technological Forecasting and Social Change, 161, 120282. https://doi.org/10.1016/j.techfore.2020.120282

Chariri, A., Januarti, I., & Yuyetta, E. N. A. (2023). ISO Certification, Firm Characteristics and Carbon Emission Disclosure. IOP Conference Series: Earth and Environmental Science, 1248(1), 012024. https://doi.org/10.1088/1755-1315/1248/1/012024

Chen, Y., Nie, P., Wang, C., & Meng, Y. (2019). Effects of corporate social responsibility considering emission restrictions. Energy Strategy Reviews, 24, 121–131. https://doi.org/10.1016/j.esr.2019.02.002

Chicharro, M. N., Mangena, M., Carrillo, M. I. A., & Cruz, A. M. P. D. La. (2024). The effects of stakeholder power, strategic posture and slack financial resources on sustainability performance in UK higher education institutions. Sustainability Accounting, Management and Policy Journal, 15(1), 171–206. https://doi.org/10.1108/SAMPJ-07-2022-0375

Cho, J., & Ryu, H. (2022). Impact of Managerial Ownership on Corporate Social Responsibility in Korea. Sustainability, 14(9), 5347. https://doi.org/10.3390/su14095347

Cormier, D., & Beauchamp, C. (2021). Market incidence of carbon information disclosure in the oil and gas industry: the mediating role of financial analysts and governance. Journal of Financial Reporting and Accounting, 19(5), 901–920. https://doi.org/10.1108/JFRA-10-2020-0302

Datt, R., Prasad, P., Vitale, C., & Prasad, K. (2022). International evidence of changing assurance practices for carbon emissions disclosures. Meditari Accountancy Research, 30(6), 1594–1628. https://doi.org/10.1108/MEDAR-09-2020-1005

De Tommaso, S. F. N., & Borini, F. M. (2024). Stakeholder value creation system: understanding the process. Sustainability Accounting, Management and Policy Journal, ahead-of-print(ahead-of-print). https://doi.org/10.1108/SAMPJ-09-2023-0701

Doda, B., Gennaioli, C., Gouldson, A., Grover, D., & Sullivan, R. (2016). Are Corporate Carbon Management Practices Reducing Corporate Carbon Emissions? Corporate Social Responsibility and Environmental Management, 23(5), 257–270. https://doi.org/10.1002/csr.1369

Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman.

Kalu, J. U., Buang, A., & Aliagha, G. U. (2016). Determinants of voluntary carbon disclosure in the corporate real estate sector of Malaysia. Journal of Environmental Management, 182, 519–524. https://doi.org/10.1016/j.jenvman.2016.08.011

Karim, A. E., Albitar, K., & Elmarzouky, M. (2021). A novel measure of corporate carbon emission disclosure, the effect of capital expenditures and corporate governance. Journal of Environmental Management, 290, 112581. https://doi.org/10.1016/j.jenvman.2021.112581

Konadu, R., Ahinful, G. S., Boakye, D. J., & Elbardan, H. (2022). Board gender diversity, environmental innovation and corporate carbon emissions. Technological Forecasting and Social Change, 174, 121279. https://doi.org/10.1016/j.techfore.2021.121279

Krishnamurti, C., & Velayutham, E. (2018). The influence of board committee structures on voluntary disclosure of greenhouse gas emissions: Australian evidence. Pacific-Basin Finance Journal, 50, 65–81. https://doi.org/10.1016/j.pacfin.2017.09.003

Meng, B., Zang, Q., & Li, G. (2023). Study on the impact of corporate social responsibility on carbon performance in the background of carbon peaking and carbon neutrality. Business Ethics, the Environment & Responsibility. https://doi.org/10.1111/beer.12614

Muhammad, G. I., & Aryani, Y. A. (2021). The Impact of Carbon Disclosure on Firm Value with Foreign Ownership as A Moderating Variable. Jurnal Dinamika Akuntansi Dan Bisnis, 8(1), 1–14. https://doi.org/10.24815/jdab.v8i1.17011

Núnez Chicharro, M., Mangena, M., Alonso Carrillo, M. I., & Priego De La Cruz, A. M. (2024). The effects of stakeholder power, strategic posture and slack financial resources on sustainability performance in UK higher education institutions. Sustainability Accounting, Management and Policy Journal, 15(1), 171–206. https://doi.org/10.1108/SAMPJ-07-2022-0375

Olatunde, N. A. (2021). Stakeholder management strategies employed on building projects procured by private corporate organisations in south-western Nigeria. International Journal of Building Pathology and Adaptation, ahead-of-print(ahead-of-print). https://doi.org/10.1108/IJBPA-06-2021-0086

Ott, C., Schiemann, F., & Günther, T. (2017). Disentangling the determinants of the response and the publication decisions: The case of the Carbon Disclosure Project. Journal of Accounting and Public Policy, 36(1), 14–33. https://doi.org/10.1016/j.jaccpubpol.2016.11.003

Oyewo, B. (2023). Corporate governance and carbon emissions performance: International evidence on curvilinear relationships. Journal of Environmental Management, 334. https://doi.org/10.1016/j.jenvman.2023.117474

Perrigot, R., Watson, A., & Dada, O. (Lola). (2021). Sustainability and green practices: the role of stakeholder power in fast-food franchise chains. International Journal of Contemporary Hospitality Management, 33(10), 3442–3464. https://doi.org/10.1108/IJCHM-02-2021-0269

Qian, W., & Schaltegger, S. (2017). Revisiting carbon disclosure and performance: Legitimacy and management views. The British Accounting Review, 49(4), 365–379. https://doi.org/10.1016/j.bar.2017.05.005

Saeed, A., Noreen, U., Azam, A., & Tahir, M. S. (2021). Does CSR Governance Improve Social Sustainability and Reduce the Carbon Footprint: International Evidence from the Energy Sector.

Sustainability, 13(7), 3596. https://doi.org/10.3390/su13073596

Sam, A. G., & Song, D. (2022). ISO 14001 certification and industrial decarbonization: An empirical study. Journal of Environmental Management, 323, 116169. https://doi.org/10.1016/j.jenvman.2022.116169

Siddique, M. A., Akhtaruzzaman, M., Rashid, A., & Hammami, H. (2021). Carbon disclosure, carbon performance and financial performance: International evidence. International Review of Financial Analysis, 75, 101734. https://doi.org/10.1016/j.irfa.2021.101734

Ullmann, A. A. (1985). Data in Search of a Theory: A Critical Examination of the Relationships Among Social Performance, Social Disclosure, and Economic Performance of U.S. Firms. Academy of Management Review, 10(3), 540–557. https://doi.org/10.5465/amr.1985.4278989

Velte, P., Stawinoga, M., & Lueg, R. (2020). Carbon performance and disclosure: A systematic review of governance-related determinants and financial consequences. Journal of Cleaner Production, 254, 120063. https://doi.org/10.1016/j.jclepro.2020.120063

Wang, F., Sun, J., & Liu, Y. S. (2019). Institutional pressure, ultimate ownership, and corporate carbon reduction engagement: Evidence from China. Journal of Business Research, 104, 14–26. https://doi.org/10.1016/j.jbusres.2019.07.003

Wang, J., Li, J., & Zhang, Q. (2021). Does carbon efficiency improve financial performance? Evidence from Chinese firms. Energy Economics, 104, 105658. https://doi.org/10.1016/j.eneco.2021.105658




DOI: http://dx.doi.org/10.20961/jab.v24i1.1209

Jurnal Akuntansi dan Bisnis (JAB)
ISSN 1412-0852 (print), 2580-5444 (online)
Published by Accounting Study Program, Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia


Creative Commons License
JAB on http://jab.fe.uns.ac.id/index.php/jab is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License

Visitor Statistic