Title: Analysis of carbon emission disclosures of Indonesian companies and their market performance with board characteristics as a moderator

Authors: Muhammad Madyan; Fatimah Alamsyah; Wulan Rahmadani Setiawan; Erlin Trisyulianti

Addresses: Department of Management, Faculty of Economics and Business, Airlangga University, Kampus C Unair, Jl. Dr. Ir. H. Soekarno, Kota Surabaya, Jawa Timur 60115, Indonesia ' Department of Management, Faculty of Economics and Business, Airlangga University, Kampus C Unair, Jl. Dr. Ir. H. Soekarno, Kota Surabaya, Jawa Timur 60115, Indonesia ' Department of Management, Faculty of Economics and Business, Airlangga University, Kampus C Unair, Jl. Dr. Ir. H. Soekarno, Kota Surabaya, Jawa Timur 60115, Indonesia ' Department of Management, Faculty of Economics and Management, IPB University, Bogor, Indonesia Kampus IPB, Jl. Raya Dramaga, Babakan, Kec. Dramaga, Kabupaten Bogor, Jawa Barat 16680, Indonesia

Abstract: This study investigates the effect of disclosure of carbon emissions on company performance, especially market performance and the characteristics of a board consisting of independent commissioners and female directors as moderators. This study uses 517 firm-year observations from companies listed on the Indonesia stock exchange (IDX) for the 2015-2019 period. Consistent with the development of the hypothesis, the results show that the disclosure of carbon emissions is positively related to market performance. The same result is also shown in the logit regression robust test. We document that independent commissioners and female directors can strengthen the relationship between carbon emission disclosures (CED) and market performance. In addition, the results of additional studies show that the disclosure of carbon emissions is positively related to return on assets (ROA) and return on investment (ROE). Our findings show that the disclosure of carbon emissions can be a good idea for companies to improve financial performance, both market performance and accounting performance.

Keywords: firm performance; FP; market performance; carbon emission disclosure; CED; independent commissioner: female directors.

DOI: 10.1504/IJSE.2024.137614

International Journal of Sustainable Economy, 2024 Vol.16 No.2, pp.184 - 207

Received: 17 May 2022
Accepted: 04 Oct 2022
Published online: 02 Apr 2024 *

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