The Impact of Financial, Non-Financial, and Corporate Governance Attributes on The Practice of Global Reporting Initiative (gri) Based Environmental Disclosure

Abstract

Business entities are able to exert their influence on particular stakeholders for the benefit of their interest by managing the information they disseminate to the public, particularly if there is no regulation on such issue in place. Accordingly, the extent of accounting information disclosed to the public, specifically voluntary environmental information, is determined by the internal characteristics of the business entities. The objective of this research is to test the financial, non-financial, and corporate governance attributes of Indonesian public companies which contribute to the extent of environmental information disclosure in Indonesia. This research measured the extent of Indonesian public companies’ environmental disclosure using Environmental Disclosure Index (EDI) as a dependent variable. The index is developed from the parameters under environmental protocols of the Global Reporting Initiative (GRI) G3 framework. Samples of 35 Indonesian public companies are purposively chosen for each of the year from 2005-2008 to form a total of 140 observations.The testing results conclude that size of company, economic performance, and industry sensitivity positively affect environmental disclosure. This research is limited by an assumption that Indonesian public companies employ annual report as the primary means to publicize financial and non-financial information to public.

Factors Affecting Environmental Disclosure in Companies Listed on the Tokyo Stock Exchange

“…This shows that the company's awareness in disclosing the environment is high because of the high commitment of various parties from within and outside the company. This finding is in line with the studies conducted by Frendy & Kusuma (2011); Rashid (2018); and Solikhah & Winarsih (2016).…”

Factors influencing environment disclosure quality and the moderating role of corporate governance

“…Companies with higher economic performance than the average have incentives to do different things compared with companies with lower profitability. One of the differences made is voluntary information disclosure (Frendy & Kusuma, 2011). It is necessary to consider the costs and the company's financial condition before making a decision to carry out an environmental disclosure.…”

“…Basically, the company will take actions to produce good financial performance in advance to meet the interests of shareholders as primary stakeholders. Frendy and Kusuma (2011) also reveal that the company has enough funds to collect, classify, and process information to be more useful and can present more comprehensive disclosures with high profits.…”

Corporate environmental disclosure and local government environmental oversight in China

“…Consistent with previous research, this study controlled for a number of variables. These included company size (Cheng et al , 2011; Liu and Anbumozhi, 2009), industry sector (De Villiers et al , 2011; Qian and Xing, 2018), profitability (Luo et al , 2017b; Marquis and Qian, 2014), financial leverage (Karim et al , 2006), company growth (Frendy and Kusuma, 2011) and ownership (Brammer and Pavelin, 2006; Kabir and Thai, 2017). Because of the increasing global influence on local environment and economic development in China, we also controlled for regional development under global influence, detailed as follows.…”