Factors Influencing the Greenhouse Gas Emission Disclosure on Manufacturing Firms in Indonesia

Abstract

Greenhouse gas (GHG) emission disclosure study is interesting to be investigated in recent years. Nevertheless, the results are still varying. This research investigated the influence of firm size, Return on Asset (ROA), leverage and environmental performance on GHG emission disclosures of listed manufacturing firms of Indonesia Stocks Exchange (IDX). Multiple regression methodology employed in this study. Sample used was 36 firms that consisted of manufacturing companies in the ranking of PROPER and IDX during 2015-2017. It was found that firm size and environmental performance had an effect on the GHG emission disclosure while ROA and leverage did not have effect. Furthermore, large companies tend to carry out information on GHG emissions disclosures voluntarily than the small one. It indicates that the ranking of PROPER motivated large firms to give information of GHG emission. This finding supported the previous studies in which firm size influenced the GHG emission disclosure.