Environmental Expenditure Disclosure, Corporate Social Responsibility and Accounting Information Quality

Abstract

This research examines the impact of environmental expenditure, environmental disclosure, and corporate social responsibility disclosure on the quality of accounting information. The quality of accounting information provided by companies has been highly doubtful in recent years, hence this research aims to connect it to non-financial information comprising of, environmental cost and corporate social responsibility disclosures. The population of this research consists of manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2020. This research uses purposive sampling to obtain 105 samples. The double regression analysis method was used. The result shows that both environmental and corporate social responsibility disclosures increase the quality of accounting information, while environmental expenditure disclosures do not affect the quality of the accounting information. An environmental expenditure disclosure is one of the voluntary disclosures which are part of management accounting, so the stakeholders, including the investors, tend not to consider that information in their investment decision-making, since management accounting is used mostly by the internal management.