The Effect of Financial Slack, Institutional Ownership, Media Exposure on Carbon Emission Disclosure with Solvability Ratio as a Moderating Variable

Abstract

This research aims to analyse the effect of financial slack, institutional ownership, media exposure on carbon emission disclosure with solvability ratio as a moderating variable. In addition, the population of this study is 109 manufacturing companies basic & chemical sector and plantation companies listed in the Indonesia stock exchange in the period 2017-2019. The sample was selected using the purposive sampling technique so that it produced 59 samples with 177 units of analysis. This research uses absolute difference analysis. The result shows that financial slack and media exposure have a significant and positive effect on carbon emission disclosure and institutional ownership has no significant effect on carbon emission disclosure. Then the solvability ratio succeeded in moderating the effect of financial slack and media exposure on carbon emission disclosure. The solvability ratio is not able to moderate institutional ownership on carbon emission disclosure. Therefore, it can be concluded that carbon emission disclosures are increasing when companies have financial and media advantages that focus on implementing the company's carbon emissions disclosures. If the company has a high solvability ratio will make the company more careful about carbon emission disclosure decisions.