Company size has a positive and significant influence on the disclosure of carbon emissions

Oct 13, 2025 by talynt.org 120 views

The Effect of Company Size, Leverage, and Managerial Ownership on Disclosure of Carbon Emissions in Mining Companies Listed on the Indonesia Stock Exchange for the 2014-2018 Period

Introduction

Climate change has become a pressing global issue, prompting companies to increase transparency and accountability in the disclosure of their carbon emissions. As a result, companies are under pressure to provide accurate and timely information about their environmental impacts. This study aims to analyze the effect of company size, leverage, and managerial ownership on the disclosure of carbon emissions in mining companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2018 period.

Background

The mining industry is one of the largest contributors to greenhouse gas emissions, making it a critical sector in the fight against climate change. The Indonesian government has implemented various regulations to reduce carbon emissions, including the issuance of Presidential Regulation No. 61 of 2011 on the National Action Plan for Climate Change. However, the effectiveness of these regulations depends on the level of transparency and accountability in the disclosure of carbon emissions by mining companies.

Methodology

This study uses a causal associative approach with quantitative data obtained from the company's financial statements audited on the IDX. The data analyzed included 180 mining companies with 36 companies as samples. Data analysis is carried out using descriptive methods and multiple linear regression panel data.

Results

The results of this study show that:

Company size has a positive and significant influence on the disclosure of carbon emissions. This means that companies with a larger scale tend to be more transparent in expressing their carbon emissions. The possibility of the factors that encourage this is the pressure of investors and stakeholders that are getting bigger on large companies to account for their environmental impacts.
Leverage has a negative and insignificant effect on the disclosure of carbon emissions. This shows that leverage (debt to equity) has no significant influence on company decisions in revealing carbon emissions.
Managerial ownership has a positive but not significant effect on the disclosure of carbon emissions. This result shows that managerial ownership does not directly affect company decisions in uncovering carbon emissions.

Discussion

The results of this study have several implications. First, mining companies with a larger scale are expected to increase transparency and accountability in the disclosure of their carbon emissions. Second, regulators need to encourage the application of more stringent regulations related to the disclosure of carbon emissions, so that the leverage and managerial ownership are no longer a barrier in the company's efforts to increase transparency.

Limitations

This research has several limitations. First, the data used is limited to the audited financial statements, which may not reflect the entire company's carbon emission data. Second, this research only focuses on three variables, so the influence of other factors such as regulation and social pressure on the disclosure of carbon emissions is not examined.

Conclusion

This study contributes to the existing literature on the disclosure of carbon emissions by mining companies. The results of this study provide insights into the factors that influence the disclosure of carbon emissions and highlight the need for more stringent regulations to encourage transparency and accountability in the mining industry.

Recommendations for Future Research

This research has several implications for future research. First, subsequent research can consider other factors that influence the disclosure of carbon emissions, such as regulation and social pressure. Second, future research can evaluate the effectiveness of existing regulations in reducing carbon emissions.

Implications for Practice

The results of this study have several implications for practice. First, mining companies with a larger scale are expected to increase transparency and accountability in the disclosure of their carbon emissions. Second, regulators need to encourage the application of more stringent regulations related to the disclosure of carbon emissions, so that the leverage and managerial ownership are no longer a barrier in the company's efforts to increase transparency.

References

Presidential Regulation No. 61 of 2011 on the National Action Plan for Climate Change.
Indonesia Stock Exchange (IDX). (2014-2018). Financial statements of mining companies listed on the IDX.

Appendix

List of mining companies included in the study.
Description of the variables used in the study.
Results of the multiple linear regression panel data analysis.
Frequently Asked Questions (FAQs) about the Effect of Company Size, Leverage, and Managerial Ownership on Disclosure of Carbon Emissions in Mining Companies Listed on the Indonesia Stock Exchange

Q: What is the main objective of this study?

A: The main objective of this study is to analyze the effect of company size, leverage, and managerial ownership on the disclosure of carbon emissions in mining companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2018 period.

Q: Why is the disclosure of carbon emissions important?

A: The disclosure of carbon emissions is important because it allows stakeholders to understand the environmental impacts of companies and make informed decisions. It also helps companies to reduce their carbon footprint and contribute to the fight against climate change.

Q: What are the key findings of this study?

A: The key findings of this study are:

Company size has a positive and significant influence on the disclosure of carbon emissions.
Leverage has a negative and insignificant effect on the disclosure of carbon emissions.
Managerial ownership has a positive but not significant effect on the disclosure of carbon emissions.

Q: What are the implications of this study?

A: The implications of this study are:

Mining companies with a larger scale are expected to increase transparency and accountability in the disclosure of their carbon emissions.
Regulators need to encourage the application of more stringent regulations related to the disclosure of carbon emissions, so that the leverage and managerial ownership are no longer a barrier in the company's efforts to increase transparency.

Q: What are the limitations of this study?

A: The limitations of this study are:

The data used is limited to the audited financial statements, which may not reflect the entire company's carbon emission data.
This research only focuses on three variables, so the influence of other factors such as regulation and social pressure on the disclosure of carbon emissions is not examined.

Q: What are the recommendations for future research?

A: The recommendations for future research are:

Subsequent research can consider other factors that influence the disclosure of carbon emissions, such as regulation and social pressure.
Future research can evaluate the effectiveness of existing regulations in reducing carbon emissions.

Q: What are the implications for practice?

A: The implications for practice are:

Mining companies with a larger scale are expected to increase transparency and accountability in the disclosure of their carbon emissions.
Regulators need to encourage the application of more stringent regulations related to the disclosure of carbon emissions, so that the leverage and managerial ownership are no longer a barrier in the company's efforts to increase transparency.

Q: What are the references used in this study?

A: The references used in this study are:

Presidential Regulation No. 61 of 2011 on the National Action Plan for Climate Change.
Indonesia Stock Exchange (IDX). (2014-2018). Financial statements of mining companies listed on the IDX.

Q: What is the appendix of this study?

A: The appendix of this study includes:

List of mining companies included in the study.
Description of the variables used in the study.
Results of the multiple linear regression panel data analysis.