Managerial Ability and Carbon Emission Disclosure: Do CEOs Care About This Matter in Indonesia?

Auteurs

  • Rian Nur Aulia Universitas Pelita Harapan
  • Antonius Herusetya Universitas Pelita Harapan

Trefwoorden:

Carbon Emission Disclosure, ESG, Firm Efficiency, Climate Change, Indonesia, Managerial Ability

Samenvatting

ABSTRACT

This study examines the relationship between entity managerial capability and carbon emission disclosure of publicly listed companies on the Indonesian Stock Exchange, covering the years 2019–2023. Managerial capability is measured using data envelopment analysis (DEA) at the firm level as a decision-making unit using the Demerjian et al. (2012) model, while carbon emission disclosure uses a score for carbon emission disclosure. A final set of 301 firm-year observations was obtained by using a purposive sampling method and the available carbon emission disclosure data. Data analysis using multiple linear regression found evidence contradicting the study's hypothesis, where CEO managerial capability is negatively related to carbon emission disclosure for publicly listed companies in Indonesia. This study's findings imply that carbon emission disclosure, which is part of the global temperature reduction efforts outlined in the 2015 Paris Agreement and part of the Environment, Social, and Governance (ESG) program promoted by regulators, is still not a priority for publicly listed companies in Indonesia.

Referenties

Choi, B., Lee, D., & Psaros, J. (2013). An analysis of Australian company carbon emission disclosures. Pacific Accounting Review, 25(1), 58–79. https://doi.org/10.1108/01140581311318968

Cheng, Y., Sinha, A., Ghosh, V., Sengupta, T., & Luo, H. (2021). Carbon tax and energy innovation at crossroads of carbon neutrality: Designing a sustainable decarbonization policy. Journal of Environmental Management, 294, 112957. https://www.sciencedirect.com/science/article/abs/pii/S0301479721010197?via%3Dihub

Da Silva, P. P. (2023). Corporate environmental performance and efficiency: Evidence from stochastic frontier analysis. Journal of Climate Finance, 5, 100022. https://www.sciencedirect.com/science/article/pii/S2949728023000184

Demerjian, P., & Lev, B. (2021). Measuring Managerial Ability: A Retrospective and Review of the Literature. Data Envelopment Analysis Journal, 5(1), 1–25. https://doi.org/10.1561/103.00000037

Demerjian, P., Lev, B., & McVay, S. (2012). Quantifying managerial ability: A new measure and validity tests. Management Science, 58(7), 1229–1248. https://doi.org/10.1287/mnsc.1110.1487

Ezhilarasi, G. (2023). Corporate Environmental Performance and Financial Performance: Evidence from the Most Polluting Companies in India, 13(2). https://journals.sagepub.com/doi/10.1177/22785337221148828

Faidah, L. I., & Bandi. (2022). Managerial Ability and Corporate Social Responsibility Tone of Earnings Announcement and Market Reaction in Indonesia. JIA (Jurnal Ilmiah Akuntansi), 7(June), 138–145. https://doi.org/10.18178/ijssh.2021.v11.1054

Jiang, -Qiang, Xie, W.-J., Zhou, W.-X., Solikhah, B., Yulianto, A., & Suryarini, T. (2020). Legitimacy Theory Perspective on the Quality of Carbon Emission Disclosure: Case Study on Manufacturing Companies in Indonesia Stock Exchange. IOP Conference Series: Earth and Environmental Science, 448(1), 012063. https://doi.org/10.1088/1755-1315/448/1/012063

Jiang, Y., Luo, L., Xu, J. F., & Shao, X. R. (2021). The value relevance of corporate voluntary carbon disclosure: Evidence from the United States and BRIC countries. Journal of Contemporary Accounting & Economics, 17(3), 100279. https://www.sciencedirect.com/science/article/abs/pii/S1815566921000370?via%3Dihub

Krishnan, G. V., Wang, C., & Yu, W. (2021). Do high ability managers mitigate litigation related to financial reporting? Journal of Management Accounting Research, 33(1), 171–196. https://doi.org/10.2308/jmar-18-034

Kuh, K. F. (2017). The law of climate change mitigation: An overview. Encyclopedia of the Anthropocene, 1–5, 505–510. https://doi.org/10.1016/B978-0-12-809665-9.10027-8

Lee, J., Kim, S., & Kim, E. (2023). The effect of managerial ability on voluntary disclosure of carbon emissions. Borsa Istanbul Review, 23(3), 685–695. https://doi.org/10.1016/J.BIR.2023.01.008

Lobus, N. V., Knyazeva, M. A., Popova, A. F., & Kulikovskiy, M. S. (2023). Carbon Footprint Reduction and Climate Change Mitigation: A Review of the Approaches, Technologies, and Implementation Challenges. C 2023, 9(4), 120. https://www.mdpi.com/2311-5629/9/4/120

Luo, Y., Zhou, L., Luo, Y., & Zhou, L. (2017). Managerial ability, tone of earnings announcements, and market reaction. Asian Review of Accounting, 25(4), 454–471. https://doi.org/10.1108/ARA-07-2016-0078

Otoritas Jasa Keuangan (OJK). (2025). Peluncuran Standar Pengungkapan Keberlanjutan IAI. https://keuanganberkelanjutan.ojk.go.id/keuanganberkelanjutan/id/newsmedia/detailnews/3842/peluncuran-standar-pengungkapan-keberlanjutan-iai#:~:text=SPK%20terdiri%20dari%20PSPK%201,ekonomi%20hijau%20dan%20pembangunan%20berkelanjutan.

Simamora, R. N. H., Safrida, & Elviani, S. (2022). Carbon emission disclosure in Indonesia: Viewed from the aspect of board of directors, managerial ownership, and audit committee. Journal of Contemporary Accounting, 4(1), 1–9. https://doi.org/10.20885/jca.vol4.iss1.art1

Swalih, M. M., Ram, R., & Tew, E. (2024). Environmental management accounting for strategic decision-making: A systematic literature review. Business Strategy and the Environment, 33, 6335–636. https://onlinelibrary.wiley.com/doi/epdf/10.1002/bse.3828

Wahyuningrum, I. F. S., Ihlashul’amal, M., Utami, S., Djajadikerta, H. G., & Sriningsih, S. (2024). Determinants of carbon emission disclosure and the moderating role of environmental performance. Cogent Business & Management, 11(1), 2300518. https://doi.org/10.1080/23311975.2023.2300518

Wibowo, R., Suhendro, S., Amelia, Y., Prasetyo, T. J., Studi, P., Keuangan, A., Lampung, U., Lampung, B., & Lampung, P. (2022). Analisis Faktor-Faktor yang Mempengaruhi Pengungkapan Emisi Karbon pada Perusahaan Carbon-Intensive Industry. Jurnal Kewarganegaraan, 6(2), 3583–3599.

Xia, C., Guan, C., Ding, D., & Teng, Y. (2024). Navigating Success in Carbon Offset Projects: A Deep Dive into the Determinants Using Topic Modeling. Sustainability, 16(4), 1595. https://doi.org/10.3390/SU16041595

Yang, S., Yang, D., Shi, W., Deng, C., Chen, C., & Feng, S. (2022). Global evaluation of carbon neutrality and peak carbon dioxide emissions: current challenges and future outlook. Environmental Science and Pollution Research, 30(34), 81725–81744. https://doi.org/10.1007/S11356-022-19764-0

Zhang, L., Ling, J., & Lin, M. (2023). Carbon neutrality: a comprehensive bibliometric analysis. Environmental Science and Pollution Research International, 30(16), 45498–45514. https://doi.org/10.1007/S11356-023-25797-W

##submission.downloads##

Gepubliceerd

2025-12-10

Nummer

Vol 5 (2025): Proceedings of the 5th International Conference on Entrepreneurship (IConEnt)

Sectie

Articles

Licentie

Creative Commons License

Dit werk wordt verdeeld onder een Naamsvermelding-NietCommercieel-GelijkDelen 4.0 Internationaal licentie.