ANTECEDENTS AND CONSEQUENCES OF CARBON EMISSIONS’ DISCLOSURE: CASE STUDY OF OIL, GAS AND COAL COMPANIES IN NON-ANNEX 1 MEMBER COUNTRIES

https://doi.org/10.22146/jieb.28756

Dody Hapsoro(1*), Ambarwati Ambarwati(2)

(1) Accounting Department, STIE YKPN Yogyakarta
(2) Accounting Department, STIE YKPN Yogyakarta
(*) Corresponding Author

Abstract


The purpose of this study is to determine the characteristics of companies that voluntarily disclose carbon emissions and to examine the economic consequences of the carbon emissions’ disclosure. Companies used in the sample are oil, gas and coal companies in non-Annex 1 member countries registered in the Osiris database. The observation period was from the commencement of the Kyoto Protocol's second commitment to date, or from 2013 to 2016. Measuring the carbon emissions’ disclosure is achieved by using a checklist developed from an information request sheet from the CDP (Carbon Disclosure Project). An assessment of the extent of the disclosure is made using the content analysis method. Company characteristics are proxied with leverage, profitability and firm age, while the economic consequences are proxied by using bid-ask spreads, the trading volume and share price volatility. The data analysis method used in this research is the Partial Least Square (PLS) method using the WarpPLS 4.0 application. Test results show that leverage, profitability and firm age have a positive effect on the carbon emissions’ disclosure. Furthermore, the test results show that carbon emissions’ disclosures have a positive effect on the trading volume and a negative effect on the bid-ask spreads and share price volatility. The above findings imply that firms with higher leverage, higher profitability and are older are more willing to reveal their carbon emissions’ disclosures. The more information that is contained in a carbon emissions’ disclosure, the more investors are interested in trading that company's shares, while the broader the carbon emissions’ disclosure is, the smaller the bid-ask spread and the less volatile the stock price are.


Keywords


Carbon Emissions’ Disclosure, Leverage, Profitability, Firm Age, Bid-Ask Spread, Trading Volume, Share Price Volatility

Full Text:

PDF


References

Andrew, J., & Cortese, C. L. (2011). Carbon disclosures: Comparability, the carbon disclosure project and the greenhouse gas protocol. Australasian Accounting Business and Finance Journal,5(4), 5-18.

Borghei-Ghomi, Z., & Leung, P. (2013). An empirical analysis of the determinants of greenhouse gas voluntary disclosures in Australia. Accounting and Finance Research, 2(1), 110.

Chitambo, L., & Tauringana, V. (2014). Company specific determinants of green­house gases’ disclosures. Journal of Applied Accounting Research, 15(3), 323-338.

Choi, B. B., Lee, D., & Psaros, J. (2013). An analysis of Australian company carbon emissions’ disclosures. Pacific Accounting Review, 25(1), 58-79.

Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society,33(4-5), 303-327.

Cormier, D., Ledoux, M. J., & Magnan, M. (2011). The informational contribution of social and environmental disclosures for investors. Management Decision, 49(8), 1276-1304.

Cotter, J., &Najah, M.M. (2011). Institutional Investor Influence On Global Climate Change Disclosure Practices. Australian Journal of Management, 37(2), 169-187.

Deegan, C. (2004). Financial Accounting Theory. Sydney: McGraw-Hill Book Company.

Definition of Carbon Emission. (n.d.). Retrieved June 25, 2017, fromhttp://www.ecolife.com/ define/carbon-emission.html.

Eipstein, M. J., & Freedman, M. (1994). Social disclosure and the individual investor. Accounting, Auditing and Accountability Journal, 7(4), 94-108.

Ennis, C., Kottwitz, J., Lin, S. X., & Markusson, N. (2012). Exploring the relationships between carbon disclosure and performance in FTSE 350 companies. Doctoral disser­tation, working paper.

Fadhilla, A. F. (2016). Analisis Hubungan Corporate Governance, Corporate Social Responsibility Disclosure and Economic Consequences: Studi Empiris di Pasar Modal Indonesia. Unpublished master's thesis, STIE YKPN, Yogyakarta

Hapsoro, D. (2006). Mekanisme Corporate Governance, Transparansi dan Konsekuensi Ekonomik: Studi Empiris di Pasar Modal Indonesia. Unpublished doctoral disserta­tion, Universitas Gadjah Mada, Yogyakarta

Hussein, A. S. (2015). Penelitian Bisnis dan Manajemen Menggunakan Partial Least Squares (PlLS) dengan Smartpls 3.0: Universitas Brawijaya.

Irwhantoko, I., & Basuki, B. (2016). Carbon Emissions’ Disclosure: Studi pada Perusa­haan Manufaktur Indonesia. Jurnal Akuntansi dan Keuangan, 18(2), 92-104.

Jannah, R., &Muid, D. (2014). Analisis Faktor-Faktor yang Mempengaruhi Carbon emissions’ disclosure pada Perusahaan di Indonesia (Studi Empiris pada Perusahaan yang terdaftar di Bursa Efek Indonesia Periode 2010-2012. Diponegoro Journal of Accounting, 3(2), 1000-1010

Kalu, J. U., Buang, A., &Aliagha, G. U. (2016). Determinants of carbon emissions’ disclo­sure and the reduction in corporate real estate companies in Nigeria. Journal of Environment and Earth Science, 6(2), 87-94.

KP Introduction [UNFCCC Process]. (n.d.). Retrieved May 5, 2017, from http:// unfccc.int/kyoto_protocol/items/2830.php.

Latifah, S. W., Prasetyo, A., & Rahadian, R. F. (2011). Pengaruh Karakteristik Perusahaan Terhadap Kinerja Sosial Berdasar ISO 26000 pada Perusahaan yang termasuk dalam Indeks LQ-45. Jurnal Reviu Akuntansi dan Keuangan, 1(1), 73-84.

Leftwich., R. W.,Watts, R. L.,& Zimmerman, J. L. (1981). Voluntary Corporate Disclosure: The Case of Interim Reporting. Journal of Accounting Research, 19.

Leuz, C., & Verrecchia, R. E. (2000). The Economic Consequences of Increased Dis­closure. Journal of Accounting Research,28.

Najah, M. M. S. (2012). Carbon Risk Management, Carbon Disclosure and Stock Market Effects: An International Perspec­tive. Doctoral dissertation, University of Southern Queensland.

National Committee of Climate Change. (2013). Mari Berdagang Karbon: The Joint Crediting Mechanism.Retrieved Mei 5, 2017, from http://jcm.ekon.go.id/en/uploads/files/Document%20JCM/Media/buku_carbon_isi.pdf.

Nurdin, E., & Cahyandito, M. (2006). Pengaruh kualitas pengungkapan sosial dan ling­kungan dalam laporan tahunan terhadap reaksi investor.Unpublished master's thesis, Universitas Padjajaran, Bandung.

Nurkhin, A. (2009). Corporate Governance dan Profitabilitas; Pengaruhnya terhadap Peng­ungkapan Tanggung Jawab Sosial Perusa­haan (Studi Empiris pada Perusa­haan yang tercatat di Bursa Efek Indonesia). Unpublished master's thesis, Universitas Diponegoro, Semarang

O'Sullivan, N., & O'Dwyer, B. (2009). Stakeholder perspectives on a financial sector legitimation process: The case of NGOs and the Equator Principles. Accounting, Auditing & Accountability Journal, 22(4), 553-587.

Prado-Lorenzo, J. M., Rodríguez-Domínguez, L., Gallego-Alvarez, I., & García-Sánchez, I. M. (2009). Factors influencing the disclosure of greenhouse gas emissions in companies world-wide. Management Decision, 47(7), 1133-1157.

Pratiwi, D. N. (2017). Pengaruh stakeholder terhadap carbon emissions’ disclosure. Accounthink Journal of Accounting and Finance,2(1), 288-300.

Ramadhani, M. H. Z. K. (2014). Pengaruh pengungkapan corporate social responsibi­lity terhadap konsekuensi ekonomi. Unpu­blished master's thesis, STIE YKPN, Yogyakarta.

Roberts, R. W. (1992). Determinants of corporate social responsibility disclosure: An application of the stakeholder theory. Accounting, Organizations and Society, 17(6), 595-612.

Sullivan, R. & Gouldson, A. (2013). Ten Years of Corporate Action on Climate Change: What Do We Have to Show for It? Energy Policy, 60, 733-740.

Sun, W. (2003). Relationship between trading volume and security prices and returns. Area Exam Report, Technical Report, MIT Laboratory for Information and Decision Systems.

United Nation Framework on Climate Change. (2008). Kyoto Protocol Reference Manual on Accounting of Emissions and Assigned Amount. Retrivied March 28, 2017, from www.unfccc.int.

Vieira, E.,& C. Pinho. (2011). Financial Disclo­sure and Stock Price Volatility: Evidence from Portugal and Belgium. Portuguese Journal of Accounting and Management, 11, 77-108.



DOI: https://doi.org/10.22146/jieb.28756

Article Metrics

Abstract views : 1685 | views : 1603

Refbacks

  • There are currently no refbacks.




Copyright (c) 2018 Journal of Indonesian Economy and Business

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Journal of Indonesian Economy and Business

Journal

Editorial Team
Focus and Scope
Peer Review Process
Publication Ethics
Screening for Plagiarism

Authors

Author Guidelines
Submission Guidelines
Online Submissions
Copyright Notice
Privacy Statement
Author Fees

Download

Author Pack
Submission Form & Manuscript Template

 

Reviewer

Reviewer Guidelines
Reviewer Acknowledgement

 

Reader

General Search
Achieves
Author index
Title index

 

 

The Journal of Indonesian Economy and Business (print ISSN 2085-8272; online ISSN 2338-5847) is published by the Faculty of Economics and Business Universitas Gadjah Mada, Indonesia. The content of this website is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License

© 2019 Journal of Indonesian Economy and Business 
 Visitor Statistics