- 권한신청
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Environmental Performance, Carbon Emission Disclosure, and Carbon Emission Intensity on Cost of Equity Capital: An Empirical Study in Indonesia
Environmental Performance, Carbon Emission Disclosure, and Carbon Emission Intensity on Cost of Equity Capital: An Empirical Study in Indonesia
Lindrianasari, Lindrianasari (Accounting Department, Faculty of Economics and Business, Lampung University)
ALVIA, Liza (Accounting Department, Faculty of Economics and Business, Lampung University)
EVANA, Einde (Accounting Department at the Faculty of Economics and Business, Lampung University)
Abstract
Purpose: Carbon emissions have now become a major concern around the world, especially for the government and private sector. Unfortunately, in Indonesia, disclosure related to company carbon emissions is still done voluntarily. This research aims to provide empirical evidence on the effect of environmental performance, carbon emission disclosure, and carbon emission intensity on the cost of equity capital. Research design, data, and methodology: This research uses secondary data with a sample consisting of Indonesia companies that are sensitive to the environment and listed on the Indonesia Stock Exchange in 2017-2019. The analytical tool used in this research was multiple regression models. Result: The study found a carbon emission disclosure had a significant positive effect on the cost of equity capital. Carbon emission intensity and company size had a significant negative effect on the cost of equity capital. Meanwhile, environmental performance did not have a significant effect on the cost of equity capital. Conclusion: Therefore, the results of this research are expected to provide feedback to the company's stakeholders that environmental performance and carbon emissions are some of the points seen by investors in making investment decisions.
- keywords
- Carbon Emission Disclosure, Carbon Emission Intensity, Environmental Performance, Cost of Equity Capital
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