The Effect Of Industry Type, Environmental Information From External Parties, And Environmental Disclosure Toward Environmental Costs In Indonesia
Anahtar Kelimeler:
Environmental costs, - industry types, bad news- environmental disclosureÖzet
The purpose of this study was to determine the effect of industry types, environmental information from external parties, and environmental disclosures toward the environmental costs in Indonesia companies. The measurement of the environmental costs was proxied by the total cost of environmental disclosures including disclosures for management approaches consisting of environmental aspects (e.g., raw materials, water, biodiversity, and waste), goods and administration, consistency, transportation, and in general the objectives that apply to the environmental point of view, strategy, hierarchical task, check and development, and many more relevant data according to GRI-G4 guidelines for sustainability reporting (Lindrianasari et al., 2020).
The sample for this research was 232 companies that have fulfilled the sample criteria from 2017-2020 which are sourced from the company database on the Indonesia Stock Exchange. The research data was tested statistically using multiple regression analysis. The results of this study proved that the type of industry which was sensitive to the environment will contribute to an increase of the environmental costs by companies and there was no bias between the environmental disclosure practices in annual reports and environmental performance of companies in Indonesia. Other results showed that companies that had bad news related to the environment tended to allocate less environmental costs because if environmental damage has occurred, the company's responsibility was not only limited to recovery on environmental aspects but must resolve the impacts that occur on social and financial aspects
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