Foreign influence on carbon disclosure: Evidence from Indonesian non-financial firms

This study investigates the extent of carbon emission disclosure practices among Indonesian firms and examines the key factors influencing Carbon Emission Disclosure. The research analyzes all non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2022, focusing on variabl...

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Main Authors: Indah Fajarini Sri Wahyuningrum, Fitrarena Widhi Rizkyana, Muhammad Ihlashul Amal, Laela Dwi Elviana
Format: Article
Language:English
Published: Elsevier 2025-09-01
Series:Journal of Open Innovation: Technology, Market and Complexity
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2199853125001386
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author Indah Fajarini Sri Wahyuningrum
Fitrarena Widhi Rizkyana
Muhammad Ihlashul Amal
Laela Dwi Elviana
author_facet Indah Fajarini Sri Wahyuningrum
Fitrarena Widhi Rizkyana
Muhammad Ihlashul Amal
Laela Dwi Elviana
author_sort Indah Fajarini Sri Wahyuningrum
collection DOAJ
description This study investigates the extent of carbon emission disclosure practices among Indonesian firms and examines the key factors influencing Carbon Emission Disclosure. The research analyzes all non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2022, focusing on variables such as the presence of foreign board members, foreign investors, foreign listing status, and the educational background of board members to assess their association with carbon emission disclosure. Using purposive sampling, the study selects 695 observations for empirical analysis. Statistical methods, including multiple linear regression and descriptive statistics, are employed using STATA to evaluate the relationships. The findings reveal that carbon emission disclosure among Indonesian non-financial firms remains limited, with an average disclosure rate of only 23 %. Notably, the presence of foreign board members has a positive and statistically significant effect on carbon emission disclosure. In contrast, foreign investors and foreign listing status do not exhibit a significant influence. Surprisingly, the educational background of board members has a significant negative effect on disclosure levels, suggesting that higher education does not necessarily translate into greater environmental transparency. A novel contribution of this study is a comprehensive examination of foreign involvement in relation to carbon emission disclosures, an underexplored area in existing literature. The findings contribute to academic discourse on corporate environmental reporting and provide practical recommendations, particularly for policymakers, to strengthen regulatory frameworks mandating carbon emission disclosures in Indonesia.
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spelling doaj-art-076d64c0efc145e586ac9f54f384ee622025-08-20T03:44:24ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312025-09-0111310060310.1016/j.joitmc.2025.100603Foreign influence on carbon disclosure: Evidence from Indonesian non-financial firmsIndah Fajarini Sri Wahyuningrum0Fitrarena Widhi Rizkyana1Muhammad Ihlashul Amal2Laela Dwi Elviana3Corresponding author.; Department of Accounting, Faculty of Economics and Bussiness, Universitas Negeri Semarang, Semarang 50229, IndonesiaDepartment of Accounting, Faculty of Economics and Bussiness, Universitas Negeri Semarang, Semarang 50229, IndonesiaDepartment of Accounting, Faculty of Economics and Bussiness, Universitas Negeri Semarang, Semarang 50229, IndonesiaDepartment of Accounting, Faculty of Economics and Bussiness, Universitas Negeri Semarang, Semarang 50229, IndonesiaThis study investigates the extent of carbon emission disclosure practices among Indonesian firms and examines the key factors influencing Carbon Emission Disclosure. The research analyzes all non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2022, focusing on variables such as the presence of foreign board members, foreign investors, foreign listing status, and the educational background of board members to assess their association with carbon emission disclosure. Using purposive sampling, the study selects 695 observations for empirical analysis. Statistical methods, including multiple linear regression and descriptive statistics, are employed using STATA to evaluate the relationships. The findings reveal that carbon emission disclosure among Indonesian non-financial firms remains limited, with an average disclosure rate of only 23 %. Notably, the presence of foreign board members has a positive and statistically significant effect on carbon emission disclosure. In contrast, foreign investors and foreign listing status do not exhibit a significant influence. Surprisingly, the educational background of board members has a significant negative effect on disclosure levels, suggesting that higher education does not necessarily translate into greater environmental transparency. A novel contribution of this study is a comprehensive examination of foreign involvement in relation to carbon emission disclosures, an underexplored area in existing literature. The findings contribute to academic discourse on corporate environmental reporting and provide practical recommendations, particularly for policymakers, to strengthen regulatory frameworks mandating carbon emission disclosures in Indonesia.http://www.sciencedirect.com/science/article/pii/S2199853125001386Carbon emission disclosureForeign board memberNon-financial firmsIndonesia
spellingShingle Indah Fajarini Sri Wahyuningrum
Fitrarena Widhi Rizkyana
Muhammad Ihlashul Amal
Laela Dwi Elviana
Foreign influence on carbon disclosure: Evidence from Indonesian non-financial firms
Journal of Open Innovation: Technology, Market and Complexity
Carbon emission disclosure
Foreign board member
Non-financial firms
Indonesia
title Foreign influence on carbon disclosure: Evidence from Indonesian non-financial firms
title_full Foreign influence on carbon disclosure: Evidence from Indonesian non-financial firms
title_fullStr Foreign influence on carbon disclosure: Evidence from Indonesian non-financial firms
title_full_unstemmed Foreign influence on carbon disclosure: Evidence from Indonesian non-financial firms
title_short Foreign influence on carbon disclosure: Evidence from Indonesian non-financial firms
title_sort foreign influence on carbon disclosure evidence from indonesian non financial firms
topic Carbon emission disclosure
Foreign board member
Non-financial firms
Indonesia
url http://www.sciencedirect.com/science/article/pii/S2199853125001386
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AT muhammadihlashulamal foreigninfluenceoncarbondisclosureevidencefromindonesiannonfinancialfirms
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