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23 Environmental Performing as Moderating

of Mining, Basic and Chemical Companies:

Influence of Company Value on Carbon

Emissions Disclosure

Aurora Meilsa Rathyani Priyadi, Ayu Astari

EXTENDED ABSTRACT

Global warming caused by human activity has been recognized as a problem with the highest priority worldwide.
As one of the contributors to carbon emissions that cause global warming, companies are expected to contribute
management of carbon impacts at disclosing carbon emissions. In Indonesia, companies are expected to be able to
manage carbon impacts to participate in supporting the government’s commitment to reduce carbon gas emissions
and promote sustainable development as stated in UU no. 17 of 2004. However, the commitment of the Indonesian
government to reduce carbon gas emissions has not been supported by mandatory disclosure regulations. The
information on carbon emissions disclosure in Indonesia still voluntary, so the Government through the Ministry of
the Environment conducts a program called Company Performance Rating Assessment Program in Environmental
Management (PROPER). This rating program aims to encourage companies to manage environmental management
because there is no fixed standard especially in the field of carbon emissions. Previously research conducted a study to
determine the relationship between carbon emissions disclosure to firm value. Carbon emissions disclosure considered
to increase corporate value. But we want to find out after the company has managed to get a good value, are they
continue to strive to disclose carbon emissions information better as well. The relationship between firm value and
carbon emissions disclosure has not been studied before. Therefore, the first purpose of this study is to examine
and analyze the effect of firm value on carbon-emissions disclosure. Second, this study aims to determine the role
of environmental performance indicated by the PROPER rating as a moderating variable. The research population is
companies in the field of mining, basic and chemical industry which are listed on the Indonesia Stock Exchange (IDX).
The mining industry was chosen because it is included in the high-profile industry and is one of the largest contributors
to carbon emissions, while the basic and chemical industries are among the one priority area for reducing greenhouse
gas emissions as stipulated by PP no. 61 of 2011. This research uses an explanatory method. Based on the purposive
sampling method, there are 17 companies with a total of 51 observations obtained during 2017-2019. The analysis
technique used is Moderate Regression Analysis (MRA) with IBM SPSS statistics 23. This study found that firm value
could influence the amount of carbon emissions disclosure. Environmental performance, which is proxied by PROPER,
also affects the increase firm value on carbon emission disclosures. The results also found that firm value has a negative
effect on carbon emissions disclosure. The higher of the firm value not accompanied by an increase in carbon emissions
disclosures. Further research is expected to add other moderation variables such as corporate governance mechanisms
to increase the number of R2 square from this study.

Keywords
firm value, carbon emission disclosure, environmental performance, PROPER.

JEL Classification
Q56, C33, C83, C88, F18, L65, L71, L72, M41.

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