The Role of Firm Characteristics and Environmental Performance on Environmental Disclosure (Study from Indonesian Non-Financial Sector)

Abstract

This research aims to analyze firm characteristics and environmental performance’s role in environmental disclosure. Using data from Indonesian Stock Exchange from 2018-2021, 80 data from the non-financial sector were selected for further analysis. Firm characteristics represent by profitability and firm size. The results show that profitability, firm size, and environmental performance positively affect environmental disclosure simultaneously. A partial analysis was conducted and shows that firm size has a positive effect on environmental disclosure. In line with legitimacy theory, the larger the company, they will give more transparency disclosure to the public as a form of responsibility.