Linking Environmental Disclosure, Environmental Performance, and Gender Diversity in Indonesian Coal Companies

Mochammad Ilyas Junjunan; Febry Fabian Susanto; Binti Shofiatul Jannah; Muhammad Safdar

doi:10.61255/jeemba.v4i5.883

Authors

Mochammad Ilyas Junjunan Universitas Islam Negeri Sunan Ampel Surabaya, Indonesia
Febry Fabian Susanto Universitas Islam Negeri Sunan Ampel Surabaya, Indonesia
Binti Shofiatul Jannah Universitas Islam Negeri Sunan Ampel Surabaya, Indonesia
Muhammad Safdar Bahauddin Zakariya University, Pakistan

DOI:

https://doi.org/10.61255/jeemba.v4i5.883

Keywords:

Environmental Disclosure, Environmental Performance, Financial Performance, Gender Diversity

Abstract

Purpose – This study aims to examine the effect of environmental disclosure, environmental performance, and gender diversity in the board of directors on the financial performance of coal companies in Indonesia.

Design/methodology/approach – This study uses panel data from 66 firm-year observations representing 22 listed coal companies over the 2021-2023 period. Environmental disclosure is measured using relevant environmental indicators derived from the GRI G4 framework, environmental performance is measured using the Indonesia PROPER rating, gender diversity is measured based on female representation in the relevant corporate governance body, and financial performance is proxied by return on equity. Panel regression analysis is employed to examine the proposed relationship.

Finding/Results – The findings indicate that environmental disclosure is positively associated with financial performance, whereas environmental performance is negatively associated with financial performance. Gender diversity does not exhibit a statistically significant association with financial performance.

Originality/Value – The study contributes to the literature by distinguishing externally reported environmental information from internal environmental management accounting practices and by examining environmental disclosure, environmental performance, and gender representation simultaneously in the context of Indonesian listed coal companies. The study further highlights that environmental transparency and environmental performance may have different financial implication in the short and long term.

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