Determinants of the Quantity of Environmental Disclosure in Australian Companies


The objective of this study is to examine the effects of company characteristics, company financial performance, and type of audit firm on environmental disclosure. The population in the study was companies listed on the Australian Securities Exchange (ASX) in year of 2017. Using purposive sampling technique, this study only select 100 companies with the highest market capitalization in Australia. Samples that met the criteria amount to 99 units of analysis. The data collection used documentation techniques. The research data analysis used descriptive statistics and inferential statistics. The results of the regression analysis show that company size and industry type have a significant positive effect on environmental disclosure. While company age, leverage, profitability, and audit firm type do not affect on environmental disclosure. Based on the results of the study, it can be concluded that the companies included in the category of sensitive industries reveal more environmental information than companies in the category of non-sensitive industries. Suggestions for further research are to use other proxies to measure company financial performance, and add or use other independent variables such as environmental performance and good corporate governance that may significantly influence environmental disclosure.

Keywords: Company Age, Company Size, Leverage, Profitability, Audit Firm Type, Industry Type, Quantity of Environmental Disclosure.

[1] Bae Choi, B., Lee, D., & Psaros, J. (2013). An analysis of Australian company carbon emission disclosures. Pacific Accounting Review, 25(1), 58–79.

[2] Borghei-Ghomi, Z., & Leung, P. (2013). An Empirical Analysis of the Determinants of Greenhouse Gas Voluntary Disclosure in Australia. Accounting and Finance Research, 2(1), 110–127. 5430/afr.v2n1p110

[3] Brown, N., & Deegan, C. (1998). The public disclosure of environmental performance information - A dual test of media agenda setting theory and legitimacy theory. Accounting and Business Research, 29(1), 21–41.

[4] Burgwal, Van De. D., & Vieira, R. J. O. (2014). Environmental disclosure determinants in Dutch listed companies. Revista Contabilidade & Finanças - USP, 25(64), 60–78.

[5] Deegan, C. (2002). Introduction: The legitimising effect of social and environmental disclosures – a theoretical foundation. Accounting, Auditing & Accountability Journal, 15(3), 282–311. 10.1108/09513570210435852

[6] Deegan, C. (2004). Environmental disclosures and share prices - A discussion about efforts to study this relationship. Accounting Forum, 28(1), 87–97.

[7] Deswanto, R. B., & Siregar, S. V. (2018). The associations between environmental disclosures with financial performance, environmental performance, and firm value. Social Responsibility Journal, 14(1), 180–193.

[8] Dibia, N. O., & Onwuchekwa, J. C. (2015). Determinants of Environmental Disclosures in Nigeria: A Case Study of Oil and Gas Companies. International Journal of Finance and Accounting, 4(3), 145– 152.

[9] Emre, H. (2014). Company Characteristics and Environmental Disclosure: An Empirical Investigation on Companies Listed on Borsa Istanbul 100 Index. The Journal of Accounting and Finance, 19p(62), 145–164. Retrieved from

[10] Ghozali, I. (2016). Aplikasi Analisis Multivariete Dengan Program IBM SPSS 23. Semarang: Badan Penerbit Universitas Diponegoro.

[11] Gumelar, G. (2018). Persoalan Tak Berujung Tumpahan Minyak Montara. Retrieved February 20, 2018, from CNN Indonesia website: persoalan-tak-berujung-tumpahan-minyak-montara

[12] Hermawan, A., Aisyah, I. S., Gunardi, A., & Putri, W. Y. (2018). Going green: Determinants of carbon emission disclosure in manufacturing companies in Indonesia. International Journal of Energy Economics and Policy, 8(1), 55–61.

[13] Kiende Gatimbu, K., & Masinde Wabwire, J. (2016). Effect of Corporate Environmental Disclosure on Financial Performance of Firms Listed at Nairobi Securities Exchange. Kenya. International Journal of Sustainability Management and Information Technologies, 2(1), 1–6. 20160201.11

[14] KPMG. (2017). Edge of Page - The KPMG survey of corporate responsibility reporting 2017. In The road ahead - The KPMG Survey of Corporate Responsibility Reporting 2017. 2013.238

[15] Lindawati, A. S. L., & Puspita, M. E. (2015). Corporate Social Responsibility: Implikasi Stakeholder dan Legitimacy Gap dalam Peningkatan Kinerja Perusahaan. Jurnal Akuntansi Multiparadigma, 157–174.

[16] Lindrianasari. (2007). Hubungan antara Kinerja Lingkungan dan Kualitas Pengungkapan Lingkungan dengan Kinerja Ekonomi Perusahaan di Indonesia. Jurnal Akuntansi & Auditing Indonesia, 11(2), 159– 172.

[17] Ohidoa, T., Omokhudu, O.. O., & Oserogho, I. A. F. (2016). Determinants of Environmental Disclosure. International Journal of Advanced Academic Research, 2(8), 49–58.

[18] Reverte, C. (2009). Determinants of corporate social responsibility disclosure ratings by Spanish listed firms. Journal of Business Ethics, 88(2), 351–366.

[19] Rosiana, G. A. M. (2013). Pengaruh Gcg Dan Csr Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Pemoderasi. E-Jurnal Akuntansi Universitas Udayana, 5(3), 723–728. 10.21107/infestasi.v12i1.1797

[20] Solikhah, B., & Winarsih, A. M. (2016). Pengaruh Liputan Media, Kepekaan Industri, Dan Struktur Tata Kelola Perusahaan Terhadap Kualitas Pengungkapan Lingkungan (The Effect Of Media Coverage, Industry Sensitivity And Corporate Governance Structure On Environmental Disclosure Quality). Jurnal Akuntansi Dan Keuangan Indonesia, 13(1), 1–22.

[21] Wahyuningrum, I. F. S., & Budihardjo, M. A. (2018). Relationship between Company Financial Performance, Characteristic and Environmental Disclosure of ASX Listed Companies. E3S Web of Conferences, 24, 3–7.

[22] Wendling, Z. A., John, E. W., Esty, D. C., Marc, L. A., & Sherbinin, A. de. (2016). Environmental Performance Index: Global Metrics for the Environment. In Yale University.