The Impacts of Carbon Emission Disclosure, Environmental Performance, and Social Performance on Financial Performance (Empirical Studies in Proper Participating Companies Listed in Indonesia Stocks Exchange, Year 2013–2016)
DOI:
https://doi.org/10.18502/kss.v3i10.3439Abstract
This study aims to examine the impacts of carbon emission disclosure, environmental performance, and social performance on financial performance of PROPER participating companies listed in Indonesia Stocks Exchange during the years 2013–2016. Methods to measure the carbon emission disclosure are obtained from checklists based on the requisition sheet of the Carbon Disclosure Project (CDP). The environmental performance is measured using PROPER assessment results retrieved from the annual reports, as well as the sustainability reports. The social performance is assessed using social reporting performance scores through the analysis that is given by the Global Reporting Initiative (GRI) G4 Guidelines. Meanwhile, financial performance is measured using Return on Asset (ROA). The samples in this study are applied using purposive sampling, and 87 PROPER participating companies listed in Indonesia Stocks Exchange during the years 2013–2016 have been obtained. The results of this study show that the carbon emission disclosure, and environmental performance have significant positive impacts on the financial performance, meanwhile the social performance does not significantly influence the financial performance.
Keywords: carbon emission disclosure, environmental performance, social performance, financial performance
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