Analysis of carbon emission disclosures of Indonesian companies and their market performance with board characteristics as a moderator

This study investigates the effect of disclosure of carbon emissions on company performance, especially market performance and the characteristics of a board consisting of independent commissioners and female directors as moderators. This study uses 517 firm-year observations from companies listed on the Indonesia stock exchange (IDX) for the 2015–2019 period. Consistent with the development of the hypothesis, the results show that the disclosure of carbon emissions is positively related to market performance. The same result is also shown in the logit regression robust test. We document that independent commissioners and female directors can strengthen the relationship between carbon emission disclosures (CED) and market performance. In addition, the results of additional studies show that the disclosure of carbon emissions is positively related to return on assets (ROA) and return on investment (ROE). Our findings show that the disclosure of carbon emissions can be a good idea for companies to improve financial performance, both market performance and accounting performance.