Environmental Disclosure In Notes To Financial Statements And Cost Of Capital

Anuwar, Nabilah Qatrunnada and Aulia Fuad Rahman, DBA.,CA (2020) Environmental Disclosure In Notes To Financial Statements And Cost Of Capital. Sarjana thesis, Universitas Brawijaya.

Abstract

This research aims to investigate the effects of the amount of corporate social responsibility disclosure on notes to financial statements towards the weighted cost of capital in public companies listed in IDX within the Basic Industry and Chemicals and Mining sector using content analysis. Using NVIVO to collect data, we search for specific keywords determined by Gamerschlag et al. (2011) based on the Global Reporting Initiative (GRI) guidelines which are: 1. Recycled 2. Energy consumption 3. Biodiversity 4. Emissions 5. Effluents 6. Waste 7. Spills 8. Environmental Impacts With the help of SPSS, the output result from NVIVO is then regressed against the weighted average cost of capital of the company three months after the reported annual report is published. This research used one-tailed linear regression to test its hypothesis. Findings from this research show that there is no negative relationship between the amount of CSR disclosure with the cost of capital of the company. Regressing the positive and negative CSR disclosure with the company’s cost 51 of capital shows that both types of information does not seem to affect the cost of capital in any way. It is believed that Indonesia lack of regulation and awareness about the impact of the company’s behavior towards the environment to be the reason behind its insignificance. The result is in accordance with previous researches which seems to state that the causation is insignificant in developing countries due to its lack of existence as there seem to be no supportive regulations that exist to intensify the environmental disclosure in companies’ annual report. Countries such as China and Australia have already developed their regulations to motivate companies disclosing their environmental impacts. This difference in motivation from the government and community creates a big difference in whether the relationship between the amount of CSR disclosure and cost of capital is significant enough for one to affect the other.

Item Type: Thesis (Sarjana)
Identification Number: SKR/FEB/2020/13/052003782
Subjects: 600 Technology (Applied sciences) > 657 Accounting
Divisions: Fakultas Ekonomi dan Bisnis > Akuntansi
Depositing User: soegeng sugeng
Date Deposited: 15 Dec 2021 06:59
Last Modified: 12 Apr 2023 02:14
URI: http://repository.ub.ac.id/id/eprint/187015
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