A Long Way to Implement Environmental Reporting in Indonesian Mining Companies

Abstract

This study aims to identify the antecedents of environmental reporting (ER) disclosure of mining companies in Indonesia. The population of this study was all mining companies listed in the Indonesia Stock Exchange (IDX). Using purposive sampling, the study collected 120 data from 30 companies. Correlation and path analyses identified four antecedents of ER i.e. length of listing in stock exchange (AGE), Company Size, Leverage, and Profitability. There were significant impacts of SIZE, AGE, Leverage, and Profitability on ER. SIZE significantly influences Leverage while AGE impacts on profitability. The practice of ER among mining companies is very much related to business strategies. ER would be widely reported by the companies when they have high leverage and unsatisfactory financial performance. Without tight supervision and hard enforcement from concerned parties, the implementation of appropriate ER disclosure in mining companies would have a long way to go.

Keywords: Environmental Reporting, Firm Size, Firm Age, Leverage, Profitability

JEL Classification: M41