The effect of leverage and profitability on carbon emissions disclosure in Indonesia’s financial sector

Simon Simon; Ivo Putri Viddy Andini; Prita Rizki Nabila; Frihardina Marsintauli

doi:10.55942/pssj.v5i9.410

Authors

Simon Simon Bina Nusantara University
Ivo Putri Viddy Andini Bina Nusantara University
Prita Rizki Nabila Bina Nusantara University
Frihardina Marsintauli Bina Nusantara University

DOI:

https://doi.org/10.55942/pssj.v5i9.410

Keywords:

carbon emissions disclosure, leverage, profitability, financial sector

Abstract

This study aims to examine the effect of leverage and profitability on carbon emissions disclosure among financial sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2020-2022. A quantitative approach was employed using secondary data obtained through purposive sampling methods. Of the 105 companies, only 64 met the criteria. The data were analyzed using multiple linear regression with SPSS 30. The findings revealed that both leverage and profitability have a significant influence on carbon emissions disclosure. Companies with higher leverage and greater profitability tend to disclose more information related to carbon emissions. This behavior is likely driven by the perceived strategic benefits of environmental transparency, particularly in enhancing investor appeal and reinforcing competitive advantage. These results highlight the role of financial performance indicators in promoting environmental accountability in Indonesia’s financial sector.

Author Biographies

Simon Simon, Bina Nusantara University

Simon Simon is a faculty member in the Accounting Department at BINUS Online, Bina Nusantara University, Jakarta. His research focuses on corporate governance, financial performance, and sustainability reporting, with a particular emphasis on how financial indicators influence environmental disclosure. He has contributed to several studies on accounting and disclosure practices in Indonesia’s financial sector and is actively engaged in both teaching and academic research.

Ivo Putri Viddy Andini, Bina Nusantara University

Ivo Putri Viddy Andini is affiliated with the Accounting Department at BINUS Online, Bina Nusantara University. Her academic interests lie in financial accounting, corporate disclosure, and sustainability issues, especially in the context of emerging markets. She has been involved in research examining the relationship between company performance and environmental accountability, highlighting the strategic role of transparency in the financial industry.

Prita Rizki Nabila, Bina Nusantara University

Prita Rizki Nabila is a researcher and lecturer in the Accounting Department at BINUS Online, Bina Nusantara University. Her scholarly work covers areas of financial reporting, corporate social responsibility, and environmental accounting. She is particularly interested in exploring how profitability and leverage influence corporate disclosure practices, aiming to provide insights for both academics and practitioners in the Indonesian financial sector.

Frihardina Marsintauli, Bina Nusantara University

Frihardina Marsintauli is an academic at the Accounting Department of BINUS Online, Bina Nusantara University. Her research expertise includes accounting information systems, corporate sustainability, and environmental disclosure. She actively participates in studies focusing on the intersection of financial performance and environmental transparency, contributing to the development of accounting practices that support sustainable business operations.

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