The Influence of Board Diversity on Carbon Emission Disclosure in Energy-Sector Firms
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Abstract
This research seeks to supply empirical proof regarding the impact of board diversity on carbon emissions reporting in energy-sector companies traded on the Indonesia Stock Exchange during the 2022–2024 timeframe. Using Upper Echelon Theory as the theoretical foundation, the characteristics of the board of commissioners and the board of directors are analyzed separately in this study, covering gender, age, nationality, and political connections. The research sample comprises 69 energy-sector firms, yielding 200 firm-year observations. Carbon emission disclosure is measured using 19 disclosure indicators related to carbon emissions based on the Global Reporting Initiative (GRI). The panel data regression analysis demonstrates that firms with a higher proportion of foreign commissioners practice greater carbon emissions disclosure. The panel data regression analysis indicates that firms with a higher proportion of foreign commissioners characterize firms with greater carbon emissions disclosure. However, the proportions of female commissioners, younger directors (under 40), foreign directors, and directors with political connections are negatively associated with carbon emissions disclosure. The results indicate that firms still perceive carbon emission disclosure as providing insignificant benefits. Instead, it is often viewed as a burden due to the high costs of carbon emissions disclosure.
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