Linking Corporate Carbon Emission, Social Responsibility Disclosure, and Firm Financial Performance
This study aims to provide empirical evidence for the impact of carbon emissions and corporate social responsibility disclosure on the financial performance of the consumer goods industry listed in The Indonesia Stock Exchange (IDX) for the period 2015-2017. The data type of this study is panel data, which is a compound of time series that uses the research period from 2015 to 2017 with a cross section involving consumer goods industries. This type of research uses quantitative methods and the data used in this research are secondary data obtained from annual financial statements from the IDX, company website, and sustainability report.
The conclusion of this study, which is based on the results of research and analysis, shows that the disclosure of carbon emissions has a positive impact on financial performance and that the disclosure of corporate social responsibility has a significant negative impact on financial performance. This research will provide empirical input in the form of managerial which is every company would want to continue to improve its financial performance to achieve the company’s goal of improving the welfare of shareholders. The results of this study can be taken into consideration for the company’s management in formulating and can help improve the positive image of the community for corporate participation in social activities (corporate social responsibility disclosure) which impacts the company’s financial performance which becomes better because if the company offers products to be purchased by the public then it will be considered to offer something that will bring improvement to the community. For investors, it can provide additional information in making investment decisions based on non-monetary measures of CED and CSRD, and for scientific references and the development of literature for further research, taking into account the further development of the following: adding control variables that can affect financial performance, such as company size and industry type, and using others corporate sectors such as mining, basic industries, and chemicals to obtain more representative samples to answer research problems.
- Andrian, T. (2020). Linking Corporate Carbon Emission, Social Responsibility Disclosure, and Firm Financial Performance. TEST Engineering & Management. May-June 2020, 1-8.
- Google Image. (2021)