Women on Boards as A Mechanism to Improve Carbon Emission Disclosure and Firm Value
Abstract
This study investigates the role of women on boards as a mechanism to improve carbon emission disclosure, as a mediating effect influence on firm value. The population includes 122 nonfinancial companies listed on the Indonesia Stock Exchange from 2015 to 2019. The results of path analysis reveal that women on boards have a positive and significant effect on carbon emission disclosure, a positive but insignificant effect on firm value, and that carbon emission disclosure is pivotal in mediating women on boards and firm value. This study provides insights that persuade companies to maintain relationships with stakeholders by implementing environmental awareness and disclosing sustainability reports. Carbon emission disclosure as part of the sustainability report is a form of good corporate action in maintaining the balance of living systems on earth.
Keywords: women on boards, carbon emissions disclosure, firm value
Downloads
Download data is not yet available.
References
Ahmad, N. N. N., & Hossain, D. M. (2015). Climate Change and Global Warming Discourses and Disclosures in the Corporate Annual Reports: A Study on the Malaysian Companies. Procedia - Social and Behavioral Sciences, 172, 246–253. https://doi.org/10.1016/j.sbspro.2015.01.361
Alsaifi, K., Elnahass, M., & Salama, A. (2020). Carbon disclosure and financial performance: UK environmental policy. Business Strategy and the Environment, 29(2), 711-726. https://doi.org/10.1002/bse.2426
Amorelli, M. F., & García‐Sánchez, I. M. (2020). Critical mass of female directors, human capital, and stakeholder engagement by corporate social reporting. Corporate Social Responsibility and Environmental Management, 27(1), 204-221. https://doi.org/10.1002/csr.1793
Birindelli, G., Iannuzzi, A. P., & Savioli, M. (2019). The impact of women leaders on environmental performance: Evidence on gender diversity in banks. Corporate Social Responsibility and Environmental Management, 26(6), 1485-1499. https://doi.org/10.1002/csr.1762
Burkhardt, K., Nguyen, P., & Poincelot, E. (2020). Agents of change: Women in top management and corporate environmental performance. Corporate Social Responsibility and Environmental Management, 27(4), 1591-1604. https://doi.org/10.1002/csr.1907
Byron, K., & Post, C. (2016). Women on Boards of Directors and Corporate Social Performance: A Meta-Analysis. Corporate Governance: An International Review, 24(4), 428–442. https://doi.org/10.1111/corg.12165
Choi, B. B., Lee, D., & Psaros, J. (2013). An Analysis of Australian Company Carbon Emission Disclosures. Pacific Accounting Review, 25(1), 58–79. https://doi.org/10.1108/01140581311318968
Cook, A., & Glass, C. (2018). Women on corporate boards: Do they advance corporate social responsibility?. Human relations, 71(7), 897-924. https://doi.org/10.1177/0018726717729207
Dang, H. N., Pham, C. D., Nguyen, T. X., & Nguyen, H. T. T. (2020). Effects of corporate governance and earning quality on listed Vietnamese firm value. The Journal of Asian Finance, Economics, and Business, 7(4), 71-80. https://doi.org/10.13106/jafeb.2020.vol7.no4.71
Downar, B., Ernstberger, J., Reichelstein, S. J., Schwenen, S., & Zaklan, A. (2020). The impact of carbon disclosure mandates on emissions and financial operating performance. ZEW-Centre for European Economic Research Discussion Paper, (20-038). https://ideas.repec.org/p/zbw/zewdip/20038.html
Farida, D. N. (2019). The Effect Diversitas Gender Terhadap Pengungkapan Sustainability Development Goals. Jurnal Akuntansi Indonesia, 8(2), 89-107.
Freeman, R. E., & Reed, D. L. (1983). Stockholders and Stakeholders: A New Perspective on Corporate Governance. California Management Review, 25(3), 88–106. https://doi.org/10.2307/41165018
Gaio, C., & Raposo, C. (2011). Earnings quality and firm valuation: International evidence*. Accounting and Finance, 51, 467–499. https://doi.org/10.1111/j.1467-629X.2010.00362.x
Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25. Semarang: Badan Penerbit Universitas Diponegoro.
Gray, J. (1993). Men are from mars, women are from venus. A Practical Guide for Improving Communication and Getting What You Want in Your Relationships. Harper Collins Publishers.
Gull, A. A., Nekhili, M., Nagati, H., & Chtioui, T. (2018). Beyond gender diversity: How specific attributes of female directors affect earnings management. The British Accounting Review, 50(3), 255-274. https://doi.org/10.1016/j.bar.2017.09.001
Gupta, V. K., Mortal, S., Chakrabarty, B., Guo, X., & Turban, D. B. (2020). CFO gender and financial statement irregularities. Academy of Management Journal, 63(3), 802-831. https://doi.org/10.5465/amj.2017.0713
Hannam, J. (2007). Feminism. Eangland: Pearson Education.
Hitipeuw, S. D., & Kuntari, Y. (2020). The Effect Kepemilikan Saham Publik, Profitabilitas, dan Media terhadap Pengungkapan Tanggung Jawab Sosial Perusahaan. Management and Accounting Expose, 3(1), 40-51. https://doi.org/10.36441/mae.v3i1.135
Hollindale, J., Kent, P., Routledge, J., & Chapple, L. (2019). Women on boards and greenhouse gas emission disclosures. Accounting and Finance, 59(1), 277–308. https://doi.org/10.1111/acfi.12258
Horisch, J., Schaltegger, S., & Freeman, R. E. (2020). Integrating stakeholder theory and sustainability accounting: A conceptual synthesis. Journal of Cleaner Production, 275, 124097. https://doi.org/10.1016/J.JCLEPRO.2020.124097
Hung, D. N., & Van, V. T. T. (2020). Researching the Firm Characteristics Affecting the Earnings Quality: The Case of Vietnam. Calitatea, 21(179), 106-112.
Jaggi, B., Allini, A., Macchioni, R., & Zampella, A. (2018). Do investors find carbon information useful? Evidence from Italian firms. Review of Quantitative Finance and Accounting, 50(4), 1031–1056. https://doi.org/10.1007/s11156-017-0653-x
Jizi, M. (2017). The Influence of Board Composition on Sustainable Development Disclosure. Business Strategy and the Environment, 26(5), 640–655. https://doi.org/10.1002/bse.1943
Kelvin, C., Daromes, F. E., & Ng, S. (2017). Pengungkapan Emisi Karbon sebagai Mekanisme Peningkatan Kinerja untuk Menciptakan Nilai Perusahaan. Dinamika Akuntansi, Keuangan Dan Perbankan, 6(1). https://www.unisbank.ac.id/ojs/index.php/fe9/article/view/5948
Kelvin, C., Pasoloran, O., & Randa, F. (2019). Mekanisme Pengungkapan Emisi Karbon dan Reaksi Investor. Jurnal Ilmiah Akuntansi Dan Bisnis, 14(2), 155–168. https://doi.org/10.24843/jiab.2019.v14.i02.p02
Lee, G., & Xiao, X. (2020). Voluntary engagement in environmental projects: Evidence from environmental violators. Journal of Business Ethics, 164(2), 325-348. https://doi.org/10.1007/s10551-018-4074-0
Liao, L., Luo, L., & Tang, Q. (2015). Gender Diversity, Board Independence, Environmental Committee and Greenhouse Gas Disclosure. British Accounting Review, 47(4), 409–424. https://doi.org/10.1016/j.bar.2014.01.002
Liao, Z., Zhang, M., & Wang, X. (2019). Do female directors influence firms' environmental innovation? The moderating role of ownership type. Corporate Social Responsibility and Environmental Management, 26(1), 257-263. https://doi.org/10.1002/csr.1677
Lori, H., Hamdan, A. M., Sarea, A., & Al Shirawi, T. M. (2019). Women on board and firm performance: evidence from kingdom of Bahrain. In Handbook of Research on Women in Management and the Global Labor Market (pp. 312-335). IGI Global. https://doi.org/10.4018/978-1-5225-9171-9.ch016
Lovelock, J. E. (1979). Gaia: A New Look at Life on Earth. Oxford University Press: Oxford.
Lovelock, J. E., & Watson, A. J. (1982). The regulation of carbon dioxide and climate: Gaia or geochemistry. Planetary and Space Science, 30(8), 795–802. https://doi.org/10.1016/0032-0633(82)90112-X
Luo, L. (2019). The influence of institutional contexts on the relationship between voluntary carbon disclosure and carbon emission performance. Accounting & Finance, 59(2), 1235-1264. https://doi.org/10.1111/acfi.12267
Martínez, M. D. C. V., & Rambaud, S. C. (2019). Women on corporate boards and firm's financial performance. In Women's Studies International Forum, Vol. 76, 102251. https://doi.org/10.1016/j.wsif.2019.102251
Mirza, N. I., Malik, Q. A., & Mahmood, C. K. (2020). The value of board diversity in the relationship of corporate governance and investment decisions of pakistani firms. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 146. https://doi.org/10.3390/joitmc6040146.
Nadeem, M., Zaman, R., & Saleem, I. (2017). Boardroom gender diversity and corporate sustainability practices: Evidence from Australian Securities Exchange listed firms. Journal of Cleaner Production, 149, 874-885. https://doi.org/10.1016/j.jclepro.2017.02.141
Nainggolan, N. E., & Rohman, A. (2015). The Effect Struktur Corporate Governance Terhadap Pengungkapan Lingkungan (Studi Empiris pada Perusahaan Non-Keuangan yang terdaftar di Bursa Efek Indonesia Periode 2011-2013). Diponegoro Journal of Accounting, 4(2), 190–198.
Ng, S., & Daromes, F. E. (2016). Peran Kemampuan Manajerial Sebagai Mekanisme Peningkatan Kualitas Laba dan Nilai Perusahaan. Jurnal Akuntansi Dan Keuangan Indonesia, 13(2), 174–193. https://doi.org/10.21002/jaki.2016.10
Olthuis, B. R., & van den Oever, K. F. (2020). The board of directors and CSR: How does ideological diversity on the board impact CSR?. Journal of Cleaner Production, 251, 119532. https://dx.doi.org/10.1016/j.jclepro.2019.119532
Orazalin, N., & Baydauletov, M. (2020). Corporate social responsibility strategy and corporate environmental and social performance: The moderating role of board gender diversity. Corporate Social Responsibility and Environmental Management, 27(4), 1664-1676. https://doi.org/10.1002/csr.1915
Rashid, A. (2018). Does corporate social responsibility reporting enhance shareholders’ value?: A simultaneous equation approach. Journal of Financial Reporting and Accounting, 16(1), 158–178. https://doi.org/10.1108/JFRA-10-2016-0084
Solikhah, B. (2020). Are the Financial Performance and Media Coverage Associated with the Quality of Environmental Disclosures?. KnE Social Sciences, 1255-1265. https://knepublishing.com/index.php/KnE-Social/article/view/6675
Tingbani, I., Chithambo, L., Tauringana, V., & Papanikolaou, N. (2020). Board gender diversity, environmental committee and greenhouse gas voluntary disclosures. Business Strategy and the Environment, 29(6), 2194-2210. https://doi.org/10.1002/bse.2495
Umer, R., Abbas, N., & Hussain, S. (2020). The Gender Diversity and Earnings Management Practices: Evidence from Pakistan. City University Research Journal, 10(2), 342-357.
Utomo, M. N. (2019). Ramah Lingkungan dan Nilai Perusahaan. Jakad Media Publishing.
Wikhamn, W., & Wikhamn, B. R. (2020). Gender diversity and innovation performance: evidence from R&D workforce in Sweden. International Journal of Innovation Management, 24(07), 2050061. https://doi.org/10.1142/S1363919620500619
Yang, Y., Wen, J., & Li, Y. (2020). The impact of environmental information disclosure on the firm value of listed manufacturing firms: Evidence from China. International journal of environmental research and public health, 17(3), 916. https://doi.org/10.3390/ijerph17030916
Zsolnai, L. (2006). Extended stakeholder theory. Society and Business Review, 1(1), 37–44. https://doi.org/10.1108/17465680610643337
Alsaifi, K., Elnahass, M., & Salama, A. (2020). Carbon disclosure and financial performance: UK environmental policy. Business Strategy and the Environment, 29(2), 711-726. https://doi.org/10.1002/bse.2426
Amorelli, M. F., & García‐Sánchez, I. M. (2020). Critical mass of female directors, human capital, and stakeholder engagement by corporate social reporting. Corporate Social Responsibility and Environmental Management, 27(1), 204-221. https://doi.org/10.1002/csr.1793
Birindelli, G., Iannuzzi, A. P., & Savioli, M. (2019). The impact of women leaders on environmental performance: Evidence on gender diversity in banks. Corporate Social Responsibility and Environmental Management, 26(6), 1485-1499. https://doi.org/10.1002/csr.1762
Burkhardt, K., Nguyen, P., & Poincelot, E. (2020). Agents of change: Women in top management and corporate environmental performance. Corporate Social Responsibility and Environmental Management, 27(4), 1591-1604. https://doi.org/10.1002/csr.1907
Byron, K., & Post, C. (2016). Women on Boards of Directors and Corporate Social Performance: A Meta-Analysis. Corporate Governance: An International Review, 24(4), 428–442. https://doi.org/10.1111/corg.12165
Choi, B. B., Lee, D., & Psaros, J. (2013). An Analysis of Australian Company Carbon Emission Disclosures. Pacific Accounting Review, 25(1), 58–79. https://doi.org/10.1108/01140581311318968
Cook, A., & Glass, C. (2018). Women on corporate boards: Do they advance corporate social responsibility?. Human relations, 71(7), 897-924. https://doi.org/10.1177/0018726717729207
Dang, H. N., Pham, C. D., Nguyen, T. X., & Nguyen, H. T. T. (2020). Effects of corporate governance and earning quality on listed Vietnamese firm value. The Journal of Asian Finance, Economics, and Business, 7(4), 71-80. https://doi.org/10.13106/jafeb.2020.vol7.no4.71
Downar, B., Ernstberger, J., Reichelstein, S. J., Schwenen, S., & Zaklan, A. (2020). The impact of carbon disclosure mandates on emissions and financial operating performance. ZEW-Centre for European Economic Research Discussion Paper, (20-038). https://ideas.repec.org/p/zbw/zewdip/20038.html
Farida, D. N. (2019). The Effect Diversitas Gender Terhadap Pengungkapan Sustainability Development Goals. Jurnal Akuntansi Indonesia, 8(2), 89-107.
Freeman, R. E., & Reed, D. L. (1983). Stockholders and Stakeholders: A New Perspective on Corporate Governance. California Management Review, 25(3), 88–106. https://doi.org/10.2307/41165018
Gaio, C., & Raposo, C. (2011). Earnings quality and firm valuation: International evidence*. Accounting and Finance, 51, 467–499. https://doi.org/10.1111/j.1467-629X.2010.00362.x
Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25. Semarang: Badan Penerbit Universitas Diponegoro.
Gray, J. (1993). Men are from mars, women are from venus. A Practical Guide for Improving Communication and Getting What You Want in Your Relationships. Harper Collins Publishers.
Gull, A. A., Nekhili, M., Nagati, H., & Chtioui, T. (2018). Beyond gender diversity: How specific attributes of female directors affect earnings management. The British Accounting Review, 50(3), 255-274. https://doi.org/10.1016/j.bar.2017.09.001
Gupta, V. K., Mortal, S., Chakrabarty, B., Guo, X., & Turban, D. B. (2020). CFO gender and financial statement irregularities. Academy of Management Journal, 63(3), 802-831. https://doi.org/10.5465/amj.2017.0713
Hannam, J. (2007). Feminism. Eangland: Pearson Education.
Hitipeuw, S. D., & Kuntari, Y. (2020). The Effect Kepemilikan Saham Publik, Profitabilitas, dan Media terhadap Pengungkapan Tanggung Jawab Sosial Perusahaan. Management and Accounting Expose, 3(1), 40-51. https://doi.org/10.36441/mae.v3i1.135
Hollindale, J., Kent, P., Routledge, J., & Chapple, L. (2019). Women on boards and greenhouse gas emission disclosures. Accounting and Finance, 59(1), 277–308. https://doi.org/10.1111/acfi.12258
Horisch, J., Schaltegger, S., & Freeman, R. E. (2020). Integrating stakeholder theory and sustainability accounting: A conceptual synthesis. Journal of Cleaner Production, 275, 124097. https://doi.org/10.1016/J.JCLEPRO.2020.124097
Hung, D. N., & Van, V. T. T. (2020). Researching the Firm Characteristics Affecting the Earnings Quality: The Case of Vietnam. Calitatea, 21(179), 106-112.
Jaggi, B., Allini, A., Macchioni, R., & Zampella, A. (2018). Do investors find carbon information useful? Evidence from Italian firms. Review of Quantitative Finance and Accounting, 50(4), 1031–1056. https://doi.org/10.1007/s11156-017-0653-x
Jizi, M. (2017). The Influence of Board Composition on Sustainable Development Disclosure. Business Strategy and the Environment, 26(5), 640–655. https://doi.org/10.1002/bse.1943
Kelvin, C., Daromes, F. E., & Ng, S. (2017). Pengungkapan Emisi Karbon sebagai Mekanisme Peningkatan Kinerja untuk Menciptakan Nilai Perusahaan. Dinamika Akuntansi, Keuangan Dan Perbankan, 6(1). https://www.unisbank.ac.id/ojs/index.php/fe9/article/view/5948
Kelvin, C., Pasoloran, O., & Randa, F. (2019). Mekanisme Pengungkapan Emisi Karbon dan Reaksi Investor. Jurnal Ilmiah Akuntansi Dan Bisnis, 14(2), 155–168. https://doi.org/10.24843/jiab.2019.v14.i02.p02
Lee, G., & Xiao, X. (2020). Voluntary engagement in environmental projects: Evidence from environmental violators. Journal of Business Ethics, 164(2), 325-348. https://doi.org/10.1007/s10551-018-4074-0
Liao, L., Luo, L., & Tang, Q. (2015). Gender Diversity, Board Independence, Environmental Committee and Greenhouse Gas Disclosure. British Accounting Review, 47(4), 409–424. https://doi.org/10.1016/j.bar.2014.01.002
Liao, Z., Zhang, M., & Wang, X. (2019). Do female directors influence firms' environmental innovation? The moderating role of ownership type. Corporate Social Responsibility and Environmental Management, 26(1), 257-263. https://doi.org/10.1002/csr.1677
Lori, H., Hamdan, A. M., Sarea, A., & Al Shirawi, T. M. (2019). Women on board and firm performance: evidence from kingdom of Bahrain. In Handbook of Research on Women in Management and the Global Labor Market (pp. 312-335). IGI Global. https://doi.org/10.4018/978-1-5225-9171-9.ch016
Lovelock, J. E. (1979). Gaia: A New Look at Life on Earth. Oxford University Press: Oxford.
Lovelock, J. E., & Watson, A. J. (1982). The regulation of carbon dioxide and climate: Gaia or geochemistry. Planetary and Space Science, 30(8), 795–802. https://doi.org/10.1016/0032-0633(82)90112-X
Luo, L. (2019). The influence of institutional contexts on the relationship between voluntary carbon disclosure and carbon emission performance. Accounting & Finance, 59(2), 1235-1264. https://doi.org/10.1111/acfi.12267
Martínez, M. D. C. V., & Rambaud, S. C. (2019). Women on corporate boards and firm's financial performance. In Women's Studies International Forum, Vol. 76, 102251. https://doi.org/10.1016/j.wsif.2019.102251
Mirza, N. I., Malik, Q. A., & Mahmood, C. K. (2020). The value of board diversity in the relationship of corporate governance and investment decisions of pakistani firms. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 146. https://doi.org/10.3390/joitmc6040146.
Nadeem, M., Zaman, R., & Saleem, I. (2017). Boardroom gender diversity and corporate sustainability practices: Evidence from Australian Securities Exchange listed firms. Journal of Cleaner Production, 149, 874-885. https://doi.org/10.1016/j.jclepro.2017.02.141
Nainggolan, N. E., & Rohman, A. (2015). The Effect Struktur Corporate Governance Terhadap Pengungkapan Lingkungan (Studi Empiris pada Perusahaan Non-Keuangan yang terdaftar di Bursa Efek Indonesia Periode 2011-2013). Diponegoro Journal of Accounting, 4(2), 190–198.
Ng, S., & Daromes, F. E. (2016). Peran Kemampuan Manajerial Sebagai Mekanisme Peningkatan Kualitas Laba dan Nilai Perusahaan. Jurnal Akuntansi Dan Keuangan Indonesia, 13(2), 174–193. https://doi.org/10.21002/jaki.2016.10
Olthuis, B. R., & van den Oever, K. F. (2020). The board of directors and CSR: How does ideological diversity on the board impact CSR?. Journal of Cleaner Production, 251, 119532. https://dx.doi.org/10.1016/j.jclepro.2019.119532
Orazalin, N., & Baydauletov, M. (2020). Corporate social responsibility strategy and corporate environmental and social performance: The moderating role of board gender diversity. Corporate Social Responsibility and Environmental Management, 27(4), 1664-1676. https://doi.org/10.1002/csr.1915
Rashid, A. (2018). Does corporate social responsibility reporting enhance shareholders’ value?: A simultaneous equation approach. Journal of Financial Reporting and Accounting, 16(1), 158–178. https://doi.org/10.1108/JFRA-10-2016-0084
Solikhah, B. (2020). Are the Financial Performance and Media Coverage Associated with the Quality of Environmental Disclosures?. KnE Social Sciences, 1255-1265. https://knepublishing.com/index.php/KnE-Social/article/view/6675
Tingbani, I., Chithambo, L., Tauringana, V., & Papanikolaou, N. (2020). Board gender diversity, environmental committee and greenhouse gas voluntary disclosures. Business Strategy and the Environment, 29(6), 2194-2210. https://doi.org/10.1002/bse.2495
Umer, R., Abbas, N., & Hussain, S. (2020). The Gender Diversity and Earnings Management Practices: Evidence from Pakistan. City University Research Journal, 10(2), 342-357.
Utomo, M. N. (2019). Ramah Lingkungan dan Nilai Perusahaan. Jakad Media Publishing.
Wikhamn, W., & Wikhamn, B. R. (2020). Gender diversity and innovation performance: evidence from R&D workforce in Sweden. International Journal of Innovation Management, 24(07), 2050061. https://doi.org/10.1142/S1363919620500619
Yang, Y., Wen, J., & Li, Y. (2020). The impact of environmental information disclosure on the firm value of listed manufacturing firms: Evidence from China. International journal of environmental research and public health, 17(3), 916. https://doi.org/10.3390/ijerph17030916
Zsolnai, L. (2006). Extended stakeholder theory. Society and Business Review, 1(1), 37–44. https://doi.org/10.1108/17465680610643337
Published
2021-07-25
How to Cite
MONICA, Monica; DAROMES, Fransiskus Eduardus; NG, Suwandi.
Women on Boards as A Mechanism to Improve Carbon Emission Disclosure and Firm Value.
Jurnal Ilmiah Akuntansi dan Bisnis, [S.l.], v. 16, n. 2, p. 343-358, july 2021.
ISSN 2303-1018.
Available at: <https://ojs.unud.ac.id/index.php/jiab/article/view/68612>. Date accessed: 30 june 2024.
doi: https://doi.org/10.24843/JIAB.2021.v16.i02.p11.
Issue
Section
Articles
