Are the Financial Performance and Media Coverage Associated with the Quality of Environmental Disclosures?
Badingatus Solikhah, Subowo
Universitas Negeri Semarang
Abstract
Increased economic growth is positively associated with environmental pollution. The concept of environmental accounting has driven the companys ability to minimize environmental problems. The purpose of this study was to examine the effect of financial performance and media coverage on the quality of environmental disclosures. The population in this study is a company engaged in mining, energy, chemistry, pharmaceuticals, cosmetics, food and beverages that are listed on the Stock Exchange in 2012-2016. Samples were chosen by a purposive method so that 35 companies were selected so that 135 units of analysis were obtained. The data analysis method used is Structural Equation Modeling (SEM) with a SmartPLS 3.0 analysis tool. The results showed that media coverage had a significant positive effect on the quality of environmental disclosures. While financial performance is not associated with the quality of environmental disclosures. The practical implications of this study, the results are expected to contribute to the government and stock exchange authorities in order to take immediate action in making policies related to environmental management for listed companies and their reporting to stakeholders.
Keywords: Financial Performance; Media Coverage; Environment Disclosure
Topic: Sustainable development