Published date: Sep 28 2022

Journal Title: KnE Social Sciences

Issue title: 4th International Conference on Education and Social Science Research (ICESRE)

Pages: 720–733

DOI: 10.18502/kss.v7i14.12024

Rahandhika Ivan Adyaksanarahandhika@upy.ac.idUniversitas PGRI Yogyakarta, Department of Accounting, Yogyakarta, Indonesia

Vidya Vitta AdhivinnaUniversitas PGRI Yogyakarta, Department of Accounting, Yogyakarta, Indonesia

Environmental performance is a measure created by the Government to determine the company’s concern for the environment. Environmental costs are sacrifices made by companies to obtain good environmental performance. In addition, companies can disclose information about the activities they have carried out to preserve the environment. The purpose of this study was to determine the effect of environmental costs on environmental performance, mediated by environmental information disclosure. Data were obtained from the annual reports of 12 manufacturing companies in Indonesia, registered from 2015-2019. These companies were selected using purposive sampling. The results indicated that: 1) environmental costs had no effect on environmental performance; 2) environmental costs had a positive and significant effect on disclosure of environmental information; 3) disclosure of environmental information had a positive and significant effect on environmental performance; and 4) disclosure of environmental information mediated the effect of environmental costs on environmental performance. Based on these findings, Indonesian manufacturing companies should increase the quality of their disclosure of environmental information.

Keywords: environmental cost, environmental performance, environmental information disclosure

[1] Cho CH, Patten DM. The role of environmental disclosures as tools of legitimacy: A research note. Accounting, Organizations and Society. 2007;32(7-8):639-47. https://doi.org/10.1016/j.aos.2006.09.009

[2] Irfansyah I, Ermaya HN, Septyan K. The influence of environmental performance, environmental disclosure and environmental cost on economic performance. EAJ (Economic and Accounting Journal). 2018;1(2):87-94. https://doi.org/10.32493/eaj.v1i2.y2018. p87-94

[3] J. Elkington, “Partnerships fromcannibals with forks: The triple bottom line of 21stcentury business.,” Environmental Quality Management. vol. 8, no. 1, pp. 37–51, 1998

[4] A. Lako, “Ecological crisis and urgency of green accounting.,” Majalah AKUNTAN Indonesia. vol. 2017, no. July-August, pp. 1–10, 2017.

[5] Mariani D. Pengaruh penerapan green accounting, kepemilikan saham publik, publikasi csr terhadap pengungkapan csr dengan kinerja keuangan sebagai variabel intervening (studi empiris pada perusahaan property dan real estate yang terdaftar di bursa efek indonesia tah. Jurnal Akuntansi Dan Keuangan. 2017;6(2):141-60.

[6] M. Mikial, T. Marwa, L. Fuadah, and I. Meutia, “The Effects of Environmental Performance and Environmental Information Disclosure on Financial Performance in Companies Listed on the Indonesia Stock Exchange.,” In: Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference. pp. 525–532. SCITEPRESS - Science and Technology Publications (2018)

[7] Meiyana A, Aisyah MN. Pengaruh kinerja lingkungan, biaya lingkungan, dan ukuran perusahaan terhadap kinerja keuangan dengan corporate social responsibility sebagai variabel intervening. Nominal: Barometer Riset Akuntansi dan Manajemen. 2019;8(1):1-8. https://doi.org/10.21831/nominal.v8i1.24495

[8] Y. Ma, Q. Zhang, Q. Yin, and B. Wang, “The Influence of Top Managers on Environmental Information Disclosure: The Moderating Effect of Company’s Environmental Performance,.” International Journal of Environmental Research and Public Health. vol. 16, no. 7, pp. 1–15, 2019

[9] Dowling J, Pfeffer J. Organizational legitimacy: Social values and organizational behavior. Pacific Sociological Review. 1975;18(1):122-36. https://doi.org/10.2307/1388226

[10] C. Deegan, “Introduction: The legitimising effect of social and environmental disclosures – a theoretical foundation.,” Accounting, Auditing & Accountability Journal. vol. 15, no. 3, pp. 282–311, 2002

[11] J. Bebbington, C. Larrinaga￿González, and J.M. Moneva￿Abadía, “Legitimating reputation/ the reputation of legitimacy theory.,” Accounting, Auditing & Accountability Journal. vol. 21, no. 3, pp. 371–374, 2008 [12] Nor NM, Bahari NA, Adnan NA, Kamal SM, Ali IM. The effects of environmental disclosure on financial performance in Malaysia. Procedia Economics and Finance. 2016;35:117-26. https://doi.org/10.1016/s2212-5671(16)00016-2


[13] Derila CP, Evana E, Dewi FG. Effect of environmental performance and environmental costs on financial performance with CSR disclosure as intervening variables. International Journal for Innovation Education and Research. 2020;8(1):37-43. https://doi.org/10.31686/ijier.vol8.iss1.2054

[14] Clarkson PM, Li Y, Richardson GD, Vasvari FP. Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society. 2008;33(4-5):303-27. https://doi.org/10.1016/j.aos.2007.05.003

[15] Shonhadji N. Financial performance to environmental disclosure with environmental performance as moderation. International Journal of Research Science and Management. 2018;5(8):183-91. https://doi.org/10.5281/zenodo.1405443

[16] Hansen DR, Mowen MM. Environmental cost management, management accounting. Management Accounting. Thomson South Western, Toronto, 2005.

[17] B. Basuki and R.D. Irwanda, “Environmental cost analysis and reporting to measure environmental performance in realizing eco-efficiency at PT Industri Kereta Api (Persero).,” Asian Journal of Accounting Research. vol. 3, no. 2, pp. 169–180, 2018

[18] Basuki B, Irwanda RD. Environmental cost analysis and reporting to measure environmental performance in realizing eco-efficiency at PT Industri Kereta Api (Persero). Asian Journal of Accounting Research. 2018;12:635–654.

[19] Nuzula NF. Corporate environmental expense in the perspective of Japanese investors: Merely another type of expense? Journal of International Business Research. 2012;11:15-24.

[20] Berthelot S, Cormier D, Magnan M. Environmental, disclosure research: Review and synthesis. Journal of Accounting Literature. 2003;22:1-44.

[21] Adriani A. Pengaruh tanggung jawab sosial perusahaan terhadap kualitas pengungkapan informasi tanggung jawab sosial dan dampaknya pada nilai perusahaan (Studi empiris pada perusahaan publik di Bursa Efek Indonesia). JWM ( Jurnal Wawasan Manajemen). 2015;3(1):15-31.

[22] Wahasusmiah R. Pengungkapan tanggung jawab sosial secara syariah terhadap kinerja keuangan dan kinerja lingkungan. Competitiveness and government incentive to take advantage of global economic opportunities. Diselenggarakan Oleh: Fakultas Ekonomi Universitas Sriwijaya dan Ikatan Sarjana Ekonomi Indonesia Cabang Palembang Palembang; 2015 November 27-28.

[23] Egbunike AP, Okoro GE. Does green accounting matter to the profitability of firms? A canonical assessment. Ekonomski Horizonti. 2018;20(1):17-26. https://doi.org/10.5937/ekonhor1801017e

[24] Kock N. Factor-based structural equation modeling with WarpPLS. Australasian Marketing Journal. 2019;27(1):57-63. https://doi.org/10.1016/j.ausmj.2019.02.002

[25] W. Setiawan, L.B. Hasiholan, and A. Pranaditya, “PENGARUH KINERJA LINGKUNGAN, BIAYA LINGKUNGAN DAN UKURAN PERUSAHAAN TERHADAP KINERJA KEUANGAN DENGAN CORPORATE SOCIAL RESPONSIBILITY (CSR) SEBAGAI VARIABEL INTERVENING (Studi Kasus Perusahaan Studi Kasus pada Perusahaan Manufaktur yang terdaftar di Bursa .,” Jurnal Ilmiah Mahasiswa S1 Akuntansi Universitas Pandanaran. vol. 4, no. 4, pp. 1–12, 2018.

[26] W.S.P. Tunggal and F. Fachrurrozie, “PENGARUH ENVIRONMENTAL PERFORMANCE, ENVIRONMENTAL COST DAN CSR DISCLOSURE TERHADAP FINANCIAL PERFORMANCE.,” Accounting Analysis Journal. vol. 3, no. 3, pp. 310–320, 2014

[27] S. Ren, W. Wei, H. Sun, Q. Xu, Y. Hu, and X. Chen, “Can mandatory environmental information disclosure achieve a win-win for a firm’s environmental and economic performance?,.” Journal of Cleaner Production. vol. 250, no. March, pp. 1–31, 2020