POLITICAL CONNECTIONS AND ITS INFLUENCE ON CARBON EMISSIONS

Title: POLITICAL CONNECTIONS AND ITS INFLUENCE ON CARBON EMISSIONS

Author: EMILIA GIE

Affiliations: Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This research examines political connections and their influence on carbon emissions disclosure. Apart from that, other variables were added as control variables, namely, profitability, company size and leverage. From the results obtained, political connections are a factor that influences the extent of carbon emissions disclosure and has a positive direction. In other words, when a company has political connections, the disclosure of carbon emissions by the company becomes more extensive. This is because politically connected management has an effort to improve its good reputation, especially regarding concern for the environment in the eyes of the government, investors and the public. The results of this research also show that the larger the company size, the greater the company's ability to disclose carbon emissions. Large companies also attract investors, so management tries its best to provide the information needed by stakeholders. This research was tested using multiple regression analysis on manufacturing companies listed on the BEI in 2015-2016 which were PROPER participants using the purposive sampling method in selecting samples.

Keywords: Carbon Emission Disclosure, political connections, profitability, company size, leverage, climate change, environmental concern

Sources: http://repository.unair.ac.id/87352/