Anggeraini Ela, Postgraduate Student, Faculty of Economy, Sriwijaya University, Palembang, Indonesia

ORCID ID: 0000-0001-9397-0169
e-mail: elaanggeraini@gmail.com

Wahyudi Tertiarto, Doctor (Economics), Lecturer at Faculty of Economy, Sriwijaya University, Palembang, Indonesia

ORCID ID: 0000-0003-4056-5105
e-mail: tertiarto_wahyudi@unsri.ac.id

Yusnaini, Doctor (Economics), Lecturer at Faculty of Economy, Sriwijaya University, Palembang, Indonesia

ORCID ID: 0000-0003-4153-9582
e-mail: yusnaini_msi@yahoo.com

Factors Affecting Environmental Disclosure In Textile And Garment Companies

Abstract. Environmental problems are now important concerns for the investors and government. In the case of textile and garment companies, many have not fully paid attention to the surrounding environment. This research was conducted to analyze the effect of media coverage and the board of commissioners on environmental disclosure in 14 textile and garment companies listed on the Indonesia Stock Exchange (IDX) in 2015-2018. The study acquired data through library study methods and documentation. The data were analyzed using panel data regression, and the documentation was examined by the eviews program. The results of the study were expected to be a reference material for further research that related to environmental disclosure.

Purpose. The purpose of the article is to analyze the influence of media and the board of commissioners’ coverage on environmental disclosure in textile and garment companies listed on the Indonesia Stock Exchange (BEI) in 2015-2018.

Result. The results of the study stated that (1) the media coverage influenced the environmental disclosure, (2) the size of the board of commissioners provided an influence on the environmental disclosure, (3) the educational background of the board of commissioners influenced the environmental disclosure and (4) the proportion of independent commissioners gave no effect on the environmental disclosure.

Conclusion. The results of this study indicate that the average value of environmental disclosure of textile and garment companies in Indonesia is still very low (19%). Companies must disclose environmental disclosure information to minimize information asymmetry in the annual report. Furthermore, an improvement in media coverage and both the size and the educational background of the board of commissioners will increase the environmental disclosure. On the other hand, no significant influence occurs from the proportion of board commissioners to the growth of environmental disclosure.

Keywords: environmental disclosure; media coverage; commissioner board size; the proportion of independent commissioner board and the educational background of the commissioner board.

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