The Relationship of Carbon Emission Disclosure on The Cost of Debt

Bibliographic Data

ID16910660
AuthorsMohammad Nasih (0000-0002-7945-7593, Airlangga University), Astri Puspitasari (Airlangga University), Iman Harymawan (0000-0001-7621-6252, Airlangga University), Fajar Kristanto Gautama Putra (0000-0003-1213-0593, Airlangga University, corresponding author), Hadrian Geri Djajadikerta (0000-0003-1672-9579, Curtin University)
Year2024
Volume14
Issue4
Publication date2024-10-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/21582440241292134
OpenAlexW4404834215
LanguageEN
References cited70

Carbon Emission Disclosure (CED) trends have been positive for several years. Unfortunately, studies focusing on the relationship between CED and the Cost of Debt (COD) still need to be made available, particularly in emerging countries. Addressing this gap, this study aims to analyze the relationship between CED and COD in Indonesia. We predict that firms can enjoy a lower COD by lowering asymmetry information and fulfilling public expectations through CED. Using the unique characteristic of Indonesian-listed firms that participated Public Disclosure Program for Environmental Compliance (PROPER) during 2015 to 2019, we confirmed our verdict. Our result is robust due to several endogeneity test checks. Our study is believed to be one of the pioneers in analyzing the impact of CED on COD in the emerging market. Moreover, this study sample is limited to firms that follow PROPER, and we believe this is one of the robust initiatives to minimize greenwashing practices in CED

Business · Carbon fibers · Debt · Economics · Corporate Social Responsibility Reporting · Energy, Environment, Economic Growth · Mathematics · Psychology · Sustainable Finance and Green Bonds · Finance

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Open DOIOpen Access