The Influence of Board of Directors Diversity on Carbon Emission Disclosure

Abstract

The purpose of this research is to investigate the impact of gender diversity and citizenship on disclosure of carbon emissions with media exposure as a moderator for companies listed on the Indonesian Stock Exchange between 2017-2021. The underlying foundation is legitimacy theory, and the Media Exposure variable is used as a moderator to explain the influence of Gender Diversity and Nationality of Board of Directors on Carbon Emission Disclosure. This research uses a quantitative questionnaire survey. The research sample consisted of 315 respondents from company annual reports on the Indonesia Stock Exchange for the 2017-2021 period, and multiple linear regression was used to validate the research model. The findings of this study indicate that the diversity of nationality on the board of directors has a positive effect on Carbon Emission Disclosure, and this relationship is strengthened through media exposure. This is because companies spend money to reduce environmental impacts, and the involvement of various Boards of Directors, companies will tend to disclose carbon emissions. Gender diversity on the board of directors has no effect on Carbon Emission Disclosure, and media exposure has no effect. gender diversity in the Board of Directors has no impact on Carbon Emission Disclosure. This research is useful for all stakeholders in companies based in Indonesia. The participation of directors from various countries encourages companies to carry out carbon emission disclosures. The relationship between board member diversity and carbon disclosure is strengthened when public opinion is formed through media exposure about a company's environmental performance.