ABSTRACT
This research aims to obtain empirical evidence about the role of corporate governance, and its aspects and company characteristics on environmental disclosure. The independent variables tested in this research consisted of corporate governance aspects (proportion of independent commissioners, ethnicity of the president of the commissioners, educational background of the president of the commissioners, frequency of commissioners’ meetings, proportion of independent members of an audit committee, frequency of audit committee meetings, and gender diversity of the commissioners), and company characteristics (profitability, leverage, and size), while the dependent variable of environmental disclosure was measured using Global Reporting Index 4.0. The sample researched consisted of 89 manufacturing companies listed on the Indonesia Stock Exchange from 2012 to 2016. This paper is a quantitative study and the sampling method used was purposive. The data on corporate governance aspects was collected from annual reports and the analysis technique was multiple regression. The results of this research showed that the ethnicity of the president of the commissioners had a negative significant effect, the proportion of independent audit committee members had a positive significant effect, and the frequency of audit committee meetings had a positive significant effect in environmental disclosure. For company characteristics, only leverage had a negative significant effect while firm size had a positive significant effect on environmental disclosure. The proportion of independent commissioners, the educational background of the president of the commissioners, the frequency of the commissioners’ meetings, the gender diversity of the commissioners, and profitability had an insignificant effect on environmental disclosure. The results of this research provide an interesting probability for further discussion and research.
