Environmental Risk Disclosure and Cost of Equity Repository

Environmental Risk Disclosure and Cost of Equity

RIZKY ERIANDANI, 041517147302 and I Made Narsa, - and Andry Irwanto, - (2019) Environmental Risk Disclosure and Cost of Equity. Polish Journal of Management Studies, 19 (2). pp. 124-131. ISSN 2081-7452

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Abstract

Environmental problems are increasingly becoming a concern of various parties. When other studies look more at environmental performance, this study focuses on environmental risk disclosure. The purpose of this study is to empirically test the relationship of environmental risk with the cost of equity. Environmental risk disclosure is measured using content analysis. The cost of equity is calculated using the Capital Assets Pricing Model (CAPM) method. The study sample consisted of 476 companies listed on the Indonesia stock exchange in 2016-2018. The data is processed using SPSS with multiple linear regression methods. Empirical results show that environmental risk disclosure has a positive effect on the cost of equity. The results of this study contribute by expanding the disclosure theory because it empirically proves that investors use environmental risk information.

Item Type:

Article

Uncontrolled Keywords:

Risk; Environmental; Cost of Equity; Investor Reaction; Disclosure; Environmental Performance

Subjects:

G Geography. Anthropology. Recreation > GE Environmental Sciences > GE300-350 Environmental management
H Social Sciences
H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management

Divisions:

04. Fakultas Ekonomi dan Bisnis > Doktoral Ilmu Akuntansi

Creators: