The role of CEO characteristics and ownership structure in carbon emission disclosure: evidence from Indonesian listed firms
Abstract
This study examines the effect of CEO characteristics foreign educational CEO and foreign ownership along with CEO Founder and CEO Age on carbon emission disclosure (CED) among firms listed on the Indonesia Stock Exchange from 2020 to 2023. Grounded in Upper Echelons Theory (UET), the study argues that observable attributes of top executives shape their cognitive perspectives and strategic preferences, thereby influencing environmental disclosure decisions. Using panel regression analysis on 1,623 firm-year observations from annual reports, sustainability reports, and ESGI data, the findings show that foreign educational CEO and CEO age have a positive and significant effect on carbon emission disclosure. In contrast, foreign ownership and CEO founder status do not exhibit significant effects in the main OLS models, while CEO founder shows a negative association in the GLS robustness test. These results suggest that individual CEO attributes play a more decisive role in shaping carbon disclosure practices than ownership structure. This study provides important implications for corporate governance, investors, and policymakers by highlighting the importance of executive characteristics in enhancing environmental transparency in emerging markets.
References
Alfredo Cristiano, S. Y. (2020). The Importance of Gender and Family Manager Education Background To CEOFounder’s Moderated Company Values. 19(02), 107–121.
Atanlogun, S. K., A., E. O., & O., A. Y. (2014). On Comparative Modeling Of Gls And Ols Estimating Techniques. INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH, 3(1), 28–125.
Bai, Xiaoou, K., E. W., Tsang, & Xia., W. (2020). Domestic versus Foreign Listing: Does a CEO’s Educational Experience Matter? Journal of Business Venturing, 35(1), 105906. https://doi.org/10.1016/j.jbusvent.2018.10.004.
Baroroh, Niswah, & Harto, P. (2025). Green Governance and Carbon Emission Transparency : Does Firm Age Matter? Accounting Analysis Journal, 14(7), 80–92. https://doi.org/10.15294/aaj.v14i2.28558.
Batam, U. I., & Batam, K. (2024). HOW CEO NARCISSISM SHAPES FIRM PERFORMANCE OVER TIME : EVIDENCE FROM INDONESIA. 26(2), 323–344.
Bedi, Ankita, & Singh, B. (n.d.-a). Does Ownership Structure Affect Carbon Emission Disclosure? Asian Review of Accounting. https://doi.org/10.1108/ARA-11-2023-0307.
Bedi, Ankita, & Singh, B. (n.d.-b). Reconnoitering the Impact of Corporate Governance on Carbon Emission Disclosure in an Emerging Setting. International Journal of Law and Management. https://doi.org/10.1108/IJLMA-11-2023-0251.
Cai, Chunhua, Geng, Y., & Yang, F. (2024). Senior Executive Characteristics: Impact on ESG Practices and Corporate Valuation Relationship. PLOS ONE, 19(7), 1–22. https://doi.org/10.1371/journal.pone.0303081.
Chow, & Peng, Y. (2024). Is Chair-CEO Generational Difference a Substitute Governance Mechanism to Debt Financing? Asian Journal of Accounting Research, 9(4), 98–378. https://doi.org/10.1108/AJAR-01-2023-0033.
Claudya, Ursula, & Raharja, S. (2023). Board Characteristics and Disclosure of Environmental Sustainability Reports in Indonesia: Moderation Effects of Political Connection. Kinerja, 27(2), 192–215. https://doi.org/10.24002/kinerja.v27i2.6808.
Elsayih, Jibriel, Datt, R., & Hamid., A. (2021). CEO Characteristics: Do They Matter for Carbon Performance? An Empirical Investigation of Australian Firms. Social Responsibility Journal, 17(8), 98–1279. https://doi.org/10.1108/SRJ-04-2020-0130.
Fuadi, Fauzan, Sinatria, N., & Fadhilah, H. (2025). CARBON EMISSION DISCLOSURE: VIEWED FROM THE PERSPECTIVES OF ACCOUNTING, MARKET, AND ENVIRONMENTAL PERFORMANCE IN HIGHLY POLLUTING COMPANIES IN INDONESIA. Jurnal Aplikasi Akuntansi, 10(1), 82–266. https://doi.org/10.29303/jaa.v10i1.699
Haigh, Matthew, & Shapiro, M. A. (2012). Carbon Reporting: Does It Matter? Accounting, Auditing and Accountability Journal, 25(1), 25–105. https://doi.org/doi: 10.1108/09513571211191761.
Hapsoro, Dody, & Falih, Z. N. (2020). The Effect of Firm Size, Profitability, and Liquidity on The Firm Value Moderated by Carbon Emission Disclosure. Journal of Accounting and Investment, 21(2). https://doi.org/10.18196/jai.2102147
Hardiyansah, Mohammad, Agustini, A. T., & Indah Purnamawati. (2021). The Effect of Carbon Emission Disclosure on Firm Value: Environmental Performance and Industrial Type. Journal of Asian Finance, Economics and Business, 8(1), 33–123. https://doi.org/10.13106/jafeb.2021.vol8.no1.123.
Hasan, Arshad, Hussainey, K., & Aly, D. (2022). Determinants of Sustainability Reporting Decision: Evidence from Pakistan. Journal of Sustainable Finance and Investment, 12(1), 37–214. https://doi.org/10.1080/20430795.2021.1964813.
Hidayat, Imam, Ismail, T., Taqi, M., & Yulianto., A. S. (2022). Investigating In Disclosure Of Carbon Emissions: Influencing The Elements Using Panel Data. Jurnal Review Akuntansi Dan Keuangan, 12(3), 32–721. https://doi.org/10.22219/jrak.v12i3.23072.
Ilmiah, J., Ludya, A., & Dewi, S. (2024). The Role of Female Directors and CSR Committees on Corporate Social Responsibility Disclosure. 19(1). https://doi.org/10.24843/JIAB.2024.v19.i01.p04
Kartikasari, Dwi, A., & Laela, S. F. (2023). Dampak Pengungkapan Sustainability Report Terhadap Kinerja: Komparasi Kinerja Pasar Dan Kinerja Akuntansi. Jurnal Akuntansi, Keuangan, Dan Manajemen, 5(1), 15–26. https://doi.org/10.35912/jakman.v5i1.2469.
Luo, Le, Wu, H., & Zhang., C. (2021). CEO Compensation, Incentive Alignment, and Carbon Transparency. Journal of International Accounting Research, 20(2), 32–111. https://doi.org/10.2308/JIAR-2020-032
Majid, A., Jamaliah, Adam, N. C., Rahim, N. A., & Razak, R. (2023). CEO Power, Regulatory Pressures, and Carbon Emissions: An Emerging Market Perspective. Cogent Business & Management, 10(3). https://doi.org/doi: 10.1080/23311975.2023.2276555
Muhammad, Izmar, G., & Aryani, Y. A. (2021). The Impact of Carbon Disclosure on Firm Value with Foreign Ownership as A Moderating Variable. Jurnal Dinamika Akuntansi Dan Bisnis, 8(1), 1–14. https://doi.org/10.24815/jdab.v8i1.17011.
Nursulistyo, E. D., & Aryani, Y. A. (2023). The Disclosure of Carbon Emission in Indonesia : A Systematic Literature Review. 10(1), 1–18.
Oware, Mintah, K., & Awunyo-Vitor, D. (2021). CEO Characteristics and Environmental Disclosure of Listed Firms in an Emerging Economy: Does Sustainability Reporting Format Matter? Business Strategy & Development, 4(4), 399–410. https://doi.org/10.1002/bsd2.166.
Pham, Cuong, D., Do, T. N. A., Doan, T. N., & Pham, T. X. H. N. T. K. Y. (2021). The Impact of Sustainability Practices on Financial Performance: Empirical Evidence from Sweden. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1912526.
Rahim, Syamsuri, Safitra, H., & Aditya Halim Perdana Kusuma Putra. (2024). Sustainability Report and Financial Performance: Evidence from Mining Companies in Indonesia. International Journal of Energy Economics and Policy, 14(1), 85–673. https://doi.org/10.32479/ijeep.14994.
Raquel, A., & Da, P. (2025). CEO POWER CHARACTERISTICS AND ENVIRONMENTAL DISCLOSURE. 1–18.
Rokhmawati, & Andewi. (2021). he Nexus among Green Investment, Foreign Ownership, Export, Greenhouse Gas Emissions, and Competitiveness. Energy Strategy Reviews, 37.
Sailesh, Bhaskar, & Reddy, K. (2024). Analyzing the Impact of Environmental Strategies on Corporate Governance and Long-Term Performance. Journal of Tourism Theory and Research, 10(1), 32–38.
Saka, Chika, & Oshika, T. (2014). Disclosure Effects, Carbon Emissions and Corporate Value. Sustainability Accounting, Management and Policy Journal, 5(1), 22–45. https://doi.org/10.1108/SAMPJ-09-2012-0030.
Shan, George, Y., Tang, Q., & Zhang, J. (2021). The Impact of Managerial Ownership on Carbon Transparency: Australian Evidence. Journal of Cleaner Production. https://doi.org/doi: https://doi.org/10.1016/j.jclepro.2021.128480.
Shen, Huayu, Zheng, S., Adams, J., & Jaggi, B. (2020). The Effect Stakeholders Have on Voluntary Carbon Disclosure within Chinese Business Organizations. Carbon Management, 11(5), 72–455. https://doi.org/10.1080/17583004.2020.1805555.
Silva, Aparecido, S., & Lunkes, R. J. (2017). THE INFLUENCE OF THE UPPER ECHELONS IN THE RETURN ON THE ASSETS OF COMPANIES THAT MAKE UP PART OF THE NON-CYCLICAL CONSUMER GOODS AND SERVICES ECONOMIC SECTOR. https://doi.org/10.17230/ad-minister.31.4.
Singhania, Monica, & Bhan, I. (2024). Firm Ownership Structure and Voluntary Carbon Disclosure: A Systematic Review and Meta-Analysis. Sustainability Accounting, Management and Policy Journal. https://doi.org/10.1108/SAMPJ-08-2023-0613.
Siregar, Anitaria, & Khomsiyah, K. (2023). he Effect of Ceo Characteristics and Carbon Emission Disclosure on Firm Performance With Business Ethics Disclosure As a Moderating Variable. Jurnal Akuntansi Dan Pendidikan, 12(1). https://doi.org/10.25273/jap.v12i1.12177.
Suherman, Suherman, Mahfirah, T. F., Usman, B., Kurniawati, H., & Kurnianti., D. (2023). CEO Characteristics and Firm Performance: Evidence from a Southeast Asian Country. Corporate Governance (Bingley), 23(7), 63–1526. https://doi.org/10.1108/CG-05-2022-0205.
Thams, Yannick, & Rickley, M. (2024). Are Foreign-Born CEOs Held to a Higher Performance Standard? The Role of National Origin in CEO Dismissals. Global Strategy Journal, 14(3), 578–603. https://doi.org/10.1002/gsj.1491.
Wagner, Andreas, & Fischer-Kreer, D. (2024). The Role of CEO Regulatory Focus in Increasing or Reducing Corporate Carbon Emissions. Business Strategy and the Environment, 33(2), 65–1051. https://doi.org/10.1002/bse.3517
Wibowo, Rendi, Suhendro, S., & Amelia, Y. (2022). Analysis of Factors Affecting Carbon Emission Disclosure in Indonesia. Journal Of Accounting Management Business And International Research, 1(1), 1–16.
Wulan, & Fitri., D. (2022). Foreign Directors, Foreign Ownership, and Carbon Emission Disclosure: Evidence from Indonesia Environmentally Sensitive Companies. Review of Management, Accounting, and Business Studies, 3(2), 90–100. https://doi.org/10.38043/revenue.v3i2.4816.
Zhang, Yuyang, & Dong, L. (2023). Foreign Experience of CEO and Corporate Social Responsibility: Evidence from China. Frontiers in Environmental Science, 11. https://doi.org/10.3389/fenvs.2023.1103394.
Atanlogun, S. K., A., E. O., & O., A. Y. (2014). On Comparative Modeling Of Gls And Ols Estimating Techniques. INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH, 3(1), 28–125.
Bai, Xiaoou, K., E. W., Tsang, & Xia., W. (2020). Domestic versus Foreign Listing: Does a CEO’s Educational Experience Matter? Journal of Business Venturing, 35(1), 105906. https://doi.org/10.1016/j.jbusvent.2018.10.004.
Baroroh, Niswah, & Harto, P. (2025). Green Governance and Carbon Emission Transparency : Does Firm Age Matter? Accounting Analysis Journal, 14(7), 80–92. https://doi.org/10.15294/aaj.v14i2.28558.
Batam, U. I., & Batam, K. (2024). HOW CEO NARCISSISM SHAPES FIRM PERFORMANCE OVER TIME : EVIDENCE FROM INDONESIA. 26(2), 323–344.
Bedi, Ankita, & Singh, B. (n.d.-a). Does Ownership Structure Affect Carbon Emission Disclosure? Asian Review of Accounting. https://doi.org/10.1108/ARA-11-2023-0307.
Bedi, Ankita, & Singh, B. (n.d.-b). Reconnoitering the Impact of Corporate Governance on Carbon Emission Disclosure in an Emerging Setting. International Journal of Law and Management. https://doi.org/10.1108/IJLMA-11-2023-0251.
Cai, Chunhua, Geng, Y., & Yang, F. (2024). Senior Executive Characteristics: Impact on ESG Practices and Corporate Valuation Relationship. PLOS ONE, 19(7), 1–22. https://doi.org/10.1371/journal.pone.0303081.
Chow, & Peng, Y. (2024). Is Chair-CEO Generational Difference a Substitute Governance Mechanism to Debt Financing? Asian Journal of Accounting Research, 9(4), 98–378. https://doi.org/10.1108/AJAR-01-2023-0033.
Claudya, Ursula, & Raharja, S. (2023). Board Characteristics and Disclosure of Environmental Sustainability Reports in Indonesia: Moderation Effects of Political Connection. Kinerja, 27(2), 192–215. https://doi.org/10.24002/kinerja.v27i2.6808.
Elsayih, Jibriel, Datt, R., & Hamid., A. (2021). CEO Characteristics: Do They Matter for Carbon Performance? An Empirical Investigation of Australian Firms. Social Responsibility Journal, 17(8), 98–1279. https://doi.org/10.1108/SRJ-04-2020-0130.
Fuadi, Fauzan, Sinatria, N., & Fadhilah, H. (2025). CARBON EMISSION DISCLOSURE: VIEWED FROM THE PERSPECTIVES OF ACCOUNTING, MARKET, AND ENVIRONMENTAL PERFORMANCE IN HIGHLY POLLUTING COMPANIES IN INDONESIA. Jurnal Aplikasi Akuntansi, 10(1), 82–266. https://doi.org/10.29303/jaa.v10i1.699
Haigh, Matthew, & Shapiro, M. A. (2012). Carbon Reporting: Does It Matter? Accounting, Auditing and Accountability Journal, 25(1), 25–105. https://doi.org/doi: 10.1108/09513571211191761.
Hapsoro, Dody, & Falih, Z. N. (2020). The Effect of Firm Size, Profitability, and Liquidity on The Firm Value Moderated by Carbon Emission Disclosure. Journal of Accounting and Investment, 21(2). https://doi.org/10.18196/jai.2102147
Hardiyansah, Mohammad, Agustini, A. T., & Indah Purnamawati. (2021). The Effect of Carbon Emission Disclosure on Firm Value: Environmental Performance and Industrial Type. Journal of Asian Finance, Economics and Business, 8(1), 33–123. https://doi.org/10.13106/jafeb.2021.vol8.no1.123.
Hasan, Arshad, Hussainey, K., & Aly, D. (2022). Determinants of Sustainability Reporting Decision: Evidence from Pakistan. Journal of Sustainable Finance and Investment, 12(1), 37–214. https://doi.org/10.1080/20430795.2021.1964813.
Hidayat, Imam, Ismail, T., Taqi, M., & Yulianto., A. S. (2022). Investigating In Disclosure Of Carbon Emissions: Influencing The Elements Using Panel Data. Jurnal Review Akuntansi Dan Keuangan, 12(3), 32–721. https://doi.org/10.22219/jrak.v12i3.23072.
Ilmiah, J., Ludya, A., & Dewi, S. (2024). The Role of Female Directors and CSR Committees on Corporate Social Responsibility Disclosure. 19(1). https://doi.org/10.24843/JIAB.2024.v19.i01.p04
Kartikasari, Dwi, A., & Laela, S. F. (2023). Dampak Pengungkapan Sustainability Report Terhadap Kinerja: Komparasi Kinerja Pasar Dan Kinerja Akuntansi. Jurnal Akuntansi, Keuangan, Dan Manajemen, 5(1), 15–26. https://doi.org/10.35912/jakman.v5i1.2469.
Luo, Le, Wu, H., & Zhang., C. (2021). CEO Compensation, Incentive Alignment, and Carbon Transparency. Journal of International Accounting Research, 20(2), 32–111. https://doi.org/10.2308/JIAR-2020-032
Majid, A., Jamaliah, Adam, N. C., Rahim, N. A., & Razak, R. (2023). CEO Power, Regulatory Pressures, and Carbon Emissions: An Emerging Market Perspective. Cogent Business & Management, 10(3). https://doi.org/doi: 10.1080/23311975.2023.2276555
Muhammad, Izmar, G., & Aryani, Y. A. (2021). The Impact of Carbon Disclosure on Firm Value with Foreign Ownership as A Moderating Variable. Jurnal Dinamika Akuntansi Dan Bisnis, 8(1), 1–14. https://doi.org/10.24815/jdab.v8i1.17011.
Nursulistyo, E. D., & Aryani, Y. A. (2023). The Disclosure of Carbon Emission in Indonesia : A Systematic Literature Review. 10(1), 1–18.
Oware, Mintah, K., & Awunyo-Vitor, D. (2021). CEO Characteristics and Environmental Disclosure of Listed Firms in an Emerging Economy: Does Sustainability Reporting Format Matter? Business Strategy & Development, 4(4), 399–410. https://doi.org/10.1002/bsd2.166.
Pham, Cuong, D., Do, T. N. A., Doan, T. N., & Pham, T. X. H. N. T. K. Y. (2021). The Impact of Sustainability Practices on Financial Performance: Empirical Evidence from Sweden. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1912526.
Rahim, Syamsuri, Safitra, H., & Aditya Halim Perdana Kusuma Putra. (2024). Sustainability Report and Financial Performance: Evidence from Mining Companies in Indonesia. International Journal of Energy Economics and Policy, 14(1), 85–673. https://doi.org/10.32479/ijeep.14994.
Raquel, A., & Da, P. (2025). CEO POWER CHARACTERISTICS AND ENVIRONMENTAL DISCLOSURE. 1–18.
Rokhmawati, & Andewi. (2021). he Nexus among Green Investment, Foreign Ownership, Export, Greenhouse Gas Emissions, and Competitiveness. Energy Strategy Reviews, 37.
Sailesh, Bhaskar, & Reddy, K. (2024). Analyzing the Impact of Environmental Strategies on Corporate Governance and Long-Term Performance. Journal of Tourism Theory and Research, 10(1), 32–38.
Saka, Chika, & Oshika, T. (2014). Disclosure Effects, Carbon Emissions and Corporate Value. Sustainability Accounting, Management and Policy Journal, 5(1), 22–45. https://doi.org/10.1108/SAMPJ-09-2012-0030.
Shan, George, Y., Tang, Q., & Zhang, J. (2021). The Impact of Managerial Ownership on Carbon Transparency: Australian Evidence. Journal of Cleaner Production. https://doi.org/doi: https://doi.org/10.1016/j.jclepro.2021.128480.
Shen, Huayu, Zheng, S., Adams, J., & Jaggi, B. (2020). The Effect Stakeholders Have on Voluntary Carbon Disclosure within Chinese Business Organizations. Carbon Management, 11(5), 72–455. https://doi.org/10.1080/17583004.2020.1805555.
Silva, Aparecido, S., & Lunkes, R. J. (2017). THE INFLUENCE OF THE UPPER ECHELONS IN THE RETURN ON THE ASSETS OF COMPANIES THAT MAKE UP PART OF THE NON-CYCLICAL CONSUMER GOODS AND SERVICES ECONOMIC SECTOR. https://doi.org/10.17230/ad-minister.31.4.
Singhania, Monica, & Bhan, I. (2024). Firm Ownership Structure and Voluntary Carbon Disclosure: A Systematic Review and Meta-Analysis. Sustainability Accounting, Management and Policy Journal. https://doi.org/10.1108/SAMPJ-08-2023-0613.
Siregar, Anitaria, & Khomsiyah, K. (2023). he Effect of Ceo Characteristics and Carbon Emission Disclosure on Firm Performance With Business Ethics Disclosure As a Moderating Variable. Jurnal Akuntansi Dan Pendidikan, 12(1). https://doi.org/10.25273/jap.v12i1.12177.
Suherman, Suherman, Mahfirah, T. F., Usman, B., Kurniawati, H., & Kurnianti., D. (2023). CEO Characteristics and Firm Performance: Evidence from a Southeast Asian Country. Corporate Governance (Bingley), 23(7), 63–1526. https://doi.org/10.1108/CG-05-2022-0205.
Thams, Yannick, & Rickley, M. (2024). Are Foreign-Born CEOs Held to a Higher Performance Standard? The Role of National Origin in CEO Dismissals. Global Strategy Journal, 14(3), 578–603. https://doi.org/10.1002/gsj.1491.
Wagner, Andreas, & Fischer-Kreer, D. (2024). The Role of CEO Regulatory Focus in Increasing or Reducing Corporate Carbon Emissions. Business Strategy and the Environment, 33(2), 65–1051. https://doi.org/10.1002/bse.3517
Wibowo, Rendi, Suhendro, S., & Amelia, Y. (2022). Analysis of Factors Affecting Carbon Emission Disclosure in Indonesia. Journal Of Accounting Management Business And International Research, 1(1), 1–16.
Wulan, & Fitri., D. (2022). Foreign Directors, Foreign Ownership, and Carbon Emission Disclosure: Evidence from Indonesia Environmentally Sensitive Companies. Review of Management, Accounting, and Business Studies, 3(2), 90–100. https://doi.org/10.38043/revenue.v3i2.4816.
Zhang, Yuyang, & Dong, L. (2023). Foreign Experience of CEO and Corporate Social Responsibility: Evidence from China. Frontiers in Environmental Science, 11. https://doi.org/10.3389/fenvs.2023.1103394.
Published
2025-12-31
How to Cite
ANNAMELLIADYLA, Jaenette et al.
The role of CEO characteristics and ownership structure in carbon emission disclosure: evidence from Indonesian listed firms.
SAR (Soedirman Accounting Review) : Journal of Accounting and Business, [S.l.], v. 10, n. 2, p. 143-162, dec. 2025.
ISSN 2598-0718.
Available at: <https://jos.unsoed.ac.id/index.php/sar/article/view/18816>. Date accessed: 16 jan. 2026.
doi: https://doi.org/10.32424/1.sar.2025.10.2.18816.
Section
Articles
1.png)
.png)
.jpg)
