The Influence of Directors on Waste Disclosure in High-Impact Environmental Sector

Abstract

This study examines the effect of board characteristics on waste disclosure in high-impact environmental sector companies listed on the Indonesia Stock Exchange (IDX) during 2022–2024. The independent variables include board age, board education level, board size, and women directors, while leverage is used as a control variable. Waste disclosure is measured based on the Global Reporting Initiative (GRI) 306 Standards. Using purposive sampling, this study obtained 117 companies with 351 firm-year observations. Panel data regression analysis with the Random Effect Model (REM) was employed to test the hypotheses. The results reveal that board education level and board size have a positive and significant effect on waste disclosure, indicating that boards with higher educational backgrounds and larger memberships tend to encourage greater environmental transparency. Conversely, board age and women directors do not significantly affect waste disclosure. In addition, leverage is found to have no significant effect on waste disclosure. These findings suggest that directors’ educational background and board size are important governance attributes in enhancing waste disclosure practices, while age and gender diversity are not key determinants of waste disclosure among high-impact environmental sector companies. The study contributes to the literature on corporate governance and environmental disclosure by providing evidence from the Indonesian context and supports the relevance of Legitimacy Theory and Resource Dependence Theory in explaining corporate environmental reporting practices.

Keywords:  Waste Disclosure, Board Age, Board Education, Board Size, Board Women