The Effect of Corporate Governance on Environmental Disclosure of Indonesia Listed Firms

This study aims to examine the effect of corporate governance on the extent of environmental disclosure of firms listed on the Indonesia Stock Exchange (IDX). We measured corporate governance using the level of of board of commissioners and audit committee effectiveness as well as family ownership. We have total samples of 222 companies listed on the Indonesia Stock Exchange during the period of 2008 to 2012, with total observations are 1.110 firm-years. The results of this study found that the average level of environmental disclosure was 3,38 % which show that the level of environmental disclosure was still relatively low which may be due to there are no provisions regarding what should be disclosed related to environmental disclosure. We find that the effectiveness of the board of commissioners and the effectiveness of the audit committee has a positive and significant effect on environmental disclosure, while family ownership has a negative and significant effect on environmental disclosure.