The THE EFFECT OF CARBON EMISSION DISCLOSURE, PROFITABILITY, AND CORPORATE GOVERNANCE ON COST OF DEBT

Abstract

The purpose of this research is to examine and evaluate how corporate governance, profitability, and carbon emission disclosure affect the cost of debt. Financial reports and corporate sustainability reports from the industrial, infrastructure, basic materials, energy, and transportation and logistics sectors listed on the Indonesia Stock Exchange (IDX) for the years 2021–2023 are used as secondary data in this quantitative study. Purposive sampling was used to pick the 62 companies with 186 observation data that make up the research sample. Eviews 13 software is used for panel data regression and descriptive statistical analysis. The findings indicate that debt costs are negatively impacted by corporate governance, as indicated by the percentage of independent boards of commissioners, and carbon emission disclosure. In contrast, the cost of debt is positively impacted by corporate governance and profitability as determined by institutional ownership. These findings provide insights for companies to improve debt cost efficiency by paying attention to the transparency of carbon emission disclosures, profitability, and corporate governance. It is hoped that companies can take advantage of these results to manage risks and achieve business sustainability through more strategic policies.