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66 © Lindrianasari, and Yuztitya 2016 | Investigative Studies on Environmental Disclosure
Fisher-Vanden and Wing investigated the cost of annual report of the company and government
research and development (R&D) in companies policies related to social and environmental re-
in developing countries, especially China. They sponsibility. This research explores investiga-
found an opposite relationship between R&D tions on the company in the years around policy
and the use of energy and emissions. In other implementation. The observation is focused on
words, this study found that the companies that the action of the company in implementing the
spent more on R&D (related to the global warm- content of the policy issued by government.
ing issue) produced products that were more
qualified because they were produced by eco- For the first, second, and third hypotheses (H1,
friendly production methods. Products pro- H2 dan H3), the testing is done by using correla-
duced by reducing energy and fossil fuel com- tion test. The testing of H1 and H2 is aimed to
bustion would eventually reduce carbon emis- show the presence of obedience relationship of
sions in the air. The presence of balance between each company when government policy related
the increase of R&D cost and the decrease of en- to social and environmental responsibility is im-
ergy use eventually gets the advantage of eco- plemented. Meanwhile, the testing of the third
friendly products. hypothesis is meant for HED, which is hard envi-
ronmental disclosure, a disclosure on environ-
This study will analyze whether the increase of mental quality on the reduction of carbon emis-
R&D cost in year t will affect environmental dis- sions and/or the success of a company in obtain-
closure in an involved company. This study will ing international certification related to corpo-
analyze corporate management disclosure and rate social responsibility (ISO26001 and ISO
search records on financial reports on R&D cost 14001).
allocation. The research of Kennedy (2010)
found that corporate obedience to environmen- 4. Study and Discussion
tal regulation can improve the selling strategy of
a company. They called it community-based so- The sample used for this research is all manufac-
cial marketing techniques. The next hypotheses turing companies in the third digit, which is es-
formulated based on the discussion above are pecially for companies in the consumer goods in-
the following: dustry sector listed on the Indonesian Stock In-
dex. Until October 2015, the number of compa-
H3: There is a positive relationship between the nies in the goods and consumer industry sector
amount of R&D cost allocation related to the re- was 40 companies. The final total for the re-
duction of energy and similar activities related to search sample is 246 companies. The years of the
the level of environmental disclosure. observation period used in this research was
2001-2013 (13 years). This research uses sec-
H4: There is a positive relationship between the ondary data and archives, which are the annual
amount of R&D cost allocation related to the re- reports issued by the company and government
duction of energy and similar activities related to policy related to social and environmental re-
international certification. sponsibility. This research is also used to inves-
tigate the company in the years around the pol-
3. Research Methodology icy implementation. The observation focused on
the actions of the company in implementing con-
The sample used for this research is all manufac- tent of the policy issued by government related
turing companies listed on the Indonesian Stock to social and environmental issues. Table 1 pre-
Index. The observation period used in this re- sents descriptive statistics for each research var-
search is 2001-2013 (13 years). This research iable.
uses secondary data with archives, which is the
Science Target Inc. www.sciencetarget.com
