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68 © Lindrianasari, and Yuztitya 2016 | Investigative Studies on Environmental Disclosure
first hypothesis, which states that there is a sig- ately conducts a study to reduce carbon emis-
nificant relationship between the quality of envi- sions and tries to develop more eco-friendly
ronmental disclosure and the reduction of car- products generally has valuable information in
bon emissions after the implementation of gov- its social and environmental responsibility dis-
ernment policy related to the environment. closure. The correlation testing result of the
third hypothesis is presented in Table 3 Panel 1.
Testing the Second Hypothesis
Table 3
Besides the environmental information disclo- Correlation Testing Result
sure, we also observed the expense of research
and development cost for the companies. This Panel 1: Hypothesis 3 ISO26001/14001
research found that there is positive relationship Testing Correlation 0.244***
between research and development cost alloca- R & D Cost Sig. .000
tion related to the reduction of carbon emissions
of a company for the three years of observation, Panel 2: Hypothesis 4 EnviDis
2004, 2007, and 2012, of as high as 4.7%, 9.3%, Testing
and 2.5%, respectively. However, a significant Correlation .108**
relationship was only found in 2007, which was
0.079 when the government issued Law Number R & D Cost Sig. .0.05
40 Year 2007 (see Table 2 Panel 2). In 2004 and
2012, a significant relationship was not found. ***. Correlation is significant at the 0.01 level (1-tailed).
For the relationship between the implementa- **. Correlation is significant at the 0.05 level (1-tailed).
tion of regulations in 2004 and the cost of R&D *. Correlation is significant at the 0.1 level (1-tailed).
that is not significant, it is assumed that other le-
gal devices have not been prepared adequately. There is a positive relationship between the
While the relationship that is not significant was amount of R & D cost relative to the reduction of
found in 2012 is predicted because the regula- energy and similar activity related to interna-
tion issued in that year is only the completion of tional certification. The correlation testing result
the previous laws. shows that there is positive relationship that is
significant between R&D cost and international
The second finding in both of the first hypothe- certification received by the company (see Table
ses of this research indicates that legal devices 3 Panel 2). With the value of Pvalue 0.000 and the
requiring companies to reduce carbon emissions correlation as high as 24.4%, there is enough
are crucial in determining the success of Indone- reason to accept the hypothesis proposed. This is
sia in realizing its commitment to reduce carbon not much different from the explanation in the
emissions. However, this has to be followed by third hypothesis discussion above—that the
monitoring and evaluating continuously to en- company conducting sustainable development
sure that the company keeps running in accord- creates more eco-friendly products and gener-
ance with the direction given by the state. ally has valuable information in its social and en-
vironmental responsibility disclosure. One of the
The hypothesis of this research states that there goals of R&D for a business is to reduce carbon
is a positive relationship between the amount of emissions in such a way that the company re-
R&D cost allocation related to the reduction of ceives international certification as a company
energy and similar activity towards the increase that has fulfilled the criteria for a company that
of environmental disclosure. The correlation is responsible to its society and the environment.
testing result shows the presence of a positive
relationship that is significant between R&D cost The next test is to see whether the capital market
and corporate environmental disclosure. With responds to the company’s actions to reduce car-
the value of Pvalue 0.050 and the correlation as bon emissions. The correlation testing result
high as 10.8%, there is reason to accept the pre- shows the correlation value is 17.9% and the sig-
diction on the relationship between both varia- nificance level is as high as 0.002 (Pvalue < 0,05).
bles in this research. The company that deliber- This result shows that the market reacts on cer-
tification issued by an international agency to a
Science Target Inc. www.sciencetarget.com
