Mass Media Pressure: Can it Suppress the Disclosure of Environmental Responsibility of Manufacturing Companies in Indonesia

Abstract

This study aims to analyse the multi-stakeholder governance mechanism that influences the level of environmental responsibility disclosure of manufacturing companies in Indonesia. The research was conducted on 174 units of analysis. The research data is from panel data from annual reports, sustainability reports, and online news from 2021 to 2023. Environmental responsibility reporting is the dependent variable in this study, with the variables of majority shareholders and gender diversification as independent variables. Mass media scrutiny is presented as a moderating variable in the research model. The analytical tools used are descriptive analysis and moderation regression analysis. The results of hypothesis testing show that the majority shareholder pressure has no effect on the level of environmental responsibility, either directly or moderated by mass media supervision. However, gender diversification is proven to positively affect the level of disclosure of environmental responsibility, both directly and by being strengthened by mass media pressure. Suggestions for further research are to add other internal and external governance mechanisms, such as educational background and experience in accounting for directors and commissioners, and supervision from financial analysts. And distinguish the effect of negative and positive news in the research model.