The Role of Environmental Cost Disclosure in Enhancing Financial Performance and Corporate Sustainability
DOI:
https://doi.org/10.59890/ijaeam.v4i5.4Keywords:
Environmental Cost Disclosure, Financial Performance, Corporate Sustainability, Manufacturing Companies, Indonesia StockAbstract
Growing attention to environmental issues encourages companies to enhance transparency through environmental cost disclosure as part of sustainability strategies and financial performance management. This study aims to examine the role of environmental cost disclosure in improving financial performance and corporate sustainability among manufacturing companies listed on the Indonesia Stock Exchange. The study employs a quantitative approach using secondary data obtained from annual reports and sustainability reports during the 2020–2024 period. The sample is selected through purposive sampling, and the data are analyzed using content analysis and panel data regression. The results indicate that environmental cost disclosure has a positive and significant effect with improved financial performance and corporate sustainability. This study contributes to strengthening the importance of environmental transparency as a strategic approach to achieving sustainable corporate management
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