Do Indonesian Carbon‐Sensitive Companies Use Carbon Disclosure to Maintain Good Relationships With Primary Stakeholders?

ABSTRACT This research examines the connection between primary stakeholders and the level of carbon disclosure in Indonesia's carbon‐sensitive industry. The study utilizes data from 266 carbon‐sensitive companies listed on the Indonesia Stock Exchange between 2018 and 2022, analyzed through panel regression techniques. The results indicate that institutional ownership has a significant negative impact on carbon disclosure. Conversely, a higher proportion of shares held by foreign investors and the largest shareholder is associated with increased carbon disclosure. Meanwhile, creditors do not play a significant role in influencing carbon disclosure. These findings provide valuable insights for company managers in understanding how primary stakeholders affect disclosure practices, which may extend beyond just carbon‐related information.