Financial slack, CSR disclosure, and carbon emission disclosure: The moderating role of independent commissioners in Indonesian energy firms

Type of the article: Research Article AbstractClimate change has increasingly pressured companies to enhance their environmental accountability through carbon emission disclosure. The energy sector, as one of the largest contributors to greenhouse gas emissions, plays a critical role in addressing this issue. This study investigates the influence of financial slack and corporate social responsibility (CSR) disclosure on carbon emission disclosure, while also examining the moderating role of independent commissioners. The sample consists of 23 energy companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023, selected through purposive sampling. Using multiple regression analysis with STATA 17, the findings reveal that financial slack has no significant effect on carbon emission disclosure, indicating that the availability of financial resources alone does not drive firms to disclose environmental information. In contrast, CSR disclosure positively and significantly affects carbon emission disclosure, showing that broader CSR practices encourage higher transparency in carbon-related reporting. Furthermore, the moderating role of independent commissioners presents mixed results: they strengthen the relationship between financial slack and carbon emission disclosure, but do not significantly moderate the link between CSR disclosure and carbon emission disclosure. The novelty of this study lies in integrating financial slack, CSR disclosure, and corporate governance mechanisms within the context of carbon disclosure in Indonesia’s energy sector. The results highlight the importance of CSR as a strategic driver of environmental transparency, while demonstrating that governance oversight is crucial in channeling financial flexibility toward sustainable reporting.