Can Profitability Moderate the Board of Directors and Audit Committee's on Environmental Disclosure?

Abstract

This study aims to analyze and obtain empirical evidence regarding the influence of audit committees and boards of directors on environmental disclosure with profitability as a moderating variable. The population consists of companies in the automotive, transportation, and mining sectors listed on the Indonesia Stock Exchange during the period 2021-2024, totaling 111 companies. The sampling method used was purposive sampling, which resulted in 50 companies with a total of 169 units of analysis over four years. WarpPLS 7.0 was used for testing in this study. The results prove that the audit committee has a positive effect on environmental disclosure. The board of directors has no effect on environmental disclosure. Profitability has a significant negative effect in moderating the board of directors on environmental disclosure. The suggestion that can be given is that companies can report environmental disclosure in sustainability reports in more detail and comprehensively based on 32 GRI standards criteria. Further research can add company sectors and other variables outside this research model.