Manager’s Perception of the Importance of Environmental Accounting and its Effect on the Quality of Corporate Environmental Accounting Disclosures: Case from Indonesia

Abstract

The purpose of this study is to compare perceptions of managers in Indonesia concerning environmentalaccounting disclosure with actual environmental accounting disclosure. The value ofthis research is making an original contribution to develop instrument in exploring managerialperception of environmental accounting disclosure. Samples for this study are corporate managerialfrom listing companies in the Jakarta Stock Exchange and also annual report companies.This research has developed strategies to measure managerial perceptions of environmentalaccounting disclosure. Mail surveys design used on this study. Analysis used for testing relationshipbetween managerial perception and environmental accounting disclosure is simpleregression test. The dependent sample variable data is the latest data published in Jakarta StockExchange. This study finds a positive correlation between managerial perception of environmentalaccounting disclosure and actual environmental accounting disclosure. This resultshows that disclosure quality and several legal sanctions in environmental aspects could beempowerment of regulator pasties to force managers to maintain their pollution and reportedtheir activity also in their annual report. In hence, legitimacy theory is used as an explanationfor corporate reactions to threats to its legitimacy vis-á-vis the social contract, while legitimacytheory infers motivation to incorporate environmental accounting disclosure. Copyright © www.iiste.org