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

Abstract

The purpose of this study is to compare perceptions of managers in Indonesia concerning envi
ronmental accounting disclosure with actual environmental accounting disclosure. The value of 
this research is making an original contribution to develop instrument in exploring managerial 
perception of environmental accounting disclosure. Samples for this study are corporate mana
gerial from listing companies in the Jakarta Stock Exchange and also annual report companies. 
This research has developed strategies to measure managerial perceptions of environmental 
accounting disclosure. Mail surveys design used on this study. Analysis used for testing rela
tionship between managerial perception and environmental accounting disclosure is simple 
regression test. The dependent sample variable data is the latest data published in Jakarta Stock 
Exchange. This study finds a positive correlation between managerial perception of environ
mental accounting disclosure and actual environmental accounting disclosure. This result 
shows that disclosure quality and several legal sanctions in environmental aspects could be 
empowerment of regulator pasties to force managers to maintain their pollution and reported 
their activity also in their annual report. In hence, legitimacy theory is used as an explanation 
for corporate reactions to threats to its legitimacy vis-á-vis the social contract, while legitimacy 
theory infers motivation to incorporate environmental accounting disclosure