Climate disclosure and carbon tax: accounting insights on earnings volatility in Indonesian transportation firms

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides empirical evidence of carbon tax as a mediator between climate disclosure and earnings volatility, contributing to accounting and sustainability literature.

🏢実務担当者:Highlights that enhanced disclosure may increase tax exposure, requiring integration of tax consequences into financial planning and risk management.

🏛政策担当者:Suggests that disclosure mandates should consider potential amplification of earnings volatility through carbon tax mechanisms.

Climate risk disclosure has become a key focus in corporate sustainability reporting, but its financial consequences remain underexplored in high-emission industries. In Indonesia's transportation and logistics sector, where dependence on fossil fuels and regulatory volatility is high and significantly impacts the gross domestic product, the relationship between transparency, taxation, and financial performance warrants further study. This study aims to investigate how climate risk disclosure affects earnings volatility, considering carbon tax exposure as a mediating mechanism and company size as a moderating variable. This study utilizes panel data from publicly listed transportation and logistics companies spanning the period from 2022 to 2024. It applies hierarchical linear regression with mediation and moderation techniques. The analysis shows that increased disclosure leads to higher carbon tax exposure, which fully mediates the effect on earnings volatility. Firm size does not significantly moderate this path, suggesting that larger firms are not necessarily more insulated from fiscal risks associated with climate policy. This finding challenges the assumption that transparency inherently reduces uncertainty. While disclosure can enhance a firm's reputation, it also increases its fiscal visibility and vulnerability. The evidence suggests that the tax consequences of disclosure should not be considered incidental but rather an integral part of corporate financial planning. This study contributes to the advancement of tax accounting discourse by repositioning climate disclosure as a fiscal risk factor. The results have important implications for regulatory design, corporate governance, and sustainable transition strategies in carbon-intensive sectors.

• crossref https://doi.org/10.22306/al.v13i2.771first seen 2026-07-01 05:50:59 · last seen 2026-07-01 05:51:35