ESG Transparency, Carbon Accounting, And Equity Cost: Financial Statement Integrity Moderation

Amanda Berneta Batulangi (Department of Economic and Business, Tanjungpura University, Pontianak)
Fera Damayanti (Department of Economic and Business, Tanjungpura University, Pontianak)
Juanda Astarani (Department of Economic and Business, Tanjungpura University, Pontianak)

Jurnal Akuntansi
Vol. 30 No. 2 (2026): May-August 2026

This study examines the effect of Environmental, Social, and Governance (ESG) disclosure and carbon accounting on the cost of equity, while analyzing the moderating role of financial statement integrity. Driven by increasing waste pollution and carbon emissions within the consumer non-cyclical sector, this study examines the importance of non-financial transparency. Employing a quantitative associative approach, it utilizes a sample of 33 companies (132 observations) listed on the Indonesia Stock Exchange during the 2022 to 2025 period. Data were analyzed using panel data regression with the Fixed Effect Model (FEM) and Moderated Regression Analysis (MRA). The results indicate that neither ESG disclosure nor carbon accounting significantly affects the cost of equity. Besides that, financial statement integrity fails to moderate these relationship. Conversely, firm size exerts a significant negative effect on the cost of equity. These suggest that the Indonesian capital market remains short-term oriented, where investors prioritize asset scale over sustainability signals.