The low environmental performance is a challenge for companies in Indonesia, especially companies in the food and beverage subsector that produce more plastic waste than other sectors. The purpose of this study is to prove the moderating effect of institutional ownership on the influence of firm activities on environmental disclosure. Firm activities are measured by asset turnover, sales growth, and gross profit margin. Based on 107 data points from 35 firms in the food and beverage subsector, we report that institutional ownership strengthens the influence of asset turnover and gross profit margin on environmental performance. Institutional ownership does not enhance the impact of sales growth on environmental performance. The results were robust, as seen by other research model test designs and by comparing test results without looking at the moderating role of institutional ownership. We also recommend increasing government investment to increase ownership of the company. Managers should improve environmental performance to support the company's long-term operations.
Mukhibad et al. (Fri,) studied this question.