Corporate Governance and Strategic Disclosure Practice: Evidence from Indonesia

Agung Nur Probohudono; Krisnadi Permana; Dian Perwitasari

doi:10.29313/ka.v24i1.6097

Corporate Governance and Strategic Disclosure Practice: Evidence from Indonesia

Agung Nur Probohudono, Krisnadi Permana, Dian Perwitasari

Abstract

This research aims to find out the extent to which corporate governance affects the strategic disclosure level in Indonesian manufacturing companies. This study employs managerial ownership, institutional ownership, foreign ownership, independent commissioner composition, and number of commissioner board meetings as independent variables, and leverage and profitability as control variables. The sample companies in this research consists of the manufacturing ones releasing annual report in 2013. The measurement of strategic disclosure level in this research employs Eng and Mak's strategic disclosure index (2003) and integrated into Ho and Taylor's index (2013). The sample of the research consists of 71 Indonesian manufacturing companies during 2013. The sampling technique uses purposive sampling one. The result of the research shows that managerial ownership, institutional ownership, and commissioner board composition affects significantly positively the strategic disclosure. The function of the control variable in this study is as the controller of all variables; in the presence of the control variable, the data estimation result shows that leverage and profitability do not affect significantly the strategic disclosure in Indonesian manufacturing companies.

Keywords

Agency theory, corporate governance, manufacturing company, strategic disclosure

Full Text:

PDF

References

Akhtaruddin, M., and H. Haron. 2010. Board ownership, audit committees effectiveness, and corporate voluntary disclosures. Asian Review of Accounting 18(3): 45-259.

Eng, L. L. and Y. T. Mak. 2003. Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy 22: 325-345.

Ghozali, I. 2011. Aplikasi Analisis Multivariate dengan Program IBM SPSS 19. Badan Penerbit Universitas Diponegoro. Semarang

Jensen, M. C., and W. H Meckling. 1976. The theory of a firm: managerial behavior, agency costs, and ownership structure. Journal of Financial Economics 3(4): 305-360.

Ho, P. L., and G. Taylor. 2013. Corporate governance and different types of voluntary disclosure evidence from Malaysian listed firms. Pacific Accounting Review 25(1): 4-29.

Ismail, T. H., and N. M. El-Shaib. 2012. Impact of market and organizational determinants on voluntary disclosure in Egyptian companies. Meditari Accountancy Research 20(2): 113-33.

Ntim, C. G., K. K. Opong, and D. A. Thomas. 2012. Voluntary corporate governance disclosures by post Apartheid South African corporations. Journal of Applied Accounting Research 13(2):122-144.

Probohudono, A. N., G. Tower, and R. Rusmin. 2012. Risk disclosure during the global financial crisis. Social Responsibility Journal. Vol. 9(1): 124-136.

Qu, W., P. Leung, and B. Cooper. 2013. A study of voluntary disclosure of listed Chinese firms a stakeholder perspective. Managerial Auditing Journal 28(3): 261-94.

Said, R., Y. Zainuddin, and H. Haron. 2009. The relationship between corporate social responsibility disclosure and corporate governance characteristics in Malaysian public listed companies. Social Responsibility Journal 5(2): 212-26.

Santema, S., M. H. J. V. D. Rijt, and A. V. Oijen. 2005. Strategy disclosure in annual report across Europe: a study on differences between on five countries. Europe Business Review 17(4): 352-366.

Xie, B., I. Davidson, N. Wallace, and P. Dadalt. 2003. Earnings management and corporate governance: The role of the board and the audit committee. Journal of Corporate Finance 9(3): 295-316.

DOI: https://doi.org/10.29313/ka.v24i1.6097

Refbacks

There are currently no refbacks.

Indexed by:

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

EISSN 2581-074X | ISSN 1693-0614

Username
Password
Remember me