SOCIAL SCIENCES & HUMANITIES Corporate Governance Disclosure in Indonesia (original) (raw)
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International Journal of Academic Research in Accounting, Finance and Management Sciences, 2018
The purpose of this study is to discuss the role of the company's 100 compass indexed in developing the best practices of corporate governance on voluntary disclosure. Based on the annual financial statements of 70 companies listed on the Indonesia Stock Exchange (IDX) for 2015-2016, the results show that the average voluntary disclosure in the company's annual report of 100 to 2015 composite protected futures is 76.73%. This value indicates that the company indexed 100 compasses on average can meet 21 items of 28 voluntary disclosure items. The percentage of unsatisfactory disclosure implies that there are several factors that may prevent the company from disclosing some sensitive information. The results of the study show that institutional ownership has a positive effect on voluntary disclosure, while for the proportion of boards of commissioners with accounting or business skills, and the proportion of audit committees with accounting or business skills has a significant negative effect on voluntary disclosure and other variables, ie the proportion of independent board of commissioners, meetings of the board of commissioners, the frequency of audit committee meetings and the proportion of independent audit committees have no effect on voluntary disclosure.
2000
This paper, which is divided into five parts, describes the current status of corporate governance in Indonesia. The first part, The State of Corporate Governance in Indonesia, discusses the ownership structure in Indonesia, which is largely dominated by families or a few shareholders. It also discusses the two-board system in the country and the ineffectiveness of such a system in many of the boards. The rest of part I describes the role of audit committees in Indonesia, unfair practices found in business community, lack of transparency and disclosure and lack of risk management practices. The second part is about efforts being conducted to introduce and implement corporate governance in Indonesia. Such efforts include, developing a national strategy for corporate governance reform, conducting educational events on corporate governance for the public, conducting pilot projects to implement corporate governance principles in the industries, carrying out regulatory reform within the capital market, establishing the Forum of Corporate Governance in Indonesia, and managing technical assistance from the international community. Part three of the paper deals with Indonesian accounting standards, in particular the history of accounting standards in Indonesia, the standards setting process, the initiatives to harmonize with the international standards, and challenges encountered in implementing the standards. Part four addresses the auditing standards and the audit profession in Indonesia. It starts with the historical background of the standards and proceeds to the harmonization process, the challenges found in implementing the standards, and the mechanism that exists within the profession to ensure that auditors reach a certain level of competence and fulfill their professional responsibility. Part five discusses disclosure practices in Indonesia. It elaborates the legal foundation of disclosures in Indonesia, and some disclosure items such as capital structures, ownership of the companies, voting rights, information on the boards, related party transactions, risks, mergers and acquisitions and environment reporting
European Journal of Business and Management Research
This study aims to analyze corporate governance towards the publication of financial statements on the Indonesia Stock Exchange. The end of the financial year until the date of publication of the financial statements as a period of reporting time lag. Ownership composition, characteristics of directors and commissioners, and audit committee as a proxy for corporate governance. Proportional strata method for selecting a sample of 775 annual reports, for the period 2013-2014 from nine industry groups. Multiple regression analysis techniques, using control variables of size, performance, auditor quality, and type of industry. The results showed that ownership, board meetings, and audit committee meetings, as well as the number of commissioners and audit committees, had a significant effect on the issuance of issuers' audit reports. While the independence of directors and commissioners does not affect.spacing.
2015
This study examines the impact of ownership, corporate governance and mandatory tax disclosure on voluntary financial disclosure in Indonesia using 102 Indonesian listed companies in the period of 2009 to 2012, a total sample is 408 annual reports. The results show that proportion of independent director, managerial ownership, institutional ownership, foreign ownership and mandatory tax disclosure are assosiated with voluntary financial disclosure. Analysis reveals a moderate level of 59,90% score of disclosure in the period of 2009 to 2012 in Indonesian listed companies. Statistical analysis shows that the lowest disclosure score is in 2009 with the “Projected Information” as the subcategory of the disclosure. The highest voluntary financial disclosure is in 2012 with the “stock price information” as the subcategory of the disclosure. This study implies that ownership, corporate governance and mandatory tax disclosure are the key factors to explain communicating companies’ voluntar...
Corporate Governance and Corporate Transparency of Indonesian Listed Companies
International Journal of Approximate Reasoning, 2012
During Asian financial crisis in 1997, some Indonesian listed companies suffered by decreasing firm value and poor performance. The dominant factors that contributed to Asian financial crisis are poor corporate governance and a lack of transparency. As an attempt to improve corporate governance practice of Indonesian corporations, some reforms have been conducted by Indonesian regulatory authorities such as the code of good corporate governance with the objective to maximize shareholder and firm value by enhancing transparency, accountability, reliability, responsibility, and fairness. This study examined the relationship between those corporate governance attributes and corporate transparency of Indonesian listed companies by exploring the purposive sampling method, 88 companies were selected as the sample of this study. The finding of this study showed that board size and proportion of independent member on board positively affect corporate transparency. It means the corporate tra...
The purpose of this study is to investigate whether the extent of company disclosure in Indonesia is affected by external factors in addition to internal factors. Many previous studies relating to disclosure conducted in Indonesia only focused on the internal factors, e.g. corporate governance, ownership structure (blockholder) and total assets. Further, I address the possibility of non-linear relationship between ownership structure on company disclosure and also the impact of competition as an external factor to company disclosure level. This study employs Botosan Index and Herfindahl Index (HI) as a proxy for company disclosure and competition. The result shows that corporate governance practice, competition, and size have a positive influence on company disclosure leves.. When blockholder ownership is divided into three groups: low ownership (less than or equal 20%), medium ownership (between 20.1% and 50%, and high ownership (greater than 50%), I find that companies with medium blockholder ownership have a lower disclosure level than low ownership, while companies with high ownership have a higher disclosure level. Therefore, the existence of blockholder ownership ranging between 20.1% until 50% tends to yield the alignment effect whereas blockholder ownership greater than 50% tends to yield the entrenchment effect. Finally, the result also shows that leverage does not significantly impact on company disclosure.
Due to their different characteristics, banks are expected to report the features of their corporate governance in the corporate report. This paper is aimed to explore disclosure on corporate governance mechanisms in annual reports of Islamic commercial banks in Indonesia. Corporate governance mechanisms addressed in this study include the Shariah Supervisory Board, the Board of Commissioners, the Board of Directors, board committees, internal control and external audit, and risk management. Employing a sample comprising seven Islamic commercial banks in Indonesia, the present study constructs the so-called Corporate Governance Disclosure Index (CGDI) to score the banks’ disclosure level. It is revealed that Bank Muamalat and Bank Syariah Mandiri, the county’s two largest and oldest Islamic commercial banks, score higher than their peers. Disclosure of the sample banks on some dimensions, such as board members and risk management, is found to be strong. On the other hand, disclosure on internal control and board committees tends to be weak. The result of this study may have some important implications for the enhancement of corporate governance disclosure of Islamic banks, thereby wider acceptance and enhanced reputation could be gained.
Jurnal Pengurusan
Lack of effective corporate governance mechanism and disclosure transparency frameworks have been partly blamed for the 1997-1999 East Asia economic crises. Consequently, Indonesia, together with many countries across the globe have been actively reviewing and improving their corporate governance and transparency mechanisms. Theoretically, corporate governance mechanism is designed to monitor and evaluate decisions made by managers in the management of a company to reduce agency cost and information asymmetry between the shareholders and the management. The main objective of the study is to examine the effect of corporate governance mechanism on the level of voluntary disclosure in Indonesia, a country that has adopted a two-tier board system. The two-tier board system is considered a better system compared to one tier board system since all members of the board are non-executives. Therefore, the board members are more independent and objective in supervising and monitoring the performance of executive managers. This study investigates four corporate governance variables which are expected to influence the level of voluntary disclosure; (1) composition of independent members of Board of Commissioners (BOC), (2) composition of family members on the BOC, (3) audit quality, and (4) managerial ownership. The sample consists of companies listed on Bursa Saham Indonesia for the year ended 2008. The influence of corporate governance on the level of voluntary disclosure is analyzed using multiple regression method. As expected, the results show that the compositions of independent BOC and auditor's quality have a positive and significant relationship with the level of voluntary disclosure. Meanwhile, the composition of family members on the BOC has negatively influenced the disclosure. The results suggest that the corporate governance structure in a two-tier board system, specifically in Indonesia, is not significantly different from a one tier board system in influencing the level of voluntary disclosure.
Journal of World Conference (JWC), 2019
The research objective was to analyze the influence of corporate governance and performance, as well as the publication of financial statements as the moderation of company value. Institutional ownership variables, number of commissioners, number of directors, and number of audit committees and independent commissioners as corporate governance. Return on asset variables as performance, and audit delay as the publication of financial statements, and Tobin's Q as a company value. The research objects were 70 public companies on the Indonesia Stock Exchange, with a sample of 122 observations of financial statements from 2013-2017. The results showed that the number of commissioners, audit committees and return on assets had a positive effect on firm value. Publication of financial statements affects the value of the company, and moderates the effect of financial performance on firm value. Whereas institutional ownership, the number of directors and independent commissioners does no...
International Journal of Academic Research in Business and Social Sciences, 2020
This study aims to examine the influence of corporate governance mechanisms to transparency. Corporate governance mechanisms examined in this study include internal systems including from commissioners, and managerial ownership. Foreign ownership, debt financing, quality audits and company size, firm age as control variables. The population of this research is manufacturing companies listed in the Indonesia Stock Exchange period 2015-2018. The research sample is determined by the purposive sampling method with a total sample of 103 annual reports. This study data analysis uses Structural Equation Modeling-Partial Least Square (PLS-SEM).The results showed: the internal governance, debt financing, quality audit, and the size of the company have a significant effect on transparency; while foreign ownership does not affect transparency. The size of the company can be the control variable of transparency, and the age of the company cannot be the control variable to transparency