An Examination of Voluntary Disclosure, Independent Board, Independent Audit Committee and Institutional Ownership: Firm Size as a Moderator (original) (raw)

An Examination of Voluntary Disclosure, Independent Board, Independent Audit Committee and Institutional Ownership

Indian-Pacific Journal of Accounting and Finance, 2019

This study examined the interaction effect of firm size on the impact of the independent board, independent audit committee, institutional ownership and voluntary disclosure. The study also explored the direct impact on the association between firm size, independent board, independent audit committee, institutional ownership and voluntary disclosure. Data collected from the annual report of banking companies listed on the Indonesia Stock Exchange throughout the year of an observational study. Hypotheses developed are tested with the partial least square – structural equation modelling (PLS-SEM) methodology, and the results subsequently interpreted. The results of the study revealed a positive and significant relationship between the independent board, independent audit committee, institutional ownership and firm size on voluntary disclosure in the Indonesia Stock Exchange listed banking companies. It also found that firm size, as a moderating variable, affects institutional ownershi...

Risk Disclosure in Indonesian Banking: The Role of Board of Directors and Institutional Ownership

Jurnal Ekonomi dan Bisnis Digital

This study aims to examine risk disclosure by considering the influence of board tenure, gender composition of female board of directors, and institutional ownership. This study used a purposive sampling method at commercial banks registered with OJK in a total of 205 samples with 41 banking companies during the 2017-2021 period. To test the research hypothesis used panel data regression model analysis. The analysis techniques used in this study were descriptive statistical tests, preliminary tests (Breusch-Pagan, likelihood tests, hausman tests), diagnostic tests (heteroscedasticity tests and autocorrelation tests), and hypothesis testing. Based on the results of the three preliminary tests in determining the panel data regression model, this study will use the fixed effect model to examine the relationship between variables in the regression model 1. The results of the analysis prove that board tenure and institutional ownership have a positive effect on risk disclosure, while the...

The Effects of Voluntary Disclosure, Audit Tenure and Audit or Specialization on Information Asymmetry with Audit Committee as A Moderating Variable in Banking Companies Registered in Indonesia Stock Exchange

International Journal of Research, 2018

This research entitled the effects of voluntary disclosure, audit tenure and auditor specialization on information asymmetry with audit committee as a moderating variable in banking companies registered in Indonesia Stock Exchange. The aim of this study was to obtain the empirical evidence about the effects of voluntary disclosure, audittenure and auditor specialization on information asymmetry with audit committee as a moderating variable. The data collection applied a census method conducted in banking companies registered in Indonesia Stock Exchange (ISE) in 2010-2016. The sample was 28 banking companies. This study useda panel data due to the combination of time series data with cross section. The results showed that voluntary disclosure and audit tenure had a negative effect on information asymmetry, whereas auditor specialization had a positive effect on information asymmetry and audit committee was able to moderate the effect between voluntary disclosure and auditor specializ...

Corporate Governance and Voluntary Disclosure Practices: Evidence from a Two Tier Board Systems in Indonesia

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.

Corporate Governance Mechanisms and Voluntary Disclosure

2020

Corporate disclosure and corporate governance are two inseparable instruments of investor protection. This research sought to find evidence on how corporate governance mechanisms affect the extent of voluntary disclosures. Voluntary disclosures were measured using content analysis on published annual reports. The sample of this research consisted of 81 firm-year observations from 27 firms of consumer goods sector listed on Indonesian Stock Exchange from 2016 to 2018. Using multiple regression method, the result has shown that board size and board independence increase voluntary disclosures, indicating that the commissioners have effectively represented the interests of shareholders by monitoring and encouraging the management to increase disclosure. This research provided new evidence that family ownership increases voluntary disclosure, suggesting that family firms are more concerned by the costs of non-disclosure. Meanwhile, institutional ownership does not significantly affect vo...

Firm Size, Board Size, and Ownership Structure and Risk Management Disclosure on Islamic Banking in Indonesia

2017

This research aims to examine the influence of firm size, board size, and ownership structure on risk management disclosure on syariah banking in Indonesia 2011-2014. This research uses secondary data which is the annual report of syariah banking. The sample was selected by purposive sampling which are 10 syariah banking qualified in this research. This research conducts multiple linear regression analysis method to examine the hypothesis in the level of significance 5%. The result of this research showed that firm size, board size and public ownership have influence on risk management disclosure. Meanwhile, the institutional ownership didn't have a significant impact on risk management disclosure.

Analysis of The Influence of The Board of Commissioners, Directors, Audit Committee and External Audit Effectiveness On The Level of Mandatory and Voluntary Disclosure

The Indonesian Journal of Accounting Research, 2015

Abstract: This study aims to examine the effect of the effectiveness of the board of commissioners, directors, audit committees and external audit (audit costs, the size of the Public Accounting Firm and the audit opinion) on the level of mandatory and voluntary disclosure. The study uses a sample of 142 non-financial public companies listed on the Indonesia Stock Exchange in 2011 and 2012. The result of the study concludes that the size of the public accounting firm has a significant negative effect on the level of mandatory disclosure, while the effectiveness of the board of commissioners and directors positively influence mandatory disclosure. The effectiveness of the directors and audit committee also positively influence the level of voluntary disclosure, whereas external audit does not influence the level of voluntary disclosure. Abstrak: Penelitian ini bertujuan untuk menguji pengaruh efektivitas dewan komisaris, direksi, komite audit dan audit eksternal (biaya audit, ukuran ...

The Association between Board of Directors Characteristics and the Level of Voluntary Disclosure: Evidence from Listed Banks in Borsa Istanbul

2020

The main aim of this study is to investigate the association between some board of directors characteristics (board independence, board size, board meetings and role duality) and the level of voluntary disclosure in annual reports of listed banks in Borsa Istanbul The deductive approach was adopted by developing hypotheses based on the relevant theories and findings of previous studies. Also, the panel data strategy was applied to analyze the collected data from annual reports across five years (2013-2017). The univariate statistical analysis and the multivariate Feasible Generalized Least Squares regression model are used in this study. The results showed that board independence, board size and board meetings were positively and significantly associated with the level of voluntary disclosure, whilst role duality was negatively but no significantly associated with the level of voluntary disclosure. The results also indicated that all bank characteristics were positively and signific...

The Effect of Company Characteristics on Voluntary Disclosure with Corporate Governance as a Moderated Variables

International Journal of Managerial Studies and Research, 2020

This study aims to analyze and explain the influence of corporate characteristics on voluntary disclosure. Characteristics of the company that tested in this study are five variables, including: profitability, liquidity, leverage, firm size, and the size of the Public Accounting Firm. Corporate governance serves as a moderating variable for being able to explain the effect of firm characteristics on voluntary disclosure. Sample used in this study are companies listed on the Indonesia Stock Exchange and following IICG survey in 2008-2011. Based on these criteria, 11 sample companies obtained. Data were analyzed using moderated regression analysis (MRA). The results showed that corporate characteristics do not affect the voluntary disclosure. Corporate governance also does not moderate the effect of firm characteristics on voluntary disclosure.

The impact of corporate governance on the voluntary accounting information disclosure in Malaysian listed banks

2011

One of the main influencing factors by the corporate governance is information disclosure, especially in the Malaysian listed banks. This study investigates the impact of corporate governance on voluntary financial accounting information disclosure of Malaysian listed banks by using a panel data analysis. Good corporate governance is proxies by board leadership structure, board composition, board size, director ownership, institutional ownership and block ownership. Voluntary financial accounting information disclosure score is weighted after considering the opinions of accountants and financial analysts. The findings show that higher INE_BZ (at 1% Sig. level), lower DOWN (at 10% Sig. level) and higher BZ (at 5% Sig. level) have more voluntary financial accounting information disclosure. The other variables such as BLS, IOWN and BOWN in line with hypothesis while BZ is not in and the main reason for BZ not being in line with hypothesis is the sample firms already have optimal board.