Corporate Governance Mechanisms and Voluntary Disclosure
DOI:
https://doi.org/10.26740/jaj.v11n2.p82-94Keywords:
Annual Report, Corporate Governance, Voluntary DisclosureAbstract
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 voluntary disclosure.
References
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Allegrini, M., & Greco, G. (2013). Corporate Boards, Audit Committees and Voluntary Disclosure: Evidence from Italian Listed Companies. Journal Management Governance, 17, 187216.
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Dicko, S., Khemakhem, H., & Zogning, F. (2019). Political connections and voluntary disclosure¯: the case of Canadian listed companies. Journal of Management and Governance. https://doi.org/10.1007/s10997-019-09471-3
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Elfeky, M. I. (2017). The extent of voluntary disclosure and its determinants in emerging markets¯: Evidence from Egypt. The Journal of Finance and Data Science, 3(14), 4559. https://doi.org/10.1016/j.jfds.2017.09.005
Eng, L. L., & Mak, Y. T. (2003). Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22, 325345. https://doi.org/10.1016/S0278-4254(03)00037-1
Fitri, A. (2016). Analisis Pengaruh Mekanisme Tata Kelola Perusahaan terhadap Luas Pengungkapan. AKRUAL: Jurnal Akuntansi, 7(2), 163176.
Gantyowati, E., & Nugraheni, R. L. (2014). The Impact of Financial Distress Status and Corporate Governance Structures on the Level of Voluntary Disclosure Within Annual Reports of Firms. Journal of Modern Accounting and Auditing, 10(4), 389403.
Godfrey, J. ( 2010). Accounting Theory. Australia: John Wiley & Sons.
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Jensen, M., & Meckling, W. (1976). Theory of The Firm: Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics, 3(4), 305360.
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Marfuah, & Cahyono, Y. D. (2011). Karakteristik perusahaan and pengungkapan tanggung jawab sosial. Jurnal Akuntansi And Auditing Indonesia, 15(1), 103119.
Poluan, G., & Nugroho, P. I. (2015). Pengaruh Mekanisme Corporate Governance and Kondisi Financial Distress Terhadap Luas Pengungkapan Sukarela Dalam Laporan Tahun Perusahaan. Dinamika Akuntansi Keuangan And Perbankan, 4(1), 3956.
Rafifah, U. R., & Ratmono, D. (2015). Pengaruh Mekanisme Corporate Governance terhadap Pengungkapan Sukarela Laporan Tahunan. Journal of Accounting, 4, 1-13.
Samaha, K., & Dahawy, K. (2011). An empirical analysis of corporate governance structures and voluntary corporate disclosure in volatile capital markets¯: The Egyptian experience An empirical analysis of corporate governance structures and voluntary corporate disclosure in volatile capit. International Journal of Accounting, Auditing and Performance Evaluation, 7(1), 6193. https://doi.org/10.1504/IJAAPE.2011.037726
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Silaban, Y. A. P. (2015). Pengaruh Corporate Governnace Terhadap Luas Pengungkapan Sukarela (Studi Empiris pada Perusahaan Perbankan yang Listing di BEI Tahun 2009-2012). Jom Fekon Universitas Riau. 2 (1), 115.
Skinner, D. (1994). Why Firms Voluntarily Disclose Bad News. Journal of Accounting Research, 32(1), 38-60. doi:10.2307/2491386
Soesetio, Y. (2008). Kepemilikan Manajerial and Institusional, Kebijakan Dividen, Ukuran Perusahaan, Struktur Aktiva, and Profitabilitas terhadap Kebijakan Hutang. Jurnal Keuangan and Perbankan, 12(3), 384398
von AlbertiAlhtaybat, L., Hutaibat, K., & AlHtaybat, K. (2012). Mapping corporate disclosure theories. Journal of Financial Reporting and Accounting.
Wibowo, E. (2010). Implementasi Good Corporate Governance di Indonesia. Jurnal Ekonomi And Kewirausahaan, 10(2), 129138.
Allegrini, M., & Greco, G. (2013). Corporate Boards, Audit Committees and Voluntary Disclosure: Evidence from Italian Listed Companies. Journal Management Governance, 17, 187216.
Barako, D. G., Hancock, P., & Izan, H. Y. (2006). Factors Influencing Corporate Disclosure by Kenyan Companies. Corporate Governance, 14(2), 107125.
Cahyaningsih, & Martina, V. Y. (2011). Pengaruh Mekanisme Corporate Governance Dan Karakteristik Perusahaan Terhadap Pengungkapan Tanggungjawab Sosial. Jurnal Siasat Bisnis, 15(2), 171186.
Chau, G. & Gray, S.J. (2010) Family Ownership, Board Independence and Voluntary Disclosure: Evidence from Hong Kong. Journal of International Accounting, Auditing and Taxation, 19, 93109.
Chen, S., Chen, X., & Ch, Q. (2008). Do family firms provide more or less voluntary disclosure? Journal of Accounting Research, 46(3), 499536. https://doi.org/10.1111/j.1475-679X.2008.00288.x
Darmadi, S., & Sodikin, A. (2013). Information Disclosure by Family-Controlled Firms The Role of Board Independence and Institutional Ownership. Asian Review of Accounting, 21(3), 223240.
Dicko, S., Khemakhem, H., & Zogning, F. (2019). Political connections and voluntary disclosure¯: the case of Canadian listed companies. Journal of Management and Governance. https://doi.org/10.1007/s10997-019-09471-3
Donnelly, R., & Mulcahy, M. (2008). Board Structure , Ownership , and Voluntary Disclosure in Ireland. Corporate Governance, 16(5), 416430. https://doi.org/10.1111/j.1467-8683.2008.00692.x
Effendi, M. A. (2009). The Power of Corporate Governance Teori and Implikasi. Jakarta: Salemba Empat.
Elfeky, M. I. (2017). The extent of voluntary disclosure and its determinants in emerging markets¯: Evidence from Egypt. The Journal of Finance and Data Science, 3(14), 4559. https://doi.org/10.1016/j.jfds.2017.09.005
Eng, L. L., & Mak, Y. T. (2003). Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22, 325345. https://doi.org/10.1016/S0278-4254(03)00037-1
Fitri, A. (2016). Analisis Pengaruh Mekanisme Tata Kelola Perusahaan terhadap Luas Pengungkapan. AKRUAL: Jurnal Akuntansi, 7(2), 163176.
Gantyowati, E., & Nugraheni, R. L. (2014). The Impact of Financial Distress Status and Corporate Governance Structures on the Level of Voluntary Disclosure Within Annual Reports of Firms. Journal of Modern Accounting and Auditing, 10(4), 389403.
Godfrey, J. ( 2010). Accounting Theory. Australia: John Wiley & Sons.
Hadiprajitno, P. B. (2014). Struktur Kepemilikan, Mekanisme Tata Perusahaan and Biaya agensi di Indonesia. Jurnal Akuntansi and Auditing, 9(2), 97-127
Hamdani. (2016). Good Corporate Governance (Tinjauan Etika dalam Praktik Bisnis. Jakarta: Mitra Wacana Media.
Huafang, X., & Jianguo, Y. (2007). Ownership structure , board composition and corporate voluntary disclosure Evidence from listed companies in China. Managerial Auditing Journal, 22(6), 604619. https://doi.org/10.1108/02686900710759406. Jakarta: Salemba Empat.
Indriani, E. W. (2013). Faktor-faktor yang Mempengaruhi Luas Pengungkapan Sukarela and Implikasinya terhadap Asimetri Informasi. Accounting Analysis Journal, 2(2), 208217.
Jensen, M., & Meckling, W. (1976). Theory of The Firm: Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics, 3(4), 305360.
KNKG Pedoman Umum Good Corporate Governance Indonesia. (2006).
Kolsi, M. C. (2017). The determinants of corporate voluntary disclosure policy: Evidence from the Abu Dhabi Securities Exchange (ADX). Journal of Accounting in Emerging Economies, 7(2), 249265. https://doi.org/10.1108/JAEE-12-2015-0089
Makhija, A. K., & Patton, J. M. (2004). The Impact of Firm Ownership Structure on Voluntary Disclosure¯: Empirical Evidence from Czech Annual Reports Published by¯: The University of Chicago Press The Impact of Firm Ownership Structure on Voluntary Disclosure¯: Empirical Evidence from Czech Ann. The Journal of Business, 77(3), 457491.
Marfuah, & Cahyono, Y. D. (2011). Karakteristik perusahaan and pengungkapan tanggung jawab sosial. Jurnal Akuntansi And Auditing Indonesia, 15(1), 103119.
Poluan, G., & Nugroho, P. I. (2015). Pengaruh Mekanisme Corporate Governance and Kondisi Financial Distress Terhadap Luas Pengungkapan Sukarela Dalam Laporan Tahun Perusahaan. Dinamika Akuntansi Keuangan And Perbankan, 4(1), 3956.
Rafifah, U. R., & Ratmono, D. (2015). Pengaruh Mekanisme Corporate Governance terhadap Pengungkapan Sukarela Laporan Tahunan. Journal of Accounting, 4, 1-13.
Samaha, K., & Dahawy, K. (2011). An empirical analysis of corporate governance structures and voluntary corporate disclosure in volatile capital markets¯: The Egyptian experience An empirical analysis of corporate governance structures and voluntary corporate disclosure in volatile capit. International Journal of Accounting, Auditing and Performance Evaluation, 7(1), 6193. https://doi.org/10.1504/IJAAPE.2011.037726
Sari, R.A. & Juliarto, A. (2016). Interlock Dewan Direksi, Interlock Auditor Eksternal And Pengaruhnya Terhadap Pengungkapan Sukarela. Simposium Nasional Akuntansi XIX, Lampung, 2016.
Silaban, Y. A. P. (2015). Pengaruh Corporate Governnace Terhadap Luas Pengungkapan Sukarela (Studi Empiris pada Perusahaan Perbankan yang Listing di BEI Tahun 2009-2012). Jom Fekon Universitas Riau. 2 (1), 115.
Skinner, D. (1994). Why Firms Voluntarily Disclose Bad News. Journal of Accounting Research, 32(1), 38-60. doi:10.2307/2491386
Soesetio, Y. (2008). Kepemilikan Manajerial and Institusional, Kebijakan Dividen, Ukuran Perusahaan, Struktur Aktiva, and Profitabilitas terhadap Kebijakan Hutang. Jurnal Keuangan and Perbankan, 12(3), 384398
von AlbertiAlhtaybat, L., Hutaibat, K., & AlHtaybat, K. (2012). Mapping corporate disclosure theories. Journal of Financial Reporting and Accounting.
Wibowo, E. (2010). Implementasi Good Corporate Governance di Indonesia. Jurnal Ekonomi And Kewirausahaan, 10(2), 129138.
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Published
2020-10-14
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Saraswati, E., Azzahra, A., & Sagitaputri, A. (2020). Corporate Governance Mechanisms and Voluntary Disclosure. AKRUAL: Jurnal Akuntansi, 11(2), 82–94. https://doi.org/10.26740/jaj.v11n2.p82-94
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