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Corporate Governance and Risk Disclosure: Indonesia Evidence
Last modified: 2017-07-06
Abstract
This study aims to investigate the effects of ownership structure, composition of board of director and commissioner and risk policy committee on risk disclosure. We use 365 samples from Indonesia’s publicly listed company in 2015 and use multiple regression method to test the hypothesis. Using keywords of risk category processed by Atlas.ti, the result shows that the most common form of risk disclosure is risk as an opportunity, followed by risk as threat and risk as uncertainty. This result indicates that publicly listed companies in Indonesia have the tendency to disclose “good” risk information rather than “bad” risk information. Regarding the corporate governance mechanism, the study found that the concentrated ownership has negative effect on risk disclosure, while government ownership, board size and risk policy committee has positive effect risk disclosure. We also found no significant effect of foreign ownership, independency of director and commissioner and gender diversity on risk disclosure.
Keywords
Risk, Risk disclosure, ownership structure, composition of board of director, composition of board of commissioner, risk policy committee
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