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The influence of corporate characteristics and Good Corporate Governance toward the risk management disclosure
[La influencia de las características corporativas y el buen gobierno corporativo hacia la divulgación de la gestión de riesgos]

Author

Listed:
  • Evana, Einde

    (University of Lampung (Indonesia))

  • Widiyanti, Ade

    (University of Lampung (Indonesia) Author-Name: Agustina, Yenni
    University of Lampung (Indonesia))

  • Fuadi, Raida

    (University of Syiah Kuala, Banda Aceh (Indonesia))

  • Mirfazli, Edwin

    (University of Lampung (Indonesia))

  • San-José, Leire

    (Universidad del País Vasco (UPV/EHU) (España))

Abstract

This research study aims to obtain empirical evidence to the influence of company characteristics (firm size, profitability, leverage and liquidity) and good corporate governance (audit committee, board size, and public ownership structure) toward the risk management disclosure. This research study uses the Index of Enterprise Risk Management (IERM) as the parameter of risk management disclosure. This research study uses secondary data, the population of Property and Real Estate companies listed on the Indonesia Stock Exchange (IDX) in 2013-2015. The sampling technique was conducted using purposive sampling, which produces 70 listed companies’ samples during the years of observation. The analytical method of this study uses multiple regression analysis of Econometric views 8. This research study concludes that partial testing shows that firm size, audit committees and board size are positively and significantly related to risk management disclosure. Profitability, leverage, liquidity have no significant influence on risk management disclosure. Hypothesis testing uses multiple linear regressions. Data are obtained using Eviews version 8 software application. Data analysis model done with multiple regression model aiming to examine the influence of audit committee size, board of commissioner size, firm size, profitability, and leverage toward risk management disclosure Based on the research study result that has been analyzed statistically using multiple linear regressions, it can be concluded that variables of firm size, leverage, audit committee, and board of commissioner size positively and significantly affect corporate risk management disclosure. Meanwhile, variables of profitability, liquidity, and public ownership do not positively and significantly affect risk management disclosure.

Suggested Citation

  • Evana, Einde & Widiyanti, Ade & Fuadi, Raida & Mirfazli, Edwin & San-José, Leire, 2023. "The influence of corporate characteristics and Good Corporate Governance toward the risk management disclosure [La influencia de las características corporativas y el buen gobierno corporativo haci," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 35(1), pages 404-417, June.
    • Handle: RePEc:pab:rmcpee:v:35:y:2023:i:1:p:404-417
    DOI: https://doi.org/10.46661/revmetodoscuanteconempresa.6138
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    References listed on IDEAS

    as
    1. Hany Elzahar & Khaled Hussainey, 2012. "Determinants of narrative risk disclosures in UK interim reports," Journal of Risk Finance, Emerald Group Publishing, vol. 13(2), pages 133-147, February.
    2. repec:eme:maj000:02686901111171466 is not listed on IDEAS
    3. Azlan Amran, 2009. "Risk reporting," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(1), pages 39-57, January.
    4. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    5. Abraham, Santhosh & Cox, Paul, 2007. "Analysing the determinants of narrative risk information in UK FTSE 100 annual reports," The British Accounting Review, Elsevier, vol. 39(3), pages 227-248.
    6. Khalid Alsaeed, 2006. "The association between firm‐specific characteristics and disclosure," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 21(5), pages 476-496, June.
    7. repec:eme:maj000:02686900610667256 is not listed on IDEAS
    8. Hany Elzahar & Khaled Hussainey, 2012. "Determinants of narrative risk disclosures in UK interim reports," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 13(2), pages 133-147, February.
    9. Jonas Oliveira & Lúcia Lima Rodrigues & Russell Craig, 2011. "Risk‐related disclosures by non‐finance companies," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 26(9), pages 817-839, October.
    10. Dobler, Michael, 2008. "Incentives for risk reporting -- A discretionary disclosure and cheap talk approach," The International Journal of Accounting, Elsevier, vol. 43(2), pages 184-206.
    Full references (including those not matched with items on IDEAS)

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