Financial Aspects, Corporate Governance and Disclosure of Financial Risk: Case of Indonesia
Purpose: This study aims to determine the effect of profitability, liquidity, and good corporate governance (CGC) on financial risk disclosure. Disclosure of financial risk refers to IFRS 7 (International Financial Reporting Standard No.7). Design/Methodology/Approach: The population used in this...
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| Format: | Article |
| Language: | English |
| Published: |
Public Finance Institute
2023-06-01
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| Series: | Finance, Accounting and Business Analysis |
| Subjects: | |
| Online Access: | https://faba.bg/index.php/faba/article/view/149 |
| _version_ | 1797804148893155328 |
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| author | Irine Herdjiono Mira Yanti |
| author_facet | Irine Herdjiono Mira Yanti |
| author_sort | Irine Herdjiono |
| collection | DOAJ |
| description | Purpose: This study aims to determine the effect of profitability, liquidity, and good corporate governance (CGC) on financial risk disclosure. Disclosure of financial risk refers to IFRS 7 (International Financial Reporting Standard No.7).
Design/Methodology/Approach: The population used in this study includes all mining companies listed on the IDX, a total of 49 companies during the period 2017 to 2019. The samples used were 24 companies for 3 years of financial statements which were selected using the purposive sampling method, so that the data analyzed were 72. Data analysis used the regression method. The test results show that, partially, the profitability and audit committee size variables affect the disclosure of financial risk. Meanwhile, the liquidity variable and the size of the board of commissioners variable have no effect on financial risk disclosure.
Findings: The test results simultaneously show that profitability, liquidity, board size, and audit committee size have an effect on financial risk disclosure.
Practical Implications: The implication of this research for companies is that the results show that the average level of financial risk disclosure by companies is 0.299. According to the data obtained, the average company has fulfilled the required disclosures such as presenting information about risk exposure, how risks arise, objectives, policies, and risk management processes along with ways to measure them.
Originality/Value: This study comprehensively examines financial and non-financial factors, namely in terms of corporate governance that affect risk disclosure
Paper Type: Research Paper |
| first_indexed | 2024-03-13T05:32:48Z |
| format | Article |
| id | doaj.art-ac2d507ec4c2455dac81e6b308f0b315 |
| institution | Directory Open Access Journal |
| issn | 2603-5324 |
| language | English |
| last_indexed | 2024-03-13T05:32:48Z |
| publishDate | 2023-06-01 |
| publisher | Public Finance Institute |
| record_format | Article |
| series | Finance, Accounting and Business Analysis |
| spelling | doaj.art-ac2d507ec4c2455dac81e6b308f0b3152023-06-14T16:50:55ZengPublic Finance InstituteFinance, Accounting and Business Analysis2603-53242023-06-01517989Financial Aspects, Corporate Governance and Disclosure of Financial Risk: Case of IndonesiaIrine Herdjiono0https://orcid.org/0000-0003-4591-4212Mira Yanti1Department of Accounting, Faculty of Business and Economics, Musamus University, IndonesiaDepartment of Accounting, Faculty of Business and Economics, Musamus University, IndonesiaPurpose: This study aims to determine the effect of profitability, liquidity, and good corporate governance (CGC) on financial risk disclosure. Disclosure of financial risk refers to IFRS 7 (International Financial Reporting Standard No.7). Design/Methodology/Approach: The population used in this study includes all mining companies listed on the IDX, a total of 49 companies during the period 2017 to 2019. The samples used were 24 companies for 3 years of financial statements which were selected using the purposive sampling method, so that the data analyzed were 72. Data analysis used the regression method. The test results show that, partially, the profitability and audit committee size variables affect the disclosure of financial risk. Meanwhile, the liquidity variable and the size of the board of commissioners variable have no effect on financial risk disclosure. Findings: The test results simultaneously show that profitability, liquidity, board size, and audit committee size have an effect on financial risk disclosure. Practical Implications: The implication of this research for companies is that the results show that the average level of financial risk disclosure by companies is 0.299. According to the data obtained, the average company has fulfilled the required disclosures such as presenting information about risk exposure, how risks arise, objectives, policies, and risk management processes along with ways to measure them. Originality/Value: This study comprehensively examines financial and non-financial factors, namely in terms of corporate governance that affect risk disclosure Paper Type: Research Paperhttps://faba.bg/index.php/faba/article/view/149profitabilityliquiditysize of the board of commissionerssize of the audit committeedisclosure of financial risks |
| spellingShingle | Irine Herdjiono Mira Yanti Financial Aspects, Corporate Governance and Disclosure of Financial Risk: Case of Indonesia Finance, Accounting and Business Analysis profitability liquidity size of the board of commissioners size of the audit committee disclosure of financial risks |
| title | Financial Aspects, Corporate Governance and Disclosure of Financial Risk: Case of Indonesia |
| title_full | Financial Aspects, Corporate Governance and Disclosure of Financial Risk: Case of Indonesia |
| title_fullStr | Financial Aspects, Corporate Governance and Disclosure of Financial Risk: Case of Indonesia |
| title_full_unstemmed | Financial Aspects, Corporate Governance and Disclosure of Financial Risk: Case of Indonesia |
| title_short | Financial Aspects, Corporate Governance and Disclosure of Financial Risk: Case of Indonesia |
| title_sort | financial aspects corporate governance and disclosure of financial risk case of indonesia |
| topic | profitability liquidity size of the board of commissioners size of the audit committee disclosure of financial risks |
| url | https://faba.bg/index.php/faba/article/view/149 |
| work_keys_str_mv | AT irineherdjiono financialaspectscorporategovernanceanddisclosureoffinancialriskcaseofindonesia AT mirayanti financialaspectscorporategovernanceanddisclosureoffinancialriskcaseofindonesia |