Corporate Risk Disclosure: The Effect of Corporate Governance

Abstract

ABSTRACT
 This research investigates the role of corporate governance on the disclosure of corporate business risk management with leverage and company size as control variables. Research data were taken from a company that classified as LQ 45 on the Indonesian stock exchange from 2015 to 2018. This research finds that disclosure of business risk management as a sign that management has managed the company with the good attitude increases along with increased corporate governance activities. Leverage and company size also affect company policies regarding the disclosure of corporate business risks. Overall, the results of this study are consistent with the assumption that corporate governance affects company policies regarding business risk disclosure. However, in contrast to the initial hypothesis, the composition of the board commissioners reduces the risk management disclosure activity in the company. This is because the board of commissioners considers that business risk disclosure can increase costs and reduce its competitive advantage so that investors will respond negatively. Apart from these variables, this study contributes to agency theory, where the findings of this study indicate the confirmation of the application of theory in the context of this study.
 ABSTRAK
 Penelitian ini menyelidiki peran tata kelola perusahaan terhadap pengungkapan manajemen risiko bisnis perusahaan dengan leverage dan size perusahaan sebagai variable control. Data penelitian meliputi perusahaan yang tergolong LQ 45 di bursa efek Indonesia dari tahun 2015 hingga 2018. Penelitian ini menemukan bahwa pengungkapan manajemen risiko bisnis sebagai tanda bahwa manajemen telah berperilaku baik dalam mengelola perusahaan meningkat seiring dengan peningkatan aktivitas tata Kelola perusahaan. Leverage dan ukuran perusahaan juga mempengaruhi kebijakan perusahaan mengenai pengungkapan risiko bisnis perusahaan. Secara keseluruhan, hasil penelitian ini konsisten dengan dugaan bahwa tata kelola perusahaan mempengaruhi kebijakan perusahaan mengenai pengungkapan risiko bisnis. Namun, berbeda dengan hipotesis awal komposisi dewan komisaris menurunkan aktivitas pengungkapan manajemen risiko diperusahaan. Hal ini dikarenakan dewan komisaris menimbang bahwa pengungkapan risiko bisnis dapat meningkatkan biaya serta menurunkan keunggulan kompetitif perusahaan sehingga akan direspon negatif oleh investor. Selain variabel tersebut, penelitian ini berkontribusi pada teori agensi dimana temuan yang ada menunjukkan konfirmasi dari penerapan teori di dalam konteks penelitian.

Pengaruh Pengungkapan Sustainability Report Terhadap Kinerja Keuangan Perusahaan Perbankan di Indonesia

“…Tujuan sustainability report ialah bentuk tanggung jawab atas kegiatan operasional perusahaan yang tidak hanya dimotivasi oleh keuntungan, tetapi juga oleh kepedulian terhadap lingkungan, dan social (Ahmad et al, 2021;Simbolon & Sueb, 2016). Hal ini sesuai dengan yang dikemukakan oleh Ria, 2019 dan Elkington, 2013 dalam bukunya Cannibal with Forks: The Triple Bottom Line in 21 st Century Business bahwa perusahaan beroperasi tidak boleh hanya fokus pada keuntungan (profit), tetapi juga pada kesejahteraan masyarakat (people) dan keanekaragaman hayati (planet).…”

Good Corporate Governance and Liquidity: The Urgency of Risk Disclosure of Manufacturing Companies in Indonesia

“…In Indonesia, the monetary crisis that occurred in 1997 has developed into a multi-dimensional crisis including the economy, causing many companies to go bankrupt due to a weak understanding of Good Corporate Governance. Good Corporate Governance proxied in the size of the board of commissioners has a significant positive effect on risk disclosure (Ahmad et al, 2021;Darmadi, 2013;Hatane et al, 2019;Syaifurakhman & Laksito, 2016). The results of this study show that the more members of the board of commissioners, the better the level of control and supervision of management, thus encouraging management to be more transparent in disclosing risks.…”

“…In risk disclosure, companies must include the proportion of independent commissioners, because companies with a high proportion of independent commissioners are likely to be required to provide more information to balance the level of risk to their personal reputation. Furthermore, companies with a higher proportion of independent commissioners are more likely to disclose widely as well as information management processes (Ahmad et al, 2021;Khumairoh & Agustina, 2017;Sari et al, 2022). Another characteristic that may affect risk disclosure is ownership structure.…”

Pengungkapan Sustainability Reporting terhadap Kinerja Perusahaan

“…Laporan keberlanjutan menjadi semakin penting bagi perusahaan karena sustainability reporting memuat informasi non keuangan perusahaan (Putri et al, 2023). Menurut Elkington tidak hanya berfokus keuangan, tetapi juga non keuangan yang terdiri dari 3 aspek yaitu aspek ekonomi, lingkungan, dan sosial (Ahmad et al, 2021).…”