Firm Size, Board Size, And Ownership Structure And Risk Management Disclosure

Pangestuti, Dwi; Takidah, Erika; Zr, Ratna Anggraini

doi:10.35836/jakis.v5i2.18

Cited by 6 publications

(7 citation statements)

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“…Thus, larger boards could contribute better in mitigating the conflicts between insider owners and minority owners (Allegrini and Greco, 2013). In addition, the existence of a sufficient number of the members of board of directors likely activates the oversight function in the company, which helps in avoiding the occurrence of information asymmetry (Pangestuti et al, 2017). In this regard, the agency theory posits that large size of board helps in enhancing the financial reporting quality (Ismail et al, 2010;Klein, 2002;Vafeas, 2000;Peasnell et al, 2005;Xie et al, 2003) because larger boards are linked with higher managerial monitoring level and diverse expertise and higher level of stakeholder representation (Peasnell et al, 2005;Klein, 2002), thus ensuring regular and credible information released to the public that contains risk information (Khalil and Maghraby, 2017;Moumen et al, 2016).…”

Section: Hypotheses Development 31 Board Sizementioning

confidence: 99%

Board of directors' characteristics and corporate risk disclosure: the moderating role of family ownership

Alshirah

Rahman

Mustapa

2020

EMJB

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PurposeThis study aims at examining the level of risk of disclosure practices and the effect of four board of directors' characteristics (board size, board meetings, CEO duality and board expertise) on these practices in the Jordanian context. This study also adds to the body of literature by examining the moderating effect of family ownership on the relationship between the board of directors' characteristics and the corporate risk disclosure.Design/methodology/approachThe sample of this study contains the non-financial Jordanian firms listed on Amman Stock Exchange (ASE). 376 annual reports of the sampled firms over four years from 2014 to 2017 were used. The content analysis approach was used to collect data and to determine the level of risk disclosure by computing the number of risk-related sentences in the annual reporting. To test the study's hypothesis, the random effect model was employed.FindingsThe empirical results show that the total of the risk disclosure sentences for each firm ranges from a minimum value of 2 sentences to a maximum value of 61 sentences, and the mean of CRD is 28 sentences. The results also indicate that the board expertise is positively related with the level of risk disclosure. Conversely, CEO duality has a negative impact on the risk disclosure practices. However, the results failed to support that the board size and the board meetings have a significant effect on the level of risk disclosure. Furthermore, the study demonstrated that the family ownership moderates the relationship between the board of directors and the corporate risk disclosure.Practical implicationsThe finding of this study is more likely be useful for many concerned parties, researchers, authorities, investors and financial analysts alike in understanding the current practices of the risk disclosure in Jordan, thus helping them in reconsidering and reviewing the accounting standards and improving the credibility and transparency of the financial reports in the Jordanian capital market.Originality/valueThe current study contributes to the literature of risk disclosure because the previous research has paid little attention to this topic in Jordan. To the best knowledge of the researcher, this study is the first Jordanian study that focuses on examining the relationship between the board of directors' characteristics and the corporate risk disclosure in the non-financial sector. Furthermore, it is the first study that examines the moderating role of family ownership on such relationships. Consequently, the results of the current study draw attention to the CRD practices and the monitoring role of board of directors in Jordan.

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Section: Hypotheses Development 31 Board Sizementioning

confidence: 99%

Board of directors' characteristics and corporate risk disclosure: the moderating role of family ownership

Alshirah

Rahman

Mustapa

2020

EMJB

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“…The results of this study are not in accordance with the results of the research (Jia et al, 2019;Sulistyaningsih & Gunawan, 2016;Wicaksono & Adiwibowo, 2017). However, research results support these results (Kinasih, 2016;Haryanti & Hardiyanti, 2021;Pangestuti et al, 2017).…”

Section: Influence Of the Independent Board Of Commissioners On Erm D...mentioning

confidence: 88%

“…The existence of an independent commissioner in Indonesia does not play a significant role in encouraging companies to provide high-risk disclosures. This result was caused by the appointment of an independent commissioner only for the sake of complying with regulations, not to implement good corporate governance (Nurul et al, 2021) Independent commissioners in a company are only formalities to comply with regulations, where each company is required to have a minimum of 30% independent commissioners on the board, so the existence of these independent commissioners is not to carry out a good oversight function and not to use their independence to oversee the policies of the directors Pangestuti et al . , (2017).…”

Section: Influence Of the Independent Board Of Commissioners On Erm D...mentioning

confidence: 99%

How do We Assess Enterprise Risk Management Disclosure?

Nisrina,

Nuraini,

Dedi Priantana

2023

ijsh

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This study aims to empirically explore company size and corporate governance as determinants of risk management disclosure by investigating the effect of a combination of determinants on risk management disclosure practices in manufacturing companies. This study used a random sampling method. The sample for this research is 189 manufacturing companies (3 years of observation) listed on the Indonesia Stock Exchange for the 2019-2021 period. The COSO 2017 spreadsheet was used to measure the level of risk management disclosure. Panel data regression analysis using the Eviews program version 10 was used to examine the effect of company size and corporate governance on risk management disclosure. The results showed that company size, institutional ownership, and audit committee had a positive effect. In contrast, the size of the board of commissioners hurt risk management. The independent board of commissioners with managerial ownership shows results that do not affect risk management in manufacturing companies in Indonesia.

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“…Efek positif dan signifikan yang diberikan oleh public ownership terhadap risk disclosure sejalan dengan penelitian yang dilakukan oleh (Pangestuti et al, 2017) Hal tersebut dilatarbelakangi oleh adanya tekanan yang diberikan oleh para pemegang saham publik terhadap perusahaan untuk mengungkapkan lebih banyak informasi mengenai risiko pada laporan keuangan yang dimiliki perusahaan karena salah satu media terbaik yang dapat digunakan untuk menilai kondisi perusahaan adalah melalui laporan keuangan yang diterbitkan perusahaan.…”

Section: Diskusiunclassified

Efek Firm Size, Profitability, Gearing Ratio, Dan Public Ownership Terhadap Risk Disclosure

Sudharto

2022

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This study aims to analyze the effect given by firm size, profitability, gearing ratio and public ownership on risk disclosure. This study used purposive sampling as the sampling technique and SPSS version 25 is used as data processing software. There are 117 data from 39 samples of non-cyclical companies listed on the Indonesia Stock Exchange (IDX) during the 2018-2020 period used in this study. The results show that firm size has a positive and insignificant effect on risk disclosure, while profitability has a positive and significant effect on risk disclosure, gearing ratio has a positive and insignificant effect on risk disclosure and public ownership has a positive and significant effect on risk disclosure.

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Firm Size, Board Size, And Ownership Structure And Risk Management Disclosure

Cited by 6 publications

References 0 publications

Board of directors' characteristics and corporate risk disclosure: the moderating role of family ownership

Board of directors' characteristics and corporate risk disclosure: the moderating role of family ownership

How do We Assess Enterprise Risk Management Disclosure?

Efek Firm Size, Profitability, Gearing Ratio, Dan Public Ownership Terhadap Risk Disclosure

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