The Impact of Firm Characteristics on Mandatory Disclosure of Companies Listed on the Indonesia Stock Exchange

Fitriasuri, Didik Susetyo, Inten Meutia, Lukluk Fuadah

2018

Abstract

This study examines the impact of firm characteristics on mandatory corporate disclosures. The company has an incentive to make mandatory disclosures. One is to show that the company has better performance than other companies. This study aims to determine what characteristics of the company that influence the mandatory disclosure. By using a sample of annual financial reports from 207 companies listed on the Indonesian Stock Exchange (IDX) in 2017 and OLS analysis techniques this research was conducted. The results prove that managerial ownership, foreign ownership, profitability and industry type affect the level of mandatory corporate disclosure. Consistent with initial predictions, high managerial ownership establishes management position and reduces public disclosure demands. As a result it reduces the level of mandatory disclosure. On the other hand, high foreign ownership encourages management to make better mandatory disclosures to meet the demands of foreign investors. A high level of profitability also encourages better mandatory disclosure to show the performance to the market in order to get investors. The demand for comprehensive reporting in the financial industry sector also encourages better mandatory disclosure.

Paper Citation

in Harvard Style

Fitriasuri., Susetyo D., Meutia I. and Fuadah L. (2018). The Impact of Firm Characteristics on Mandatory Disclosure of Companies Listed on the Indonesia Stock Exchange.In Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC, ISBN 978-989-758-387-2, pages 500-509. DOI: 10.5220/0008441805000509

in Bibtex Style

@conference{seabc18,
author={Fitriasuri and Didik Susetyo and Inten Meutia and Lukluk Fuadah},
title={The Impact of Firm Characteristics on Mandatory Disclosure of Companies Listed on the Indonesia Stock Exchange},
booktitle={Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,},
year={2018},
pages={500-509},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008441805000509},
isbn={978-989-758-387-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,
TI - The Impact of Firm Characteristics on Mandatory Disclosure of Companies Listed on the Indonesia Stock Exchange
SN - 978-989-758-387-2
AU - Fitriasuri.
AU - Susetyo D.
AU - Meutia I.
AU - Fuadah L.
PY - 2018
SP - 500
EP - 509
DO - 10.5220/0008441805000509