Title: Corporate governance and voluntary disclosures: a story about corporate transparency from Indonesia

Authors: Fitra Roman Cahaya; Gunadi Yoga

Addresses: Faculty of Economics, Accounting Department, Universitas Islam Indonesia, Condong Catur, Depok, Sleman, Yogyakarta, 55283, Indonesia ' Faculty of Economics, Accounting Department, Universitas Islam Indonesia, Condong Catur, Depok, Sleman, Yogyakarta, 55283, Indonesia

Abstract: This study examines the impacts of corporate governance attributes on Indonesia Stock Exchange (IDX) listed companies' voluntary disclosures. Year-ending 2012 annual report disclosures of 100 IDX listed companies are analysed using a disclosure index. The results show a low level of voluntary disclosures (25.97%). The regression analysis shows that board size is a positive and significant predictor of voluntary disclosure practices. Agency theory thus partially explains the variability of these disclosure practices. Older companies also provide more disclosures. It is implied that the number of commissioners determines the strength of the board of commissioners in pushing the board of directors to be more transparent. Thus, to be more informed, international investors should invest their money in older companies having a greater number of commissioners.

Keywords: corporate governance; voluntary disclosures; Indonesia; agency theory; transparency; board size; age of business.

DOI: 10.1504/IJMEF.2020.108830

International Journal of Monetary Economics and Finance, 2020 Vol.13 No.3, pp.269 - 278

Received: 20 Aug 2019
Accepted: 12 Feb 2020

Published online: 28 Jul 2020 *

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