Title: The determinants of risk disclosure in the Indonesian non-listed banks

Authors: Dwi Nita Aryani; Khaled Hussainey

Addresses: Management Department, Malangkucecwara School of Economics, Jl. Candi Kalasan, Blimbing, Malang, 65142 Indonesia ' Accounting and Financial Management Department, Faculty of Portsmouth Business School, Portsmouth University, Richmond Building Portland Street, Portsmouth PO1 3DE, UK

Abstract: This study aims to explain the extent of risk disclosure of Indonesian non-listed banks' annual reports and to investigate the factors that drive non-listed banks to disclose risk information in their annual reports. This study provides a new method for measuring risk disclosure in the Indonesian context. We measure risk disclosure by the number of Indonesian risk-related keywords divided by total number of sentences in annual reports. The analysis shows that the total number of risk keywords, sentences and risk disclosure in annual reports has an upward trend. Bank size positively affects risk disclosure. This suggests that firm characteristics influence non-listed banks' risk disclosure.

Keywords: risk disclosure; annual reports; risk-related keywords; non-listed banks; Indonesia; bank size; banking industry.

DOI: 10.1504/IJTGM.2017.082376

International Journal of Trade and Global Markets, 2017 Vol.10 No.1, pp.58 - 66

Received: 12 Aug 2016
Accepted: 06 Sep 2016

Published online: 19 Feb 2017 *

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