Title: Do corporate webs substitute annual reports for corporate governance disclosures in large Indonesian family corporations?

Authors: Martin Surya Mulyadi

Addresses: Department of Accounting and Finance, Economic and Communication Faculty, Bina Nusantara University, KH Syahdan 9, West Jakarta 11480, Indonesia; Bond Business School, Bond University, 14 University Drive, Gold Coast, QLD 4226, Australia

Abstract: Indonesian corporations were criticised for their poor corporate governance and disclosure practices during the 1990s financial crisis. Even though corporate governance practices have been improved, this research reveals that disclosure practices are still poor in Indonesia, particularly those practiced by family corporations. Using 21 disclosure items from United Nations Conference on Trade and Development's corporate governance disclosure benchmark that are mandatory in Indonesia, I found that there are only three corporations which provide all of these required disclosures in their annual reports and none on the webs. These poor disclosure practices may be contributed by the nature of type II agency problems, or the late adoption of recent disclosure regulations in Indonesia. Furthermore, corporate webs in Indonesia do not substitute annual reports for corporate governance disclosures. It only complements annual reports, mainly for shareholders-related information.

Keywords: corporate governance; corporate governance disclosures; family corporations; type II agency problems; Indonesia.

DOI: 10.1504/IJWBC.2017.086589

International Journal of Web Based Communities, 2017 Vol.13 No.3, pp.311 - 320

Available online: 04 Sep 2017

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