Financial Risk Disclosure and Corporate Governance
Empirical Evidence on Banking Companies in Indonesian Stock Exchange
- DOI
- 10.2991/aebmr.k.210121.006How to use a DOI?
- Keywords
- Financial Risk, Disclosure, Corporate Governance, Banking
- Abstract
Risk disclosure, especially financial risk disclosure, is useful for providing information to stakeholders about how the risk arises, as well as how management handles risk and the impact of such risks. Risk disclosure is also used to reduce agency conflict and asymmetry information problems. This research aims to examine and analyze the effects of corporate governance on financial risk disclosure in banking companies listed in the Indonesian Stock Exchange. The final sample of this study was 20 banks listed on the Indonesian Stock Exchange in 2015-2017. The result shows that both the number of commissioners’ board and the number of audit committee meetings have a significant positive effect on the extent of financial risk disclosure. Our findings indicate that the existence of the commissioners’ board is important as part of the internal control function of financial risk that will be disclosed by the company. The results of this study were also able to prove that the supervisory activities by the audit committee in the form of an audit committee board meeting affect financial risk disclosure. Overall, our study provides additional evidence that corporate governance mechanisms affect the broad disclosure of a company’s financial risk.
- Copyright
- © 2021, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Putri Agustin AU - Bunga Maharani AU - Rochman Effendi PY - 2021 DA - 2021/01/22 TI - Financial Risk Disclosure and Corporate Governance BT - Proceedings of the Conference on International Issues in Business and Economics Research (CIIBER 2019) PB - Atlantis Press SP - 32 EP - 39 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.210121.006 DO - 10.2991/aebmr.k.210121.006 ID - Agustin2021 ER -