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/).

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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  -