Determinants of Risk Management Disclosure Study of Banking Sub-Sector Companies Listed on the Indonesia Stock Exchange

Authors

  • Yolifiandri Yolifiandri Dian Nusantara University, Jakarta, Indonesia
  • Islamiah Kamil Dian Nusantara University, Jakarta, Indonesia
  • Sri Anjarwati Dian Nusantara University, Jakarta, Indonesia

DOI:

https://doi.org/10.38035/jafm.v5i4.851

Keywords:

Risk Management Disclosure, Company Size, Audit Committee, Independent Committee, Institutional Ownership

Abstract

This research aims to analyze how risk management disclosure is seen from the implementation of corporate governance (institutional ownership, audit committee, independent commissioner) and company size, which is the main issue of this article, which business actors hope can mitigate business risks. The population of this research is banking industry companies listed on the Indonesia Stock Exchange for the 2018-2020 period. The research sampling technique that the researcher used was purposive sampling. The analysis technique that researchers use is multiple regression analysis and descriptive statistics. The data analysis that researchers used was with the help of the SPSS version 26 application. The results of this research simultaneously show that company size, audit committee, independent commissioner and institutional ownership jointly influence risk management disclosure. Partially, company size has an effect and is not significant on risk management disclosure, the audit committee has a significant effect on risk management disclosure. independent commissioners have an inversely proportional effect on risk management disclosures, there is an influence of institutional ownership which is not significant and inversely proportional to risk management disclosures

References

Abdulla, H., & Elshandidy, T. (2023). Do governance factors affect the effectiveness of risk management disclosure in UAE banks? Cogent Business and Management, 10(2). https://doi.org/10.1080/23311975.2023.2238394

Agoes, S. (2012). Praktikum audit seri 2. Penerbit Salemba. (S. Agoes (ed.); 2nd ed., Vol. 1). Salemba empat.

Alfonso, L., Moore, E. M., & Kostova, T. (2020). The impact of market based institutional reforms on fi rm strategy and performance?: Review and extension. Journal of World Business, December 2018, 101073. https://doi.org/10.1016/j.jwb.2020.101073

Azhiim Sarwono, A., Wahjoe Hapsari Dini Wahjoe Hapsari, D., Nurbaiti, A., & Ekonomi dan Bisnis, F. (2018). THE INFLUENCE FACTORS OF PROFITABILITY, LEVERAGE, AND FIRM SIZE TO RISK MANAGEMENT DISCLOSURE (The Case Study on Banking Sector Companies Listed on The Indonesia Stock Exchange Period.

Bendickson, J., Muldoon, J., Liguori, E. W., & Davis, P. E. (2016). Agency Theory: Background and Epistemology. Academy of Management Proceedings, 2016(1), 12665. https://doi.org/10.5465/ambpp.2016.12665abstract

Desak Nyoman Wiona Budi Fayola. (2020). Pengaruh Ukuran Perusahaan, Konsentrasi Kepemilikan, Reputasi Auditor dan Risk Management Committee terhadap Pengungkapan Enterprise Risk Management. JIA, 5(1 juni 2020).

Diliana, W. O., Zulfikar, Z., & Bayu Bawono, A. D. (2023). Company Characteristics, Corporate Governance and Risk Disclosure. Journal of Economics, Finance and Management Studies, 06(03), 1241–1250. https://doi.org/10.47191/jefms/v6-i3-26

Gunawan, B., & Zakiyah, Y. N. (2017). PENGARUH MEKANISME CORPORATE GOVERNANCE, UKURAN PERUSAHAAN, DAN LEVERAGE TERHADAP RISK MANAGEMENT DISCLOSURE (Vol. 9, Issue 1).

Hardana, H., & Syafruddin, M. (2019). ANALISIS PENGUNGKAPAN MANAJEMEN RISIKO (BUKTI INDONESIA). DIPONEGORO JOURNAL OF ACCOUNTING, 8(2).

Hasibuan, D. H. M., & Auliya, M. (2019). The Effects of Characteristics of the Board of Commissioners and Audit Committee on the Level of Risk Disclosure in Financial Sector Service Companies in the Banking Sector Listed on the Indonesia Stock Exchange in the Period 2015-2017. Riset, 1(2), 079–089. https://doi.org/10.35212/riset.v1i2.22

Karim, A., & Purwanto, A. (2020). The relationship between good corporate governance and performance of most liquid stocks in Indonesia. Research in World Economy, 11(1), 137–142. https://doi.org/10.5430/rwe.v11n1p137

Kartiko Dewi Pangestuti, & Yeye Susilowati. (2017). KOMISARIS INDEPENDEN, REPUTASI AUDITOR, KONSENTRASI KEPEMILIKAN, DAN UKURAN PERUSAHAAN TERHADAP PENGUNGKAPAN ENTERPRISE RISK MANAGEMENT. Dinamika Akuntansi, Keuangan Dan Perbankan, November 2017, Hal: 164 - 175, 6, 164–175.

Kurniawanti, I. A. (2019). Critiques Towards Cosos Enterprise Risk Management (Erm) Framework in Its Basic Assumptions. Majalah Ekonomi, 3(3), 312–328. https://www.neliti.com/publications/4119/critiques-towards-cosos-enterprise-risk-management-erm-framework-in-its-basic-as

Lokaputra, M., Anugerah, R., & Kurnia, P. (2022). 50 | PENGARUH TATA KELOLA PERUSAHAAN TERHADAP PENGUNGKAPAN MANAJEMEN RISIKO. 17(1).

Mareta, S., & Anggraini, W. (2021). The Influence Of Current Ratio, Return On Asset, Debt To Equity Ratio And Good Corporate Governance On Market Value Added (Emipical Study On Basic Industry And Chemical Companies Listed On Indonesia Stock Exchange). 7(2), 189–196.

Mondello, G., & Ben Ayed, N. (2021). Agency Theory and Bank Governance?: A Study of the Effectiveness of CEO ’ s Remuneration for Risk Taking.

Mukhtaruddin, M., Ubaidillah, U., Dewi, K., Hakiki, A., & Nopriyanto, N. (2019). Good Corporate Governance, Corporate Social Responsibility, Firm Value, and Financial Performance as Moderating Variable. Indonesian Journal of Sustainability Accounting and Management, 3(1), 55. https://doi.org/10.28992/ijsam.v3i1.74

Nnah Ugoani, J. N. (2020). Credit Risk Management Evaluation and Bank Management Effectiveness: 1995 – 2015 Dimensionality. Sumerianz Journal of Economics and Finance, 3(310), 178–188. https://doi.org/10.47752/sjef.310.178.188

Rahayu, I., Ardi, D. S., & Hamdani, R. (2022). Risk Management Disclosure and Their Effect on Banking Firms Value in Indonesia. Humanities and Social Sciences Letters, 10(2), 139–148. https://doi.org/10.18488/73.v10i2.2959

Rahayu, N. K., Harymawan, I., Ekasari, W. F., & Nowland, J. (2021). Risk management committee, independent commissioner, and audit fee: An update. Cogent Economics and Finance, 9(1). https://doi.org/10.1080/23322039.2021.1892926

Saini, A. K. (2023). The Fintech Revolution and Future of Banking and Financial Institutions: A Quantitative Investigation. PsychologyandEducation, 55(1), 428–436. https://doi.org/10.48047/pne.2018.55.1.53

Sari, M. P., Pratama, F. N. A., Raharja, S., Yuyetta, E. N. A., & Widhiastuti, R. (2022). Company Size As a Moderating Variable on Enterprise Risk Management Disclosure of Banking Companies in Indonesia. Jurnal Dinamika Akuntansi, 14(1), 76–88. https://doi.org/10.15294/jda.v14i1.35621

Sarwoko, H. (2016). Agency Theory Perspective in Implementation of Corporate Governance. International Multidisciplinary Conference, 68–84.

Senanu, B., & Narteh, B. (2023). Banking sector reforms and customer switching intentions: evidence from the Ghanaian banking industry. Journal of Financial Services Marketing, 28(1), 15–29. https://doi.org/10.1057/s41264-021-00135-8

Setyahadi, R. R., & Narsa, I. M. (2020). Corporate Governance and Sustainability in Indonesia. Journal of Asian Finance, Economics and Business, 7(12), 885–894. https://doi.org/10.13106/JAFEB.2020.VOL7.NO12.885

Sheila, S., & Ruslim, H. (2023). The Role of Sustainability Reports in The Disclosure of Risk Management, Capital Adequacy, And Liquidity Risk To Company Value in Indonesian Banking Companies. Return?: Study of Management, Economic and Bussines, 2(7), 640–648. https://doi.org/10.57096/return.v2i7.120

swarte et al. (2019). PENGARUH STRUKTUR KEPEMILIKAN DAN TATA KELOLA PERUSAHAAN TERHADAP PENGUNGKAPAN MANAJEMEN RISIKO . Jurnal Ekonomi Dan Keuangan .

Wijaya, A., & Mulyantini, S. (2023). The Effect of Risk Management Disclosure, Institutional Ownership, and Macroeconomic Sensitivity to Financial Distress in Shipping Companies on the Indonesia …. AFEBI Management and Business …, 54–65. http://journal.afebi.org/index.php/ambr/article/view/625%0Ahttps://journal.afebi.org/index.php/ambr/article/download/625/387

Yuanisa, L., Hudayati, A., & Kasim, N. (2023). The effects of corporate governance on operational risk disclosure in Indonesian Islamic Banking. Journal of Contemporary Accounting, 4(3), 139–150. https://doi.org/10.20885/jca.vol4.iss3.art1

Yulianto, A., Yanti, A. N. F., Solikhah, B., & Ali, S. (2021). Risk Management Disclosures: An Investigation Using Risk Management Committee as a Moderating Variable. Jurnal Dinamika Akuntansi, 13(1), 93–105.

Zhang, X. X., Taylor, D., Qu, W., & Wise, V. (2013). Institutional ownership, audit committee and risk disclosure - Evidence from Australian stock market. Corporate Board: Role, Duties and Composition, 9(3), 66–81. https://doi.org/10.22495/cbv9i3art6

Published

2024-09-28

How to Cite

Yolifiandri, Y., Kamil, I., & Anjarwati, S. (2024). Determinants of Risk Management Disclosure Study of Banking Sub-Sector Companies Listed on the Indonesia Stock Exchange. Journal of Accounting and Finance Management, 5(4), 872–882. https://doi.org/10.38035/jafm.v5i4.851

Similar Articles

<< < 1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.