Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence

Krismiaji; Surifah

doi:doi:10.11648/j.ijafrm.20190401.13

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Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence

Krismiaji, Surifah

Published in International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 1)

Received: 21 February 2019 Accepted: 4 April 2019 Published: 6 May 2019

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Abstract

This paper describes empirical research which investigateshow corporate governance (CG) affects the compliance level of disclosure for International Financial Reporting Standards (IFRS) in 2013 and 2014, the two yearsafter full IFRS adoption. The CGis proxy by the board’s structure, characteristics of an audit committee, and shares ownership structure, whereas IFRS disclosure’s level of compliance is measured by disclosure index. This research uses ordinary least square to investigate the effect of corporate governance on the level of IFRS disclosurecompliance along with profitability, industry, and leverage as control variables. This research finds that five elements of CG characteristics which are board’s independence, board’s size, audit committee’sindependence, audit committee’s size, and management’s ownershippositively affect the level of IFRS disclosurecompliance. Yet, the block holder’s ownership negatively affects the compliance level of IFRS disclosure, whereas government ownershipdoes not affect the compliance level of IFRS disclosure. This study provides additional evidence about the association of CG and the level of IFRS disclosure compliance by using Indonesian data. Furthermore, involvingfive elements of corporate governance mechanisms, this study provide additional finding about corporate governance comprehensively. Finally, this research provides values for all users of information including standard setters and other regulators to enhance reporting quality standards in Indonesia.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 1)
DOI	10.11648/j.ijafrm.20190401.13
Page(s)	24-33
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

CG Characteristics, IFRS Disclosure, Level of Compliance

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APA Style

Krismiaji, Surifah. (2019). Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence. International Journal of Accounting, Finance and Risk Management, 4(1), 24-33. https://doi.org/10.11648/j.ijafrm.20190401.13

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Krismiaji; Surifah. Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence. Int. J. Account. Finance Risk Manag. 2019, 4(1), 24-33. doi: 10.11648/j.ijafrm.20190401.13

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AMA Style

Krismiaji, Surifah. Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence. Int J Account Finance Risk Manag. 2019;4(1):24-33. doi: 10.11648/j.ijafrm.20190401.13

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@article{10.11648/j.ijafrm.20190401.13,
  author = {Krismiaji and Surifah},
  title = {Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {1},
  pages = {24-33},
  doi = {10.11648/j.ijafrm.20190401.13},
  url = {https://doi.org/10.11648/j.ijafrm.20190401.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190401.13},
  abstract = {This paper describes empirical research which investigateshow corporate governance (CG) affects the compliance level of disclosure for International Financial Reporting Standards (IFRS) in 2013 and 2014, the two yearsafter full IFRS adoption. The CGis proxy by the board’s structure, characteristics of an audit committee, and shares ownership structure, whereas IFRS disclosure’s level of compliance is measured by disclosure index. This research uses ordinary least square to investigate the effect of corporate governance on the level of IFRS disclosurecompliance along with profitability, industry, and leverage as control variables. This research finds that five elements of CG characteristics which are board’s independence, board’s size, audit committee’sindependence, audit committee’s size, and management’s ownershippositively affect the level of IFRS disclosurecompliance. Yet, the block holder’s ownership negatively affects the compliance level of IFRS disclosure, whereas government ownershipdoes not affect the compliance level of IFRS disclosure. This study provides additional evidence about the association of CG and the level of IFRS disclosure compliance by using Indonesian data. Furthermore, involvingfive elements of corporate governance mechanisms, this study provide additional finding about corporate governance comprehensively. Finally, this research provides values for all users of information including standard setters and other regulators to enhance reporting quality standards in Indonesia.},
 year = {2019}
}

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TY  - JOUR
T1  - Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence
AU  - Krismiaji
AU  - Surifah
Y1  - 2019/05/06
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190401.13
DO  - 10.11648/j.ijafrm.20190401.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 24
EP  - 33
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190401.13
AB  - This paper describes empirical research which investigateshow corporate governance (CG) affects the compliance level of disclosure for International Financial Reporting Standards (IFRS) in 2013 and 2014, the two yearsafter full IFRS adoption. The CGis proxy by the board’s structure, characteristics of an audit committee, and shares ownership structure, whereas IFRS disclosure’s level of compliance is measured by disclosure index. This research uses ordinary least square to investigate the effect of corporate governance on the level of IFRS disclosurecompliance along with profitability, industry, and leverage as control variables. This research finds that five elements of CG characteristics which are board’s independence, board’s size, audit committee’sindependence, audit committee’s size, and management’s ownershippositively affect the level of IFRS disclosurecompliance. Yet, the block holder’s ownership negatively affects the compliance level of IFRS disclosure, whereas government ownershipdoes not affect the compliance level of IFRS disclosure. This study provides additional evidence about the association of CG and the level of IFRS disclosure compliance by using Indonesian data. Furthermore, involvingfive elements of corporate governance mechanisms, this study provide additional finding about corporate governance comprehensively. Finally, this research provides values for all users of information including standard setters and other regulators to enhance reporting quality standards in Indonesia.
VL  - 4
IS  - 1
ER  -

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Author Information

Krismiaji

Department of Accounting, Accounting Academy of YKPN, Yogyakarta, Indonesia
Surifah

Department of Economic and Business, Yogyakarta Technology University, Yogyakarta, Indonesia

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APA Style

Krismiaji, Surifah. (2019). Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence. International Journal of Accounting, Finance and Risk Management, 4(1), 24-33. https://doi.org/10.11648/j.ijafrm.20190401.13

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ACS Style

Krismiaji; Surifah. Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence. Int. J. Account. Finance Risk Manag. 2019, 4(1), 24-33. doi: 10.11648/j.ijafrm.20190401.13

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AMA Style

Krismiaji, Surifah. Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence. Int J Account Finance Risk Manag. 2019;4(1):24-33. doi: 10.11648/j.ijafrm.20190401.13

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@article{10.11648/j.ijafrm.20190401.13,
  author = {Krismiaji and Surifah},
  title = {Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {1},
  pages = {24-33},
  doi = {10.11648/j.ijafrm.20190401.13},
  url = {https://doi.org/10.11648/j.ijafrm.20190401.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190401.13},
  abstract = {This paper describes empirical research which investigateshow corporate governance (CG) affects the compliance level of disclosure for International Financial Reporting Standards (IFRS) in 2013 and 2014, the two yearsafter full IFRS adoption. The CGis proxy by the board’s structure, characteristics of an audit committee, and shares ownership structure, whereas IFRS disclosure’s level of compliance is measured by disclosure index. This research uses ordinary least square to investigate the effect of corporate governance on the level of IFRS disclosurecompliance along with profitability, industry, and leverage as control variables. This research finds that five elements of CG characteristics which are board’s independence, board’s size, audit committee’sindependence, audit committee’s size, and management’s ownershippositively affect the level of IFRS disclosurecompliance. Yet, the block holder’s ownership negatively affects the compliance level of IFRS disclosure, whereas government ownershipdoes not affect the compliance level of IFRS disclosure. This study provides additional evidence about the association of CG and the level of IFRS disclosure compliance by using Indonesian data. Furthermore, involvingfive elements of corporate governance mechanisms, this study provide additional finding about corporate governance comprehensively. Finally, this research provides values for all users of information including standard setters and other regulators to enhance reporting quality standards in Indonesia.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence
AU  - Krismiaji
AU  - Surifah
Y1  - 2019/05/06
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190401.13
DO  - 10.11648/j.ijafrm.20190401.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 24
EP  - 33
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190401.13
AB  - This paper describes empirical research which investigateshow corporate governance (CG) affects the compliance level of disclosure for International Financial Reporting Standards (IFRS) in 2013 and 2014, the two yearsafter full IFRS adoption. The CGis proxy by the board’s structure, characteristics of an audit committee, and shares ownership structure, whereas IFRS disclosure’s level of compliance is measured by disclosure index. This research uses ordinary least square to investigate the effect of corporate governance on the level of IFRS disclosurecompliance along with profitability, industry, and leverage as control variables. This research finds that five elements of CG characteristics which are board’s independence, board’s size, audit committee’sindependence, audit committee’s size, and management’s ownershippositively affect the level of IFRS disclosurecompliance. Yet, the block holder’s ownership negatively affects the compliance level of IFRS disclosure, whereas government ownershipdoes not affect the compliance level of IFRS disclosure. This study provides additional evidence about the association of CG and the level of IFRS disclosure compliance by using Indonesian data. Furthermore, involvingfive elements of corporate governance mechanisms, this study provide additional finding about corporate governance comprehensively. Finally, this research provides values for all users of information including standard setters and other regulators to enhance reporting quality standards in Indonesia.
VL  - 4
IS  - 1
ER  -

Copy | Download