Printer Friendly

AN EMPIRICAL STUDY: CHARACTERISTICS OF BUSINESS ENTITIES AND CORPORATE GOVERNANCE ON RISK DISCLOSURE PRACTICES.

Introduction

Every company cannot be separated from the existence of a risk which becomes the attention of stakeholders to avoid accounting fraud. The occurrence of accounting frauds has caused investors as interested parties lose confidence in the credibility of the information issued by the companies. The company must be able to do decent management to avoid the occurrence of loss. In an effort, a company faced to maintain the growth and developing transparency to disclose information. Disclosure of information in an open and honest in all things can influence user trust information on performance management of a company. Risk disclosure within the company is one of the essential parts for companies that conduct risk control or management. Dobler (2008) stated that the company disclosure is so substantial, especially in the nonfinancial sector companies. Therefore, required the implementation of good corporate governance by doing the process include identification, evaluation, and control of the risks being faced and conducts oversight of the risk management process so that uncertainties can be suppressed at the lowest level that can be accepted by the company. The topic of risk disclosure in Indonesia has developed since the promulgation of the Bank Indonesia Regulation No.8/4/PBI/2006 concerning The Practice of Good Corporate Governance. Monks and Minow (2011) stated that corporate governance describes the relationships of company parties to run the task in determining the direction and performance.

The study of risk disclosure has recently become a topic of particular concern in the accounting literature. This topic attracted the attention of investors because of fraudulent cases of large companies such as Enron and Worldcom (Oorschoot in Suhardjanto 2011). Even regulators and professional bodies have paid attention to risk disclosure practices by introducing guidelines and regulations to encourage companies to disclose risk information. Risk information is a substantive component of management comments that is useful for investors in decision making as described in IFRS (IFRS 2010). If an investor fails to identify the crucial actual risk factors of the company, investors cannot assess the correct level of risk of these companies. So that causes investors to make the wrong investment decisions that can end up in significant losses or disasters for investors (Abdullah et al. 2015).

Risk disclosure is one part of the declaration of qualitative information listed in the Notes to Financial Statements. Improvements in risk disclosure have even become an essential part of corporate governance reform (Madrigal et al. 2015) due to increasing business complexity and changes in the business context that have created uncertainty for the company's sustainability in the future (Abid and Shaiq 2015). Risk information can help reduce capital costs and allow companies to describe their awareness to manage these risks (Linsley and Shrives 2006). Risk disclosure is also one of the essential aspects of implementing risk management because it helps users of financial statements to assess current and future risks (Abraham and Cox 2007, Miihkinen 2013). Besides, it can help in the process of making investment decisions by evaluating information disclosed by the company; and increasing accountability for its impact on management (stewardship), investor protection and the usefulness of financial reporting (Elzahar and Hussainey 2012). So that when a financial crisis occurs, the main focus of attention is directed at the interests and problems related to risk reporting.

Amid the increasing need for disclosure of risk information and the benefits of disclosure, it has motivated previous research to study the relationship between general company characteristics and risk disclosure. Bamber et al. showed that a supervisor, head of the department with a background in financial (economic) and accounting education make more appropriate disclosures. Said et al. (2013) found that there was a significant relationship between the background of the CEO and the level of environmental disclosure. The variable of the audit committee size has a significant positive impact on exposure (Li et al. 2008, Li et al. 2012, Madi et al. 2014); does not affect risk disclosure (Elzahar and Hussainey 2012). The frequencies of audit committee meetings (MAC) has positively significantly related to the extent of corporate disclosure (Li et al. 2008, Li et al. 2012, Taliyang and Jusop 2011, Ettredge et al. 2011, Allegrini and Greco 2013, Talpur et al. 2018). Al-Maghzom et al. (2016) also show that audit committee meetings more often motivate banks to disclose more risk information. Research results (Meizaroh and Lucyanda 2011) showed that the availability of the risk management committee related to corporate risk disclosure and had a significant effect on risk management disclosures (Buckby et al. 2015). Types of auditors significantly associated to risk disclosure (Oliveira et al. 2011, Lopes and Rodrigues 2007, Mokhtar and Mellett 2013, Abid and Shaiq 2015, Carmona et al. 2016, Elshandidy and Neri 2015); no significant (Al-Mutawaa and Hewaidy 2010) with the disclosure. Status of ownership associated to risk disclosure (Meizaroh and Lucyanda 2011, Abraham and Cox 2007); voluntary disclosure (Gunawan and Susanto 2004); disclosure of intellectual capital (White et al. 2007); social responsibility disclosure (Siregar and Bachtiar 2010). Other studies indicated there is no influence of ownership status on corporate risk disclosure (Elzahar and Hussainey 2012, Probohudono et al. 2013) voluntary disclosure (Allegrini and Greco 2013).

Some studies showed a significant positive correlation between business entity age and compulsory disclosure (Owusu-Ansah and Yeoh 2005, Owusu-Ansah 1998, Al-Shammari et al. 2008); voluntary disclosure (White et al. 2007); there is no significant correlation between business entity age and corporate exposure (Bukh et al. 2005, Al-Mutawaa and Hewaidy 2010, Talpur et al. 2018). The level of risk significantly associated with risk disclosure (Hassan 2009, Probohudono et al. 2013, Oliveira et al. 2011); intellectual capital disclosure (White et al. 2007); not significantly associated with social responsibility disclosure (Siregar and Bachtiar 2010). This paper investigates the association between the characteristics of the business entity, corporate governance, and practices of risk disclosure. The risk model in this paper based on a model developed by the Institute of Chartered Accountants in England and Wales (ICAEW) which is also used by previous researchers (Mokhtar and Mellett 2013, Miihkinen 2013).

The occurrence of information asymmetry and the importance of risk disclosure in financial reporting, encourage researchers to conduct this research. Besides, risk disclosure is still an under-researched area despite the high demand from investors and shareholders for risk management disclosures. Also, the findings show a positive trend in the development of risk disclosure practices in Malaysia from 2001 to 2011 are insufficient and must be improved (Zadeh et al. 2016). Previous researchers have examined the relationship between corporate governance and risk disclosure. However, the results of his research are still diverse (inconsistent). Companies in their activities have risks and face different dangers so that exposure to information risk also tends to vary or differ. Therefore this researcher fills these gaps.

This research contributes to providing theoretical benefits as literature in explaining the relationship between corporate governance, company characteristics, and the level of risk disclosure that can provide ideas or ideas for academics to conduct further research. Policy contributions for users of accounting information can be used as consideration in making investment decisions or giving credit to companies, especially those that carry out risk reporting and as information to implement sound and good corporate governance.

The remainder of this paper then provides an overview of relevant company risk disclosure literature; theoretical arguments and development of research hypotheses; comprehensive research design to answer research questions, the results of applying this design are presented and conclude with conclusions and suggestions.

1. Literature review and hypotheses development

Agency theory states that if there is a disjunction between two parties, owners and managers as the principal and as an agent, then it would create the agency problems because each side will always try to maximize the function of their utility (Jensen and Meckling 1976). This theory in the implementation of risk disclosure was able to explain the submission of reliable information about the risks by managers to users of accounting information. Morris (1987) stated that the signaling theory related to asymmetric information in markets. Besides that, the signaling approach to the practice of risk disclosure describes the activities of company managers disclose risk information, including the owner of the company. Risk disclosure is an essential practice in the company to reduce the external costs of the company (Linsley and Shrives 2006) and help users of financial statements to assess the current or the future risks in order optimize revenue (Abraham and Cox 2007). The regulation that requires disclosing information risk as follows: 1) SFAS No. 60 (Revision 2016); 2) Decision of Chairman of the Indonesian Regulatory Authority for the Indonesian of Financial Statement No. KEP-431/BL/2012; and 3) Bank Indonesia regulations No. 14/14/PBI/2012.

Corporate governance is accountability for how to manage and control the company with a healthy and tasty. The corporate governance mechanism is essential in monitoring the company and harmonizing the interests of managers and shareholders in the capital market (Chakraborty et al. 2018). Choi and Meek (2011) told that corporate governance is a relationship between the management, the board of commissioners, directors, investors, and stakeholders who did the arrangements and guidance in carrying out the business activities of the company. Corporate governance is expected to prevent the manager from doing the cheating and being able to repair the achievement of the company. Ararat et al. (2010) stated that the diversity of directors illustrates the difference between the board of directors with respect to the attribute that can explain the difference in attitude and opinion; cause a variety of cognitive styles, thus enriching knowledge, wisdom, ideas, while Williams and O'Reilly (1998) stated that approaches for company boards would ultimately improve the quality of decision-making.

The board of commissioners formed a committee to help out the implementation of its work, including the audit committee that gives a view of the problem of accounting, financial reporting and the internal oversight system, the explanation as well as the independent auditor (Egon in FCGI 2000). Evaluate on a regular basis can support the development of an enterprise. One of the evaluations conducted in a company is an audit by the auditor. Subramaniam et al. argued that the auditor is a key to external oversight mechanism of the organizations and being the center of attention in particular risk management. Disclosure is a means of accountability in various fields. The quality of accounting information is closely related to the level of disclosure and is also influenced by the characteristics of a business entity. Elzahar and Hussainey (2012) showed that the firm characteristics were affecting the risk disclosure. It so important for foreign investors to conduct an assessment of the prospects in the long term (DiMaggio and Powell 1983). Corporate climate change can lead to the emergence of real risks and damage to the investment portfolio so that investors need risk information to consider the impact of information on their investment (Krishnamurti and Velayutham 2018).

The educational background/qualification of president director and corporate risk disclosure

Wallace and Coocke (1990) stated that the board of directors with accounting education and business would likely conduct a more extensive disclosure level because they are more aware of their business. Expertise is a significant predictor in the risk management disclosure model (Buckby et al. 2015). Bamber et al. (2010) showed that managers or head of a department with educational of financial and accounting background do more precisely disclosure. The best educational background of a manager within a company can be an essential factor in the practice of the disclosure (Said et al. 2018) and found that there was a significant relationship between the background of the CEO and the level of environmental disclosure (Said et al. 2013). Haniffa and Cooke (2002) explained that the educational experience does not affect the exposure. Based on the description and study of previous findings above, the hypothesis in this paper is as follows:

H1: Educational background or qualification of president director positively associated with corporate risk disclosure.

1.1. Size of the audit committee and corporate risk disclosure

The existence of an audit committee is significant in increasing the value of annual reports and reducing information asymmetry (Talpur et al. 2018) and is part of the internal control system in corporate governance (Al-Maghzom et al. 2016). Cotter and Silvester (2008) stated the supervisory function is not only crucial in the structure and composition of the council, but also for committees of business entity, especially in decision making. More the number of audit committee members, the company will improve the information disclosure (Ho and Wong 2001). The results of the prior study showed that the size of the audit committee has a significant positive effect on disclosure (Li et al. 2012, Li et al. 2008, Madi et al. 2014); positively and significantly influence the voluntary disclosure of corporate governance (Talpur et al. 2018); does not affect risk disclosure (Elzahar and Hussainey 2012). The next hypothesis in this paper is as follows:

H2: The size of the audit committee is positively associated with corporate risk disclosure.

1.2. The frequency of audit committee meetings and corporate risk disclosure

Audit committee activity is reflected in the number of audit committee meetings during one financial year (Talpur et al. 2018). The holding of the meeting can help the committee exchanged information, including the risk of the company to allow the identification and minimizes the risk of doing. The results showed that the frequency of audit committee meetings has a significant positive effect on the corporate disclosure level (Li et al. 2008, Li et al. 2012, Allegrini and Greco 2013, Taliyang and Jusop 2011, Ettredge et al. 2011); positively and significantly influence the voluntary disclosure (Talpur et al. 2018). Previous findings (Al-Maghzom et al. 2016) also show that audit committee meetings more often motivate banks to disclose more risk information. Based on the description above, the next hypothesis in this paper is as follows:

H3: The frequency of audit committee meetings is positively associated with corporate risk disclosure.

1.3. Risk monitoring/management committee and corporate risk disclosure

The company that owns the committee of risk monitoring or management are likely to evaluate internal oversight more effectively. They will operate independently with audit committees and work more effectively in carrying out the responsibility of overseeing risk management (Buckby et al. 2015) including ensuring risk disclosures are more complete and useful for stakeholders. The risk committee is considered as a governance mechanism for managing company risk, embracing risk and communicating risks with various stakeholders effectively (Nahar et al. 2016). Results of Meizaroh and Lucyanda (2011) showed that the availability of the risk management committee associated with corporate risk disclosure; has a significant effect on risk management disclosures (Buckby et al. 2015). Based on these, the next hypothesis in this paper is as follows:

H4: The availability of risk monitoring/management committee is positively associated with corporate risk disclosure.

1.4. The quality of external auditor and corporate risk disclosure

For the sake of reputation, auditors tend to demand higher disclosure (Chalmers and Godfrey 2004). Companies that use the services of the Big Four will get higher pressure (Chen et al. 2009) and influence disclosure (Dunn and Mayhew 2004). The company's financial statements audited by reputable independent auditors can also increase the level of investor confidence (Elshandidy and Neri 2015). The results of the prior study showed evidence that the type of audit firm is positively significantly associated with risk disclosure (Lopes and Rodrigues 2007, Mokhtar and Mellett 2013, Oliveira et al. 2011, Abid and Shaiq 2015, Carmona et al. 2016, Elshandidy and Neri 2015); has no significant effect (Al-Mutawaa and Hewaidy 2010) on corporate disclosure. Neifar and Jarboui (2018) also found evidence that the type of external auditor had a significant effect on operational risk information that included disclosure of voluntary Islamic banks. Based on the description above, the next hypothesis in this paper is as follows:

H5: The quality of external auditor is positively associated with corporate risk disclosure.

1.5. Status of business entity and corporate risk disclosure

Khan et al. (2013) stated that companies whose shares consist of foreign ownership tend to disclose the information to the decision-making process. The research showed that foreign-based companies have voluntary disclosure quality in the annual report are higher than domestic companies (Gunawan and Susanto 2004). Foreign-based companies change the behavior of in running operation to keep the reputation (Fauzi 2008, Simerly in Machmud and Djakman 2008). Based on the description above, the next hypothesis in this paper is as follows:

H6: Status of the business entity is positively associated with corporate risk disclosure.

1.6. Age of business entity and corporate risk disclosure

Disclosure of company information varies from time to time (Talpur et al. 2018). Therefore the age of the company can also be a factor that influences company disclosures including risk information. The company had long-standing (Bukh et al. 2005) have a smaller risk than the younger ones. The new company (younger) trying to reduce skepticism and enhance investor confidence (Haniffa and Cooke 2002). Based on the description above, the next hypothesis in this paper is as follows:

H7: Age of business entity is negatively associated with corporate risk disclosure.

2. Methods of research

2.1. Population and method of sampling

In this study data collected based on annual reports of nonfinancial sector companies listed on the Indonesia stock exchange at the end of 2014. There were 420 non-financial companies listed on the Indonesian Stock Exchange. The sampling method in this paper used the purposive sampling. Based on the criteria have defined, the number of samples used was 312 non-financial companies (100 manufacturing and 212 non-manufacturing). The sampling process in this paper follows Table 1 below.

2.2. Measurement of variables

Corporate risk disclosure in this paper is the dependent variable. The risk models used were based on the prior model developed by the Institute of Chartered Accountants in England and Wales (ICAEW) which also used the previous researchers (Mokhtar and Mellett 2013, Miihkinen 2013). Disclosure categorized in 6 (six) categories include financial risk; operational risk; empowerment risk; information processing and technology risk; integrity risk; and strategic risk with a total item 40 (see in Table 2). The measurement used scoring (Amran et al. 2009) with a score of 1 for the items disclosed and 0 if not revealed (not disclosed). The equation of risk disclosure index is as follows:

CRD=[The number of risk disclosure that the company was done./Total corporate risk disclosure items]

Measurement of independent and control variables in this paper used measures such as in the following Table 3:

2.3. Data analysis methods

Data analysis used in this paper were a statistical analysis of multiple linear regression. Regression testing must be free from the classical assumptions (in this paper include normality of residual data, multicollinearity, and heteroscedasticity). The model of regression in this study is as follows:

CRD = [[beta].sub.0] + [[beta].sub.1]EDU + [[beta].sub.2]SAC + [[beta].sub.3]MAC + [[beta].sub.4]KMC + [[beta].sub.5]A UD + [[beta].sub.6]STS + [[beta].sub.7]AGE + [[beta].sub.8]LEV + [epsilon],

where CRD is the index of corporate risk disclosure; EDU is educational background/expertise of director; SAC is the size of the audit committee; MAC is the frequency of audit committee meetings in one year; RMC is the availability of a monitoring/risk management committee; AUD is the quality of external auditor; STS is status of the business entity; AGE is business entity age; and LEV is leverage.

3. Result and discussion

3.1. Descriptive analysis

Descriptive statistics in this paper describes data that have been obtained which is useful to provide information from a group of data. In general, the statistical data of this research variables are shown in the following table summary:

Based on Table 4 above, the descriptive statistics show that the non-financial companies which consist of 312 companies on average do risk disclosure of 0.22 or 22%. Thi indicates that Indonesia non-financial companies still have a shallow awareness of disclosing risks. This is probably due to the nature of the disclosure which is always voluntary (not required/mandatory).

Based on the descriptive statistics Table 5 above, the average of the audit committee size is three persons, the average frequency of audit committee meetings is seven times, the standard age of business entity is 14 years, and the average of leverage is 54%.

Table 6 shows that president of directors with educational background or expertise in business/finance of 68,91% and educational background or qualification on non-business of 31,09%. This table also shows that companies that have a risk monitoring/management committee of 15,06% and who do not have a risk monitoring/management committee of 84,94%. The composition of the company with the kind of big four auditors of 41,03% and type of auditor other than the big four of 58,97%. The base of companies with foreign ownership of 18,91% and the other 81,09%.

3.2. Hypotheses testing

Hypothesis testing studies conducted to test the hypotheses of the research that has been put forward before. Testing was carried out by multiple regression analysis. The results of hypothesis testing in this study summarized in the following table:

Table 7 above shows that the adjusted value of [R.sup.2] is 20.50%. This value indicates that as much as 20.50% of the dependent variable in this study is corporate risk disclosure can be explained by the independent variables and the rest of the 79.50% (100%-20.50%) explained by other factors outside this research model. This table also shows that significant variables related to corporate risk disclosure are the size of the audit committee, the availability of risk monitoring committees, the quality of an external auditor, and the age of a business entity.

3.3. Discussion

3.3.1. The educational background/qualification of president director and corporate risk disclosure

Educational background/qualification of president director (EDU) is not associated with corporate risk disclosure (H1 is not supported). The result of this research supports previous research (Haniffa and Cooke 2002) that found that educational background does not affect the disclosure. This Effect indicates that the educational background is not the only variable (primary factor) which will influence the decision in doing risk disclosure. The opposite effect of this research with the proposed hypothesis possibly because education is not only obtained through a formal channel. The educational background in this study is explicitly limited in the field of economics and business only, but there is the possibility of education company directors following business categories that can support the going concern of the company. Additionally, the capacity of this board of supervisors can also be affected by other things like training and experience which could influence decisions in providing advice such as corporate risk disclosure.

3.3.2. The size of the audit committee and corporate risk disclosure

The size of the audit committee (SAC) is significantly positively associated with corporate risk disclosure (H2 supported). The result of this paper is consistent with the previous findings (Li et al. 2008, Li et al. 2012, Madi et al. 2014) showed that the audit committee size has a significant positive effect on risk disclosure. This finding indicates the magnitude of the audit committee of the company owned by creating opportunities for the committee members to share or exchange information. So that it can reduce the action of beneficial management, including risk disclosure.

3.3.3. The frequency of committee audit meetings and corporate risk disclosure

The frequency of audit committee meetings (MAC) is not significantly associated with corporate risk disclosure (H3 not supported). The finding of this paper supports the statement (Menon and Williams 1994) that the frequency of meetings of the audit committee is not an indicator of carrying out tasks effectively and in contrast to previous studies (Li et al. 2008, Li et al. 2012, Allegrini and Greco 2013, Taliyang and Jusop 2011, Al-Maghzom et al. 2016, Talpur et al. 2018).

3.3.4. Risk monitoring/management committee and corporate risk disclosure

Risk monitoring/ management committee (RMC) is significantly positively associated with corporate risk disclosure (H4 supported). This result is consistent with previous findings (Meizaroh and Lucyanda 2011, Buckby et al. 2015) who discovered the availability of the risk management committee has a significant positive effect on corporate risk disclosure. These findings indicate that the availability of a risk monitoring/risk management committee within a company can be more effectively evaluate internal controls particularly concerning corporate risk. This effectiveness is because of members of the risk monitoring committee assess and follow up on the possibility of a risk occurring. The existence of a risk monitoring committee assists the commissioner in carrying out the risk management supervision function and assessing risks, thereby enhancing the quality of risk assessment and encouraging the company on risk disclosure.

3.3.5. The quality of external auditors and corporate risk disclosure

The external auditor quality (AUD) is significantly positively associated with corporate risk disclosure (H5 supported). The result of this paper is consistent with previous research (Lopes and Rodrigues 2007, Oliveira et al. 2011, Mokhtar and Mellett 2013, Abid and Shaiq 2015, Carmona et al. 2016, Elshandidy and Neri 2015). This indicates that external auditors audit the company with an international affiliate (Big Four) tend to do broader risk disclosure as it gets pressure from auditors as forms in maintaining a reputation. This finding also indicates that the auditor is the key to the external oversight mechanism of the organization and becomes the center of attention, especially for risk management. Auditor plays a role in improving effectiveness and creates good corporate governance.

3.3.6. Status of business entity and corporate risk disclosure

Ownership status (STS) is not significantly associated with corporate risk disclosure (H6 not supported). This research is inconsistent with previous findings (Gunawan and Susanto 2004) which found that foreign-based companies have higher exposure compared to domestic companies. This research supported previous findings (Said et al. 2018). This means that the status of foreign ownership of the company is not associated with corporate risk disclosure. This is likely to happen because the company is worried about losing investors if it discloses the risks because it is essential for foreign investors to conduct a long-term assessment of the company's prospects.

3.3.7. Age of business entity and corporate risk disclosure

The Variable of business entity age (AGE) is negatively associated with corporate risk disclosure (H7 supported). The result of this paper is consistent with all the previous statement (Bukh et al. 2005, Haniffa and Cooke 2002) but is not compatible with the results of previous studies (Al-Shammari et al. 2008, White et al. 2007). This is likely due to the regulation that is issued or the tendency of companies to entice the interest of potential investors.

Leverage variable indicates there is no significantly associated with corporate risk disclosure. This result conflicts with previous research (Hassan 2009) which found that the debt to the asset has a significant effect on risk disclosure.

3.4. Sensitivity analysis

This research was tested back separately into two categories based on the type of industry (manufacturing and non-manufacturing). The results of the sensitivity testing are shown in the following table summary:

Sensitivity analysis based on Table 8 above, the variables that have a significant association on risk disclosure for the manufacturing company category are variable risk monitoring committee (RMC) and age (AGE). Variables that have a substantial effect on risk disclosure of these types of nonmanufacturing companies are the variable of the size of the audit committee (SAC), the availability of a risk monitoring committee (RMC), and the quality of external auditor (AUD). Table 8 shows that the adjusted [R.sup.2] value of 22.30% of manufacturing companies and 19.20% of the non-manufacturing companies. These values indicate that the independent variables included in this study had a more significant influence on corporate risk disclosure in the manufacturing sector than the non-manufacturing sector.

Conclusions and suggestions

This paper investigates the association between firm characteristics, corporate governance, and practices of corporate risk disclosure on non-financial companies. The non-financial companies which consist of 312 companies on average do risk disclosure of 22%. This shows that Indonesia non-financial companies have still low awareness of disclosing the risks. The test results indicate that the educational background/qualification of president directors, the frequency of audit committee meetings, a status of the business entity and leverage are not significantly associated with corporate risk disclosure practices. Size of the audit committee, the availability of a risk monitoring, and quality of external auditor are significantly positively related to the practice of corporate risk disclosure while the age of business entity is significantly negatively associated with corporate risk disclosure practices. The variables of corporate governance and characteristics of business entities in this paper are only able to explain of 20.50% variable of corporate risk disclosure. These empirical results show that committee of risk monitoring or risk management, the quality of external auditor, and the size of the audit committee are primary factors of risk disclosure practices in non-financial companies listed on the Indonesia Stock Exchange.

This paper has several limitations that cannot be avoided by the researcher and can affect the research results. The period of observation in this study only one year, so it does not allow for generalized with the other research. Further research should use a more extended observation period, such as three or five (year) observations to find out the relationship or special events influences corporate risk disclosure. Decision making on risk disclosure practices is determined by the interpretations of researchers, to allow the occurrence of differences in assessment due to researchers. Decision making on risk disclosure should be discussed with the experts so as not to misinterpret and carry out simulations before collecting data for better reliability.

The variables used in this paper are limited only on educational background/qualification of the president director, the size of the audit committee, the frequency of audit committee meetings, the availability of risk monitoring or management committee, quality of external auditors, a status of the business entity, and age of business entity. Further research can add variables or other factors that may affect to corporate risk disclosure such as the gender diversity council or board of directors; government ownership; and the committee on corporate social responsibility or sustainability of efforts to further strengthen the research model to predict risk disclosure.

This paper investigates the association between business entity characteristics, corporate governance, and corporate risk disclosure practices where risk disclosure in this research is seen in general not specific. Further research should investigate the relationships between business entity characteristics, corporate governance, and corporate risk disclosure based on categories or dimensions. The results of this paper cannot be generalized and compared with other countries because the research results using purposive sampling to ensure the existence of the corporate risk disclosure. Further research may use different methods to provide the presence of the risk disclosure of companies such as random sampling. The study only focused on the company's annual report. Further research can do, not just focus on the development of the annual report but also through other statements that may provide information such as the company's interim reports or the company's website.

Acknowledgements

This paper is part of my masters' thesis conducted at Universitas Gadjah Mada. I thank my thesis advisor, Fuad Rakhman, for his guidance during completion of the thesis.

I also thank all members of the central research and community service institutions at the "Sekolah Tinggi Ilmu Ekonomi Muhammadiyah Palopo" for their support.

References

Abdullah M, Shukor ZA, Mohamed ZM, Ahmad A (2015) Risk management disclosure a study on the effect voluntary risk management disclosure toward firm value. Journal of Applied Accounting Research 16 (3): 400-432. https://doi.org/10.1018/JAAR-10-2014-0106

Abid A, Shaiq M (2015) A study of risk disclosures in the annual reports of Pakistani companies: A content analysis. Research Journal of Finance and Accounting 6 (11): 14-24.

Abraham S, Cox P (2007) Analysing the determinants of narrative risk information in UK FTSE 100 annual reports. The British Accounting Review 39 (3): 227-248. https://doi.org/10.1016/j.bar.2007.06.002

Allegrini M, Greco G (2013) Corporate boards, audit committees, and voluntary disclosure: Evidence from Italian listed companies. Journal of Management and Governance 17 (1): 187-216. https://doi.org/10.1007/s10997-011-9168-3

Al-Maghzom A, Hussainey K, Aly D (2016) Corporate governance and risk disclosure: Evidence from Saudi Arabia. Corporate Ownership and Control 13 (2) https://ssrn.com/abstract=2720337

Al-Mutawaa A, Hewaidy AM (2010) Disclosure level and compliance with IFRSs: An empirical investigation of Kuwaiti companies. International Business and Economics Research Journal (IBER) 9 (5): 33-50. https://doi.org/10.19030/iber. v9i5.566

Al-Shammari B, Brown P, Tarca A (2008) An investigation of compliance with international accounting standards by listed companies in the Gulf co-operation council member states. The International Journal of Accounting 43 (4): 425-447. https://doi.org/10.1016/j.intacc.2008.09.003

Amran A, Bin AMR, Hassan BCHM (2009) Risk reporting an exploratory study on risk management disclosure in Malaysian annual reports. Managerial Auditing Journal 24 (1): 39-57. https://doi.org/10.1108/02686900910919893

Ararat M, Mine A, Cetin AT (2010) The impact of board diversity on boards' monitoring intensity and firm performance: Evidence from the Istanbul Stock Exchange. SSRN Electronic Journal 90 (216): 1-33. https://doi.org/10.2139/ssrn.1572283

Bamber, Smith L, Jiang J, Wang IY (2010) What's my style? The influence of top managers on voluntary corporate financial disclosure. The Accounting Review 85 (4): 1131-1162. https://doi.org/10.2308/accr.2010.85.4.1131

Bank Indonesia Regulation Number 8 of 2006 Implementation of good corporate governance for commercial banks. October 5, 2006. The Sheet of the Republik Indonesia in 2006 Number 71. Jakarta.

Bank Indonesia Regulation Number 14 of 2012 Concerning transparency and publication of bank reports. October 18, 2012. The Sheet of the Republik Indonesia in 2012 Number 199. Jakarta.

Buckby S, Gallery G, Ma J (2015) An analysis of risk management disclosures: Australian evidence. Managerial Auditing Journal 30 (8/9): 812-869. https://doi.org/10.1108/MAJ-09-2013-0934

Bukh PN, Nielsen C, Gormsen P, Mouritsen J (2005) Disclosure of information on intellectual capital in Danish IPO prospectuses. Accounting, Auditing, and Accountability Journal 18 (6): 713-732. https://doi.org/10.1108/09513570510627685

Carmona P, Fuentes CD, Ruiz C (2016) Risk disclosure analysis in the corporate governance annual report using fuzzy-set qualitative comparative analysis. Revista de Administracao de Empresas 56 (3): 342-352. https://doi.org/10.1590/S0034-759020160307

Chakraborty A, Gao L, Sheikh S (2018) Corporate governance and risk in cross-listed and Canadian only companies. Management Decision. https://doi.org/10.1108/MD-10-2017-1052

Chalmers K, Godfrey J (2004) Reputation costs: The Impetus for voluntary derivative financial instrument reporting. Accounting, Organizations and Society 29 (2): 95-125. https://doi.org/10.1016/S0361-3682(02)00034-X

Chen LG, Kilgore A, Radich R (2009) Audit committees: Voluntary formation by ASX non-top 500. Managerial Auditing Journal 24 (5): 475-493. https://doi.org/10.1108/02686900910956829

Choi FDS, Meek GK (2011) International accounting (7th ed). New Jersey: Prentice Hall.

Cotter J, Silvester M (2008) Board and monitoring committee independence. A Journal of Accounting, Finance, and Business Studies 39 (2): 211-232. https://doi.org/10.1111/1467-6281.00127

Dimaggio PJ, Powell WW (1983) The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review 48 (2): 147-160. https://doi.org/10.2307/2095101

Dobler M (2008) Incentives for risk reporting-A discretionary disclosure and cheap talk approach. The International Journal of Accounting 43 (2): 184-206. https://doi.org/10.1016/j. intacc.2008.04.005

9 (1): 35-58. https://doi.org/10.1023/B:RAST.0000013628. 49401.69

Elshandidy T, Neri R (2015) Corporate governance, risk disclosure practices, and market liquidity: comparative evidence from the UK and Italy. Corporate Governance: An International Review 23 (4): 331-356. https://doi.org/10.1111/corg.12095

Elzahar H, Hussainey K (2012) Determinants of narrative risk disclosures in UK interim reports. The Journal of Risk Finance 13 (2): 133-147. https://doi.org/10.1108/15265941211203189

Ettredge M, Johnstone K, Stone M, Wang Q (2011) The effects of firm size, corporate governance quality, and bad news on disclosure compliance. Review of Accounting Studies 16 (4): 866-889. https://doi.org/10.1007/s11142-011-9153-8

Fauzi H (2008) Corporate social and environmental performance: A comparative study of Indonesian companies and multinational companies (MNCs) operating in Indonesia. Journal of Knowledge Globalization 1 (1): 81-105.

FCGI (2000) The roles of the board of commissioners and the audit committee www.fcgi.or.id

Gunawan I, Susanto (2004) The influence of ownership structure on the extent of CSR disclosure in the company's annual report: An empirical study on public companies listed on the Indonesia Stock Exchange in 2006. National Accounting Symposium 15 (1): 75-86.

Haniffa RM, Cooke TE (2002) Culture, corporate governance, and disclosure in Malaysian corporations. Abacus 38 (3): 317-349. https://doi.org/10.1111/1467-6281.00112

Hassan MK (2009) UAE corporations - specific characteristics and level of risk disclosure. Managerial Auditing Journal 24 (7): 668-687. https://doi.org/10.1108/02686900910975378

Ho SSM, Wong KS (2001) A study of the relationship between corporate governance structures and the extent of voluntary disclosure. Journal of International Accounting, Auditing, and Taxation 10 (2): 139-156. https://doi.org/10.1016/S1061-9518(01)00041-6

IFRS, P (2010) IFRS practice statement management commentary. A framework for presentation. London: IFRS Foundation.

Jensen MC, Meckling WH (1976) Theory of the firm: managerial behavior, agency costs, and ownership structure. Journal of Financial Economics 3 (4): 305-360. https://doi.org/10.1016/0304-405X(76)90026-X

Khan A, Muttakin MB, Siddiqui J (2013) Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. Journal of Business Ethics 114 (2): 207-223. https://doi.org/10.1007/s10551-012-1336-0

Krishnamurti C, Velayutham E (2018) The influence of board committee structures on voluntary disclosure of greenhouse gas emissions: Australian evidence. Pasific-Basin Finance Journal 50: 65-81. https://doi.org/10.1016/j.pacfin.2017. 09.003

Li J, Mangena M, Pike R (2012) The effect of audit committee characteristics on intellectual capital disclosure. The British Accounting Review 44 (2): 98-110. https://doi.org/10.1016/j. bar.2012.03.003

Li J, Pike R, Haniffa R (2008) Intellectual capital disclosure and corporate governance structure in UK firms. Accounting and Business Research 38 (2): 136-159. https://doi.org/10.1080/0 0014788.2008.9663326

Linsley PM, Shrives PJ (2006) Risk reporting: A study of risk disclosures in the annual reports of UK companies. British Accounting Review 38 (4): 387-404. https://doi.org/10.1016/j. bar.2006.05.002

Lopes PT, Rodrigues LL (2007) Accounting for financial instruments: An analysis of the determinants of disclosure in the Portuguese Stock Exchange. The International Journal of Accounting 42 (1): 25-56. https://doi.org/10.1016/j.intacc.2006.12.002

Machmud N, Djakman CD (2008) Effect of ownership structure on the extent of CSR disclosure in the company's annual report: An empirical study of public companies listed on the Indonesia Stock Exchange in 2006. In Accounting National Symposium. Pontianak.

Madi HK, Ishak Z, Manaf NAB (2014) The impact of audit committee characteristics on corporate voluntary disclosure. Procedia-Social and Behavioral Sciences 164 (August): 486492. https://doi.org/10.1016/j.sbspro.2014.11.106

Madrigal MH, Guzman BA, Guzman CA (2015) Determinants of corporate risk disclosure in large Spanish companies: A snapshot. Contaduria y Administracion 60 (4): 757-775. https://doi.org/10.1016/j.cya.2015.05.014

Meizaroh, Lucyanda J (2011) The influence of corporate governance and concentration of ownership on enterprise risk management disclosure. National Accounting Symposium IV Aceh, July 21-22, 1-30 pp.

Menon K, Williams JD (1994) The use of audit committees for monitoring. Journal of Accounting and Public Policy 13 (2): 121-139. https://doi.org/10.1016/0278-4254(94)90016-7

Miihkinen A (2013) The usefulness of firm risk disclosures under different firm riskiness, investor-interest, and market conditions: new evidence from Finland. Advances in Accounting 29 (2): 312-331. https://doi.org/10.1016/j.adiac.2013.09.006

Mokhtar ES, Mellett H (2013) Competition, corporate governance, ownership structure, and risk reporting. Managerial Auditing Journal 28 (9): 838-865. https://doi.org/10.1108/MAJ-11-2012-0776

Monks RAG, Minow N (2011) Corporate governance (5th ed). United States: John Willey.

Morris RD (1987) Signaling, agency theory, and accounting policy choice. Accounting and Business Research 18 (69): 47-56. https://doi.org/10.1080/00014788.1987.9729347

Nahar S, Jubb C, Azim MI (2016) Risk governance and performance: a developing country perspective. Managerial Auditing Journal 31 (3): 250-268. https://doi.org/10.1108/MAJ-02-2015-1158

Neifar S, Jarboui A (2018) Corporate governance and operational risk voluntary disclosure: Evidence from islamic banks. Research in International Business and Finance 46: 43-54. https://doi.org/10.1016/j.ribaf.2017.09.006

Oliveira J, Rodrigues LL, and Craig R (2011) Risk-related disclosures by non-finance companies Portuguese practices and disclosure characteristics. Managerial Auditing Journal 26 (9): 817-839. https://doi.org/10.1108/02686901111171466

Owusu-Ansah S (1998) The impact of corporate attributes on the extent of mandatory disclosure and reporting by listed companies in Zimbabwe. The International Journal of Accounting 33 (5): 605-631. https://doi.org/10.1016/S0020-7063(98)90015-2

Owusu-Ansah S, Yeoh J (2005) The Effect of legislation on corporate disclosure practices. Abacus 41 (1): 92-109. https://doi.org/10.1111/j.1467-6281.2005.00171.x

Probohudono AN, Tower G, Rusmin R (2013) Risk disclosure during the global financial crisis. Social Responsibility Journal 9 (1): 124-137. https://doi.org/10.1108/17471111311307859

Said R, Omar N, Abdullah WN (2013) Empirical investigations on boards, business characteristics, human capital and environmental reporting. Social Responsibility Journal 9 (4): 534-553. https://doi.org/10.1108/SRJ-02-2012-0019

Said R, Rahim AAA, Hassan R (2018) Exploring the effects of corporate governance and human governance on management commentary disclosure. Social Responsibility Journal 14 (4): 842-858. https://doi.org/10.1108/SRJ-06-2017-0099

Siregar SV, Bachtiar Y (2010) Corporate social reporting: Empirical evidence from Indonesia stock exchange. International Journal of Islamic and Middle Eastern Finance and Management 3 (3): 241-252. https://doi.org/10.1108/17538391011072435

Subramaniam N, McManus L, Zhang J (2009) Corporate governance, firm characteristics and risk management committee formation in Australian companies. Managerial Auditing Journal 24 (4): 316-339. https://doi.org/10.1108/02686900910948170

Suhardjanto D (2011) Disclosure of financial risk and corporate governance: An empirical study of Indonesian banking. Journal of Finance and Banking 15 (1): 105-118.

Taliyang SM, Jusop M (2011) Intellectual capital disclosure and corporate governance structure: Evidence in Malaysia. International Journal of Business and Management 6 (12): 109-117. https://doi.org/10.5539/ijbm.v6n12p109

Talpur S, Lizam M, Zabri SM (2018) Do audit committee structure increases influence the level of voluntary corporate governance disclosures. Property Management 36 (5): 544-561. https://doi.org/10.1108/PM-07-2017-0042

Wallace RSO, Coocke TE (1990) The diagnosis and resolution of emerging issue in corporate disclosures practices. Accounting and Business Research 20 (78): 143-151. https://doi.org/10.1 080/00014788.1990.9728872

White G, Lee A, Tower G (2007) Drivers of voluntary intellectual capital disclosure in listed biotechnology companies. Journal of Intellectual Capital 8 (3): 517-537. https://doi.org/10.1108/14691930710774894

Williams KY, O'Reilly CA (1998) Demography and diversity in organizations: A review of 40 years of research. Research in Organizational Behavior 20: 77-140.

Zadeh FO, Rasid SZA, Basiruddin R, Zamil NAM, Vakilbashi A (2016) Risk disclosure practices among Malaysian listed firms. International Journal of Economics and Financial Issues 6 (3): 1092-1096.

APPENDIX
Table A1. List of Sample (source: authors' sampling of Indonesian Stock
Exchange)

No    Code  Listed companies             No    Code  Listed companies

  1   ABMM  ABM Investama Tbk.           39    BISI  BISI International
                                                     Tbk.
  2   ACST  Acset Indonusa Tbk.          40    BKDP  Bukit Darmo
                                                     Property Tbk
  3   ADES  Akasha Wira                  41    BKSL  Sentul City Tbk.
            International Tbk.
  4   ADHI  Adhi Karya (Persero) Tbk.    42    BLTA  Berlian Laju
                                                     Tanker Tbk
  5   ADMG  Polychem Indonesia Tbk       43    BLTZ  Graha Layar
                                                     Prima Tbk.
  6   ADRO  Adaro Energy Tbk.            44    BMSR  Bintang Mitra
                                                     Semestaraya Tbk
  7   AISA  Tiga Pilar Sejahtera         45    BMTR  Global Mediacom
            Food Tbk.                                Tbk.
  8   AKPI  Argha Karya Prima            46    BNBR  Bakrie & Brothers
            Industry Tbk.                            Tbk.
  9   AKRA  AKR Corporindo Tbk.          47    BRAM  Indo Kordsa Tbk.
 10   ALDO  Alkindo Naratama Tbk.        48    BRAU  Berau Coal Energy
                                                     Tbk.
 11   ALKA  Alakasa Industrindo Tbk      49    BRMS  Bumi Resources
                                                     Minerals Tbk.
 12   AMFG  Asahimas Flat                50    BRNA  Berlina Tbk.
            Glass Tbk.
 13   AMRT  Sumber Alfaria               51    BSDE  Bumi Serpong
            Trijaya Tbk.                             Damai Tbk.
 14   ANJT  Austindo Nusantara           52    BTEK  Bumi Teknokultura
            Jaya Tbk.                                Unggul Tbk
 15   ANTM  Aneka Tambang                53    BTEL  Bakrie Telecom Tbk.
            (Persero) Tbk.
 16   APEX  Apexindo Pratama             54    BTON  Betonjaya Manunggal
            Duta Tbk.                                Tbk.
 17   APII  Arita Prima                  55    BUDI  Budi Starch &
            Indonesia Tbk.                           Sweetener Tbk.
 18   APLN  Agung Podomoro               56    BULL  Buana Listya Tama
            Land Tbk.                                Tbk.
 19   APOL  Arpeni Pratama               57    BUMI  Bumi Resources Tbk.
            Ocean Line Tbk.
 20   ARII  Atlas Resources Tbk.         58    BWPT  Eagle High
                                                     Plantations Tbk.
 21   ARNA  Arwana Citramulia Tbk.       59    BYAN  Bayan Resources
                                                     Tbk.
 22   ARTI  Ratu Prabu Energi Tbk        60    CASS  Cardig Aero
                                                     Services Tbk.
 23   ASGR  Astra Graphia Tbk.           61    CINT  Chitose
                                                     Internasional Tbk.
 24   ASII  Astra International Tbk.     62    CKRA  Cakra Mineral Tbk.
 25   ASRI  Alam Sutera Realty Tbk.      63    CMNP  Citra Marga
                                                     Nusaphala Persada
                                                     Tbk.
 26   ASSA  Adi Sarana Armada Tbk.       64    CMPP  Rimau Multi
                                                     Putra Pratama
 27   ATPK  Bara Jaya                    65    COWL  Cowell Development
            International Tbk.                       Tbk.
 28   AUTO  Astra Otoparts Tbk.          66    CPGT  Citra Maharlika
                                                     Nusantara Corpora
                                                     Tbk.
 29   BAPA  Bekasi Asri Pemula Tbk.      67    CPIN  Charoen Pokphand
                                                     Indonesia Tbk
 30   BATA  Sepatu Bata Tbk.             68    CPRO  Central Proteina
                                                     Prima Tbk.
 31   BBRM  Pelayaran Nasional           69    CSAP  Catur Sentosa
            Bina Buana Raya                          Adiprana Tbk.
 32   BCIP  Bumi Citra Permai Tbk.       70    CTBN  Citra Tubindo Tbk.
 33   BEST  Bekasi Fajar Industrial      71    CTRA  Ciputra Development
            Estate Tbk.                              Tbk.
 34   BHIT  MNC Investama Tbk.           72    CTRP  Ciputra Property
                                                     Tbk.
 35   BIMA  Primarindo Asia              73    CTRS  Ciputra Surya Tbk.
            Infrastructure Tbk.
 36   BIPI  Benakat Integra Tbk.         74    CTTH  Citatah Tbk.
 37   BIPP  Bhuwanatala Indah            75    DART  Duta Anggada Realty
            Permai Tbk.                              Tbk.
 38   BIRD  Blue Bird Tbk.               76    DEWA  Darma Henwa Tbk.
 77   DGIK  Nusa Konstruksi             116    GMTD  Gowa Makassar
            Enjiniring Tbk.                          Tourism Development
                                                     Tbk.
 78   DILD  Intiland Development Tbk.   117    GOLD  Golden Retailindo
                                                     Tbk.
 79   DKFT  Central Omega               118    GPRA  Perdana Gapura
            Resources Tbk.                           Prima Tbk.
 80   DLTA  Delta Djakarta Tbk.         119    GREN  Evergreen Invesco
                                                     Tbk.
 81   DOID  Delta Dunia                 120    GWSA  Greenwood
            Makmur Tbk.                              Sejahtera Tbk.
 82   DPNS  Duta Pertiwi                121    HDTX  Panasia Indo
            Nusantara Tbk.                           Resources Tbk.
 83   DSFI  Dharma Samudera             122    HERO  Hero Supermarket
                                                     Tbk.
            Fishing Industries
 84   DSNG  Dharma Satya                123    HMSP  H.M. Sampoerna Tbk.
            Nusantara Tbk.
 85   DSSA  Dian Swastatika             124    HRUM  Harum Energy Tbk.
            Sentosa Tbk
 86   DUTI  Duta Pertiwi Tbk            125    IATA  Indonesia Transport
                                                     & Infrastructure
                                                     Tbk.
 87   DVLA  Darya-Varia                 126    IBST  Inti Bangun
            Laboratoria Tbk.                         Sejahtera Tbk.
 88   DYAN  Dyandra Media               127    ICBP  Indofood CBP
            International Tbk.                       Sukses Makmur Tbk.
 89   EKAD  Ekadharma                   128    ICON  Island Concepts
            International Tbk.                       Indonesia Tbk.
 90   ELSA  Elnusa Tbk.                 129    IGAR  Champion Pacific
                                                     Indonesia Tbk.
 91   ELTY  Bakrieland                  130    IIKP  Inti Kapuas
            Development Tbk.                         Arowana Tbk.
 92   EMTK  Elang Mahkota               131    IMAS  Indomobil Sukses
            Teknologi Tbk.                           Internasional Tbk.
 93   ENRG  Energi Mega                 132    INAF  Indofarma Tbk.
            Persada Tbk.
 94   EPMT  Enseval Putera              133    INCO  Vale Indonesia Tbk.
            Megatrading Tbk.
 95   ERAA  Erajaya Swasembada Tbk.     134    INDF  Indofood Sukses
                                                     Makmur Tbk.
 96   ERTX  Eratex Djaja Tbk.           135    INDR  Indo-Rama
                                                     Synthetics Tbk.
 97   ESSA  Surya Esa                   136    INDS  Indospring Tbk.
            Perkasa Tbk.
 98   ETWA  Eterindo Wahanatama Tbk     137    INDX  Tanah Laut Tbk
 99   EXCL  XL Axiata Tbk.              138    INDY  Indika Energy Tbk.
100   FASW  Fajar Surya                 139    INKP  Indah Kiat Pulp &
            Wisesa Tbk.                              Paper Tbk.
101   FISH  FKS Multi                   140    INPP  Indonesian Paradise
            Agro Tbk.                                Property Tbk.
102   FMII  Fortune Mate                141    INRU  Toba Pulp
            Indonesia Tbk                            Lestari Tbk.
103   FORU  Fortune Indonesia Tbk       142    INTA  Intraco Penta Tbk.
104   FPNI  Lotte Chemical              143    INTD  Inter-Delta Tbk
            Titan Tbk.
105   FREN  Smartfren Telecom Tbk.      144    INTP  Indocement Tunggal
                                                     Prakasa Tbk.
106   GAMA  Gading Development Tbk.     145    IPOL  Indopoly Swakarsa
                                                     Industry Tbk.
107   GDST  Gunawan Dianjaya            146    ISAT  Indosat Tbk.
            Steel Tbk.
108   GDYR  Goodyear Indonesia Tbk.     147    ITMG  Indo Tambangraya
                                                     Megah Tbk.
109   GEMA  Gema Grahasarana Tbk.       148    ITTG  Leo Investments
                                                     Tbk.
110   GEMS  Golden Energy               149    JAWA  Jaya Agra Wattie
            Mines Tbk.                               Tbk.
111   GGRM  Gudang Garam Tbk.           150    JECC  Jembo Cable Company
                                                     Tbk.
112   GIAA  Garuda Indonesia            151    JIHD  Jakarta
            (Persero) Tbk.                           International
                                                     Hotels &
                                                     Development Tbk.
113   GJTL  Gajah Tunggal Tbk.          152    JKSW  Jakarta Kyoei
                                                     Steel Works Tbk.
114   GLOB  Global Teleshop Tbk.        153    JPFA  Japfa Comfeed
                                                     Indonesia Tbk.
115   GMCW  Grahamas Citrawisata Tbk.   154    JPRS  Jaya Pari Steel Tbk
155   JSMR  Jasa Marga Tbk.             194    MIDI  Midi Utama
                                                     Indonesia Tbk.
156   JTPE  Jasuindo Tiga               195    MKPI  Metropolitan
            Perkasa Tbk.                             Kentjana Tbk.
157   KBLI  KMI Wire & Cable Tbk.       196    MLBI  Multi Bintang
                                                     Indonesia Tbk.
158   KBLM  Kabelindo Murni Tbk.        197    MLIA  Mulia Industrindo
                                                     Tbk
159   KBLV  First Media Tbk.            198    MLPL  Multipolar Tbk.
160   KBRI  Kertas Basuki               199    MLPT  Multipolar
            Rachmat Indonesia Tbk.                   Technology Tbk.
161   KIAS  Keramika Indonesia          200    MNCN  Media Nusantara
            Assosiasi Tbk.                           Citra Tbk.
162   KICI  Kedaung Indah               201    MPMX  Mitra Pinasthika
            Can Tbk                                  Mustika Tbk.
163   KIJA  Kawasan Industri            202    MPPA  Matahari Putra
            Jababeka Tbk.                            Prima Tbk.
164   KKGI  Resource Alam               203    MRAT  Mustika Ratu Tbk.
            Indonesia Tbk.
165   KLBF  Kalbe Farma Tbk.            204    MSKY  MNC Sky
                                                     Vision Tbk.
166   KOBX  Kobexindo Tractors Tbk.     205    MTDL  Metrodata
                                                     Electronics Tbk.
167   KOIN  Kokoh Inti                  206    MTLA  Metropolitan
            Arebama Tbk                              Land Tbk.
168   KPIG  MNC Land Tbk.               207    MYOH  Samindo Resources
                                                     Tbk.
169   KRAH  Grand Kartech Tbk.          208    MYOR  Mayora Indah Tbk.
170   KRAS  Krakatau Steel              209    MYRX  Hanson
            (Persero) Tbk.                           International Tbk.

171   LCGP  Eureka Prima                210    NELY  Pelayaran Nelly
            Jakarta Tbk.                             Dwi Putri Tbk.
172   LEAD  Logindo                     211    NIKL  Pelat Timah
            Samudramakmur Tbk.                       Nusantara Tbk.
173   LION  Lion Metal                  212    NIRO  Nirvana Development
            Works Tbk.                               Tbk.
174   LMPI  Langgeng Makmur             213    NRCA  Nusa Raya
            Industri Tbk.                            Cipta Tbk.
175   LMSH  Lionmesh Prima Tbk.         214    OKAS  Ancora Indonesia
                                                     Resources Tbk.
176   LPCK  Lippo Cikarang Tbk          215    PALM  Provident Agro Tbk.
177   LPIN  Multi Prima                 216    PBRX  Pan Brothers Tbk.
            Sejahtera Tbk
178   LPKR  Lippo Karawaci Tbk.         217    PDES  Destinasi Tirta
                                                     Nusantara Tbk
179   LPLI  Star Pacific Tbk.           218    PGAS  Perusahaan Gas
                                                     Negara (Persero)
                                                     Tbk.
180   LPPF  Matahari Department         219    PGLI  Pembangunan Graha
            Store Tbk.                               Lestari Indah Tbk.
181   LRNA  Eka Sari Lorena             220    PJAA  Pembangunan Jaya
            Transport Tbk.                           Ancol Tbk.
182   LSIP  PP London Sumatra           221    PKPK  Perdana Karya
            Indonesia Tbk.                           Perkasa Tbk
183   MAIN  Malindo Feedmill Tbk.       222    PLAS  Polaris Investama
                                                     Tbk
184   MAMI  Mas Murni                   223    PLIN  Plaza Indonesia
            Indonesia Tbk                            Realty Tbk.
185   MBAP  Mitrabara Adiperdana        224    PNSE  Pudjiadi & Sons
            Tbk.                                     Tbk.
186   MBSS  Mitrabahtera Segara         225    POOL  Pool Advista
            Sejati Tbk.                              Indonesia Tbk.
187   MBTO  Martina Berto Tbk.          226    PRAS  Prima Alloy Steel
                                                     Universal Tbk.
188   MDLN  Modernland Realty           227    PSKT  Red Planet
            Ltd Tbk                                  Indonesia Tbk.
189   MDRN  Modern Internasional Tbk.   228    PTBA  Tambang Batubara
                                                     Bukit Asam
                                                     (Persero)
190   MEDC  Medco Energi                229    PTPP  Indo Straits Tbk.
            International Tbk.
191   META  Nusantara Infrastructure    230    PTRO  PP (Persero) Tbk.
            Tbk.
192   MFMI  Multifiling Mitra           231    PTSP  Petrosea Tbk.
            Indonesia Tbk.
193   MICE  Multi Indocitra Tbk.        232    PUDP  Pioneerindo Gourmet
                                                     International Tbk.
233   PWON  Pakuwon Jati Tbk.           273    SULI  SLJ Global Tbk.
234   RAJA  Rukun Raharja Tbk.          274    TALF  Tunas Alfin Tbk.
235   RALS  Ramayana Lestari            275    TAXI  Express Transindo
            Sentosa Tbk.                             Utama Tbk.
236   RANC  Supra Boga                  276    TBIG  Tower Bersama
            Lestari Tbk.                             Infrastructure Tbk.
237   RBMS  Ristia Bintang              277    TBMS  Tembaga Mulia
            Mahkotasejati Tbk.                       Semanan Tbk.
238   RICY  Ricky Putra                 278    TCID  Mandom Indonesia
            Globalindo Tbk                           Tbk.
239   RMBA  Bentoel Internasional       279    TELE  Tiphone Mobile
            Investama Tbk.                           Indonesia Tbk.
240   RODA  Pikko Land                  280    TFCO  Tifico Fiber
            Development Tbk.                         Indonesia Tbk.
241   ROTI  Nippon Indosari             281    TGKA  Tigaraksa Satria
            Corpindo Tbk.                            Tbk.
242   RUIS  Radiant Utama               282    TINS  Timah (Persero)
            Interinsco Tbk.                          Tbk.
243   SAFE  Steady Safe Tbk             283    TIRA  Tira Austenite Tbk
244   SCMA  Surya Citra Media Tbk.      284    TKIM  Pabrik Kertas
                                                     Tjiwi Kimia Tbk.
245   SDMU  Sidomulyo Selaras Tbk.      285    TLKM  Telekomunikasi
                                                     Indonesia (Persero)
                                                     Tbk.
246   SDPC  Millennium Pharmacon        286    TMAS  Pelayaran Tempuran
            International                            Emas Tbk.
            Tbk.
247   SGRO  Sampoerna Agro Tbk.         287    TOBA  Toba Bara
                                                     Sejahtra Tbk.
248   SIAP  Sekawan Intipratama Tbk     288    TOTL  Total Bangun
                                                     Persada Tbk.
249   SILO  Siloam International        289    TOTO  Surya Toto
            Hospitals Tbk.                           Indonesia Tbk.
250   SIMP  Salim Ivomas                290    TOWR  Sarana Menara
            Pratama Tbk.                             Nusantara Tbk.
251   SIPD  Sierad Produce Tbk.         291    TPIA  Chandra Asri
                                                     Petrochemical Tbk.
252   SKBM  Sekar Bumi Tbk.             292    TPMA  Trans Power
                                                     Marine Tbk.
253   SKLT  Sekar Laut Tbk.             293    TRAM  Trada Maritime Tbk.
254   SKYB  Skybee Tbk.                 294    TRIO  Trikomsel Oke Tbk.
255   SMAR  Smart Tbk.                  295    TRIS  Trisula
                                                     International Tbk.
256   SMBR  Semen Baturaja              296    TRST  Trias Sentosa Tbk.
            (Persero) Tbk.
257   SMCB  Holcim Indonesia Tbk.       297    TURI  Tunas Ridean Tbk.
258   SMDM  Suryamas                    298    ULTJ  Ultra Jaya Milk
            Dutamakmur Tbk.                          Industry & Trading
259   SMDR  Samudera Indonesia Tbk.     299    UNIC  Unggul Indah
                                                     Cahaya Tbk.
260   SMGR  Semen Indonesia             300    UNSP  Bakrie Sumatra
            (Persero) Tbk.                           Plantations Tbk.
261   SMMT  Golden Eagle                301    UNTR  United Tractors
            Energy Tbk.                              Tbk.
262   SMRA  Summarecon Agung Tbk.       302    UNVR  Unilever Indonesia
                                                     Tbk.
263   SMRU  SMR Utama Tbk.              303    VIVA  Visi Media Asia
                                                     Tbk.
264   SMSM  Selamat Sempurna Tbk.       304    VOKS  Voksel Electric
                                                     Tbk.
265   SONA  Sona Topas Tourism          305    WAPO  Wahana Pronatural
            Industry Tbk.                            Tbk.
266   SPMA  Suparma Tbk.                306    WEHA  Weha Transportasi
                                                     Indonesia Tbk.
267   SRIL  Sri Rejeki Isman Tbk.       307    WIKA  Wijaya Karya Tbk.
268   SRSN  Indo Acidatama Tbk          308    WINS  Wintermar Offshore
                                                     Marine Tbk.
269   SRTG  Saratoga Investama          309    WSKT  Waskita Karya
            Sedaya Tbk.                              (Persero) Tbk.
270   SSIA  Surya Semesta               310    WTON  Wijaya Karya
            Internusa Tbk.                           Beton Tbk.
271   STAR  Star Petrochem Tbk.         311    YPAS  Yanaprima
                                                     Hastapersada Tbk
272   SUGI  Sugih Energy Tbk.           312    ZBRA  Zebra Nusantara Tbk

Table A2. Data tabulation (source: authors' calculations)

No    Code                            Variables
             CRD    EDU   SAC   MAC   RMC   AUD   STS   AGE    LEV

  1   ABMM   0.4    1     3      9     0    1     1     1.10   0.82
  2   ACST   0.43   0     3      3     0    1     0     0.69   0.56
  3   ADES   0.23   1     3      3     0    0     1     3.04   0.41
  4   ADHI   0.43   0     2     11     1    0     0     2.40   0.83
  5   ADMG   0.23   1     3      4     0    1     0     3.04   0.37
  6   ADRO   0.6    1     3      6     0    1     0     1.79   0.49
  7   AISA   0.33   0     4      3     1    0     0     2.89   0.51
  8   AKPI   0.23   1     3      3     0    1     0     3.09   0.53
  9   AKRA   0.35   1     3      4     0    1     0     3.00   0.6
 10   ALDO   0.13   1     3      6     0    0     0     1.39   0.55
 11   ALKA   0.13   1     3      4     0    0     0     3.22   0.74
 12   AMFG   0.2    1     4     12     1    1     1     2.94   0.19
 13   AMRT   0.23   1     3      4     0    1     0     1.79   0.79
 14   ANJT   0.4    0     3      4     1    1     0     0.69   0.15
 15   ANTM   0.28   1     4     12     1    1     0     2.83   0.46
 16   APEX   0.33   1     3      5     0    1     0     0.69   0.97
 17   APII   0.2    0     3      5     0    0     1     0.00   0.52
 18   APLN   0.15   0     3     14     1    1     0     1.39   0.64
 19   APOL   0.33   1     3      3     0    0     0     2.20   3.25
 20   ARII   0.15   0     2      4     0    0     0     1.10   0.68
 21   ARNA   0.3    1     3     12     0    1     1     1.10   0.28
 22   ARTI   0.1    0     2      5     0    0     0     2.48   0.45
 23   ASGR   0.3    1     3     14     0    1     0     3.22   0.45
 24   ASII   0.13   0     4      7     0    1     0     3.22   0.49
 25   ASRI   0.18   1     3      6     0    0     0     1.95   0.62
 26   ASSA   0.4    1     3      5     0    1     0     0.69   0.67
 27   ATPK   0.23   1     3      4     0    0     1     2.56   0.35
 28   AUTO   0.1    1     3      6     0    1     0     2.83   0.3
 29   BAPA   0.18   0     3      2     0    0     0     1.95   0.43
 30   BATA   0.05   1     3      5     0    1     1     3.50   0.45
 31   BBRM   0.28   0     3      7     0    0     0     0.69   0.41
 32   BCIP   0.08   1     3      4     0    0     0     1.61   0.58
 33   BEST   0.23   1     3      7     0    0     0     1.10   0.22
 34   BHIT   0.15   1     3      4     0    1     0     2.83   0.53
 35   BIMA   0.25   1     3      8     0    0     0     3.00   2.86
 36   BIPI   0.2    1     3      8     0    0     0     1.61   0.66
 37   BIPP   0.25   0     3      4     0    0     0     2.94   0.27
 38   BIRD   0.1    0     3      2     0    0     0     0.00   0.5
 39   BISI   0.35   0     3      7     0    1     0     2.08   0.14
 40   BKDP   0.28   1     3      4     1    0     0     2.08   0.28
 41   BKSL   0.25   1     3     12     0    0     0     2.83   0.37
 42   BLTA   0.13   0     3      7     0    1     0     3.22   2.7
 43   BLTZ   0.35   0     3      3     0    0     0     0.00   0.21
 44   BMSR   0.18   1     3      4     0    0     1     2.71   0.62
 45   BMTR   0.35   1     3      4     0    1     0     2.94   0.37
 46   BNBR   0.75   1     3      8     1    0     0     3.22   1.19
 47   BRAM   0.38   1     3      5     0    1     0     3.18   0.42
 48   BRAU   0.43   1     3      9     1    1     0     1.39   1.02
 49   BRMS   0.43         4      7     0    0     0     1.39   0.38
 50   BRNA   0.28   1     4      4     1    1     0     3.22   0.28
 51   BSDE   0.2          3      5     0    0     0     1.95   0.34
 52   BTEK   0.15   1     3      6     0    0     0     2.40   0.82
 53   BTEL   0.33   1     3     12     1    0     0     2.20   1.51
 54   BTON   0.15         3      5     0    0     0     2.56   0.16
 55   BUDI   0.15         3      4     0    0     0     3.00   0.63
 56   BULL   0.25   1     3      4     0    0     0     1.39   0.57
 57   BUMI   0.33         3      8     1    0     0     3.18   1.11
 58   BWPT   0.08   1     3      5     0    0     0     1.61   0.58
 59   BYAN   0.43         3      8     1    1     0     1.79   0.78
 60   CASS   0.25   1     3      4     0    0     0     1.10   0.55
 61   CINT   0.3    1     3      7     0    0     0     0.00   0.2
 62   CKRA   0.1    1     3      6     0    0     1     2.77   0.02
 63   CMNP   0.35   1     4     11     1    1     0     3.00   0.3
 64   CMPP   0.03         3     12     0    0     0     3.00   0.77
 65   COWL   0.25         3      4     0    0     0     1.95   0.63
 66   CPGT   0.1    1     3      5     0    0     0     0.69   0.76
 67   CPIN   0.15   1     5     32     0    1     1     3.53   0.48
 68   CPRO   0.03   1     3     12     0    1     0     2.08   0.87
 69   CSAP   0.23         3      4     0    1     0     1.95   0.75
 70   CTBN   0.23   1     3      4     0    1     0     3.22   0.44
 71   CTRA   0.13   1     3      4     0    1     0     3.04   0.51
 72   CTRP   0.23   1     3      5     1    1     0     1.95   0.45
 73   CTRS   0.2    1     3      4     0    1     0     2.77   0.51
 74   CTTH   0.18         3      6     0    0     0     2.94   0.78
 75   DART   0.15   1     3     12     1    1     1     3.22   0.37
 76   DEWA   0.45   1     3     11     0    0     1     1.95   0.27
 77   DGIK   0.15         3      5     0    0     0     1.95   0.46
 78   DILD   0.18   1     3     17     0    0     1     3.14   0.5
 79   DKFT   0.05   1     3      6     0    0     0     2.83   0.05
 80   DLTA   0.1    1     3      3     0    1     1     3.43   0.23
 81   DOID   0.23   1     3      4     0    0     1     1.39   0.9
 82   DPNS   0.18   1     3      4     0    0     0     3.18   0.12
 83   DSFI   0.23   1     3      8     0    0     0     2.71   0.56
 84   DSNG   0.2          3      5     0    1     0     0.69   0.68
 85   DSSA   0.43   1     3      9     0    0     0     1.61   0.36
 86   DUTI   0.25   1     3      5     0    0     0     3.00   0.22
 87   DVLA   0.25   0     4      4     0    1     1     3.00   0.24
 88   DYAN   0.1    1     3      4     0    0     0     0.69   0.46
 89   EKAD   0.1    1     3      5     0    0     0     3.18   0.34
 90   ELSA   0.33   1     4     16     1    1     0     1.95   0.39
 91   ELTY   0.38   1     3     11     1    0     0     2.94   0.48
 92   EMTK   0.18   1     3      9     0    1     0     1.61   0.18
 93   ENRG   0.23         3      4     1    0     0     2.40   0.59
 94   EPMT   0.2          3      4     1    1     0     3.00   0.43
 95   ERAA   0.03   1     2     11     0    1     0     1.10   0.51
 96   ERTX   0.18         3      4     0    0     1     3.18   0.73
 97   ESSA   0.28   1     3      4     0    1     0     1.10   0.28
 98   ETWA   0.23   1     3      4     0    0     0     2.89   0.77
 99   EXCL   0.38   1     4      7     1    1     1     2.20   0.78
100   FASW   0.15         3     14     0    1     0     3.00   0.71
101   FISH   0.23   1     3      4     0    1     0     2.56   0.74
102   FMII   0.2    1     2      5     0    0     1     2.71   0.38
103   FORU   0.05         3      4     0    0     0     2.40   0.49
104   FPNI   0.23   1     3      4     0    1     1     2.56   0.64
105   FREN   0.28   1     3      3     0    0     0     2.08   0.78
106   GAMA   0.08   1     3      3     0    0     0     1.10   0.21
107   GDST   0.18   1     3      5     0    0     1     1.61   0.36
108   GDYR   0.18   1     3      4     0    1     1     3.53   0.54
109   GEMA   0.1    1     3      4     0    0     0     2.48   0.6
110   GEMS   0.28   1     3      5     0    1     0     1.10   0.21
111   GGRM   0.15         3      6     0    1     0     3.18   0.43
112   GIAA   0.4    1     3     31     1    1     0     1.39   0.7
113   GJTL   0.18   1     3     11     0    1     0     3.22   0.63
114   GLOB   0.13   1     3      4     0    1     0     1.10   0.69
115   GMCW   0.25   1     3      5     0    0     0     3.00   0.82
116   GMTD   0.3    1     3      4     0    0     0     2.64   0.56
117   GOLD   0.28   1     2      4     0    0     0     1.61   0.15
118   GPRA   0.2    1     3      4     0    0     0     1.95   0.41
119   GREN   0.18   1     3      4     0    0     1     1.61   0.27
120   GWSA   0.33   1     3      4     0    1     0     1.10   0.14
121   HDTX   0.18   1     3     13     0    0     0     3.22   0.85
122   HERO   0.15   1     3     12     0    1     0     3.22   0.34
123   HMSP   0.23   1     3      3     0    1     1     3.18   0.52
124   HRUM   0.35   1     3      5     0    1     0     0.69   0.18
125   IATA   0.25   1     3      6     0    0     0     2.08   0.47
126   IBST   0.28   1     3      8     0    0     0     0.69   0.21
127   ICBP   0.2    1     3      6     0    1     0     1.39   0.4
128   ICON   0.08   1     3      2     0    0     0     2.30   0.45
129   IGAR   0.13   0     3      4     0    0     0     3.18   0.25
130   IIKP   0.15   0     3      4     0    0     0     2.48   0.04
131   IMAS   0.15   1     3      6     0    1     0     3.04   0.71
132   INAF   0.23   1     3     16     1    0     0     2.64   0.53
133   INCO   0.3    1     4      5     0    1     1     3.22   0.24
134   INDF   0.2    1     3      9     0    1     1     3.04   0.52
135   INDR   0.13   1     3      4     0    1     1     3.18   0.59
136   INDS   0.13   1     3      5     0    0     0     3.18   0.2
137   INDX   0.05   1     3      1     0    0     1     2.64   0.03
138   INDY   0.28   1     3      4     1    1     0     1.61   0.6
139   INKP   0.2          3      9     0    0     0     3.18   0.63
140   INPP   0.13   1     3      4     0    0     0     2.30   0.46
141   INRU   0.13   1     3      2     0    0     1     3.22   0.61
142   INTA   0.23   1     3      6     0    1     0     3.04   0.84
143   INTD   0.15   1     3      4     0    0     0     3.22   0.47
144   INTP   0.18   1     3      4     0    1     1     3.22   0.14
145   IPOL   0.33   1     3      5     0    0     1     1.61   0.46
146   ISAT   0.9          5      5     1    1     0     3.00   0.73
147   ITMG   0.33   1     3     12     1    1     1     1.95   0.31
148   ITTG   0.05         3      3     0    0     0     2.56   0.04
149   JAWA   0.13   1     3      5     0    0     0     1.39   0.57
150   JECC   0.1          3     17     0    0     0     3.09   0.84
151   JIHD   0.08   1     3      7     0    0     0     3.43   0.28
152   JKSW   0.15   1     3      6     0    0     0     2.83   2.38
153   JPFA   0.2          3      4     0    0     1     3.22   0.66
154   JPRS   0.25   1     3     12     0    0     1     3.22   0.04
155   JSMR   0.4    1     3     17     1    0     0     1.95   0.64
156   JTPE   0.18         3      4     0    0     0     2.56   0.57
157   KBLI   0.25   1     3      4     0    1     0     3.14   0.3
158   KBLM   0.13   1     3      3     0    0     0     3.14   0.55
159   KBLV   0.03   0     3      4     0    0     0     2.71   0.28
160   KBRI   0.25   1     3      5     0    0     0     1.95   0.48
161   KIAS   0.28   0     3      6     0    0     1     3.00   0.1
162   KICI   0.18   0     3      4     0    0     0     3.04   0.19
163   KIJA   0.15   0     3      9     0    0     0     3.00   0.45
164   KKGI   0.15   0     3      5     0    0     0     3.18   0.27
165   KLBF   0.4    0     3      4     1    1     0     3.14   0.21
166   KOBX   0.1    0     3      5     0    0     0     1.10   0.68
167   KOIN   0.2    1     3      6     0    0     0     1.95   0.78
168   KPIG   0.33   1     3      4     0    0     0     2.71   0.2
169   KRAH   0.43   0     3      4     0    0     0     0.00   0.61
170   KRAS   0.4    1     4     21     1    1     0     1.39   0.66
171   LCGP   0.25   1     3      4     0    0     0     2.08   0.07
172   LEAD   0.3    1     3      5     1    1     0     0.00   0.5
173   LION   0.15   1     3      3     0    0     1     3.04   0.26
174   LMPI   0.1    0     3     12     0    0     0     3.00   0.51
175   LMSH   0.25   0     3      4     0    0     0     3.22   0.17
176   LPCK   0.18   0     3      4     0    0     0     2.83   0.38
177   LPIN   0.15   1     3      3     0    0     0     3.22   0.25
178   LPKR   0.5    1     3      4     0    0     0     2.94   0.53
179   LPLI   0.13   1     3      4     0    0     0     3.22   0.05
180   LPPF   0.23   1     3      4     1    1     1     3.22   0.95
181   LRNA   0.23         3      2     0    0     0     0.00   0.24
182   LSIP   0.33   1     3      4     0    1     0     2.94   0.17
183   MAIN   0.03   1     5      4     0    1     1     2.20   0.69
184   MAMI   0.05   1     3      5     0    0     0     3.04   0.22
185   MBAP   0.15         3      2     0    1     0     0.00   0.43
186   MBSS   0.28   1     4      4     1    1     0     1.39   0.28
187   MBTO   0.2    1     2     37     0    0     0     1.39   0.27
188   MDLN   0.28   1     3      9     0    0     0     3.09   0.49
189   MDRN   0.28   1     3     12     0    1     0     3.14   0.43
190   MEDC   0.3          3      5     1    1     1     3.00   0.66
191   META   0.1    1     3      7     0    0     1     2.56   0.42
192   MFMI   0.05   1     3      4     0    0     0     1.39   0.07
193   MICE   0.08   1     3      6     0    0     0     2.20   0.2
194   MIDI   0.33   1     3      4     0    1     0     1.39   0.76
195   MKPI   0.23         3      4     0    0     0     1.79   0.5
196   MLBI   0.13   1     3      5     0    1     1     3.04   0.75
197   MLIA   0.18   1     3     12     0    1     0     3.04   0.82
198   MLPL   0.13   1     3      4     0    0     0     3.22   0.55
199   MLPT   0.3    1     3      4     0    0     0     0.69   0.65
200   MNCN   0.35   1     3      4     0    1     0     2.08   0.31
201   MPMX   0.1    1     3      7     0    1     0     0.69   0.62
202   MPPA   0.18   1     4      4     0    0     0     3.09   0.51
203   MRAT   0.18   1     3      3     0    0     0     2.94   0.23
204   MSKY   0.33   1     3      4     0    1     0     1.10   0.73
205   MTDL   0.18   1     3      5     0    1     0     3.22   0.57
206   MTLA   0.4          3      4     0    1     1     1.39   0.37
207   MYOH   0.15   1     3      5     0    1     1     2.64   0.79
208   MYOR   0.25         3      5     0    0     0     3.22   0.6
209   MYRX   0.18   1     3      6     0    1     0     3.18   0.15
210   NELY   0.15         3     10     0    0     0     0.69   0.23
211   NIKL   0.38   1     4      7     0    1     0     1.61   0.71
212   NIRO   0.23   1     3      5     0    0     0     0.69   0.43
213   NRCA   0.3          3      4     0    0     0     0.69   0.46
214   OKAS   0.3    1     4      7     1    1     0     2.20   0.85
215   PALM   0.18   1     3      7     0    0     0     0.69   0.6
216   PBRX   0.08   1     3     10     0    0     0     3.18   0.44
217   PDES   0.03   1     3      2     0    0     0     1.95   0.49
218   PGAS   0.33   1     5     44     1    1     0     2.40   0.52
219   PGLI   0.18   1     3     28     0    0     0     2.71   0.18
220   PJAA   0.18   0     3     48     0    0     0     2.40   0.44
221   PKPK   0.08   0     3      3     0    0     0     2.08   0.52
222   PLAS   0.2    1     3      3     0    0     0     2.64   0.35
223   PLIN   0.18   1     3     48     0    1     0     3.14   0.48
224   PNSE   0.38   0     3      9     0    0     0     3.22   0.33
225   POOL   0.23   1     3      6     0    1     0     3.18   0.14
226   PRAS   0.2    0     3      4     0    0     0     3.22   0.47
227   PSKT   0.2    1     3      3     0    0     0     2.94   0.58
228   PTBA   0.48   0     4     59     1    1     0     0.00   0.41
229   PTPP   0.4    0     4     27     0    0     0     1.61   0.84
230   PTRO   0.13   1     3      4     1    1     1     3.22   0.59
231   PTSP   0.03   0     3     12     0    0     1     3,04   0,45
232   PUDP   0,35   1     3      4     0    0     0     3.00   0.28
233   PWON   0.23   0     3      5     0    1     0     3.22   0.51
234   RAJA   0.2    1     3      4     1    0     0     2.20   0.52
235   RALS   0.2    1     4      4     0    1     0     2.89   0.26
236   RANC   0.3    1     3      3     0    0     0     1.10   0.48
237   RBMS   0.13   0     3     24     0    0     0     2.83   0.15
238   RICY   0.2    1     3      4     0    0     0     2.83   0.66
239   RMBA   0.1    1     3      4     0    1     0     3.22   1.14
240   RODA   0.3    1     3      4     0    0     0     2.56   0.31
241   ROTI   0.23   1     4      4     0    1     1     1.61   0.55
242   RUIS   0.23   1     3     12     0    0     0     2.20   0.75
243   SAFE   0.25   1     3      3     0    0     0     3.00   7.69
244   SCMA   0.23   1     3     12     0    1     0     2.48   0.26
245   SDMU   0.08   0     3     10     0    0     0     1.39   0.48
246   SDPC   0.1    1     4      4     1    0     0     3.22   0.77
247   SGRO   0.3    1     3      4     1    1     0     2.08   0.45
248   SIAP   0.08   0     3      1     0    0     0     1.79   0.04
249   SILO   0.33   1     3      4     0    0     0     0.00   0.42
250   SIMP   0.35   1     3      9     0    1     1     1.39   0.46
251   SIPD   0.2    1     3      4     0    0     0     2.89   0.54
252   SKBM   0.18   1     3      4     0    0     0     0.69   0.51
253   SKLT   0.1    1     3      4     0    0     0     3.43   0.54
254   SKYB   0.2    1     3      5     0    0     1     1.61   0.6
255   SMAR   0.33   1     3     11     0    0     0     3.09   0.63
256   SMBR   0.38   0     3      4     0    0     0     0.69   0.07
257   SMCB   0.05   1     3      5     0    1     1     2.83   0.49
258   SMDM   0.23   0     3      4     0    0     1     2.94   0.3
259   SMDR   0.15   0     3      8     0    1     0     2.71   0.53
260   SMGR   0.43   0     5     12     1    1     0     3.18   0.27
261   SMMT   0.18   1     3      4     0    1     1     2.48   0.37
262   SMRA   0.25   1     3      4     0    1     0     3.22   0.61
263   SMRU   0.1    1     3      2     0    0     0     1.10   0.5
264   SMSM   0.2    0     3      4     0    1     0     2.89   0.34
265   SONA   0.25   1     3      4     0    0     0     3.14   0.4
266   SPMA   0.2    0     3      5     0    0     0     3.00   0.62
267   SRIL   0.08   1     3      3     0    0     0     0.69   0.67
268   SRSN   0.13   0     4      6     0    0     0     3.09   0.29
269   SRTG   0.35   1     3     11     0    1     0     0.69   0.29
270   SSIA   0.2    1     3      8     0    0     0     2.89   0.49
271   STAR   0.05   1     3      5     0    0     0     1.39   0.37
272   SUGI   0.2    1     3      4     0    0     1     2.56   0.45
273   SULI   0.2    1     3     12     0    1     0     3.04   1.41
274   TALF   0.23   0     3      4     0    0     0     0.00   0.24
275   TAXI   0.08   1     3      4     0    0     0     0.69   0.7
276   TBIG   0.23   0     3      5     0    0     0     1.39   0.81
277   TBMS   0.15   0     3      4     0    1     1     3.04   0.89
278   TCID   0.2    1     4     14     0    1     1     3.04   0.31
279   TELE   0.2    1     3      4     0    0     0     1.10   0.5
280   TFCO   0.1    0     3      4     0    1     1     3.56   0.15
281   TGKA   0.28   1     3      4     0    1     0     3.22   0.7
282   TINS   0.4    0     4      3     1    1     0     2.94   0.42
283   TIRA   0.05   1     3      5     0    0     0     3.04   0.61
284   TKIM   0.2    0     3      9     0    0     0     3.22   0.66
285   TLKM   0.63   0     6     38     1    1     0     2.94   0.39
286   TMAS   0.15   0     3     12     0    1     0     2.48   0.67
287   TOBA   0.2    1     3      9     0    1     0     1.10   0.53
288   TOTL   0.3    1     3     10     0    0     0     2.08   0.68
289   TOTO   0.18   1     3     12     1    1     1     3.18   0.39
290   TOWR   0.35   1     3      4     0    1     0     1.61   0.73
291   TPIA   0.3    1     3     12     0    1     0     1.95   0.55
292   TPMA   0.05         3      4     0    0     0     0.69   0.54
293   TRAM   0.28   1     3      4     0    0     0     1.79   0.63
294   TRIO   0.28   1     3      6     0    1     0     1.79   0.74
295   TRIS   0.33   1     3      9     0    0     0     1.10   0.41
296   TRST   0.15         3      4     0    1     0     3.22   0.46
297   TURI   0.2    1     4      4     0    1     0     3.00   0.46
298   ULTJ   0.25   1     3      3     0    0     0     3.22   0.22
299   UNIC   0.15         3      6     0    1     1     3.22   0.39
300   UNSP   0.4    1     3      4     1    0     0     3.22   0.76
301   UNTR   0.28         3      4     0    1     0     3.22   0.36
302   UNVR   0.18   1     3      4     0    1     1     3.50   0.68
303   VIVA   0.13   1     3      2     1    0     0     1.10   0.57
304   VOKS   0.13         3      6     0    1     1     3.18   0.67
305   WAPO   0.23   1     3      4     0    0     0     2.64   0.86
306   WEHA   0.3    1     3      2     0    0     0     2.08   0.66
307   WIKA   0.15   1     6     18     0    0     0     2.30   0.69
308   WINS   0.18   0     3     11     0    0     0     1.39   0.47
309   WSKT   0.2    1     4     22     1    0     0     0.69   0.77
310   WTON   0.23   0     4      4     0    0     0     0.00   0.41
311   YPAS   0.2    0     3      4     0    0     0     1.95   0.49
312   ZBRA   0.05   0     3      3     0    0     0     3.14   0.38

Table A3. Big four accounting firms and affiliations in Indonesia

No   Big Four Accounting Firms      Affiliation in Indonesia

1    Deloitte Touche                KAP Osman Bing Satrio & Eny
2    PricewaterhouseCoopers (PWC)   KAP Tanudiredja, Wibisana, Rintis &
                                    Rekan
3    Ernst & Young (EY)             KAP Purwantono, Suherman & Surja
4    Klynveld Peat Marwick          KAP Sidharta &Widjaja
     Goerdeler (KPMG)

Table A4. Descriptive statistics (source: authors' calculations)

                     N     Minimum   Maximum   Mean      Std. Deviation

   CRD               312    .03       .90        .2225    .11593
   SAC               312   2.00      6.00       3.1154    .46707
   MAC               312   1.00      59.00      7.1346   7.07887
   AGE               312   1.00      35.00     13.7147   8.97829
   LEV               312    .02       7.69       .5406    .53590
Valid N (listwise)   312

Table A4. Statistics of educational background (source: authors'
calculations)

                         Frequency  Percent  Valid Percent  Cumulative
                                                            Percent

Valid  Otherwise          97         31.1     31.1           31.1
       Bisiness/Finance  215         68.9     68.9          100.0
       Total             312        100.0    100.0

Table A5. Statistics of the existence of risk monitoring committee
(source: authors' calculations)

                Frequency   Percent   Valid Percent   Cumulative
                                                      Percent

        No      265          84.9      84.9            84.9
Valid   Yes      47          15.1      15.1           100.0
        Total   312         100.0     100.0

Table A6. Statistics of external auditor quality (source: authors'
calculations)

                       Frequency   Percent   Valid Percent   Cumulative
                                                             Percent

        Non-Big Four   184          59.0      59.0            59.0
Valid   Big Four       128          41.0      41.0           100.0
        Total          312         100.0     100.0

Table A7. Statistics of firm status (source: authors' calculations)

                           Frequency  Percent  Valid Percent  Cumulative
                                                              Percent

        Otherwise          253         81.1     81.1           81.1
Valid   Foreign ownership   59         18.9     18.9          100.0
        Total              312        100.0    100.0

Table A8. Normality tests of residuals (source: authors' calculations)

                                            Unstandardized Residual
                           N                312

Normal Parameters (a,b)    Mean              .0000000
                           Std. Deviation    .10205451
                           Absolute          .042
Most Extreme Differences   Positive          .042
                           Negative         -.028
Test Statistic                               .042
Asymp. Sig. (2-tailed)                       .200 (c,d)

(a.) Test distribution is Normal.
(b.) Calculated from data.
(c.) Lilliefors Significance Correction
(d.) This is a lower bound of the true significance

Table A9. Collinearity Diagnostics (source: authors' calculations)

   Model       Collinearity Statistics
               Tolerance   VIF

1  (Constant)
   EDU         .973        1.028
   SAC         .819        1.221
   MAC         .880        1.136
   RMC         .847        1.181
   AUD         .874        1.144
   STS         .918        1.089
   AGE         .948        1.055
   LEV         .982        1.019

Dependent Variable: CRD

Table A10. Heteroscedasticity tests (source: authors' calculations)

   Model        Unstandardized      Standardized  t           Sig.
                Coefficients        Coefficients
                B       Std. Error  Beta

   (Constant)   -6.980  .991                      -7,044      .000
   EDU            .138  .288         .027               .478  .633
   SAC            .450  .311         .090              1.446  .149
   MAC           -.008  .020        -.024              -.393  .695
1  RMC            .533  .399         .082              1.335  .183
   AUD            .253  .286         .053               .886  .377
   STS           -.572  .350        -.096             -1.633  .103
   AGE           -.222  .143        -.089             -1.546  .123
   LEV           -.076  .248        -.017              -.305  .760

Table A11. Summary of tests (source: authors' calculations)

Model  R         R Square  Adjusted R Square  Std. Error of the
                                              Estimate

1      .474 (a)  .225      .205               .10339

Predictors: (Constant), LEV, MAC, AGE, EDU, AUD, STS, RMC, SAC

Table A12. Hypotheses testing (source: authors' calculations)

   Model       Unstandardized     Standardized  t       Sig.
               Coefficients       Coefficients
               B      Std. Error  Beta

1  (Constant)   .137  .044                       3.107  .002
   EDU          .000  .013         .001           .023  .981
   SAC          .031  .014         .126          2.246  .025
   MAC          .001  .001         .035           .652  .515
   RMC          .100  .018         .310          5.640  .000
   AUD          .033  .013         .139          2.568  .011
   STS         -.025  .016        -.085         -1.619  .107
   AGE         -.020  .006        -.165         -3.182  .002
   LEV          .012  .011         .056          1.100  .272

Dependent Variable: CRD

Table A12. Correlations matrix (source: authors' calculations)

                              EDU            SAC        MAC

EDU   Pearson Correlation      1               .001      .249 (**)
      Sig. (2-tailed)                          .990      .000
      N                      312            312       312

SAC   Pearson Correlation       .001          1         -.027
      Sig. (2-tailed)           .990                     .637
      N                      312            312       312
MAC   Pearson Correlation       .249 (**)     -.027     1
      Sig. (2-tailed)           .000           .637
      N                      312            312       312
RMC   Pearson Correlation       .170 (**)     -.025      .302 (**)
      Sig. (2-tailed)           .003           .655      .000
      N                      312            312       312
AUD   Pearson Correlation       .393 (**)     -.008      .319 (**)
      Sig. (2-tailed)           .000           .895      .000
      N                      312            312       312
STS   Pearson Correlation       .211 (**)      .110      .227 (**)
      Sig. (2-tailed)           .000           .053      .000
      N                      312            312       312
AGE   Pearson Correlation      -.100           .094      .038
      Sig. (2-tailed)           .079           .096      .498
      N                      312            312       312
LEV   Pearson Correlation      -.152 (**)      .030      .080
      Sig. (2-tailed)           .007           .603      .157
      N                      312            312       312
CRD   Pearson Correlation       .057           .069     -.017
      Sig. (2-tailed)           .316           .227      .760
      N                      312            312       312

                               RMC            AUD            STS

EDU   Pearson Correlation       .170 (**)      .393 (**)      .211 (**)
      Sig. (2-tailed)           .003           .000           .000
      N                      312            312            312

SAC   Pearson Correlation      -.025          -.008           .110
      Sig. (2-tailed)           .655           .895           .053
      N                      312            312            312
MAC   Pearson Correlation       .302 (**)      .319 (**)      .227 (**)
      Sig. (2-tailed)           .000           .000           .000
      N                      312            312            312
RMC   Pearson Correlation      1               .242 (**)      .124 (*)
      Sig. (2-tailed)                          .000           .028
      N                      312            312            312
AUD   Pearson Correlation       .242 (**)     1               .232 (**)
      Sig. (2-tailed)           .000                          .000
      N                      312            312            312
STS   Pearson Correlation       .124 (*)       .232 (**)     1
      Sig. (2-tailed)           .028           .000
      N                      312            312            312
AGE   Pearson Correlation      -.046          -.020           .180 (**)
      Sig. (2-tailed)           .416           .721           .001
      N                      312            312            312
LEV   Pearson Correlation      -.008           .008           .101
      Sig. (2-tailed)           .891           .887           .074
      N                      312            312            312
CRD   Pearson Correlation      -.013           .030          -.019
      Sig. (2-tailed)           .825           .600           .744
      N                      312            312            312

                               AGE            LEV            CRD

EDU   Pearson Correlation      -.100          -.152 (**)      .057
      Sig. (2-tailed)           .079           .007           .316
      N                      312            312            312

SAC   Pearson Correlation       .094           .030           .069
      Sig. (2-tailed)           .096           .603           .227
      N                      312            312            312
MAC   Pearson Correlation       .038           .080          -.017
      Sig. (2-tailed)           .498           .157           .760
      N                      312            312            312
RMC   Pearson Correlation      -.046          -.008          -.013
      Sig. (2-tailed)           .416           .891           .825
      N                      312            312            312
AUD   Pearson Correlation      -.020          .008            .030
      Sig. (2-tailed)           .721           .887           .600
      N                      312            312            312
STS   Pearson Correlation       .180 (**)      .101          -.019
      Sig. (2-tailed)           .001           .074           .744
      N                      312            312            312
AGE   Pearson Correlation      1               .194 (**)     -.072
      Sig. (2-tailed)                          .001           .206
      N                      312            312            312
LEV   Pearson Correlation       .194 (**)     1               .057
      Sig. (2-tailed)           .001                          .317
      N                      312            312            312
CRD   Pearson Correlation      -.072           .057          1
      Sig. (2-tailed)           .206           .317
      N                      312            312            312

(**). Correlation is significant at the 0.01 level (2-tailed).
(*). Correlation is significant at the 0.05 level (2-tailed).


Arfan AMRIN[iD]

Sekolah Tinggi Ilmu Ekonomi Muhammadiyah Palopo, Jend. Sudirman Street km. 3, Binturu, South Wara, Palopo, Indonesia

E-mails: arfan_amrin@stiem.ac.id; amrin.arfan021090@gmail.com

Received 04 October 2018; accepted 27 December 2018

https://doi.org/10.3846/btp.2019.04
Table 1. Sample selection (source: data processing)

No  Description                                 Total

1   Companies (non-financial sector) listed in  420
    Indonesia Stock Exchange (2014)
2   The company does not publish an annual       (8)
    report for the 2014 period
3   The company presents report does not end     (5)
    on December 31
4   Companies with incomplete data              (95)
Final Sample                                    312

Table 2. Risk disclosure items (source: Miihkinen 2013, Mokhtar and
Mellett 2013)

Financial risk                    Information processing and
 1. Commodity                     technology risk
 2. Going concern                 21. Integrity
 3. Capital cost                  22. Access
                                  23. Availability
Operational risk                  24. Infrastructure
 4. Customer satisfaction
 5. Product development           Integrity risk
 6. Efficiency and performance    25. Management and employee
 7. Sourcing                      fraud
 8. Stock obsolescence            26. Illegal actions
 9. Product and service failure   27. Reputation
10. Environmental                 28. Risk management policy
11. Health and safety             29. Risk management organization
12. Brande name erosion
13. Management process
14. Price fluctuation of the      Strategic risk
factor of production              30. Environmental scan
15. The interruption in the       31. Industry
delivery chain                    32. Bussines portfolio
                                  33. Competitors
Empowerment risk                  34. Pricing
16. Leadership and manage-        35. Valuation
ment                              36. Planning
17. Outsourcing                   37. Lifecycle
18. Performance incentives        38. Performance measurement
19. Change readiness              39. Regulatory
20. Communications                40. Sovereign and political

Table 3. Variables, acronyms, and measurement (source: authors'
modification)

Variables/Acronyms                Measurement

Educational background of         1 = Business/finance and
president director (EDU)          0 = Otherwise
Size of the audit committee       Number of audit committee
(SAC)                             member
The frequency of audit            Number of audit committee
committee meetings (MAC)          meetings
Risk monitoring/management        1 = There is a committee and
committee (RMC)                   0 = No
The quality of external auditor   1 = Big Four and
(AUD)                             0 = Otherwise
Status of the business entity     1 = Foreign ownership and
(STS)                             0 = Otherwise
Age of the business entity        LN listing age of the business
(AGE)                             entity
Leverage (LEV)                    Debt to asset ratio

Table 4. Descriptive statistics of risk disclosure (source: authors'
calculation)

Variable   N     Min    Mean   Median   Max    Std. Deviation

CRD        312   0.03   0.22   0.20     0.90   0.12

Note: all companies.

Table 5. Descriptive statistics of independent variables (source:
authors' calculation)

Variables   N     Min    Mean    Median   Max     Std.
                                                  Deviation

SAC         312   2.00    3.11    3.00     6.00   0.47
MAC         312   1.00    7.13    5.00    59.00   7.08
AGE         312   1.00   13.71   13.50    35.00   8.98
LEV         312   0.02    0.54    0.49     7.69   0.54

Notes: SAC is the size of the audit committee as measured by indicators
of a large number of audit committee within the company; MAC is the
frequency of audit committee meetings as measured by the frequency
number of meetings in a year; AGE is business entity age as measured by
indicators of the natural logarithm based on the listing in Indonesia
Stock Exchange on the date the company listed on the Stock Exchange,
December 31, 2014 (in years); and LEV is the level of leverage as
measured using debt to asset ratio.

Table 6. Statistics of nominal independent variables (source: authors'
calculation)

Variables                          Percentage
                                   of Sample

Educational background/expertise
of president
director (EDU):                    68.91
1. Business or financial           31.09
2. Otherwise
Risk monitoring/management
committee
(RMC):
1. There are Committee             15.06
2. No Committee                    84.94
External Auditor Quality (AUD):
1. Big Four                        41.03
2. Otherwise                       58.97
Firm status (STS):
1. Foreign ownership               18.91
2. Otherwise                       81.09

Notes: EDU is educational background measured by dummy 1 if the
president director has an educational background/expertise in business
or finance and 0 for otherwise; RMC is the existence of a risk
monitoring committee as measured with dummy 1 if there is a risk
monitoring committee within the company and 0 otherwise; AUD is the
quality of external auditors as measured by dummy 1 if the company in
this study audited by the accounting firm that affiliated with an
international accounting firm (Big Four) and 0 if otherwise; and STS is
the status of a business entity as measured by dummy 1 if the company
belonging to foreign ownership and 0 if otherwise

Table 7. Results of testing hypotheses (source: authors' calculation)

Variables                          Model (CRD)
            Prediction   Coefficient   Significance   Conclusion

Constants                 0.137        0.002 (**)
EDU          +            0.000        0.981 (**)     Not supported
SAC          +            0.031        0.025 (**)     Supported
MAC          +            0.001        0.515 (**)     Not supported
RMC          +            0.100        0.000 (**)     Supported
AUD          +            0.033        0.011 (**)     Supported
STS          +           -0.025        0.107 (**)     Not supported
AGE          -           -0.020        0.002 (**)     Supported
LEV          [+ or -]     0.012        0.272 (**)
[R.sup.2] = 0.225         Adjusted [R.sup.2] = 0.205
F Value = 10.998          F Significant = 0.000          N = 312

(**) Significant at the level of 0.01 and (*) Significant at the level
of 0.05
Notes: CRD is corporate risk disclosure; EDU is educational background
measured by dummy 1 if the president director has an educational
background/qualification in business or finance and 0 for otherwise;
SAC is audit committee size as measured by indicators of a large number
of audit committee within the company; MAC is the frequency of audit
committee meetings as measured by the number of frequency of audit
committee meetings in a year; RMC is the availability of a risk
monitoring committee as measured with dummy 1 if there is a risk
monitoring committee within the company and 0 otherwise; AUD is the
quality of an external auditor as measured by dummy 1 if the companies
audited by the accounting firm that affiliated with an international
accounting firm (Big Four) and 0 if otherwise; STS is the status of a
business entity as measured by dummy 1 if the companies belonging to
foreign ownership and 0 if otherwise; AGE is age of a business entity
as measured by indicators of the natural logarithm based on the listing
in Indonesia Stock Exchange on the date, the company listed in
Indonesia Stock Exchange, December 31, 2014 (in years); and LEV is the
level of leverage as measured by debt to asset ratio.

Table 8. Sensitivity analysis (source: authors' calculation)

Variable        Prediction     Manufacturing        Non-manufacturing
                                    CRD                 CRD
                             Coef       Sig         Coef     Sig

Constants                     0.285     0.000 (**)   0.067   0.248 (**)
  EDU           +            -0.017     0.354 (**)   0.004   0.835 (**)
  SAC           +             0.001     0.975 (**)   0.047   0.013 (**)
  MAC           +            -0.000     0.971 (**)   0.001   0.642 (**)
  RMC           +             0.119     0.000 (**)   0.086   0.000 (**)
  AUD           +             0.017     0.326 (**)   0.048   0.005 (**)
  STS           +            -0.016     0.371 (**)  -0.011   0.633 (**)
  AGE           -            -0.034     0.000 (**)  -0.012   0.181 (**)
  LEV           [+ or -]      0.001     0.972 (**)   0.015   0.251 (**)
[R.sup.2]                     0.286     0.223
Adjusted                      0.223     0.192
[R.sup.2]
F Value                       4.546     7.283
F Significant                 0.000     0.000
N                           100       212

(**) Significant at the level of 0.01 and * Significant at the level of
0.05
Notes: CRD is corporate risk disclosure; EDU is educational background
measured by dummy 1 if the president director has an educational
background/qualification in business or finance and 0 for otherwise;
SAC is audit committee size as measured by indicators of a large number
of audit committee within the company; MAC is the frequency of audit
committee meetings as measured by the number of frequency of audit
committee meetings in a year; RMC is the availability of a risk
monitoring committee as measured with dummy 1 if there is a risk
monitoring committee within the company and 0 otherwise; AUD is the
quality of an external auditor as measured by dummy 1 if the companies
audited by the accounting firm that affiliated with an international
accounting firm (Big Four) and 0 if otherwise; STS is the status of a
business entity as measured by dummy 1 if the companies belonging to
foreign ownership and 0 if otherwise; AGE is age of a business entity
as measured by indicators of the natural logarithm based on the listing
in Indonesia Stock Exchange on the date, the company listed in
Indonesia Stock Exchange, December 31, 2014 (in years); and LEV is the
level of leverage as measured by debt to asset ratio.


Please Note: Illustration(s) are not available due to copyright restrictions.
COPYRIGHT 2019 Vilnius Gediminas Technical University
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2019 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Author:Amrin, Arfan
Publication:Business: Theory and Practice
Article Type:Report
Date:Jan 1, 2019
Words:15787
Previous Article:INFLUENCE OF ECOLOGICAL PROTECTION ON THE CORPORATE IMAGE OF OIL AND GAS FIRMS IN NIGERIA.
Next Article:A QUALITATIVE STUDY ON LEARNING ORGANIZATION AS AN ESSENTIAL ACTION LOWERING SKILL MISMATCH EFFECTS.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters