Volume 4, Issue 1, March 2019, Page: 24-33
Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence
Krismiaji, Department of Accounting, Accounting Academy of YKPN, Yogyakarta, Indonesia
Surifah, Department of Economic and Business, Yogyakarta Technology University, Yogyakarta, Indonesia
Received: Feb. 21, 2019;       Accepted: Apr. 4, 2019;       Published: May 6, 2019
DOI: 10.11648/j.ijafrm.20190401.13      View  22      Downloads  13
This paper describes empirical research which investigateshow corporate governance (CG) affects the compliance level of disclosure for International Financial Reporting Standards (IFRS) in 2013 and 2014, the two yearsafter full IFRS adoption. The CGis proxy by the board’s structure, characteristics of an audit committee, and shares ownership structure, whereas IFRS disclosure’s level of compliance is measured by disclosure index. This research uses ordinary least square to investigate the effect of corporate governance on the level of IFRS disclosurecompliance along with profitability, industry, and leverage as control variables. This research finds that five elements of CG characteristics which are board’s independence, board’s size, audit committee’sindependence, audit committee’s size, and management’s ownershippositively affect the level of IFRS disclosurecompliance. Yet, the block holder’s ownership negatively affects the compliance level of IFRS disclosure, whereas government ownershipdoes not affect the compliance level of IFRS disclosure. This study provides additional evidence about the association of CG and the level of IFRS disclosure compliance by using Indonesian data. Furthermore, involvingfive elements of corporate governance mechanisms, this study provide additional finding about corporate governance comprehensively. Finally, this research provides values for all users of information including standard setters and other regulators to enhance reporting quality standards in Indonesia.
CG Characteristics, IFRS Disclosure, Level of Compliance
To cite this article
Krismiaji, Surifah, Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence, International Journal of Accounting, Finance and Risk Management. Vol. 4, No. 1, 2019, pp. 24-33. doi: 10.11648/j.ijafrm.20190401.13
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