The Analysis of the Effect of Corporate Governance on Corporate Risk Disclosure

According to agency theory as the theoretical framework, this study investigates the influences of corporate governance attributes (including the proportion of the independent commissioners, the board of commissioners’ size, managerial ownership, the existence of risk oversight committee, and the board of commissioners and audit committee meeting frequency) on corporate risk disclosure with firm performance as controlling variable. This study analyzes 126 annual reports of manufacturing companies listed in the Indonesia Stock Exchange (IDX) from 2018 to 2019. The unweighted disclosure index approach is applied to quantify corporate risk disclosure by adapting the risk items checklist developed by Mokhtar and Mellett (2013). To prove the hypotheses, this study employs the multiple regression analysis method. The results point out that the board of commissioners’ size, managerial ownership, risk oversight committee, and board of commissioners meeting frequency are all significantly positive associated to corporate risk disclosure, while the proportion of the independent commissioners, audit committee meeting frequency, and firm performance as the control variable do not affect corporate risk disclosure