THE STAKEHOLDERS INFLUENCE ON RISK DISCLOSURE OF STATE-OWNED ENTERPRISES

Abstract The objective of this paper is to examine the influence of the stakeholders on the risk disclosure of the state owned enterprises. Secondary data were sourced from the annual report of 14 sample state owned enterprises taken from the Indonesia Stock Market over 2010-2019 and the Indonesian Ministry of State Enterprises. Regression analysis was applied to test the stakeholders' influence on the state owned enterprises' disclosure. This research uses quantitative method and regression analysis to find that geographic diversification, leverage, and rating announcements issued by the rating agency significantly affect the risk disclosure of state-owned enterprises. This research contributes to the policy.  

[1]  Shuibin Gu,et al.  Firm performance and annual report readability , 2020, Journal of Economics, Business & Accountancy.

[2]  Bora Aktan,et al.  The impact of credit ratings on capital structure , 2019 .

[3]  Indri Dwi Apriliyanti,et al.  Between Politics and Business: Boardroom Decision Making in State‐Owned Indonesian Enterprises , 2019, Corporate Governance: An International Review.

[4]  Emad Sayed Abd Elghaffar,et al.  Determining factors that affect risk disclosure level in Egyptian banks , 2019, Banks and Bank Systems.

[5]  Ahmed Imran Hunjra,et al.  The Impact of Corporate Diversification and Financial Structure on Firm Performance: Evidence from South Asian Countries , 2019, Journal of Risk and Financial Management.

[6]  Seedwell T. M. Sithole,et al.  Graphical and Textual Presentations in Financial Reports , 2017 .

[7]  Tamer Elshandidy,et al.  Risk Disclosures, International Orientation, and Share Price Informativeness: Evidence from China , 2017, SSRN Electronic Journal.

[8]  Samantha Miles.  Stakeholder Theory Classification, Definitions and Essential Contestability , 2017 .

[9]  C. Ntim.  Governance and Risk Disclosure Practices in UK Higher Education Institutions in an Era of Austerity and Reform , 2016 .

[10]  R. Abratt,et al.  Defining and Identifying Stakeholders: Views from Management and Stakeholders , 2016 .

[11]  Alexandros Garefalakis,et al.  HOW NARRATIVE REPORTING CHANGED THE BUSINESS WORLD: PROVIDING A NEW MEASUREMENT TOOL , 2016 .

[12]  Yanuar Andrianto,et al.  A Testing of Efficient Markets Hypothesis in Indonesia Stock Market , 2016 .

[13]  M. Salehi,et al.  A Study of Impact of Ownership Structure and Disclosure Quality on Information Asymmetry in Iran , 2016 .

[14]  K. Hussainey,et al.  The board's role in risk disclosure: an exploratory study of Italian listed state-owned enterprises , 2016 .

[15]  K. Hussainey,et al.  The association between risk disclosure and firm characteristics: a meta-analysis , 2016 .

[16]  Tamer Elshandidy,et al.  Corporate Governance, Risk Disclosure Practices, and Market Liquidity: Comparative Evidence from the UK and Italy , 2015 .

[17]  Dorsaf Azouz Ghachem.  The Determinants of Rating Announcements Impact on Stock Markets during Crisis Periods: The Case of the 2008 Worldwide Financial Crisis , 2015 .

[18]  Manisha Singal.  Firm Credit Rating as a Measure of Organizational and Financial Performance , 2013 .

[19]  Antti Miihkinen,et al.  The Usefulness of Firm Risk Disclosures under Different Firm Riskiness, Investor Interest, and Market Conditions? New Evidence from Finland , 2013 .

[20]  Russell Craig,et al.  Risk-related Disclosures by Non-finance Companies: Portuguese Practices and Discloser Characteristics , 2012 .

[21]  S. Kothari,et al.  The Effect of Disclosures by Management, Analysts, and Business Press on Cost of Capital, Return Volatility, and Analyst Forecasts: A Study Using Content Analysis , 2009 .

[22]  A. Amran,et al.  Risk reporting: An exploratory study on risk management disclosure in Malaysian annual reports , 2008 .

[23]  P. Linsley,et al.  Risk reporting by the largest UK companies: readability and lack of obfuscation , 2007 .

[24]  Philip J. Shrives,et al.  Risk reporting: A study of risk disclosures in the annual reports of UK companies , 2006 .

[25]  B. Menguc,et al.  Stakeholder Multiplicity: Toward an Understanding of the Interactions between Stakeholders , 2006 .

[26]  Peter D. Wysocki,et al.  Do Managers Withhold Bad News? , 2005 .

[27]  Philip J. Shrives,et al.  Examining risk reporting in UK public companies , 2005 .

[28]  M. Joseph Sirgy,et al.  Measuring Corporate Performance by Building on the Stakeholders Model of Business Ethics , 2002 .

[29]  Philip J. Shrives,et al.  Risk management and reporting risk in the UK , 2000 .

[30]  W. Crombie,et al.  Negative Messages as Strategic Communication: A Case Study of a New Zealand Company's Annual Executive Letter , 1999 .

[31]  Ronald K. Mitchell,et al.  Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of who and What Really Counts , 1997 .

[32]  R. E. Freeman,et al.  Stockholders and Stakeholders: A New Perspective on Corporate Governance , 1983 .

[33]  Isabelle Boutet,et al.  Emojis influence emotional communication, social attributions, and information processing , 2021, Comput. Hum. Behav..

[34]  Luca Ferri,et al.  Determinants of financial instruments risk disclosure: An empirical analysis in the banking sector , 2020, Corporate Ownership and Control.

[35]  Qingyu Guo.  Rhetoric in financial reporting: evaluation of ISA 720 , 2018 .

[36]  P. Linsley,et al.  Understanding risk disclosures as a function of social organisation: A neo-Durkheimian institutional theory-based study of Burmah Oil Company 1971–1976 , 2017 .

[37]  Davide,et al.  Assessing Disclosure Quality: A Methodological Issue , 2015 .

[38]  Erlend Haugland.  Risk disclosure in the annual reports of public companies , 2015 .

[39]  Sergio Beretta,et al.  A framework for the analysis of firm risk communication , 2004 .