Determinants on the extent of enterprise risk management (ERM) disclosure in annual reporting: An Indonesian study

This study aims to analyse factors that determine the extent of Enterprise Risk Management (ERM) disclosure in a company's annual report. This study analysed manufacturing companies listed on the Indonesian Stock Exchange for the years 2015-2018. Using linear regression analysis, we found that Risk Management Committee (RMC) and managerial ownership had a significant relationship with the extent of ERM disclosure. However, the proportion of independent board of commissioners, auditor reputation, liquidity and leverage does not relate to the extent of ERM disclosure in a company's annual report. This study implies that companies that want extensive disclosure about Enterprise Risk Management can do so by forming Risk Management Committees and increase managerial ownership in the company.