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

Dwi Linda Rahmawati, Khusnul Prasetyo

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1 Citation (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)512-525
Number of pages14
JournalInternational Journal of Innovation, Creativity and Change
Volume13
Issue number4
Publication statusPublished - 2020

Keywords

  • Auditor reputation
  • Enterprise risk management
  • Firm size
  • Leverage
  • Liquidity
  • Managerial ownership
  • Risk management committee
  • The proportion of independent board of commissioners

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