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2021 | OriginalPaper | Chapter

9. Analyzing Corporate Governance Disclosures in Type II Agency Problems in Indonesia

Authors : Martin Mulyadi, Yunita Anwar

Published in: Auditing Ecosystem and Strategic Accounting in the Digital Era

Publisher: Springer International Publishing

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Abstract

This research investigates the corporate governance disclosure behavior of Indonesian corporations, specifically those with type II agency problems. Poor corporate governance practices in family and government corporations have been attributed as the primary cause of the 1990s Asian financial crisis in Indonesia. Prior research also cited unique governance structures in most Asian countries, including Indonesia. Agency theory refers to these corporations as corporations with type II agency problems. Using agency theory, this research analyzes corporate governance disclosure of the top 100 Indonesian publicly listed family and government corporations. The UNCTAD corporate governance disclosures benchmark was used in the analysis of the disclosures. All disclosures in the annual reports were categorised using this list, i.e., whether the disclosure was present or absent in each list. To extend the analysis, this research also considers the nature of those disclosures (mandatory and voluntary). The first part of this research documents the corporate governance disclosures in the Indonesian family and government corporations. The second part analyzes whether type II agency problems are influential on corporate governance disclosures in Indonesia. This research reveals that government corporations disclose more information than family corporations. This research provides a starting point for the analysis of corporate governance disclosures in corporations with type II agency problems in Indonesia. Future research may consider doing a longitudinal analysis of these disclosures and may also consider to include multivariate regression analysis by including agency-problems variable to analyze whether those variables are influential on corporate governance disclosures in Indonesia.

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Title: Analyzing Corporate Governance Disclosures in Type II Agency Problems in Indonesia
Authors: Martin Mulyadi
Yunita Anwar
Publisher: Springer International Publishing
Book: Auditing Ecosystem and Strategic Accounting in the Digital Era
Print ISBN: 978-3-030-72627-0

Electronic ISBN: 978-3-030-72628-7

Copyright Year: 2021
DOI: https://doi.org/10.1007/978-3-030-72628-7_9

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