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Faculty Research
THE DETERMINANTS OF RISK DISCLOSURE IN THE INDONESIAN NON-LISTED BANKS
| Detail | |
|---|---|
| Author | FITRI EKA SETYO RINI |
| ID | 202.720.047 |
| Published Date | 01-01-1900 |
Abstract
-Purpose - The aim of this research is to investigate the determinants of risk disclosure in annual report of the Indonesian non-listed banks. Methodology – The paper explains the extent of risk disclosure of 88 non-listed banks' annual report which were collected from 2008 to 2012. To investigate the determinant which drive non-listed banks to report risk, this study examined the relationship between banks' characteristics (size, liquidity, profitability, leverage, and earnings reinvestment) and risk diclosure. Risk disclosure was measured by number of Indonesian risk keyword divided by number of Indonesian sentences in annual report. Findings – Risk disclosure showed an upward trend. Leverage has a negative association with risk disclosure. Aggregated firm characteristics did not affect non-listed banks to disclosure their risk. Research limitations – The study was focused on annual report only. A very limited literature and no previous studies employed earnings reinvestment. This is the first study measured risk disclosure by using Indonesian risk keyword. Practical implications – The Indonesian risk keyword have been used to explore the risk disclosure in the Indonesian non-listed banks. This result constructs a new method for measuring risk disclosure; to enrich the literature to agency, signalling and divident theories. Keywords: disclosure, earnings reinvestment, risk keyword, non-listed banks.