OWNERSHIP, CORPORATE GOVERNANCE AND MANDATORY TAX DISCLOSURE INFLUENCING VOLUNTARY FINANCIAL DISCLOSURE IN INDONESIA

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Abstract

This study examines the impact of ownership, corporate governance and mandatory tax disclosure on voluntary financial disclosure in Indonesia using 102 Indonesian listed companies in the period of 2009 to 2012, a total sample is 408 annual reports. The results show that proportion of independent director, managerial ownership, institutional ownership, foreign ownership and mandatory tax disclosure are assosiated with voluntary financial disclosure. Analysis reveals a moderate level of 59,90% score of disclosure in the period of 2009 to 2012 in Indonesian listed companies. Statistical analysis shows that the lowest disclosure score is in 2009 with the “Projected Information” as the subcategory of the disclosure. The highest voluntary financial disclosure is in 2012 with the “stock price information” as the subcategory of the disclosure. This study implies that ownership, corporate governance and mandatory tax disclosure are the key factors to explain communicating companies’ voluntary financial disclosures.

Keywords: Voluntary Financial Disclosure, Ownership, Corporate Governance, Mandatory Mandatory Tax Disclosure, Indonesia

How to cite this paper: Probohudono, A.N., Sudaryono, E.A., Sumarta, N.H., Ardilas, Y. (2015). Ownership, corporate governance and mandatory tax disclosure influencing voluntary financial disclosure in Indonesia. Corporate Ownership & Control, 13(1), 74-83. https://doi.org/10.22495/cocv13i1p8