Main Article Content
Abstract
The study aims to examine the influence of corporate governance structure that includes ownership structure, board of directors’ size, board of commissioner’s size, and audit firm type to the Islamic voluntary disclosure (IVD) in the Indonesian sharia-compliant companies listed on Jakarta Islamic Index 70 (JII70). Voluntary disclosure in this study is measured using the Islamic disclosure index. This study analyses the data using multiple regression. The results show that the board of directors’ size significantly positively affects Islamic voluntary disclosure, while the ownership structure, type of audit firm and board of commissioners' size do not significantly affect the extent of Islamic voluntary disclosure. These results imply that voluntary disclosure is very dependent on the will of internal parties. The board of directors can encourage wider disclosure, especially in sharia aspects, thereby further emphasizing its status as a sharia compliance company.
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References
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- Akhtaruddin, M., & Haron, H. (2010). Board ownership, audit committees’ effectiveness, and corporate voluntary disclosures. Asian Review of Accounting, 18(3), 245–259. https://doi.org/10.1108/13217341011089649
- Braam, G., & Borghans, L. (2014). Board and auditor interlocks and voluntary disclosure in annual reports. Journal of Financial Reporting and Accounting, 12(2), 135–160. https://doi.org/10.1108/JFRA-11-2012-0054
- Chaudhary, P. (2022). Agency costs, board structure and institutional investors: case of India. Asian Journal of Accounting Research, 7(1), 44–58. https://doi.org/10.1108/ajar-12-2020-0130
- Digdowiseiso, K., Subiyanto, B., & Setioningsih, R. (2022). What drives environmental disclosure? evidence from mining companies listed on the Indonesia stock exchange. International Journal of Energy Economics and Policy, 12(4), 32–39. https://doi.org/10.32479/ijeep.13170
- El-Diftar, D., Jones, E., Ragheb, M., & Soliman, M. (2017). Institutional investors and voluntary disclosure and transparency: the case of Egypt. Corporate Governance (Bingley), 17(1), 134–151. https://doi.org/10.1108/CG-05-2016-0112
- Elfeky, M. I. (2017). The extent of voluntary disclosure and its determinants in emerging markets: evidence from Egypt. The Journal of Finance and Data Science, 3(1–4), 45–59. https://doi.org/10.1016/j.jfds.2017.09.005
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- Hafidzi, A. H. (2019). The effect of commissioners board size and committee board size on disclosure of corporate social responsibility (CSR). AGREGAT: Jurnal Ekonomi Dan Bisnis, 3(1), 65–80. https://doi.org/10.22236/agregat
- Haji, A. A., & Ghazali, N. A. M. (2013). The quality and determinants of voluntary disclosures in annual reports of shari’ah compliant companies in Malaysia. Humanomics, 29(1), 24–42. https://doi.org/10.1108/08288661311299303
- Harvidiyan, I., & Dianawati, W. (2020). The effect of share ownership structure, board of commissioner size, and audit committee size on corporate social responsibility disclosure. International Journal of Innovation, Creativity and Change. Www.Ijicc.Net, 13(4), 2020. Retrieved from : https://www.ijicc.net/images/vol_13/Iss_4/13453_Harvidiyan_2020_E_R.pdf
- Hermawan, M. S., & Mulyawan, S. G. (2014). Profitability and corporate social responsibility : an analysis of Indonesia’s listed company. Asia Pasific Journal of Accounting and Finance, 3(1), 15–31. Retrieved from : https://ssrn.com/abstract=2292394
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- Karagül, A. A., Ph, D., & Smith-, A. (2010). Impact of board characteristics and ownership structure on voluntary disclosure : evidence from Turkey. DisClosure, 1–23.
- Nanda, A. P., & Nahumury, J. (2018). The effect of financial performance, board of commissioners, blockholder ownership, auditor type and firm age on voluntary disclosure. The Indonesian Accounting Review, 8(2), 145–161. https://doi.org/10.14414/tiar.v8i2.1525
- Nindiasari, A. D. (2021). Good corporate governance practices and voluntary disclosure in companies listed in the Indonesia Sharia Stock Index (ISSI). Asian Journal of Islamic Management (AJIM), 3(1), 45–55. https://doi.org/10.1108/AJIM.vol3.iss1.art5
- Nugraheni, P., Alhabshi, S. M. S. J., & Rosman, R. (2022). Board of commissioners and corporate governance disclosure in sharia-compliant companies in Indonesia. Jurnal Akuntansi Dan Auditing Indonesia, 26(1), 33–40. https://doi.org/10.20885/jaai.vol26.iss1.art4
- Nugraheni, P., & Anuar, H. A. (2014a). Implications of shariah on the voluntary disclosure of Indonesian listed companies. Journal of Financial Reporting and Accounting, 12(1), 77–98. https://doi.org/10.1108/JFRA-11-2011-0018
- Nugraheni, P., & Anuar, H. A. (2014b). Implications of shariah on the voluntary disclosure of Indonesian listed companies. Journal of Financial Reporting and Accounting, 12(1), 76–98. https://doi.org/10.1108/jfra-11-2011-0018
- Nuswantara, D. A., & Pramesti, D. A. (2020). Corporate social responsibility regulation in the Indonesian mining companies. Journal of Asian Finance, Economics, and Business, 7(10), 161–169. https://doi.org/10.13106/jafeb.2020.vol7.no10.161
- Othman, R., & Thani, A. M. (2010). Islamic social reporting of listed companies in Malaysia. International Business &Economic Research Journal, 9(4), 135–144. Retrieved from : https://www.proquest.com/docview/193980080?sourcetype=Scholarly%20Journals
- usama, a. a., & Fatima, A. H. (2010). Voluntary disclosure by shariah approved companies: an exploratory study. Journal of Financial Reporting and Accounting, 8(1), 35–49. https://doi.org/10.1108/19852511011055943
- Purbawangsa, I. B. A., Solimun, S., Fernandes, A. A. R., & Mangesti Rahayu, S. (2020). Corporate governance, corporate profitability toward corporate social responsibility disclosure and corporate value (comparative study in Indonesia, China and India stock exchange in 2013-2016). Social Responsibility Journal, 16(7), 983–999. https://doi.org/10.1108/SRJ-08-2017-0160
- Qa’dan, M. B., & Suwaidan, M. S. (2019). Board composition, ownership structure and corporate social responsibility disclosure: the case of Jordan. Social Responsibility Journal, 15(1), 28–46. https://doi.org/10.1108/SRJ-11-2017-0225
- Ratnawati, K. (2019). Board size and gender diversity on boardrooms and its impact of corporate risk taking: evidence from Indonesia. Asia Pacific Management and Business Application, 008(02), 145–164. https://doi.org/10.21776/ub.apmba.2019.008.02.6
- Salehi, M., Tarighi, H., & Rezanezhad, M. (2017). The relationship between board of directors’ structure and company ownership with corporate social responsiblity disclosure: Iranian angle. Humanomics, 33(4), 398–418. https://doi.org/10.1108/H-02-2017-0022
- Serly, V., & Zulvia, Y. (2019). Corporate governance and ownership structure: it’s implication on agency cost (a study in indonesia manufacturing company). Third International Conference on Economic Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA), 29–39. doi: 10.2991/piceeba-19.2019.4
- Utama, C. A., Utama, S., & Amarullah, F. (2017). Corporate governance and ownership structure: Indonesia evidence. Corporate Governance (Bingley), 17(2), 165–191. https://doi.org/10.1108/CG-12-2015-0171
- Vitolla, F., Raimo, N., & Rubino, M. (2020). Board characteristics and integrated reporting quality: an agency theory perspective. Corporate Social Responsibility and Environmental Management, 27(2), 1152–1163. https://doi.org/10.1002/csr.1879
- Zamil, I. A., Ramakrishnan, S., Jamal, N. M., Hatif, M. A., & Khatib, S. F. A. (2021). Drivers of corporate voluntary disclosure: a systematic review. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-04-2021-0110
References
Adnan, M., Fithriady, F., Marwiyati, M., & Rahmi, R. (2023). Modeling islamic social reporting in the Indonesian capital market. Share: Jurnal Ekonomi Dan Keuangan Islam, 12(1), 225. https://doi.org/10.22373/share.v12i1.17436
Agyei-Mensah, B. K. (2019). The effect of audit committee effectiveness and audit quality on corporate voluntary disclosure quality. African Journal of Economic and Management Studies, 10(1), 17–31. https://doi.org/10.1108/AJEMS-04-2018-0102
Akhtaruddin, M., & Haron, H. (2010). Board ownership, audit committees’ effectiveness, and corporate voluntary disclosures. Asian Review of Accounting, 18(3), 245–259. https://doi.org/10.1108/13217341011089649
Braam, G., & Borghans, L. (2014). Board and auditor interlocks and voluntary disclosure in annual reports. Journal of Financial Reporting and Accounting, 12(2), 135–160. https://doi.org/10.1108/JFRA-11-2012-0054
Chaudhary, P. (2022). Agency costs, board structure and institutional investors: case of India. Asian Journal of Accounting Research, 7(1), 44–58. https://doi.org/10.1108/ajar-12-2020-0130
Digdowiseiso, K., Subiyanto, B., & Setioningsih, R. (2022). What drives environmental disclosure? evidence from mining companies listed on the Indonesia stock exchange. International Journal of Energy Economics and Policy, 12(4), 32–39. https://doi.org/10.32479/ijeep.13170
El-Diftar, D., Jones, E., Ragheb, M., & Soliman, M. (2017). Institutional investors and voluntary disclosure and transparency: the case of Egypt. Corporate Governance (Bingley), 17(1), 134–151. https://doi.org/10.1108/CG-05-2016-0112
Elfeky, M. I. (2017). The extent of voluntary disclosure and its determinants in emerging markets: evidence from Egypt. The Journal of Finance and Data Science, 3(1–4), 45–59. https://doi.org/10.1016/j.jfds.2017.09.005
FSA. (2020). Laporan Perkembangan Keuangan Syariah Indonesia 2019 (Report of Indonesian Islamic Financial Development 2019). https://ojk.go.id/id/kanal/syariah/data-dan-statistik/laporan-perkembangan-keuangan-syariah-indonesia/Documents/LAPORAN PERKEMBANGAN KEUANGAN SYARIAH INDONESIA 2019.pdf
Habbash, M., Hussainey, K., & Awad, A. E. (2016). The determinants of voluntary disclosure in Saudi Arabia: an empirical study. International Journal of Accounting, Auditing and Performance Evaluation, 12(3), 213–236. https://doi.org/10.1504/IJAAPE.2016.077890
Hafidzi, A. H. (2019). The effect of commissioners board size and committee board size on disclosure of corporate social responsibility (CSR). AGREGAT: Jurnal Ekonomi Dan Bisnis, 3(1), 65–80. https://doi.org/10.22236/agregat
Haji, A. A., & Ghazali, N. A. M. (2013). The quality and determinants of voluntary disclosures in annual reports of shari’ah compliant companies in Malaysia. Humanomics, 29(1), 24–42. https://doi.org/10.1108/08288661311299303
Harvidiyan, I., & Dianawati, W. (2020). The effect of share ownership structure, board of commissioner size, and audit committee size on corporate social responsibility disclosure. International Journal of Innovation, Creativity and Change. Www.Ijicc.Net, 13(4), 2020. Retrieved from : https://www.ijicc.net/images/vol_13/Iss_4/13453_Harvidiyan_2020_E_R.pdf
Hermawan, M. S., & Mulyawan, S. G. (2014). Profitability and corporate social responsibility : an analysis of Indonesia’s listed company. Asia Pasific Journal of Accounting and Finance, 3(1), 15–31. Retrieved from : https://ssrn.com/abstract=2292394
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm : managerial behavior , agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. Retrieved from : https://www.taylorfrancis.com/chapters/edit/10.4324/9781315191157-9/theory-firm-managerial-behavior-agency-costs-ownership-structure-michael-jensen-william-meckling
Karagül, A. A., Ph, D., & Smith-, A. (2010). Impact of board characteristics and ownership structure on voluntary disclosure : evidence from Turkey. DisClosure, 1–23.
Nanda, A. P., & Nahumury, J. (2018). The effect of financial performance, board of commissioners, blockholder ownership, auditor type and firm age on voluntary disclosure. The Indonesian Accounting Review, 8(2), 145–161. https://doi.org/10.14414/tiar.v8i2.1525
Nindiasari, A. D. (2021). Good corporate governance practices and voluntary disclosure in companies listed in the Indonesia Sharia Stock Index (ISSI). Asian Journal of Islamic Management (AJIM), 3(1), 45–55. https://doi.org/10.1108/AJIM.vol3.iss1.art5
Nugraheni, P., Alhabshi, S. M. S. J., & Rosman, R. (2022). Board of commissioners and corporate governance disclosure in sharia-compliant companies in Indonesia. Jurnal Akuntansi Dan Auditing Indonesia, 26(1), 33–40. https://doi.org/10.20885/jaai.vol26.iss1.art4
Nugraheni, P., & Anuar, H. A. (2014a). Implications of shariah on the voluntary disclosure of Indonesian listed companies. Journal of Financial Reporting and Accounting, 12(1), 77–98. https://doi.org/10.1108/JFRA-11-2011-0018
Nugraheni, P., & Anuar, H. A. (2014b). Implications of shariah on the voluntary disclosure of Indonesian listed companies. Journal of Financial Reporting and Accounting, 12(1), 76–98. https://doi.org/10.1108/jfra-11-2011-0018
Nuswantara, D. A., & Pramesti, D. A. (2020). Corporate social responsibility regulation in the Indonesian mining companies. Journal of Asian Finance, Economics, and Business, 7(10), 161–169. https://doi.org/10.13106/jafeb.2020.vol7.no10.161
Othman, R., & Thani, A. M. (2010). Islamic social reporting of listed companies in Malaysia. International Business &Economic Research Journal, 9(4), 135–144. Retrieved from : https://www.proquest.com/docview/193980080?sourcetype=Scholarly%20Journals
usama, a. a., & Fatima, A. H. (2010). Voluntary disclosure by shariah approved companies: an exploratory study. Journal of Financial Reporting and Accounting, 8(1), 35–49. https://doi.org/10.1108/19852511011055943
Purbawangsa, I. B. A., Solimun, S., Fernandes, A. A. R., & Mangesti Rahayu, S. (2020). Corporate governance, corporate profitability toward corporate social responsibility disclosure and corporate value (comparative study in Indonesia, China and India stock exchange in 2013-2016). Social Responsibility Journal, 16(7), 983–999. https://doi.org/10.1108/SRJ-08-2017-0160
Qa’dan, M. B., & Suwaidan, M. S. (2019). Board composition, ownership structure and corporate social responsibility disclosure: the case of Jordan. Social Responsibility Journal, 15(1), 28–46. https://doi.org/10.1108/SRJ-11-2017-0225
Ratnawati, K. (2019). Board size and gender diversity on boardrooms and its impact of corporate risk taking: evidence from Indonesia. Asia Pacific Management and Business Application, 008(02), 145–164. https://doi.org/10.21776/ub.apmba.2019.008.02.6
Salehi, M., Tarighi, H., & Rezanezhad, M. (2017). The relationship between board of directors’ structure and company ownership with corporate social responsiblity disclosure: Iranian angle. Humanomics, 33(4), 398–418. https://doi.org/10.1108/H-02-2017-0022
Serly, V., & Zulvia, Y. (2019). Corporate governance and ownership structure: it’s implication on agency cost (a study in indonesia manufacturing company). Third International Conference on Economic Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA), 29–39. doi: 10.2991/piceeba-19.2019.4
Utama, C. A., Utama, S., & Amarullah, F. (2017). Corporate governance and ownership structure: Indonesia evidence. Corporate Governance (Bingley), 17(2), 165–191. https://doi.org/10.1108/CG-12-2015-0171
Vitolla, F., Raimo, N., & Rubino, M. (2020). Board characteristics and integrated reporting quality: an agency theory perspective. Corporate Social Responsibility and Environmental Management, 27(2), 1152–1163. https://doi.org/10.1002/csr.1879
Zamil, I. A., Ramakrishnan, S., Jamal, N. M., Hatif, M. A., & Khatib, S. F. A. (2021). Drivers of corporate voluntary disclosure: a systematic review. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-04-2021-0110