Corporate governance structure, firm characteristics and voluntary disclosure: The case of Indonesian sharia compliant companies

Abstract

The aim of the study is to examine the influence of corporate governance structure that include 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 Islamic disclosure index. This study analyses the data using multiple regression. The results show that board of directors’ size has asignificant positive effect to the Islamic voluntary disclosure, while the ownership structure, type of audit firm and board of commissioner’s size are not significantly affecting the extent of Islamic voluntary disclosure. These results have the implication 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.