Risk management disclosure of banking companies in Indonesia: The role of company characteristics, corporate governance, and ownership structure

Abstract

This study aims to determine whether company characteristics, corporate governance, and ownership structure affect risk management disclosure in banking companies in Indonesia. This study uses a sample of 90 banking companies selected using the purposive sampling method for 3 years of observation, namely 2020-2022. Based on multiple linear regression analysis, it is concluded that company size and independent commissioners have a significant positive effect on risk management disclosure. Managerial ownership actually has a significant negative effect on risk management disclosure, which means that the results of this study are contrary to the hypothesis that managerial ownership is suspected of having a positive effect on risk management disclosure. Meanwhile, leverage, profitability, external auditor quality, and public ownership do not have a significant effect on risk management disclosure. The results of this study contribute to investors to provide information about various risks that can have good or bad impacts on banking companies so that they can help make more informed decisions.