THE DETERMINANTS OF VOLUNTARY DISCLOSURE IN INDONESIA: A LITERATURE STUDY
Main Article Content
Syamsudin
Khairul Saleh L. Tobing
Ria
Kumba Digdowiseiso
This study focuses on the exploration of voluntary disclosure, which refers to the practice of companies willingly sharing financial information with stakeholders. Scholars conducted a comprehensive analysis of existing literature to identify the main factors that affect this voluntary sharing of information. Four crucial factors have been identified as major catalysts for voluntary disclosure. Firstly, the size of a company is a significant factor, as larger companies are more likely to engage in extensive disclosure due to their ample resources and the need for transparency, particularly in complex business operations. Secondly, the importance of profitability cannot be overstated, as companies that are profitable are more likely to reveal information in order to enhance their reputation and build trust with investors and creditors. Thirdly, the degree of leverage, which indicates the extent to which a company relies on borrowed funds, can discourage the voluntary release of information. This is because high leverage increases financial risk, leading to a more cautious attitude towards disclosure. Lastly, the ownership structure has the ability to influence the disclosure practices. Companies that have family ownership or majority shareholders who prioritize privacy typically tend to refrain from engaging in extensive voluntary disclosure. Gaining insight into these factors is crucial, as they provide clarity on the reasons behind companies' disclosure strategies, addressing the requirements and anticipations of different stakeholders while managing the intricacies of financial openness.
Alabdullah, TTY, Ahmed, ER, & Ahmed, RR (2021). Organization features and profitability: Implications for a sample of Emerging Countries. Journal of Accounting and Business Education, 5(2), 43–52.
Anggraeni, N. (2018). Factor Analysis of Voluntary Disclosure Levels (Empirical Study of Companies Listed on the Indonesian Stock Exchange for the 2017 Period) [Doctoral dissertation]. Gadjah Mada University.
Dang, C., Li, Z.F., & Yang, C. (2018). Measuring firm size in empirical corporate finance. Journal of Banking & Finance, 86, 159–176.
Dewantari, M. (2019). Analysis of factors influencing the extent of voluntary disclosure in annual reports (empirical study of LQ 45 companies listed on the Indonesian Stock Exchange in 2016-2017) [Doctoral dissertation]. Widya Mandala Madiun Catholic University.
Fischer, J., & Riechers, M. (2019). A leverage perspective points on sustainability. People and Nature, 1(1), 115–120.
Hasibuan, MZ, & Sakdiah, K. (2019). Factors That Influence Voluntary Disclosure in the Financial Reports of Consumer Goods Companies Listed on the Indonesian Stock Exchange. National Seminar on Information Science and Technology (SENSASI), 2(1).
Irawan, F., & Raras, P. (2021). Voluntary disclosure program in order to increase tax compliance during the Covid-19 pandemic. Community Service, 1(2), 86–93.
Marfuah, M., Diani, AR, & Ayuntari, CG (2021). DETERMINANT FACTORS OF VOLUNTARY DISCLOSURE BY FOUNDATIONS IN INDONESIA. Accounting, Auditing & Information Research Media, 21(1), 1–16.
Morris, R.D., & Tronnes, P.C. (2018). The determinants of voluntary strategy disclosure: An international comparison. Accounting Research Journal, 31(3), 423–441.
Neliana, T. (2018). Voluntary disclosure of annual reports and influencing factors. Journal of Accounting and Finance, 7(1), 79–98.
Pontoh, GT, & Buleng, AADL (2021). The Influence of Company Characteristics, Audit Committee Effectiveness, and Audit Quality on Voluntary Disclosure. Accounting Profession Journal (APAJI), 3(1), 36–53.
Purba, B. (2018). The Influence of Institutional Ownership Structure, Managerial Ownership, Family Ownership, Voluntary Disclosure and Leverage on the Cost of Debt. Journal of Accounting and Finance, Bandar Lampung University, 9(2), 42–65.
Puspasari, MA, & Rahmah, ASM (2018). Analysis of Factors that Influence the Extent of Voluntary Disclosure in Company Annual Reports. IMWI Repository Horizons, 1(2), 53–71.
Putra, EDNS, & Rochmatullah, MR (2023). Analysis of Factors That Influence the Level of Voluntary Disclosure (Empirical Study of Manufacturing Companies Listed on the Indonesia Stock Exchange (BEI) 2016-2021) [Doctoral dissertation]. Muhammadiyah Surakarta university.
Putri, MY (2018). Analysis of factors influencing the voluntary disclosure of manufacturing companies' annual reports on the Indonesia Stock Exchange for the 2015-2017 period. Widya Mandala Catholic University Surabaya.
Setianingsih, S., & Yulianto, Y. (2023). FACTORS AFFECTING VOLUNTARY DISCLOSURE IN ANNUAL REPORTS IN COMPANIES LISTED ON THE JAKARTA ISLAMIC INDEX. Journal of Accounting, Economics and Business Management, 3(2), 186–193.
Suwasono, H. (2018). Analysis of Factors that Influence the Extent of Voluntary Disclosure and Its Implications for Information Asymmetry (Empirical Study of Consumer Goods Industry Sector Companies Listed on the Indonesia Stock Exchange in 2010-2011). Angewandte Chemie International Edition, 30(02), 106–126.
Wardani, DK, & Susilowati, WT (2020). The urgency of information transparency in tax resistance. Journal of Multiparadigm Accounting, 11(1), 127–137.
Wijayani, DR, Budiman, NA, & Mulyani, S. (2019). The influence of corporate governance on voluntary disclosure (case study of manufacturing companies on the Indonesia Stock Exchange in 2015-2017). Solutions, 17(4).
Xiao, Y., & Watson, M. (2019). Guidance on conducting a systematic literature review. Journal of Planning Education and Research, 39(1), 93–112.
