Abstract
<em>This study aims to examine the effect of financial distress and several factors on company characteristics, firm size, audit quality and public ownership at the level of disclosure of operating segments in marine companies listed on the Indonesia Stock Exchange. 24 populations were observed from 2013 to 2017 and obtained a sample of 10 marine sector companies with purposive sampling method. Observation results obtained an average operating segment disclosure rate of 69%. We found companies with financial difficulties limiting disclosure of operating segments. We also find public ownership influencing the level of disclosure of operating segments. However, it failed to prove the effect of firm size and auditor quality on the operating segment disclosure level </em>
Highlights
Indonesia has a vision to be the maritime axis of the world so that it is proper for the maritime industry to be able to boost the country's economy
Business developments in the maritime sector experienced a development as indicated by the presence of marine companies listed on the Indonesia Stock Exchange (IDX) to sell their shares in order to obtain capital from investors
Many companies are reluctant to disclose segment information because of strategic and competitive hazards such as disclosing company strategy, level of overseas operations and internal integration to competitors that may be related to its disclosure (Odia & Imagbe, 2015)
Summary
Indonesia has a vision to be the maritime axis of the world so that it is proper for the maritime industry to be able to boost the country's economy. Business developments in the maritime sector experienced a development as indicated by the presence of marine companies listed on the Indonesia Stock Exchange (IDX) to sell their shares in order to obtain capital from investors. Capital Market Chief Executive of OJK, Nurhaida said, "to develop an industry is inseparable from capital adequacy. To anticipate the need for capital, the maritime and fisheries sector industry needs to be encouraged to seek capital market funding through an initial public offering or IPO scheme. Research on marine companies listed on the Indonesia Stock Exchange was conducted by Arifin, Ruwanti and Kusasi (2016) showing the results that simultaneously profitability, liquidity and leverage affect earnings quality. In other studies investigating the top 130 shipping companies’ shows that asset liquidity has a negative influence with leverage which implies a conflict of interest between managers and investors (Yeo, 2016)
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
