Abstract

This research wants to examine the effects of Bank Size (CSIZE), Profitability (PROFIT), Public Shares Ownership (ISSUE), Total Number of the Board of Commissioner (BSIZE), Total Meeting of the Board of Commissioner (RPTDEKOM), and Member of Commissioner with background from Banking Supervisory Institution (BIDEKOM) to Corporate Risk Disclosure (CRD). This research analysis method using multiple linear regression analysis models. The result of this research shows that the data has fulfilled the classical assumption, such as: there is no multicollinearity and heteroscedasticity also data has distributed normally. From the regression analysis, found that partially Bank Size, Profitability and Member of Commissioner with Background from Banking Supervisory Institution variable, are significant to Corporate Risk Disclosure, while Public Share Ownership, Total Number of the Board of Commissioner and Total Meeting of the Board of Commissioner are not significant to Corporate Risk Disclosure.

Highlights

  • Corporate Risk Disclosure (CRD) is an important concern for public, especially investors

  • Corporate risk disclosure should be done in a balanced way, meaning that the disclosure of positive information and negative information especially those related to the company's risk aspect

  • Here are some conclusions that can be drawn from this research: 1. Among the six independent variables: between bank size, profitability, number of public shareholdings, number of commissioner board members, number of commissioner board meeting, and commissioner member with retiree status of banking supervisor authority, there are three variables with significant influence on level of corporate risk disclosure (CRD) in banking industry. a

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Summary

Introduction

Corporate Risk Disclosure (CRD) is an important concern for public, especially investors. It is understandable considering the significance of the information for investors as one of the tools for a careful and precise investment decision. The practice of information disclosure in banking industry in Indonesia is not quite satisfactory It is evidenced by World Bank's research in 2006 entitled "Bank Disclosure Index: Global Assessment of Bank Disclosure Practices". Indonesia's position is ranked 55th out of 177 countries observed by the World Bank. This position is far behind the other Asian countries such as Hong Kong which ranked number 1, Bahrain in 6th, Qatar in 8th, Japan in 12th, UAE in 18th and India in 32th position. Compare to Southeast Asia countries, Indonesia is only better than Cambodia, Vietnam, Brunei Darussalam and Laos

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