Does Corporate Governance Increase Related Party Transaction Disclosure In Indonesia?

Authors

  • Amrie Firmansyah Politeknik Keuangan Negara STAN
  • Pria Aji Pamungkas
  • Fardan Ma’ruf Zainuddin

DOI:

https://doi.org/10.32493/eaj.v4i1.y2021.p1-12

Keywords:

disclosure, corporate governance, related party

Abstract

The purpose of this study is to examine the effect of corporate governance (audit committee, institutional ownership, managerial ownership, and independent commissioners) on Related Party Transaction Disclosure. The data employed in this study is secondary data, financial statements from manufacturing sector companies listed on the Indonesia Stock Exchange from 2016 up to 2019. Based on the purposive sampling conducted, companies that meet the criteria in this study are 40 companies, so that the total sample is 160 observations. This study uses panel data regression analysis. This study finds that the independent commissioner has a positive effect on Related Party Transaction Disclosure. Meanwhile, the audit committee, managerial ownership, and institutional ownership do not affect Related Party Transaction Disclosure. This research indicates that the Indonesian Financial Services Authority (OJK) should supervise and tighten the rules for Indonesia listed companies, especially regarding the audit committee's or independent commissioner's requirements in listed companies.

Author Biography

Amrie Firmansyah, Politeknik Keuangan Negara STAN

SINTA ID : 6079744

References

Akmyga, S. F., & Mita, A. F. (2015). Pengaruh struktur corporate governance dan kualitas audit terhadap luas pengungkapan kompensasi manajemen kunci di laporan keuangan. Jurnal Akuntansi dan Keuangan Indonesia, 12(1), 19-36.

Alvionita, I., & Taqwa, S. (2015). Pengaruh struktur kepemilikan dan mekanisme corporate governance terhadap tingkat kepatuhan mandatory disclosure. Seminar Nasional Ekonomi Manajemen Dan Akuntansi (SNEMA) Fakuktas Ekonomi, Universitas Negeri Padang, 590- 601.

Amaliyah, F., & Herwiyanti, E. (2019). Pengaruh Kepemilikan Institusional, Dewan Komisaris Independen, dan Komite Audit terhadap Nilai Perusahaan Sektor Pertambangan. Jurnal Akuntansi, 9(3), 171-189.

Apriani, H. W. (2015). Pengaruh Corporate Governance dan Karakteristik Perusahaan terhadap Luas Pengungkapan Transaksi Pihak Berelasi di Indonesia. Jurnal Akuntansi Indonesia, 4(1), 36-50.

Aprilia, E. A. (2018). Effect of Good Corporate Governance and Sustainability Report Disclosure Structure on Company Value and Economic Added Value As Intervening Variable. EAJ (Economics and Accounting Journal), 1(3), 225.

Aryotama, P., Firmansyah, A. (2020). The Association between Related Party Transaction And Tax Avoidance In Indonesia. AFEBI Accounting Review, 4(02), 117-125.

Astasari, K. G. A., & Nugrahanti, Y. W. (2015). Pengaruh Struktur Kepemilikan, Ukuran Komite Audit, dan Kualitas Audit terhadap Luas Pengungkapan Kompensasi Manajemen Kunci di Laporan Keuangan. Derema Jurnal Manajemen. 10(2), 162- 182.

Chaghadari, M. F. & Shukor, Z. A. (2011). Corporate Governance and Disclosure of Related Party Transaction. International and Conference on Economics and Business Research, 1392-1405.

Djayanti, A. (2015). Pengaruh Ukuran Perusahaan, Profitabilitas dan Financial Leverage terhadap Praktik Perataan Laba pada Perusahaan Manufaktur yang terdaftar di Bursa Efek

Indonesia. Kelola, 2(3), 1-11.

Fauziah, I. (2015). Pengaruh Mekanisme Corporate Governance terhadap Tingkat Kepatuhan Mandatory Disclosure Pasca Konvergensi IFRS. Esensi Jurnal Bisnis dan Manajemen. 5(2), 279-304.

Firmansyah, A., Ardi, A. K. (2020). Related party transactions, supply chain and cost management on firm’s value: evidence from Indonesia. International Journal of Supply Chain Management, 9(3), 1201-1209.

Gunawan, B., & Hendrawati, E. R. (2016). Peran Struktur Corporate Governance dalam Tingkat Kepatuhan Pengungkapan Wajib Periode Setelah Konvergensi IFRS (Studi Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia). Berkala Akuntansi Dan Keuangan Indonesia, 1(1), 71-83.

Harijanto, V. N. A. (2019). Pengaruh Struktur Kepemilikan dan Ukuran Kantor Akuntan Publik terhadap Tingkat Kepatuhan Pengungkapan Transaksi Berelasi Berdasarkan PSAK No 7 tentang Pengungkapan Pihak- Pihak Berelasi. Nominal, Barometer Riset Akuntansi dan Manajemen, 8(1), 59-70.

Izzaty, K. N., & Kurniawan, P. C. (2018). Pengaruh Kinerja Keuangan, Struktur Kepemilikan dan Corporate Governance terhadap Tingkat Kepatuhan Pengungkapan Transaksi Pihak Berelasi Pasca Konvergensi IFRS. Jurnal Wira Ekonomi Mikroskil: Jwem, 8(2), 215-228.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics, 3(4), 305-360.

Malawat, F. F., Sutrisno, S., & Subekti, I. (2018). Pengaruh Pyramid of Structure Dan Pengungkapan Transaksi Pihak Berelasi Terhadap Tindakan Ekspropriasi, Dimoderasi Olehtata Kelola Perusahaan. Jurnal Akuntansi Dan Auditing, 15(1), 69-90.

Murni, Y. (2015). The Influence of Managerial Ownership, Institutional Ownership, and Voluntary Disclosure on Financial Performance and Its Implication on the Corporate Value. International Journal of Business and Management Invention. 4(5). 52-64.

Octaviani, I., & Djati, K. (2020). The Effect of Company Size, Systematic Risk, and Independent Commissioner on Intellectual Capital Disclosure. EAJ (Economics and Accounting Journal), 3(3),163–171.

Pebri, I. K., Diana, N., & Junaidi, J. (2020). Pengaruh Good Corporate Governance dan Struktur Kepemilikan terhadap Tingkat Kepatuhan Pengungkapan Transaksi Berelasi Berdasarkan PSAK No. 7 tentang Pengungkapan Pihak- Pihak Berelasi. Jurnal Ilmiah Riset Akuntansi, 9(04), 109-125.

Pratista, A. R. H. (2019). Pengaruh Corporate Governance pada Kepatuhan Pengungkapan Transaksi Berelasi Berdasarkan Pernyataan Standar Akuntansi Keuangan (PSAK) No. 7 Tahun 2015. Nominal, Barometer Riset Akuntansi dan Manajemen, 8(1), 19-30.

Sellami, Y. M., & Fendri, H. B. (2017). The Effect of Audit Committee Characteristics on Compliance with IFRS for Related Party

Disclosures. Managerial Auditing Journal, 32(6), 1-26.

Sofia, I. P. (2019). The Impact of Governance Effectiveness and Company Size on Environmental Performance. EAJ (Economics and Accounting Journal), 2(2),76.

Wahyuni, P. D., & Mahliza, F. (2019). Effect of Gcg and Financial Performance on the Quality of Internet Financial Reporting. EAJ (Economics and Accounting Journal), 2(1), 52

Published

2021-04-15

Issue

Vol. 4 No. 1 (2021): EAJ (Economic and Accounting Journal)

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

 

<a rel="license" href="http://creativecommons.org/licenses/by-sa/4.0/"><img alt="Creative Commons License" style="border-width:0" src="https://i.creativecommons.org/l/by-sa/4.0/88x31.png" /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by-sa/4.0/">Creative Commons Attribution-ShareAlike 4.0 International License</a>.