Browse > Article
http://dx.doi.org/10.13106/jafeb.2020.vol7.no11.335

Corporate Governance and Value Relevance in Indonesia Manufacturing Companies  

MURDAYANTI, Yunika (Faculty of Economics, Universitas Negeri Jakarta)
ULUPUI, I Gusti Ketut Agung (Faculty of Economics, Universitas Negeri Jakarta)
PAHALA, Indra (Faculty of Economics, Universitas Negeri Jakarta)
INDRIANI, Susi (Faculty of Economics, Universitas Negeri Jakarta)
SUHERMAN, S. (Faculty of Economics, Universitas Negeri Jakarta)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.11, 2020 , pp. 335-346 More about this Journal
Abstract
This study aims to describe the role of corporate governance as a moderator in electronic financial disclosure that adopts Extensible Business Reporting Language (XBRL) and Company Characteristics on value relevance. The population in this study was all manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2018, totaling 166 companies. The sampling technique used purposive sampling method, namely, manufacturing companies that publish fully audited financial statements by December 31 of the year 2017-2018. The method used in this research is a quantitative description using the financial statements of manufacturing companies listed on the Indonesia Stock Exchange that have adopted XBRL during the 2017-2018 period. The data analysis method used is multiple regression analysis with moderating variables. The results of this study show a negative and insignificant effect of XBRL on value relevance, a significant negative effect of size on value relevance, a positive and insignificant effect of growth on value relevance, and a significant positive effect of profit on value relevance; meanwhile, corporate governance moderation variable has an insignificant effect in all hypotheses. Suggestions are to increase the number of variables that have an important role in value relevance and expand the number of research objects to be compared.
Keywords
XBRL; Company Characteristics; Value Relevance; Corporate Governance;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
연도 인용수 순위
1 Zhang, X.-J. (2000). Conservative accounting and equity valuation, Journal of Accounting and Economics, 29(1), 125-149.   DOI
2 Cormier, D., Dufour, D., Luu, P., Teller, P., & Teller, R. (2019). The Relevance of XBRL Voluntary Disclosure for Stock Market Valuation: The Role of Corporate Governance. Canadian Journal of Administrative Sciences, 36(1), 113-127. https://doi.org/10.1002/cjas.1483   DOI
3 Dang, H. N., Pham, C. D., Nguyen, T. X., & Nguyen, H. T. T. (2020). Effects of corporate governance and earning quality on listed Vietnamese firm value. Journal of Asian Finance, Economics and Business, 7(4), 71-80. https://doi.org/10.13106/jafeb.2020.vol7.no4.71   DOI
4 Asnawi, S. K., & Wijaya, C. (2005). Financial Research: Empirical Tests. Jakarta, Indonesia: Gramedia Pustaka Utama.
5 Hermuningsih, S. (2013). Effect of Profitability, Growth Opportunity, Capital Structure on Firm Value in Public Companies in Indonesia. Bulletin of Monetary Economics and Banking, 16(2), 128-148. https://doi.org/10.21098/bemp.v16i2.27
6 Gandasari, I., & Herawaty, V. (2015). Effect of Company Characteristics on Income Smoothing with Good Corporate Governance as a Moderation Variable. Journal of Master of Accountancy Trisakti. 2(1), 73-94
7 Ghozali, I. (2014). Structural Equation Modeling, Alternative Methods with Partial Least Square (PLS) (4th ed.). Semarang, Indonesia: Diponegoro University Publishing Agency.
8 Harahap, S. S. (2013). Critical Analysis of Financial Statements (11th ed.). Jakarta, Indonesia: Rajawali Press.
9 Huynh, Q. L. (2020). A triple of corporate governance, social responsibility and earnings management. Journal of Asian Finance, Economics and Business, 7(3), 29-40. https://doi.org/10.13106/jafeb.2020.vol7.no3.29   DOI
10 Ilias, A., & Ghani, E. K. (2015). Examining the Adoption of Extensible Business Reporting Language among Public Listed Companies in Malaysia. Procedia Economics and Finance, 28(April), 32-38. https://doi.org/10.1016/s2212-5671(15)01078-3   DOI
11 Jaya, I. G. N. M., & Sumertajaya, I. M. (2008). Modeling of Structural Equations with Partial Least Square. In: National Mathematics and Mathematics Education 2008 (pp. 118-132).
12 Muchlis, F., Primadyan, M., R. Shauki, E., & Diyanty, V. (2019). Examining XBRL Early Adopters: A Study of Determinants and Value Relevance. Advances in Economics, Business and Management Research, 89(Apbec 2018), 267-274. https://doi.org/10.2991/apbec-18.2019.35
13 Liu, C., Luo, X., & Wang, F. L. (2017). An empirical investigation on the impact of XBRL adoption on information asymmetry: Evidence from Europe. Decision Support Systems, 93(2017), 42-50. https://doi.org/10.1016/j.dss.2016.09.004   DOI
14 Mahardika, S. A., & Harahap, S. N. (2018). Analysis of XBRL's Adoption's Impact on Information Asymmetry, with Corporate Governance as Moderating Variable. Indonesian Journal of Accounting and Finance, 15(2), 216-235. http://dx.doi.org/10.21002/jaki.2018.12
15 Masrifa, A. Y. A. (2016). Company Characteristics to Firm Value, with Dividend Payout Ratio as an Intervening Variable. Advance, 3(1), 1-19.
16 Naimah, Z., & Mukti, N. A. (2019). The influence of the audit committee's and company's characteristic on intellectual capital disclosure. Asian Journal of Accounting Research, 4(2), 170-180. https://doi.org/10.1108/ajar-05-2019-0036   DOI
17 Perdana, A. (2011). Extensible Business Reporting Language (XBRL): Implications for Financial Reporting Paradigms and Supply Chains. In: National Seminar on Information Technology Application 2011 (SNATI 2011) (pp. 14-20).
18 Permana, Aryo Bimo Setya. (2015). The Effect of Value Relevance on Investor Decisions. AKUNESA Accounting Journal, 3(2), 1-20
19 Pujisari, Y., & Biyanto, F. (2019). Awareness and Understanding of Educator Accountants towards XBRL. INVENTORY: Journal of Accounting, 3(1), 33-46.
20 Kasmir. (2014). Introduction to Financial Management. Jakarta, Indonesia: Kencana Prenada Media Group
21 Cahyadi, I. F. (2019). The Role of Accounting Information Systems and the Challenges of the Accountant Professional in the Era of the Industrial Revolution 4.0 (A Phenomenology Study). AKTSAR: Journal of Islamic Accounting, 2(1), 69. https://doi.org/10.21043/aktsar.v2i1.5497
22 Anam Ousama, A., Fatima, A., & Rashid Hafiz - Majdi, A. (2012). Determinants of intellectual capital reporting. Journal of Accounting in Emerging Economies, 2(2), 119-139. https://doi.org/10.1108/20421161211229808   DOI
23 Benbouali, K., & Benberi, M. A. (2018). The Importance of Introducing Electronic Accounting Disclosure Using the XBRL Language in Activating the Algerian Stock Market. Journal of Accounting, Finance, and Auditing Studies. 4(1), 40-58. https://www.um.edu.mt/library/oar//handle/123456789/27389
24 Brigham, E. F., & Houston, J. F. (2010). Fundamentals of Financial Management (11th Edition,). Jakarta, Indonesia: Publisher Salemba Empat.
25 Sari, E. P., Handajani, L., & AM, S. (2016). Corporate Governance and the Value Relevance of Tax Avoidance: Empirical Evidence from the Indonesian Capital Market. Journal of Accounting and Business Dynamics, 3(2), 33-48. https://doi.org/10.24815/jdab.v3i2.5385   DOI
26 Rahman, M. M., & Khatun, N. (2017). Quality of Corporate Governance: A Review from the Literature. Journal of Asian Finance, Economics and Business, 4(1), 59-66. https://doi.org/10.13106/jafeb.2017.vol4.no1.59   DOI
27 Razak, L. A., Pontoh, G. T., & Yamin, M. (2019). XBRL Adoption of Investor Trading Behavior on the Indonesia Stock Exchange. Nabelo Account Journal: Neutral, Accountable, Objective Accounting Journal, 1(2). https://doi.org/10.22487/j26223090.2019.v1.i2.11884
28 Riyanto, S., & Hatmawan, A. A. (2020). Research Methods : Research Quantitative Research in the fields of Management, Engineering, Education, and Experiments. Sleman, Indonesia: Deepublish Publisher
29 Sheridan, T., Keown, A. J., & Martin, J. D. (2011). Financial Management Principles and Applications (11th ed.). New York, NY: Pearson.
30 Simanjuntak, P. N. M. (2017). Analyze to the Role Extensible Business Reporting Language (XBRL) to Improve the Accuracy of Tax Reporting. Parahyangan International 3rd Accounting & Business Conference, 8(9), 1-58.
31 Sutisna, H & Ekawati, E. (2016). Income Persistency in The Level of Companies and Industries Association with Cash and Accrual Flow Volatilities. In: XIX National Symposium on Accounting, Lampung, Indonesia.
32 Wu, J., & Vasarhelyi, M. A. (2004). Business Intelligence Techniques. Business Intelligence Techniques, (April 2015). https://doi.org/10.1007/978-3-540-24700-5
33 Taliyang, S. M., Latif, R. A., & Mustafa, N. H. (2011). The determinants of Intellectual Capital Disclosure among Malaysian Listed Companies. International Journal of Management and Marketing Research, 4(3), 25-33.
34 Tohang, V., & Lan, M. (2017). The Impact of Adoption of XBRL on Information Risk in Representative Countries of Scandinavian Region. Journal of Finance and Banking, 21(4), 515-526. https://doi.org/10.26905/jkdp.v21i4.1525
35 Wang, Z. (2015). Financial Reporting With XBRL and Its Impact on the Accounting Profession. Thesis, 1-284.
36 Wardhani, Faradina Inda. (2019). Self-Assessment on the Implementation of Good Corporate Governance at PT Bank Mandiri (Persero) Tbk. INTEGRA, 9(2), 125-143
37 William, L., Pratama, A., & Mustamu, R. H. (2013). Application of Good Corporate Governance Principles in Family Companies: Descriptive Study of Food Distributors. Jurnal Manajemen Bisnis, 1(1), 1-11.
38 Zamroni, M., & Aryani, Y. A. (2018). Initial Effects of Mandatory XBRL Adoption across the Indonesia Stock Exchange's Financial Information Environment. Journal of Finance and Banking, 22(2), 181-197. https://doi.org/10.26905/jkdp.v22i2.2092.