The Effect Board Characteristics On Enterprise Risk Management Disclosures: Evidence from State-Owned Enterprise In Indonesia


  • Hudi Kurniawanto Universitas Slamet Riyadi Surakarta



Board Size, Board Independence, Corporate Governance, Enterprise Risk Management Disclosure, Indonesia Stock Exchange


The purpose of this study is to examine the effect of corporate governance, namely board characteristics on enterprise risk management disclosure. The research object of State-Owned Enterprises listed on the Indonesia Stock Exchange in 2018-2019, with a total sample of 40 annual reports with purposive sampling technique and multiple regression analysis. The results of this study prove that board size no effect on enterprise risk management disclosure, while board independence effect enterprise risk management disclosure. This shows that the commissioners understand and carry out their duties as an independent party in supervising, directing, and evaluating the implementation of corporate governance and corporate strategic policies so that Board Independence in State-Owned Enterprises in Indonesia functions properly.


Abeysekera, I. (2010). The influence of board size on intellectual capital disclosure by Kenyan listed firms. Journal of Intellectual Capital, 11(4), 504–518.
Abraham, S., & Cox, P. (2007). Analyzing the determinants of narrative risk information in UK FTSE 100 annual reports. British Accounting Review, 39(3), 227–248.
Amran, A., Bin, A. M. R., & Hassan, B. C. H. M. (2009). Risk reporting: An exploratory study on risk management disclosure in Malaysian annual reports. Managerial Auditing Journal, 24(1), 39–57.
Beasley, M. S., Clune, R. N., & Hermanson, D. R. (2005). Enterprise risk management: An empirical analysis of factors associated with the extent of implementation. Journal of Accounting and Public Policy, 24(6), 521–531.
Elzahar, H., & Hussainey, K. (2012). Determinants of narrative risk disclosures in UK interim reports. Journal of Risk Finance, 13(2), 133–147.
Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law & Economics, 26(4), 9–15.
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.
Lajili, K. (2009). Corporate Risk Disclosure and Corporate Governance. Journal of Risk and Financial Management, 2(1), 94–117.
Lajili, & Zeghal. (2005). A Content Analysis of Risk Management Disclosures in Canadian Annual Reports. Canadian Journal of Administrative Sciences, 22(2), 1215–142.
Lopes, P. T., & Rodrigues, L. L. (2007). Accounting for financial instruments: An analysis of the determinants of disclosure in the Portuguese stock exchange. International Journal of Accounting, 42(1), 25–56.
Ntim, C. G., Lindop, S., & Thomas, D. A. (2013). Corporate governance and risk reporting in South Africa: A study of corporate risk disclosures in the pre-and post-2007/2008 global financial crisis periods. International Review of Financial Analysis, 30, 363–383.
Olveira, J., Rodrigues, L. L., & Craight, R. (2011). Risk-related disclosures by non-finance companies: Portuguese practices and disclosure characteristics. Managerial Auditing Journal, 26(9), 817–839.
Probohudono, A. N., Tower, G., & Rusmin, R. (2013). Risk disclosure during the global financial crisis. Social Responsibility Journal.
Singh, M., Mathur, I., & Gleason, K. C. (2004). Governance and performance implications of diversification strategies: Evidence from large U.S. firms. Financial Review, 39(4), 489–526.
Vandemaele, S., Vergauwen, P., & Michiels, A. (2009). Management risk reporting practices and their determinants: a study of Belgian listed firms. Business, 1–24.




How to Cite

Kurniawanto, H. (2021). The Effect Board Characteristics On Enterprise Risk Management Disclosures: Evidence from State-Owned Enterprise In Indonesia. Archives of Business Research, 8(12), 230–237.