Corporate Governance, IFRS Disclosure, and Stock Liquidity in Indonesian Mining Companies
Andian Ari Istiningrum
Polytechnics of Energy and Mineral AKAMIGAS
Abstract
The purposes of this article are to investigate the effect of good corporate governance mechanism, featured by number of meeting conducted by audit committee, independency of the boards of commissioners, quality of auditors and institutional ownerships on the mandatory disclosure as required by IFRS and the effect of mandatory disclosure on stock turnover. Two multiple regression models are used for a sample of 13 Indonesian Mining Companies listed on the Indonesia Stock Exchange. The data has been collected for 4 years to arrive at 52 data used in the data analysis. The first model is used to test factors associated with the level of mandatory disclosure. Then, the predicted value of mandatory disclosure generated by the first model is used as a determinant in the second model. The second model is set to determine the factors associated with stock turnover. The result indicates that the number of meeting conducted by audit committee is significantly and positively associated with the level of mandatory disclosure; whereas other determinants do not have any significant association with the level of mandatory disclosure. The result also shows that the predicted value of mandatory disclosure is positively and significantly associated with stock turnover.
Keywords: IFRS disclosure, stock liquidity, audit committee, boards of commissioners, audit quality, institutional ownership
Topic: Accounting and Financial Management