Indonesia Conference Directory

This study aims to examine the factors that influence corporate risk disclosure consisting of the type of company, company size and profitability and the impact of corporate risk disclosure on the firm value. Every company has a different risk. Investors need to know the risks faced by the company and what strategies are used to deal with these risks. Companies listed on the ISSI are required to conduct their business based on sharia principles. Risk disclosure is a form of applying sharia principles in business ethics. The population was 265 non financial companies listed on ISSI and published the annual report for 2015 to 2017. The sample of 73 companies was taken by applying Slovin formula. Data analysis techniques used was path analysis and multiple group analysis. The results show that type of company, company size, and profitability have significant impact on corporate risk disclosure, and corporate risk disclosure has a positive and significant impact on firm value. The results of this research can be used as a consideration for the company management to increase corporate risk disclosures in the annual report as corporate risk disclosures can be a positive signal to encourage the increase in corporate value.