The Impact Of Corporate Governance On Internal Control Disclosure: Evidence From Indonesia

Abstract

This study investigates the effect of corporate governance proxied by the board of commissioners' size, independent commissioners, institutional ownership, managerial ownership, audit committee size, and external auditor size on internal control disclosure. This study utilizes hand-collected data from annual reports of nonfinancial companies listed on the Indonesia Stock Exchange and obtained 726 firm-year observations from 242 companies during 2017-2019. The data analysis technique used is panel data regression analysis with the selected random effect model. The findings of this study indicate that the independent board of commissioners and institutional ownership positively affect internal control disclosure. In contrast, managerial ownership has a negative effect on internal control disclosure.