Corporate Governance, Dividend Policy, and Disclosure Level: Evidence from Indonesian Trading Companies
DOI:
https://doi.org/10.29080/jai.v12i2.2236Keywords:
Managerial Ownership, Size of The Public Accounting Firm, Audit Tenure and Dividend Policy, Disclosure Quality, Trading Indonesia Stock ExchangeAbstract
Purpose: This study aims to examine the effect of managerial ownership, Public Accounting Firm (PAF) size, audit tenure, and dividend policy on disclosure quality among trading companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. The study focuses on identifying corporate governance and audit-related factors that may influence the extent and quality of corporate disclosure.
Methodology/approach: This study employs a quantitative research approach using secondary data obtained from audited financial statements and annual reports of trading companies listed on the IDX. The sample was selected using purposive sampling based on predetermined criteria. Data were analyzed using Statistical Package for the Social Sciences (SPSS) through multiple linear regression to examine the partial effects of managerial ownership, PAF size, audit tenure, and dividend policy on disclosure quality.
Findings: The results indicate that audit tenure and PAF size have a significant effect on disclosure quality. These findings suggest that the characteristics of the external audit engagement and the size of the PAF are relevant factors in determining the quality of corporate disclosure. In contrast, managerial ownership and dividend policy do not have a significant effect on disclosure quality.
Practical implications: The findings provide insights for companies, auditors, investors, and regulators regarding factors associated with disclosure quality and may support efforts to strengthen corporate transparency and accountability.
Originality/value: This study contributes empirical evidence on the determinants of disclosure quality in Indonesian trading companies by simultaneously examining ownership, audit, and dividend-related factors over the 2020–2024 period.
Downloads
References
Ababil, Maulana Ikhrom, Mochammad Nuruddin, and Sudarynianto N S. 2025. “Analisis Laporan Keuangan Perbandingan Kinerja Keuangan Perusahaan Sektor Perdagangan Di Indonesia ( Studi Pada PT . Alfamidi PT . Alfamart.”
Alhazmi, Abdulkarim Hamdan J., Sardar Islam, and Maria Prokofieva. 2024. “The Impact of Changing External Auditors, Auditor Tenure, and Audit Firm Type on the Quality of Financial Reports on the Saudi Stock Exchange.” Journal of Risk and Financial Management 17 (9): 407. https://doi.org/10.3390/jrfm17090407.
Azekkar, Younes, Omar Boustta, Younes Taghouti, Brahim Abidar, and Khalid El Ouafa. 2025. “Dividend Policy: A Comprehensive Analysis of Classical, Neoclassical, and Modern Theories in Corporate Finance.” Multidisciplinary Reviews 8 (9). https://doi.org/10.31893/multirev.2025301.
Boateng, Richard Nana, Vincent Tawiah, and George Tackie. 2022. “Corporate Governance and Voluntary Disclosures in Annual Reports: A Post-International Financial Reporting Standard Adoption Evidence from an Emerging Capital Market.” International Journal of Accounting and Information Management 30 (2): 252–76. https://doi.org/10.1108/IJAIM-10-2021-0220.
Cahyadin, Malik, sutomo, and lely ratwianingsih. 2017. “Industri Perdagangan Di Indonesia: Perkembangan Dan Kinerja.” Jiep 17 (2): 78–88.
Cahyo Prasetyo, Crish Kuntadi. 2024. “Pengaruh Audit Tenure , Ukuran KAP , Pergantian Auditor , Dan Opini Audit Terhadap Audit Delay Cahyo Prasetyo Crish Kuntadi Aspek Penting Dalam Menjaga Kredibilitas Dan Relevansi Informasi Laporan Keuangan . Keuangan Dan Mempengaruhi Pengambilan Keputusan.” Jurnal Ekonomi, Akuntansi, Dan Perpajakan (JEAP) 1 (2): 171–80.
Che, Limei, Ole Kristian Hope, and John Christian Langli. 2020. “How Big-4 Firms Improve Audit Quality.” Management Science 66 (10): 4552–72. https://doi.org/10.1287/mnsc.2019.3370.
Ghozali, Imam. 2016. Aplikasi Analisis Multivariete SPSS 23.
Hadji, Mustafa. 2024. “The Effect of Audit Tenure and Audit Rotation on Audit Quality in Consumer Goods Companies Listed on the IDX for the Period 2020-2022.” INFA International Journal of The Newest Finance and Accounting 2 (1): 111–19. https://doi.org/10.59693/infa.v2i1.28.
Hair, Joseph F., G.Tomas Hult, Christian Ringle, and Marko Sarstedt. 2017. A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) - Joseph F. Hair, Jr., G. Tomas M. Hult, Christian Ringle, Marko Sarstedt. Sage.
Handayati, Puji, Yeut Hong Tham, Yuni Yuningsih, Sulis Rochayatun, and Meldona. 2022. “Audit Quality, Corporate Governance, Firm Characteristics and CSR Disclosures—Evidence from Indonesia.” Journal of Corporate Accounting and Finance 33 (3): 65–78. https://doi.org/10.1002/jcaf.22548.
Hayes, Adam. 2024. “Heteroscedasticity Definition: Simple Meaning and Types Explained.” 2024. https://www.investopedia.com/terms/h/heteroskedasticity.asp.
———. 2025. “Dividend Payout Ratio Definition, Formula, and Calculation.” Investopedia. 2025. https://www.investopedia.com/terms/d/dividendpayoutratio.asp.
James, Hui Liang, and Hongxia Wang. 2021. “Independent Director Tenure and Dividends.” Journal of Business Finance and Accounting 48 (5–6): 1057–91. https://doi.org/10.1111/jbfa.12498.
Jubaedah, Siti, and Doddy Setiawan. 2023. “The Effect of Ownership Structure on Social and Environmental Disclosure in Indonesia.” Diponegoro International Journal of Business 6 (1): 24–35. https://doi.org/10.14710/dijb.6.1.2023.24-35.
Kenton, Will. 2024. “Durbin Watson Test: What It Is in Statistics, With Examples.” 2024. https://www.investopedia.com/terms/d/durbin-watson-statistic.asp.
Mayangsari, Rinjani Dewi, and Aghan Yunardo Sazangka. 2023. “Pengaruh Ukuran Kantor Akuntan Publik, Audit Tenure Dan Spesialisasi Kantor Akuntan Publik Terhadap Kualitas Audit.” Owner 7 (3): 2598–2611. https://doi.org/10.33395/owner.v7i3.1455.
Naysilla Anastasia, Putri, Maryati Rahayu, and Nursina Nursina. 2023. “Kepemilikan Institusional, Kepemilikan Manajerial Dan Ukuran Perusahaan Terhadap Integritas Laporan Keuangan.” Ikraith-Ekonomika 6 (3): 135–44. https://doi.org/10.37817/ikraith-ekonomika.v6i3.
Nwaeze, Emeka T. 2025. “Auditors’ Life Cycle in Clients and Auditor Independence.” Journal of Risk and Financial Management 18 (2): 1–26. https://doi.org/10.3390/jrfm18020055.
OJK. 2023. “Salinan Peraturan Otoritas Jasa Keuangan Republik Indonesia Nomor 9 Tahun 2023 Tentang Penggunaan Jasa Akuntan Publik Dan Kantor Akuntan Publik Dalam Kegiatan Jasa Keuangan.” Otoritas Jasa Keuangan RI, no. Mi, 5–24.
Ozili, Peterson K. 2023. “The Acceptable R-Square in Empirical Modelling for Social Science Research.” Social Research Methodology and Publishing Results: A Guide to Non-Native English Speakers, no. 115769, 134–43. https://doi.org/10.4018/978-1-6684-6859-3.ch009.
Siladjaja, Muljanto, Yuli Anwar, and Ismulyana Djan. 2022. “The Relationship between Dividend Policy and Earnings Quality: The Role of Accounting Information in Indonesia’s Capital Market.” Economies 10 (6). https://doi.org/10.3390/economies10060140.
Sugiyono. 2020. “Metode Penelitian Kuantitatif, Kualitatif, Dan Kombinasi: Mixed Methods (2nd Edition).” Bandung: Alfabeta.
Tinungki, Georgina Maria, Powell Gian Hartono, Budi Frensidy, Nurtiti Sunusi, Robiyanto Robiyanto, and Apriani Dorkas Rambu Atahau. 2025. “Revisiting Dividend Policy in Indonesian Green Investment Firms and Associated Market Reaction: An in-Depth Analysis over Crises Period.” Cogent Business and Management 12 (1). https://doi.org/10.1080/23311975.2025.2467229.
Tran, Manh Dung, and Hong Hanh Ha. 2023. “Corporate Governance Disclosure and Annual Reports Quality: An Investigation in Vietnam Context.” Cogent Economics and Finance 11 (1). https://doi.org/10.1080/23322039.2023.2173125.
Wirama, Dewa Gede, and Komang Ayu Krisnadewi. 2024. “Dividend Policy and Residual Dividend Theory : Evidence from Indonesia” 9 (3): 201–16. https://doi.org/10.1108/AJAR-10-2023-0347.
Yasmin. 2024. “Audit Quality and Earnings Management: Empirical Evidence from Indonesia.” Advances in Management Innovation 1 (1 SE-Article Full): 32–42. https://doi.org/10.69725/ami.v1i1.96.
Zahid, R. M.Ammar, Alina Taran, Muhammad Kaleem Khan, and Ionela Corina Chersan. 2023. “ESG, Dividend Payout Policy and the Moderating Role of Audit Quality: Empirical Evidence from Western Europe.” Borsa Istanbul Review 23 (2): 350–67. https://doi.org/10.1016/j.bir.2022.10.012.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Arya Putransyah, Agustinus Winoto
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
