CORPORATE GOVERNANCE AND INTERNET FINANCIAL REPORTING IN INDONESIA (An Empirical Study on Indonesian Manufacturing Companies)

Abstract

This study aims to investigate the effects of the corporate governance and ownership structure on the internet financial reporting in manufacturing companies in Indonesia. The variables used are internet financial reporting, board of director competence, board of director size, board of director meeting, audit committee independence, audit committee competence, audit committee size, audit committee activity, ownership concentration on Top 5 shareholder and number of shareholders. The results showed that board of director competency, board of director meeting, and audit committee competence have a positive effect on internet financial reporting. The results support institutional theory. However, board of director size shows affects negatively on internet financial reporting. On the other hand, other five (5) variables examined in this study namely audit committee independence, audit committee size, audit committee activity, ownership concentration on top 5 shareholders, and number of shareholders are not proven to affect the internet financial reporting. While the results of audit committee activity and ownership concentration on top 5 shareholders analysis support institutional theory, the results of audit committee independence, audit committee size, and number of shareholders do not support institutional theory.