GCG, CORPORATE CHARACTERISTICS, AND FINANCIAL DISTRESS AS A DETERMINANT OF EXTENSIVE VOLUNTARY DISCLOSURES

Abstract

The existence of a conflict of interest between the principal and the
agent causes information asymmetry. This information asymmetry can
be minimized by voluntary disclosure in the annual report. GCG
factors, company characteristics, and financial distress are predicted to
influence the extensive voluntary disclosure. This study aims to examine
the effect of ownership dispersion, financial distress, the board size,
CEO duality and age of listings on the extensive voluntary disclosure.
Data population are basic and chemical industry companies listed on
IDX for the 2015-2018. A purposive sampling was used as method and
obtained 160 samples. This study used secondary data from annual
reports. Data were analyzed by using the Multiple Linear Regression
Analysis method. This study found that Ownership Dispersion and Size
of the Board of Commissioners have a significant positive effect on
Extensive Voluntary Disclosure. Whereas Financial Distress, CEO
Duality, and Age of Listing have no significant effect on Extensive
Voluntary Disclosure.