Corporate Governance and Internal Control Disclosure: Evidence from Indonesia

This study examines the impact of corporate governance on the disclosure of internal control information by firms in Indonesia. The sample used on this study is all of the companies listed on the stock exchanges of Indonesia during 2015 until 2016 and use 713 sample. This study uses annual report of each firms to assess disclosure of internal control information (DICI) with the disclosure index obtained from total internal control items disclosed divided maximum (seven) items disclosed for each company. Based on the results of the regression, there is a positive correlation between board size. With the increase in the number of compositions the board of directors defines companies more responsible for disclosing internal control information more transparently. Institutional ownership to DICI has negative correlation because This is because the supervision of financial investors to the company is less because of the control function or a diversified stock. Meanwhile, the board independent is not significant related to DICI. Independent commissioners have not been able to perform their functions as supervisory performance of the board of directors who actively participate in organizing and evaluating the function of corporate secretary that is in the case of reporting of internal control.