Saudi Journal of Economics and Finance (SJEF)
Volume-3 | Issue-08 | 314-322
Original Research Article
The Role of Corporate Governance to Integrated Reporting (Survey on Indonesia’s State-Owned Enterprises/SOEs)
Nengzih Nengzih
Published : Aug. 17, 2019
Abstract
This research attend to examine the role of Corporate Governance (CG) to preparation integrated reporting. Corporate
Governance as one of the main factors to determine the success of implementing integrated reporting which one of its
proxies like audit committee is believed to influence the scope of integrated reporting. This study is intended to follow up
the suggestions from previous researchers (Beedard & Gendron, 2010; Li, Mangena, & Pike, 2012; Lisic, 2015; A.
Setiawan, 2016; Chariri and Juniarti, 2017) who recommended the use of complete CG proxies look like; institutional
ownership, independent commissioners and audit committees to obtain empirical evidence that effect the greatest
contribution to the readiness of integrated reporting in Indonesia’s State-Owned Enterprises/SOEs. Data collection
techniques were carried out by purposive sampling method with certain criteria by using multiple regression analysis
SPSS Version 22. This result shows that only 11.7% of Element Integrated Reporting on SOEs in IDX (Indonesia Stock
Exchange) within 2012-2017 can be explained by independent variables (Corporate Governance). While the remaining
88.3% is explained by other reasons outside the model.