Information Technology Governance Disclosure in Annual Report of Indonesia Financial Institutions
Keywords:Information Technology Governance, Information Disclosure, Annual Report, Financial Institutions
The research aims to analyze the level of information technology (IT) governance disclosure in the annual report of financial companies and influencing factors in the exposure of IT governance. It distinguishes financial companies into two groups, namely banking and non-banking financial sectors. The data collection method used is the content analysis of the 2017 annual report from the companies. The results of 76 financial companies show that the level of IT governance disclosure by financial companies in Indonesia is higher than in previous studies in southern Africa and Belgium. Data analysis also shows that the determinants of IT governance disclosure are different in the two groups of companies. The determinant of IT governance disclosure for the banking industry is profitability, while the nonbanking financial sector is the company size.
H. Bin-Abbas and S. H. Bakry, “Assessment of IT governance in organizations: A simple integrated approach,” Computers in Human Behavior, vol. 32, no. March, pp. 261–267, 2014.
S. D. Haes, A. Joshi, T. Huygh, and S. Jansen, “How boards realise IT governance transparency: A study into current practice of the COBIT EDM05 process,” ISACA Journal, vol. 3, pp. 1–5, 2016.
A. Joshi, L. Bollen, H. Hassink, S. D. Haes, and W. V. Grembergen, “Explaining IT governance disclosure through the constructs of IT governance maturity and IT strategic role,” Information & Management, vol. 55, no. 3, pp. 368–380, 2018.
C. L. Wilkin, P. K. Couchman, A. Sohal, and A. Zutshi, “Exploring differences between smaller and large organizations’ corporate governance of information technology,” International Journal of Accounting Information Systems, vol. 22, no. September, pp. 6–25, 2016.
G. L. Lunardi, J. L. Becker, A. C. G. Mac¸ada, and P. C. Dolci, “The impact of adopting IT governance on financial performance: An empirical analysis among Brazilian firms,” International Journal of Accounting Information Systems, vol. 15, no. 1, pp. 66–81, 2014.
O. Turel, P. Liu, and C. Bart, “Is board IT governance a silver bullet? A capability complementarity and shaping view,” International Journal of Accounting Information Systems, vol. 33, no. June, pp. 32–46, 2019.
A. M. Al-Sartawi and S. Reyad, “Signaling theory and the determinants of online financial disclosure,” Journal of Economic and Administrative Sciences, vol. 34, no. 3, pp. 237–247, 2018.
A. Marx, A. M. Moolman, and M. Ngwenya, “Information technology governance disclosure compliance of JSE-listed companies,” International Journal of eBusiness and eGovernment Studies, vol. 8, no. 1, pp. 57–70, 2016.
M. Ngwenya, “Analysing information technology governance disclosure of the top 40 JSE listed companies,” Ph.D. dissertation, North-West University, 2015.
J. Aikaeli and Z. Rashid, “Relationship between profitability and voluntary disclosure: A case of banks in Kenya,” Department of Economics, University of Dar es Salaam, Tanzania, 2015.
E. Al-Moataz and K. Hussainey, “Determinants of corporate governance disclosure in Saudi corporations,” Journal of King Abdulaziz University: Economics & Administration, vol. 27, no. 2, pp. 411–430, 2013.
G. Giannarakis, “Corporate governance and financial characteristic effects on the extent of corporate social responsibility disclosure,” Social Responsibility Journal, vol. 10, no. 4, pp. 569–590, 2014.
A. Rouf, “Corporate characteristics, governance attributes and the extent of voluntary disclosure in Bangladesh,” African Journal of Business Management, vol. 5, no. 19, pp. 7836–7845, 2011.
——, “The financial performance (profitability) and corporate governance disclosure in the annual reports of listed companies of Bangladesh,” Journal of Economics and Business Research, vol. 17, no. 2, pp. 103–117, 2011.
N. L. E. Abeywardana and K. M. Panditharathna, “The extent and determinants of voluntary disclosures in annual reports: Evidence from banking and finance companies in Sri Lanka,” Accounting and Finance Research, vol. 5, no. 4, pp. 147–162, 2016.
S. Nandi and S. Ghosh, “Corporate governance attributes, firm characteristics and the level of corporate disclosure: Evidence from the Indian listed firms,” Decision Science Letters, vol. 2, no. 1, pp. 45–58, 2013.
I. Ghozali, Aplikasi analisis multivariate dengan program IBM SPSS 19. Semarang: Badan Penerbit Universitas Diponegoro, 2011.
T. Oliveira and M. F. Martins, “Literature review of information technology adoption models at firm level,” Electronic Journal of Information Systems Evaluation, vol. 14, no. 1, pp. 110–121, 2011.
Copyright (c) 2020 Weli Weli
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
a. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License - Share Alike that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
b. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
c. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Creative Commons Attribution-Share Alike (CC BY-SA)