Family-owned and State-owned Firms Disclosure: Comparative Analysis of Indonesia Public Firms

Abstract

This study aims to compare the disclosure between family-owned and state-owned firms in Indonesia Stock Exchange included in LQ45 Index in 2016. The indicator used is the Principle of Disclosure and Transparency in ASEAN Corporate Governance (ACG) Scorecard, and the method used are the qualitative descriptive and mean-comparison test. Besides, further analysis was done by classifying the findings into mandatory and voluntary disclosure. The findings show that overall, the aggregate disclosure of familyowned firms is significantly lower than state-owned firms. The interesting findings that characterize the difference are placed on Quality of Annual Report. It confirms that familyowned firms are more likely to disclose financial than governance disclosure, compared to state-owned firms. This paper motivates the government to put more emphasize on regulation since the information disclosure is crucial to stakeholders.

Good corporate governance practices and voluntary disclosure in companies listed in the Indonesia Sharia Stock Index (ISSI)

“…The separation of ownership and control in a public company may create an agency conflict between shareholders (principals) and management (agents). Management who runs a business knows more about the company's business information than shareholders, thus management can defend their interests and take over the principal or for companies that have concentrated ownership, management will take over minority ownership (Ratnasari and Adhariani, 2019).…”