The Role of Biological Assets Disclosure in Agricultural Companies: A Study in Indonesia

Abstract

This study aims to examine the effect of biological assets disclosure on firm value with ownership concentration as a moderating variable. The sample used in this study was all agricultural companies listed on the Indonesia Stock Exchange in 2015-2018. The sample was selected by purposive sampling method. The analytical tool utilized was a multiple regression analysis using SPSS15. This study's results indicated that disclosure of biological assets positively influenced firm value, and ownership concentration did not affect biological assets disclosure on firm value. This study helps the standards board look at the disclosure of biological assets in Indonesia and increase Indonesian agricultural companies' competitiveness by increasing the disclosure of information on biological assets.

Determinan Pengungkapan Aset Biologis Serta Dampaknya Terhadap Kinerja Keuangan

“…Konsentrasi kepemilikan dapat memberikan gambaran mengenai bagaimana dan siapa yang mengendalikan seluruh atau sebagian besar kepemilikan perusahaan serta kegiatan bisnis suatu perusahaan (Taman & Nugroho, 2011). Penelitian ini menggunakan persentase jumlah kepemilikan saham terbesar dalam suatu perusahaan untuk mengukur konsentrasi kepemilikan (Gonçalves & Lopes, 2014;Al-Thuneibat, 2018;Yurniwati et al, 2018;Khodijah & Utami, 2021). Konsentrasi kepemilikan dapat dirumuskan sebagai berikut:…”

The impact of biological asset disclosures and economic sustainability on firm value: Evidence from agricultural companies in Indonesia

“…Meanwhile, studies on the association between biological asset disclosure and the value of the firm exhibit contradictory results. In the Indonesian context, Alfarisyi et al [15] and Khodijah and Utami [21] find that the level of biological asset disclosures is likely to increase the value of the firm, while Domo and Utami's study [22] reveals that such disclosures have no relationship with firm value. The present study applies signaling theory to develop hypothesis of the positive effect of biological asset disclosures of firm value.…”