LIQUIDITY RISK DISCLOSURE: A REVIEW OF CORPORATE GOVERNANCE

Shinta Permata Sari(1*), Himmatus Sholikhah(2)

(1) Department of Accounting, Faculty of Economics and Business, Universitas Muhammadiyah Surakarta
(2) Department of Accounting, Faculty of Economics and Business, Universitas Muhammadiyah Surakarta
(*) Corresponding Author

Abstract

Liquidity risk is the potential loss arising from the inability of a company to fulfill its obligations or to fund an increase in assets at maturity without incurring unacceptable costs or losses. The purpose of this study is to analyze the corporate governance factors that influence liquidity risk disclosure. Its factors are the proportion of independent commissioners, audit committees, managerial ownership, and institutional ownership. The sampling technique used a purposive sampling method in consumer goods industrial classification companies listed on the Indonesia Stock Exchange on 2016-2018. The multiple regression uses to analyze the data. Results indicate that the proportion of commissioners and audit committees have an effect on liquidity risk disclosure, meanwhile managerial ownership and institutional ownership have no effect on liquidity risk disclosure.

Keywords: liquidity risk disclosure, the proportion of independent commissioners, audit committees, managerial ownership, institutional ownership.

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DOI: 10.23917/reaksi.v4i2.8723

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