Title:
THE EFFECT OF CORPORATE GOVERNANCE ON THE PRACTICE OF OPERATIONAL RISK DISCLOSURE IN INDONESIAN BANK

Authors:
Ricky Handoko, Agung Nur Probohudono, Indonesia

Abstract:

This research aims to see the effect of corporate governance on operational risk disclosure. Corporate governance is implemented by institutional ownership, managerial ownership, board size, proportion of independent commissioners, proportion of female commissioners, number of audit committee meetings. Operational risk disclosures based on Bank Indonesian Regulation No. 11/25/PBI/2009 are mandatory disclosures. Measurement of the dependent variable based on the Lampiran Surat Edaran Bank Indonesia No. 11/3/DPNP/2009 and Circular Letter Attachments of Bank Indonesian No.13/23/DPNP/2011. The results of research show that corporate governance influences disclosure of operational risk through managerial ownership, board size, proportion of independent commissioners, and proportion of female commissioners. The number of audit committee meetings and institutional ownership has no effect on disclosure of operational risk disclosure.