Independent Board Terhadap Pengungkapan Akuntansi Manajemen Strategis: Peran Proprietary Cost & Cost Of Capital Sebagai Variabel Moderasi
Abstract
Information asymmetry, agency problems and disclosure are important aspects of modern capital markets. This research aims to measure the extent of Strategic Management Accounting (AMS) disclosure and examine the influence of the independent board on the level of AMS disclosure. This research uses proprietary cost and cost of capital as moderating variables. This research uses data from 545 manufacturing companies listed on the Indonesia Stock Exchange from 2016 - 2020. This research uses multiple linear regression with panel data to test the influence of independent boards on the level of AMS disclosure. In addition, this research uses Moderated Regression Analysis to test the role of proprietary costs and cost of capital as moderating variables. The research results show that independent boards have a positive effect on AMS disclosure when there is a trade-off between the benefits and costs of AMS reporting for shareholders.
Keywords: Independent Boards; SMA Disclosure; Proprietary Cost; Cost of Capital
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References
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Ahmed, N., & Afza, T. (2019). Capital structure, competitive intensity and firm performance: Evidence from Pakistan. Journal of Advances in Management Research, 16(5), 796–813. https://doi.org/10.1108/JAMR-02-2019-0018
Akerlof, G. A. (1978). 15 - THE MARKET FOR “LEMONS”: QUALITY UNCERTAINTY AND THE MARKET MECHANISM**The author would especially like to thank Thomas Rothenberg for invaluable comments and inspiration. In addition he is indebted to Roy Radner, Albert Fishlow, Bernard Saffran, William D. Nordhaus, Giorgio La Malfa, Charles C. Holt, John Letiche, and the referee for help and suggestions. He would also like to thank the Indian Statistical Institute and the Ford Foundation for financial support. In P. Diamond & M. Rothschild (Eds.), Uncertainty in Economics (pp. 235–251). Academic Press. https://doi.org/10.1016/B978-0-12-214850-7.50022-X
AlMaryani, M. A. H., & Sadik, H. H. (2012). Strategic Management Accounting Techniques in Romanian Companies: Some Survey Evidence. Procedia Economics and Finance, 3, 387–396. https://doi.org/10.1016/S2212-5671(12)00169-4
Bourveau, T., & Schoenfeld, J. (2017). Shareholder activism and voluntary disclosure. Review of Accounting Studies, 22(3), 1307–1339. https://doi.org/10.1007/s11142-017-9408-0
Bromwich, M. (1990). The case for strategic management accounting: The role of accounting information for strategy in competitive markets. Accounting, Organizations and Society, 15(1), 27–46. https://doi.org/10.1016/0361-3682(90)90011-I
Cespa, G., & Cestone, G. (2007). Corporate Social Responsibility and Managerial Entrenchment. Journal of Economics & Management Strategy, 16(3), 741–771. https://doi.org/10.1111/j.1530-9134.2007.00156.x
Chen, C., Martin, X., Roychowdhury, S., Wang, X., & Billett, M. T. (2017). Clarity Begins at Home: Internal Information Asymmetry and External Communication Quality. The Accounting Review, 93(1), 71–101. https://doi.org/10.2308/accr-51842
Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4), 303–327. https://doi.org/10.1016/j.aos.2007.05.003
Coles, J. L., Loewenstein, U., & Suay, J. (1995). On Equilibrium Pricing under Parameter Uncertainty. Journal of Financial and Quantitative Analysis, 30(3), 347–364. https://doi.org/10.2307/2331345
Dhaliwal, D. S., Li, O. Z., Tsang, A., & Yang, Y. G. (2011). Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting. The Accounting Review, 86(1), 59–100.
Fama, E. F., & Jensen, M. C. (1983). Separation of Ownership and Control. The Journal of Law and Economics, 26(2), 301–325. https://doi.org/10.1086/467037
Ferreira, D., & Rezende, M. (2007). Corporate strategy and information disclosure. RAND Journal of Economics, 38(1), 164–184.
Ferrero-Ferrero, I., Fernández-Izquierdo, M. Á., & Muñoz-Torres, M. J. (2015). Integrating Sustainability into Corporate Governance: An Empirical Study on Board Diversity. Corporate Social Responsibility and Environmental Management, 22(4), 193–207. https://doi.org/10.1002/csr.1333
Franks, J., Mayer, C., & Renneboog, L. (2001). Who Disciplines Management in Poorly Performing Companies? Journal of Financial Intermediation, 10(3), 209–248. https://doi.org/10.1006/jfin.2001.0317
García-Sánchez, I. M., & Martínez-Ferrero, J. (2017). Independent Directors and CSR Disclosures: The moderating effects of proprietary costs. Corporate Social Responsibility and Environmental Management, 24(1), 28–43. https://doi.org/10.1002/csr.1389
García-Sánchez, I.-M., Frias-Aceituno, J. V., & Garcia-Rubio, R. (2012). Determining Factors of Audit Committee Attributes: Evidence from Spain. International Journal of Auditing, 16(2), 184–213. https://doi.org/10.1111/j.1099-1123.2012.00451.x
Glaum, M., Baetge, J., Grothe, A., & Oberdörster, T. (2013). Introduction of International Accounting Standards, Disclosure Quality and Accuracy of Analysts’ Earnings Forecasts. European Accounting Review, 22(1), 79–116. https://doi.org/10.1080/09638180.2011.558301
Goodstein, J., Gautam, K., & Boeker, W. (1994). The effects of board size and diversity on strategic change. Strategic Management Journal, 15(3), 241–250. https://doi.org/10.1002/smj.4250150305
Haniffa, R. M., & Cooke, T. E. (2002). Culture, Corporate Governance and Disclosure in Malaysian Corporations. Abacus, 38(3), 317–349. https://doi.org/10.1111/1467-6281.00112
Hendry, K., & Kiel, G. C. (2004). The Role of the Board in Firm Strategy: Integrating agency and organisational control perspectives. Corporate Governance: An International Review, 12(4), 500–520. https://doi.org/10.1111/j.1467-8683.2004.00390.x
Hill, C. W. L., & Jones, T. M. (1992). Stakeholder-Agency Theory. Journal of Management Studies, 29(2), 131–154. https://doi.org/10.1111/j.1467-6486.1992.tb00657.x
Honggowati, S., Rahmawati, R., Aryani, Y. A., & Probohudono, A. N. (2019). Strategic Management Accounting disclosure, ownership structure, and firm characteristics in Indonesia manufacturing companies. Jurnal Keuangan Dan Perbankan, 23(3), Article 3. https://doi.org/10.26905/jkdp.v23i3.3228
Ibrahim, N. A., & Angelidis, J. P. (1995). The corporate social responsiveness orientation of board members: Are there differences between inside and outside directors? Journal of Business Ethics, 14(5), 405–410. https://doi.org/10.1007/BF00872102
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Kang, H., Cheng, M., & Gray, S. J. (2007). Corporate Governance and Board Composition: Diversity and independence of Australian boards. Corporate Governance: An International Review, 15(2), 194–207. https://doi.org/10.1111/j.1467-8683.2007.00554.x
Khlif, H., Ahmed, K., & Souissi, M. (2017). Ownership structure and voluntary disclosure: A synthesis of empirical studies. Australian Journal of Management, 42(3), 376–403.
Lagasio, V., & Cucari, N. (2019). Corporate governance and environmental social governance disclosure: A meta-analytical review. Corporate Social Responsibility and Environmental Management, 26(4), 701–711. https://doi.org/10.1002/csr.1716
Lim, S., Matolcsy, Z., & Chow, D. (2007). The Association between Board Composition and Different Types of Voluntary Disclosure. European Accounting Review, 16(3), 555–583. https://doi.org/10.1080/09638180701507155
Ma, Y., & Tayles, M. (2009). On the emergence of strategic management accounting: An institutional perspective. Accounting and Business Research, 39(5), 473–495. https://doi.org/10.1080/00014788.2009.9663379
Martínez-Ferrero, J., Banerjee, S., & García-Sánchez, I. M. (2016). Corporate Social Responsibility as a Strategic Shield Against Costs of Earnings Management Practices. Journal of Business Ethics, 133(2), 305–324. https://doi.org/10.1007/s10551-014-2399-x
Michelon, G., & Parbonetti, A. (2012). The effect of corporate governance on sustainability disclosure. Journal of Management & Governance, 16(3), 477–509. https://doi.org/10.1007/s10997-010-9160-3
Morris, R. D., & Tronnes, P. C. (2018). The determinants of voluntary strategy disclosure: An international comparison. Accounting Research Journal, 31(3), 423–441. https://doi.org/10.1108/ARJ-10-2015-0126
Ortas, E., Álvarez, I., & Zubeltzu, E. (2017). Firms’ Board Independence and Corporate Social Performance: A Meta-Analysis. Sustainability, 9(6), Article 6. https://doi.org/10.3390/su9061006
Patelli, L., & Prencipe, A. (2007). The Relationship between Voluntary Disclosure and Independent Directors in the Presence of a Dominant Shareholder. European Accounting Review, 16(1), 5–33. https://doi.org/10.1080/09638180701265820
Petera, P., & Šoljaková, L. (2020). Use of strategic management accounting techniques by companies in the Czech Republic. Economic Research-Ekonomska Istraživanja, 33(1), 46–67.
Plumlee, M., Brown, D., Hayes, R. M., & Marshall, R. S. (2015). Voluntary environmental disclosure quality and firm value: Further evidence. Journal of Accounting and Public Policy, 34(4), 336–361. https://doi.org/10.1016/j.jaccpubpol.2015.04.004
Prado-Lorenzo, J.-M., & Garcia-Sanchez, I.-M. (2010). The Role of the Board of Directors in Disseminating Relevant Information on Greenhouse Gases. Journal of Business Ethics, 97(3), 391–424. https://doi.org/10.1007/s10551-010-0515-0
Rashid, A., & Hoque, A. (2011). Corporate capital structure and firm performance: Evidence from Bangladesh. Academy of Taiwan Business Management Review, 7(2), Article 2.
Rodriguez-Fernandez, M. (2016). Social responsibility and financial performance: The role of good corporate governance. BRQ Business Research Quarterly, 19(2), 137–151. https://doi.org/10.1016/j.brq.2015.08.001
Rupley, K. H., Brown, D., & Marshall, R. S. (2012). Governance, media and the quality of environmental disclosure. Journal of Accounting and Public Policy, 31(6), 610–640. https://doi.org/10.1016/j.jaccpubpol.2012.09.002
Sieber, T., Weißenberger, B. E., Oberdörster, T., & Baetge, J. (2014). Let’s talk strategy: The impact of voluntary strategy disclosure on the cost of equity capital. Business Research, 7(2), 263–312. https://doi.org/10.1007/s40685-014-0010-z
Simmonds, K. (1982). Strategic Management Accounting for Pricing: A Case Example. Accounting and Business Research, 12(47), 206–214. https://doi.org/10.1080/00014788.1982.9728809
Thorne, L., S. Mahoney, L., & Manetti, G. (2014). Motivations for issuing standalone CSR reports: A survey of Canadian firms. Accounting, Auditing & Accountability Journal, 27(4), 686–714. https://doi.org/10.1108/AAAJ-07-2013-1393
Uyar, A., Kilic, M., Koseoglu, M. A., Kuzey, C., & Karaman, A. S. (2020). The link among board characteristics, corporate social responsibility performance, and financial performance: Evidence from the hospitality and tourism industry. Tourism Management Perspectives, 35, 100714. https://doi.org/10.1016/j.tmp.2020.100714
Wang, M., & Hussainey, K. (2013). Voluntary forward-looking statements driven by corporate governance and their value relevance. Journal of Accounting and Public Policy, 32(3), 26–49. https://doi.org/10.1016/j.jaccpubpol.2013.02.009
Ahmed, N., & Afza, T. (2019). Capital structure, competitive intensity and firm performance: Evidence from Pakistan. Journal of Advances in Management Research, 16(5), 796–813. https://doi.org/10.1108/JAMR-02-2019-0018
Akerlof, G. A. (1978). 15 - THE MARKET FOR “LEMONS”: QUALITY UNCERTAINTY AND THE MARKET MECHANISM**The author would especially like to thank Thomas Rothenberg for invaluable comments and inspiration. In addition he is indebted to Roy Radner, Albert Fishlow, Bernard Saffran, William D. Nordhaus, Giorgio La Malfa, Charles C. Holt, John Letiche, and the referee for help and suggestions. He would also like to thank the Indian Statistical Institute and the Ford Foundation for financial support. In P. Diamond & M. Rothschild (Eds.), Uncertainty in Economics (pp. 235–251). Academic Press. https://doi.org/10.1016/B978-0-12-214850-7.50022-X
AlMaryani, M. A. H., & Sadik, H. H. (2012). Strategic Management Accounting Techniques in Romanian Companies: Some Survey Evidence. Procedia Economics and Finance, 3, 387–396. https://doi.org/10.1016/S2212-5671(12)00169-4
Bourveau, T., & Schoenfeld, J. (2017). Shareholder activism and voluntary disclosure. Review of Accounting Studies, 22(3), 1307–1339. https://doi.org/10.1007/s11142-017-9408-0
Bromwich, M. (1990). The case for strategic management accounting: The role of accounting information for strategy in competitive markets. Accounting, Organizations and Society, 15(1), 27–46. https://doi.org/10.1016/0361-3682(90)90011-I
Cespa, G., & Cestone, G. (2007). Corporate Social Responsibility and Managerial Entrenchment. Journal of Economics & Management Strategy, 16(3), 741–771. https://doi.org/10.1111/j.1530-9134.2007.00156.x
Chen, C., Martin, X., Roychowdhury, S., Wang, X., & Billett, M. T. (2017). Clarity Begins at Home: Internal Information Asymmetry and External Communication Quality. The Accounting Review, 93(1), 71–101. https://doi.org/10.2308/accr-51842
Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4), 303–327. https://doi.org/10.1016/j.aos.2007.05.003
Coles, J. L., Loewenstein, U., & Suay, J. (1995). On Equilibrium Pricing under Parameter Uncertainty. Journal of Financial and Quantitative Analysis, 30(3), 347–364. https://doi.org/10.2307/2331345
Dhaliwal, D. S., Li, O. Z., Tsang, A., & Yang, Y. G. (2011). Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting. The Accounting Review, 86(1), 59–100.
Fama, E. F., & Jensen, M. C. (1983). Separation of Ownership and Control. The Journal of Law and Economics, 26(2), 301–325. https://doi.org/10.1086/467037
Ferreira, D., & Rezende, M. (2007). Corporate strategy and information disclosure. RAND Journal of Economics, 38(1), 164–184.
Ferrero-Ferrero, I., Fernández-Izquierdo, M. Á., & Muñoz-Torres, M. J. (2015). Integrating Sustainability into Corporate Governance: An Empirical Study on Board Diversity. Corporate Social Responsibility and Environmental Management, 22(4), 193–207. https://doi.org/10.1002/csr.1333
Franks, J., Mayer, C., & Renneboog, L. (2001). Who Disciplines Management in Poorly Performing Companies? Journal of Financial Intermediation, 10(3), 209–248. https://doi.org/10.1006/jfin.2001.0317
García-Sánchez, I. M., & Martínez-Ferrero, J. (2017). Independent Directors and CSR Disclosures: The moderating effects of proprietary costs. Corporate Social Responsibility and Environmental Management, 24(1), 28–43. https://doi.org/10.1002/csr.1389
García-Sánchez, I.-M., Frias-Aceituno, J. V., & Garcia-Rubio, R. (2012). Determining Factors of Audit Committee Attributes: Evidence from Spain. International Journal of Auditing, 16(2), 184–213. https://doi.org/10.1111/j.1099-1123.2012.00451.x
Glaum, M., Baetge, J., Grothe, A., & Oberdörster, T. (2013). Introduction of International Accounting Standards, Disclosure Quality and Accuracy of Analysts’ Earnings Forecasts. European Accounting Review, 22(1), 79–116. https://doi.org/10.1080/09638180.2011.558301
Goodstein, J., Gautam, K., & Boeker, W. (1994). The effects of board size and diversity on strategic change. Strategic Management Journal, 15(3), 241–250. https://doi.org/10.1002/smj.4250150305
Haniffa, R. M., & Cooke, T. E. (2002). Culture, Corporate Governance and Disclosure in Malaysian Corporations. Abacus, 38(3), 317–349. https://doi.org/10.1111/1467-6281.00112
Hendry, K., & Kiel, G. C. (2004). The Role of the Board in Firm Strategy: Integrating agency and organisational control perspectives. Corporate Governance: An International Review, 12(4), 500–520. https://doi.org/10.1111/j.1467-8683.2004.00390.x
Hill, C. W. L., & Jones, T. M. (1992). Stakeholder-Agency Theory. Journal of Management Studies, 29(2), 131–154. https://doi.org/10.1111/j.1467-6486.1992.tb00657.x
Honggowati, S., Rahmawati, R., Aryani, Y. A., & Probohudono, A. N. (2019). Strategic Management Accounting disclosure, ownership structure, and firm characteristics in Indonesia manufacturing companies. Jurnal Keuangan Dan Perbankan, 23(3), Article 3. https://doi.org/10.26905/jkdp.v23i3.3228
Ibrahim, N. A., & Angelidis, J. P. (1995). The corporate social responsiveness orientation of board members: Are there differences between inside and outside directors? Journal of Business Ethics, 14(5), 405–410. https://doi.org/10.1007/BF00872102
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Kang, H., Cheng, M., & Gray, S. J. (2007). Corporate Governance and Board Composition: Diversity and independence of Australian boards. Corporate Governance: An International Review, 15(2), 194–207. https://doi.org/10.1111/j.1467-8683.2007.00554.x
Khlif, H., Ahmed, K., & Souissi, M. (2017). Ownership structure and voluntary disclosure: A synthesis of empirical studies. Australian Journal of Management, 42(3), 376–403.
Lagasio, V., & Cucari, N. (2019). Corporate governance and environmental social governance disclosure: A meta-analytical review. Corporate Social Responsibility and Environmental Management, 26(4), 701–711. https://doi.org/10.1002/csr.1716
Lim, S., Matolcsy, Z., & Chow, D. (2007). The Association between Board Composition and Different Types of Voluntary Disclosure. European Accounting Review, 16(3), 555–583. https://doi.org/10.1080/09638180701507155
Ma, Y., & Tayles, M. (2009). On the emergence of strategic management accounting: An institutional perspective. Accounting and Business Research, 39(5), 473–495. https://doi.org/10.1080/00014788.2009.9663379
Martínez-Ferrero, J., Banerjee, S., & García-Sánchez, I. M. (2016). Corporate Social Responsibility as a Strategic Shield Against Costs of Earnings Management Practices. Journal of Business Ethics, 133(2), 305–324. https://doi.org/10.1007/s10551-014-2399-x
Michelon, G., & Parbonetti, A. (2012). The effect of corporate governance on sustainability disclosure. Journal of Management & Governance, 16(3), 477–509. https://doi.org/10.1007/s10997-010-9160-3
Morris, R. D., & Tronnes, P. C. (2018). The determinants of voluntary strategy disclosure: An international comparison. Accounting Research Journal, 31(3), 423–441. https://doi.org/10.1108/ARJ-10-2015-0126
Ortas, E., Álvarez, I., & Zubeltzu, E. (2017). Firms’ Board Independence and Corporate Social Performance: A Meta-Analysis. Sustainability, 9(6), Article 6. https://doi.org/10.3390/su9061006
Patelli, L., & Prencipe, A. (2007). The Relationship between Voluntary Disclosure and Independent Directors in the Presence of a Dominant Shareholder. European Accounting Review, 16(1), 5–33. https://doi.org/10.1080/09638180701265820
Petera, P., & Šoljaková, L. (2020). Use of strategic management accounting techniques by companies in the Czech Republic. Economic Research-Ekonomska Istraživanja, 33(1), 46–67.
Plumlee, M., Brown, D., Hayes, R. M., & Marshall, R. S. (2015). Voluntary environmental disclosure quality and firm value: Further evidence. Journal of Accounting and Public Policy, 34(4), 336–361. https://doi.org/10.1016/j.jaccpubpol.2015.04.004
Prado-Lorenzo, J.-M., & Garcia-Sanchez, I.-M. (2010). The Role of the Board of Directors in Disseminating Relevant Information on Greenhouse Gases. Journal of Business Ethics, 97(3), 391–424. https://doi.org/10.1007/s10551-010-0515-0
Rashid, A., & Hoque, A. (2011). Corporate capital structure and firm performance: Evidence from Bangladesh. Academy of Taiwan Business Management Review, 7(2), Article 2.
Rodriguez-Fernandez, M. (2016). Social responsibility and financial performance: The role of good corporate governance. BRQ Business Research Quarterly, 19(2), 137–151. https://doi.org/10.1016/j.brq.2015.08.001
Rupley, K. H., Brown, D., & Marshall, R. S. (2012). Governance, media and the quality of environmental disclosure. Journal of Accounting and Public Policy, 31(6), 610–640. https://doi.org/10.1016/j.jaccpubpol.2012.09.002
Sieber, T., Weißenberger, B. E., Oberdörster, T., & Baetge, J. (2014). Let’s talk strategy: The impact of voluntary strategy disclosure on the cost of equity capital. Business Research, 7(2), 263–312. https://doi.org/10.1007/s40685-014-0010-z
Simmonds, K. (1982). Strategic Management Accounting for Pricing: A Case Example. Accounting and Business Research, 12(47), 206–214. https://doi.org/10.1080/00014788.1982.9728809
Thorne, L., S. Mahoney, L., & Manetti, G. (2014). Motivations for issuing standalone CSR reports: A survey of Canadian firms. Accounting, Auditing & Accountability Journal, 27(4), 686–714. https://doi.org/10.1108/AAAJ-07-2013-1393
Uyar, A., Kilic, M., Koseoglu, M. A., Kuzey, C., & Karaman, A. S. (2020). The link among board characteristics, corporate social responsibility performance, and financial performance: Evidence from the hospitality and tourism industry. Tourism Management Perspectives, 35, 100714. https://doi.org/10.1016/j.tmp.2020.100714
Wang, M., & Hussainey, K. (2013). Voluntary forward-looking statements driven by corporate governance and their value relevance. Journal of Accounting and Public Policy, 32(3), 26–49. https://doi.org/10.1016/j.jaccpubpol.2013.02.009
Published
2023-10-30
How to Cite
HONGGOWATI, Setianingtyas et al.
Independent Board Terhadap Pengungkapan Akuntansi Manajemen Strategis: Peran Proprietary Cost & Cost Of Capital Sebagai Variabel Moderasi.
E-Jurnal Akuntansi, [S.l.], v. 33, n. 10, p. 2798-2813, oct. 2023.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/105298>. Date accessed: 21 nov. 2024.
doi: https://doi.org/10.24843/EJA.2023.v33.i10.p19.
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