Anti-corruption practice disclosures: Evidence from Indonesia

This paper presents an analysis of anti-corruption disclosures of Indonesian companies, and also examines the determinants, which consist of the company’s size, return on assets, leverage, and age. The research was conducted with samples from five industry categories namely, mining, construction, transportation, communication, and manufacturing, that are prone to corruption based on previous literature. The sample companies were listed on the Indonesian Stock Exchange (IDX) period 2016-2017. This paper used analyses of annual report content taken from the IDX and the company’s website for the anti-corruption disclosure data; while financial data was taken from the Thomson Reuters Eikon database. The results showed the low average score of anticorruption disclosure (16.3%) on 402 research observations. 170 companies have anticorruption disclosures above the average while 232 companies have less than the average. From the five industries, the highest anti-corruption disclosure score is 67.5% (construction sector), and the lowest is 27.5%, which comes from the communication industry. The findings also showed that company’s size was a significant predictor of anti-corruption disclosures, while the other determinants are found to have no association with the level of anti-corruption disclosure.