TY - JOUR
T1 - Corporate Governance and Firm-Specific Crash Risk: Evidence from Indonesian Firms in 2016
AU - Diyanty, Vera
PY - 2019
Y1 - 2019
N2 - This research is aimed at investigating whether several dimensions of corporate governance mechanism, namely family ownership, accounting opacity, and Board of Commissioners effectiveness, have effect on one-year-ahead stock price crash risk. Hypothesis test is conducted in 2017 using cross section regression analysis with 277 samples of non-financial firms listed on Indonesia Stock Exchange in 2016. The result of this research does not show that family ownership and accounting opacity have any effect on firm-specific crash risk. Moreover, the result of this research finds that Board of Commissioners effectiveness has negative effect on firm-specific crash risk. This finding supports the notion that sound corporate governance system increases monitoring activities. This, in turn, decreases the tendency of managers to hide and accumulate bad news from outsiders. Hence, reducing firm-specific crash risk.
AB - This research is aimed at investigating whether several dimensions of corporate governance mechanism, namely family ownership, accounting opacity, and Board of Commissioners effectiveness, have effect on one-year-ahead stock price crash risk. Hypothesis test is conducted in 2017 using cross section regression analysis with 277 samples of non-financial firms listed on Indonesia Stock Exchange in 2016. The result of this research does not show that family ownership and accounting opacity have any effect on firm-specific crash risk. Moreover, the result of this research finds that Board of Commissioners effectiveness has negative effect on firm-specific crash risk. This finding supports the notion that sound corporate governance system increases monitoring activities. This, in turn, decreases the tendency of managers to hide and accumulate bad news from outsiders. Hence, reducing firm-specific crash risk.
M3 - Article
SN - 2580-5444
JO - Jurnal Akuntansi dan Bisnis
JF - Jurnal Akuntansi dan Bisnis
ER -