The Effect Of Geographic Diversification, Competition Level, And Corporate Governance On Risk Disclosure

This study aims to examine the effect of geographic diversification, competition level, and corporate governance on risk disclosure. The method employed in this study is quantitative methods. The sample used in this research is manufacturing companies listed on the Indonesia Stock Exchange (IDX). The type of data used in this study is secondary data in the form of financial statements and annual reports from 2012 to 2016. The sample selection using a purposive sampling method with the number of samples amounted to 395 samples. This study suggests that geographic diversification and competition level are not associated with risk disclosure. The number of factories and operational offices, which are measures of geographical diversification, do not make companies disclose higher risks. While competition level does not capture the level of risk disclosure conducted by the company. Furthermore, corporate governance is positively associated with risk disclosure. Corporate governance is essential to boost management to disclose risk to stakeholders.

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