Vol. 9 No. 2 (2019), Articles
Vol. 9 No. 2 (2019)

The effect of risk disclosure on the cost of equity capital and firm value (An empirical study of manufacturing companies listed on the Indonesia Stock Exchange period 2015-2017)

Articles
DOI: 10.14414/tiar.v9i2.1715
Published 2019-09-10
Eka Sri Sumardani
Universitas Diponegoro, Semarang
Rr Sri Handayani
Universitas Diponegoro, Semarang


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Keywords

Corporate Risk Disclosure
Cost of Equity Capital
Firm Value

How to Cite

Sumardani, Eka Sri, and Rr Sri Handayani. “The Effect of Risk Disclosure on the Cost of Equity Capital and Firm Value (An Empirical Study of Manufacturing Companies Listed on the Indonesia Stock Exchange Period 2015-2017)”. The Indonesian Accounting Review, vol. 9, no. 2, Sept. 2019, pp. 133-41, https://doi.org/10.14414/tiar.v9i2.1715.
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Abstract

This study examines the effect of corporate risk disclosure on cost of equity capital and firm value. It uses the ratio of market value to book value, the ratio of leverage, consumer price index, growth, firm size, independent audit committee, and net profit during the study period and net profit in the previous year as control variables. The population consists of all manufacturing companies listed on the Indonesia Stock Exchange for the period 2015 - 2017. The sample was taken using a purposive sampling method, with the total sample of 99 companies. The data were analyzed using multiple regression analysis to test the hypothesis. The results indicate that corporate risk disclosure has a negative effect on the cost of equity capital but corporate risk disclosure has a positive effect on firm value.

References

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