Mimetic pressures influencing mandatory disclosure of local government financial statements in Indonesia

This study examines the level of mandatory disclosure within financial statements of Indonesian local governments. Indonesia is a developing country that has recently undergone major state financial reform. Isomorphic institutional theory is adopted as the underlying theoretical framework. There is...

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Main Authors: Arifin, J., Tower, Greg, Porter, Stacey
Other Authors: Harry Evans
Format: Conference Paper
Published: Wiley 2012
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/28534
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author Arifin, J.
Tower, Greg
Porter, Stacey
author2 Harry Evans
author_facet Harry Evans
Arifin, J.
Tower, Greg
Porter, Stacey
author_sort Arifin, J.
building Curtin Institutional Repository
collection Online Access
description This study examines the level of mandatory disclosure within financial statements of Indonesian local governments. Indonesia is a developing country that has recently undergone major state financial reform. Isomorphic institutional theory is adopted as the underlying theoretical framework. There is a moderate level of Government Compliance Index (49.9%). The highest level of communication is on issues related to Information on Fiscal Policy (81.2%). Whereas the lowest level of communication is on the Information of Macro Economy (33.6%). Regression analysis shows that the mimetic isomorphism variables, measured by using jurisdiction variables, are positive and significant predictors of the extent of mandatory disclosure. Local governments that are located in Java disclose more than non-Java, local governments which have higher Human Development Index disclose better than the lower score, and the significance of age of local governments imply that older local governments had more experience in dealing with and communicating their mandatory disclosures.
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spelling curtin-20.500.11937-285342017-01-30T13:05:32Z Mimetic pressures influencing mandatory disclosure of local government financial statements in Indonesia Arifin, J. Tower, Greg Porter, Stacey Harry Evans developing countries governmental reporting mandatory disclosure This study examines the level of mandatory disclosure within financial statements of Indonesian local governments. Indonesia is a developing country that has recently undergone major state financial reform. Isomorphic institutional theory is adopted as the underlying theoretical framework. There is a moderate level of Government Compliance Index (49.9%). The highest level of communication is on issues related to Information on Fiscal Policy (81.2%). Whereas the lowest level of communication is on the Information of Macro Economy (33.6%). Regression analysis shows that the mimetic isomorphism variables, measured by using jurisdiction variables, are positive and significant predictors of the extent of mandatory disclosure. Local governments that are located in Java disclose more than non-Java, local governments which have higher Human Development Index disclose better than the lower score, and the significance of age of local governments imply that older local governments had more experience in dealing with and communicating their mandatory disclosures. 2012 Conference Paper http://hdl.handle.net/20.500.11937/28534 Wiley restricted
spellingShingle developing countries
governmental reporting
mandatory disclosure
Arifin, J.
Tower, Greg
Porter, Stacey
Mimetic pressures influencing mandatory disclosure of local government financial statements in Indonesia
title Mimetic pressures influencing mandatory disclosure of local government financial statements in Indonesia
title_full Mimetic pressures influencing mandatory disclosure of local government financial statements in Indonesia
title_fullStr Mimetic pressures influencing mandatory disclosure of local government financial statements in Indonesia
title_full_unstemmed Mimetic pressures influencing mandatory disclosure of local government financial statements in Indonesia
title_short Mimetic pressures influencing mandatory disclosure of local government financial statements in Indonesia
title_sort mimetic pressures influencing mandatory disclosure of local government financial statements in indonesia
topic developing countries
governmental reporting
mandatory disclosure
url http://hdl.handle.net/20.500.11937/28534