Implications of Shariah on the voluntary disclosure of Indonesian listed companies
Purpose – The purpose of this paper is to investigate and compare the extent of voluntary disclosure in the annual reports of Shariah- and non–Shariah-compliant companies in Indonesia. Further, the study examines the relationship between voluntary disclosure and company characteristics (i.e. size o...
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| Format: | Article |
| Language: | English |
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Emerald Group Publishing Limited
2014
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| Online Access: | http://irep.iium.edu.my/37666/ http://irep.iium.edu.my/37666/1/JFRA_-_Implications_of_Shariah_on_voluntary_disclosures_of_Indonesian_listed_companies.pdf |
| _version_ | 1848781452054888448 |
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| author | Annuar, Hairul Azlan |
| author_facet | Annuar, Hairul Azlan |
| author_sort | Annuar, Hairul Azlan |
| building | IIUM Repository |
| collection | Online Access |
| description | Purpose – The purpose of this paper is to investigate and compare the extent of voluntary disclosure in the annual reports of Shariah- and non–Shariah-compliant companies in Indonesia. Further, the
study examines the relationship between voluntary disclosure and company characteristics (i.e. size of
company, profitability, type of auditor, type of industry and ownership structure).
Design/methodology/approach – Voluntary disclosure was measured using a disclosure index
with 30 items and content analysis of the 2009 annual report. Statistical analysis included descriptive,
Mann–Whitney U and regression.
Findings – The result revealed that there is a statistically significant difference in the quantity and
quality of voluntary disclosure value of Shariah- and non–Shariah-compliant companies. For
regression results, the company size significantly influences the quantity of voluntary disclosure while
the quality of voluntary disclosure is affected by company size and type of industry.
Research limitations/implications – Although this study only analyses voluntary disclosure in
the annual report for a single year (2009), it is hoped to provide a description of the voluntary disclosure
in Shariah- and non–Shariah-compliant companies.
Practical implications – The findings might be used by regulators to set regulations that encourage
the quantity and quality of disclosure practice of Shariah-compliant companies to expand the scope of
disclosure related to religious activities.
Originality/value – This study measures voluntary disclosure using the disclosure index based on
Indonesian regulations and the quantity and quality measurement of Shariah-compliant companies,
which may differ from previous Indonesian studies. |
| first_indexed | 2025-11-14T15:49:47Z |
| format | Article |
| id | iium-37666 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T15:49:47Z |
| publishDate | 2014 |
| publisher | Emerald Group Publishing Limited |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-376662015-10-15T08:34:38Z http://irep.iium.edu.my/37666/ Implications of Shariah on the voluntary disclosure of Indonesian listed companies Annuar, Hairul Azlan HF5601 Accounting. Bookkeeping Purpose – The purpose of this paper is to investigate and compare the extent of voluntary disclosure in the annual reports of Shariah- and non–Shariah-compliant companies in Indonesia. Further, the study examines the relationship between voluntary disclosure and company characteristics (i.e. size of company, profitability, type of auditor, type of industry and ownership structure). Design/methodology/approach – Voluntary disclosure was measured using a disclosure index with 30 items and content analysis of the 2009 annual report. Statistical analysis included descriptive, Mann–Whitney U and regression. Findings – The result revealed that there is a statistically significant difference in the quantity and quality of voluntary disclosure value of Shariah- and non–Shariah-compliant companies. For regression results, the company size significantly influences the quantity of voluntary disclosure while the quality of voluntary disclosure is affected by company size and type of industry. Research limitations/implications – Although this study only analyses voluntary disclosure in the annual report for a single year (2009), it is hoped to provide a description of the voluntary disclosure in Shariah- and non–Shariah-compliant companies. Practical implications – The findings might be used by regulators to set regulations that encourage the quantity and quality of disclosure practice of Shariah-compliant companies to expand the scope of disclosure related to religious activities. Originality/value – This study measures voluntary disclosure using the disclosure index based on Indonesian regulations and the quantity and quality measurement of Shariah-compliant companies, which may differ from previous Indonesian studies. Emerald Group Publishing Limited 2014 Article PeerReviewed application/pdf en http://irep.iium.edu.my/37666/1/JFRA_-_Implications_of_Shariah_on_voluntary_disclosures_of_Indonesian_listed_companies.pdf Annuar, Hairul Azlan (2014) Implications of Shariah on the voluntary disclosure of Indonesian listed companies. Journal of Financial Reporting and Accounting, 12 (1). pp. 76-98. ISSN 1985-2517 http://www.emeraldinsight.com/1985-2517.htm |
| spellingShingle | HF5601 Accounting. Bookkeeping Annuar, Hairul Azlan Implications of Shariah on the voluntary disclosure of Indonesian listed companies |
| title | Implications of Shariah on the voluntary disclosure of
Indonesian listed companies |
| title_full | Implications of Shariah on the voluntary disclosure of
Indonesian listed companies |
| title_fullStr | Implications of Shariah on the voluntary disclosure of
Indonesian listed companies |
| title_full_unstemmed | Implications of Shariah on the voluntary disclosure of
Indonesian listed companies |
| title_short | Implications of Shariah on the voluntary disclosure of
Indonesian listed companies |
| title_sort | implications of shariah on the voluntary disclosure of
indonesian listed companies |
| topic | HF5601 Accounting. Bookkeeping |
| url | http://irep.iium.edu.my/37666/ http://irep.iium.edu.my/37666/ http://irep.iium.edu.my/37666/1/JFRA_-_Implications_of_Shariah_on_voluntary_disclosures_of_Indonesian_listed_companies.pdf |