Research Article
Analysis of the Quality of Corporate Information Disclosure: Relevance, Credibility, and Readability in the Digital Disclosure Environment (A Critical Study on the Implementation of POJK No. 8 and 31 of 2015)
@INPROCEEDINGS{10.4108/eai.7-10-2021.2316248, author={Liza Alvia and Jogiyanto Hartono}, title={Analysis of the Quality of Corporate Information Disclosure: Relevance, Credibility, and Readability in the Digital Disclosure Environment (A Critical Study on the Implementation of POJK No. 8 and 31 of 2015)}, proceedings={Proceedings of the 4th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2021, 7 October 2021, Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICEBE}, year={2022}, month={4}, keywords={corporate disclosure relevance credibility readability information quality}, doi={10.4108/eai.7-10-2021.2316248} }- Liza Alvia
Jogiyanto Hartono
Year: 2022
Analysis of the Quality of Corporate Information Disclosure: Relevance, Credibility, and Readability in the Digital Disclosure Environment (A Critical Study on the Implementation of POJK No. 8 and 31 of 2015)
ICEBE
EAI
DOI: 10.4108/eai.7-10-2021.2316248
Abstract
This study aims to investigate individual investors' perceptions of the quality of corporate information disclosure, namely relevance, credibility, and readability. This study uses a Multidimensional Quality Model (MQM) approach by [1]. This study uses an online survey approach to 96 individual investors in Indonesia. The results of this study indicate that individual investors' assessments of relevance, credibility, and readability measures are in line with the concept of information quality in MQM. In addition, this study also shows that the disclosure of corporate information presented on the company's website (according to POJK No. 8 of 2015 and POJK No. 31 of 2015 has varying levels of relevance, credibility, and readability. Investors assess financial highlights which have highly relevance (37%) and readability (85%). Meanwhile, they chose annual financial report as the highest credibility (89%) of corporate information disclosure. This study gives both academic and practice contribution. Academically, it broadens our understanding of information disclosure quality (relevance, credibility, and readability) and provides opportunities for new avenues of research. In practice, it gives suggestions for both management and regulator in designing firm disclosure strategy.