Pengungkapan Kuantitatif dan Kualitatif Segmen Operasi Berdasarkan PSAK 5 Revisi 2009 (Penyesuaian 2015) di Indonesia

Reporting of operating segments has become an important concern, therefore there is a PSAK 5 regulation which is continuously updated based on IFRS 8 to improve operating segment reporting. This study aims to examine the application of operating segment disclosure and its determinants in public companies in Indonesia.This research method is quantitative method. The operating segment in the financial statements of the LQ 45 Index’s Company in 2016 is analyzed by scoring to the items required by PSAK 5 Revised 2009 (Amandement 2015). The results showed that the majority cozmpany's compliance level of quantitative information is medium level of compliance,. Quantitative disclosure shows the most reported items are profit loss and total assets, meanwhile the least reported item is other non current assets and main customer information . Meanwhile, the most reported item of qualitative disclosure is the main products and services which generate revenues for the operating segments. This study shows that companies disclose more quantitative information than qualitative. In addition, the good corporate governance mechanism that determines the extent of disclosure of operating segments is institutional ownership and the board of directors. This research has implications for operating segment regulators to do better and contribute to the agency theory and signaling theory.

Under What Conditions Does the Manager Withhold Segment Information?

This paper considers how a manager decides to disclose or withhold segment information in a capital market setting. In particular, we develop a multi-period model in which a manager in each period decides how to allocate her effort between two businesses. The profit earned in each segment is determined by the manager’s effort and ability as well as each segment’s market profitability and inherent uncertainty. In this setting, in contrast to the expectation of segment disclosure being withheld due to conflicts of interest between managers and shareholders, we identify the conditions under which the manager rationally withholds segment information and achieves higher social welfare. In a setting where the manager is concerned about the current stock price, disclosing more disaggregated information to the stock market does not necessarily lead to more efficient monitoring. The capital market values various segment earnings differently, and in response to this valuation, a rational manager may greatly alter her behavior, leading to inefficient outcomes.

DETERMINANTS OF THE QUALITY OF OPERATING SEGMENT DISCLOSURE

The Indonesian government encourages the manufacturing sector to diversify its business. The operating segments disclosures will be more important. Meanwhile, the provisions regarding this disclosure are still voluntary. There are several studies in Indonesia. However, the proxies used do not reflect the quality of the operating segment disclosures comprehensively. Therefore, this study aims to get empirical evidence on the determinants of the quality of operating segment disclosure by using Reporting Quality Index. The population was manufacturing companies listed on the IDX for 2015 - 2018. The data analysis technique uses multiple linear regression. The results show that firm size, leverage, degree of internationalization, and audit quality have a positive effect, while industry competition, profitability, and company growth have no effect on the quality of disclosure in the operating segment. This implies that external pressures have higher impact.

Major customer network structure and supplier trade credit

PurposeThis study investigates how a firm's structural embeddedness, the structural position in a supply network that consists of major customers, influences the acquisition of supplier trade credit. Specifically, this study examines how network interconnectedness, network integration and network independence of a firm affect its ability to acquire supplier trade credit.Design/methodology/approachThis study utilizes financial data from Compustat to build a longitudinal dataset of manufacturing firms from 1998 to 2013. Customer segment disclosure data are used to construct firm-level network variables. A fixed effect regression approach is used for estimation.FindingsThe study results show that network interconnectedness is negatively associated with supplier trade credit, while network integration is positively associated with supplier trade credit. Network independence does not influence the extent of supplier trade credit. The post hoc analysis shows that the effects of the hypothesized factors vary under different product categories and credit ratings.Originality/valueThis study broadens the supply chain finance literature by showing how a firm's embedded network structural position can influence its ability to obtain supplier trade credit.

Are Financial Distress and Firm Characteristics Restrict The Operatin Segment Disclosure in Marine Industry?

<em>This study aims to examine the effect of financial distress and several factors on company characteristics, firm size, audit quality and public ownership at the level of disclosure of operating segments in marine companies listed on the Indonesia Stock Exchange. 24 populations were observed from 2013 to 2017 and obtained a sample of 10 marine sector companies with purposive sampling method. Observation results obtained an average operating segment disclosure rate of 69%. We found companies with financial difficulties limiting disclosure of operating segments. We also find public ownership influencing the level of disclosure of operating segments. However, it failed to prove the effect of firm size and auditor quality on the operating segment disclosure level </em>