The Effect of Managerial Ability on Risk Reporting in Indonesia: Evidence for Energy and Palm Oil Companies
Risk reporting is a critical aspect of risk management for energy and palm oil companies as they address complex industry challenges. This article examines the influence of management ability on risk reporting in both industries. The results show that managerial ability has an impact on credit risk...
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| Format: | Article |
| Language: | English |
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Sciendo
2024-12-01
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| Series: | Studies in Business and Economics |
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| Online Access: | https://doi.org/10.2478/sbe-2024-0058 |
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| author | Zairin Gentiga Muhammad Khairunnisa Hera Respati Dwi Kismayanti Putri Nur Afni Camelia Sang Lim Thien Ulupui I Gusti Ketut Agung |
| author_facet | Zairin Gentiga Muhammad Khairunnisa Hera Respati Dwi Kismayanti Putri Nur Afni Camelia Sang Lim Thien Ulupui I Gusti Ketut Agung |
| author_sort | Zairin Gentiga Muhammad |
| collection | DOAJ |
| description | Risk reporting is a critical aspect of risk management for energy and palm oil companies as they address complex industry challenges. This article examines the influence of management ability on risk reporting in both industries. The results show that managerial ability has an impact on credit risk assessment, risk behavior, financial reporting, timeliness, stock price crash risk, and tax results. Management’s discretionary disclosure behavior allows it to exercise subjectivity in determining both the content and manner of disclosure. This research identifies a risk reporting factor associated with competent managers that indicates their desire to disclose risk-related information in annual reports in highly competitive markets. This work complements previous research on competent managers in competitive markets and provides valuable insights into the risk reporting practices of highly skilled managers in such environments. |
| format | Article |
| id | doaj-art-9bbbbfb23f614e18bda1eac1cc58385d |
| institution | Kabale University |
| issn | 2344-5416 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Studies in Business and Economics |
| spelling | doaj-art-9bbbbfb23f614e18bda1eac1cc58385d2025-02-02T15:49:07ZengSciendoStudies in Business and Economics2344-54162024-12-0119331333410.2478/sbe-2024-0058The Effect of Managerial Ability on Risk Reporting in Indonesia: Evidence for Energy and Palm Oil CompaniesZairin Gentiga Muhammad0Khairunnisa Hera1Respati Dwi Kismayanti2Putri Nur Afni Camelia3Sang Lim Thien4Ulupui I Gusti Ketut Agung51Faculty of Economics, Universitas Negeri Jakarta, Indonesia2Faculty of Economics, Universitas Negeri Jakarta, Indonesia3Faculty of Economics, Universitas Negeri Jakarta, Indonesia4Faculty of Economics, Universitas Negeri Jakarta, Indonesia5Faculty Of Business, Economics & Accountancy, Universiti Malaysia Sabah, Malaysia6Faculty of Economics, Universitas Negeri Jakarta, IndonesiaRisk reporting is a critical aspect of risk management for energy and palm oil companies as they address complex industry challenges. This article examines the influence of management ability on risk reporting in both industries. The results show that managerial ability has an impact on credit risk assessment, risk behavior, financial reporting, timeliness, stock price crash risk, and tax results. Management’s discretionary disclosure behavior allows it to exercise subjectivity in determining both the content and manner of disclosure. This research identifies a risk reporting factor associated with competent managers that indicates their desire to disclose risk-related information in annual reports in highly competitive markets. This work complements previous research on competent managers in competitive markets and provides valuable insights into the risk reporting practices of highly skilled managers in such environments.https://doi.org/10.2478/sbe-2024-0058managerial abilityrisk disclosurerisk reportingvoluntary disclosurerisk behavior |
| spellingShingle | Zairin Gentiga Muhammad Khairunnisa Hera Respati Dwi Kismayanti Putri Nur Afni Camelia Sang Lim Thien Ulupui I Gusti Ketut Agung The Effect of Managerial Ability on Risk Reporting in Indonesia: Evidence for Energy and Palm Oil Companies Studies in Business and Economics managerial ability risk disclosure risk reporting voluntary disclosure risk behavior |
| title | The Effect of Managerial Ability on Risk Reporting in Indonesia: Evidence for Energy and Palm Oil Companies |
| title_full | The Effect of Managerial Ability on Risk Reporting in Indonesia: Evidence for Energy and Palm Oil Companies |
| title_fullStr | The Effect of Managerial Ability on Risk Reporting in Indonesia: Evidence for Energy and Palm Oil Companies |
| title_full_unstemmed | The Effect of Managerial Ability on Risk Reporting in Indonesia: Evidence for Energy and Palm Oil Companies |
| title_short | The Effect of Managerial Ability on Risk Reporting in Indonesia: Evidence for Energy and Palm Oil Companies |
| title_sort | effect of managerial ability on risk reporting in indonesia evidence for energy and palm oil companies |
| topic | managerial ability risk disclosure risk reporting voluntary disclosure risk behavior |
| url | https://doi.org/10.2478/sbe-2024-0058 |
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