The determinants of anti-corruption disclosure: Research on Indonesia Stock Exchange

Abstract

 This research aims to examine and provide empirical evidence on the effects of industry competition, corporate cash holding (CCH), and digital innovation (DI) on anti-corruption disclosure (ACD) and the role of independent commissioners as the moderating variable. The sample comprises 340 non-financial and non-service companies listed on the Indonesia Stock Exchange in 2023, which are analyzed using panel regression. The results show that industry competition, CCH, and DI positively influence ACD. Furthermore, this research identifies independent commissioners as a homologized moderator. Most robust tests show that the control variable, industry type, also exhibits a positive effect on ACD. In conclusion, the government should add items to be disclosed by companies in annual reports related to anti-corruption to discourage unethical practices and oppose corruption. The study’s practical implication is that by increasing transparency about corruption, companies communicate a strong message of opposition to corruption and unethical practices.