Moderating effect of internal control system to determinants influencing the financial statement disclosure

This paper aims to examine the impact of Good Corporate Governance (GCG) practice on bank stability and performance. Governance is measured using the GCG rating that covers eleven aspects. The authors apply instrumental regression to link governance to performance and stability. The study covers a sample of 150 banks. The result shows that bank stability can mediate bank governance and bank performance. On the determinant of bank performance, it can be concluded that the GCG rating is positive and directly influences bank performance. Bank stability is also positive for bank performance indicating the indirect contribution of the GCG rating to bank performance. NPL, LDR, CAR and bank’s size (LASSET) are all negative and significant. The aim of this paper is to provide strong empirical evidence on the importance of governance and stability for performance. The limitations of this paper are the size of the sample and that it only covers public banks which are theoretically required to apply better governance in all aspects of their business by the Capital Market Authority.

The release of bank’s intellectual capital is one of the important elements of bank’s annual reports. Although it is not presented adequately in the annual reports, voluntary disclosure of bank’s intellectual capital relatively represents the response to the needs of greater information for the users. This research aims to see the influence of corporate governance on the intellectual capital disclosure based on a case study on private banks in Indonesia. The variables to be examined in the research include the Composition of Independent Commissioners as well as The Competence of Audit Committee and Risk Oversight Committee. The samples were taken using purposive sampling, considering particular criteria. As many as 62 banks are selected to be taken as research samples. The data were analyzed using multiple linear regression analysis method. The result of a partial test shows that the Composition of Independent Commissioners has a positive and significant influence on the intellectual capital disclosure; the Competence of Audit Committee has a positive and significant influence on the intellectual capital disclosure; and the Competence of Risk Oversight committee does not influence the intellectual capital disclosure. Meanwhile, the result of a simultaneous test shows that the Composition of Independent Commissioners, the Competence of Audit Committee, and the Competence of Risk Oversight Committee significantly influence the intellectual capital disclosure.

Employee engagement affects the Employer Commitment which has influence on the expression desired by someone in relation to their professional attitude, connecting the work with personal life for psychological, cognitive, emotional, and their personal feelings as a whole, so that employees engagement towards a company will drive the employees’ performance. This is proved by the previous studies, but they have not included individual factors as the force that forms employee engagement or organizational commitment, specifically because seeing how the consequences of employee engagement produced. In this study, the authors consider the influence of individual factors towards organizational commitment mediated by employee engagement, which distinguishes this study from the previous ones. The objectives of this study are: first, to discover how individual factors affect employee engagement; second, to find out how employee engagement affects Organizational Commitment of employees; Third, to discover how individual factors affect organizational commitment. This study is conducted among the respondents all of whom are employees within MICE industry in Indonesia using questionnaire. Data analysis in was performed this study using Structural Equation Modeling (SEM) method. The results of this study show that high individual factors will form high employee engagement, high employee engagement will form high organizational commitment, and high individual factors will form high organizational commitment. In this study, it is found that there is an influence of individual factors towards organizational commitment mediated by employee engagement.