The Effect of Managerial Ability on Risk Reporting in Indonesia: Evidence for Energy and Palm Oil Companies

Gentiga Muhammad Zairin; Hera Khairunnisa; Dwi Kismayanti Respati; Nur Afni Camelia Putri; Lim Thien Sang; I Gusti Ketut Agung Ulupui

doi:10.2478/sbe-2024-0058

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The Effect of Managerial Ability on Risk Reporting in Indonesia: Evidence for Energy and Palm Oil Companies

Studies in Business and Economics

Volume 19 (2024): Issue 3 (December 2024)

By: Gentiga Muhammad Zairin, Hera Khairunnisa, Dwi Kismayanti Respati, Nur Afni Camelia Putri, Lim Thien Sang and I Gusti Ketut Agung Ulupui

Open Access

|Jan 2025

Abstract

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.

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Articles in this issue

DOI: https://doi.org/10.2478/sbe-2024-0058 | Journal eISSN: 2344-5416 | Journal ISSN: 1842-4120

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Language: English

Page range: 313 - 334

Published on: Jan 22, 2025

Published by: Lucian Blaga University of Sibiu

In partnership with: Paradigm Publishing Services

Publication frequency: 3 issues per year

Keywords:

Managerial Ability,

Risk Disclosure,

Risk Reporting,

Voluntary Disclosure,

Risk Behavior

Related subjects:

Business and economics,

Business management,

Management accounting, financial controlling, cost calculation, investment,

Management, organization, corporate governance,

Business development, change management, cooperation,

Entrepreneurship

© 2025 Gentiga Muhammad Zairin, Hera Khairunnisa, Dwi Kismayanti Respati, Nur Afni Camelia Putri, Lim Thien Sang, I Gusti Ketut Agung Ulupui, published by Lucian Blaga University of Sibiu
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Volume 19 (2024): Issue 3 (December 2024)