VOLUNTARY DISCLOSURE DECISION ON GO PUBLIC COMPANIES: A Comparative Study on the Manufacture of Voluntary Disclosure in Cigarette Company PT. HM Sampoerna Tbk, PT. Gudang Garam Tbk. and PT BAT Indonesia Tbk in obtaining Public Trust

Amount: VOLUNTARY DISCLOSURE DECISION ON GO PUBLIC COMPANIES: A Comparative Study on the Manufacture of Voluntary Disclosure in Cigarette Company PT. HM Sampoerna Tbk, PT. Gudang Garam Tbk. and PT BAT Indonesia Tbk in obtaining Public Trust

Authors: L. Tri Lestari

Memberships: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya

Publisher: Airlangga University

Abstract

Disclosure is a financial report which is the final product of accounting apart from being the main medium for delivering information by management to parties outside the company or the public, it also contains the company's financial condition and other information, which is used to be communicated to shareholders, creditors, stockholders, salon stockholders and other interested parties.

Disclosure of financial statements can be grouped into two, namely: (1). Mandatory disclosure and (2). Voluntary disclosure (voluntary disclosure).

The purpose of this study was to determine the decision making of the company's management in making Voluntary Disclosure in 3 (three) cigarette companies that have gone public in East Java. By describing the Voluntary Disclosure in the annual reports of the three companies that are informed on the Surabaya Stock Exchange. then compared to obtain general conclusions about the decision to make Voluntary Disclosure.

The results show that based on an analysis of 33 items regarding voluntary disclosure (referring to the opinion of Meek, Meek et. al. 1995) it can be conveyed as follows: The decision to make Voluntary Disclosure in companies that have gone public has a non-uniform framework, from the three categories of information that investigated, which include: (I). Strategic Information, (2). Non-Financial Information and (3). Financial Information. These differences are inseparable, the view of the management on the questions: (1). To whom from the perspective of information should be disclosed? (2) What is the purpose of the information? (3) How much information should be disclosed?

From the types of information disclosed to the public, it shows that not all companies that have gone public feel the need to disclose all information based on these three types to the public. Because the first two types are considered supplementary information only, there are certain companies that view additional information, so it does not have to be fully disclosed to the public. However, financial information, even if minimal from the three companies studied, considers it important to be disclosed to the public in the annual report, as an obligation for companies that have gone public. Thus, the views of the management will determine the extent to which the extent of voluntary disclosure is decided to be informed to the public.

There is a tendency of the three companies studied, to only provide public disclosure of financial information, only on ongoing financial information or definite information on the company. Information that is projected or estimated that will occur in accordance with the company's plans or targets tends not to be informed to the public, for example: information on the projected number of sales for the next year, information on the projected sales profit for the next year and information on the projected amount of cash flow for the following year, Because it is too risky if the company cannot achieve the target as it has been informed to the public.

Likewise with information that is sensitive in the eyes of the public, the three companies studied chose not to provide information to the public, for example: company statements or descriptions of providing equal employment opportunities, regardless of ethnicity, religion and race (Sara).

In addition, from the three companies studied. shows that the information submitted through the Annual Report on the capital market (Surabaya Stock Exchange), indicates that in general the information provided is sufficient for investors to know the company's development.

Keywords: Voluntary Disclosure, Decision Making, Voluntary Elements, the view of management.

sources: http://repository.unair.ac.id/184/