VOLUNTARY DISCLOSURE DECISIONS IN GO PUBLIC COMPANIES: Comparative Study of Making Voluntary Disclosures in the Cigarette Company PT. HM Sampoerna Tbk, PT. Gudang Garam Tbk. and PT BAT Indonesia Tbk in obtaining Public Trust

Title: VOLUNTARY DISCLOSURE DECISIONS IN GO PUBLIC COMPANIES: Comparative Study of Making Voluntary Disclosures in the Cigarette Company PT. HM Sampoerna Tbk, PT. Gudang Garam Tbk. and PT BAT Indonesia Tbk in obtaining Public Trust

Author: L. Tri Lestari

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

Publisher: Universitas Airlangga

Abstract

Disclosure is a financial report which is the final product of accounting, apart from being the main medium for conveying 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 communicate to shareholders, creditors, stockholders, stockholder salons and other interested parties.

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

The purpose of this research is to determine the decision making of company management in making Voluntary Disclosures for 3 (three) cigarette companies that have gone public in East Java. By describing Voluntary Disclosure in the annual reports of the three companies which are disclosed on the Surabaya Stock Exchange. then compared to obtain general conclusions about the decision to make a Voluntary Disclosure.

The results show that based on the 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 included. researched, which includes: (I). Strategic Information, (2). Non-Financial Information and (3). Financial Information. These differences cannot be separated from the management's view of the questions: (1). To whom should the information be disclosed? (2) What is the purpose of the information? (3) How much information must 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 additional information only, there are certain companies that view additional information, so it does not have to be completely disclosed to the public. However, financial information, even though it is minimal for the three companies studied, is considered important to be disclosed to the public in the annual report, as an obligation of companies that have gone public. Thus, the view of management really determines the extent to which voluntary disclosure is decided to be informed to the public.

There is a tendency for the three companies studied to only provide information to the public about financial information, only financial information that has taken place or information that is certain about the company. Information that is in the nature of projections or estimates that will occur in accordance with company plans or targets tends not to be provided to the public, for example: information regarding projected sales figures for the following year, information regarding projected sales profits for the following year and information regarding projected cash flow amounts for the following year, Because it is too risky if the company cannot achieve the target as announced 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 regarding providing equal employment opportunities, regardless of ethnicity, religion and race (Sara).

Apart from that, from the three companies studied. shows that the information conveyed through the Annual Report (Annual Financial Report) on the capital market (Surabaya Stock Exchange), shows that in general the information provided is sufficient for investors to know the company's developments.

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

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