Khairina Nur Izzaty, Yanti Pujiastuti


The purpose of this study is to find empirical evidence of the influence of company characteristics and disclosure practices of segments of manufacturing companies listed on the Indonesia Stock Exchange (IDX) and the factors that affect the level of segment disclosure of these companies. Consistent with previous research related to segment disclosure, in this study, the level of segment disclosure was tested using a disclosure index based on the mandatory requirements in the Statement of Financial Accounting Standards (PSAK) 5 Operating Segments. The results showed that the average level of segment disclosure with a sample of 88 manufacturing companies listed on the IDX from 2016 to 2018 was 51.2% with a range between 12.5% to 91.7%. Users of financial statements from the sample firms expect broader segment disclosure from the larger, more leveraged firms. Furthermore, the results of the study confirm that industry competition, profitability and earnings quality do not have a significant effect on the level of segment disclosure. These results can provide feedback to regulators in Indonesia regarding current segment disclosure practices by companies listed on the IDX as well as the factors that affect the level of segment disclosure.

Full Text:



Alfaraih, M. M., & Alanezi, F. S. (2011). What Explains Variation In Segment Reporting? Evidence From Kuwait. International Business & Economics Research Journal (IBER), 10(7), 31.

Berger, P. G., & Hann, R. N. (2007). Segment Profitability and the Proprietary and Agency Costs of Disclosure. The Accounting Review, 82(4), 869–906.

Blanco, B., García Lara, J. M., & Tribó, J. (2014). The relation between segment disclosure and earnings quality. Journal of Accounting and Public Policy, 33(5), 449–469.

Dechow, P. M., & Dichev, I. D. (2002). The Quality of Accruals and Earnings: The Role of Accrual Estimation Error. The Accounting Review, 77(s-1), 35–59.

Ghozali, I. (2011). Aplikasi Analisis Multivariate dengan Program IBM SPSS 19 (5th ed.). Badan Penerbit Universitas Diponegoro.

Hakim, M. N. N., & Achmad, T. (2020). ANALISIS PENGARUH KOMPETISI INDUSTRI TERHADAP PENGUNGKAPAN SEGMEN OPERASI PERUSAHAANitle. Diponegoro Journal of Accounting, 9(3), 1–11.

Harris, M. S. (1998). The Association Between Competition and Managers’ Business Segment Reporting Decisions. Journal of Accounting Research, 36(1), 111–128.

IAI. (2017). Standar Akuntansi Keuangan Efektif Per 1 Januari 2017 (1st ed.). Ikatan Akuntan Indonesia.

Ibrahim, K. (2014). Firm Characteristics and Voluntary Segments Disclosure among the Largest Firms in Nigeria. International Journal of Trade, Economics and Finance, 5(4), 327–331.

Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305–360.

Kobbi-Fakhfakh, S., Shabou, R. M., & Pigé, B. (2018). Determinants of segment reporting quality: evidence from EU. Journal of Financial Reporting and Accounting, 16(1), 84–107.

Lucas, S. M. R., & Lourenço, I. C. (2014). The effect of firm and country characteristics on mandatory disclosure compliance. International Journal of Managerial and Financial Accounting, 6(2), 87–116.

Muhammad, F., & Siregar, S. V. (2014). Analisis Tingkat Pengungkapan Segmen : Faktor-Faktor Yang Mempengaruhi Dan Dampaknya Terhadap Biaya Ekuitas. Ekuitas: Jurnal Ekonomi Dan Keuangan, 18(80), 330–349.

Nayeri, N., & Salehi, M. (2013). Agency Costs in Islamic Countries: Evidence from Iran. IUP Journal of Accounting Research & Audit Practices, 12(2), 68–76.

Pisano, S., & Landriani, L. (2012). The determinants of segment disclosure : an empirical analysis on Italian listed companies *. Fiancial Reporting, 1, 113–132.

Pratiwi, M. W., & Palupi, A. F. (2017). Analisis Pengaruh Ukuran Perusahaan, Kualitas Audit, Umur Perusahaan, Difusi Kepemilikan, Profitabilitas, Leverage, dan Tingkat Pertumbuhan terhadap Tingkat Pengungkapan Segmen Operasi. Media Riset Akuntansi, 5(1), 1–11.

Prencipe, A. (2004). Proprietary costs and determinants of voluntary segment disclosure: evidence from Italian listed companies. European Accounting Review, 13(2), 319–340.

Ruwanti, S., & Rambe, P. A. (2020). Are Financial Distress and Firm Characteristics Restrict The Operating Segment Disclosure in Marine Industry ? AFEBI Accounting Review, 4(02), 106–116.

Verrecchia, R. E. (1990). Information quality and discretionary disclosure. Journal of Accounting and Economics, 12(4), 365–380.


  • There are currently no refbacks.