Firm characteristics, ownership structure, and auditor type as determinants of biological asset disclosure in Indonesia
Year: 2025
Type: article
Abstract: Biological assets are subject biological transformation, including growth, production, and reproduction, which creates specific challenges in their measurement and financial reporting. Therefore, adequate disclosure of biological assets is necessary to improve transparency and provide relevant information to financial statement users. This study examines the determinants of biological asset disclosure in agricultural product companies listed on the Indonesia Stock Exchange (IDX) during the 2019-2024 period. The initial sample identified 222 company-year records over the six-year observation period. 67 records that did not met the financial reporting and PSAK 69 standards and 18 outliers were removed, resulting in the final sample of 137 firm-year observations. Multiple linear regression was used to examine the effects of biological asset intensity, firm size, managerial ownership, public accounting firm type, leverage, and profitability on biological asset disclosure. The results indicate that firm size, managerial ownership, and public accounting firm type have positive and statistically significant effects on biological asset disclosure. Conversely, biological asset intensity, leverage, and profitability do not have statistically significant effects at the 5% significance level. While biological asset intensity has a p-value of 0.051, it does not meet the conventional 5% significance threshold. These findings provide empirical evidence of the role of firm characteristics, ownership structure, and auditor type in explaining biological asset disclosure practices among Indonesian agricultural product companies.
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7225697994