The determinant of risk disclosure in the Indonesian non-listed banks

The study aims to explain the extent of risk disclosure of Indonesian non-listed banks’ annual reports and to investigate the determinants which drive non-listed banks to disclose their risk. Risk disclosure is measured by Indonesian risk keywords divided by total number of sentences in annual reports. The result showed that total number of risk keyword, sentences and risk disclosure in annual reports has an upward trend. Leverage and profitability have negative association with risk disclosure. Aggregated firm characteristics affect non-listed banks to disclose their risk. This result constructs a new method for measuring risk disclosure and enriches the literature related to agency and signalling theories.