The Effect of Corporate Governance and Firm Size on Anti-Corruption Disclosures in Indonesian Banking

Abstract

Abstract. Corruption remains a critical issue in the Indonesian banking sector, contributing significantly to state financial losses and eroding public trust. Despite regulatory efforts, specific disclosures related to anti-corruption practices remain largely voluntary, leading to varying levels of transparency among banks. This study aims to analyze the determinants of anti-corruption disclosure, specifically focusing on the influence of Corporate Governance and Firm Size in banking companies listed on the Indonesia Stock Exchange. This research employs a quantitative method using secondary data obtained from annual reports spanning the 2019–2023 period. Through the purposive sampling technique, 47 banking companies were selected, resulting in a total of 235 observations. The data were processed using panel data regression analysis with the Fixed Effect Model (FEM) estimation. The results indicate that Corporate Governance does not have a significant effect on anti-corruption disclosure. This finding suggests that high governance scores primarily reflect mandatory administrative compliance with regulations rather than a genuine commitment to voluntary transparency regarding corruption issues. Conversely, Firm Size demonstrates a positive and significant effect on anti-corruption disclosure. This study highlights those larger banks, driven by greater resource availability and higher stakeholder pressure, are more inclined to disclose anti-corruption information to maintain legitimacy and reputation. These findings provide implications for regulators to consider establishing mandatory specific anti-corruption reporting standards beyond general governance assessments.