The Characteristics of Audit Committee and Intellectual Capital Disclosure in Indonesia Banking Industry

Abstract

The purpose of this study is to investigate the practice of Intellectual Capital Disclosure in Indonesian Banking Industries. In doing so, the study investigate the influence of Audit committee characteristics of banking (size of audit committee, proportion of audit committee independence, frequency meeting of audit committee, background of education of audit committee, women on audit committee, and auditor expertise of audit committee) to Intellectual Capital Disclosure. The level of Intellectual Capital Disclosure is measured with the indexes identified by Sveiby (1997).
Sample consists of the annual report of 15 banks listing in BEI for the year 2008-2011. The the sample is selected by purposive sampling method. This research is conducted by examination of regression, multiple regression, and t test.
The result that overall Intellectual Capital Disclosure are positively associated with audit committee characteristic such as women on audit committee and frequency meeting of audit committee. We find no significant relationship between Intellectual Capital Disclosure and the size of audit committee, the proportion of audit committee independence, background of education of audit committee and auditor expertise of audit committee.