Geographic Segment Disclosure in Indonesia

Dian Surya Ayu Fatmawati, Bambang Subroto, Aulia Fuad Rahman

Abstract


The purpose of this study was to examine how Indonesian MNCs (Multinational Companies) disclosed geographic information segment. The significance of this study is highlighted by the effort to empirically investigate the initial impact of Indonesian geographic condition and Indonesian company’s behavior to respond that. Descriptive analysis was used to describe how geographic segment was used in Indonesia. The population of this study were 30 multinational companies listed in Indonesia Stock Exchange (IDX) in the period of 2015-2017. The results showed that most companies used LOB, only 18.75% of which used geographic as the main segment. They tend to disclose geographic information consistently in the number and level of specificity. The companies that used it as a secondary segment revealed a geographic basis with details, but not at a geographic level. It is the company's defense mechanism in responding to user needs and threats from competitors. Those findings help to lead a new insight regarding the implementation of segmental disclosure in the future.


Keywords


Geographic Segment; Level of Specificity Geographic; Number of Segments

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DOI: http://dx.doi.org/10.18415/ijmmu.v5i5.450

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