This study examines the influence of proprietary cost, agency cost, external
financing and implementation of PSAK 5 (2009) on the disclosure of cross-segment
earning growth variability of 25 consumer goods firms listed by Jakarta Stock Exchange
Industrial Classification (JASICA) in Indonesian Stock Exchange in year 2010, 2011
and 2012.
The results of this descriptive study are as follows: proprietary cost proxied by
abnormal profitability is negatively associated with the disclosure of cross-segment
earning growth variability. Implementation of PSAK 5 (2009) is positively associated
with the disclosure of cross-segment earning growth variability. Agency cost proxied by
free cash flow and current discretionary accrual do not affect the disclosure of crosssegment
earning growth variability. About the result of external financing, I find that this
independent variable does not associate with the disclosure of cross-segment earning
growth variability.
Keywords:
Disclosure, proprietary cost, agency cost, external financing, PSAK 5 (2009).