INFORMATION ASYMMETRY AS THE IMPACT OF DISCLOSURE AND CORPORATE GOVERNANCE STRUCTURE

Abstract

One of the most fundamental components to be considered in implementation of good corporate governance is the establishment of effective corporate hierarchy. The purposes of this study are to find out the effect of corporate governance structure on information asymmetry, the effect of corporate governance structure on disclosure, and the effect of disclosure on information asymmetry in Indonesia banking industry. lbis study applies explanatory research with partial least square! variance based statistical method. The result implied that when corporate governance structure applied properly than the level of disclosure raised. The increasing of disclosure has mitigated information asymmetry in Indonesia banking industry. These results were greatly valuable to the investors for their investment decition making as well as to external parties.

Keywords: information asymmetry, disclosure, ownership, corporate governance