ABSTRACT

Many things which have been obstacles in the older days concerning the performance as well as the rating of corporate governance can be anticipated by exercising e-corporate governance disclosure. e-Corporate governance disclosure is assumed to have similar characteristics with the ‘former’ Corporate Governance. By optimizing the use of  e-corporate governance disclosure, a company is not only carrying out the principle of transparency as a tone with the good corporate governance practices, but it may also facilitate in increasing the image and stakeholders’ confidence toward the firm performance, whether in a normal condition or a Bearish period.   

            This research is aimed to investigate the influence of e-corporate governance disclosure towards stock return in Bearish period specifically on Indonesian Capital Market, as well as the effect of e-corporate governance disclosure towards firm value and performance. The research samples used are the companies within LQ45 based on certain criteria according to the Internet Based Corporate Governance (IBCG) Rating Index. This research used panel data regression model as the analysis tool to estimate the dependent variables. 

            The result of this research indicates that e-corporate governance disclosure has a negative and significant influence towards stock return in Bearish period on Indonesian Capital Market. Whereas e-corporate governance disclosure is found to have a positive influence towards firm value and performance.  

Keywords: e-Corporate Governance Disclosure, Bearish Period, Stock Return, Firm Value, Firm Performance, and Internet Based Corporate Governance (IBCG) Rating

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