The Impact of Corporate Governance, Technology-Based Risk Management, and Reporting Transparency on Investor Confidence in Indonesia's Technology Industry
DOI:
https://doi.org/10.58812/wsis.v4i01.2590Keywords:
Corporate Governance, Technology-Based Risk Management, Reporting Transparency, Investor Confidence, Indonesian Technology IndustryAbstract
This study investigates the impact of corporate governance, technology-based risk management, and reporting transparency on investor confidence in the Indonesian technology industry. Employing a quantitative research design, data were collected from 135 respondents with experience and knowledge related to investment and technology-based firms in Indonesia using a structured questionnaire measured on a Likert scale. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS 3) to examine the relationships among the proposed constructs. The results reveal that corporate governance has a positive and significant effect on investor confidence, indicating that effective governance mechanisms enhance trust and reduce perceived agency problems. Technology-based risk management is also found to positively influence investor confidence, suggesting that the adoption of digital tools and systems for risk identification and mitigation signals organizational resilience and preparedness. Furthermore, reporting transparency demonstrates the strongest positive effect on investor confidence, emphasizing the critical role of clear, accurate, and timely disclosure in reducing information asymmetry. Collectively, the findings suggest that strengthening governance practices, leveraging technology in risk management, and improving reporting transparency are essential strategies for enhancing investor confidence and supporting sustainable growth in Indonesia’s technology sector. This study contributes to the literature on corporate governance and investment behavior in emerging markets and offers practical insights for managers, regulators, and investors.
References
[1] F. Dwi Krisdianto and S. Gunawan, “Analisis Strategi Bisnis Percetakan Di Era Digitalisasi Pada Segmen Produk Label Dan Kemasan Studi Pada Perusahaan Pt. Xyz,” JMBI UNSRAT (Jurnal Ilm. Manaj. Bisnis dan Inov. Univ. Sam Ratulangi)., vol. 10, no. 2, pp. 1327–1344, 2023, doi: 10.35794/jmbi.v10i2.49846.
[2] M. Kutila, K. Kauvo, P. Aalto, V. G. Martinez, and ..., “5G network performance experiments for automated car functions,” 2020 IEEE 3rd 5G …, 2020.
[3] P. Trakadas, P. Karkazis, H. C. Leligou, and ..., “Comparison of management and orchestration solutions for the 5G era,” J. Sens. …, 2020.
[4] M. A. K. Harahap, R. N. Wurarah, A. Fathurohman, A. Suroso, and Y. Iskandar, “Globalization Substance And Industrial Revolution 4.0 And The Role Of Technological Innovation For Economic Development Towards Entrepreneurship,” J. Bisnisman Ris. Bisnis dan Manaj., vol. 4, no. 3, pp. 37–51, 2023, doi: 10.52005/bisnisman.v4i3.122.
[5] P. S. Sutar, G. Kolte, S. Yamini, and K. Mathiyazhagan, “Food supply chain resilience in the digital era: a bibliometric analysis and development of conceptual framework,” J. Bus. Ind. Mark., vol. 39, no. 9, pp. 1863–1893, 2024, doi: 10.1108/JBIM-10-2023-0587.
[6] L. Myeza and Z. Varachia, “Analysis of the relationship between certain audit committee characteristics and key audit matters disclosed in the audit reports of South African state-owned …,” … J. Account. &Auditing …, 2023.
[7] R. Jacobi and E. Brenner, “How large corporations survive digitalization,” Digit. Mark. unleashed, 2018, doi: 10.1007/978-3-662-49275-8_11.
[8] P. Lartey, I. G. Akolgo, S. R. Jaladi, S. Ayeduvor, and S. O. Afriyie, “Recent advances in internal control: Soft control overcoming the limits of hard control,” Front. Manag. Bus., vol. 4, no. 1 SE-Review, Mar. 2023, doi: 10.25082/FMB.2023.01.004.
[9] X. Wang, X. Song, and M. Sun, “How Does a Company’s ESG Performance Affect the Issuance of an Audit Opinion? The Moderating Role of Auditor Experience,” Int. J. Environ. Res. Public Health, vol. 20, no. 5, Mar. 2023, doi: 10.3390/ijerph20053878.
[10] S. Bacha, A. Ajina, and S. Ben Saad, “CSR performance and the cost of debt: does audit quality matter?,” Corp. Gov. …, 2021, doi: 10.1108/CG-11-2019-0335.
[11] I. T. Bakti and N. Nengzih, “The Effect of Financial Performance, Company Characteristics and,” Corp. Gov. Qual. Sustain. Rep., pp. 2017–2020, 2023.
[12] E. Pimentel and E. Boulianne, “Blockchain in accounting research and practice: Current trends and future opportunities,” Account. Perspect., 2020, doi: 10.1111/1911-3838.12239.
[13] V. Y. Afanasyev, N. G. Lyubimova, and ..., “Digitalization of energy manufacture: Infrastructure, supply chain strategy and communication,” … Management. download.garuda.kemdikbud.go.id, 2019.
[14] Z. Wang, “Based on the Big Data Audit Risk Model Audit Process Research,” Front. Business, Econ. Manag., 2023.
[15] T. A. Kaddumi, H. Baker, M. D. Nassar, and Q. A-Kilani, “Does Financial Technology Adoption Influence Bank’s Financial Performance: The Case of Jordan,” Journal of Risk and Financial Management, vol. 16, no. 9. 2023. doi: 10.3390/jrfm16090413.
[16] Y. Kang, “Research on intellectual property financing mode of technology-based small and medium-sized enterprises,” Financ. Eng. Risk Manag., vol. 6, no. 1, pp. 34–42, 2023.
[17] S. Rexhepi, S. Maloku, and I. Lushi, “The Role of the Internal Control Increasing Performance in the Public Institutions,” SSRN Electron. J., no. 1, pp. 1–8, 2023, doi: 10.2139/ssrn.4322872.
[18] J. Hurt, W. Morton-Huddleston, and ..., “Federal CFOs at 30 Toward Data-Driven Decision Support,” … Manag., 2020.
[19] S. Vyas, “Corporate Governance Practices in India: Problems & Importance,” Int. J. Multidiscip. Res., vol. 5, no. 3, pp. 1–9, 2023, doi: 10.36948/ijfmr.2023.v05i03.2801.
[20] N. Hussin, M. F. M. Salleh, A. Ahmad, and ..., “The Influence of Audit Firm Attributes on KAM Disclosures in FTSE100 in Malaysia.,” … & Accounting Review. mar.uitm.edu.my, 2022.
[21] R. Cimini, A. Mechelli, and V. Sforza, “Auditor independence and value relevance in the European banking sector: Do investor protection environment and corporate governance matter?,” … Accounting, Audit. …, 2022, doi: 10.1177/0148558X20934247.
[22] X. Cao, “Three essays on monetary and financial economics.” University of Missouri Libraries, 2021. doi: 10.32469/10355/66301.
[23] D. Mwesigwa, A. Acanga, O. A. Chono, and A. Oboi, “A perspective review on the paradigm shift in Local Economic Development interventions in developmental Uganda,” 2022.
[24] R. B. Saputra, “RENCANA BISNIS SUPPLIER STOCKLOT PAKAIAN BRANDED ( Stocklot Supplies Business Plan Of Brande Clothes ),” vol. 2, no. 3, pp. 120–127, 2019.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Lena Erdawati, Ahmad Eko Saputro, Yanti Arnilis, Sri Juminawati, Eko Sudarmanto
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Facebook 
Instagram 
Twitter 
Youtube 
westscience.journals@gmail.com