THE EFFECT OF PROFITABILITY, SOLVENCY, AND LIQUIDITY ON RISK MANAGEMENT DISCLOSURE (Empirical Study on Food and Beverages Companies in Indoensia and Malaysia Listed on IDX And BM For The Period 2022-2024)

Abstract

This study aims to analyze the effect of profitability, solvency, and liquidity on risk management disclosure in food and beverages companies listed on the Indonesia Stock Exchange (IDX) and Bursa Malaysia (BM) during the 2022–2024 period. The research background highlights the importance of transparency in risk management practices to enhance investor trust and stakeholder confidence. The independent variables examined are profitability (ROA), solvency (DER), and liquidity (Current Ratio), while the dependent variable is risk management disclosure measured using the COSO 2017 framework, consisting of 5 categories and 20 items. The research employs a quantitative method with multiple linear regression analysis using SPSS software.

The results indicate that profitability has a significant effect on risk management disclosure, while solvency and liquidity have no significant effect when tested partially. However, the simultaneous test (F-test) shows that profitability, solvency, and liquidity together have a significant effect on risk management disclosure. These findings emphasize that the overall financial condition of the company plays an important role in determining the extent of risk disclosure.