Can Audit Opinion Change the Transparency–Volatility Link? GRC Disclosure and Dividend Policy

Kadek Yoga Suartika; I Kadek Jonh Stiawan

doi:10.55927/eajmr.v5i9.311

Authors

Kadek Yoga Suartika Ganesha University of Education
I Kadek Jonh Stiawan Markandeya University

DOI:

https://doi.org/10.55927/eajmr.v5i9.311

Keywords:

GRC Disclosure, Dividend Policy, Audit Opinion, Stock Price Volatility

Abstract

This study examines the role of governance, risk, and compliance (GRC) disclosures and dividend policy in explaining stock price volatility, while also exploring whether audit opinion strengthens market responses to such information. Using a purposive sampling technique, 10 companies were selected, resulting in a total of 50 observations. The data were analyzed using panel data regression and Moderated Regression Analysis (MRA) with the assistance of STATA. The results show that governance disclosure and compliance disclosure have no significant effect on stock price volatility, whereas risk disclosure and dividend policy have a significant negative effect. These findings indicate that the market tends to be more responsive to information with direct economic relevance, particularly risk-related information and profit distribution policies. Audit opinion also does not function as a universal enhancer of all corporate information; rather, it becomes more effective when it provides additional credibility to financial information that is directly relevant to investors’ interests.

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