The Effect of Financial Statement Comparability on Risk in the Indonesian Banking Sector

This study aims to analyze the effect of comparability of financial statements on risk in the banking industry in Indonesia which is listed on the Indonesia Stock Exchange (IDX). The data was obtained using purposive sampling, so that 38 companies were obtained during 2015-2022 which were analyzed using Eviews 9. The results of this research indicate that there is a positive relationship between banks and financial statements that are comparable to risk. This result means that the more comparable the financial statements, the higher the risk level of a bank. Next, the relationship between comparability of financial statements that does not depend on bank size shows results that are prominent in small banks than large banks. Overall, this study provides implications for unique insights about the role of comparability of financial statements in motivating and increasing the opportunistic attitude of banking management in Indonesia in risky activities. Preferably, companies engaged in the banking sector can pay attention to the relevance of the information available before undertaking risky activities. This attention needs to be done in order to foster a better attitude of caution so as to avoid the threat of loss in the future