The Importance of Financial Report Transparency
Toward Individual Performance
Jenyssa Faizah Farouk
1
, Caesar Octoviandy Purba
2
, Abdul Rahman
3
Politeknik STIA LAN Bandung, Jl. Cimandiri 34-38 Bandung 40115
123
{abdul.rahman@poltek.stialanbandung.ac.id}
Abstract: this study focused on to explore the importance of financial statement
transparency on individual performance. By using a quantitative method with data
collection technique used is to fill out a questionnaire conducted by the respondent, the
study highlighted that the transparency of financial statements made by the company will
affect the performance of each-individual who works for the company. Because by
knowing the existing financial statements, the respondents think that the workers at the
company will know what they will do after the results they get, namely by improving their
performance or by stabilizing the performance they have mobilized.
Keywords: Transparency, Performance, Financial Reports.
1 Introduction
In the world of work there are a few things to consider and apply in order to realize ideals
and goals. One of them is collaboration. Cooperation is a kind of process of social by certain
actions manifested and aimed to achieved goals, assistance of one another, and understanding
the actions of the other [1]. In addition, there is a need for mutual trust through mutual openness.
This openness can be started by trying to share complaints that are perceived at work and to
support each other in their actions. The support from the environment turns into motivation and
enthusiasm in various companies. When it comes to openness between management and
employees, we see the disclosure of annual financial statements of company or the so-called the
transparency of annual financial statements.
This study analyzes the importance of the transparency of financial reporting for individual
productivity in the world of work. Therefore, this study seeks to determine whether transparency
in financial reporting affects the performance of each individual stakeholder.
2 Literature Review
2.1 Financial reporting transparency
Transparency of financial statements is derived from the words "transparency" and
"financial statements", where transparency, according to Didjaja [3], is the government's
openness to policy making so that it is known to the public. Didjaja [3]) also stated that
ICAS 2021, September 15, Bandung, Indonesia
Copyright © 2022 EAI
DOI 10.4108/eai.15-9-2021.2315244