Literature Review on the Influence of Board Structure and Financial Transparency on Stock Liquidity

Abstract

This study aims to systematically examine the influence of board structure and financial transparency on stock liquidity based on a review of literature from various recent national and international sources. This study stems from the urgency of stock liquidity as an indicator of capital market efficiency and investor confidence, where the two main variables, namely board structure consisting of the proportion of independent commissioners, the role of the audit committee, and board size efficiency, as well as financial reporting transparency, are considered determinants of a healthy stock market. The research method used a literature review with a selection of studies published in the last five years, both empirical and conceptual. The results of the literature synthesis show that a good board structure and transparent financial reporting play a positive role in increasing stock liquidity, reducing information asymmetry, and encouraging investment efficiency. These findings emphasize the importance of strengthening corporate governance and information disclosure as key agendas in supporting the stability and attractiveness of the Indonesian capital market. The implications of this study are relevant for companies and policymakers in formulating strategies to strengthen the capital market ecosystem based on governance and transparency