Exploring Financial Narratives in Annual Reports as a Reflection of Good Corporate Governance

Abstract

This study aims to explore the financial narrative in the annual report as a reflection of the implementation of Good Corporate Governance (GCG). In the modern business world, annual reports serve not only as financial documents, but also as strategic communication tools that reflect transparency, accountability, and good corporate governance. This study uses a qualitative approach with literature study and library research methods to analyze how companies structure financial narratives in their annual reports to reflect GCG principles. The results show that financial narratives play an important role in building corporate image and stakeholder trust. Companies that implement GCG well tend to use clear, transparent, and non-manipulative language in conveying financial information. In addition, aspects of sustainability and social responsibility are increasingly emphasized in the narrative of the annual report as part of the commitment to good governance. However, there are still window dressing practices and biases in the presentation of information that can affect stakeholder perceptions. This study provides insight for academics and practitioners regarding the importance of financial narrative analysis in evaluating the quality of a company's GCG. Further research is recommended to empirically examine how financial narratives affect investor decisions and corporate credibility in global markets.