Monetary Policy Uncertainty And Financial Stability: Implications For Corporate Financial Reporting
DOI:
https://doi.org/10.53276/eligible.v5i1.123Keywords:
Monetary Policy Uncertainty, Financial Stability, ESG Governance, Digital Financial Resilience, Institutional CredibilityAbstract
This article examines monetary policy uncertainty as a governance challenge at the intersection of central banking law, institutional credibility, and corporate financial reporting in emerging markets. Addressing a gap in macroprudential literature that often separates monetary transmission, financial stability, and corporate reporting, the study advances an integrated legal-institutional perspective. Using Indonesia during the 2022–2024 period as an empirical and institutional setting, the research employs a normative-juridical and conceptual legal approach by analyzing central bank regulations, macroprudential frameworks, ESG governance standards, and IFRS/PSAK-based reporting regimes. The article argues that monetary policy uncertainty affects financial stability not only through conventional macroeconomic channels, but also through firm-level reporting adjustments that shape market expectations and risk pricing. Corporate financial reporting is reconceptualized as a systemic stabilizing mechanism rather than a purely compliance-oriented function. The findings further show that digital financial resilience operates as a mediating techno-institutional channel, while ESG governance and institutional credibility act as moderating anchors that enhance transparency and constrain opportunistic behavior. The study concludes that sustainable financial stability depends on the coherent integration of legal certainty, digital supervisory capacity, and accountable corporate reporting within macroprudential governance.
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