- The performance of Micro, Small, and Medium Enterprises (MSMEs) has become a top priority in all countries due to a global perspective recognizing MSMEs as a tool for economic growth. Therefore, MSMEs must be able to choose strategies to enhance their financial performance towards a sustainable business, one of which is implementing a green accounting strategy. This research aims to explore financial performance's role in mediating green accounting's effect on sustainable performance. Questionnaires were distributed to 420 MSMEs owners in Central Java via the Google form. From the 420 questionnaires, 405 were then analyzed using SmartPLS. The study results show that the sustainable performance of MSMEs can be improved through green accounting and financial performance. In addition, concern for MSMEs towards the environment through green accounting can be an added value for MSMEs businesses in Central Java, Indonesia .
{"title":"Green Accounting and Sustainable Performance of Micro, Small, and Medium Enterprises: The Role of Financial Performance as Mediation","authors":"M. Indriastuti, Mutamimah Mutamimah","doi":"10.33312/ijar.691","DOIUrl":"https://doi.org/10.33312/ijar.691","url":null,"abstract":"- The performance of Micro, Small, and Medium Enterprises (MSMEs) has become a top priority in all countries due to a global perspective recognizing MSMEs as a tool for economic growth. Therefore, MSMEs must be able to choose strategies to enhance their financial performance towards a sustainable business, one of which is implementing a green accounting strategy. This research aims to explore financial performance's role in mediating green accounting's effect on sustainable performance. Questionnaires were distributed to 420 MSMEs owners in Central Java via the Google form. From the 420 questionnaires, 405 were then analyzed using SmartPLS. The study results show that the sustainable performance of MSMEs can be improved through green accounting and financial performance. In addition, concern for MSMEs towards the environment through green accounting can be an added value for MSMEs businesses in Central Java, Indonesia .","PeriodicalId":230613,"journal":{"name":"The Indonesian Journal of Accounting Research","volume":"59 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115681452","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Examining the Auditors� Acceptance of Big Data Analytics Technology Platform: Evidence from Government Auditors in Indonesia","authors":"Fauzan Wahyuabdi Pratama, Erna Fitri Komariyah","doi":"10.33312/ijar.714","DOIUrl":"https://doi.org/10.33312/ijar.714","url":null,"abstract":"","PeriodicalId":230613,"journal":{"name":"The Indonesian Journal of Accounting Research","volume":"47 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123699013","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
: This study examines the causal relationship between incentives scheme (subjective vs. objective) on budgetary slack. Besides, this study also identifies the moderating role of loyalty on the relationship between those two variables. This study used a 2 × 2 between-subjects laboratory experiment with 102 accounting undergraduate students as the subjects. Incentive schemes were manipulated into two types (subjective and objective), and loyalty was categorized into two (high and low). The results show that Budgetary slack tends to be higher under the subjective incentives scheme than the objective one. Also, loyalty negatively influences budgetary slack. Loyalty reduces the negative effect of incentives scheme and budgetary slack relationship. Individuals' loyalty, as one of the internal factors that encourage positive individual behavior, will result in lower slack even though they are faced with conditions that are not as desired.
{"title":"The Moderating Effect of Loyalty on Incentive Schemes and Budgetary Slack Relationship: An Experimental Investigation","authors":"Frida Fanani Rohma, Inge Novitasari","doi":"10.33312/ijar.690","DOIUrl":"https://doi.org/10.33312/ijar.690","url":null,"abstract":": This study examines the causal relationship between incentives scheme (subjective vs. objective) on budgetary slack. Besides, this study also identifies the moderating role of loyalty on the relationship between those two variables. This study used a 2 × 2 between-subjects laboratory experiment with 102 accounting undergraduate students as the subjects. Incentive schemes were manipulated into two types (subjective and objective), and loyalty was categorized into two (high and low). The results show that Budgetary slack tends to be higher under the subjective incentives scheme than the objective one. Also, loyalty negatively influences budgetary slack. Loyalty reduces the negative effect of incentives scheme and budgetary slack relationship. Individuals' loyalty, as one of the internal factors that encourage positive individual behavior, will result in lower slack even though they are faced with conditions that are not as desired.","PeriodicalId":230613,"journal":{"name":"The Indonesian Journal of Accounting Research","volume":"119 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123472580","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
: As an emerging economy, India’s post-pandemic resilience supports this study. We scrutinize current MD&A (Management Discussion and Analysis) reporting practices by Indian firms, aligning with the 'Industry, Innovation, and Infrastructure Development' goal of Sustainability. Data was extracted from annual reports of selected listed Indian companies for the years 2016-2021. The data was analyzed using content analysis and t-tests. We found an encouraging increase in the quantity and quality of disclosures over time, even during the pandemic. However, there is a significant discrepancy with quality lagging behind quantity. These findings highlight an urgent need for improved MD&A disclosures. Managers, regulators, and organizations could use this study to identify issues and strategically direct their efforts for maximum benefits in this domain. This pioneering study assesses adherence to MD&A practices within the Indian context, extending its contribution to the accounting literature of other developing Asian economies, such as Indonesia, Malaysia, and China, where MD&A practices are still evolving.
{"title":"Disclosure Practices of Management Discussion and Analysis: A Study on the Indian Corporate Sector","authors":"Vijay Singh, Himani Singla","doi":"10.33312/ijar.667","DOIUrl":"https://doi.org/10.33312/ijar.667","url":null,"abstract":": As an emerging economy, India’s post-pandemic resilience supports this study. We scrutinize current MD&A (Management Discussion and Analysis) reporting practices by Indian firms, aligning with the 'Industry, Innovation, and Infrastructure Development' goal of Sustainability. Data was extracted from annual reports of selected listed Indian companies for the years 2016-2021. The data was analyzed using content analysis and t-tests. We found an encouraging increase in the quantity and quality of disclosures over time, even during the pandemic. However, there is a significant discrepancy with quality lagging behind quantity. These findings highlight an urgent need for improved MD&A disclosures. Managers, regulators, and organizations could use this study to identify issues and strategically direct their efforts for maximum benefits in this domain. This pioneering study assesses adherence to MD&A practices within the Indian context, extending its contribution to the accounting literature of other developing Asian economies, such as Indonesia, Malaysia, and China, where MD&A practices are still evolving.","PeriodicalId":230613,"journal":{"name":"The Indonesian Journal of Accounting Research","volume":"63 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126389776","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Severity of COVID-19 and Firm Market Value: How Does It Affect Firm?","authors":"Ananto Prabowo","doi":"10.33312/ijar.687","DOIUrl":"https://doi.org/10.33312/ijar.687","url":null,"abstract":"","PeriodicalId":230613,"journal":{"name":"The Indonesian Journal of Accounting Research","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124603005","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
: The episodic financial crises in Indonesia highlighted the importance of strengthening banks’ capital to maintain financial stability. To achieve such an objective, the Financial Service Authority (OJK) issued OJK Regulation Number 12/2020, which mandates banks to meet capital standards to preserve a sound financial system. However, given the short timeframe, banks need to conduct seasoned equity offerings (SEOs) to satisfy the regulation, where they could potentially perform earnings management before the SEOs to raise optimal capital. We used secondary data derived from www.idx.co.id from Q1-2019 to Q4-2021. We use the Wilcoxon signed-rank test to examine whether there are significant abnormal LLPs between pre-(2019-2020) and post-regulation (2020-2021), suggesting that bank managers conduct earnings management before SEOs through their discretion over LLP items. We also use a correlation test to investigate the association between earnings management and LLPs. Our study finds that bank managers engage in earnings management before SEOs to meet the capital adequacy regulation, given the short timeframe from the regulator. We also find a strong correlation between earnings management and LLPs. The study results suggest that bank managers engage in earnings management, regardless of whether it is income-increasing or income-decreasing, before the SEO period in response to the capital adequacy regulation through their use of discretion over LLP items.
{"title":"Do Banks Conduct Earnings Management Prior to Seasoned Equity Offerings to Meet Capital Adequacy Regulation?","authors":"Ricky Karunia Lubis, Risky Ainur Hardianti, Rizky Darmawan, Amrie Firmansyah","doi":"10.33312/ijar.705","DOIUrl":"https://doi.org/10.33312/ijar.705","url":null,"abstract":": The episodic financial crises in Indonesia highlighted the importance of strengthening banks’ capital to maintain financial stability. To achieve such an objective, the Financial Service Authority (OJK) issued OJK Regulation Number 12/2020, which mandates banks to meet capital standards to preserve a sound financial system. However, given the short timeframe, banks need to conduct seasoned equity offerings (SEOs) to satisfy the regulation, where they could potentially perform earnings management before the SEOs to raise optimal capital. We used secondary data derived from www.idx.co.id from Q1-2019 to Q4-2021. We use the Wilcoxon signed-rank test to examine whether there are significant abnormal LLPs between pre-(2019-2020) and post-regulation (2020-2021), suggesting that bank managers conduct earnings management before SEOs through their discretion over LLP items. We also use a correlation test to investigate the association between earnings management and LLPs. Our study finds that bank managers engage in earnings management before SEOs to meet the capital adequacy regulation, given the short timeframe from the regulator. We also find a strong correlation between earnings management and LLPs. The study results suggest that bank managers engage in earnings management, regardless of whether it is income-increasing or income-decreasing, before the SEO period in response to the capital adequacy regulation through their use of discretion over LLP items.","PeriodicalId":230613,"journal":{"name":"The Indonesian Journal of Accounting Research","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130088405","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
: This paper aims to analyze the impacts of the political-economic setup of an emerging economy on audit oversight arrangements introduced due to isomorphic pressure. We adopted a mixture of qualitative research methods for the study. Expert interviews and document analyses were conducted. Structuration theory and, more specifically, the institutional relational dynamics framework proposed by Dillard et al. (2004) have been utilized to understand the phenomenon theoretically. We found that the Financial Reporting Council (FRC) was established in Bangladesh in 2016 within the context attributed to relatively ineffective corporate governance in the face of international and local stakeholder pressures. Financial policymakers responded strategically to the coercive pressure from donor agencies. Deviating from global practice, the majority of government nominees instead of experts have been ensured in FRC. Moreover, instead of reactivating six existing financial regulators, the government buffered the creation of FRC for a decade. Low resources have been endowed, limiting the capacity of FRC to bring about structural changes. In line with the field-level norm, the body has already become dormant and susceptible to politicization. There are few studies on audit oversight arrangements in the least Developed Countries (LDCs). Our paper addresses a unique political-economic setup influencing the effectiveness of oversight bodies. Structuration theory assists us in magnifying the scenario further. The study can determine the actual trajectory of enhancing audit quality through the audit oversight body in LDCs. However, instead of generalizing the finding, this study can be considered a case study as LDCs are unique in various characteristics.
{"title":"Understanding the Political-Economic Impacts on Inception and Operational Effectiveness of an Audit Oversight Body: Case of an Emerging Economy","authors":"Md. Atiqur Rahman, Salah Uddin Rajib, M. Hoque","doi":"10.33312/ijar.670","DOIUrl":"https://doi.org/10.33312/ijar.670","url":null,"abstract":": This paper aims to analyze the impacts of the political-economic setup of an emerging economy on audit oversight arrangements introduced due to isomorphic pressure. We adopted a mixture of qualitative research methods for the study. Expert interviews and document analyses were conducted. Structuration theory and, more specifically, the institutional relational dynamics framework proposed by Dillard et al. (2004) have been utilized to understand the phenomenon theoretically. We found that the Financial Reporting Council (FRC) was established in Bangladesh in 2016 within the context attributed to relatively ineffective corporate governance in the face of international and local stakeholder pressures. Financial policymakers responded strategically to the coercive pressure from donor agencies. Deviating from global practice, the majority of government nominees instead of experts have been ensured in FRC. Moreover, instead of reactivating six existing financial regulators, the government buffered the creation of FRC for a decade. Low resources have been endowed, limiting the capacity of FRC to bring about structural changes. In line with the field-level norm, the body has already become dormant and susceptible to politicization. There are few studies on audit oversight arrangements in the least Developed Countries (LDCs). Our paper addresses a unique political-economic setup influencing the effectiveness of oversight bodies. Structuration theory assists us in magnifying the scenario further. The study can determine the actual trajectory of enhancing audit quality through the audit oversight body in LDCs. However, instead of generalizing the finding, this study can be considered a case study as LDCs are unique in various characteristics.","PeriodicalId":230613,"journal":{"name":"The Indonesian Journal of Accounting Research","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127838697","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
: Financial Ratio analysis is a quintessential technique to evaluate financial statements and is widely used to interpret the performance of companies. This paper examines the application of factor analysis to financial ratios. Factor analysis is applied to investigate and find representative ratios based on different business functions and stakeholder perspectives to reduce complexities in analyzing financial performance through ratio analysis due to multiple ratios. Companies from the Indian tire industry listed on the Bombay Stock Exchange (BSE) have been selected for the study. A form of factor analysis is Principal component Analysis (PCA). From an initial set of fifty-three ratios, nine factors were generated, of which the ratios based on the highest factor loading were identified and selected as the representative ratios. Multiple regression analysis was carried out to eliminate statistically insignificant variables, which helped eliminate twenty ratios. Once again, factor analysis was deployed on the remaining variables, which generated seven factors as the outcome. Factors were named, and representative ratios were identified. Cluster analysis was performed to validate the results of factor analysis. The study shows that it is not essential to compute multiple ratios to assess the financial performance of companies.
{"title":"Identifying Representative Financial Ratios of The Indian Tyre Industry : A Principal Component Analysis Approach","authors":"Jayesh Manjrekar, Akshay Damani","doi":"10.33312/ijar.632","DOIUrl":"https://doi.org/10.33312/ijar.632","url":null,"abstract":": Financial Ratio analysis is a quintessential technique to evaluate financial statements and is widely used to interpret the performance of companies. This paper examines the application of factor analysis to financial ratios. Factor analysis is applied to investigate and find representative ratios based on different business functions and stakeholder perspectives to reduce complexities in analyzing financial performance through ratio analysis due to multiple ratios. Companies from the Indian tire industry listed on the Bombay Stock Exchange (BSE) have been selected for the study. A form of factor analysis is Principal component Analysis (PCA). From an initial set of fifty-three ratios, nine factors were generated, of which the ratios based on the highest factor loading were identified and selected as the representative ratios. Multiple regression analysis was carried out to eliminate statistically insignificant variables, which helped eliminate twenty ratios. Once again, factor analysis was deployed on the remaining variables, which generated seven factors as the outcome. Factors were named, and representative ratios were identified. Cluster analysis was performed to validate the results of factor analysis. The study shows that it is not essential to compute multiple ratios to assess the financial performance of companies.","PeriodicalId":230613,"journal":{"name":"The Indonesian Journal of Accounting Research","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116935882","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
: Inseparable from managing regional fixed assets is the quality of information or data utilized by each unit. The quality of accounting information in government is heavily dependent on the leadership's commitment, the effectiveness of internal control, and the execution of good governance, according to various published works; nevertheless, this must be demonstrated further. Consequently, this study aims to investigate the link and size of the influence of these three elements on the quality of accounting information and their impact on the efficacy of local government fixed asset management. In Indonesia, 34 provincial governments, 416 district governments, and 98 city governments were surveyed for this quantitative research. This study included 529 participants. The research data was gathered using a questionnaire instrument that included in-person interviews—data analysis using the Structural Equation Modeling (SEM) method with Lisrel 8.8 statistical software. The explanation of research findings is both descriptive and causally explanatory. In general, local governments in Indonesia have excellent accounting data and management of fixed assets. In carrying out local government tasks, the local government has also built an effective internal control system and excellent governance. The study's findings demonstrate that the effectiveness of internal control and the function of good governance substantially impact the quality of accounting data. Similarly, leadership commitment, the importance of good governance, and the accuracy of accounting information substantially impact the success of fixed asset management. However, internal control efficacy does not significantly impact managing local governments' fixed assets.
{"title":"Factors Affecting Quality of Accounting Information and its impact on local government fixed assets management's effectiveness: A study on Local Government of Indonesia","authors":"Fitra Dharma, Mega Metalia, S. Sembiring","doi":"10.33312/ijar.636","DOIUrl":"https://doi.org/10.33312/ijar.636","url":null,"abstract":": Inseparable from managing regional fixed assets is the quality of information or data utilized by each unit. The quality of accounting information in government is heavily dependent on the leadership's commitment, the effectiveness of internal control, and the execution of good governance, according to various published works; nevertheless, this must be demonstrated further. Consequently, this study aims to investigate the link and size of the influence of these three elements on the quality of accounting information and their impact on the efficacy of local government fixed asset management. In Indonesia, 34 provincial governments, 416 district governments, and 98 city governments were surveyed for this quantitative research. This study included 529 participants. The research data was gathered using a questionnaire instrument that included in-person interviews—data analysis using the Structural Equation Modeling (SEM) method with Lisrel 8.8 statistical software. The explanation of research findings is both descriptive and causally explanatory. In general, local governments in Indonesia have excellent accounting data and management of fixed assets. In carrying out local government tasks, the local government has also built an effective internal control system and excellent governance. The study's findings demonstrate that the effectiveness of internal control and the function of good governance substantially impact the quality of accounting data. Similarly, leadership commitment, the importance of good governance, and the accuracy of accounting information substantially impact the success of fixed asset management. However, internal control efficacy does not significantly impact managing local governments' fixed assets.","PeriodicalId":230613,"journal":{"name":"The Indonesian Journal of Accounting Research","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123221962","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jhon U. Blesia, Enggelina Trapen, Rama Soyan Arunglamba
{"title":"The Moderate Effect of Good Corporate Governance on Carbon Emission Disclosure and Company Value","authors":"Jhon U. Blesia, Enggelina Trapen, Rama Soyan Arunglamba","doi":"10.33312/ijar.663","DOIUrl":"https://doi.org/10.33312/ijar.663","url":null,"abstract":"","PeriodicalId":230613,"journal":{"name":"The Indonesian Journal of Accounting Research","volume":"157 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133780959","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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