Pub Date : 2018-11-12DOI: 10.15282/jgi.2.1.2018.5533
Tri Gunarsih, Yuni Ismawati
The aim of this study is to give empirical evidence about the effect of three disclosure dimensions of Sustainability Reporting (SR) to firm performance using ROA and Tobin’s Q. The three dimensions of SR consist of economic dimension, environmental dimension, and social dimension. The argument of the relationship between SR and companies' performance in this study is developed base on good management theories that argue that there is a high correlation between good management practice and Corporate Social Performance (CSP), then there will be a positive impact of SR on the company’s performance. The sample of this study comprises of 60 listed companies in IDX in 2014-2017, in mining and metal and food processing industries. The sampling method is purposive sampling. The results show two dimensions of SR (economic dimension and social dimension) has an impact on market value (Tobin’s Q) but not on book value (ROA).
{"title":"SUSTAINABILITY REPORT AND FIRM PERFORMANCE: STUDY IN MINING AND METAL AND FOOD PROCESSING INDUSTRY INDONESIA STOCK EXCHANGE 2014-2017","authors":"Tri Gunarsih, Yuni Ismawati","doi":"10.15282/jgi.2.1.2018.5533","DOIUrl":"https://doi.org/10.15282/jgi.2.1.2018.5533","url":null,"abstract":"The aim of this study is to give empirical evidence about the effect of three disclosure dimensions of Sustainability Reporting (SR) to firm performance using ROA and Tobin’s Q. The three dimensions of SR consist of economic dimension, environmental dimension, and social dimension. The argument of the relationship between SR and companies' performance in this study is developed base on good management theories that argue that there is a high correlation between good management practice and Corporate Social Performance (CSP), then there will be a positive impact of SR on the company’s performance. The sample of this study comprises of 60 listed companies in IDX in 2014-2017, in mining and metal and food processing industries. The sampling method is purposive sampling. The results show two dimensions of SR (economic dimension and social dimension) has an impact on market value (Tobin’s Q) but not on book value (ROA).","PeriodicalId":277161,"journal":{"name":"Journal of Governance and Integrity","volume":"275 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-11-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133759732","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}
Pub Date : 2018-10-16DOI: 10.15282/jgi.2.1.2018.5535
Ika Sari Wahyuni-TD, Yudi Fernando, Evi Hasnita
The objective of this paper is to understand the role of Islamic ethics and its application towards a more ethical accounting practice. This paper has reviewed the literature on Islamic ethics and ethical accounting practice and found that four critical domains of Islamic ethics such as 1) accounting education; 2) principle of Islamic ethics; 3) code of ethics for accountants and 4) application of Islamic ethics for accountants. This study concludes that an Islamic guideline for accountants is a driver of ethical behaviour to comply with Islamic principles. It is highly needed in the current turbulence business environment and competitors’ pressure. The Muslim accountant can use Islamic ethics as a reference to ensure the excellent audit work to comply with Shari’ah requirements and to provide the required information demanded by society such as by doing khayr (goodness), birr (righteousness), ‘adl (equilibrium and justice), trust (Amanah), benevolence (Ihsaan) and others. The understanding and application of Islamic ethics contribute to a more ethical accounting practice.
{"title":"ROLE OF ISLAMIC ETHICS TOWARDS ETHICAL ACCOUNTING PRACTICE","authors":"Ika Sari Wahyuni-TD, Yudi Fernando, Evi Hasnita","doi":"10.15282/jgi.2.1.2018.5535","DOIUrl":"https://doi.org/10.15282/jgi.2.1.2018.5535","url":null,"abstract":"The objective of this paper is to understand the role of Islamic ethics and its application towards a more ethical accounting practice. This paper has reviewed the literature on Islamic ethics and ethical accounting practice and found that four critical domains of Islamic ethics such as 1) accounting education; 2) principle of Islamic ethics; 3) code of ethics for accountants and 4) application of Islamic ethics for accountants. This study concludes that an Islamic guideline for accountants is a driver of ethical behaviour to comply with Islamic principles. It is highly needed in the current turbulence business environment and competitors’ pressure. The Muslim accountant can use Islamic ethics as a reference to ensure the excellent audit work to comply with Shari’ah requirements and to provide the required information demanded by society such as by doing khayr (goodness), birr (righteousness), ‘adl (equilibrium and justice), trust (Amanah), benevolence (Ihsaan) and others. The understanding and application of Islamic ethics contribute to a more ethical accounting practice.","PeriodicalId":277161,"journal":{"name":"Journal of Governance and Integrity","volume":"42 4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130679646","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}
Pub Date : 2018-08-02DOI: 10.15282/jgi.2.1.2018.5537
J. Singh, M. Hanefah, Kamaljeet Kaur
The purpose of this paper is to review behavioural accounting and the relationship between ethical sensitivity and religiosity to influence the behaviour of accountants when faced with ethical dilemmas. The research problem is that accounting fraud is on the rise and alternative measures must be looked into to restraint this issue. Rather than focusing only on greater transparency and more stringent control through improving and introducing new rules and regulations, ethical reasoning should also be addressed seriously, with emphasis on ethical sensitivity and religiosity to assist individuals to justify their actions. As a conceptual paper, the design of this study is an endeavour in-depth literature review of the supporting areas of concern in behavioural accounting to discuss the relationship between ethical sensitivity and religiosity. This study finds that accounting ethics education intervention at the tertiary level may possibly be the solution to eliminate or reduce accounting fraud by educating the future accounting practitioners so that they are prepared when faced by ethical dilemma and to be more exposed to ethical dilemma as part of the curriculum to tackle ethical issues appropriately. The implication of this study is that by establishing the link between ethical sensitivity and religiosity and applying effective accounting ethics teaching methods at tertiary level to inculcate ethical sensitivity via religiosity will solve unethical accounting practices. A collaboration between the institutes of higher learning and the Ministry of Education can devise a plan to induce the appreciation of relevant religious tenets related to ethical behaviour to be embedded with accounting ethics for accounting students.
{"title":"HUMANISE CORPORATE GOVERNORS – ERADICATING ACCOUNTING FRAUD BY AUGMENTING ETHICAL SENSITIVITY AND RELIGIOSITY IN ACCOUNTING EDUCATION","authors":"J. Singh, M. Hanefah, Kamaljeet Kaur","doi":"10.15282/jgi.2.1.2018.5537","DOIUrl":"https://doi.org/10.15282/jgi.2.1.2018.5537","url":null,"abstract":"The purpose of this paper is to review behavioural accounting and the relationship between ethical sensitivity and religiosity to influence the behaviour of accountants when faced with ethical dilemmas. The research problem is that accounting fraud is on the rise and alternative measures must be looked into to restraint this issue. Rather than focusing only on greater transparency and more stringent control through improving and introducing new rules and regulations, ethical reasoning should also be addressed seriously, with emphasis on ethical sensitivity and religiosity to assist individuals to justify their actions. As a conceptual paper, the design of this study is an endeavour in-depth literature review of the supporting areas of concern in behavioural accounting to discuss the relationship between ethical sensitivity and religiosity. This study finds that accounting ethics education intervention at the tertiary level may possibly be the solution to eliminate or reduce accounting fraud by educating the future accounting practitioners so that they are prepared when faced by ethical dilemma and to be more exposed to ethical dilemma as part of the curriculum to tackle ethical issues appropriately. The implication of this study is that by establishing the link between ethical sensitivity and religiosity and applying effective accounting ethics teaching methods at tertiary level to inculcate ethical sensitivity via religiosity will solve unethical accounting practices. A collaboration between the institutes of higher learning and the Ministry of Education can devise a plan to induce the appreciation of relevant religious tenets related to ethical behaviour to be embedded with accounting ethics for accounting students.","PeriodicalId":277161,"journal":{"name":"Journal of Governance and Integrity","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131336505","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}
Pub Date : 1900-01-01DOI: 10.15282/jgi.2.2.2019.5463
A. Dayag, Fernando L. Trinidad
Valuation using P/E multiples has been done mostly in developed countries and some developing countries including the Philippines. However, variables that impact sound P/E multiples valuation has yet to be determined. The purpose of the study is to develop a valuation model using P/E multiples by using variables that will lead to sound valuation of firms. The application would be in the banking sector, specifically universal banks since these institutions are significant economic drivers in the Philippines. Utilizing data from the top ten [10] universal banks in the Philippines in terms of assets and capitalization from 2010 to 2017, selected macroeconomic variables, stock market index, and firm-specific variables were used in the proposed valuation model using panel data regression analysis. These variables are GDP growth rate, inflation rate, interest rate, return on equity [ROE], ROE growth rate, net income growth rate, earnings per share [EPS] growth rate, dividend payout ratio, Philippine Stock Exchange [PSE] index, and price-to-book [P/B] value ratio. Panel regression results showed that among the independent variables, ROE, EPS growth rate, P/B ratio, net income growth rate, and PSE index are statistically significant. Among the significant variables, ROE reduces P/E ratio by 51 times. This implies that an increasing ROE reduces the price per stock investors are willing to pay. Goodness of fit [R2] of the model is 74.83%, which is relatively good
{"title":"VALUE DRIVERS OF PRICE-EARNINGS MULTIPLES OF UNIVERSAL BANKS IN THE PHILIPPINES: A PANEL REGRESSION APPROACH","authors":"A. Dayag, Fernando L. Trinidad","doi":"10.15282/jgi.2.2.2019.5463","DOIUrl":"https://doi.org/10.15282/jgi.2.2.2019.5463","url":null,"abstract":"Valuation using P/E multiples has been done mostly in developed countries and some developing countries including the Philippines. However, variables that impact sound P/E multiples valuation has yet to be determined. The purpose of the study is to develop a valuation model using P/E multiples by using variables that will lead to sound valuation of firms. The application would be in the banking sector, specifically universal banks since these institutions are significant economic drivers in the Philippines. Utilizing data from the top ten [10] universal banks in the Philippines in terms of assets and capitalization from 2010 to 2017, selected macroeconomic variables, stock market index, and firm-specific variables were used in the proposed valuation model using panel data regression analysis. These variables are GDP growth rate, inflation rate, interest rate, return on equity [ROE], ROE growth rate, net income growth rate, earnings per share [EPS] growth rate, dividend payout ratio, Philippine Stock Exchange [PSE] index, and price-to-book [P/B] value ratio. Panel regression results showed that among the independent variables, ROE, EPS growth rate, P/B ratio, net income growth rate, and PSE index are statistically significant. Among the significant variables, ROE reduces P/E ratio by 51 times. This implies that an increasing ROE reduces the price per stock investors are willing to pay. Goodness of fit [R2] of the model is 74.83%, which is relatively good","PeriodicalId":277161,"journal":{"name":"Journal of Governance and Integrity","volume":"90 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134239648","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}