Pub Date : 2023-09-12DOI: 10.18196/jai.v24i3.18397
Reskino Reskino, Aditia Darma
Research aims: This study examines the determinants of fraudulent financial reporting with financial distress as an intervening agent.Design/Methodology/Approach: The banking companies listed on the Indonesia Stock Exchange (IDX) between 2017 and 2020 comprised the study's population. One hundred-four companies comprised the entire sample, which was chosen using purposive sampling. The approach employed in this study was partial least squares (PLS)-SEM.Research findings: The results of this study found that financial targets and audit quality significantly affected financial distress. Financial distress had a significant effect on fraudulent financial reporting. Financial targets and audit quality had no significant effect on fraudulent financial reporting. Furthermore, audit quality significantly affected fraudulent financial reporting through financial distress. Financial targets did not significantly influence fraudulent financial reporting through financial distress.Theoretical contribution/Originality: This study provides literature on the role of financial conditions and good corporate governance in preventing fraudulent financial reporting in banking companies. This study can be an insight for practitioners and academics in Indonesia and internationally. Apart from that, this study contributes to the literature on the occurrence of fraudulent financial statements mediated by financial distress, which is not widely discussed, specifically in the context of the banking industry in developing countries.Practitioner/Policy implication: The practical implication in this research is the importance for investors and creditors to be more vigilant and pay attention to corporate governance and financial conditions to reduce errors in decisions based on financial reports. In addition, the strength of good corporate governance indicates that the supervision carried out by management will take the information conveyed to stakeholders free from material misstatement so that the implementation of good corporate governance can prevent fraud. Research limitation/Implication: This study exclusively includes companies in the banking sector listed on the Indonesia Stock Exchange (BEI) between 2017 and 2020. Out of 46 companies, only 26 may be used as research objects according to the purposive sampling method.
{"title":"The role of financial distress and fraudulent financial reporting: A mediation effect testing","authors":"Reskino Reskino, Aditia Darma","doi":"10.18196/jai.v24i3.18397","DOIUrl":"https://doi.org/10.18196/jai.v24i3.18397","url":null,"abstract":"Research aims: This study examines the determinants of fraudulent financial reporting with financial distress as an intervening agent.Design/Methodology/Approach: The banking companies listed on the Indonesia Stock Exchange (IDX) between 2017 and 2020 comprised the study's population. One hundred-four companies comprised the entire sample, which was chosen using purposive sampling. The approach employed in this study was partial least squares (PLS)-SEM.Research findings: The results of this study found that financial targets and audit quality significantly affected financial distress. Financial distress had a significant effect on fraudulent financial reporting. Financial targets and audit quality had no significant effect on fraudulent financial reporting. Furthermore, audit quality significantly affected fraudulent financial reporting through financial distress. Financial targets did not significantly influence fraudulent financial reporting through financial distress.Theoretical contribution/Originality: This study provides literature on the role of financial conditions and good corporate governance in preventing fraudulent financial reporting in banking companies. This study can be an insight for practitioners and academics in Indonesia and internationally. Apart from that, this study contributes to the literature on the occurrence of fraudulent financial statements mediated by financial distress, which is not widely discussed, specifically in the context of the banking industry in developing countries.Practitioner/Policy implication: The practical implication in this research is the importance for investors and creditors to be more vigilant and pay attention to corporate governance and financial conditions to reduce errors in decisions based on financial reports. In addition, the strength of good corporate governance indicates that the supervision carried out by management will take the information conveyed to stakeholders free from material misstatement so that the implementation of good corporate governance can prevent fraud. Research limitation/Implication: This study exclusively includes companies in the banking sector listed on the Indonesia Stock Exchange (BEI) between 2017 and 2020. Out of 46 companies, only 26 may be used as research objects according to the purposive sampling method.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135886603","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 : 2023-09-12DOI: 10.18196/jai.v24i3.19587
Hafiez Sofyani
Research aims: In 2018, strengthening Higher Education Institutions (HEIs), governance began to be promoted again by the Indonesian government after its first initiation in 2003. In doing so, the Indonesian government has adopted a new internal quality assurance framework for HEIs, i.e., the Kaizen method, which emphasizes the quality improvement process. In addition, the government recommended the development of IT advancement to support management practices at the HEIs, including internal quality assurance. However, to this day, related research that examines the extent to which these policies contribute to HEI quality performance improvement still needs to be improved. To meet the gap, the current study examined the Kaizen internal quality assurance implementation role on HEI quality performance by testing the IT development as a moderator.Design/Methodology/Approach: Using data from 191 HEI samples obtained from 31 of 34 provinces in Indonesia, the relationship between variables was tested by employing the Partial Least Square (PLS) technique.Research findings: The results exhibited that the Kaizen internal quality assurance implementation was positively associated with HEI quality performance, where IT development strengthened the relationship (moderated). However, since the direct relationship between IT development and HEI quality performance was also significant, the moderating role of IT development was quasi in nature.Theoretical contribution/Originality: The results provide new insights regarding the contributions of internal quality assurance reform supported by IT development to the HEI quality performance. Specifically, the study affirms the role of IT as a moderator.
{"title":"Kaizen internal quality assurance adoption and quality performance improvement in Indonesian higher education institutions: The moderating role of IT development","authors":"Hafiez Sofyani","doi":"10.18196/jai.v24i3.19587","DOIUrl":"https://doi.org/10.18196/jai.v24i3.19587","url":null,"abstract":"Research aims: In 2018, strengthening Higher Education Institutions (HEIs), governance began to be promoted again by the Indonesian government after its first initiation in 2003. In doing so, the Indonesian government has adopted a new internal quality assurance framework for HEIs, i.e., the Kaizen method, which emphasizes the quality improvement process. In addition, the government recommended the development of IT advancement to support management practices at the HEIs, including internal quality assurance. However, to this day, related research that examines the extent to which these policies contribute to HEI quality performance improvement still needs to be improved. To meet the gap, the current study examined the Kaizen internal quality assurance implementation role on HEI quality performance by testing the IT development as a moderator.Design/Methodology/Approach: Using data from 191 HEI samples obtained from 31 of 34 provinces in Indonesia, the relationship between variables was tested by employing the Partial Least Square (PLS) technique.Research findings: The results exhibited that the Kaizen internal quality assurance implementation was positively associated with HEI quality performance, where IT development strengthened the relationship (moderated). However, since the direct relationship between IT development and HEI quality performance was also significant, the moderating role of IT development was quasi in nature.Theoretical contribution/Originality: The results provide new insights regarding the contributions of internal quality assurance reform supported by IT development to the HEI quality performance. Specifically, the study affirms the role of IT as a moderator.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135886602","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 : 2023-08-16DOI: 10.18196/jai.v24i3.19045
Muhammad Nur Abdullah Birton, Maryati Maryati, Muhammad Muttaqin
Research aims: In Indonesia, the Simposium Nasional Akuntansi (SNA) and regional accounting conferences (RAC) exist. Prior studies on their database are constrained and predominantly adopt an external viewpoint. Therefore, using an "insider" perspective, this study aims to reveal how scientific conferences impact knowledge quality and dissemination in accounting research.Design/Methodology/Approach: This study took the case of the Konferensi Ilmiah Akuntansi (KIA) X Jakarta at Universitas Muhammadiyah Jakarta. Data were analyzed descriptively sourced from the KIA X committee and the selection process of 235 manuscripts until acceptance/rejection by the journal.Research findings: The results demonstrated that, first, KIA X engaged 58 institutions and 235 manuscripts as participants, with 70 reviewers representing cohosting institutions and journal editorial teams across Indonesia. Second, reviewers independently deemed 160 manuscripts suitable for journal publication and 75 for proceedings. Among these, 130 were accepted by SINTA 2-5 journals, and 30 await confirmation. Third, accounting conferences seem to satisfy formalities rather than significantly enhancing knowledge or practice quality.Theoretical contribution/Originality: Regional conferences like KIA X aim to foster discussions on accounting concepts, knowledge, and innovations. Nevertheless, if proceedings reflect poor quality, the intended scientific objectives falter. Hence, this study delves into this concern through conference database analysis.Practitioner/Policy implication: The RAC committees face challenges in balancing convenience, appeal, and competitiveness, all while dispelling the notion of lower manuscript quality compared to SNA.
研究目的:在印度尼西亚，存在国家会计研讨会(SNA)和区域会计会议(RAC)。先前对其数据库的研究受到限制，主要采用外部观点。因此，本研究采用“内部人士”的视角，旨在揭示科学会议如何影响会计研究中的知识质量和传播。设计/方法/方法:本研究以雅加达穆罕默德大学的Konferensi Ilmiah Akuntansi (KIA) X Jakarta为例。对数据进行描述性分析，数据来自KIA X委员会和235篇论文的选择过程，直到被期刊接受/拒绝。研究发现:结果表明，首先，KIA X邀请了58个机构和235份手稿作为参与者，其中70名审稿人代表了印度尼西亚各地的共同主办机构和期刊编辑团队。其次，审稿人独立认定160篇稿件适合期刊发表，75篇适合论文集发表。其中130篇被SINTA 2-5期刊录用，30篇等待确认。第三，会计会议似乎满足了形式，而不是显著提高知识或实践质量。理论贡献/独创性:像KIA X这样的区域性会议旨在促进对会计概念、知识和创新的讨论。然而，如果程序反映出低质量，预期的科学目标就会动摇。因此，本研究通过会议数据库分析来探讨这一问题。从业者/政策含义:RAC委员会在平衡便利性、吸引力和竞争力方面面临挑战，同时消除与SNA相比稿件质量较低的概念。
{"title":"Do conferences drive quality improvement in accounting research?","authors":"Muhammad Nur Abdullah Birton, Maryati Maryati, Muhammad Muttaqin","doi":"10.18196/jai.v24i3.19045","DOIUrl":"https://doi.org/10.18196/jai.v24i3.19045","url":null,"abstract":"Research aims: In Indonesia, the Simposium Nasional Akuntansi (SNA) and regional accounting conferences (RAC) exist. Prior studies on their database are constrained and predominantly adopt an external viewpoint. Therefore, using an \"insider\" perspective, this study aims to reveal how scientific conferences impact knowledge quality and dissemination in accounting research.Design/Methodology/Approach: This study took the case of the Konferensi Ilmiah Akuntansi (KIA) X Jakarta at Universitas Muhammadiyah Jakarta. Data were analyzed descriptively sourced from the KIA X committee and the selection process of 235 manuscripts until acceptance/rejection by the journal.Research findings: The results demonstrated that, first, KIA X engaged 58 institutions and 235 manuscripts as participants, with 70 reviewers representing cohosting institutions and journal editorial teams across Indonesia. Second, reviewers independently deemed 160 manuscripts suitable for journal publication and 75 for proceedings. Among these, 130 were accepted by SINTA 2-5 journals, and 30 await confirmation. Third, accounting conferences seem to satisfy formalities rather than significantly enhancing knowledge or practice quality.Theoretical contribution/Originality: Regional conferences like KIA X aim to foster discussions on accounting concepts, knowledge, and innovations. Nevertheless, if proceedings reflect poor quality, the intended scientific objectives falter. Hence, this study delves into this concern through conference database analysis.Practitioner/Policy implication: The RAC committees face challenges in balancing convenience, appeal, and competitiveness, all while dispelling the notion of lower manuscript quality compared to SNA.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135023059","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 : 2023-08-16DOI: 10.18196/jai.v24i3.19284
Muhammad Irfan Tarmizi, Muhammad Nur Abdullah Birton, Muhammad Muttaqin
Research aims: Accountability is a form and mechanism of responsibility that applies to all activities at the level of individuals, organizations and the social world. This study aims, first, to explore the meanings and values that underlie the collective awareness of members and administrators of the LaaRibaa Community in actualizing accountability in financial reporting; second, providing a critical reflection on the awareness and practices of accountability within the LaaRibaa community.Design/Methodology/Approach: This study applies Milles and Huberman's qualitative approach, modified with critical reflection through tasawuf concepts by Haji Abdul Malik Karim Amrullah (HAMKA). Data were collected through interviews with committees and members as well as observations on the documents. Data analysis includes the following steps: (1) data reduction, (2) data presentation, and (3) verification using the HAMKA’s tasawuf concept as an analytical tool.Research findings: The results show that the LaaRiba community's financial accountability model is influenced by many values. Al-Qur'an and hadith as fundamental values; trustworthiness and sincerity as substantial values; and please Allah (ﷻ) as the ultimate goal of managers and community members. However, this principle of trustworthiness and sincerity is practiced credulously, both from their position as public auditors and from the perspective of HAMKA's tasawuf concepts which are ihlas (sincerity) and amanah (trustworthy) (Islamic accountability).Theoretical contribution/Originity: This study found an inconsistency in the attitudes of community members or managers, on their daily occupation of being public auditors, they were very strict on the principles of accountability, but not accordingly when they act as community members or managers. This result strengthens previous findings which show a weak commitment to accountability in Islamic social institutions.Practitioner/Policy implication: To the managers of the LaaRiba community, there are three aspects that need to be fixed immediately. First, the legality of the community, so that there is legal certainty. Second, the position of the waqf contract needs to be reviewed so that it does not violate its purpose. Third, the accountability of financial reports needs to be improved in accordance with generally accepted accounting principles in Islamic social institutions
研究目的:问责制是一种适用于个人、组织和社会层面的所有活动的责任形式和机制。本研究的目的是，首先，探讨LaaRibaa社区成员和管理者在实施财务报告问责制方面的集体意识背后的意义和价值;第二，对LaaRibaa社区内的问责意识和实践进行批判性反思。设计/方法论/方法:本研究采用Milles和Huberman的定性方法，并通过Haji Abdul Malik Karim Amrullah (HAMKA)的tasawuf概念进行批判性反思。数据是通过与委员会和成员的面谈以及对文件的观察收集的。数据分析包括以下步骤:(1)数据简化，(2)数据呈现，(3)使用HAMKA的tasawuf概念作为分析工具进行验证。研究发现:研究结果表明，LaaRiba社区的财务问责模式受到多种价值观的影响。《古兰经》和圣训作为基本价值观;诚信、真诚为实质价值;并将取悦真主作为管理者和社区成员的最终目标。然而，无论是从他们作为公共审计员的立场来看，还是从HAMKA的tasawuf概念(即ihlas(真诚)和amanah(值得信赖)(伊斯兰问责制)的角度来看，这种诚信和真诚的原则都被轻信地实践了。理论贡献/原创性:本研究发现社区成员或管理者的态度不一致，他们的日常职业是公共审计员，他们对问责原则非常严格，但当他们作为社区成员或管理者时，他们的态度就不一致了。这一结果加强了先前的调查结果，表明伊斯兰社会机构对问责制的承诺薄弱。从业者/政策含义:对于LaaRiba社区的管理者来说，有三个方面需要立即解决。一是社会的合法性，使之有法律上的确定性。其次，需要审查waqf合同的位置，使其不违反其目的。第三，在伊斯兰社会机构中，财务报告的问责制需要按照公认的会计原则加以改进
{"title":"Credulous on accountability at LaaRiba community: A tasawuf critical reflection","authors":"Muhammad Irfan Tarmizi, Muhammad Nur Abdullah Birton, Muhammad Muttaqin","doi":"10.18196/jai.v24i3.19284","DOIUrl":"https://doi.org/10.18196/jai.v24i3.19284","url":null,"abstract":"Research aims: Accountability is a form and mechanism of responsibility that applies to all activities at the level of individuals, organizations and the social world. This study aims, first, to explore the meanings and values that underlie the collective awareness of members and administrators of the LaaRibaa Community in actualizing accountability in financial reporting; second, providing a critical reflection on the awareness and practices of accountability within the LaaRibaa community.Design/Methodology/Approach: This study applies Milles and Huberman's qualitative approach, modified with critical reflection through tasawuf concepts by Haji Abdul Malik Karim Amrullah (HAMKA). Data were collected through interviews with committees and members as well as observations on the documents. Data analysis includes the following steps: (1) data reduction, (2) data presentation, and (3) verification using the HAMKA’s tasawuf concept as an analytical tool.Research findings: The results show that the LaaRiba community's financial accountability model is influenced by many values. Al-Qur'an and hadith as fundamental values; trustworthiness and sincerity as substantial values; and please Allah (ﷻ) as the ultimate goal of managers and community members. However, this principle of trustworthiness and sincerity is practiced credulously, both from their position as public auditors and from the perspective of HAMKA's tasawuf concepts which are ihlas (sincerity) and amanah (trustworthy) (Islamic accountability).Theoretical contribution/Originity: This study found an inconsistency in the attitudes of community members or managers, on their daily occupation of being public auditors, they were very strict on the principles of accountability, but not accordingly when they act as community members or managers. This result strengthens previous findings which show a weak commitment to accountability in Islamic social institutions.Practitioner/Policy implication: To the managers of the LaaRiba community, there are three aspects that need to be fixed immediately. First, the legality of the community, so that there is legal certainty. Second, the position of the waqf contract needs to be reviewed so that it does not violate its purpose. Third, the accountability of financial reports needs to be improved in accordance with generally accepted accounting principles in Islamic social institutions","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135023058","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 : 2023-07-18DOI: 10.18196/jai.v24i3.18458
Whedy Prasetyo, Yosefa Sayekti
Research aims: Pranatamangsa calendar serves as a local wisdom genius to determine agricultural accounting for farmers' income.Design/Methodology/Approach: A qualitative method with an eco-phenomenology approach was used to reveal season markers.Research findings: Agricultural accounting presence through yield calculation embodies Farmer Exchange Value as income, with the use of pranatamangsa to increase harvest. This calculation is based on the calculation of planting costs to make the cost components that can be calculated, namely input and output costs to be managed by farmers as a formulation of farmer income, which is about costs paid (Ib) with prices received (It) added to the season factor as cost-revenue exchange rate determinants.Theoretical contribution/Originality: Agricultural accounting becomes an aspect based on concern for setting seasons. Disclosure or reporting of seasons through pranatamangsa agricultural accounting reports is the cost-revenue exchange rate as farmer income.Practitioner/Policy implication: The formulation that becomes farming income is multiplying the paddy production amount by the selling price of paddy per ton. The formulation considers the season factor as a determinant of harvest production. This formulation produces integrated, relevant agricultural accounting information based on season markers.Research limitation/Implication: It is necessary to further develop the results of public awareness as a form of the presence of agricultural accounting. Furthermore, research methods can use a positivist approach with harvest variable determinants. In addition, descriptive, causal, and qualitative studies can use ethnomethodology or phenomenology based on participant observation as a complete source.
{"title":"Pranatamangsa agricultural accounting: Regulated fees as guarantees for farmers' income at cost-revenue exchange rates","authors":"Whedy Prasetyo, Yosefa Sayekti","doi":"10.18196/jai.v24i3.18458","DOIUrl":"https://doi.org/10.18196/jai.v24i3.18458","url":null,"abstract":"Research aims: Pranatamangsa calendar serves as a local wisdom genius to determine agricultural accounting for farmers' income.Design/Methodology/Approach: A qualitative method with an eco-phenomenology approach was used to reveal season markers.Research findings: Agricultural accounting presence through yield calculation embodies Farmer Exchange Value as income, with the use of pranatamangsa to increase harvest. This calculation is based on the calculation of planting costs to make the cost components that can be calculated, namely input and output costs to be managed by farmers as a formulation of farmer income, which is about costs paid (Ib) with prices received (It) added to the season factor as cost-revenue exchange rate determinants.Theoretical contribution/Originality: Agricultural accounting becomes an aspect based on concern for setting seasons. Disclosure or reporting of seasons through pranatamangsa agricultural accounting reports is the cost-revenue exchange rate as farmer income.Practitioner/Policy implication: The formulation that becomes farming income is multiplying the paddy production amount by the selling price of paddy per ton. The formulation considers the season factor as a determinant of harvest production. This formulation produces integrated, relevant agricultural accounting information based on season markers.Research limitation/Implication: It is necessary to further develop the results of public awareness as a form of the presence of agricultural accounting. Furthermore, research methods can use a positivist approach with harvest variable determinants. In addition, descriptive, causal, and qualitative studies can use ethnomethodology or phenomenology based on participant observation as a complete source.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":"43 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139358007","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 : 2023-07-05DOI: 10.18196/jai.v24i3.17030
Putu Wenny Saitri, Wayan Suartana, Eka Ardhani Sisdyani, Ketut Sujana
Research aims: The increasing number of fraud cases has significantly raised the whistleblower mechanism's role. Therefore, this study investigates the impact of the whistleblowing triangle on whistleblowing intention. The whistleblowing triangle combines the theory of fraud triangle and the theory of planned behavior to predict whistleblowing intention. The reporting system is required in an organization expected to strengthen the fraud prevention system related to increasing fraud cases.Design/Methodology/Approach: This research was conducted in the village credit institution listed in Denpasar. This selection was due to Denpasar having become Bali's second-highest number of fraud cases. Thus, it is necessary to understand whether the whistleblowing triangle can deter fraud. The research sample was selected among Village Credit Institution (VCI) employees in Denpasar using accidental sampling and generating 80 employees as respondents. This study used multiple regression analysis to test the hypotheses.Research findings: The results revealed that the whistleblowing triangle's components impacted whistleblowing intention. The intention to report fraudulent behavior was negatively impacted by pressure, while it was positively affected by opportunity and rationalization.Theoretical contribution/Originality: Most previous studies have investigated whistleblowing intention using the fraud triangle and theory of planned behavior separately. Meanwhile, this study used the whistleblowing triangle, combining fraud and planned behavior theory to predict whistleblowing intention.Research limitation: This study omitted financial incentives included in the previous research.
{"title":"Predicting whistleblowing intention using the whistleblowing triangle","authors":"Putu Wenny Saitri, Wayan Suartana, Eka Ardhani Sisdyani, Ketut Sujana","doi":"10.18196/jai.v24i3.17030","DOIUrl":"https://doi.org/10.18196/jai.v24i3.17030","url":null,"abstract":"Research aims: The increasing number of fraud cases has significantly raised the whistleblower mechanism's role. Therefore, this study investigates the impact of the whistleblowing triangle on whistleblowing intention. The whistleblowing triangle combines the theory of fraud triangle and the theory of planned behavior to predict whistleblowing intention. The reporting system is required in an organization expected to strengthen the fraud prevention system related to increasing fraud cases.Design/Methodology/Approach: This research was conducted in the village credit institution listed in Denpasar. This selection was due to Denpasar having become Bali's second-highest number of fraud cases. Thus, it is necessary to understand whether the whistleblowing triangle can deter fraud. The research sample was selected among Village Credit Institution (VCI) employees in Denpasar using accidental sampling and generating 80 employees as respondents. This study used multiple regression analysis to test the hypotheses.Research findings: The results revealed that the whistleblowing triangle's components impacted whistleblowing intention. The intention to report fraudulent behavior was negatively impacted by pressure, while it was positively affected by opportunity and rationalization.Theoretical contribution/Originality: Most previous studies have investigated whistleblowing intention using the fraud triangle and theory of planned behavior separately. Meanwhile, this study used the whistleblowing triangle, combining fraud and planned behavior theory to predict whistleblowing intention.Research limitation: This study omitted financial incentives included in the previous research.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":"6 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139362626","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 : 2023-07-05DOI: 10.18196/jai.v24i3.18256
Unggul Heriqbaldi, Naufira Deilya Mufiidah
Research aims: This paper aims to examine factors influencing China's outward foreign direct investment (FDI) in ASEAN economies.Design/Methodology/Approach: The Kao panel cointegration approach and the Panel ARDL model were used in this study to estimate the long-run and short-run relationship between variables. This method is deemed superior to other panel models since it is advantageous when dealing with non-stationary variables at the level or I(1).Research findings: The estimation results provide empirical evidence that in the long run, ASEAN market size, exchange rate, import and export levels between China and ASEAN countries, inflation rate, and institutional factors such as the index of corruption control and political stability are the primary determinants of the flow of outward foreign direct investments from China to ASEAN economies. Theoretical contribution/Originality: This study provides additional evidence regarding the factors influencing direct investment flow from the home country to the host country, known as an outward foreign direct investment (OFDI). Previous studies have robustly proven that OFDI flows are influenced by factors such as the resources and market size of the host country, as predicted by location theory. This study further provides evidence that host country trade policy, the level of competitiveness demonstrated by favorable exchange rates, and institutional factors like corruption control and political stability are other important determinants in the context of China’s OFDI in ASEAN countries.Practitioner/Policy implication: Maintaining open trade policy, a competitive exchange rate and significant improvement in law and order would be suitable policies for ASEAN economies to attract more investment from China and other countries.Research limitation/Implication: This study did not cover other variables, such as investment facilities provided by the host government. In addition, economic packages like tax holidays and import-tariff discounts are common policies ASEAN countries provide. Hence, this variable can be considered in future research.
研究目的本文旨在研究影响中国对东盟经济体对外直接投资（FDI）的因素：本研究采用 Kao 面板协整方法和面板 ARDL 模型来估计变量之间的长期和短期关系。这种方法被认为优于其他面板模型，因为它在处理水平上的非平稳变量或 I（1）时具有优势：估计结果提供了经验证据，即从长期来看，东盟市场规模、汇率、中国与东盟国家之间的进出口水平、通货膨胀率以及腐败控制指数和政治稳定性等制度因素是中国对东盟经济体对外直接投资流量的主要决定因素。理论贡献/原创性：本研究为影响直接投资从母国流向东道国（即对外直接投资）的因素提供了更多证据。以往的研究有力地证明，正如区位理论所预测的那样，对外直接投资流动受到东道国资源和市场规模等因素的影响。本研究进一步证明，东道国的贸易政策、有利汇率所体现的竞争力水平以及腐败控制和政治稳定等制度因素是中国在东盟国家对外直接投资的其他重要决定因素：保持开放的贸易政策、有竞争力的汇率以及法律和秩序的显著改善将是东盟经济体从中国和其他国家吸引更多投资的合适政策：本研究未涵盖其他变量，如东道国政府提供的投资便利。此外，免税期和进口关税折扣等一揽子经济政策也是东盟国家提供的常见政策。因此，在今后的研究中可以考虑这一变量。
{"title":"The determinants of China’s outward foreign direct investment in ASEAN: A panel ARDL approach","authors":"Unggul Heriqbaldi, Naufira Deilya Mufiidah","doi":"10.18196/jai.v24i3.18256","DOIUrl":"https://doi.org/10.18196/jai.v24i3.18256","url":null,"abstract":"Research aims: This paper aims to examine factors influencing China's outward foreign direct investment (FDI) in ASEAN economies.Design/Methodology/Approach: The Kao panel cointegration approach and the Panel ARDL model were used in this study to estimate the long-run and short-run relationship between variables. This method is deemed superior to other panel models since it is advantageous when dealing with non-stationary variables at the level or I(1).Research findings: The estimation results provide empirical evidence that in the long run, ASEAN market size, exchange rate, import and export levels between China and ASEAN countries, inflation rate, and institutional factors such as the index of corruption control and political stability are the primary determinants of the flow of outward foreign direct investments from China to ASEAN economies. Theoretical contribution/Originality: This study provides additional evidence regarding the factors influencing direct investment flow from the home country to the host country, known as an outward foreign direct investment (OFDI). Previous studies have robustly proven that OFDI flows are influenced by factors such as the resources and market size of the host country, as predicted by location theory. This study further provides evidence that host country trade policy, the level of competitiveness demonstrated by favorable exchange rates, and institutional factors like corruption control and political stability are other important determinants in the context of China’s OFDI in ASEAN countries.Practitioner/Policy implication: Maintaining open trade policy, a competitive exchange rate and significant improvement in law and order would be suitable policies for ASEAN economies to attract more investment from China and other countries.Research limitation/Implication: This study did not cover other variables, such as investment facilities provided by the host government. In addition, economic packages like tax holidays and import-tariff discounts are common policies ASEAN countries provide. Hence, this variable can be considered in future research.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":"5 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139362643","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 : 2023-06-23DOI: 10.18196/jai.v24i3.18139
Samuel Tabot Enow
Research aims: Illiquidity risk is one of the complex issues that institutional investors and market participants continually face over time. It is because the constructs of illiquidity risk are sometimes complicated, robust, and not so evident in secondary markets. Hence, this study aims to empirically explore illiquidity risk before and during the COVID-19 pandemic to understand how much investors were expected to lose if they invested in stock markets during these periods.Design/Methodology/Approach: This study used a GARCH model and the Amihud illiquidity ratio to achieve its objective. Trading volumes and price returns for the JSE, CAC 40, DAX, Nasdaq, BIST 100, and SSE were from June 30, 2017, to June 30, 2019, and January 1, 2020, to December 31, 2021.Research findings: As expected, the findings revealed higher illiquidity risk during periods of financial distress, such as the COVID-19 pandemic. During the financial crisis, investors could lose up to $22268.44 a day in less developed markets, such as the JSE, while the average loss in developed markets ranged between $0.22 to $11.53 in the Nasdaq and DAX, respectively. On average, a much lower figure was observed before the financial crisis. The BIST100, CAC 40, DAX, and Nasdaq are excellent options for those seeking lower-risk premiums.Theoretical and Practitioner/Policy implication: Policies such as adequate market microstructure and greater transparency in trading are strongly recommended for less developed markets, especially during periods of financial distress. Also, the findings of this study provide valuable insight into short-term traders and market participants attracted to liquid markets, where they can easily enter and exit their positions with minimal transaction costs. To the author's knowledge, this paper is the first to model illiquidity risk in stock markets.Research limitation/Implication: It is possible that the current study did not accurately capture the cost of illiquidity in the sampled financial markets and cannot be applied to other financial markets.
{"title":"Exploring illiquidity risk pre and during the COVID-19 pandemic era: Evidence from international financial markets","authors":"Samuel Tabot Enow","doi":"10.18196/jai.v24i3.18139","DOIUrl":"https://doi.org/10.18196/jai.v24i3.18139","url":null,"abstract":"Research aims: Illiquidity risk is one of the complex issues that institutional investors and market participants continually face over time. It is because the constructs of illiquidity risk are sometimes complicated, robust, and not so evident in secondary markets. Hence, this study aims to empirically explore illiquidity risk before and during the COVID-19 pandemic to understand how much investors were expected to lose if they invested in stock markets during these periods.Design/Methodology/Approach: This study used a GARCH model and the Amihud illiquidity ratio to achieve its objective. Trading volumes and price returns for the JSE, CAC 40, DAX, Nasdaq, BIST 100, and SSE were from June 30, 2017, to June 30, 2019, and January 1, 2020, to December 31, 2021.Research findings: As expected, the findings revealed higher illiquidity risk during periods of financial distress, such as the COVID-19 pandemic. During the financial crisis, investors could lose up to $22268.44 a day in less developed markets, such as the JSE, while the average loss in developed markets ranged between $0.22 to $11.53 in the Nasdaq and DAX, respectively. On average, a much lower figure was observed before the financial crisis. The BIST100, CAC 40, DAX, and Nasdaq are excellent options for those seeking lower-risk premiums.Theoretical and Practitioner/Policy implication: Policies such as adequate market microstructure and greater transparency in trading are strongly recommended for less developed markets, especially during periods of financial distress. Also, the findings of this study provide valuable insight into short-term traders and market participants attracted to liquid markets, where they can easily enter and exit their positions with minimal transaction costs. To the author's knowledge, this paper is the first to model illiquidity risk in stock markets.Research limitation/Implication: It is possible that the current study did not accurately capture the cost of illiquidity in the sampled financial markets and cannot be applied to other financial markets.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136084718","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}
Research aims: This research aims to prove the effect of independent commissioner performance and audit committee expertise on earnings management to avoid earnings decreases and political connections to strengthen independent commissioner performance and audit committee expertise to limit earnings management.Design/Methodology/Approach: The population was manufacturing firms listed on Indonesian Stock Exchange during 2017-2020. The sampling technique used purposive sampling with a sample of 102 firms for four years or 408 observations. Then, hypothesis testing employed multiple regression analysis and hierarchical regression analysis.Research findings: The results showcased that accrual earnings management and abnormal discretionary expenses were used by managers to avoid decreases in earnings. On the other hand, corporate governance, like audit committee expertise, could be used to limit earnings management. While the political connection could strengthen and weaken the effect of independent commissioner performances in limiting earning management, political connections could not strengthen audit committee expertise in limiting real and accrual earnings management.Theoretical contribution/Originality: This research contributes to the political connection and earning management literature and provides empirical evidence of agency theory, positive accounting theory, prospect theory, and resource dependence theory.Practitioner/Policy implication: This research contributes to investors in determining investment decisions.Research limitation/Implication: The limitation of this research is that independent variables only used two components of corporate governance, i.e., the independent commissioner performances and audit committee expertise, so the level of influence of the independent variables on the dependent was small.
{"title":"The effect of corporate governance on earnings management moderated by political connection","authors":"Rini Adriani Auliana, Bambang Subroto, Imam Subekti","doi":"10.18196/jai.v24i3.17390","DOIUrl":"https://doi.org/10.18196/jai.v24i3.17390","url":null,"abstract":"Research aims: This research aims to prove the effect of independent commissioner performance and audit committee expertise on earnings management to avoid earnings decreases and political connections to strengthen independent commissioner performance and audit committee expertise to limit earnings management.Design/Methodology/Approach: The population was manufacturing firms listed on Indonesian Stock Exchange during 2017-2020. The sampling technique used purposive sampling with a sample of 102 firms for four years or 408 observations. Then, hypothesis testing employed multiple regression analysis and hierarchical regression analysis.Research findings: The results showcased that accrual earnings management and abnormal discretionary expenses were used by managers to avoid decreases in earnings. On the other hand, corporate governance, like audit committee expertise, could be used to limit earnings management. While the political connection could strengthen and weaken the effect of independent commissioner performances in limiting earning management, political connections could not strengthen audit committee expertise in limiting real and accrual earnings management.Theoretical contribution/Originality: This research contributes to the political connection and earning management literature and provides empirical evidence of agency theory, positive accounting theory, prospect theory, and resource dependence theory.Practitioner/Policy implication: This research contributes to investors in determining investment decisions.Research limitation/Implication: The limitation of this research is that independent variables only used two components of corporate governance, i.e., the independent commissioner performances and audit committee expertise, so the level of influence of the independent variables on the dependent was small.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135090306","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 : 2023-06-07DOI: 10.18196/jai.v24i3.17565
Dzakiyyah Saniyyah Rahmah, Yulianti Abbas
Research aims: This study aims to explore whether and to what extent political turnover (a change of local government head) is associated with a firm’s business decisions, such as tax avoidance and corporate investment.Design/Methodology/Approach: Using a sample of companies listed in the Indonesia Stock Exchange from 2012-2021, the authors measured the association between changes in local government leaders and business decisions using panel data regression with Driscoll Kraay’s Standard Error. The authors hand-collected data on changes in local government leaders in 183 Indonesian cities to measure political turnover and merged the data with financial variables collected from the Eikon database.Research findings: This study uncovered that local political turnover in the region of companies' headquarters was negatively associated with tax avoidance decisions. This study also found that local political turnover negatively affected corporate investment decisions during normal/non-crisis periods. Consistent with the Resource Dependence Theory, the results of this study suggest that firms treat relationships with local government as an important resource. Political turnover thus creates uncertainty on the sustainability of the resources, causing firms to adjust their business decisions.Theoretical contribution/Originality: This study provides an understanding of how changes in political conditions in Indonesia change business strategy decisions. Besides, this research area is still under-studied in Indonesia.Research limitation: Since this study focused on the uncertainty caused by political turnover, this study did not measure firms’ political connections.
{"title":"Political turnover and business decision: A study of Indonesian public companies","authors":"Dzakiyyah Saniyyah Rahmah, Yulianti Abbas","doi":"10.18196/jai.v24i3.17565","DOIUrl":"https://doi.org/10.18196/jai.v24i3.17565","url":null,"abstract":"Research aims: This study aims to explore whether and to what extent political turnover (a change of local government head) is associated with a firm’s business decisions, such as tax avoidance and corporate investment.Design/Methodology/Approach: Using a sample of companies listed in the Indonesia Stock Exchange from 2012-2021, the authors measured the association between changes in local government leaders and business decisions using panel data regression with Driscoll Kraay’s Standard Error. The authors hand-collected data on changes in local government leaders in 183 Indonesian cities to measure political turnover and merged the data with financial variables collected from the Eikon database.Research findings: This study uncovered that local political turnover in the region of companies' headquarters was negatively associated with tax avoidance decisions. This study also found that local political turnover negatively affected corporate investment decisions during normal/non-crisis periods. Consistent with the Resource Dependence Theory, the results of this study suggest that firms treat relationships with local government as an important resource. Political turnover thus creates uncertainty on the sustainability of the resources, causing firms to adjust their business decisions.Theoretical contribution/Originality: This study provides an understanding of how changes in political conditions in Indonesia change business strategy decisions. Besides, this research area is still under-studied in Indonesia.Research limitation: Since this study focused on the uncertainty caused by political turnover, this study did not measure firms’ political connections.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135493064","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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