Pub Date : 2023-05-12DOI: 10.18196/jai.v24i2.17394
Siti Rachmah, Bambang Subroto, I. Subekti
Research aims: The COVID-19 pandemic caused capital market conditions, especially the banking sector, to decline. Therefore, a strategy is needed to help increase the market value of banking companies so that capital market conditions for the banking sector can be stable. The plan that can be implemented is to properly improve the management of the company's intellectual capital and improve efficiency in these banking companies so that the banking industry can develop and regain its existence in the capital market. This study aims to empirically test and prove the effect of intellectual capital on market performance mediated by banking efficiency.Design/Methodology/Approach: This study used a quantitative approach with a sample of banking sector companies on the Indonesia Stock Exchange in 2017-2021. The data met the criteria of 37 companies with a total of 117 observations. The banking efficiency testing method used Data Envelopment Analysis (DEA). Furthermore, the analysis of the hypothesis testing phase utilized multiple linear regression methods.Research findings: The study revealed that intellectual capital positively affected market performance. Second, intellectual capital had a positive impact on banking efficiency. Third, banking efficiency had a positive effect on market performance. Fourth, banking efficiency could fully mediate the relationship between intellectual capital and market performance.Practical and Theoretical Contribution/Originality: This study can provide input to companies to obtain high corporate value and competitive advantage. Thus, companies must pay attention to their intellectual capital. The results of this study were empirical evidence of the resource-based view theory in the utilization of intellectual capital and provided empirical evidence regarding the effect of intellectual capital on market performance through bank efficiency as a mediating variable.Research limitation: Business efficiency measurement utilized a non-parametric approach using Data Envelopment Analysis which has the limitation that each input and output unit is identical to other units of the same type.
{"title":"The effect of intellectual capital on market performance with bank efficiency as a mediation variable","authors":"Siti Rachmah, Bambang Subroto, I. Subekti","doi":"10.18196/jai.v24i2.17394","DOIUrl":"https://doi.org/10.18196/jai.v24i2.17394","url":null,"abstract":"Research aims: The COVID-19 pandemic caused capital market conditions, especially the banking sector, to decline. Therefore, a strategy is needed to help increase the market value of banking companies so that capital market conditions for the banking sector can be stable. The plan that can be implemented is to properly improve the management of the company's intellectual capital and improve efficiency in these banking companies so that the banking industry can develop and regain its existence in the capital market. This study aims to empirically test and prove the effect of intellectual capital on market performance mediated by banking efficiency.Design/Methodology/Approach: This study used a quantitative approach with a sample of banking sector companies on the Indonesia Stock Exchange in 2017-2021. The data met the criteria of 37 companies with a total of 117 observations. The banking efficiency testing method used Data Envelopment Analysis (DEA). Furthermore, the analysis of the hypothesis testing phase utilized multiple linear regression methods.Research findings: The study revealed that intellectual capital positively affected market performance. Second, intellectual capital had a positive impact on banking efficiency. Third, banking efficiency had a positive effect on market performance. Fourth, banking efficiency could fully mediate the relationship between intellectual capital and market performance.Practical and Theoretical Contribution/Originality: This study can provide input to companies to obtain high corporate value and competitive advantage. Thus, companies must pay attention to their intellectual capital. The results of this study were empirical evidence of the resource-based view theory in the utilization of intellectual capital and provided empirical evidence regarding the effect of intellectual capital on market performance through bank efficiency as a mediating variable.Research limitation: Business efficiency measurement utilized a non-parametric approach using Data Envelopment Analysis which has the limitation that each input and output unit is identical to other units of the same type.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49135664","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 : 2023-05-12DOI: 10.18196/jai.v24i2.17970
Putri Auliana Rifqi Mukhlashin, Anwar Fitrianto, Agus M Soleh, Wan Zuki Azman Wan Muhamad
Research aims: This study aims to create an early detection model to predict events in the Indonesian capital market.Design/Methodology/Approach: A quantitative study comparing ensemble learning models with imbalanced data handling detected early capital market events. This study used five ensemble learning models—Random Forest, ExtraTrees, CatBoost, XGBoost, and LightGBM—to detect early events in the Indonesian capital market by handling imbalanced data, such as under sampling (RUS), oversampling (SMOTE, SMOTE-Broder, ADASYN), and over-under sampling (SMOTE-Tomek, SMOTE-ENN), weighted (class weight). Global and regional stock markets, commodities, exchange rates, technical indicators, sectoral indices, JCI leaders, MSCI, net buys of foreign stocks, national securities, and national share ownership all predicted the lowest return of Crisis Management Protocol (CMP) binary responses.Research findings: Hyperparameters and thresholds were tuned to produce the optimum model. The best model had the highest G-mean. ExtraTrees with SMOTE-ENN predicted the highest number of one-day events, with a G-Mean of 96.88%. LightGBM with SMOTE handling best predicted five-day events with an 89.21% G-Mean. With a G-Mean of 89.49%, CatBoost with SMOTE-Border handling was the best for a 15-day event. In addition, LightGBM with SMOTE-Tomek handling and 68.02% G-Mean was best for 30-day events. Further, performance evaluation scores decreased with increased prediction time.Theoretical contribution/Originality: This work relates more imbalance handling methods and ensemble learning to capital market early detection cases.Practitioner/Policy implication: Capital markets can indicate economic stability. Maintaining capital market efficacy and economic value requires a system to detect pressure.Research limitation/Implication: This study used ensemble learning models to predict capital market events 1, 5, 15, and 30 days ahead, assuming Indonesian working days. The model's forecast results are expected to be utilized to monitor the capital market and take precautions.
{"title":"Ensemble learning with imbalanced data handling in the early detection of capital markets","authors":"Putri Auliana Rifqi Mukhlashin, Anwar Fitrianto, Agus M Soleh, Wan Zuki Azman Wan Muhamad","doi":"10.18196/jai.v24i2.17970","DOIUrl":"https://doi.org/10.18196/jai.v24i2.17970","url":null,"abstract":"Research aims: This study aims to create an early detection model to predict events in the Indonesian capital market.Design/Methodology/Approach: A quantitative study comparing ensemble learning models with imbalanced data handling detected early capital market events. This study used five ensemble learning models—Random Forest, ExtraTrees, CatBoost, XGBoost, and LightGBM—to detect early events in the Indonesian capital market by handling imbalanced data, such as under sampling (RUS), oversampling (SMOTE, SMOTE-Broder, ADASYN), and over-under sampling (SMOTE-Tomek, SMOTE-ENN), weighted (class weight). Global and regional stock markets, commodities, exchange rates, technical indicators, sectoral indices, JCI leaders, MSCI, net buys of foreign stocks, national securities, and national share ownership all predicted the lowest return of Crisis Management Protocol (CMP) binary responses.Research findings: Hyperparameters and thresholds were tuned to produce the optimum model. The best model had the highest G-mean. ExtraTrees with SMOTE-ENN predicted the highest number of one-day events, with a G-Mean of 96.88%. LightGBM with SMOTE handling best predicted five-day events with an 89.21% G-Mean. With a G-Mean of 89.49%, CatBoost with SMOTE-Border handling was the best for a 15-day event. In addition, LightGBM with SMOTE-Tomek handling and 68.02% G-Mean was best for 30-day events. Further, performance evaluation scores decreased with increased prediction time.Theoretical contribution/Originality: This work relates more imbalance handling methods and ensemble learning to capital market early detection cases.Practitioner/Policy implication: Capital markets can indicate economic stability. Maintaining capital market efficacy and economic value requires a system to detect pressure.Research limitation/Implication: This study used ensemble learning models to predict capital market events 1, 5, 15, and 30 days ahead, assuming Indonesian working days. The model's forecast results are expected to be utilized to monitor the capital market and take precautions.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":"91 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135383129","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 : 2023-05-08DOI: 10.18196/jai.v24i2.18140
Quyen Thuc Doan, T. T. Nga., L. Mến, S. Darsono
Research aims: This study examines the relationship between the CEOs’ income and the quality of financial statements of industrial firms listed on the Ho Chi Minh Stock Exchange (HSX) during the three years from 2018 to 2020.Design/Methodology/Approach: This study investigated the influence of CEOs’ characteristics, particularly their income, on the quality of financial statements of listed firms in the Vietnamese industry by using features of information quality proposed by the International Accounting Standards Board (IASB). Ordinary Least Squares (OLS), Random Effects model (REM), Fixed Effects model (FEM), and Feasible Generalized Least Squares (FGLS) regressions were applied for empirical examinations.Research findings: The results of this study demonstrated that a CEO’s income positively affected the quality of corporate financial statements. Additionally, the analysis results confirmed the positive correlation between the firm’s size and the quality of disclosed reports, consistent with prior studies. However, this study uncovered that Big4 auditors did not influence the quality of financial statements.Theoretical contribution/Originality: This study contributes to the literature by providing a comprehensive perspective on the assessment of corporate financial statements quality and examining its association with the CEO’s income in the context of an emerging economy.Practitioner/Policy implication: The study is useful for investors and other financial statement users to assess the quality of corporate financial statements through the CEO’s profile; it also contributes as a scientific basis for firms to adjust the compensations offered to their CEOs.Research limitation: This study was limited by looking at the mono-directional impact of the CEO’s income on the financial statement quality. The following studies need a larger sample of industries and countries to strengthen the research findings. Also, further studies can broaden their perspectives to investigate the multidimensionality of this relation.
{"title":"Does the income of the chief executive officer affect the quality of corporate financial statements? An evidence from industrial firms in Vietnam","authors":"Quyen Thuc Doan, T. T. Nga., L. Mến, S. Darsono","doi":"10.18196/jai.v24i2.18140","DOIUrl":"https://doi.org/10.18196/jai.v24i2.18140","url":null,"abstract":"Research aims: This study examines the relationship between the CEOs’ income and the quality of financial statements of industrial firms listed on the Ho Chi Minh Stock Exchange (HSX) during the three years from 2018 to 2020.Design/Methodology/Approach: This study investigated the influence of CEOs’ characteristics, particularly their income, on the quality of financial statements of listed firms in the Vietnamese industry by using features of information quality proposed by the International Accounting Standards Board (IASB). Ordinary Least Squares (OLS), Random Effects model (REM), Fixed Effects model (FEM), and Feasible Generalized Least Squares (FGLS) regressions were applied for empirical examinations.Research findings: The results of this study demonstrated that a CEO’s income positively affected the quality of corporate financial statements. Additionally, the analysis results confirmed the positive correlation between the firm’s size and the quality of disclosed reports, consistent with prior studies. However, this study uncovered that Big4 auditors did not influence the quality of financial statements.Theoretical contribution/Originality: This study contributes to the literature by providing a comprehensive perspective on the assessment of corporate financial statements quality and examining its association with the CEO’s income in the context of an emerging economy.Practitioner/Policy implication: The study is useful for investors and other financial statement users to assess the quality of corporate financial statements through the CEO’s profile; it also contributes as a scientific basis for firms to adjust the compensations offered to their CEOs.Research limitation: This study was limited by looking at the mono-directional impact of the CEO’s income on the financial statement quality. The following studies need a larger sample of industries and countries to strengthen the research findings. Also, further studies can broaden their perspectives to investigate the multidimensionality of this relation.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-05-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47359422","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 : 2023-05-08DOI: 10.18196/jai.v24i2.18146
Muhamad Rizky Ramadhan, W. Ermawati, A. Fariyanti
Research aims: This study aims to investigate herding behavior in the large-capitalization cryptocurrency market and analyze the role/influence of Indonesia's macroeconomic factors, namely inflation and interest rates, on herding behavior in the large-cap cryptocurrency market.Design/Methodology/Approach: This study used secondary data from the daily closing prices of five large-cap cryptocurrencies and Indonesia's macroeconomic data (inflation and interest rates) from April 2019 to December 2022 by using the Cross-Sectional Absolute Deviation (CSAD) model and Newey-West estimator regression approach to detect herding behavior with a modified independent variable model involving factors influencing herding behavior.Research findings: Based on the results using the Newey-West estimator, three main results were obtained. First, large-cap cryptocurrency investors tend to be irrational in their decisions and follow the decisions of others without reference to their beliefs or herding during the sample period. Second of the two macroeconomic factors studied, i.e., inflation and interest rates, only changes in inflation rates influence investor herding behavior. Third, the market is inefficient with the proven tendency of herding behavior in large-cap cryptocurrencies.Practical and Theoretical contribution/Originality: This study narrows down the research of previous studies by using cryptocurrency research objects with a large market capitalization (large cap). In addition, this research extends the research of previous studies by considering external factors related to macroeconomic conditions in Indonesia in general, such as the inflation rate and the interest rate. This study can provide information about financial behavior in the cryptocurrency market, especially herding behavior, so that investors and policymakers can be assisted in formulating investment strategies and regulating cryptocurrencies.Research limitation: This research was limited to using only cryptocurrency assets by not using crypto-tokens, non-fungible tokens (NFT), and other crypto-assets.
{"title":"The influence of Indonesia’s macroeconomic factors: Inflation and interest rate on large-cap cryptocurrency herding behavior","authors":"Muhamad Rizky Ramadhan, W. Ermawati, A. Fariyanti","doi":"10.18196/jai.v24i2.18146","DOIUrl":"https://doi.org/10.18196/jai.v24i2.18146","url":null,"abstract":"Research aims: This study aims to investigate herding behavior in the large-capitalization cryptocurrency market and analyze the role/influence of Indonesia's macroeconomic factors, namely inflation and interest rates, on herding behavior in the large-cap cryptocurrency market.Design/Methodology/Approach: This study used secondary data from the daily closing prices of five large-cap cryptocurrencies and Indonesia's macroeconomic data (inflation and interest rates) from April 2019 to December 2022 by using the Cross-Sectional Absolute Deviation (CSAD) model and Newey-West estimator regression approach to detect herding behavior with a modified independent variable model involving factors influencing herding behavior.Research findings: Based on the results using the Newey-West estimator, three main results were obtained. First, large-cap cryptocurrency investors tend to be irrational in their decisions and follow the decisions of others without reference to their beliefs or herding during the sample period. Second of the two macroeconomic factors studied, i.e., inflation and interest rates, only changes in inflation rates influence investor herding behavior. Third, the market is inefficient with the proven tendency of herding behavior in large-cap cryptocurrencies.Practical and Theoretical contribution/Originality: This study narrows down the research of previous studies by using cryptocurrency research objects with a large market capitalization (large cap). In addition, this research extends the research of previous studies by considering external factors related to macroeconomic conditions in Indonesia in general, such as the inflation rate and the interest rate. This study can provide information about financial behavior in the cryptocurrency market, especially herding behavior, so that investors and policymakers can be assisted in formulating investment strategies and regulating cryptocurrencies.Research limitation: This research was limited to using only cryptocurrency assets by not using crypto-tokens, non-fungible tokens (NFT), and other crypto-assets.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-05-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44862440","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 : 2023-04-24DOI: 10.18196/jai.v24i2.18398
Nazaruddin Malik
Research aims: This study examines the effect of work engagement on the turnover intention with employee trust as a mediating variable in the banking sector in Malang, IndonesiaDesign/Methodology/Approach: This study uses a quantitative approach with data collection methods using questionnaires that were distributed online and processed using Partial Least Square (PLS) using a 119 response data.Research findings: The findings of this study show that work engagement has a negative effect on turnover intention. Employee trust mediated the effect between work engagement and turnover intention.Theoretical contribution/Originality: This study examined the role of employee trust as a mediating variable. Employee trust plays a vital role in maintaining people’s engagement on an organization, affecting low workers' intention to quit from their jobs. The results of this study confirm Maslow's motivational theory if employees are more involved in work and feel fulfilled. Employees will feel comfortable and reduce the level of turnover intention.Practitioner/Policy implication: These findings suggested leaders encourage engagement programs to increase employee trust to reduce turnover intention.Research limitation/Implication: The study had limitations, such as the few samples used and the fact that only Malang's banking industry employees were included.
{"title":"Does employee trust matter? Measuring the effect of work engagement on turnover intention in the banking sector","authors":"Nazaruddin Malik","doi":"10.18196/jai.v24i2.18398","DOIUrl":"https://doi.org/10.18196/jai.v24i2.18398","url":null,"abstract":"Research aims: This study examines the effect of work engagement on the turnover intention with employee trust as a mediating variable in the banking sector in Malang, IndonesiaDesign/Methodology/Approach: This study uses a quantitative approach with data collection methods using questionnaires that were distributed online and processed using Partial Least Square (PLS) using a 119 response data.Research findings: The findings of this study show that work engagement has a negative effect on turnover intention. Employee trust mediated the effect between work engagement and turnover intention.Theoretical contribution/Originality: This study examined the role of employee trust as a mediating variable. Employee trust plays a vital role in maintaining people’s engagement on an organization, affecting low workers' intention to quit from their jobs. The results of this study confirm Maslow's motivational theory if employees are more involved in work and feel fulfilled. Employees will feel comfortable and reduce the level of turnover intention.Practitioner/Policy implication: These findings suggested leaders encourage engagement programs to increase employee trust to reduce turnover intention.Research limitation/Implication: The study had limitations, such as the few samples used and the fact that only Malang's banking industry employees were included.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-04-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49482291","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 : 2023-04-14DOI: 10.18196/jai.v24i2.17424
Giovani Priscilia, Estralita Trisnawati
Research aims: This study aims to analyze the relationship between real earnings management, fraud, and earnings informativeness, as the moderating variable, on investment efficiency.Design/Methodology/Approach: The samples tested consisted of 333 observations in manufacturing companies during 2018-2020. The hypothesis testing used moderated regression analysis through Eviews-12.Research findings: The results uncovered that real earnings management with cash flow (EM_CFO), production (EM_PROD), and discretionary costs (EM_DISEXP) had a negative effect on investment efficiency, while fraud had a positive effect. Besides, earnings informativeness as the moderation variable only affected fraud on the investment efficiency. Theoretical contribution/Originality: This study used real earnings management with EM_CFO, EM_PROD, and EM_DISEXP as a transition approach from accrual earnings management. In previous studies, fraud was not directly examined on investment efficiency. Adding earnings informativeness as a moderation variable thus gives another perspective on the relationship between independent and dependent variables.Practitioner/Policy implication: The implication for the practitioner is to provide consideration for earnings management, fraud, earnings informativeness, and investment efficiency. From a policy’s view, this study can give an overview to Financial Services Authority (“OJK”) and Investment Coordinating Board (“BKPM”) to consider and know the important elements in the financial statements and encourage investment efficiency.Research limitation/Implication: The limitation is that the coverage of samples was only from the manufacturing industry. Exploring other sectors, extending the period, and deepening analysis is open for better research, including using other proxies in each variable. The implication is not only as additional literature but also can give the shareholders and management an overview of the investment’s decision-making.
{"title":"The effect of real earnings management, fraud, and earnings informativeness, as the moderating variable, on investment efficiency","authors":"Giovani Priscilia, Estralita Trisnawati","doi":"10.18196/jai.v24i2.17424","DOIUrl":"https://doi.org/10.18196/jai.v24i2.17424","url":null,"abstract":"Research aims: This study aims to analyze the relationship between real earnings management, fraud, and earnings informativeness, as the moderating variable, on investment efficiency.Design/Methodology/Approach: The samples tested consisted of 333 observations in manufacturing companies during 2018-2020. The hypothesis testing used moderated regression analysis through Eviews-12.Research findings: The results uncovered that real earnings management with cash flow (EM_CFO), production (EM_PROD), and discretionary costs (EM_DISEXP) had a negative effect on investment efficiency, while fraud had a positive effect. Besides, earnings informativeness as the moderation variable only affected fraud on the investment efficiency. Theoretical contribution/Originality: This study used real earnings management with EM_CFO, EM_PROD, and EM_DISEXP as a transition approach from accrual earnings management. In previous studies, fraud was not directly examined on investment efficiency. Adding earnings informativeness as a moderation variable thus gives another perspective on the relationship between independent and dependent variables.Practitioner/Policy implication: The implication for the practitioner is to provide consideration for earnings management, fraud, earnings informativeness, and investment efficiency. From a policy’s view, this study can give an overview to Financial Services Authority (“OJK”) and Investment Coordinating Board (“BKPM”) to consider and know the important elements in the financial statements and encourage investment efficiency.Research limitation/Implication: The limitation is that the coverage of samples was only from the manufacturing industry. Exploring other sectors, extending the period, and deepening analysis is open for better research, including using other proxies in each variable. The implication is not only as additional literature but also can give the shareholders and management an overview of the investment’s decision-making.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48106349","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 : 2023-04-08DOI: 10.18196/jai.v24i2.17016
Sila Ninin Wisnantiasri
Research aims: This study investigates the role of firm characteristics explained by the investment opportunity (IO) on the ability of dividends to predict future earnings.Design/Methodology/Approach: This study performed an empirical study on firms listed in the consumer goods sub-sector on the Indonesian Stock Exchange, divided into companies with strong and weak IO categories to clearly see the role of IO by comparing the variable dividend coefficients of the two sample categories. Through purposive sampling, the researcher determined the research sample, totaling 42 firm samples for the weak IO category and 48 firm samples for the strong IO category. Then, the multiple regression analysis utilizing IBM SPSS Statistic Version 23 was employed to analyze the relationship between variables.Research findings: Surprisingly, companies with weak IO showed a more remarkable ability to predict future earnings than companies with strong IO because the dividend coefficient of companies with weak IO was higher than that of strong IO, denoting that the number could explain the strength of ability.Theoretical contribution/Originality: The result provides alternative explanations to the previous inconsistent results from the dividend's ability to predict future earnings. The result also supports the argument that the companies with weak IO may use dividends to convey information signals and compensate the investor for unsatisfied performance, which is called counter-signal when strong IO refrain from doing so and rely on additional information.Practitioner/Policy implication: Investors should notice companies' characteristics, such as investment opportunities, while considering dividends as a signal for future performance to make an investment decision. Research limitation/Implication: The research did not fully capture all companies in Indonesian Stock Exchange, but specifically for the companies’ sub-sector that aggressively paid the dividend. Thus, future research is hoped to provide empirical studies for other sector companies listed on Indonesia Stock Exchange to enrich alternative explanations.
{"title":"Do dividends still matter? The role of investment opportunities on the ability of dividends to predict future earnings","authors":"Sila Ninin Wisnantiasri","doi":"10.18196/jai.v24i2.17016","DOIUrl":"https://doi.org/10.18196/jai.v24i2.17016","url":null,"abstract":"Research aims: This study investigates the role of firm characteristics explained by the investment opportunity (IO) on the ability of dividends to predict future earnings.Design/Methodology/Approach: This study performed an empirical study on firms listed in the consumer goods sub-sector on the Indonesian Stock Exchange, divided into companies with strong and weak IO categories to clearly see the role of IO by comparing the variable dividend coefficients of the two sample categories. Through purposive sampling, the researcher determined the research sample, totaling 42 firm samples for the weak IO category and 48 firm samples for the strong IO category. Then, the multiple regression analysis utilizing IBM SPSS Statistic Version 23 was employed to analyze the relationship between variables.Research findings: Surprisingly, companies with weak IO showed a more remarkable ability to predict future earnings than companies with strong IO because the dividend coefficient of companies with weak IO was higher than that of strong IO, denoting that the number could explain the strength of ability.Theoretical contribution/Originality: The result provides alternative explanations to the previous inconsistent results from the dividend's ability to predict future earnings. The result also supports the argument that the companies with weak IO may use dividends to convey information signals and compensate the investor for unsatisfied performance, which is called counter-signal when strong IO refrain from doing so and rely on additional information.Practitioner/Policy implication: Investors should notice companies' characteristics, such as investment opportunities, while considering dividends as a signal for future performance to make an investment decision. Research limitation/Implication: The research did not fully capture all companies in Indonesian Stock Exchange, but specifically for the companies’ sub-sector that aggressively paid the dividend. Thus, future research is hoped to provide empirical studies for other sector companies listed on Indonesia Stock Exchange to enrich alternative explanations.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46401960","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 study examines the effect of allowance for impairment losses (CKPN) on value relevance.Design/Methodology/Approach: This research employed quantitative data using secondary data from banking financial reports derived from www.idx.co.id during 2019-2021. Also, this study used stock price data sourced from www.finance.yahoo.co.id. The use of data for 2020 was due to the first year of PSAK 71 implementation. While data for 2019 were employed to compare the year before the PSAK 71 implementation, and data for 2021 were used to compare the PSAK 71 implementation in the second year. Data testing was then performed utilizing multiple linear regression analysis for cross-section data.Research findings: This study suggests that CKPN was positively associated with the value relevance of earnings in the first year of PSAK 71 implementation.Theoretical contribution/Originality: This research is expected to complement the financial accounting literature on adopting IFRS 9, especially in Indonesia, which is rarely discussed in previous studies.Practitioner/Policy implication: This study is expected to be employed by the Indonesian Financial Services Authority in improving policies on financial stability in the capital market based on applying financial accounting standards.Research limitation/Implication: This study only employed data on banking sub-sector companies listed on the Indonesia Stock Exchange, which were relatively small in number. Future research can therefore use data from all financial companies in Indonesia or banking companies in other countries related to IFRS 9 implementation to compare the test results with this study.
{"title":"Value relevance of IFRS 9 adoption: A case study of Indonesian banking companies","authors":"Amrie Firmansyah, Lestari Kurniawati, Desrir Miftah, Tjahjo Winarto","doi":"10.18196/jai.v24i2.17574","DOIUrl":"https://doi.org/10.18196/jai.v24i2.17574","url":null,"abstract":"Research aims: This study examines the effect of allowance for impairment losses (CKPN) on value relevance.Design/Methodology/Approach: This research employed quantitative data using secondary data from banking financial reports derived from www.idx.co.id during 2019-2021. Also, this study used stock price data sourced from www.finance.yahoo.co.id. The use of data for 2020 was due to the first year of PSAK 71 implementation. While data for 2019 were employed to compare the year before the PSAK 71 implementation, and data for 2021 were used to compare the PSAK 71 implementation in the second year. Data testing was then performed utilizing multiple linear regression analysis for cross-section data.Research findings: This study suggests that CKPN was positively associated with the value relevance of earnings in the first year of PSAK 71 implementation.Theoretical contribution/Originality: This research is expected to complement the financial accounting literature on adopting IFRS 9, especially in Indonesia, which is rarely discussed in previous studies.Practitioner/Policy implication: This study is expected to be employed by the Indonesian Financial Services Authority in improving policies on financial stability in the capital market based on applying financial accounting standards.Research limitation/Implication: This study only employed data on banking sub-sector companies listed on the Indonesia Stock Exchange, which were relatively small in number. Future research can therefore use data from all financial companies in Indonesia or banking companies in other countries related to IFRS 9 implementation to compare the test results with this study.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41729878","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 : 2023-03-24DOI: 10.18196/jai.v24i2.17220
Yuri Oktaviani, M. Dewi
Research aims: This study explores the importance of information transparency for funders as parties who provide funding to borrowers' projects. It also analyzes information transparency practices in sharia P2P lending.Design/Methodology/Approach: The study used a qualitative case study, focusing on three sharia P2P lending companies in Indonesia. Data were collected through interviews with parties from three sharia P2P lending companies and 11 funders.Research findings: It was found that information transparency is important for funders, increasing their confidence to invest. In addition, based on multiple agency theory, there is information asymmetry between funders and sharia P2P lending borrowers, which can be reduced by information transparency measures from funders, sharia P2P lending, and borrowers based on cost-benefit considerations. Theoretical contribution/Originality: This research explores the application of information transparency in sharia P2P lending companies, which, as far as researchers are concerned, has not been raised in previous studies. In addition, the study builds a conceptual framework of information transparency in sharia P2P lending companies based on multiple agency theory. Practitioner implication: The research has implications for applying information transparency in sharia P2P lending, which can improve information updates and communication from sharia P2P lending to its funders.Research limitation/Implication: The study only focused on three out of the seven sharia P2P lending in Indonesia. Therefore, the differences in business, focus, and other characteristics of the remaining four were not considered.
{"title":"Is information transparency important for funders? A case study of sharia P2P lending companies in Indonesia","authors":"Yuri Oktaviani, M. Dewi","doi":"10.18196/jai.v24i2.17220","DOIUrl":"https://doi.org/10.18196/jai.v24i2.17220","url":null,"abstract":"Research aims: This study explores the importance of information transparency for funders as parties who provide funding to borrowers' projects. It also analyzes information transparency practices in sharia P2P lending.Design/Methodology/Approach: The study used a qualitative case study, focusing on three sharia P2P lending companies in Indonesia. Data were collected through interviews with parties from three sharia P2P lending companies and 11 funders.Research findings: It was found that information transparency is important for funders, increasing their confidence to invest. In addition, based on multiple agency theory, there is information asymmetry between funders and sharia P2P lending borrowers, which can be reduced by information transparency measures from funders, sharia P2P lending, and borrowers based on cost-benefit considerations. Theoretical contribution/Originality: This research explores the application of information transparency in sharia P2P lending companies, which, as far as researchers are concerned, has not been raised in previous studies. In addition, the study builds a conceptual framework of information transparency in sharia P2P lending companies based on multiple agency theory. Practitioner implication: The research has implications for applying information transparency in sharia P2P lending, which can improve information updates and communication from sharia P2P lending to its funders.Research limitation/Implication: The study only focused on three out of the seven sharia P2P lending in Indonesia. Therefore, the differences in business, focus, and other characteristics of the remaining four were not considered.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-03-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41956924","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 : 2023-03-24DOI: 10.18196/jai.v24i2.17114
M. Husni, R. Damayanti, Aini Indrijawati
Research aims: This research examines the effect of transparency on the village community’s trust through village government performance as an intervening variable. Design/Methodology/Approach: The research was carried out using a survey method by distributing questionnaires to the village government in Jeneponto Regency, Indonesia. Totally, 196 questionnaires were filled in. Data analysis was then conducted by using Partial Least Square (PLS) approach. Research findings: The results revealed that the performance and transparency of the village government influenced public trust. The research emphasizes that the village government’s performance had an intervention role in the relationship between transparency and public trust. Theoretical contribution/Originality: This research discovers that performance plays a role as an intervening variable between transparency and public trust in the context of a village government study. Research limitation/Implication: The research was only conducted in the scope of Jeneponto Regency; therefore, the generalization capacity was limited.
{"title":"The role of the village government performance and transparency in influencing village public trust","authors":"M. Husni, R. Damayanti, Aini Indrijawati","doi":"10.18196/jai.v24i2.17114","DOIUrl":"https://doi.org/10.18196/jai.v24i2.17114","url":null,"abstract":"Research aims: This research examines the effect of transparency on the village community’s trust through village government performance as an intervening variable. Design/Methodology/Approach: The research was carried out using a survey method by distributing questionnaires to the village government in Jeneponto Regency, Indonesia. Totally, 196 questionnaires were filled in. Data analysis was then conducted by using Partial Least Square (PLS) approach. Research findings: The results revealed that the performance and transparency of the village government influenced public trust. The research emphasizes that the village government’s performance had an intervention role in the relationship between transparency and public trust. Theoretical contribution/Originality: This research discovers that performance plays a role as an intervening variable between transparency and public trust in the context of a village government study. Research limitation/Implication: The research was only conducted in the scope of Jeneponto Regency; therefore, the generalization capacity was limited.","PeriodicalId":33157,"journal":{"name":"Journal of Accounting and Investment","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-03-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43606983","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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