Pub Date : 2020-07-30DOI: 10.14414/jebav.v23i1.2164
D. Bekele
The role of the manufacturing sector for the economic growth and structural change is very low in Ethiopia and performing less compering with that of the other sectors in the economy. So, this research tried to look at how different macroeconomic variables affect the manufacturing sector value added by using annual time series data from 1982 to 2018 estimated by Autoregressive-Distributed Lag (ARDL). The result from the Bound test shows manufacturing sector value added has a long-run relationship with macroeconomic variables in the model. In the long-run, general inflation rate, exchange rate, and trade openness have a significant negative effect on the manufacturing sector value-added. In contrast, general government expenditure has a significant positive effect. Also, the Error Correction model shows an adjustment towards the long-run equilibrium of the manufacturing sector value-added. So, the government has to control the general inflation level, promote demand for domestic manufacturing products and competitiveness of domestic firms, and strengthen the backward link of the sector to decrease its import-input dependency to reduce the effect of exchange rate depressions. Lastly, effective and efficient government expenditure will have to be used to increase the manufacturing sector value-added.
{"title":"The Impact of Macroeconomic Factors on Manufacturing Sector Value Added in Ethiopia: An Application of Bounds Testing Approach to Cointegration","authors":"D. Bekele","doi":"10.14414/jebav.v23i1.2164","DOIUrl":"https://doi.org/10.14414/jebav.v23i1.2164","url":null,"abstract":"The role of the manufacturing sector for the economic growth and structural change is very low in Ethiopia and performing less compering with that of the other sectors in the economy. So, this research tried to look at how different macroeconomic variables affect the manufacturing sector value added by using annual time series data from 1982 to 2018 estimated by Autoregressive-Distributed Lag (ARDL). The result from the Bound test shows manufacturing sector value added has a long-run relationship with macroeconomic variables in the model. In the long-run, general inflation rate, exchange rate, and trade openness have a significant negative effect on the manufacturing sector value-added. In contrast, general government expenditure has a significant positive effect. Also, the Error Correction model shows an adjustment towards the long-run equilibrium of the manufacturing sector value-added. So, the government has to control the general inflation level, promote demand for domestic manufacturing products and competitiveness of domestic firms, and strengthen the backward link of the sector to decrease its import-input dependency to reduce the effect of exchange rate depressions. Lastly, effective and efficient government expenditure will have to be used to increase the manufacturing sector value-added.","PeriodicalId":444170,"journal":{"name":"Journal of Economics, Business, and Accountancy | Ventura","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122838504","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 : 2020-07-30DOI: 10.14414/jebav.v23i1.2153
Nicko Albart, B. Sinaga, Perdana Wahyu Santosa, T. Andati
This study aims to determine the effect of corporate characteristics on the company's capital structure, which plays a fundamental role in the proportion of debt and equity financing risks. The research method used is purposive sampling. This research's population is non-financial issuers listed on the Indonesia Stock Exchange with quarterly data for the period of 2010-2017. The analysis is performed using panel data with six independent variables and two control variables. The results of this study indicate that profitability and institutional ownership have a negative effect on capital structure. In contrast, market ratios, firm size, and managerial ownership have a positive effect on capital structure. Debt decision making must consider financial and ownership characteristics, especially if there is institutional or government ownership in the company because company characteristics have a significant effect on the company's capital structure.
{"title":"The Effect of Corporate Characteristics on Capital Structure in Indonesia","authors":"Nicko Albart, B. Sinaga, Perdana Wahyu Santosa, T. Andati","doi":"10.14414/jebav.v23i1.2153","DOIUrl":"https://doi.org/10.14414/jebav.v23i1.2153","url":null,"abstract":"This study aims to determine the effect of corporate characteristics on the company's capital structure, which plays a fundamental role in the proportion of debt and equity financing risks. The research method used is purposive sampling. This research's population is non-financial issuers listed on the Indonesia Stock Exchange with quarterly data for the period of 2010-2017. The analysis is performed using panel data with six independent variables and two control variables. The results of this study indicate that profitability and institutional ownership have a negative effect on capital structure. In contrast, market ratios, firm size, and managerial ownership have a positive effect on capital structure. Debt decision making must consider financial and ownership characteristics, especially if there is institutional or government ownership in the company because company characteristics have a significant effect on the company's capital structure.","PeriodicalId":444170,"journal":{"name":"Journal of Economics, Business, and Accountancy | Ventura","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134527307","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 : 2020-07-30DOI: 10.14414/jebav.v23i1.1727
Iqbal Lhutfi, H. Ritchi, Ivan Yudianto
This study aims to determine and analyze the effect of original local government revenue growth and local government capital expenditure growth on fiscal stress in regencies/municipalities in West Java Province. This study employed all 27 regencies/municipalities in West Java Province in 4 (four) periods from 2013 to 2016. This study used multiple regression analysis (panel data) and performed classical assumption tests. Because in the literature, no measurement meets the characteristics of local government budgets in Indonesia. The authors introduced a new approach by applying the fiscal capacity formula to measure fiscal stress. This study's results indicate that the growth in original local government revenue and the growth in local government capital expenditures simultaneously have a positive effect on fiscal stress in regencies/municipalities in West Java Province. The growth of local government revenue partially has a negative effect on fiscal stress in regencies and municipalities in West Java Province. The growth of capital expenditures partially has an insignificant effect on fiscal stress in regencies and municipalities in West Java Province. This research implies that the measurement of fiscal pressure is carried out using the fiscal capacity index as a new alternative that can be used by local governments to design policies.
{"title":"Do the Growth of Original Local Government Revenues and the Growth of Capital Expenditure Affect Fiscal Stress?","authors":"Iqbal Lhutfi, H. Ritchi, Ivan Yudianto","doi":"10.14414/jebav.v23i1.1727","DOIUrl":"https://doi.org/10.14414/jebav.v23i1.1727","url":null,"abstract":"This study aims to determine and analyze the effect of original local government revenue growth and local government capital expenditure growth on fiscal stress in regencies/municipalities in West Java Province. This study employed all 27 regencies/municipalities in West Java Province in 4 (four) periods from 2013 to 2016. This study used multiple regression analysis (panel data) and performed classical assumption tests. Because in the literature, no measurement meets the characteristics of local government budgets in Indonesia. The authors introduced a new approach by applying the fiscal capacity formula to measure fiscal stress. This study's results indicate that the growth in original local government revenue and the growth in local government capital expenditures simultaneously have a positive effect on fiscal stress in regencies/municipalities in West Java Province. The growth of local government revenue partially has a negative effect on fiscal stress in regencies and municipalities in West Java Province. The growth of capital expenditures partially has an insignificant effect on fiscal stress in regencies and municipalities in West Java Province. This research implies that the measurement of fiscal pressure is carried out using the fiscal capacity index as a new alternative that can be used by local governments to design policies.","PeriodicalId":444170,"journal":{"name":"Journal of Economics, Business, and Accountancy | Ventura","volume":"153 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134028077","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 : 2020-03-31DOI: 10.14414/jebav.v22i3.1725
Rahmat Setiawan, E. Pradana
The purpose of this study is to examine the effect of institutional ownership on dividend initiation with newly appointed CEO holding a role as a moderating variable in non-financial companies listed on the Indonesia Stock Exchange. This research used a logistic regression model and Moderated Regression Analysis (MRA). The data were obtained from the public company's Financial Report and Annual Report published in the 2012-2017 period. Dividend initiation is the dependent variable measured using dummy variable, and institutional ownership is the independent variable proxied by the percentage of shares held by institutional investors. Newly appointed CEO is the moderating variable. The result shows that institutional ownership has a significant positive effect on dividend initiation and the newly appointed CEO strengthens the positive effect of institutional ownership on dividend initiation. It is advisable that the companies should improve their corporate governance’s quality by increasing the degree on institutional ownership.
{"title":"Institutional ownership, newly appointed CEO, and dividend initiation: Empirical evidence from Indonesian companies","authors":"Rahmat Setiawan, E. Pradana","doi":"10.14414/jebav.v22i3.1725","DOIUrl":"https://doi.org/10.14414/jebav.v22i3.1725","url":null,"abstract":"The purpose of this study is to examine the effect of institutional ownership on dividend initiation with newly appointed CEO holding a role as a moderating variable in non-financial companies listed on the Indonesia Stock Exchange. This research used a logistic regression model and Moderated Regression Analysis (MRA). The data were obtained from the public company's Financial Report and Annual Report published in the 2012-2017 period. Dividend initiation is the dependent variable measured using dummy variable, and institutional ownership is the independent variable proxied by the percentage of shares held by institutional investors. Newly appointed CEO is the moderating variable. The result shows that institutional ownership has a significant positive effect on dividend initiation and the newly appointed CEO strengthens the positive effect of institutional ownership on dividend initiation. It is advisable that the companies should improve their corporate governance’s quality by increasing the degree on institutional ownership.","PeriodicalId":444170,"journal":{"name":"Journal of Economics, Business, and Accountancy | Ventura","volume":"615 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123208197","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 : 2020-03-31DOI: 10.14414/jebav.v22i3.1810
Marko S. Hermawan, Pamela Abigail, Yanthi Hutagaol Martowidodjo, Valentina Tohang
This study was motivated by one of President Joko Widodo’s projects, which is to build better infrastructure in Indonesia. Tax amnesty is used as a way of receiving undeclared assets expecting that Indonesia revenues will increase. This study focuses on the perception of both tax consultants and taxpayers. The interview was conducted to explore the points of interest as it was being developed. The analysis was done using institutional theory, analysis and discussion on their behavior towards tax amnesty are given based on the result of the research. This research uses interpretivism perspective to examine the meaning created by a human that differentiate human from physical phenomena. The data were collected from secondary data, archival data and complemented with semi-structured interviews. The finding suggests three themes associated with institutionalization of taxpayer compliance, namely rules and regulation, political economy, and social powers. These themes generate pressures on coercive isomorphism, as well as normative isomorphism. The result suggests establishing synergy and a dialectical process between the tax authorities and the taxpayer in conducting coaching, monitoring and fair enforcing of law to support taxpayer compliance.
{"title":"Understanding tax amnesty and tax compliance in indonesia: an institutional approach","authors":"Marko S. Hermawan, Pamela Abigail, Yanthi Hutagaol Martowidodjo, Valentina Tohang","doi":"10.14414/jebav.v22i3.1810","DOIUrl":"https://doi.org/10.14414/jebav.v22i3.1810","url":null,"abstract":"This study was motivated by one of President Joko Widodo’s projects, which is to build better infrastructure in Indonesia. Tax amnesty is used as a way of receiving undeclared assets expecting that Indonesia revenues will increase. This study focuses on the perception of both tax consultants and taxpayers. The interview was conducted to explore the points of interest as it was being developed. The analysis was done using institutional theory, analysis and discussion on their behavior towards tax amnesty are given based on the result of the research. This research uses interpretivism perspective to examine the meaning created by a human that differentiate human from physical phenomena. The data were collected from secondary data, archival data and complemented with semi-structured interviews. The finding suggests three themes associated with institutionalization of taxpayer compliance, namely rules and regulation, political economy, and social powers. These themes generate pressures on coercive isomorphism, as well as normative isomorphism. The result suggests establishing synergy and a dialectical process between the tax authorities and the taxpayer in conducting coaching, monitoring and fair enforcing of law to support taxpayer compliance.","PeriodicalId":444170,"journal":{"name":"Journal of Economics, Business, and Accountancy | Ventura","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133221518","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study aims to provide empirical evidence of the influence of foreign ownership and foreign board of commissioners on tax avoidance. The dependent variable is tax avoidance, measured using an effective tax rate proxy (ETR), and the independent variable is the structure of foreign ownership and foreign board of commissioners. It tested the theory of legitimacy using the sample consisting of 53 non-financial companies listed on the Indonesia Stock Exchange in 2012-2016. The results showed that the structure of foreign ownership has a positive effect on tax avoidance, where the greater the structure of foreign ownership, the higher the company to avoid tax. The results of the study do not support the legitimacy theory, explaining the role of foreign ownership in gaining legitimacy from the public by not doing tax avoidance. Furthermore, this study also proves that the proportion of foreign commissioners does not influence tax avoidance. The implication is that the government can encourage increased foreign ownership in order to optimize tax payment or to minimize tax avoidance.
{"title":"The effect of foreign ownership structure and foreign commissioners' board of tax avoidance","authors":"Eddy Suranta, Pratana Puspa Midiastuty, Hairani Ramayanti Hasibuan","doi":"10.14414/jebav.v22i3.2143","DOIUrl":"https://doi.org/10.14414/jebav.v22i3.2143","url":null,"abstract":"This study aims to provide empirical evidence of the influence of foreign ownership and foreign board of commissioners on tax avoidance. The dependent variable is tax avoidance, measured using an effective tax rate proxy (ETR), and the independent variable is the structure of foreign ownership and foreign board of commissioners. It tested the theory of legitimacy using the sample consisting of 53 non-financial companies listed on the Indonesia Stock Exchange in 2012-2016. The results showed that the structure of foreign ownership has a positive effect on tax avoidance, where the greater the structure of foreign ownership, the higher the company to avoid tax. The results of the study do not support the legitimacy theory, explaining the role of foreign ownership in gaining legitimacy from the public by not doing tax avoidance. Furthermore, this study also proves that the proportion of foreign commissioners does not influence tax avoidance. The implication is that the government can encourage increased foreign ownership in order to optimize tax payment or to minimize tax avoidance.","PeriodicalId":444170,"journal":{"name":"Journal of Economics, Business, and Accountancy | Ventura","volume":"160 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116602061","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 : 2020-03-30DOI: 10.14414/JEBAV.V22I3.1792
D. Triyanto
This study aims to analyze the implementation of fraud pentagon theory, covering pressure, opportunity, rationalization, competence, and arrogance variables on financial statement fraud using the Beneish M-score method for socially responsible companies listed in the SRI-KEHATI index of the Indonesia Stock Exchange in the period 2013-2018. The secondary data were taken from the annual reports and audited financial statements of companies. The sample was selected using a purposive sampling in which 13 SRI-KEHATI index companies as the sample with a four-year research period in 2013-2018, a totally of 78 samples. The data were analyzed using descriptive statistical analysis and logistic regression analysis using IBM SPSS statistical software 25. The results showed financial targets, ineffective monitoring, and the nature of the industry, changes in directors, and the frequency of the appearance of CEO photos simultaneously influencing financial statement fraud. Partially, ineffective monitoring, changes in directors and the frequency of CEO photos on fraudulent financial statements have a negative effect, and the nature of the industry has a positive effect, while financial targets do not affect financial statement fraud. This research can be used as a reference for stakeholders in the company to consider the proportion of independent directors and the ratio of receivables in detecting fraud in a company.
{"title":"Detection of Financial Reporting Fraud: The Case of Socially Responsible Firms","authors":"D. Triyanto","doi":"10.14414/JEBAV.V22I3.1792","DOIUrl":"https://doi.org/10.14414/JEBAV.V22I3.1792","url":null,"abstract":"This study aims to analyze the implementation of fraud pentagon theory, covering pressure, opportunity, rationalization, competence, and arrogance variables on financial statement fraud using the Beneish M-score method for socially responsible companies listed in the SRI-KEHATI index of the Indonesia Stock Exchange in the period 2013-2018. The secondary data were taken from the annual reports and audited financial statements of companies. The sample was selected using a purposive sampling in which 13 SRI-KEHATI index companies as the sample with a four-year research period in 2013-2018, a totally of 78 samples. The data were analyzed using descriptive statistical analysis and logistic regression analysis using IBM SPSS statistical software 25. The results showed financial targets, ineffective monitoring, and the nature of the industry, changes in directors, and the frequency of the appearance of CEO photos simultaneously influencing financial statement fraud. Partially, ineffective monitoring, changes in directors and the frequency of CEO photos on fraudulent financial statements have a negative effect, and the nature of the industry has a positive effect, while financial targets do not affect financial statement fraud. This research can be used as a reference for stakeholders in the company to consider the proportion of independent directors and the ratio of receivables in detecting fraud in a company.","PeriodicalId":444170,"journal":{"name":"Journal of Economics, Business, and Accountancy | Ventura","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123559727","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 : 2020-02-17DOI: 10.14414/jebav.v22i3.1873
Izzuddin Alghifari, R. E. Halim
This study aims to understand the effect of expectancy for character growth (learning, novelty, escapism, enjoyment, social value, audio-visual value, and value for money) on online games towards online gamer loyalty. This quantitative research uses a purposive sampling method with a sample of 375 respondents. The data were processed using the Structural Equation Modeling (SEM) method. The results showed that learning, escapism, audio-visual value, and value for money have a positive effect on expectancy for character growth. However, novelty, enjoyment, and social value do not have an effect on expectancy for character growth. Furthermore, expectancy for character growth has a positive effect on online gamer loyalty. Therefore, game developers need to know the fantasy of gamers, improve the quality of graphics, and provide discounts to increase gamers’ loyalty
{"title":"Factors that influence expectancy for character growth in online games and their influence on online gamer loyalty","authors":"Izzuddin Alghifari, R. E. Halim","doi":"10.14414/jebav.v22i3.1873","DOIUrl":"https://doi.org/10.14414/jebav.v22i3.1873","url":null,"abstract":"This study aims to understand the effect of expectancy for character growth (learning, novelty, escapism, enjoyment, social value, audio-visual value, and value for money) on online games towards online gamer loyalty. This quantitative research uses a purposive sampling method with a sample of 375 respondents. The data were processed using the Structural Equation Modeling (SEM) method. The results showed that learning, escapism, audio-visual value, and value for money have a positive effect on expectancy for character growth. However, novelty, enjoyment, and social value do not have an effect on expectancy for character growth. Furthermore, expectancy for character growth has a positive effect on online gamer loyalty. Therefore, game developers need to know the fantasy of gamers, improve the quality of graphics, and provide discounts to increase gamers’ loyalty","PeriodicalId":444170,"journal":{"name":"Journal of Economics, Business, and Accountancy | Ventura","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115406389","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 : 2020-02-17DOI: 10.14414/jebav.v22i3.1207
Gayo Alfani Allam, Vera Diyanty
This research aims to analyze the determinants of carbon emission disclosure. These determinant factors consist of family ownership, financial slack, social reputation, and industry regulation. The study used 537 observations from 179 samples of public companies in natural resource and manufacturing industries in Indonesia for the year 2012- 2014. The result of this research shows that the average level of carbon emission disclosure is only 6, 25%, which indicates that the awareness about carbon emission issues is still low. The regression result shows that financial slack, social reputation, and industry regulation have a significant positive effect on the carbon emission disclosure level, whereas the family ownership has an insignificant effect on the carbon emission disclosure level. This research can be used as a reference by the regulators and companies for creating regulations and policies to reduce and disclose the companies’ carbon emission in order to achieve the national emission target.
{"title":"Determinants of carbon emission disclosure","authors":"Gayo Alfani Allam, Vera Diyanty","doi":"10.14414/jebav.v22i3.1207","DOIUrl":"https://doi.org/10.14414/jebav.v22i3.1207","url":null,"abstract":"This research aims to analyze the determinants of carbon emission disclosure. These determinant factors consist of family ownership, financial slack, social reputation, and industry regulation. The study used 537 observations from 179 samples of public companies in natural resource and manufacturing industries in Indonesia for the year 2012- 2014. The result of this research shows that the average level of carbon emission disclosure is only 6, 25%, which indicates that the awareness about carbon emission issues is still low. The regression result shows that financial slack, social reputation, and industry regulation have a significant positive effect on the carbon emission disclosure level, whereas the family ownership has an insignificant effect on the carbon emission disclosure level. This research can be used as a reference by the regulators and companies for creating regulations and policies to reduce and disclose the companies’ carbon emission in order to achieve the national emission target.","PeriodicalId":444170,"journal":{"name":"Journal of Economics, Business, and Accountancy | Ventura","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114850576","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 : 2020-02-14DOI: 10.14414/JEBAV.V22I3.1788
Ananda Putra Nindhita Aulia Haqq, Gideon Setyo Budiwitjaksono
A financial statement is a result of financial reporting that describes the results of an entity’s financial performance for a specified period. Financial statements can also cause managers in an entity to commit financial reporting fraud because they want to describe an excellent financial performance. This study aims to test fraud pentagon theory in detecting fraudulent financial reporting. More specifically, this study attempts to test the financial target, financial stability, external pressure, ineffective monitoring, nature of the industry, change in auditor, change in director, CEOs photo frequency, political connection, and company existence against fraudulence in the companies' financial reporting. These companies are classified in the LQ45 index on the Indonesian Stock Exchange (IDX) during the period 2015-2017. It used 78 annual report data taken by a proportional random sampling based on the number of proportions in each sector of the company. The data were analyzed using multiple regression analysis. The results indicate that financial stability and CEO photo frequency can be used to detect fraudulence in financial reporting. However, financial targets, external pressure, ineffective monitoring, nature of the industry, changes in auditor, changes in director, political connection, and company existence cannot be used to detect fraudulence in financial reporting.
{"title":"Fraud Pentagon for Detecting Financial Statement Fraud","authors":"Ananda Putra Nindhita Aulia Haqq, Gideon Setyo Budiwitjaksono","doi":"10.14414/JEBAV.V22I3.1788","DOIUrl":"https://doi.org/10.14414/JEBAV.V22I3.1788","url":null,"abstract":"A financial statement is a result of financial reporting that describes the results of an entity’s financial performance for a specified period. Financial statements can also cause managers in an entity to commit financial reporting fraud because they want to describe an excellent financial performance. This study aims to test fraud pentagon theory in detecting fraudulent financial reporting. More specifically, this study attempts to test the financial target, financial stability, external pressure, ineffective monitoring, nature of the industry, change in auditor, change in director, CEOs photo frequency, political connection, and company existence against fraudulence in the companies' financial reporting. These companies are classified in the LQ45 index on the Indonesian Stock Exchange (IDX) during the period 2015-2017. It used 78 annual report data taken by a proportional random sampling based on the number of proportions in each sector of the company. The data were analyzed using multiple regression analysis. The results indicate that financial stability and CEO photo frequency can be used to detect fraudulence in financial reporting. However, financial targets, external pressure, ineffective monitoring, nature of the industry, changes in auditor, changes in director, political connection, and company existence cannot be used to detect fraudulence in financial reporting.","PeriodicalId":444170,"journal":{"name":"Journal of Economics, Business, and Accountancy | Ventura","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124738683","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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