Accounting Information System (AIS) is very important for Small and Medium Enterprises (SMEs) because it can provide information for the owner in decision making. In line with the result of previous study, which find that AIS alignment is needed because it will affect company performance. This study aims to test the direct relationship and mediating relationship among three contingency variables of AIS alignment on non-financial performance. This study employs questionnaire with 87 SMEs owner in Yogyakarta region as samples. The results show that AIS sophisticated, owner commitment affect non-financial performance, either directly or mediated by AIS alignment. This study implies that AIS is very essential for SMEs to survive in a very competitive environme.Non-financial performance 1 Refers to previous study that found that accounting information system has the same terminology with Management Accounting System (MAS) Management Information System (MIS), accounting information system which is the part of information technology [15,16]. implementation [6]. Second, company needs a large sum of money to make a design, test, and implement IT Lim et al. [7], while the limitation in budget is the main problem faced by SMEs [8]. Third, even though SMEs owner realize that performance measurement is an important activity, however they may not use it properly [9]. The contingency perspective explains that organizational performance is affected by internal factors [10]. In line with the argument, Hussin et al. [11]; Ismail and King [12] explain that SMEs performance is affected by alignment between capacity and IT requirement. Furthermore, Ismail and King [13]; Al-Eqab and Ismail [14] prove that IT alignment is affected by organizational factors such as AIS sophisticated and owner commitment, and situational factor that is external IT expertise [11]. The SMEs need AIS sophisticated to face market competition [3], to facilitate the realization of objectives [17], provide flexibility in developing strategy, especially in facing consumers' demand [18]. Besides that, SMEs also need owner's commitment in implementing the IT; the more committed the owner, the implementation of technology will be easier [19]. The SMEs owner who have commitment will realize that IT is very important for SMEs to survive [20]. In addition to AIS sophisticated and owner commitment, external IT expertise becomes another important factor for SMEs in IT implementation [11]. Human resources limitedness makes external IT expertise is needed for SMEs because assistance from the experts in IT may decrease risk and facilitate and fasten IT implementation in SMEs [20,21].This study aims to test direct relationship between AIS sophisticated, owner commitment, external IT expertise, and non-financial performance, as well as the indirect relationship among the variables mediated by AIS alignment. This study results are important for SMEs owner so that they can plan and select the IT that meet their capacity and requirement. This study employs non-financial perform...
In this study, we investigate the relationship between intellectual capital disclosure and underpricing. We did interviews and gave questionnaires to practitioners and academics to develop intellectual capital disclosure measurement methods (in this case, it is the weighted disclosure index). The analysis result of 189 companies which did initial public offerings in Indonesia during 2000–2014 shows that intellectual capital disclosure affects negatively on underpricing. It indicates that intellectual capital disclosure can reduce asymmetry information between the issuer and the potential investor. In addition, intellectual capital disclosure can assist potential investors in assessing the company’s quality and prospects.
We investigate the determinants of intellectual capital (IC) disclosure in the prospectus of initial public offering (IPO). Going deeper, we also examine the impact of IC disclosure on underpricing. By studying 86 IPOs of Indonesian firms over the period of 2000-2014, we do find that ownership retention and underwriting portion have a positive effect on the extent to which IC is disclosed. Moreover, our results reveal that IC disclosure is negatively correlated with the level of underpricing. In addition, evidence is also found that IC disclosure mediates the link between underwriting portion and underpricing.
This study objective was to examine the effect of corporate governance and the accruals quality on the corporate cash holdings. The research was conducted at manufacturing companies listed on the Indonesian Stock Exchange from 2009 to 2010. The study populations are all of manufacturing companies listed on the Indonesian Stock Exchange. The study samples are 143 companies taken using the purposive sampling method. The study hypothesis was tested using multiple linear regressions. The analysis results showed that: corporate governance positively affects corporate cash holdings; the accruals quality negatively affects corporate cash holdings.
The results of company performance can be determined by one of the internal factors of the company, namely the characteristics possessed by the CEO. Echelon theory explains that vision and strategy choices can be influenced by CEO experience and personality which ultimately affect company performance. The motivation for this study is that in Indonesia it is still rare to use a combination of CEO characteristics variables and financial indicators as factors that can affect financial distress in companies. The aim of this study is to examine the impact of CEO characteristics and financial indicators on financial distress in state-owned companies in Indonesia. This study uses state-owned enterprises (SOEs) listed on the Indonesia Stock Exchange as the research population. The research data was tested using Logistic Regression Analysis. The research findings show that CEO age and sales growth have a significant effect on financial distress. While CEO tenure, CEO educational background, and total liabilities to total assets have no significant effect on financial distress.
Purpose – This study aims to find a financial distress prediction model that is suitable for Indonesian companies.Design/methodology/approach – The sample in this study amounted to 150 data. The research sample was grouped into financial distress and non-financial distress. Research data is sourced from the Indonesia Stock Exchange. Discriminant analysis is used to test data and generate financial distress prediction models for manufacturing companies in Indonesia.Findings – Results show that the financial ratios that contribute to the financial distress prediction model are the ratios of profitability, liquidity, and efficiency.Practical Implications – The resulting model can contribute and as a basis for the development of future studies on relevant, robust, and accurate corporate financial distress early warning systems that will help stakeholders to respond to potential bankruptcies accordingly and on timeOriginality – Research on new models to predict corporate bankruptcy in Indonesia which is a developing country is still rare. Most of the literature still uses the Altman Z-Score model.
This study was aimed to investigate the challenges and impacts of International Financial Reporting Standards (IFRS) adoption and implementation in Indonesia, an emerging country by focusing on extra-financial factors analysis. A series of questionnaires was built up regarding some selected items which have a marginal effect on IFRS adoption and implementation by Indonesian companies, the first part of the questionnaires was designed to gather information relating participants background, the second part of the questionnaire was set to collect participants opinion regarding IFRS adoption and implementation in Indonesia, and the third part of the questionnaire was an open questionnaire to enable the participants to give them suggestion or any additional information they feel can help IFRS adoption and implementation in Indonesia. The findings of this investigation reveal that Indonesia companies have facing several challenges and impacts in their IFRS adoption and implementation such as legal system, taxation system, economy and political ties, accounting education and its infrastructure, and culture structure.To ensure adoption and effective implementation of IFRS, Institute of Indonesia chartered accountants (IAI), Indonesia government, Indonesia accounting body and academic must work together to reform the consistence of accounting standard for better applicability of IFRS in ensuring transparent information environment.
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