Foreign direct investment (FDI) inflows into developing countries play an important role in the dynamics of economic growth. Meanwhile, financial development (FDV) and corruption have been considered a determinant of FDI. Therefore, this study aims to assess the effect of FDV and corruption on FDI in developing countries. In addition, this study explores the combined impact of FDV and corruption on FDI. Furthermore, the data for 108 developing countries were collected from the World Development Indicators (WDI) of the World Bank from 1993 to 2017. The results showed that FDV has a positive and significant effect on FDI, while corruption does not have a statistically significant impact. This demonstrates that FDV has contributed to the growth of foreign investment and the important sources of financing for developing countries. However, the interaction between FDV and corruption has a negative effect on FDI. This implies that FDV followed by an increase in corruption tends to reduce FDI inflows. These results encourage policymakers to address issues regarding the joint impact of FDV and corruption on FDI in developing countries.
AcknowledgmentThe authors would like to express their gratitude to three anonymous reviewers and seminar participants at Mulawarman University for their insightful comments.
The agent is granted decision-making authority over the company’s operations to achieve the principal’s objectives (Jensen & Meckling, 1976). The economic crisis during the pandemic compelled managers to exert additional effort, such as earnings management. They aimed to achieve the desired profit and serve the principal’s best interests. Board structure elements such as board size, independence, women membership, and chief executive officer (CEO) duality correlate with board governance. The elements improve the quality of financial reports and reduce earnings management practices. Therefore, this study aimed to investigate the board structure’s influence on the earnings management of Indonesian firms before and during the pandemic. Covering a sample of 539 firms recorded on the Indonesia Stock Exchange (IDX) in Indonesia from 2019Q1 to 2020Q4, panel data regression is utilized to test the hypothesis. This study finds that only board size significantly impacted earnings management. The board size is less effective in overcoming earnings management in the normal period. However, the COVID-19 pandemic encouraged the board of directors to increase management monitoring. This means more board directors can reduce earning management effectively during the pandemic. It highlighted the significance of many board directors in reducing earnings management during the pandemic.
This study aimed to investigate the effect of board structure on voluntary environmental and energy disclosure of listed firms in Indonesia. The study employed a one-step and two-step system generalized method of moments (GMM) using an unbalanced data panel of 356 non-finance companies. The findings showed that board size positively and significantly affected environmental and energy disclosure. Moreover, board independence negatively and significantly influenced environmental and energy disclosure, while women on board and CEO duality have an insignificant impact. The strategic implication showed that adding more members to the board of directors boosted voluntary environmental and energy disclosure.
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