This study investigates the potential factors explaining the inconsistent relationship between profitability and firm value. Specifically, it examines whether dividend policy contributes to the profitability–firm value relationship and determines the form of the moderating variables. We use a unique data set from the Indonesian capital market, with sustainable and responsible investment (SRI)-KEHATI-listed firms from 2010 to 2019. Adopting hierarchy moderating analysis, the results show a positive direct relationship between profitability and firm value. Moreover, the profitability–firm value relationship becomes stronger with a higher dividend policy ratio. We complement this with evidence that the dividend policy plays a role as a pure moderator in more sustainable and responsible firms. A sensitivity battery analysis and the endogeneity concern show consistent results as the baseline model, implying that the model is robust to different conditions. Additional tests revealed that the dividend policy is more prominent in low-leverage enterprises, low-intensity advertising firms, and during the financial service authority’s post-dividend policy regulation phase. The implication of our study is that corporate policy and country regulation play a role as a potential competitive strategy to increase shareholder value for SRI-KEHATI-listed firms.
This study aims to examine the influence of capital structure towards firm value. The sample of this research consists of 101 manufacture companies listed in the Indonesian Stock Exchange during the period 2012-2015. The results of this study indicate that the higher the capital stucture with Debt to Equity Ratio (DER) and Long term Debt to Asset Ratio (LDAR) are indicators of a higher firm value, while lower Long term Debt to Equity Ratio is an indicator of a lower firm value. The study has found a positive correlation between Debt to Equity Ratio (DER) and Long term Debt to Asset Ratio (LDAR) to firm value, and a negative correlation of Long term Debt to Equity Ratio (LDER) to firm value. However, the capital structure with Debt to Asset Ratio (DAR) did not seem to have an influence on the firm value.
The purpose of this study is to investigate the cause factors of non-GAAP earnings management from Fraud Diamond Theory (FDT) perspective. FDT is a theory, which widely used in auditing area to explain the cause factors of fraud in companies. Using four FDT indicators, which are stress, opportunity, rationalization, and capabilities, this research investigates 42 companies from non-banking and non-financing industries during 2010 and 2013. As the results of logistic regression analyses, we find that opportunity and capabilities influence managers to conduct non-GAAP earnings management. On the other hand, stress and rationalization have the different results. The findings show that in Indonesia, opportunity and capabilities are two aspects that should be given a strong attention from Indonesian regulator in order to reduce non-GAAP earnings management.
Family financial management should be done with care and a well-planned budget, as it can enhance family economic conditions and enable them to become more qualified. Households must grasp these management skills, especially housewives who are often in charge of handling family money. In Kubang Puji Village, Pontang District, we discovered the inverse phenomena. Even though many of the locals own agricultural land or are self-employed, their income has been uncertain since Covid19 hit. Furthermore, many locals struggle to manage their family's funds due to a lack of adequate financial management abilities. In this village, the "pocket money" method and the "robbing Peter to pay Paul" phenomenon are common. 30 housewives will be trained on how to manage family finances using an envelope system and a cash book system as part of community engagement activities (PKM). Furthermore, they are taught the significance of managing family finances and establishing priorities. To handle family finances, this program employs lecture methods, discussion, question and answer sessions, and practice with the envelope system and cash book system.
The objectives of the research is to study and to analyze empirically the influence of office channelling on third party deposits and return on assets in Indonesian sharia business unit. Third party deposits and return on assets are used as indicators of sharia business unit performance after opening new branchs through office channelling program. The research uses korelasional method.The number of sharia business units taken as samples in the research cover about 10 sharia business unit in Indonesia which already publicate theirs own financial statements separated from their conventional banks financial statements. The data were analyzed using Ordinary Least Square Method.The result show that, firstly, office channelling statistically significant influence third party deposits, but secondly, office channelling statistically insignificant influence return on assets. This unpredicted result shows that the increase of third party deposits through office channelling program not automatically could increase return on assets. We found that the sharia business unit couldn't yet opfimally response the increase of third party deposits. The increasing of third party deposits were not followed yet by the good atocafions of fund.Keywords : Office channelling, Third party deposits, Return on assets, Sharia business unit, Performance
Agency conflict between principal and agent cause tendency on agent to act efficiently or oportunismly. The purpose of this study is to testing efficient and oportunisme perspective that might be a background to auditor quality choice on manufacturing company in Indonesia. This study used 132 annual report manufacturing company from 44 manufacturing company listed on IDX period 2011-2013 as a sample with purposive sampling method. Variabels represent effieciency perspective are institutional shareholding, foreign shareholding, audit complexity and committee audit characteristic. Whereas opportunism perspective represented by sponsor shareholding, state ownership and audit risk. The result of this research: institutional shareholding, audit complexity, committee audit meeting and committee audit financial literacy have influence toward auditor quality choice. Whereas foreign shareholding, committee audit independent, committee audit size, sponsor shareholding, state ownership and audit risk does not have influence toward audit quality choice. This result shows that efficiency perspective dominate background on auditor quality choice.
This study aims to investigate (1) The Effect of Leverage on Profit management; and (2) The Effect of Sales Growth on Profit management. (3) The effect of leverage on profit management with good corporate governance as a moderating variable; (4) The influence of sales growth on profit management with good corporate governance as a moderating variable. This study focused on consumer goods businesses listed on the Indonesia Stock Exchange between 2016 and 2020. Purposive sampling is employed as the sampling method, with 26 companies serving as the research sample. The panel data regression model with the Common Effect Model (CEM) approach is used in this study for hypothesis testing, and the Moderated Regression Analysis (MRA) model is used for evaluating the moderating variable. The EViews application version 12 is used to analyze the data from both models. The findings indicate that leverage has a strong favorable impact on profit management. While Sales Growth has no discernible impact on Profit management. Meanwhile, while good corporate governance can moderate the impact of leverage on profit management, good corporate governance cannot moderate the impact of sales growth on profit management. This study includes corporate governance variable as this inclusion become originality from currepaper. The implication is of this study is firm’s debt structure and the quality of firm’s governance play essential contribution on how management create better performance.
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