The Performance of Banks in Indonesia Based on Capital Perspective (BUKU), a case Study in a period of Decline in Profitability Performance

Akbar, Taufiq

doi:10.31142/afmj/v4i6.01

Cited by 2 publications

(4 citation statements)

References 8 publications

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“…Corporate governance arises to overcome agency problems. The corporate governance function is the supervisory mechanisms with the aim of the management to increase the value for the company (Akbar and Lanjarsih, 2019). Furthermore, the banks inform lower DLLP to decrease perceived risk and increase earnings to attract more external funds.…”

Section: Resultsmentioning

confidence: 99%

“…The moderation of the governance mechanisms on the effect of liquidity on earnings quality Corporate governance arises to overcome agency problemscorporate governance functions as a supervisory mechanism to show its performance to increase value for the company. Several banks inform low DLLP to decrease perceived risk and boost earnings to increase the external funds (Akbar and Lanjarsih, 2019). Governance mechanisms are applied as a control mechanism to detect earnings management.…”

Section: 5mentioning

confidence: 99%

“…Corporate governance arises to overcome agency problems — corporate governance functions as a supervisory mechanism to show its performance to increase value for the company. Several banks inform low DLLP to decrease perceived risk and boost earnings to increase the external funds (Akbar and Lanjarsih, 2019).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

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Earnings quality determinants in pre-corona crisis: another insight from bank core capital categories

Valdiansyah

Murwaningsari

2022

AJAR

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PurposeDiscretionary accruals are earnings quality proxies that illustrate that the greater the value of discretionary accruals, the greater the practice of earnings management and vice versa. High-quality financial reports (especially earnings quality) are expected to help investors and potential investors to make decisions. This study analyses the factors that affect earnings quality, such as pre-managed earnings, liquidity and efficiency. Furthermore, the authors identify the moderating effect of the governance mechanisms proxied by the proportion of independent commissioners in conventional commercial banks listed on the Indonesia Stock Exchange.Design/methodology/approachThis study uses 226 banking data in the pre-corona crisis period 2013 until 2019. The data were analyzed using EViews 10 for hypothesis and MS Excel for a differential test.FindingsThe results show that pre-managed earnings, liquidity and efficiency affect earnings quality. The governance mechanisms can moderate liquidity and efficiency on earnings quality, while pre-managed earnings cannot be moderated. The different bank categories (BUKU) of earnings management mechanisms are shown for each BUKU (BUKU 1, 3 and 4 perform earnings management by increasing earnings, BUKU 2 lowering earnings). Another thing is information on the earnings quality between BUKU 2 with BUKU 3 and BUKU 4 because of differences in capital and bank operating coverage regulations.Research limitations/implicationsFurther research expects to analyze the factors affecting banking earnings quality concerning applying IFRS 9 (PSAK 71) in Indonesia. Future researchers expect to apply mixed methods to verify the financial statement data and provide comprehensive discussion and genuine insight from their study. Future research requires more samples from companies or an international scale (cross country) to obtain maximum results and be generally accepted.Practical implicationsThis study implies that managers should have more control over pre-managed earnings and bank liquidity as manager's incentive to do earnings smoothing. Managers should also pay attention to cost-efficiency and effective implementation of governance mechanisms to maximize earnings quality. This study also implies that policymakers can encourage commercial banks to apply more prudential principles in terms of a reserve for failed loans to minimize earnings management in banking.Originality/valueThe significance of this study revealed in the discussion of the difference test between bank core capital categories (BUKU) and its relation to earnings quality.

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Section: Resultsmentioning

confidence: 99%

Section: 5mentioning

confidence: 99%

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Earnings quality determinants in pre-corona crisis: another insight from bank core capital categories

Valdiansyah

Murwaningsari

2022

AJAR

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“…The agent is the management of the company and the principal is the owner of the company. In this case, the agent is responsible for the implementation of managerial activities in the company that is responsible for its performance to the principal, while the principal is interested in the investment he invests in the company (Akbar, 2019) The Indonesian Institute of Accountants (IAI) (2016: 2) in PSAK 69 Agriculture mentioned that biological assets are live animals and plants. Living creatures or plants undergo a biological transformation as a result of past events or activities that provide benefits for the company in the future.…”

Section: Literature Reviewmentioning

confidence: 99%

Factors Affecting Indonesian Agriculture Companie’s Disclosure of Biological Assets

Mujiani

Rianto

Margiati

2022

Quant. Econ. Manag. Stud.

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This study aims to test the effect of Biological Asset Intensity, Managerial Ownership, and Audit on Biological Asset Disclosure on agricultural sector companies listed on the Indonesia Stock Exchange (IDX) Year 2018-2021. Samples were taken using a purposive sampling method with certain criteria, during the study period. Based on the criteria that have been determined by the data using panel data, a total of 68 data were obtained. The analysis method used in this study was the regression analysis of panel data processed using Eviews 9. The results of this study show that (1) Biological Asset Intensity has a significant positive effect on the disclosure of biological assets. This is because the greater the value of biological assets, the higher the company provides more complete and detailed information to users of financial statements. (2) Managerial Ownership has a significant positive effect on the disclosure of biological assets. This is because managers who have a hand in the company's capital will carry out their duties according to applicable regulations and not only for their own interests but also for the sustainability of the company to remain sustainable in the future. (3) The audit has no negative effect on the disclosure of biological assets. This is because the role of kap is not determined by the characteristics of the Big Four or Non-Big Four levels because currently, the role of auditors is growing, many KAP who are not affiliated with the Big Four also revealed that detailed information according to the needs of users of financial statements and investors when choosing the company they will choose as a place to plant shares.

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The Performance of Banks in Indonesia Based on Capital Perspective (BUKU), a case Study in a period of Decline in Profitability Performance

Cited by 2 publications

References 8 publications

Earnings quality determinants in pre-corona crisis: another insight from bank core capital categories

Earnings quality determinants in pre-corona crisis: another insight from bank core capital categories

Factors Affecting Indonesian Agriculture Companie’s Disclosure of Biological Assets

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