Asset Intensity Research Articles

IFRS 6 Accounting Options and the Value Relevance of Oil & Gas Firms in Nigeria

The oil and gas industry plays a pivotal role in Nigeria’s economy, contributing significantly to the country’s economy. However, challenges such as oil price volatility, operational inefficiencies, environmental risks, and corruption undermine its potential. This study examines the relationship between IFRS 6 accounting options and the value relevance of Nigerian oil and gas firms, focusing on key financial metrics such as Tobin's Q, enterprise value, earnings per share, and price-to-book value. Using an ex post facto research design and inferential statistical techniques, data from listed oil and gas firms spanning 2012 to 2022 were analyzed. The findings reveal inefficiencies in translating exploration investments into firm value, with fixed asset intensity, cash investments, and intangible assets showing insignificant negative impacts on market valuation and equity returns. It was concluded that the accounting flexibility under IFRS 6 contributes to inconsistencies in financial reporting and investor skepticism. Recommendations include refining IFRS 6 guidelines to standardize the reporting of exploration and evaluation expenditures, enhancing transparency, and reducing managerial discretion. Additionally, professional accountants are enjoined to ensure faithful representation of financial information to bridge the gap between accounting data and market perceptions.

Pengaruh Earning Opacity, Kepemilikan Institusional, Intensitas Aset Tetap dan Inventory Intensity Terhadap Penghindaran Pajak

This study aims to determine and analyze the influence of earning opacity, institutional ownership, fixed asset intensity, and inventory intensity on tax avoidance. This type of research is a quantitative research, using secondary data that applies Microsoft Excel and E-Views 12. The population in this study is consumer cyclicals sector companies listed on the Indonesia Stock Exchange for the period 2018 to 2023. The data collection technique in this study is a purposive sampling technique with a total of 151 populations, so that the data samples obtained in this study are 15 samples. The results of the study show that earning opacity, institutional ownership, fixed asset intensity, and inventory intensity simultaneously affect tax avoidance. Then, the results of the study partially stated that earning opacity and fixed asset intensity had a negative influence on tax avoidance. Meanwhile, institutional ownership and inventory intensity have no effect on tax avoidance.

An Exposition of Transfer Pricing, Fixed Asset Intensity and Capital Intensity on Tax Avoidance

In Indonesia, efforts to maximize tax revenue face obstacles, especially related to the difference in interests between the government and the business world. This difference triggers tax avoidance by taxpayers. The researcher made this scientific article, aiming to examine and analyze the influence of transfer pricing, fixed asset intensity and capital intensity on tax avoidance. This study uses a qualitative descriptive method to study a phenomenon by describing the data obtained from literature studies. Literature studies with 39 journals in the 2019-2024 time frame to ensure relevant and up-to-date information and phenomena related to research topics. The results of this study show that the variables of transfer pricing, fixed asset intensity, and capital intensity have an effect on tax avoidance.

Pengaruh Faktor Internal Perusahaan Terhadap Pengungkapan Aset Biologis Pada Perusahaan Agrikultur

The purpose of this study is to analyze the effect of biological asset intensity, profitability, company size, and ownership concentration on biological asset disclosure based on PSAK 241 in agricultural companies listed on the IDX, with 18 agricultural companies for the period 2018-2022 obtained through purposive sampling techniques. The findings of the study indicate a significant positive effect between biological asset intensity and ownership concentration on biological asset disclosure, which means that the company's commitment to disclosing biological assets in its annual report will increase along with the number of biological assets owned and ownership concentration.

Scaling Up Tax Strategies: Investigating the Moderating Effect of Leverage on Firm Size, Asset Intensity, and Tax Management

This study examines the relationships between firm size, asset intensity, leverage, and tax management in Indonesian manufacturing companies. Utilizing a panel data approach from 2020 to 2022, the research finds that firm size and asset intensity significantly influence tax management practices, highlighting larger firms' advantages in implementing effective tax strategies. Conversely, leverage does not significantly mediate the relationship between firm size or asset intensity and tax management. These findings suggest that while asset intensity provides firms with opportunities to optimize tax deductions, the impact of leverage on tax management strategies is limited. The research underscores the importance of understanding these dynamics for business leaders aiming to enhance tax efficiency and compliance. Additionally, the study provides practical recommendations for firms and policymakers to improve tax management practices in the manufacturing sector. Overall, the research contributes valuable insights into the factors affecting corporate tax strategies in Indonesia.

Dissecting environmental efficiency: The role of technology adoption and usage

How could firms best reduce their environmental impact? Should they change technology? Or could they do better with what they already have? This paper shows that one size does not fit all. We analyse a sample of polluting production plants (i.e. installations) regulated under the EU Emission Trading System. We employ a mixture model estimation to dissect environmental efficiency into a technology adoption component (what type of technology is used) and a technology usage component (how a technology is used). Our installation-level analysis shows that the share of installations adopting frontier technologies is about 21%. We also find that the average environmental efficiency gains that installations could reach by improving technology adoption and technology usage are 75% and 80% respectively. The analysis of balance-sheet data on parent companies reveals that better environmental technologies are adopted by larger, listed, multi-installation and international companies, while older firms and firms with higher intangible assets intensity more commonly show improved technology usage.

Business Strategy for Minimizing Taxes

This research aims to find out whether the prospector and defender business strategy with 4 proxies, consisting of production & distribution capabilities, company growth level, marketing and fixed asset intensity, is able to minimize taxes owed. From the 71 population of consumer goods industry companies listed on the Indonesia Stock Exchange (BEI) in the 2018-2022 period, a sample of 15 companies was obtained. with 75 observations. This research uses a descriptive method with a quantitative approach. The analytical method used is panel data regression analysis. The research results show that partially each proxy has no effect in minimizing taxes. Meanwhile, simultaneously a business strategy consisting of 4 proxies has an influence in minimizing the tax owed. The research results show that both the defender and prospector strategies implemented by the Company both have the potential to minimize taxes owed.

Parametric multi-level modeling of Lean Six Sigma

Lean Six Sigma is a methodology that combines Lean manufacturing and Six Sigma into a single framework for process improvement. This combination merges their tools and techniques to overcome their deficiencies while achieving bottom-line improvement. However, existing literature emphasizes general LSS implementation with very little work on modeling the interaction between Leanness and Six Sigma. This work developed a multi-level model containing leanness and Six Sigma levels to generalize LSS implementation. Three hierarchical levels—Six Sigma (level 3), leanness (level 2), and a fattening level (level 1—Sigma quality level) are defined for two models (parametrized and non-parametrized). Aggregate measures (process efficiency, asset intensity, production time, etc.) are considered at levels 2 and 3 to achieve the desired optimization goal at that level. For testing, three process measures [asset intensity (AI), planned stoppages (PS), wastes and rework (WR)] from the manufacturing data of a global brand spanning 18 months were analyzed. The maximum log-likelihood method was used to estimate the model parameters and they converged to 85.2%, 11.2%, and 8.87% for AI, PS, and WR respectively, with a strong correlation between AI and PS. A metaheuristic algorithm was extended to solve both models. The obtained process yield (0.111111 and 0.4132471), defects per million opportunities (DPMO) (12,426 and 18,046), and sigma level (3.6 and 3.74) for the parametrized and non-parametrized models respectively indicated optimal model performance and a need for the strategic use of LSS tools in improving the production output. Also, further reduction in wastes, stoppages, and downtime was observed upon tuning the parametric variables. This model provides a mathematical approach to analyzing LSS implementation and provides a basis for future adaptation to any organization.

Crowd-sourced CEO approval and turnover

This study examines how employee approval ratings of CEOs improve the predictability of turnover. Using the crowd-sourced reviews from Glassdoor, we find that CEOs with high employee approval are less likely to be removed, even after a poor performance. The decrease in turnover–performance sensitivity is particularly strong when the relative importance of employees is greater in industries of higher intangible asset intensity and in states with strong employee protection. Firms with higher CEO approval subsequently show improved performance and lowered firm-specific risk. We highlight the role of employees as a key stakeholder in predicting CEO turnover, consistent with the value creation view of stakeholder capitalism.

PENGARUH RISIKO PERUSAHAAN, INTENSITAS ASET TETAP, UKURAN PERUSAHAAN, PERTUMBUHAN PENJUALAN, DAN KOMITE AUDIT TERHADAP TAX AVOIDANCE

This research aims to test whether there is an influence of company risk, fixed asset intensity, company size, sales growth, and audit committee on tax avoidance. The population in this research is property and real estate companies listed on the Indonesia Stock Exchange in 2018 - 2022, totaling 92 companies. The number of samples in this study was 57 samples. The sampling technique uses a purposive sampling method. The research method used is quantitative with data sources in the form of secondary data. The data analysis method uses multiple linear regression analysis with SPSS version 25. The results of this research state that company risk has a negative effect on tax avoidance; fixed asset intensity, company size, and sales growth have no effect on tax avoidance; and the audit committee has a positive effect on tax avoidance

The Influence of Profitability, Leverage, Company Size, and Fixed Asset Intensity on Tax Avoidance in the Consumer Goods Industry

This research aims to analyze the influence of profitability, leverage, and asset intensity on tax avoidance. This research includes quantitative research using secondary data obtained from company annual reports. The population of this research is companies in the consumer goods and industrial sector listed on the Indonesia Stock Exchange (BEI) in 2020-2022. A total of 103 samples were selected using the purposive sampling method and analyzed using multiple linear regression. The research results show that profitability, leverage, and company size affect tax avoidance, while fixed asset intensity does not affect tax avoidance. The limitations of this research are still limited to the goods industry and consumption sectors.

Analysis of Internal Factors Affecting Tax Avoidance in the 4.0 Era in Digital Technology Sector

This study aims to analyze internal factors that influence tax avoidance in the annual financial reports of digital technology sector companies listed on the Indonesia Stock Exchange for the 2018-2022 research period in the economy 4.0 era. The independent variables in this study are profitability, fixed asset intensity, and leverage. The approach used in this study is a secondary data quantitative approach. The population of the study was 73 digital technology sector companies listed on the Indonesia Stock Exchange in the 2018-2022 research period, and the sample was taken using the purposive sampling method with a total of 25 companies so that the number of observations in the study was 125 observation data. The data analysis technique uses panel data regression analysis using statistical calculations. The results of the research analysis prove that profitability and leverage have a partial and positive and negative influence on tax avoidance. In contrast, fixed asset intensity does not have a partial and negative influence on tax avoidance. The managerial implications are that the implementation of digital technology can help create a more transparent and accountable system, and the use of data-based audit technology can detect anomalies and potential tax avoidance earlier.

Pengaruh Intensitas Aset Biologis, Profitabilitas, Ukuran Perusahaan, dan Kepemilikan Manajerial terhadap Pengungkapan Aset Biologis

This study aims to examine the influence of the intensity of biological assets, profitability, company size, and managerial ownership on the disclosure of biological assets in agricultural companies listed on the Indonesia Stock Exchange (IDX) for the period 2016-2021. Based on predetermined criteria using a purposive sampling technique, 42 companies were selected from a population of 130 companies. The results of the study indicate that the intensity of biological assets affects the disclosure of biological assets, but profitability, company size, and managerial ownership do not affect the disclosure of biological assets. Furthermore, the intensity of biological assets, profitability, company size, and managerial ownership did not affect the disclosure of biological assets before the implementation of PSAK 69, according to additional investigations. Then, after the implementation of PSAK 69, the disclosure of biological assets was influenced by the intensity of biological assets and profitability, but not by company size and managerial ownership. The limitation of this study is that it focuses only on four independent variables: the intensity of biological assets, profitability, company size, and managerial ownership. The results of this study indicate that there are additional factors that may influence the disclosure of biological assets.

Supply chain disruptions in COVID-19 and market performances of firms: a study in the Indian automobile sector

PurposeThis study aims to examine empirically the nature of supply chain disruptions caused by the COVID-19 pandemic, particularly on the Indian automobile sector.Design/methodology/approachThe authors evaluate the stock market performance of individual company and its quantitative relationship to certain variables related to company’s supply chain.FindingsThe authors analysed the company’s operations considering several ratios like asset intensity, company size, labour intensity and inventory to revenue.Research limitations/implicationsThe results of analysis can help the companies to understand how disruptions in the supply chain can affect the company’s operations and how it is perceived by the investors in the stock market.Practical implicationsAlso, investors are benefitted, as they can understand how different companies with different operational characteristics react to global disruptions in supply chains, which in turn would help them to find better investment opportunities.Originality/valueAlthough there is some literature available on the qualitative as well as quantitative analysis, the authors go further to analyse the impact of supply chain disruption on the stocks of the automobile sector.

DIGITAL TRANSFORMATION AND TAX AVOIDANCE OF THE INDONESIAN BASIC MATERIALS AND ENERGY SECTOR

This study was conducted to obtain empirical evidence regarding the effect of profitability, digital transformation, CFO co-optation, fixed asset intensity, institutional ownership, and independent commissioners on tax avoidance in companies included in the basic material sector category listed on the Indonesia Stock Exchange in 2018-2021. The sampling technique in this study used the purposive sampling method so that as many as 30 companies were obtained. The data analysis method uses multiple regression analysis. The results of this study show that CFO co-optation and intensity of fixed assets positively affect tax avoidance. Meanwhile, digital transformation does not affect tax avoidance. Furthermore, this study discusses research results in theoretical and practical domains.

Pengaruh Kinerja Keuangan, Intensitas Aset Tetap, Dan Ukuran Perusahaan Terhadap Agresivitas Pajak

This study aims to empirically determine the influence of financial performance, fixed asset intensity, and company size on tax aggressiveness in the consumer non-cyclicals manufacturing sector listed on the Indonesia Stock Exchange from 2018 to 2022. The sample selection used purposive sampling, resulting in 21 consumer non-cyclicals companies listed on the Indonesia Stock Exchange during the 2018-2022 period. The data analysis employed multiple regression analysis with data processing using Eviews 12SV software. The results show that financial performance has a significant partial influence on tax aggressiveness, while fixed asset intensity and company size do not have a significant influence. However, when considered together, financial performance, fixed asset intensity, and company size collectively influence tax aggressiveness.

DYNAMICS OF BIOLOGICAL ASSET DISCLOSURE IN AGRICULTURAL COMPANIES IN INDONESIA

In the context of global business dynamics and transparency demands, disclosing biological assets in financial statements becomes crucial for companies to navigate the complexities of evaluating and adapting to international accounting standards. This research aims to analyze the factors influencing the disclosure of biological assets. The research methodology employed is descriptive and verificative, focusing on agricultural companies listed on the Indonesia Stock Exchange. The population comprises annual reports from agricultural companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2021, totaling 41 companies multiplied by the years, resulting in 164 data points. The sampling technique used is purposive sampling, with a sample size of 27 companies from 2018 to 2021, amounting to 108 observation data points. The data analysis technique involves classical assumption tests, panel data regression, determination coefficient tests, and hypothesis testing using Eviews software. The results indicate that, partially, the intensity of biological assets and managerial ownership significantly positively affect the disclosure of biological assets, while profitability has a significant negative impact on the disclosure of biological assets.. Keywords: Intensity of biological assets, managerial ownership, profitability, disclosure of biological assets

PENGARUH SALES GROWTH, LEVERAGE, DAN INTENSITAS ASET TETAP TERHADAP TAX AVOIDANCE

This research hopes to be able to show the influence and relationship that occurs on sales growth, leverage, and the intensity of fixed assets on tax avoidance during 2015 to 2019 in manufacturing companies listed in the Indonesia Stock Exchange. This survey used a sample of 64 companies which were selected based on techniqueof purposive sampling and the research method was quantitative. The data processed in this research was carried out with a program or software using SPSS (Statistical Program for Social Science) version 26 and analyzed recording to multiple linear regression analysis. Data can be obtained through financial statement on the IDX official website. The result explains that the sales growth and leverage variables have a negative but significant effect while, the asset intensity variable has no significant effect on tax avoidance. The implications and suggestions needed are that an increase in sales growth and leverage is needed for decisions made on activities from tax avoidance.

Impact of asset intensity and other energy-associated CO2 emissions drivers in the Nigerian manufacturing sector: A firm-level decomposition (LMDI) analysis

The study considered the impacts of asset intensity and other energy-associated CO2 emissions drivers in the Nigerian manufacturing sector from 2010 to 2020. The Logarithmic Mean Divisia Index (LMDI) was used to explore the driving factors of CO2 emissions: asset intensity, economic output, economic structure, energy intensity, energy mix, and carbon emission coefficient. From the results, the CO2 emissions decreased from 7.49 MtCO2 in 2010 to 3.22 MtCO2 in 2020. Furthermore, among the emissions drivers, the energy mix effect increased CO2 emissions by 0.50 MtCO2, followed by asset intensity (0.29 MtCO2) and economic structure (0.11 MtCO2). The energy intensity, economic output, and emission coefficient effects inhibited CO2 emissions by −4.64 MtCO2, −0.42 MtCO2, and −0.01 MtCO2 respectively. The contribution of the subsectors' emissions shows that the Other Manufacturing subsector emitted 14.62 MtCO2, while Chemical and Pharmaceutical emitted 14.61 MtCO2, Food, Beverages and Tobacco, 7.55 MtCO2, Textile, Apparel, and Footwear, 6.63 MtCO2, Basic Metal and Iron and Steel, 5.15 MtCO2, Plastic and Rubber Products, 2.99 MtCO2, Agro-Allied, 2.71 MtCO2, Oil Refining, 2.01 MtCO2, and Pulp and Paper Products, 1.76 MtCO2. The results indicated that the effect of asset intensity on emission growth is significant and should not be overlooked. Likewise, the effects of CO2 emission drivers were found to impact differently across the subsectors. The latter suggests that firm-specific indicators in the respective subsectors should be one of the primacies during policy development since the driving factors of CO2 emissions fluctuate across the subsectors.

The Influence of Asset Intensity, Employee Intensity, and Intellectual Capital on the Competitiveness of Manufacturing Industries: Cost Stickiness as a Mediating Variable

The low competitiveness of the Indonesian manufacturing industry is a current phenomenon causing a decline in Indonesia's manufacturing industry competitiveness ranking below that of Singapore, Malaysia, and Thailand. This indicates that Indonesia needs to enhance four factors: national economic performance, policy efficiency, business efficiency, and infrastructure. The purpose of this research is to examine the influence of factors affecting competitiveness. The data analysis technique used in this research is multiple linear regression analysis. The population in this study is companies listed on the Indonesian stock exchange. Data collection used purposive sampling method, with a total sample size of 212, with a sampling quota of 109 companies that have both sales increases and decreases annually. In this study, there are independent variables such as Asset Intensity, Employee Intensity, and Intellectual Capital, dependent variable Competitiveness, and mediating variable Cost Stickiness. The results of the research show that the variables of employee intensity and intellectual capital have an influence in this study, whereas asset intensity does not have an influence in this study. Additionally, Cost Stickiness has not been able to mediate the influence on Asset Intensity, Employee Intensity, and Intellectual Capital.