Business Decisions Research Articles

Based on Gated Recurrent network analysis of advanced manufacturing cluster and unified large market to promote regional economic development

This study evaluates the catalytic effects of advanced manufacturing industry clusters and unified large markets on regional economic development from a computer science perspective, revealing their underlying mechanisms. It employs a Gated Recurrent Network (GRN) model optimized with Gradient Boosting Decision Tree (GBDT) technology to conduct empirical analysis through comprehensive data collection and analysis. The primary objectives are to assess these catalytic effects, highlight the importance of innovation and environmental indicators, determine the contribution levels of various factors, and test the computational fit and predictive accuracy of the model. Key findings indicate that the GBDT-GRN model demonstrates a significant improvement in data computation accuracy, ranging from 20% to 52%, and an increase in response time by 23% to 52%. The model achieves a computational fit of 92% to 99% when analyzing regional economic development. The proposed GBDT-GRN model is highly accurate and reliable in evaluating catalytic effects, providing strong support for policy-making and business decision-making. Innovation and environmental indicators play a crucial role, with varying contributions from different factors. This study offers an effective solution for sequence data prediction problems, supports policy-making and business decisions, and points to promising directions for future research.

Conceptual Aspects of Accounting Transformation in the Context of the Imperatives of Sustainable Development

In the modern world, the tendency to increase the importance of the principles of sustainable development is becoming more and more stable. The growing public awareness of the need to achieve sustainable development goals causes increased pressure on businesses to disclose information about their impact on society and the environment. This circumstance increases the need for companies to be accountable and expand their accounting and analytical work. This contributes to the objective expansion of the tasks of the information and analytical support systems in companies, including the accounting system. The purpose of this study is to assess the impact of the increasing need for general accountability on the development of accounting systems, thus emphasizing the need to take into account the sustainable development of the company. This study considers accountability as one of the most important tasks of transparent business functioning as well as a necessary condition for achieving sustainable development goals. The article proves the thesis that accounting methods should be developed to form, summarize, and analyze information about initiatives, processes, and the use of resources to increase the sustainability of the company’s development and to meet the requirements of key stakeholder groups, including in the direction of the impact of business decisions on society and the environment.

Pengaruh Persepsi Kepercayaan dan Persepsi Keamanan Terhadap Pelaku Usaha Pada Penggunaan QRIS Sebagai Alat Pembayaran Digital Dalam Persepektif Bisnis Syariah

Along with the development of financial technology, QRIS (Quick Response Code Indonesian Standard) has become a digital payment tool that is increasingly popular in Indonesia, including in Bandar Lampung. However, the adoption of QRIS in the context of sharia business faces challenges related to the perception of trust and security from business actors. This research aims to identify the influence of perceived trust and perceived security on business actors' decisions to use QRIS and its implications from a sharia business perspective. The formulation of the problem in this research is (1) How does the perception of trust influence business actors in using QRIS? (2) How does the perception of security affect business actors in using QRIS? (3) How do perceptions of trust and perceptions of security influence business actors' decisions, especially in sharia business?The aim of this research is to find out how perceptions of trust and perceptions of security influence the decisions of business actors, especially in Sharia Business. This research uses quantitative methods with a survey approach to collect data from business actors in Bandar Lampung. Data was collected through questionnaires that measured perceptions of trust, perceptions of security, and the decision to use QRIS. Data analysis was carried out using multiple linear regression to identify the influence of each variable as well as the interaction between perceived trust and perceived security.The research results show that perceived trust has a significant influence on business actors' decisions to use QRIS, with the higher the trust in QRIS, the greater the possibility of using this technology. Perception of security also has a significant influence; Business actors are more likely to adopt QRIS if they believe this system can protect data and transactions well. These two factors together influence business decisions, emphasizing the importance of improving security features and improving communications to increase QRIS adoption. In the context of sharia business, trust and security are very important, and business actors need assurance that QRIS complies with sharia principles and offers adequate data protection. QRIS providers are advised to clarify sharia compliance and security features to increase adoption among sharia business actors.

Corporate spin-offs and stock performance: a comparative study of pure and composite schemes

PurposeSeveral studies have examined the relationship between spin-off announcements and stock performance. However, a comparison of the announcement effect of different schemes of spin-offs remains relatively underexplored in the literature. This study aims to find the differential impact of pure scheme and composite schemes of spin-offs on parent company stock performance. A pure scheme includes only the separation of business into independent companies, while a composite scheme includes a simultaneous merger of one of the companies with another company along with separation.Design/methodology/approachA total of 109 pure and 51 composite spin-off announcements made by Indian listed companies from 2010 to 2023 are examined using event study methodology. The cross-sectional t-test is used to measure the significance of abnormal returns. The t-test for two sample means (right-tailed) is incorporated to test the significance of variations in the stock returns of pure and composite schemes of spin-off announcements. Cross-sectional regression is also done to evaluate the impact of the type of scheme on the spin-off return.FindingsThe study found a cumulative average abnormal return of −1.06% for the pure spin-off and 8.27% for the composite spin-off over a 41-day event window. The univariate analysis revealed that the composite scheme generates a significantly higher cumulative average abnormal return than the pure scheme. Regression analysis also confirmed that the composite scheme significantly positively impacts the stock return. It can be concluded that investors favour the composite scheme, expecting that it will deliver a better strategic fit and generate synergy.Originality/valueThis paper makes a valuable contribution to the existing literature on corporate spin-offs. The study by analysing and comparing how the spin-off and merger combination differently affects the stock performance, helps the investor who wants to capitalize on the market imperfections and the managers to make complex business decisions.

Juridical Review of the Phrase "Unlawful" in Decisions on Corruption Crimes in State-Owned Legal Entities

In several court decisions in cases of criminal acts of corruption in State-Owned Enterprises (SOE), the phrase "against the law" is in Article 2 paragraph 1 of Law Number 31 of 1999 concerning the Eradication of Corruption Crimes as amended based on Law Number 20 2001 concerning Amendments to Law Number 31 of 1999 concerning the Eradication of Corruption Crimes (Anti Corruption Act) is interpreted broadly by referring to the explanation of these regulations. Because it relates to an offense, the phrase "against the law" should be interpreted by taking into account the principle of legality, the principle of nullum delictum nulla poena sine previa lege poenali. The use of a broad interpretation of the phrase "against the law" results in unclear differences between unlawful acts in the context of civil law and (onrechtmatige daad) and unlawful acts in the context of criminal law (wederrechtelijkheid). This results in the risk of criminalization of SOE officials, giving rise to fear in making business decisions. The formulation of the problem in this research is how to interpret the phrase "against the law" in article 2 paragraph (1) of the Corruption Law when it is related to cases of criminal acts of corruption in SOE and what is the judge's interpretation of the phrase "against the law" in decisions court for criminal acts of corruption in SOE. The research method used is a research method with a normative juridical approach. The results of the research show that the phrase "against the law" is interpreted broadly in the explanation of article 2 paragraph (1) of the Corruption Law, and judges in several corruption crime decisions interpreted the phrase "against the law" broadly, resulting in violations of the Standard Operating Procedure, Work Plan and The Company's Articles and other internal company regulations are interpreted as unlawful acts that can be considered a criminal act of corruption.

The importance of transportation in the Slovakia-Vietnam business decisions about the importing or exporting of goods

Globalization and geographic fragmentation of global manufacturing processes have characterized the expansion of international trade. As a result, supply chains have grown longer and more complex, making transportation a key factor in business decisions about the export or import of goods. By analysing the export and import of merchandise between Slovakia and Vietnam, this paper aims to determine the best mode of transportation in terms of transport modalities. To put it another way, it uses a case study, LPI index and results of primary research to identify qualitative transport indicators when the companies import or export goods from Vietnam to Slovakia. We also focused on examining the macroeconomics factors - agreements between European Union (Slovakia as a member of the EU) and Vietnam, which affect the international trade.

La Maison Des Comptables: A Tax Research, Data Management, and Data Visualization Case

ABSTRACT This teaching case integrates the tax and accounting information systems curricula to help students apply research-based outcomes to critical business processes. The setting involves sales and excise tax compliance for out-of-state alcohol shipments, a complex context given the variation between state laws and nuances in the application of general tax rules created by the 21st amendment. The various case components require students to research state tax law, employ data management techniques to apply those laws to a large dataset, and create data visualizations to aid managers with business decision-making. Components of the case can be implemented concurrently or sequentially across multiple courses in the accounting curriculum or as a stand-alone case in a single course. Requiring students to identify and apply tax law across multiple courses helps students see through individual course silos and understand how various accounting disciplines are interconnected. JEL Classifications: M49; M41.

Big Data and Analytical Strategies for Cloud ERP Systems with Business Simulation

In the changing landscape of the business world, the rapid pace of change has led to an increasing demand for innovative approaches to problem-solving and optimization. With the ongoing advancement of ERP (Enterprise Resource Planning) systems, which now incorporate predictive analytics, cloud computing, and business analysis through simulations, businesses have new opportunities to enhance their operations. This paper explores a business analysis framework within the context of cloud ERP systems using test data of one company as a case study. Such a business-oriented approach, driven by the adoption of innovative practices, empowers companies to adapt swiftly to the changing dynamics of the market. This paper primarily offers insights into the possibilities unlocked by ERP systems using predictive analytics and business analysis via simulations. These insights encompass a combination of various factors that impact business operations, such as pricing strategies, market segmentation, resource allocation, and other critical components. Furthermore, leveraging a myriad of today's tools, this research demonstrates that after constructing a data model, operations like classification and time series forecasting can be executed on the dataset, all of which significantly influence the final business decisions. This research seeks to provide a broader perspective on problem-solving within the context of ERP systems and how they enable data-driven decision-making for enhanced business performance.

Role of Data Analytics in Business Decision Making

Data analytics plays a pivotal role in modern business decision-making by enabling organizations to convert raw data into valuable insights. Through techniques such as data mining, predictive analytics, and machine learning, businesses can identify patterns, forecast trends, and make evidence-based decisions. This research explores the impact of data analytics on enhancing operational efficiency, improving customer engagement, and gaining competitive advantages. The study also highlights the importance of data-driven strategies in reducing risks and optimizing resources. Ultimately, it underscores how data analytics empowers businesses to make informed decisions in an increasingly data-centric environment.

Advancements in artificial intelligence for omnichannel marketing and customer service: Enhancing predictive analytics, automation, and operational efficiency

Gone are the days of impersonal customer service and generic marketing. Artificial intelligence (AI) is changing how businesses interact with customers, making interactions personalized and smooth across every platform. This transformation is powered by AI's capability to predict what customers want, automate routine tasks, and analyze large volumes of data. The Predictive Power of AI examines customer data to predict their preferences. Imagine receiving targeted ads and product recommendations that seem tailored exactly to your preferences! This personalized marketing approach enhances engagement and boosts sales significantly. AI-powered 24/7 chatbots provide instant customer support, eliminating the need for waiting on hold. They handle common inquiries and offer real-time assistance, continuously improving their ability to understand natural language and provide increasingly accurate help with each interaction. AI provides efficiency boost by automating repetitive tasks, allowing human teams to dedicate more time to cultivating relationships with customers, this includes qualifying leads, building targeted email campaigns, and analyzing data to inform business decisions, the outcome? More efficient operations and a happier team. It is imperative for businesses to understand customer sentiments and integration of AI analyzes customer interactions across various channels to assess their emotions and attitudes. This process, known as "sentiment analysis," enables businesses to detect dissatisfaction early, manage online brand perception, and gather valuable insights to enhance products and refine marketing strategies. There are also concerns about Ethical considerations, as AI becomes more integrated, businesses must prioritize customer privacy, eliminate bias in algorithms, and maintain a human touch to build genuine relationships. The future of AI and its possibilities are limitless! Natural Language Processing (NLP) advancements will lead to chatbots that sound and act human, while the integration of AI with virtual reality (VR) and augmented reality (AR) could create immersive and personalized experiences. In summary, AI is not here to replace humans; it is here to collaborate as your customer experience partner.

Supply chain digitization and corporate maturity mismatch: Evidence from a quasi-natural experiment

This paper examines the impact of supply chain digitization on corporate maturity mismatch by exploiting a quasi-natural experiment in China. We find that the digital transformation of supply chain effectively reduces corporate maturity mismatch, with mitigating information asymmetry and optimizing business decisions being the primary mechanisms. The effect is more significant when firms are facing more severe financing constraints and are in the downstream of the supply chain. Overall, this study contributes to the existing literature on corporate debt structure and the digital supply chain practices.

Enhancing market analysis using artificial intelligence for strategic business decision-making

Enhancing market analysis using artificial intelligence for strategic business decision-making

The business case for sustainability: six takes on a cultural artefact

ABSTRACT The business case as the prime mover of business decision-making retains an iron grip on the public imagination and the business school curriculum. Recent studies suggest its influence may be exaggerated, and that its depiction as totalising is somewhat cartoonish. We survey the role and effects of the business case in corporate sustainability efforts. Rather than examining its validity or correctness, we approach the business case as a commonly employed cultural artefact. We argue that the business case is neither sufficient nor necessary for sustainable innovation, and examine how it operates as a fixation and impediment, as well as occasional enabler. We conclude by laying out paths for sustainability champions to innovate with and beyond the business case.

The High Cost of Raising Provincial Tax Revenues Has Gotten Even Higher

Households and firms’ responses to higher tax rates alter the volume and the allocation of land, labour and capital in the economy, reducing our income and consumption opportunities. These economic losses from raising tax revenues have increased for provincial governments across Canada in the last decade with the problem being especially acute in Newfoundland and Labrador, Ontario and British Columbia. However, by lowering personal and corporate income tax rates and shifting more of the tax burden to a sales tax harmonized with the federal GST, the provinces could lower the economic cost of raising tax revenues. Taxpayers’ responses to higher tax rates adversely affect the economy. When rates go up, people are less inclined to save for the future because they must pay higher taxes on interest and dividends, and workers react by avoiding overtime and retiring early. When returns on investment generate higher taxes for corporations, they respond by cutting back their capital expenditures. Also, when people and companies can avoid paying a tax by shifting income or consumption to another jurisdiction with lower tax rates, the tax base will shrink as the tax rate goes up, reducing both income and consumption opportunities — an effect known as the deadweight loss from taxation. The larger the tax base, measured as a share of tax revenues, the greater the deadweight loss from a tax-induced decline in the tax base. All of these reactions to higher tax rates change the volume and allocation of land, capital and labour in the economy. The societal cost from raising extra revenue through a small tax rate increase is called the marginal cost of public funds (MCPF). It can be used to determine which taxes are causing the greatest welfare losses and to measure the gains from shifting the tax burden from the high-cost sources of tax revenues to those that impose a lower deadweight loss. Public projects should use the MCPF in doing a cost-benefit analysis, comparing the project’s benefits with the welfare loss from financing the project through higher taxes. The more reactivehousehold and business decisions are to tax rates, the greater the MCPF. When sales taxes are applied to a wide range of goods and services, people are limited by how much they can change their spending patterns to avoid paying those taxes. Thus, revenue is generated with lower detrimental economic effects than those created by increased personal and corporate income tax rates. Provinces could reduce the problems created by the public’s incentive to avoid paying taxes by both lowering their personal and corporate income tax rates and moving the tax burden over to a general sales tax.

Analysis Of The State Financial Losses To Subsidiaries Of State-Owned Enterprises In Terms Of Business Judgment Rules

The recovery of financial losses suffered by subsidiaries should prioritize recovery efforts that have a non-punitive nature or without punishing a certain person who is considered responsible for the management of BUMN subsidiaries unless there is intentional unlawful conduct and there are elements of criminal acts in it. In accordance with the principle of business judgment rule, the directors can be exempted, because the directors are considered to have made business decisions in accordance with good faith. In this research, the author uses a descriptive analytical research method, because the author will describe or provide an overview of the object under study through the data collected. The form of research used in this writing is normative legal research, because this research uses legislation and court decisions and also legal norms that exist in society. Researchers also collect data in the form of decisions from the corruption court on corruption cases that harm state finances. Losses arising in subsidiaries of SOEs whose capital is not sourced from the state budget or is not equity participation of SOEs and does not receive or use state facilities, are not included in the State's losses. the role of the business judgment rule if the person commits acts of criminal acts of corruption not due to encouragement or coercion and/or business decisions that are not based on prudence from the directors, the directors will be free from legal liability.

Does CEO guilt influence the adoption of employee welfare practices?

AbstractThis study examines the role of CEOs' guilt in adopting employee welfare practices (EWP). Using the context of privatization that is associated with large‐scale layoffs, we argue that witnessing the distress of laid‐off workers and their families causes CEOs to experience guilt for not doing enough to alleviate their suffering. The guilt, in turn, drives CEOs to engage in remedial actions of restitution that reflect positively on employee‐related practices. We find support for our idea in a sample of newly privatized firms from 31 countries. Our results show that CEOs' guilt positively influences the adoption of EWP among newly privatized firms. This effect is stronger in countries with collectivistic orientation and higher unemployment rates. Our findings suggest CEOs' values and emotions play an important role in business decisions concerning their employees. This perspective challenges the conventional view of business decisions as purely rational and profit‐driven, highlighting the importance of ethical and emotional considerations in decision‐making.

Information Technology Governance Analysis to Reduce Information Security Risks Using Cobit 2019: A Case Study of Manufacturing Companies

PT Krakatau Steel (Persero) Tbk is a company engaged in the manufacturing industry that utilizes digital transformation to improve efficiency, optimize facilities and assist organizations in making business decisions quickly. However, there are new challenges in implementing digital transformation, namely increasing dependence on information technology (IT) and triggering high potential threats to information security. Therefore, good information technology governance is needed in managing information security. The research method is based on the Control Objectives for Information Technologies (COBIT) framework version 2019 as the best guide in managing information technology governance. The research was conducted in several stages, including data collection through observation of policy documents and interviews with employees of the BEICT (Business Enables & Information Communication Technology) Department who are responsible for managing services and maintaining the company's digital assets. Evaluation of the maturity level was carried out on 8 priority objectives consisting of EDM03, EDM05, APO12, APO13, APO14, BAI09, DSS05, and MEA04 based on design factor assessment. The results of the analysis of selected domain activities, the IT governance maturity level was at 2.56 (managed level). Indicates that the organization has managed and implemented information security activities, but some activities do not yet have written policies or procedures. With recommendations in the form of proposed improvements to the aspects of people, processes and technology, it is hoped that it can increase the level of maturity of IT governance in reducing information security risks and supporting digital transformation programs.

Bankruptcy as a planned business strategy? Evidence from the stock market

Purpose This paper aims to investigate how the US stock market deals with the announcement of a strategic Chapter 11, a special type of corporate bankruptcy in which companies seek the protection of the law not as a last resort but as a planned business decision. Design/methodology/approach An event study is conducted by using data concerning a group of US publicly traded companies that entered Chapter 11 for both strategic and nonstrategic reasons. Regression analysis is also used for robustness purposes. Findings This study reveals that initiating both strategic and nonstrategic Chapter 11 proceedings results in negative and statistically significant abnormal stock returns before and at the bankruptcy announcement date. However, in the period following the filing, the market gradually views strategic bankruptcy cases as positive news, whereas nonstrategic Chapter 11 filings continue to be perceived as distinctly negative. Originality/value To the best of the author’s knowledge, this is the first paper that documents an asymmetric market reaction to the announcement of Chapter 11, suggesting that, in certain circumstances, managers can add value by filing a strategic bankruptcy.

Impact of carbon quota policy on clean energy investment strategies with financial constraints

The actions of electricity enterprises investing in clean energy are mainly affected by national policies and financial constraints. However, their joint impact on corporate decision-making for clean energy investment (CEI) is unclear. This study develops a game model to study the impact of carbon quota policies on corporate decision-making under financial constraints, including the grandfathering quota policy and benchmarking quota policy. A series of interesting conclusions were obtained. (1) With the goal of CEI, irrespective of financial constraints, the benchmarking quota policy is the best option. (2) With total carbon emissions (TCEs), consumer surplus, or enterprise profit as the goal, financial constraints will have an impact on optimal carbon quota policies. (3) In addition to TCEs, an increase in the financial constraints cap will enhance CEI, consumer surplus, and enterprise profit. These conclusions provide new insights for government policy-making and business decision-making, requiring comprehensive consideration of financial constraints.

Employee lawsuits and business downsizing: Evidence from labor unions

In this paper, we examine how employee lawsuits are related to firms’ business decisions. By using union-filed lawsuit data, we document that litigation increases the likelihood of firms downsizing their businesses. Furthermore, cases filed by unions lead to an increase in both the number of store closures and the number of employees affected by these closures. We demonstrate that violations related to labor have a significant negative impact on operating performance. Our findings reveal the fact that the cost of labor, damage to reputation, legal liabilities, and diverted resources resulting from litigation damages firms’ new business opportunities. Overall, our results highlight the importance of employee treatment at the workplace, which affects corporate decisions.