Company Characteristics Research Articles

Analisis Fundamental Makro, Struktur Modal Terhadap Nilai Perusahaan dengan Struktur Kepemilikan, Kinerja Keuangan dan Karakteristik Perusahaan sebagai Variabel Intervening pada Perusahaan Sub Sektor Kimia yang Terdaftar di BEI

This research aims to analyze the influence of macro fundamental analysis and capital structure on company value with ownership structure, financial performance and company characteristics as intervening variables in chemical sub-sector companies listed on the IDX. Macro fundamental analysis, capital structure, ownership structure, financial performance and company characteristics can influence company value. Signal Theory, Capital Structure Theory, and Agency Theory are the basis for this research. Company value, capital structure, macro fundamentals, ownership structure, financial performance, and company characteristics are important factors in determining company value. The results of the analysis show that several variables such as Macro Fundamentals, Company Characteristics, Financial Performance and Capital Structure have a significant influence on Company Value. However, there are also variables that are not significant such as Ownership Structure. Company value is an indicator of how the market assesses the company's current performance and future prospects, with Price to Book Value (PBV) used as one measure to describe the company's value. This research uses a quantitative approach with secondary data from chemical companies listed on the IDX. The implications of ownership for company value, capital structure and leverage on the financial performance of mining companies have also been discussed in related literature. These variables have a significant influence on company value, showing the importance of these factors in determining company value.

Analisis Fundamental Makro, Struktur Kepemilikan, Fundamental Mikro Terhadap Nilai Perusahaan Dengan Manajemen Laba, Kinerja Keuangan dan Karakteristik Perusahaan Pada Perusahaan Sub Sektor Pertambangan Yang Terdaftar Bursa Efek Indonesia 2018-2023

This research aims to analyze whether there is an influence of Macro Fundamental Analysis, Ownership Structure, Micro Fundamentals on Company Value with Profit Management, Financial Performance and Company Characteristics in Mining Sub Sector Companies Listed on the Indonesian Stock Exchange 2018-2023. The research used in the research is quantitative method research. The type of data used in this research is secondary data obtained from searching and reviewing annual reports of mining companies listed on the BEI (Indonesian Stock Exchange) for the period 2018 - 2023 via the official website www.idx.co.id, the company's official website, and use supporting journals related to this research. The samples used were 6 mining companies selected using a purposive sampling method, then processed or analyzed using the Smart-PLS version 4 application. The results of this research show that Micro Fundamentals have no significant effect on Company Characteristics, while Macro Fundamentals and Ownership Structure have a significant effect. on Company Characteristics. Micro Fundamentals and Ownership Structure do not have a significant influence on Financial Performance, while Macro Fundamentals have a significant influence on Financial Performance. Macro Fundamentals, Micro Fundamentals and Ownership Structure do not have a significant effect on Earnings Management. Macro Fundamentals, Micro Fundamentals, Company Characteristics, Financial Performance, Earnings Management and Ownership Structure do not have a significant effect on Company Value.

Reputasi Auditor dalam Manajemen Laba pada Food and Beverage di BEI

This study seeks to ascertain the impact of macroeconomic fundamentals, the configuration of ownership, the attributes of the company, and the composition of capital on the practice of earnings management, considering the reputation of the auditor as a moderating factor. This study employs data from 11 firms listed on the Indonesia Stock Exchange, chosen through purposive sampling over the years 2019 to 2022, resulting in a total of 44 instances of data observation. The analysis method uses SmartPLS analysis. The research results show that macro fundamentals, ownership structure, company characteristics and capital structure do not have a significant effect on earnings management. The composition of ownership and the financial leverage of a company notably impact its attributes. However, the standing of the auditor does not alter the effect that ownership configuration, company traits, and financial structuring have on the practices of earnings management.

Innovation and firm characteristics: evidence from India’s company-level data

PurposeThis paper tries to explain variation in company-level innovation activities based on certain firm-level characteristics in India between 2010 and 2020.Design/methodology/approachProbit and Heckman’s two-step estimation based on panel data consisting of annual consolidated financial statements of 8,529 companies.FindingsFirm-level innovation activities were associated with larger company size, lower age, higher access to digital assets and voluntary expenses on environmental sustainability and social responsibility.Research limitations/implicationsThis paper is based on company-level financial statements and hence does not include aspects related to human capital, managerial capacities, participation in the global value chain and collaboration with other industries or academia.Originality/valueThis paper uses alternative measures of innovation such as promotional expenses and holding of intangible assets by companies in India alongside R&D expenditure, which is largely used in the past literature. The company characteristics also include emerging areas such as digitalisation, and spending on environmental sustainability and social responsibility, in addition to the conventional factors such as firm size, age and exposure to exports.

Prediction of values of Borsa Istanbul Forest, Paper, and Printing Index using machine learning methods

It is difficult to predict index values or stock prices with a single financial formula. They are affected by many factors, such as political conditions, global economy, unexpected events, market anomalies, and the characteristics of the relevant companies, and many computer science techniques are being used to make more accurate predictions about them. This study aimed to predict the values of the XKAGT index by using the monthly closing values of the Borsa Istanbul (BIST) Forestry, Paper and Printing (XKAGT) index between 2002 and 2023, and the machine learning techniques artificial neural networks (ANN), random forest (RF), k-nearest neighbor (KNN), and gradient boosting machine (GBM). Furthermore, the performances of four machine learning techniques were compared. Factors affecting stock prices are generally classified as macroeconomic and microeconomic factors. As a result of examining the studies on determining the macroeconomic factors affecting the stock markets, 10 macroeconomic factors were determined as input. The macroeconomic variables used were crude oil price, exchange rate of USD/TRY, dollar index, BIST100 index, gold price, money supply (M2), S&P 500 index, US 10-year bond interest, export-import coverage rate in the forest products sector, and deposits interest rate. It was determined that all machine learning techniques used in the study performed successfully in predicting the index value, but the k-nearest neighbor algorithm showed the best performance with R2=0.996, RMSE=71.36, and a MAE of 40.8. Therefore, in line with the current variables, investors can make analyzes using any of the ANN, RF, KNN, and GBM techniques to predict the future index value, which will lead them to accurate results.

The Influence of Age, Tenure, Education and Gender of the Corporate Secretary on Company Performance on the IDX

Financial Services Authority Regulation Number 35 of 2014 states that a company secretary is mandatory for public companies. they will realize GCG and be responsible for the processes and performance of the board of directors and firm performance. Literature on the influence of corporate secretaries on firm performance is limited. However, based on upper echelon theory, the characteristics of the company secretary need to be considered because they describe their performance and their effect on firm performance. Therefore, this study aims to examine the influence of company secretary characteristics on firm performance. The sample used was companies registered on the BEI for the 2018-2022 period with 944 observations. The results of multiple linear regression analysis show that age and education have an effect on firm performance, while tenure and gender have no effect on firm performance. The results add to the literature on the characteristics of corporate secretaries and firm performance, and provide important information that corporate secretaries need to pay attention to.

Strategy as an Influence on Consumer Satisfaction in Contemporary Organization

Purpose: The purpose of this work is focused on the analysis of the company's operations through a review of consumer satisfaction as one of the main goals of the company's operations, that is, on the factors that affect the company and how certain factors can be directed to achieve positive business results. Specifically, when we talk about the analysis of the company, it is necessary to direct all factors towards the achievement of the company's set goals, the achievement of which leads to a positive business result. Methods: The methods used in this paper are quantitative and qualitative. The research that was conducted for the purposes of this paper during the month of December 2022 included companies operating in the territory of Kosovo as well as in other markets. During the investigation, a questionnaire composed of 4 parts was used, aimed at collecting data about the company, monitoring costs, factors that affect the business of the company. Results and discussion: Based on the collected data on business analysis and company characteristics, the connection of variables as well as the influence of various factors on business was determined. In the theoretical part of the work, we looked at the business analysis as well as finding the best strategy to achieve consumer satisfaction. Implications of the research: The market changes every day, and these changes bring with them certain challenges and opportunities, if the changes are followed they can affect the business itself in many ways. The impact is reflected through internal or external factors, there are numerous challenges that arise through these factors, and each one carries with it a certain threat. However, the company can turn the changes taking place in the market to its advantage. That is why it is necessary for the management of the company to regularly analyze situations, following all the influences, it is easier to find an adequate solution. After that information, start activities that will set the company apart from the competition and gain consumer satisfaction, that is, users of their services and products, depending on the type of activity they are engaged in. Originality/Value: This study contributes to the existing body of knowledge by offering new insights into the optimization of information in the management of contemporary organizations. By combining and synthesizing qualitative and quantitative methodologies, research provides a completely new understanding of challenges and opportunities in management, all with the aim of better customer satisfaction. We are aware of the fact that the main goal of every company, in addition to maximizing profit, is customer satisfaction and that their satisfaction is one of the most important factors when it comes to business. However, after this research, we come to new information that provides greater nuance and observation of various factors that affect their business in a certain way. Therefore, this work contributes to the creation of better conditions and philosophies for the formation of new strategies in modern management.

Firm sensitivity to changes in policy uncertainty and its impact on audit pricing

PurposeThis paper aims to examine how a firm’s exposure to economic policy uncertainty affects the auditors’ perceptions of financial reporting risk. Firms that are more sensitive to policy uncertainty are predicted to engage in more earnings management because these firms are more likely to experience greater uncertainty in future operations. Audit fees will reflect this reporting risk. On the other hand, auditors might feel more fee pressure from policy-sensitive firms because firms are more inclined to reduce spending in the face of uncertainty and subsequently charge lower fees.Design/methodology/approachThe author tests my hypothesis using U.S. data on audit fees and client characteristics of public companies between the years 2001 and 2021. The author estimates a standard audit fee model based on the audit fee literature (Hay et al., 2006) while also including the two policy sensitivity measures. This study uses panel data methods that allow time-series analyses, providing a powerful setting to test dynamic audit fee adjustment to improve the understanding of the audit market.FindingsThe results suggest that audit fee is higher for policy-sensitive firms than for policy-neutral firms. These results are robust to various proxies of policy sensitivity and various specifications designed to mitigate the endogeneity concerns. The study provides assurance that on average, auditor pricing reflects client risk adequately, mitigating the concern that auditors give in to fee pressure and compromise audit quality as a result.Research limitations/implicationsWhile the findings from this study should be of value to regulators and academics seeking to understand audit activities amid escalating macroeconomic uncertainty, when interpreting these results, several limitations must be considered. The study does not examine how external auditors evaluate risks tied to policy uncertainty. A comprehensive understanding of how and why external auditors respond to heightened policy uncertainty faced by firms could be better achieved through interviews with external auditors and audit committee members. In addition, while this study posits that auditors adjust their approach in response to changes in policy uncertainty, largely due to potential shifts in the risks of material misstatement, there might be additional factors at play that warrant higher audit fees post a change in policy uncertainty. For instance, specific policy changes may give rise to new risks or modify existing ones, thereby precipitating increased scrutiny of records and procedures as company directors’ demand. These aspects offer potential avenues for future research.Practical implicationsThis study underscores the significant role of policy sensitivity in determining audit fees and audit quality. Policy-sensitive firms present unique complexities and potential risks that require additional effort and vigilance from auditors. Auditors must develop a specialized understanding of sectors prone to policy fluctuations to navigate these unique challenges effectively. In addition, the role of professional standards boards and regulators in establishing guidelines for auditing policy-sensitive firms cannot be understated. Such guidelines could lead to more consistent audit practices and improved audit quality. Finally, by recognizing and effectively responding to the policy sensitivity of client firms, audit firms can mitigate their own risks, strengthen public trust and enhance the reliability of financial reports.Originality/valueFirst, this study adds to an emerging stream of auditing literature that focuses on how audit fees interact with a firm’s external environment by providing evidence of an unexplored implication, a firm-specific policy sensitivity. Second, my main construct, policy sensitivity, provides two distinct advantages over other variables used in prior studies that explore the relationship between audit fees and external firm environments. Third, this study answers the calls for research by De Villiers et al. (2013, p. 3), who identified the cost behavior of audit fees, especially over time, as an area not well understood.

The Impact of Company Characteristics on Budget Implementation: An Investigative Study Applied to a Sample of Employees at Kufa Cement Plant

The research aimed to uncover the impact of company characteristics, represented by the dimensions of size, age, type, and structure, on budget implementation, represented by its three dimensions, namely, operational budget, cash budget, and capital budget, in Kufa Cement Plant. The current research highlights the research vocabulary philosophically by collecting concepts and literary contributions of researchers in this framework in order to achieve the research objective. Methodologically, a questionnaire was used as the primary tool to collect data from the sample individuals, including managers, employees, technicians, and administrators. A total of 262 questionnaires were distributed, and 250 were retrieved. A variety of statistical methods and techniques were employed in data processing and hypothesis testing, including arithmetic mean, Spearman correlation, and regression analysis. The research adopted a descriptive-analytical methodology in dealing with theoretical and field data on its variables, which relies on describing the case and then analyzing it to reach conclusions. Several results were obtained, where the most important one was that there is a significant effect of company characteristics (age, size, type, and ownership structure) on budget implementation (operational, cash, and capital) in Kufa Cement Plant. The key recommendations emphasized focusing more on addressing the substantial deviations between actual cash and previously planned budgets in the studied plant.

How are the SMEs Committed to their Local Communities in the Term of Sustainability?

Abstract Research purpose. Local communities play a crucial role in the entrepreneurship ecosystem. The role and massive influence of the local environment raise several questions. This paper aims to answer the following questions: (1) how and why the local communities affect SMEs’ sustainability, (2) which pillar of sustainability plays a stronger role in this matter, (3) which internal and external motivators drive a firm’s sustainability actions, and (4) whether company and personal characteristics have a significant effect on local patronage. Design / Methodology / Approach. A representative sample of leaders (n=300) from the Hungarian SME sector was investigated through a validated survey. The survey explored activities, motivations, organizational characteristics, and leadership factors in CSR and sustainability in the SME sector. Both Likert scaled statements and reasonings for open-ended questions were examined using qualitative and quantitative methods. Findings. SMEs regularly support various organisations, and communities, mainly if those are in the close region of the enterprise. They regularly promoted culture, education, youth, sport, and vulnerable groups in their local area. Moreover, businesses feel an obligation to support the local communities in which they operate. This activity seems to be divided into a conscious and a hidden part. When we asked for the reason for activities, most answerers expressed that donating to healthcare organisations or education institutes is an obvious civic duty (i.e., pressure from society) but in terms of local communities, the motivation is rooted in personal engagement (i.e., an essential part of social sustainability). Originality / Value / Practical implications. SMEs poorly express their sustainable activities; they adopt more informal strategies in comparison with large companies. SMEs’ social sustainability lies in engagement and close links with local communities, where companies are targeted towards supporting charitable projects in their surroundings. Even though these actions are less formalised or strategically planned, that is why this research provides a better understanding of the integration of environmental and social concerns of sustainability reflecting all of those benefits.

From Emissions to Economy: Company Characteristics and Carbon Disclosure in Southeast Asia

From Emissions to Economy: Company Characteristics and Carbon Disclosure in Southeast Asia

SOME FACTORS THAT INFLUENCE ON DEBT POLICY

A company is considered at risk if it has a large portion of debt in its capital structure, but conversely, if a company uses little or no debt at all, the company is considered unable to take advantage of additional external capital that can improve the company's operations. Based on these reasons, managers are required to be more careful in determining debt policies in their companies. Meanwhile, according to the trade of theory, the higher the debt, the higher the bankruptcy burden. Based on the general assumptions of the pecking order theory and trade of theory, the use of debt should be low. However, many companies still pay high debt. From these reasons, research on debt policy needs to be examined. This study aims to empirically prove the impact of company characteristics, asset structure, and profitability on debt policies in property and real estate companies listed on the Indonesia Stock Exchange (IDX) in 2019-2021. The data used in this study were 28 companies. The sample used was 84 sample data selected using purposive sampling method which were processed using EViews version 12. The result of this study indicates that all independent variables simultaneously have no significant impact on debt policy as shown by the results of the F test. The results of the T test explain that company characteristics have a negative and insignificant impact on debt policy, asset structure has a negative and insignificant impact on debt policy, and profitability has a positive and insignificant impact on debt policy.

Key Traits of Leading Sustainable Firms in the Semiconductor Industry

Few studies have investigated sustainable management in the semiconductor industry. Consequently, this study analyzed the characteristics of companies excelling in sustainable management in the semiconductor industry using chief executive officer messages. It compared high- and low-performing groups to identify leading sustainable firms. Centrality analysis was conducted to extract keywords, which were mapped to the sustainability criteria to conduct network analysis. The results showed that the high-performing group emphasized sustainable development across the semiconductor industry ecosystem, while the low-performing group focused on internal sustainability aspects. This underscores the need for effective sustainable development in the semiconductor industry that extends beyond individual company efforts and embraces industry solidarity. Thus, this study presents a methodology that can be applied to similar studies in industries beyond semiconductors.

Green Accounting Fails to Enhance Financial Performance in Indonesia

This study examines the impact of green accounting and company characteristics on financial performance through environmental disclosure for manufacturing and consumer goods companies listed on the Indonesia Stock Exchange (IDX) from 2017-2020. Using a sample of 17 companies selected via purposive sampling, secondary data were analyzed with Partial Least Square (PLS). The results indicate that green accounting and company characteristics positively influence environmental disclosure, but do not affect financial performance through it. Additionally, environmental disclosure does not impact financial performance. These findings suggest that while environmental reporting is enhanced by green accounting and company traits, it does not directly improve financial outcomes. Highlight: Green accounting and company traits boost environmental disclosure. Environmental disclosure doesn’t affect financial performance. Focus: manufacturing and consumer goods firms on IDX (2017-2020). Keywords: Green Accounting, Environmental Disclosure, Financial Performance, Company Characteristics, IDX

Hometown religiosity and financial reporting quality: evidence from chairpersons

PurposeThis study aims to investigate whether there is a relationship between the religiosity levels of chairpersons’ hometowns and the financial reporting quality of companies.Design/methodology/approachUsing a unique hand-collected data set obtained from various sources, the authors use ordinary least squares and logistic regressions to test the hypotheses and further implement various methods to address potential issues such as omitted variables, reverse causality and selection bias problems. In addition, the authors control for the religiosity level of chief executive officers’ (CEOs) hometowns. Finally, the authors divide the sample into two subsamples – companies with strong corporate governance and companies with weak corporate governance – to investigate the effect of chairpersons’ hometown religiosity on financial reporting quality under strong or weak corporate governance.FindingsThe findings demonstrate that companies with chairpersons from religious hometowns produce high-quality financial reports. Additional tests, such as the Heckman selection model and instrument variable regression, confirm the robustness of the main results. Controlling for the religiosity level of the CEO’s hometown yields consistent findings with the main results. Finally, additional results indicate that the religiosity levels of chairpersons’ hometowns play a significant role in enhancing financial reporting quality in companies with weak corporate governance.Practical implicationsCompanies should consider appointing board members or chairpersons from more religious hometowns, as the empirical results of this study support the positive effects of chairpersons’ hometown religiosity on financial reporting quality.Originality/valueTo the best of the authors’ knowledge, the current study is among the first to demonstrate the relationship between the religiosity level of the chairpersons’ hometown and the financial reporting quality of companies. The study introduces unique hometown religiosity proxies and controls for various variables related to corporate governance, chairperson attributes, company characteristics, and audit firm characteristics.

Silo mentality in teams: emergence, repercussions and recommended options for change

PurposeThis article summarizes practitioner observations on three research questions. First, the factors that lead to the emergence and persistence of such teams. Second, the repercussions of siloed teams. And third, practical suggestions and recommendations that practitioners can employ to prevent silo formation or address existing silos. This article thus complements recent academic work that has previously explored the formation of silos.Design/methodology/approachThe authors used the input of current team leads from a focus group along with their consulting experience to explore these three research questions. The team lead input and consulting expertise are integrated with academic research on silos.FindingsThe emergence and persistence of silos was mostly attributed to company characteristics (size, growth and stakeholder management) as well as communication inefficiencies (lack of role clarity and ownership within teams), which in turn were impacted by situational variables (pandemic and turnover). The authors noted the effect of team composition effects, team competition and organizational changes (rapid growth and restructuring) as potential contributors to the formation and persistence of silos. The team lead experts and our consulting experiences were congruent with the literature focused on repercussions of silos, from poor information exchanges to inefficiencies, divisions and perceived isolation of teams from the organization. Solutions focused on project organization and documentation as well as the adoption of new decision-making tools and practices, and the creation of more exchange and learning opportunities. The authors added additional options to promote more visibility, appreciation, proactive monitoring within teams and organizational identification initiatives.Originality/valueThe current article adds a pragmatic perspective to silos and how organizations can address these when they become problematic and hinder performance and collaboration.

Linking sales force integration into NPD to salesperson retention: toward a systematic framework

Retaining talented salespeople is crucial for a company’s survival. One effective strategy for retaining employees is to actively involve them in significant business decisions. Salespeople, however, differ significantly from their colleagues, for example, they are typically highly customer-oriented. Therefore, integrating them into new product development (NPD) may be a potentially valuable approach for firms to retain them. Nonetheless, salesforce integration (SI) into NPD is more intricate than initially thought. It may involve both psychological SI benefits (such as feeling valued or competent) and costs (including potential conflicts with NPD team members or role conflicts), thus differently affecting a salesperson’s willingness to stay with the firm. To learn more about the intriguing link between SI into NPD and salesperson retention, we conducted a qualitative study and applied grounded theory to conceptualize this relationship. We identify key mediators (psychological SI benefits and costs) and moderators (such as company, NPD team, salesperson, procedural, relationship, or product characteristics) that can influence the SI-into-NPD-salesperson-retention connection and develop related, relevant propositions. All of these insights are integrated into a cohesive framework and we present a research agenda to guide future exploration of this critical subject. Furthermore, we derive and discuss implications for both academics and practitioners.

Pengaruh Karakteristik Perusahaan Dan Karakteristik Auditor Terhadap Audit Report Lag

This research aims to analyze share price movements on the Indonesia Stock Exchange from 2018 to Abstract- The purpose of this writing is to examine and analyze the factors that influence auditor efficiency in completing the audit process which is proxied by audit report lag. The factors used in this research were selected by looking at company characteristics and auditor characteristics. Design/methodology/approach, company characteristics are proxied by Board Independence, financial condition, and profitability, while auditor characteristics are proxied by auditor reputation. The population of this research is all companies listed on the Indonesia Stock Exchange in 2018-2022. Based on the purposive sampling method, the number of samples obtained from 231 companies. Findings, ehe research results show that partially the financial condition variable has a significant negative effect on audit report lag. Meanwhile, the auditor reputation variable shows a significant influence on audit report lag.

Executive Compensation, Executive Character, Tax Avoidance: Does Independent Commissioner Matter?

This study looks at the impact of executive compensation and character on tax avoidance. This study also looks at the moderating influence of the proportion of independent commissioners in this connection. This study uses secondary data from financial statements from consumer products businesses listed on the Indonesia Stock Exchange between 2017 and 2021, retrieved from www.idx.co.id. The overall sample size for this study was 85 observations, as determined via purposive sampling. Multiple linear regression was used to evaluate panel data. This research concludes that executive compensation is positively related to tax avoidance, while executive character does not affect tax avoidance. Furthermore, the proportion of independent commissioners succeeded in reducing the positive influence of executive compensation on tax avoidance, while the role of independent commissioners did not have a role in reducing the positive influence of executive character on tax avoidance. This research is expected to be a means for the Indonesian Tax Authority to create policies for profiling company compensation characteristics for executives as an initial indicator of tax avoidance activities carried out by companies.

Navigating Delays: Exploring Factors Influencing Audit Timeliness

Purpose: This research explores factors influencing audit timeliness in the food and beverage manufacturing companies listed on the IDX from 2019 to 2023. The study population comprises 26 companies with complete and continuous financial reports during the research period. Design/methodology/approach: The analysis employs multiple linear regression to examine the impact of company size, profitability, solvency, and Public Accountant Reputationon audit report lag. Findings: Results reveal that company size does not significantly affect audit report lag, challenging previous studies. Profitability also shows no significant influence on audit timeliness, contradicting some research findings. In contrast, solvency has a positive and significant impact on audit report lag, indicating longer delays with higher debt-to-total-asset ratios. Moreover, a PAR positive reputation correlates with shorter audit report lag. Practical implications: Understanding these factors can help practitioners, auditors, and regulatory bodies comprehend the dynamics of audit timeliness in the food and beverage industry, facilitating more effective monitoring and decision-making. Originality/value: This research contributes to the literature by providing insights into the nuanced relationships between company characteristics and audit timeliness in a specific industry, offering a valuable perspective for academics and practitioners in auditing and financial management.