Company's Decision Research Articles

Maximum and set covering problem considering the internal structure of production units

Purpose In many real-world problems, this paper faces some production processes that have internal structures that should be taken into account to have a comprehensive analysis. This situation is settled in the network data envelopment analysis (DEA) literature. Therefore, in this article, this paper aims to develop two types of covering location problems joint with network data envelopment analysis. This paper propose biobjective mixed integer programming models associated with the aforementioned development. In the first model, the goal is to select locations of facilities such that the total efficiency score is maximized and the total establishing cost for covering all demands is minimized. In the second model, this paper considers the location of facilities for maximizing the total efficiency score and covering the demands. Design/methodology/approach Covering location problems is considered a very important issue in the decision-making of organizations and companies. The purpose of these problems is to assign a set of demand points to a set of candidate locations so that optimal covering is provided for the demand points. Considering the efficiency of facility location with the help of DEA helps the decision-maker to reach more effective information and better analysis of the problem. Findings This paper applied the proposed models in the health centers of Shahrood City, so that each of the centers is considered a decision-making unit, and each of the decision-making units consists of three subunits that are connected in a series network. The primary results highlight the importance of the internal units beside the overall performance of healthcare centers. Originality/value Therefore, in this article, this paper develops two novel types of covering location problems joint with network data envelopment analysis. This paper proposes biobjective mixed integer programming models associated with the aforementioned development.

Employee ownership for union workers: positive outcomes and negative perceptions

ABSTRACT Unions have a complicated history with employee ownership. Prior to the institutionalisation of collective bargaining, several nascent U.S. union movements in the late 19th century put worker ownership at the centre of their thinking and practice. Since formalised collective bargaining, unions have often resisted participating in employee ownership plans due to concerns about worker financial risk and blurring labour-management boundaries. However, more recently, some unions have experimented with employee ownership as a way to increase job security, income, and worker influence on company decisions. In this exploratory paper, we first assess the prevalence and trends in unionised workers participation in employee ownership plans using Department of Labour data on collectively bargained Employee Share Ownership Plans (ESOPs), plus employee-level data from the 2002–2022 General Social Surveys (GSS). We then use GSS data to compare the effects of employee ownership on union and non-union employee outcomes such as job satisfaction, turnover intention, and quality of work life. The results show that the combination of employee ownership and unions is linked to higher wages, training, and job security but also to more critical views of the workplace and relationships with managers. Importantly, employee ownership does not diminish the perceived need for unions.

Pengembangan Sistem Informasi Akuntansi untuk Meningkatkan Efisiensi dan Akurasi: Studi Kasus pada Implementasi Perubahan Program Akuntansi

This article discusses the development of accounting information systems to improve efficiency and accuracy, focusing on a case study of the implementation of accounting program changes. Previous studies have shown that effective accounting information systems can significantly improve the quality of accounting and managerial information. The implementation of accounting program changes often involves the integration of information technology to improve the process of financial reporting, internal control, and analysis of company performance. Previous studies have shown that companies that adopt information technology in their accounting systems have a competitive advantage in managing and analyzing financial information more efficiently. Important factors in the development of accounting information systems are the need to ensure data accuracy, reporting speed, and real-time availability of information for internal and external stakeholders. This study also explores the positive impact of the use of accounting information systems on the company's operational efficiency and strategic decision making. Successful implementations show that modern accounting information systems are able to integrate various business functions, such as finance, inventory, and manufacturing, to improve the coordination and effectiveness of the organization as a whole. Thus, the development of accounting information systems not only improves the company's internal processes but also enhances the company's adaptability to rapid and complex changes in the business environment. This study provides a strong theoretical foundation for understanding the importance of information technology integration in the context of accounting program changes to achieve higher efficiency and accuracy goals.

Investing in Tomorrow: How Indonesian Firms Allocate Free Cash Flow for Sustainability Development Strategy

Objective: This study is to investigates and prove the role of management ownership in the use of free cash flow to fund the social environment financing (Sustainability Accounting), and as the company's sustainability development strategic objectives. Theoretical Framework: Sustainability accounting has long been disputed in developing nations and certain industrial settings, and it remains among its most crucial issues in the business sector. Sustainability accounting is also used to assess or evaluate firm performance, provide accounting information, and make economic assessments relating to investment and managerial decisions, total asset expenditures, capital costs, or other strategic decisions for companies related to social responsibility, meaning that companies do not only prioritize profit but also deserves attention to the social-environmental factors of the communities in which they operate. This policy is aimed at preventing conflicts of interest between internal and external stakeholders of the organization, and can protect the company's reputation Method: The method utilizes pure-moderated regression model and using the purposive sampling method, data pooling is based on the company's ISX-listed financial statements on 2016-2020 period, and has an Environmental Performance Management index on Green-Gold PROPER. Results and Discussion: The results of the t-test showed a significance value of pure-moderating effect of managerial ownership to intervene free cash flow in sustainability accounting. This means that in order to overcome the socio-ecological accounting crisis, in addition to profit orientation, companies make sustainability responsibility one of the most important factors in their business operations. Research Implications: Management ownership plays a positive role and has a significant impact on sustainability accounting. Even if they hold a relatively small number of shares, they can influence the use of free cash flow for the benefit of sustainability accounting. Free cash flow is not only used to return profits to shareholders, but also to benefit social and environmental programs when companies make strategic decisions. This result in line with the legitimacy theory, which states that the existence and sustainability of corporate operations is confirmed by their conformity with the interests and expectations of the community. Originality/Value: This study contributes to clarifying why a company's sustainability can be verified through sustainable accounting. This research suggests that one essential aspect in resolving the socio-environmental accounting crisis was sustainability responsibility.

Industrial technological advance and the employment demand for China's labour force-Micro evidence from labour hiring in companies.

Technological advance in industry has complexity, divisibility, systematicity and market selectivity, and companies may generate technological investment expansion and form technological job demand, which may also lead to the occupation of company resources and trigger the replacement of the original jobs. This paper empirically examines the impact of technological advance in industry on the labour employment demand of companies by taking Chinese A-share listed companies as research samples from 2008 to 2022, and finds that: overall technological advance in industry has a suppressive effect on the labour employment demand of companies; The heterogeneity test shows that industrial technological advancement mainly produces inhibitory effects on the labour employment of low-education level employees and production sectors, while it produces incentive effects on the labour employment of high-education level employees and non-production sectors Industrial technological advancement mainly produces job substitution and destructive effects on the labour employment of low-education level employees and production sectors, while it produces incentive effects on the labour employment of high-education level employees and non-production sectors. Mechanism test shows that industrial technological advancement has incentive effects such as technology investment expansion effect and industry chain conduction effect, and also produces inhibitory effects such as enterprise resource occupation effect and employment delay effect. This paper extends the research on the impact of industrial technological advances on the labour employment demand of companies, and provides empirical evidence and policy insights for rationally arranging industrial structural transformation and labour employment decisions of companies in the context of 'stable employment'.

Promoter Ownership and Leverage: An Empirical Evidence of Agency Problem in Select FMCG Companies

The study examines the association between promoter ownership and leverage of Fast Moving Consumer Goods (FMCG) companies listed at BSE in the ‘A’ category. The FMCG Industry is a vital sector for the Indian economy. Leverage decision is a critical financial decision. In the year, 2020 the revenue of the FMCG market was USD 110 billion. The study tries to investigate the impact of promoter shareholding on the leverage decision of Indian FMCG companies. The study is conducted on a sample of 46 companies and the study period ranges from 2017-2022 for 5 years. The study conducted A panel data model is opted for data analysis. The study also conducted a diagnostic test to further check the reliability of the data. The study indicated a significant positive association between ownership structure and leverage. Due to the existence of agency problems, the leverage decisions deviate from neoclassical models. The study’s finding adds to the extant literature on promoter ownership. The positive relationship indicated the existence of an agency problem. Firm executives should try to reduce Agency problems to enhance firm performance.

Navigating diverse information environments on environmental sustainability: information practices of decision-makers in Finnish high-tech companies

Navigating diverse information environments on environmental sustainability: information practices of decision-makers in Finnish high-tech companies

Supply Chain Stability and Corporate Green Technology Innovation

The supply chain is a critical perspective that enables understanding a company's business decisions. This paper indicates that corporate green technology innovation activity has significantly improved supply chain stability, as evidenced by data from 2011 to 2022. Supply chain stability can effectively stimulate corporate green technology innovation, alleviating financing constraints and enhancing risk-taking ability. Further analysis confirms that the impacts of supply chain stability in non-state-owned enterprises and firms with higher competitive industries play multiplier effects. Providing empirical data and management insights for establishing a green innovation environment system that is concentrated on both the enterprise and the market, the findings contribute to the existing research on the influencing factors of corporate green innovation.

The Effect of Financial Distress, Audit Opinion and Audit Fee on Auditor Switching (Empirical Study on Mining Companies Listed on the Indonesia Stock Exchange)

This study aims to analyze the effect of financial distress, audit opinion, and audit fee on auditor switching in mining companies listed on the Indonesia Stock Exchange (IDX). This study uses a quantitative research method. The sampling technique in this study uses a purposive sampling technique. The population is all mining sector companies listed on the IDX in 2022-2023, totaling 85 companies and the research sample is 46 companies. Using logistic regression analysis with SPSS 25.0 software in analyzing data in the preparation of this study. The results of this study are that financial distress and audit opinion do not have a significant effect on the company's decision to conduct auditor switching. Meanwhile, audit fees have a significant effect on the company's decision to conduct auditor switching.

Demand Information Forecasting and Sharing in a Remanufacturing Closed‐Loop Supply Chain

ABSTRACTWe delve into the incorporation of demand information forecasting and the subsequent information sharing in a closed‐loop supply chain (CLSC). We consider the competition between an original equipment manufacturer (OEM) and an independent remanufacturer (IR). The OEM autonomously determines whether to forecast demand information and further considers whether to disseminate the realized demand signal to the IR. We find that the IR adopts either a partial‐ or a full‐remanufacturing strategy to compete with the OEM. The OEM shares negative demand signals with the IR, as such signals decrease the retail prices and increase the production quantity of all‐new products. Additionally, the sharing of negative demand signals helps alleviate the cannibalization effect caused by the introduction of remanufactured products. When examining the optimal sharing strategy in equilibrium, the OEM only invests in forecasting demand if the forecasting cost is relatively low. Furthermore, the numerical studies reveal that, in equilibrium, the OEM does not necessarily benefit from possessing more precise demand information. Additionally, we assess the influence of consumers' environmental awareness on the production decisions of both companies. The findings indicate that heightened environmental awareness prompts the IR to adopt a full‐remanufacturing strategy, and the information management strategies remain robust.

The Impact of Managerial Accounting Techniques on Short-term Decisions

This study aims to determine the importance of managerial accounting in the process of short-term decision-making. Since managerial accounting is a crucial component of the financial information system and is crucial in making decisions in big companies or SMEs, while managerial accounting is only briefly discussed in the majority of economic units, there are some organizations where certified public accountants view managerial accounting as an optional component of the business. Financial data was collected from one of the SME companies in KRG/Sulaimani governorate, which is Mariwan Gallery, located in Bazian. The results indicate that managerial accounting has a significant effect on the process of short-term decision-making. This study recommends that all businesses, including small shops, hire accountants in order to make critical financial decisions. This helps businesses perform better, and it also provides more job opportunities for society.

Capital structure decisions in the energy transition: Insights from Spain

The renewable energy transition depends heavily on capital structure decisions of energy firms. Most previous research has focused on the decisions of oil companies. This study investigates the financing of new investment in the Spanish renewable energy sector, including decisions about: i) equity versus debt, ii) short versus long-term debt, and iii) equity issuances versus retained earnings for new investment. Our analysis is based on data from over 22,000 energy firms from 2008 to 2021 and shows that these firms prefer debt over equity (more than 90% of changes in assets are financed through increasing debt) and have extended the term of the debt over the period studied (reaching a maximum of almost 73% long-term debt in 2021). The deployment of retained earnings is less usual than raising new equity capital. Our analysis points to a generalized use of project finance to support new investments. Policymakers should focus on increasing financing through equity and thus diversifying the financial risk of the energy transition. In addition, a supportive fiscal policy and a stable regulatory environment are desirable for achieving this goal.

Employee participation at company level: institutions, articulation and challenges

Employee participation at company level is one of the core institutions of what can be called the ‘European social model’, based on national regulations and regulations at EU level, such as the directives on European Works Councils (EWCs) and the Societas Europaea (SE). This process of institutionalisation coincides with fundamental changes in the current era of globalisation and transformation, which increase the importance of the company level for employee participation. We argue that this development highlights the problem of articulation within the multi-level system of employee participation. By comparing institutions of participation at national – we include the cases of France, Germany, Spain and Sweden – and at EU level we analyse whether and how these institutions create opportunities to influence company decisions by giving voice to workers’ representatives. In doing so we identify good practices and, on that basis, develop policy recommendations to strengthen the articulation of employee representation at company level.

A strategic optimizing carbon neutrality within profit and emission reduction efficiency: a stackelberg game analysis under a cap-and-trade scheme.

Carbon emissions (CO2e) are a main problem, and many countries are committed to reducing CO2e to attain carbon neutrality. To narrow this gap, this research considers green technology implementation (GTI) and CO2e quota in dual green gaming. The objective is to explore the integration of GTI and CO2e quotas into optimal production and pricing decisions in emission-generating companies (EGCs). To achieve this, a two-party simulation Stackelberg game model involving the CO2e strategy of EGCs and governments is proposed. We formulate a mathematical model and experimental methods to optimize EGCs' decision-making using neutral indicators. EGCs optimize production quantity, achieving CO2e reduction through ERE maximization. EGCs exhibit a strong commitment to ERE enhancement practices, enhancing profit and carbon-neutral goals. Our findings demonstrate the effectiveness of CO2e quotas and GTI as carbon-neutral indicators in EGCs, contributing to global CO2e reduction. Our research provides both literature and inspiration for global CO2e reduction efforts. Moreover, it aids governments in exploring optimal incentives and decisions for pricing and production. Last, this work enables EGCs to maximize profits and move toward a carbon-neutral environment.

Shareholder primacy or stakeholder governance?

Externalities happen largely in the private sector and cannot be fully separated from production decisions. Decision-making in companies thus co-determines the degree of sustainability of an economy. Advances in impact valuation allow us to express the stakeholder interests in finance and valuation terms. We can thus compare investment decisions and payout decisions for three types of models: the shareholder value model, the shareholder welfare model, and the stakeholder model. Our results show that stakeholder-driven companies are better able to pursue a sustainable economy. Corporate governance should be adjusted accordingly.

The Relationship Between Chief Financial Officer Gender and Investment Efficiency

Objective: This study aims to examine the relationship between the gender of the chief financial officer (CFO) and the efficiency of corporate investment, especially over-investment. Methods: The independent variable is the gender of the CFO and the dependent variable is over-investment. The research method is correlation type and multivariate regression using panel data with a logistic regression model approach. The data of manufacturing companies in the Tehran Stock Exchange has been collected from 2017 to 2021. Results: The findings of the research show that the presence of a female financial manager is significantly related to the reduction of the company's over-investment level, so gender plays a role in the economic decision-making and investment of companies. Conclusion: Female chief financial managers are more risk-averse compared to male chief financial managers and consider the interests of shareholders in the company’s economic decisions. Therefore, companies should pay special attention to gender diversity at the level of company managers in making decisions and economic investments.

The Role of Competitive Intelligence in Strategic Decision-Making: A Literature Review

Competitive Intelligence (CI) is an important element in a company's strategic decision-making in the midst of increasingly fierce business competition. In business literature, CI has been recognized as a vital tool for understanding a company's external environment and analyzing competitors' strategies. However, there is still debate regarding the role and effectiveness of CI in strategic decision-making. This study aims to explore the role of CI in strategic decision-making through a comprehensive literature review. The research method used is a qualitative method by analyzing various articles and journals related to CI and strategic decision making. The discussion in this study includes the importance of CI in providing relevant information, the methods used in CI implementation, and its impact on the company's strategic decisions. The results show that a deeper understanding of the role of CI in the context of strategic decision making, as well as providing recommendations to improve the effectiveness of CI in supporting corporate strategic decisions. The implication of this research is to provide valuable insights for business practitioners and researchers in understanding the contribution of CI to the strategic decision-making process. This research is also expected to be a reference for companies in optimizing CI implementation to strengthen competitive advantage in the market.

The impact of business intelligence on promoting decision-making in Jordanian business companies

This research aims to investigate the impact of business intelligence on promoting decision-making in Jordanian business companies. The research Methodology is quantitative. It adopts an analytical case study approach, employing the analytical descriptive method, which is deemed appropriate for investigating social phenomena. The construction of the scale for this study relies on two variables that align with its objectives. This scale includes ten items that cover the main research question. The study’s target population includes all Jordanian business companies, with a sample size of 30 managers randomly selected from these companies. Several guidelines are adhered to when selecting a research instrument. The findings show that there is a positive impact of using business intelligence on promoting decision-making in Jordanian business companies. The employees of the companies have sufficient skills in the field of enhancing business intelligence since they actually use it in their workplace.

Shareholder Proposal Rights: Balance Between Protection of Minority Shareholders’ Rights and Efficiency of Company Decision-Making–Article 115 of PRC Company Law

Shareholder Proposal Rights: Balance Between Protection of Minority Shareholders’ Rights and Efficiency of Company Decision-Making–Article 115 of PRC Company Law

Faktor-Faktor Penentu Keputusan Etis Konsultan Pajak di PT Mitra Manajemen Internasional

Ethics is very important in the business world, business ethics refers to the principles and values ​​that influence a company's actions and decision making. As an important part of tax compliance, tax consultants must understand tax regulations and make decisions in accordance with ethics to maintain the integrity of the profession and public trust. A number of large cases of tax evasion and bribery show that tax consultants engage in unethical actions, which can hinder business growth. Tax consultants are responsible for providing tax input in accordance with regulations and liaising with the tax authorities. The difference in interests between consultants and clients causes ethical conflicts. PT Mitra Manajemen Internasional uses policies that support the ethical decision making of tax consultants. This research aims to find factors that influence the ethical decisions of tax consultants at PT Mitra Manajemen Internasional. It is hoped that this research can provide deeper insight and help develop better policies and programs to support ethics in the tax consultant profession through interviews and participant observation.