Indonesia Stock Exchange Research Articles

Fraud Factor Analysis Hexagon in Detecting Financial Report Fraud In Listed Companies in Indonesia: A Systematic Literature Approach

Financial reporting fraud is a significant challenge across industries, undermining stakeholder trust and the reliability of financial data. The Fraud Model Hexagon expands upon earlier models, like the Fraud Triangle and Fraud Diamond, by introducing six elements pressure, opportunity, rationalization, capability, ego, and collusion that offer a comprehensive view of the factors enabling fraud. This literature review systematically examines the model's effectiveness in detecting financial fraud within Indonesian corporations, especially those listed on the Indonesia Stock Exchange or connected to political and governmental entities. Ten studies from 2018 to 2024 were analyzed, focusing on each Fraud Hexagon element's role in fostering fraud. Findings highlight that pressure, opportunity, and collusion are primary drivers of fraud in politically connected sectors, with capability and rationalization further facilitating fraud, while ego emboldens managers to act without fear of repercussions. The Fraud Hexagon provides a nuanced framework for risk assessment, prompting recommendations for stronger internal controls and ethical standards. It also serves as a valuable diagnostic tool for auditors and regulators, particularly in politically sensitive sectors. This study contributes to understanding the social and psychological dimensions of financial fraud and offers a foundation for future cross-industry research.

Faktor-Faktor yang Memengaruhi Harga Saham pada Bisnis Subsektor Makanan dan Minuman yang Terdaftar di IDX

This study aims to investigate the effects of the Current Ratio (CRA), Debt-to-Equity Ratio (DERA), and Return on Equity (ROEQ) on the stock prices (HS) of companies in the food and beverage sector listed on the Indonesia Stock Exchange (IDX) during the period from 2017 to 2022. The analysis utilizes data sourced from the published annual financial statements of the relevant companies, employing a purposive sampling method to select 17 companies from the food and beverage subsector as the research sample. This research employs a quantitative descriptive approach and multiple linear regression analysis processed with Eviews Version 12. The findings indicate that CRA does not have a significant effect on stock prices when analyzed separately. Conversely, ROEQ has a positive and significant impact on stock prices, while DERA shows a significant negative effect. These findings affirm that the three variables, namely CRA, DERA, and ROEQ, contribute to stock price fluctuations both individually and collectively. Therefore, this research recommends that companies in the food and beverage sector enhance their financial performance, particularly through better debt management and increased profits, in order to strengthen the attractiveness of their stock prices in the market and attract greater interest from investors.

The Effect of Sustainable Business Practices on Company Value in Indonesia Stock Exchange Sri-Kehati Index Companies

The purpose of this study was to examine the effect of economic, environmental, social, and governance performance on firm value moderated by PROPER and COVID-19 in listed companies included in the SRI-KEHATI index for 10 consecutive years. The type of research used is quantitative research using hypothesis testing of the effect of the independent variable on the dependent variable with moderation of certain variables. The research variable includes the dependent variable, firm value, independent variable, which is economic, environmental, social, and governance performance (EESG), as well as moderating variables, PROPER and COVID-19. Purposive sampling is used through certain criteria, contain public companies included in the SRI-KEHATI index group for 10 consecutive years This results in a total 130 samples (13 companies during the 2012—2021) The data analysis used are descriptive statitisical and multiple regrssion. The results of this study are (1) economic, environmental, and governance performance have a significant positive effect on firm value. However, social performance does not have a significant positive effect on firm value; (2) PROPER is proven to moderate the positive effect of governance performance on firm value, but not the effect of economic, environmental, or social performance; (3) COVID-19 is not moderate the positive effect of economic, environmental, social, and governance performance on firm value The implication of this study are (1) the implementation of sustainable business practices in economic, environmental, social and governance aspects is an important thing that must be implemented by companies in order to create a sustainable business; (2) PROPER can strengthen environmental management governance performance; (3) The dimensions and indicators used can serve as a reference for the company in sustainable business practices and as a basis for investors to make investment decisions; and (4) To be the basis of reference for the company, investors, and regulators.

Market Reaction to Dividend Announcement during the Covid-19 Pandemic on the Indonesian Stock Exchange

This research uses Average Abnormal Return and Trading Volume Activity to test the market reaction around the dividend announcement date. Tests using these two parameters are expected to provide a more comprehensive description of market reactions. This research is quantitative research using secondary data. Even study method with a window period of 5 days before and 5 days after the dividend announcement date. Abnormal returns were calculated using a market model for 252 dividend announcement events on the Indonesia Stock Exchange in 2020. The sample was determined using purposive sampling technique and data analysis using the IBM SPSS Statistics 25.0 application. The research results show that there is a market reaction in terms of abnormal returns and differences in trading volume activity when cash dividends are announced during the Covid-19 pandemic. The announcement of an increase in the value of cash dividends and a decrease in the value of cash dividends during the pandemic caused a market reaction characterized by a significant positive average abnormal return. Meanwhile, for the announcement of the provision of dividends and the elimination of dividends, there were no significant average abnormal returns and no significant differences in trading volume activity.

Qualitative Study of Sukuk as an Alternative Sharia Financing and Its Impact on Economic Growth in Indonesia

This study aims to explore the role of sukuk as an alternative form of sharia financing in promoting economic growth in Indonesia. The study employs a qualitative approach, utilizing a literature review and relevant data from credible sources, such as the recapitulation of the sharia stock index presented by the Indonesia Stock Exchange. Findings indicate that the role of sharia bonds, specifically sukuk, has experienced substantial growth in Indonesia between 2000 and 2024. Sukuk plays a critical role in enhancing the national economy and improving public welfare. The market has demonstrated a high level of responsiveness to sukuk issuance, with almost all issued sukuk being fully absorbed, often with demand exceeding supply. To harness the potential of sukuk for broader economic benefits, it is crucial to undertake strategic steps, including public awareness campaigns to educate the wider community about the benefits and opportunities provided by sukuk as a sharia-compliant investment instrument. Increasing public understanding of sukuk will further support sustainable economic development and financial inclusion in Indonesia.

Optimizing Transfer Pricing in Indonesia: An exploring of Tax Minimization, Tunneling incentive, and Audit Committee

Transfer pricing has become a crucial aspect of global business, especially for natural resource companies in Indonesia, which includes monitoring tax compliance, mitigating tax dispute risks, and maintaining corporate reputation due to its complex and high-priced commodities. This research aims to test and analyze the direct influence of tax minimization strategy, tunnelling incentive, and bonus mechanism on transfer pricing decisions. Meanwhile, the indirect effect involves the audit committee as a moderating factor to explore their influence on transfer pricing practices. The data used in this research was derived from the annual reports of natural resource sector companies listed on the Indonesia Stock Exchange from 2020 to 2022. A total of 185 companies used the purposive sampling method, resulting in a sample of 146 data analyzed using WarpPLS 8.0. According to the research results, tax minimization directly influences transfer pricing. In contrast, tunnelling incentives do not affect transfer pricing, and audit committees moderate the influence of bonus mechanisms on transfer pricing.

Analisis Struktur Modal terhadap Kinerja Keuangan Perusahaan yang Terdaftar di Bursa Efek Indonesia Periode 2018-2022

"Capital Structure Analysis of the Financial Performance of Companies Listed on the Indonesian Stock Exchange for the 2018-2022 Period (Case Study of Pt Blue Bird Tbk)". under the guidance of Mrs. Dr. Milka Pasulu, SE., M.Si, and Fausiah, S.E., M.Si. This research aims to determine the effect of capital structure policy on the financial performance of PT Blue Bird Tbk. The research sample is the 31 December financial report regularly for 5 years in accordance with the research period required for the periods 2018, 2019, 2020, 2021 and 2022 (The financial report as of 31 December is a financial report that has been audited). The results of the analysis found that the company PT Blue Bird Tbk for the 2018 – 2022 period, where analysis of capital structure policies to measure financial performance obtained poor results. Regarding this, the values ​​obtained from DER, DAR, ROA and ROE measurements experience fluctuating percentages (rising and falling).

THE EFFECT OF CAPITAL STRUCTURE ON STOCK PRICES MEDIATED BY PROFITABILITY

This study aims to determine the effect of profitability and capital structure on stock prices, the effect of profitability on capital structure and the effect of capital structure on stock prices by mediating profitability. The approach in this study is quantitative research using secondary data in the form of financial reports published on the Indonesia Stock Exchange with data analysis techniques using SPSS. The research method used is purposive sampling with a sample of 28 Property & Real Estate Sector Companies Listed on the Indonesia Stock Exchange in 2019-2021. The results of this study indicate that (1) profitability does not affect stock prices, (2) Profitability does not affect capital structure, (3) Capital structure does not affect stock prices, (4) Profitability is unable to mediate the relationship between Capital structure and stock prices.

SPEED OF ADJUSTMENT OF CAPITAL STRUCTURE IN LISTED COMPANIES ON THE INDONESIA STOCK EXCHANGE

This study aims to analyze the speed of adjustment of capital structure in companies listed on the Indonesia Stock Exchange (BEI) by considering key variables such as SoA, Distance, Profitability (RoA), Growth, and Tangibility. SoA refers to the speed at which companies adjust to their target capital structure, and the results indicate that companies in Indonesia have not yet reached an optimal capital structure target. Distance reflects the difference between the actual and target capital structure, while profitability reflects the financial performance of the company. Growth and Tangibility refer to company growth and the level of tangible assets that can be pledged as collateral. This study involved 717 companies listed on the BEI from 2020 to 2022, with 2020 as the estimation period and 2021-2022 as the research period. The One Sample t-test with a test value of 1 and multiple linear regression analysis with classical assumption testing were employed to examine the relationship between these variables and SoA. Each variable that has been used in this study shows that the speed of adjustment of capital structure in companies listed on the Indonesia Stock Exchange is not at the optimal target. Of the five hypotheses made, it turns out that only three hypotheses were accepted while the other two hypotheses were rejected.

THE INFLUENCE OF CREDIT RISK, CAPITAL ADEQUACY AND OPERATIONAL EFFICIENCY ON THE PROFITABILITY OF BANKS LISTED ON THE INDONESIAN STOCK EXCHANGE

The purpose of this research is to determine and analyse the effect of credit risk, capital adequacy level and operational efficiency on the profitability of banking companies listed on the Indonesia Stock Exchange in 2019-2021. This study is a type of quantitative research that uses a descriptive design. In this study, researchers used secondary data obtained from the financial statements of banking companies. Researchers obtained a population of 46 banking companies listed on the Indonesia Stock Exchange in 2019-2021. The sampling technique uses initial public offering (IPO) sampling, which is a purposive method. Based on the sample characteristics, the authors found 31 banking companies with 93 financial data respondents. The data analysis technique is multiple linear regression using SPSS version 25. The results of this study indicate that credit risk has a negative and significant effect on profitability, capital adequacy has a positive and significant effect on profitability, operational efficiency has a negative and significant effect on profitability. Credit risk, capital adequacy and operational efficiency together have a significant effect on profitability. The result of the coefficient of determination (R2) of 0.627 shows that 62.7% of the variation in the adjusted R-squared is explained by variations in the factors Credit Risk (X1), Capital Adequacy (X2), Operational Efficiency (X3). While the remaining 37.3% is influenced by other unobserved factors affecting the profitability variable (Y). Therefore, further research using other variables is needed.

Linking Non-Financial Performance Determinants with IPO Underpricing: Evidence from Indonesia

Study Background/Rationale: This study aims to investigate the determinants that may influence the underpricing in Initial Public Offerings (IPO), a phenomenon found in stock exchange markets globally. Underpricing occurs when the intrinsic value is higher than the offer price set by the issuing firm. As a result, the share’s price skyrockets upon its market debut, offering an instant profit to investors, but potential damage to the company itself. Method: The focus of this study is the Indonesian stock market, which is seen as one of the leading growth economies among emerging markets and other developing economies, with accelerated GDP and having topped the list of Southeast Asian (ASEAN) countries regarding the number of IPOs. This research utilises multiple linear regression models and samples of firms that engaged in IPO in the Indonesia Stock Exchange (IDX) between 2018 and 2022. Findings: Using prospectus’ non-financial performance determinants, this study finds that underwriter reputation, public ownership, and firm size have a positive influence on underpricing; additionally, offering size and firm age have a negative and statistically significant influence on underpricing. Furthermore, this study adds to the existing research by emphasising how various determinants are linked to IPO underpricing in Indonesia. In addition, this study demonstrates that prospectuses provide relevant information to minimise information asymmetry and ex-ante uncertainty between firms and shareholders. Conclusion: Considering the present shortage of studies on the determinants of IPOs underpricing as a starting point, this empirical research can be valuable since it could enhance the existing research by providing latest data for comparisons across nations.

Determinants of investment satisfaction among young investors in Indonesia

Indonesian stock market is dominated by young and relatively inexperienced traders who often depend on the recommendations of influencers or bloggers in social media. This will then make them dependent and conduct frequent trading, which also means higher transaction costs that diminish their profits and increase their risks, thus decreasing investor satisfaction. Therefore, this study aimed to examine the impact of perceived investor sophistication and social media influence on investment satisfaction mediated with perceived investment return as a mediating element. The analysis focused on young investors aged 18 to 30 who have invested in shares on the Indonesian Stock Exchange for at least one year. A quantitative method was adopted using questionnaires to collect data from 344 respondents. Furthermore, data were analyzed using Structural Equation Modeling – Partial Least Square (SEM-PLS) with SMART PLS 4.0 software. The results showed that both perceived investor sophistication and investment return significantly affected investment satisfaction with beta coefficients of 0.416 and 0.358, respectively. Perceived investor sophistication also significantly influenced perceived investment return with a beta coefficient of 0.557. Additionally, social media influence significantly affected perceived investment return with a beta coefficient of 0.103. This social media influence did not directly impact investment satisfaction but through the perceived investment return, which was further found to fully mediate the impact of social media influence on investment satisfaction. Perceived investment return also partially mediated the effect of investor sophistication on Investment Satisfaction.

Banking Financial Performance as Influenced by Credit Risk, Liquidity and Bank Size In Conventional Banks Listed On The Indonesian Stock Exchange For The Period 2014 - 2023

This study aims to empirically examine the impact of credit risk, liquidity, and bank size on the financial performance of conventional banks listed on the Indonesia Stock Exchange (IDX) during the period 2014-2023, with a particular focus on the COVID-19 pandemic period. The research variables used include the Non-Performing Loan (NPL) ratio, Loan to Deposit Ratio (LDR), and bank size, while Return on Assets (ROA) is used as a financial performance indicator. This study uses the purposive sampling method to select a sample from 138 banks listed on the IDX, resulting in 9 banks that meet the established criteria. Data analysis was conducted using panel data regression with the Fixed Effect Generalized Least Square (GLS) model to address the issues of autocorrelation and heteroskedasticity found in classical assumptions. The research results show that credit risk (NPL) has a significant negative impact on ROA, while bank size and liquidity (LDR) have a significant positive impact on ROA during the pandemic. These findings highlight the importance of managing credit and liquidity risks as well as optimizing bank size to improve financial performance amid the challenging economic conditions caused by the pandemic. This study also suggests that the financial performance of banks can be more stable if supported by appropriate risk management strategies and good operational efficiency. The limitations of this study include a sample restricted to conventional banks in Indonesia and the specific conditions during the COVID-19 pandemic, which may affect the generalization of the results.

The mediating role of financial reporting aggressiveness in corporate tax avoidance strategies

Tax avoidance, often driven by managerial discretion, remains a critical issue in corporate governance due to its implications for financial transparency and regulatory compliance. This study investigates how Transfer Pricing, Thin Capitalization, Leverage, and CSR Disclosure – strategies employed by managers – affect Tax Avoidance and examines the mediating role of Financial Reporting Aggressiveness. Grounded in agency theory, the study analyzes data from 20 firms listed on the Indonesian Stock Exchange from 2019 to 2023 using PLS-SEM. The findings reveal that Transfer Pricing (β = 0.062, p = 0.002), Leverage (β = 0.046, p < 0.001), and CSR Disclosure (β = 0.061, p < 0.001) significantly increase Tax Avoidance, with Financial Reporting Aggressiveness acting as a mediator. However, Thin Capitalization does not significantly influence Tax Avoidance (β = 0.028, p = 0.422). These results suggest that managers exploit these mechanisms to minimize tax burdens, often at the cost of long-term shareholder interests. The study calls for stronger corporate governance and stricter oversight of CSR reporting and financial transparency to mitigate such practices.

Faktor yang Mempengaruhi Nilai Perusahaan pada Perusahaan Sektor Property & Real Estate yang Terdaftar di Bursa Efek

The purpose of this research is to test in reality whether profitability, leverage, and company size affect company value in real estate and property companies listed on the Indonesia Stock Exchange during the 2019-2023 period. This study uses secondary data, there are 10 companies that meet the research criteria many as 50 observation data. This study uses a quantitative method. The research variables used are profitability, leverage, and company size. This test uses multiple linear analysis and the eviews 13 software program. These results illustrate that profitability and leverage do not affect company value, while company size has a negative effect. according to the results of the regression test using (REM), the Determination Coefficient R² = 0.493716, indicating that 49.37% of company value is influenced by (ROAS), (DERA), and (UP), while the remaining 50.63% is explained by other factors.

The Effect of Trading Volume Activity, Profitability and Solvability on Stock Returns

This study aims to obtain empirical evidence regarding the effect of trading volume activity, profitability and solvency on stock returns. This study analyzed 122 samples of banking companies listed on the Indonesia Stock Exchange for the 2019-2022 period. The samples were selected through purposive sampling method and analyzed using multiple linear regression. The results of the study indicate that trading volume activity has no effect on stock returns, profitability has a positive effect on stock returns and solvency has a negative effect on stock returns. The theoretical implications of this study are able to confirm the signal theory based on the hypothesis tests conducted. The practical implications of this study provide knowledge and can be used as consideration for companies regarding financial management policies and as considerations for investors regarding investment decision making

Analisis kinerja keuangan menggunakan metode economic value added dan market value added pada perusahaan sub sektor perdagangan ritel barang primer yang terdaftar di Bursa Efek Indonesia

Financial performance analysis is a method of verifying that a company has properly and correctly applied the principles of financial implementation. This study will determine the financial performance of primary goods retail trade sub-sector companies listed on the Indonesia Stock Exchange for the 2019-2023 period using the economic value added and market value added methods. This research is qualitative descriptive. The research was conducted on retail trading companies of primary goods listed on the IDX during the research period and has published financial statements during the research period. The data was obtained by the documentation method. The results of the research from the five primary goods retail trading companies studied showed a volatile but positive EVA result (EVA>0), while MVA results were consistently positive (MVA>0). Only DAYA and RANC companies in 2019 and MIDI companies in 2023 had a negative MVA (MVA<0).

PENGARUH GOOD CORPORATE GOVERNANCE, KONSERVATISME AKUNTANSI DAN UKURAN PERUSAHAAN TERHADAP MANAJEMEN LABA (Studi Empiris Pada Perusahaan Sektor Properti Yang Terdaftar Di Bursa Efek Indonesia Tahun 2018-2022)

This study aims to analyze the effect of Good Corporate Governance, accounting conservatism, and company size on earnings management (empirical study of property sector companies listed on the Indonesia Stock Exchange 2018-2022). This research method is quantitative. The object of this research is the annual report and audit report of Real Estate and property companies listed on the Indonesia Stock Exchange (IDX) for 2018-2022. The sampling method of this research is purposive sampling, with techniques based on judgment sampling considerations. The data used in this study are secondary. The data collection method is the documentation method. The analytical tool used in this research is multiple regression analysis with the help of the IBM Statistical Package for Sciences (SPSS) program version 26. The result of this study is that Good Corporate Governance has no significant effect on earnings management. Accounting conservatism hurts earnings management. Company size does not affect earnings management.

CSR as a mediating to company characteristic, corporate governance, and firm value

Investors use the company's value as a benchmark to assess financial performance. Therefore, we must conduct research that uncovers factors capable of enhancing the company's value. Moreover, the majority of research conducted to date has primarily focused on direct testing. This research aims to explain the mechanism of comprehending factors in generating company value based on the signaling theory framework. This study investigates the effect of corporate social responsibility (CSR) practices, as well as mediators such as profitability and size, on firm value in manufacturing firms that have listed their shares on the Indonesia Stock Exchange (BEI). The data analysis was performed using the EViews application based on the collected sample of companies in the period 2019–2022. The results of this research indicate that the level of profitability, company size, and corporate governance effect firm value components directly. This study also suggests that, in line with the signaling theory stream of research, corporate social responsibility (CSR) acts as an important channel to bind the profitable and large-sized firms along with governance mechanisms through the utilization of signals by investors about influential variables such as profitability levels or company size; overall governance practices enacted.

Pengaruh Konservatisme Akuntansi, Inventory Intensity dan Sales Growth terhadap Tax Avoidance

The study aims to examine and analyze the effect of accounting conservatisme, inventory intensity and sales growth on tax avoidance in Consumer Non-Cyclicals companies listed on the Indonesia Stock Exchange for the period 2018 to 2022. This type of research is quantitative, using secondary data. The analysis methode is panel data regression test using Microsoft Excel and Eviews 12 aplications. The population in this study are all companies Consumer Non-Cyclicals sectors. The data collection technique in this was a purposive samples, from 122 study populations to 35 were used as research samples. The results of the study show Accounting Conservatisme in Consumer Non-Cyclicals from 2018 to 2022. The result show Accounting Conservatisme and inventory intensity has no. effect on Tax Avoidance whereas Sales Growth has an effect on Tax Avoidance.