Non-financial Companies In Indonesia Research Articles

GENDER DIVERSITY AND FINANCIAL DISTRESS: EVIDENCE FROM NON-FINANCIAL COMPANIES IN INDONESIA

This research aims to empirically test the influence of board gender diversity on the likelihood of financial distress in non-financial companies in Indonesia. The percentage of women on the board of directors and board of commissioners is used as a proxy for the board gender diversity variable. Financial distress is measured using the Altman Z-score ratio. 2553 total observations were used from 2018-2022 to measure the effect of board gender diversity on the likelihood of distress. The results of logistic regression show that the presence of women on the board of directors and board of commissioners reduces the possibility of financial distress. The research results also show that the increase in supervision is directly proportional to the number of members of the board of directors and board of commissioners. The results of these findings can be input for decision makers regarding regulations on the number of women in company top management.

ESG Performance on Investment-Cash Flow Sensitivity: Case Study of Non-Financial Companies Listed on the Indonesian Stock Exchange

This research aims to analyze the influence of ESG performance on Investment - Cash Flow Sensitivity of non-financial companies listed on the Indonesia Stock Exchange for the 2017-2022 period. ESG performance was measured using ESG ratings from Sustainalytics' ESG Research and Ratings, obtained from the Bloomberg Terminal database. Testing process was carried out on 50 registered non-financial companies in Indonesia for six years with a total of 300 observations obtained through purposive sampling techniques. The results of research employed panel balance data and the OLS method found that there are still phenomena Investment – Cash Flow Sensitivity occurred and good ESG performance could reduce Investment – Cash Flow Sensitivity. Thus, it can be indicated that companies implementing good ESG performance can more easily obtain funding sources.

The Influence of Financial Report Quality, CEO Career Concern, and CEO Gender on Investment Efficiency with Good Governance as a Moderating Variable

This study aims to examine the effect of Financial Report Quality, CEO Article Career Concern, and CEO Gender on Investment Efficiency with Good Governance as a Moderating variable. This research method uses Moderated Regression Analysis (MRA) with Eviews statistical tools. This study uses a sample of 680 observations of non-financial companies in Indonesia during 2022 using panel regression. The results showed that the quality of financial statements has no effect on investment efficiency. The quality of financial statements that has no effect is possible because the overinvestment scenario also has no effect. In this condition, the quality of financial statements has not been able to mitigate the occurrence of overinvestment due to the high agency level. Meanwhile, in underinvestment conditions, the quality of financial reporting has a significant positive effect, which means that the quality of financial reporting can reduce underinvestment because the quality of financial reporting can be used to attract external funds so that the company avoids underinvestment conditions. The career concern variable of the president director has no effect on investment efficiency, this is possible because in underinvestment conditions it also has no effect because most sample companies do not experience funding constraints so that the career concern of the president director does not mitigate underinvestment. Meanwhile, in overinvestment conditions, it has a positive effect. Thus, the concern of the CEO can reduce the occurrence of overinvestment. Good governance variables affect investment efficiency.

The Influence of Financial Report Quality, CEO Career Concern, and CEO Gender on Investment Efficiency with Good Governance as a Moderating Variable

This study aims to examine the effect of Financial Report Quality, CEO Career Concern, and CEO Gender on Investment Efficiency with Good Governance as a Moderating variable. This research method uses Moderated Regression Analysis (MRA) with Eviews statistical tools. This study uses a sample of 680 observations of non-financial companies in Indonesia during 2022 using panel regression. The results showed that the quality of financial statements has no effect on investment efficiency. The quality of financial statements that has no effect is possible because the overinvestment scenario also has no effect. In this condition, the quality of financial statements has not been able to mitigate the occurrence of overinvestment due to the high agency level. Meanwhile, in underinvestment conditions, the quality of financial reporting has a significant positive effect, which means that the quality of financial reporting can reduce underinvestment because the quality of financial reporting can be used to attract external funds so that the company avoids underinvestment conditions. The career concern variable of the president director has no effect on investment efficiency, this is possible because in underinvestment conditions it also has no effect because most sample companies do not experience funding constraints so that the career concern of the president director does not mitigate underinvestment. Meanwhile, in overinvestment conditions, it has a positive effect. Thus, the concern of the CEO can reduce the occurrence of overinvestment. Good governance variables affect investment efficiency.

The Influence Of The Board Of Commissioners, Audit Committee, and Ownership On The Performance Of Non-Financial Companies in Indonesia

The Influence Of The Board Of Commissioners, Audit Committee, and Ownership On The Performance Of Non-Financial Companies in Indonesia

Pengaruh Faktor Internal terhadap Nilai Perusahaan

This research examines the factors affecting the firm value of non-financial companies in Indonesia. The independent variables in this study are dividend policy, profitability, firm size, leverage, firm growth, liquidity, and audit committee, while the dependent variable is firm value. This study uses data from non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2020. The sample data were tested using a multiple regression model, and the sample selection process used a purposive sampling technique so that a sample of 78 companies was obtained from a sample of 312 data. The results of this study indicate that the variables of profitability, firm size, and leverage positively affect firm value; the dividend policy, firm growth, and audit committee variables hurt firm value, while liquidity variables do not affect firm value.

The Effect of Profitability, Capital Structure and Cash Dividend on Firm Value of Public Non-Financial Companies in Indonesia During the Period Before and During the Covid-19 Pandemic (2018-2021)

This study aims to test and prove empirically the effect of the independent variables namely profitability, capital structure and cash dividends on the dependent variable, namely firm value with liquidity and firm size as control variables. The research method used is quantitative research in the form of a correlational study using firm financial report panel data taken at www.idx.co.id. The sampling technique in this study was purposive sampling with a total sample of 116 non-financial companies listed on the Indonesia Stock Exchange for the 2018-2021 period. The data analysis method used is multiple linear regression using the eviews application. The results of the study found that profitability, cash dividends, liquidity and firm size had no effect on firm value in the period before and during the Covid-19 pandemic. Capital structure has an effect on firm value in the period before and during the Covid-19 pandemic. Adjusted R2 value shows that 64.7% of firm value can be explained by profitability, capital structure, cash dividends, liquidity and firm size, the remaining 35.3% is influenced by other variables not examined in this study.

Comparison of financial performance and firm value before and after mergers and acquisitions of non-financial companies in Indonesia

This study was conducted to see whether there is a difference between mergers and acquisitions on financial performance and firm value or not. A total of 31 companies conducting mergers and acquisitions in 2016-2018 listed on the Indonesia Stock Exchange were sampled in this study. The occurrence of decline in profitability, liquidity, activity ratios and firm value as well as an increase in solvency ratios after mergers and acquisitions became the impetus for conducting research. The measuring tool of profitability is Net Profit Margin (NPM). The measuring tool of liquidity is the Current Ratio (CR). The measuring tool of Solvency is the Debt-to-Equity Ratio (DER). The measuring tool for the activity ratio is Total Asset Turnover Ratio (TATO). And the instrument for measuring the value of the company is the stock price. This study used the Wilcoxon-Signed Rank Test to test the hypothesis. The results showed that there was a difference in the Current Ratio (CR) after the merger and acquisition. However, mergers and acquisitions make no difference in Net Profit Margin (NPM), Total Asset Ratio (TATO), Debt-to-Equity Ratio (DER), and Firm value.

The Determinants of Carbon Emission Disclosures with Proper Rating as a Mediating Variable in Non-Financial Companies in Indonesia

The Determinants of Carbon Emission Disclosures with Proper Rating as a Mediating Variable in Non-Financial Companies in Indonesia

Faktor-Faktor yang mempengaruhi Nilai Perusahaan Non Keuangan yang terdapat di Bursa Efek Indonesia

This study aims to examine the factors that affect the value of companies in non-financial companies in Indonesia. There are seven independent variables in this study, including: dividend policy, managerial ownership investment opportunity, leverage, profitability, firm size, earnings per share.Fifty eight companies listed during the period 2014-2016 in Indonesia were selected as samples using purposive sampling method. And data analysis is done by using multiple linear regression method.The results of this study indicate that there is a positive effect of dividend policy, profitability, company size, earnings per share on the value of the company. While investment opportunity, managerial ownership, and leverage have no effect on company value.

Determining Factors by using Hedging Policies Derivative Instruments in Non-Financial Companies in Indonesia

Determining Factors by using Hedging Policies Derivative Instruments in Non-Financial Companies in Indonesia

The Effect of Enviromental, Social, Governance (ESG) Disclosure on Company’s Profitability & Value in The Sri-Kehati Index 2015-2020

The aim of this research is to examine the impact of environmental, social, and governance (ESG) disclosure on company profitability and value in the SRI-KEHATI index from 2015 to 2020. The methodology used is a quantitative technique based on secondary data. Statistical software was used to do the data analysis. The study data is derived from the Thomson Reuters ESG Database and the financial reports of seven Indonesia Stock Exchange nonfinancial firms chosen with purposive sampling method. The research includes three independent factors (environmental score, social score, and governance score), as well as control variables (leverage) and dependent variables (profitability with return on equity as a proxy and company value with Tobin’s Q as a proxy). This research concludes that company with good corporate governance had a beneficial effect on both dependent variables in this research. Meanwhile, the environmental score has a negative impact on return on equity and company value. In addition, the social score has a negative impact on company value and gives no effect on return on equity. Stakeholders may utilize the implications of this finding to assess the company's performance. The outcome of this research can be used to present a successful model for non-financial companies in Indonesia listed in the SRI-KEHATI Index to implement the role of ESG disclosure in performance.journal. The authors must follow the instructions given in the document for the papers to be published. You can use this document as both an instruction set and as a template into which you can type your own text.

Mekanisme Tata Kelola Internal dan Pengungkapan Antikorupsi Perusahaan di Indonesia

This study aims to empirically examine the relationship between internal governance mechanisms and corporate anti-corruption disclosure in Indonesia. Internal governance mechanisms tested are independence of board, audit committee, ownership concentration, and family ownership. This research is a cross sectional study with a quantitative approach, the data used is secondary data. The sample of the study is 100 non-financial companies in Indonesia which are listed on Indonesia Stock Exchange with the largest market capitalization in 2019. This study finds that the internal governance mechanism on the part of audit committee has a positive influence on corporate anti-corruption disclosure. This shows that the role of audit committee has a major influence increasing transparency in preventing corrupt practices in the company environment.

HEXAGON FRAUD IN FRAUDULENT FINANCIAL STATEMENTS: THE MODERATING ROLE OF AUDIT COMMITTEE

This paper aims to examine the effect of the fraud hexagon on fraudulent financial statements (FFS), and the audit committee (AC)'s role in moderating this relation. The research model uses logit regression with data on all non-financial companies in Indonesia ranging from 2016 to 2020, which were obtained from annual reports and Thomson Reuters. The sensitivity test uses a coefficient difference test based on the Overall Manipulation Index. This study shows that the probability of FFS is higher when the manager has the stimulus, opportunity, and capability. On the other hand, rationalization and collusion do not affect the probability of FFS. Interestingly, managers with high ego do not commit fraudulent financial reporting. The AC can minimize the stimulus, opportunity, and capability of the manager to make FFS. On the other hand, the AC cannot minimize the rationalization, ego, and collusion network of the manager. Theoretically, this study contributes to developing the situational action theory literature related to FFS and the fraud hexagon framework. This study provides academic implications that the arguments and empirical research findings that examine the behavior of managers in committing fraudulent financial reporting can be built not only based on the proxies used, but also by referring to the fraud theoretical framework.

The Effect of Derivative Transactions on the Value Relevance of Earnings through Corporate Earnings Management in Indonesia

This study aims to examine and analyze the effect of derivative transactions on earnings management, the effect of earnings management on value relevance of earnings, and the effect of derivative transactions on value relevance of earnings. This study uses data from non-financial companies in Indonesia for the period 2013-2017 with 43 sample of companies. In this study, earnings management is calculated based on the Jaggi model. The value relevance of earnings is calculated based on Ohlson's model. The results show that derivative transactions have a positive effect on earnings management. Earnings management negatively affects the value relevance of earnings. Derivative transactions are not proven to have a negative effect on the value relevance of earnings. Derivative transactions, especially those with non-hedging criteria, show a high tendency towards earnings management activities. Derivative transactions have a positive effect on earnings management. With the negative influence of derivative transactions and earnings management activities on the value relevance of earnings, the commissioner or audit committee needs to carry out an internal oversight function in reporting financial statements, especially in non-financial companies that carry out derivative transactions.

Financial Distress Phenomenon of Non-financial Companies in Indonesia

Penelitian ini bertujuan untuk memberikan gambaran mengenai kondisi financial distress pada masing-masing sektor perusahaan non keuangan di Indonesia periode 2014-2018. Sampel penelitian sebanyak 1.865 yang diperoleh melalui metode purposive sampling. Teknik analisis data menggunakan analisis statistik deskriptif. Hasil penelitian menunjukkan bahwa perusahaan di sektor infrastruktur, utilitas dan transportasi serta berbagai sektor industri mengalami financial distress. Perusahaan di sektor pertanian, sektor industri dasar dan kimia, serta sektor pertambangan berada di wilayah abu-abu atau kondisi yang rentan mengalami financial distress. Perusahaan di sektor properti, real estate dan konstruksi bangunan, sektor industri barang konsumsi serta sektor perdagangan, jasa dan investasi berada dalam kondisi keuangan yang baik dan memiliki kemungkinan kecil mengalami financial distress.

Are Corporate Governance Mechanisms, Corporate Strategy and Corporate Financial Characteristics Related to Earnings Management?

This study aims to examine the mechanism of corporate governance and several factors of corporate financial characteristics towards earnings management. Corporate governance mechanisms such as an independent board, board size, and audit committee size are expected to be able to limit management actions in carrying out earnings management. While the company's financial characteristics such as corporate strategy, company age, operating cash flow, company growth, profitability, company size and leverage are predicted to affect the earnings management. In previous studies, testing of corporate governance mechanisms and corporate financial characteristics of earnings management has been carried out, but there are still inconsistencies or debates from the results of previous studies so this study reexamined the existence of corporate governance mechanisms and corporate financial characteristics of earnings management in non-financial companies in Indonesia in period 2016-2018. The research problem in this study is whether corporate governance mechanisms such as independent board, board size, audit committee size and company financial characteristics such as corporate strategy, company age, operational cash flow, company growth, profitability, company size and leverage affect earnings management? Keywords: earnings management, corporate strategy, audit committee size, company age, operating cash flows

Ukuran Dewan Komisaris, Konsentrasi Kepemilikan, dan Leverage Perusahaan

This purpose of this study is to examine the effect of board size, and the moderating effect of ownership concentration on corporate leverage in non-financial companies in Indonesia listed on the Indonesia Stock Exchange in 2014-2016. This study uses multiple regression analysis and MRA (Moderated Regression Analysis) to test the research hypothesis. The results showed that board size had a significant negative effect on leverage. In addition, it can also be seen that the moderating effect of ownership concentration weakens the negative effect of board size on company leverage.

The influence of uncertainties on leverage and investment decisions of non-financial firms in Indonesia

This study aims to analyse the effect of each uncertainty (firm-specific, market, capital asset pricing model (CAPM)-based, and economic policy uncertainty) on the leverage and investment decisions of non-financial companies in Indonesia. The variables used in this study are leverage, investment, firm-specific uncertainty, market uncertainty, CAPM-based uncertainty, economic policy uncertainty, sales growth, cash flow, Tobin’s Q, and firm size. Researchers used panel data on 224 non-financial companies listed on the Indonesia Stock Exchange from 2009–2018 with variable related data for at least three consecutive years. This research uses the least-squares research method. The results indicate that the four variables used in this study have a significant influence, in groups of variables, on leverage and investment decisions in each non-financial sector, particularly the manufacturing sector, and will remain constant if the four uncertainties are combined in the same situation.

StrukturKepemilikan Institusional, Koneksi Politik dan Kebijakan Dividen Perusahaan di Bursa Efek Indonesia

The purpose of this study was to determine whether institutional ownership, political connections, and institutional ownership on political connected companies affects the dividend policy of Indonesian companies listed on the Indonesian Stock Exchange from 2012 - 2017. The sample used in this study were totaled to 255 non-financial companies in Indonesia with total observations of 1530. The model used on this study was the Tobit regression model. The results show that institutional ownership has the tendency to not pay dividends, whereas political connections on companies tends to support the payment of dividends to the shareholders. Furthermore, this study found that when there is the presence of interactions between political connections and institutional ownership in the company, political connections tends to have a positive impact towards dividend policy, yet institutional ownership has an increasingly significant negative effect on dividend policy.