Non-financial Companies In Indonesia Research Articles

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.

EFFECT OF CASH HOLDING ON FIRM VALUE WITH OWNERSHIP STRUCTURE AS A MODERATING VARIABLE IN INDONESIA COMPANY

The purpose of this study is to investigate the relationship between cash holdings and firm value in non-financial companies in Indonesia. This study places managerial ownership as a moderating factor for cash holding and firm value. The results show that cash holding has an effect on firm value and managerial ownership is able to moderate the relationship between cash holding and firmvalue. Moderation test results show that of the managerial ownership variable can moderate the relationship of cash holding and firm value, but this moderation relationship weakens where the greater the managerial ownership is, the weaker the relationship of cash holding to the value of the company. These results indicate that managerial ownership that is too large is feared to result in not being able to optimize the company’s cash management which then results in a decline in the value of the company.

ANALISIS PENGARUH VARIABEL FUNDAMENTAL DAN MAKROEKONOMI TERHADAP EKSPOSUR EKONOMI (Studi pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2015-2017 )

Globalization is growing rapidly, inter-state economic relations will become intertwined and increase flow of trade of goods and money as well as capital between countries. Changes in macroeconomic indicators occurring in other countries will indirectly impact the country’s economic indicators. Indonesia is one of the countries with the largest potential land for the development of industrial sectors. This is related to the many resources in Indonesia for both raw materials and labour. The results of Indonesia’s manufacturing industry increasingly propagate into world markets. The Central Statistic Agency (BPS) records the Indonesian economy in cumulative growth of 5.78 percent in 2013. The achievement of Indonesia’s economic growth is still far below China and India, however, in terms of economic growth, Indonesia is among the three major. The number of middle class citizens reached 36 million people and was relatively productive. While the manufacturing industry becomes an important component to economic exposure (study on the IDX-listed manufacturing company 2015-2017). There are 120 non-financial companies in Indonesia. The sampling technique in this study is nonprobability sampling (unrandomized withdrawal of samples). The data collection technique in this study is to use the documentation method published by the Indonesian Stock Exchange (IDX). The analysis of the research data includes descriptive statistical analysis, inferential statistical analysis and hypothesis testing.

CAPITAL STRUCTURE VARIABLES OF PECKING ORDER THEORY PERSPECTIVE IN INDONESIA STOCK EXCHANGE

ABSTRACT The purpose of study was to analyze variables that determine capital structure of nonfinancial companies in Indonesia based on pecking order theory. There are five variables observed namely, profitability, firm size, asset growth, asset structure, and liquidity. The population were non-financial companies listed on Indonesia Stock Exchange during 20102016 and published annual financial statements in 2009-2016. This study used census technique. Population consisted of 280 companies. Study used secondary data were data of annual financial statements during 2009-2016. Data obtained from BEI website and Indonesian Capital Market Directory. This study used multiple regression models for panel data to predict relationship between independent and dependent variables. Result showed that profitability, firm size, and asset structure had significant effect on capital structure. Other variables namely asset growth and liquidity had non-significant effect on capital structure. Study concluded that profitability is the determinant variable of capital structure on non-financial firms in Indonesia based on pecking order theory approach. The study also found that another capital structure determinant variable namely firm size and asset structure tends to follow trade-off theory. KEY WORDS Determinants, capital structure, Pecking Order Theory, economy.

FAKTOR-FAKTOR YANG MEMPENGARUHI KECENDERUNGAN PENERIMAAN UNQUALIFIED OPINION WITH MODIFIED PARAGRAPHGOING CONCERN

The purpose of this study is to investigate empirically the relationship between audit quality, company’s financial condition, prior audit opinion, company’s growth, company’s size, and debt default that influence the company’s acceptance of unqualified opinion with modified paragraph going concern. Data to be used is secondary data and were taken from Indonesia Stock Exchange official website. The research used 42 non-financial companies as sample by using purposive sampling method. This study used logistic regression to test the hypothesis. Data for this study comprises from the financial statement of non-financial companies in Indonesia over four year period of 2008-2011. The research finding can be summarized as follows. The result showed that the prior audit opinion has significant influence over unqualified opinion with modified paragraph going concern. On the other hand, audit quality, company’s financial condition, company’s growth, company’s size, and debt default don’t have influence on unqualified opinion with modified paragraph going concern.

THE DETERMINANTS OF INTELLECTUAL CAPITAL DISCLOSURE

The objective of this research is to obtain empirical evidence about the influence of company size, corporate governance, leverage, profitability, industry, listing age, type of auditor, and intellectual capital level as independent variables on intellectual capital disclosure as dependent variable in non-financial companies listed in Indonesian Stock Exchange. The population in this research is all listed non-financial companies in Indonesia Stock Exchange during 2013 to 2015. Sample is obtained through purposive sampling method, in which 185 listed nonfinancial companies in Indonesia Stock Exchange meet the sampling criteria resulting 555 data available are taken as sample. Multiple linear regression is used as the data analysis method in this research. The result of this research shows that three variables – company size, type of auditor, and industry statistically have influence on intellectual capital disclosure, while corporate governance, leverage, profitability, listing age, and level of intellectual capital statistically do not have influence on intellectual capital disclosure of listed non-financial companies in Indonesia.

Role of Dividend Policy in Relation to Profitability, Liquidity and Firm Value in Non-Financial Companies in Indonesia

Good corporate value is a company achievement to increase shareholders' wealth. Investors use financial statements as one of the information to assess whether investment is feasible or not. The purpose of this study is to look at the role of dividend policy as a mediating variable between the relationship of profitability, liquidity and firm value. The population in this study was 463 non-financial companies listed on the Stock Exchange in 2014-2017 with a sample of 56 companies. The researcher used panel data regression as a data analysis technique.The results of the study show the effect of profitability, liquidity, dividend policy on firm value have a positive significant effect. In addition, profitability and liquidity influence the value of the company better if through dividend policy. This research contributes to the importance of dividend policy in relation to profitability, liquidity, and firm value for investors to make their investment decisions.

ANALISIS PENGARUH MODERASI KUALITAS AUDIT PADA HUBUNGAN HARGA PASAR SAHAM DAN GOODWILL DI INDONESIA

The study on intangible assets, goodwill in particular, becomes an interesting topic to reinvestigate since question about the relevance value is often discussed recently. This research aims to test the relevance value of goodwill information and see the effect of moderation variable of audit quality on the relevance value of goodwill. The research was conducted on the companies listed in Indonesia Stock Exchange with regression analysis. The value model of stock exchange as the function from Book Value and Earning was used and the content analysis was conducted when assessing the goodwill of company.With 71 non-financial companies in Indonesia as the samples, this research shows the result that the goodwill has a significant negative relation on stock price. It was also proven that the audit quality improves the relevance value of goodwill. This improvement makes the role of auditor important in assessing the accurate goodwill value.

Financial Reporting Quality, Debt Maturity, and Chief Executive Officer Career Concerns on Investment Efficiency

Abstract The purpose of this research is to investigate the effect of financial reporting quality, debt maturity, and CEO career concerns on investment efficiency in Indonesia. This study used a sample of 680 observations from non-financial companies in Indonesia during the period from 2012 to 2015 using panel regression. The results show that financial reporting quality does not affect investment efficiency. This might be because the quality of financial reporting has no effect in the overinvestment scenario. Under this condition, financial reporting quality cannot mitigate the occurrence of overinvestment due to the high level of agency problems. However, financial reporting quality has a significantly positive effect under condition of underinvestment, which means that financial reporting quality can reduce the occurrence of underinvestment because it can be used to attract external funds so that companies can avoid underinvestment conditions. The debt maturity has a negative effect on investment efficiency. In particular, debt maturity has no effect on underinvestment, but it does have an effect on overinvestment, because by using short-term debt, the company has funds that can be used to make investments to enable overinvestment. CEO career concerns have no effect in underinvestment conditions because companies do not experience funding constraints, so the CEO career concerns do not mitigate underinvestment. Whereas in conditions of overinvestment, career concerns have a positive effect. Thus, CEO career concerns can reduce the occurrence of overinvestment.

Factors Affecting Dividend Policy on Non-Financial Companies in Indonesia

Objective - The objective of this study is to obtain empirical evidence and analyse the factors that affect the dividend policy of non-financial firms listed on the Indonesian Stock Exchange. The factors studied include liquidity, leverage, growth, price/earnings, size, earnings per share, price to book ratio, ownership, age of the firm, floating rate, profitability, and free cash flow. Methodology/Technique - The sampling method used in this study is purposive sampling, in which the samples are taken based on suitable characteristics of the population to generate representative samples. The total number of samples in this study are 105 non-financial firms listed on the Indonesian Stock Exchange between 2011 and 2015. The hypothesis is tested by using multiple regression analysis. Findings - The results of this study show that earnings per share, price to book ratio, and floating rate affect the dividends policy while liquidity, leverage, growth, price/earnings, size, ownership, age of the firm, profitability, and free cash flow has no effect on dividend policy. Novelty - The study findings contribute the companies to establish an appropriate dividend policy to satisfy the interest of both parties that is companies future growth and its investors. Type of Paper: Empirical Keywords: Dividend Policy; Price to Book Ratio; Ownership; Age of the Firm; Floating Rate; Free Cash Flow. JEL Classification: G32, G35, M41.

VARIABEL-VARIABEL PENENTU STRUKTUR MODAL PERUSAHAAN NON KEUANGAN DI BURSA EFEK INDONESIA

Purpose of study is to analyze variables that determine capital structure of non-financial companies in Indonesia. There are seven variables observed namely company's growth rate, profitability, firm size, asset structure, liquidity, non-debt tax shield and business risk. The population were non-financial companies listed on Indonesia Stock Exchange during 2010-2014 and published annual financial statements in 2009-2014. Study used census technique. Population consisted of 324 companies. Data analysis technique used was multiple regression model for panel data. The results show that profitability, firm size and non-debt tax shield (NDTS) had significant effect on capital structure. Study concluded that profitability and non-debt tax shield are determinant variables of capital structure on non-financial firms in Indonesia based on trade-off theory approach while firm size tends to follow other capital structure theory.

Pengujian Pecking Order Theory terhadap Perusahaan Surplus Non Keuangan di Bursa Efek Indonesia

. The importance of knowing that a firm is profitable, can be seen whether the company surplus or the otherwise. The study related to pecking order theory for surplus firm is still rare, since almost the majority of research in pecking order theory in Indonesia is focused only on one or more sectors. Among the several capital structures, the chosen is pecking order theory, because this theory is a dynamic theory in accordance with the market which is not perfect compared with other capital structure theory. The purpose of this study is to find out whether the non-financial companies listed on the BEI follow the pecking order theory, whether the surplus companies follow the pecking order theory and whether the surplus companies use the surplus that has to pay the company's debt. The research method using E-views 9 software, where the sample selection using purposive sampling method. The findings from the research of non-financial companies in Indonesia do not follow pecking order theory, surplus companies do not follow pecking order theory to pay the debt in advance and surplus companies do not pay debts using surplus owned.

ANALYSIS OF MARKET TIMING TOWARD LEVERAGE OF NON-FINANCIAL COMPANIES IN INDONESIA

ABSTRACTThis study aimed to examine the effect of market timing on leverage on non-financial compa-nies in Indonesia. Market timing was tested on the hot and cold market conditions. Hot and cold markets are determined by the monthly market to book ratio. A hot (cold) market occurs when the average market to book ratio of a particular month is above (below) the value of the moving average of the monthly market to book ratio. This study also aimed to test whether non-financial companies in Indonesia persistently applied leverage policies. This study used two research models. The first model was a panel data with a sample size of 77 non-financial companies listed on the Indonesian Stock Exchange from 2002-2013.The second model was a cross section data with a sample size of 157 non-financial companies that conducted their IPO in Indonesia from 2003-2013. The dependent variable in both the research models was leveraget (levt). The independent variables were markett and leveraget-1 (levt–1). The control variables were profitabi-lityt-1 (proft-1); and sizet-1. The results of this study indicated that market timing affected the lev-erage of non-financial companies listed on the Indonesian Stock Exchange. However, market timing did not affect the leverage of non-financial companies that had their IPO in Indonesia. The non-financial companies in Indonesia were not persistently applying a leverage policy. The capital structure of non-financial companies in Indonesia changed because of the influence of variable profitability and size (which supports the pecking order and trade off theory).Keywords: market timing theory, leverage, hot and cold market, market to book ratio