Public Companies In Indonesia Research Articles

Kepemimpinan Transformational, Keterlibatan Kerja, Motivasi Kerja, dan Kepuasan Kerja Mempengaruhi Kinerja Karyawan

This study aimed to know the relationship between transformational leadership, work engagement and work motivation against job satisfaction to enhance the employee performance in one of the public company. The methodology used was Structural Equation Modelling (SEM) by giving questionnaires to 330 operational employee of public company in Indonesia as a research sample. The results showed that transformational leadership did not have direct influence toward job satisfaction. While, work engagement and work motivation had direct influence toward and could enhance the job satisfaction. Moreover, transformational leadership had direct influence against employee performance. Work motivation did not have any direct influence on employee performance, and job satisfaction had influence on the employee performance enhancement. Therefore, it can be concluded that job satisfaction was influenced by work motivation and work engagement, whereas employee performance was influenced by transformational leadership and job satisfaction. 
 Keywords: Transformational Leadership, Work Motivation, Work Engagement, Job Satisfaction, Employee Performance.

Tipe Pengungkapan Lingkungan dalam Laporan Tahunan Perusahaan Publik di Indonesia

This descriptive study explores the types of pro-environmental behavior that public companies in Indonesia disclose in their annual reports. In general, environmental disclosure is one of the company's channels to send signals to stakeholders about the company's attitude and commitment to environmental protection. In this study, the types of environmental disclosure for 160 public companies listed on the IDX were identified by content analysis. The results show that most of the sample companies committed greenwashing for the disclosure of their pro-environmental commitments in the annual reports. This indicates that environmental disclosure by public companies in Indonesia tends to be symbolic and oriented solely to regulatory compliance. Keywords : E nvironmental D isclosure ; P ro- E nvironment B ehavior ; G reenwashing ; P ublic C ompany.

The Influence of Regulation and Financial Performance on The Disclosure of Corporate Social Responsibility and Corporate Reputation Moderated by Ownership Structure

Objective - A study by Ernst and Young (2010) found that 84% of public companies believed that Corporate Social Responsibility (CSR) was an activity that had a positive impact on companies. However, only 11% of those companies disclosed their CSR in their annual reports. This article presents the findings of a study examining the effect of CSR regulation and corporate financial performance, as measured by corporate liquidity, profitability, leverage and firm value, on the disclosure level of the CSR of public companies in Indonesia, and its impact on corporate reputation. Methodology/Technique - Hypothesis tests with multiple regression were used with nonfinancial corporate categories listed on the Indonesian Stock Exchange between 2010 to 2018. Purposive sampling was used, with results from 217 sampled companies and 1953 datasets used in the model. Findings - The study reveals that there is a significant difference in the CSR disclosure of all corporate categories after the regulation of CSR was enacted as a mandatory in 2012. Financial performance measured through Cash Flow from Operations (CFO) and Debt to Equity Ratio (DER) had a positive significant influence on CSR disclosure. However, Return on Assets (ROA) and firm value have no influence. Family ownership as a moderating variable had a negative influence and weakened the association between CFO and CSR disclosure, whereas foreign ownership as a moderating variable had a negative influence and weakened the association between ROA and CSR disclosure. CSR disclosure had a positive influence on corporate reputation from the stakeholders’ perception in terms of awards received by the company and the individual stock price index as an alternative measurement for reputation. Novelty - The impact of CSR disclosure on corporate reputation was analysed based on the alternative measurement of reputation. Ownership structure consisting of family ownership and foreign ownership were taken as the moderating variables in the correlation between financial performance and the disclosure of CSR. Type of Paper: Empirical. JEL Classification: M14, M41. Keywords: Corporate Social Responsibility; Regulation; Financial Performance; Moderation; Ownership Structure Corporate Reputation. Reference to this paper should be made as follows: Wilestari, M.; Syakhroza, A; Djakman, C.D; Diyanty, V. (2021). The Influence of Regulation and Financial Performance on The Disclosure of Corporate Social Responsibility and Corporate Reputation Moderated by Ownership Structure, Accounting and Finance Review, 5(4): 13 – 22. https://doi.org/10.35609/afr.2021.5.4(2)

Measurement of Return on Asset (ROA) based on Comprehensive Income and its Ability to Predict Investment Returns: an Empirical Evidence on Go Public Companies in Indonesia before and during the Covid-19 Pandemic

Purpose - The concept of recognizing all inclusive income, which is used by IFRS and Indonesian SAK, is the basis for presenting other comprehensive income in the income statement. This change in format became the idea of developing a financial performance measurement.Methodology - Testing the effect of attributable comprehensive income ROA and attributable ROA net income on future cash flows and net income, as a proxy for the ability to provide future returns, and applying them in measuring performance before and during the Covid-19 pandemic.Findings - ROA net income is better able to predict future investment returns. ROA comprehensive income has more relevance value, when only other items of comprehensive income that have the potential to be realized are included. In assessing performance, users are advised to keep using the ROA of the net income version, and when using the ROA of the comprehensive income version, it is advisable to include only OCI which will be reclassified. The financial performance of companies in many industrial sectors experienced a decline during the Covid 19 pandemic using two ROA measures.Novelty - Development of ROA formulation by including other comprehensive income and profit attribution, so far ROA is only based on net income.

Measurement of Return on Asset (ROA) based on Comprehensive Income and its Ability to Predict Investment Returns: an Empirical Evidence on Go Public Companies in Indonesia before and during the Covid-19 Pandemic

Purpose - The concept of recognizing all inclusive income, which is used by IFRS and Indonesian SAK, is the basis for presenting other comprehensive income in the income statement. This change in format became the idea of developing a financial performance measurement.Methodology - Testing the effect of attributable comprehensive income ROA and attributable ROA net income on future cash flows and net income, as a proxy for the ability to provide future returns, and applying them in measuring performance before and during the Covid-19 pandemic.Findings - ROA net income is better able to predict future investment returns. ROA comprehensive income has more relevance value, when only other items of comprehensive income that have the potential to be realized are included. In assessing performance, users are advised to keep using the ROA of the net income version, and when using the ROA of the comprehensive income version, it is advisable to include only OCI which will be reclassified. The financial performance of companies in many industrial sectors experienced a decline during the Covid 19 pandemic using two ROA measures.Novelty - Development of ROA formulation by including other comprehensive income and profit attribution, so far ROA is only based on net income.

Financial Performance, Exchange Rate, and Firm Value: The Indonesian Public Companies Case


 
 
 Transactions between countries require a stable exchange rate. When the exchange rate of the country experiences uncertainty, then this will influence the company’s financial performance and even affect the company’s market value. This study aims to look for the direct influence of the company’s financial performance as an independent variable and the firm value as a dependent variable within the investor perspective, also including the exchange rate factor as a moderating variable. Investors could probably learn about information on the ups-and-downs of the Indonesian rupiah against foreign currencies before their investment decisions, even though financial performance substantially influences the company’s market value. The sample in this study was 50 companies within four years of observation. Data processing was carried out by the Eviews statistical application. The results showed that the financial performance, which is proxied by the capital structure, affects firm value, but not profitability. The impact of exchange rate moderation also occurs in the relationship of capital structure and firm value, while the moderation effect on profitability and firm value is not proven. This study provides information that exchange rates influence investment interests upon investors’ analysis of the financial performance of the capital structure, but not profitability.
 
 

LEVEL TEKNOLOGI, FOREIGN OWNERSHIP, DAN IMPLEMENTASI INTERNET FINANCIAL REPORTING

The progress of internet-based communication technology has influenced the pattern of information delivery in the business world. Internet Financial Reporting (IFR) has become a medium of communication between companies and investors in delivering company financial reporting information. For this reason, this research is needed to identify what factors can influence IFR implementation at the Indonesian public company. This study aims to identify whether the level of technology and foreign ownership can affect IFR implementation in public companies in Indonesia. A total of 87 public company samples were used to test the research hypothesis. Research data were analyzed using multiple regression models. The results found indications that the level of company technology has a positive influence on the implementation of IFR in public companies in Indonesia. However, foreign ownership does not provide an effect for IFR implementation in public companies in Indonesia.

PENGARUH PENERAPAN XBRL TERHADAP KETEPATAN WAKTU PELAPORAN KEUANGAN (Studi Empiris pada Indeks LQ45 di Bursa Efek Indonesia Tahun 2016-2018)

This study aims to provide empirical evidence about the effect of XBRL implementation on the timeliness of financial reporting of public companies in Indonesia registered in the LQ45 index. The research method uses panel data with 99 observations from 2016 to 2018. The results show that the implementation ofXBRL has a positive and significant impact on the timeliness offinancial reporting, in contrast to the Debt to Equity ratio used to control company leverage has a positive andinsignificant impact on accuracy financial reporting time, as well as Return on Assets used to control the profitability of the company has no significant effect with a negative impact on the timeliness of financial reporting of public companies in Indonesia that are listed on the LQ45 index.

The Influence of Regulation and Financial Performance on the Disclosure of Corporate Social Responsibility and Corporate Reputation Moderated By the Ownership Structure

A study by Ernst and Young (2010) found that 84% of public companies believe that CSR is an activity that has a positive impact on the companies. However, only 11% of those companies disclose their CSR in their annual reports. The motivation underlying CSR disclosure in the voluntary situation is performance impression, whereas on the mandatory situation it is due to legitimacy pressure (Meng et al., 2014). CSR activities should be part of companies' activities and operations, which are well planned and have an impact on the companies' budget. The result of researches about the relation of CSR and financial performance are mixed (Huang and Watson, 2015). There is a classic endogeneity problem, whether firms are successful because they are socially responsible or whether CSR is merely something that successful firms do. Diyanty (2014) mentions that the ownership composition structure in Indonesian companies is dominated by family-owned (more than 50%) structure. The influence and impact of CSR is indirectly intended to increase corporate reputation, and in turn, the owners' reputation (Boivie et al., 2016). CSR activities are utilized to develop a reputation and competitive advantage for the company and the owners in the long run. This article reports on a study examining the effect of Corporate Social Responsibility (CSR) regulation and corporate financial performance, measured by corporate liquidity, profitability, leverage and firm's value, on the disclosure level of CSR of public companies in Indonesia. The impact of disclosure was analyzed from the corporate reputation based on the alternative measurement of reputation. Ownership structure consisting of family ownership and foreign ownership were taken as the moderating variables on the correlation between financial performance and the disclosure of CSR. Keywords: Corporate Social Responsibility, Regulation, Financial Performance, Corporate Reputation.

Perbandingan Reaksi Pasar atas Seasoned Equity Offering dengan Tujuan Investasi dan Membayar Utang

This research compares market reaction to seasoned equity offering (SEO) with investment purpose and debt repayment purpose. The research was triggered by pecking order theory’s. The sample of this research is 62 Indonesian public companies that carried out SEO during the 2013 to 2019 period. The SEO announcement date is used as event date. The event window is five days around the event date. Abnormal return is measured by market-adjusted model. The result of independent sample t-test shows that market reaction to SEO with investment purpose is better than market reaction to SEO with debt repayment purpose. Average cumulative abnormal return (CAR) of SEO with investment purpose is 0.038 and for SEO with debt repayment purpose is minus 0.006. The difference is statistically significant (p-value=0.011). Therefore, it is concluded that markets response to additional equity offering, in this case using SEO, depends on the purpose of the SEO.
 Keywords: Seasoned Equity Offering; Market Reaction; Abnormal Return; Market-Adjusted Model.

ANALISIS KESIAPAN MENERAPKAN INTEGRATED REPORTING PADA INDEKS LQ-45

This study provides an analysis related to the appropriateness of annual reports of companies registered at LQ-45 index compared to <IR> Framework. It aims to identify the readiness of the companies to apply integrated reporting. Elements needed to develop further will be also identified. Total of 76 questions are used in this study and referred to Berndt et al. (2014). Secondary data are obtained from annual reports of public companies in 2013 and included in the LQ-45 index per February-July 2014.The results of this study indicate that about 62,22% of companies are quite ready to apply integrated reporting. These companies have the average level of integrated reporting according to <IR> Framework. It also reflects the potency to develop the current reporting. In addition, companies require to evaluate their reporting such as: (1) business model; (2) governance; (3) basis of preparation & presentation and (4) strategy & resource allocation.On the basis of this study, 5 companies are recommended to consider integrated reporting as their reporting model in the future. The companies are SMGR, BMRI, PTBA, ADRO dan BBNI with the highest accodance to <IR> Framework. Those companies also need to consider principles of materiality and conciseness. Other issues can be prioritized to apply integrated reporting include financial and mining sectors.This study gives the understanding of the importance of integrated reporting as corporate reporting model. It can be considered for public companies in Indonesia to apply integrated reporting. Lastly, it can contribute to the development of integrated reporting in Indonesia

SIMULACRA DAN RETORIKA DALAM SUSTAINABILITY REPORT: ADAKAH KONTRIBUSI PERAN AKUNTANSI?

This study aims to evaluate the extent to which the accounting and sustainability report used by companies as a tool and rhetoric media to build a positive image and gain stakeholders legitimacy. The research is based on sustainability report content analysis from five public companies in Indonesia. Sustainability report content was confirmed by the socio-ecological activities that were actually carried out by the company around the reporting period. The results of the analysis are justified based on the concept of simulacra from Jean Baurillard, a French philosopher. The results showed that 98.43 percent of positive sustainability issues were disclosed in the sustainability report, but for negative issues, only 12.5 percent were disclosed. In the perspective of Jean Baudrillard's thinking, sustainability report contains four levels of simulacra, in which management accounting has a role in the process of creating simulacra and the development of rhetoric.Keywords: accounting, sustainability report, simulacra, rhetoric, Jean Baudrillard.

THE EFFECT OF COMPANY ACTIVITIES ON DEBT COMPOSITION AND PROFITABILITY ON PUBLIC COMPANIES IN INDONESIAN FOOD AND BEVERAGE INDUSTRY

This study aims to analyze the effect of company activities which projected in the Total Asset Turn Over (TATO), Inventory Turn Over (ITO), and Fixed Asset Turn Over (FATO) variables on Debt Composition (DAR) and Net Profit Margin (NPM) on Indonesian Public companies in food and beverages sector during 2013-2019. The research data is sourced from 21 issuers, 7 issuers do not include financial statements and losses, therefore the sample size is 14 issuers. Data were analyzed using multiple linear regression analysis and path analysis. The results showed that simultaneous company activities: TATO, ITO and FATO have significant effect on DAR and NPM. DAR has no significant effect in mediating the influence of TATO, ITO and FATO on NPM. Overall, DAR played a role in weakening TATO's influence on NPM. As for ITO and FATO, DAR played a role in strengthening ITO's influence and FATO's influence on NPM.

MODEL ALTMAN SCORE DAN GROVER SCORE : MENDETEKSI FINANCIAL DISTRESS PADA PERUSAHAAN RITEL DI INDONESIA

This study aims to detect financial distress of listed retail companies at Indonesian Exchange using Altman Score and Grover Score Model. The samples are go public companies in Indonesia, which consist of 20 retail companies. Structural Equation Model (SEM) was employed as the analysis method using PLS software. The result shows that Altman Score Model has positive impact toward financial distress. High score on Altman Score indicates poor performance of a company. Further, Grover Score model has positive impact toward financial distress on retail companies which are go public circa 2015-2018. Higher score of grover score indicates a company has been suffering financial distress. Lastly, we inference that Altman Score Model is more accurate in detecting financial distress compared to Grover Score Model

Examining The Excess Cash Holdings As An Indicator of Agency Problems

This research aims to examine the implications of excess cash holdings on firm value based on agency theory. Data were obtained from a total sample of 1828 non-financial public companies in Indonesia, with 672 exceeding normal cash holdings using the panel regression techniques. The result showed that excess cash holdings have a negative effect on the firm value which is stronger for more concentrated ownership, for more dispersed ownership and for more financially difficult firms. Overall the empirical finding showed that excess cash holdings acts as a significant indicator of agency problems.

Determinants of Debt Policy for Public Companies in Indonesia

Determinants of Debt Policy for Public Companies in Indonesia

Leverage as Determinant of Corporate Social Responsibility Disclosure in Public Companies in Indonesia

Leverage as Determinant of Corporate Social Responsibility Disclosure in Public Companies in Indonesia

The Effect of Agency Costs on Hedging Policy in Indonesian Public Companies

The purpose of this study is to examine the effect of agency costs on company hedging policies. This study use the concept of hedging policies derived from synchronizing foreign exchange derivatives based on agency theory and hedging with foreign exchange debt based on balancing theory. The novelty of this research is the application of the synthesis of agency theory and balancing theory as indicators of hedging policies. The hedging policy based on foreign exchange derivatives is synchronized with the hedging policy based on foreign debt. The population was companies listed on the Indonesia Stock Exchange (IDX) in 2012-2017. Using the purposive sampling method, 78 companies for each year from 2012 - 2017 were obtained with a total of 468 data. This research used a panel data regression method. The hypotheses were tested with the Hausman Test, which shows the best research model is the Fixed Effect Model. The results of the study concluded that financial distress and underinvestment had a significant positive effect on hedging policies, while business risk did not affect hedging policies because most companies had relatively low foreign sales. The findings of this study have theoretical implications that support agency and balancing theory.

Efek Moderasi Size dalam Pengungkapan Sukarela: Bukti Empiris di Bursa Efek Indonesia

The purpose of this study is to analyze the determinants of voluntary disclosure (VD) by using three non-interaction models and one interaction model. This paper observes four VD’s determinants (ownership dispersion, managerial ownership, audit committee, and independent commissioners), one control variable (capital structure), and one moderating variable (total asset). By using panel data analysis (225 observations) on the Indonesia Stock Exchange (IDX), it is found that the total asset can be used as the moderating variable in explaining the determinants of VD in IDX. Furthermore, the interaction model shows better results than non-interaction models. Managerial ownership, independent commissioners, and ownership dispersion show high consistency with the tested hypotheses. This is different from the audit committee which does not support the hypothesis. These findings implicate managerial policies that need to consider good corporate governance in supporting the voluntary disclosure of public companies in Indonesia. Strengthening external validity in the form of replication, developing research models, and refining research methods is needed to strengthen the managerial implications. Testing the robustness by simulating various substitute proxies to optimize the generalization of research findings needs to be considered in future studies.

Idiosyncratic tail risk and stock return in Indonesia

Idiosyncratic tail risk explains the financial crisis which happened due to idiosyncratic risk. It could also be used as a factor for asset pricing, making it necessary to be further studied since it could help protect investors from extreme incidents that could bring loss. We investigate the effect of idiosyncratic tail risk to the stock return in Indonesia. The data of daily stock price of 662 public companies in Indonesia that was registered in Indonesia stock exchange (IDX) are used during the period of 2006-2018. We include the firms that have at least 10 trading days in a month for providing enough observation to determine tail index to get idiosyncratic tail risk. First of all we using portfolio approach to find the effect of tail risks to the stock return is used. The results show that idiosyncratic tail risk has negative effects on the stock return in portfolio level. However, idiosyncratic tail risk does not have effects on stock return in individual firm level. JEL Classification: G12, G23 How to Cite: Murningsih, S., Firdaus, M., & Purwanto, B. (2020). Factors influencing Indonesian rural banks’ credit disbursement. Jurnal Keuangan dan Perbankan, 24 (2), 241-251. DOI : https://doi.org/10.26905/jkdp.v24i2.3778