Public Manufacturing Companies Research Articles

Why Steve Jobs Avoided CSR: The Impact of CSR on Innovation

This study aims to explore the relationship between corporate social responsibility (CSR) and innovation. We differentiate between two types of CSR: ESG (environmental, societal and governance), which addresses remote stakeholders’ interests, and employee-related CSR, which addresses internal stakeholders’ interests. Fixed-effects panel analyses on approximately 1,000 U.S. public manufacturing companies for the 2001-2012 period reveals that while increasing employee-related CSR exhibits a positive impact on firm innovation, increasing ESG leads to significantly lower innovation output. An instrumental variable approach and a difference-in- differences approach both confirm that increasing ESG indeed leads to decreased innovation output. Furthermore, supplementary analyses rule out alternative explanations such as resource allocation or shifting to quality innovation. We contend that although employee-related CSR enhances firm innovation, ESG may distract attention and create cognitive complexity for managers and employees. Our study suggests that firms should carefully design and implement their stakeholder strategies.

FAKTOR-FAKTOR YANG MEMPENGARUHI PENERIMAAN OPINI AUDIT GOING CONCERN PADA PERUSAHAAN PUBLIK SEKTOR MANUFAKTUR

The purpose of the study is to investigate over the acceptance of going concern audit opinion which can be performed by observing company’s financial condition, current ratio, quick ratio, cash flow from operations, return on assets, debt to equity, long term debt to total assets, debt to total assets, audit quality, prior audit opinion, debt default and opinion shopping. Samples are obtained by sampling pur-posive method. Data for this study comprises of the information from the financial statement of the public manufacturing companies in Indonesia over the four year period 2005 until 2008, and the result obtained 260 observations. The logistic regression used to examine the factors that are predicted to affect the probability of acceptance of going concern audit opinion. The result of this research is that com-pany’s financial condition (Revised Altman Model), return on assets, debt to total assets and prior audit opinion are significantly affect the probability of acceptance of going concern audit opinion. On the other hand, current ratio, quick ratio, cash flow from operations, debt to equity, long term debt to total assets, audit quality, debt default and opinion shopping, do not so.

REKASI PASAR TERHADAP KARAKTERISTIK PERUSAHAAN DAN KANTOR AKUNTAN PUBLIK

The purpose of this study is to investigation over the influence of profitability, firm size, registered public accountant switch, auditor working period, audit opinion, reputation of registered public accountant against cumulative abnormal return. This study uses 65 samples of public manufacturing companies listed in Indonesia Stock Exchange from 2007 to 2010 which acquired using sampling purposive method, and obtained from annual report and audit report for each company. This study also use multiple regression analysis.The result of this research obtained that profitaibility and reputation of registered public accountant have a positive in influence cumulative abnormal return. While firm size, registered public accountant switch, auditor working period, and audit opinion have no impact on cumulative abnormal return.

FACTORS AFFECTING THE SOCIAL RESPONSIBILITY DISCLOSURE PRACTICE ON GO PUBLIC MANUFACTURING COMPANIES

This study examines four factors that influence the practice of corporate social and environmental disclosure. The purpose of this study was to determine the effect of company size, type of industry, profitability, and family firm toward the practice of corporate social and environmental disclosure. This research is a quantitative study. The sample of these study are 48 go public manufacturing companies in Indonesia Stock Exchange that have announced annual reports for 2009 - 2013. From these samples that can be processed are 25 manufacturing companies that have announced annual reports for 2009 - 2013. Results of this study stated that the size of the company (net sales), type of industry, profitability (ROA), and family firm have significant positive effect on social and environmental disclosure practices of the company. Finally, through this research is expected that go public manufacturing companies can improve the practice of corporate social and environmental disclosures.

Factors Affecting Capital Structure of Go Public Manufacturing Companies in BEI (Indonesia Stock Exchange)

This study aims to determine and analyze the effect of company’s size, business risk, asset growth, and profitability on capital structure in manufacturing companies listed on the stock exchange of Indonesia year 2014- 2016, either partially or simultaneously. In addition, this study also reviewed variables used due to differences in previous research results. The type of data used is secondary data in the form of financial statements obtained from the Indonesian Capital Market Directory 2014-2016 period. The sampling technique used cluster proportional random sampling or group sample. This method is used because listed manufacturing companies listed in Indonesia Stock Exchange are heterogeneous, sampling to represent each element listed in Indonesia Stock Exchange based on business type, so that 25 companies in this research are obtained. Variable in this research there are two that is; Independent variables include firm size, business risk, asset growth, and profitability. As for the dependent variable is the capital structure in the manufacturing company. This research is analyzed by using multiple regressions. Based on the results of the study showed that during the study period partially firm size (SIZE) have a positive and significant effect and profitability (NPM) has a negative and significant effect. While business risks (DOL) and asset growth (GROW) have no effect on capital structure. The magnitude of this effect is 0.096 or 9.7%. While the rest of 90.4% influenced by other factors outside the study or outside the regression equation.

The effect of environmental performance and accounting characteristics to earnings informativeness

The objective of this empirical study is to analyze the influence of environmental performance and company’s accounting characteristics to earnings informativeness proxied by earnings response coefficient (ERC) on manufacturing companies listed on Indonesia Stock Exchange and consistently follow the PROPER assessment in 2010–2014. One of the company’s considerations is to create the green environment reflecting its environmental measures, drawing investors to respond to the company’s environmental performance. The data were obtained from Indonesian Capital Market Directory (ICMD), the Indonesia Stock Exchange homepage, the company’s annual reports, the decree of the Minister of Environment. The samples used in this research are 27 go public manufacturing companies listed on Indonesia Stock Exchange that consistently follow the PROPER in 2010–2014. The sampling technique used was the purposive method. This research uses multiple regression analysis. The results show that the environmental performance and profitability have a positive influence to earnings informativeness, while leverage has a negative influence to earnings informativeness. Growth opportunities as a control variable has a positive effect on earnings informativeness. This research has proved that the environmental performance is crucial through observing the investors’ reaction in the capital market.

PENGARUH UKURAN PERUSAHAAN, RESIKO BISNIS DAN PERTUMBUHAN AKTIVA TERHADAP STRUKTUR MODAL PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI TAHUN 2005-2007

A decision on a capital structure (ratio between share and loan capitals) done by a financial manager is an important decision. This is due to its influence upon risks undergone and profits expected by shareholders. These analyses are used to solve the problem which is whether the size of the firm, the business risks, the growth of assets, the profitability and the ownership structure influence the capital strusture or not?
 The population in this research is the go public manufacturing sector in the Indonesia Stock Exchange for years 2005 until 2007. The sample is defined by cluster propotional random sampling to get a representative sample on each sector. There are 33 go public manufacturing companies selected as sample for this research. There are two variables in this research, the independent variable and dependent variable. The independent variable comprises firm size, business risk, growth of assets, and profitability; and for the dependent variable is the capital structure of go public manufacturing companies in the BEI. This research was analyzed using multiple regressions.
 This research found the empirical results that partially, SIZE influences positive significant and NPM influences negative significant to the capital structure of go public manufacturing companies in the Bursa Efek Indonesia. While the result of partial test for DOL and GROW showed that partially they didn’t influence significantly to the capital structure. The result for the simultaneous test showed that there is influence between SIZE, DOL, GROW, and NPM with the capital strusture of go public manufacturing companies in the Bursa Efek Indonesia. The influence is 0,197 or 19,7%. The other 80.3% influenced by another factors outside the research or the regression model.

The effect of IFRS implementation on earnings quality and corporate value (an empirical study on go public manufacturing companies)

IFRS Implementation on Earnings Quality and Corporate Value needs to be paid attention. This is due to the fact that in the era of globalization, the companies require an international accounting system that can be applied internationally in every country, or a necessary harmonization of international accounting standard in order to produce comparable financial information, ease in conducting competitive analysis and good relationship with customers, suppliers, investors, and creditors. The purpose of this research is to obtain empirical evidence on the effect of IFRS implementation on earnings quality and corporate value. The samples used are manufacturing companies listed on the Indonesia Stock Exchange, during the period of one year before the implementation of IFRS and one year after the implementation of IFRS. The results of this study indicate that there are differences in earnings quality and corporate value, either after or before the implementation of IFRS. IFRS can provide quality reporting and better business environment.

Operating performance of Chinese manufacturers in the wake of ERP implementation

This paper develops a model of firm operational performance in the aftermath of an ERP implementation based upon subjects' perceptions. We obtained a unique set of data for 198 public Chinese manufacturing companies involved in enterprise resource planning ERP implementations from 1993 to 2006. We collected fundamental data from a survey of these companies, and then analysed their ERP implementations and post-implementation operational performances. We use subjects' perceptions to model firm operational performance as a function of effective business process improvement BPI that is related to effective ERP implementation and post-implementation systems integration. These intervening factors, in turn, are modelled as a function of both the level of CEO involvement and the extent of business process reengineering BPR. We find that operational performance is positively associated with BPI, which is positively related to perceived ERP effectiveness and post-implementation systems integration, and that these are positively related to both the level of CEO involvement and the extent of BPR. Finally, competition and organisational change factors, along with ERP intensity variables are found to be effective controls in the underlying conceptual model.

Analyzing financing strategy of public manufacturing companies

PurposeThis paper focuses on Taiwanese‐funded manufacturing companies operating in mainland China to analyze the factors affecting funding decision‐making before and after initial public offering (IPO).Design/methodology/approachThis research investigates the impact and usefulness of various paths in the data system by using the structural equation modeling (SEM) to examine how the overall economy aspect and the basic aspect before IPO affect the initial returns (IRs) during the IPO and the debt ratio (DR) volatility after listing.FindingsThe results show that the IR, percent change of stock index, and exchange rate volatility before IPO are negative associated with the DR after IPO. The age of IPO companies is positive associated with the DR after IPO. This research also finds that the interest rate volatility before and after IPO have no direct effect upon companies' financial strategies after IPO, but may indirectly affect companies' financial strategies after IPO through the IRs, which conform with the market information feedback hypothesis proposed by van Bommel and Vermaelen.Research limitations/implicationsThis paper investigates Taiwanese‐funded traditional manufacturing companies in mainland China. The paper obtains the sample from the Taiwan Stock Exchange from 1990 to 2005; electronic companies and samples lacking complete data are eliminated. Finally, the sample consists of 122 companies from traditional manufacturing sectors. The results may be applied to companies not from high‐tech sectors and emerging markets only. The incentive of debt financing would be lower for IPO companies with high IRs, percentage changes of stock index, and exchange rate fluctuation before listing. The paper suggests further research can investigate IRs for establishing an optimal capital structure to minimize financing costs and appreciate company value when choosing financing strategies. The new pubic companies will infer the IR and future capital structure through market interest before listing. It suggests future research may be directed at companies from financial and high‐tech sectors, and may apply the methodologies to developed economies.Practical implicationsIt is suggested that IPO companies may closely examine to determine the performance of stock market, tendencies of exchange rate movement, as well as IRs in order to establish an optimal capital structure to minimize financing costs and appreciate company value. Besides, the new pubic companies will infer the IR and future capital structure through market interests before listing.Originality/valueThis research implicated that IPO companies should fully understand the stock market circumstance and exchange rate volatility tendencies. Then, the new pubic offering companies will be able to infer the IR and future capital structure through market interest to judge relative financing costs of manufacturing companies.

Pengaruh Tingkat Pengungkapan Sukarela Dalam Laporan Tahunan Terhadap Koefisien Respon Laba

The objectives of the research is to find out the impact of luntaty disclosures on earnings response coefficient (ERC). The populati n of this study was public manufacturing companies listed at Jakarta Stoc Exchange in 2005 period. There were 31 manufacturing companies meet th criteria was chosen as sample. This research is explanatory research, and th data analysis were treated as cross-section. Earning persistence, systematic risk company growth, leverage and company size which in prior stOies described ERC variation, in this research used as controlling vaable. The research hypothesis were tested using the multiple regression analysis. The result ofthis research before and after use the which described ERC variation show that voluntary disclosure had significantly negative influence on earnings response coefficientKeywords: Voluntary Disclosures, Earnings Response Coeficient

Measuring technological capability and performance

The relation between technological capability and firm performance is more complex than what is generally assumed. Researchers have not been able to consistently find empirical support for this apparently ‘simple’ relation. The objective of this study is to illustrate the theoretical and empirical complexity of this relation and explain why the use of different measures can lead to dramatically different results. In this study, we analyse the technological capability–performance relation in 201 large US public manufacturing companies. A variety of patent statistics and a measure of research & development (R&D) intensity are used as indicators for technological capability. The following six measures of performance are used as dependent variables: return on assets, return on equity, return on sales, market value, market value added, and economic value added. The results vary substantially, depending on which measures are used for the independent and dependent variables. A detailed understanding of precisely what each measure represents and the shortcomings of each measure is needed to explain why these differences exist. We conclude by discussing the effectiveness of a variety of technological capability measures using patent citations, and illustrate why a measure of R&D spending and the total number of patents are usually not valid measures of a firm's technological capability.

Sales forecasting practices of Egyptian public enterprises: survey evidence

The sales forecasting practices of Egyptian public manufacturing companies are reported on and discussed in this paper. The survey revealed the major drawbacks in conducting the forecasting function in Egypt. It shows that few qualified forecasting personnel are available and computers are not used in sales forecasting by most companies. Egyptian companies tend to prepare individual-products forecasts in both monetary and physical units; forecasting is mainly used for the domestic market, and they are reluctant to produce long-term forecasts. Egyptian practitioners are less familiar with the objective than the subjective techniques. The more statistically sophisticated the forecast technique, the lower reported level of usage. Both production planning and budgeting were the major area of use. The lack of top management support and the turbulence change of the company’s market were among the top sales forecasting implementation problems in Egypt. Some recommendations are provided to improve forecasting practices in Egyptian industry.

Corporate and industry effects on business unit competitive position

We partition the variances of market shares, which we use as surrogates for competitive position, of the business units of all public manufacturing companies available in the Trinet data base into industry factors, corporate parent-specific factors, and business unit-specific factors. Our results differ somewhat from Rumelt's (1991), which decomposed variances in profitability. We find that corporate parent effects on market share are considerably greater than zero when lines of business are defined more narrowly, when small business units are included, and when firms are medium-sized. Our results suggest that the relative importance of corporate, industry, and business unit effects depends on the types of criteria, such as the level of industry aggregation, whether small business units are included, and firm size, that are used to construct samples. Copyright © 2000 John Wiley & Sons, Ltd.

Corporate and industry effects on business unit competitive position

We partition the variances of market shares, which we use as surrogates for competitive position, of the business units of all public manufacturing companies available in the Trinet data base into industry factors, corporate parent-specific factors, and business unit-specific factors. Our results differ somewhat from Rumelt's (1991), which decomposed variances in profitability. We find that corporate parent effects on market share are considerably greater than zero when lines of business are defined more narrowly, when small business units are included, and when firms are medium-sized. Our results suggest that the relative importance of corporate, industry, and business unit effects depends on the types of criteria, such as the level of industry aggregation, whether small business units are included, and firm size, that are used to construct samples. Copyright © 2000 John Wiley & Sons, Ltd.

Client risk and recent changes in the market for audit services

Some writers (Berton, 1995, B1; Holland et al., 1993, 76) have suggested that because of increasing litigation costs, public accounting firms are refusing to supply audit services to public companies which are perceived as high-risk. Our paper examines the proportions of certain types of risky clients audited by Big Six and other independent audit firms, and whether the relative proportions have changed during a period of increasing litigation. We examined the audit market for public manufacturing companies with total assets less than $50 million. In the initial period of observation, we found that Big Six audit firms were more likely than small audit firms to have clients who were in financial distress and clients who were in high-tech industries. However, over a period of increasing litigation costs, we observed a significant reduction in the likelihood that Big Six audit firms would audit such clients.