State-owned Companies Research Articles

Pengaruh Kompleksitas Perusahaan, Leverage, & Kompensasi Terhadap Fee Audit Pada Perusahaan BUMN 2017-2021

Audit Fees are a reward the auditor receives from the client entity in connection with providing audit services. Public accountants are very important in balancing information asymmetry and conflict of interest. Payment of this audit fee is based on a contract between the company and a public accounting firm based on an engagement letter. With this audit fee, the auditor must fulfill his duties and responsibilities. The research problem formulation is whether there is a simultaneous and partial effect of company complexity, leverage, and compensation on audit fees. The primary objective of this study was to examine the impact of company complexity, leverage, and compensation on audit fees within state-owned companies that are listed on the Indonesia Stock Exchange during the period spanning from 2017 to 2021. The present study employs a quantitative research methodology. The population under investigation in this study comprises state-owned companies that were listed on the Indonesia Stock Exchange during the period of 2017-2021. A total of 13 companies were selected as research samples. The employed methodology utilizes panel data regression as the primary analytical technique. The employed data analysis techniques encompass the descriptive statistical test, classic assumption test, panel data regression model testing, and hypothesis testing. The findings of this study suggest that there is a simultaneous impact of company complexity, leverage, and compensation on audit fees. The presence of partial functions is associated with a detrimental impact of company complexity on audit fees. The utilization of leverage and the provision of compensation positively impact the determination of audit fees. It is anticipated that future researchers will possess the capacity to broaden the scope of their research objectives and incorporate additional variables beyond those initially considered. It is anticipated that corporations will furnish comprehensive information regarding the audit fee

BIM Implementation for Storing, Sharing and Capturing Knowledge in Indonesian Project Construction

BIM as a digital representation of assets has been used to facilitate design, construction, and operation process to form a reliable basis for decisions. While knowledge is part of the company's assets, knowledge will be maintained in the system so that it may be recalled if needed if BIM is used to document, store, and distribute knowledge more easily. This study will determine how BIM adoption supports knowledge storage, knowledge share, and knowledge capture in Indonesian construction projects. Data was obtained by interview and analysed using qualitative method. The results showed that large state-owned construction companies in Indonesia had implemented BIM-based knowledge management to assist organisational knowledge management process, especially in knowledge capture, storage and share on several projects, and reduce knowledge loss due to time lapse. Finding also shows that knowledge created in a project is centralised in one model, and lessons or knowledge can be grouped with BIM user preferences.

Comparative Analysis of The Performance of State-Owned and National Private Companies in The Banking Sub-Sector Using the RGEC Model

The goal of this study was to evaluate the profitability and soundness of state, national, and foreign private banks using the one-way ANOVA test and analyze the impact of RGEC ratios on profitability using the panel data regression statistical test using the random effect model. Issuers in the banking sub-sector from 2017 to 2022 make up the study's sample. The simultaneous panel data regression results (prob. F of 0.00) show that RGEC ratios have an influence on profitability as proxied by ROA. Partially, the independent variables NPL, PDN, and GCG have an influence on ROA, while LDR and CAR have no effect on ROA. The results of the one-way ANOVA test show that there are differences in bank profitability and health between state, national, and foreign private banks. Post-hoc analysis shows that state banks have better profitability than national and foreign private banks.

Tackling Cross-Border Subsidies in the EU: The Need to Build on a Promising Start Part 1

In two recent rulings regarding anti-subsidy duties on imports from Egypt, the EU General Court confirmed that cross-border subsidies can be countervailed under the Basic Anti-Subsidy (AS) Regulation. According to the General Court, Belt and Road subsidies granted by China to subsidiaries of Chinese state-owned companies outside China can legitimately be attributed to the government of third countries through application of international law principles. This article looks at the General Court’s findings and the implications for further AS investigations against crossborder subsidies. Cross-border subsidies, General Court, Basic AS Regulation, Belt and Road Initiative, countervailing duties, SCM Agreement, ILC Articles

Effect of Growth Opportunity And Good Corporate Governance of Accounting Prudence in State-Owned Companies

This study aims to determine the effect of Growth Opportunity, Independent Commissioners and Audit Committee on Accounting Prudence in State-Owned Enterprises (BUMN) companies listed on the Indonesia Stock Exchange (IDX) for the 2019-2021 period. The data used in this research is secondary data. The sample consists of 27 state-owned companies. The sampling technique in this study used purposive sampling. The analytical tool used to test the hypothesis in this study is multiple linear regression analysis with the help of the SSPS version 26 program. The results of the model feasibility test show that the Growth Opportunity, Independent Commissioner and Audit Committee variables together have no effect on Accounting Prudence. The results of this study contain implications that the results of this study can be a consideration for companies in applying the principles of Prudence Accounting in order to prevent information asymmetry between agents and principals and avoid opportunistic behavior of managers. The results of this study can also be taken into consideration in determining agency costs.

Corporate governance and performance of state-owned enterprises in a least developed economy

Purpose: The main objective of the study was to investigate how corporate governance affects the performance of state-owned enterprises (SOEs) in a least developed economy.Design/methodology/approach: Both primary and secondary data from nine state-owned companies that operated between 2001 and 2016 were analysed in the study. The investigation used a quantitative methodology. Fixed effects, random effects and generalised method of moments (GMM) estimations were used to conduct regression analysis.Findings/results: The findings show that corporate governance characteristics affect SOE performance in a least developed economy. The performance of SOEs is influenced favourably by board structures, director tenure, reduced government ownership and leverage. Conversely, increased state ownership leads to subpar performance. The study also reveals that the presence of civil servants and directors with political affiliations in government-controlled companies has a negative effect on enterprise value.Practical implications: The use of multiple case studies to investigate SOEs in their natural setting has given some insights for both professional managers and policymakers interested in developing corporate governance frameworks to improve SOEs value in least developed economies, particularly in sub-Saharan Africa, even though the results are limited in terms of statistical generalisation because the study was based on a single country.Originality/value: The study fills a gap in the literature about how SOE performance is affected by corporate governance in least developed nations, where such research is underdeveloped.

Contending fan engagement strategies in China's translocal economy: The case of Tibetan cyber star Ding Zhen

The Ding Zhen phenomenon saw a young Tibetan herder from Litang County of Sichuan Province gain a spotlight within China’s new-media celebrity industry, introducing a mode of translocal connectedness through a fan economy. The mode of connectedness features social engagement between Ding Zhen’s extra-local fans and a state-owned company in Litang with aims to profit from the influence of this cyber star to develop ethnic tourism, in line with the trend of using technological marketing solutions for poverty alleviation. Interacting with Litang’s media tactic, Ding Zhen’s fan communities on two Super Topics (超话) on Weibo compete to define proper fan behaviour and champion the rights and subject personhood of their idol beyond the limits of his localized identity. At the same time, the company aligns with the state’s stance on fan disciplining as a way of regulating fan friction and activism. The challenges faced by fans within the current media climate as they attempt to uphold fan subculture, as well as those faced by a highland ethnic town grappling with the complexities of unbalanced spatial development, serve as the underlying factors driving translocal cooperation and conflicts. In their intertwined situations, both extra-local fans and the local community seek empowerment, navigating their tensions towards a dynamic of accommodation.

The Role of Corporate Social Responsibility in the Sustainability of Tourism Village

The COVID-19 pandemic that has hit the world has an impact on health and other sectors such as education, social culture and the global economy. Tourism, which is used as the locomotive of economic development, is the sector that is most affected, especially in Badung district because it sees people's livelihoods depending on the tourism sector. To improve the economy, the government has made efforts to deal with the phenomena that occur due to the impact of the Covid 19 virus, including by encouraging and motivating state-owned companies (BUMN) to continue to contribute to improving the welfare of the community by remaining consistent and sustainable in implementing Corporate Social Responsibility (CSR) programs. To correlate the phenomena that occur, especially in the field of funding and assistance through CSR in the tourist village area, and companies in the concept of Community Based Tourism (CBT) and also to grow the community's desire for entrepreneurship in relation to supporting the needs of tourists with a target towards sustainable tourism villages. This paper analyzes the implementation of corporate CSR in the development of sustainable tourism villages in Badung district by upholding the principles of corporate social responsibility (CSR). The analysis was carried out using mixed methods, namely measuring quantitatively and strengthening the measurement results by sharpening the results with qualitative methods in developing and sustainability tourist villages in Badung regency.

Peran Entrepreneurship Dalam Memajukan Perekonomian Indonesia

This study aims to: 1). Provide a new perspective on entrepreneurship studies and its relation to the progress of the Indonesian economy. 2). Provide evaluation materials to stakeholders so that entrepreneurship can contribute to the progress of the Indonesian economy. The method in this research is library research be- cause the object of research can only be answered through library research. This study uses qualitative data and secondary data sources. The results of this study indicate that entrepreneurship plays a role in dynamizing the economic activities of families, communities, regional and state-owned companies. The number of entrepreneurs in Indonesia is still small compared to its population, therefore efforts to increase the number of entrepreneurs must continue. There are four factors that need to be considered in the devel- opment of entrepreneurship, namely: access to capital, the role of innovation, entrepreneurship training and the role of the government in creating a good business climate. Facts show that entrepreneurs play a major role in improving the quality of life of individuals, communities and countries. Entrepreneurship is also one of the determinants for creating a prosperous society and country.

Impact of economic policy uncertainty on audit fees: Evidence from Chinese listed companies

High economic policy uncertainty in China amplifies operational risks and managerial pressure for businesses while driving the demand for independent audits. However, previous studies have paid limited attention to the impact of economic policy uncertainty on audit fees. This study aims to examine the impact of economic policy uncertainty on audit fees and to test whether the internal control quality will moderate this association at the firm level. This study employs the economic policy uncertainty index to measure uncertainty. The paper examines 3,469 Chinese A-share listed companies from 2007 to 2020, using STATA 17 for fixed-effects regression on panel data. The results show a robust positive association between economic policy uncertainty and audit fees (β = 0.0302, p < 0.001). However, this association is weaker for companies with better internal control quality (β = –0.0229, p < 0.001), suggesting that effective internal controls can mitigate the impact of economic policy uncertainty on audit fees. Furthermore, the findings indicate that this positive association is weaker for state-owned companies compared to non-state-owned companies (β = –0.0170, p < 0.001). At the same time, the study does not establish a significant difference in the positive association between TOP 10 and non-TOP 10 accounting firms. This study examines the adverse effects of economic policy uncertainty from the perspective of audit fees. The results have implications for stakeholders, including the need for companies to establish effective internal controls and good government-business relationships and for governments to reduce economic policy uncertainty and increase transparency in their policies.

American Economic Stakeholder Sentiments towards Chinese Firms’ Innovation Capability: The Role of State Political Environment and Firm Ownership

Outward foreign direct investments from innovative Chinese firms pose challenges to American stakeholders regarding how to balance economic gains and nationalistic sentiment. Relying on the stakeholder management framework, we analyze the dual nature of American economic stakeholders’ sentiments towards innovative Chinese firms. Both positive and negative sentiments increase as Chinese companies’ innovative capability improves. While stakeholders in conservative-leaning states may temper their positive sentiment, their negative sentiment is mainly directed at Chinese state-owned companies. Our findings help to gain particular insight into the complex nature of stakeholder sentiment, a key element shaping multinational companies’ operating environment.

The Concept Of Legal Regulation Of Soe Restructuring Through Holding Mechanism

Given the contribution of state-owned enterprises that need to be increased enough, to improve and empower massively several sectors in the state-owned companies, restructuring must be accommodated. Thus, the restructuring of state-owned enterprises with formation of holding companies for each sector has been planned by the government, which is the Ministry of SOEs. The purpose of the initial idea of restructuring and establishing a state-owned holding company is to optimize its management. However, while its main objective is to gradually intensify its management and profitability, the government plans to restructuring SOEs must face several obstacles, one of which is related to anti-competitive law. In an Operating Holding Company, the parent company carries out business activities and controls subsidiaries. The form of Operating Holding Company run by PTPN III (Persero) as the parent company is not only to carry out its business activities but also control and supervise subsidiaries.

How Effective is the Green Financing Framework for Renewable Energy? A Case Study of PT Pertamina Geothermal Energy in Indonesia

This paper assesses the green financing framework for renewable energy in Indonesia, with a focus on PT Pertamina Geothermal Energy (PGE) as a case study. PGE is a state-owned company and a significant producer of geothermal energy in Indonesia. The paper evaluates the strengths and weaknesses of PGE's green financing framework, including its reliance on government policy and regulation, the speed and efficiency of disbursement of funds, and the quality of project selection. The paper also examines PGE's intention to engage external auditors to verify its internal tracking method and allocation of funds, which aligns with global best practices in green financing. The involvement of external reviewers adds an extra layer of oversight and credibility to the process. Overall, the paper concludes that PGE has a strong framework in place for managing green financing, with several projects in various stages of implementation. However, there is room for improvement in terms of project selection criteria and impact reporting accuracy and reliability. In summary, this paper provides valuable insights into the green financing framework for renewable energy in Indonesia, with a specific focus on PGE as a case study.

Time dynamics in the effect of carbon information disclosure on corporate value

It is crucial to examine whether carbon information disclosure (CID) can truly enhance corporate value (CV), which motivates companies to reduce carbon emissions endogenously. Given that the dynamic impact of CID on CV evolves over time, this paper continuously investigates this time-varying relationship within the functional framework. Based on the continuous curves smoothed from 65 companies in the Shanghai Stock Exchange Social Responsibility Index, we construct an evaluation index using functional entropy weight to continuously measure the level of CID. Furthermore, to quantify the time-varying effect of CID on CV, we use functional regression to visualize its dynamics in symbol, strength, and statistical significance from 2009 to 2021. Finally, the real-time moderating effects of nature of ownership and industry attributes are also examined, revealing how the impact of CID on CV varies across different companies and periods. The results suggest the following: (1) CID adversely affected CV initially but favored later. (2) The initial negative impact and the subsequent positive impact of CID on CV are stronger in non-state-owned companies than in state-owned companies. (3) These impacts are also stronger in low-polluting companies than in high-polluting companies. In summary, this paper expands the research toolset for exploring the dynamic effect of CID on CV and offers practical implications for companies to make informed disclosure decisions.

The Influence Of Enterprise Strategic Positioning On The Organizational Success Of Mining Investment Companies In China

Pressure on safety and environmental protection continues to rise as a result of legislation such as China's energy reform, resulting in a fall in mineral resource reserves and a decline in grade. China's mining industry's output has fluctuated and dropped. State-owned mining investment and development companies (SOME) bear political, economic, and social responsibilities, but there are issues such as a lack of strategic positioning (SP), slow transformation speed, and poor business flexibility that make ensuring organisational success (OS) difficult. This study aimed to determine the influence of corporate strategic positioning on the organization of state-owned mining investment companies in China with the intent of putting forward practical suggestions on how to effectively formulate and implement strategic positioning, and provide guidance for the organization's strategic decision-making and implementation to achieve organizational success. Keywords: Enterprise Strategic Positioning, Mining Investment, Organizational Success, Social Responsibility, Institutional Advantage, Descriptive Correlational

An Efficiency Study in Indonesian Telecommunication Company Using Data Envelopment Analysis DEA

PT. Telekomunikasi Indonesia, Tbk (Telkom), as a state-owned company, has a dual mission, namely as a business company that must be managed professionally, as well as being mandated by the Indonesian government to accelerate the development of information technology, telecommunications, and digital infrastructure to improve the Indonesian economy. Until early 2018, Telkom with Indihome fixed broadband products had reached 3 million customers and a market share of 57.69%. However, that is only 4.50% of the 2019 IBP household penetration target. Telkom is required to increase productivity, especially the number of customers and revenue, while the allocation of available resources is limited and varies in each region. Another condition is the significant reduction in staff due to massive retirements and differences in employee productivity levels in each division. This research aims to determine and compare the efficiency level of 7 Telkom Regional Divisions for the 2016-2018 period using the DEA Data Envelopment Analysis method, with data collection based on the census. The analysis process goes through two stages, namely using the DEA Data Envelopment Analysis method, Constant Return to Scale (CRS/CCR), output-oriented. The next step is to measure the strength of the relationship between each input/output variable on efficiency using Pearson's correlation. The results of the study concluded that Divisions E and B have the highest efficiency values. On the other hand, Division G is the lowest. The variables that have the strongest correlation with the level of efficiency are the number of employees (input), the number of customers (output), and business income (output).

Building knowledge absorptive capacity in South African public companies through recruitment practices

Most state-owned companies (SOCs) in South Africa are in a perpetual struggle to recruit human resources and replenish their intangible knowledge asset losses that are largely due to high employee turnover. The study is interdisciplinary in nature, presenting a strong link between recruitment practice, employee turnover, knowledge loss and knowledge absorptive capacity. The research project used a mixed methods exploratory sequential design by gathering in-depth qualitative data through interviews with 20 human resource managers in 9 SOCs. Survey data was collected from a 25% response rate to the 585 distributed questionnaires. The survey instrument was tested for reliability with a Cronbach’s alpha at 0.94. The qualitative data extracted through the interviews were analyzed thematically using Atlas.ti software, whilst the quantitative data were analysed using Statistical Analysis Software (SAS). The findings revealed that due to increased human resources mobility, human resource management (HRM) establishments in many SOCs were in a perpetual struggle to fill vacancies in mission-critical areas. Knowledge-loss induced by human resource attrition was a serious challenge in most SOCs. On a positive note, the study revealed that recruitment practices were knowledge-driven, largely because they supported SOCs in the sourcing of the required company-specific human and knowledge resources, albeit some extant challenges. The study concluded that HRM recruitment practices build knowledge absorptive capacity in South African SOCs.

Local government debt pressure and corporate ESG performance: Empirical evidence from China

This paper is the first to incorporate local government debt pressure, government behaviors and corporate ESG performance into analytical framework. Using the comprehensive data of government debt and Chinese listed companies from 2015 to 2020, we find the negative correlation between debt pressure and corporate ESG performance. Furthermore, the adverse influence of debt pressure on corporate ESG performance is markedly pronounced in state-owned companies, companies with elevated political relevance, and companies situated in the inland and northern regions of China. The study also reveals that debt pressure weak ESG performance by aggravating financial constraints and diminishing the capacity for green innovation.

Determinants of Company Performance with Supply Chain Risk Management as an Intervening Variable: Empirical Studies on BUMN Construction in Indonesia

BUMN construction companies are required to be competent to maintain the quality of the company by having good performance. Due to the phenomenon of declining financial performance and the phenomenon of outsourcing, a system is needed which is a synergy between SCM and risk management, that is Supply Chain Risk Management (SCRM). This study aims to further explore the supply chain risks that occur in state-owned construction companies in Indonesia by developing a system that can control risk and play an important role in Vendor Trust, Contractor-Vendor Relationship and Top Management Involvement to measure company performance. The data collection was carried out using a survey method using questionnaires and interviews. Respondents were selected using the purposive sampling method, that experts on Indonesian BUMN construction projects using the Smart PLS analysis method. The results of the study concluded that Vendor Trust has no effect on Supply Chain Risk Management. This is related to the existence of Law No.2 of 2017 reinforced by Minister of BUMN No.08 of 2019 which regulates the readiness of database infrastructure and Vendor criteria. Based on this regulation, a Vendor Management System was created that applies ratings, sanctions and Blacklists to Vendors, if there are errors or even a shortage of Vendor expertise documents, Unverified will occur and the impact on billing to contractors will be hampered so that trust can increase mutually beneficial relationships in long-term partnerships hard to do. Contractor-Vendor Relationship and Top management Involvement influence SCRM. Vendor trust, Contractor-Vendor Relationship and Top Management Involvement influence company performance after being mediated by Supply Chain Risk Management.

Transformation of the state-capital relationship over public land in Turkey

This article analyses the state’s contemporary role in capital accumulation in the development of public land. In the literature, it is argued that the state goes beyond a regulatory role and participates in the capital-accumulation process as the owner of land or financial assets derived from land-based revenue, thus transforming from an external to an internal actor. It is argued that, in this way, the state governs urban development and the distribution of the land rent. This article argues that in the privatisation of land before development, the state is involved as the regulator and landowner, as suggested in the literature; however, when the state participates in the development of public land through public-private partnerships led by entrepreneurial state agencies and state-owned companies, it is also involved in production, trade and finance. In the latter case, the state manipulates the distribution, and its revenue consists not only of land rent but also of profit. Based on Marx’s analysis of the total circuit of capital, which does not include the forms of state involvement, the article attempts to elucidate contemporary transformations in the state-capital relationship in the development of public land. It claims that the new government strategies aim to address problems of capital accumulation and state finance through land development. The article is based on an analysis of official data on the practices and revenue of three state agencies engaged in land privatisation and development in Turkey.