This paper examines the association of firm age on earnings management (EM). We compared the large samples of 688 and 844 year-observation on listed firms in Indonesia stock exchange (IDX) and ...Singapore stock exchange (SGX), respectively. SGX is used as a benchmark of South East Asia (SEA) stock market. Despite SGX transaction has the highest rank in SEA stock exchange, yet the firm age average is newer than the IDX counterparts. Panel data regression was employed in analyzing the data. In addition, we conducted an anova pairwise t-test to examine the difference of firm age and EM depedency association in IDX and SGX. The result shows that both on IDX and SGX, firm age have a negative and significant effect towards EM. Moreover, it is found that there is a significant difference between the effect of firm age to EM in the firm listed on IDX and SGX.
Purpose. The study aims to examine the effect of auditor quality on real activity manipulation.
Result. The population is 20 state-owned enterprises (SOEs) listed on the Indonesia Stock Exchange for ...the period 2018–2020. Using the purposive sampling method, 57 observations for the specified period were obtained. Next, we used a linear regression model as the method. The results showed that auditor quality had no effect on real activity manipulation through abnormal Operating Cash Flow (CFO), abnormal Production Costs (PROD) and abnormal Discretionary Expenses (DISC). Auditor quality has no effect on real activity manipulation through abnormal CFO. This is because the auditor’s independence attitude decreases which causes management to manipulate real activities through abnormal CFO, namely by increasing the company’s sales value. Auditor quality has no effect on real activity manipulation through abnormal PROD. This is because a qualified auditor in the company is only a formality to provide assurance in the eyes of investors that the company is in good condition. So, management will manipulate real activities through abnormal PROD, namely increasing the company’s production. Auditor quality has no effect on real activity manipulation through abnormal DISC. This is because the client’s accounting flexibility from qualified auditors is hampered, where management will change earnings management by using real activity manipulation through abnormal DISC, namely reducing discretionary costs.
Scientific novelty. This research is based on the application of the already known methodology and design developed by Sanjaya, the difference is that in this study we used SOEs as the object. Moreover, we employed different period from prior study which are in the year of 2018 to 2020. Also, this study uses agency theory because this is based on information asymmetry between the principal and agent, which overall indicates a certain novelty of our work.
Practical value. The results of this study are useful for assessing the quality of auditors in increasing the credibility of financial statements to reduce risks that occur in financial statements such as real earnings management through abnormal CFO, abnormal PROD, and abnormal DISC. Prospects for its development are by expanding and adding objects and years, as well as used variables.
The study aims to examine the association of firms characteristics comprise of firm age, firm size, leverage, and profitability to earnings management (EM). The data is collected from listed ...Singaporean corporation in Singapore stock exchange (SGX) in the period of 2017 and 2018. Purposive sampling and panel data regression were employed as the sampling and analysis method, respectively. Our results are based on a large sample of 852 firm-year observations. The results show that firm age and firm size significantly affected EM, meanwhile, leverage and profitability indicate insignificant effects to EM. In addition, these results provide information to investors and potential investors regarding future investment decisions.
Purpose : The study aims to investigate the effect of Return on Assets (ROA), Asset Turnover (Ast-Tvr), Leverage, Change in Earnings (ChE), and Size on dividend policy as measured by Dividend ...Increase (DIC) on banking companies in Asean-6 Countries.
Method : We employed eight-year observation period from 2012 to 2019, thus the purposive method obtained 134 companies as samples. This study used regression analysis by Logistic Regression as the method and collected the secondary data from the annual financial statements of banking companies of ASEAN-6 countries which comprises of Indonesia, the Philippines, Singapore, Malaysia, Thailand, and Vietnam.
Findings : The results show that ROA, Ast-Tvr, Leverage, ChE, and Size have no significant effect on dividend policy.
Novelty : To the best of our knowledge, there is no literature examining dividend policy in ASEAN-6 countries. Hence, we tried to fill the gap in terms of dividend policies in ASEAN-6 Countries. Further, this study contributes further research to provide evidence of what policies are set by banking corporations in ASEAN countries. This research also displays a better understanding for stakeholders and investors in interpreting the dividend related information prior taking the investment decision.
Keywords : Dividend Policy; ROA; Asset Turnover; Leverage; Change in Earnings; ASEAN-6 Countries
An assessment of banking sector performance in Indonesia Nurullah, Asfeni; Gozali, Efva Octavina Donata; Hamzah, Ruth Samantha ...
International Journal of Financial, Accounting, and Management,
03/2024, Letnik:
5, Številka:
4
Journal Article
Purpose: This study examines the effect of dividend pay-out ratio (DPR), total assets, and asset growth on banking company performance, measured by return on assets (ROA) and net profit margin (NPM).
...Research methodology: Using purposive sampling, we obtained 67 banking companies as samples, comprising 33 unlisted firms and 34 listed firms on the IDX. This study observed a 9-year period from 2011 to 2019; thus, the total sample comprises 603 firm-year observations. Linear regression analysis was used to analyze the data.
Results: The results show that DPR and total assets, namely ROA and NPM, have a significant effect on the performance of banking companies. Asset growth had a significant effect on NPM. However, asset growth has no significant effect on ROA.
Limitations: We acknowledge that we solely used a banking corporation in Indonesia. Nevertheless, to demonstrate the bigger picture of the study findings in terms of banking performance, further studies should employ banking corporations in all emerging countries.
Contribution: The results enrich the theoretical knowledge about these factors in financial performance, particularly in the Indonesian banking industry.
Practical Implications: Corporation management might consider this finding when making decisions regarding dividend ratios, asset size, and asset growth. Further, management needs to pay attention to these factors when planning business strategies and making decisions to achieve higher financial performance.
Novelty: To the best of our knowledge, this is the first study to examine the relationship between DPR, total assets, and asset growth to performance that employs samples of the banking industry from listed and unlisted companies on the IDX.
Purpose: The study employs Corporate Social Responsibility (CSR) as a moderating variable. We aim to discover the role of CSR on the influence of audit firm rotation (AFR), audit committee gender ...(ACG), and audit quality (AQ) on banking performance. Methodology/approach: The regression analyses were performed multiple and moderated to exploit the linear model and moderating model, respectively. Results/findings: The results show that ACG has a significant effect on banking performance, meanwhile AFR and AQ have no significant influence on banking performance. Furthermore, the results of the moderated regression analysis revealed that CSR cannot moderate the influence of AFR, ACG, and AQ on banking performance. Limitations: We limited the variables only in terms of AFR, ACG, and AQ for the direct influence on firm performance. Therefore, we did not include determinant variables of firm performance in the model (e.g., firm size, firm age, firm growth, financial ratio). We suggest for further research include these determinant variables as a control variable. Contribution: The study delivers understanding and information on behalf of the influence of AFR, ACG, and AQ on firm performance, particularly for the banking sector in emerging countries. In addition, this research has implications for regulators to improve banking performance. Novelty: We use CSR as a moderating role. To the best of our knowledge, there is no prior study that employs CSR as a moderating role among AFR, ACG, and AQ association to banking performance. Meanwhile, previous studies prove the strong relationship between CSR to banking performance. Keywords: 1. Audit Quality 2. Audit Committee Gender 3. Audit Firm Rotation 4. Banking Performance 5. Corporate Social Responsibility
Purpose. The study aims to examine the effect of auditor quality on real activity manipulation.Result. The population is 20 state-owned enterprises (SOEs) listed on the Indonesia Stock Exchange for ...the period 20182020. Using the purposive sampling method, 57 observations for the specified period were obtained. Next, we used a linear regression model as the method. The results showed that auditor quality had no effect on real activity manipulation through abnormal Operating Cash Flow (CFO), abnormal Production Costs (PROD) and abnormal Discretionary Expenses (DISC). Auditor quality has no effect on real activity manipulation through abnormal CFO. This is because the auditors independence attitude decreases which causes management to manipulate real activities through abnormal CFO, namely by increasing the companys sales value. Auditor quality has no effect on real activity manipulation through abnormal PROD. This is because a qualified auditor in the company is only a formality to provide assurance in the eyes of investors that the company is in good condition. So, management will manipulate real activities through abnormal PROD, namely increasing the companys production. Auditor quality has no effect on real activity manipulation through abnormal DISC. This is because the clients accounting flexibility from qualified auditors is hampered, where management will change earnings management by using real activity manipulation through abnormal DISC, namely reducing discretionary costs.Scientific novelty. This research is based on the application of the already known methodology and design developed by Sanjaya, the difference is that in this study we used SOEs as the object. Moreover, we employed different period from prior study which are in the year of 2018 to 2020. Also, this study uses agency theory because this is based on information asymmetry between the principal and agent, which overall indicates a certain novelty of our work.Practical value. The results of this study are useful for assessing the quality of auditors in increasing the credibility of financial statements to reduce risks that occur in financial statements such as real earnings management through abnormal CFO, abnormal PROD, and abnormal DISC. Prospects for its development are by expanding and adding objects and years, as well as used variables.
This study aims for analyzing influence styles, use budget diagnostics and interactive proxies for performance companies all at once. For comparing styles, use budget diagnostics and interactive ...proxies for SMEs in Palembang City. The type of data used is the primary data result of a spreading interview containing a questionnaire and alternative answers given to the respondent, which is SME managers and workers in Palembang City. Population study: there are 155,467 SMEs in Palembang City. Taking samples uses snowball sampling methods and techniques, which yield a determinant sample that yields the total sample of as many as 100 SMEs. Research data analysis techniques This is using the Software Statistical Program for Social (SPSS) version 27 with descriptive statistics and simple linear regression. Research results this show that style use budget diagnostic and interactive no influential performance company, use budget in a manner diagnostic more lots used compared to with use budget in a manner interactive.
UMKM (Usaha Mikro, Kecil, dan Menengah) di sektor makanan dan minuman di Kota Palembang memiliki potensi besar untuk berkembang, namun seringkali dihadapkan pada tantangan dalam mengelola keuangan ...dengan efisien dan efektif. Oleh karena itu, penelitian ini bertujuan untuk memberikan pendampingan keterampilan pengelolaan keuangan kepada UMKM makanan dan minuman dengan memanfaatkan aplikasi berbasis teknologi. Kegiatan pengabdian ini dilaksanakan dengan berbagai metode, seperti ceramah, tutorial, diskusi interaktif, dan simulasi. Aplikasi berbasis teknologi digunakan sebagai alat bantu untuk membantu UMKM dalam mencatat transaksi, mengelola inventaris, menghitung pendapatan dan biaya, serta menyusun laporan keuangan. Selain itu, pelatihan melibatkan aspek pengelolaan keuangan, pengembangan bisnis, dan pemasaran. Hasil penelitian menunjukkan bahwa pendampingan keterampilan pengelolaan keuangan berbasis aplikasi berdampak positif terhadap UMKM makanan dan minuman di Kota Palembang. Mereka dapat mengelola keuangan mereka dengan lebih efisien, meningkatkan akurasi pelaporan keuangan, dan mengoptimalkan penggunaan sumber daya. Selain itu, pemanfaatan aplikasi berbasis teknologi juga membantu meningkatkan aksesibilitas informasi keuangan dan memudahkan pemilik UMKM dalam mengambil keputusan strategis. Saran yang dapat diberikan, yaitu diperlukan pendampingan yang berkelanjutan agar UMKM dapat terus mengembangkan dan mengimplementasikan keterampilan pengelolaan keuangan mereka. Target selanjutnya adalah mengadakan lokakarya lanjutan yang lebih spesifik dalam penggunaan fitur-fitur lanjutan dalam aplikasi tersebut.
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