The purpose is to analyze the role of institutional ownership in firms with managerial ownership in reducing agency costs for the Indonesian listed firm. The polled data from the annual report of ...companies listed on the In-donesia Stock Exchange and data obtained are pooled from 949 units from 2008 to 2020. We have analyzed through regression of data from dependent is agency cost, independent managerial ownership, annual sales, total assets, independent commissionaires, and control variable is debt ratio. The total sales to total assets ratio has been used as a proxy for agency costs. The result is that higher agency cost proves more effectively (more than 1) in using assets to generate annual sales. Quartile analysis has been used to determine the interval of managerial ownership, the result is that managerial ownership at the lower level (34%-59%) and higher (60%-74%) is significant to agency costs. Inverse, when none of the managerial ownership, much lower (<33%), and much higher (>74%) is insignificant to agency cost. Our results support the predictions of Jensen & Meckling (1976), which state that ownership structure as voting power and monitoring are mechanisms for aligning the interests of shareholders. The presence of much lower of managerial ownership results in managers not having enough power to produce agency costs. No different, when managerial ow-nership is at a much higher level, they also do not have the potential to produce agency costs because institutional investors can monitor more op-portunistic management behavior. Both levels of managerial ownership pro-ve more effectively use assets to generate annual sales.Originality/value is a study focusing on one of the largest emerging economies, i.e. Indonesia.
This study examines the effect of the pay gap on banks and compares the effectiveness of the tournament theory in Islamic banks (IB) and conventional banks (CB). This study expands the pay gap ...indicators used in previous studies by using three indicators: board of directors' pay gap, commissioners' pay gap and employees' pay gap. The sample is 23 banks, observed from 2009 to 2019, which results in 239 bank-years. The test results show that we have not found a relationship between a pay gap and bank performance. However, the subsample test, which involves separating Islamic banks and conventional banks, reports different findings. The tournament theory is effectively applied to the employee payroll system and shows a large employee pay gap will improve the performance of IBs and CBs. However, the effect of tournaments on IBs is greater than it is on CBs. The tournament theory is not effectively applied to the salary system for the boards of commissioners. However, the large pay gap for board of directors of CBs causes communication, coordination and collaboration problems between the board of directors and further reduces bank performance. However, in IBs, the pay gap of board of directors has no effect on bank performance. We recommend that banks should provide different salaries for employees at the various different levels. However, we do not recommend that banks create a large pay gap for board of directors because this will lead to poorer performance.
This study aims to understand the determinant of the employee’s intention to use information system within the framework of the Technology Acceptance Model (TAM) and Information System Success Model ...(ISSM). This paper also aims to examine the influence of ISSM dimension on the perceived usefulness and the perceived ease of use. The research respondents were 248 employees of Universitas Negeri Semarang (UNNES) who are users of the Financial Information System (SIKEU). Data was obtained using a questionnaire that was distributed online via Google form. The data analysis method used is Structural Equation Model (SEM) analysis using the Warp-PLS software. The results showed that the dimensions of TAM (perceived ease of use and perceived usefulness) had a positive and significant influence on the employee’s intention to use SIKEU. The ISSM dimension (system quality and information quality) also had a significant influence, although other ISSM dimensions (service quality) had not been proven to have a significant influence on the employee’s intention to use SIKEU. Moreover, the results showed that the employee’s intention to use is a determinant of SIKEU’s actual usage. Perceived ease of use was significantly determined by system quality, information quality, and service quality. In addition, the perceived usefulness was significantly determined by system quality and information quality.
Inter-industry has various capital structures to take advantage of growth opportunities due to agency differences and information asymmetric problems. This research aims to analyze: (1) the ...differences in leverage between industries and (2) the impact of shareholders–debtholders conflict and information asymmetric on growth opportunities. The firm-level data used is extracted from Indonesia Stock Exchange's annual reports from 2008 to 2019. Authors used the analysis of variance (ANOVA). The findings show differences in leverage between industries. However, they are relatively stable and not excessive for assets to prevent conflicts between managers and shareholders with debtholders. Equity is also not used to utilize growth to reduce the discretionary power (dilution) of shareholders. As a result, the use of opportunities and growth is limited. This study identifies agency problems and asymmetric information that determines independent companies' decisions in exploiting growth opportunities.
The purpose of this study is to test the free cash flow agency theory hypothesis; namely, (a) whether differences in industrial sector affect a company's propensity to pay dividends, and (b) whether ...institutional ownership is able to substitute for the propensity to pay dividends as a bonding mechanism. The analysis uses logistic regression to explore the existence of institutional ownership as a substitute for paying cash dividends in companies belonging to different industrial sectors. The results show that companies in the manufacturing sector have a greater propensity to pay dividends compared to those in non-manufacturing sectors. The results also indicate that low institutional ownership, as an external monitoring mechanism, can substitute for increasing the propensity to pay dividends. Overall, the results are consistent with implications in dividend policy. The results support the notion that the propensity to pay dividends accommodates different behavioral factors, considering sectoral differences. In addition, the results illustrate the relevance of alternative theories in explaining dividend policy from the perspective of agency theory. The results show that sectoral comparisons, in addition to institutional ownership factors, play important roles in the propensity of Indonesian companies to pay dividends. This study shows that each industry sector has different income characteristics, which affect the differences in propensity to pay dividends.
The purpose of this paper is to examine the relationship of good university governance, teaching quality of lecturers and student satisfaction. It also aims to examine the effect of learning ...facilities on good university governance and student satisfaction. 361 students of the Faculty of Economics, Semarang State University, were involved in this study using proportionate random sampling. Then, to gather the data, a questionnaire was distributed, and the data were analyzed by applying SEM-PLS. The results showed that good university governance, teaching quality of lecturers, and learning facilities had a positive and significant effect on student satisfaction. The teaching quality of lecturers is proven to be influenced by good university governance. In addition, learning facilities also have a significant effect on good university governance.
This study seeks to examine empirically the effect of leadership style on organizational commitment and organizational effectiveness. The data are from all departments of the undergraduate program at ...the State University in Central Java, Indonesia. The study comprises all divisions of the undergraduate program, which amounted to 207 people. The method for sampling is based on simple random sampling. Structural equation modeling (SEM) is applied in order to analyze the data. The results show that integrative adaptive leadership style has a positive effect on teamwork and affective commitment. Therefore, in order to improve teamwork, the organization should be assisted in completing the introduction of collaborative conflict resolution. Moreover, affective commitment positively affects organizational effectiveness. Thus, it can be said that efforts to improve the organizational effectiveness, should be supported by affective commitment. The study further revealed that integrative adaptive leadership style has a positive effect on teamwork. This means better execution of integrative adaptive leadership, higher level of coordination and vice versa. Each member has different responsibilities and duties, and it can be done or resolved in different ways. If the leader can accommodate the creativity of the faculty and staff, a solid team can be formed.
This study aims at developing an integrated Management Information System for Lecturers Credit Score Assessment (SIMPAKDOS). This research is an R&D research conducted in March-September 2018. The ...system itself is developed by conducting FAST method (Framework for the Application of Systems Techniques). Data collection methods used are interviews, questionnaires, and documentation. The data analysis method used are descriptive analysis, FGD (focus group discussion), and linier regression analysis. The development of Integrated SIMPAKDOS has been finished with the FAST approach. The results of the needs analysis show that the lecturers and staffs need Integrated SIMPAKDOS with approved content and conditions. The logical design prepared has been through FGD, expert validation, and trials to obtain input and validation from various stakeholders. System validation is carried out in two stages (development expert validation and system content expert validation) and the results show that Integrated SIMPAKDOS is valid and feasible to use. The test results also show that the interest of lecturers applying for promotion is included in the very high category, which is as many as 65% after using SIMPAKDOS. The use of Integrated SIMPAKDOS proved to have a positive and significant effect on the intention of lecturers to propose rank promotions.
Abstract
Based on microsimulation, this study analyses the performance and behavior of motorized vehicles at the signalized intersection between the railway line and Ahmad Yani road-Jemursari road. ...For the survey of the volume of motorized vehicles, this intersection is divided into four intersections with eight directions of traffic movement and one direction of combined traffic movement. Microsimulation was carried out using Vissim software with nine parameters calibrated according to actual conditions during the peak hour observation period. The maximum queue length and motor vehicle delays for the peak hour observation period occur at intersections one in the north and two in the east. Performance of the intersection of Jl. Ahmad Yani-Jl. Jemursari is included in category F. The indicator F are traffic jams, low vehicle speeds, long queues, and vehicle delays. The following study of this paper is to make a geometric model of the intersection into a Fly Over model.
Objective: The objective of this research was to assess the suitability of FTIR spectroscopy coupled with multivariate analysis of partial least square regression (PLSR) along with pattern ...recognition technique of principal component analysis (PCA) for rapid quantitative and qualitative (identification) analysis of dog meat in beef meatball formulation. Materials and Methods: The lipid fraction of meatball was obtained by employing two different extraction techniques, namely Bligh-Dyer and Folch method. FTIR spectral bands correlated with beef fat, pork fat, chicken fat and rat fat were measured, interpreted, and qualitatively analyzed. The small variations among spectra were exploited as a basis tools to differentiate between dog fat and other animal fats. Results: PCA at combined wavenumber regions of 1700-700 cm-1 was capable of identifying dog meat in meatball. These wavenumbers were also used for quantitative analysis of dog meat in meatball using PLSR model. Based on statistical parameters used, namely R2, RMSEC and RMSEP, Folch extraction method offered higher R2 and lower RMSEC and RMSEP than Bligh-Dyer. PCA is succesfully applied for classification between meatball containing dog meat and other meats. Conclusion: FTIR spectroscopy coupled with multivariate analyses of PLSR and PCA was effective means for rapid screening of dog meat in meatball products.
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