Open Access Article | |||
1. |
Fair pricing: A framework towards sustainable life insurance products
, Pages: 1-12 Agus Setiawan, Sugiarto, Grace Shinta S. Ugut and Edison Hulu PDF (650K) |
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Abstract: This research aims to fill the gap in sustainable insurance product study. The central research question of this research is how to develop a fair pricing framework in order to design a sustainable financial product. Current profit testing method is arguably lack of policyholder considerations. The profitability decision under current method only considers profit margin for company. There is no profitability measurement for policyholder. To improve fairness under current pricing, the proposed study proposes a concept of equity in risk between company and policyholder. In order to establish equity in risk, profitability for policyholder needs to be defined and risk measure Conditional Tail Expectation (CTE) for company and policyholder is proposed as a solution. Fairness is achieved if CTE between company and policyholder falls within certain range. CTE generated under new framework could be used as a reference point to all stakeholders to assess the fairness of Unit Linked price. The target population for the study was any regular premium Unit Link product. This research used simple random sampling. From the population consisting of 34 companies 20 samples were drawn. Data is taken from the Indonesian Financial Service Authority. The data used is from the time period between 1 January 2015 and 30 June 2019. Using the CTE, this study finds that most of the Unit Linked pricing are far from fair. It is recommended that companies could be more efficient in their operating and distribution cost in order to be fairer to policyholder and therefore will make the product more sustainable. DOI: 10.5267/j.ac.2020.10.020 Keywords: Fair Pricing, Unit Linked, Conditional Tail Expectation, Stakeholder Pricing
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2. |
Corporate governance and firm performance
, Pages:13-22 Mulyanto Nugroho PDF (650K) |
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Abstract: This research discusses and analyzes scientific, macroeconomic, financial risk management, audit views, stock returns, investment decisions, funding decisions, and good corporate governance as a moderator. There are 147 samples of manufacturing companies listed on the Indonesia Stock Exchange. The results of this study indicate that there are four insignificant hypotheses. The results indicate: Macroeconomics does not have a substantial effect on Financial Risk Management, Good corporate governance (GCG) is having no significant impact on Going Concern Audit Opinion. Stock Return is having no significant effect on Going Concern Audit Opinion; GCG does not moderate the impact of Stock Return on Going Concern Audit Opinion when the level of significance is five percent. DOI: 10.5267/j.ac.2020.10.019 Keywords: Going Concern Audit Opinion, Good Corporate Governance, Stock Returns, Financial Risk Management, Investment Decisions, Funding Decisions
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3. |
The macroeconomic determinants of stock price fluctuations in Amman Stock Exchange
, Pages: 23-32 Abdallah Ghazo, Ziad Abu-Lila and Sameh Ajlouni PDF (650K) |
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Abstract: The purpose of this study is to identify the key macroeconomic variables that affected stock price fluctuations in Amman Stock Exchange during the period 1980-2018. Using Augmented Dickey-fuller (ADF) test, it was found that the variables did not have the same degree of integration. According to Breusch-Pagan-Godfrey test, the residuals violated the constant variance assumption under Ordinary Least Square (OLS) model. Therefore, the study employed Generalized Autoregressive Conditional Heteroskedasticity (GARCH) methodology to analyze the model after taking the first difference of natural logarithm for all variables to be stationary at the same level and to show the fluctuation in the variables. It was found that fluctuations in portfolio investment and in industrial production index are statically significant to lead fluctuations in the stock price index in Amman Stock Exchange and they follow the same direction, whereas fluctuations in real effective exchange rate, real interest rate, and Brent crude oil prices were statically significant to lead fluctuations in the stock price index but in the opposite direction. DOI: 10.5267/j.ac.2020.10.018 Keywords: Macroeconomic determinants, Fluctuations of stock prices, Amman Stock Exchange, GARCH model
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4. |
Retracted: Education and gender wage gap: Evidence from Indonesia
, Pages:33-40 Suharyono and Kumba Digdowiseiso PDF (650K) |
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Abstract: This paper empirically tried to analyze the effects of education on the gender wage gap in Indonesia and to examine whether globalization could alter such a relationship. We modified a decomposition method for the panel dataset that corresponds to the National Socio-Economic Survey from 1996 to 2016. Overall, we found that schooling could significantly influence the salary discrepancy. We also proved that globalization did matter in explaining the relationship between the educational attainment and the salary gap. Here, it could widen the difference in the remuneration. Based on the results, strengthening the gender-responsive budget at the national government level might be one of the solutions. Basically, it actually started with a new awareness of the budget that was not genderneutral. Thus, the positioning of women in education and decision-making process is very crucial for the future of development. DOI: 10.5267/j.ac.2020.10.017 Keywords: Education, Gender, Wage, Globalization, Indonesia
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5. |
Corporate social responsibility disclosure and financial information environment
, Pages: 41-48 Nasr Taha Hassan PDF (650K) |
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Abstract: This study aims to explore whether or not social responsibility disclosure contributes to improve the financial information environment, through examining the impact of quantity and quality of corporate social responsibility (CSR) disclosure on the accuracy of analysts' forecasts and audit fees. Content analysis technique has been used to measure quantity and quality of CSR disclosure in annual reports of Saudi registered companies. OLS regression model is used to examine the relationship between the quantity and quality of CSR disclosure in the annual reports and the quality of the analysts' forecasts, and the audit fees. The results indicated that CSR disclosure provides useful information for outsiders, where it is associated with more accurate analysts’ expectations and reduced audit fees. These results suggest that CSR disclosure is associated with high quality financial information environment. This paper provides comprehensive analysis for financial information environment in Saudi companies. The findings of paper provide useful insights concerning the importance of social responsibility disclosure in Saudi business environment. DOI: 10.5267/j.ac.2020.10.016 Keywords: CSR disclosure, Financial information, Analysts’ forecasts, Saudi business environment and audit fees
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6. |
Taxpayer awareness, tac knowledge, tac sanctions, public service account ability and taxpayer compliance
, Pages: 49-58 La Ode Anto, Husin, Wahyuniati Hamid and Nofian Lepong Bulan PDF (650K) |
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Abstract: This study aims to determine and analyze the effect of taxpayer awareness, tax knowledge, tax sanctions, and public service accountability on taxpayer compliance. The population of this study is the motor vehicle taxpayer in Kendari City. Samples are determined using accidental sampling techniques and the number of samples is determined using the Slovin formula. Based on the results of data analysis using multiple linear regression, the study found that taxpayer awareness, tax knowledge, tax sanctions, and public service accountability had positive and significant effects on taxpayer compliance in meeting tax obligations. This means that the higher the level of taxpayers’ awareness, tax knowledge, tax sanctions, and public service accountability, the better the taxpayer compliance. DOI: 10.5267/j.ac.2020.10.015 Keywords: Taxpayer compliance, Taxpayer awareness, Tax knowledge, Tax sanctions, Public service accountability
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7. |
How does liquidity influence bank profitability? A panel data approach
, Pages: 59-64 Thu-Trang Thi Doan and Toan Ngoc Bui PDF (650K) |
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Abstract: This study investigates the impact of liquidity on bank profitability. Particularly, bank profitability is measured by return on assets (ROA) while liquid assets to total assets (LATA) and total loans to total deposits (TLTD) are indicators of bank liquidity. A panel data of 26 Vietnamese commercial banks are obtained over the period 2013-2018. The GMM estimation is adopted to test the significant effect of liquidity on profitability of Vietnamese commercial banks. The results reveal that profitability (ROA) was negatively influenced by liquid asset ratio (LATA) and positively correlated to loan-to-deposit ratio (TLTD). Further, bank profitability was also affected by macroeconomic control variables like economic growth (EG) and inflation (INF). The results are not only essential for bank managers but also provide scholars a valuable reference. DOI: 10.5267/j.ac.2020.10.014 Keywords: GMM estimation, Liquidity, Panel data, Return on assets, Vietna,
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8. |
The rule of competence, compensation, and workshop on employee performance mediated by prime service of public health service
, Pages: 65-74 Ivalaina Astarina, Budiyanto and Agustedi PDF (650K) |
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Abstract: The purpose of this study was to partially analyze the effect of competence, compensation, and workshop on employee performance and the effect of competence, compensation and workshop on employee performance mediated by a prime service at the Public Health Service or Pusat Kesehatan Masyarakat (Puskesmas) in Indragiri Hulu Regency. The sample of this study was 127 employees of the Puskesmas in Indragiri Hulu Regency. The sample was taken by means of probability sampling in the form of simple random sampling using a lottery technique. Closed questionnaires were used in this study then the data taken from the questionnaires were processed using SmartPLS 3.0. The results of this study were: (1) competence has a significant effect on employee performance variable, (2) compensation has a significant effect on employee performance variable, (3) workshop has a significant effect on employee performance variable, (4) competence has a significant effect on employee performance variables mediated by a prime service, (5) compensation has a significant effect on employee performance variables mediated by a prime service, and (6) workshop has a significant effect on employee performance variables mediated by a prime service. DOI: 10.5267/j.ac.2020.10.013 Keywords: Competence, Compensation, Workshop, Kompensasi, Diklat, Prime Service, Employee Performance
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9. |
The impact of governance on agricultural production as an exclusive factor of the country’s food security
, Pages: 75-80 Gelena Pruntseva, Nazariy Popadynets, Marta Barna, Ihor Stetsiv, Iryna Stetsiv, Valentyna Yakubiv, Lyudmila Shymanovska-Dianych, Yana Fedotova, Maria Karpiak and Iryna Hryhoruk PDF (650K) |
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Abstract: The agricultural production, due to the specificity of the functioning of the agricultural industry, is influenced by factors that have significant impacts on agricultural enterprises and determine the importance of state support. The unpredictable factors of agrarian production such as weather, natural disaster, and epidemics increase the risks of agricultural business. That is why farmers need to attract investments. But some farmers do not attract investment because of government subsidies. Besides, using government subsidies could have a negative impact on agrarian business. So, it is necessary to establish the effectiveness of governance for agricultural production and food security in general. DOI: 10.5267/j.ac.2020.10.012 Keywords: Agricultural Production, Food Security, Investment, Governance, Government Subsidies, Farmers
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10. |
Relationship between saving and investment pattern and orientation towards finance among working women in the universities of Saudi Arabia
, Pages: 81-88 Wardah Abdulrahman Abdullah Bindabel and Ansa Savad Hamza Salim PDF (650K) |
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Abstract: The main objective of the study was to find out the relationship between saving and investment pattern and orientation towards finance among the working women at the universities of Saudi Arabia. Orientation towards finance (ORTOFIN) is one's attitude towards effectively managing financial activities. This attitude is backed by individual behavior toward financial management. ORTOFIN scale was made as a construct to measure the behavioral dispositions of individuals that are connected to their behavior patterns towards finance and orientations. The data was collected using the ORTOFIN scale which was constructed and used in the European population as well as validated using standard procedures into the Asian population. The present study concentrates on the working women at the Universities of Saudi Arabia. The data collected from 192 women employees of different Universities in Saudi Arabia. This study states there is a significant positive relationship among the saving and investment pattern and orientation towards finance among the working women at the universities of Saudi Arabia. The finding of the study revealed Financial Management Behavior act as a major contributor to the orientation towards finance and the factor of personnel planning is another significant contributor towards ORTOFIN. DOI: 10.5267/j.ac.2020.10.011 Keywords: Financial Orientation, Orientation towards Finance, Behavioral Finance, ORTOFIN, Kingdom of Saudi Arabia, Saving and Investment pattern, Financial Management Behavior Scale (FMBS)
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11. |
Customer value is reviewed in terms of customer relationship learning and customer engagement: Evidence from banking industry
, Pages: 89-94 Feliks Anggia B.K. Panjaitan and Hotman Panjaitan PDF (650K) |
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Abstract: This study is to examine the effects of service quality, customer relationship learning, product quality, and customer engagement on increasing customer value. The researchers propose a model, and plan to show the concept of customer engagement variables as intervening variables. The study population includes the customers of Bank Jatim and uses the SEM analysis and the purposive sampling method for 384 respondents. The proposed model shows customer engagement acts as a good intervening variable. Customer value increases, as customer engagement increases. Finally, customer relationship learning determines the value of the existence of customer engagement in bank service customers. DOI: 10.5267/j.ac.2020.10.010 Keywords: Service quality, Customer relationship learning, product quality, Customer engagement, Customer value
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12. |
The estimation of banking industry staffing level benchmark: A case study on Kuwaiti banks
, Pages: 95-98 Yaser A. AlKulaib and Musaed S. AlAli PDF (650K) |
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Abstract: This study aims to examine whether or not Kuwaiti banks are overstaffed based on the data of ten Kuwaiti banks listed at Kuwait stock exchange (KSE) over the period 2010-2018. Using panel regression analysis, the results show that six banks were overstaffed while the remaining four banks were understaffed. Kuwait Finance House (KFH) was the most overstaffed bank in Kuwait while Commercial bank was the most understaffed bank. Gulf bank was the closest to the estimated number of staff followed by AlAhli bank. The results also revealed that there was a statistically significant inverse relationship between staffing level and return on assets (ROA) while, on the other hand, there was a statistically significant direct relationship between total assets and the number of branches with staffing level. DOI: 10.5267/j.ac.2020.10.009 Keywords: Staffing Level, Kuwait Banks, Kuwait Stock Exchange (KSE), Overstaffing, Understaffing
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13. |
The effect of accounting information system on corporate governance
, Pages: 99-110 Kayed Ab Allah Al-Attar PDF (650K) |
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Abstract: In this study, (72) financial managers and managers of the accounting department within the pharmaceutical industry in Jordan during the fiscal year 2019-2020 were exposed to a questionnaire in order to examine the influence of AIS applications on the outcomes of accounting corporate governance. Researcher adopted accounting governance variables from different studies and included Control, Commitment to Accounting Standards, Performance Evaluation and Add Confidence and Credibility to the survey. Results of study indicated an influence of all given variables of accounting governance on the outcomes of corporate governance which is attributed to the quality of accounting information and making sure that all information given are based on the standards of accounting. Some recommendations were presented with the study later on. DOI: 10.5267/j.ac.2020.10.008 Keywords: AIS Applications, Quality of Accounting Information, Corporate Governance, Accounting Governance
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14. |
Business environment and labor productivity: The case of the Vietnamese firms
, Pages: 111-118 Thi Thu Cuc Nguyen, Huu Trinh Nguyen, Thi Kim Oanh Thai, Thi Dieu Anh Ho, Nguyen Van Tuyen, Thi Minh Thy Le, Thanh Cuong Nguyen and Cong Binh Ngo PDF (650K) |
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Abstract: This paper examines the effects of the business environment on the labor productivity of Vietnamese manufacturing firms in the period of 2010-2018 using enterprise-level panel data drawn from Vietnamese Annual Enterprise Censuses and province-level surveys of the Provincial Competitiveness Index. Results show that in addition to traditional determinants, variables related to ease of business are found to contribute significantly to the labor productivity throughout the sample. The results support the arguments that Vietnam’s government policy in building a good business environment plays a crucial role in stimulating the economic growth, especially in terms of a broaden base for the economic development. Empirical studies about the in-depth effects of institutional changes on the labor productivity in the manufacturing industries will be fruitful research agenda. DOI: 10.5267/j.ac.2020.10.007 Keywords: Labor productivity, Business environment, Ease of business, Manufacturing firm, Vietnam
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15. |
The effect of the credit query in reducing credit risks from the viewpoint of workers in Jordanian banks
, Pages: 119-126 Ibrahim Marwan Khanji and Ahmad Zakaria Siam PDF (650K) |
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Abstract: The study aimed to identify the impact of the credit query in reducing credit risks from the viewpoint of workers in Jordanian banks, and to achieve the goal of the study, the researchers adopted the descriptive analytical approach, where a questionnaire is designed and distributed to a sample of (176) individuals within the upper and middle administrative levels in Jordanian banks. The study reached a set of results, the most important of which is the existence of a negative correlation between the level of use of the credit query system and each of the financial, administrative and legal credit risks, in addition a statistically significant effect of using the credit query system in reducing the financial, administrative and legal credit risks. The study recommended that Jordanian banks should continue to use the credit system because of its positive effects on the efficiency and effectiveness of granting credit to business organizations or individuals alike. DOI: 10.5267/j.ac.2020.10.006 Keywords: Credit inquiry, Credit risk, Jordanian banks
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16. |
The effects of accounting benefit, ERP system quality and management commitment on accountants’ satisfaction
, Pages: 127-136 Thanh Hung Nguyen, Quynh Trang Nguyen and Le Dinh Hoang Vu PDF (650K) |
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Abstract: Enterprise Resource Planning (ERP) systems are the largest software packages of information systems adopted by many organizations all over the world. The utilization of ERP systems has been considered as a key determinant of competitive advantages. The main objective of the present study is to propose a model of the accountant’s satisfaction in using enterprise ERP systems. Data were collected by using a questionnaire survey of almost 225 accountants working from 42 large Vietnamese construction firms. The results show that accounting benefits, ERP system quality and management commitment had significant effects on accountant’s satisfaction in the ERP environment. The study also indicate that the management commitment had an impact on ERP system quality and ERP system quality had a positive relationship with accounting benefits as well. Based on these findings, implications for managers in Vietnamese construction firms in providing accounting information quality are discussed. DOI: 10.5267/j.ac.2020.10.005 Keywords: Accounting benefit, Accountant satisfaction, ERP system quality, Management commitment
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17. |
Examining the random walk hypothesis in the Amman stock exchange: An analytical study
, Pages: 137-142 Samer Fakhri Obeidat, Laith Akram al-qudah and Faris Irsheid al kharabsha PDF (650K) |
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Abstract: The current study aimed to examine the weak-form efficiency of the Amman Stock Exchange using the weekly stock closing prices of shares for the period 2017-2019. In order to achieve the research objective, the study used the time lags that occurred between one and three weeks through the following tests: simple regression, Pearson correlation coefficient, and Spearman correlation coefficient. The study sample consisted of 179 companies. The current study concluded that the weekly stock closing prices of the shares of public joint-stock companies in the Amman Stock Exchange do not follow the Random Walk Hypothesis of prices, and therefore, do not follow the characteristics of a normal distribution. Therefore, the Amman Stock Exchange is inefficient at the weak-form level. Consequently, the lack of randomness in weekly stock closing price movements does not comply with the hypothesis of the first study. Likewise, the lack of independence of the changes in the current weekly stock closing prices from the previous ones also does not correspond to the hypothesis of the second study. DOI: 10.5267/j.ac.2020.10.004 Keywords: Weak form, Financial stock exchanges, Market efficiency, Random Walk, Stocks Closing Prices
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18. |
Determinants of corporate performance: Empirical evidence from the insurance companies listed on Abu Dhabi securities exchange (ADX)
, Pages: 143-150 Abdullah AL-Mutairi, Hani Naser and Kamal Naser PDF (650K) |
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Abstract: The purpose of this study is to identify factors that impact the performances of the insurance companies listed on ADX. Factors employed in this study include liquidity, general and administration expenses, risk, size, tangibility and age. The annual financial statements of all seventeen insurance companies listed on ADX covering the period 2013-2019 were sampled and analyzed through a panel regression. The analysis indicates that corporate age is the most significant positive factor that determine the profitability of the insurance companies listed on ADX. The durability of the insurance company in the GCC countries suggests that the firm has created good image, attract more customers, increased revenues to cover expenses and make profit. Thus, age is an important positive factor of the performance of insurance companies listed on ADX. Moreover, it is obvious that dissatisfied customer with the service of an insurance company will not only cease dealing with it, they deliver bad news about it by using the word of mouth and the powerful social media that play efficient role in formulating the image about the company. The outcome of this study might help investors in formulating their decision to invest in an insurance company. For instance, it helps them to focus on the age of the insurance company before they make their decision. DOI: 10.5267/j.ac.2020.10.003 Keywords: Insurance firm, Firm performance, Profitability, Abu Dhabi Securities Exchange (ADX)
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19. |
Sustainable reporting practices of selected cement companies in India: A case study
, Pages: 151-160 Vineet Chouhan, Raj Bahadur Sharma and Shubham Goswami PDF (650K) |
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Abstract: Sustainability reporting, under organizational reporting framework, gives information about economic, environmental, social, and governance performance (GRI). Corporate sustainability reporting has a strong practice of environmental reporting with corporate principles. Despite various guidelines such as GRI, the reporting and presentation of sustainable items are not common in practice. The study aims to analyze the current sustainability of Accounting Practices in Indian Cement Companies. To analyze the same, researchers have taken a case study of five prominent cement companies, JK Cement Ltd., Shree Cement Ltd., ACC Cement Ltd., Binani Cement Ltd., and Ambuja Cement. The study observed the common reporting methods of the selected companies under various common heads in the Indian Cement companies and later to make a comparison amongst them, further by taking the views of the company respondents, with a questionnaire. For measuring combined effect of the selected companies, financial and non-financial disclosure of the selected 13 items for sustainable reporting has been considered, and to analyze the independent variables having influenced upon the combined effect of dependent variables MANOVA statistical technique was applied. It was found that there is a critical difference in the reporting of financial and non-financial sustainability factors by Indian cement companies. The study concluded that the corporations should follow the best standards of environmental sustainability for strengthening their activities and documentation on sustainable growth. DOI: 10.5267/j.ac.2020.10.002 Keywords: Sustainable Reporting, Business Ethics, Financial Disclosure, Non-financial Disclosure
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20. |
Investment attractiveness rating and factors affecting
, Pages: 161-166 Irany Windhyastiti, Syarif Hidayatullah and Umu Khouroh PDF (650K) |
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Abstract: This research aims to determine: 1) rating of investment attraction based on investor assessment; and 2) the factors which have significant effects on investment attraction of the city. Location research is in Batu city Indonesia with number of samples as 65 investors. The data analysis technique of this study uses a Multiple Regression Analysis. The independent variables used in this study are: 1) infrastructure; 2) labor availability; 3) agglomeration; 4) natural resources, 5) markets; 6) licensing system, and 7) leadership. Investment attraction is indicated with rating assessment by investors. The results show: 1) rating of Batu city investment attraction is high; and 2) licensing system and leadership have significant influences on investment attraction. Based on the result, it is very important for a city to create a conducive climate (pro investment) to attract investors, especially in the ease of the licensing system. In addition, local governments must be able to provide positive signals in the form of commitment for the investment development in Batu city. This is necessary since the city development process really needs investor support. DOI: 10.5267/j.ac.2020.10.001 Keywords: Investment Attraction, Licensing System, Leadership, Rating
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21. |
Audit committee quality and audit report lag: the role of mandatory adoption of IFRS in Saudi companies
, Pages: 167-178 Mahfod Mobarak Aldoseri, Nasr Taha Hassan and Magdy Melegy Abd El Hakim Melegy PDF (650K) |
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Abstract: This paper aims to examine the effect of audit committee characteristics on audit report lag, and also explores whether this effect will vary between before and after mandatory adoption of IFRS in Saudi listed companies. Based on a Saudi sample of 388 firm-year observations from 2015 to 2018, the Poisson regression analysis shows that among audit committee characteristics, only audit committee financial experience significantly influences the timing of financial reporting. The result indicates a weak influence of audit committees on timeliness of financial reporting, which is consistent with the results of most of previous studies. On the other hand, the results show a strong impact of the adoption of IFRS on the context of that relationship, where the results show the impact of IFRS on audit report lag, audit committee quality and the association between them. DOI: 10.5267/j.ac.2020.9.019 Keywords: IFRS, Audit committee quality, Audit report lag, Saudi environment, Timeliness
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22. |
Factors affecting business performance of manufacturing enterprises
, Pages: 179-190 Le Anh Tuan and Nguyen Thi Huyen Tram PDF (650K) |
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Abstract: The study has surveyed 285 manufacturing enterprises in central Vietnam as a representative sample, through which the research has analyzed the current status of operation of manufacturing enterprises in Central Vietnam. The research results also pointed out 5 factors: (1) Labor; (2) Enterprise size; (3) Financial management capacity (4) Capital structure and (5) System of policies and legislation in descending order of affecting the performance of enterprises through regression model. Besides, the study has given specific policy suggestions through the current situation and research model to improve business performance for manufacturing enterprises in Central Vietnam in the future. DOI: 10.5267/j.ac.2020.9.018 Keywords: Manufacturing enterprises, Business performance, Vietnam
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23. |
The effect of information technology on the quality of accounting information
, Pages: 191-196 Abubkr Ahmed Elhadi Abdelraheem, Asaad Mubarak Hussaien, Mohammed Abaker Ahmed Mohammed and Yosra Azhari Elamin Elbokhari PDF (650K) |
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Abstract: This paper aims to study the effect of using information technology on the quality of the accounting information by studying the dimensions of information technology (collecting, processing, storing, and sending data, and information) with a field study on the Nile Bank in Sudan. The researchers followed some descriptive analytical approach to conduct the field study. Researchers distributed (120) questionnaires and (104) of them were collected. The study concluded that dimensions of information technology (collecting, processing, storing, and transmitting data, and information) impact the dimensions of accounting information quality (relevance, reliability, understandability, consistency, comparability). DOI: 10.5267/j.ac.2020.9.017 Keywords: Information Technology, Accounting Information System, Accounting Information Quality
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24. |
Firm size and supply chain finance in Indian pharmaceutical industry: Relational firm analysis of size determinants and cash conversion cycle
, Pages: 197-206 Anis Ali PDF (650K) |
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Abstract: The sales revenue, total resources, and Working Capital (WC) of the business organization measure the size of the firms. The Cash Conversion Cycle (CCC) defines the Supply Chain Finance (SCF) of the business organization and is affected by the size determinants of the firms. The components of the WC are considered to measure the CCC and define the status of the SCF of the business organization. The study is based on the secondary data obtained from the financial statements of the selected leading Indian pharmaceutical companies. The objective of the study is to find out the relation and degree of governance of size determinants on the SCF. The analysis is based on the ranks of size determinants and relative ranks of inventory days, accounts receivables days, and accounts payables days. The Spearman rank correlation is applied to get the qualitative relationship between the ranks of size determinants and ranks of components of CCC. The study reveals that size determinants affect the SCF positively but moderately while WC governs directly as WC comprises the components of CCC. The study suggests the shortening of the CCC by focusing on size determinants on WC and especially accounts payables in Indian pharmaceutical companies. DOI: 10.5267/j.ac.2020.9.016 Keywords: Cash conversion cycle, Supply chain finance, Size determinants, Working Capital, Saudi Arabia
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25. |
The impact of corporate governance mechanisms and IFRS on earning management in Saudi Arabia
, Pages: 207-224 Abdulwahid A. Hashed, and Faozi A. Almaqtari PDF (650K) |
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Abstract: The current research seeks to assess the influence of corporate governance mechanisms and IFRS adoption on compliance with IFRS, earning management, and financial reporting quality(FRQ). A sample comprises 102 Saudi listed firms for the period spanning from 2014 up to 2019 was used. The study used descriptive statistics, correlation analysis and multivariate analysis to estimate the results. The results reveal that while board size, board meeting and foreign ownership had negative effects on compliance with IFRS, board and audit committee independence exhibited a positive effect. Further, the results demonstrate that there was a sign of earning management under IFRS when a performance magnitude was used. The results also indicate that board and audit committee size, audit committee meeting and managerial ownership had significant negative effects on financial reporting quality however, board and audit committee independence showed a significant positive effect. Importantly, the results found that FRQ under IFRS was better than Saudi GAAP. The present research provides practical implications for policy makers, stock market authority, and academicians. More regulatory and disclosure requirements have to be imposed and financial reporting supervisory board need to be formed. The present research provides a novel contribution to IFRS compliance, earning management, financial reporting quality and corporate governance literature. It has a unique contribution as it attempts to investigate this issue in the context of an emerging economy and a recent IFRS adopter; Saudi Arabia that has special country-specific characteristics. The study also provides an evidence by investigating earning management and financial reporting quality under both sets of accounting standards; IFRS and Saudi GAAP. DOI: 10.5267/j.ac.2020.9.015 Keywords: Corporate governance mechanisms, IFRS adoption, Compliance with IFRS, Earning management, Financial reporting quality, Saudi GAAP
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26. |
The role of financial technology on development of MSMEs
, Pages: 225-230 Ica Rika Candraningrat, Nyoman Abundanti, Ni Wayan Mujiati, Ray Erlangga and I Made Gilang Jhuniantara PDF (650K) |
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Abstract: The purpose of this research is to describe the role of Financial Technology in enhancing financial inclusion in the Micro, Small and Medium Enterprises (MSMEs) industry through accessibility and assistance. MSMEs play a very important role in increasing regional and national economic growth. There are various types of MSMEs that are scattered throughout Indonesia with the main problem being capital. The rapid growth of FinTech's financing business is currently an alternative that can be accessed by all levels of society through financial inclusion, which is one way to socialize the financial sector specially to facilitate financial access services for the public. The population in this study were members of Dekranasda (Dewan Kerajinan Nasional Daerah) Denpasar assisted and the determination of samples was based on purposive sampling method which includes people involved in a weaving craft business and have been fostered for at least 3 years. The method of data collection is by questionnaires, documentation and interviews. The method of data analysis in this study is the instrument test, classic assumption test, and hypothesis testing with the SPSS program. Based on the results of the analysis of accessibility and assistance, financial technology has a significant positive effect on capital development. By funding MSMEs, lenders get investment alternatives with attractive returns. On the other hand, MSMEs borrowers get business capital loans without collateral with an easy and fast online process. DOI: 10.5267/j.ac.2020.9.014 Keywords: Financial Technology (Fintech), MSMEs, Accessibility, Assistance
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27. |
Microeconomics and raw material price on capital structure adjustment through dynamic target in Indonesian textile industries
, Pages: 231-238 Sunita Dasman, Erie Febrian, Sulaeman Nidar and Aldrin Herwany PDF (650K) |
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Abstract: This study aims to examine the effects of company-specific macroeconomic fluctuation in raw materials prices on the speed of adjustment through dynamic targeting capital structure on textile companies listed on the Indonesia Stock Exchange during 2012 and the second quarter of 2020. Using panel data regression of the fixed-effect method, we discovered that the speed of adjustment varies in each industry and period. Textile companies listed on the Indonesia Stock Exchange adjust their capital structure through a dynamic target of 53.3% per year. It takes 1 year and 10 months to close the target capital structure. The factors that determine the target capital structure include company size, tangibility, liquidity and growth opportunity, asset utilization, as well as retained earnings. On the other side, factors that contribute to the speed of adjustment include company size, growth opportunity, earnings volatility, asset utilization, retained earnings, distance to the target, and economic growth. Other factors that also affect the speed of adjustment include fluctuations in the prices of cotton and crude oil. The result of this study is expected to provide an optimal capital structure formulation to the textile industries in Indonesia to finance companies’ operational activities and growth opportunities effectively. This study also provides an overview of how textile companies make capital structure adjustment, as there are changes in company-specific factors, macroeconomic conditions, and fluctuation in raw material prices. DOI: 10.5267/j.ac.2020.9.013 Keywords: Adjustment speed, Company-specific, Dynamic capital structure, Macroeconomics, Raw material price
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28. |
Key success factors in implementing international public sector accounting standards
, Pages: 239-248 Ayman Ahmad Abu Haija, Alaa Mohammad AlQudah, Laith Abdallah Aryan and Mohammad Jamal Azzam PDF (650K) |
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Abstract: There is a worldwide debate regarding the implementation of IPSAS due to the potential obstacles that may face governments when they start moving to the full accrual basis. Of equal importance is that each country has its own needs and thus it must be examined separately to find out the factors that may motivate or limit the effective adoption of IPSAS. This study, therefore, aims to explore the key success factors when it comes to adopting IPSAS in Jordan. A 39-item questionnaire was devised and sent to 500 employees who were working in public entity departments. Only 326 questionnaires were returned, yielding a response rate of 65.2%. The results suggested that the most important factors were local legislation and the infrastructure, while the training of staff came at the bottom of list. These results are important to regulators for drawing up a clear road map for transferring fully to IPSAS. DOI: 10.5267/j.ac.2020.9.012 Keywords: IPSAS, Key success factors, Public entities, Performance
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29. |
Measuring the effect of international financial reporting standards on quality of accounting performance and efficiency of investment decisions
, Pages: 249-256 Alaa Malo-Alain, Mahfod Mobarak Aldoseri and Magdy Abdul Hakim Melegy PDF (650K) |
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Abstract: The purpose of this study is to verify the impact of international financial reporting standards (IFRS) adoption on the quality of accounting performance and efficiency of investment decisions in the Saudi business environment as an emerging economy. In this study, content analysis approach is adopted for examining the annual reports of Saudi companies listed in Saudi stock exchange market during two periods: the pre-adoption of IFRS period during the year of 2016 and the post-adoption of IFRS period during the period 2017-2018. The study uses accounting information, accounting conservatism, earning management as alternative variables of accounting performance quality. In addition to accounting profit quality, liquidity and cost of capital are also used as alternative variables for the efficiency of investment decisions. The study finds that there was a positive impact of IFRS adoption on the quality of accounting performance, since it was positively related to both the qualitative characteristics of information and accounting conservatism, while it was negatively related to earning management. IFRS also improves the efficiency of investment decisions, as it was positively related to both profit quality and liquidity while it was negatively related to cost of capital. DOI: 10.5267/j.ac.2020.9.011 Keywords: IFRS, Conservatism, Earning Management, Quality of Accounting Performance, Cost of Capital, Efficiency of Investment decision
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