Open Access Article | |||
1. |
Accounting conservatism: Does business strategy and investment level matter?
, Pages: 709-718 Nasr Taha Hassan PDF (650K) |
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Abstract: This study aims to contribute to the ongoing debate over accounting conservatism through examining whether the corporate strategy can provide a logical justification for the conservatism, and whether this justification is consistent with or contradicts the contractual justification. In this context, the study examines the impact of corporate strategy on the level of conservatism in financial statements, and the impact of the level of conservatism on corporate investment level. Using data from a sample of non-financial Saudi listed companies, the results show that prospector companies are more likely to provide more conservative financial statements, and the level of conservatism influences investment level. The results also show that the integration between corporate strategy and the level of conservatism influence the level of investment. These results suggest that accounting conservatism can be explained in the context of both business strategy and contractual benefits. Also, the results imply that adopting business strategy could influence the financial reporting process. DOI: 10.5267/j.ac.2021.2.014 Keywords: Business strategy, Accounting conservatism, Investment level, Saudi business environment
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Open Access Article | |||
2. |
The determinants of lending interest rates of Jordanian listed commercial banks
, Pages: 719-726 Ali Mustafa Al-Qudah PDF (650K) |
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Abstract: This study aimed to examine the determinants of lending interest rates of 13 Jordanian commercial banks listed on the Amman Stock Exchange for the period 2011-2018. The factors include liquidity, profitability (ROA), bank size, operating cost ratio, deposit interest rate and inflation rate. The fixed effects model was performed as suggested by Hausman test. The results of the fixed effects model show that ROA and bank size had negative significant impacts on lending interest rates. Liquidity had a negative insignificant impact. The results also show that deposit interest rate and inflation had a positive significant impact on lending interest rate of Jordanian commercial banks. Operating cost ratio also had a positive insignificant impact. Thus, the results indicate that ROA, bank size, deposit interest rate and inflation were good determinants of the lending interest rates of Jordanian listed commercial banks. The study suggests that banks should use profitability and the size of the bank as tools to reduce the lending interest rate, as it is one of the factors that can cause a further decrease in the lending interest rates. DOI: 10.5267/j.ac.2021.2.013 Keywords: Lending interest rate, Commercial banks, Liquidity, Deposit rate
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3. |
Earnings quality before and after the implementation of PSAK 69
, Pages: 727-734 Naniek Noviari, I Gusti Ayu Eka Damayanthi and I Gusti Ngurah Agung Suaryana PDF (650K) |
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Abstract: PSAK 69 Agriculture regulates the accounting treatment of agricultural activities in Indonesia. The measurement of biological assets is the most important part of the arrangement of PSAK 69. PSAK 69 deals with biological assets measured at fair value less costs to sell at the beginning and end of the reporting period. Characteristics of growing biological assets will have an impact on the growth in fair value of assets, so there will be differences in fair value at the beginning and end of the financial reporting period. The difference in fair value of biological assets, whether realized or not, is recognized as gain in the current period. This will have an impact on the quality of the company's earnings. This study aims to examine differences in earnings quality before and after the implementation of PSAK 69 in agricultural sector companies listed on the Indonesia Stock Exchange. The research was conducted on 14 agricultural companies listed on the Indonesia Stock Exchange in the 2016-2019 observation period. Earnings quality is measured by the earnings response coefficient. Earnings response coefficients are estimated using the firm specific coefficient model (FSCM) and pooled cross-sectional regression model (CSRM) methods. This study measures the quality of earnings before and after the application of PSAK 69. The quality of earnings before and after the application of PSAK 69 is tested by a paired two-sample t-test. The results of this study found no difference in earnings quality before and after the application of PSAK 69. DOI: 10.5267/j.ac.2021.2.012 Keywords: Agriculture, Earnings quality, Earnings response coefficient
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4. |
Profitability and value of firm: An evidence from manufacturing industry in Indonesia
, Pages: 735-746 Siwi Aryantini and Sapto Jumono PDF (650K) |
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Abstract: The purposes of this research were to understand the profitability performance and its influencing factors based on DuPont Analysis and the effect toward the value of the firm. As a causality research, the sample data involved were 20 non-banking and finance companies as listed on LQ-45 of Indonesian Stock Exchange (IDX) years of 2014-2018, which could be classified into two types of industry; manufacture and non-manufacture sectors. The research’s quantitative design as a systematic approach of the relation among the variables focusing on the hypothesis testing done by data analysis tools using GLS Regression test of panel data. Profitability determinants of net profit margin, total assets turnover and financial leverage multiplier showed the result of positive and significant effect toward ROE (return on equity), while growth sales ratio showed the negative and significant effect. In terms of the relationship toward value of firm, the ROE and industry types were proven to have significant positive contributions. This implied that the management must be more efficient and effective in managing the company operational activities and minimizing the operational costs and other costs, both in the assets and debt usage to have maximal product results, to increase sales, net income, profit rate and return of equity where they will affect the increasing of investors’ and the market’s trust toward the firms since the increasing of return on equity for the owners and the shareholders. The different characteristics, traits and features of the industry’s types resulted in the different use of strategies in managing the firms’ operational activities. These all affected the increasing value of the firm. DOI: 10.5267/j.ac.2021.2.011 Keywords: DuPont Analysis, Growth Sales Ratio, Profitability, Types of Industry, Value of Firm
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5. |
An analysis on the implementation of cloud accounting to the accounting process
, Pages: 747-754 Frihardina Marsintauli, Eka Novianti, Roni Patar Situmorang and Fransiska Diana Fadjar Djoniputri PDF (650K) |
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Abstract: The use of an online accounting system is considered to be a major innovation in accounting in the application of the stages of the company's accounting cycle. The purpose of this study is to evaluate cloud-based accounting systems in terms of compliance with accounting standards, security systems using the Parkerian Hexad theory and the functions of each part of Accurate Online. The form of this research is qualitative and quantitative. The data collection method was carried out by distributing questionnaires and interviews to Accurate Online users. The sample of this research was obtained as many as 113 samples. The results of this study indicate that Accurate Online has passed all levels of technological readiness, and is on a scale of 9 in technological readiness, which has become a trusted cloud-based accounting information system that has proven to be successful in operating the technology, as well as in providing the benefits of ease of management. corporate financial transactions. DOI: 10.5267/j.ac.2021.2.010 Keywords: Cloud accounting, Financial statement, Accurate online
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6. |
An analysis of auditors’ perceptions towards artificial intelligence and its contribution to audit quality
, Pages: 755-762 Ibrahim Albawwat and Yaser Al Frijat PDF (650K) |
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Abstract: Artificial intelligence (AI) systems have significantly changed the audit process; nevertheless, the AI revolution opponents view this growth as a step-back as many auditors will fail to adapt to this new environment and will drop behind. Our descriptive study examines the perceived ease of use, usefulness, and contribution to the audit quality of different AI’s types. To address local audit firms concerns about their readiness to use AI systems in auditing processes and to advance auditing research, we examine whether perceived ease of use, usefulness, and contribution to audit quality vary by AI systems type (Assisted, Augmented, and Autonomous). An online questionnaire was used to collect data from 124 auditors representing local audit firms in Jordan. Our results indicate that auditors perceive Assisted and Augmented AI systems as ease of use in auditing while perceiving Autonomous AI systems as complicated to use. Besides, Auditors are underestimating Autonomous AI systems’ capabilities and perceived it as not useful for auditing. The results also reveal a significant difference between the perceived contribution to audit quality by the three AI systems types. This study contributes to the existing literature on AI and auditing by developing and testing a measure for AI systems’ perceived contribution to audit quality. This study also provides empirical evidence on how Jordan local firms auditors perceive AI use in auditing. DOI: 10.5267/j.ac.2021.2.009 Keywords: Auditing, Artificial intelligence, Perceived ease of use, Perceived usefulness, Audit quality
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7. |
Liquidity variations and variability cohesiveness with revenue and profitability: A case of Saudi energy sector companies
, Pages: 763-770 Anis Ali PDF (650K) |
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Abstract: Liquidity refers to the paying ability of the business organization while profitability assesses the profit earning capacity of the business organization. The liquidity of the business organization can be bifurcated into two based on time i.e., short-term and long-term liquidity. The short-term liquidity reveals the operational efficiency while long-term liquidity refers to the financial capability to repay the long-term debts of the business organization. The short-term paying ability is the management of the working capital or efficient management of the current assets and current liabilities. The current assets and current liabilities are directly related to the revenue of the business and further affected by the profitability, indirectly. The long-term paying ability or financial health of the business organization is reflected by the debts and equity ratio. The energy sector of Saudi Arabia is a prominent sector and contributes to the economy progressively. The study is based on secondary data and reveals the long-term and short-term liquidity variations and the cohesiveness of long-term and short-term liquidity with the revenue and profitability of energy sector companies. The study reveals the significant variations in the short-term and long-term liquidity and cohesiveness between the revenue, profitability, and short-term and long-term liquidity of the energy sector companies. DOI: 10.5267/j.ac.2021.2.008 Keywords: Cohesiveness, profitability, liquidity, Saudi Arabia, Energy sector, Debt-equity
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8. |
On the price volatility of steel futures and its influencing factors in China
, Pages: 771-780 Tzuchia Chen, Wenjing Li and Shuyan Yu PDF (650K) |
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Abstract: Steel futures have the function of price discovery and hedging. Steel related enterprises can judge the hedging strategy through the direction of steel futures price volatility, and reasonably avoid the risk brought by price volatility. Therefore, it is particularly important to study steel futures price volatility and its influencing factors. Because steel futures in China have characteristics of peak and rear tail aggregation, the paper constructs Model of GARCH (1,1) to make positive analysis of futures price volatility and its influencing factors of deformed steel bars and hot rolled coils, and the following conclusions have been drawn: (1) The volume and open interest of deformed steel bars have very significant explanatory ability to futures price volatility of deformed steel bars; (2) The volume and open interest of hot rolled coils also have very significant explanatory ability to futures price volatility of hot rolled coils; (3) The sustainable capacity of the price volatility of deformed steel bars and hot rolled coils is relatively small; (4) Iron ore price have no obvious explanatory ability to futures price volatility. Finally, some managerial implications and suggestions are derived from the analysis of the proposed model. DOI: 10.5267/j.ac.2021.2.007 Keywords: Deformed steel bars futures, Hot rolled coils futures, GARCH model
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Open Access Article | |||
9. |
Decentralization of local self-government under the conditions of administrative-territorial reform in Ukraine
, Pages: 781-790 Zinoviy Siryk, Nazariy Popadynets, Mykhaylo Pityulych, Olha Chakii, Inna Irtyshcheva, Olena Panukhnyk, Vasyl Hyk, Yana Fedotova, Yuliia Rohozian and Nataliia Lysyak PDF (650K) |
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Abstract: The essence of administrative and territorial reform and decentralization reform in Ukraine is to move away from a centralized model of government in the state, ensure the ability of local self-government and build an effective system of territorial power organization in Ukraine based on the principles of subsidiarity, omnipresence and financial self-sufficiency of local self-government. The purpose of the article is to identify areas for improving the effectiveness of the administrative-territorial reform in Ukraine based on assessing the results of its financial decentralization component. Peculiarities of changing the territorial basis of local self-government in Ukraine investigate the necessity of moving from a voluntary amalgamation of territorial communities to the stage of their formation according to clearly defined criteria and providing opportunities for the development of such communities in the future. It focuses on the need to consolidate areas and change the system of interaction of the subregional level with the amalgamated territorial communities at a basic level. DOI: 10.5267/j.ac.2021.2.006 Keywords: Amalgamated territorial communities, Administrative and territorial reform, Local self-government, Financial viability, Regions of Ukraine
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10. |
Exploring the internal factors influencing financial distress
, Pages: 791-800 Kuat Waluyo Jati, Linda Agustina Muhammad Ihlashul Amal, Indah Fajarini Sri Wahyuningruma and Zulaikha PDF (650K) |
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Abstract: This study aims to examine the effects of different factors influencing on financial distress. The population of this study includes industrial companies listed on the Indonesia Stock Exchange. Samples were processed by choosing 69 companies for three years of information which leaves us to have 150 observations. The sampling technique uses purposive random sampling and data is analyzed using PLS. The results show that firm size and liquidity negatively affect the financial distress while leverage positively affects the financial distress. In addition, institutional ownership moderates liquidity towards financial distress, firm size negatively affects liquidity, and liquidity does not mediate the effect of firm size on financial distress. The conclusion of this research is that management teams can avoid financial distress if they are able to manage liquidity ratios and leverage well, both ratios must be maintained so that they would not exceed firms’ financial abilities. Companies with big amount of total assets have an advantage in competition since it is not overshadowed by the condition of financial distress and they can easily gain stakeholders’ confidence. Institutional ownership in this study seems to encourage management to take risks related to company liquidity to generate profits by utilizing long-term debt in financing its operations. DOI: 10.5267/j.ac.2021.2.005 Keywords: Internal Factors, Financial Distress, Financial Factors, Ownership Structure
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Open Access Article | |||
11. |
The effect of COVID-19 in European union on the performance of Indonesian publicly listed palm oil companies
, Pages: 801-808 Hansen Tandra, Arif Imam Suroso, Mukhamad Najib and Yusman Syaukat PDF (650K) |
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Abstract: One of the leading industries that affect economic growth in Indonesia is the palm oil industry. The role of this industry depends on the level of exports from European Union countries. Based on the COVID-19 pandemic situation, international trade activities are hampered and could affect industry performance from a stock perspective. Therefore, this study aims to explore the impact of the COVID-19 cases that occurred in the European Union and related macroeconomic variables on the stock performance of the oil palm industry in Indonesia. This research also examines the impact of COVID-19 on certified sustainable companies and companies that are not certified. Panel regression was applied in this study with Eviews 11 Software.This research's observations are 13 palm oil companies in Indonesia which are listed on the Indonesia Stock Exchange (IDX) from March 2, 2020, to August 31, 2020. This study's results reveal that the world CPO prices and market capitalization affect the activities shares of palm oil companies in Indonesia.Meanwhile, from the grouping of certifications within companies, the impact of COVID-19 in the European Union was more substantial on companies that were certified as sustainable. Based on these results, The COVID-19 case in the European Union must be a concern for palm oil companies in Indonesia. DOI: 10.5267/j.ac.2021.2.004 Keywords: COVID-19, Palm Oil, Stock Performance, Sustainable Certification, Business Analytics
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Open Access Article | |||
12. |
The importance of implementing the responsibility accounting features in Jordanian public companies in limiting the occupational fraud from the point of view of internal auditors and external auditors
, Pages: 809-818 Eman Ahmad Al Hanini PDF (650K) |
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Abstract: This paper was conducted to determine the importance of applying the features of responsibility accounting in Jordanian shareholding companies in limiting occupational fraud from the point of view of internal auditors and external auditors. It focuses on comparing their opinions and attitudes towards this issue. The study used a questionnaire that was designed and distributed to a random sample of 98 internal auditors who were shareholders of the firms and 93 external auditors who audited the accounts of the companies. The data collection tool included paragraphs about the seven features of responsibility accounting represented like dividing the organizational structure of the company into responsibility centers, and the existence of a system of delegation to the managers of responsibility centers with their powers in the shareholding. Statistical analysis of the data was performed using the SPSS statistical package. It was found that there is a role to adopt and apply all the features of responsibility accounting in Jordanian shareholding companies from the point of view of both internal and external auditors in limiting occupational fraud. The study recommended the adoption of an accounting system in companies that are in line with responsibility accounting given their role in limiting occupational fraud. The study also sheds light on the importance of external auditors giving attention to reviewing and evaluating the organizational environment and administrative procedures in the company to ensure that they are consistent with integrity and honesty. DOI: 10.5267/j.ac.2021.2.003 Keywords: Responsibility Accounting, Jordanian Shareholding Companies, Occupational Fraud, External Auditors, Internal Auditors
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Open Access Article | |||
13. |
Factors affecting the use of generalized audit software in audit process in Indonesia
, Pages: 819-824 Metya Kartikasary, Sebastianus Laurens and Martogi Sitinjak PDF (650K) |
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Abstract: The financial world has grown significantly in the last five years, where insurance companies, finance companies, lending and borrowing between page users will increasingly grow along with technological developments. This should be an important concern for auditors because of the increasing number of transactions in digital and cyberspace, the audit methods or procedures must keep abreast of the times. This study hypothesizes the function of technology can help the performance of the auditor. Data collection is done by distributing questionnaires to auditors who work at the Public Accounting Firm (KAP). The analysis technique used is multiple linear regression. The results of the study will be presented after the data collection process is complete. DOI: 10.5267/j.ac.2021.2.002 Keywords: CAAT, UTAUT, Audit method
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14. |
Integral evaluation as the basis of analytical support for managing the competitiveness of socially-oriented retailers
, Pages: 825-836 Yaroslav Berezivskyi, Vasyl Zbarsky and Anna Zbarska PDF (650K) |
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Abstract: The advantages of an integral approach to assessing the competitiveness of retailers are substantiated, which allows obtaining a more thorough and versatile informative base for making further managerial decisions to ensure the development of trading business. A new approach to the integral evaluation of the competitiveness of retailers is developed. The list of functional and structural components of competitiveness was substantiated: marketing,financial and investment, material and technical, intellectual and personnel,innovation, logistic and social. It is proposed to use the methodological sequence of competitiveness assessment, which involves the alternate passage of the following stages: construction of an evaluation hierarchy, identification of the levels of the criterion importance, definition of a set of “local vectors” by evaluation criteria, conducting comparative evaluation of competing enterprises, hierarchical synthesis of alternative options for ensuring competitiveness. The methods of an expert survey are used to form an information and analytical base. Using the Saaty’s analytic hierarchy process and the Delphi method of an expert survey, a matrix of pairwise comparisons of the criteria of the retailers’ competitiveness is formed. The Gallup Institute methodology is used to form the sample of enterprises. A matrix of rating positions of the socially-oriented retailers is developed to enable evaluation.On the basis of the obtained results – analytical support of the policy(regarding the competitiveness level, state of security and coefficients of weight of its functional and structural components), the strategic principles of managing the competitiveness of socially-oriented retailers. A matrix of strategic decisions on managing the competitiveness of socially-oriented retailers is developed. DOI: 10.5267/j.ac.2021.2.001 Keywords: Enterprise competitiveness, Integral evaluation, Management, Development of retailers, Socially-oriented business
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15. |
Modeling broadband, mobile telephone and economic growth on a macro level: Empirical evidence from G7 countries
, Pages: 837-844 Tekin Birinci and Dervis Kirikkaleli PDF (650K) |
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Abstract: Information and Communications Technology (ICT) has played overwhelming roles in the economic and social development of nations and continents in the last two decades. This study aims to explore the impact of mobile telephone and broadband use on economic growth in G7 countries using annual data covering the period of 2000-2017. We performed Pedroni cointegration, Kao cointegration, fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), and panel Granger causality tests to investigate the causal and long-run effects. The empirical findings reveal that (i) mobile telephone and broadband use contribute to economic growth in the long-run; (ii) changes in mobile telephone and broadband use significantly lead to a change in economic growth. DOI: 10.5267/j.ac.2021.1.025 Keywords: Mobile Telephone, Broadband, G7, Economic Growth, Panel Cointegration
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Open Access Article | |||
16. |
The perceptions of loan officers and auditors of factors affecting auditor independence: Evidence from Palestine
, Pages: 845-854 Saher Aqel PDF (650K) |
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Abstract: The study investigates the perceptions of external auditors and loan officers regarding external auditor's independence in Palestine. Data were gathered using a questionnaire developed by the author and include 5 main issues related to the perception of external auditor’s independence. The sampling population identified for this study consists of external auditors working in domestic and international audit firms and financial statement users mainly loan officers in Palestine. The sample included 79 auditors and 76 loan officers. The findings revealed that there are significant differences in the perceptions of external auditors and loan officers in relation to provision of non-audit services, auditor’s economic dependence on a single audit client, and long relationship between an auditor and a client. The results revealed mixed results about the effect of presence of active audit committee on independence of the external auditors. Furthermore, acceptance of significant gifts from the client was considered an important factor that may influence auditor independence by loan officers and external auditor and thus significant differences between the two respondent groups were found in relation to acceptance of significant gifts from the client. These findings can be useful to policy makers and professional auditing bodies in Palestine on setting new regulations or strengthening existing ones to enforce auditor’s independence in Palestine. DOI: 10.5267/j.ac.2021.1.024 Keywords: Auditor independence, Palestine, Loan officers
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17. |
State management of import dependency and state’s economic security ensuring: New analysis to evaluating and strategizing
, Pages: 855-864 Ruslan Lupak, Ruslan Boiko, Marta Kunytska-Iliash, and Taras Vasyltsiv PDF (650K) |
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Abstract: The need to improve public administration of import dependency was characterized (in the example of Ukraine) and the signs of its influence and interconnection with ensuring the state’s economic security are characterized. The methodological sequence of import dependency evaluation is substantiated. Using Hotelling’s method of transformation (the method of principal components), the multiplicative form is presented and the integral index of import dependency of the country’s economy is calculated. Harrington’s interval scale is used to summarize the results of the integral evaluation of import dependency. The results of the evaluation have confirmed the high level of import dependency of the Ukrainian economy and clear tendencies for its strengthening, which is critically threatening to the country’s economic security. Using the tool of multivariate dynamic regression modeling, a statistically significant correlation between the level of import dependency and the country’s economic security is established. The economic and mathematical descriptive model of state management of the state’s economic security is formed, which is embedded in a methodical approach to strategizing the state policy of import substitution. The purpose of the state management of import substitution, the parameters of ensuring the country’s economic security agreed with it, the strategic priorities of the state policy of import substitution and the indicators of their implementation are determined. DOI: 10.5267/j.ac.2021.1.023 Keywords: Import dependency, State policy of import substitution, Methodology of evaluation and strategizing, State’s economic security
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18. |
The moderating role of director’s financial expertise in political connections and corporate financial performance in Pakistan
, Pages: 865-874 Murtaza Masud Niazi, Zaleha Othman and Sitraselvi Chandren PDF (650K) |
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Abstract: Prior theoretical and empirical studies have suggested that political influence affects the application of corporate governance and firm performance enormously. However, several fundamental questions remain to be answered. To fill this knowledge gap,the study's main objectives are examining the direct impact of political connection on firm financial performance in Pakistani non-financial listed companies and the moderating effect of director's financial expertise on political connections and firm financial performance. The study utilised panel data of 220 firms from 2008 to 2017 and used panel corrected standard error regression analysis. The results show that political connection negatively impacted firm financial performance, and director financial expertise as a moderator strengthened the relationship between political connections and firm financial performance. This study's results supported political economy theory in that weak judicial systems and unstable political systems have immense effects on investor’s rights. The study contributes to extending the existing literature on political connection by providing evidence of the impact of politically connected firms on firm performance in an emerging market. The study also deliberates on how the director’s financial expertise contributes towards the relationship. The findings could be generalised to other countries with similar degrees of development and culture. DOI: 10.5267/j.ac.2021.1.022 Keywords: Political connection, financial performance, directors’ financial expertise, political economy, Pakistan
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19. |
Cloud accounting information systems: Threats and advantages
, Pages: 875-882 Esra Al-Nsour, Sulaiman Weshah and Ahmad Dahiyat PDF (650K) |
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Abstract: When the Corona-virus pandemic hit the world, executing and performing the jobs of the remote world became an imperative, this pandemic became as motivator to create this study which aimed to reveal the advantages and threats that encounter the implementing of Cloud Accounting Information Systems CAIS from the view point of external auditors. For that purpose, a questionnaire was developed and distributed then from 198 valid questionnaires which were analyzed by a T- test. It has been found that the main advantages are a reduction of labor and overtime costs because of the ability to access the system from anywhere, while penetration, interruption, and confidentiality are the main threats, also it was found that there is a strong relationship between implementing cloud accounting information systems (CAIS) and the limiting manipulation of financial information. The study therefore recommended upgrading the security procedures of cloud accounting systems and holding courses for auditors to enhance their abilities in auditing CAIS. DOI: 10.5267/j.ac.2021.1.021 Keywords: Cloud Accounting Information System, External Auditors, Advantages, Threats, Jordan
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20. |
The effect of tax rate on sales tax compliance among Jordanian public shareholding corporations
, Pages: 883-892 Ahmad Farhan Alshira’h, Ali Mustafa Magablih and Moh’d Alsqour PDF (650K) |
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Abstract: Compliance to tax payment generally results in mitigating fiscal deficit and public debt, and in turn, provides funding to meet the economic and social development. However, regardless of the directed efforts of the government to increase sales tax compliance (or value added tax as it is referred to globally), Jordanian listed firms on the Amman Stock Exchange, compliance remains an issue in light of its negative impact on the government revenues. Literature dedicated to tax rate effects on sales tax compliance in the context of listed Jordanian firms on the Amman Stock Exchange has largely been lacking and as such, the study’s main objective is to examine the effect of tax rate on sales tax compliance among such firms. The study adopted a survey method with questionnaire copies distributed to 191 listed Jordanian firms. In the tabulation of data, only 169 questionnaire copies were deemed to be valid for the analysis. The formulated study hypotheses were tested using PLS-SEM and based on the results, tax rate has an insignificant effect on sales tax compliance. Future studies are recommended to provide further insight into the study determinants. The study contributes by furnishing information to and guiding policymakers and the listed Jordanian firms in enhancing sales tax compliance. DOI: 10.5267/j.ac.2021.1.020 Keywords: Sales Tax Compliance, Tax Rate, Jordanian Corporations
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21. |
Audit efficiency and board activity in Saudi Arabia: Empirical investigation
, Pages: 893-898 Khaled Salmen Aljaaidi, Omar Ali Bagais and Sultan Abdullah AlAbdullatif PDF (650K) |
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Abstract: The aim of this study is to empirically examine the association between audit efficiency and board activity among listed energy companies in Saudi Stock Exchange (Tadawul) for the period 2012-2019. The final sample of this study consists of 32 firm-year observations. Using the Pooled OLS regression, the study finds that audit efficiency was positively related to board activity. Moreover, the result indicates the complementary role of monitoring mechanisms in which audit efficiency complements the board activity. The study also provides insightful evidence to policy makers on the link of audit efficiency and board activity among energy companies. DOI: 10.5267/j.ac.2021.1.019 Keywords: Board activity, Audit efficiency, Saudi Arabia
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22. |
The effect of board characteristics on the audit committee meeting frequency
, Pages: 899-906 Khaled Salmen Aljaaidi, Raj Bahadur Sharma and Omar Ali Bagais PDF (650K) |
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Abstract: The focus of this study is to examine the impact of board of directors’ size and meetings on the audit committee meeting frequency among energy, materials and food and beverages sectors listed on Saudi Stock Exchange (Tadawul) for the period 2015-2017. The final sample of this study consists of 198 firm-year observations. Using the Pooled OLS regression, this study finds that board meeting is positively associated with audit committee meeting frequency. Furthermore, this study fails to report an association between board size and audit committee meeting frequency. This study provides insightful evidence to policy makers on the determinants influencing the audit committee meeting frequency among manufacturing companies. DOI: 10.5267/j.ac.2021.1.018 Keywords: Audit committee meeting frequency, Board size, board meeting, Saudi Arabia
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23. |
The effect of debt covenant, political cost and IFRS implementation towards the company value
, Pages: 907-916 Ahalik, Adji Suratman and Nuzulul Hidayati PDF (650K) |
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Abstract: The research is aimed to analyze the influence of debt covenant, political cost and implementation of IFRS toward firm value. The population in this research are non public companies in the period 2016, 2017 and 2018. Non public companies are used as the population in this research to see the level of implementation of IFRS that have been applied by non public companies. The sample selection by using a random method and obtaining a sample of 46 companies or 138 observation data. The analysis used in this research is a Panel Data Regression by using Eviews 10.00. The partial result showed that political cost and implementation of IFRS affect firm value, while the debt covenant does not affect firm value. And the simultaneous result showed that debt covenant, political cost and implementation of IFRS affect firm value. DOI: 10.5267/j.ac.2021.1.017 Keywords: Debt Covenant, Political Cost, Implementation of IFRS, Firm Value, Economic Value Added (EVA), Positive Accounting Theory
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24. |
The effect of financial policy and capital assets on firm performance: Evidence from service companies listed on the Amman Stock Exchange
, Pages: 917-924 Mohammed Zakaria Soda, Yazan Oroud and Mohammed Hassan Makhlouf PDF (650K) |
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Abstract: This study aimed to demonstrate the impact of the financial policy, represented in debt policy and dividend policy, and the capital assets on the financial performance measured by return on equity, total assets turnover and market value added of 53 service companies listed on the Amman stock exchange during the period 2014–2018, using the panel data models. According to the results of testing performed on return on equities (ROE) model, total assets turnover (TAT) model, and market value added (MVA) model, it can be concluded that debt policy has a negative significant effect on market value added and total assets turnover, on the other hand, it has a negative insignificant effect on return on equity. The financial performance of the Jordanian service companies is influenced negatively by the debt ratio as a measure of financial policy; which means service companies are using heavy debt to finance the operating activities, which increases financial cost and the risk of financial failure. The study recommended that service companies can increase the volume of investment in fixed assets to generate high financial performance indicators. DOI: 10.5267/j.ac.2021.1.016 Keywords: Assets turnover, Capital assets, Dividend, Market value added, Return on equity, Jordan
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25. |
Bank’s brand, social influence, and its impact on the decision on using mobile banking services of individual customers: An empirical study
, Pages: 925-932 Vo Thi Phuong Lan and Nguyen Thanh Giang PDF (650K) |
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Abstract: In the context of fintech and industrial revolution 4.0, the banking system worldwide has significantly developed mobile banking services at a great pace in order to promote economic performance. The aim of this analysis is to estimate factors that impact on the customers' use of mobile-banking services in the typical case in Vietnam nowadays. Using a sample data of 420 questionnaires covering in 2020, the results indicate that brand and social influence have greatly impacted on the customers' use of mobile-banking services. A greater bank’s brand and social influence is positively related to a greater the customers' use of mobile-banking services. In addition, transaction risk has a negative impact on decisions to use mobile-banking services. Vietnam should enhance the risk management in the banking sector in order to maintain sustainable development in the long run. DOI: 10.5267/j.ac.2021.1.015 Keywords: Brand, Risk management, Social influence, Bank
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26. |
Investigating the factors on attracting resources for urban development in Vietnam
, Pages: 933-942 Tuan Anh Nguyen and Thanh Thuy Cu PDF (650K) |
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Abstract: This study is carried to analyze the factors influencing the attracting resources for urban development in a case study in Vietnam. The research findings show that factors such as human resources, local policies, infrastructure system, local advantages, and international integration were the most influential factors on the ability to attract resources. At the same time, the study carried out the forecast of the need to use resources for urban development of Phuc Yen city in Vietnam. The resources forecasted in the study are human resources and financial resources. For human resources, with the data collected through surveys and evaluation of enterprises - an important subject promoting the socio-economic development of the city, the authors assessed the adaptive capacity of this human resource to serve the development goals of the urban. As for financial resources, the study predicts the demand for capital for industry, agriculture, and services of Phuc Yen City by 2030. The research findings are the basis for proposing solutions to support and promoting the attraction of resources for urban development of Phuc Yen City, Vietnam. DOI: 10.5267/j.ac.2021.1.014 Keywords: Urban Development, Attracting, Resources, Vietnam
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27. |
The effect of loan-loss provision, non-performing loans and third-party fund on capital adequacy ratio
, Pages: 943-950 Mulyanto Nugroho, Donny Arif and Abdul Halik PDF (650K) |
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Abstract: This research was conducted in connection with the effective enactment of International Financial Accounting Standard IFRS 2020 to improve the concept of hedging accounting as well as basic measurement and classification of financial instruments. IFRS carries the concept of Expected loss backup which begins to acknowledge losses if there is a potential failure to pay even though it has not really happened, allowing the bank to form a larger loan-loss provision. The loan-loss provision is formed based on the number of failed pays in credits indicated by the ratio of Non-Performing Loans (NPLs). Fund distribution can be regulated by the Third-party Fund (TPF). The increasing number of loan-loss provisions and NPLs are feared to affect capital conditions for the bank. Therefore, the study aims to determine the partial and simultaneous influence of the loan-loss provision, Non-Performing Loans (NPLs), and third-party Fund (TPF) against the bank's capital adequacy ratio (CAR). The samples in this study are central government-owned banks, namely Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia, and Bank Tabungan Negara period from 2011 to 2018. Data taken is a data time series of the quarterly financial statements published by the respective online website of the bank. The analysis used is a multiple linear regression analysis using SPSS Tools version 21 and Microsoft Excel. The results showed that a partial loan-loss provision had no significant effect on the bank's capital adequacy ratio, while the Non-Performing Loans (NPLs) and the Third-party Fund (TPF) were partially influential of the bank's capital adequacy ratio. Simultaneously the three independent variables have a significant effect on the dependent variable capital adequacy ratio (CAR). DOI: 10.5267/j.ac.2021.1.013 Keywords: Loan-Loss Provisions, Non-Performing Loans, Third Parties Fund, Capital Adequacy Ratio, Banking
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28. |
Does industry expertise at engagement partner and audit firm level matter in emerging market? Evidence from Indonesia
, Pages: 951-964 Antonius Herusetya and Meiliana Jaunanda PDF (650K) |
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Abstract: This study investigates the association of industry specialization at the engagement partner level and audit firm level with aggressive earnings management and modified audit opinion. The study employs a sample of 570 firm-year observations of manufacturing industries on the Indonesia Stock Exchange from 2014 to 2018 using a binary logistic regression model. First, this study finds no evidence of a relationship between industry specialization at the engagement partner level and audit firm level with aggressive discretionary accruals. Furthermore, the author finds evidence of a positive association between industry specialization at the audit firm level and aggressive real earnings management due to high audit quality. Finally, the study finds evidence that industry specialization at audit firm level is likely to issue modified audit opinion. This study contributes to the study of industry specialization at the engagement partner level and audit firm level, which is rarely performed in Indonesia. Policy makers and capital market players might learn some lessons from the audit quality of external auditors with industry specialists as the gatekeeper of the capital market. Moreover, this study has provided a valuable perspective to practitioners, researchers, and policy makers in other emerging markets regarding the quality of industry specialization at the partner and audit firm level. DOI: 10.5267/j.ac.2021.1.012 Keywords: Aggressive earnings management, Modified audit opinion, Industry specialization, Engagement partner, Audit firm, Audit quality
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29. |
The role of religiosity in moderating the influence of servant leadership on job satisfaction
, Pages: 965-976 Abdul Jamal, Budiyanto and Agustedi PDF (650K) |
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Abstract: This research aims to analyze the role of religiosity in moderating the influence of servant leadership and job satisfaction on the education office employees’ performances of Pekanbaru City. The sample of the research includes 121 employees and the sampling used a simple random sampling method. This research used closed questionnaires and the results of data are processed using SmartPLS 3.0. The result of the research is: (1) Variable of servant leadership has a significant effect on the employees’ performances, (2) Variable of job satisfaction has a significant effect on the employees’ performances, (3) Variable of religiosity moderating the influences of servant leadership (has a negative significant effect) on the employees’ performance, and (4) Variable of religiosity does not play any moderating role between job satisfaction and employees’ performances. DOI: 10.5267/j.ac.2021.1.011 Keywords: Servant Leadership, Job Satisfaction, Religiosity, Employees’ Performances
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30. |
Corporate governance mechanism as income smoothing suppressor
, Pages: 977-986 Alwan Sri Kustono PDF (650K) |
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Abstract: Income smoothing is an act of accounting engineering by exploiting gaps in accounting standards. This study aims to determine the motives for income-shifting management. Based on agency theory, this study tested three hypotheses on two income-smoothing objects: operating income and net income. This research is a quantitative study with data in Indonesian public manufacturing companies’ financial statements dated December 31, 2009 - 2018 obtained from the Indonesian Capital Market Directory. Hypothesis testing uses a binary logistic regression approach. The practice of income smoothing exists in manufacturing companies in Indonesia. Management shift income with object engineering is gross profit by 30.2% and net income by 21.7%. Hypothesis testing confirms that the commissionaire board size is not a mechanism of supervision effectiveness. The independent commissioners’ size was able to suppress income smoothing in manufacturing companies. Audit tenure has a negative effect on income smoothing. The audit period is directly proportional to the auditor’s ability to limit income smoothing. These results contribute to the formulation of policies, especially in improving the quality of corporate governance. Even the public and investors can understand the indications of income smoothing practices. New evidence suggests that income smoothing is less likely to be desired by corporate governance mechanisms. The motive for income smoothing is considered opportunistic. Audit tenure improves the quality of oversight of accounting engineering actions, contrary to the previous opinion that tenure reduces auditor independence. DOI: 10.5267/j.ac.2021.1.010 Keywords: Income smoothing, Commissioners, Audit tenure, Agency theory, Earnings management
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