• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.903-909
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• 2021

The relationship between corporate social responsibility (CSR) and earnings management is still a debate. Several previous studies showed that CSR is a determinant of earnings management. Meanwhile, others revealed the reverse. Therefore, this study aims to investigate the effect of CSR disclosure on earnings management and the effect of earnings management on CSR disclosure. This study was conducted with mining companies listed on the Indonesia Stock Exchange (IDX) in the 2016-2019 period. The research data was analyzed using multiple linear regression analysis. The data is obtained from financial statements, annual reports, and sustainability reports. The results reveal that there is a positive relationship between CSR disclosure and earnings management. This study also shows that the relationship model of CSR disclosure and earnings management is recursive. This finding implies that CSR disclosure is a tool used by management to cover up unethical actions from stakeholders. These results verify the agency theory and opportunist hypothesis regarding the relationship between CSR and earnings management. The novelty of this study lies in highlighting the recursive model of the relationship between CSR and earnings management.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.353-361
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• 2021

The aim of this research is to understand and analyze the ways in which the current digital financial technology is impacting on the financial payment system provided by most of the commercial banks in Indonesia. This research analyzes the variables such as perceived ease-of-use, perceived usefulness, and perceived value on customer's intention to use in relation to the variable of trust as the intervening variable. The data collection is done through distribution of questionnaire; the population of this research consisted of the commercial banking customers located in Jakarta, Indonesia. The sample determination is done through Purposive Sampling and the analysis technique is using Partial Least Square (PLS). The results show that perceived ease-of-use, perceived usefulness, and perceived value have positive and significant effect on intention to use the mobile banking system; perceived usefulness of the application has the most significant influence on intention to use compare to the perceived of ease-of-use and perceived value of the mobile banking system. The results also indicate that, even though the mobile banking system has offered several benefits to the customer, yet it was not actively used by the banking customer compared to other commercial bank's mobile banking system in Indonesia.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.647-654
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• 2021

This study examines the non-performing loans of rural banks and macroeconomic factors in Indonesia, including inflation, exchange rates, and interest rates. Theoretically, the existence of erratic macroeconomic conditions can affect the level of non-performing credit risk in rural credit banks in Indonesia. The effect of macroeconomic conditions on non-performing loans has a different response for each economic sector. The main objective of this study is to determine the effect of macroeconomic factors (inflation, exchange rates, and interest rates) and bank-specific factors (credit) on the Non-Performing Loans (NPL) of Rural Banks in Indonesia for the period from January 2015 to December 2018. This study uses a Vector Error Correction Model (VECM) estimation to determine the effect of independent variables consisting of macroeconomic factors and bank-specific factors. Based on the estimation results of the Vector Error Correction Model, three variables that have a positive and significant effect on long-term non-performing loans are credit, inflation, and interest rates. Meanwhile, in the short term, there are only two variables that have a positive and significant effect on non-performing loans, namely, credit and interest rates. Inflation and exchange rate variables have a negative and insignificant effect on bad credit in the short term.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.675-685
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• 2021

The purpose of this study is to examine the reaction of stock prices on the implementation of Extensible Business Reporting Language (XBRL) in companies listed on the Indonesia Stock Exchange (IDX). Using the event study method and calculating abnormal returns of the 2015 financial statements of 462 companies listed on the IDX, findings showed that 49 companies have not applied the XBRL format in their financial statements. Based on the results of the Average Abnormal Return (AAR) and Cumulative Average Abnormal Return (CAAR) values, using the one-sample test, investors react to shares in companies that have not implemented XBRL and who have implemented XBRL; however, based on the independent t-test based on average values there are differences between companies that have not applied XBRL and those who have implemented XBRL. This research only looks at the one-year implementation of XBRL in financial reporting (2015), then the research does not separate which companies are on time in the delivery of financial statements to the public through the IDX website. Our research contributes to the understanding of the use of XBRL in corporate financial reporting because before the XBRL financial reporting format was published, the company had published a financial statement format based on the legal provisions of financial statements in Indonesia.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.10
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• pp.169-177
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• 2022

The main aim of the paper is to assess the level of financial literacy among business students. It further aims to investigate the role of external factors that may determine financial literacy. The external factors considered in this study are gender, grade point average, specialization, financial education, and financial socialization. Standard scales such as the Test of Financial Literacy, the Big Three, and other instruments were adapted to measure Financial Knowledge. Further, the study also explored relationships between several factors and the financial knowledge of students. These factors included a student's gender, specialization, number of finance or related courses studied, current Grade Point Average, and financial socialization. A total number of 303 valid responses were received through an online questionnaire administered to business students studying in a public university in the country. Statistical tests namely independent samples t-Test, one-way ANOVA, and correlation analysis were performed in SPSS 28.0. Results show that the overall financial knowledge of students is above average. Gender, number of finance or related courses, and financial socialization do not exhibit any significant relationship with financial knowledge. Current GPA and specialization show significant relationships. The findings of this study have important sectoral and research implications.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.1013-1020
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• 2021

This study examines the role of dynamic socio-emotional capabilities to increase proactive stakeholder engagement in family businesses. The research sample includes all furniture enterprises scattered in Jepara Regency sub-districts as many as 3,945 companies. The sampling in this research is purposive; as many as 210 respondents, 181 could be used. The sampling unit is the owners and managers, considering that most company owners are also company managers. This study examines how learning and supply chain management in the family business can be integrated to enable a set of resources and capabilities provided by the family to be developed to build closer relationships with stakeholders. The findings showed the importance of a family business's supply chain management perspective in the relationship between dynamic socio-emotional capabilities to mediate organizational learning to proactive stakeholder engagement significantly. Based on this study's results, companies can build dynamic socio-emotional capabilities through organizational learning to increase proactive stakeholder engagement. Dynamic socio-emotional capabilities proved to play a role as a mediator for organizational learning by family companies for proactive stakeholder engagement.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.307-315
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• 2021

The study aims to investigate the relationship between innovation activities and business process performance in higher education institution (hereinafter referred to as "HEI") context. The data was collected using a survey and later analyzed through Partial Least Squares Structural Equation Modelling (PLSSEM) and SmartPLS software. A total of 50 questionnaires were submitted from respondents representing vocational study program management located in Makassar, Indonesia. The findings show that two hypotheses discussed in this study fit the empirical data. Specifically, the results show that there is a positive relationship between innovation activities and business process performance, involving two types of innovation activities, which are exploration activities and exploitation activities, within HEIs. Explorative activity is firmly related to exploitative activity, which furthermore links to business process performance within the HEIs observed. The results confirm that exploration activity can stimulate and lead the HEIs management to generate exploitation activity. For instance, capabilities to absorb knowledge from the external institution may lead this institution to generate advanced academic processes, as well as more efficient and effective managerial processes. The study also signifies ambidexterity capacity, suggesting that it may lead HEIs management to formulate proper strategies in achieving better performance and gaining competitive advantage.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.885-894
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• 2021

This study aims to analyze the effect of the ratio of profitability and solvability (leverage) on the variable stock price, which is mediated (intervening) by the variable dividend policy. Using the financial reports of manufacturing companies in the consumer goods sector, we take profitability data (ROA, ROE, GPM, and NPM), solvability data (DAR, LTDER, and DER), dividend policy (DPR), and stock price (closing price) from 24 companies, which were selected as samples, from 2011 to 2018. Data was analyzed using the Structural Equation Modeling (SEM) method. The results show that profitability, solvability, and dividend policy affect changes in stock prices, respectively. On the other hand, profitability and solvability do not affect dividend policy. The indirect relationship (intervening) is assessed using a single test, resulting in a dividend policy that can intervene in the relationship between profitability and stock prices but cannot mediate the relationship between solvability and stock prices. The implication of this research is to provide knowledge to investors about the importance of knowing the company's financial performance. Companies with good financial performance will easily develop because there are sufficient funds for company operations. By analyzing financial ratios, investors can get signals to decide whether to invest in the company they want.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.357-364
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• 2021

This study examines the role of effective human resource practices and work-life balance in various organizations and their relationship with employee engagement. The data for this study were obtained from 723 employees from various industries in Java. The result suggests that human resource practice alone did not influence employee engagement. However the human resource policy helps develop a sense of WLB for an employee, which in the long run will affect the level of engagement. Thus, work-life balance enables the relationship between employees and their workplace. This study also encompasses current literature regarding huan resource policies in understanding employee engagement through work-life balance. This study provides exploratory findings regarding HR function practices, WLB, and employee involvement in service organizations. It proved that participants from four organizations reported very positive impressions about HR practices and they were also very involved in their work and organization. While their balance still needs to be improved, this may imply that the participants are not happy with their work lives. The main finding of this study is that WLB plays a mediating role in the relationship between HR practices and employee engagement. This means that organizations need to find ways to help employees achieve a better WLB.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.235-244
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• 2021

This study aims to determine the behavior of consumer interest in sustainable fashion products in Indonesia and the factors that influence it. Personal values, Green Trust, and attitude toward green products are studied to get a proper picture of the ethical behavior of consumers. The method used is the Structural Equation Model (SEM) technique using AMOS 23 software. A sample of 103 participants used the convenience sampling technique. The study results show that green trust and attitude toward green products successfully mediate personal value and green purchase intention on ethical fashion products in Indonesia. In this study, it was found that personal values cannot directly influence the purchase intention of sustainable fashion products. The influence of Personal Value must first be mediated by green trust or attitude toward green products to further influence green purchase intention of ethical fashion products in Indonesia. This is not in line with previous studies. Indicators of personal values such as self-transcendence, self-enhancement, conservation, and openness directly cannot predict the behavior of purchase intentions for sustainable fashion products in Indonesia. From the descriptive conclusion of the data obtained, there are various types of meanings of individual values, and fashion consumers in Indonesia are more affected by contextual factors.