International journal of academic research in business & social sciences, Feb 28, 2022
Studies about audit committee ineffectiveness monitoring role and detrimental financial condition... more Studies about audit committee ineffectiveness monitoring role and detrimental financial condition are largely focused on its characteristics (i.e., independence, expertise, size, and activity), while the busyness of the audit committee is underexplored. This study extends previous literature on the relationship between the audit committee and financial condition by examining whether the busyness of audit committee members has an impact on the risk of financial distress. It is a panel data study conducted among 119 listed manufacturing companies in Indonesia, for the period of 2012 to 2014. The findings show that the busyness of audit committee financial experts negatively affects the risk of financial distress. Busyness compromises the monitoring role in the financial reporting process, thus increasing the risk of financial distress, which is consistent with the busyness hypothesis. However, the busyness of other audit committee members has a positive impact on the risk of financial distress among safe firms, which is consistent with the reputation hypothesis. Multiple positions enable the accumulation of knowledge, experience, and information that is beneficial for the oversight function. This study contributes to the literature by providing evidence that the busyness of different audit committee members has a different impact on its monitoring role effectiveness.
The aim of this study is to examine whether the level of firm ownership (i.e., institutional, for... more The aim of this study is to examine whether the level of firm ownership (i.e., institutional, foreign, family, and government) is associated with firm's tax planning practices. Using a sample of public companies in the IDX during the period of 2014 to 2019, and by utilizing the least square dummy variable (LSDV) regression model, this study found that as the level of family ownership, foreign ownership, and government ownership increases, companies will be less likely to engage in tax planning practices which are measured by the effective tax rate. On the other hand, the level of institutional ownership shows no significant relation to tax planning practices. The results of this study provide insight into the relationship between the level of public firm ownerships in Indonesia and tax planning practices.
The aim of this study is to examine whether the level of firm ownership (i.e., institutional, for... more The aim of this study is to examine whether the level of firm ownership (i.e., institutional, foreign, family, and government) is associated with firm's tax planning practices. Using a sample of public companies in the IDX during the period of 2014 to 2019, and by utilizing the least square dummy variable (LSDV) regression model, this study found that as the level of family ownership, foreign ownership, and government ownership increases, companies will be less likely to engage in tax planning practices which are measured by the effective tax rate. On the other hand, the level of institutional ownership shows no significant relation to tax planning practices. The results of this study provide insight into the relationship between the level of public firm ownerships in Indonesia and tax planning practices.
International Journal of Academic Research in Business and Social Sciences, 2022
Studies about audit committee ineffectiveness monitoring role and detrimental financial condition... more Studies about audit committee ineffectiveness monitoring role and detrimental financial condition are largely focused on its characteristics (i.e., independence, expertise, size, and activity), while the busyness of the audit committee is underexplored. This study extends previous literature on the relationship between the audit committee and financial condition by examining whether the busyness of audit committee members has an impact on the risk of financial distress. It is a panel data study conducted among 119 listed manufacturing companies in Indonesia, for the period of 2012 to 2014. The findings show that the busyness of audit committee financial experts negatively affects the risk of financial distress. Busyness compromises the monitoring role in the financial reporting process, thus increasing the risk of financial distress, which is consistent with the busyness hypothesis. However, the busyness of other audit committee members has a positive impact on the risk of financial distress among safe firms, which is consistent with the reputation hypothesis. Multiple positions enable the accumulation of knowledge, experience, and information that is beneficial for the oversight function. This study contributes to the literature by providing evidence that the busyness of different audit committee members has a different impact on its monitoring role effectiveness.
This study examines the value relevance of accounting information. This study investigates whethe... more This study examines the value relevance of accounting information. This study investigates whether accounting information has impact on the share prices. In addition, it examines whether earnings management moderates the value relevance of accounting information to the market. Accounting information in this study consists of earnings, book value of equity, and cash flows, and the earnings management is proxied by discretionary accruals measured using the performance-adjusted modified Jones model. Using time series analysis, there are 98 samples of listed manufacturing corporations used in this study during 2014 which is the period of this study. The results show that earnings, book value of equity, and cash flows simultaneously affect the share prices, meaning that accounting information is value relevant to the market, although there is evidence that partially, only cash flows have impact on share prices. This study also found that the presence of earnings management weakens the va...
This study aimed to find out the competence needed by fresh graduates based on the perceptions of... more This study aimed to find out the competence needed by fresh graduates based on the perceptions of acounting practitioners. This study used a combination of qualitative and quantitative methods and used the statistical technique of exploratory factor analysis. A qualitative method was used in identifying variables to be studied, while quantitative method was used in grouping or categorizing of those variables into certain factors. This study used 40 variables developed based on the interview results and questionnaires filled by 100 respondents consisting of accounting practitioners namely those who worked in accounting and finance deparment starting from staff level up to financial directors spread across various companies in Indonesia. The results of the study found eight main competencies that should be possessed by accounting students based on the perceptions of the employers. Those competencies were (1) work ethics, (2) interpersonal skills, (3) good leadership, (4) responsibility, (5) analytical ability, (6) skills, (7) ability to adapt, and (8) work experience.
This research aimed to identify the factors that contributed to the employee retention in the ter... more This research aimed to identify the factors that contributed to the employee retention in the tertiary educational institution in Indonesia. The researchers used a case study of a private university in East Indonesia. This research was an exploratory factor analysis research. The items generated from in-depth interviews were developed into a questionnaire and distributed to 165 employees of the particular university based on purposive sampling method. About 105 respondents were obtained. The researchers utilized SPSS to analyze the data. The result shows that performance management function, organizational culture, employee engagement, social support, and work environment are the main factors contributing to the employee retention in the university. Among those factors, the performance management function is the factor with the highest factor loading.
This study examines whether ownership structure which was divided into blockholder ownership, man... more This study examines whether ownership structure which was divided into blockholder ownership, managerial ownership, and public ownership had influence on corporate governance disclosure, and whether growth opportunities moderate that influence. Studies in this area mostly examined the role of ownership structure on corporate financial disclosure or public announcements conducted in the context of different countries and in more regulated industries in Indonesia. The scope of this study was manufacturing companies listed on the Indonesian Stock Exchange for the period of 2013. The results showed that between the ownership structures only blockholder ownership had a negative and significant influence on the corporate governance disclosure. Being the largest shareholders, blockholders might have better access on the inside information which made them better informed relative to other shareholders, thus arguably might desire less disclosure. The results also showed that the interaction variable between managerial ownership and growth opportunities was negative and significant. This indicates that in a growing company where the managerial ownership increases, the management would tend to reduce the corporate governance information they provided to the stakeholders. ABSTRAK Penelitian ini menguji apakah struktur kepemilikan yang dibagi menjadi kepemilikan blockholder, kepemilikan manajerial, dan kepemilikan publik memiliki pengaruh terhadap pernyataan tata kelola perusahaan, dan apakah kesempatan bertumbuh memoderasi pengaruh tersebut. Adapun kebanyakan penelitian di bidang ini hanya mengusut peran struktur kepemilikan terhadap pernyataan keuangan perusahaan atau pengumuman publik, dilakukan di luar Indonesia dalam konteks negara yang berbeda, sedangkan yang ada di Indonesia dilakukan pada industri yang sangat ketat dikendalikan oleh aturan. Obyek penelitian ini adalah perusahaan-perusahaan manufaktur yang terdaftar dalam Bursa Efek Indonesia untuk periode tahun 2013. Hasil penelitian ini menunjukkan bahwa di antara struktur kepemilikan yang ada, hanya kepemilikan blockholder yang memiliki pengaruh negatif signifikan terhadap pernyataan tata kelola perusahaan. Sebagai pemegang saham terbesar dalam perusahaan, blockholder kemungkinan besar memiliki akses yang lebih baik terhadap informasi dalam perusahaan yang membuat mereka lebih banyak tahu kondisi perusahaan dibandingkan pemegang saham yang lain, yang kemudian menyebabkan penyajian informasi dalam pernyataan tata kelola perusahaan menjadi lebih terbatas. Hasil penelitian ini juga menunjukkan bahwa variabel interaksi antara kepemilikan manajerial dan kesempatan bertumbuh juga negatif signifikan. Hal ini menunjukkan bahwa pada perusahaan yang sedang bertumbuh ketika kepemilikan manajerial bertambah, manajemen akan cenderung mengurangi informasi yang disajikan dalam pernyataan tata kelola perusahaan.
The value relevance of environmental performance: evidence from Indonesia
Social Responsibility Journal
Purpose This paper aims to extend previous developed market-based research on the value relevance... more Purpose This paper aims to extend previous developed market-based research on the value relevance of environmental performance by testing the relationship between share prices of Indonesian-listed corporations and their environmental performance ratings. Design/methodology/approach The sample consists of 60 listed firms which are rated by the Indonesia Ministry of Environment between 2002 and 2012, resulting in a sample of 246 observations. The Ohlson (1995) model was utilized and modified by including environmental ratings. Findings The research finds that superior environmental performance is associated with higher share price, whereas inferior environmental performance is value irrelevant to the market. Research limitations/implications Considering the significance of PROPER, this research did not observe other types of corporate environmental performance, such as those released by the press and reported in the company annual reports and websites. These limitations are not contro...
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Papers by Melinda Nelwan