International Journal of Finance, Economics and Business
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Investigating the Determinants of the Livestock Sub-sector in Aceh Province, Indonesia
Get PDFThis study analyzes the effect of livestock subsector farmers\u27 exchange rate, inflation, and human development index on the livestock subsector economy in Aceh Province. This study uses multiple regression models with a time series period of 2012-2021 totaling 40 observations. The results showed that the exchange rate of livestock subsector farmers had a negative and significant effect on the economic growth rate of the livestock subsector in Aceh Province. In addition, inflation has a positive and significant effect on the economic growth rate of the livestock subsector in Aceh Province, while the human development index has no significant effect. Therefore, various policies are needed to overcome the inequality of livestock subsector farmers\u27 welfare and improve the quality of human resources. This study is only able to describe Aceh Province in general. Still, it has yet to be able to capture inter-regional phenomena in Aceh Province to get a more reliable picture of the livestock subsector economy
Analyzing the Factors that Influence Financial Reporting Timeliness of Manufacturing Listed Companies in the Indonesia Stock Exchange
Get PDFFinancial report plays an important role in communicating between businesspeople. It has given essential information to economic decision-makers as a communication tool. The relevance of qualitative characteristics of financial reports is timeliness. This study analyzes the factors that affect the timeliness of financial reporting on manufacturing companies listed in Indonesia. Factors tested in this study are profitability, company age and external ownership. The sample used in this study was 126 manufacturing companies consistently listed in Indonesia. This study uses secondary data selected based on the purposive sampling method and analyzed using logistic regression analysis. The result indicates that profitability and company age significantly affect the firm\u27s financial reporting timeliness, whereas ownership structure does not affect the timeliness of financial reporting. This study concludes that the company\u27s profitability variable significantly affects the timeliness of the company\u27s financial reporting. The firm age variable significantly affects the timeliness of financial reporting. External ownership variable does not affect the company\u27s financial reporting timeliness. Variable profitability, company age, and ownership structure simultaneously influence the timeliness of company financial reporting
Impacts of Political Risk and Macroeconomics Factors Towards Foreign Direct Investment in Developing Countries
Get PDFThis study examines the relationship between macroeconomic factors and foreign direct investment (FDI) inflows in developing countries. The data from the World Bank covers 21 years, from 2000 to 2020 was analyzed using the panel regression approach with E-Views. Panel regression analysis, including model selections and diagnostics, is used for inferential analysis. The main contribution of this study is the influence of political factors on FDI inflows. Political stability and corruption control are technically the most important conditions for FDI inflows in developing countries and were introduced in this study. This study found a positive relationship between GDP growth rate, imports, inflation, and corruption index with FDI inflow, confirmed by previous studies. The study also implies that the exchange rate, exports, and political stability have a negative relationship with the level of FDI in developing countries. In addition, the study found that GDP growth rate, imports, and exports significantly impact FDI inflows in developing countries, while the other variables are not significant. In other words, this result shows that macroeconomic and political factors such as import, export, exchange rate, corruption control, and political stability impact FDI inflows. Moreover, this paper provides policy recommendations to support developing countries\u27 economies by attracting FDI and increasing its inflow
Examining the Effect of Bank Health Level towards Stock Return of Commercial Banks in Three-Selected ASEAN Countries
Get PDFToday, various main factors, including the banking sector, support a country\u27s economy. The growth and performance of banks in a country are factors in measuring the country\u27s economic growth. The increasing number of banking stocks traded in ASEAN countries proves banking development. However, since middle-to-low-income countries dominate ASEAN, it opens up a greater risk to the volatility of bank stock returns because of economic turmoil. Non-performing loans (NPL), Good Corporate Governance (GCG), Return on Assets (ROA), and Capital Adequacy Ratio (CAR) are found to influence bank stock return in some studies, but other similar studies show the opposite. Therefore, this study uses 28 banks in ASEAN countries as a sample, consisting of 10 Indonesian banks, 8 Malaysian banks, and 10 Thailand banks. Data analysis uses regression analysis with moderated regression analysis (MRA) and discrimination tests. The result shows NPL and GCG have no significant effect on bank stock return, ROA has a positive and significant effect, and CAR has a negative and significant effect. Price to Book Value (PBV) has a positive and significant effect on bank stock return but can only moderate ROA on stock return. The discrimination test shows that ASEAN countries\u27 NPL, GCG, ROA, and CAR differ significantly. Therefore, banks in ASEAN ought to maintain their health through these factors to maximize their stock return
The Effect of Leadership Style, Work Stress and Commitment on Employee Work Productivity at PT. Lunadorii Utama in Medan, Indonesia
Get PDFThis study analyzes the effect of leadership style, work stress and work commitment on employee work productivity and the impact of work stress on employee work productivity at PT. Lunadorii Utama Indonesia Medan. A total of 85 staff participated in this study and collected using the census method due to the population being less than 100 persons. The data was analyzed using SPSS version 20. The results of the descriptive analysis in leadership style, work commitment and work productivity are in the good category at PT. Lunadorii Utama Indonesia Medan, while the descriptive analysis results in the work stress variable are in the bad category at PT. Lunadorii Utama Indonesia Medan. The partial test (t-test) showed that leadership style positively and significantly impacts employee work productivity at PT. Lunadorii Utama Indonesia Medan, work stress negatively and significantly impacts employee work productivity at PT. Lunadorii Utama Indonesia Medan and work commitment positively and significantly impact employee work productivity at PT. Lunadorii Utama Indonesia Medan. F-test showed that simultaneously variable leadership style positively and significantly impacts employee work productivity at PT. Lunadorii Utama Indonesia Medan, variable work stress negatively impacts employee work productivity at PT. Lunadorii Utama Indonesia Medan and variable work commitment positively and significantly impact employee work productivity at PT. Lunadorii Utama Indonesia Medan
The Effect of Benchmarking on Competitive Advantage through Financial Performance in Hospitals at East Kalimantan, Indonesia
Get PDFThis study determines the effect of benchmarking on competitive advantage, the effect of benchmarking through financial performance on competitive advantage and the effect of benchmarking on competitive advantage moderated by policy. With proper benchmarking in hospitals, it is expected to be superior compared to competing hospitals. This study was conducted on 54 hospitals recorded in the Central Statistics Agency (BPS), East Kalimantan, Indonesia. The research design used an explanatory research approach. This type of research is quantitative. The population in this study was High Management Hospital. Samples were taken from as many as 45 people using the non-probability sampling method, namely by purposive sampling techniques. Data collection is carried out through the distribution of questionnaires. The data analysis technique used is the SEM method, namely PLS (Partial Least Square), with the help of Smart PLS software. The results showed that Benchmarking had a positive and significant effect on Competitive Advantage, both competitive advantage through Financial Performance and competitive advantage moderated by policy
The Impact of Awards on Intrinsic Motivation and Job Satisfaction of Multi-Level Marketing Members in Riau Islands Province, Indonesia
Get PDFFacts from the Multi-Level Marketing (MLM) industry show that people often change companies, 90% of distributors are dissatisfied and frustrated, and only last up to 3 months before quitting MLM. Reward management is the main strategy to create a motivated and committed work team. This study examines the impact of rewards on intrinsic motivation and job satisfaction in MLM members, where the incidental sample method is chosen. A total of 140 samples participated in this study. The data were analyzed using descriptive statistics and Structural Equation Modelling (SEM)–Analysis of Moment Structure (AMOS). The result indicates that intrinsic and extrinsic non-financial rewards significantly positively affect intrinsic motivation. Also, this study found that intrinsic motivation, intrinsic non-financial rewards, and extrinsic financial rewards significantly and positively affect job satisfaction. Besides that, the extrinsic non-financial reward does not affect job satisfaction. In conclusion, this study has successfully identified the factors influencing motivation and job satisfaction
Factors that Influence the Income of Basket Craftsmen: Evidence from Nagori Sigodang, Simalungun Regency, Indonesia
Get PDFToday, a nation\u27s economic condition can identify from an increased supply of goods and services. Also, technological progress is a determinant of economic growth. It describes the ability to provide a variety of goods to the community to get a decent income to meet the needs of everyday life. This study determines the factors that influence the income of basket craftsmen in Nagori Sigodang, Panei District, Simalungun Regency. The population in this study were Nagori Sigodang basket craftsmen, Panei District, Simalungun Regency. The sample size was used purposive sampling by determining special characteristics according to the research objectives. The data were analysed using multiple linear regression tests, hypothesis tests, and coefficient of determination. The results of the multiple linear regression test showed that capital, working hours, and length of business had a positive effect on the income of basket craftsmen; the hypothesis test for the t-test obtained that capital, working hours, and length of business had a significant effect on the income of basket craftsmen, the F-test obtained capital, working hours, and the length of business has a significant effect on the income of basket craftsmen, the coefficient of determination is 0.666, which means that 66.6 percent the level of income can be explained by capital, working hours, and length of business while the remaining 33.4 percent is influenced by other factors not included in the study
Fiscal Policy and Financial Depth in Nigeria: An Application of Threshold Regression Modeling
Get PDFThe study examines Nigeria\u27s non-linear relationship between fiscal policy and financial depth. In essence, the study is concerned with the impacts of fiscal deficit, domestic debt, and government expenditure on financial depth. The study uses four indicators of financial deepening: liquid liabilities, credit to the private sector, deposit money banks’ assets and financial system deposits (all indicators are expressed as percent of GDP). In particular, the government is the threshold variable expected to have a threshold effect on Nigeria\u27s financial depth. The study covers 60 years between 1961 and 2020 and employs a threshold regression model to achieve the research objectives. A linear regression model is employed for the robustness test by including the government expenditure square to test the significance of non-linearity. The study\u27s findings establish fiscal policy\u27s significance in driving financial depth. Beyond the threshold of 8.11 percent, government expenditure significantly increases financial deepening. This is consistent across the indicators of financial depth and the overall financial depth. It further shows the important role of fiscal deficit and domestic debt in deepening the financial market as the threshold value exceeds 8.11 percent. However, fiscal may have a negative, though insignificant, effect on financial depth when the threshold of government expenditure is no more than 8.11%. Real per capita is also a key factor in promoting financial depth. Therefore, higher income is important for a financially deeper financial system. Therefore, attaining minimum government expenditure is crucial for accelerating financial development in Nigeria
The Impact of FDI on Innovation in Developing Countries: The Mediating Role of Governance
Get PDFWhile most studies in the existing literature focused on the direct relationship between FDI and innovation, this paper further analyzes whether governance in developing economies mediates this relationship. A 25-year cross-sectional time-series data from 1995 to 2019 were collected from the World Bank Development Indicators and the Worldwide Governance Indicators (2019) databases. This panel dataset was estimated using a system GMM. A novel finding emerged from the investigation: the positive impact of FDI on domestic innovation is mediated by two governance variables: voice and accountability and regulatory quality. This suggests that the impact of FDI on domestic innovation is strengthened when combined with the effects of mediating variables. The results imply that, in the absence of high governance quality, the traditional policy prescription—such as increasing government spending on R&D and education—may not be adequate to promote FDI\u27s innovation spillovers. The findings suggest that governments in developing nations should work to improve the voice & accountability and regulatory quality indicators by ensuring that citizens take part in the decision-making to promote the flow of knowledge and information that fosters innovation. This will help to strengthen the influence of FDI on domestic innovations. In addition, the governments should foster an environment that is welcoming to foreign investment and implement the appropriate regulatory reforms, such as those that strengthen competition protection, property rights protection, and transparency in the operations of the organizations implementing policies