International Journal of Finance, Economics and Business
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Impact of the Independent Directors\u27 Social Network on Earnings Management Before and During the COVID-19 Period
Get PDFThis study examines the impact of the independent directors\u27 social network on earnings management before and during the COVID-19 pandemic. The COVID-19 pandemic increased uncertainty and pressure in the business environment, which led to intensified earnings management of listed companies worldwide. The research constructs centrality indexes of the independent director social network through the social network analysis method and conducts an empirical study on 1,167 A-share listed companies in China from 2009 to 2020. The relationship between independent directors\u27 network centrality and accrual-based earnings management of companies is examined. Empirical results reveal that independent directors\u27 network centrality is associated with higher accrued earnings management and undesirable corporate practices such as earnings management can be disseminated through directors\u27 social networks. This research innovatively incorporates the research findings into the COVID-19 context, further indicating that independent directors\u27 social network is associated with higher accrued earnings management during the COVID-19 period than before. This research will provide insights for regulators, specifically regulators in China, regarding the independent directors\u27 composition and effectiveness
Investigating the Effect of Customer Reviews and Online Customer Ratings on Purchase Intention: Mediating Role of Word of Mouth
Get PDFTechnological advancement is accelerating, compelling business professionals to consistently engage in online marketing through e-commerce to stay competitive. By examining customer reviews and ratings online, this study seeks to determine how word of mouth affects purchase intentions. The research was conducted in Binjai city with a sample of 120 respondents. Purposive sampling was carried out with the condition that the respondent was female. Data analysis in this study used path analysis. The result shows that online customer reviews and ratings have a significant positive relationship with word of mouth. Also, online customer reviews, ratings, and word of mouth effect positively with purchase intention. In addition, this study found that word of mouth mediates the relationship between online customer reviews and online customer ratings on purchase intention. This study unequivocally demonstrates a noteworthy and positive relationship between online customer reviews and ratings and the phenomenon of word of mouth. Furthermore, the research establishes that these online reviews and ratings significantly shape purchasing intentions through word of mouth. It underscores the influential role that virtual customer feedback plays in fostering and amplifying consumer perceptions, highlighting its significance in shaping purchasing decisions in the digital landscape
Relationship of Online Promotions and Discounts on Impulse Buying: A Case Study of Matahari Binjai Supermall Consumers
Get PDFIn the contemporary age, traditional markets are gradually being overshadowed as individuals increasingly favour shopping in modern retail establishments. The surge in retail business can be attributed to a growing consumer base seeking convenient and comfortable shopping experiences, intensifying competition within the business realm. Thus, this study aims to analyze the effect of online promotions and discounts on impulse buying by Matahari Binjai Supermall consumers. The sample was selected using the accidental technique. The number of samples taken was 150 respondents, and the data processing used multiple linear regressions. The results showed that online promotions positively and significantly affect impulse buying. Discounts have a positive and significant effect on impulse buying. Simultaneously, online promotions and discounts positively and significantly affect impulse buying. In conclusion, the study reveals a clear and affirmative impact of online promotion and discounts on impulse buying. Individually, both online promotions and discounts demonstrate a positive and significant effect on impulse buying. Moreover, the simultaneous presence of online promotions and discounts amplifies their combined influence, underscoring the synergistic nature of these factors in driving impulse buying behaviour. It underscores the importance of strategic marketing approaches incorporating online promotion and discounts to enhance consumer engagement and stimulate impulsive purchasing
Improving the Human Development, Reducing Poverty and Promoting the Economic Growth: A Sustainable Development Strategy
Get PDFThis study analyzes the macro-relationship between three main variables, namely, poverty, the human development index, and economic growth. This study uses the Vector Autoregressive/ Vector Error Correction Model. The variables measured in this study included household income per capita, community education level, poverty, and economic growth. This research was conducted using a quantitative method by capturing information from quantitative data. Meanwhile, the quantitative data were obtained from official publications of government agencies and analyzed using panel data regression. This study used the stationarity test and cointegration test. The study’s results concluded that economic growth was affected by the human development index. The human development index affects poverty. Also, the poverty affects economic growth. Thus, a unidirectional causality existed between the human development index, economic growth, and poverty
Evaluating the Service Performance Measurement in PT. ASABRI (Persero) Balikpapan Branch Office, Indonesia
Get PDFState-Owned Enterprise (BUMN) is one of the contributors to the State Budget in terms of non-tax state revenue. BUMN dividends as a share of the government, the performance of BUMN has partially contributed to the realization of state revenues. This study seeks to evaluate the service performance measurement in PT. ASABRI (Persero) Balikpapan Branch Office, Indonesia. This study uses Important Performance Analysis (IPA) on 70 personnel of ASABRI. The result indicates that expectations and reality, the satisfaction level of respondents (ASABRI participants/heirs) was 95.23 percent, indicating that ASABRI participants/heirs were very satisfied with the services provided by the PT. ASABRI (Persero) Balikpapan Branch Office. The overall gap value is calculated based on the difference between the actual level of performance with the expected level. All show a positive value (+), meaning that the management of PT ASABRI (Persero) Balikpapan Branch has provided services according to the needs of ASABRI participants and management has provided satisfactory service to the participants
Understanding the Concept of SMEs in Driving Economic Growth and Development in Bangladesh
Get PDFSmall and Medium Enterprises (SMEs) play a vital role in Bangladesh\u27s economy and have been recognized as a significant catalyst for poverty reduction programs and economic growth. Therefore, it is essential to have a comprehensive understanding of the concept of SMEs and their role in driving economic growth and development. Consequently, this study endeavors to explore the definition of SMEs, their present status, and their contributions to the development of Bangladesh’s economy. Using a quantitative research method, the study performed a descriptive statistics analysis on data gathered from diverse sources, including academic, governmental, and private institutions, as well as pertinent literature from researchers, academics, and scholars. The study has found that the definition of SMEs in Bangladesh has undergone changes over time. The study findings also revealed that the growth of SMEs has had a significant impact on various economic indices in Bangladesh, contributing positively to the country\u27s economic development. Hence, the findings of this study can provide valuable insights to readers seeking a comprehensive understanding of SMEs in the context of Bangladesh. Moreover, policymakers can utilize these findings to introduce well-suited policies and initiatives that will foster the future development of the SME sector
The Effect of Price and Product Quality on Consumer Purchasing Decisions through Brand Image
Get PDFIndonesia is categorized as Southeast Asia\u27s largest economic potential, with abundant natural resources spread across various provinces. Indonesia experienced global financial crises and a slowdown in early 2019 due to the coronavirus (COVID-19) pandemic. Many sectors, such as mining, energy, and construction, use heavy equipment, especially Crawler Excavators. The Mining sector is still the prima donna of business in Indonesia due to the increasing price of commodities such as coal and other minerals, so there are also many companies as heavy equipment manufacturers, especially PT. Zoomlion Indonesia Heavy Industry. Thus, this study examines the effect of price and product quality on consumer purchasing decisions through brand image. This study is designed using this quantitative method. It is carried out with an exploratory approach which aims to explore and examine more deeply the phenomena that occur between the constructs under study. The population is all companies that shop or buy 20 ton Class Crawler Excavator heavy equipment products, namely PT. Zoomlion Indonesia Heavy Industry in East Kalimantan from 2017-2021, totaling 130 product sales. The results indicated that price and product quality positively and significantly affect purchase decisions. Also, price and product quality positively and significantly affect brand image. Besides that, this study found that brand image mediates the relationship between price and product quality in purchase decisions. This study concludes that brand image plays an important role as a mediator between price and product quality in purchase decisions at PT. Zoomlion Indonesia Heavy Industry
The Market Efficiency of Socially Responsible Indices in India
No full textSocially Responsible Indices allow investors to invest in those companies which are deemed to be socially responsible. These indices comprise those constituent companies screened and assessed for environmental, social and governance (ESG) criteria. This paper analyses the weak form of the Efficient Market Hypothesis (EMH) for socially responsible investment indices in India. The authors used the daily closing price of two indices, Carbonex and Greenex, from June 3, 2013, to December 31, 2022. This study conducted Augmented Dickey Fuller, normality, and autocorrelation tests to analyse the randomness of prices and test whether the future price can be predicted using the past price. The weak form theory of the efficient market hypothesis is violated if the returns are not random and dependent on past returns, thereby enabling investors to gain abnormal returns by extrapolating the past data. The research results suggest that the theory of weak form of efficient market hypothesis is valid for Carbonex and Greenex, which are the socially responsible indices of India. It implies that the future movement of returns for socially responsible investment indices in India cannot be predicted from past prices. Therefore, the opportunity to gain abnormal returns is not possible
Examining the Factors Influencing the Loan Performance at BMT An-Najjah Pekalongan, Indonesia
Get PDFToday, most companies have been evaluated on the basis of their financial performance. The return on capital employed (ROCE) assesses a company\u27s profitability and capital efficiency. Besides that, the overall financial performance is associated with non-economic components. Correction of weaknesses in overall economic performance can be measured by a balanced scorecard, which consists of growth, economic, patron, and inner commercial enterprise processes. Thus, this study investigates the factors influencing loan performance at BMT An-Najjah Pekalongan, Indonesia. A survey questionnaire was used to collect the data by delivering directly to BMT An-Najjah Pekalongan Regency branches. A total of 65 permanent employees at the BMT AN-NAJJAH participated in this study and analysed using multiple linear regression. The result indicated that the performance measurement system, management control system, organisational learning, and employee attitude significantly and positively affect loan performance at BMT An-Najjah in Pekalongan, Indonesia. In conclusion, this study has identified that the studied variables significantly influence loan performance
A Review of Factors that influence Equity Premium Literature: A Mini-Review Approach
Get PDFThe equity premium (market risk premium) is one of the most crucial a basis for consideration of asset allocation and is one of the centers of asset pricing. Numerous previous researches have examined the factors that predict the size of the premium equity (excess return risk asset less risk-free assets). The premium equity size is why investors choose risky investments (stocks) over non-risk investments (saving products). This study aims to comprehend the predictor of the equity premium. This study was designed using qualitative approaches by reviewing several relevant pieces of literature. A total of 49 articles were collected from Science Direct, Wiley online library, and Taylor & Francis. The results indicated that oil price negatively affects the equity premium, especially during recessions and gold bars or coins. The economic policy uncertainty and return dispersion have negative relationships in China and others but not in U.S. commodities. Economic indicators have failed to predict equity premium in recession but have power with nonparametric tests in bullish markets. Technical indicators are better than economic indicators for predicting equity premium. The policy implication of this review article is the finding of trends in researching premium equity using predictive regression and structured predictive input that focuses more on the U.S. than on emerging markets, and none of the models have reached past 80 percent. Future research should make models analyze technical indicators and news by adding asymmetry, grouping based on equity and commodity distribution, time and profitability, and dynamic and macro models in emerging markets