The Indonesian Journal of Accounting Research
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Corporate Philanthropic Expenditure Before and During COVID-19: The Role of Board Composition and Firm Performance
No full textThis study investigates the impact of corporate board composition (CBC) on corporate philanthropic expenditure (CPE) before and during the COVID-19 pandemic. It also examines how firm profitability moderates the association between CBC and CPE. Using a panel dataset of 264 firm-year observations from listed banks in Bangladesh from 2015 to 2022, the study finds that both board size and board independence positively and significantly influenced CPE before and during the COVID-19 pandemic. Conversely, board gender diversity significantly negatively affected CPE before and during the pandemic. These results remain robust when alternative measures and models are applied to address potential endogeneity concerns. Furthermore, the interaction effects of firm profitability with board independence and gender diversity on CPE are positive and statistically significant. Notably, the positive interaction of female board representation with firm profitability highlights the critical role of women in bridging shareholder interests with social community needs. This study is the first to explore the roles of firm performance in the CBC-CPE relationship, offering new insights into how firm financial performance and board attributes jointly influence CPE. It also advocates for global initiatives to enhance female representation on corporate boards, underscoring the critical role of female directors in evaluating corporate contributions, safeguarding investor value, preventing resource misallocation, and ensuring financial support for philanthropic activities when firm profitability allows
Strategic Synergies: ESG Performance, Political Connection, and Audit Committees in Enhancing Company Value
No full textThis study examines the impact and implications of Environmental, Social, and Governance (ESG) performance, political connections, and audit committees on firm value in companies listed on the Indonesia Stock Exchange for the 2019–2023 period, with a total sample of 90 observations. The study employs a panel data regression method using the weighted least squares (WLS) model. The findings indicate that ESG performance and audit committees have a positive and significant effect on firm value, while political connections negatively impact firm value. This study is expected to encourage the adoption of good ESG practices and audit committee governance while also serving as a consideration for companies in evaluating the cost-benefit of political connections. Future research is recommended to expand the sample size, use ESG data from multiple sources, examine the individual effects of ESG pillars, conduct studies in other developing countries, and explore alternative firm value measurements and qualitative approaches
Digital Transformation at Forefront: Impact of Digital Orientation, Capabilities, and IT-Business Synergy on Higher Education Institutions Performance
Full text linkThis study investigates the impact of digital orientation, digital capabilities, and IT-business synergies on digital transformation. Additionally, it explores how these three variables influence higher education institutions' performance, using digital transformation as a mediating factor. This research was conducted based on the reality gap between the demands of adapting and making changes or transforming towards digital and higher education readiness. This research was conducted during the COVID-19 pandemic, a phenomenon that has triggered digital transformation. The object of this research is higher education institutions. This research adds IT factors and business synergy, which means the business in this research is educational programs and services in higher education. Data was gathered through an online survey of higher education institutions across Indonesia. The number of questionnaires processed was 124. The data was then analyzed using the SEM-PLS method. The study's findings reveal that digital orientation, digital capabilities, and IT-business synergy all significantly and positively impact digital transformation. Furthermore, digital transformation mediates the influence of digital orientation, digital capabilities, and IT-business synergy on collegiate performance. This research provides several things that need to be paid more attention to by higher education institutions when it comes to the findings in this study. First, higher education institutions must write clearly in their policies. Second, higher education institutions do not only focus on human resources but must also be supported by qualified technological resources. Third, higher education institutions must consider the involvement of the teaching team in IT projects
Fraud Reporting: An Experimental Examination of the Effect of Security and Financial Incentives on Trust in Whistleblowing Hotlines
No full textFraud reporting is a key element of effective corporate governance. This study empirically examines the effect of security and financial incentives on trust in whistleblowing channels and the intention to report fraud in government organizations. This study uses an internet-based experiment involving employees of government and private organizations. To test the hypothesis constructed, an analysis of variance is used. The study results show that greater channel security is associated with higher whistleblowing intentions. However, security does not affect the reporter's trust. The study also shows that financial incentives affect reporting trust and intent. The results also show that the effect of financial incentive moderation is significantly more substantial when the security of the reporting channel is low. This suggests that financial incentives can be an effective driver for organizational trust, resulting from the support of a security channel environment for whistleblowers. In a situation where reporting channel security is low, financial incentives also affect trust. The results of this study provide a new perspective on the effectiveness of fraud reporting from an organizational perspective. Research can provide theoretical support for the claim that financial incentives will increase trust when they do not yet believe that reporting channels are secure. The results of the study can inform the decision to provide financial incentives, while accounting for the ethical and practical sacrifices inherent in such decisions
The Influence of Audit Committee Characteristics on Firm Profitability in Ghana
No full textThis study explored how audit committee characteristics—specifically independence, meeting frequency, size, and financial expertise—affect the profitability of companies listed on the Ghana Stock Exchange. Using secondary data from industrial firms spanning 2010 to 2020, the research focused on Return on Assets (ROA) as the key performance measure. The independent variables were AC size, financial expertise, meeting frequency, and independence. The findings revealed a statistically significant positive relationship between ROA, AC independence, and financial expertise. However, the results also indicated a significant negative correlation between audit committee size and firm performance (FP), suggesting that larger committees may hinder profitability. The study underscored the critical role of independent and financially knowledgeable audit committees in enhancing corporate governance and improving financial outcomes for publicly listed firms in Ghana. These findings emphasize the importance of robust audit committee features in promoting transparency, accountability, and better financial performance for industrial companies on the Ghana Stock Exchange
Intellectual Capital and Firm’s Operational Efficiency
No full textThis research aims to determine the effect of intellectual capital (IC) on operational efficiency in 180 companies in the basic materials, consumer cyclicals, consumer non-cyclicals, healthcare, and industrials subsectors listed on the Indonesia Stock Exchange from 2015 to 2024. IC is measured using the Modified Value-Added Intellectual Coefficient (MVAIC) and operational efficiency, as determined by Data Envelopment Analysis (DEA). Generalized Least Squares regression analysis is used to test the hypothesis, which shows that human capital has a positive effect on operational efficiency. This means that superior employee knowledge and skills can provide creative ideas for changing or developing the company's production system. In contrast, relational capital has a negative effect. However, innovation capital and process capital have no effect. Previous studies have only analyzed the influence of IC, consisting of human capital and structural capital components, on operational efficiency. This study incorporated relational capital, innovation capital, and process capital components to expand the scope of IC in relation to company performance
Addressing Financial Accountability Challenges in an Indonesian Waqf Institution: Insights post-PSAK 412 Implementation
No full textThis study examines how and to whom financial accountability is practiced and assesses the post-implementation application of PSAK 412 at a pseudonymous waqf institution. We use a qualitative single-case design with semi-structured interviews, observation, and document analysis. Data were analyzed using thematic analysis, with line-by-line in vivo and descriptive coding, followed by focused/axial coding to develop subthemes and categories. Findings show accountability is predominantly upward to leaders. A divine-ownership framing—where endowed assets are viewed as belonging to Allah rather than to waqifs or the institution—reinforces purpose fidelity but narrows formal reporting to human stakeholders. Digital tools strengthen internal routines but, by themselves, do not produce PSAK-consistent, public-facing transparency. Financial statements show selective alignment with PSAK 412, notably in recognition timing and the completeness of Notes/Disclosure. The paper contributes a Dual-Accountability Translation perspective that shifts from a normative ideal to an operable model of how spiritual accountability is rendered into institutional outputs (statements, disclosures, accessible summaries). It concludes that modern governance regimes mediate and materialize Islamic accountability; without enabling conditions, translation remains partial. Limitations include the reliance on internal perspectives, early post-implementation timing, and the inability to observe the full deed-to-certificate process
Digital Transformation in Tax Administration: The Role of Coretax, Service Quality, and Morality in Enhancing MSME Compliance in Indonesia
No full textGlobal tax administrations increasingly adopt digital transformation to enhance compliance efficiency, yet Indonesian micro, small, and medium enterprises (MSMEs) still exhibit underreporting behavior that constrains the country's tax revenues. Persistent barriers, including limited internet access, data entry errors, and inadequate digital literacy, have hindered full adoption. Notably, MSME tax revenue declined in early 2025 following system disruptions and reporting delays that triggered potential penalties. In response, the Directorate General of Taxes introduced Coretax, an integrated digital platform that consolidates registration, e-filing, invoicing, and real-time notifications. This study examines the influence of perceived service quality, tax morality, and sanctions on MSME compliance and investigates the moderating role of Coretax utilization. Quantitative data were collected through a cross-sectional survey of 100 MSMEs in Badung Regency, purposively selected based on at least six months of Coretax usage and valid business registration. The data were analyzed using Structural Equation Modeling Partial Least Squares (SEM-PLS). The results indicate that service quality, tax morality, and sanctions have a significant impact on MSME tax compliance, with Coretax moderating these relationships. Frequent platform users demonstrated greater compliance improvement, driven by service quality and moral commitment, while personalized sanction notifications proved more effective than generic alerts. These findings highlight that an integrated and interactive e-tax system enhances compliance not only through digital efficiency but also by reinforcing behavioral and moral drivers. Further studies are recommended using longitudinal data and broader regional coverage to explore institutional and financial readiness factors