The Indonesian Journal of Accounting Research
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Experiment Study: The Effect of Tournament Incentive Schemes on Budgetary Slack and Moral Reasoning as Moderation
No full textA number of empirical findings on tournament incentive schemes proved the effectiveness and efficiency of tournament incentive schemes in improving the performance of employees and managers. However, the latest study connecting the tournament incentive schemes to negative behavior proved that the tournament incentive schemes encourage opportunistic behavior in companies. This study aims to investigate the effect of implementing tournament incentive schemes in two different schemes and the effect of different levels of individual moral reasoning on budgetary slack and to conduct investigations on the role of moral reasoning in moderating the tournament incentive scheme to budgetary slack. This study was designed using a 2x2 experimental method between subjects. The results of this study indicate greater budgetary slack for the condition of a repeated tournament incentive scheme rather than the conditions of a grand tournament incentive scheme. It is less common in groups for individuals with high moral reasoning rather than low moral reasoning groups. Theoretically, this research contributes to expanding the explanation of tournament theory for negative efforts involving the role of cognitive moral development (CMD) theory. In addition, this study can be basic in choosing alternative incentive schemes that can be used to create a conducive environment and be independent of unethical behavior, especially for the process of budgeting in the companies
Building Trust Through Clarity: The Role of Key Audit Matters in Enhancing Financial Reporting Integrity for State-Owned Construction Companies (BUMN Karya)
No full textThis study explores the application and effectiveness of Key Audit Matters (KAMs) in improving financial transparency and audit quality within Indonesia's state-owned construction enterprises (BUMN Karya). A qualitative content analysis methodology was applied to identify recurring themes and trends, linking audit procedures to the risks highlighted in KAM disclosures. The study reveals that KAM disclosures play a critical role in providing stakeholders with insights into complex financial risks, particularly in large-scale infrastructure projects, including asset impairment and recoverability, revenue recognition and contract fulfillment, and valuation and estimation. Furthermore, the analysis shows that auditors undertake procedures to examine management's assumptions, verify compliance with Indonesian Financial Reporting Standards (PSAK), and minimize the risk of material misstatements. However, inconsistencies in the identification and reporting of KAMs, along with limited guidelines, pose challenges for auditors. This research provides valuable insights into the application of KAMs within Indonesia's public enterprises, offering a deeper understanding of how audit procedures address financial reporting challenges. This study contributes to the growing body of knowledge on KAM disclosures, focusing on the unique challenges faced by Indonesia's state-owned construction enterprises. By analyzing the implementation of KAMs in this context, it offers insights into the relationship between audit procedures, transparency, and stakeholder trust, advancing the literature on auditing practices in emerging economies
Trends and Opportunities in ESG Research within Sustainability Accounting: A Bibliometric Analysis
No full textAwareness of environmental issues has been increasing over the past decade. At the international level, this heightened awareness has prompted many countries to focus on sustainability. Along with the growing awareness of sustainability, research on ESG in relation to sustainability accounting has also increased significantly. This study aims to map ESG research in the context of sustainability accounting through bibliometric analysis. From this mapping, we can analyze publication trends, popular research topics, contributions from institutions and researchers, and the interconnections between ESG topics and sustainability accounting. This bibliometric analysis not only helps to understand the development of ESG literature but also provides a clear picture of underexplored or underdeveloped areas that require further research. The study analyzes 151 articles and conference proceedings indexed in Scopus that relate to ESG in the context of sustainability accounting. The findings indicate that research on ESG themes in the context of sustainability accounting remains relevant and promising. Researchers can explore topics such as greenhouse gas emissions and the Global Reporting Initiative, which are underdeveloped yet strongly connected to ESG themes in sustainability accounting. As a result, the research conducted provides novelty in the field
Developing a Method to Measure Public Prosperity Gap between Ideal and Current Conditions of a Local Government: A Public Financial Management Perspective
No full textThis study aims to develop a method for measuring the public prosperity gap between the ideal condition, as stated in the constitution, and the current condition of a local government, utilizing the Purchasing Power Parity (PPP) Theory and the concept of service-level solvency. This study uses the City of Melbourne as a representation of ideal conditions and the City of Jakarta as a representation of current conditions. The model developed in this study can accurately measure the prosperity gap that occurs and assess its severity. The limitation of this study is the use of the service solvency in general terms to measure the prosperity of the community. The use of specific solvency should improve the accuracy of the prosperity gap analysis. However, these limitations do not reduce the validity of the model
How Do CEO Tenure and Narcissism Moderate the Impact Of Sustainability Reporting on Firm Value? Evidence in Indonesia
No full textAbstract: This is to provide empirical evidence on the impact of sustainability reporting on firm value, moderated by CEO tenure and CEO narcissism. The data for this research encompasses all financial and nonfinancial sectors of companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2022. The analysis uses panel data testing to evaluate 3,645 unbalanced observations. The findings reveal that sustainability reporting has a significant positive effect on firm value, supporting legitimacy theory, which posits that companies must maintain their social performance by fulfilling social needs and creating a positive societal perception, enhancing the company's image and value. However, CEO tenure and narcissism do not strengthen the relationship between sustainability reporting and firm value. The implications of these findings are relevant to managerial decision-makers and academic literature, offering insights into the dynamics of corporate governance and sustainability practices.Keywords: CEO tenure, CEO narcissim, sustainability reporting, firm value Abstrak— Penelitian ini bertujuan untuk memberikan bukti empiris mengenai dampak pelaporan keberlanjutan terhadap nilai perusahaan, dengan moderasi masa jabatan CEO dan narsisisme CEO. Data penelitian ini mencakup seluruh sektor keuangan dan non-keuangan perusahaan yang terdaftar di Bursa Efek Indonesia (BEI) dari tahun 2016 hingga 2022. Analisis menggunakan pengujian data panel untuk mengevaluasi 3.645 observasi tidak seimbang. Temuan menunjukkan bahwa pelaporan keberlanjutan memiliki pengaruh positif yang signifikan terhadap nilai perusahaan, mendukung teori legitimasi yang menyatakan bahwa perusahaan harus menjaga kinerja sosial mereka dengan memenuhi kebutuhan sosial dan menciptakan persepsi positif masyarakat, sehingga meningkatkan citra dan nilai perusahaan. Namun, masa jabatan CEO dan narsisisme tidak memperkuat hubungan antara pelaporan keberlanjutan dan nilai perusahaan. Implikasi dari temuan ini relevan bagi pengambil keputusan manajerial dan literatur akademik, memberikan wawasan tentang dinamika tata kelola perusahaan dan praktik keberlanjutan.Kata Kunci: CEO tenure, CEO narcissim, sustainability reporting, firm value
Why are the Other Non-Tax State Revenue Budget Variances in Ministries and Agencies in Indonesia Large? Any Dysfunctional Behaviour?
No full textThis study investigated the cause of significant variance in the revenue budget realization of Other Non-Tax State Revenues (NTSRs) in ministries and agencies in Indonesia. This study employed a qualitative research approach by conducting in-depth interviews with 13 informants from relevant authorities, followed by some document analyses. The results discovered that the causes of the variance in revenue budget from Other NTSR of State Ministries and Agencies could be divided into three: 1) uncontrolled factors, covering difficulty predicting certain NTSR types, external factors, unexpected service requests, and political factors; 2) controlled factors, including mapping of potential revenue, the tendency of dysfunctional behavior (budgetary slack, cherry-picking, myopia, ratchet), expenditure resource dilemma, lack of human resources capacity and capability, and poor supervision of NTSR planning; and 3) regulation/policy changes from upper-level authority. This study fills a gap in identifying factors that trigger government budget variance problems on other NTSRs that often occur in developing countries such as Indonesia. This study also adds insight into how agency problem patterns occur at the ministry and agency level in budgeting practice
Don’t Ask, Don’t Tell: A Study on Whistleblowing Behavior in Indonesia State-owned Enterprises
No full textEmployees or subordinates can potentially engage in unethical behavior with their superiors both for themselves and their superiors, even though it can be detrimental to the organization as a whole. This study examines perceived supervisor support's effect on whistleblowing intentions through employee reciprocity. The method used was an online survey via Google Forms to employees of Indonesian state-owned enterprises. Of the 309 questionnaires obtained, only 279 questionnaires could be analyzed using a two-stage Partial Least Square Structural Equation Modeling (PLS-SEM) technique to test the hypotheses. The results show that perceived supervisor support does not directly affect whistleblowing intentions; it has an indirect and significant negative effect on whistleblowing intentions only through employee reciprocity. The findings of this study are expected to contribute theoretically and empirically to the fields of management accounting and business ethics
Investigating the Impact of Green Banking on Efficiency Strategy: Evidence from Indonesia
No full textThis study aims to investigate the application of green banking on the tendency for efficiency in banking companies. This study designs green banking using serial logic from green accounting, green innovation, and green technology in its tendency to increase company efficiency. Furthermore, stakeholders strongly influence the creation of an ethical company with three pillar objectives: social, environmental, and economic. This study explores banking companies because they are unique in their position as economic drivers but are required to be able to have an impact on society and the environment. This study uses existing banking data in Indonesia in the 2015-2021 range, which produces 231 observational data. This research found that banking companies can implement the three pillars, which include social, environmental, and economic, by encouraging stakeholders. Furthermore, in its position as an economic driver, banks will make efficiency in their budget costs so that the economic pillars are maintained without leaving the social and environmental pillars. Finally, this research has implications for the role of stakeholders who can encourage the implementation of green banking and strategies for implementing green banking for the banking industry
The Influence of Corporate Social Responsibility (CSR) Expenditure Elements on Debt Financing and The Moderating Role of Accounting Conservatism
Full text linkThis research aims to analyze the influence of CSR expenditure elements on debt financing with accounting conservatism as a moderating variable. This research uses a quantitative approach by collecting secondary data from sustainability reports, financial reports, and annual reports taken from the Indonesia Stock Exchange website and the web pages of each company. The research sample covers the observation period 2020-2022. Using company data registered on IDX and publishing sustainability reports on the company website. The research sample was obtained using purposive sampling, and 213 observation samples were obtained. The research results show that the element of CSR performance, namely environmental expenditure, hurts debt financing. Meanwhile, elements of social expenditure and economic expenditure from CSR have a positive effect on debt financing. The results of the moderation test show that the influence of environmental expenditure and debt financing cannot be moderated by accounting conservatism. Meanwhile, accounting conservatism can moderate the influence of social expenditure and economic expenditure on debt financing. The first two implications of this research are the transparency of CSR activities in environmental, social, and economic expenditure, which is a positive signal of external parties' trust in the company's debt financing policy. Second, a high level of accounting conservatism considers the interests of stakeholders who strengthen CSR policies in that social and economic expenditures influence corporate debt financing decisions
Assessing The Impact of Capital Structure on Firm Value: A Quantitative Study of Financial Ratios and Stock Prices of Nigeria Food and Beverage Companies
Full text linkThis article evaluates the impact of capital structure (CS) on firm value (FV) in Nigeria's food and beverage sector. A quantitative research approach is employed, focusing on the association between financial ratios (debt to equity (DER), return on asset (ROA), current ratio, asset growth, and firm size) and stock prices as a proxy for firm value (FV). Panel data were sourced from financial statements of sixteen (16) publicly listed food and beverage companies in the Nigeria stock exchange from 2017 to 2021, and data were analyzed using statistical software. The descriptive statistics reveal the characteristics of the variables, showing variations in stock prices, ROA, current ratio, asset growth, firm size, and DER. Regression analysis using the random effects model demonstrates the significance of firm size on stock prices. At the same time, other variables (current ratio, ROA, debt to equity, and asset growth) are found to be insignificant. The research concludes that firm size has an unfavorable relevance impact on stock prices, showing that bigger firms tend to have lower stock prices. The findings contribute to the understanding of the connection between capital structure (CS) and firm value (FV) in the Nigerian food and beverage industry, providing insights for data-driven decision-making in the industry