The Indonesian Journal of Accounting Research
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Do Performance Measurement Systems and Ethical Leadership Style Affect Sustainable Investment Decisions? An Experimental Evidence
Full text linkManagement accounting is expected to be one of the significant tools to tackle environmental and sustainability issues. This study aims to fill the gap in the empirical results about the effect of performance measurement systems that include financial and sustainability indicators, one element of management accounting, on sustainable investment decisions. Additionally, this study examines whether ethical leadership plays a prominent role in that relationship. This study used an experimental method with 67 students majoring in accounting as participants. The data was collected online, where requirements for conducting an experimental study were fulfilled. The results of this study support the hypothesis that managers will be more likely to make sustainable investment decisions when their performance is evaluated using financial and sustainability performance measurements compared to that of financial performance measurement alone. Additionally, the effect is higher when their top managers perform high ethical leadership. The paper fills the gap in the literature about the effect of performance measurement and reward systems (PMRS) on sustainable investment decisions. This paper specifically gives direction for the business on how to react and take action amidst the sustainability era
The Moderating Role of Independent Commissioners on the Effect of Family Ownership on Social Disclosures
Full text linkThis study aims to empirically test the effect of family ownership on social disclosures with independent commissioners as a moderating variable. Our research sample is 98 Indonesian financial firms listed on the Indonesian Stock Exchange (IDX) in 2018-2021, resulting in 389 firm-year observations. We measure social disclosures using the weighted scores of 52 indicators of the 2018 Global Reporting Initiative (GRI), which can be broken down into four aspects: labor practices and decent work, human rights, society, and product responsibility. Family ownership is divided into direct and indirect family ownership. This study tests the research hypotheses using panel-data regression analysis. Our results reveal that firms with higher total and direct family ownership engage in lower social disclosures. On the other hand, indirect family ownership positively affects social disclosures. Independent commissioners motivate financial firms to engage more in social disclosures and moderate the impact of family ownership on social disclosures. Specifically, they make the effect of family ownership on social disclosures positive. Firms with a greater proportion of independent commissioners exhibit a stronger effect of family ownership on social disclosures. Based on the social disclosure aspects, family-owned firms tend to avoid social disclosures related to human rights, and independent commissioners motivate family firms to disclose more, especially those related to labor practices and decent work. Overall, our findings support the type II agency theory, arguing that family owners as majority shareholders increase agency conflicts by reducing social disclosure activities
Board Diversity and Environmental Disclosures: A Study of Indonesian Listed Companies
No full textThis research examines whether the diversity of boards of commissioners and boards of directors affects environmental disclosures. We include all non-financial firms listed on the Indonesian Stock Exchange during 2018-2020 and use the generalized least square (GLS) model. Our findings show that the diversity of age and ethnicity of both the board of commissioners and the board of directors positively influences environmental disclosures. Further, while boards of directors' gender diversity positively affects environmental disclosure, there is no support for the impact of boards of commissioners on the disclosures. Lastly, there is no empirical support for the influence of directors' or commissioners' nationality on the companies' environmental disclosures. The findings highlight the importance of promoting board diversity on both boards of commissioners and directors
Systematic Literature Review on Implementation of Environmentally Sustainable Banking: Motivation, Benefits, and Challenges
Full text linkDespite the fact that implementing environmentally friendly banking encompasses several difficulties, the banking industry is now driven to do so globally. Due to the increasing depletion of natural resources and the worsening effects of climate change, the banking sector must undertake a paradigm shift toward sustainable business practices. The study aims to identify the motivational factors for the implementation of environmental sustainability in banking practices. Furthermore, this study intends to examine the barriers the banking industry faces in implementing and integrating environmental sustainability into their operations through a systematic literature review of 45 research articles published in various databases. The used database covers the period of 2015 to 2023. "Green banking" is a cutting-edge approach that incorporates environmental considerations into banking operations, loan disbursement, and investment decisions. Hence, this study thoroughly analyzes the motivations, benefits, and difficulties of green banking to promote sustainable activities. It promotes sustainable development, stakeholder value maximization, and stakeholder satisfaction, which requires a regulatory framework and stakeholder awareness and engagement. There are several challenges to adopting environmental sustainability, including a lack of understanding and guidance from the government and regulators. This study provides valuable insights for financial institutions, governments, and academics to understand green banking practices and environmental sustainability
Computerized Accounting Integration into High School Curriculum Delivery: Benefits and Barriers
No full textEducation without integrating computer applications in this 21st century deprives learners of the experience and exposure of linking education to real-world job processes. In South Africa, higher education institutions have long integrated computerized accounting systems into their accounting qualifications curriculum. However, that is not the case with the high school accounting curriculum. This paper aims to investigate the benefits and barriers of integrating computerized accounting into the high school accounting curriculum. This is a case study design. Data was collected from purposively selected high school accounting teachers using semi-structured interviews. The interview transcripts were entered into the Atlas.ti software. The discourse analysis method was used to interpret and evaluate the meaning of emerging themes. The findings indicate that integrating computerized accounting into curriculum delivery would develop interest and positive attitudes among learners towards accounting, enhance their understanding of accounting principles, improve their academic performance, and attract them into the accounting profession. Unavailability of resources and lack of funding were identified as barriers that can impede the integration of computerized accounting into high school curriculum delivery
Emission Reduction Scores and Market Behaviour: Analysing Stock Synchronicity in India
No full textThis study investigates the relationship between Emission Reduction Scores (ERS) and stock price synchronicity among 151 listed Indian companies from 2011 to 2022. Our findings demonstrate a significant negative association between ERS and stock price synchronicity, indicating that companies with higher emission reduction practices exhibit less synchronized stock prices. This reduced synchronicity is attributed to the greater incorporation of firm-specific information into stock valuations, which enhances resilience against systematic market risks. This analysis provides valuable insights for investors, regulators, and academics, highlighting the critical role of transparent environmental performance disclosures in improving market efficiency. These findings support improved portfolio diversification and risk management strategies and offer a holistic understanding of how environmental sustainability initiatives impact economic prosperity
Top Skills Honing for Today’s Accountants: a Literature Review
No full textEmployability abilities are becoming increasingly important in today's technologically sophisticated, globally integrated job markets. The departments' continued adoption of new technology, automation tools, and software will ultimately change the expectations of the accounting teams. With the assistance of prior literature, this essay examines the vital abilities and skills accountants should possess today. Today's accountants need to acquire the most cutting-edge skills for effective performance. The earlier studies, which drew their conclusions from literature published in the last 20 years, laid the groundwork for the fundamental knowledge and abilities that modern accountants must possess. The four main skill areas that comprise the whole skill set needed by accountants in the modern workplace are business skills, soft skills, digital and technology skills, and ethical skills. It emphasizes how important it is to provide professional accountants with the most recent skill sets available so they may perform efficiently in a dynamic workplace. Accounting professionals must learn to use new technologies to continue in their field. The study suggests a theoretical framework by classifying twenty-three skills into four main categories: business, soft, ethical, and technology and digital skills. Future research directions are also suggeste
Cross-Border Related Party Sales, Tax Avoidance, and Tunneling: Regulatory Impacts on Indonesian Manufacturing Companies
No full textThis study investigates the influence of a company's tax avoidance on the firms’ related-party transactions. Specifically, it focuses on the specific types of related-party transactions, i.e., related-party sales with foreign affiliates (the cross-border sales of related-party transactions: CB-RPT) and related-party other receivables (RPOR). We further investigate whether the introduction of government regulation concerning transfer pricing “TP Documentation” affects firms’ CB-RPT practices by comparing the results between the pre-and post-period of regulation, i.e., 2012 – 2016 and 2017-2019, respectively. We conducted multiple regression analyses on the manufacturing companies listed on the Indonesia Stock Exchange from 2012 to 2019. Our findings show that tax avoidance has a positive and significant association with both CB-RPT and RPOR in the period preceding the regulation (i.e., 2012-2016), suggesting that companies use the transactions to fulfill tax avoidance strategy and tunnel out the additional resources to their related parties. However, we find no significant impacts of tax avoidance on both CB-RPT and RPOR in the post-period (2017-2019), indicating that companies seem to change their strategy in utilizing transfer pricing for tax avoidance purposes following the enactment of the new regulation
Does Religiosity Matter? Experimental Research on Abusive Supervision in Budgetary Slack Creation
Full text linkAbusive supervision behavior has long been a problem in the budgeting process. Its nature has been proven to damage individuals and significantly impact the corporate environment. Several studies related to Abusive supervision show evidence that individuals who experience abusive supervision tend to do Budgetary Slack. Meanwhile, religiosity, which is predicted as a personal value that can control individuals from committing acts outside the norm or harming the company, sometimes has little effect. Several studies have shown that high religiosity does not prevent individuals from taking despicable actions such as earnings management, Budgetary Slack, commitment escalation, and others. Is there anything wrong with religiosity as an individual's value? Does this occur due to variable measurement error (instrument) or method bias in sampling? Researchers tried to compare various instruments related to religiosity to obtain the most appropriate measurement, especially by photographing this phenomenon. We surveyed 83 participants using the experimental method with a 2x2 factorial design to understand how religious belief might buffer against the destructive effects of abusive supervision on budgetary slack. The results of this study are expected to be a reference (empirical evidence) related to the role of religiosity as a personal value in preventing destructive behavior of individuals, especially in the budgeting process
Concentrated Ownership and Corporate Social Responsibility: Insights from Indian Companies
No full textThis study examined the complex relationship between ownership structures, family business dynamics, group affiliations, and Corporate Social Responsibility (CSR) expenditures on the Indian market from 2010 to 2022. Using 10,684 observations representing 1,882 Indian companies, this study analyzed block-holder investment size, coalition effect, and contestability factors. This study hypothesized and found empirical evidence indicating that family businesses with substantial promoter holdings allocate fewer resources to CSR, primarily due to their propensity to maintain control and conserve resources. In addition, the study reveals the significant effects of power dynamics within organizations, competitive landscapes, and group affiliations on CSR initiatives. The findings are important to various stakeholders, including retail and institutional investors, government bodies, non-governmental organizations, consumers, and suppliers, as they provide insights to advance responsible business practices and foster a more sustainable and socially responsible business environment