The Indonesian Journal of Accounting Research
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Stock Information on Social Media and Stock Return
Full text linkInformation on social media, both positive and negative, can spread quickly so that it can affect the company's stock price. This study aims to determine the effect of posting on Instagram on abnormal returns. The sample used is 2,675 posts from 18 stock news accounts. Generalized Least Squares (GLS) regression is used to determine the impact of posting on Instagram on abnormal returns. The results showed that sentiment on social media had a positive effect on abnormal returns. However, there is a possibility of misinterpretation by investors and the participation of impostors, so the impact of information on social media on abnormal returns is only temporary. This study contributes to the behavioral finance literature by examining the effect of sentiment on Instagram on abnormal returns. In addition, information on social media can be utilized by investors by selling their ownership when the stock gets positive sentiment to get abnormal returns. Investors can buy stocks when there is a negative sentiment on social media because the stock price is lower than its intrinsic value, so it has the potential to increase again
Disclosure Practices of Management Discussion and Analysis: A Study on the Indian Corporate Sector
Full text linkAs an emerging economy, India’s post-pandemic resilience supports this study. We scrutinize current MD&A (Management Discussion and Analysis) reporting practices by Indian firms, aligning with the 'Industry, Innovation, and Infrastructure Development' goal of Sustainability. Data was extracted from annual reports of selected listed Indian companies for the years 2016-2021. The data was analyzed using content analysis and t-tests. We found an encouraging increase in the quantity and quality of disclosures over time, even during the pandemic. However, there is a significant discrepancy with quality lagging behind quantity. These findings highlight an urgent need for improved MD&A disclosures. Managers, regulators, and organizations could use this study to identify issues and strategically direct their efforts for maximum benefits in this domain. This pioneering study assesses adherence to MD&A practices within the Indian context, extending its contribution to the accounting literature of other developing Asian economies, such as Indonesia, Malaysia, and China, where MD&A practices are still evolving
The Implementation of SFAS 71, Bank Equity Valuation, and the Moderating Effect of Bank Size
No full textThis study is the first that investigates the value relevance of SFAS 71 within the banking sector, especially relating to the role of the new accounting standards in reducing the problem of information asymmetry due to bank asset opacity. Using samples consisting of 41 listed banking firms from 2016 to 2020, this study shows that the empirical relationship between the initial implementation of SFAS 71 and bank equity value is inverse U-shaped or concave and that bank size has a negative moderated effect on the relationship between the initial implementation of SFAS 71 and bank equity value. These findings indicate that: (i) at low levels of retained earnings adjustments due to the initial implementation of SFAS 71, the disclosure effect brought by the new accounting standards has a positive relationship with bank equity valuation, (ii) at higher levels of adjustments beyond those previously anticipated by capital market investors, the substantial effect of the new accounting standards has a negative relationship with bank equity valuation, and (iii) larger banks have more opaque assets and therefore suffer more significant valuation discounts due to the substance effec
Green Accounting and Sustainable Performance of Micro, Small, and Medium Enterprises: The Role of Financial Performance as Mediation
No full textThe performance of Micro, Small, and Medium Enterprises (MSMEs) has become a top priority in all countries due to a global perspective recognizing MSMEs as a tool for economic growth. Therefore, MSMEs must be able to choose strategies to enhance their financial performance towards a sustainable business, one of which is implementing a green accounting strategy. This research aims to explore financial performance's role in mediating green accounting's effect on sustainable performance. Questionnaires were distributed to 420 MSMEs owners in Central Java via the Google form. From the 420 questionnaires, 405 were then analyzed using SmartPLS. The study results show that the sustainable performance of MSMEs can be improved through green accounting and financial performance. In addition, concern for MSMEs towards the environment through green accounting can be an added value for MSMEs businesses in Central Java, Indonesia
Infrastructure Spending in the Characteristics of the Regions: Towards the Achievement of Sustainable Development Goals
No full textAbstract: Indonesia is faced with challenges by the increasing infrastructure competitiveness globally. In 2019, Indonesia's competitiveness rank declined to 72nd from 141 countries compared to the previous year (World Economic Forum, 2019). Another challenge is also depicted in achieving Sustainable Development Goals (SDGs) 9 dealing with the infrastructure as shown at two indicators that still require special attention. So far, the gaps in infrastructure development still exist in Indonesia after seeing the region's characteristics. The government also supports infrastructure development with a fiscal decentralization system through the Balancing Fund instrument. This study is aimed to analyze the effect of Owned-Source Revenues (OSR) and Balancing Fund Income on infrastructure development in Indonesia by considering infrastructure mandatory spending and aspects of regional characteristics comprise institutional status, geographical conditions, and economic structure. This study uses four-panel data regression modeling and the Generalised Method of Moment (GMM) method for analysis. The results showed that government intervention in mandatory infrastructure spending could moderate the influence of OSR and Balancing Fund income on infrastructure development. In testing based on regional characteristics, the impact of OSR and Specific Grant (Dana Alokasi Khusus/DAK) on infrastructure development is higher. It has a positive value in regions with better financial independence (urban, Java-Sumatra, and metropolitan). Otherwise, the influence of Block Grant (Dana Alokasi Umum/DAU) and Shared Nontax Revenues (Dana Bagi Hasil/DBH) on infrastructure development is stronger. It has a significant positive value in regions with a lower financial independence category (district, non-Java-Sumatra, and non-metropolitan). This research also provides novelty in an analysis of mandatory spending on infrastructure. The central government can use the results of this study to make priorities or maximize the potential of Subnational Governments (SNGs) in infrastructure development, and the ultimate goal is the achievement of the Infrastructure SDGs in Indonesia.Keywords: Infrastructure, Fiscal Decentralization, Regional Characteristics, GMM
Types of Control, Ethical Work Climates, and Organizational Citizenship Behavior in the Work-from-Home Setting: Lesson Learned from the Covid-19 Pandemic
No full textThe COVID-19 pandemic has encouraged companies worldwide to adjust their working methods using digital technology, especially the work-from-home policy. This paper’s objective is to investigate the effect of the type of management control on organizational citizenship behavior (OCB) in the work-from-home setting, in which the initial design of the job is not intended to be remote. This study also identifies the mediating role of ethical work climates between the two variables. The data are collected through an online survey with 116 respondents of employees working in originally non-remote workplace settings before the pandemic. SmartPLS4.0 is utilized to analyze the data. This study suggests that action control (formal control), personnel control (informal control), and cultural control (informal control) have a positive effect on the ethical work climate. At the same time, the effect further escalates positively to organizational citizenship behavior. Therefore, the ethical work climate fully mediates the three types of control on organizational citizenship behavior. The other finding shows no effect of results control on the ethical work climate. This paper provides evidence that the most effective type of control in involuntary enabled remote working settings is the non-results control or so-called behavioral control. This attempt to reveal the implication of sudden remote working on the effect of control practice on OCBs has not been made by previous research, which makes it the novelty of this research
Identifying Representative Financial Ratios of The Indian Tyre Industry : A Principal Component Analysis Approach
No full textFinancial Ratio analysis is a quintessential technique to evaluate financial statements and is widely used to interpret the performance of companies. This paper examines the application of factor analysis to financial ratios. Factor analysis is applied to investigate and find representative ratios based on different business functions and stakeholder perspectives to reduce complexities in analyzing financial performance through ratio analysis due to multiple ratios. Companies from the Indian tire industry listed on the Bombay Stock Exchange (BSE) have been selected for the study. A form of factor analysis is Principal component Analysis (PCA). From an initial set of fifty-three ratios, nine factors were generated, of which the ratios based on the highest factor loading were identified and selected as the representative ratios. Multiple regression analysis was carried out to eliminate statistically insignificant variables, which helped eliminate twenty ratios. Once again, factor analysis was deployed on the remaining variables, which generated seven factors as the outcome. Factors were named, and representative ratios were identified. Cluster analysis was performed to validate the results of factor analysis. The study shows that it is not essential to compute multiple ratios to assess the financial performance of companies
The Severity of COVID-19 and Firm Market Value: How Does It Affect Firm?
No full textThis paper is prompted by the lack of relevant studies on the implication of dangerous infections of contagious diseases caused by Coronaviruses in firms in Indonesia. Therefore, the purpose of this study is to examine the effect of the severity of Covid-19 infection on the market value of firms. Research of the Covid-19 severity on firm market value is presented in this study based on quarterly information of Indonesian listed firms. By employing a generalized least squares approach, the study concluded that the severity of Covid-19 has resulted in a significant decline in the market value of firms in Indonesia. Further findings regarding cash holdings suggest that substantial cash reserves can mitigate the adverse effects of Covid-19 by acting as a cushion to absorb shocks. The outcomes of this research complement the prevailing literature on Covid-19 and the market value of firms and provide considerations for both theoretical and practical applications
The Moderate Effect of Good Corporate Governance on Carbon Emission Disclosure and Company Value
No full textThis research examines the influence of carbon emission disclosure on the firm value with good corporate governance as a moderating variable. A total of 20 Indonesian energy service companies listed on Indonesia's stock exchange in 2015-2021 are analyzed using the Moderated Regression. The results show a significant positive effect between carbon emission disclosure and firm value. Despite an increase in the carbon emission disclosures following the amendment of Indonesia Financial Accounting Standards of Number 1 in 2014 about the demands of environmental disclosures, good corporate governance in these companies cannot moderate the relationship between carbon emission disclosure and firm value. This research strengthens the legitimacy theory that environmental disclosure maintains the good reputation of the companies. Investors can consider carbon emission disclosure when determining their investment decisions. Management can determine companies' policies related to carbon emission disclosures. The results of this research can be regarded as determining policies related to reducing carbon and greenhouse gas emissions in Indonesia
Expanding Technology Acceptance Model 3 Use Innovation Diffusion Theory on Accounting Learning During Pandemic: Insight from Indonesia
Full text linkThis study adds value to the existing limited literature on TAM 3 model by using Innovation Diffusion Theory to analyze how the intention to use Sidek Akuntamatika, a platform for online practicum learning among accounting lectures and teachers in Indonesia during the recent Covid-19 pandemic. We surveyed 150 accounting lecturers and teachers who signed up for the e-Workshop on Service, Trade, and Manufacturing Accounting and completed the corresponding online practicum. We use Structural Equation Modeling (SEM) as a data analysis method and WARP-PLS version 7.0. as the analytical tool. The findings show that people's opinions of Sidek Akuntamatika improve if the organization can demonstrate its results and its brand is viewed favorably. Then, perceived external control, self-confidence, and playfulness have also been identified as factors that precede a person's estimation of a task's difficulty. This study also found that perceived usefulness and perceived ease of use positively influenced intent to use. As the "innovation diffusion" theory would have it, compatibility is crucial in determining whether people plan to adopt the Sidek Akuntamatika. Government and stakeholders in education need to encourage learning innovations, especially to solve learning activity problems due to the Covid-19 pandemic. On the other hand, lecturers or teachers at the forefront of the transfer of knowledge in accounting learning need to pay more attention to choosing the best learning tool to enhance students' intention in studying