The Indonesian Journal of Accounting Research
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Does Comprehensive Income Predict Future Cashflow Better Than Net Income?
Full text linkThis study examines the ability of net income and comprehensive income in predicting future cash flows on publicly listed companies in Indonesia Stock Exchange. Further, this study also compares the ability of net income and comprehensive income in predicting future cash flows. Based on the sample of 1,735 firm-year observations of Indonesian listed companies for the financial years of 2011-2016, the result shows that both net income and comprehensive income have a significant relationship with future cash flows. However, we find that comprehensive income does not have a better capability than net income in predicting future cash flows
Fixed Assets Revaluation and Future Firm Performance: Empirical Evidence from Indonesia
Full text linkIndonesia's government issued a temporary tax cut law in 2015, which serves as a tax incentive that encourages Indonesian firms to revalue their fixed assets and disclose them in the financial statements according to the assets' fair value. We investigate the association between the revaluation of fixed assets and future firm performance for Indonesian firms. The result shows that the revaluation of fixed assets by Indonesian firms is significantly positively associated with changes in operating income one year after revaluation. Meanwhile, there is no positive association between the revaluation of fixed assets and operating cash flow after two years of revaluation. This result implied that the motivation of revaluation is mainly related to the effort to disclose the fair value of the fixed assets to the user of financial statements. We can conclude that the temporary tax cut law is effective in fostering the future operating performance of the Indonesian firms.
The Effect of Earnings Quality on Cost of Equity Through Information Asymmetry: An Empirical Study of the Manufacturing Companies in the Indonesia Stock Exchange
Full text linkThis research examines the effect of earnings quality on the cost of equity and whether information asymmetry affects the relationship as a mediator. A hundred and twenty-three manufacturing companies listed in the Indonesia Stock Exchange during 2007-2012 were selected through a purposive sampling method. This study uses absolute discretionary accruals (|DA|) to measure earnings quality, bid-ask spread to proxy information asymmetry, and CAPM to measure the cost of equity. Using the bootstrapping method in the hypotheses testing, this study finds a significant negative effect of earnings quality on the information asymmetry. However, there is no support on the positive association between information asymmetry and the cost of equity, as well as the role of information asymmetry as a mediator on the negative association between earnings quality and cost of equity
The Role of Capital Structure on The Effect of Dividend Policy and Business Risk on Firm Value (Evidence from Indonesian Manufacturing Company)
Full text linkThis study examines the effect of dividend policy and business risk on firm value and capital structure. Moreover, this study analyzes the role of capital structure on that relationship simultaneously. The relationship between these variables has been a debate in the capital market literature. Using manufacturing companies listed on Indonesia Stock Exchange (IDX) for years 2012-2018, this study takes into account that the dividend policy and business risk does not directly impact to the firm value. Thus, we examine 41 companies that meet the sample criteria. The result show that dividend policy and business risk have a positive effect both on firm value and capital structure. Then, capital structure has a role to mediating the effect of dividend policy and business risk on firm value has been confirmed.
Accountability and Management Transparency Masjid Finance Based on Principles Aman and Fathanah (Phenomenology Study in Mosques in Nganjuk Hamlet , Sugihwaras Village, Wonomulyo District, Polewali Mandar Regency, West Sulawesi Province)
Full text linkThis research is based on the antipasti community to the mosque management who usually do not understand financial management and are less transparent. This study aims to determine the application of accountability and transparency of mosque financial management based on the principles of trust and fathanah at Istiqomah Sugihwaras mosque. This research is a type of qualitative research. This study uses the Phenomenology approach where this research is carried out by explaining the existing phenomena by developing concepts and gathering facts through data as a means of supporting and seeing and relating to the reality that is in its implementation.The results of this study indicate that, Accountability and financial transparency of the Istiqomah Sugihwaras Mosque is in good condition, and is accountable to fellow administrators, mosque worshipers and to Allah. Judging from the Friday share report, Friday's Charity Box report, and monthly donors have been arranged as well as possible and announced every Friday. Istiqomah Mosque does not apply the principle of fathanah as seen from the ordinary court structure and dual positions in the mosque management so that the financial management of the mosque is not good. Transparency of the Istiqomah Mosque only relies on announcements every Friday before Friday prayers. So it is very necessary for training or guidance in financial management, especially non-profit financial institutions and is very much needed with the use of media such as notice boards as a means to communicate the results of the performance of takmir mosques.
The Effect of Full Accrual Accounting Implementation on Audit Delay (Evidence from Districts/Citied Government in Indonesia for The Years 2013-2016)
Full text linkThis study investigates the effect of full accrual accounting implementation on audit delay using all districts/cities government in Indonesia for the years 2013-2016. The total sample of districts/cities government in this study are 476 cities with 4 years observation period. Using the research purposive sampling method, this study collected 1,904 samples. The independent variable in this study is the implementation of full accrual accounting, includes several control variables, such as local government size (SIZE), population and leverage. To test the hypotheseis this study used logistic regression techniques (Binary Logistics). The results of this study showed that the implementation of full accrual accounting, local government size (SIZE), population and leverage hasa significant effect on audit delay
Firm Performance, Top Management Compensation, and Risk Preference: A Story of Indonesian Firms
Full text linkThe issue of conflict of interests between shareholders and managers is interesting and widely examined. Compensation is often used to align the interests of managers with those of shareholders. This study aims, first, to show an empirical evidence of the relationship between company's performance and the manager’s compensation. In addition, this study also examines the impact of risk preference on that relationship. The sample for this study of manufacturing companies listed in the Indonesian Stock Exchange (BEI) for the period of 2008 to 2013. Data was obtained from annual reports, financial statements, and BvD Osiris. Regression analysis was employed to test the hypotheses. The results show that compensation is related more to accounting performance than to market performance. The compensation also had an impact on the future accounting performance, but not on future market performance. However, contrary to the expectation, risk preference does not strengthen the relationship between future compensation and future performance. After splitting the sample into three categories, the compensation can motivate managers to increase the accounting performance only for companies with better performance.
Analyzing Factors Affecting the Use of Voluntary Disclosure Information using a Modified Theory of Reasoned Action: A Study in Indonesia
Full text linkAbstract: Voluntary disclosure information has been a research topic for a long time. However, very few tried to explain it from the investors' point of view. This study attempted to justify the use of voluntary disclosure information by using a modified Theory of Reasoned Action (TRA) model by adding perceived freedom of physical effort as a third behavior beliefs construct. By using SEM and path analysis, this study found that all three behavior beliefs constructs affect behavior intention to use voluntary disclosure information. Perceived usefulness and perceived freedom of physical effort have a direct effect on behavior intention in using voluntary disclosure information while perceived ease of use is having an indirect impact to behavior intention in using voluntary disclosure information through perceived usefulness. This study has opened a path to a new view of research in voluntary disclosure topic, which is the information-seeking behavior from the investors' point of view. Further study related to this new view can be done to further extend the TRA model in particular to voluntary disclosure information settingAbstract: Pengungkapan informasi sukarela telah menjadi topik penelitian untuk waktu yang lama. Namun, sangat sedikit yang mencoba menjelaskannya dari sudut pandang investor. Penelitian ini berusaha untuk membenarkan penggunaan informasi pengungkapan sukarela dengan menggunakan model Theory Reasoned Action (TRA) yang dimodifikasi dengan menambahkan kebebasan yang dirasakan dari usaha fisik sebagai konstruk keyakinan perilaku ketiga. Dengan menggunakan SEM dan analisis jalur, penelitian ini menemukan bahwa ketiga konstruk keyakinan perilaku mempengaruhi niat perilaku untuk menggunakan informasi pengungkapan sukarela. Dirasakan kegunaan dan kebebasan yang dirasakan dari upaya fisik memiliki efek langsung terhadap niat perilaku dalam menggunakan informasi pengungkapan sukarela sementara persepsi kemudahan penggunaan memiliki dampak tidak langsung dengan niat perilaku dalam menggunakan informasi pengungkapan sukarela melalui kegunaan yang dirasakan. Studi ini telah membuka jalan untuk pandangan baru penelitian dalam topik pengungkapan sukarela, yang merupakan perilaku pencarian informasi dari sudut pandang investor. Studi lebih lanjut terkait dengan pandangan baru ini dapat dilakukan untuk lebih memperluas model TRA khususnya untuk pengaturan informasi pengungkapan sukarela