Gadjah Mada International Journal of Business
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Motivational Factors of the Collaborative Consumption in the Era of Sharing Econmy
Get PDFThe aim of this study was to analyze the motivational factors of collaborative consumption in the era of the sharing economy, as a part of consumers’ behavior by online media platforms. Collaborative consumption is about people’s willingness to share and to collaborate to meet certain needs. The study used the qualitative method with interviews for the data’s collection. The context of the study was using consumers who had experience of using Airbnb, Go-Jek, and selling their product via online media. Twenty-four respondents were obtained for the interviews. The length of each interview was approximately 1.5 hours. The analysis of this shifting consumption across its different facets provided an analysis of the motivational aspect of sharing resources, and the change in consumer consumption patterns. The motivational research examined the underlying reasons for consumers to act, and to undertake collaborative consumption; home sharing and selling second-hand goods were analyzed from the perspectives of their economic aspects, utility reasons, social orientation, emotional aspects, ecological aspects and personal values
Do We Need a Regulation on Dividends for Indonesia Stock Exchange?
No full textThis study examines the dividend life-cycle hypothesis and the propensity of non-financial firms listed on the Indonesia Stock Exchange (IDX) to pay dividends, in light of a recent idea by the IDX to regulate dividend payments. Using several proxies of the life cycle, the results consistently show that Indonesian listed firms follow the dividend life-cycle hypothesis. Our results recommend that if the authority insists on regulating dividend payments, the regulation should take into account the firms’ life cycles. Firms should only be required to pay dividends when they reach a certain stage and/or meet defined characteristics, according to their stage or characteristics
Modeling of Stochastic Volatility to Validate IDR Anchor Currency
Get PDFThis study aims to assess the performance of stochastic volatility models for their estimation of foreign exchange rate returns' volatility using daily data from Bank Indonesia (BI). The model is then applied to validate the anchor currency of Indonesian rupiah (IDR). Two stylized facts are incorporated into the models: A correlation between the previous returns and their conditional variance, and return errors following four different error distributions namely Normal, Student-t, non-central Student-t, and generalized hyperbolic skew Student-t. The analysis is based on the application of daily returns data from nine foreign currency selling rates to IDR from 2010 to 2015, including the AUD, CHF, CNY, EUR, GBP, JPY, MYR, SGD, and USD. The main results are: (1) Mixed evidence of positive and negative relationships between the return and its variance were found, especially significant correlations being found for the IDR/AUD, IDR/CHF, IDR/JPY, IDR/SGD, and IDR/USD returns series; (2) the model with the generalized hyperbolic skew Student's t-distribution specification for the returns error provides the best performance; and (3) anchoring the IDR to established hard currencies is more appropriate than anchoring it to other currencies
International Financial Reporting Standards Foreign Direct Investment in Asean Countries
Get PDFThe objective of this study is to investigate the relationship between International Financial Reporting Standard (IFRS) and Foreign Direct Investment (FDI) inflows. FDI has been identified as an economic consequence of IFRS. However, thus far, few studies have examined this issue in developing countries and there are no studies which have examined IFRS-FDI in ASEAN countries. In order to fulfill this objective, this study hypothesizes that IFRS is positively associated with FDI inflows. The hypothesis was empirically tested using a sample consisting of the ten ASEAN countries from 2001 to 2016, using a bias corrected Least Square Dummy Variable (LSDVC), and Ordinary Least Square (OLS). The results of the LSDVC and OLS analyses indicate that IFRS is positively associated with FDI inflows. Normally after the adoption of a new standard such as IFRS, regulators, practitioners and academicians would be interested in understanding the consequences. Therefore, this study contributes to the understanding of the economic consequences of IFRS. This study also provides evidence regarding the outcomes of IFRS, from the aspects of FDI inflows’ enhancement. Therefore, the outcomes of this study may be useful for adopter and non-adopter countries to understand the economic consequences of IFRS. The findings may also provide important inputs to policy makers of non-adopter countries who are contemplating the adoption of IFRS. The positive relationship between IFRS and FDI inflows provides evidence that IFRS is an important determinant of FDI inflows, and eventually economic growth
Financial Flexibility as an Investment Efficiency Factor in Asian Companies
Get PDFThis study explores the impact of a company’s financial flexibility on the effectiveness of its investments.The number of companies that have financial flexibility was calculated with the application of thespare debt capacity method. The research identifies the impact of financial flexibility on investment activity and on the level of suboptimal investments. The data from 1,736 companies in theAsian region, during the 2005-2015time period, are presented. The Asian region has unique institutional, economic and commercial environments that present a great basis for this paper. The results of the research reveal that financially flexible companies spend more on their investment expenditure and conduct more effective investment policiesby reducing the level of over- and underinvestment. Financial flexibility helps companies to make effective investments during a crisis period, but the difference in the flexibility between developed and developing countries and between large and small companies was not observed
PRICE EARNINGS RATIO (PER) MODEL CONSISTENCY: EVIDENCE FROM JAKARTA STOCK EXCHANGE
Get PDFRecently, stock valuation model using the earning multiplier approach (PER) is more popular among investors and analysts. This popularity has caused this model to seem to be the most perfect model among other valuation models. In response to the fact above, this research tries togive empirical evidence whether PER’s cross-sectional model can be used in determining the fairness of stock price traded in Jakarta Stock Exchange.Evaluation of the capability of PER’s cross-sectional model in determining the common stock price was conducted by developing three regression models from different time periods, namely the years of 1995, 1996, and 1997. The regression models used in this research was the one developed by Whitbeck-Kisor (1973). The model employed growth, dividend payout ratio (DPR), and standard deviation of growth (s-growth) as independent variable.This research was intended to test the consistency of the model in assessing stock prices. The result of this research showed that each model developed at different time periods, though with the same sample and method, gave different results. The differences were in the significance level and in the weight of influence of independent variables to the corresponding dependent variables. As a stock valuation model, a regression model should perform consistently from period to period, so normalPER of a stock could be predicted based on the model that was developed by historical data
Unveiling the Incidence of Interfirm Collaboration: Evidence from Research and Development Companies in Malaysia
Get PDFNowadays, interfirm collaboration has become an increasingly popular strategy among many organizations in various industries, in order to remain competitive. Based on the contingency theory, this paper examines the moderating effect of interfirm collaboration on the relationship between Human Resource Management (HRM) practices and organizational performance. Interfirm collaboration refers to the collaboration strategies undertaken by R&D companies, with other companies in similar or diverse functional areas, including R&D, marketing, or manufacturing, to enhance performance. Using data from 64 R&D companies, the hierarchical regression analyses showed that only collaboration in R&D and functional collaboration in manufacturing significantly moderated the relationship between HRM practices and organizational performance. Overall, the results provided partial support in the domain of the contingency theory. These results, however, are limited by the small sample size, which might have produced non-significant findings. Therefore, the generalization should be taken cautiously. Future research with a larger sample size is needed to confirm the findings
Consumer Attitudes Toward Advertisement and Brand, Based on the Number of Endorsers and Product Involvement: An Experimental Study
Get PDFUtilizing endorsers in the advertising industry to promote products is currently on the rise, and employing celebrities as the endorsers is still the marketers’ favorite method. This study aims to analyze the influence of the number of endorsers and the product’s involvement on the consumers’ attitude towards the advertisement and the brand. The research’s approach used a 2x2 factorial experimental design. A total of 120 undergraduate students, who were further divided into 4 groups, were selected as the respondents of this study. The results show the differences in consumer attitudes towards advertisements and the brand, based on the number of endorsers and the product’s involvement. The study also reveals that if there is low involvement with the product, multiple celebrity endorsements will generate a better consumers’ attitude towards it than a single celebrity endorsement. Multiple celebrity endorsements will also generate a better attitude among the consumers towards the brand than a single celebrity endorsement will produce
A Case Study of Knowledge Exchange in a Hierarchical Mechanism
Get PDFThis research investigates knowledge exchange in an organization applying hierarchical mechanisms, and the influence of social interactions on knowledge flow across different levels of analysis. The research uses a qualitative case study method of an Indonesian automotive component-making company, applying semi-structured interviews, observations, and focus groups at interorganizational, internal company, and shop floor levels. The research main finding is that in an organization applying hierarchical mechanisms, social interactions that exist at one level are able to influence interactions at other levels, and that the interactions can both facilitate and inhibit knowledge exchange across levels and boundaries. The application of any formal mechanism at interorganizational level needs to consider both the dynamics operating at social level and the potentially disparate and contradictory effects it may have if its aim is to promote knowledge flow across levels. The application of in-depth exploratory case study research contributes to the conceptualization of relationships between knowledge exchange, social interactions, and governance mechanism
Efficiency and Competition in the Malaysian Banking Market: Foreign versus Domestic Banks
Get PDFThe aim of this paper is to investigate efficiency performance of Malaysian banking market using data envelopment analysis approach in the context of the increasing presence of foreign banks. Specifically, two measures of efficiency are constructed, cost and profit efficiency by utilizing bank-level data of Malaysian commercial banks, over the period 2003 to 2014. The results obtained show the domestic banks are more efficient than the foreign banks counterparts for both measures of efficiency. Next, the Lerner Index approach is employed to measure competition and finally, Granger causality tests are undertaken to answer the question, does competition foster efficiency? The results of causality tests support a positive effect of competition on cost and profit efficiency of Malaysian banks. With regard to the financial liberalization, the findings imply that higher competitive pressure may be offset the market power of individual banks; however, eventually it will results in efficiency gains of Malaysian banks.