Gadjah Mada International Journal of Business
Not a member yet
391 research outputs found
Sort by
The Combined Effects of Financial Derivatives and Discretionary Accruals on the Value Relevance of Earnings and the Book Value of Equity
Get PDFThis study aimed to understand (1) the association between the use of discretionary accruals and financial derivatives, taking into consideration the implementation of revised PSAK 55 (1999), which was adopted from SFAS 133; (2) the combined effects of derivatives and discretionary accruals on the value relevance of earnings and equity. The analysis used panel data regressions and the Wald test over the period from 2001-2008. The results showed a positive or complementary association between derivatives and discretionary accruals. The positive association implied that managers tended to intensify the use of discretionary accruals to offset a higher use of derivatives. Price and return models demonstrated negative significant effects of derivatives on the value relevance of earnings. The return model showed negative significant effects of discretionary accruals on the value relevance of earnings but negative effects on the value relevance of equity with the price model
THE INFLUENCE OF CHANGE AGENTS ON INFORMATION TECHNOLOGY DIFFUSION IN FIRMS
Get PDFThe role of change agents in technological diffusion and innovation at firm level has been addressed in published literature mostly within the context of the developed countries. However, the involvement of change agents in the diffusion and adoption of IT-based innovations by small and medium-sized firms in the developing countries is largely unexplored. The main research questions are why and how management decisions to adopt and use IT are influenced (if any) by the interactions of key people in firms with several identified change agents. Case studies are used as the preferred approach to answer the research questions and to understand the qualitative aspects of IT diffusion at the level of the firm. The study concludes that IT diffusion in small and medium-sized firms expose mixed institutional influences. The mechanism by which change agents are involved in IT diffusion is also unique and is claimed to be different from that is generally found in other studies in this area. Some policy implications are proposed by this study
The Dominance of the Agency Model on Financing Decisions
Get PDFThere are some issues about how companies consider their financing. These issues are related to the amount, source, type, and the structure of such financing. So far, there is no uniform model that is able to explain how companies deal with these issues. There are three competing, dominant theories of financing decision making, i.e. the Pecking Order Theory, the Static Trade-off Theory, and the Agency Model Theory. This study attempts to explore which theory explains the best way for companies in the consumer industry to decide their financing method. There are five hypotheses to be tested in this study. Using data from public listed companies on the Indonesian Stock Exchange from 2008 to 2011, it seems that the Agency Model Theory is more dominant than the other two theories in explaining the way companies fulfill their financing needs
Analysis of The Influence of Liquidity, Credit and Operational Risk, in Indonesian Islamic Bank’s Financing for The Period 2007-2013
Get PDFThe purpose of this paper is to analyze the influence of credit, liquidity and operational risks in six Indonesian’s islamic banking financing products namely mudharabah, musyarakah, murabahah, istishna, ijarah and qardh, in order to try to discover whether or not Indonesian islamic banking is based on the “risk-sharing” system. This paper relies on a fixed effect model test based on the panel data analysis method, focusing on the period from 2007 to 2013. The research is an exploratory and descriptive study of all the Indonesian islamic banks that were operating in 2013. The results of this study show that the Islamic banking system in Indonesia truly has banking products based on “risk-sharing.” We found out that credit, operational and liquidity risks as a whole, have significant influence on mudarabah, musyarakah, murabahah, istishna, ijarah and qardh based financing. There is a correlation between the credit risk and mudarabah based financing, and no causal relationship between the credit risk and musharaka, murabahah, ijarah, istishna and qardh based financing. There is also correlation between the operational risk and mudarabah and murabahah based financing, and no causal relationship between the operational risk and musharaka, istishna, ijarah and qardh based financing. There is correlation between the liquidity risk and istishna based financing, and no causal relationship between the liquidity risk and musharaka, mudarabah, murabahah, ijarah and qardh based financing. A major implication of this study is the fact that there is no causal relationship between the credit risk and musharakah based financing, which is the mode of financing where the islamic bank shares the risk with its clients, but there is an influence of credit risk toward mudarabah mode financing, a financing mode where the Islamic bank bears all the risk. These findings can lead us to conclude that the Indonesian Islamic banking sector is based on the “risk sharing” system
MANAGEMENT STYLES IN A GLOBAL MARKET ECONOMY
Get PDFGlobalization is the intensification of the spatial organization ofsocial relations and transactions, which put distant localities and local activities at a level of worldwide range, consequence and significance. These activities cluster into new reality like a globally operating market system and a globally developing technoscience. The question is to what extent a global civil society will come about too. At the level of internationally operating firms management styles will have to be developed to enhance the understanding of cultural heterogeneity within this global civil society. Cultural complexity will increase due to the intensification of interactions and transactions. Within and between internationally operating firms. Communicative rationality in terms of dialogue and conversations should be reinforced to deal adequately with this complexity. Communicative rationality perceives language not only as a mere representation of an objective reality but also as a human practice in a social context. Firms operating as communities of practice will enhance through proper management styles the reciprocal understanding we need in a world economy
Is Physical Evidence Still Valid? A Study of Low Cost Carriers in Indonesia
Get PDFPhysical evidence has been widely accepted as variable that has impact on satisfaction, specifically in airline service. However, this study showed some opposite result for low cost airlines in Indonesia. It revealed that physical evidence has no effect on the passengers’ satisfaction but the fares and its service quality to passengers.’ This study collected sample of 317 passengers from commercial domestic flights at terminal 1, 2, and 3 at Soekarno Hatta airport in Cengkareng, Indonesia. The variables used in this study were: fares, service quality, physical evidence, passengers’ satisfaction levels and repeat buying. Two variables, i.e.: service quality and physical evidence were treated as second order. This study used Structural Equation Modeling (SEM) for verification analysis. The result revealed that there was no effect of physical evidence on the passengers’ satisfaction. It also found that repeat buying demonstrated the passengers’ satisfaction
The Role of Relational Reward Benefits for Developing the Non-Financial Value of a Customer to an Organization: Structural Equation Modeling Approach
Get PDFResearch on the customer value to an organization has been widely explored, yet most studies only determined on the financial value based on the customer’s purchasing behavior. The value of customers beyond their purchasing behavior –defined as the relational worth - has not been commonly captured yet. This non-financial value is one of the drivers in retaining customers, hence it becomes a crucial factor in preserving the profitability of the organization. For this reason, this paper aims to examine the customer non-financial valuations of a loyalty reward program. The scope of the study covered a reward program involving consumer exertions in the context of a Frequent Flyer Program (FFP) offered by an airline in Indonesia. The hypotheses are empirically tested with a sample of FFP members conducted through an online survey (n=475). The data were statistically analyzed using structural equation modeling (SEM) as a first order construct. Results indicate that the perceived social rewards lead to an affective and normative commitment as well as consumers’ satisfaction, while the economic reward did not have an effect on developing affective bonds with members for long-term relationships. The relational benefit offered through the FFP creates affectively and normatively committed members who produce relational behaviors, in terms of WOM, immunity, openness and acquiescence of the members to the airline. Furthermore, the FFP members produced social behaviors toward the airline when they felt satisfied with their relational exchanges.
Interest Rates Targeting of Monetary Policy: An Open Economy SVAR Study of Malaysia
Get PDFThis paper examines the implementation of monetary policy during the interest rates targeting in a small-open economy (i.e. Malaysia) by using an open-economy structural VAR (SVAR) study. It tests the effect of foreign shocks upon domestic macroeconomic fluctuations and monetary policy, and examines how effective monetary policy is in influencing macroeconomic variables. The results show that during interest rates targeting, monetary policy plays a significant role in affecting macroeconomics variables. This finding suggests that monetary policy has an important role as a stabilization policy in a small-open economy.
The Bank Lending Channel of Monetary Policy? The Panel Evidence from Egypt
Get PDFThis paper examines the relevance of the bank lending channel of monetary policy in Egypt using bank-level data. Previous empirical studies in Egypt that used macro-level data have not supported the relevance of the bank lending channel. However, using a sample of 32 commercial banks for the period from 1998 until 2011 and a dynamic panel GMM technique, the empirical findings revealed the relevance of the bank lending channel of monetary policy in Egypt. Moreover, there is a heterogeneity effect of monetary policy on bank loans according to bank size, in which the small banks are more affected during a monetary contraction than larger banks. This finding signals that the monetary authorities in Egypt should take cognizance of the stability of interest rates in order to stabilize the bank loan supply.
