Gadjah Mada International Journal of Business
Not a member yet
391 research outputs found
Sort by
Does Government Accounting Information Matter to Gain Votes? Evidence from Local Elections in Indonesia
Full text linkVoting decisions have become a strategic tool to analyze whether voters consider an incumbent's economic policies make it worthwhile re-electing the incumbent. If a strong correlation between the information on economic policies and the election results could be proved, evidence would thus be found that government accounting captures data on the attributes of government finances, consistent with the information incorporated by constituents in their voting decisions. This study investigates the association between government accounting information and local election outcomes and observes two regional government clusters that held local elections in 2017 and 2018, in which 198 incumbents ran for office again. By employing regression analysis, this study finds that several accounting information items impact the vote acquisition of the incumbents. The specific finding is that budget accounting information has a more decisive influence on votes for the incumbents than financial accounting information does. The result implies budgetary accounting information that represents service performance is beneficial for gaining votes. The limitation that should be considered is the emphasis on the assumption of voter rationality, in which the voters accumulate performance information on the incumbents for their voting decisions. It is highly improbable that voters will allocate time to collecting and reading government financial statements on purpose
The Effect of Entrepreneurial Attitudes and Individual Attributes on Entrepreneurial Activity in the context of ASEAN Member States: Evidence from Thailand and Vietnam
Full text linkThis study analyzes the influence of entrepreneurial attitudes and individual attributes on entrepreneurial activity in two ASEAN member countries: Vietnam and Thailand. By applying the multinomial logistics regression (MLR) analysis method, the results show that those with an entrepreneurial network, who can read business opportunities, and have skills and knowledge, have a positive and significant influence when deciding to start and invest in others’ new businesses. On the other hand, females and those with a secondary education were more likely to engage in entrepreneurial activities. The study also shows that Vietnam’s entrepreneurial attitudes and individual characteristics seem to be better, differentiating it from Thailand. The Global Entrepreneurship Monitor (GEM) data from 2017 were the most recent data available at the time of this study. However, the availability of more up-to-date data is considered necessary to enrich and expand the impact of future research
The Relationship Between Export Market Orientation and Firm Performance: A Meta-Analysis of Main and Moderator Effects
Full text linkDespite various studies into the relationship between performance and the export market orientation, researchers still argue that the current findings remain mixed and inconclusive. In this study, the authors use meta-analytic techniques to examine the relationship between the export market orientation and performance, and the impact of firm-level, industry-level and country-level moderators using a total sample of 10,758 firms in 51 manuscripts from 19 countries. In particular, this study focuses on the nature of incongruent findings across studies conducted in different contexts around the globe. The results reveal that market orientation has a positive overall relationship with exporters’ revenue-based and profit-based performance. Moreover, the moderated regression analysis results indicate that the type of construct (general versus export-specific) and firm size moderate the relationship between the export market orientation and performance. The results also reveal that market turbulence, competitive intensity, and technological turbulence are significant industry-level moderators of the relationship between the market orientation and performance. This study contributes to the body of knowledge by aggregating the empirical evidence from the past literature and providing conclusive results that are beneficial for practitioners and researchers
The Effect of Push, Pull, and Mooring Factors on Customers’ Switching Intention to Green Cosmetics
Full text linkNowadays, consumption patterns concern consumers since they have negative impacts on environmental sustainability. Marketers have conducted some efforts to create eco-friendly products. This condition has caused research into green marketing to grow significantly. Various studies have been conducted to examine consumers' behavior intentions toward green products. However, the theory applied to explain the phenomenon still has the potential to be developed. Thus, in this study, the researchers examine the consumers' switching intention from conventional cosmetics to green cosmetics, by applying the migration theory and the push-pull-mooring framework. The push factors are explained by the dissatisfaction variable and the low-quality variable. The alternative attractiveness variable explains the pull factor. Meanwhile, the mooring factors are explained by variety-seeking and the unfavorable subjective norm variables. PLS-SEM is used to analyze 198 consumers of conventional cosmetics. The results indicate that the pull factor is the main factor that supports the consumers' switching intention to green cosmetics, and the second is the push factor. Furthermore, the mooring factors are proven to moderate the effect of the pull factor on consumers' switching intention. On the other hand, the mooring factors are not shown to moderate the influence of the push factors on the consumers' switching intention
A Test of Positive Feedback Trading among Foreign Portfolio Investors in Nigeria
Full text linkIt has been established in the literature that the trading behavior of international investors may increase market vulnerability, especially for emerging markets. Consequently, this study examines whether positive feedback trading exists in the Nigerian stock market. Both descriptive and inferential analyses are carried out on monthly data covering the period 2013 to 2020. Specifically, the ARDL bounds testing approach is employed. Findings indicate that positive feedback trading exists in the market, as stock returns have positive and significant influence on foreign portfolio inflows. The results further show that this trading pattern becomes more prominent with rising economic growth. The findings again reveal that the exchange rate and the interest rate explain the foreign portfolio inflows in the Nigerian market. The study’s outcomes lend support for the pull theory in explaining the foreign portfolio inflow. However, no evidence is found in support of the push theory, as an explanation for the foreign portfolio inflow as the “OPEC basket crude oil price” is insignificant. It is thereby recommended that regulators should adopt measures that will help foreign investors to be better informed about the Nigerian market, in order to reduce their positive feedback trading behavior. Moreso, there is a need for the government to put in place policies targeted toward enhancing the growth of the stock market and the economy. In this way, the negative impact of such trading behavior will be minimal, as short-term trading by foreign investors will be reduced and the foreign portfolio inflows will be sustainable
Is Service with a Smile Enough to Satisfy Customers? Sincere and Insincere Smiles via Video and Vignette
Full text linkThe current service trend does not merely involve face-to-face interactions, including smiling (high-contact-service) by service employees, but also using methods such as texting (low-contact service). Sincere and insincere smile studies have used a method involving dynamic (videos) and static stimuli (photographs). However, research into the different types of smiles is still limited to methods using a vignette. This study aims to examine the effect of the type of smile on customer satisfaction using a vignette and video. A total of 139 people participated in 2 (smile: sincere versus insincere) x 2 (media: vignette versus video) groups. The study found that there is an influence from the type of smile on customer satisfaction. A sincere smile using video produces greater customer satisfaction than using a vignette does, because the emotional contagion process through video is more real than it is through a vignette. The interesting finding from this study is that there is a gap in the insincere smile condition between using video and a vignette. The dissatisfaction of customers is greater when served with an insincere smile by text (vignette), compared with a face-to-face interaction by video. Video could only capture the muscle movement on a person’s cheeks (zygomaticus major), but it could not see the muscle wrinkles formed around the eyes (orbicularis oculi), compared to a vignette. This study implies that although the standard operational procedure (SOP) for service demands friendliness, a customer can feel whether a server’s smile is genuine or fake. The customer’s dissatisfaction toward an insincere smile will be higher with a low-contact service using text than a high-contact service with video
Financial Distress and Audit Report Lags: An Empirical Study in Korea
Full text linkThis study examines the association between a firm’s financial distress and audit report lags. Through this analysis, we intend to reveal whether auditors consider theclients’ financial distress when performing external audits. This study employs 2,786 firmyear observations from 2011 to 2018. The sample of this study consists of companies listedon the Korea Composite Stock Price Index (KOSPI) and the Korea Securities Dealers Automated Quotation (KOSDAQ). We perform OLS regression analysis to test our hypothesis. The OLS regression analysis is conducted through the SAS and STATA programs.We find that there is a significant and positive association between financial distress andaudit report lags. The audit report lags increase as the likelihood of clients’ financial distress increases. The results indicate that audits take different amounts of audit effort whenauditors consider financial distress as a business risk when they conduct audits. In otherwords, we provide evidence that auditors increase the amount of audit effort when thelikelihood of clients’ financial distress is high. In the absence of studies on how externalauditors respond to audited firms' financial distress, this study analyzes whether externalauditors change their audit efforts by assessing the audited firms' financial distress. Second, the empirical result that external auditors actually follow the guidelines related tobusiness risk and financial distress specified in the Korean Auditing Standards supportsthe effectiveness of the business risk-related regulations specified in the Korean AuditingStandard
The Impact of Organizational Justice on the Organizational Citizenship Behavior of Contract Workers in Indonesia: The Role of Exchange Quality and Multifocal Trust
Full text linkThis study aims to examine the role of the double mediation of cognition-based trust and affect-based trust, along with the quality of the exchanges (perceived organizational support/POS and leader-member exchange/LMX), on the influence of organizational justice on organizational citizenship behavior (OCB). The survey involved 182 contract lecturers from the five top Muhammadiyah universities in Indonesia. Using structural equation models, this study has succeeded in demonstrating that the quality of the individual exchanges between supervisors and subordinates (LMX and affective-based trust) successfully mediate the sources of justice from the supervisors (interactional and informational justice). The quality of the individual exchanges with organizations (cognitive-based trust and POS) successfully mediate the sources of the organization (procedural justice). Implications for the theory and practice are discussed
The Gambler’s Fallacy, the Halo Effect, and the Familiarity Effect Based on Risk Profile: Bullish and Bearish Market in Indonesia Stock Exchange
Full text linkThis study tests three behavioral biases: the gambler’s fallacy, the halo effect, and the familiarity effect. The novelty is the behavioral bias in bullish and bearish markets, based on different investors’ risk profiles. The questionnaire used a Likert scale. This study argues that bullish and bearish markets, and different risk profiles, affect investors’ behavioral bias. The gambler’s fallacy occurs when markets are bullish and partially when markets are bearish. The halo effect without risk profile does not occur in either market, and the familiarity effect occurs in both markets. Investors with a very conservative risk profile will experience behavioral bias, especially the gambler’s fallacy and the familiarity effect, with bullish and bearish markets. Investors with a conservative risk profile will partially experience the halo effect in bullish markets
Determining Factors of Peer-to-Peer (P2P) Lending Avoidance: Empirical Evidence from Indonesia
Full text linkP2P lending offers loans to the public with easy processes and terms. However, the level of P2P lending disbursements is still lower than that of the banks. In addition, a comparison of the number of users of P2P lenders and the productive age population of Indonesia shows that there are still many people who do not use P2P lending. This paper examines the factors that make Indonesians avoid P2P lending. This study used an online survey approach for its data collection and structural equation modeling (SEM) to analyze the data from 499 responses. The study found that the perceived threat from P2P lending is influenced by its perceived severity, perceived susceptibility, and risk tolerance. This perceived threat and social influences cause people’s avoidance motivation. This study contributes to the fintech literature by providing empirical evidence on the avoidance of P2P lending from the borrowers’ perspectives using the TTAT model. Other implications are an input for regulators/governments to enforce the rules for user protection and input for the P2P lending service providers to provide educational programs regarding the use of P2P lending