Gadjah Mada International Journal of Business
Not a member yet
391 research outputs found
Sort by
An Empirical Analysis of Cash Flow and Investment Fluctuations Using Firm-Level Panel Data
Get PDFSince the pioneering work of Gurley and Shaw (1955), the attempt has been done to justify money as a primary focal point of macroeconomic theorizing. However, other researchers argue that variables such as financial development and indicators are also important to be linked with macroeconomic performance. Here, if money can be thought as means of production and consumer goods as the ultimate end toward which production is directed, and then capital also occupies a position that is both logically and temporarily intermediate between original means and ultimate ends. This temporarily intermediate status of capital is not in serious dispute, but its significance for macroeconomic theorizing is rarely recognized. The firms’ decision to acquire funds through debt and equity financings affects the capital structure, and, in the firm’s balance sheet, the impact of capital appears to influence the inventory investment. Hence, the significance of capital structure –induced inventory distortions in the context of firm-level is the basis for our article. The sample for our analysis is compiled from the balance sheets of listed syaria firms in the Kuala Lumpur Stock Exchange for the period 1995-2000
AN ASSESSMENT OF MICROFINANCE INSTITUTION PERFORMANCE: The Importance of Institutional Environment
Get PDFThis paper aims to assess the performance of Village Credit Institutions (Lembaga Perkreditan Desa or LPD) in Gianyar district, Bali province, Indonesia and its affecting factors –particularly its institutional environment. The performance indicators assessed include financial indicators (such as portfolio quality, leverage, capital adequacy ratio, productivity, efficiency, profitability, and financial viability) and outreach of the LPDs. Institutions here refer to the rules or procedures that shape how agents (people) interact and the organizations that implement the rules and codes of conduct to achieve desired outcomes. Based on data from financial reports of 174 LPDs of Gianyar district in 1999 and 2001, interviews with some stakeholders (clients, chairmen, and member of commissioner board) of the LPDs, and using descriptive analysis approach, this paper reveals that the LPDs have achieved a good performance indicators and been sustainable, and the good performance and sustainability have been very much influenced by institutional environment which includes both formal and informal institutions
The Existence of Equilibrium Asset Price Under Diverse Information
Get PDFWe investigate the effects of diverse information on the price of risky assets in rational expectation model. The expected cash flows innovation is considered as private information where informed trader knows it. It is assumed that the high informed trader has smaller variance error regarding the cash flows innovation than the low informed trader and uninformed traders. We found that the cash flow innovation influences the demand of informed trader. The market depth is a linear function of the demand of uninformed trader and weighted average of total variance error of information. Our finding supports previous research done by Spiegel and Subrahmanyam (1992).Our model shows that the more diverse the information, the higher the lambda coefficient which means the market becomes less liquid. The models consistent with Miller (1977) who found that the bigger the gap of private information is, the less liquid the market will be. If both informed traders have the same information they will demand the same amount of risky asset and it turns out to be similar as in the Kyle (1985) model
Knowledge as a Critical Resource in Innovation among Small Furniture Companies in Indonesia: An Exploration
Get PDFThe furniture industry makes a significant contribution to the Indonesian economy but is exposed to an intensifying competitive environment and to emerging shortages of raw material. These circumstances have prompted small furniture manufacturers in the district of Jepara to undertake several types of innovation. It appears that of all first ranked innovations, product innovation is the largest category. In the overall pattern of innovations, market innovation and logistics innovation are also important, a situation that can be explained by the typical character and current circumstances of the furniture industry in this area. The innovation process concerned mainly relies on traditional knowledge sources, namely in-house learning-by-doing and experimentation, and buyers (customers). However, the manufacturers show willingness to use other knowledge sources in the near future, particularly more formal and globally oriented ones, such as exhibitions, research institutions, and the Internet. What tends to hamper such progress is that the manufacturers’ capability to access these knowledge sources is limited by financial obstacles and to a smaller extent by complexity and language obstacles. The paper concludes with a few policy recommendations and potential directions of future research. One of the policy recommendations aims at a combination of the traditional way of knowledge generation through in-house learning-by-doing and experimentation with knowledge from modern and formal sources
Development and Validation of TQM Constructs: The Philippine Experience
Get PDFThis study was conducted to determine the critical components of a Total Quality Management program (referred to as TQM constructs) and the specific strategies, policies and programs that should comprise each TQM construct (referred to as TQM elements); and to validate these TQM constructs in selected companies in the Philippines. Development of the TQM constructs involved the theoretical derivation of the TQM constructs from literature. Validation of the TQM constructs involved a two-stage survey determining the critical components perceived important by managers and assessing the extent by which these critical TQM program components are adopted. Assessment of the instrument’s reliability was done through the Internal Consistency Method with Cronbach coefficient alpha as the relevant coefficient while content and construct validity were done through panel review and Exploratory Factor Analyses, respectively.Results of the first survey indicate a slight deviation in what is perceived as critical components of a quality management system vis-a-vis the original 72 TQM elements. In general, the elements pertaining to a TQM construct as theoretically derived no longer formed part of such construct but merged with other elements in another TQM construct where it shared similarity in functions. This implies that under Philippine context, especially when using perception of importance as the basis for scale development, the integration of activities, strategies and functions associated with TQM program adoption is perceived by respondent managers as more critical. The study presented the multi-functional and multi-dimensional aspects of the TQM constructs. The resulting 35 critical TQM items were further validated in Survey 2. The TQM factors pertaining to the adoption of quantitative techniques in quality management as well as the incentive and reward system were rated lowest in terms of adoption
THE EFFECT OF JOB EMBEDDEDNESS ON ORGANIZATIONAL CITIZENSHIP BEHAVIOR: The Mediating Role of Sense of Responsibility
Get PDFThis study examines a new attachment concept called job embeddedness as antecedent of organizational citizenship behavior (OCB). Firstly, we tested hypothesis concerning positive relationship between job embeddedness and OCB as predicted by Mitchell et al. (2001). Secondly, we tested hypothesis concerning the mediation effect of sense of responsibility in the relationship between job embeddedness and OCB.Nurses (N = 170) and their immediate supervisors ( N = 41) from five privately owned hospital in Jogjakarta participated in this study. Of 340 questionnaires distributed to the respondents, 339 were returned yielding a response rate of 99 percent. Of those returned, 300 questionnaires were available for further analyses. Nurses were asked to respond to a questionnaire of 40 items concerning perception of embeddedness and 4 item concerning sense of responsibility to their employing organization. Nurses’ citizenship behavior were measured using 12 items as rated by their immediate supervisors. The results support the hypothesis that job embeddedness correlates positively with OCB. However, our result failed to support the prediction of the mediating effect of employees’ sense of responsibility in causal relationship between job embeddedness and OCB. The implications of the findings for further research on relationship between job embeddedness and OCB research are discussed
The Relationships between Belief, Attitude, Subjective Norm, and Behavior Towards Infant Food Formula Selection: The Views of the Malaysian Mothers
Get PDFThe purpose of the study is to determine the relationships between belief, attitude, subjective norm, intention, and behavior towards the choice of infant food based on the Theory of Reasoned Action (TRA). An analysis on a sample of 108 mothers indicates that the TRA could be used in predicting choice decision of infant food formulas by explaining 57 percent of the variance in the behavioral intention. The subjective norm component had a higher predictive power than the attitudinal component. Of this normative component, parents or relatives and doctors were found to be more influential. Intention to choose an infant formula was also influenced by family income. The belief outcomes in evaluating a premium infant formula and economic infant formula were found to be different. For premium infant formula, brand trusted, closest to breast milk and nutrients content were identified as the dominant attributes. In contrast, availability, affordable, and nutrients content were identified as the prime beliefs in evaluating economic infant formula. Implications of the findings are discussed
Internet Access Practices and Employee Attitudes toward Internet Usage Policy Implementation in Selected Philippines Financial Institutions
Get PDFThis study explores the employees’ concept of appropriate use of Internet facilities as well as their perception of the rights and liabilities, both of the individual and of the organization, associated with the grant of Internet access privileges in the workplace. It further examines how employees perceive their organization’s monitoring of employees online activities and the use of an Internet Usage Policy, whether these are seen as monitoring and control mechanisms or as ways to ensure that Internet access facilities are shared equitably and used responsibly. While the issue of the impact of Internet access on employee productivity will not directly be tackled, the study will provide insights into the frequency and type of usage of Internet facilities in the workplace. Considering the sizeable investment that an organization makes to provide Internet facilities, determining how employees use these facilities to achieve the goals of the organization is, in the very least, interesting and for most organizations concerned with their survival in difficult times, critically important
THE ISLAMIC PERSPECTIVE ON THE CONSTRUCTION OFACCOUNTING DISCIPLINE
No full textThe study attempts to elaborate critically the construction of accounting discipline that is based on Islamic values, especially in the aspects of ontology and epistemology. The analysis of the study begins with discussing a debate of modernism and postmodernism. Under this discussion, it is argued that modern knowledge (for example, accounting) which is constructed based on modern methodology has philosophical weaknesses and is now attacked by postmodernism. The discussion of post modernism leads us to Islamic perspective of knowledge that is the future orientation of how Shari'ate (Islamic) accounting discipline should be constructed
The Preparedness of the Indonesian Garment Exporters in the Post-MFA Scenario: An Analysis from the Survey
Get PDFThe clothing or garments industry has developed rapidly during the past some decades and has contributed to the economic growth of many nations, both developed and developing countries. This industry has been very much regulated by many bilateral agreements such as Multi Fiber Arrangement (MFA), a quota arrangement made by the importing countries. As MFA (quota regime) comes to an end by 2005 and integrates into the WTO regime, it will bring opportunities to highly competitive and proactive garment exporting countries whereas the challenges will be faced more by the less competitive countries. Issues related to environment and social compliance, technology requirements etc. have been brought into surface by the importing countries, which may worsen the condition. Under the above scenario, it is imperative that certain proactive measures be taken. Thus, the broad objective of this study is to analyze the response of the garment exporters from Indonesia towards the emerging issues related to environmental and social compliance, technology requirements etc. The present study is a questionnaire-based study. The samples have been selected from the Directories of largest exporters in the country. With reminders and persuasion, the final number of useable responses has been 115 Indonesian garment exporters. Seven factors of the emerging issues were identified by using factor analysis. In addition, factors of competitiveness, and the strategies adopted by the exporters have also been analyzed. The findings show that the overall perceptions of the Indonesia garment exporters indicate that Indonesia is less competitive as compared to other competing countries