7 research outputs found
The Role of Firm Characteristics and Environmental Performance on Environmental Disclosure (Study from Indonesian Non-Financial Sector)
Full text linkThis research aims to analyze firm characteristics and environmental performance’s role in environmental disclosure. Using data from Indonesian Stock Exchange from 2018-2021, 80 data from the non-financial sector were selected for further analysis. Firm characteristics represent by profitability and firm size. The results show that profitability, firm size, and environmental performance positively affect environmental disclosure simultaneously. A partial analysis was conducted and shows that firm size has a positive effect on environmental disclosure. In line with legitimacy theory, the larger the company, they will give more transparency disclosure to the public as a form of responsibility
The effect of faultline and incentive schemes on knowledge-sharing behaviour
No full textPurpose: This study aims to examine the effect of faultline based on job responsibility and their interaction with the incentive scheme on knowledge-sharing behavior. Design/methodology/approach: This research is an experimental study with a 2 × 2 factorial design between subjects. Faultline and incentive schemes are manipulated into two groups (strong faultline–weak faultline and group incentive–individual incentives). This study involved 89 undergraduate accounting students as participants. Findings: This research shows that a strong faultline created a strong social identity effect. Hence, the knowledge-sharing behavior among group members tends to be lower than the weak faultline. Knowledge-sharing behavior tends to be higher in group incentive schemes than individual ones. However, there is no support for interactions between incentive schemes and faultline effects on knowledge-sharing behavior. The results indicate that forming a working subgroup based on informational characteristics attributes reduces cooperative behavior and knowledge sharing between groups. Originality/value: This study adds a new addition to faultline literature by examining the effect of faultline and incentive schemes on knowledge-sharing behavior based on informational characteristics attributes. Previous research on faultline and knowledge sharing was limited and primarily focused on faultlines created by demographic attributes. This study also enriches faultline literature on knowledge-sharing behavior using an experimental design. © 2022, Emerald Publishing Limited
The Effect of Levers of Control and Leadership Style on Creativity
No full textIntroduction: This research aims to investigate how leadership assists the levers of control (LOC) to influence employees’ creativity. Background problem: Managing a company is challenging due to the numerous issues faced, including those relating to the employees’ creativity. Prior studies showed different results concerning how company controls constrained or enhanced the employees’ creativity. Previous studies explained that incentives can influence the employees’ creativity, but only temporarily. However, organizations require creativity continuously in order to sustain themselves. In response to this issue, it is essential to investigate other determinants that encourage employees’ creativity, and how the process is relevant to each organization’s core values. This study examines this through companies control systems and leadership aspects. Novelty: Our study attempts to complement previous studies and answer Spekle’s (2017) call. This study offers transformational leadership to strengthen employees’ creativity, aligned through the LOC. Research Methods: The data were collected via an online survey. The questionnaires were sent to startup companies’ employees who had worked in the creative divisions of those companies for a minimum of six months. There were 109 responses that we processed. This study used SEM-PLS to analyze the data. Finding/ Result: The LOC positively influenced employee creativity. The more leaders behaved as transformational leader, it strengthened LOC to influence employees’ creativity. Conclusion: This study shows that the dimensions used to establish the LOC should be integrated, to align the employees’ creative ideas for new methods of working. Furthermore, this study supports the prior research into the self-determination theory and answers Spekle et al (2017), that leadership is required to influence the employees. Particularly, companies should appoint appropriate leaders to encourage their employees’ creativity. Transformational leaders should be considered to be an option
SALES GROWTH, EARNINGS VOLATILITY, AND GREEN ACCOUNTING ON STOCK PRICES (EVIDENCE FROM INDONESIA'S NON-CYCLICALS CONSUMER SECTOR)
No full textThis research aims to examine the indicators that determine stock prices. This study uses sample data in the form of 114 company data in the consumer non-cyclical sector listed on the Indonesia Stock Exchange during 2020-2022. These companies were chosen because Indonesia was affected by the Covid-19 pandemic and companies in this sector were categorized as fairly stable companies so investors were interested in their shares. The indicators used are sales growth, profit volatility, and green accounting. The analysis method used is multiple linear regression analysis using SPSS 29 software. The results of this study indicate that profit volatility has a significant effect on stock prices. In contrast, sales growth and green accounting do not have a substantial effect on stock prices. It is recommended to include additional indicators in various business sectors for further research. Keywords : Corporate Sustainability; Green Accounting; Sales Growth; Profitabilit
Environmental, Social and Governance (ESG) Report Quality and Firm Value in Southeast Asia
No full textThis study examines the impact between the Environmental, Social, and Governance (ESG) score and firm value described by market capitalization from the perspective of legitimacy theory. This study focuses on ESG disclosures from 608 companies in Southeast Asia for 5 years. This study tested three dimensions of the ESG Score (environmental, social, and governance pillar score) that most affect the value of the company. ESG Score is measured from the Thomson Reuters Eikon Refinitiv matrix and analyzed with multiple regression analysis. This research shows that ESG disclosure positively affects firm value. This finding shows that every ESG score increase affects the increase in market capitalization. Furthermore, the social score is the most affected by firm value. This study adds to ESG literature by examining three components of ESG score. Previous research focused on each component of ESG. This research uses three components of ESG and its relationship to firm value to examine which component has a strong effect on market capitalization
“Truth Vs. Slack Inducing” Paradox: How Does Compensation Scheme Mitigate Social Pressure on Budgetary Slack?
Full text linkThis research aims to examine the role of the compensation scheme in mitigating the negative impact of social pressure on the creation of budgetary slack. There are not clear phenomenon, how can compensation methods with pressure (penalty) actually be better able to reduce budgetary slack compared to compensation methods without penalty? This research contributes by validating the role of truth inducing and slack inducing compensation scheme in order to mitigate the budgetary slack through the perspective of expectancy theory. Results from experimental study among 56 undergraduate accounting students showed that obedience pressure tends to encourage individuals to create budgetary slack compared to while they experience pressure from the peers (H1). Another finding from this research is the tendency of individuals to create budgetary slack tends to be lower when they accept the slack inducing compensation mechanism than truth inducing (H2). These indicate that slack inducing compensation scheme is better used than truth inducing in mitigating the creation of budgetary slack. Different level of risk faced by the individual, especially in the absence of fines or sanctions if the budget target is not reached, give different impact on individual. Our research provides practical implication when individuals get stressed, compensation schemes are less effective in minimizing the effect of social pressure on the creation of budgetary slack.
Environmental, Social and Governance (ESG) Report Quality and Firm Value in Southeast Asia
Full text linkThis study examines the impact between the Environmental, Social, and Governance (ESG) score and firm value described by market capitalization from the perspective of legitimacy theory. This study focuses on ESG disclosures from 608 companies in Southeast Asia for 5 years. This study tested three dimensions of the ESG Score (environmental, social, and governance pillar score) that most affect the value of the company. ESG Score is measured from the Thomson Reuters Eikon Refinitiv matrix and analyzed with multiple regression analysis. This research shows that ESG disclosure positively affects firm value. This finding shows that every ESG score increase affects the increase in market capitalization. Furthermore, the social score is the most affected by firm value. This study adds to ESG literature by examining three components of ESG score. Previous research focused on each component of ESG. This research uses three components of ESG and its relationship to firm value to examine which component has a strong effect on market capitalization
