Tuntun Salamatun Zen, Tuntun Salamatun
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Journal : Journal Integration of Management Studies

Effect Of Financial Technology On Cash Holding In Indonesia Using Autoregressive Distributed Lag (ARDL) Diputra, Sachio Senna; Zen, Tuntun Salamatun; Hasanah, Eneng Nur
Journal Integration of Management Studies Vol. 1 No. 2 (2023)
Publisher : Integrasi Sains Media

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58229/jims.v1i2.94

Abstract

The rapid proliferation of financial technology (Fintech) has revolutionized the landscape of financial services globally, presenting digital alternatives to conventional banking and payment methods. Indonesia has emerged as a noteworthy adopter of Fintech, driven by the widespread usage of smartphones and government initiatives to foster financial inclusion. Nonetheless, the empirical research concerning the association between Fintech adoption and cash-holding behaviour in Indonesia remains limited. This study explores Fintech's influence on individuals' cash holding patterns in the country, considering direct indicators such as debit cards, credit cards, electronic money, mobile banking, and internet banking. A time-series analysis covering the period from M5 2013 to M3 2023, based on secondary data from the Bank Indonesia Statistic Database, is employed to achieve this research objective. The analytical framework utilizes the Autoregressive Distributed Lag (ARDL) bounds testing approach, accounting for the explanatory variables' concurrent and lagged effects. The empirical findings reveal a significant positive relationship between debit cards, mobile banking, and internet banking usage in short-term cash-holding behaviour. In contrast, credit card usage exhibits a negative and statistically significant association with long-term cash holding. These results contribute to a comprehensive understanding of how Fintech adoption shapes cash-holding behaviour in Indonesia and provide valuable insights into the country's transition toward a cashless society.
Does the Age of Board Members Affect Firms' Financial Performance? A Case of ESG Leader Companies in Indonesia Rusadi, Gisyla Oktaviana; Zen, Tuntun Salamatun
Journal Integration of Management Studies Vol. 1 No. 1 (2023)
Publisher : Integrasi Sains Media

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58229/jims.v1i1.17

Abstract

A lot of scholars across the globe have attempted to investigate the effects of board diversity towards firms’ financial performance and yielded inconclusive results. In this paper, the author aims to discover the effects of one of the board diversity attributes on firms’ financial performance in Indonesia, namely age diversity (measured by standard deviation) as well as the variables surrounding the board members' ages (average age and the presence of millennials). Purposive sampling method is used to select the research sample, which resulted in 41 companies which are listed in the ESG Sector Leaders IDX KEHATI index. The time frame of the observation is from 2018 to 2022. By using panel data regression, the author finds out that age diversity on BOC has a positive relationship with ROA, average age of BOC has a negative relationship with ROE, while the presence of millennials on BOD & BOC combined has a positive relationship with ROA. The negative association between average age and ROE indicates that boards with a younger average age outperform boards with an older average age. However, interestingly, the board members' age does not have any significant effect on the financial performance indicator which reflects the market perspective as measured by Tobin's Q.