Journal of Accounting and Investment
JAI receives rigorous articles that have not been offered for publication elsewhere. JAI focuses on the issue related to accounting and investments that are relevant for the development of theory and practices of accounting in Indonesia and southeast asia especially. Therefore, JAI accepts the articles from Indonesia authors and other countries. JAI covered various of research approach, namely: quantitative, qualitative and mixed method.
Articles
646 Documents
<![CDATA[Voluntary disclosure with the International Integrated Reporting Council (IIRC) framework and value relevance ]]>
<![CDATA[Asri Pangestika Lutfiani]]>;
<![CDATA[Khoirul Fatah]]>;
<![CDATA[Fadli Hudaya]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 1: January 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i1.19786
<![CDATA[Research aims: This paper aims to investigate whether voluntary disclosure of integrated reports (IR) with the International Integrated Reporting Council (IIRC) framework influences value relevance in Indonesia.Design/Methodology/Approach: The data covered the period 2017-2022 of all manufacturing companies in Indonesia listed on the Indonesia Stock Exchange (IDX). The total sample of this study was 606 firm-year observations. An IR Score was developed using the International IR Framework 2013, and content analysis was performed to measure IR adoption and practice. This study employed multiple linear regression to test the hypothesis. The authors also used two models: the Pricing Model for testing the main result and the Ohlson Model for testing robustness. Research findings: The result claims that the IR score yielded a positive and statistically significant effect on the value relevance of the company. In other words, companies with higher IR scores will also have a higher value relevance.Theoretical contribution/ Originality: First, this study contributes to the literature in accounting, stating that companies that adopt the IR framework can increase the value relevance. Second, by using different models to test the hypothesis, the results of this paper exhibit a consistent relationship.Practitioner/Policy implication: The study's findings help regulators develop new regulations.Research limitation/Implication: This research could only be generalized to Indonesian manufacturing companies. In addition, a significant number of Indonesian manufacturing companies continue to fail to submit integrated reports.]]>
<![CDATA[The effect of strategy, information asymmetry, and incentive scheme on budgetary slack in family business company ]]>
<![CDATA[Janet Anneta]]>;
<![CDATA[Jesica Handoko]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 2: May 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i2.19857
<![CDATA[Research aims: This research focuses on testing the influence of implementing strategies by the company, the influence of information asymmetry that occurs between parties in the organization, and the incentive system applied in the organization to its employees.Design/Methodology/Approach: Computerized experimental research was conducted using a 2x2x2 mixed-subject research design, where there were two between-subject variables and one within-subject variable. Participants in this research were employees of family business companies involved in preparing the company budget. This test used the ANOVA analysis tool with Repeated Measurement.Research findings: This research provides results that the information asymmetry variable had a positive effect on the emergence of budgetary slack, while the variables of strategy, incentive scheme, and the interaction of each variable have not proven to influence the emergence of budgetary slack.Theoretical contribution/Originality: The experimental findings support the agency problem that arises from information asymmetry.Practitioner/Policy implication: By using practitioners conditioned in specific budgeting situations in experimental budget studies, this research provides practical implications for budgeting problems in business practice. In particular, it provides an overview of the factors that can influence budget gaps, and in this case, a business can condition its efforts in taking advantage of conditions to create the right budget. Apart from that, this research will be able to provide an overview of what treatments can encourage motivation and increase opportunities for the tendency to create budget slack.Research limitation/Implication: This study was limited to certain company sectors, and there is the possibility of a gap in understanding and interpreting the experimental scenario.]]>
<![CDATA[The market reactions for deferred compliance of IAS 41: an analysis of the agriculture sector in Indonesia ]]>
<![CDATA[Ersa Tri Wahyuni]]>;
<![CDATA[Sandra Trianadewi Lucin]]>;
<![CDATA[Zubir Azhar]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 2: May 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i2.20019
<![CDATA[Research aims: This study aims to investigate the market reaction of post-IAS 41 implementation in Indonesia. IAS 41 Agriculture requires companies to measure biological assets at fair value, which will increase asset values and profit in the first year of its implementation. The increase in the asset values can have a favorable impact on companies’ share prices as fair value was not applied in Indonesia prior to the adoption of IAS 41. In addition, this study analyzes the disclosure compliance of IAS 41 in the interim reports during the implementation year.Design/Methodology/Approach: This study used non-parametric statistics, precisely the Wilcoxon Signed Rank Test and content analysis of financial statement disclosure about IAS 41 Agriculture. The sample of the study comprised 27 Indonesian companies with agriculture assets during the first year of the implementation of IAS 41. Research findings: The results of this study suggest no significant difference in market abnormal return after the first annual financial statements post-IAS 41 implementation were released in the first quarter of 2018. The results also indicate that at least 50% of the 27 sample companies did not use fair value for their biological assets in their first quarter of interim report during the implementation year. The use of fair value was only observed in the last quarter of 2018, as most companies made an effort to apply fair value. The late implementation of fair value in IAS 41 may explain the insignificance of the market's abnormal return reaction in the first quarter of the adoption year when the financial reports were released.Practitioner/Policy implication: The adoption of the new standard requires companies to comply with it right in the first quarter of the implementation year. The capital market regulator should impose stricter requirements for listed companies to apply the new standard starting with the first quarter of financial reports.Research limitation/Implication: The limitations of this study concern the observation period used for calculating abnormal returns, which did not conclude a ‘pure’ market reaction, and the sample of this research was limited to three industries: agriculture, basic chemicals, and consumer goods.]]>
<![CDATA[Design of government agency’s performance accountability system best practice implementation: Indonesia experience ]]>
<![CDATA[Fatih Henggar Panggalih]]>;
<![CDATA[Indra Bastian]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 2: May 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i2.20021
<![CDATA[Research aims: This study aims to explain the performance accountability system best practice implementation of Yogyakarta Special Region’s (Yogyakarta) Local Government through a valid and reliable design that is ready to be adopted and used as a role model by other local governments.Design/Methodology/Approach: This research used a qualitative method with a case study approach to reach the research objective. Research data was collected using in-depth interviews and documentation techniques.Research findings: This study succeeds in realizing a design by providing an applicable template as a recommendation tool compiled from seventeen items of success measures that are the performance accountability system’s best practices at the Yogyakarta Local Government. This study becomes more complex because it has been equipped with simulations of template filling out as well as a comparative analysis of the performance accountability system’s implementation between the Yogyakarta Local Government and the Central Java Local Government. The results of filling out the template for the Central Java Local Government revealed that 88% of the success measures have been applied, and another 12% have not.Theoretical contribution/Originality: This study provides an academic contribution as a reference related to the performance accountability system of government agencies.Practitioner/Policy implication: This study also provides a practical contribution to other local governments regarding the application of the performance accountability system’s best practices at the Yogyakarta Local Government through the design of the performance accountability system’s best practices that can be adopted and used as a role model in strengthening the performance accountability system.Research limitation/Implication: This study has limitations, namely that the researcher was unable to conduct interviews with the Ministry of Administrative and Bureaucratic Reform due to communication problems, which prevented the interview process from being carried out.]]>
<![CDATA[ESG and firm performance: The role of digitalization ]]>
<![CDATA[Rizky Eriandani]]>;
<![CDATA[Wahyu Agus Winarno]]>
<![CDATA[ Journal of Accounting and Investment Vol. 24 No. 3: September 2023 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v24i3.20044
<![CDATA[Research aims: This research aims to examine the impact of social, environmental, and governance (ESG) responsibilities on firm performance – books and markets. It also analyzes the role of digitalization in the relationship between ESG and firm performance.Design/Methodology/Approach: The population in this study was all companies listed on the Indonesian Stock Exchange in 2017-2021. The sampling technique used purposive sampling with a total sample of 347 firm-years. Testing hypotheses moderated regression analysis and subgroup analysis.Research findings: Empirical findings demonstrated that ESG responsibilities could improve company performance, both book performance and market performance. On the contrary, digitization could not boost the company's performance. Moreover, digitalization was unable to moderate the relationship between the two. However, when the samples were separated based on digitization variables, the results revealed that ESG had a positive impact on performance only in companies that adopted digital technology.Theoretical contribution/Originality: In addition to enriching literature related to agency and stakeholder theory, this research reinforces empirical evidence of the role of ESG in increasing the value of the company. The results also highlight digital adoption to support environmentally and socially responsible activities. Nevertheless, the impact of digitization on company performance has not been proven. This research contributes to the literature about ESG and digitalization that imply corporate value creation.Practitioner/Policy implication: This research contributes to corporate management to enhance social and environmental responsibility, as well as prompt adoption of digital technology.Research limitation/Implication: This research has some limitations. First, the sample was limited because not all companies in Indonesia had ESG scores in Bloomberg. Second, the measurement of digitalization on the sub-sample only used a dummy and did not differentiate the type of digitization that the company adopted.]]>
<![CDATA[Risk management committee and firm performance: The moderating effect of political connection ]]>
<![CDATA[Afrizal, Faris]]>;
<![CDATA[Oktavendi, Tri Wahyu]]>;
<![CDATA[Irawan, Dwi]]>
<![CDATA[ Journal of Accounting and Investment Vol. 26 No. 1: January 2025 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v26i1.20082
<![CDATA[Research aims: This study seeks to prove empirical evidence regarding the moderating effect of political connection to risk committee and firm performance relationship.Design/Methodology/Approach: The method used in this research uses a quantitative approach. The data used is financial companies registered on the Indonesian Stock Exchange (IDX) in the 2019 – 2021 period. The data used and meets the criteria is 129 data.Research findings: The research results show that the size of the risk management committee has an influence on firm performance. The large number of risk management committee members helps companies assess potential risks early. Political connections weaken the relationship between the risk management committee and firm performance. Theoretical contribution/ Originality: The originality of this research is based on the moderating results of political connections which provide a weakening effect compared to previous studies. Practitioner/Policy implications: For practitioners and companies, they can consider it in decision making before having a board of directors join politicsResearch limitations/Implications: Limitation of this research is research scope just in financial sector and only risk committee size used in this research.]]>
<![CDATA[Factors Causing Fraudulent Management of Village Funds During the COVID-19 Pandemic ]]>
<![CDATA[Wahyu Manuhara]]>;
<![CDATA[Mar’atussholichah Kurnia Sani]]>;
<![CDATA[Adli Zuliansyah Putra]]>;
<![CDATA[Budi Barata Kusuma Utami]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 2: May 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i2.20092
<![CDATA[Research aims: This study examines the factors that cause fraud in managing village funds during the COVID-19 pandemic, including financial pressure, supervision, rationalization, competence, apparatus position power, and transparency.Design/Methodology/Approach: Four hundred and five respondents who were village officials in four provinces were involved based on the convenience sampling method. Respondents were given seven days to fill out the questionnaire, and then the data were analyzed using SEM-PLS.Research findings: Several factors can lead to fraudulent management of village funds during the COVID-19 pandemic: financial pressure, rationalization, and position power. Meanwhile, transparency significantly negatively affects the fraudulent management of village funds during the COVID-19 pandemic.Theoretical contribution/Originality: The research contributes to developing the fraud pentagon theory by presenting the arrogance dimension proxied using the power of position in the context of village government during the COVID-19 pandemic.Practitioner/Policy implication: This research is expected to be an input for the village government in developing mechanisms that can prevent fraud in managing village funds using the dimensions in the fraud pentagon theory.Research limitation/Implication: The scope of the research used is relatively small, only covering village governments from nine districts in four provinces in Indonesia. Thus, caution is needed in generalizing the results. Therefore, a wider population is needed.]]>
<![CDATA[The effects of corporate social responsibility disclosure on firm performance with market share mediation ]]>
<![CDATA[Lutfirrahman AM]]>;
<![CDATA[Erwin Saraswati]]>;
<![CDATA[Imam Subekti]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 2: May 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i2.20111
<![CDATA[Research aims: This research aims to empirically examine and analyze the effects of CSR (Corporate Social Responsibility) disclosure on firm performance with market share mediation.Design/Methodology/Approach: The samples covered 38 firms enlisted in the Indonesia Stock Exchange with an observation period of five years. This research used multiple linear regression with the OLS (Ordinary Least Square) method to test the hypotheses.Research findings: The findings unveiled that the CSR disclosure partially improved the firm’s performance and market share.Theoretical contribution/Originality: Based on empirical evidence, the theories of stakeholder and legitimacy suggest that CSR disclosure improves firm performance, and the theories of legitimacy and market-based view advocate that CSR disclosure using market share can improve performance.Practitioner/Policy implication: These research results can be used as references for firms to implement better practices of CSR.Research limitation/Implication: This research is bound to subjectivity due to content analysis, in which the researchers had different understandings and perspectives on the research objects during the disclosure assessment.]]>
<![CDATA[Determinants of state property management: Moderating role of internal control system ]]>
<![CDATA[Christian Dewabrata]]>;
<![CDATA[Amrie Firmansyah]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 1: January 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i1.20120
<![CDATA[Research aims: This study examines the effect of employee competence, organizational commitment, and information systems on the quality of state property management with the Government Internal Control System (GICS) as a moderating variable at the Ministry of Law and Human Rights of the Republic of Indonesia.Design/Methodology/Approach: This research used data from 205 State Property Operators at Indonesia's Ministry of Law and Human Rights. Data analysis in this study employed the Structural Equation Modeling (SEM) method, in which hypothesis testing was carried out using the bootstrapping analysis.Research findings: The results of this study indicate that while employee competence and information systems positively affected the quality of state property management, organizational commitment did not affect the quality of state property management. Furthermore, GICS could weaken the positive effect of employee competence on the quality of state property management, and GICS could strengthen the positive effect of information systems on the quality of state property management. However, GICS failed to moderate the relationship between organizational commitment and the quality of state property management.Theoretical contribution/Originality: This research provides a conceptual framework that guides other studies in Indonesian state property management, which has rarely been examined in previous studies. Practitioner/Policy implication: This research contributes to the preparation of better work programs, procedures, and supervision within the Ministry of Law and Human Rights to create state property management that is legal, administrative, and physically orderly.]]>
<![CDATA[Implementation of the Altman z-score model in predicting bankruptcy at PT. Garuda Indonesia, Tbk. ]]>
<![CDATA[Eva Sriwiyanti]]>;
<![CDATA[Djuli Sjafei Purba]]>;
<![CDATA[Dendi Wahyudi]]>;
<![CDATA[Wico Jontarudi Tarigan]]>;
<![CDATA[Resna Napitu]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 1: January 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i1.20223
<![CDATA[Research aims: This study aims to forecast Garuda Indonesia’s bankruptcy rate using the Altman Z-Score model analysis tool based on financial statement data for the 2012-2021 period.Design/Methodology/Approach: A quantitative description method was used, with data sources from the Garuda Indonesia website.Research findings: Based on the data analysis, Garuda Indonesia was in a "gray area" or financial difficulty in the overall observation year.Theoretical contribution/Originality: Since 2020, Garuda Indonesia has implemented a statement of financial accounting standards (PSAK 73) on lease regulations. According to Institute of Indonesia Chartered Accountants (IAI, 2022), the objective of PSAK 73 on leases is to determine the principles for recognizing, measuring, presenting, and disclosing leases and determine whether the lessee and lessor provide relevant data with a method that presents transactions appropriately. PSAK 73 on leases categorizes assets from finance leases designated as right-of-use assets as part of property, plant, and equipment and lease liabilities as part of long-term liabilities that appear in the statement of financial position. Following the Institute of Indonesia Chartered Accountants (2022), right-of-use assets describe the tenant's right to use assets granted by the lessor to the lessee during the lease term.Research limitation/Implication: This research has limitations since the reference sources only came from research journals conducted at manufacturing and service companies in Indonesia and researched by Indonesian researchers. The data studied was only for the last 10 years (2012-2021) and during that time the 2019 Covid pandemic occurred, resulting in a lockdown which caused the number of domestic and international flights to Indonesia to decrease drastically.]]>
