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[Do investing in information technology and intellectual capital improve firm value in the financial technology era? ]]>
<![CDATA[Ariny Maghfiroh]]>;
<![CDATA[Erwin Saraswati]]>;
<![CDATA[Endang Mardiati]]>
<![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.v25i2.21707
<![CDATA[Research aims: This research aims to prove the impact of information technology investments and intellectual capital on firm value (Tobin’s Q) in the financial technology era.Design/Methodology/Approach: This study’s population was banks listed on the Indonesian Stock Exchange (ISE) during 2017–2022. Purposive sampling was utilized to choose a sample of 46 banks, resulting in a total of 112 observations during six years. This research employed GMM regression for empirical analysis, considering endogeneity. Research findings: The study revealed that while investments in information technology exerted a favorable influence on firm value, intellectual capital had a beneficial impact on firm value. Human Capital Efficiency (HCE) and Capital Employed Efficiency (CEE) positively impacted firm value. However, the variables Structural Capital Efficiency (SCE) and Relational Capital Efficiency (RCE) did not have any effect on firm value. The variables being controlled for in this study comprised corporate level, industry level, and banking type. The financial success of a corporation could be influenced by the corporate level, determined by the organization's size. The influence of industrial level and bank type on company firm value was limited due to the dynamic nature of market conditions and the intensifying competition within the banking system.Theoretical contribution/ Originality: This research contributes theoretically to the field of signaling theory by presenting an advantageous analytical framework to examine the effects of IT investments in the dynamic financial sector.Practitioner/Policy implication: This research contributes to investors in determining investment decisions and the council of commissioners to enhance supervision of IT investments, encourage banking to innovate in leveraging information technology, and introduce new products that can meet customer needs.Research limitation/Implication: The research focuses exclusively on banks listed on ISE and exclusively employs the MVAIC methodology for research purposes. Since this research was limited to the financial statements presented by the company, so some necessary data were not available, requiring an interview or spreading the questionnaire to the sample used. This research was also limited to banking in Indonesia, so the samples used were also limited, and there needs to be a comparison.]]>
<![CDATA[Reducing budgetary slack through government internal control system: insights from structural equation modelling and artificial neural network approach ]]>
<![CDATA[Fara Fitriyani]]>;
<![CDATA[Dwi Ratmono]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 3: September 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i3.21810
<![CDATA[Research aims: This study investigates the important role of Government Internal Control System (GICS) elements in reducing budgetary slack in Public Higher Education Institutions (HEIs).Design/Methodology/Approach: Partial Least Squares Structural Equation Modelling (PLS-SEM) and Artificial Neural Network (ANN) were used to test the significance and strength of the relationship between GICS and budgetary slack. Survey data was collected from managers of Public HEIs in Indonesia. Statistical analysis was conducted using WarpPLS 8.0 for PLS-SEM, while ANN was implemented using SPSS.Research findings: Government Internal Control Systems are effective in reducing budgetary slack. However, the relationship between elements of ICS and budgetary slack is not always linear and can be influenced by interactions between elements.Theoretical contribution/Originality: This study contributes to the literature on management accounting by providing insights into a more complex process that explains the vital role of effective implementation of GICS in Public HEIs in reducing budgetary slack in the budgeting process.Practitioner/Policy implication: This study demonstrates that the Government's Internal Control System effectively reduces budgetary slack in Higher Education Institutions. Therefore, practitioners should strengthen GICS implementation, particularly focusing on the control of the environment and recognizing the complex interplay between GICS elements. Furthermore, policymakers should prioritize strengthening regulations and oversight, encouraging innovation, and integrating GICS with other systems to enhance accountability and resource allocation.Research limitation/Implication: Collecting data through questionnaires may lead to common method bias. This can be mitigated by the implementation of a longitudinal design and the collection of data at a number of points in time.]]>
<![CDATA[The impact of audit committee effectiveness on the relationship between company performance and readability of disclosures: a laboratory experiment ]]>
<![CDATA[Agus Munandar]]>;
<![CDATA[Kadlina Kadlina]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 3: September 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i3.21884
<![CDATA[Research aims: This paper investigated the impact of audit committees on the relationship between company performance and disclosure readiness.Design/Methodology/Approach: Some research suggested that poorly performing companies often present their performance positively but use complex, less accessible language. This can be detrimental to market participants. The study explored the moderating role of audit committees in this relationship using a laboratory experiment. Participants, including employed students, were placed in scenarios with varying company performance and audit committee effectiveness and tasked with simulating financial disclosures.Research findings: The findings revealed that effective audit committees enhance disclosure readability and significantly moderate the relationship between company performance and disclosure readability. High-performing companies tend to use simpler language, while poorly performing companies often employ complex language to obscure their performance.Theoretical contribution/Originality: This research contributes to the literature by highlighting the role of audit committee effectiveness in ensuring transparent and clear financial disclosures. It extends previous findings by emphasizing different disclosure strategies based on performance and the critical role of audit committees in curbing obfuscation by underperforming firms.Practitioner/Policy implication: The results underscored the importance of audit committee effectiveness in improving corporate governance and maintaining investor trust. Policymakers should promote audit committee independence and expertise to ensure higher standards of disclosureResearch limitation/Implication: The study's use of employed students limits generalizability to professional accountants. Nonetheless, it provides valuable insights into the influence of audit committees on disclosure readability, offering a basis for future research.]]>
<![CDATA[Carbon emissions disclosure: an overview of research in Indonesia ]]>
<![CDATA[Afifah Oki Nilasakti]]>;
<![CDATA[Y Anni Aryani]]>;
<![CDATA[Doddy Setiawan]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 3: September 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i3.21913
<![CDATA[Research aims: This research aims to find out the research’s development of carbon emissions disclosure topic in the Indonesia context.Design/Methodology/Approach: The method employed was charting the fields by Hesford et al. (2006) on some articles indexed by Sinta 2 and 3, as well as Scopus with research based in Indonesia. The articles were selected by criteria, obtaining 60 articles for further analysis.Research findings: The literature study’s results showcase that the carbon emission disclosure research trend in Indonesia has increased in the last five years. This trend was reviewed deeply through further discussions in terms of its factors influencing and consequences, theories and samples used. The major factors influencing carbon emission disclosure are profitability, firm size, and leverage. Moreover, carbon emission disclosure also affects firm value. Theoretical contribution/Originality: This study provides knowledge regarding existing carbon emission disclosures and opportunities for further research agenda, especially on empirical research.]]>
<![CDATA[Moderation testing of dysfunctional audit behavior: internal auditor factors on audit quality ]]>
<![CDATA[Yulianti Yulianti]]>;
<![CDATA[Saifudin Saifudin]]>;
<![CDATA[Ratna Novita Sari]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 3: September 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i3.21944
<![CDATA[Research aims: The objective of this study is to examine the impact of auditor ethics, auditor professionalism, and dysfunctional audit behavior on the quality of audits, considering dysfunctional audit behavior as a potential moderating factor.Design/Methodology/Approach: The research utilized a sample of auditors from public accounting firms across Java, employing convenience sampling through smartPLS 3 software, with a total of 256 auditors participating. Research findings: The findings revealed that both auditor ethics and professionalism positively contribute to audit quality. In contrast, dysfunctional audit behavior shows no significant effect on audit quality, nor does it moderate the beneficial effects of auditor ethics and professionalism on audit quality. These results underscore the significance of auditor ethics and professionalism in enhancing the quality of financial report audits.Theoretical contribution/ Originality: The research outlined herein seeks to explore the impact of auditor ethics and professionalism on audit quality, considering the potential moderating effect of dysfunctional audit behavior.Practitioner/Policy implication: The study's implications are straightforward: Auditor ethics and professionalism are vital for the production of high-quality financial statement audits.Research limitation/Implication: While dysfunctional audit behavior appears to have no significant effect, it remains crucial for public accounting firms to monitor such behaviors. As a result, there is a need for public accounting firms to prioritize ongoing professional education to uphold and reinforce the standards of ethics and professionalism among auditors.]]>
<![CDATA[Corporate governance and cost of equity capital: the mediation role of accounting conservatism ]]>
<![CDATA[Jacobus Widiatmoko]]>;
<![CDATA[Maria Goretti Kentris Indarti]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 3: September 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i3.21977
<![CDATA[Research aims: This study examines the effect of corporate governance as proxied by institutional and managerial ownership and profitability on the cost of equity capital, both directly and indirectly, through accounting conservatism as a mediating variable.Design/Methodology/Approach: The population of this study was manufacturing companies listed on the Indonesia Stock Exchange in 2020–2022. The sample selection was carried out using the purposive sampling method, resulting in 230 data points and then tested using multiple linear regression.Research findings: Institutional ownership and profitability were revealed to have a positive influence on accounting conservatism, while managerial ownership had no influence. Profitability and accounting conservatism exerted a negative effect on the cost of equity capital. However, institutional ownership generated a positive effect, but managerial ownership did not affect the cost of equity capital. Further test results uncovered that the impact of institutional ownership and profitability on the cost of equity capital was mediated by accounting conservatism.Theoretical contribution/Originality: The findings of this research enrich previous research regarding the economic consequences of corporate governance, profitability, and accounting conservatism in equity markets in developing countries, especially Indonesia.Practitioner/Policy implication: The results of this research can be used as consideration for investors in developing country capital markets when making investment decisions.Research limitation/Implication: This research has limitations, including the relatively low adjusted R2 value. Proxies for corporate governance from ownership and board structure should be included in future studies.]]>
<![CDATA[A literature review on work stress and audit quality reduction behavior: trend and future challenges ]]>
<![CDATA[Febrina Nafasati Prihantini]]>;
<![CDATA[Indira Januarti]]>;
<![CDATA[Darsono Darsono]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 3: September 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i3.22055
<![CDATA[Research aims: This research aims to identify research development on work stress and its impact on audit quality reduction behavior.Design/Methodology/Approach: This qualitative study used the systematics of the PRISMA protocol review to analyze relevant articles.Research findings: Some research has focused more on the causes of job stress and audit quality reduction behavior. However, recent research has begun to harness the positive potential of auditors to reduce work stress and audit quality reduction behavior.Theoretical contribution/Originality: This study contributes to the literature review on work stress and audit quality reduction behavior.Practitioner/Policy implication: This review is expected to help organizations understand developments and findings related to work stress and audit quality reduction behavior, as well as support the development of effective stress management programs in the auditor's work environment.Research limitation/Implication: This literature review focuses only on the impact of job stress on audit quality reduction behavior. Nevertheless, it is still possible that work stress can also impact other aspects beyond audit quality reduction behavior, such as auditor performance and auditor judgment.]]>
<![CDATA[Tourism seasonality and tax compliance of hotel and accommodation sector in Magelang Regency, Indonesia: Mediating role of intention to comply ]]>
<![CDATA[Suci Nasehati Sunaningsih]]>;
<![CDATA[Agustina Prativi Nugraheni]]>;
<![CDATA[Alex Johanes Simamora]]>;
<![CDATA[Budi Hartono]]>;
<![CDATA[Mumpuni Wahyudiarti Sitoresmi]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 3: September 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i3.22094
<![CDATA[Research aims: This research examined the effect of hotel and accommodation performance during peak seasons on tax compliance, especially tourism seasonality-based financial performance, intention to comply, and tax compliance behavior. This research also examined the effect of tourism seasonality-based financial performance on tax compliance behavior through intention to comply.Design/Methodology/Approach: The research sample includes 48 owners and top managers of hotels and accommodations in Magelang Regency. Questionaries measure the variable. Data analysis used structural equation modeling, which included the inner model, outer model, and path analysis.Research findings: Based on data analysis, tourism seasonality affected tax compliance in the hotel and accommodation sector. The peak season of tourism brought more revenues and cash, so hotels and accommodations could pay the tax and comply with tax regulations. Intention to comply mediated the effect of tourism seasonality-based financial performance on tax compliance behavior.Theoretical contribution/Originality: This research provided new evidence of peak season on tax compliance. This research also extended the ability to pay theory of taxation based on tourism seasonality. This research also evaluated regulations of Local Regulation of Magelang Regency No. 13 2010 and Regulation of Head of Magelang Regency No. 44 2012 in tourism seasonality since no regulation regulates seasonal tax system based on tourism seasonality for hotels and accommodation.]]>
<![CDATA[Does corporate social responsibility moderate the effect of earnings performance and institutional ownership on corporate tax avoidance? ]]>
<![CDATA[Suripto Suripto]]>;
<![CDATA[Dani Rahman Hakim]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 3: September 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i3.22124
<![CDATA[Research aims: This study examines the role of corporate social responsibility in moderating the effect of earnings performance and institutional ownership on corporate tax avoidance of companies in the Investors 33 index between the 2018-2022 period.Design/Methodology/Approach: This study developed and estimated two regression models with panel data of 165 observations. These models were estimated by the random effect estimator.Research findings: This study found that corporate social responsibility strengthens the negative effect of earning performance on corporate tax avoidance. Companies with high earnings performance and those more socially responsible are likely more compliant in paying taxes. It confirms the corporate culture theory in Indonesian companies with relatively high share performance. On the other hand, this study also uncovered that corporate social responsibility increases the positive effect of institutional ownership on corporate tax avoidance. The large percentage of institutional ownership balanced by more corporate social responsibility activities could trigger companies to engage in more significant tax avoidance. These findings indicate that institutional investors of 33 companies in the investors index are more oriented on returns than company reputation.Theoretical contribution/Originality: As far as known, this study is the first to explain the moderating role of corporate social responsibility on the effect of earnings performance and institutional ownership on corporate tax avoidance in the context of companies with high share performance.Practitioner/Policy implication: This study urges the government to supervise the corporate social responsibility activities issued by companies to ensure that they are not generated as a corporate tax avoidance motive .Research limitation/Implication: This study did not check for possible bias caused by outlier data. This study also did not control how institutional investors are represented on the board of commissioners, so the effect of IO tends to be difficult to explain based on this perspective. ]]>
<![CDATA[Green investment and firm value: Does corporate governance matter? ]]>
<![CDATA[Estu Widarwati]]>;
<![CDATA[Nabila Nur Rohmah]]>;
<![CDATA[E Wityasminingsih]]>;
<![CDATA[Nunik Nurmalasari]]>;
<![CDATA[Devy Widya Apriandi]]>;
<![CDATA[Mutqi Sopiawadi]]>
<![CDATA[ Journal of Accounting and Investment Vol. 25 No. 3: September 2024 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta, Indonesia ]]>
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DOI: 10.18196/jai.v25i3.22159
<![CDATA[Research aims: This study examines the effect of green investment on firm value with corporate governance moderation.Design/Methodology/Approach: Green investment is proxied by the green-firm investment ratio, Tobin's Q measures firm value, and corporate governance is proxied by board size. The sample is 34 companies receiving PROPER awards listed on the IDX for the 2017-2021 period from the primary material, consumer non-cyclical, and consumer cyclical sectors. The data were analyzed using panel data regression, T-test, and moderate regression analysis tests.Research findings: The results showed that green investment positively affects firm value. Meanwhile, this study has not found strong evidence about the moderation role of board size in the effect of green investment and firm value.Theoretical contribution/Originality: This research strengthened previous empirical evidence that companies' implementation of green investment activities will impact increasing firm value and board size as part of effective governance needs to be paid attention.Practitioner/Policy implication: This research has implications for companies to include green investment as an important investment decision because it is proven to be an advantage for companies to increase their valueResearch limitation/Implication: This research's determining factor for firm value is only green investment, and the corporate governance proxy only uses board size. Therefore, it is hoped that future research can explore other new models that consider industry characteristics, economic conditions in the research period, and other measures of the variables studied.]]>
