JASF: Journal of Accounting and Strategic Finance

Trading Volume Activity Surrounding Earnings Releases: Evidence from Indonesia

Rexon Nainggolan — 2023-12-30

The study investigates trading volume activities post-earnings announcement and their impact on abnormal returns. The objectives are to examine the changes in trading volume activities in response to earnings release and to measure the impact of the changes in trading volume activities on the cumulative average abnormal returns post-earning announcement. The study analyzes the trading volume response around the earnings announcement by comparing the ratio of trading volume activity (TVA) post-earnings announcements with the TVA during the estimation window. It reports an apparent increase in trading volume activity on day +2, indicating a slightly delayed reaction to the event's information. However, the findings indicate a significant relationship between cumulative abnormal returns and trading volume during the post-earning announcement abnormal return in a short period, following the semi-strong form of market efficiency. The study focuses on year-end announcements and does not evaluate interim announcements. The market response to interim data may vary and requires validation through an additional investigation. This implies that market traders should implement an effective trading strategy before the entire market reacts to the earnings announcement. Furthermore, the research findings underscore opportunities for policymakers to improve market infrastructure, hence augmenting the market's efficacy in conveying information pertaining to earnings releases.

Using Electronic Money in Financial Transactions: Integrating the Second UTAUT Model

Yudhi Prasetiyo — 2023-12-30

The use of digital or electronic money has become a trend in people's lives nowadays. Digital money payment systems make it easy to access transactions and even record transactions directly. The acceptance of technology, such as electronic money, in financial transactions was explored by integrating the second Unified Theory of Acceptance and Use of Technology (UTAUT) model. This research wants to know the behavior of using digital or electronic money in people's daily lives in carrying out financial transactions. This research provides an overview of exploratory observations using a quantitative approach. The primary data used to answer the phenomenon is data from a questionnaire. The target sample is a random population with a respondent age range of 17-55 years. IBM SPSS Statistics 25 and structural equation modeling (SEM) are the analytical tools used to identify and validate the elements and variables associated with the desire to conduct financial transactions using electronic or digital currency. There were 381 respondents from several large cities such as Medan, Jakarta, Bandung, Semarang, and Surabaya. The results of research on independent variables on behavior intention show there are four factors, of which there is a significant positive influence, namely performance expectations, social factors, facilitating conditions, and hedonic motivation; one variable has no effect, namely effort expectations. Then the price value and habit variables influence behavioral usage. Moreover, results from the intention variable also significantly impact behavioral usage.

Evaluating Financial Health and Sustainability of Post-Merger Port Operations in Indonesia: Liquidity and Profitability Insights

Liwaul Liwaul — 2023-12-30

This study aims to analyze the financial health of PT Pelabuhan Indonesia (PT Pelindo) after the merger with a liquidity and profitability assessment approach for the sake of the company's survival in global economic turmoil and increased digital services for consumers who use transportation services. The method used is secondary data in the form of audited financial statements (2021-2023). This research uses a descriptive quantitative approach by analyzing the company's liquidity, profitability, and efficiency. The analysis technique uses liquidity financial ratio analysis, including current, quick, and cash ratios. In contrast, profitability ratios include gross profit margin (GPM), net profit margin (NPM), return on assets (ROA), and return on equity (ROE) to describe the company's financial health condition. The results and discussion of the study indicate that the Indonesian port company (PT Pelindo), after the merger from 2021 to 2023 suggests that it needs to implement a liquidity strategy through financial restructuring with a focus on managing current assets and current liabilities, increasing cash efficiency, accelerating collections, and reviewing capital structure to ensure liquidity remains adequate and reduce liquidity risk, especially with the downward trend in cash ratio which can threaten the company's stability in the future. Improving the profitability of Indonesian port companies should focus on operational cost efficiency, including digitalization, process and preventive maintenance, and collaborating with strategic partners to increase revenue, diversify port services, and optimize asset usage to maintain long-term financial stability and minimize negative impacts and external fluctuations.

Harmony of Bank Structure Ownership through Tri Hita Karana Cultural Concept

Nengah Sukendri — 2023-12-30

Tri Hita Karana is a philosophy of balance originating from Bali. From a banking perspective, Parahyangan can be interpreted as ethical and responsible governance. Pawongan reflects the balance of interests between various interested parties, from shareholders to management, employees, and customers. Palemahan is the bank's commitment to supporting sustainable and environmentally friendly economic development. This study aims to explore the harmonization of bank ownership through the cultural principles of Tri Hita Karana. The method in this article is a descriptive qualitative approach with a literature review that explores local wisdom theory specifically. Implementing Tri Hita Karana principles can create a more harmonious, transparent, and sustainable bank ownership structure. This can be achieved through strong governance policies, balanced ownership distribution, and commitment to social and environmental responsibility. Harmonizing the bank ownership structure through Tri Hita Karana can improve bank performance, strengthen public trust, and comprehensively contribute to the financial system's stability. Through the Tri Hita Karana Concept, the Bank Ownership Structure is a financial matter and a vehicle to realize harmonization between religious values and spirituality, common welfare, and environmental sustainability. The harmony model of the Tri Hita Karana-based bank ownership structure illustrates that by integrating Tri Hita Karana, Corporate Social Responsibility, and Triple Bottom Line, organizations can balance spiritual, social, environmental, and economic aspects and ensure long-term sustainability.

Redefining Indonesia's MSMEs Landscape: Unleashing Digital Virality for Sustainable Growth

Sutama Wisnu Dyatmika — 2023-12-30

This study investigates the effectiveness of digital marketing strategies, particularly viral content, in enhancing the visibility and sustainability of micro, small, and medium enterprises (MSMEs) in Indonesia. By redefining the traditional MSME landscape, this research highlights the shift from conventional marketing approaches to digital virality strategies, reshaping how MSMEs engage with consumers and build sustainable brand identities. Adopting a descriptive qualitative approach, data was collected through a literature review and interviews with MSME stakeholders to analyze the digital marketing strategies used and their impacts. The findings reveal that viral content significantly boosts MSMEs' visibility by capturing consumer attention, fostering online engagement, and strengthening brand image. This study offers valuable insights for MSME owners and local governments and supports institutions in implementing effective digital strategies. Practical recommendations include developing skills in content creation, collaborating with local influencers, and utilizing social media platforms to maximize outreach. These findings underscore the potential of digital virality as a sustainable marketing tool while also recognizing limitations such as resource constraints. Future research may further explore adaptive strategies suited to different MSME sectors.

Agency Control on Capital Market Efficiency: Evidence from Earnings Announcement

Adat Muli Peranginangin — 2023-12-30

This study investigates how agency control influences the market's response to new information disclosed during earnings announcements. The aim is to investigate the potential connection between agency control and market efficiency. The research employs an event study as the principal metric and ordinary least squares to evaluate the relationship between agency control and the firms' cumulative earnings announcement returns. This study analyzes the effect of earnings announcements on abnormal returns, utilizing 93,244 daily data from all listed firms between July 2018 and December 2019, specifically during the reporting of year-end financial statements as of December 31, 2018. The study reveals that firms under concentrated ownership and family control do not conform to the semi-strong form of market efficiency, as evidenced by the absence of significant abnormal returns during the event. Insignificant abnormal returns following earnings announcements indicate that the market has assimilated the firms' financial information before the announcement date, as these stakeholders possess privileged access to the firms' information well in advance of the announcements. As a result, the market no longer receives new information from the event or encounters any significant unforeseen news. Consequently, the study determines that agency control may affect the market efficiency of a capital market. The study advises policymakers to examine this issue and adopt measures to alleviate information asymmetry between controlling and non-controlling shareholders.

Antecedents of Audit Report Lag with Audit Quality as a Moderator

Vinola Herawaty — 2023-12-30

This study aims to test and determine the effect of key audit matters, audit tenure, financial distress, operational complexity, and gender chief executive officer (CEO) on audit report lag with audit quality as a moderator. This study uses secondary data collected from the Indonesia Stock Exchange (IDX), the Ministry of Finance Information and Documentation Management Officer (PPID Kemenkeu), and the official website of each company. This quantitative research uses multiple linear regression analysis with the research population: consumer non-cyclical companies with food and beverages and pharmaceutical subsectors in 2019-2022 that publish annual and audited financial reports. The research population was 35 companies, and it was found that 31 companies met the research criteria in a 4-year period, with a total of 124 research samples and 12 data affected by outliers. Therefore, the total research sample is 112 companies. The results of hypothesis testing in this study indicate that financial distress and company operational complexity significantly positively affect audit report lag. While key audit matters, audit tenure, gender CEO, and audit quality do not affect audit report lag. Also, it has been proven that audit quality could weaken the relationship between financial distress and audit report lag. However, audit quality cannot moderate between key audit matters, audit tenure, operational complexity, and chief executive officer gender with audit report lag. This study implies that investors may take into consideration audit report lag before deciding to invest in a company.

Government Strategy in Addressing the Impact of Economic Growth and Energy Consumption on Environmental Degradation

Ririt Iriani Sri Setiawati — 2024-11-19

The report discusses the serious environmental issues Indonesia's growing economy and rising energy use have brought about. In addition to examining government initiatives to lessen these impacts through sustainable development regulations, the goals include evaluating the connection between economic indicators and environmental results. The research employs a mixed-approaches strategy, combining quantitative and qualitative methods. The quantitative analysis, which employs time series data from 1991 to 2020, focuses on carbon dioxide emissions per capita as the dependent variable and GDP and energy consumption per capita as independent variables. Multiple linear regression using Ordinary Least Squares (OLS) evaluates these correlations. A thorough grasp of the relationship between economic growth, energy consumption, and environmental deterioration is provided by qualitative analysis, which entails a review of the literature to investigate government initiatives addressing environmental concerns. The study results show a substantial positive correlation between Indonesia's carbon dioxide (CO₂) emissions, energy consumption, and economic development. The analysis indicates that the ongoing economic activities driven by fossil fuel consumption will exacerbate environmental degradation without significant intervention, necessitating effective government policies for sustainable development and emission reduction. The study concludes that economic growth and energy consumption significantly contribute to Indonesia's environmental degradation, particularly through increased carbon dioxide (CO₂) emissions. It recommends that the government strengthen policies promoting sustainable energy use, increase investment in renewable energy technologies, and implement stricter regulations on industrial emissions. Additionally, fostering public awareness and education on environmental sustainability is crucial for effective long-term solutions.