JASF: Journal of Accounting and Strategic Finance

Determinant of Earnings Management: Financial Distress, Tax Planning, Audit Quality, and Public Accountant Firm Size

Ajeng Luthfiyatul Farida — 2023-06-30

Profit can show the information to the public in making investment decisions. The motivation of management to practice earnings management is to attract external parties, one of which is investors by increasing profits (income creating) and tax motivation by decreasing profits (income decreasing). This study aims to determine the effect of financial distress, tax planning, audit quality, and public accountant firm size on earnings management in mining sector companies listed on the Indonesia Stock Exchange (IDX) for the 2016-2020 period simultaneously or partially. The sample used was purposive sampling from 29 samples with 145 observational data. The method used panel data regression analysis. The results showed that financial distress positively affects earnings management, meaning that when a company is in a financial distress condition, it tends to practice earnings management to make better financial statements. While tax planning and audit quality do not affect earnings management, the size of public accountant firms has a negative effect on earnings management.

Factors Affecting Students’ Use of Mobile Banking: An Extension of Technology Acceptance Model

Endah Susilowati — 2023-06-30

Current developments in technology and communications have created various types and new business opportunities, so it is very important for companies to carefully understand customer needs, discover people's desires, and be able to provide products or services to customers that meet people's demands or exceed people's expectations. This study aims to test and prove the factors that influence the use of mobile banking, which consists of the quality of information systems, trust, capability of individual operations, user attitudes, and intention to use. This study assesses the technology acceptance model (TAM) theory to develop variable relationships. The study population was active students of a university in East Java, and the sample was taken by purposive sampling with a total sample of 91 students. This research uses a quantitative approach and questionnaire data collection methods. Data analysis techniques using multiple linear analysis with SPSS 23 software. The results of this study indicate that trust, individual capability to operate, and intention to use affect mobile banking use. In contrast, the quality of information systems and user attitudes do not affect the use of mobile banking. This study suggests that mobile banking providers must maintain consumers’ trust, capability to operate, and attitude so that the use of mobile banking is increased.

The Role of Corporate Social Responsibility Decoupling on Corporate Tax Avoidance

Imam Nazarudin Latif — 2023-06-30

Tax avoidance is an issue that continues to generate debate and controversy for its ethics in the business world. Corporate Social Responsibility (CSR) has emerged as a significant factor in bridging the gap between government needs for tax revenues and corporate goals for economic growth. However, based on neo-institutional theory, companies may only show CSR symbolically without taking appropriate concrete actions, creating a gap between communication and actions related to CSR. This action, called CSR decoupling, can create the risk of greenwashing, namely the practice of deceiving the public about a company's environmental or social performance. Therefore, this study aims to investigate the relationship between CSR decoupling and tax avoidance. This exploratory and quantitative research used companies in the food and beverage industry for 2019-2021. Using the purposive sampling method, out of 23 from 72 companies selected, and 69 data were processed with SPSS. The results show that CSR decoupling positively influences tax avoidance, even after the robustness test. This result implies that companies that carry out CSR decoupling tend not to comply with tax regulations formally, although not substantially. The result also depends on the size of the audit committee, the size of the company, and the return on assets. These findings might be useful for policymakers, shareholders, management and board members, audit committees, and investors.

Tax Incentive-Based Economic Policy, Modern Tax Administration System, and Taxpayer Compliance of Micro, Small, and Medium Enterprises

Supeni Anggraeni Mapuasari — 2023-06-30

This study examines the effect of tax incentive-based economic policies and modern tax administration systems through e-registration, e-filing, and e-billing on Micro, Small, and Medium Enterprises (MSMEs) taxpayer compliance in Palu City during the Pandemic Period. This study analyzed primary data from questionnaires distributed to 100 MSME taxpayers in Palu City. By using the theory of planned behavior (TPB) in taxpayer compliance research, researchers can understand in more depth why taxpayers do or do not comply, as well as identify the factors that influence their decisions. Testing the research variables was carried out using the Partial Least Square (PLS) method. The results showed that Tax Incentive-Based Economic Policies have a positive effect on MSMEs' taxpayer compliance. Meanwhile, implementing modern tax administration systems, such as e-registration, e-filing, and e-billing, did not affect MSMEs' taxpayer compliance. This result sheds light on the efficiency of regulation and tax systems to encourage tax compliance. Governments and agencies need to ensure that efforts are made to increase awareness, access, and ease of use of these systems, as well as understanding and overcoming barriers that may arise in practice. These can help design more effective tax policies and educational efforts to increase taxpayer compliance.

Environmental, Social, Governance Report, and Materiality Analysis Effect on Financial and Market Performance

Andi Indrawati — 2023-06-30

Environmental, Social, and Governance (ESG) Reports and materiality analysis are increasingly becoming a primary focus in socially and environmentally responsible corporate practices. These two elements play an important role in building financial and market performance. This research investigates the influence of ESG Reports and materiality analysis on company financial and market performance. This research method uses secondary data from a number of companies in various industries listed in IDX during the 2017-2021 period. Based on the purposive sampling technique, the sample was 23 companies, so the data processed was 115 data. Regression analysis and other statistical techniques measure the relationship between ESG variables and a company's financial results. The research results prove that elements of social and governance ESG have a negative effect on financial performance. Materiality analysis has a positive effect on market performance. These findings provide a strong basis for companies to pay more attention to ESG, especially on the social and governance factors and materiality analysis as strategic tools in risk management and improving financial and market performance. In addition, this research also provides valuable information for investors and other stakeholders increasingly paying attention to ESG aspects in their investment decision-making. Some suggestions were made for future research on ESG reports and sustainability.

Reliability of Audit Evidence during Pandemic Restrictions

Fidiana Fidiana — 2023-06-30

The latest technology-based audits have quickly overcome traditional barriers for auditors to access data, client resistance, and client readiness. However, the auditor’s capacity to gather adequate and pertinent audit evidence may be hampered by limitations on travel and access as well as a shortage of human resources as a result of health issues. This research aims to analyze and discuss how auditors view and consider audit evidence throughout the pandemic. This qualitative method involves the perceptions of Indonesian Public Accountants (CPA Indonesia), especially in the Indonesian context. The informants were chosen by their involvement in their work as the partners or senior auditors of an audit firm. This research finds that during the pandemic, by fulfilling legal statutory audits and rendering a clean audit opinion even in the absence of compelling audit evidence, auditors can preserve their credibility and stability. Second, in the event of extraordinary circumstances, regulators ought to create audit guidelines and standards. Third, in order to perform audit procedures digitally and remotely, audit firms need to make investments in information technology. The implication is that the crusader, the safe pair of hands, the accommodator, and the truster are four different types of audit engagement partners discovered as a secondary result of this research.

Whistleblowing System: Do seniors blow less?

Rida Perwita Sari — 2023-06-30

To fortify itself against any harmful behavior, an organization has meticulously designed a whistleblowing policy system. Despite the availability of this channel, not all members actively engage in using it to contribute to the overall health of the organization. To address this issue effectively, organizations need to conduct in-depth analyses to identify the specific barriers within their context. Our study responds to such topical issues by observing the role of seniority in motivating organizational members to actively embrace their roles as whistle-blowers. The research specifically examines the role of maturity in influencing individuals to step forward and report wrongdoing within the organization. In doing so, we employed the moderated regressions as a methodological approach, involving 396 employees from eight East Java offices of the Directorate General of Taxation. The study's findings provide empirical support for the notion that positive attitudes toward the use of the whistleblowing system significantly increase members' intention to report instances of wrongdoing. However, the research fails to corroborate the hypothesis that age plays a significant role in influencing people’s intention to be whistle-blowers. Considering these results, the implications for organizational governance and policymaking are discussed.

Questioning the Accountability of Village Officials in Managing Village Funds

Nuuridha Matiin — 2023-06-30

This study aims to apply stewardship theory to the analysis of village officials' roles in the planning, execution, administration, reporting, and accountability of village money. Officials from Karangan Dalam Village served as informants for this qualitative study. In planning efforts, the Secretary has created the Village Development Work Plan (RKPDesa) based on the questionnaires and stewardship philosophy. The village head receives submissions from the village secretary in the form of the village revenue and expenditure budget (APBDesa) and the village regulation work plan (Raperdes). The Village Consultative Body receives the Village Regulation Plan (Reperdes) Village Revenue and Expenditure Budget (APBDesa) for additional deliberation. The Village Fund Allocation (ADD) implementation provided information on the ADD manager's progress, particularly concerning fund absorption and physical activities. The person in charge of managing the village funds, the treasurer, keeps track of all income and expenses and neatly closes the books at the end of each month. Reporting on the management of village funds, the Village Head has sent the necessary SKPD to the regent, indicating the realization of budget utilization. Accountability for Village Fund Management: The village chief allocates the funds for the community, BPD, and regional government. The head of the village takes responsibility for overseeing the village's finances, and the ADD management has been operating well at the accountability stage. The head of the village consistently publishes the accountability outcomes of the APBDesa realization by the end of the relevant year. Village pages are still not being used to their full potential in terms of openness.

Unleashing Creative Performance Accounting Students

Indrawati Yuhertiana — 2023-06-30

In the current VUCA world, creativity and the capacity to think innovatively become valuable advantages and essential tools that help navigate through the turbulent waves of change. This article examines the crucial significance of creativity in improving the academic achievement of accounting students. The study examines how students tap into their creative abilities in the field of accounting education, given the ever-changing nature of the industry and the growing need for novel approaches. This study used an explanatory sequential mixed methods approach to thoroughly examine the elements that impact the creative performance of accounting students. The integration of qualitative and quantitative methodologies offers an in-depth understanding of the diverse factors that contribute to creative abilities in the field of accounting education. There are 213 respondents from sixteen universities in Indonesia involved in the first phase. Further, there are 14 students of the accounting department UPN Veteran Jawa Timur. Three findings have emerged after a comprehensive investigation. There are three categories of students: those who possess creativity in accounting, those who possess creativity in non-accounting subjects, and those who do not possess creativity at all. The article finishes by evaluating the students' inclination to explore novel ideas and methodologies in accounting. The research seeks to illuminate these features to offer insights on cultivating a creative mentality among accounting students, ultimately equipping them for the changing demands of the accounting profession. The findings may have ramifications for creating curriculum and instructional practices that promote and cultivate creative thinking in accounting education.

Becoming a Cashless Society: The Role of QRIS from the Z-Generation Student's Perspective

Elfreda Aplonia Lau — 2023-06-30

Along with the development of QRIS in Indonesia and Bank Indonesia's efforts to expand the use of QRIS internationally, Z-generation students are faced with the dynamics of financial transaction options towards a cashless society. This study aims to prove the factors that influence the use of QRIS to become a cashless society from the perspective of Z-generation students. The analysis was carried out in-depth based on the UTAUT theory. This study uses primary data by distributing questionnaires to Z-generation students at two universities in Samarinda. A total of 273 data were processed with SmartPLS. Findings show that Z-generation students accept QRIS as a leader in changing the payment paradigm, with high usage intentions driven by effectiveness and efficiency in daily financial transactions. Social influence from peers and family has also been shown to play a key role in shaping attitudes and behavior in using QRIS. Nevertheless, interesting findings imply that supporting factors, such as facilitating conditions, do not always play a dominant role in influencing Z-generation students' decisions to switch to cashless. The implication is that even though QRIS has great potential to form a cashless society, a holistic approach that considers social and psychological factors is crucial. This study suggests that future research involves a broader and more diverse sample that may provide more holistic insights and generalization.