Sustainability reporting in Indonesian listed banks

2019 ◽  
Vol 21 (2) ◽  
pp. 231-247
Author(s):  
Prihatnolo Gandhi Amidjaya ◽  
Ari Kuncara Widagdo
Keyword(s):  
Panel Data ◽  
Empirical Evidence ◽  
Sustainability Reporting ◽  
Foreign Ownership ◽  
Family Ownership ◽  
Content Type ◽  
Panel Data Regression ◽  
Content Analysis Method ◽  
Data Regression ◽  
Sustainable Finance

Purpose The purpose of this paper is to find empirical evidence of ownership structure and corporate governance (CG) effect on sustainability reporting in Indonesian listed banks. The study also tries to describe sustainability reporting disclosure practice. Design/methodology/approach The authors analyze balanced panel data with a total of 155 observations from 2012 to 2016 using panel data regression. Findings The findings present empirical evidence that sustainability reporting in Indonesian listed banks is still low. CG, foreign ownership and family ownership positively influence sustainability reporting. Further, the authors find that family ownership weakens the effect of CG while foreign ownership has no significant moderating role. Digital banking is not a significant determinant and OJK sustainable finance roadmap is evidenced to have no impression on bank intention to produce sustainability report. Research limitations/implications The use of content analysis method for variable measurement may contain subjectivity substance from the researcher’s perspective. Further research works need confirmation from independent parties with expertise in this subject. Further research works can also implement the mixed method by combining quantitative and qualitative approach to gain better quality. Practical implications The result of this study underlines the need for sustainability reporting improvement, followed by suggestions for Indonesian banking regulator. Originality/value This paper provides a description of Indonesian banks sustainability reporting and evidence of CG and controlling owner’s role in its practice. The research presents a novelty, examining the role of digital banking as determinant.

scholarly journals Sustainability Reporting dan Return Saham di Perusahaan Terindeks LQ45

2021 ◽  
Vol 31 (6) ◽  
pp. 1356
Author(s):  
Nyoman Weda ◽  
I Putu Sudana
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Stock Returns ◽  
Stock Return ◽  
Sampling Method ◽  
Sustainability Reporting ◽  
Company Size ◽  
Panel Data Regression ◽  
Analysis Technique ◽  
Data Regression

In recent years, investors have put pressure on companies to disclose more sustainability information. The purpose of this study was to determine the effect of the intensity of disclosure in sustainability reporting on stock returns. This research was conducted on companies with shares listed in the LQ45 index on the IDX. The number of samples taken was 17 companies, with a purposive sampling method. Data collection was carried out by documentation study. The analysis technique used is the panel data regression analysis technique. The results showed that the intensity of disclosure in sustainability reporting has no effect on stock returns. The high intensity of disclosure does not necessarily attract investors to invest and increase the company's stock return. Keywords: Sustainability Reporting; Profitability; Company Size; Stock Return.

Legal source, institutional quality and FDI flows in Africa

2017 ◽  
Vol 59 (5) ◽  
pp. 687-698 ◽  
Author(s):  
Godfred A. Bokpin ◽  
Lord Mensah ◽  
Michael E. Asamoah
Keyword(s):  
Panel Data ◽  
South African ◽  
Legal System ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Policy Implications ◽  
African Countries ◽  
Content Type ◽  
Panel Data Regression ◽  
Data Regression

Purpose This paper aims to find out how the legal system interacts with other institutions in attracting Foreign Direct Investment (FDI) into Africa. Design/methodology/approach The authors use annual panel data of 49 African countries over the period 1980 to 2011, and use the system generalized method of moments (GMM) estimation technique and pooled panel data regression. Findings The authors find that the source of a country’s legal system deters FDI inflow as institutions alone cannot bring in the needed quantum of FDI. In terms of trading blocs, it was found that there is negative significant relationship between institutional quality and FDI for South African Development Community (SADC) as well as Economic Community of West Africa States (ECOWAS) countries. Practical implications For policy implications, the results suggest that reliance on institutions alone cannot project the continent to attract the needed FDI. Originality/value Empiricists have devoted considerable effort to estimating the relationship between institutions and FDI on the African continent, but this paper seeks to ascertain the effect of legal systems and institutional quality within African specific trade and regional blocks.

scholarly journals Pengaruh good corporate governance terhadap profitabilitas perusahaan

2019 ◽  
Vol 2 (3) ◽  
pp. 127-136
Author(s):  
Suci Subiyanti ◽  
Rachma Zannati
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Empirical Evidence ◽  
Sampling Method ◽  
Stock Exchange ◽  
Managerial Ownership ◽  
Good Corporate Governance ◽  
Panel Data Regression ◽  
Analysis Technique ◽  
Data Regression

The purpose of this study is to provide empirical evidence regarding the effect of the size of the Independent Commissioners and Managerial Ownership on Profitability as measured by ROA. The object of this study is a banking company listed on the Stock Exchange in the 2013-2017 period. Based on the purposive sampling method that is based on the criteria that have been determined, 15 companies were obtained as research samples. The analysis technique uses panel data regression using E-Views 9 software. The results of the study prove that the Independent Board of Commissioners has no significant effect on profitability, while managerial ownership has a significant effect on profitability. Implications and suggestions are explained in this study.  

scholarly journals Family Ownership, Commisioners Independence and Corporate Social Responsibility in Indonesian Corporate

2018 ◽  
Vol 1 (2) ◽  
Author(s):  
Siti Nuke Nurfatimah
Keyword(s):  
Regression Analysis ◽  
Family Ownership ◽  
Analysis Method ◽  
Moderating Effects ◽  
Panel Data Regression ◽  
Content Analysis Method ◽  
Data Regression ◽  
Before And After ◽  
Corporate Social ◽  
A Company

This study examined the effect of family ownership percentage rate on the disclosure of CSR information by family companies in Indonesia after the establishment of regulations issued by the Ministry of Environment in 2012. Disclosure of CSR is measured by content analysis method which refers to the GRI G3.1. In addition, this study also added a moderating effect, namely independent commissioners who acting as independent supervisors of a company. Independent commissioners are measured using the percentage of independent commissioners in the company. This study used a samples of all family companies in Indonesia except financial companies for 2013 to 2015. The hypothesis testing was carried out using panel data regression analysis both before and after involving moderating effects.

Determinants of risk disclosure compliance in Malawi: a mixed-method approach

2016 ◽  
Vol 6 (2) ◽  
pp. 111-137 ◽  
Author(s):  
Venancio Tauringana ◽  
Lyton Chithambo
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Mixed Method ◽  
Risk Disclosure ◽  
Content Type ◽  
Mixed Method Approach ◽  
Panel Data Regression ◽  
Data Regression ◽  
Ifrs 7 ◽  
Method Approach

Purpose – The purpose of this paper is to investigate compliance with risk disclosure requirements under International Financial Reporting Standard (IFRS) 7 by Malawian Stock Exchange-listed companies over a three-year period. Specifically, the paper examines the extent and determinants of risk disclosure compliance with IFRS 7. Design/methodology/approach – The study uses a mixed-method approach. The quantitative approach employs the research index methodology and uses panel data regression analysis to examine the relationship between proportion of non-executive directors (NEDs), size, gearing and profitability and the extent of risk disclosure compliance. The results of the panel data regression analysis are triangulated by the qualitative research approach in the form of personal interviews with company managers. Findings – The results indicate that over the three years, the extent of compliance with IFRS 7 is, on average, 40 per cent which is very low. The regression results suggest that NEDs, size and gearing are significantly and positively associated with the extent of risk disclosure compliance under IFRS 7. The results of qualitative approach are mixed since some support and whilst others contradict the regression results. Research limitations/implications – The sample size is very small which may affect the generalisability of the study. Originality/value – The use of a mixed-methods approach to examine the determinants of risk disclosure compliance provides additional insights not provided in prior studies. The contradicting results suggest that more research using the mixed approach is required to provide more robust evidence of the determinants of risk disclosure compliance.

scholarly journals Impact of Working Capital and Leverage on Profitability: A Comparison between Indonesia Ulama Council Fatwa and AAOIFI Sharia Standards

2021 ◽  
Vol 6 (1) ◽  
pp. 39
Author(s):  
Akhmad - Sultoni ◽  
Rahmat Mulyana ◽  
Saiful Anwar
Keyword(s):  
Panel Data ◽  
Empirical Evidence ◽  
Research Paper ◽  
Stock Index ◽  
Working Capital ◽  
Return On Assets ◽  
Cash Conversion Cycle ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Impact

Purpose – This study aims to provide empirical evidence regarding the restrictions on the sharia stock criteria, by observing the impact of working capital and leverage on the profitability of companies listed in Indonesia Sharia Stock Index. There are some differences between Indonesia Ulama Council’s fatwa and AAOIFI sharia standards regarding the restrictions on the sharia stocks, particularly on the riba based leverage compared to the total assets of the companies regarded as having sharia stocks. The objective of this paper is to compare and analyze which restrictions serves companies better.Design/methodology/approach – The research was done to companies listed in Indonesia Sharia Stock Index from 2012 until 2018. Panel data regression was applied to analyze the significance of the result. For comparison purpose of the fatwa and the AAOIFI sharia standards, samples were divided into three different groups based on the debt to assets ratio as an indicator of the riba based leverage (≤30%, 30%-45% and>45%). Variables of cash conversion cycle and debt to assets ratio are used to measure the impact of the working capital and leverage on the return on assets as indicator or profitability.Findings – The result suggests that there are differences in the impact of working capital and leverage on the profitability for the three groups of leverage. In favor of the AAOIFI sharia standards, the result of this study shows that in the group where the leverage is 30% at maximum, the profitability is not affected by the working capital and leverage of the company. Meanwhile, in the group where the leverage is more than 30%, the impact of working capital and leverage on the profitability of the company is found to be significant.Research limitations/implications – This study is limited to the companies listed in Indonesia Sharia Stock Index, with variables of cash conversion, debt to assets ratio and return on assets.Practical implications – This study provide an empirical evidence that can be used to revisit the restrictions applied by Indonesia Ulama Council regarding the sharia stocks.Originality/value – To the best of authors’ knowledge, this paper provides important findings in the sharia finance dynamic in Indonesia.Keyword working capital, leverage, profitability, sharia stocks.Paper type research paper

scholarly journals Does Sustainable Banking Disclosure Affect Bank Efficiency? Evidence from Indonesia

2021 ◽  
Vol 22 (2) ◽  
pp. 375-391
Author(s):  
Wihelmina Dea Kosasih ◽  
‪Aulia Fuad Rahman ◽  
Arum Prastiwi
Keyword(s):  
Empirical Evidence ◽  
Stock Exchange ◽  
Data Envelopment ◽  
Financial Service Authority ◽  
Bank Efficiency ◽  
Second Stage ◽  
Panel Data Regression ◽  
Data Regression ◽  
Sustainable Finance ◽  
Positive Effect

Research aims: In Indonesia, there are regulatory developments that require companies to implement a sustainable manner in business activities. Based on Financial Service Authority Regulation No. 51/2017 regarding sustainable finance, Bank BUKU 3 and 4 are the first parties required to run and publish a sustainability report. Therefore, it is essential to evaluate the performance of a bank implementing sustainable banking. This study aims to examine sustainable banking disclosure on bank efficiency in Indonesia.Design/Methodology/Approach: The researchers used 70 observations of banks listed on the Indonesian stock exchange from 2015 to 2019. The method for testing bank efficiency employed Data Envelopment Analysis (DEA). In the second stage of the analysis, the researchers utilized a panel data regression method.Research findings: First, the results showed that commercial banks BUKU 3, 4 in Indonesia were still inefficient. Second, the article also found that sustainable banking disclosure had a positive effect on bank efficiency.Theoretical contribution/Originality: This study's results constitute empirical evidence related to stakeholder theory and provide empirical evidence regarding the effect of sustainable banking on bank efficiency.Practitioner/Policy implication: This research contributes to bank management to implement sustainable banking because it can increase bank efficiency.

scholarly journals DETERMINAN MANEJEMEN LABA: PERAN LIABILITAS PAJAK TANGGUHAN DAN LEVERAGE

2020 ◽  
Vol 2 (2) ◽  
pp. 95-104
Author(s):  
Eky Septiawan ◽  
Yohan H Wibowo ◽  
Hendryadi Hendryadi
Keyword(s):  
Panel Data ◽  
Earnings Management ◽  
Empirical Evidence ◽  
Stock Exchange ◽  
Test Results ◽  
Panel Data Regression ◽  
Data Regression ◽  
Deferred Tax Liabilities ◽  
Deferred Tax ◽  
Practical Implications

This study aims to provide empirical evidence regarding the effect of deferred tax liabilitie and corporate leverage on earnings management. The object of research is companies included in the LQ45 index listed on the Indonesia Stock Exchange in the period 2014-2018. Hypothesis testing uses panel data regression with the help of the EVIEWS program. The test results show that the deferred tax liabilities have no significant effect on earnings management, while leverage is proven to significantly affect earnings management. The practical implications and suggestions outlined in the article.

scholarly journals Determinan Islamic Social Report Disclosure Industri Barang Konsumsi yang terdaftar di Indeks Saham Syariah Indonesia (ISSI)

2020 ◽  
Vol 10 (3) ◽  
pp. 170-181
Author(s):  
Nur Nugrahani Setiawati ◽  
Sigid Eko Pramono ◽  
Endri
Keyword(s):  
Consumer Goods ◽  
Foreign Ownership ◽  
Stock Index ◽  
Annual Reports ◽  
Analysis Model ◽  
Social Report ◽  
Panel Data Regression ◽  
Content Analysis Method ◽  
Data Regression ◽  
Positive Effect

This study aims to analyze the influence of company size, muslims on board, women on board, company age, foreign ownership, Islamic securities, profitability, liquidity, leverage against Islamic Social Report disclosures of listed Consumer Goods Industries in Indonesia Sharia Stock Index (ISSI) in 2011-2017. The sample consists of 23 listed Consumer Goods Industries in Indonesia Sharia Index (ISSI) in 2011-2017. Annual reports were analyzed by content analysis method and Panel Data Regression Analysis Model was used to test hypotheses. The analysis shows that company's size, company's age, profitability have a significant positive effect on disclosure of the Islamic Social Report (ISR) in Consumer Goods Industries. Meanwhile, muslims on board, women on board, foreign ownership, Islamic securities, liquidity, leverage have no significant effect towards the disclosure of Islamic Social Report on Consumer Goods Industries.

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