scholarly journals Rural Bank Financial Performance: Evidence from Indonesia

2019 ◽  
pp. 491-497
Author(s):  
Dwi Prastowo Darminto
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Financial Reporting ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Managerial Ownership ◽  
Accounting Standard ◽  
Management Quality ◽  
Compliance Level ◽  
Survey Approach

This study aims to examine and analyze the influence of managerial ownership level, compliance level of accounting standard implementation, and assurance quality on financial reporting quality. This study also measures the influence of the variables of financial reporting quality, managerial ownership level, and risk management quality on rural bank financial performance. The method used in this research is the verificative research method with the survey approach, statistically processed by using PLS-SEM, with the aim to obtain the facts about the phenomena that occur and to seek information on the actual and systematic financial reporting quality and its impact on the rural bank financial performance. The findings of this study indicated that the compliance level of accounting standard implementation significantly influences financial reporting quality. The variable of managerial ownership level and assurance quality insignificantly influence financial reporting quality. The variables of financial reporting quality, managerial ownership level, and risk management quality also have insignificant influence on the rural bank financial performance.

scholarly journals THE INITIAL IMPLEMENTATION OF ACCRUAL BASED ACCOUNTING, THE EFFECT ON PERFORMANCE AND FINANCIAL REPORTING QUALITY AT LOCAL GOVERNMENTS IN INDONESIA

2019 ◽  
Vol 11 (1) ◽  
pp. 13
Author(s):  
Rindu Rika Gamayuni
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Local Governments ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Fiscal Year ◽  
Accounting Standard ◽  
Government Accounting ◽  
Before And After

Abstract: In Indonesia local government, accrual based Government Accounting Standard (GAS) was started to be mandatorily applied in 2015, so this research aims to investigate to what extent the role of accrual GAS implementation toward quality of financial reporting and financial performance especially at local governments. Population of this study is Local Governments of districts/cities in Indonesia for Fiscal Year 2014 and Fiscal Year 2015, as many as 542 local governments (before and after the implementation of accrual base).  Sampling method uses probability sampling which is cluster sampling. In this case, the population is divided based on 34 province clusters, so the number of sample obtained is 242 local governments of districts/cities in Indonesia.  The hypothesis testing uses paired t test. The object of research is the financial reporting quality and financial performance. The results of this study provide empirical evidence that there is an increase in the quality of financial reporting after the application of accrual-based accounting at local governments in Indonesia, but have not proven the existence of the increased financial performance. There is no differences in financial performance before and after accrual based accounting implementation at local governments in Indonesia. This hyphothesis  was not supported due to the application of accrual basis accounting is still in the early stages of implementation (1 year) that still have constraints in limited human resources competencies, necessary adaptations or adjustments in the process of change. Local governments in Indonesia must apply accrual based accounting because it is proven that it increases financial report quality.  However, the system implementation in the beginning period found many obstacles so it needs continuous adjustment and learning in order to reach desirable goal. There is still a debate on how important is the implementation or adoption of accrual IPSAS in many countries, including Indonesia.  In Indonesia, the implementation of accrual based Government Accounting Standard (SAP/GAS) is new mandatory since 2015. The result of this research will give contribution to the theory, that there is significant influence of implementation accrual based GAS to financial reporting quality, but no significant increase in financial performance (efficiency and effectiveness) at local government.  Therefore, this result study will be used to determine related policies about the implementation of accrual based GAS. Keywords: Accrual Based Accounting, Financial Reporting Quality, Financial Performance, Government

The Relevance of Accounting Theory on Business Financial Performance in Nigeria

2018 ◽  
Vol 14 (25) ◽  
pp. 37
Author(s):  
Osho, Augustine E. ◽  
Adebambo Adeniyi
Keyword(s):  
Regression Analysis ◽  
Financial Performance ◽  
Financial Reporting ◽  
Secondary Data ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Annual Reports ◽  
Business Organizations ◽  
Accounting Theory ◽  
And Performance

The study was on the relevance of accounting theory on business financial performance in Nigeria. The objective of the study was to examine how accounting theory affects financial performance of business in Nigeria. The research was carried out, using three quoted companies (Berger Paint, Lafarge Cement and Meyer Plc) as the study area. Secondary data was gotten from the companys’ audited annual reports on return on asset with multiple regression analysis. Findings revealed that accounting theory have no significant relationship with the financial performance of business organizations in Nigeria. Thus, it is recommended that the Management of quoted companies must introduce new accounting theories to improve their financial reporting quality and performance; so that the level of their profit can significantly increase.

scholarly journals ONE FINANCIAL REPORTING GLOBAL LANGUAGE: THE ULTIMATE GOAL?

2017 ◽  
Vol 5 (1) ◽  
Author(s):  
Amelia Limijaya
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
International Accounting Standards ◽  
Political Aspect ◽  
Accounting Standard ◽  
The Us ◽  
Global Language ◽  
Accounting Standard Setting

This article aims to analyse the extent to which international accounting standards is applied and whether it is the ultimate goal. Up until the end of 2016, approximately there are 84% of the 149 jurisdictions analysed which require IFRS for all or most domestic publicly accountable entities. This may indicate that we are not that much further from having a single set of globally-accepted accounting standards. However, there is more to financial reporting than just accounting standards alone, such as the political aspect of accounting standard-setting, translation issues surrounding IFRS adoption, the US position and the complexity of financial reporting. Improving financial reporting quality needs more than just having global accounting standards, rather, it is also essential to consider the preparers’ incentives and other institutions surrounding the firm. Stakeholders need to broaden the perspective when viewing financial reporting, so that it will not be focused merely on accounting standards alone.

scholarly journals Determinants of financial reporting quality and its implications on the financial performance of state-owned enterprises (SOEs)

2016 ◽  
Vol 6 (4) ◽  
pp. 521-530
Author(s):  
Evada Dewata ◽  
Hamdy Hadi ◽  
Hadi Jauhari
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Financial Reporting ◽  
Audit Committee ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Government Ownership ◽  
Board Of Director ◽  
The Board Of Directors

This research aimed at analyzing the influence of the size of the board of directors, the composition of the independent commissioners, the effectiveness of audit committee and government ownership of the financial reporting quality and its implications on the financial performance of state-owned enterprises. Research population is state-owned enterprises listed on the Indonesia Stock Exchange from 2010-2014. There were 50 companies assigned as the sample of this research by using purposive sampling method. The results showed that partially, the size of the board of director, the composition of the independent commissioners and government ownership did not have the significant influence on financial reporting quality. The effectiveness of audit committee positively and significantly influenced financial reporting quality. The size of the board of directors, the effectiveness of the audit committee and financial reporting quality positively and significantly influenced financial performance. The composition of an independent commissioner and government ownership negatively and significantly influenced financial performance

Changes in the Covalence Ethical Quote, Financial Performance and Financial Reporting Quality

2014 ◽  
Vol 134 (3) ◽  
pp. 369-395 ◽  
Author(s):  
Fayez A. Elayan ◽  
Jingyu Li ◽  
Zhefeng Frank Liu ◽  
Thomas O. Meyer ◽  
Sandra Felton
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Reporting Quality ◽  
Financial Reporting Quality

scholarly journals Financial Reporting Quality and Online Disclosure Practices in Spanish Governmental Agencies

2021 ◽  
Vol 13 (5) ◽  
pp. 2437
Author(s):  
Javier Garcia-Lacalle ◽  
Lourdes Torres
Keyword(s):  
Public Sector ◽  
Financial Performance ◽  
Financial Reporting ◽  
Central Government ◽  
Good Governance ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Equation Modeling ◽  
Governing Body

Good governance in the public sector implies high accountability levels. Accountability is a multidimensional concept that includes the quantity and reliability of disclosures as well as rendering accounts to the citizenry. Nowadays, good governance, accountability, and financial performance are key for the long-term sustainability of autonomous public sector organizations. The objective of this paper is to study how key governance features relate to the quantity and quality of the information disclosed. In particular, how the governing body, financial performance and organizational features relate to online transparency and financial reporting quality, as well as how these two accountability dimensions are related. To fulfill this objective, we have used the Structural Equation Modeling, Partial Least Squares (PLS-SEM) approach. The focus of our analyses is on Spanish central government agencies. The size of, and a greater presence of independent members in, the governing body are explanatory factors behind the quality of the financial reports. Our findings also show that the quality of the financial information is also affected by the pressure that Eurostat requirements -deficit limits- puts on public sector entities, which leads to the use of smoothing practices. Online disclosure practices are not explained by the features of the governing body, but by the size of the agencies and their financial results. The better the financial reporting quality, the higher the online disclosure levels.

scholarly journals Analysis of Investment Decisions in Sharia Cooperatives: Does Sharia Accounting Standards Affect?

2021 ◽  
Vol 12 (1) ◽  
pp. 119-140
Author(s):  
Abd. Kholik Khoerulloh ◽  
Yadi Janwari
Keyword(s):  
Adverse Effect ◽  
Financial Performance ◽  
Human Resource ◽  
Financial Reporting ◽  
Investment Decisions ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Analytical Techniques ◽  
Financial Reporting Quality ◽  
Original Sample

Abstract:  Investors in sharia cooperatives in Majalengka Regency suffered losses due to its administrators and managers who were not transparent in reporting their finances. This research aims to determine the effect of the application of sharia accounting standards and human resource competencies on investment decisions through financial reporting quality. The analytical techniques used in this study use path analysis. The results showed that the application of Sharia accounting standards had no significant adverse effect on investment decisions through financial reporting quality with an original sample value of -0.021 and Pvalue 0.554 0.05. In contrast, human resource competence significantly affected investment decisions through financial reporting quality with original sample values of 0.403 and Pvalue of 0.044 0.05. The implication of this research is to improve sharia cooperative management in financial performance to attract members to invest. The novelty of this research is the motive of investing in sharia cooperatives.Abstrak: Investor pada koperasi syariah di Kabupaten Majalengka mengalami kerugian karena ulah para pengurus dan pengelolanya yang tidak transparan dalam melaporkan keuangannya. Penelitian ini bertujuan untuk mengetahui pengaruh penerapan standar akuntansi syariah dan kompetensi sumber daya manusia terhadap keputusan investasi melalui kualitas laporan keuangan. Teknik analisis yang digunakan dalam penelitian ini menggunakan analisis jalur. Hasilnya menunjukkan bahwa penerapan standar akuntansi syariah berpengaruh negatif tidak signifikan terhadap keputusan investasi melalui kualitas laporan keuangan dengan nilai original sample sebesar -0.021 dan Pvalue 0.554 0.05, sedangkan kompetensi sumber daya manusia berpengaruh positif signifikan terhadap keputusan investasi melalui kualitas laporan keuangan dengan nilai original sample sebesar 0.403 dan Pvalue 0.044 0.05. Implikasi dari penelitian ini adalah meningkatkan manajemen koperasi syariah dalam kinerja keuangan sehingga menarik anggota untuk berinvestasi. Kebaruan dari penelitian ini adalah motif investasi pada koperasi syariah.

scholarly journals Risk Management Committee, Financial Reporting Quality and Financial Performance of Deposit Money Banks in Nigeria

2020 ◽  
Vol 11 (5) ◽  
pp. 288
Author(s):  
Joseph Ugochukwu Madugba ◽  
Egbide Ben-Caleb ◽  
Innocent I. Okpe ◽  
Oludare, S. Fadoju ◽  
Ben-Caleb Jane Ogochukwu ◽  
...  
Keyword(s):  
Risk Management ◽  
Financial Reporting ◽  
Annual Report ◽  
Developing Economies ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Management Committee ◽  
Banking Organization ◽  
Net Assets ◽  
Risk Management Committee

This Paper examined risk management committee and financial reporting quality on performance of banks in Nigeria with objective of finding out if risk management committee and financial reporting quality affect liquidity of the banks in our study. The data was gotten from annual report of the banks and Central Bank of Nigeria (CBN) statistical bulletin. Out of sixteen deposit money banks, five banks were used for a period of five years 2012-2016. The hypotheses were tested and the result showed that risk management committee does not affect liquidity level of the banks. However, financial reporting quality affect the net assets value per share of banks in Nigeria and the researcher recommended that there is need to strengthen the risk management committee at every banking organization in Nigeria and greater focus should be given to global reporting to ensure that Nigerian banks can compete favourably with that of other developing economies.

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