The effects of good governance and fraud prevention on performance of the zakat institutions in Indonesia: a Sharīʿah forensic accounting perspective

Purpose This study aims to investigate the direct and indirect effects of good governance and fraud prevention on the performance of Zakat institutions. Design/methodology/approach A theoretical model was developed based on stakeholder theory, and data were collected from Indonesian Zakat institutions through convenience sampling design. In total, 142 data sets were analysed using partial least squares-structural equation modelling statistical software. Findings The results showed that good governance and fraud prevention significantly impact the performance of Zakat institutions. Yet, there was no significant influence of the fairness principle of good governance on Zakat performance in either direct or indirect relationships with fraud prevention. Practical implications The results indicated that Zakat institutions as trusted agencies should pay more attention to fairness implementations to avoid fraud. Furthermore, fairness is an early signal that accountants can use to detect either fraudulent or mismanaged Zakat distribution. Originality/value This paper provides the empirical justification for a theoretical model of Zakat performance that was conceptualized using good governance principles and Sharīʿah forensic accounting principles.

A Validation Model for Ethical Decisions in Artificial Intelligence Systems using Personal Data

Decision making, a fundamental human process, has been more and more supported by computer systems in the second part of the last century. In the 21st century, intelligent decision support systems utilize Artificial Intelligence (AI) techniques to enhance and improve support for decision makers. Often decisions suggested by an AI system are based on personal data, such as credit scoring in financial institutions or purchase behavior in online shops and the like. Beyond the protection or personal data by the General Data Protection Regulation (GDPR), developers and operators of decisional AI systems need to ensure ethical standards are met. In respect to individuals, arguably the most relevant ethical aspect is the fairness principle, to ensure individuals are treated fairly. In this paper we present an evaluation model for decision ethicality of AI systems in respect to the fairness principle. The presented model treats any AI system as a “black-box”. It separates sensitive from general attributes in the input matrix. The model measures the distance between predicted values on altering inputs for sensitive attributes. The variance of the outputs is interpreted as individual fairness, that is treating similar individuals similarly. In addition, the model also informs about the group fairness. The validation model helps to determine to what extent an AI System, decides fairly in general for individuals and groups, thus can be used as a test tool in development and operation of AI Systems using personal data.

Dynamics of Reasonableness and Fairness in a Pluralistic Legal System: Perspectives from Adat, Islamic and Civil Inheritance Law

Reasonableness and fairness are keystones of law. They are implemented broadly and important doctrine for civil law. However, the open nature of reasonableness and fairness allow various interpretations, influenced by the legal system, legal tradition, jurisprudence or measured on a case per case basis. Indonesia recognizes more than one kind of a legal system, making it a legal pluralist State. This article aims to describe the dynamics of the reasonableness and fairness principle within a pluralistic legal system. Indonesian inheritance laws use three different legal systems: Adat, Islam, and civil law, each provides distinctive perspectives of reasonableness and fairness. These differences may lead to a clash of interpretation or it may leave a wide room of discretion for the judges. Court judgments are analyzed to examine the implementation of such dynamics in practice. Finally, the outcome of the paper concludes whether the differences shall be embraced or whether there is a need to agree upon what is ‘reasonable’ and ‘fair’.

Tax avoidance in the Indonesian manufacturing industry

This study aims to determine tax avoidance in the Indonesian manufacturing industry. The control variable is the industrial sub-sector. In this study tax avoidance is proxied as book tax differences. This study focuses on manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2015-2018 period. Using the STATA 13 regression data panel, this study shows that capital intensity has no significant effect on tax avoidance and inventory intensity has no significant effect on tax avoidance. However, this study found that industry auditors' specialization had a positive effect on tax avoidance. This study contributes to enhancing empirical evidence of audit quality, proxied by industry auditors' specialization can provide assurance of managers' tax avoidance activities did not violate the fairness principle, thus increase tax avoidance activities.

Allocation of Greenhouse Gas Emissions Using the Fairness Principle: A Multi-Country Analysis

This study presents an analysis of the allocation of greenhouse gas emissions based on a comparison of criteria for 66 countries and fairness-based indicators. The academic literature contains very few broad multi-country studies. The large sample of countries included in our analysis has allowed us to make a more comprehensive, holistic comparison than other studies with similar characteristics. The United States and China must make the greatest effort to fight climate change worldwide, but all countries have a responsibility, including some that are not usually analyzed in this type of research.

Inconsistent allocations of harms versus benefits may exacerbate environmental inequality

We report five studies that examine preferences for the allocation of environmental harms and benefits. In all studies, participants were presented with scenarios in which an existing environmental inequality between two otherwise similar communities could either be decreased or increased through various allocation decisions. Our results demonstrate that despite well-established preferences toward equal outcomes, people express weaker preferences for options that increase equality when considering the allocation of environmental harms (e.g., building new polluting facilities) than when considering the allocation of environmental benefits (e.g., applying pollution-reducing technologies). We argue that this effect emerges from fairness considerations rooted in a psychological incompatibility between the allocation of harms, which is seen as an inherently unfair action, and equality, which is a basic fairness principle. Since the allocation of harms is an inevitable part of operations of both governments and businesses, our results suggest that where possible, parties interested in increasing environmental equality may benefit from framing such proposals as bestowing relative benefits instead of imposing relative harms.

Review Perhitungan Biaya Wheeling (Wheeling Cost Calculation Review)

Wheeling is a solution to the complexity of transmission network constructing problem. With the wheeling concept, a power plant owner can deliver electricity to its load without having to construct a transmission network. The owner of the power plant can utilize the transmission network belonging to other entities. The wheeling concept is an interesting thing in terms of increasing current renewable energy penetration. This is due to the construction of the transmission network, which is one of the obstacles in increasing renewable energy penetration. Fairness of wheeling costs is still one important topic. The discussion regarding wheeling costs emphasizes that the costs charged to each party involved can meet the fairness principle, which is in accordance with their respective contributions to the implementation of wheeling. Broadly speaking, research related to wheeling can be grouped into research for developing wheeling cost calculation methods and research for developing wheeling cost allocation methods. The development of the wheeling cost calculation method also includes the development of cost components that can be included in the cost calculation. This study summarizes the discussion of wheeling costs on three aspects, namely calculation methods, cost components, and cost allocation mechanisms.

Application of Good Corporate Governance Principles in Public Regional Hospital of Haji, Makassar

The newest development proves that hospital management is not sufficient to ensure that hospital management is efficient. A new instrument is needed to be called Good Corporate Governance to ensure that hospital management is implemented well. Public Regional Hospital of Haji is state-owned hospital type B. This hospital applied Hospital By-law, which is the internal regulation compiled in implementing Good Corporate Governance in a hospital. To analyze the application of Good Corporate Governance principals in RSUD Haji Makassar. This research is quantitative research through descriptive approach. Samples used are all staffs involved in organization structure of RSUD Haji Makassar, as many as 61 people. Sampling used was exhaustive sampling. Data collection was performed using questionnaire, completed with secondary data in the forms of hospital document and literature review. The research data was processed and analyzed using SPSS software. Transparency principle indicated that 47 people (76.48%) from the total respondents of 61 people obtained positive value. Accountability showed that 50 people (82.38%) from the total respondents of 61 people stated positive value, while in the fairness principle, most of the respondents, as many as 45 people (70.81) people also stated positive value. GCG principles have been applied well in RSUD Haji Makassar. The Good Corporate Governance needs to be maintained in order to increase the performance of RSUD Haji Makassar. There were still big intervention in this hospital, making the independency principal in this research could not be reviewed in depth.

The Influence of GCG Implementation on the Performance of BPJS Ketenagakerjaan in Branch Offices in the Region of DKI Jakarta

This research was conducted to provide confidence in the effect of the implementation of GCG BPJS Ketenagakerjaan on the performance of branch offices in the DKI Jakarta area. Therefore a theoretical model with 15 hypotheses was proposed to be tested using the SEM method, through 255 respondents who were BPJS Ketenagakerjaan in the DKI Jakarta Region, as the largest contributor area of contributions compared to 10 other regions in Indonesia. Based on this research, it is known that the implementation of GCG in the form of Transparency is very significant, followed by the implementation of the Responsibility principle and the Fairness principle on the Expansion of Participation Performance, Service Satisfaction and Fee Acceptance, and in general there is a positive relationship on the implementation of GCG on Branch Office Performance. Based on this research it is recommended that the BPJS Employment Office be able to optimize the socialization, monitoring and evaluation on an ongoing basis on the implementation of GCG principles for managing the performance of Branch Offices in its area, so that the expected performance can be achieved and the quality and quantity can be continuously improved.