Management restructuring on distress firm in Indonesia

Companies experiencing financial distress will try to solve these problems with various improvement efforts. One of the efforts that can be done is to carry out management restructuring, namely management changes. This study focuses on the management restructuring strategy on manufacturing companies that experience a decrease in performance, with the proportion of Earning Before Interest and Tax which decreased for two or more consecutive years period 2010 to 2020. The reason for taking this period is to capture the period after the 1997 crisis until the occurrence of global crisis in 2008. This study aims to examine the effect of ownership structure in choosing management turnover restructuring. The data used is cross-section data and processed using logistic regression with Stata. The results of this research simultaneously show that insider ownership, institutional ownership, family ownership, and corporate characteristic variables have an impact on the management restructuring decision. This study proves that the ownership structure mechanism affects the choice of management restructuring in distressed companies in Indonesia.

Analisis Auditor Switching dan Faktor-Faktor yang Mempengaruhinya pada Perusahaan Non Keuangan yang Terdaftar di Bursa Efek Indonesia

This study aims to analyze the effect of Audit Opinion, Management Change, Public Accountant Firm Size, and Client Company Size on Auditor switching in Non-Financial Companies listed on the Indonesia Stock Exchange in 2018-2019. In this study, the population obtained from non-financial companies was 420. The sample obtained for 2 years was 210 samples. The sample data used uses secondary data, namely the annual financial statements of non-financial companies in 2018-2019. The data analysis technique used is logistic regression. The results of this study conclude that the variable of management turnover and the size of KAP have an effect on auditor switching, while audit opinion and the size of the client's company have no effect on auditor switching. Keywords: Audit Opinion, Management Change, Public Accounting Firm Size, Client Firm Size, Auditor Switching

Is Audit Committee Power Associated with Audit Completeness and Earnings Announcement Timing?

Companies are increasingly disclosing earnings announcements prior to the completion of the year-end audit. Earnings that are released before the audit is complete are viewed negatively by investors and are positively associated with restatements and management turnover. We examine the role of the audit committee in the timing of earnings announcements. We predict and find that more powerful audit committees are positively associated with earnings announcements issued closer to audit completion. For observations with incomplete audits, we find that more powerful audit committees are negatively associated with restatements. Finally, more powerful audit committees are associated with delays in the earnings announcement. Our primary results are robust to the use of an entropy-balanced control sample and company fixed effects. These results indicate that audit committees play a role in earnings announcement timeliness and reliability, and have implications for researchers, investors, and regulators.

Turnover and Performance in Full- and Select-Service Hotels

Turnover plays an important role in hotel performance. This study explored turnover and its relationship between three key categories of the balanced scorecard (revenue, profit, and guest satisfaction) using secondary data from a 6-year period for 118 full- and select-service hotels. Analysis revealed strong positive correlations between hourly and management turnover in full-service hotels and positive correlations in 4 of the 6 years in select-service hotels. There was also a modest negative correlation between management turnover and guest satisfaction in 4 of the 6 years.

Top Management Turnover and Its Effect on Employee Absenteeism: Understanding the Process of Change

This study investigates the effect of top management turnover in public organizations on employee absenteeism, examining school principal turnover in public primary schools. While previous research has focused on the impact of principal turnover on school performance, we analyze how principal turnover influences employee absence. A longitudinal study of 481 employees is conducted. Findings indicate that managerial turnover at schools does indeed influence absence. Absence is particularly high after a new top manager has taken office, and especially for employees where the gap between resignation of one manager and another taking office is short. Findings also show that the absence effect of a new top manager diminishes over time.

Learning from Digital Failures? The Effectiveness of Firms’ Divestiture and Management Turnover Responses to Data Breaches

We examine whether firms learn from digital technology failures in the form of data breach events, based on the effectiveness of their failure responses. We argue that firms experiencing such technological failures interpret them broadly as organizational problems, and undertake unrelated divestitures and top management turnover to achieve better standardization and to remove dysfunctional routines. We test our hypotheses on unrelated subsidiary divestitures and chief technology officer (CTO) turnovers undertaken by 8,760 publicly traded U.S. firms that were at risk of experiencing data breaches involving the loss of personally identifiable information during the period 2005–2016. We find that data breaches significantly increase the hazard of unrelated divestitures and CTO turnover, and that these failure responses are sensitive to firms’ aspiration-performance feedback. However, whereas unrelated divestitures reduce the reoccurrence of data breaches, CTO turnover has no significant effect. Our findings suggest a corrective role of unrelated divestitures for failure learning, and the symbolic nature of CTO turnover as a failure response. Our study unpacks failure learning that hitherto has been inferred from a firm’s own failure experience and industry-wide failures, and highlights the interplay between the digital and nondigital components of a firm in the understudied context of data breaches.