Death Infectious: Impact of the Coronavirus Disease (COVID-19) on Stock Returns

This study examines the Coronavirus disease (COVID-19) on stock returns. The independent variables are daily new deaths and daily new cases. The sample that uses in this study is financial sector, one of the most crucial sectors in an economy. Total sample is 22,930 observations during the period from March to December in 2020. This study uses unbalanced panel data and multiple regression to prove those hypotheses. The result shows that the Coronavirus disease (COVID-19) hurt on stock returns. Investors feel anxious and frightened to hear the news regarding the increasing number of deaths and the number of new cases. Investors prefer to delay investment until the capital market returns to normal. Furthermore, during the pandemic period, Friday's effect may reduce losses from stock returns. The implication of this study is that an increase in the number of deaths and the number of new cases can reduce stock returns. The government needs to suppress bad news circulating in the mass media in order to reduce investor anxiety.

The Effect of Workplace Spirituality, Perceived Organizational Support, and Innovative Work Behavior: The Mediating Role of Psychological Well-Being

This research investigating the innovative work behavior of teachers and school staff during the Covid-19 pandemic is still rarely studied, so it has contributed to improving the behavior of teachers and school staff in Indonesia during the Covid-19 pandemic. The purpose of this study was to analyze and examine the direct influence of workplace spirituality and perceived organizational support on the innovative work behavior of teachers and school staff. Besides, exploring the mediating role of psychological health variables. The research sample was 379 teachers and school staff that is analyzed using SEM-PLS. The results showed that workplace spirituality and perceived organizational support had a direct effect on innovative work behavior.Psychological well-being also affects innovative work behavior. This study also shows that psychological well-being has a role in mediating the influence between work-place spirituality and perceived organizational support for innovative work behavior. This study indicates that workplace spirituality and workplace spirituality can be directly and indirectly through psychological well-being to increase the innovative behavior of teachers and school staff in learning activities at school.

Entrepreneurial Mindset, Orientation, and Performance of University Students in Indonesia

Entrepreneurship plays an important role in determining the level of economic growth of a country. This study aims are to explorethe impact of entrepreneurial mindset on innovativeness, risk-taking, competitive aggressiveness, autonomy, and proactiveness onentrepreneurial performance. This research uses Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze thedata.. It gathered data of 364 respondents, which were the bachelor students of management program of public universities inSurabaya, Indonesia. The results show that entrepreneurial mindset has a significant impact to innovativeness, risk-taking,competitive aggressiveness, autonomy, and proactiveness. It also enhances positive and significant impact to entrepreneurialperformance of the students. It implies that the entrepreneurship education of public universities in Surabaya, Indonesia succeedsto change the students’ mindset and orientation. The government needs to increase entrepreneurship education centers andbusiness incubator centers at various universities.

The Effects of Bank-Level and Macroeconomic Variables on Commercial Bank Lending Based on Type of Use

ABSTRACTThe purpose of this study was to analyze the effect of interest rates, bank-level and macroeconomic variables on bank lending based on the type of use. The analysis method uses an autoregressive distributed lag (ARDL) model with quarterly data for the period of 2011Q1 - 2020Q1. The results show that investment lending behavior can be explained well by all bank-level and macroeconomic variables for the long run. The bank-level variable also reflects the performance and soundness of the bank, namely the capital adequacy ratio and loan to deposit ratio. Meanwhile, macroeconomic variables include inflation and real GDP. Consumer lending behavior is better explained by macroeconomic variables than bank-level variables. Meanwhile, GDP is the only variable that has a significant effect on working capital loans, which means that the behavior of working capital loans is more influenced by the business cycle as indicated by changes in real GDP. GDP is the only variable that consistently has a significant positive effect on bank loans for the three types of loans. Banks need to continue to emphasize the principle of prudence in providing credit by taking into account the term and credit risk, as well as internal and external factors.

Cryptocurrency Safe Haven Property against Indonesian Stock Market During COVID-19

Safe-haven assets conserve their value or grow against another asset or portfolioduring market turmoil. Indonesian stock market, represented by the Jakarta composite index (JKSE), plunged in price because of COVID-19, pushing investors to look for safe-havens. The cryptocurrency began to be perceived as a store of value as indicated by the transaction volume increase; hence it was expected to be a safe haven asset. However, cryptocurrency’s high price volatility cast doubts on its store of value effectiveness, prompting inspection for its safe haven property as well. This research aimed to predict the assets' risk and return plus investigate whether cryptocurrency is safe haven assets against the Indonesian stock market during COVID- 19. Daily closing prices of JKSE, Bitcoin, Ethereum, Litecoin, and Ripple were used, then the GARCH model was implemented in the forecasting. DCC-GARCH model, followed by dummy variable regression, will be applied to the return data to evaluate the safe haven property. The prediction projected Bitcoin as the most profitable asset andRipple as the riskiest. The analysis and robustness test suggested that none of these cryptocurrencies were safe haven assets during the whole observation. This indicates that investors who intend to seek safe haven investments were advised against investing in these cryptocurrencies.

The Effect of Organizational Politics on Budgetary Participation with Procedural Fairness as a Mediation

Organizational politics and budgeting are the phenomena that exist in every organization. This study aims to examine the effect of organizational politics on budgetary participation through procedural fairness. Organizational politics refers to three dimensions, namely general political behavior, politics of going along to get ahead, and politics of pay and promotion policies. Data were collected through a questionnaire survey to 128 managers in the retail sector of the modern supermarket in Bandung, West Java, Indonesia. The data was processed using the structural equation model and Sobel test. This study shows that, firstly, general political behavior, politics of going along to get ahead, pay and promotion policies have a negative effect on procedural fairness. Second, procedural fairness has a positive effect on budgetary participation. Third, procedural fairness mediates the relationship between each organizational political dimension and budgetary participation. This study supports the theory of organizational politics and procedural fairness and has the implications for budgeting practices, namely that it is important to consider employee's perceptions of organizational politics because it has an impact on reducing the sense of fairness and eventually on budgetary participation.

Determinants of Catastrophic Health Expenditure (CHE): An Indonesian Family Life Survey (IFLS) 2007 & 2014

This study aims at finding and analyzing the determinants of catastrophic health expenditure (CHE) and its impact on the household economy in Indonesia, using pooled cross section data from IFLS 2007 and 2014. The study used binary logit regression for analyzing the determinants of CHE and OLS regression to see the impact of CHE on household economy. It was found that the occupational status of the head of household, size of the household, age, ownership of insurance, visits to health centers, location of residence, and the interaction variable of educated household heads with chronic disease affect the occurrences of CHE with various threshold. The OLS regression results found that households who experienced CHE with a threshold of 10% and 40% made a reduction in their basic needs (food expenditure). It implies that households that experienced CHE also experienced economic shocks and they are eventually forced to reduce their basic needs (food expenditure) to meet health needs.

Determining Factors of Purchase Intention in Personalized Website Context for Indonesian Consumers

Personalized services can increase customer satisfaction, encourage emotional consumers, help consumers choose a product, and build relationships between service providers and consumers. This study combines the variables embedded in Technology Acceptance Model (TAM), Theory Planned Behavior (TPB), shopping experience, enjoyment, and trust in a research framework model, to examine factors determiningindividual purchase intentions with personalization features on online shopping sites. This study uses primary data obtained by the online survey method. The number of samples analyzed in this study is 303 e-commerce consumers in Indonesia. This study proves that consumer purchase intentions on websites with personalization are positively and significantly related to three factors: the perceived ease of use, perceived enjoyment, and trust. Furthermore, the results also show that the utilitarian value is more influential on these factors than the hedonic value. Further implications of the research results are also discussed in this paper.

Default Risk on Islamic Banking in Indonesia

The problem of default by debtors becomes a primary concern for Islamic banking recently. This study analyzes the effect of economic pressure on the risk of default on Islamic banks, both in the short and long term, the risk response of default, and also other variables' contribution in explaining the diversity of risk of default of Islamic banks. This study used monthly data from 2007 to 2020 by using a vector error correction model. The results show that inflation and exchange rates affect the risk of default in the short term, while inflation, exchange rates, and interest rates affect the risk of default in the long run. Non-performing financing quickly stabilized when responding to the interest rates. The Islamic stock index has the most significant contribution in explaining the diversity of default risks. Islamic banks must be aware of the monetary fluctuation and also careful in analyzing the demand for financing by looking at the future economic prospects.

Determinants of Transfer Pricing Aggressiveness with the Moderation of Corporate Governance in Indonesia and Malaysia

This research aims to analyze and empirically prove the effects of firm size, profitability, and leverage on transfer pricing aggressiveness moderated by corporate governance. It used a sample consisting of 73 multinational firms listed in both www.idx.co.id and www.bursamalaysia.com from 2018 to 2019. The data were analyzed using multiple linier regression and moderated regression analysis (MRA) to analyze and empirically prove the effects of firm size, profitability, and leverage on transfer pricing aggressiveness moderated by corporate governance. The results showed that leverage positively affected transfer pricing aggressiveness, whereas firm size and profitability did not. Corporate governance evidently weakened the effect of leverage on transfer pricing aggressiveness. This research contributes to increasing the state revenue through the taxation sector by exposing the determinants of transfer pricing aggressiveness that harm the state, and to assist public policy makers, especially those who are in charge of the policies related to transactions with special relationship.