Analysis the Effect of Financial Distress, Leverage and Free Cash Flow on Earnings Management

Objective - This study aims to determine and analyze the effect of financial distress, leverage, free cash flow on earnings management. Methodology/Technique – The object of this research is all companies listed on the Indonesia Stock Exchange with an observation period of 2019. The sample determination uses the purposive sampling method and a total sample of 124 companies is obtained. The analysis technique used is multiple linear regression analysis. Findings - The results show that financial distress has no significant effect on earnings management. Leverage and free cash flow have a negative and significant effect on earnings management. Novelty - This research contributes to signalling theory, which is used by company managers who have better information about their company will be encouraged to convey this information to potential investors where this is intended so that companies can increase company value by sending signals through financial statements of companies listed on the IDX. Type of Paper: Empirical. JEL Classification: G32, M21, M41, M42. Keywords: Financial Distress; Leverage; Free Cash Flow and earnings Management

Contingency E-Learning for Accounting: Effective Communication in the New Normal Era

Objective - The purpose of this research article is to examine the structural aspects of the contingent variables from the user side and the provider side of e-learning in accounting education and to explore and develop insights on how it can be applied to the changing ways of communication today in the new normal era. Methodology/Technique – We conducted research on e-learning users through 359 (three hundred and fifty nine) students majoring in accounting by using path analysis to obtain measurement results from 2 (two) structural equations. Findings - From the expectations of students as users of e-learning, it showed, first, there are no significance from relevant learning-teaching methods, students self-interest, outcome- based education (OBE) curriculum base, towards implementation of contingency e-learning . Otherwise, engagement within regulatory compliance as the only variable that can be used as an antecedent to predict the implementation of contingency e-learning. Second, relevant learning - teaching methods, and OBE curriculum base play a role in predicting the achievement of learning outcomes effectiveness. Novelty - This research provides insight and contribution to support the accounting education process that takes place in the new normal era after the Covid-19 crisis. Effective communication leads to the achievement of effective learning outcomes. This is explained by the role of engagement within regulatory compliance from students towards contingency e-learning in the accounting department as well as with the role of relevant teaching and learning, and the role of OBE curriculum as new insights from the facts of this research. Type of Paper: Empirical. JEL Classification: Keywords: Accounting E-Learning; Effectiveness of Learning Outcomes; Engagement of Regulatory Compliance; Learning Teaching Method; OBE Curriculum Base; Student Self Interest

Real Earnings Management: Do the Experience and Gender of Big4 Auditors Matters?

Objective - This study examines whether the experience and gender of auditors in Big4 firm in relationship of deterring Real Earnings Management (REM).Different from the majority of previous studies, this study focuses on auditors in Big4 audit firms and real earnings management within Malaysian business environment. Big4 audit firms are associated with high quality audit because of the reputation to uphold, thus adopted stringent quality control and assurance approach, systems and procedures. Once adopted, the effect of individual characteristics may become less important. Thus, it is questionable whether individual characteristics such as auditor experience and gender could still have an influence on the outcomes of an audit, in this case, REM, when the audit firms are Big 4 (assuming very stringent quality control procedures are adopted). Methodology/Technique –This study substantiates prior literature and conducted tests only on companies audited by Big4 audit firms. We also find that auditor experiences confirms to Agency Theory where REM reduces when the experience increases. Data was obtained from the Companies Commission of Malaysia (SSM), DataStream and Bursa Malaysia. Findings - The result confirms prior literature that auditor experience is still an important factor that can limit REM, even in companies audited by the Big4 firms. The results however reveal that Big4 female auditors do not have any significant effect in reducing REM. Novelty -Although female auditors are claimed by Gender Socialization Theory, to have better moral judgments than male auditors, the result shows both genders are equal, at least in limiting REM. Type of Paper: Empirical. JEL Classification: M40; M41; M42 Keywords: Big4 Auditors; Auditor Experience; Real Earnings Management; Auditor Gender; Bursa Malaysia

Green Intellectual Capital on Value Relevance in Indonesia’s Manufacturing Companies

Objective - Corporate concern for the environment is an important stakeholder demand. A company is obliged to preserve the environment with various investments, one of which is green intellectual capital to maintain the sustainability of the company, especially for companies that carry out their business activities in countries that are in conditions of high pollution such as Indonesia. The importance of green intellectual capital investment information for stakeholders can be seen from the value relevance of the information. This study aims to examine and analyze the effect of investment in green intellectual capital, which consists of the following dimensions: human, structural, and relation to value relevance. Methodology/Technique – This study will explain the causal relationship between the independent and the dependent variables through hypothesis testing based on the theory that has been formulated with data that obtained and tested through quantitative panel data testing. Findings - The results of a survey of 515 samples of data from a population of 183 manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2015-2019 found that green intellectual capital with its three dimensions had a significant positive effect on value relevance. This study also proves that green structural intellectual capital has influenced more on value relevance than human and relation intellectual capital. Novelty - The measurement of variables is green intellectual capital and value relevance in this study develops previous research with related government conditions and regulations in Indonesia. Green intellectual capital investment is measured by using content analysis from disclosures in annual reports and sustainability reports, and value relevance is measured by the Olhson model with beta correction by the stock market in Indonesia. Type of Paper: Empirical. JEL Classification: G32, O34 Keywords: Green Intellectual Capital; Value relevance; Human Capital; Structural Capital, Relational Capital

Analysing SST 2.0 Burden Using the Guiding Principles of Good Tax Policy

Objective - Since the 70s, the Malaysian government has been focusing on sustainable development to improve society's economic well-being. In September 2015, Malaysia reaffirmed this commitment with the other United Nations countries by putting the 2030 Agenda for 17 Sustainable Development Goals (SDGs) into action and focusing on the bottom 40% households (B40). Unfortunately, the implementation of Goods and Services Tax (GST) on 1 April 2015 and followed by the Sales and Services Tax (SST) 2.0 on 1 September 2018 has impacted all income groups, especially the B40, with a claim that indirect tax is regressive and burdensome (MIER, 2018). Hence, the present study aims to analyse SST 2.0 tax burden using the elements of the guiding principles of good tax policy. Methodology/Technique - In this quantitative study, the researchers distributed questionnaires to the B40, M40, and T20 groups throughout Malaysia. Evidently, the government should consider reducing the SST 2.0 tax rate to minimise the tax burden of all groups of income earners based on the ability to pay. Findings - Furthermore, the efficiency of tax administrations is vital to strengthen the enforcement function in controlling the prices of goods and services. The findings can provide useful feedback to policymakers and tax authorities in designing a progressive indirect tax. Novelty - The policymakers should also consider the new SST model and propose relevant social safety net programmes to enhance economic well-being and eradicate inequity. Type of Paper - Empirical. Keywords: SST 2.0; GST; Tax Burden; B40; Guiding Principles of Good Tax Policy. JEL Classification: H31.

Enhancing Financial Reporting Quality through Corporate Ethics Commitment

Objective - A rising number of cases involving ethical misconduct within firms have of late received considerable attention in Malaysia. Despite the country's declaring having a strong corporate governance policy, strengthened through the Code of Ethics for Company Directors and Malaysia Code of Corporate Governance, unethical practices, and lack of integrity within firms remain an issue. This paper aims to review the current implementation of corporate ethical conducts among corporate governance practitioners as well as factors that influence corporate ethics commitment in a firm. Methodology/Technique - This paper is developed from extensive readings of previous literature on corporate governance practices and their effect on the quality of financial reports. Findings - This paper discloses collective approaches of corporate ethics practiced in Malaysian firms and how the implementation has enhanced the firms' overall financial reporting quality. It demonstrates current issues and the importance of corporate ethics commitment to enhance financial reporting quality. Firms that emphasize ethical commitments, reduce the risk of financial statement fraud and firms will naturally gain trust from their stakeholders. Novelty - This paper stresses the importance of sound ethical conduct above other factors that influence the financial reporting quality of firms in Malaysia. This paper is the result of extensive research on corporate ethics commitment and financial reporting quality. Type of Paper - Review. Keywords: Corporate Ethics; Corporate Governance; Financial Reporting Quality JEL Classification: G34, M41.

An Examination of Taxpayers Attitude towards Income Tax: A Case of Bangladesh

Objective - Taxation is the government's primary source of revenue, but it is unable to raise this revenue from the general public. The major goals of this article are to determine the taxpayers' attitudes toward income tax in Bangladesh, as well as the factors influencing taxpayers' behavioral intentions regarding tax evasion and avoidance. Both qualitative and quantitative research methods were used in this study. Methodology/Technique - The respondents' primary data was acquired by a standardized written questionnaire and a face-to-face viva. To complete the job, the study used purposeful random sampling, which resulted in the selection of 150 individuals from various occupations. After gathering data, it was examined using several statistical methods. Findings - The study's findings reveal a significant negative relationship between taxpayer attitudes regarding tax evasion and tax compliance behavior, as well as the fact that taxpayer attitudes and conduct differ by occupation, resulting in diverse tax evasion and avoidance trends. Novelty - This study will aid the government authority and the National Bureau of Revenue in monitoring taxpayer attitudes and improving tax collection by reducing taxpayers' negative attitudes toward taxes and getting more people to file tax returns. Type of Paper - Empirical. Keywords: Taxpayers; Attitude; Income tax; Bangladesh. JEL Classification: H21; H24: H26.

The Meaning of "Accounting" In a Religious-Based Organization

Objective - Accounting has been defined as the art of recording since it is trapped at a technical level. However, accounting as a symbol have different meanings for different people depending on one's interests, goals, knowledge, and perspectives. The aim of this study was to better understand the meaning of accounting in religious organizations, especially in pesantren (Indonesian Islamic boarding schools). Methodology/Technique - In the interpretive paradigm, this study uses Husserl's transcendental phenomenological theory. Data analysis begins with identifying noema (texture analysis), then obtaining noesis through bracketing (structural analysis). Furthermore, understanding the noema-noesis relationship results in deliberate analysis. Finally, the whole process of generating pure consciousness is called eidetic reduction. Findings - Each informant has a different meaning to accounting depending on individual experience. Beyond materialism, the meaning of accounting is fascinating. According to the findings of the study, accounting has two meanings: first, accounting is ikhlas (sincere), and second, accounting is a discipline. Novelty - Accounting will not be separated from theology and spirituality, especially accounting applied in religious organizations. Based on the experience of "I", accounting has a different meaning from conventional accounting. Type of Paper - Empirical. Keywords: Accounting; Interpretive; Pesantren; Transcendental Phenomenology. JEL Classification: M41, M49.