THE ROLE OF CORPORATE SOCIAL RESPONSIBILITY AS MEDIATION IN INDONESIA

This study examines the direct and indirect relationships between the quality of corporate governance and company performance with CSR as mediation. A better quality of corporate governance means the more fulfilled of stakeholder’s interest so that it will give positive impact on the company performance. Data of corporate governance quality and CSR were obtained by carrying out a content analysis on the company’s annual report for 2016. The analysis was done based on a template developed by the Forum for Corporate Governance in Indonesia (FCGI) and GRI Index. The results show that companies that disclose information about CSR activities have better performance than those that do not perform it. Such information is considered as a sign that the company has fulfilled all stakeholders’ interests. Furthermore, the results also show that corporate governance quality does not affect the level of company performance. Nevertheless, this research cannot prove the indirect relationship of CSR on the interaction between corporate governance and company performance in Indonesia.

ANALYSIS OF LEADING SECTORS IN SOUTH TANGERANG FOR DETERMINING REGIONAL DEVELOPMENT PRIORITIES

A sustainable economic growth becomes a main requirement for the continuity of regional economic development. Therefore, it should be concentrated on the basic sectors or leading sectors in order to create significant multiplier effect on other sectors. It is urgency for newly established regions, e.g., South Tangerang. This study aims to determine and analyze leading sectors that possess competitiveness and specialization in South Tangerang in relation with the future economic growth of South Tangerang. In addition, it also aims to project the added value or GRDP of South Tangerang in 2017. Secondary data in the form of time series sectoral GRDP at constant prices of both South Tangerang and Banten from 2010 to 2016 were obtained from BPS South Tangerang City and BPS of Banten Province. The data were analyzed using a quantitative- descriptive approach through the Location Quotient (LQ) and Shift-Share analysis. Based on the LQ method, there are nine leading sectors in 2010—2016, namely: construction; wholesale and retail trade, and repair of motor vehicles and motorcycles; accommodation and food; information and communication; real estate; corporate services; educational services; health and social services; and other services. The average LQ for these sectors is, respectively, 1.490; 1.333;1.315; 2.969; 2.233; 3.299; 2.530; 3.663; and 2.014. Real estate has the highest values, indicating it becomes the leading sector with the highest competitive and comparative advantages.

THE EFFECT OF PROFESSIONAL SKEPTICISM, EXPERTISE, AUDIT FEE, AND AUDIT RISK ON AUDITOR’S OPINION WITH CLIENT PREFERENCE AS MODERATOR

The purposes of this study are to determine the effect of professional skepticism, expertise, audit fee, audit risk on the auditor’s opinion, and to determine preference client as the moderating variable on the effect of professional skepticism, expertise, audit fee, and audit risk on the auditor’s opinion. It is an empirical study on the public accountant firms and the Audit Board of the Republic of Indonesia (BPK RI) Representative Office in Palembang, South Sumatra, Indonesia. This study developed associative hypotheses and tested them. The data consisted of primary data and secondary data. The population of this research was the auditors of public accountant firms and BPK RI in Palembang. Totally, 111 respondents were involved. The techniques used for collecting the data were in-depth interviews, questionnaires, and documentation. The techniques used for analyzing the data were quantitative analysis and qualitative analysis. This study indicates that professional skepticism insignificantly affects the auditor’s opinion, expertise significantly affects the auditor’s opinion, audit fee significantly affects the auditor’s opinion, and audit risk significantly affects the auditor’s opinion. Furthermore, there is no significant relationship on the auditor’s opinion from the interaction between the client preference and professional skepticism and expertise. Meanwhile, client preference is a quasi-moderator on the influence of audit fee and audit risk on the auditor’s opinion.

MICRO SMALL ENTERPRISES’ INTEREST IN ISLAMIC FINANCING: CASE OF MSEs AND ISLAMICS BANKS IN YOGYAKARTA

The development of the micro and small enterprises (MSEs) in Yogyakarta City grew rapidly and was able to support the economic sector of the city. Nevertheless, they usually face some problems related to limited capital, market access and product quality. Islamic banking is expected to play a role in overcoming such problems, especially in providing capital to improve the product quality and market access. This study aims to acquire the empirical evidence of the effect of profit sharing, personal, and service factors on the MSEs’ interest in Islamic financing provided by Islamic banks in Yogyakarta City.This study employed a survey method using a research questionnaire distributed to MSE entrepreneurs in Yogyakarta City. The source of data was primary data and the data was analyzed using SPSS software. Of the total 70 distributed questionnaires, only 60 were responded and collected by the respondents. The data analysis techniques included data quality testing, classical assumption test, and hypothesis testing (Multiple Regression Analysis, Coefficient of Determination, F-Test, and T-Test).The results showed that profit sharing, personal factors, and service influence the MSEs’ interestin Islamic bank products provided by Islamic Banks in Yogyakarta City.

PROVINCIAL CAPITAL EXPENDITURE AND THE FACTORS INFLUENCE THE BUDGET: BEFORE AND AFTER THE GOVERNOR ELECTION

This study aims to find out factors that have influence on capital expenditure in provincial government before and after the Governor election. It involved 32 provincial governments in Indonesia as the sample. The sampling technique was purposive sampling. The secondary data was obtained from the report of budget realization of provincial government in Indonesia. The methodology of analysis was multiple linear regression analysis. The result of this study shows that both local revenue and area size have positive effect on capital expenditure. Meanwhile, Special Allocation Fund has negative effect on capital expenditure. In overall, the independent variable explains 65.9% of the dependent variable, while the rests are influenced by other variables not analyzed in this study.

DIGITALIZATION OF MICRO, SMALL & MEDIUM ENTERPRISES (MSMEs) IN EAST JAVA, INDONESIA

This study attempts to provide an overview of the digitalization of MSMEs in East Java. It is a qualitative descriptive study in which the data were collected through surveys with simple random sampling method. Basically, 80 percent of MSMEs have integrated digital literacy, particularly in the context of product marketing, into their strategy, yet only 12 percent have carried out it professionally. In East Java, 70 percent of MSMEs emphasize digital marketing through social media platforms, i.e., Instagram and Facebook, while 30 percent prefer mixed method. This study also reveals that either using a single platform or multi platform, it statistically has insignificant effect on the ratio of online transactions. Nevertheless, there is a significant positive effect between the ratio of online transactions and the management quality of digital marketing.