Factors influencing financial statement disclosure: Empirical evidence from Indonesia
-
Author(s)Eka HariyaniLink to ORCID Index: https://orcid.org/0000-0003-2905-6289
,
Khoirul AswarLink to ORCID Index: https://orcid.org/0000-0003-2508-1161
,
Meilda WigunaLink to ORCID Index: https://orcid.org/0000-0001-8313-7501
,
Ermawati ErmawatiLink to ORCID Index: https://orcid.org/0000-0001-6307-817X
,
Yuneita Anisma
-
DOIhttp://dx.doi.org/10.21511/imfi.19(2).2022.20
-
Article InfoVolume 19 2022, Issue #2, pp. 230-237
- Cited by
- 684 Views
-
294 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Identifying the characteristics of Indonesian local governments that disclose financial statements looks relevant in order to find out the reasons for local governments in making policies to disclose financial statements. This study aims to examine whether financial condition, financial independence and political competition have an effect on the disclosure of financial statements in local governments, particularly districts/cities in Sumatra, Indonesia. A sample of 151 districts and cities on the Indonesian island of Sumatra were used in this quantitative analysis. The use of cluster sampling due to the implementation of accrual accounting based on the government regulation No. 71 of 2010 is applied in all districts/cities in Sumatra and has the same characteristics. The data analysis technique used in this study is a multiple linear regression with the SPSS test tool. The results reveal that factors influencing the financial statements disclosure is influenced by financial conditions (β = 0.095; p < 0.05), financial independence (β = 0.069; p < 0.05), and political competition (β = 0.038; p < 0.05). Overall, the results show a strong conclusion regarding the factors that affect the financial statements of the Indonesian government. The findings of this investigation can be a useful consideration for local governments in improving the quality of their external communications and improving public governance.
- Keywords
-
JEL Classification (Paper profile tab)G18, H83, M41, M48
-
References31
-
Tables4
-
Figures0
-
- Table 1. Summary of the final sample
- Table 2. Measurement of variables
- Table 3. Summary of descriptive statistics
- Table 4. Multiple regression test
-
- Aswar, K., Jumansyah, J., Mulyani, S., & Sumardjo, M. (2021). Moderating effect of internal control system to determinants influencing the financial statement disclosure. Investment Management and Financial Innovations, 18(3), 104-112.
- Aswar, K., Fanany, A. Y., Sumardjo, M., Wiguna, M., & Hariyani, E. (2022). Determinant factors on the disclosure level of local government’s financial statements in Indonesia. Public and Municipal Finance, 11(1), 1-9.
- Baimukhamedova, A., Baimukhamedova, G., & Luchaninova, A. (2017). Financial disclosure and the cost of equaity capital: The empirical test of the largest listed companies of Kazakhstan. Journal of Asian Finance, Economic and Business, 4(3), 5-17.
- Bardhan, P., & Yang T. T. (2004). Political competition in economic perspective. University of California at Berkeley.
- Badan Pemeriksa Keuangan Republik Indonesia. (2018). Summary of the 2018 Semester I Audit Results. Jakarta, Indonesia.
- Cinca, S. C., Tomas, M. R., & Tarragona, P.P. (2009). Factors influencing e-disclosure in local public administration. Environment and Planning C: Government and Policy, 27(2), 355-378.
- Ermawati, E. & Aswar, K. (2020). Assessing regional finance independence in Indonesian local governments. European Journal of Business and Management Research, 5(1), 1-5.
- Fuadi, M. Z., & Asmara, J. A. (2020). Audit findings on the level of disclosure of local government financial statements (case study of district /city governments in Aceh). Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi, 5(1), 96-106.
- Garcia, A. C., & Garcia, J. G. (2008). Determinants of internet financial disclosure by local governments. Spanish Journal of Fincance and Accounting, 37(137), 63-84.
- Garcia, A. C. (2010). Determinant of online reporting of accounting information by Spanish local government authorities. Local Government Studies, 36(5), 679-695.
- Ghozali, I., & Chariri, A. (2014). International Accounting Theory of Financial Reporting Standards. Semarang: Badan Penerbit Universitas Diponegoro.
- Giroux, G., & Deis, D. (1993). Investor interests and government accounting disclosure. Accounting, Auditing & Accountability Journal, 6(1), 63-78.
- Giroux, G., & McLelland, A. J. (2003). Governance structures and accounting at large municipalities. Journal of Accounting and Public Policy, 22(3), 203-230.
- Ingram, R. W., & DeJong, D. V. (1987). The effect of regulation on local government disclosure practices. Journal of Accounting and Public Policy, 6(4), 245-270.
- Kanapickiene, R., & Keliuotyte-Staniuleniene, G. (2019). Disclosure of non-current tangible assets information in local government financial statements: The case of Lithuania. Economies, 7(116), 1-25.
- Kasmir. (2009). Introduction to Financial Management. Jakarta: Kencana.
- Laswad, F., Fisher, R., & Oyelere, P. (2005). Determinants of voluntary Internet financial reporting by local government authorities. Journal of Accounting and Public Policy, 24(2), 101-121.
- Marsella, C., & Aswar, K. (2019). An investigation of financial statement disclosure in local government financial statements. International Journal of Business and Economic Affairs, 4(6), 273-281.
- Muñoz, L. A., & Bolívar, A. P. R. (2015). Determining factors of transparency and accountability in local governments: A meta-analytic study. Lex Localis, 13(2), 129-160.
- Nor, W., Hudaya, M., & Novriyandana, R. (2019). Financial statements disclosure on Indonesian local government websites: A quest of its determinant(s). Asian Journal of Accounting Research, 4(1), 112-128.
- Owusu-Ansah, S., & Yeoh, J. (2005). The effect of legislation on fourth amendment protection. Michigan Law Review, 41(1), 92-109.
- Patrick, P. A. (2007). The determinants of organizational innovativeness: the adoption of gasb 34 in pennsylvania local government. The Pennsylvania State University, United States, Pennsylvania.
- Peraturan Pemerintah (PP) Nomor 71 Tahun 2010 tentang Standar Akuntansi Pemerintahan.
- Pérez, C. C., Bolívar, M. P. R., & Hernández, A. M. L. (2008). E-Government process and incentives for online public financial information. Online Information Review, 32(3), 379-400.
- Persson, T., & Tabellini, G. (2000). Political Economics. London: MIT Press.
- Rahim, W. M., & Martani. D. (2010). Analysis of the influence of internet access levels, political competition, audit opinions, characteristics of local governments, and demographic characteristics on disclosure of financial and non-financial information on local government websites. Journal of Universitas Indonesia, 1-79.
- Styles, A.K., & Tennyson, M. (2007). The accessibility of financial reporting of US municipalities on the internet. Journal of Public Budgeting, Accounting & Financial Manajemen, 19(1), 56-92.
- Sumatriani, S., Pagulung, G., Said, D., Pontoh, G. T., & Jamaluddin, J. (2021). The effects of shareholders’ rights, disclosures, and transparency on firm value. Journal of Asian Finance, Economic and Business, 8(3), 383-390.
- Suparno, S., & Nanda, R. (2016). The effect of regional financial independence, functional differentiation and functional specialization on the level of mandatory disclosure of local government financial reports. Jurnal Dinamika Akuntansi & Bisnis, 3(2), 105-118.
- Tabash, M. (2019). An empirical investigation on the relation between disclosure and financial performance of Islamic bank in the United Arab Emirates. Journal of Asian Finance, Economic and Business, 6(4), 27-35.
- Tagesson, T., Klugman, M., & Ekstrom, M, L. (2013). What explains the extent and content of social disclosures in Swedish municipalities’ annual reports. Journal of Management and Governance, 17(2), 217-235.
-
Perceived health risk, online retail ethics, and consumer behavior within online shopping during the COVID-19 pandemic
Yuniarti Fihartini ,
Arief Helmi ,
Meydia Hassan ,
Yevis Marty Oesman
doi: http://dx.doi.org/10.21511/im.17(3).2021.02
Innovative Marketing Volume 17, 2021 Issue #3 pp. 17-29 Views: 4453 Downloads: 1707 TO CITE АНОТАЦІЯThe risk of virus contracting during the COVID-19 pandemic has changed consumer preference for online shopping to meet their daily needs than shopping in brick-and-mortar stores. Online shopping presents a different environment, atmosphere, and experience. The possibility of ethical violations is higher during online than face-to-face transactions. Therefore, this study was conducted to investigate the influence of perceived health risk and customer perception of online retail ethics on consumer online shopping behavior during the COVID-19 pandemic, involving seven variables, namely perceived health risk, security, privacy, non-deception, reliability fulfillment, service recovery, and online shopping behavior. The data were collected through an online survey by employing the purposive sampling technique to a consumer who has shopped online during the COVID-19 pandemic in Indonesia. 315 valid responses were obtained and analyzed through quantitative method using SEM-Amos. The results showed that perceived health risk and four variables of online retail ethics including security, privacy, reliability fulfillment, and service recovery affected online shopping behavior. Meanwhile, non-deception was found to have an insignificant effect. The coefficient value proved perceived health risk to be more dominant in influencing online shopping behavior than the variables of online retail ethics. Thus, consumers pay more concern for their health during online shopping. However, positive consumer perceptions of the behavior of online retail websites in providing services also can encourage consumers to shop online during this pandemic.
-
Human resource management in promoting innovation and organizational performance
I Gede Riana ,
Gede Suparna ,
I Gusti Made Suwandana ,
Sebastian Kot 
,
Ismi Rajiani
doi: http://dx.doi.org/10.21511/ppm.18(1).2020.10
Problems and Perspectives in Management Volume 18, 2020 Issue #1 pp. 107-118 Views: 3495 Downloads: 825 TO CITE АНОТАЦІЯHuman resource management (HRM) is one of the elements enabling an organization to remain competitive in turbulence conditions. The effective practice of HRM makes competent and innovative employees contributing to the achievement of organizational objectives. This study aims to analyze HRM practices in creating innovation and organizational performance. The questionnaire was used to measure the respondents’ perceptions of variables used by a Likert scale. A survey of 126 manager samples and middle managers at export-oriented short and medium enterprises (SMEs) in Bali, Indonesia, was conducted to test the model. The analysis has shown that the proposed model was proven to be compliant with the research hypotheses. HRM significantly affects organizational performance and innovation, and it was found out that innovation can improve organizational performance. However, in the process of simultaneous testing, it was found out that innovation cannot improve organizational performance. The lack of attention to investments in human resources became one of the barriers to SMEs in creating innovation.
-
Positive contribution of the good corporate governance rating to stability and performance: evidence from Indonesia
RR. Iramani , Muazaroh Muazaroh , Abdul Mongid
doi: http://dx.doi.org/10.21511/ppm.16(2).2018.01
Problems and Perspectives in Management Volume 16, 2018 Issue #2 pp. 1-11 Views: 3155 Downloads: 308 TO CITE АНОТАЦІЯThis paper aims to examine the impact of Good Corporate Governance (GCG) practice on bank stability and performance. Governance is measured using the GCG rating that covers eleven aspects. The authors apply instrumental regression to link governance to performance and stability. The study covers a sample of 150 banks. The result shows that bank stability can mediate bank governance and bank performance. On the determinant of bank performance, it can be concluded that the GCG rating is positive and directly influences bank performance. Bank stability is also positive for bank performance indicating the indirect contribution of the GCG rating to bank performance. NPL, LDR, CAR and bank’s size (LASSET) are all negative and significant. The aim of this paper is to provide strong empirical evidence on the importance of governance and stability for performance. The limitations of this paper are the size of the sample and that it only covers public banks which are theoretically required to apply better governance in all aspects of their business by the Capital Market Authority.
