Positive contribution of the good corporate governance rating to stability and performance: evidence from Indonesia

The main objective of this research is to study the role and impact of fiscal decentralization on the macroeconomic stability of the country. The paper analyzes and systematizes approaches to the definition of ‘macroeconomic stability’ concept. The key factors that impact macroeconomic stability are identified. In the framework of this research, the authors identify fiscal decentralization as one of the factors affecting macroeconomic stability. To determine the strength and statistical significance of the above mentioned relationship, the authors suggest presenting macroeconomic stability as a functional dependency between macroeconomic stability and the level of fiscal decentralization, which is described by the following variables: the growth rate of money supply, investment and openness of the economy, fiscal decentralization. In this case, it is suggested to determine the level of fiscal decentralization in three directions: expenditure decentralization, revenue decentralization and expenditure decentralization simultaneously.

The release of bank’s intellectual capital is one of the important elements of bank’s annual reports. Although it is not presented adequately in the annual reports, voluntary disclosure of bank’s intellectual capital relatively represents the response to the needs of greater information for the users. This research aims to see the influence of corporate governance on the intellectual capital disclosure based on a case study on private banks in Indonesia. The variables to be examined in the research include the Composition of Independent Commissioners as well as The Competence of Audit Committee and Risk Oversight Committee. The samples were taken using purposive sampling, considering particular criteria. As many as 62 banks are selected to be taken as research samples. The data were analyzed using multiple linear regression analysis method. The result of a partial test shows that the Composition of Independent Commissioners has a positive and significant influence on the intellectual capital disclosure; the Competence of Audit Committee has a positive and significant influence on the intellectual capital disclosure; and the Competence of Risk Oversight committee does not influence the intellectual capital disclosure. Meanwhile, the result of a simultaneous test shows that the Composition of Independent Commissioners, the Competence of Audit Committee, and the Competence of Risk Oversight Committee significantly influence the intellectual capital disclosure.

Employee engagement affects the Employer Commitment which has influence on the expression desired by someone in relation to their professional attitude, connecting the work with personal life for psychological, cognitive, emotional, and their personal feelings as a whole, so that employees engagement towards a company will drive the employees’ performance. This is proved by the previous studies, but they have not included individual factors as the force that forms employee engagement or organizational commitment, specifically because seeing how the consequences of employee engagement produced. In this study, the authors consider the influence of individual factors towards organizational commitment mediated by employee engagement, which distinguishes this study from the previous ones. The objectives of this study are: first, to discover how individual factors affect employee engagement; second, to find out how employee engagement affects Organizational Commitment of employees; Third, to discover how individual factors affect organizational commitment. This study is conducted among the respondents all of whom are employees within MICE industry in Indonesia using questionnaire. Data analysis in was performed this study using Structural Equation Modeling (SEM) method. The results of this study show that high individual factors will form high employee engagement, high employee engagement will form high organizational commitment, and high individual factors will form high organizational commitment. In this study, it is found that there is an influence of individual factors towards organizational commitment mediated by employee engagement.