Board Diversity and Environmental Disclosures: A Study of Indonesian Listed Companies

This research examines whether the diversity of boards of commissioners and boards of directors affects environmental disclosures. We include all non-financial firms listed on the Indonesian Stock Exchange during 2018-2020 and use the generalized least square (GLS) model. Our findings show that the diversity of age and ethnicity of both the board of commissioners and the board of directors positively influences environmental disclosures. Further, while boards of directors' gender diversity positively affects environmental disclosure, there is no support for the impact of boards of commissioners on the disclosures. Lastly, there is no empirical support for the influence of directors' or commissioners' nationality on the companies' environmental disclosures. The findings highlight the importance of promoting board diversity on both boards of commissioners and directors

IFRS vs. Japanese GAAP Tested with Value Relevance Methodology

This study is one of the first empirical evaluations of voluntary IFRS adoption in Japan, and it shows that the earnings announcements of Nikkei 225 firms using IFRS have higher value relevance than earnings announcements of Nikkei 225 firms using Japanese GAAP (earning announcements from 2008-2022). This study uses value relevance methodology that relates surprise earnings (calculated with Bloomberg-compiled analyst earnings expectations) to abnormal returns over the 12 months before the announcement, a methodology evolved from the seminal work of Ball and Brown (1968). Another finding here is the strength of qualitative variables to measure surprise earnings. Japan represents a unique opportunity to compare IFRS to a local standard in a large, developed economy using similar companies except for the accounting standard. These results provide essential data to the IFRS literature, stakeholders navigating the Japanese accounting environment, and other jurisdictions weighing the benefits of IFRS

The Influence of Corporate Social Responsibility (CSR) Expenditure Elements on Debt Financing and The Moderating Role of Accounting Conservatism

This research aims to analyze the influence of CSR expenditure elements on debt financing with accounting conservatism as a moderating variable. This research uses a quantitative approach by collecting secondary data from sustainability reports, financial reports, and annual reports taken from the Indonesia Stock Exchange website and the web pages of each company. The research sample covers the observation period 2020-2022. Using company data registered on IDX and publishing sustainability reports on the company website. The research sample was obtained using purposive sampling, and 213 observation samples were obtained. The research results show that the element of CSR performance, namely environmental expenditure, hurts debt financing. Meanwhile, elements of social expenditure and economic expenditure from CSR have a positive effect on debt financing. The results of the moderation test show that the influence of environmental expenditure and debt financing cannot be moderated by accounting conservatism. Meanwhile, accounting conservatism can moderate the influence of social expenditure and economic expenditure on debt financing. The first two implications of this research are the transparency of CSR activities in environmental, social, and economic expenditure, which is a positive signal of external parties' trust in the company's debt financing policy. Second, a high level of accounting conservatism considers the interests of stakeholders who strengthen CSR policies in that social and economic expenditures influence corporate debt financing decisions

Don’t Ask, Don’t Tell: A Study on Whistleblowing Behavior in Indonesia State-owned Enterprises

Employees or subordinates can potentially engage in unethical behavior with their superiors both for themselves and their superiors, even though it can be detrimental to the organization as a whole. This study examines perceived supervisor support's effect on whistleblowing intentions through employee reciprocity. The method used was an online survey via Google Forms to employees of Indonesian state-owned enterprises. Of the 309 questionnaires obtained, only 279 questionnaires could be analyzed using a two-stage Partial Least Square Structural Equation Modeling (PLS-SEM) technique to test the hypotheses. The results show that perceived supervisor support does not directly affect whistleblowing intentions; it has an indirect and significant negative effect on whistleblowing intentions only through employee reciprocity. The findings of this study are expected to contribute theoretically and empirically to the fields of management accounting and business ethics

Does Corporate Social Responsibility Matter in Moderating the Relationship Between Earning Management and Financial Performance? Evidence from Indonesia

This research aims to analyze the impact of earning management on financial performance and determine if corporate social responsibility plays a moderating role. The study also aims to identify whether Indonesian companies engage in earnings management FOR efficient or opportunistic reasons. This paper adopted a quantitative approach and collected data from secondary sources such as annual financial reports, sustainability reports, or CSR reports, accessed via the Indonesia Stock Exchange website (www.idx.co.id) and the Thomson Reuters database. Samples are derived from the non-financial sector from 2018 to 2021, resulting in 1.784 observations. The research shows that earnings management practices positively and significantly affect financial performance. This means that the greater the earnings management, the higher the financial performance. However, the study finds that CSR cannot moderate the relationship between earnings management and financial performance. This research concludes that the earnings management practices of sample companies in Indonesia tend towards efficiency motives because there is a positive relationship with financial performance. This suggests that earning management practice in Indonesia is a positive signal to investors. However, results demonstrate that CSR cannot moderate the relationship between earnings management and financial performance due to Indonesia's low level of CSR disclosure. Thus, Indonesian companies are encouraged to provide comprehensive and detailed disclosure of their CSR engagements

Assessing The Impact of Capital Structure on Firm Value: A Quantitative Study of Financial Ratios and Stock Prices of Nigeria Food and Beverage Companies

This article evaluates the impact of capital structure (CS) on firm value (FV) in Nigeria's food and beverage sector. A quantitative research approach is employed, focusing on the association between financial ratios (debt to equity (DER), return on asset (ROA), current ratio, asset growth, and firm size) and stock prices as a proxy for firm value (FV). Panel data were sourced from financial statements of sixteen (16) publicly listed food and beverage companies in the Nigeria stock exchange from 2017 to 2021, and data were analyzed using statistical software. The descriptive statistics reveal the characteristics of the variables, showing variations in stock prices, ROA, current ratio, asset growth, firm size, and DER. Regression analysis using the random effects model demonstrates the significance of firm size on stock prices. At the same time, other variables (current ratio, ROA, debt to equity, and asset growth) are found to be insignificant. The research concludes that firm size has an unfavorable relevance impact on stock prices, showing that bigger firms tend to have lower stock prices. The findings contribute to the understanding of the connection between capital structure (CS) and firm value (FV) in the Nigerian food and beverage industry, providing insights for data-driven decision-making in the industry

The Moderating Role of Independent Commissioners on the Effect of Family Ownership on Social Disclosures

This study aims to empirically test the effect of family ownership on social disclosures with independent commissioners as a moderating variable. Our research sample is 98 Indonesian financial firms listed on the Indonesian Stock Exchange (IDX) in 2018-2021, resulting in 389 firm-year observations. We measure social disclosures using the weighted scores of 52 indicators of the 2018 Global Reporting Initiative (GRI), which can be broken down into four aspects: labor practices and decent work, human rights, society, and product responsibility. Family ownership is divided into direct and indirect family ownership. This study tests the research hypotheses using panel-data regression analysis. Our results reveal that firms with higher total and direct family ownership engage in lower social disclosures. On the other hand, indirect family ownership positively affects social disclosures. Independent commissioners motivate financial firms to engage more in social disclosures and moderate the impact of family ownership on social disclosures. Specifically, they make the effect of family ownership on social disclosures positive. Firms with a greater proportion of independent commissioners exhibit a stronger effect of family ownership on social disclosures. Based on the social disclosure aspects, family-owned firms tend to avoid social disclosures related to human rights, and independent commissioners motivate family firms to disclose more, especially those related to labor practices and decent work. Overall, our findings support the type II agency theory, arguing that family owners as majority shareholders increase agency conflicts by reducing social disclosure activities

Do Performance Measurement Systems and Ethical Leadership Style Affect Sustainable Investment Decisions? An Experimental Evidence

Management accounting is expected to be one of the significant tools to tackle environmental and sustainability issues. This study aims to fill the gap in the empirical results about the effect of performance measurement systems that include financial and sustainability indicators, one element of management accounting, on sustainable investment decisions. Additionally, this study examines whether ethical leadership plays a prominent role in that relationship. This study used an experimental method with 67 students majoring in accounting as participants. The data was collected online, where requirements for conducting an experimental study were fulfilled. The results of this study support the hypothesis that managers will be more likely to make sustainable investment decisions when their performance is evaluated using financial and sustainability performance measurements compared to that of financial performance measurement alone. Additionally, the effect is higher when their top managers perform high ethical leadership. The paper fills the gap in the literature about the effect of performance measurement and reward systems (PMRS) on sustainable investment decisions. This paper specifically gives direction for the business on how to react and take action amidst the sustainability era

Computerized Accounting Integration into High School Curriculum Delivery: Benefits and Barriers

Education without integrating computer applications in this 21st century deprives learners of the experience and exposure of linking education to real-world job processes. In South Africa, higher education institutions have long integrated computerized accounting systems into their accounting qualifications curriculum. However, that is not the case with the high school accounting curriculum. This paper aims to investigate the benefits and barriers of integrating computerized accounting into the high school accounting curriculum. This is a case study design. Data was collected from purposively selected high school accounting teachers using semi-structured interviews. The interview transcripts were entered into the Atlas.ti software. The discourse analysis method was used to interpret and evaluate the meaning of emerging themes. The findings indicate that integrating computerized accounting into curriculum delivery would develop interest and positive attitudes among learners towards accounting, enhance their understanding of accounting principles, improve their academic performance, and attract them into the accounting profession. Unavailability of resources and lack of funding were identified as barriers that can impede the integration of computerized accounting into high school curriculum delivery

Concentrated Ownership and Corporate Social Responsibility: Insights from Indian Companies

This study examined the complex relationship between ownership structures, family business dynamics, group affiliations, and Corporate Social Responsibility (CSR) expenditures on the Indian market from 2010 to 2022. Using 10,684 observations representing 1,882 Indian companies, this study analyzed block-holder investment size, coalition effect, and contestability factors. This study hypothesized and found empirical evidence indicating that family businesses with substantial promoter holdings allocate fewer resources to CSR, primarily due to their propensity to maintain control and conserve resources. In addition, the study reveals the significant effects of power dynamics within organizations, competitive landscapes, and group affiliations on CSR initiatives. The findings are important to various stakeholders, including retail and institutional investors, government bodies, non-governmental organizations, consumers, and suppliers, as they provide insights to advance responsible business practices and foster a more sustainable and socially responsible business environment