Az indonéz kormányzati szektor belső kontrollrendszere és az önkormányzatok igazgatási teljesítményének kapcsolata

A tanulmány az önkormányzati belső kontrollrendszereknek az önkormányzatok igazgatási teljesítményére gyakorolt hatását vizsgálja Indonézia példáján. A szerzők a Belügyminisztérium, a Pénzügyi és Fejlesztési Felügyelet, a Statisztikai Hivatal, valamint az önkormányzati pénzügyi beszámolók és weboldalak másodközlésű adatait használták fel. 508 önkormányzatnak a 2017–2019-es időszakra vonatkozó 1524 adatsorából adatbázist hoztak létre, és az adatok közötti összefüggéseket elemezték. A cikk bemutatja, hogy 2017–2019 között több önkormányzat még mindig alacsony vagy közepes igazgatási teljesítményt nyújtva működik, ami nem elégíti ki a Belügyminisztérium 2015. évi stratégiai tervében meghatározott elvárásokat. Elemzésünk empirikus bizonyítékot nyújt arra, hogy a belső kontrollrendszer három eleme: a kontrollkörnyezet, a kockázatelemzés, valamint az információ és kommunikáció pozitívan hat az önkormányzatok igazgatási teljesítményére. Eredményünk segítséget kíván nyújtani a Pénzügyi és Fejlesztési Felügyeletnek, hogy folyamatosan optimalizálja az indonéz önkormányzatok belső kontrollrendszerének fejlesztésére irányuló programjait, illetve a Belügyminisztériumnak, hogy nagyobb hatást gyakorolhasson az önkormányzatok igazgatási teljesítményére

Government Internal Control System and Local Government Administration Performance: Evidence from Indonesian Local Governments

This study investigates the effect of local government internal control systems on local government administration performance. We use secondary data from the Ministry of Internal Affairs, Financial and Development Supervisory Agency, Indonesian Statistics Bureau, and respective local government financial statements and websites. We generate a set of panel data from 508 local governments during 2017-2019 with 1524 observations analysed with panel data regression. We evidence that several local governments still have low and medium administration performance in 2017-2019 that has not met the expectation of the Ministry of Internal Affairs as stated in the strategic plan in 2015. Our analysis provides empirical evidence that control environment, risk assessment, and information and communication positively affect local government administration performance. Our result provides implications to the Financial and Development Supervisory Agency to continuously optimise internal control system development programs in Indonesian local governments and the Ministry of Internal Affairs to have higher enforcement of local government administration performance achievement

Board Diversity and Sustainability Reporting: Empirical Evidence from Indonesian Listed Banks

Sustainability reporting has gained a significant attention due to its importance for sustainable development goals. Following the increased concern of sustainability reporting in Indonesian business, this study examines the effect of board of commissioner’s diversity on sustainability reporting in Indonesian listed banks. The study explores the topics by following the concept of agency theory. Our study employs secondary data obtained from the annual and sustainability reports from 2014-2018. By using purposive sampling method, the study generates 210 observations in which the analysis is conducted with panel data regression using STATA statistics software. Our study finds that the sustainability reporting implementation of by Indonesian listed banks is still considerably low. There is also no significant improvement since the release of roadmap for sustainable finance in 2014 that enforce sustainability reporting for banking sector. Panel data regression analysis reveals that board’s gender diversity exhibits positive effect on sustainability reporting. Meanwhile, board’s diversity in nationality, age, and education have no significant effect on sustainability reporting practice. The insignificant effect may be due to the fact that the board is still dominated by of local board members, older board members, and board members with business education background. Based on our findings, we suggest the Indonesia Financial Service Authority (OJK) as the capital market regulator to improve firms' understanding about sustainability reporting and apply higher enforcement of its implementation. The OJK can optimize the role of board diversity as it has not contributed significantly to improving sustainability reporting practice. Further, future studies can be improved by employing mixed method by combining quantitative and qualitative analyses and also extending the coverage of the study

DETERMINANTS OF AUDIT QUALITY: THE EFFECT OF OWNERSHIP STRUCTURE AND AUDIT COMMITTEE ACTIVITIES

This study examines the effect of ownership structure and audit committee activities on audit quality in Indonesian listed companies. The ownership structures studied consisted of managerial, institutional, government, foreign, and family ownership. The population of our study consists of 506 listed companies in Indonesian Stock Exchange between 2015 and 2020 with 317 total samples. Audit quality is proxied by the earnings surprise benchmark. Ownership structure is measured using the percentage of ownership. Audit committee activity is measured using the number of meetings held. Research data is analyzed with logistic regression analysis using SPSS statistic program. Our findings suggest that managerial, institutional, foreign, and family ownership as well as audit committee activities significantly affect audit quality while government ownership does not have significant effect. The findings of this research are designed to give information and feedback on the company's shareholders, assist the organization in delegating audit committee responsibilities, and provide readers with extra knowledge

DOES CORPORATE ENVIRONMENTAL MANAGEMENT DISCLOSURES IMPROVE CORPORATE PERFORMANCE? EVIDENCE FROM FTSE 100 MALAYSIAN FIRMS

This research paper aims to determine the linkage between corporate environmental management disclosure and firm financial performance by using the sample of top 100 public listed companies in Bursa Malaysia from the period 2012 to 2017. Therefore, the independent variables selected in this paper are corporate environmental management systems (CEM) which can further be classified as water management (WM), energy management (EM) and carbon management (CM). Meanwhile, the dependent variables are; return on equity (ROE), return on sales (ROS), return on investment (ROI), return on invested capital (ROIC) and capital intensity (CI). Besides that, firm characteristics have been added in this paper as control variables, namely; firm liquidity, size, leverage and age. All the data used in this paper were manually gathered from annual reports of respective companies and Thomson Reuters Eikon Database. The empirical analysis indicated that carbon management is significant to firm financial performance (ROE, ROIC). This might be due to the Malaysian government actively engaging in carbon emission reduction programmes; hence firms will be more aware and put more effort into carbon management. The findings recommended that the corporate environmental management disclosure should be one of the core concerns for shareholders, policymakers and investors

The Effect of Corporate Governance on Corporate Fraud in Indonesian-Listed Banks: Sustainability Reporting as a Mediator

The study investigates the effect of corporate governance on corporate fraud mediated by sustainability reporting and moderated by foreign ownership in Indonesian listed banks. A set of data from 42 listed banks during 2010-2018 with a total of 330 observations are analysed with ordered logistic regression using STATA. This study concludes that sustainability reporting practice in Indonesian listed banks is still considerably low despite the fact that the banking sector is selected by the capital market regulator as the first sector to initiate sustainable finance implementation. The result demonstrates that corporate governance has a significant negative effect on corporate fraud. However, sustainability reporting exhibits no significant mediating effect, implying that the practice is not optimum. Foreign ownership also shows no significant moderating role in the effect of corporate governance on corporate fraud mediated by sustainability reporting, probably due to the ownership origins that mostly come from other Asian countries with similar business characteristics. Based on the results of this study, the implementation of sustainability reporting in Indonesia should be improved to ensure that the reporting entity obtains maximum benefit from it, both internally and externally. This study contributes to fraud literature by providing new insights regarding the effect of sustainability reporting in fraud management following the limited studies in the field in the Indonesian context