Analyzing the determinants of financial distress in Indonesian mining companies

Purpose: The objective of the study is to analyze the effect of leverage, liquidity and managerial ownership on financial distress at mining companies in Indonesia. The study also examines the moderating role of profitability on the effects of leverage, liquidity and managerial ownership on financial distress. Design/Methodology/Approach: The population of this study is 41 mining sector companies listed in Indonesian Stock Exchange in 2013-2015. There are 17 companies as the sample of the study taken by purposive sampling method; then there are 51 units of analysis which are suitable to the predetermined criteria. Data are analyzed by descriptive statistical analysis and logistic regression for inferential conclusions. Findings: The results of the study show that the leverage has a positive effect on financial distress. Then, liquidity and managerial ownership do not have any effect on financial distress. Furthermore, profitability as the moderating variable is not proven to moderate the effect of leverage and managerial ownership on financial distress. However, profitability is proven to moderate significantly the effect of liquidity on financial distress. Practical Implications: This study has the guidance and or feedback to the company management to avoid financial distress. Originality/Value: The research places profitability as the moderating variable to analyze the simultaneous effect among leverage, liquidity, managerial ownership with profitability on financial distress. Then, it takes the mining sector companies as the sample to be analysed.peer-reviewe

Board characteristics, audit committee and audit quality : the case of Indonesia

The purpose of this research is to examine the relationship between board size, number of non-executive directors, the financial expertise of the non-executive directors representing the audit committee and the audit quality. Data from non-financial firms listed in the Indonesian Stock Exchange have been used. To achieve the research objectives, we have used the logit regression. The data of 121 listed firms in a five-year period from 2012 to 2016 is collected from the printed audit accounts available on companies‘ websites. The emergence of corporate governance phenomena has brought upon many structural changes in firms‘ governance structure such as the audit committee role and the audit quality. The second decade which starts with the warmth of subprime crisis has seen a significant development in the code of corporate governance. The role of the audit committee is now significant and being recognized as the solution of prevention of internal fraud. The findings of the study have shown that in non-financial firms listed in the Indonesian Stock Exchange audit committee and board characteristics have significant effect on audit quality. This study will be helpful for students, auditors, policymakers and researchers to understand the impact of corporate governance in audit quality.peer-reviewe

Finding a point of growth for domestic producers : focus on food products with a short shelf life

The article proves the relevance of the production of food products with a short shelf life by domestic producers, analyzes the findings of theoretical works related to the study of consumer choice and the formation of consumer habits, presents examples of successful competition between regional producers in various regions of the country with federal players. The significance of food production with a short shelf life as a point of growth for domestic business is substantiated and the opportunities and advantages of production of these types of products and the possibility of their promotion in various territories are shown.peer-reviewe

Revegetation as a driver of chemical and physical soil property changes in a post-mining landscape of East Kalimantan: A chronosequence study

As a result of mixing soil materials from various natural soil horizons, mine soils generally have low organic C and total N content. In wet tropical climates where the vegetation is evergreen, we hypothesize that with the start of revegetation, the organic C and total N levels of the mine soils will recover rapidly and increase as the time since revegetation increases. The increase in organic C and total N content will have implications for changes in other soil chemical and physical properties. The development of mine soils in wet tropical climate conditions is so far rarely considered only. This study aims to determine changes in the physical and chemical properties of mine soils in the initial stages of formation triggered by the increasing time since revegetation. Soils from permanent observation plots in ex-coal mined sites divided by time since revegetation (0–12 years) were sampled together with an adjacent site with natural forest. Decisive soil physical and chemical properties were determined for the soils from 0 to 30 cm depth. With the increasing time since revegetation, there was a decrease in bulk density, and an increase in total soil porosity following a logarithmic equation. Linear changes with increasing time since revegetation were found for organic C, total N, and available P levels. The linear increase in organic C, total N, and available P levels, the logarithmic decrease in bulk density and the increase in total porosity with increasing time since revegetation suggest that these parameters are controlled by vegetation in the initial stages of mine soil development, while the polynomial changes in extractable P and K (25% HCl), CEC, exchangeable bases, base saturation percentage, and exchangeable Al over time suggest that these parameters can be assigned to processes independent of vegetation and are highly dependent on the composition of the original substrate. © 2022 The Author