DETECTING OF PROBABILITY OF FINANCIAL STATEMENT FRAUD USING FRAUD HEXAGON MODEL: Evidence from Indonesian Public Companies

Many of Indonesian public companies had proven guilty that have committed financial statement fraud.The purpose of this research is for detecting financial statement fraud using fraud hexagon model consists of pressure, opportunity, rationalization, ccompetence, arrogance & collusion variabels. The sample in this reaserch specifically chose companies that were proven to have committed financial statement fraud and used logistical regression estimation technique assisted by STATA 14.The results of this reaserch shows that pressure proxied by financial stability, rationalization proxied by total accruals and collusion proxied by state owned enterprises (SOEs) have positive effect significantly on probability of financal statement fraud. Consequently, change of receivables, change of directors, CEO education, CEO narcissism, managerial ownership and CEO duality have negative effect on probability of financial statement fraud. meanwhile, external pressure, financial target, ineffective monitoring and auditor switching have no efffect on probability of financial statement fraud. The fraud hexagon model  can be used for financial statement fraud detection because the results support the collusion variable proxied by state owned enterprises (SOEs) which indicates that regulation, supervision and punishment are still weak for parties proven to have committed financial statement fraud

Shariah vs non-shariah IPO underpricing: evidence from Indonesia Stock Exchange

This study aims to investigate the effect of shariah status on initial public offering (IPO) underpricing, long-term performance and relationship between short-term and long-term IPO performance, and attempt to gain an insight into the nature of shariah IPO underpricing: a signal or an overreaction. Design/methodology/approach – This study uses IPOs during 1990–2018 from Indonesia. This study uses clustered regressions to address clustering phenomenon in IPO. To investigate long-term performance, this study uses cumulative returns, cumulative abnormal returns and Fama–French three factor regressions. This study also runs cross-sectional regressions on the relationship between short and long-term performances. Findings – This study finds that shariah status reduces lowers non-trading returns (return from offer to open prices), suggesting that shariah status may reduce information asymmetry and compensation. This study finds that both shariah and non-shariah IPOs underperform the benchmarks, with shariah IPOs underperform more. Further analysis shows a negative relationship between initial return and long-term performance for both shariah and non-shariah IPOs, whereas the negative relationship is stronger for shariah IPOs. The results indicate that shariah compliance help reduce information asymmetry; however, shariah compliance does not necessarily signal quality. Instead, shariah compliance seems to induce investor sentiment, resulting in underperformance and reversal patterns in the long run. Research limitations/implications – The results have various implications. Issuers may use shariah screening to lower underpricing. Investors may manage their investment horizons to mitigate IPO underperformance. Future research is needed to understand the nature of short and long-term performance of shariah IPO across countries. The use of ex-ante shariah definition becomes our limitation. This study also does not use buy and hold return to investigate long-term performance. Practical implications – The results have various implications. Issuers may use shariah screening to lower underpricing. The results show that sharia certification may play an important role in the IPO process. However, sharia status induces individual investors, leading to more overreaction in the long term. Thus, companies need to balance between sharia certification and overreaction in the long term. Investors may manage their investment horizons to mitigate IPO underperformance. Originality/value – This paper extends studies on the effect of shariah status on IPO performance using Indonesia data. Using non-trading returns, this study provides sharper analysis on the underpricing study. This study shows that shariah status leads to an overreaction, instead of a signal for quality

Syariah and Conventional Stocks: A Comparative Study Using Stochastic Dominance

This study compares the performance of Syariah stocks to that of Conventional stocks in the non-crisis, crisis, and overall periods, using the Stochastic Dominance approach of Davidson and Duclos (2000). A sample of Indonesian stocks from Daftar Efek Syariah (DES) and Malaysian stocks from Senarai Sekuriti Patuh Syariah (SSPS) were screened to obtain pure Syariah stocks. The study covers a 10-year-period for Indonesia and a 12-year-period for Malaysia. The study found that Indonesia’s Syariah stocks stochastically dominate Indonesia’s Conventional stocks in overall and non-crisis periods. However, during the crisis period, the performance of Indonesia’s Syariah stocks decreased so that the performance of Syariah stocks was equal to that of Indonesia’s Conventional stocks. In this period, the return of Indonesia’s Syariah stocks decreased significantly. For Malaysia, it was found that the performance of Malaysia’s Syariah stocks was equal to that of Malaysia’s Conventional stocks in the overall period. However, in the global crisis period, Malaysia’s Syariah stocks stochastically dominated that of Malaysia’s Conventional stocks. The results of this study have implications for investors in general and Syariah investors in particular. Investing in Syariah stocks maintains two objectives: compliance to Syariah and earning a competitive return. Investors, in general, can also diversify their portfolios better and increase their expected wealth and/or expected utilities

Shariah vs non-shariah IPO underpricing: evidence from Indonesia Stock Exchange

Purpose: This study aims to investigate the effect of shariah status on initial public offering (IPO) underpricing, long-term performance and relationship between short-term and long-term IPO performance, and attempt to gain an insight into the nature of shariah IPO underpricing: a signal or an overreaction. Design/methodology/approach: This study uses IPOs during 1990–2018 from Indonesia. This study uses clustered regressions to address clustering phenomenon in IPO. To investigate long-term performance, this study uses cumulative returns, cumulative abnormal returns and Fama–French three factor regressions. This study also runs cross-sectional regressions on the relationship between short and long-term performances. Findings: This study finds that shariah status reduces lowers non-trading returns (return from offer to open prices), suggesting that shariah status may reduce information asymmetry and compensation. This study finds that both shariah and non-shariah IPOs underperform the benchmarks, with shariah IPOs underperform more. Further analysis shows a negative relationship between initial return and long-term performance for both shariah and non-shariah IPOs, whereas the negative relationship is stronger for shariah IPOs. The results indicate that shariah compliance help reduce information asymmetry; however, shariah compliance does not necessarily signal quality. Instead, shariah compliance seems to induce investor sentiment, resulting in underperformance and reversal patterns in the long run. Research limitations/implications: The results have various implications. Issuers may use shariah screening to lower underpricing. Investors may manage their investment horizons to mitigate IPO underperformance. Future research is needed to understand the nature of short and long-term performance of shariah IPO across countries. The use of ex-ante shariah definition becomes our limitation. This study also does not use buy and hold return to investigate long-term performance. Practical implications: The results have various implications. Issuers may use shariah screening to lower underpricing. The results show that sharia certification may play an important role in the IPO process. However, sharia status induces individual investors, leading to more overreaction in the long term. Thus, companies need to balance between sharia certification and overreaction in the long term. Investors may manage their investment horizons to mitigate IPO underperformance. Originality/value: This paper extends studies on the effect of shariah status on IPO performance using Indonesia data. Using non-trading returns, this study provides sharper analysis on the underpricing study. This study shows that shariah status leads to an overreaction, instead of a signal for quality. © 2022, Emerald Publishing Limited

PENETAPAN NILAI PASAR PROPERTI GEDUNG PERKANTORAN GRAHA SUCOFINDO PT SUCOFINDO (Persero) CABANG SEMARANG UNTUK TUJUAN PENJAMINAN UTANG BANK

In this research, researcher assessed one of the office building in Semarang which is Graha Sucofindo Building. The aim of the assessment is to estimate the market value and forced sale value of Graha Sucofindo Building, for the debt underwriting purpose in PT. Bank Mandiri (Persero) Tbk. Graha Sucofindo Building Semarang is owned by PT. Sucofindo (Persero) holding receive credit investment in PT. Bank Mandiri (Persero) Tbk for the office building development project financing. PT. Sucofindo (Persero) holding will make the PT. Sucofindo (Persero) Semarang as debt collateral for investment loans in the bank. The approach used in estimating the market value of Graha Sucofindo Building is the cost approach with the depreciated replacement cost method (DRC), and the income approach with the discounted cash flow method (DCF). Under the cost approach, the market value indication of Graha Sucofindo Building on May 11th 2012 is Rp20.809.083.000,00,- while based on the income approach, the market value indication of Graha SucofindoPerkantoran on May 11th 2012 is Rp23.207.622.000,00,- Indication of market value based on the cost approach was given a weight of 49 percent and an indication of market value based on the income approach is weighted 51 percent, resulting market value conclusion of Graha Sucofindo Building Semarang on May 11th 2012 is Rp44.016.705.000.00,- Forced sale value of Graha Sucofindo Building is equal to 70 percent of the rent office market value, that is equal to Rp30.811.693.500,00.

Analisis Manajemen Kas Pemerintah : Studi Kasus Pada Kantor Pelayanan Perbendaharaan Negara Yogyakarta

Government cash management in Indonesia, nowadays increasingly towards the best practice. Concentration of cash and cash forecasting in good cash management become an important aspect so the government can use its cash resources in optimal fashion. Central government general treasurer (BUN) have a duty to implementation cash consolidation and cash forecasting. Kantor Pelayanan Perbendaharaan Negara (KPPN) is representative of Central government general treasurer at region. There some accounts in KPPN that not been consolidated. KPPN also have important role in cash forecasting by BUN. This study planned to know the practice of cash management, the level of government cash balances in KPPN Yogyakarta and to provide the opprotunity cost that be borne by the government from the presence of idle cash balances. This studi also planned to know the accuracy of cash forecasting and to test the use of historical data in cash forecasting with moving average method. This research is a descriptive study using quantitative data analysis. Research result showed that the level of idle cash in a number of accounts is significant, so there are opportuniy costs to the government. Research result also showed that cash forecasting prepared by KPPN Yogyakarta has low accuracy. The results also indicate that agencies with large budget have a very significant role in casf forecasting by KPPN

EVALUASI KINERJA MODEL INTERNAL RATING SYSTEM KREDIT KORPORASI PT BANK NEGARA INDONESIA (PERSERO) TBK

Basel II allows banks to use internal rating model as the basis in determining the risk of their respective assets. The availability of well rated and validly qualified model has been a key prerequisite prior to before the banks use internal models. This research was conducted to evaluate whether the internal rating system model applied in BNI, particularly in corporate loans, can be utilized to distinguish the liquid (good) or default (bad) debtors. The internal rating system performance model evaluation applies dicriminatory power techniques (Accuracy Ratio, Receiver Operating Characteristic, Kolmogorof-Smirnov Statistic, Kullback-Leibler Statistic and Information Statistics). Each variable�s characteristics test applies Information Statistics, while the Probability of Default estimation test applies the binomial test. The results showed that in general the BNI internal model corporate credit rating system has shown good performance and been able to distinguish the liquid (good) or default (bad). Each parameter calibration test particularly on non-financial aspects has indicated that the criteria settings for each parameter are still relevant and are able to distinguish between good and bad debtors. However in the parameters� financial ratios, the results indicate that this parameter is not good enough in distinguishing the debtor qualities which generally marginal or poor derivations are achieved

PENGGUNAAN/ANALISIS INFORMASI KEUANGAN UNTUK MEMPREDIKSI FINANCIAL DISTRES PERUSAHAAN

The objective of this research is to show the correlation between financial rations with the chance of financial distress condition of corporation listed in Indonesia Stock Exchange in 2003-2009. Financial ratios that used are Current ratio, Debt to equity ratio, Net profit margin, Inventory turn over, Total assets turn over, Return on asset , Return on equity. Data that used in this research are financial statements that published in Indonesian Capital Market Directory. The sampling methode in this research is purposive sampling. The samples are 71 corporation, with 35 financial distress corporation, and 36 non financial distress corporation. Hypothesis were tested by logistic regression. The result of this research show that financia ratios are current ratio and total asset turn over can be used in predicting financial distress on corporatio

Analisis Biaya dan Manfaat Penerapan Treasury Single Account Untuk Penerimaan Kas Negara Studi Kasus di Wilayah Daerah Khusus Ibukota Jakarta

Treasury Single Account (TSA) of Receipt Account is a government effort to accelerate cash inflow for government cash receipt. Government implement TSA of Receipt Account as a form of cash management in order to reduce float or time delay in process of government cash receipt. The objective of this research is to test the additional costs and benefits of TSA implementation of Receipt Account in Jakarta Region compared with the Non TSA Policy. This research uses data of government cash receipt that be administrated by KPPNs in Jakarta Region. KPPNs receive data from banks/post office that receive cash for government receipt. Receipt data in 2010 be grouped based on the date of transferring receipt according to the rule of TSA implementation of Receipt Account. By using receipt data then be calculated additional costs and benefits of TSA implementation of Receipt Account. In order to make decision, test done by using parametric method and nonparametric method. For parametric test used Paired Sample t-Test and for nonparametric test used Wilcoxon Signed Ranks Test. Those tests done to know whether the additional benefits of TSA implementation is greater than its additional costs. The results of comparative statistical test between the additional costs and additional benefits of TSA implementation of Receipt Account show that both parametric test and nonparametric tests give conclusion that the additional benefits of TSA implementation of Receipt Account are greater than its additional costs. TSA implementation of Receipt Account in Jakarta Region is profitable for government. The result of this research contradicted with the previous research done in Yogyakarta Region that said TSA implementation of Receipt Account is more costly for government