Pengaruh accounting conservatism, income smoothing dan free cash flow terhadap earning response coefficient pada perusahaan non jasa keuangan yang terdaftar di Bursa Efek Indonesia (BEI) pada tahun 2010 – 2019

The purpose of this study was to determine the effect of accounting conservatism, income smoothing, on earnings response coefficient and leverage, growth opportunity as a control variable. This research uses quantitative methods, namely the type of research that obtains data in the form of numbers or data that is numbered. The independent variables in the study are accounting conservatism, income smoothing and free cash flow. The dependent variable in this study is the earning response coefficient, the control variables in this study are leverage and growth opportunity. The data that has been collected will be processed and analyzed using the Stata 14 application. This test is divided into several tests including the descriptive test, the classical assumption test where this test consists of normality, multicollinearity, autocorrelation and heteroscedasticity tests. In addition, a hypothesis test was conducted which consisted of panel data regression test, t test, f test and the coefficient of determination. Accounting conservatism has no effect on the earnings response coefficient in non-financial service companies from 2010-2019, so the results of this panel data regression do not support the initial hypothesis of the study

Risk Taking Behavior of Indonesian Banks: Analysis on the Impact of Deposit Insurance Corporation Establishment

This paper studies the risk taking behavior of Indonesian Banking Industry, especially before and after the establishment and the implementation of Deposit Insurance Corporation (IDIC). Using common set of explanatory variables; we test several empirical models to reveal the conduct of risk management by banks. In the spirit of BASEL II Accord, this paper take closer look at three types of risk behaviors namely credit risk, market or interest rate risk and operational risk, prior and post the establishment of IDIC. We tested the hypotheses using panel data set of banks operational in period of 2000-2009. The dataset consists of 121 banks with semiannual frequency (2420 observations). Our findings show that these variables explain well the three type bank risk exposures. The implementation of IDIC alters the bank behavior albeit in somewhat different way than initially hypothesized. The risk taking responses also varies across bank types. We found that State Owned Enterprise banks (SOE) behave differently relative to the rest types of the bank. Related to size, SOE banks behave more conservative after the implementation of IDIC. On the other hand its response on conditioned capital post the IDIC implementation is the opposite; they became more aggressive. We view the public pressure on this state banks has influenced the way they manage the risk.   Keywords : Risk taking behavior, BASEL II, Deposit Insurance. JEL Classification: G11, G21, G32, C2

RISK TAKING BEHAVIOR OF INDONESIAN BANKS: ANALAYSIS ON THE IMPACT OF DEPOSIT INSURANCE COOPERATION ESTABLISHMENT

This paper studies the risk taking behavior of Indonesian Banking Industry, especially before and after the establishment and the implementation of Deposit Insurance Corporation (IDIC). Using common set of explanatory variables; we test several empirical models to reveal the conduct of risk management by banks. In the spirit of BASEL II Accord, this paper take closer look at three types of risk behaviors namely credit risk, market or interest rate risk and operational risk, prior and post the establishment of IDIC. We tested the hypotheses using panel data set of banks operational in period of 2000-2009. The dataset consists of 121 banks with semiannual frequency (2420 observations). Our findings show that these variables explain well the three type bank risk exposures. The implementation of IDIC alters the bank behavior albeit in somewhat different way than initially hypothesized. The risk taking responses also varies across bank types. We found that State Owned Enterprise banks (SOE) behave differently relative to the rest types of the bank. Related to size, SOE banks behave more conservative after the implementation of IDIC. On the other hand its response on conditioned capital post the IDIC implementation is the opposite; they became more aggressive. We view the public pressure on this state banks has influenced the way they manage the risk. Keywords : Risk taking behavior, BASEL II, Deposit Insurance. JEL Classification: G11, G21, G32, C2

PERGERAKAN BERSAMA MATA UANG ASEAN 4 PERIODE 1997-2005: SUATU APLIKASI TEORI OPTIMAL CURRENCY AREA DENGAN MENGGUNAKAN MODEL VECTOR ERROR CORRECTION

Starting from the Optimum Currency Area (OCA), this paper utilize the Vector Error Correction Model (VECM) to identify the dynamic short term and the long term co-movement between the ASEAN 4 currencies, including their existing fundamental mechanism. There are at least 3 important findings, (i)the co-movement between the ASEAN 4 currencies is not proved empirically, (ii) the theory of OCA does not robust in explaining the co-movement pattern in ASEAN, and (iii) the existance of OCA is a global phenomena, indicated from the significance of Yen currency on the ASEAN 4. These findings led to a conclusion of this paper that the ongoing economic integration as well as the financial one in ASEAN are not enough to form a unified monetary arrangement nor a common currency in this region. JEL Classification : F02, F36, F33, C32 Keywords: Pergerakan Bersama, Optimum Currency Area, Vector Error Correction Mode

SOVEREIGN RISK ANALYSIS OF DEVELOPING COUNTRIES: FINDINGS FROM CREDIT DEFAULT SWAP PREMIUM BEHAVIOUR

This study conducts econometric analysis CDS Premium relations towards variables usually used as a sovereign rating explanatory. Estimation with data panel econometric found that global risk appetite is the most important influencing variable followed by foreign exchange reserve and yield spread. This item is consistent with the existing empiric literature and shows a high correlation between developing countries economy and world economic cycle. JEL Classification : F34, F32, G13, G15, C23 Keywords: Sovereign Risk, Credit Default Swap, Panel Dat

CO-MOVEMENT 4 PERIOD ASEAN CURRENCY 1997-2005 A THEORY APPLICATION NAMELY OPTIMAL CURRENCY AREA USING VECTOR ERROR CORRECTION MODEL

Starting from the Optimum Currency Area (OCA), this paper utilize the Vector Error Correction Model (VECM) to identify the dynamic short term and the long term co-movement between the ASEAN 4 currencies, including their existing fundamental mechanism. There are at least 3 important findings, (i) the co-movement between the ASEAN 4 currencies is not proved empirically, (ii) the theory of OCA does not robust in explaining the co-movement pattern in ASEAN, and (iii) the existance of OCA is a global phenomena, indicated from the significance of Yen currency on the ASEAN 4. These findings led to a conclusion of this paper that the ongoing economic integration as well as the financial one in ASEAN are not enough to form a unified monetary arrangement nor a common currency in this region. JEL Classification : F02, F36, F33, C32 Keywords : Co-Movement, Optimum Currency Area, Vector Error Correction Model

ANALISA SOVEREIGN RISK NEGARA BERKEMBANG: TEMUAN DARI PERILAKU PREMI CREDIT DEFAULT SWAP

Persepsi pelaku pasar asing terhadap perekonomian domestik dapat diukur melalui sovereign risk. Risiko ini merupakan hasil evaluasi/assestment lembaga rating mengenai probabilitas suatu entitas berdaulat (negara) akan melakukan wanprestasi terhadap kewajiban komersialnya (Beers dan Cavanaugh, 2006). Wanprestasi ini terjadi baik karena ketiadaan kapasitas maupun kesengajaan. Pengukuran persepsi risiko ini telah cukup lama dilakukan melalui rating oleh suatu lembaga pemeringkat. Menjelang akhir abad ke 20, suatu instrumen baru yakni Credit Default Swap (CDS) muncul sebagai suatu alat pengukuran sovereign risk. Sebagai suatu instrumen yang melakukan lindung nilai terhadap kemungkinan default hutang, maka secara alamiah premi dari CDS akan merefleksikan kemampuan membayar. Terkait dengan konteks sovereign, maka kemampuan membayar ini dapat dihubungkan dengan berbagai variabel ekonomi makro domestik dan global (aspek fundamental). Studi ini melakukan analisa ekonometris hubungan premi CDS terhadap variabel-variabel yang biasa digunakan sebagai penjelas sovereign rating. Berdasarkan literatur empiris yang ada diantaranya Beers dan Cavanaugh (2006), Weigel dan Gemmil (2006) serta Ismailescu dan Kazemi (2010), 9 variabel ekonomi makro yakni pertumbuhan PDB, inflasi, depresiasi, yield spread (terhadap US Treasury), rasio hutang pemerintah, cadangan devisa, rasio defisit fiskal, neraca berjalan dan global risk appetite digunakan untuk menjelaskan pergerakan CDS tenor 5 tahun. Suatu dataset panel yang terdiri atas 10 negara berkembang pada periode 2004-2009 (frekuensi tahunan) digunakan untuk memverifikasi pola hubungan yang ada. Estimasi dengan ekonometrika panel data menemukan risk appetite global sebagai variabel pengaruh terpenting disusul dengan cadangan devisa dan yield spread. Hal ini konsisten dengan literatur empiris yang ada serta menunjukkan keterkaitan yang tinggi perekonomian negara berkembang dengan siklus ekonomi dunia. Keywords : Sovereign Risk, Credit Default Swap, Fundamental Ekonomi Makro, Panel Data JEL Classification : F34 F32 G13 G15 C2

ANALYSIS OF MARKET DISCIPLINE MECHANISM IN INDONESIA BANKING INDUSTRIES

The market discipline is considered an important element for creating a sound and efficient operation ofthe banking industry. It can be shown by the response of investors and depositors of the business operationsand management in relation to the risk of a bank. Theoretically, there are hypotheses must be accomplishedin order to effectively market discipline occurs. The first hypothesis, whether the marketdiscipline provides a signal for of banks regarding the existence of a certain conditions which is inconsistentwith sound and efficient bank and business operation (Disciplining Signal Hypotheses; DSH).The second, bank management will respond to the signal by making efforts towards the implementationfor correction on the business in line with expectations (Corrective Response Hypotheses; CRH). Theverification used the empirical accounting data and market commercial banks with a total of 110 frequencyof semester 2000-2010 (panel data, 1843 observations). Empirical analysis model used regressionpanel data. The estimation results indicate that DSH gained strong empirical support. On the otherhand, the result of estimation involved in CRH is still significantly weak. This indicates that the marketdiscipline mechanism has not operated optimally in Indonesian banking industries. Therefore, correctionis required especially on regulatory mechanisms to improve the quality of banking

Financial distress, value of firm, trilemma index dan investment decision studi pada perusahaan pertambangan global besar

The purpose of this study was to determine the relationship between financial distress, value of firm and investment decision in the world's largest mining companies. Investment decision in a company is very important in developing the company, it can be by doing business expansion or other things. This research uses quantitative methods. The independent variables in this study are financial distress, firm value and trilemma index. the financial distress coefficient is negative -0.04 significant with a p-value of 0.021 for investment decisions. Financial distress has a negative influence on investment decisions in large mining companies around the world in 2010-2019, which means that in the world's large mining companies, companies that have a financial downturn in their companies tend to make investment decisions with the aim of restoring the company's financial condition. The point is, financial distress here can also occur not because after the company makes an investment decision, the company will experience a financial downturn, this can happen one of them because by making an investment decision it can make the company's finances seem to be reduced but financial conditions can be reduced. by the company in making investments