ANALYSIS Of CAPITAL ASSET PRICING MODEL ACCORDING TO SHARIAH PRINCIPLE: INDONESIAN EVIDENCE

Capital Asset Pricing Model (CAPM) is one of the estimated return models developed in conventional financial instruments that have different characteristics from Islamic financial instruments. So the CAPM model cannot be directly applied in Islamic financial instruments, so an estimation model is needed, namely the Shariah Compliant Capital Asset Pricing Model (SCAPM). This study aims to produce a SCAPM model that can be applied to estimate returns in Islamic financial instruments. The data used in the test is a list of sharia companies listed on the IDX, sharia company stock prices, Indonesia Sharia Stock Index (ISSI), yield of sukuk and return of Bank Indonesia Certificates (SBI) for the period 2010 - 2018. Testing is done by comparing expected return with the CAPM and SCAPM models. The SCAPM model used is to eliminate the risk free asset factor and replace it with inflation, zakat, and yield of sukuk. The results of the analysis using graphs and the compare mean test show that the results of the expected return with the SCAPM and CAPM models have no difference, so the SCAPM model can be used as an alternative model of return estimation in Islamic Financial Instruments on the IDX

Pengaruh Corporate Governance terhadap Earnings Management (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia)

The aims of this research are to examine the influence of budgeting objectives characteristics on the performance of Local Government of Temanggung Regency. Sampling technique used in this research was purposive sampling. This method was applied since sample was selected purposively based on a certain criteria as Local Government Officers in the middle up to lower level who were also commitment maker in the sense that they participate in budgeting and its implementation and also as staff in charge of budget arrangement. Number of sample processed in the research is 146 samples and processed using SPSS program to examine hypothesis. The Research found out that from five variables of budgeting objectives characteristics, four variables (the clarity of objectives, participation, feedback and objective achievement difficulties) significantly influence the performance of Local Government Officers of Temanggung Regency

Idiosyncratic Risk Volatility: Stock Price Informativeness or Price Error?

Research on idiosyncratic volatility in developing countries, particularly Indonesia, is scant. This study is the first to explain idiosyncratic concepts through an information environment approach and an examination of information asymmetry. This study aims to analyze the phenomenon of idiosyncratic risk in Indonesia, whether it is related to price informativeness or price error, by considering the information environment. We identified the information environment based on the liquidity levels and stock liquidity risk. Our research revealed the relationship between information asymmetry in the information environment and idiosyncratic volatility by using a sample of 499 companies listed on the Indonesia Stock Exchange during the period 2017–2019. One thousand, two hundred and twenty-nine (firm_year) observation data were obtained. The dependent variable was idiosyncratic volatility, and the independent variable used an information environment consisting of stock liquidity, liquidity risk, and information asymmetry. The findings of this study are expected to contribute to the literature on idiosyncratic volatility by showing how it can predict the development of the information environment, and how the latter is a consequence of information asymmetry. Moreover, this study should also complement views that are related to the concept of idiosyncratic volatility equivalent to price errors; this research has been carried out in previous studies

RESTATEMENT OF PT GARUDA INDONESIA’S FINANCIAL STATEMENTS IS CONSERVATIVE?

This research is a case study research at PT Garuda Indonesia Tbk (PT GIAA). The motivation for conducting the research was the existence of PT GIAA's fi-nancial reporting in 2018 which revealed a significant increase in profit which required PT GIAA to restate its financial statements in 2019. The analysis used was descriptive and quantitative analysis. The restatement of the financial state-ments has an impact on changes in reported earnings, namely there are losses, adjustments to accounts also cause some changes in the amounts recognized in the financial statements. On this basis, a quantitative analysis was carried out to determine the level of conservatism in the restatement of PT GIAA's financial statements. Based on accrual conservatism, the company still applies conserva-tism principles but in the restatement period of financial reporting in 2018 the level of conservatism decreased. Based on market conservatism, the market value of the company's shares is lower than its book value, this indicates that the company is aggressive in determining book value. Even the average stock return each year is negative and a sharp decline occurred during the restatement of fi-nancial statements. This indicates that market confidence decreases when the company restatement its financial statements