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This paper aims to examine the effect of managerial ability (MA) on real earnings management and the effect of real earnings management by higher ability managers on future profitability, at a different level of the crime rate.

The research sample includes 864 manufacturing firms-years listed on the Indonesian Stock Exchange. MA uses an efficiency score by data envelopment analysis. Real earnings management is measured by abnormal activities. The crime rate is measured by logarithm natural of the number of crimes per 100.000 citizens in the region where the firm is headquartered. Data analysis uses fixed-effect regression.

MA increases real earnings management in the region where the firm is headquartered with a higher crime rate while MA will reduce real earnings management in the region where the firm is headquartered with a lower crime rate. Also, real earnings management by higher-ability managers gives a signal of better future profitability in the region where the firm is headquartered with a lower crime rate.

This research contributes to filling the previous gap of managerial characteristics ability-related on real earnings management by providing regional crime rate as a determinant factor of managers’ ethical behavior. This research is the first one to considers the regional crime rate treatment to the relationship between MA and real earnings management especially in Indonesia. This research also provides new evidence of efficient real earnings management for a lower crime rate group of samples to give a signal of better future profitability.

This research aims to examine the moderating role of the existence of risk management committee between risk-taking behavior and companies’ performance.

Research sample includes 383 manufacturing company-year that listed on the Indonesian Stock Exchange period of 2017–2020. The risk-taking behavior includes the use of leverage, capital intensity, research and development intensity, and earnings uncertainty. The hypothesis test uses company fixed-effect regression.

The result shows that risk management committee moderates the effect of risk-taking behavior on companies’ performance. This research also finds the similar result when risk management committee and risk-taking behavior are examined on the future performance. In the further analysis, the result also finds that the expertise of risk management committee moderates the effect of risk-taking behavior on companies’ performance.

This research contributes to fill the previous gap of risk-taking behavior and companies’ performance by considering the existence of risk management committee to promote oversight role on risk-taking behavior. This research also contributes to give new evidence in Indonesia about the role of risk management committee to improve the benefits or to reduce the costs of risk-taking behavior.

The purpose of this paper is to examine the effect of founding-family firms on managerial ability.

Founding-family firms are determined by founder and/or family involvement as block holder and as in the firm board. Managerial ability is estimated by data envelopment analysis. Research samples consist of 412 manufacturing firm-years listed in the Indonesian Stock Exchange. Analysis data use random-effect regression as the main analysis and Huber-White regression as an alternative analysis.

This research finds that founding-family firms have a negative effect on managerial ability. Further, the result shows that lower managerial ability occurred when founding-family firms led by founder and professional CEOs, when other family members involved in the ownership and the board have higher family ownership. It indicates that founding-family firms concern more about family interest, such as family reputation, rather than business needs and best management practice.

Limitation of this research does not occur if the founding-family firms are managed by first, second, third, etc., family generation. Future research expected to consider family generation in founding-family firms management.

This research can be used by founding-family firms in Indonesia as consideration of management policy formulation that can improve managerial ability.

This research provides new evidence if founding-family firms promote lower managerial ability in emerging market such Indonesian market where family businesses are the root of private businesses which have a major contribution to economics.

This research aims to examine the moderating role of managerial ability on the relationship between risk-taking behavior and firms' performance.

This research uses 383 manufacturing firm-years listed on the Indonesian Stock Exchange as the research sample. The hypothesis test uses fixed-effect regression analysis.

The result shows that risk-taking behavior has a positive effect on firms' performance for higher managerial ability. Managerial ability provides higher knowledge, skill and information to get benefits and mitigate costs of risk-taking behavior to improve firms' performance. The role of managerial ability to make risk-taking behavior increase firms' performance occurs more for high-ability managers, dual CEO, shareholder-CEO and family CEO.

This research contributes to answering the conflicting arguments and filling the previous findings gap between risk-taking behavior and firm performance by considering managerial ability as a factor to create effective risk mitigation.

This research objective is to (1) examine the effect of organizational factors on quality performance, (2) examine the effect of quality performance on competitive advantage and (3) examine the mediating role of quality performance between organizational factors and competitive advantage.

The research sample includes 140 employees in the Windusari village-owned enterprise, in Magelang, Indonesia. Data are collected using 5-Likert scale questionnaires which follow Ferdousi et al. (2019). The dependent variable is a competitive advantage. The Independent variable is organizational factors which are top management support, employee empowerment, employee involvement, reward and recognition, training and customer focus. The mediating variable is quality performance. Data analysis uses path analysis provided by structural equation modeling.

Based on path analysis, organizational factors have a positive effect on quality performance, quality performance has a positive effect on competitive advantage and quality performance mediates the effect of organizational factors on competitive advantage. The results confirm the concept of quality management where continuous improvement of products and services can meet customer expectations and bring the organization to a better position in the industry to face other competitors.

This research extends the previous studies of the relationship between organizational factors and organizational outcomes by considering the effectiveness of the organizational process. This research also contributes to giving new evidence about the relationship between organizational factors, quality management and competitive advantage in the village-owned enterprise in Magelang, Indonesia. This research also contributes to updating the literature on the theory of quality management.