Nurleni Nurleni, Agus Bandang, Darmawati and Amiruddin
This study aims to analyze the effect of ownership structure that consists of managerial ownership and institutional ownership of the extensive of corporate social responsibility…
Abstract
Purpose
This study aims to analyze the effect of ownership structure that consists of managerial ownership and institutional ownership of the extensive of corporate social responsibility (CSR) disclosure.
Design/methodology/approach
The population in this study is manufacturing companies listed in Indonesia Stock Exchange (BEI), as the manufacturing companies are considered to have great potential on environmental damage (Mathews, 2000). The selected sample were the companies which meet certain criteria (purposive sampling) which published the complete annual financial statements from 2011 to 2015. This study used an analysis method using partial least square (WarpPLS) to assess the effect of the structure of ownership consists of managerial ownership and institutional ownership on the extent of the CSR disclosure.
Findings
The results showed that there is a direct effect of a negative and significant correlation between managerial ownership on CSR disclosure, and there is a direct effect of a positive and significant correlation between institutional ownership on CSR disclosure.
Originality/value
Originality of this paper shows PLS (WarpPLS) that applied to determine the effect between variables managerial and institutional ownership on CSR disclosure. This research is collected data financial statements and annual reports of manufacturing companies obtained from the Indonesia Capital Market Reference Center (PRPM), which is located in the Indonesia Stock Exchange (IDX), which there has not been research by the methods and the same location.
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Apridar and Marbawi Adamy
Purpose – The purpose of this research is discuss and analyze job satisfaction, work motivation and organizational commitment toward organizational citizenship behavior in BNI in…
Abstract
Purpose – The purpose of this research is discuss and analyze job satisfaction, work motivation and organizational commitment toward organizational citizenship behavior in BNI in the working area of Bank Indonesia Lhokseumawe. The performance of BNI is closely related to the performance of BNI employees. BNI employee performance is the result achieved in a given period based on monitoring in BNI Lhokseumawe.
Design/Methodology/Approach – the method of data analysis with measurement model analysis and structure model analysis are for analysis and quantitative descriptive explanatory survey study was to analyze the influence job satisfaction and work motivation on organization Commitment and work motivation and the organization’s commitment on organization citizenship behavior of an employee on PT. Bank BNI the Regional Bank Indonesia Lhokseumawe.
Finding – this research utilizes analysis was SEM (Structural equation modeling) using Amos, the method of data analysis with measurement model analysis and structure model analysis. The test results showed that simultaneous that the job satisfaction effect on the work motivation and then job satisfaction effect on the organizational commitment and work motivation has not effect on organization commitment and then work motivation and the organization commitment.
Research limitations/Implication – effect on organizational citizenship behavior on Bank BNI the Regional Bank Indonesia Lhokseumawe.
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Ghazali Syamni, Wahyuddin, Damanhur and Ichsan
Purpose – The purpose of this study is to examine the effect of corporate social responsibility (CSR) on profitability in agricultural sector companies, especially the…
Abstract
Purpose – The purpose of this study is to examine the effect of corporate social responsibility (CSR) on profitability in agricultural sector companies, especially the agricultural sub-sector in the Indonesia Stock Exchange (IDX). These sub-sectors are designated as one sub-plantation group with one value and another valuable sub-sector. This study uses secondary data of financial statements for the period 2015–2016 accessed on the following website: www.idx.co.id.
Design/Methodology/Approach – The data analysis method used in this research, using dummy regression method with an independent variable, is called Corporate Social Responsibility (CSR); Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) are used as dependent variables. Besides this, this study included a sub-sector variable in agricultural sector as a dummy variable.
Findings – This study found that the ability to explain CSR is greater by the ROE on plantation companies. These findings indicate that CSR has a signal for investors when investing in capital markets.
Research Limitations/Implications – This study had restrictiveness in model that was used only profitability ratio as an independent variable. This study also used during a two-year period. Alongside that, the next study is needed to search in other sectors by entering a sector variable as a dummy variable.
Practical Implications – Implementation of CSR was a solution for company to repair organizational and financial performance. So, Properly Company Management uncertainly implement CSR on their environment.
Originality/Value – All sub-sectors in agriculture in the IDX did not have different viewpoints for the implementation of a CSR program to their environment.
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Luai Abu-Rajab, Tensie Steijvers, Maarten Corten, Nadine Lybaert and Malek Alsharairi
The authors investigate the influence of CEOs’ Islamic religiosity on the level of tax aggressiveness within private family firms. In addition, this study aims to explore the…
Abstract
Purpose
The authors investigate the influence of CEOs’ Islamic religiosity on the level of tax aggressiveness within private family firms. In addition, this study aims to explore the moderating role of the CEO's ownership stake in the firm and the payment of Zakat.
Design/methodology/approach
The authors gathered data through surveys completed by 199 CEOs of Jordanian Islamic family firms. These survey results, along with financial statements, were used for multiple ordinary least squares regression analyses.
Findings
The results of this study reveal a negative relation between the extent of Islamic religiosity of the CEO and the level of tax aggressive behavior. Furthermore, the results suggest that an increase in the CEO’s ownership stake strengthens the negative association between the CEO’s religiosity and the extent of tax aggressive behavior. Finally, the CEO’s involvement in Zakat payments is shown to mitigate the negative association between the CEO’s religiosity and the extent of tax aggressive behavior.
Originality/value
In contrast to prior research that examines the relationship between religiosity and tax aggressiveness within the context of other religions, particularly Christianity, in listed firms, and primarily considers the religiosity of the overall firm environment, the study centers on the CEO’s religiosity in private Islamic family firms. The Islamic context further enables us to investigate whether the fulfillment of Zakat diminishes the moral obligation experienced by religious CEOs to fulfill their tax responsibilities.
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Anna Melinda and Ratna Wardhani
With the increasing understanding of stakeholders on sustainability aspects for the business, companies are nowadays paying more attention to environmental and social issues. This…
Abstract
With the increasing understanding of stakeholders on sustainability aspects for the business, companies are nowadays paying more attention to environmental and social issues. This study aims to examine the relationship between Environmental, Social, Governance (ESG) Index and firms’ value. Moreover, this study also examines how the controversy score influences the company’s value. The authors employ a dataset of 1.356 companies from 22 countries in Asia which representing the Asian market from 2014 to 2018. This study shows that ESG index score and controversy score are statistically significant, affecting the firms’ value, measured by Tobin’s Q. From the individual tests, the findings of this study indicate that ESG-environmental, ESG-social, and ESG-governance, individually affect the firms’ value. This study suggests that providing disclosure on ESG aspects is essential, not only to increase company value but also to show the company resilience and sustainability. On the other hand, ESG controversy score surprisingly indicates a positive relationship with the company value. The result implies that controversies provide a positive signal to the investor because controversies could provide a signal to the public of companies’ willingness to have transparency and accountability.
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Mohammad Mominul Islam, Mohamed Syazwan Ab Talib and Nazlida Muhamad
Halal certification is predominantly linked with the product and its production process. However, certifying price, place and promotion (3Ps) has not received enough attention…
Abstract
Purpose
Halal certification is predominantly linked with the product and its production process. However, certifying price, place and promotion (3Ps) has not received enough attention theoretically and empirically. Against this backdrop, this study aims to unravel the halal certification of the marketing mix in Bangladesh’s cosmetics industry.
Design/methodology/approach
Fourteen mid and top executives from 12 national, international and multinational cosmetic companies were interviewed from November 2023 to January 2024. The data were analyzed using ATLAS.ti 2024 to showcase content, concept, sentiment, correlation, network and thematic analysis, exploring respondents’ perceptions aligned with Islamic principles.
Findings
The respondents held highly negative perceptions about certifying halal pricing, followed by promotion and supply chain or place. The mixed perceptions illustrate that certifying the halal product is easier than certifying the halal price, promotion and place (3Ps). Conditional and positive perceptions can foster halal certification of the entire marketing mix, while negative perceptions seem to be a threat to the halal cosmetics industry.
Practical implications
The findings have implications for academic, managerial and policymaking issues, benefiting halal cosmetics consumers. Based on this empirical study, halal stakeholders can determine the likelihood of certifying the entire marketing mix.
Originality/value
This study proposes certifying the halal status of the marketing mix against the backdrop of the scarcity of theoretical and practical premises.
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This study aims to explore the correlation between Management Control Systems, Green Innovation, Social Media Networks, and Company Performance in medium-sized construction and…
Abstract
Purpose
This study aims to explore the correlation between Management Control Systems, Green Innovation, Social Media Networks, and Company Performance in medium-sized construction and real estate firm in Indonesia.
Design/methodology/approach
This research method uses quantitative approach. The sample selection technique uses simple random sampling. The analytical method in this study uses structural equation models based on variance. Statistical test tool used, is Smart PLS 3.0.
Findings
The management control systems have a significant and positive impact on social media networks, green innovation, and company performance in the upper-middle-class construction and real estate businesses in Java. Furthermore, social media networks and green innovation were found to mediate the strong relationship between management control systems and firm performance in medium-sized construction and real estate businesses in Java.
Research limitations/implications
This research should provide a detailed, technical, and structured explanation of how companies assess suitability standards for implementing green innovation in Indonesia’s construction and real estate sectors.
Social implications
The finding emphasize the importance of the management control system in enhancing firm performance. If, the elements of the management control system are met or adequate, it can improve the performance of those in charge, leading to satisfactory performance.
Originality/value
This finding is the first of its kind in Indonesia. It will contribute to shaping future development policies for government and private projects, ensuring they are more advance and environmentally conscious.
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Agus Wahyudin and Badingatus Solikhah
The purpose of this paper is to investigate the effect of corporate governance (CG) implementation rating conducted by the Indonesian Institute for Corporate Governance (IICG) on…
Abstract
Purpose
The purpose of this paper is to investigate the effect of corporate governance (CG) implementation rating conducted by the Indonesian Institute for Corporate Governance (IICG) on the financial performance of the selected companies.
Design/methodology/approach
This paper is a hypothesis testing study to analyze CG implementation of 88 firms listed on the Indonesian Stock Exchange. The samples are companies that participated in the Corporate Governance Perception Index (CGPI) Awards in 2008-2012. A panel data regression analysis is conducted on the data collected from IICG reports and its financial statements.
Findings
The awareness regarding good corporate governance (GCG) enforcement in Indonesian companies has already increased. The listed companies that participated in CGPI Awards during 2008-2012 always experience an increase in both quantity and quality. CG rating of go-public companies in Indonesia affects their accounting-based financial performance, such as return on assets, return on equity and earnings per share. However, CG implementation rating is not directly responded by the Indonesian stock market and has not yet been able to increase the company’s growth in the short term.
Research limitations/implications
In this study, CGPI rating in a related year is linked to market performance in the same year. Thus, further research may link CGPI rating to market performance in the next year, as the findings of this study show that GCG implementation is not directly responded by the market.
Practical implications
GCG implementation is required by stakeholders, as it may give a long-term positive impact. Thus, the government needs to stipulate regulations to increase the commitment of the company in implementing GCG. The company can improve the internal factors of the organization that does not support the establishment of GCG based on the findings during the survey of CGPI. Finally, investors and creditors may consider the CGPI rating for their investment decisions.
Originality/value
This study contributes to the literature in two ways. First, this study uses the comprehensive CG rating in Indonesia. Previous studies on CG rating focused on internal mechanism; in this study, the rating was assessed using four stages of continuous assessment: self-assessment, document evaluation, paper assessment and company visit, which was conducted by an independent team. Second, this study uses the CG index (compliance, conformance and performance) associated with a variety of accounting-based and market-based performance variables: financial performance, market value and growth.
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Suhaib Al-Khazaleh, Nemer Badwan, Ihab Qubbaj and Mohammad Almashaqbeh
In light of the complex risk and transparency regulations, this paper investigates the factors influencing the level of risk management disclosure by insurance firms in Jordan and…
Abstract
Purpose
In light of the complex risk and transparency regulations, this paper investigates the factors influencing the level of risk management disclosure by insurance firms in Jordan and Palestine. The characteristics examined were ownership structure, which covers public, institutional and management ownership on risk management disclosure (RMD) utilizing ISO 31000, as well as profitability, leverage, liquidity and firm size.
Design/methodology/approach
To achieve the aim of this study, a quantitative research methodology was used. Based on the total number of observations, 232 purposeful annual observations for the study sample were collected between 2016 and 2023 for 10 insurance companies listed on the Palestine stock exchange (Palestinian companies) with 80 observations and 19 companies listed on the Amman stock exchange (Jordanian companies) with 152 observations. This study uses panel data regression with fixed effects models. By employing the 2SLS approach, we comprehensively address the main endogeneity concerns and problems in risk management disclosure RMD of insurance firms in Jordan and Palestine.
Findings
The results show that risk management disclosure is significantly influenced by the liquidity and size of an organization. Furthermore, RMD is not significantly affected by profitability, debt, public ownership, institutional ownership or liquidity, whereas business size has a favorable influence.
Research limitations/implications
The findings of this study may not be generalizable to firms in other countries because of the limitations of insurance firms in Palestine and Jordan. Study replication in future studies should consider the potential for bias and differences in data interpretation when utilizing qualitative methodologies to evaluate RMD.
Practical implications
The practical implications emphasize how crucial it is for investors, practitioners and stakeholders to choose firms that are large and have little liquidity because this is linked to high levels of risk management transparency. This knowledge can offer investors an important direction for assessing possible risks and transparency in risk management within the insurance sector framework. The study recommends that the governments of Palestine and Jordan enact laws requiring risk management disclosure according to the ISO 31000:2018 standard, especially in the insurance industry.
Originality/value
This study contributes to the literature by illuminating the relationship between firm size, liquidity and risk management disclosure in insurance companies operating in Jordan and Palestine. Therefore, investors should choose large, relatively liquid companies with strong risk management disclosure. This study offers theoretical insights that may be used as a guide for other research, improving the understanding of the variables influencing risk management disclosure in insurance companies and advancing scientific understanding.
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Aikaterini Manthiou, Van Ha Luong, Kafia Ayadi and Phil Klaus
The experience of leaving the real world and entering a virtual service environment makes many individuals happy. This study heeds the call by multiple researchers to…
Abstract
Purpose
The experience of leaving the real world and entering a virtual service environment makes many individuals happy. This study heeds the call by multiple researchers to conceptualize, interpret and illustrate the impact of the perceived service experience in the metaverse in a holistic way. In particular, this study aims to understand how the consumption of experiences is perceived in a metaversal space.
Design/methodology/approach
The authors analyze mega virtual live events with famous artists broadcast in virtual worlds. The authors take a big data approach and include two studies to gain insight into the online public audience’s perceptions and experiences in the metaverse. In the first study, the authors analyze text from YouTube with Leximancer. In the second study, the authors go one step further to refine the conceptual model from Study 1. The authors scrutinize additional Facebook comments using seeded Latent Dirichlet Allocation (LDA).
Findings
The findings reveal that the meta service experience (MEX) encompasses four dimensions: immersion, metascape, immediacy and hedonism.
Originality/value
This research provides important guidance not only for consumer behavior scholars but also for service marketers and event planners. The study proposes research opportunities to advance service experience research in the metaverse.