Intiyas Utami, Indra Wijaya Kusuma, Gudono Gudono and Supriyadi Supriyadi
The purpose of this paper is to test the existence of the halo effect caused by the presentation of information scope (holistic/specific), which can eventually lead to an…
Abstract
Purpose
The purpose of this paper is to test the existence of the halo effect caused by the presentation of information scope (holistic/specific), which can eventually lead to an inaccurate risk assessment of material misstatement. Empirical evidence is provided to demonstrate that methods of knowledge acquisition (explanatory feedback and self-explanation) are able to mitigate the halo effect.
Design/methodology/approach
This study used an experimental research, which focused on control and experimental groups in order to determine if the halo effect caused by the information scope (holistic/specific) can be mitigated via the explanatory feedback or self-explanation method.
Findings
It was found that auditors who received information from the holistic scope tend to experience the halo effect and eventually, their risk assessments of material misstatement also became less accurate when compared to auditors who received information from the specific scope. The explanatory feedback was found to be effective in mitigating the halo effect. However, the self-explanation knowledge acquisition method was not reliable in mitigating the halo effect.
Research limitations/implications
This research use self-explanation with a manual technique but, in practice, most auditors use audit tools based on computer. Experimental setting with computer to self-explanation cannot held because there is limitation of seminar setting. This research used individual decision; in practice most of audit decision with discussion in audit team.
Practical implications
CPA firms can use explanatory feedback, which comes in the form of managers’ review as a form of knowledge acquisition method as a mitigation strategy for the halo effect.
Social implications
The social implication of this research is the halo effect that can influence the decision in many aspects. Individuals must increase their professional values with many trainings that are useful to mitigating the halo effect.
Originality/value
The outcome of this paper was derived from the first accounting study that relied on learning methods as a mitigation strategy for the halo effect. In other words, this study used explanatory feedback and self-explanation as methods to test the halo effect. Previous literature on mitigating the halo effect had used audit experiences, implying that CPA firms’ intervention was unnecessary. Moreover, such study periods had been much longer, thereby, deteriorating the effectiveness of the research. Previous studies had only used the learning method to increase human capital quality and this was not related to any method as a mean to mitigate individual bias, for example, the halo effect, and an issue that was covered by this study.
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Christine Avortri and Richard Agbanyo
Fraud has become one of the most challenging issues facing the financial sector of most countries globally. These fraudulent transactions have led to loss of huge sums of money to…
Abstract
Purpose
Fraud has become one of the most challenging issues facing the financial sector of most countries globally. These fraudulent transactions have led to loss of huge sums of money to financial institutions, as well as to their depositors. The current crises in the financial sector of Ghana, especially among the Deposit Taking Institutions, has largely been attributed to connected lending and lending to affiliated party institutions which are fraudulent corporate governance issues. This study, therefore, aims to assess the determinants of fraud among management staffs in the banking sector of Ghana.
Design/methodology/approach
This study is anchored on the fraud diamond theory (FDT). Primary data was collected from 120 management staffs of the remaining 23 universal banks in Ghana. Estimation was done using structural equation modelling with maximum likelihood estimation technique.
Findings
Fraudulent activities in the banking sector of Ghana are driven by opportunities, pressure, rationalization and capacity to commit fraud, with capacity being the dominant factor.
Practical implications
The regulator should strictly enforce the structure of shareholding as directed in the corporative governance directive to prevent ownership of a bank in the name of one person or a family, which gives high capacity to the Chief Executive Officers to misuse funds. The offenders should also be punished. Finally, the regulator should improve their supervision.
Originality/value
This study places the FDT into the context of the current banking crises of Ghana. The study therefore goes a long way to guide the regulator and government to formulate and implement policies on shareholding structure of banks.
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Novrys Suhardianto, Bambang Subroto and Grahita Chandrarin
The purpose of this study is to describe the development of market based accounting research (MBAR) published in Indonesia for 10 years. This study attempts to explain the topics…
Abstract
The purpose of this study is to describe the development of market based accounting research (MBAR) published in Indonesia for 10 years. This study attempts to explain the topics of MBAR, research method used, the variables, between-variable relationship formed, and the units analysis used in MBAR. This research uses qualitative-descriptive method to create descriptive models of MBAR articles published in accounting journals that have been accredited with minimum grade of B. The analysis of 109 MBAR articles of five accounting journals shows that 10 MBAR themes are still potential. Among three methods in MBAR, the multivariate association study is dominant. Some papers use intervening and moderating model to explore the relationship between accounting data and capital market reaction. The results for each theme are described in a research map that shows the relationship between variables (constructs) of MBAR from three units of analysis. This paper finds some implications to MBAR research agenda in the future, especially for meta-analysis research and triangulation research, due to many inconsistencies of the MBAR findings in Indonesia. In addition, accounting standard research topic is still promising in the moment of accounting standards transition.
Yuliansyah Yuliansyah and Johnny Jermias
Considering the significant contribution of service sector of the whole contribution of the economics, this study aims to investigate the impact of strategic performance…
Abstract
Purpose
Considering the significant contribution of service sector of the whole contribution of the economics, this study aims to investigate the impact of strategic performance measurement sytstem (SPMS) on sustainability strategic outcomes in the industry through organizational learning and service strategic alignment.
Design/methodology/approach
Using a survey study, 158 usable data were analysed using SmartPLS.
Findings
The results show that service strategic alignment and organizational learning mediate the relationship between SPMS and performance for product differentiation companies. For cost leadership companies, the results indicate that there is no mediation of service strategic alignment and organizational learning on the relationship between SPMS and performance.
Research limitations/implications
This study first provides evidence that SPMS improves performance through service strategic alignment and organizational learning for product differentiation companies in which innovation is crucial to thrive and succeed. Second, it introduces to the literature the characteristics of SPMS.
Originality/value
New insights of implementation of SPMS in improving companies’ performance in Indonesian financial institutions are provided.
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Hafiez Sofyani, Haslida Abu Hasan and Zakiah Saleh
This study aims to investigate internal control (IC) implementation in higher education institutions (HEIs). This study also explores determinants, obstacles and contributions of…
Abstract
Purpose
This study aims to investigate internal control (IC) implementation in higher education institutions (HEIs). This study also explores determinants, obstacles and contributions of IC implementation within HEIs.
Design/methodology/approach
The study uses a qualitative research method by conducting semi-structured interviews with internal auditors of HEIs.
Findings
This study found a difference of IC among all HEIs in terms of design. IC implementation is perceived to have a positive contribution to accountability enhancement and fraud mitigation. Several determinants and obstacles faced by HEIs in implementing IC are presented in the paper.
Practical implications
The IC has to be operated effectively to achieve its benefit. However, not all HEIs implement IC properly.
Originality/value
This paper is a pioneer study that raises IC implementation in HEIs and its role in governance practices and corruption mitigation.
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Yuliansyah Yuliansyah, Hussain Gulzar Rammal, Maryani Maryani, Ismie Roha Mohamed Jais and Zuraidah Mohd-Sanusi
The study investigates the extent to which organizational learning and innovativeness can improve the firms' performance through a customer-focused strategy.
Abstract
Purpose
The study investigates the extent to which organizational learning and innovativeness can improve the firms' performance through a customer-focused strategy.
Design/methodology/approach
Data were collected from Indonesian financial service firms using a questionnaire-based survey. The 157 useable survey responses were analysed to test the proposed hypotheses using SmartPLS.
Findings
This study finds that both organizational learning and innovativeness have a positive effect on performance. The effect of organizational learning on performance depends on the variations of the customer-focused strategy. However, innovativeness does not mediate through customer-focused strategy to enhance performance.
Practical implications
In firms that implement business model innovation, managers should focus on resource flexibility. Where it is responsive, managers need to be concerned with ensuring various uses of existing resources to understand the performance effectively.
Social implications
As one of the types of dynamic capabilities, organizational learning and innovativeness are also important antecedents of performance.
Originality/value
This study extends the business innovation model from the adaptability of customer-focused strategy. The findings confirm that organizational learning has a prominent role in meeting customer needs for a dynamic market.
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Hafiez Sofyani, Suryo Pratolo and Zakiah Saleh
This study aims to examine the determinants of accountability and transparency of Indonesian village government(s), namely, the competence and organisational commitment of village…
Abstract
Purpose
This study aims to examine the determinants of accountability and transparency of Indonesian village government(s), namely, the competence and organisational commitment of village government staff, and the consequences of accountability and transparency for village community trust.
Design/methodology/approach
This research was conducted in village governments in the province of the Special Region of Yogyakarta, covering four regencies: Sleman, Bantul, Kulon Progo and Gunung Kidul. A total of 128 village governments participated in this research. Data were collected by distributing a questionnaire survey, and a partial least squares technique was used to test the research hypotheses.
Findings
The study revealed that village government staff's competence and organisational commitment are positively associated with accountability. However, organisational commitment and accountability are not associated with transparency. In addition, it was discovered that transparency is positively associated with village community trust but accountability is not.
Originality
By testing the determinants and consequences of accountability and transparency following the ratification of the new village law regulating village government governance, this study is, to the best of the authors’ knowledge, pioneering research.
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Hendy Mustiko Aji and Basu Swastha Dharmmesta
With concern on cross-religion research, this study aims to examine Christian consumer attitude towards Islamic TV advertising in Indonesia. This study includes together both…
Abstract
Purpose
With concern on cross-religion research, this study aims to examine Christian consumer attitude towards Islamic TV advertising in Indonesia. This study includes together both subjective norm and dogmatism in an analysis as moderating variables.
Design/methodology/approach
An online survey for 186 sample respondents was conducted to test nine hypotheses. Multi-group moderation test was conducted to test the moderation effect of subjective norms and dogmatism on the model.
Findings
The results indicate that Christian intrinsic religiosity has a significant negative relationship with Islamic TV advertising credibility. Consumers’ attitudes towards Islamic TV advertising are proven to be the consequence of Islamic TV advertising credibility, even if the relationship is inverted. Moreover, this study concludes that subjective norms and dogmatism significantly moderate the relationship between Islamic TV advertising credibility and attitudes towards Islamic TV advertising differently. Subjective norms tend to weaken the relationship, while dogmatism strengthens it.
Research limitations/implications
During the process of this study, the authors uncovered three research limitations. First, too many measurement items for dogmatism eliminated from the analysis. Second, having balanced proportion for the high and low group has become the concern of this study, Third, a sample size of 186 is not adequate for such a complex model.
Practical implications
Managers should employ endorsers with multi-faceted images who can be accepted by all segments of society to combat the negative perception and attitudes of Christian consumers on Islamic attributes in TV advertising.
Originality/value
This paper contributes to the literature on cross-religion marketing research, especially on the topic of advertising, by comparing the internal influence (dogmatism) and external influence (subjective norm) on attitude towards Islamic TV advertising.
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Polydoros Demetriades and Samuel Owusu-Agyei
The purpose of this paper is to examine Toshiba’s fraudulent financial reporting in relation to the fraud diamond (pressure, opportunity, rationalisation and capability).
Abstract
Purpose
The purpose of this paper is to examine Toshiba’s fraudulent financial reporting in relation to the fraud diamond (pressure, opportunity, rationalisation and capability).
Design/methodology/approach
A quantitative empirical research, analysing secondary data from Toshiba’s published annual reports before restatement, from 2008–2014 has been used. A simultaneous equations approach was used to test the hypothesis. Excel software was used to analyse secondary data and to carry out correlation analysis and descriptive statistics analysis.
Findings
This study uncovers evidence that pressure proxied by return on assets (ROA), the opportunity proxied by ineffective monitoring (BDOUT), rationalisation proxied by audit opinion (AO) and capability proxied by board member changes (BCHANGE) had moderate to strong relationship to financial statement fraud (FSF) (proxied by Beneish M-score model). However, ROA has a negative and significant effect on Toshiba’s FSF. BDOUT, AO and BCHANGE have positive and significant effect on Toshiba’s FSF. Furthermore, there is no multicollinearity problem within the four variables. Overall, this study has statistically proven that all dimensions of fraud diamond are required for the explanation of Toshiba’s accounting scandal.
Originality/value
Although a few studies discuss the four dimensions (fraud diamond), none, to our surprise, exists which explain the circumstances led Toshiba’s high-level executives to commit fraud. This study is the first thorough investigation of Toshiba’s accounting scandal that uses all four dimensions to explain Toshiba’s FSF.
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Lufthia Sevriana, Erie Febrian, Mokhamad Anwar and Yudi Ahmad Faisal
In Indonesia, the Islamic Economics and Finance Sector is growing rapidly, but the literature on Islamic financial literacy is still minimal. This study aims to show research…
Abstract
Purpose
In Indonesia, the Islamic Economics and Finance Sector is growing rapidly, but the literature on Islamic financial literacy is still minimal. This study aims to show research opportunities with the theme of Islamic financial literacy, especially inclusive Islamic financial planning through bibliometric analysis of Scopus and connected papers.
Design/methodology/approach
A comma separated value (CSV) file containing more than 2,000 references meta data was used for analysis on Vos Viewer in the period of 1963–2020. The grouping of network visualization maps is done using six keywords, namely, “Financial Literacy,” “Financial Inclusion,” “Islamic Financial Literacy,” “Financial Planning,” “Personal Finance” and “Household Finance.”
Findings
The findings complement the keywords that are generally used as references in the formation of theories regarding inclusive Islamic financial planning. After combining the “ris” file from the connected paper, the most used terms are financial knowledge, financial education, financial behavior, financial decision-making process, financial inclusion, risk sharing and financial discourse.
Originality/value
The proportion which planned to be applied in Indonesia will differentiate the inclusive Islamic financial planning framework from what has been done before. This study outlines the basis of the relevant literature review in the theme of Islamic financial literacy research, especially inclusive Islamic financial planning.