Haryono Umar, Rahima Purba, Magda Siahaan, Siti Safaria, Welda Mudiar and Markonah Markonah
This paper aims to test the effectiveness of the Haryono Umar (HU)-model used in corruption prevention strategies through corruption detection as a tool for detecting corruption…
Abstract
Purpose
This paper aims to test the effectiveness of the Haryono Umar (HU)-model used in corruption prevention strategies through corruption detection as a tool for detecting corruption because the mode of corruption is increasingly dynamic and complex by focusing on the causes of corruption: pressure, opportunity, rationalization, capability and lack of integrity.
Design/methodology/approach
The research uses multiple regression methods, classification and regression trees and the HU-model application system developed by researchers. The research sample uses secondary data from financial reports on the Indonesia stock exchange according to organizational clustering (such as red, grey and green areas).
Findings
The research result showed that of the 470 sample companies, there were 445 companies, or 98.9%, in the red cluster (indicated corruption), 19 companies, or 4.04, in the green clusters or not indicated corruption and six companies, or 1.28%, were included in the grey cluster or potential corruption. By knowing the cluster of an organization, efforts to prevent corruption can be made effective and efficient. Implementing the HU-model proves that the amount of pressure, the abundance of opportunities, the ease of rationalization and the high level of position and authority strengthen the drive for corruption if there is a lack of integrity.
Research limitations/implications
Each internal organization can use this model independently and find conditions related to corruption so that they can immediately take action to prevent it.
Originality/value
The application of the HU-model is a discovery in preventing corruption by focusing on the possibility of corruption occurring in each organization through organizational clustering.
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Magda Siahaan, Harry Suharman, Tettet Fitrijanti and Haryono Umar
Business Principles for Countering Bribery, 2003, helps companies design and implement anti-bribery policies, one of anti-corruption. Since then, the business environment has…
Abstract
Purpose
Business Principles for Countering Bribery, 2003, helps companies design and implement anti-bribery policies, one of anti-corruption. Since then, the business environment has changed, can carry out anti-corruption activities from within the organization through a management system. Currently, the business world recognizes the existence of an integrated governance, risk management and compliance (GRC), where one of the goals is to overcome the risk of corruption in the organization. Therefore, this study aims to clarify the concept of integrated GRC implementation within the organization through previous studies from 2007 to 2021.
Design/methodology/approach
This study was designed in a systematic literature review based on five journal publishers’ articles/journals from the Web of Science, Scopus and Google Scholar databases. Keywords used to search consist of Anti-Corruption (AC); Governance (G); Risk Management (RM); Compliance (C); GRC. The four keywords G, RM, C and GRC, are filtered based on articles that correlate with AC.
Findings
Overall, this review shows a few concepts for integrated GRC implementation in organizations that effectively support the prevention and detection of corruption. Although no empirical research has been found in the literature review, these three GRC silos – governance, risk management and compliance – support anti-corruption. In other words, it is hoped that the successful implementation of the integrated GRC in the future can improve the anti-corruption capabilities to be achieved in every organization.
Research limitations/implications
Research only discusses one internal function within the organization, of the many internal functions that are known to detect and prevent corruption.
Practical implications
Organizations can use this review to understand the importance of internal functions in combating the risk of corruption with a more consistent and committed commitment to implementing an integrated GRC.
Originality/value
As far as the authors’ search is concerned, there is no review of the concept of integrated GRC implementation against anti-corruption. It invites researchers to examine the actual implementation of this integrated GRC in organizations.
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Magda Siahaan, Harry Suharman, Tettet Fitrijanti and Haryono Umar
The phenomenon of corruption requires extra handling to achieve zero corruption. The purpose of this paper is to examine the integrated governance, risk management and compliance…
Abstract
Purpose
The phenomenon of corruption requires extra handling to achieve zero corruption. The purpose of this paper is to examine the integrated governance, risk management and compliance (GRC) implementation, the quality of internal audits and management's commitment to improving the ability to detect corruption and its impact on the company's financial performance.
Design/methodology/approach
This paper used primary and secondary data. Financial statement data and survey results from participants in 69 state-owned companies were analyzed using the Partial Least Square method.
Findings
There was a positive and significant effect of the integrated GRC implementation, quality of internal audit and management's commitment to increasing the organization's internal capability in detecting corruption. However, the failure to detect corruption mediates the effect of management commitment on financial performance. Besides, the organization's three internal factors could be better because their functions could be more optimal and require further improvement.
Research limitations/implications
State-owned companies are continuing to be restructured, so these results can be helpful for now. However, they must update continuously with developments related to the composition and classification of state-owned companies.
Practical implications
Organizations can improve their ability to detect corruption in the workplace by using an early warning system such as the integrated GRC, internal audit quality and a high commitment from management.
Originality/value
To the author's limited knowledge, empirical research on integrated GRC implementation, internal audit quality and management commitment are still rare if they improve the detection of corruption ability. It uses the factors that cause corruption in the fraud hexagon to analyze the financial performance.
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Mohammed Sani Abdullahi, Marina Arnaut, Adams Adeiza, Mahmoud Ahmad Mahmoud, Javad Shahreki, Osaro Aigbogun, Farouk Umar Kofar Naisa, Muhammad Shaheer Nuhu and Abba Ya'u
The purpose of this research is to assess how full-time tenured academic staff promotion practices (SPP) in Malaysian private universities (MPUs) influence academic staff…
Abstract
Purpose
The purpose of this research is to assess how full-time tenured academic staff promotion practices (SPP) in Malaysian private universities (MPUs) influence academic staff engagement (SE) and academic staff performance (SP).
Design/methodology/approach
The research used quantitative and descriptive methods, focusing on MPUs' academic staff as the unit of analysis. Sampling involved simple random and stratified techniques, with 314 academic personnel surveyed. Participant data was collected through a questionnaire, and study hypotheses were tested using partial least squares structural equation modeling (PLS-SEM) via a bootstrapping approach.
Findings
The findings show that SE somewhat mediates the connection between SPP and SP and that SPP significantly influences SP.
Practical implications
This study emphasizes the importance of impartiality and transparency within university administration when promoting academic staff. Universities should adopt modern strategies and approaches for advancing their employees to higher positions, doing so will motivate employees to fully invest in their work, leading to sustained high-performance levels.
Originality/value
This research has substantially improved the understanding and the practical utilization of literature about SP, SPP and SE. This improvement can potentially facilitate the development of models, theories, research initiatives, and practical strategies geared toward enhancing staff efficiency.
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Tulus Suryanto and Simon Grima
In this chapter we investigated the importance of the Audit Statement of Opinion in the Final Audit Report to ensure good corporate governance and to reduce earnings management…
Abstract
In this chapter we investigated the importance of the Audit Statement of Opinion in the Final Audit Report to ensure good corporate governance and to reduce earnings management and ensure accurately informed corporate decisions. After going through literature and discussing with peers we hypothesized that this does have an effect on all the three processes.
A self-administered survey was purposely designed for the study after consulting the literature and referring to established frameworks and consulted with accounting executives. The survey consisted of an introduction page and four sections contained statements relating to each of the following four themes: “earnings management”; “audit statement and report”; “corporate governance”; and “the corporate decision.” For all statements, participants were asked to respond to a five-point Likert items ranging from “strongly disagree” (coded as “1”) to “strongly agree” (coded as “5”).
The research was conducted with a population of 100 accounting managers and financial managers of manufacture companies listed on Bursa Efek Indonesia (BEI) during 2015. To test the hypothesis, we used SPSS (Version 22) to carry out a regression analysis using the F and t tests.
It is determined that the three hypotheses were correct and the Audit Statement of Opinion in the Final Audit Report influences corporate governance and earning management reducing deviant behavior and that there is a significant reliance by Indonesians managers/investors on it when taking corporate decision.
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Ande Langga, Andriani Kusumawati and Taher Alhabsji
Investigating the influence of intensive distribution and sales promotion towards customer-based brand equity, repurchase intention and word-of-mouth (WOM) (study on Suzuki car…
Abstract
Purpose
Investigating the influence of intensive distribution and sales promotion towards customer-based brand equity, repurchase intention and word-of-mouth (WOM) (study on Suzuki car owners in PT Surya Batara Mahkota Wilayah Nusa Tenggara Timur).
Design/methodology/approach
The research was conducted in East Nusa Tenggara (NTT) and the analysis unit was customers of PT. Surya Batara Mahkota NTT (PT SBM NTT) as the owner of the Suzuki car. The population is 1,782 Suzuki car owners who bought their cars from PT SBM NTT, based on data from 2015. The sampling technique is the multi-stage area sampling.
Findings
Incentives distribution had significant and positive influence towards brand equity and repurchase intention. Sales promotion had significant and positive influence towards word-of-mouth (WOM), but it did not have influence towards brand equity. Brand equity had significant influence towards repurchase intention and WOM. On the other hand, repurchase intention did not have influence towards WOM.
Originality/value
The originality of this study was that the researchers did not find a previous study that discussed the relationship between intensive distribution and repurchase intention, between sales promotion and WOM and between customer-based brand equity and WOM. Previous studies used different variables as determinants of positive WOM.
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Umar Habibu Umar, Abubakar Isa Jibril and Sulaiman Musa
This study aims to investigate the impact of board attributes on the corporate social responsibility (CSR) expenditure of the listed firms before (2019) and during (2020) COVID-19…
Abstract
Purpose
This study aims to investigate the impact of board attributes on the corporate social responsibility (CSR) expenditure of the listed firms before (2019) and during (2020) COVID-19 in Nigeria.
Design/methodology/approach
The data were manually extracted from the annual reports of all the listed companies that published their reports for the years. A total of 266 firm-year observations were generated, comprising 140 and 126 observations for 2019 and 2020, respectively.
Findings
The results indicate that the frequency of board meetings and foreign directors on the board significantly influence CSR expenditure before and during COVID-19. Board independence had a significant positive association with CSR expenditure before COVID-19 but insignificantly positive during it. However, board size and gender diversity do not influence CSR expenditure before and during COVID-19.
Research limitations/implications
The study used secondary data from the annual reports to compare the impact of board attributes on the CSR expenditures of listed firms in Nigeria between 2019 and 2020.
Practical implications
Providing effective CSR regulations and incentives could motivate or mandate the board of directors to incur CSR expenditure within the company’s financial capacity for society’s welfare, particularly under challenging times like COVID-19.
Social implications
Encouraging firms to incur more CSR expenditures to their ability will contribute to poverty alleviation and improve socio-economic development.
Originality/value
This study is one of the few that investigated the effects of board characteristics on CSR expenditure for the welfare of the poor and the needy. Besides, it uniquely focused on comparing the results before and during COVID-19.
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Umar Habibu Umar, Abubakar Isa Jibril and Sulaiman Musa
This study aims to examine the effects of audit committee attributes on corporate philanthropic donations before and during the COVID-19 pandemic.
Abstract
Purpose
This study aims to examine the effects of audit committee attributes on corporate philanthropic donations before and during the COVID-19 pandemic.
Design/methodology/approach
The study targets Nigeria’s listed firms between 2019 and 2020. We hand-collected the data from the available published annual reports of 141 and 128 firms for 2019 and 2020, respectively. Therefore, the authors used a total of 269 firm-year observations for the study. The authors used ordinary least square regression to analyze the data and Tobit regression to establish the robustness of the results.
Findings
The results indicate that the frequency of audit committee meetings has a significant positive relationship with corporate philanthropic donations before and during COVID-19. In the case of audit committee independence, it has only a significant positive relationship with corporate philanthropic donations during the pandemic. However, the findings reveal that audit committee size and foreign directors on the audit committee do not influence corporate philanthropic donations before and during COVID-19.
Research limitations/implications
The study considers audit committee characteristics out of the corporate governance mechanisms that can influence the philanthropic donations of the listed firms in Nigeria over two years from 2019 and 2020.
Practical implications
The findings have practical implications for encouraging the audit committee to support philanthropic donations for the welfare of the poor and the needy, particularly in difficult times like the COVID-19 period. The results could also help regulators and policymakers to provide regulations and policies that can encourage firms to participate actively in philanthropic activities to their best ability.
Social implications
Motivating firms to provide philanthropic donations for the welfare of underprivileged persons could strongly support the government’s effort to minimize the socioeconomic problems caused by COVID-19.
Originality/value
The study contributes to the scant literature that establishes the impact of audit committee attributes on firm philanthropic donations toward helping the poor and the needy in difficult periods.
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Cosmas Gatot Haryono and Louisa Christine Hartanto
This paper aims to explore how Indonesian males who are entrepreneurs in make-up artists navigate their businesses in a society that relies on hegemonic masculinity. This goal is…
Abstract
Purpose
This paper aims to explore how Indonesian males who are entrepreneurs in make-up artists navigate their businesses in a society that relies on hegemonic masculinity. This goal is reached by concentrating on male make-up artist entrepreneurs in five Indonesian provinces and investigating how they actively rewrite their gender and inherent vocations by societal norms.
Design/methodology/approach
This paper adopts a qualitative phenomenological approach with methods. In-depth interviews and observations were conducted with 28 informants in five provinces of Indonesia.
Findings
These findings show that, aside from self-concept, family support is the most crucial determining factor that pushes men make-up artists to become businesses in the face of so many rejections. Persistence in battling for their fate is also critical in efforts to erase themselves, who are constantly subjected to hegemonic masculinity. Aside from that, it appears that the government's role in attempts to promote gender equality in all fields of business in Indonesia remains limited.
Originality/value
This paper contributes to the gender and entrepreneurship literature by providing a broader exploration of male entrepreneurs working in the field of female make-up artists in a society that still adheres to hegemonic masculinity.
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Sri Herianingrum, Indri Supriani, Raditya Sukmana, Effendie Effendie, Tika Widiastuti, Qudsi Fauzi and Atina Shofawati
This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.
Abstract
Purpose
This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.
Design/methodology/approach
This study used a qualitative method based on library research sourced from books, financial reports and another previous research.
Findings
The results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line.
Research limitations/implications
This study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia.
Originality/value
Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.