Filmiar Yunida Nawangsari and Iswajuni Iswajuni
The purpose of this paper is to examine the effects of simultaneous and partial auditor switching toward the abnormal return of manufacturing companies listed in Indonesia Stock…
Abstract
Purpose
The purpose of this paper is to examine the effects of simultaneous and partial auditor switching toward the abnormal return of manufacturing companies listed in Indonesia Stock Exchange between 2009 and 2012.
Design/methodology/approach
Auditor switching is divided into some types: lateral Big 4 to Big 4 (B4B4), lateral non Big 4 to non Big 4 (NB4NB4), cross-up (CU) and cross-down. The abnormal return is measured with a market-adjusted model. In this study, company size is used as the control variable and is measured using the natural logarithm of the total assets (LnTA) and return on equity. Multiple linear regression is used for analysis with significant value a= 5 percent. The hypotheses were tested using f-test and t-test.
Findings
The result shows that simultaneous auditor switchings affect the abnormal return. In partial auditor switching, only CU switch has effects on the abnormal return.
Originality/value
This study provides additional literature on the effect of auditor switching, especially on an abnormal return.
Details
Keywords
Iswajuni Iswajuni, Arina Manasikana and Soegeng Soetedjo
The purpose of this paper is to identify the effect of enterprise risk management (ERM) with firm size, ROA and managerial ownership as control variables on firm value that is…
Abstract
Purpose
The purpose of this paper is to identify the effect of enterprise risk management (ERM) with firm size, ROA and managerial ownership as control variables on firm value that is proxied by Tobin’s Q.
Design/methodology/approach
Population of this research was manufacturing companies listed on the Indonesian Stock Exchange (IDX) in 2010–2013. The used method in this research is multiple linear regression-ordinary least square and hypotheses testing using t-test to test the regression coefficients with level of significance of 5 percent.
Findings
The results showed that ERM, ROA and size of the company have a significant positive effect on the firm value. While the managerial ownership has a significant negative effect on the firm value.
Originality/value
The results showed that firm value increases as ERM, ROA and size of the company improves. While the managerial ownership has a significant negative effect on the firm value.
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Sholikha Oktavi Khalifaturofi’ah and Rahmat Setiawan
Profitability is crucial for a company’s sustainability. This study aims to examine the influence of profitability and specific variables on the value of real estate companies in…
Abstract
Purpose
Profitability is crucial for a company’s sustainability. This study aims to examine the influence of profitability and specific variables on the value of real estate companies in Indonesia.
Design/methodology/approach
The study uses a sample of 42 real estate companies listed on the Indonesia Stock Exchange from 2017 to 2023. A static panel regression approach was adopted, with the best model being the fixed effect model, verified through a robustness test.
Findings
The results indicate that the fixed effect model is the most effective in explaining firm value. Profitability, proxied by return on assets (ROAs), does not significantly impact firm value. This finding is confirmed by robustness tests using another profitability measure, return on equity (ROE). Additionally, company size negatively and significantly impacts firm value, while activity ratio and leverage have a positive and significant effect. Liquidity and company growth do not significantly affect firm value.
Research limitations/implications
The research is limited to Indonesian real estate firms, cautioning against broad generalization to other countries or industries. The study could not demonstrate the influence of profitability on the value of real estate companies. Instead, firm value is influenced by company size, activity ratio and leverage.
Practical implications
Real estate firms should increase their activity, optimize funding and consider company size to enhance firm value.
Originality/value
This study contributes to the Indonesian real estate sector by revealing that profitability does not enhance firm value. Indonesian real estate companies generally have low profitability and firm value.
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Keywords
Syed Alamdar Ali Shah, Bayu Arie Fianto, Asad Ejaz Sheikh, Raditya Sukmana, Umar Nawaz Kayani and Abdul Rahim Bin Ridzuan
The purpose of this study aims to examine the effect of fintech on pre- and post-financing credit risks faced by the Islamic banks.
Abstract
Purpose
The purpose of this study aims to examine the effect of fintech on pre- and post-financing credit risks faced by the Islamic banks.
Design/methodology/approach
This research uses primary data for fintech awareness and adoption and secondary data of various financial and economic variables from 2009 to 2021. It uses baseline regression to identify moderation of fintech controlling gross domestic products, size, return on assets and leverage. The findings are confirmed using robustness against key variable bias. It also uses a dynamic panel two-stage generalized method of moments for endogeneity.
Findings
The study finds that the fintech awareness and adoption are not the same across all Islamic countries. The Asia Pacific region is far ahead of the other two regions where Indonesia is ahead in terms of fintech awareness and adoption, and Malaysia is ahead in terms of reaping its benefits in credit risk management. Fintech affects prefinancing credit risk significantly more than postfinancing credit risk. Also, the study finds that Islamic banks suffer from the problem of “Adverse selection under Shariah compliance.”
Practical implications
This research invites regulators to introduce fintech in Islamic banks on war footing. Similar studies can be conducted on the role of other risks such as operational and market risks. Fintech will also help in improving the risk profile and stability of Islamic banks against systemic risks and financial crises.
Originality/value
This research has variety of originalities. First, it is the pioneering study that addresses the effect of fintech pre- and post-financing credit risks in Islamic banks. Second, it identifies “Adverse selection under Shariah compliance” for Islamic banks. Third, it helps identify how fintech can be useful in reducing credit risk that will help in reducing capital charge for regulatory capital.