Putu Agus Ardiana, I Ketut Sujana, Sang Ayu Putu Dinda Natalia and Kadek Dwi Linda Yanthi
This study aims to examine how integrating Tri Hita Karana principles – Parahyangan (spiritual harmony), Pawongan (social harmony) and Palemahan (environmental harmony) �…
Abstract
Purpose
This study aims to examine how integrating Tri Hita Karana principles – Parahyangan (spiritual harmony), Pawongan (social harmony) and Palemahan (environmental harmony) – influences accounting practices and organisational change to combat corruption in Bali’s government institutions, with potential broader applications.
Design/methodology/approach
Semi-structured interviews with 21 departmental leaders were analysed using thematic analysis to understand how Tri Hita Karana principles are embedded in accounting and governance practices.
Findings
The integration of Tri Hita Karana principles fosters ethical behaviour, transparency and accountability. Parahyangan strengthens spiritual accountability in financial reporting, Pawongan enhances collaborative oversight and Palemahan promotes sustainable decision-making, reducing corruption linked to resource misuse. These principles offer a holistic anti-corruption approach that extends beyond compliance, showing potential adaptability in diverse contexts.
Research limitations/implications
While context-specific to Bali, the Tri Hita Karana principles reflect universal values of integrity and sustainability. Further research is needed to adapt these principles to different cultural and organisational environments.
Practical implications
Insights from this study guide policymakers in incorporating cultural values into governance to enhance ethical practices, especially in regions with weak regulatory frameworks.
Social implications
This study highlights how local wisdom like Tri Hita Karana can drive ethical governance, providing a model adaptable to various contexts for sustainable anti-corruption efforts.
Originality/value
This study shows how cultural values can enhance anti-corruption efforts, offering a framework adaptable to diverse global settings.
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The purpose of this paper is to ascertain whether Fortune Global 500 companies embed stakeholder engagement in their sustainability reporting.
Abstract
Purpose
The purpose of this paper is to ascertain whether Fortune Global 500 companies embed stakeholder engagement in their sustainability reporting.
Design/methodology/approach
Quantitative and qualitative content analyses were undertaken on 646 sustainability reports written in English over the period from 2015 to 2017.
Findings
This research found a low level of stakeholder engagement disclosures and scant evidence that sustainability disclosures were drawn upon stakeholder engagement practices. The findings indicate that stakeholder engagement was loosely embedded in sustainability reporting.
Research limitations/implications
Sustainability reports are the sole unit of analysis. Besides, this research is limited to a sample of companies and to a specific period, which limits the generalisation of the research findings.
Practical implications
Embedding stakeholder engagement in sustainability reporting holds companies accountable to their stakeholders. This is because the companies’ sustainability disclosures acknowledge the stakeholders’ concerns and information about the stakeholder engagement methods deployed to address those concerns.
Social implications
Stakeholder engagement promotes accountability by encouraging stakeholders to convey their opinions about corporate sustainability, participate in decision-making processes that impact them, and partake in defining the contents of sustainability reports.
Originality/value
This paper provides insights into the need to link sustainability disclosures with stakeholder engagement disclosures, by articulating who the relevant stakeholders are and how they are engaged on the various sustainability topics – rather than conceiving them to be separate and independent disclosures in a sustainability report.
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Dewa Gede Wirama, Komang Ayu Krisnadewi, Luh Gede Sri Artini and Putu Agus Ardiana
Using the residual dividend theory, this study examines the impact of capital expenditures and working capital on the dividend policies of publicly listed companies in Indonesia.
Abstract
Purpose
Using the residual dividend theory, this study examines the impact of capital expenditures and working capital on the dividend policies of publicly listed companies in Indonesia.
Design/methodology/approach
Using data on public companies (other than those in the financial sector) listed on the Indonesia Stock Exchange from 2011 to 2020, this study collected 870 observations (firm-years). This study employs a regression analysis technique using the STATA application program. The main variables in this study are capital expenditure and working capital, and the control variables are sales growth, firm size, leverage, profitability, liquidity and dummy variables for state-owned enterprises. The dependent variable of dividend policy is proxied by the dividend payout ratio.
Findings
This study’s results support the residual dividend theory’s hypothesis, in which capital expenditure negatively affects a company’s dividend policy. This study also analyzes this effect on companies that pay cash dividends at quantile positions of 25, 30, 50 and 60. The results show that the effect of capital expenditure on cash dividend payments is more pronounced in the case of companies whose cash dividends are in the 50th quantile. This result holds across different specification and endogeneity tests.
Originality/value
This study analyzes the residual dividend theory in Indonesian companies, focusing on localized factors and investment priorities. It challenges traditional Western dividend policies and provides empirical data that enhances the theory’s robustness. The findings have practical implications for investors, policymakers and corporate decision-makers in the Indonesian market.