Jurnal Siasat Bisnis

Differences in the influence of the board of directors and the board of commissioners on real earnings management: empirical evidence from Indonesia

Mardianto — 2024-07-16

Purpose – This research investigates the influence of the Board of Directors (BOD) and the Board of Commissioners (BOC) on real earnings management (REM) practices in Indonesian manufacturing companies. Real earnings management involves genuine alterations to operational decisions that affect financial reporting.
Design/methodology/approach – The research uses a sample of manufacturing firm listed on Indonesia Stock Exchange (BEI) from 2016 to 2022 and uses panel data regression techniques, including the Pooled Least Square (PLS) and Fixed Effect Model (FEM), to examine the effects of BOD and BOC characteristics on REM. The empirical analysis considers multiple proxies for BOD and BOC attributes, such as board size, independence, meeting frequency, and expertise. Additionally, control variables including leverage, firm size, and growth indicators are incorporated into the analysis.
Findings – The findings reveal a significant positive relationship between the presence of BOD and REM activities. In contrast, the presence of BOC demonstrates a non-significant but negatively associated impact on REM. Furthermore, the research identifies the moderating role of BOC in strengthening the relationship between BOD and REM.
Research limitations/implications – The research contributes to the existing literature by providing empirical insights into the roles of BOD and BOC in shaping REM practices within the Indonesian manufacturing context. These findings highlight the importance of board characteristics in influencing financial reporting decisions and emphasize the need for effective corporate governance mechanisms to mitigate opportunistic behaviors related to earnings management.
Practical implications – Enhancing corporate governance practices, provide an input for more effective board composition, increase the investor confidence and transparency, enhance policy implications and provide advice for company’s long-term performance focus.
Originality/value – This research addresses a gap in the literature by focusing on the Indonesian context. Use the BOC to moderate the relationship between BOD and REM may be less common in the context of Indonesia and even in regional focus.

Challenges of electric vehicle adoption in Indonesia: Revealing the hidden factors affecting purchase intention

Rifelly Dewi Astuti — 2024-07-31

Purpose – Recently, electric vehicles (EVs) have seen significant development worldwide. Indonesia has responded by implementing various policies to support the adoption of EVs, which are touted as the future environmentally friendly transportation solution. However, in Indonesia, the purchase intention for EVs still needs to reach expectations, reaching only 14,93% of the target in 2023. This study analyzes the antecedents of benefit factors determining the intention to buy an electric vehicle. This study will fill the gap in earlier research by comprehensively examining the factors that influence EV purchase intention in Indonesia.
Design/methodology/approach – This study will fill the gap in earlier research by comprehensively analyzing the factors that influence EV purchase intention in Indonesia. This study will empirically examine the relationship between perceived usefulness, perceived ease of use, perceived risk, EV knowledge, public involvement, and purchase intention, as well as the antecedents of perceived usefulness, perceived ease of use, and perceived risk. This study uses a quantitative method with a survey design to gain an in-depth understanding of the factors influencing the purchase intention of electric vehicles in Indonesia. The survey involved 957 potential electric vehicle users in Indonesia who have never bought an EV but have sufficient interest and knowledge about EVs. The research instrument was a validity and reliability-tested questionnaire used to collect accurate and consistent data.
Findings – This study found that although respondents had strong perceptions of the benefits of electric vehicles (perceived usefulness), this did not automatically lead to high purchase intentions. Another surprising finding was that perceived risk also did not directly affect purchase intention. This suggests the presence of other factors inhibiting purchase intention, which need to be identified and addressed.
Research limitations/implications – This research contributes significantly to the literature on adopting electric vehicles (EVs). Perceived ease of use has a positive effect on purchase intention. The results of this study indicate that perceived ease of use does not significantly affect the purchase intention of electric vehicles.
Practical implications – The findings of this study provide several practical implications for electric vehicle manufacturers, marketers, and policy makers.
Originality/value – This research offers a comprehensive approach to understanding the factors that influence electric vehicle (EV) purchasing interest in Indonesia, by including previously overlooked variables such as risk perception, public involvement, and knowledge about EVs. Additionally, this research focuses on the Indonesian context, providing valuable insights into the unique challenges and opportunities in EV adoption in the country, which can form the basis for strategies and policies to promote sustainable transportation.

Social Media Marketing Dynamics and Brand Loyalty: A Sequential Mediation Model in the Indonesian Packaged Drinking Water Industry

Andika Andika — 2024-08-05

Purpose – This study uses the stimulus organism response (SOR) as the theory framework to analyze the sequential mediating roles of brand experience (BE), brand trust (BT), and brand love (BLV) to show the connection between Social Media Marketing (SMM) activities and brand loyalty (BL).

Design/methodology/approach – The study approach was empirically evaluated using 310 SM users as data who follow bottled water brands on any platform and have made a purchase. Furthermore, a sequential multiple mediation model was tested using PLS-SEM.

Findings – The results indicate that SMM significantly impacts BE, and BE significantly affects BT and BLV. Subsequently, this influence of BT and BLV contributes to an increase in BL. Additionally, it was revealed that BE, BT, and BLV sequentially and significantly mediate the relationship between SMM and BL.

Research limitations/implications – Its cross-sectional design, sample bias towards younger, educated respondents, a narrow focus on BL from SMM activities, and a lack of consideration for sustainability and broader product types suggest a need for more diverse and longitudinal future research.

Practical implications – The result emphasizes the need for brands to leverage SM as a critical channel for consumer engagement, suggesting the adoption of personalized, entertaining, and interactive digital campaigns to increase through memorable BE.

Originality/value – This study pioneers using SOR theory to explore the SMM impact on BL within the bottled water industry, providing novel insights through empirically validating a model that links SMM activities with loyalty via BE, BT, and BLV.

The impact of board characteristics on executive compensation: evidence from Jakarta Islamic Index Company

Khodijah Ishak — 2024-08-12

Purpose – This study aims to examine the effect of board characteristics on CEO compensation. The board characteristics examined in this study include board independence and gender diversity consisting of woman on board and independent woman board on CEO compensation.
Design/methodology/approach – The population in this study is a company belonging to the Jakara Islamic Index (JII) at the Indonesian Stock Exchange for the period 2012 - 2016. The sample in this research was determined by purposive sampling method with a total sample of 75 annual reports.
Findings – The results show that independent board gender diversity consisting of female boards and independent female boards has no effect on CEO compensation.
Research limitations/implications – The sample of this study is a company with shares included in the Jakarta Islamic Index on the Indonesian Stock Exchange (IDX) with an observation period of 2012-2016. Hypothesis testing in this study using multiple linear regression analysis.
Practical implications – Boards to oversee and control the actions of opportunists manager, and define the most important decisions of companies, one of which compensation for the CEO, so that corporate objectives can be achieved. With the larger board size will increase oversight function of the board to act opportunistically manager so control oversight of CEO compensation more stringent design and can be defined more precisely.
Originality/value – Research on the role of women in board composition is gaining attention, but not much has been explored in a country with a strong patriarchal culture like Indonesia.

Exploring succession in small business growth in Bandung: Mediating role of strategic change

Ahmad Johan — 2024-08-27

Purpose – This study aims to understand the influence of organizational agility and organizational resilience towards SMEs business performance and analyze the mediating role of strategic change and the moderating role of environmental uncertainty.
Design/methodology/approach – This study uses quantitative approach with survey method. The population of the study is SMEs business actors in Bandung, West Java. The samples are chosen for about 250 respondents using purposive sampling, while the data is processed using structural equation modelling with Partial Least Square.
Findings – The results indicate positive influence of organizational agility on organizational resilience, as well as organizational resilience on SMEs business growth. Additionally, strategic change is found to mediate the relationship of organizational resilience towards SMEs business growth. Environmental uncertainty can strengthen the influence of organizational resilience on strategic change.
Research limitations/implications – The results of this research provide evidence that the underlying mechanisms for increasing organizational resilience and SME business growth can be seen from the perspective of organizational agility and choosing the right strategy.
Practical implications – This study underscores the importance of building organizational agility and resilience to face dynamic environmental situation characterized by rapid change. When SMEs are adaptive and more responsive in carrying out their business, this can lead to positive outcomes for their growth.
Originality/value – The present study provides the underlying mechanisms that shows how organizational agility and resilience can lead to SMEs business growth which operate in the uncertain environment.

Reliving the moments: Exploring tourists’ staycation experience through S-O-R framework

Sri Astuti Pratminingsih — 2024-10-09

Purpose – The purpose of this study is to understand what influences tourists’ travel experience sharing and intention to re-staycation. S-O-R framework is used to examine how social influence affects perceived enjoyment, while subsequently sharing their staycation experience and intention to re-staycation.
Design/methodology/approach – 325 generation Z millennials who have experienced staycation and share it to their social media are chosen using purposive sampling. The data obtained is processed using Structural Equation Modeling with AMOS.
Findings – The findings of this study indicate that social influence affects tourists’ perceived enjoyment on staycation trip, which then leads to staycation experience sharing and tourists’ intention to re-staycation. Experience sharing mediates the influence of perceived enjoyment on staycation trip towards intention to re-staycation. Review credibility and gender differences moderate the relationships between variables.
Research limitations/implications – This study has not yet look at the post-travel or staycation phase of tourists, thus further study is needed regarding post-travel evaluation. It also only uses variables that focus on tourists' perspectives regarding their travel experiences and sharing activities on social media.
Practical implications – Service providers must pay attention to improving the atmosphere not only in terms of physical attributes but also related to the service products available in the hotel so that it can attract the intention to visit again. Offering accommodation experiences can enable potential tourists to return to the destination.
Originality/value – Through the SOR framework, this study show how social influence can be a stimulus for individuals in perceiving enjoyment during their trip, leading them to show a behavioral response of sharing their staycation experience and have intention to go back to relive the moments.