Proceeding International Conference on Accounting and Finance

The Effect of Financial Performance and Capital Structure on Company Value: An Analysis of Transportation and Logistics

Neni Meidawati — 2026-01-23

This study aims to examine the influence of financial performance and capital structure on the value of transportation and logistics companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2024 period. Financial performance is measured using profitability ratios, while capital structure is assessed through the debt-to-equity ratio, and firm value is measured using market value indicators. The sample was determined using a purposive sampling method, with secondary data obtained from company financial reports that met the established criteria. Data were analyzed using multiple linear regression to evaluate the effect of financial performance and capital structure on firm value. The results show that financial performance has no significant effect on firm value, whereas capital structure has a positive effect. These findings provide important implications for company management and investors in making strategic decisions regarding capital structure to enhance firm value.

Assessing the impact of service tariff system implementation on financial efficiency and institutional performance

Fransiska Novi Kurniasih — 2026-01-23

Background: As a State University with Legal Entity (Perguruan Tinggi Negeri Badan Hukum – PTN-BH), Universitas Negeri Semarang (UNNES) is required to strengthen financial independence and institutional accountability through transparent and performance-based financial management. One strategic instrument to achieve this goal is the implementation of a service tariff system that aligns service quality with actual operational costs. However, the effectiveness of such a system in improving financial management and institutional performance remains empirically underexplored.

Purpose: This study aims to analyze the influence of the implementation of the service tariff system on budget management quality, Revenue Generating Activities (RGA) target achievement, and institutional performance at UNNES as a PTN-BH institution.

Methodology: A quantitative approach was employed using primary data collected from 15 respondents, including financial officers, service unit managers, lecturers, and administrative staff. Structural Equation Modeling – Partial Least Squares (SEM-PLS) was employed to investigate the relationships among the variables.

Results: The results show that the implementation of the service tariff system has a positive and significant effect on budget management quality, RGA target achievement, and institutional performance. These findings indicate that transparent and cost-based tariff mechanisms enhance financial discipline, optimize revenue generation through RGA activities, and strengthen institutional performance. The results also align with Public Value Theory and Stewardship Theory, demonstrating that accountable and cost-reflective tariff policies reinforce managerial responsibility and support the creation of public value.

The phenomenon of budgetary slack in Indonesia: Analyzing mapping causes and mitigation strategies

Rachma Agustina — 2026-01-23

Purpose: This study analyzes the phenomenon of budgetary slack in Indonesian organizations by mapping its determinants, behavioral foundations, and mitigation strategies, as well as examining its implications for governance quality reflected in Indonesia’s Corruption Perceptions Index (CPI).

Design/methodology/approach: This study employs the charting the field method and follows the PRISMA protocol. A total of forty-two articles published between 2014 and 2024 were reviewed from SINTA 1–2 accredited national journals and SCOPUS-indexed journals. The articles were classified based on research topics, methods, causal relationships among variables, behavioral theories, and mitigation approaches.

Findings: The findings show that budgetary slack research in Indonesia is dominated by quantitative methods and produces inconsistent results across key variables, indicating the strong influence of behavioral and contextual factors. Budgetary slack is not only a managerial inefficiency but also a potential indicator of opportunistic behavior and weak governance.

Practical implications: The study highlights the importance of behavioral-based controls, ethical leadership, and transparency to reduce budgetary slack and support accountability improvements related to CPI performance.

Originality/value: This study provides a comprehensive behavioral mapping of budgetary slack research in Indonesia.

Sustainability reporting as a strategic tool to strengthen green competitive advantage and firm value in banking sector

Kunti Sunaryo — 2026-01-23

This study aims to analyze the role of sustainability reporting as a strategic tool for strengthening green competitive advantage and increasing corporate value in the banking sector. Increasing global pressure on the financial sector to contribute to sustainable development by implementing responsible and environmentally friendly business practices drives this research. It is hoped that transparent, integrated sustainability reporting will enable banking companies to build a sustainable green competitive advantage and increase stakeholder trust. This study uses secondary data obtained from the annual and sustainability reports of banks listed on the Indonesia Stock Exchange between 2019 and 2023. The SEM-PLS method was used to analyze the data and test the effect of sustainability reporting on green competitive advantage and company value while controlling for company size and profitability. This study uses secondary data obtained from the annual and sustainability reports of banks listed on the Indonesia Stock Exchange between 2019 and 2023. The SEM-PLS method was employed to analyze the data and examine the impact of sustainability reporting on green competitive advantage and company value while accounting for company size and profitability. The results indicate that green competitive advantage (GCA) significantly and negatively mediates the effect of environmental, social, and governance (ESG) factors on price-to-book value (PBV). This suggests that the green strategies currently adopted by Indonesian banks are considered a short-term cost burden by the market rather than a means to increase company value. Other research shows that the profitability control variable, ROA, has no significant effect on PBV because short-term profits are not considered a sustainable indicator of company value in highly regulated industries, such as banking. Another control variable, company size (ln TA), significantly affects PBV. This suggests that investors prioritize asset scale over profitability or green performance when assessing company value.

The effect of profitability and leverage on company value with carbon emissions disclosure as a mediator in carbon incentive companies in the LQ45 index

Sri Ayem — 2026-01-23

This study aims to analyze the effect of profitability and leverage on company value with carbon emissions disclosure as a mediating variable in carbon-incentive companies listed on the LQ45 Index for the period 2020–2023. The research method uses a quantitative approach with secondary data and purposive sampling techniques. The analysis was conducted using regression tests to test the hypotheses. The results show that profitability has a positive effect on company value, leverage has a negative effect on company value, and carbon emissions disclosure has a significant effect on company value. In addition, carbon emissions disclosure is proven to mediate the relationship between profitability and leverage on company value. These findings confirm that financial and non-financial aspects, particularly carbon emissions disclosure, play an important role in increasing company value in the eyes of investors. The implication of this study is that companies need to increase profitability and maintain proportional leverage, as well as disclose carbon emissions transparently as a form of social and environmental responsibility to increase company value. For investors, these three aspects can be important indicators in assessing a company's prospects. For the government and regulators, these results encourage the need for more transparent emissions reporting policies.

National energy governance in the implementation of energy intensity, carbon emissions, and general energy fuel

Sri Suryaningsum — 2026-01-23

This study aims to provide an understanding of national energy governance in the implementation of energy intensity, carbon emissions, and general energy fuel (coal and oil and gas minerals) in Indonesia. This study analyzes national energy governance in the implementation of energy intensity, carbon emissions, and general energy fuel (coal and oil and gas minerals). The study was conducted using a qualitative descriptive research approach, focusing on transportation modes, in this case, as they generate carbon emissions during movement.The study results indicate that the implementation of carbon emissions generated by transportation modes has a reciprocal impact on national energy governance in the implementation of energy intensity, carbon emissions, and general energy fuel (coal and oil and gas minerals) in Indonesia.Estimated CO2 emissions from transportation modes. Estimated CO2 emissions for a trip from Yogyakarta to Jakarta: by train, 7.43 kg CO2 is produced, by car, 27.12 kg CO2 is produced, and by airplane, 65.17 kg CO2 is produced. These carbon emissions results indicate that the lowest is the train mode. Transportation carbon emissions originate from general energy fuel sources (coal and oil and gas), specifically from the combustion of fuels (gasoline, diesel, aviation fuel). The relative energy intensity of cars compared to trains is about ≈ 3.6 times and the relative energy intensity of airplanes compared to trains is about ≈7.9 times. The relative carbon emission of cars compared to trains is about ≈ 3.6 × and the relative carbon emission of airplanes compared to trains is about ≈ 8.7 ×These fuel sources are still entirely dependent on the oil and gas sector. Every increase in mobility means an increase in demand for petroleum. This demonstrates the need for energy governance policies that integrate the transportation and upstream mining sectors. The implementation of transportation modes in producing carbon emissions is inseparable from the use of energy intensity. The dynamics of energy intensity are directly proportional to the type of fuel and the efficiency of the engine system.

Implementation of Coretax in payment of periodic PPh 21 through tax deposit and its impact on tax administration practices in Paniradya Kaistimewan

Wendysstila Lituhayu Roshita — 2026-01-23

Coretax is a new system of the Directorate General of Tax for the modernization of tax administration. However, its implementation in Paniradya Kaistimewan Yogyakarta faces obstacles in the form of tax deposits that are not detected even though payments are made through Bank BPD DIY and the Cash Management System (CMS). This study aims to analyze the implementation of Coretax in the payment of PPH 21 Masa, identify the causes of undetected deposits, and its impact on tax administration. This study employed a qualitative descriptive research method with interview and documentation techniques. Data analysis was conducted by using thematic analysis. The results of the study showed that Coretax performed well in the stages of creating e-Bupot, billing codes, and payment codes, but was constrained by the integration of deposit data. This obstacle is due to technical limitations of the system and understanding of human resources, which has an impact on increasing administrative burden and the risk of delays in reporting the Periodic Tax Return. In conclusion, technological readiness (Management Information System) and understanding of human resources (Public Administration) are important factors in supporting the effectiveness of Coretax implementation.

The pivotal role of sharia supervisory boards in enhancing ESG performance: A maqasid al-shariah perspective

Rifqi Muhammad — 2026-01-23

This conceptual paper examines the critical role of Sharia Supervisory Boards (SSBs) in driving Environmental, Social, and Governance (ESG) performance within Islamic banking institutions. Grounded in Maqāṣid al-Sharī'ah framework and legitimacy theory, we propose that SSBs serve as strategic catalysts rather than mere compliance mechanisms in sustainability transformation. The study introduces novel mediating variables including Spiritual-Ecological Intelligence - the integration of environmental consciousness within Islamic spiritual values, and Maqasid-Based Strategic Alignment - the systematic integration of higher Shariah objectives into corporate strategy. Through synthesis of contemporary literature from Scopus-indexed journals, we develop a comprehensive framework demonstrating how SSB characteristics - particularly diversity, expertise in sustainability matters, and independent oversight - directly influence green financial innovation and stakeholder engagement quality. The paper argues that effective SSBs transcend traditional supervisory functions by fostering Ethical Transformation Mechanisms that align banking operations with both Islamic principles and global sustainability standards. Our conceptual model provides valuable insights for regulators in developing SSB competency frameworks that emphasize sustainability expertise, while offering practical guidance for Islamic banks to leverage their governance structure as competitive advantage in emerging green finance markets. The study contributes to theoretical advancement by bridging Islamic governance principles with contemporary sustainability discourse, proposing testable propositions for future empirical research in Islamic finance and ESG performance literature.

Do sustainable development goals and carbon emission disclosures have an impact on financial performance?

Muhammad Asrul Aswar — 2026-01-23

This study aims to examine the impact of Sustainable Development Goals (SDGs) disclosure and carbon emission disclosure on financial performance in Indonesia. The sample consists of 55 companies listed in the Jakarta Islamic Index (JII) with a total of 256 firm-year observations during the 2020–2024. This study employs panel data regression using the Fixed Effect Model (FEM). The results show that SDGs disclosure has a negative effect on financial performance. However, carbon emission disclosure has no significant effect on financial performance. These findings suggest that SDGs may increase sustainability related expenditures, thereby exerting pressure on firm’s financial performance. This study contribute to the sustainability and accounting literature by employing a pretax income to average equity to mitigate the influence of sectoral differences in tax rates.These findings are expected to serve as a reference for companies, governments, and regulators in formulating policies that support business sustainability.

The mediating role of financial reporting quality in the relationship between ESG performance and firm value: evidence from SRI-KEHATI indexed firms

Sri Astuti — 2026-01-23

This study examines the relationship between Environmental, Social, and Governance (ESG) performance and firm value. It focuses on the mediating role of financial reporting quality among firms listed on Indonesia’s SRI-KEHATI Index. Using data from 117 firm-year observations between 2018 and 2023, the study employs multiple regression and mediation analyses with Hayes’ PROCESS Macro to evaluate direct and indirect effects. The results show that ESG performance significantly positively affects on firm value, indicating that companies that integrate sustainability practices into their strategies are valued more favorably by the market. However, the mediating effect of financial reporting quality is not statistically significant. This suggests that ESG primarily influences firm value through direct mechanisms, such as enhanced corporate reputation, stakeholder trust, and strategic positioning, rather than through improvements in financial reporting quality. These findings underscore the strategic importance of ESG integration as a driver of long-term value creation and investor confidence. Managers should view ESG as a strategic investment, emphasizing transparency, sustainability reporting, and stakeholder engagement. Future research should incorporate broader samples, objective ESG metrics, and emerging sustainability reporting frameworks to enhance generalizability and comparability.

The effect of carbon emission disclosure, eco-efficiency, and green innovation on corporate value with environmental performance as a moderating variable

Rizka Afrilianita — 2026-01-23

This study aims to analyze the effect of carbon emission disclosure, eco-efficiency and green innovation on corporate value, as well as the moderating effect of environmental performance on the relationship between carbon emission disclosure and green innovation on corporate value. The sample in this study is the energy sector manufacturing companies listed on the Indonesian Stock Exchange for the 2022-2024 period. Quantitative analysis using the Moderated Regression Analysis (MRA) technique. It can be concluded that carbon emission disclosure, green innovation, environmental performance, and the interaction variables carbon emission disclosure × environmental performance, and green innovation × environmental performance simultaneously have a significant effect on corporate value. Eco-efficiency and eco-efficiency × environmental performance shows no significant effect on corporate value

Entrepreneurial competence, financial literacy, and sustainable performance: exploring the moderating role of resilience in entrepreneurship (in MSMEs in Yogyakarta)

Sri Lestari Yuli Prastyatini — 2026-01-23

Study This aim For test influence competence entrepreneurship and literacy finance to performance sustainable MSMEs, as well as analyze role resilience entrepreneurship as variables moderation in connection said. Research This expected give benefit practical for MSME actors and manufacturers policy in develop improvement strategies ability and resilience business For support sustainability business. In general theoretical, research This expand study literature about factors that influence performance sustainable MSMEs with notice aspect competence, literacy finance, and resilience entrepreneurship as variables. The research sample was taken using a purposive sampling technique, so that respondents were relevant to the research criteria. Data were collected through questionnaires distributed to 113 MSMEs. The results of this study indicate that entrepreneurial competence and financial literacy variables have a positive and significant effect on sustainable performance. These two variables play an important role in improving the ability of business actors to manage their businesses effectively in facing market challenges. While entrepreneurial resilience is able to significantly moderate the relationship between financial literacy and sustainable performance, entrepreneurial resilience is not able to significantly moderate the relationship between entrepreneurial competence and sustainable performance. The results of this study can help MSMEs in developing more effective MSMEs. This study has a novelty by simultaneously testing the effect of entrepreneurial competence and financial literacy on sustainable performance, and including entrepreneurial resilience as a dual moderating variable in both relationships. This model has not been widely analyzed in previous studies, especially in the context of Indonesian MSMEs. In addition, the study applies the Resource-Based View (RBV) approach to position entrepreneurial competence, financial literacy, and resilience as internal capabilities that determine sustainable competitive advantage. The latest empirical data from 2025 on MSMEs in Yogyakarta provides additional contributions that strengthen the novelty of this research.

Analysis of income tax management article 23 and income tax article 4 paragraph 2 implementation in 2024: a case study of CV Aman Jaya

Karmilita Wulandari — 2026-01-23

Income tax is a type of tax that has an important role in tax revenue in Indonesia. Several types of income tax are Income Tax Article 23 and Income Tax Article 4 Paragraph 2. This study aims to analyze the management of Article 23 Income Tax and Article 4 Paragraph 2 Income Tax on CV Aman Jaya. The management includes tax calculation, payment, and reporting. Income Tax Article 23 is imposed on the payment of consultant services at a rate of 2%, while Income Tax Article 4 Paragraph 2 is imposed on land and/or building leases at a rate of 10%. This research uses a qualitative method. The data taken for this study uses secondary data obtained from documents on a client company that uses consulting services at the Berkah Selalu Tax Consultant. Secondary data in this study is in the form of proof of payment of Income Tax Article 23 and Income Tax Return Article 23 as well as proof of payment of Income Tax Article 4 Paragraph 2 and Income Tax Return Article 4 Paragraph 2. The results of this study explain that the management of Article 23 Income Tax and Article 4 Paragraph 2 Income Tax from calculation, payment to reporting on CV Aman Jaya is in accordance with applicable tax provisions.

Determinants of fintech peer to peer lending usage: evidence from service quality, interest, and trust in Indonesia

Fahrul Imam Santoso — 2026-01-23

This study aims to empirically examine the effects of service quality, user interest, and trust on the usage of Financial Technology (Fintech) Peer-to-Peer (P2P) Lending applications in Indonesia. A quantitative descriptive approach was employed, using online survey data collected from 300 active P2P lending users selected through random sampling. The research instrument utilized a five-point Likert scale (1–5) to measure perceptions of service quality, user interest, and trust, with validity and reliability tested using Confirmatory Factor Analysis (CFA) and Cronbach’s Alpha. Data were analyzed through multiple linear regression using SPSS software. The results indicate that service quality, user interest, and trust all have positive and significant effects on the use of P2P lending applications. Among these variables, user interest exerts the most dominant influence, followed by service quality and trust. The Adjusted R² value of 0.761 suggests that the three independent variables collectively explain 76.1% of the variance in application usage behavior. These findings confirm that high-quality digital services, strong user engagement, and a high level of trust are key factors driving sustainable growth and public confidence in Indonesia’s P2P lending industry. This study contributes to fintech adoption research by emphasizing the importance of user experience, security, and technological reliability as primary determinants of digital financial inclusion.

Revisiting tax management determinants: the interplay of capital intensity, liquidity, and firm size in Indonesia

Teguh Erawati — 2026-01-23

This study aims to examine the effect of financial aspects, namely capital intensity and liquidity, on tax management practices in manufacturing companies in Indonesia. In addition, this study also examines the role of company size as a moderating variable that can strengthen or weaken the relationship between independent variables and tax management. A quantitative method with a purposive sampling approach was used to sample 204 years of companies from their financial reports during the 2019-2024 period. The data were analyzed using statistical techniques with the EViews application. The results showed that capital intensity and liquidity did not have a significant effect on tax management. Furthermore, company size proved to be a moderating variable that influenced the strength of this relationship. These findings provide theoretical and practical contributions to corporate tax strategy management, particularly in the context of companies in Indonesia, and provide insights for managers and decision makers on efficient financial and tax management.

Sustainability reporting as a strategic tool to strengthen green competitive advantage and firm value in banking sector

Kunti Sunaryo — 2026-01-23

Corporate governance structures and carbon disclosure quality: a dynamic panel analysis with environmental performance moderation

Archana Reddivari — 2026-01-23

Climate change has elevated the importance of transparent carbon disclosure as firms face increasing scrutiny from regulators, investors, and global stakeholders. In emerging economies, however, disclosure practices remain uneven due to voluntary reporting regimes and varying governance capacities. This study investigates how corporate governance structures, specifically board size and sustainability committee capacity influence carbon disclosure quality, and examines whether this relationship is strengthened by firms’ environmental performance. Using a balanced panel of 185 non‑financial manufacturing firms listed on the Indonesia Stock Exchange from 2018 to 2024, the analysis employs two‑step System Generalized Method of Moments (System GMM) to address endogeneity, unobserved heterogeneity, and the dynamic nature of disclosure behavior. Carbon disclosure quality is measured through a weighted index derived from GRI 305 and the Greenhouse Gas Protocol, while environmental performance is captured using Indonesia’s PROPER rating system. The results show that carbon disclosure is strongly persistent across years, and both board size and sustainability committee capacity significantly enhance disclosure depth. Environmental performance not only improves reporting quality directly but also strengthens the effect of sustainability committee capacity, indicating a complementary relationship between internal governance oversight and verified environmental achievement. These findings contribute to climate‑governance literature by integrating governance structures, external performance validation, and the dynamic progression of carbon reporting. They also offer practical insights for firms and regulators seeking to improve climate‑related transparency.

The impact of carbon emission disclosure, ESG, and gender diversity on financial performance in oil and gas industry

Areta Wahana Putri — 2026-01-23

This study examines the impact of carbon emission disclosure, Environmental, Social, and Governance (ESG) performance, and gender diversity on the financial performance of oil and gas companies in Malaysia and Indonesia. The sector was chosen due to its high-carbon nature and strategic economic role in both countries. Data were collected from companies listed on Bursa Malaysia and the Indonesia Stock Exchange for 2022–2024. Multiple linear regression analysis was used to assess the relationships among the variables. The results indicate that collectively, carbon emission disclosure, ESG performance, and gender diversity significantly affect financial performance. Individually, carbon emission disclosure positively impacts financial performance, suggesting that transparency in environmental reporting enhances credibility and investor confidence. Conversely, ESG performance negatively affects short-term profitability, reflecting the costs of implementing sustainable practices. Gender diversity shows no significant effect, indicating limited immediate financial contribution. These findings provide empirical evidence from the oil and gas sector in Malaysia and Indonesia, where sustainability and inclusivity efforts are evolving. The study highlights that transparency and responsible governance have not yet translated into clear financial gains but are essential steps toward aligning with global sustainability standards and supporting long-term economic advantages.

Financial and non-financial determinants of local government financial performance: evidence from West Java, Indonesia

Antika Antika — 2026-01-23

This study investigates the financial and non-financial determinants of local government financial performance by analyzing panel data from 27 regencies and cities in West Java Province, Indonesia, over the 2019–2023 fiscal period. Recent decentralization reforms in Indonesia have intensified the need for stronger fiscal independence and accountability at the regional level. However, empirical evidence indicates persistent dependence on central transfers and varied performance across regions. This research contributes to the literature by integrating intergovernmental fiscal transfers, regional expenditure, surplus of budget financing (SILPA), audit opinions, government size, and legislative size into a unified analytical framework grounded in stewardship theory and signaling theory. Using a panel-data regression approach, the study reveals that fiscal transfers, regional expenditure, and SILPA negatively and significantly affect financial performance, while audit opinion and government size exert a positive and significant influence. Legislative size shows a positive but statistically insignificant effect. The findings highlight that both financial management quality and institutional governance characteristics jointly shape the fiscal capacity of local governments. This study extends current understanding by providing updated empirical evidence on the post-pandemic fiscal period and offers practical insights for policymakers aiming to strengthen fiscal autonomy and regional accountability.

The influence of good corporate governance, social responsibility, and big four public accounting firms on the disclosure of sustainability reports

Mutiara Fatmawati — 2026-01-23

This study aims to examine the influence of corporate governance (board of directors, independent board of commissioners, audit committee), social responsibility, and big four public accounting firms on the disclosure of sustainability reports on 184 non-cyclical consumer sector companies listed on the Indonesia Stock Exchange (IDX) in 2019 – 2024. Sustainability reports are an important tool for companies to show their commitment to the sustainability of the company that compiles annual financial statements and sustainability reports as a requirement for research samples. The research analysis was by multiple linear regression. The results of the study show that corporate governance in the form of an audit committee affects the disclosure of sustainability reports, social responsibility and the big four Public Accounting Firms have a positive effect on the disclosure of sustainability reports. These findings support the institutional theory, that social pressures in the form of corporate social responsibility practices and auditors' reputations are more supportive of the openness of sustainability disclosures.

Integrated waste accounting for circular economy in local government: a case study of Sleman Regency’s sustainability transition (2022–2024)

Sucahyo Heriningsih — 2026-01-27

This study investigates the integration of public sector accounting with circular economy principles in local waste governance, using Sleman Regency, Indonesia, as a case study between the 2022 until 2024 period. Despite a significant increase in funding for circular economy-related budget allocations (from IDR 2 billion to IDR 6 billion, 2022-2024), these initiatives still account for less than 25% of total waste management expenditure and remain obscured within general service categories. Analysis of financial reports and stakeholder interviews reveals that Sleman’s accounting systems lack CE-specific budget tagging, standardized performance indicators, and mechanisms to trace environmental outcomes. These limitations hinder transparency, strategic evaluation, and long-term sustainability planning. Rather than incremental budget adjustments, the findings underscore the urgent need for public accounting system reformone that embeds ecological value creation, enables performance-based budgeting, and supports cross-sectoral coordination. By positioning accounting as a strategic enabler of sustainability transitions, this study offers a replicable framework for subnational governance innovation in emerging economies.

Public procurement fraud: a systematic review and bibliometric analysis of global evidence

Wuku Astuti — 2026-01-27

Public procurement fraud remains a pervasive issue undermining governance and economic efficiency worldwide. This study conducts a systematic literature review to identify the determinants of public procurement fraud and assess its impacts. Given the critical role of public procurement in government spending, understanding the factors that drive fraud and its consequences is essential to improving procurement systems and governance. Using the PRISMA methodology, this study systematically analyzes 86 academic articles published between 2010 and 2024 from the Scopus database. The findings show that procurement fraud is primarily drive by inadequeate regulatory oversight, excessive discretion in decision-making, and limited use of monitoring and transparency. Its impacts are far-reaching, including significant financial losses, reduced quality of goods and services, and diminished public trust in government institutions. The lack of accountability and transparency further exacerbates these challenges. This review offers a comprehensive synthesis of contemporary research, providing valuable insights for policymakers, procurement practitioners, and scholars. It clarifies the complex nature of procurement fraud, strengthens understanding of the issue and lays a foundation for future strategies to curb fraud and improve procurement practices.

Audit as a tool for enhancing the reliability of financial statements: a case study of Farafenni General Hospital, The Gambia, West Africa

Muhammed Fatty — 2026-01-27

Main Objective – This research aims to examine the role of auditing as a tool for enhancing the reliability of financial statements, focusing on Farafenni General Hospital in The Gambia, West Africa. The study explores how auditing contributes to accountability, transparency, and stakeholder confidence within a public health institution, while also identifying the institutional challenges that limit its effectiveness.

Design/Methodology/Approach – The research adopts a qualitative design using a case study approach. Data were collected through semi-structured interviews with senior management, finance staff, external auditors, and oversight bodies. The analysis was conducted using NVivo 15 software, guided by Agency Theory, to uncover patterns of accountability, communication, and audit effectiveness.

Key Findings – The findings reveal that auditing performs corrective, preventive, and assurance functions that collectively strengthen financial reporting reliability. External audits promote accountability and donor confidence by providing independent verification of financial information. However, the absence of an internal audit unit, weak communication channels, and delayed implementation of audit recommendations undermine the overall impact of auditing. These weaknesses create recurring reporting issues and limit the hospital’s ability to maintain continuous financial reliability.

Theoretical and Practical Implications – The study reinforces the relevance of Agency Theory in explaining the relationship between auditors, management, and oversight bodies. It highlights that while audits reduce information asymmetry, institutional and political constraints can weaken their monitoring function. Practically, the study recommends establishing an internal audit unit, digitizing financial records, and strengthening feedback mechanisms between auditors and management to improve financial governance and accountability in public hospitals.

Novelty – This research is the first to provide an in-depth qualitative analysis of how auditing enhances financial reliability within a Gambian public hospital context. By integrating the perspectives of auditors, management, and oversight institutions, the study contributes original insights into the structural, behavioral, and governance factors shaping audit effectiveness in the public health sector of The Gambia, West Africa.

Investigating ESG misconduct through forensic auditing: lessons from the Indonesian palm oil sector

Rinaldi Sinaga — 2026-01-27

This study develops a novel forensic auditing framework to detect ESG fraud in Indonesian palm oil firms, addressing the absence of empirical models in agribusiness sustainability reporting. A sequential explanatory mixed-methods design was applied to 75 firm-years (2020–2024) from 15 IDX-listed companies. Quantitative analysis using the Beneish M-Score revealed a mean of -2.05 (SD = 0.32), with 18.7% of cases exceeding the manipulation threshold (-1.78). Total Accrual to Total Assets (TATA) was the dominant fraud signal (OR = 107.8, p < 0.001), linked to biological asset overcapitalization. Logistic regression confirmed that higher ESG disclosure scores significantly predict earnings manipulation (β = 0.92, p < 0.001). Qualitative triangulation via satellite imagery (Global Forest Watch) and semi-structured interviews (n = 25) identified fraud in 16% of cases through geospatial discrepancies. Post-forensic audit intervention reduced M-Scores by 0.58 (Cohen’s d = 1.12, p < 0.01) and improved ESG land accuracy by 6.2%. This research is the first to integrate Beneish M-Score, blockchain traceability, and satellite cross-verification in palm oil ESG assurance. Findings expose systemic greenwashing under POJK No. 51/2017 and validate forensic auditing’s role in restoring credibility. Policy recommendations include mandatory third-party geospatial verification and a national early warning dashboard integrating M-Score and satellite data. The framework offers a replicable model for fraud-prone agribusiness sectors worldwide.