- abstract - pp 1-73.docx · Web viewThe Second International Conference on Finance, Management and Business. Semarang, 1 . August. 2018. Page . 73

The Second International Conference on Finance, Management and BusinessSemarang, 1 August 2018

FACTORS INFLUENCING EMPLOYEE ENGAGEMENT TOWARDS THE ORGANIZATION OF KHON KAEN UNIVERSITY PERSONNEL

Dusadee Ayuwat, Jongrak Hong-ngam, Wanichcha NarongchaiKhon Kaen University

Supee Samorna Udon Thani Rajabhat University

Kriangkrai PasutaNakhon Phanom University

Krongkaew Kingsawat, Somphot Thinpru, Kwannakorn Sonman, Nattawat AuraiampaiKhon Kaen University

AbstractOrganizations at the present age are placing great importance on employee engagement since this characteristic generally leads to production success. This article is on the study of factors that influence employee engagement towards the organization of Khon Kaen University, Thailand. The quantitative approach was used and the analytical unit applied was at the individual level, including the academic and supporting personnel of the university. The sample group consisted of 2,878 staff members of the university (72.91%) from the overall simple random group of 3,989 cases. The proportion of each population group was determined for the purpose of population representation. The data was collected using the self-developed questionnaire from January to February 2018 and analyzed by means of descriptive statistics and multiple regression in order to investigate the factors affecting employee engagement.

The research results demonstrated that job satisfaction, attitudes towards the job and the organization significantly influenced organizational engagement at the level of 0.01, whereas the length of employment with the university significantly affected employee engagement at the level of 0.05; which were consistent with the research assumption set. However, the present age, type of personnel (supporting personnel) and perception of organizational cultures did not show any significant correlation with employee engagement at the level of 0.05; which was not consistent with the research assumption. All of the independent variables analyzed were able to significantly explain the variation of Khon Kaen University’s employee engagement at 45.7 (R2 = 0.457) at the level of 0.01.

Keywords: employee engagement, job satisfaction, attitude toward the job, relationship with colleagues, Khon Kaen University

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PERCEIVED PATIENT-CENTERED BEHAVIOR AND PATIENT ENGAGEMENT ON QUALITY OF CARE WITH PATIENT’S ORIENTATION PREFERENCE AS THE

MODERATING VARIABLE

Linda Kong, Ying-Chyi Chou, Ching-Hua LuTunghai University

AbstractOriginated from Taiwan, postpartum service or “zuo yue” has grown rapidly in other

countries and it is popular among Chinese communities such as China, Singapore, and Malaysia. The postpartum services which are provided by confinement centers or confinement lady claim to be designed for mothers’ needs and regain their physical health. Author attempted to explore the quality of the postpartum care by using the patient-centered care approach as the independent variable. Studies have shown that patient-centered care is associated with enhanced patient engagement and improved patients’ well-being. Thus, patient engagement was proposed as the mediating variable to investigate whether patient-centered behavior expressed by the caregivers can drive the postpartum women’s engagement and eventually improve quality of care. In addition, patient orientation preference was used as moderating variable to examine whether it strengthen the relationship between patient-centered behavior and quality of care.

The research sample for this study was the women who had the experience of using postpartum service in Taiwan which was collected with snowball sampling method. The collected data was processed by using AMOS 18.0 and SPSS 17.0. This research utilized path analysis and regression analysis to verify the research hypotheses.

The test results showed that patient-centered behavior has significant and positive effect on quality of care; meanwhile, the mediating effect of patient engagement and moderating effect of patient orientation preference were not significant. These empirical results indicated patient-centered care is important in delivering high quality care, so service providers should train their caregivers to identify the specific needs of patients and adjust their behaviors in accordance. The possible explanations for the insignificance of patient engagement are constraints of traditional customs and influences of other family members, such as the mother-in-law. Patient orientation preference might be insignificant in the context of postpartum service. Mothers would prefer the caregiver to share decision making with the mothers in spite of their communication preference.

Keywords: Postpartum Service, Patient-centered Care, Patient Engagement, Patient–Practitioner Orientation Scale, Quality of Care

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THE IMPACT OF NON-INTEREST INCOME ON BANK MARKET PERFORMANCE: THE ROLES OF REGULATIONS, BANK CONCENTRATION, AND CORPORATE

GOVERNANCE

Hsiao-Jung Chen, I Gusti Agung Musa BudidarmaSouthern Taiwan University of Science and Technology

AbstractThis study employs the ordinary least squares regression models to analyze the impact of non-interest income on bank market performance after controlling for bank-specific, country-specific and time effects. It also investigates the roles of regulations, bank concentration and governance mechanisms on the relationship between bank non-interest income and performance, in which no research has looked into this topic in detail. The sample consists of the banks in 43 countries over the period of 2003 to 2011. We use Tobin’s q and market to book ratio as the proxies of market performance. The results show that non-interest income and antidirect index would enhance bank market performance respectively. However, more non-interest income would reduce bank market performance if banks located in a country with higher antidirect index. Similarly, bank concentration has a significantly positive effect on bank market performance while the interaction term between non-interest income and bank concentration has a negative effect on bank market performance at the 1% significant levels. In addition, corporate governance does not have any director indirect influence on bank market performance. Therefore, we suggest that the authority should encourage banks to engage in more non-interest income activities for banks located in a country with lower antidirect index and bank concentration.

Keywords: non-interest income, bank performance, regulation, corporate governance, bank concentration.

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HAPPINESS FROM ECONOMIC STATUS: EVIDENCE FROM THE ELDERLY IN THE NORTHEASTERN REGION OF THAILAND

Jongrak Hong-ngam, Dusadee Ayuwat, Kesinee SaranrittichaiKhon Kaen University

Abstract“Happiness” is the term that carries different meanings according to the perspectives of individuals. Moreover, the need of happiness differs for each age range. This study focuses on the level of happiness arising from the economic status of the elderly. It has placed emphasis on the elderly because the predictions of the National Elderly Committee for the population structure in the next 20 years indicate that a rise in the ratio of the elderly will increase from 17.5 % in 2020 to 25.12 % in 2030. The rapid change in the structure has triggered an awareness of the degrees of Happiness in this major population, especially stemming from their economic status. This issue has aroused interest in the factors that can affect the target group’s economically-related Happiness, so the researchers have conducted a sample survey in the population of those over 60 years old in 2 Northeastern provinces of Thailand. The factors included the following assumptions of the study: income, human capital, physical capital, and accessibility to economic capital, etc. The overall findings revealed that saving money, having accessibility to economic capital, having self-esteem, maintaining relationships with family members and neighbors, and sustaining a way of life are the main factors that affect the happiness of the elderly.

Keywords: Elderly, Happiness, Economic, Human Capital, Self Esteem

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BEHAVIOURAL AND PSYCHOLOGICAL FACTORS INFLUENCING MALAYSIAN HOUSEHOLDS’ FINANCIAL WELL-BEING

Nurul Shahnaz Mahdzan, Rozaimah Zainudin, Fauzi Zainir, Mohd Edil Abd Sukor, Wan Marhaini Wan Ahmad

University of Malaya

AbstractChallenging economic conditions and high costs of living are often regarded as the main causes of financial hardships faced by Malaysians. Notwithstanding these issues, this study is conducted to explore the behavioural and psychological factors that influence Malaysians’ financial well-being (FWB). Specifically, the three main objectives of this study are as follows. First, we construct a subjective measurement to gauge the FWB level amongst three different household groups in Malaysia, namely, the low-, middle-, and high-income household categories. Second, we examine the influence of behavioural and psychological factors, namely, financial stress, financial behaviour, financial literacy, and locus of control, on the FWB of Malaysian households. Third, we explore differences in FWB, and the antecedents of FWB, amongst Malaysians of different household income groups. From a sample of 1,867 respondents from all across Malaysia, The evidence suggests that Malaysians’ financial well-being is considerably low, ranging from 4.36 to 6.28 (over a maximum of 10) among low- and high- income households, respectively. Individuals with high levels of financial stress and financial literacy have significantly lower levels of FWB, while those with more positive financial behavior and locus of control are found to be more satisfied with their finances. The three household income groups differed significantly in their levels of financial well-being, stress, behavior, and literacy, as well as their locus of control levels. We offer policy recommendations to address the concerns regarding low levels of Malaysians’ FWB.

Keywords: financial wellbeing; financial literacy; financial stress; financial behavior; Malaysia

Acknowledgement:We would like to acknowledge the financial support provided by the Ministry of Higher Education Malaysia under the Fundamental Research Grant Scheme (FRGS) No.FP025-2016.

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THE DETERMINANTS OF CREDIT CARD MISUSE AMONG GENERATION Y URBANITES IN MALAYSIA

Rozaimah Zainudin, Nurul Shahnaz Ahmad Mahdzan, Yeap Ming YeeUniversity of Malaya

AbstractThe alarming upward trend is reported in bankruptcy cases among the younger generation in Malaysia. To understand this issue, the paper attempts to investigate the factors determinant namely credit attitudes, credit card knowledge, materialism, social norm and self-efficacy toward the credit card misuse among the generation Y in Malaysia. Using a more disburse demographic profile, we have collected 501 participants living in two urban areas in Malaysian via survey questionnaire. The results infer that the credit card attitudes, materialism and social norm tend to have a positive significant relationship with the tendency of these Malaysian generation Y to misuse their credit card. In contrast relationship are found for the credit card knowledge and self-efficacy toward the credit card misuse among these generation Y. Amongst these five tested factors, the credit card attitudes is found to be the most important factor that determining the tendency of the generation Y in Malaysia to misuse their credit card. Based on this results, we suggest that the credit card service provider have to make a more comprehensive credit card analysis before giving out the credit card approval especially for thismarket segment in order to reduce the default risk among these generation Y credit cardholders. As for the regulator perspective, more creative approach is essential to enhance the awareness on good credit behavior and implement additional restrictions on the credit card usage among this generation Y segment.

Keywords: Generation Y, credit card misuse, credit attitude, self-efficacy, Knowledge on creditcard, materialism and social norm.

Acknowledgement: We would like to acknowledge the financial support provided by the Ministry of Higher Education Malaysia under the Fundamental Research Grant Scheme (FRGS) No.FP025-2016.

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GLOBALIZATION IMPACTED TO SUSTAINABILITY OF VOLCANIC DISASTER MANAGEMENT PERFORMANCES IN MT.SLAMET, INDONESIA

Diah Setyawati Dewanti, Universitas Muhammadiyah Yogyakarta

Dusadee Ayuwat, Sekson YongvanitKhon Kaen University

AbstractThis study has an aim to study the globalization impacted to the sustainability of volcanic disaster management performances in Mt.Slamet, Indonesia. To answer the research objective, this study use Qualitative research methods in Guci village. It was carried out by twice indepth interview to the study the globalization impacted towards volcanic disaster prone area. The first phase was carried out by indepth interview to 9 key informants which explained the brief description of the village and daily life impacted by globalization. The second phase was done by 14 key informants which supported the disaster management practices of household living in disaster prone II as comparation 10 years before tourism attraction established by the government. Guci village is designated as the study area because it has different characteristics among neighborhood area. Tourism development supported the livelihoods of households and brought different capacities among others. Guci is located 6 km from the peak of Mt.Slamet and stated as the Red-area since lava path pattern flow through this village. As the first phase of the study, the main aim is to study the practical aspects of disaster management for households. It is found, Guci’s household practice disaster management by government supported. This research describe how the massive development after tourist attraction view funded by government in the ecology and social-culture perspectives. In ecological perspective, households were well-informed concerning the impact of geothermal establishment by private organization. Households could have communication access easier through television and internet access compare to other neighborhood area. However, the social-culture perspectives had more influences in modern life for household living in disaster prone II. The government try to keep the cultural belief of households as part of their best practice in volcanic disaster management.

Keywords: Globalization, Ecology, Social-culture, volcanic disaster management

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ROLE OF MICRO FINANCE INSTITUTIONS IN DEVELOPING THE SMALL SCALE ENTERPRISES OF ETHIOPIA

Anubha SrivastavaAmity University

Preeti KulshresthaDilla University

AbstractThis study was conducted in gedio zone small scale enterprise financed by micro finance institution. The main objective the study was to evaluate and determine the factor that determine loan repayment performance of small scale enterprise financed by yirgachefe MFI. For the success of the study both primary and secondary data were collected to determine the loan repayment performance of small scale enterprises in gedio zone .questionnaire were prepared and administered to 50 borrower and manager of MFI. The data gathered are tabulated and interpreted for ease of analysis and suitability for the reader. After the long effort the researcher arrived in some finding in relative to the objective of the study in the introductory parts.

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CUSTOMER LOYALTY: JUST OVERT BEHAVIOR, WITHOUT ATTITUDINAL COMPONENT

Lerbin R. Aritonang R.Tarumanagara University

AbstractUntil now, there are three perspectives about customer loyalty, i.e., behavioral, attitudinal, and combination of behavioral and attitudinal. The perspectives, of course, create continued chaos in customer loyalty researches so that it is not possible to integrate results of the researches. Based on the psychology of attitudes and appropriate reasonings, a main conclusion of this paper is that customer loyalty is only overt behavior, without attitude. This paper is expected to eliminate, at least to decrease, the chaos in customer loyalty researches.

Keywords: loyalty, overt behavior, attitude, psychology of attitude

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LOYALTY, IMAGE, SATISFACTION, AND INTENTION: MEDIATED BY TRUST

Lerbin R. Aritonang R.Tarumanagara University

AbstractThe objective of this research is to test the mediation role of trust among loyalty, image, and satisfaction with the intention to make customers to use bank services in the future. Data were collected from traditional banks’ customers. The research used a structural equation modelling of LISREL 8.80. The findings show that trust has a partial mediating effect on relationships among loyalty, image, and satisfaction with intention. Total, direct and indirect effects of loyalty on intention are positive and significant. Total and indirect effects of image and satisfaction on intention are positive and significant. The direct effects of image and satisfaction on intention are positive but not significant. The indirect effects of image and satisfaction on intention are greater than the direct effects of image and satisfaction on intention. The research provides an insight to the Indonesian banking sector and the interrelationships among loyalty, image, satisfaction, and trust to enhance customers’ intention to repurchase banks’ services in the future. Service policy makers should invest in trust, loyalty, image, and satisfaction to enhance customers’ intention to repurchase. Examination of the indirect effects of image – through trust – on intention contributes more value by understanding the indirect effects of image on increased intention.

Keywords: Intention, Loyalty, Image, Satisfaction, Trust, Bank

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IMPROVEMENT OF INVENTORY MANAGEMENT OPERATION AT PT. RED TO INCREASE COMPANY’S REVENUE

Grace ListianiInstitut Teknologi Bandung

AbstractPT. RED is atrading company that sells electrical equipment for protection. To provide stock for the customers, PT. RED needs to order to its supplier fordelivering the goods on time. Recently, the company has an increasing demand for some rare products with limited stock due to the raising number of customers. Unavailability stock will impact to profit loss and bad service level to customers. Because of that, the company has been considered for having a new place as its new representative at the same region with the main office. Fishbone diagram is being used to find the root causes of this problem. There are five root causes of this problem: no regular cycle counting, no safety stock for rare products, unclear job description, no reward and punishment system, and no adequate space. The proposed solutions are making a regulation to do cycle counting regularly, counting the quantity of the safety stock, making a clear job description, creating reward and punishment system, and investing another place. Fixed-Order Quantity model is being used to determine the point to do the order (reorder point) and the amount of the order & safety stock. SMART analysis is being used to find a new place and payback period method to know the amount of time required for the company to recover its initial investment.

Keywords: Inventory Management, Fishbone Diagram, Safety Stock, Fixed-Order Quantity Model. SMART Analysis

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KEY FACTORS THAT INFLUENCE CUSTOMER ADOPTION OF TECHNOLOGY INNOVATION IN THE INDONESIA CONSTRUCTION SECTOR: A CASE OF HILTI

B. Silaban, R.A. NasutionInstitut Teknologi Bandung

Abstract The adoption of innovative technology by either individual-adopter or organizational-adopter is influenced by key factors that shape the behavioral intention of these adopters. Identifying and understanding these key factors are critical in strategy formulation to drive the adoption of technology innovation. The study is aimed at determining the key influencing factors to the adoption of innovative technology in Indonesia construction sector. This study also provides strategy recommendations to players in the Indonesian construction sector on how to interplay these factors tobetter ensure the effective adoption of innovative technology within their own organizations, their customers, and the community in overall. This study analyses core theoretical frameworks, and suggests a modified technology adoption model relevant for the organizational context of the Indonesia construction industry, including the key factors that constitute the model. The proposed model was validated through in-depth interview with key customers and a simplified quantitative data collection from construction professionals in Indonesia. The result is analyzed from managerialimplications point of view.

Keywords: Adoption, Construction, Indonesia, Innovation, Organization, Technology

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BUILD THE IMAGE EAST JAKARTA INDUSTRIAL PARK (EJIP)

Andriasan Sudarso, Lili SuryatiSekolah Tinggi Ilmu Ekonomi IBBI Medan

AbstractThis research aims to know the influence of the quality of service and customer Correlation

together against the image of EAST JAKARTA INDUSTRIAL PARK.The methods used in this research is descriptive method and explanatory survey. The unit of

analysis is the investor's industrial area which is managed by East Jakarta Industrial Park (EJIP) with sample size 110 investors. Time horizon in this study is cross sectional.

Descriptive findings in this study that service quality EJIP when viewed based on interests and analysis of performance, reliability and responsiveness dimension turns out EJIP is situated in quadrant 1 (keep up the good work), This means that elements of the quality of service must be maintained. While the dimensions of the tangibles are in quadrant 2 (concentrate here), meaning that these elements should be noted specifically and became the first priority for repairs.

Verificative Findings in this study is that service quality and customer Correlation effect simultaneously against the image of EJIP, however when viewed partially, apparently the dominant customers Correlation affect image EJIP, whereas the quality of service has no significant effect against the image of EJIP. Keywords: Quality of Service, Customers Correlation, and Image

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THE INFLUENCE OF CAPITAL ADEQUACY RATIO, LOAN EXPOSURE, LOAN TO DEPOSIT RATIO, NET INTEREST MARGIN AND CASH RATIO TO RETURN ON TOTAL ASSET ON BANKING SECTOR LISTED AT INDONESIAN STOCK EXCHANGE PERIOD

2011 – 2016.

Astrid Dita Meirina Hakim, Mia LaksmiwatiUniversitas Budi Luhur

AbstractThe aim of this research is to examine relation Capital Adequacy Ratio, Loan Exposure, Loan

to Deposit Ratio, Net Interest Margin, and cash ratio to return on total asset. Banking sector has choosen due to approximetely 75% market share related to Indonesian Finance System. Banking Sector playing an important role on Indonesian economics growth. If Banking sector collapse, economics system will ruin.

This research return on total asset is measured with Loan to Deposit Ratio. Testing the relationship Capital Adequacy Ratio, Loan Exposure, Net Interest Margin and Cash Ratio To Return On Total Asset are using data panel regresion method with fixed effect model. Bank sample in this research using 26 sample listed at Indonesia stock exchange with period 2011-2016.

The result showed that Capital Adequacy Ratio and Net Interest Margin has significant influence to Return On Total Asset. While Loan exposure, Loan To Deposit Ratio and Cash Ratio has shown no influence to Return On Total Asset.

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INADEQUATE MANAGEMENT ACCOUNTING INFORMATION IS THE CAUSE OF THE DECLINING PERFORMANCE OF MANAGERIAL OF INDONESIAN TEXTILE

INDUSTRY

Rima RachmawatiUniversitas Widyatama

Abstract This research has purpose to prove the influence of management accounting information system and information quality to managerial performance. The survey was conducted in the textile industry registered actively in the Indonesian Association of Perteksilan. Data analysis using multiple regression. The result of research shows that there is influence of management accounting information system quality toward managerial performance and quality of management accounting information to managerial performance. The implications of the research results can solve the problems of managerial performance of Indonesian textile industry.

Keywords: management accounting, accounting information, managerial performance, information systems.

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UNDERSTANDING THE INDONESIAN ENVIRONMENT TO OVERCOME THE CHALLENGES OF TAKAFUL INDUSTRY MARKET DEVELOPMENT

Peni NugraheniUniversitas Muhammadiyah Yogyakarta

AbstractTakaful has an important role for country as one of the Islamic financial instruments for encouraging income distribution, socially oriented activity and as an alternative investment community based on risk sharing. The purpose of this paper is to identify the challenges faced by takaful companies in Indonesia in introducing and marketing takaful concepts and products. In addition, the paper also describes the important issues that need to be considered by takaful industry in enhancing the public interest into takaful products. Understanding the environment of Indonesia will help takaful companies to develop strategies in overcoming these challenges. Qualitative descriptive method is used to describe recent condition and analyse the condition based on existing literatures. The paper reveals that there are internal and external factors that must be considered to attract the intention of Muslim and non-Muslim to participate in the takaful companies. Review of literatures also finds that collaboration between takaful and other organization will have impact on market penetration of takaful industry. Therefore, Takaful companies deserve to be chosen as a choice in investing and risk protection, not only because of complying with Islamic principles but also demonstrating good performance that suitable with customer needs. The paper is expected to contribute to the development of takaful industry especially and Islamic financial institutions generally.

Keywords: takaful, market development, internal factors, external factors, innovation

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SOCIAL ENTREPRENEURSHIP: INNOVATION OF EMPLOYMENT OPPORTUNITIES IN RURAL

(CASE STUDY OF MUSHROOM BUSINESS IN MAJALENGKA REGENCY)

Mulyaningrum, Ellen RusliatiUniversitas Pasundan

AbstractProductive economic activities as business opportunities in rural areas are still very limited in variety and amount. In addition, job opportunities tend to be glued to traditional farming. This condition encourages some rural residents, especially the younger generation, to migrate out of the village to look for other job opportunities. Urban areas are considered to have more employment options and opportunities for business expansion. As a result, economic growth in rural areas is slowing. Meanwhile, the high flow of urbanization also caused various problems. This research is intended to analyze whether the development of social entrepreneurship can be a solution to the problems of rural employment opportunities. In particular the purpose of this study is to see how social entrepreneurship done by young businessmen in the field of mushrooms can play a positive role in the process of economic empowerment for rural communities. This research is a descriptive research using qualitative method, which is intended to examine the problems in more depth and comprehensiveness (Davis, 2005). It refers to ways of studying the qualitative aspects of social life, encompassing the various social dimensions of its actions and circumstances to processes, and events based on constructs and meanings that are organized by social practices regarding the main issues.

Key words: social entrepreneurship, rural employment opportunity, economic empowerment

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FINANCIAL LITERACY FOR ENTREPRENEUR: A SYSTEMATIC LITERATURE REVIEW

Astrie KrisnawatiTelkom UniversityJurry Hatammimi

Telkom University, Hull University Business School

AbstractBusinesses are experiencing enormous changes nowadays, particularly in this industrial revolution 4.0 era. Many businesses are collapsing recently, on the other hand many start-up companiesare also emerging. Both long-existing companies and start-up companies are competing to earn profit. It cannot be denied that financial-oriented is the nature of all businesses. Thus, the mastery of skill in managing corporate finance is absolutely necessary on every business. Start-up companies are commonly established by young and millennial generations. These generations need a lot of experiences and knowledge in terms of financial management to run their newly started businesses. This paper captures the discussions regarding financial literacy for entrepreneur by conducting a systematic literature review of previous studies. Departing from an electronic database, authors found several relevant papers. These papers were analyzed and the synthesis will be beneficial to propose a conceptual framework that depicts the aspects of financial literacy needed by entrepreneurs who run start-up businesses in the further study.

Keywords: financial literacy, entrepreneur, start-up business

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IMPLICATIONS OF INTANGIBLE ASSETS IDENTIFICATION WITH DEMPE IN THE INDONESIA’S TRANSFER PRICING TAX REGULATIONS

Leonard Saputra, Christine TjenUniversitas Indonesia

AbstractAt present, the position of intangible property becomes a significant company’s value. The party who utilize the intangible property shall pay the remuneration to the party whom possess the intangible asset. Problems arise when transactions like these are often used by companies, mainly MNEs, to achieve profit shifting with transfer pricing schemes. In general scheme, there is a transfer of the legal ownership in which the majorities are in Tax Haven Country as a form of tax planning. However, the contribution of the legal owner is often questioned due to the lack or absence of any contribution given to the establishment of the intangible asset with the right of full remuneration. The position of Indonesia as a G20 member country is committed to implement the BEPS Action Plan, primarily 8-10 in assembly with this intangible asset. The purpose of this study is to analyze the implications of implementing the concept of function identification in the intangible assets that is discussed in Action 8-10, known as DEMPE, in the Indonesia’s transfer pricing regulations. This research method is descriptive research with more priority to in-depth interview as primary data source.

The result of this research is that the application in Indonesia only needs adjustment which is not too significant because implicitly DEMPE concept has been applied mainly as the basis of tax inspection. Implementation in Indonesia's pricing transfer rules can create new regulations that are generally described in PMK and the details will be explained in PER by adjusting to the relevance in Indonesia that allows added “marketing” function in the DEMPE concept. This implementation is expected to be able to get closer to each stakeholder's perspective regarding to the procedure of identifying intangible assets that emphasizes the analysis of economic ownership. The contribution of this research is giving a view related to the implication of its implementation in regulation of transfer pricing with limited scope in Indonesia.

Keywords: Transfer Pricing, OECD, BEPS, Action Plan 8-10, Intangible Asset, DEMPE.

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INTELLECTUAL CAPITAL DISCLOSURE: EVIDENCE FROM UNIVERSITIES IN SOUTHEAST ASIA

Sigit Hermawan, Sriyono, Wiwit Hariyanto, Niko FediyantoUniversitas Muhammadiyah Sidoarjo

AbstractIntellectual Capital (IC), as Intangible Assets, plays a very important role for organizations, including Universities / Colleges, so it is important to identify its activities. The purpose of this study is to identify the practice of IC disclosure conducted by universities in six Southeast Asian countries, namely Indonesia, Malaysia, Singapore, Thailand, The Philippines, and Brunei Darussalam. The practice of disclosure is done through the websites of the universities, with the selection of the best three webometrics universities of the 2017 survey year from each country. This research identifies the activity of IC components, i.e. for human capital is 8 items of activity, for structural capital is 23 items of activity, and for relational capital is 15 items of activity. The result shows that there is no difference in disclosing IC activity on the universities’ websites in six Southeast Asian countries. The highest IC disclosure on the components of Human Capital and Relational Capital is presented by universities in Singapore, and for the Structural Capital component, is persented by universities in The Philippines. For the type of IC disclosure, universities in the six Southeast Asian countries uses narration and numbers to disclose their IC.

Keywords: Intellectual Capital Disclosure, Intangible Assets, Universities’ Websites, Southeast Asia.

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THE DETERMINANTS OF GROWTH AND FIRM VALUE

Abid Djazuli, Ervita Savitri, Dinarossi UtamiUniversitas Muhammadiyah Palembang

AbstractGrowth is one of the goals of the company. The company will gain profitability through sales growth and its impact will increase the company value. This study aims to examine the information about the determinants of growth of manufacture firms in Indonesia. For this purpose, explanatory variable of debt to equity ratio was used as controlling factor and actual growth, internal growth, profitability growth and sustainable growth were used as independent variables. This study is conducted by using 300 sample of manufacturing companies listed in Indonesia Stock Exchange from 2012-2016. The results of research showed that, in case of manufacturing companies in Indonesia Stock Exchange, the determinants of growth have a strong role to influence the value of the firm. Several key findings are covered in this research that interpretations of sustainable growth defined as the maximum level of sales that can be increased without undermining financial resources. It is therefore important to understand the need for limit growth to maintain financial strength.

Keyword : actual growth, internal growth, profitability growth, firm value.

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MODEL OF SMALL MEDIUM ENTERPRISES PERFORMANCE BASED ON GREEN ECONOMY THROUGH STRENGTHENING INSTITUTIONAL AND PRODUCTION

Sriyono Sriyono, Sigit Hermawan, Sarwendah BiduriUniversity Muhammadiyah Sidoarjo

AbstractThis objective of this research is to create a model of Small Medium Enterprises (SMEs) performance based on Green Economy through Production and institutional strengthening. This research is an interactive qualitative research; data collection is done from the primary source through direct interviews, validation data by using this type of credibility, including triangulation of data, methods and theories. The population used in this research is all the Small Medium Enterprises that are located in Sidoarjo. The sampling technique used was purposive sampling by using multiple criteria. From this research found the relationship between production and institutional section against the Small Medium Enterprises performance based on Green Economy. Through the strengthening of production and institutional then the SMEs will have more sustainability in its activities. The conclusions of this research was to Small Medium Enterprises performance based on Green Economy can perform its activities appear to give rise to adverse environmental impacts were then to be done towards strengthening institutional and production

Keywords: Model, Green Economy, and Strengthening

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NEW MODEL OF ENTEPRENEUR CREATION FROM PROFESSIONAL WORKER

Masruhan Kholil, Sony Heru Priyanto, Roos Kities Andadari, Sri SulandjariUniversitas Kristen Satya Wacana

AbstractCurrent entrepreneurship studies mostly discussed entrepreneurship intention of university graduate students. The reality shows business competition has shown at low competitive level this global era requires a suitainable competitive advantage. The phenomena that arose from the formation of university graduates entrepreneurship is laymen. The formation of entrepreneurship from workers who have professional background and feel bored in the organization is expected effectively increasing the proportion of low entrepreneurship issues in Indonesia. This study used a behavioral and organizational approach in the formation of professional entrepreneurs so, this study examined individual, organization, market factor, and professional skill that affect entrepreneurial intention and behavior. Furthermore, the researcher added the moderating effect of entrepreneurship instrument that moderate relationship between intention and behavior by using Structural Equation Model (SEM) in executing data analysis on this quantitative research. Sampling was collected by purposive snowball sampling method on 108 entrepreneur respondents in Indonesia who have professional background. The results showed that entepreneurship intention is reflected by the influence of individual factor, market factor and professional skill; organization factor affect professional skill and entepreneurship intention affect entepreneurship behavior. Beside that, the contextual elements (entrepreneurial instruments) that doesn’t moderate the relationship between the entepreneurship intention to entepreneurship behavior. The research of entrepreneurship intention and behavior successfully confirmed the entrepreneurial professional formation orientation which is motivative objective research, so, managerial implication suggest potential professional workers who are still in the organization and have intention to be entepreneur is expected to be entepreneur without any hesitation in making entrepreneurial decisions.

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THE EFFECT OF FIRM SIZE, EARNING VOLATILITY, AND INTEREST RATES ON THE STOCK RETURN AND FINANCIAL PERFORMANCE AS MEDIATION

Tonny MaringkaEben Haezar School of Economics

AbstractThis study aims to examine and analyze variable characteristics of the company such as firm size, earning volatility, and interest rates effect to stock return with mediated variable by financial performance. This research used a quantitative approach and a path analyzes. The object of this research is all companies in the manufacturing industries which are listed on the Indonesia Stock Exchange from 2009 until 2013. These samples are included 51 companies, with observation for five years and a total of observations are 255. These results showed that the direct effect between the firm size and interest rate variables had no significant effect on stock return. Earning volatility has significant impact on stock return. For a direct effect, financial performance has a significant on the stock return and a indirect effect between financial performance, obtained firm size and earning volatility has significant on the stock return, and interest rate has no significant on stock return.

Keywords: Firm size, earning volatility, interest rates, financial performance, stock return.

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LOCAL CULINARY MSME DEVELOPMENT ON INDONESIA TOURISM

Asep Mulyana, Rita Komaladewi, Dika Jatnika, Deru AndikaUniversitas Padjadjaran

AbstractThe stable growth of Indonesian economic along with the increasing development of infrastructure results in lifestyle changes. The need for leisure in the form of tourism is supported by the ease of land, sea and air facilities. The increasing number of tourists impacts on the increasing number of supporting facilities for the comfort of tourist to stay in a tourism attraction. Some cities in Indonesia are well-known for their culinary tour, therefore every weekend, it can be predicted that tourists come to taste the culinary. However, the role of culinary industry in general especially on local food/beverage Micro Small Medium Enterprise (Local Culinary MSME) in particular towards the development of tourism has not been a major concern. Therefore, this study will propose model Local Culinary MSME development through explore the relation between the advantages owned by leading culinary products of a city in Indonesia towards the growth of tourism.

Initiative of Local Culinary MSME products can provide many benefits because these products offer a unique tourism experience between costumers and producers directly. Pestek & Cinjarevic (2014) also stated that culinary industry is a major component in tourism industry, and culinary experience provides an important experience for tourists. This is a qualitative research using approaches of 1) quality specification analysis, 2.) Determining net profit to determine the potential map of culinary tourism, 3.) Focus Group Discussion (FGD) using SWOT in determining competitive advantage towards the improvement of tourism in some cities in Indonesia. The results of observation and interviews shows that local culinary MSME of Bandung City, Medan dan Yogyakarta still survives up to now because they keep maintaining a distinctive taste quality so as to stimulate consumer experience when consuming these culinary products.

Keywords: Local Culinary MSME, Tourism Experience, culinary experience, consumer experience

Page 25


EVALUATION OF TIME BASED MAINTENANCE (TBM) TO REDUCE MAINTENANCE COST

Nisa Isrofi, Moses Laksono SinggihInstitut Teknologi Sepuluh Nopember

AbstractCost of maintenance contributes significantly to the production cost, so it is important to choose the appropriate maintenance strategy in company. In addition, technological developments lead to a change from the strategy of time based maintenance (TBM) to condition based maintenance (CBM). Implementation of CBM strategy requires high cost due to the use of specially designed equipment and also monitoring both periodically and continuously. The object of this research is in the Company of Knit Glove. There are several existing processes including knitting, hemming, dotting and packing. Knitting machine is a crucial machine which is the initial process of making gloves. Currently preventive maintenance and corrective maintenance were applied in the company. Preventive maintenance are conducted to give oil and clean knitting machine. Corrective maintenance are conducted to replace needle when finding defective products. The number of defective products in the knitting glove company are caused by broken needle so that the knitting machine continues to produce a defective hand glove. Evaluation of TBM that adapt the CBM strategy applied in knitting machine to detect broken hand gloves by using webcam (image processing). Costs required for TBM of knitting machines in knitting glove company are preventive costs, consequences of failure and labor cost. While the cost required evaluation of TBM is capital investment and annual cost of Condition monitoring. This research will be conducted on knitting machines at the company and compares costs for TBM and implementation evaluation of TBM.

Keywords: Condition Based Maintenance, Time Based Maintenance, Cost Modelling

Page 26


THE DIFFERENCE IN EFFECTIVENESS BETWEEN NIKAH OR S2 VERSION AND GOYANG BERSIH JINGLE VERSION OF FAIR & LOVELY TELEVISION

ADVERTISEMENTS IN PALEMBANG CITY

Siska Futri, Sri Rahayu, Ervita Safitri Muhammadiyah University of Palembang

AbstractThe objectives of this study were (1) to find out the effectiveness of Nikah or S2 version and Goyang Bersih Jingle version of Fair & Lovely television advertisements, and (2) to find out the difference in effectiveness between Nikah or S2 version and Goyang Bersih Jingle version of Fair & Lovely television advertisements. The research respondents were 270 women aged 20 – 44 years who lived or worked in Palembang. This was a survey study that used the descriptive data, Customer Response Index (CRI) and independent samples t-test to test the difference in effectiveness between the two versions of television ads. The research results showed that the CRI value of Nikah or S2 version of Fair & Lovely television ads was in a very ineffective category. It means that Nikah or S2 version was very Ineffective. Furthermore, the CRI value of Goyang Bersih Jingle version was in a very ineffective category, so Goyang Bersih Jingle version was also very ineffective. The results of independent samples t-test indicated that t-obtained was 0.058, which was smaller than t-table of 1.648. It could be concluded that there was no significant difference in effectiveness between Nikah or S2 version and Goyang Bersih Jingle version of Fair & Lovely television advertisements.

Keywords: television, advertisement, effectiveness, Fair & Lovely, CRI

Page 27


THE INFLUENCE OF BRAND AWARENESS, PERCEIVED QUALITY, PRICE, AND ADVERTISING ON CONSUMERS' PURCHASING DECISION ON THE PRIVATE-

BRANDED PRODUCTS OF ALFAMART DEPOK INDONESIA

Waseso Segoro, Bella Linda YuniarUniversitas Gunadarma

AbstractAlfamart Depok experienced a decline in product sales in 2014. The franchise did not achieve the selling target of private products set for 2013 to 2016 period. This research aims to explain the influence of brand awareness, perceived quality, price, and advertising on consumers' purchasing decision. The research object is Alfamart. Data is obtained through the distribution of questionnaires to 100 respondents living in Depok and buying the private-branded products of Alfamart. The tests conducted in this research include the validity and reliability tests, descriptive test, and classical assumption test. Data is analysed with the multiple linear regression technique, F-test, t-test, and coefficient of determination test. The results show that, as partial variables, brand awareness and perceived quality significantly influence purchasing decision, while price and advertising do not. However, as a simultaneous variable, all four significantly impact purchasing decision.

Keywords: brand awareness, perceived quality, price, advertising, purchasing decision

Page 28


INCREASE REPURCHASE INTENTION THROUGH SATISFACTION AND TRUST AT ZALORA.CO.ID, INDONESIA

Mudiantono, Marko TatangDiponegoro University

AbstractThe advance of technology creates the new business trend by using internet. Zalora.co.id is one of the e-commerce uses website and application to deliver fashion products to the customers. The quality of website and application is the key to build the trust and satisfaction to the customers. Zalora.co.id needs a strategy to maintain the service quality and enjoyment through its website and application in order to keep and increase the customer repurchase intention on zalora.co.id.This study aims to analyze the influence of factors of repurchase intention on zalora.co.id. Website design quality, service quality and enjoyment as independent variables and repurchase intention as dependent variable. This research uses satisfaction and trust as intervening variables. Sample of this research is the application users and visitors' Zalora website in 2016 who had made a minimum of two purchases. The sampling method in this research is judgment sampling. The analysis technique used is Structural Equation Modeling – PLS. The results of this study show website design quality, service quality and enjoyment have positive effect on repurchase intention. The indirect influence of website design quality through satisfaction and trust has a negative effect.

Keywords: Website Design Quality, Enjoyment, Service Quality, Repurchase Intention

Page 29


CUSTOMER LOYALTY WITH CUSTOMER SATISFACTION AS INTERVENING VARIABLE ON LIONAIR CUSTOMER IN INDONESIA

Avianto Dimas Praditya, Sri Rahayu Tri Astuti Diponegoro University

AbstractAs one of the assets of a company, customer loyalty has always been considered one of the most important. However, among the efforts to provide good quality of services to the customers, customers’ satisfaction seems to be left behind. The aim of the study was to analyze the relationship between companies’ service quality, customer perceived value and brand experience to customer loyalty with customer satisfaction as intervening variable. Data were collected using non-probability sampling technique using purposive sampling to respondents who have been taking Lion Air service for at least twice in the past year. The number of sample observed was 168 respondents. To analyze the impact of the independent variable on the intervening variable and of the intervening variable to the dependent variable, multi linear regression analysis was applied. The result showed that Service Quality positively affected Customer satisfaction, Customer Perceived Value positively affected Customer Satisfaction, Brand Experience positively affected Customer Satisfaction, and all three variables had an impact of 88.9% on the intervening variable. In addition, the intervening variable of Customer Satisfaction hada positive impact on the dependent variable of Loyalty and the intervening variable had an impact of 85.4% on the dependent variable. Lion Airlines are recommended to develop their service, appearance, promotion, and punctuality.

Keywords: service quality, customer perceived value, brand experience, customer satisfaction, customer loyalty

Page 30


THE EFFECT OF FINANCIAL INCLUSION TO MICRO SMALL AND MEDIUM ENTERPRISES CREDIT IN INDONESIA

Linati Haida Alimi, Astiwi Indriani Diponegoro University

AbstractMicro, small and medium enterprises (MSMEs) are very conducive to the economic development of a nation, including Indonesia where the number of MSMEs continues to increase from year to year. However, its growth is hampered by the difficulty of access to capital that causes less credit distribution to MSMEs. To minimize this, the Indonesian government has issued an inclusive financial program to maximize the use of formal financial products and services, particularly banking. The aims of this study was to determine the effect of geographic branch penetration (GBP), demographic branch penetration (DBP), credit accounts per capita (CAC) and deposit accounts per capita (DAC) to MSMEs credit in Indonesia. The research sample is Indonesian territory and used total sampling method for covering data in all area, which is 34 provinces in 2012-2016. Data analysis using multiple linear regression analysis. The results of this study indicate that geographic branch penetration has positive and insignificant effect on MSMEs credit, demographic branch penetration has a negative and significant effect to MSMEs credit, while credit and DPK accounts per capita have positive and significant effect to MSMEs credit.

Keywords: Financial Inclusion, Geographic Branch Penetration, Demographic Branch Penetration, Credit Accounts Per Capita, Deposit Accounts Per Capita, Banking

Page 31


INDIVIDUAL CHARACTERISTICS, FINANCIAL LITERACY AND ABILITY IN DETECTING INVESTMENT SCAMS

Anis Chariri, Wibowati Sektiyani, Nurlina, Richa Wahyu WulandariUniversitas Diponegoro

AbstractThis study aims to explore important indicators applicable for the early detection of investment scams and to investigate the effect of age, education and financial literacy on the ability to detect investment scams. Data were collected using a questionnaire survey with respondents in Semarang, Indonesia. A total of 311 respondents completed the questionnaires, for a 62.2% response rate, but only 304 questionnaires were usable. Confirmatory factor analysis was used to verify the indicators of investment scams, and a regression model was then employed to analyze the data. The findings show five main indicators applicable for early detection of investment scams: a) investments with unreasonably-high returns, b) investment involving salespeople that tend to force potential investors to make an immediate decision about the investment, c) investments without reasonable underlying cores of business, in accordance with principles of fairness and prudence in financial investment sectors, d) investments with no clear explanation on how the investment funds are managed, and e) investments without any information on the structure of management, ownership, and business, and the address of the companies. Finally, the finding shows that the level of individual financial literacy positively affects the ability to detect investment scams. However, age and education do not affect theability to detect investment scams.

Keywords: investment scams, financial literacy, age, education

Page 32


COMPANY RESOURCE ANALYSIS IN DEVELOPING DYNAMIC CAPABILITY MATRIX: A CASE STUDY IN UNDERSTANDING THE SOURCE OF SUSTAINABILITY OF COMPANY'S EXCELLENCE PERFORMANCE OF INDONESIA LISTED NON-BANK

FINANCIAL INSTITUTIONS

Randy Hadipoespito, Hardijanto SarosoBina Nusantara University

AbstractThe Financial Industry is an industry that has been affected by technological change and becomes the focus of discussions of many researchers in examining what components of the company that could help the company to develop its competitive capabilities. The resources of the company play an important part to gain the new capabilities and competencies that are in line with company’s target and current competition trend. This research analyzes human resources, training, investment, and cash, on the company's ability to generate revenue. Secondary - Longitudinal Data from 2011 until 2016 has been used as a reference in this research. The calculations and evaluation of data are analyzed using SPSS version 24 and WarpPLS software version 6. The result of this research concludes that the cash that was used to recruit, the recruitment of human resources, become the critical aspects in developing the company performance, primarily the listed non-bank financial institution. Therefore, the quality of recruitment should become the priority, as compared to training, or investment of new tools or assets. In gaining the company capability and capacity, recruitment and training is considered as one of the critical indicators to sustain the company’s performance, especially with the tremendous changes due to the presence of digital banking technologies and applications.

Keyword: Competition, Non-Bank Financial Institution, Resource Development, Resource-Based Theory, Dynamic Capability

Page 33


THE MEDIATING ROLE OF PSYCHOLOGICAL CAPITAL ON THE LINKAGES BETWEEN RELIGIOSITY ORIENTATION AND JOB STRESS

Dwi Marlina WijayantiDepartment of Accounting, UIN Sunan Kalijaga, Yogyakarta-Indonesia

Niluh Putu Dian Rosalina Handayani NarsaDepartment of Accounting, Universitas Airlangga, Surabaya-Indonesia

AbstractThis study examines the influence of psychological capital (PsyCap) as a mediation on the relationship between religious orientation and job stress. In the working environment, many individuals can not face challenges in jobs (such as pressure from superiors, stacking jobs, and competition) thus making them feel stressed. Based on the theory of positive psychology, internal factors inherent in the individual self is significant factor affecting job stress. Internal factors are religious orientation and PsyCap. The individual's religious orientation (intrinsic and extrinsic) leads them to positive psychology (PsyCap) which is determining factor of job stress. This study uses self administered survey. Data is collected by online based. Participants in this research are 217 employees spread in Indonesia. The results show that intrinsic religious orientation is negatively related to job stress and dan positively related to PsyCap. Extrinsic religious orientation is positively related to job stress and negatively related to PsyCap. In addition, PsyCap mediates the relationship between religious orientation (intrinsic and extrinsic) and job stress. Other results indicate that PsyCap has a negative relationship with job stress. That is, the internal factors of individuals greatly affect the level of stress due to the inability of employees to face problems that exist in the organization. This research contributes practically, theoretically, and methodologically

Keywords: religious orientation, psychological capital (PsyCap), job stress

Page 34


INFLUENCE OF BOARD COMMISSIONERS SIZE, MANAGERIAL OWNERSHIP, AND PROFITABILITY TOWARD ENVIRONMENTAL DISCLOSURE ON WEBSITE

Risna Dwi Kartika, IsnalitaUniversity of Airlangga

AbstractThe purpose of this research is to examine the influence of board commissioners size, managerial ownership, and profitability toward environmental disclosure on website. Companies generally disclose CSR activities in annual reports or ongoing reports while this study will empirically test the investor's response to the CSR information disclosed on the website. This study utilize data of 101 manufacturing companies listed on the Indonesia Stock Exchange for year 2015. Board of commissioners size is measured by the number of board of commissioners in the company, managerial ownership is measured by percentage of management share proportion, profitability is measured by ROA, and environmental disclosure is measured by Environmental Disclosure Index. The results of this study show that board of commissioners size and profitability significantly influenced environmental disclosure on website while managerial ownership has no influence on environmental disclosure on website. The results of this study can be used by management as a reference when make decicion about company environmental disclosure on website.

Keywords: board of commissioners size, environmental disclosure, managerial ownerships, profitability, website

Page 35


THE INFLUENCE OF SERVICE QUALITY, BRAND IMAGE AND PRICE ON CUSTOMER LOYALTY THROUGH CUSTOMER SATISFACTION (A CASE STUDY ON XYZ INSURANCE COMPANY)

Rianto Nurcahyo, Sambudi Hamali, Darwin, Gelbert Gunawan Bina Nusantara University

AbstractIndustrial competitions in service sectors require companies to provide optimal services to their customers. This research aims at examining the influence of service quality, brand image, and price on customer satisfaction and those on customer loyalty in XYZ insurance company. The research population is 2925 customers and then 160 customers are taken as the samples. The data are collected through a survey using questionnaires. This associative research employs a variance-base partial least squares SEM (Structural Equation Modeling) or PLS-SEM technique with WarpPLS 5.0 software to analyze the data. The research results shows that service quality and brand image positively and significantly influence customer satisfaction, and service quality, price and customer satisfaction positively and significantly influence customer loyalty, while brand image indirectly influences loyalty through customer satisfaction. Based on the research results, customer satisfaction may be developed by improving the company’s service quality and brand image, while customer loyalty may be developed by improving service quality, brand image and price through customer satisfaction.

Keywords: Insurance, Service Quality, Brand Image, Price, Customer Satisfaction, Customer Loyalty.

Page 36


INTELLECTUAL CAPITAL DISCLOSURE AND THE UNDERPRICING OF INDONESIAN INITIAL PUBLIC OFFERINGS

Elok Sri Utami, Nurul Illiyyin, Tatang Ary Gumanti Universitas Jember

AbstractStudies examining the relationship between the level of intellectual capital with firm values of public companies have been mounting. Yet, very view is devoted on those that are making initial public offering (IPO). For already publicly companies, intellectual capital disclosure can be seen in the annual report. For IPO, the information is embedded in the prospectuses. This study is aimed to analyze the influence of intellectual capital disclosure index (ICDI) and other variables including the prestige of underwriter, financial leverage, return on assets, and firm size on the extent of underpricing of companies making IPO from 2013 to 2017. The population consist of 125 companies. A total of 79 IPOs satisfied the selection criteria for the sample. Results using multiple linear regression analysis show ICDI, the prestige of underwriter, and company size have negative and significant effect on the level of underpricing.Whilst, financial leverage and profitability (ROA) are not the explanatory variables for the variation of underpricing.

Keywords: intellectual capital disclosure index, underwriter, firm size, underpricing, IPOs.

Page 37


THE EFFECTS OF TAX AVOIDANCE AND AUDIT QUALITY ON TAX AMNESTY

Ni Kadek Rahayu Nadi, Dwi MartaniUniversitas Indonesia

AbstractThe purpose of this study is to analyze the effect of tax avoidance and audit quality on probability to participate tax amnesty. This study focuses on companies participate tax amnesty based on “Undang-Undang No. 11 tahun 2016 tentang Pengampunan Pajak”. This study found company which is audited by Big Four have lower probability of participating tax amnesty. We also found no significant effect of tax avoidance on probability of participating tax amnesty

Keywords: Tax Amnesty, Tax Avoidance, Audit Quality, Big Four

Page 38


FINANCIAL PERFORMANCE ANALYSIS SURROUNDING INITIAL PUBLIC OFFERINGS

Marmono Singgih, Selfi Dewi Qomariyah, Tatang Ary GumantiUniversity of Jember

AbstractOne of the ways to find out the performance of company is when the company is making Initial Public Offering (IPO) through the financial performance analysis. The analysis would help investors prior to deciding to buy the stocks of the company. Financial ratios are a common tool used in making financial statement analysis. This study aims to analyze whether the companies’ financial performance is different in the period before and after the IPO. This research is a quantitative research using secondary data. This research is conducted on all companies that made IPO in Indonesia Stock Exchange from 2010-2014. The sample consists of 59 companies’ selected using purposive sampling technique. The method of analysis used are Paired Sample t-Test and Wilcoxon Paired Sample test. Results indicate that the median Current Ratio value increases after the IPO, while the median value of my Debt to Asset Ratio, Debt to Equity Ratio, Total Asset Turnover, Net Profit Margin and Return on Equity decreases after the IPO. We come to a conclusion that the financial performance of the companies are relatively unchanged from the period prior to and after the IPO.

Keywords: financial performance, ratio analysis, initial public offering

Page 39


HOW DOES SAMSUNG ABLE TO MANAGE SUSTAINABLE CORPORATE BRAND THROUGH CONSUMER LOYALITY?

(THE CUSTOMER’S PERCEIVED STUDY OF SAMSUNG CORPORATE BRAND)

Ira Murweni, Mokh. Adib SultanIndonesia University Of Education

AbstractCustomers loyalty is the key to build a company's existence and sustainability as reflected in customer per-ceived of corporate brands. The purpose of this study is to obtain evidence that the concept of "customer is pivotal for corporate success" (Kotler, 2009) is still significant in a sustainable marketing management strategy.This field research of Samsung's corporate brand will involve 50 respondents from Samsung customers with random sampling technique. In this study, the measurement of research model will be tested by using Confirmatory Factor Analysis (CFA) method before the analysis of regression model on the independent variables and the dependent variables with a significant level α = 0,05. The research model test will be processed using AMOS 2.4 software and regression model test using SPSS 22.The results of this research will provide a clear description of how customers build corporate brand image through experience using and buying a product while proving that customer loyalty holds an important key in maintaining the sustainability of corporate brands.

Keywords: corporate brand, customer loyalty, sustainable marketing strategy

Page 40


DETERMINANTS OF INTELLECTUAL CAPITAL DISCLOSURE IN INITIAL PUBLIC OFFERINGS

Tatang Ary Gumanti, Ira Puspita Sari, Elok Sri UtamiUniversitas Jember

AbstractIntellectual Capital Disclosure (ICD) is one of the current issues in finance. This study is different from traditional Intellectual Capital that is used VAICTM to measure Intellectual Capital of the company (Pulic, 1998). This study uses ICD index developed by Bukh et al. (2005) that consists of 78 items. ICD is closely related to efforts to reduce the occurrence of information asymmetry. If the company discloses more information, then it will affect investors’ perception that the company has a good IPO quality. This study examined the effect of ownership retention, leverage, company size, company age, and underwriter reputation on ICD of companies making initial public offering (IPO) in Indonesia Stock Exchange for period 2008-2017. A total of 65 companies satisfied the selection criteria. Multiple linear regression is used to analyse the data. Results show that there are three variables that have positive effect on ICD namely ownership retention, company age, and underwriter reputation. However, leverage and company size do not have significant effect on ICD. Ownership retention is a positive signal to investor to show the quality of the company. Companies that have been for years in the business will disclose more IC information. A reputable underwriter will encourage company to disclose more information.

Keyword: intellectual capital disclosure, determinants, IPO

Page 41


PUBLIC SERVANTS CHARACTERISICS AND THEIR PERCEPTION ON MOTIVATION AND PERFORMANCE

A.T. Hendrawijaya, N. Imsiyah, D.T. Indrianti, T.A. GumantiUniversitas Jember

AbstractMotivation has always been argued to be the essential factor in the management of personnel. It is also known as a crucial variable in producing a high performance of an organization. The relationship between motivation and performance has been widely examined in previous studies. However, it seems that motivation has become one of the big questions in government organization, in particular among developing countries. Thus, understanding how employees in the public sector value motivation and performance is interesting. This study aims to examine the influence of two employees’ characteristics on their motivation and performance. This study examines a sample of 96 employees assigned specifically to deal with the prevention of Dengue fever in Jember District Health Office. Univariate test is performed to test the hypotheses. Results show that age and gender have positive and significant effect both on employee work motivation and performance.

Keywords: age, gender, motivation, performance, public sector organization

Page 42


SYSTEMATIC REVIEW: THE DEVELOPMENT OF BURNOUT OVER 37 YEARS

Astri Dias Maharani, Ayu Desnalita, Mirwan Surya PerdhanaUniversitas Diponegoro

AbstractThe purpose of this research is to understand the swift and wide-ranging changes related to the burnout theory, the current research and variable phenomenon that already performed over 37 years in a row. This research created approximately 27 journals with the related issues from 1984 until 2017 by using digital technique libraries. Results stated that the most of this research came up from European and American country by using quantitative method. This research also has been well-considered in such areas from industry, health, and education. The variable test confirmed that the four variables were appropriate to often appear related to the burnout research. These are stress variable, workload, conflict and social support.

Keywords: Burnout, Stress, Workload, Conflict, Social Support, And Digital Libraries

Page 43


A STUDY ON THE BRIGHT SIDE AND THE DARK SIDE OF CHANNEL RELATIONSHIPS ACROSS FURNITURE SMALL-MEDIUM-ENTERPRISES:

WHICH ONE DOMINATE MOST?

I Made Sukresna, Mahfudz, Augusty Tae FerdinandUniversitas Diponegoro

AbstractStudies within Indonesian furniture industry revealed collaboration between small-medium (SME) manufacturers and their working partners may be of primary concern. Notwithstanding, several researches find such collaboration delivers bright and dark side of channel relationships and this needs further investigation. This study fills the void by integrating variables under social capital theory and transaction-cost-economies to uncover the influences of both sides. Based on a survey of 200 SME furniture manufacturers across Jepara, a central part of Indonesian furniture industry, this study finds relationship-specific-investments (RSIs) and opportunism as representatives of the dark side of channel relationships, play a more active role than the bright side represented by collaboration and agility constructs. In addition, RSIs perform two-sided functions in influencing relationship performance between the manufacturers and their connecting retailers. The results of this study provide new theoretical and managerial insights into the role of the elements of the bright and the dark side of channel relationships.

Keywords: Collaboration, agility, relationship-specific-investments, opportunism, relationship performance.

Page 44


THE IMPACT OF POLITICAL RISK ON EQUITY MARKET

Paulina Yuritha AmtiranUniversitas Nusa Cendana

AbstractAPT is one of the pricing asset theory which talks that besides market factor there are other factors that can influence stock return. This study aims to see the impact of macro factors of economic growth, inflation, interest rates, exchange rate and political risk on stock returns in Indonesia Stock Exchange. This research was conducted on 194 companies listed on the stock exchange of Indonesia from 2007 to 2015. The research method used in this research is explanatory method. The data used in this study is secondary data from the Indonesia Capital Market Directory (ICMD) and International Country Risk Guide (ICRG). It is expected from the results of this study found the relationship between macro factors and stock returns of companies listed on the Indonesia Stock Exchange.

Keywords : Equity Market, Macroeconomics, Market Return, Political Risk, Stock Return

Page 45


HOW DOES THE TYPE OF PRODUCT MODERATE CONSUMERS' BUYING INTENTIONS TOWARDS TRADITIONAL FOODS ?

(STUDY OF CONSUMER BEHAVIOR IN INDONESIA)

Budhi Haryanto, Djoko Purwanto, Amina Sukma Dewi, Edi CahyonoUniversitas Sebelas Maret

AbstractThe study of traditional foods has been widely published in several scientific journals, and this still indicates inconsistency about the findings obtained. This study proposes the type of product to provide further explanation of its role as a moderator in the process of behavior towards traditional foods. This study aims to explain how the types of products (snack foods and restaurant foods) moderate the influence of price, quality, and convenience on positive attitude and intention of buying traditional foods. Of 1000 samples taken non-randomly, consisting of 500 individuals who intend to buy snack foods, and 500 individuals who intend to buy restaurant foods. Some of the places chosen include Paragon Mall, Solo Grand Mall, Matahari Mall, Hartono Mall, or other places where people spend time to relax in Surakarta-Indonesia. Multiple Structural Equations Model (Multi Group SEM) is a statistical method used to describe the relationship between observed variables. In conclusion, this study underlines that this type of product is a moderating variable in the buying behavior process of traditional foods. Regarding its role as a moderator variable, the relationships between variables that are conceptualized can be explained in detail about their significance.

Keywords: Traditional foods, Consumer behavior, Attitude, Intention, Indonesia

Page 46


EVALUATION OF LECTURERS' COMPETENCE IN IMPROVING TEACHING AND LEARNING ACTIVITIES TO FACE THE ASEAN ECONOMIC COMMUNITY (MEA) AT

THE FACULTY OF ECONOMICS, UNIVERSITY OF WIJAYA KUSUMA SURABAYA

Siti Asiah Murni, James Tumewu, Rica S. WuryaningrumWijaya Kusuma Surabaya University

AbstractHigher Education as one of the educational institutions has a role in producing qualified graduates. Lecturers are the important component in higher education, regardless the quality improvement policy designed, the lecturers are the people who are in charge and responsible in the learning process. The quality of learning process depends on the competence and commitment of the lecturers themselves which reflect their professionalism and the professionalism requires the perfect result, therefore passion of quality improvement is always needed to build it. It requires seriousness and thoroughness of work that can only be obtained through experience and habits. Therefore, this study aims to evaluate the competence of lecturers to improve teaching and learning activities so as to compete in the world of work, especially in the ASEAN economic era. The population of this study is all the students of the Faculty of Economics of Wijaya Kusuma Surabaya University. Sampling technique is used in this research as it is a purposive sampling. The collecting data procedure is using questionnaires. Analytical techniques using factor analysis is used in this study to prove the competence of lecturers affect the teaching and learning process. The results showed that personality factor ranked the first in the factors influencing on learning process, followed by social, professionalism and pedagogic factors.

Keywords: lecturers’ competence, professionalism, teaching and learning process

Page 47


PEOPLE MANAGEMENT AS A TOOL FOR SUSTAINABLE HUMAN RESOURCE MANAGEMENT

Alfa Santoso Budiwidjojo Putra, Christantius Dwiatmadja, Gatot Sasongko, Lieli SuhartiSatya Wacana Christian University

AbstractThe fulfilment of stakeholders’ needs in a company, both in the present and in the future, should not only be based on the financial aspect but also on the social and environmental/ecological aspect. There should be a sustainable perspective toward the Human Resource Management (HRM) that is integrated to the overall system of an organization in order to manifest the present success without sacrificing the future needs. By relying on the literature review method, through the study the researchers would like to provide several contributions toward the literature development of Sustainable Human Resource Management (Sustainable HRM). First, the study would like to discuss the concept and the development of the studies in the Sustainable HRM. Second, the study would like to discuss an evolution of HRM that demands the change from the Talent Management (TM) to the People Management (PM). Third, the study would like to discuss the Sustainable People Management (Sustainable PM) that has been performing by putting forward engagement, empowerment, and environment. In addition, the agenda for the future research would also be elaborated.

Keywords:Sustainable Human Resource Management, People Management

Page 48


BUILDING ACCELERATION OF ECONOMIC GROWTH MODEL THROUGH EDUCATION AND HEALTH BUDGET ALLOCATION CASES IN INDONESIA

Hasyim, Rina AninditaEsa Unggul University

Baharuddin, Gunawan STIE AMKOP

AbstractThe Role of Capital Expenditure on Education, Health Expenditure, on the effort to reduce

poverty level is an interesting study because the allocation of expenditure to several countries including Indonesia is quite large, so it is necessary to review the effectiveness of the budget allocation to reduce poverty and increase human economic growth. (Psacharopoulus, 1972) in Todaro, 2000).

The level of public welfare can no longer be measured from monetary values such as income per capita, but should include non-economic measures (Connolly and Munro (1999); Perkins (2001); Todaro and Smith (2002); and Van Den Berg 2005), and more focus on human development which can be measured from the high government commitment in allocating budget for education, health and other factors which are strongly related to the development of human resources.

The objectives of this research are to analyze and assess on how: (i) the impact of the allocation of education capital expenditure and the allocation of health expenditure on the Human Development Index; (2) the influence of human development index on economic growth; (3) the effect of economic growth on the level of poverty; and (4) the interpretation of the economic growth acceleration model.

The research was conducted by taking samples in 23 regencies/municipalities in South Sulawesi Province which is one of the provinces with the highest economic growth rate in Indonesia. The data used is Panel data with period 2004 - 2016, then processed by using regression analysis method.

The Result of the Research from thefirst model., it shows that from the t test, it is found that the variables contained in the data which give significant effect to the Human Development Index is the allocation of Education fund, at the real level of 5%. The value of R2 generated in this model is 0.637 which means that 63.7% of the human development index in 23 urban districts for 10 years is explained by the variables in the model, the allocation of education and health funds, the rest by other variables in the model. The variables in the allocation of education funds have a negative influence on the human development index. The value of regression coefficient of this variable is 0.72 with p-value of 0.003. meaning that any 1% increase in health allocation funds will reduce the human development index by 0.72. For the panel data analysis with this random effect model there are individual and time effects that show differences in human development indexes between districts and municipalities and between years. So the value of constants to be obtained will be different for each district/municipality and different for each time. The determinant coefficient value generated in model 1 shows the figure of 0.637 means that 63.7% of the human development index is explained by the variables in the model, i.e. the allocation of education and health funds. In model 2 it was found that the value of determinant coefficient is 0.0854, which means that only 8.5% of the diversity of economic growth in the twenty three districts/municipalities in South Sulawesi in the period 2007-2016 explained by the variables on the human development index.

Keywords: Education budget allocation, Human Development Index, Economic Growth, Developing Countries

Page 49


ENTERPRISE RESOURCE PLANNING (ERP), USER COMPETENCY AND ORGANIZATION COMMITMENT TO QUALITY OF ACCOUNTING INFORMATION

AND ACCOUNTING INFORMATION SYSTEM ON QUALITY OF ACCOUNTING INFORMATION

(EMPIRICAL STUDY OF MAJOR SECTOR COMPANIES OF PLANTATION SUB-SECTOR YEAR 2017)

Sugeng Riyadi, Anita Wahyu Indrasti, Prita AndiniUniversitas Budi Luhur

AbstractThis study aims to analyze the factors that affect the quality of accounting information. The population of this research is the main sector companies of the plantation sub sector listed in Indonesia Stock Exchange in 2017. The analysis tool used is using Structural Equation Modeling (SEM). The findings found; (1) the implementation of ERP has a direct and significant influence on Accounting Information Quality, (2) user competence significantly influence Accounting Information System Quality, (3) user competence does not directly influence the quality of accounting information, (4) organizational commitment significantly influence the Quality of Accounting Information Systems, (5) organizational commitment does not directly affect the quality of accounting information, (6) the quality of accounting information systems affect the quality of accounting information. To obtain quality accounting information, management must, (i) build a strong accounting information system, (ii) consider the use of ERP, (iii) build competent human resources as system implementers and (iv) build a positive corporate organizational culture for towards organizational commitment.

Keywords: ERP Implementation, User Competence, Organizational Commitment, Quality Accounting Information System, Quality Accounting Information

Page 50


THE EFFECT OF STORE ATMOSPHERE, SERVICE QUALITY, PRICE, AND LIFESTYLE TO REPURCHASE INTENTION IN SALATIGA CAFE

Terra Imelta Ole, Yusepaldo PasharibuSatya Wacana Christian University

AbstractThe current cafe business in the modern era is proliferating and favored by young people. For them, the cafe has become part of the contemporary lifestyle. Several variables from the previous research revealed that some variables affect consumer purchases, including store atmosphere, service quality, price, and lifestyle. But on the other hand, there are still inconsistencies in researchers results for variables store atmosphere and price that state as variables which are not influence repurchased intention from consumers. This research is a quantitative research, with the population is the consumer who ever comes and makes a purchase in P Cafe, Salatiga, Indonesia. Sampling technique used is nonprobability sampling with purposive sampling method. Some samples used as many as 160 respondents who then analyzed by using multiple regression analysis techniques. The results of this study indicate that partially, the variable store atmosphere, price and lifestyle affect the repurchase intention, but the variable quality of service does not significantly influence the repurchase intention. Furthermore, the simultaneous analysis shows that variable store atmosphere, service quality, price, and lifestyle simultaneously have a significant influence on the repurchase intention.

Keywords: Store Atmosphere, Service Quality, Price, Lifestyle, and Repurchase Intention

Page 51


THE RELATIONSHIP OF JOB SATISFACTION, ORGANIZATIONAL CHANGE DIMENSIONS, AND ORGANIZATIONAL CYNICISM

Heni Kusumawati, Wisnu Prajoga, Nikodemus Hans Setiadi WijayaSTIE YKPN Yogyakarta

AbstractThis study aims to seek the empirical evidence of the relationships among job satisfaction and organizational change dimensions. In this study, organizational change consists of cognitive change, affective change, and behavioral change. A total of 221 subjects was used in this study. They were educators of high schools and universities from various regions in Indonesia. In addition, the AMOS statistical program was performed to find support for the proposed hypotheses. Results indicated that job satisfaction was positively related to the three dimensions of organizational change.

Keyword: Job Satisfaction, Cognitive Change, Affective Change, and Behaviour Change

Page 52


THE EFFECT OF PRICE AND PRODUCT QUALITY TOWARDS CUSTOMER SATISFACTION AND CUSTOMER LOYALTY ON MADURA BATIK

Pribanus Wantara, Muhammad TambrinUniversity of Trunojoyo Madura

AbstractThis study aims to examine and explain the effect of the variable price and product quality to the satisfaction and loyalty. The research was conducted in the area of Bangkalan. The research problem of this study are: is there any influence between price and product quality to customer satisfaction, is there any influence between price and product quality to customr loyalty, and is there any influence between customer satisfaction to the customer loyalty. This study used survey where respondents were interviewed and asked to fill out a five-point Likert scale questionnaire. The target population of the study are customers who make purchase more than twice of Madura Batik. Sample of this study is 200 respondents, the sampling technique used was purposive sampling method. The analytical method used in this research is the analysis of SEM. Based from the results of the analysis has been done, it can be concluded that the price is significant and positive impact on customer satisfaction, the product quality is significant and positive impact on customer satisfaction, that the price is significant and positive impact on customer loyalty, that the customer satisfaction significant and positive impact on customer loyalty, but the product quality is not significant and positive impact on loyalty.

Keyword: price, product quality, customer satisfaction, customer loyalty

Page 53


TOWARD A NEW MODEL OF INNOVATION BEHAVIOR FOR FEMALE ENTREPRENEURS IN BATIK INDUSTRY

Nur Laily, Triyonowati, WahidawatiSekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya

AbstractBatik industry is one of home industries created by females in Indonesia. Having high efficacy and innovative behavior has driven the success of Batik entrepreneurs; however, female entrepreneurs of Batik Jonegoro encounter managerial barriers and product marketing. In particular, most of batik female entrepreneurs in Bojonegoro have difficulties in recording and managing financial transaction. Recording accurate and precise financial transactions will help SMEs to prepare an effective financial strategy. Moreover, the female entrepreneurs still use traditional management for product marketing. Therefore, this study aimed to improve the corporate financial management and marketing strategies from traditional into modern structure. Spesific models of simple financial management and marketing strategy need to developed so the female entrepreneurs are able to innovate on on how to reach more customers as well as how to inform sales to public. In this study, a planned model for financial management system is designed for start-up SMEs in order to make simple financial statement, profit and loss statement, and cost of good sold. In addition, internet has now become the lifestyle of communities who currently expect things practical and fast. Thus, the planned model for marketing is designed to provide online system so the Batik products will be broadly recognized and desired among communities.

Keywords: financial management, marketing strategy, female entrepreneurs, Batik industry.

Page 54


THE RELATIONSHIP BETWEEN COMPANY CHARACTERISTICS AND INTELLECTUAL CAPITAL IN INDONESIAN INITIAL PUBLIC OFFERINGS

Nurhayati, Tika Maningarta, Tatang Ary GumantiUniversitas Jember

AbstractPrevious studies have evidenced that some characteristics of the companies are associated with the extent of intellectual capital disclosure index (ICDI). The studies are motivated by the fact that intellectual capital has been known to have information content that could be used to value of the company. The existing literature and empirical studies are mostly based on companies that already a public company. Limited evidence is available for the newly listed companies. This study aims to further analyse the influence of industry type, company size, company age, and underwriter to the number of disclosure of intellectual capital of companies. It examine companies making Initial Public Offering (IPO) in Indonesian Stock Exchange. The population of this study are all companies that conduct IPO in the period 2014-2016. The sample consists of 52 companies. Results show that industry type, company size, and underwriter have positive and significant influence on intellectual capital disclosure. While the age of the company was found to have a positive but not significant impact on ICDI. Referring to the finding reported in this study, investors may analyse the extent of ICDI to value a company making IPO.

Keywords: company characteristics, intellectual capital disclosure, IPOs

Page 55


ETHICS AND TAX EVASION: IS IT ETHICAL NOT PAYING TAXES IN A CORRUPT COUNTRY?

Nurhidayati, Dyah PurwantiSTAN-Polytechnic of State Finance

AbstractThis study aims to explore how the view of tax morale in Indonesia, given the level of tax compliance in Indonesia is still low, inversely high levels of corruption. Low tax compliance and high levels of corruption are two opposite sides to be fought to increase the prosperity of citizens. Tax compliance strongly related to the principle of tax ethics because tax compliance is strongly influenced by individual ethical principles. Ethics are sometimes discussed but, more often than not, the focus of the discussion is on government corruption and the reasons why the taxpayer does not feel any moral duty to pay taxes to such a government. To investigate the portrait of ethical attitudes on tax evasion in Indonesia, we used a survey with questionnaire instruments to selected respondents, and used confirmatory factor analysis to analyze to classify the tax ethical principles of the respondents. The result shows tax evasion is ethical, when tax system is unfair, taxpayers is utility maximizer, and the intentional to evade. The highest average score is recorded by intentional to evade. This study proves that tax evasion is ethical, a special case in Indonesia, where the level of corruption is high. The result support on the view about tax ethics is tax evasion is always ethical, which assumes the position that all government are illegitimate. This result is very important for the government in combating tax evasion and increasing tax compliance. The government should build legitimacy, trust and clean of corruption so that taxpayers are satisfied with their tax payment.

Keywords: ethics, tax evasion, tax morale, corrupt

Page 56


INTERCONNECTEDNESS ANALYSIS INTERBANK MONEY MARKET (PUAB) ON BANKING AS ONE OF THE FINANCE SYSTEM VULNERABILITY INDICATORS IN THE

CONTEXT OF SYSTEMIC RISK MITIGATION

Luthfi Ardian, Ruslan PrijadiUniversitas Indonesia

AbstractThis study focus on interconnectedness analysis of interbank money market in banking as one indicator of financial system vulnerability in order to mitigate systemic risk. This research uses quantitative approach with multiple regression analysis method. The data used are time series of interbank money market transactions that have been processed using GEPHI application to produce two dependent variables namely Graph Density (GD) and Average Path Length (APL) indicating the density and number of transaction interbank money market which has potential to cause contagion effect. The dependent variable relation with time series data of liquidity ratio AL/NCD, LDR and Primary GWM. Through qualitative method, the result of multiple regression analysis will be confirmed with time series Turn Over Ratio (TOR) and Throughput data. Based on data analysis, it can be concluded that the ratio of liquidity of AL/NCD and LDR has a positive effect on the density of interbank money market, while the Primary GWM variable does not significantly affect. The next conclusion is that the LDR and Primary GWM variables positively affect the APL in the interbank money market, while the AL/NCD ratio does not significantly affect. Bank liquidity becomes one of the determinants of inter-bank connectivity. The results of these analysis have been confirmed positively by the ratio of transactions in the payment system. The TOR ratio increased during the crisis period. The Throughput transaction increased in the third phase. This indicates that banks tend to hold outgoing consumer transaction (Third Phase).

Keywords: Contagion, Interbank Money Market, Grap Density, Average Path Length, AL/NCD, LDR, Primary GWM, TOR, Throughput.

Page 57


HOW DO THE PERCEPTION OF TAX PROFESSIONALS ON TAX COMPLEXITY AND ITS CONSEQUENT ON TAX NONCOMPLIANCE BEHAVIOR?

Dyah Purwanti, Benny SetiawanSTAN-Polytechnic of State Finance

AbstractThis study aims to investigate the existence of tax complexity and its effect on non-tax compliance. Previous empirical evidence indicates that tax non-compliance is often due to the presence of tax complexity. This research is motivated by the application of self-assessment system that transfer the responsibility of tax compliance and tax administration burden to the taxpayer. The taxpayer prepares his own tax reporting, calculates, calculates and reports his tax burden to the tax authority. Self-assessment positioned the taxpayer as the party who plays an active role in tax reporting. To achieve the research objectives, we used a questionnaire survey by assigning tax professionals as primary respondents. Based on descriptive and partial least squares analysis, the research result proves that perception of legal complexity and administrative complexity, and tax knowledge influence to tax noncompliance. Specifically, tax knowledge positively affects the intentional non-compliance. Perceptions of legal complexity have a positive effect on both unintentional non-compliance and intentional non-compliance. The implication of this research is the existence of tax complexity, in the form of tax rule which is multiple interpretation, ambiguous, overlapping create gap which is utilized by tax professional not to obey either intentionally or unintentionally. For the government, the results of research into input the importance of tax simplification, from the side of legal drafting and simplification of procedures and tax administration.

Keywords: tax complexity, legal complexity, administrative complexity, unintentional/intentional tax noncompliance

Page 58


AN EMPIRICAL INVESTIGATION ON THE IMPACT OF XBRL ADOPTION ON INFORMATION ASYMMETRY WITH CORPORATE GOVERNANCE AS MODERATING

ROLE: EVIDENCE FROM INDONESIA

Rina Dharmawati, Siti Nurwahyuningsih HarahapUniversitas Indonesia

AbstractThis study aims to investigate the effect of adoption of XBRL on information asymmetry and to investigate corporate governance moderators on the relationship between adoption of XBRL and information asymmetry. By performing multiple regression with GLS approach in 1372 observational samples during 2013-2016, it was found that the adoption of XBRL had a negative effect on information asymmetry. And corporate governance as moderator proxies by two variables are the effectiveness of supervisory function and transparency level of the report reinforces the negative effect of adoption of XBRL on information asymmetry. The results of this study can be a reference for the government (BEI and OJK) to encourage all companies listed on the BEI to implement XBRL-based reporting and accelerate the development of other ongoing XBRL support reports.

Keywords: XBRL, Information Asymmetry, Corporate Governance, Information Asymmetry, Effectiveness Supervisory Function, ASEAN CG Scorecard..

Page 59


ANALYSIS ON THE EFFECT OF FINANCIAL PERFORMANCE, INVESTATIONDECISIONS, AND FUNDING DECISIONS TOWARDS CASH HOLDINGS: THE

ROLE OF DIVIDEND POLICY AS A MODERATING VARIABLE

Woen Cliff Wibowo, Sugeng WahyudiDiponegoro University

AbstractCash Holding is a company’s decision to determine how much cash and cash equivalents which the company possesses to be used for operating, investing and financing for the company. This study examined the factors that influenced companies’ Cash Holding listed in the LQ 45 Index during 2011-2016. The sample extracted for this research was by conducting 130 observations. The findings of this research showed that profitability had a positive effect to Cash Holding. Leverage, Capital Expenditure, Liquid Asset Substitute, Investment Opportunity Set variables and company size had a negative effect on Cash Holding. This research also used MRA (Moderated Regression Analysis) to understand the role of Dividend Policy as a moderating variable. The result showed that Dividend Policy was able to weaken the positive effect of profitability on Cash Holding and also strengthen the negative influence of Capital Expenditure and Liquid asset substitute on Cash Holding. As a result, the companies were able to make large dividend payouts to reduce the excessive amount of Cash Holding that managers often abused for their own benefits and increasingly prospering investors with a given dividend. This study also provided empirical evidence that supported 2 Trade off Theory, Pecking Order Theory, Agency Theory and Bird in the Hand Theory in explaining the factors that affect the company's Cash Holding.

Keywords: Cash Holding, LQ 45 Index, Trade Off Theory, Pecking Order Theory, Agency Theory and Bird in the Hand Theory

Page 60


CONTENT ANALYSIS : MENTORING POLICY AND AUDITOR TURNOVER BEHAVIOR AT PUBLIC ACCOUNTING FIRM

Nur Diana, Maslichah, M. Cholid Mawardi University of Islam Malang

AbstractHigh auditor turnover affects the quality of the Public Accounting Firms service in Indonesia. As a result, the stability of the organization in the public accounting firms is hampered, the level of performance is abandoned, and the fees for the recruitment and auditor training are increased. KAP organization is trying to find ways to reduce the high turnover of auditors, one of them is through mentoring policy. This study aims to determine the model of mentoring policy in the public accounting firm to reduce the behavior of auditors leaving their firms. This research used descriptive qualitative content analysis approach that involved 8 auditors acted as mentors and mentees at a public accountant firm in Malang and 2 academic experts in auditing and accountancy behavior as the informants. The data were collected through interviews and Focus Group discussions. The results showed that the mentoring policy in Public Accounting Firm was informal and did not yet have formal technical guidance. The mentoring functions implemented include social support functions, career development functions and role modeling functions.

Keyword: mentoring policy, auditor turnover, social support functions, career development function, role modeling function

Page 61


ACHIEVING BUSINESS PERFORMANCE THROUGH SUPPLY CHAIN AGILITY, STRATEGIC AND MANUFACTURING FLEXIBILITIES: EMPIRICAL STUDY ON SMES

IN THE FASHION INDUSTRY IN BOGOR, INDONESIA

Amie Kusumawardhani, Nadhila HakimUniversitas Diponegoro

AbstractResponsiveness to market needs changes is very crucial for all industries, especially the fashion industry. Products in the fashion industry are considered by short life cycles (due to fast trend changes) and impulsive purchases. In order to survive and strive in this dynamic business environment, fashion retailers need to develop supply chain in their upstream members to be more flexible, more capable in speedy delivery as well as response time. The current study attempts to address this issue by empirically investigatethe effect of strategic flexibility and manufacture flexibility on supply chain agility and firm performance in SMEs in the fashion industry in Bogor, Indonesia. A sample of 158 SMEs were gathered using questionnaires. Data was analyzed using structural equation modelling. The findings show that strategic flexibility as well as manufacture flexibility positively affect supply chain agility. Strategic flexibility has a direct and significant influence on business performance. On the other hand, manufacture flexiblity does not show apositive relationship with business performance. It also reveals that supply chain agility significantly influence business performance. The results of the study indicates that supply chain agility is one of the critical factors determining success in the fashion industry as it allows the firms to be more market sensitive and flexible.

Keywords: Supply chain agility, Strategic flexibility, Manufacturing flexibility, Business performance, Fashion industry, SMEs

Page 62


THE ROLE OF SUPPLY CHAIN MANAGEMENT ON COMPETITIVE ADVANTAGE AND BUSINESS PERFORMANCE: AN EMPIRICAL STUDY AT THE CENTER OF TOFU

CRAFTSMEN IN MAGELANG, INDONESIA

Amie Kusumawardhani, Sinta Putri Karunia, CahyaningratriUniversitas Diponegoro

AbstractThe purpose of this paper is to analyse the role of supply chain management practices, which includes strategic supplier partnership, customer relationship, and level of information sharing, in relation to competitive advantage andtheir effects on business performance. The research focuses on supply chain management practices in the center of tofu craftsmen in Magelang, Central Java, Indonesia. The tofu industry in Magelang drew attention due to the decreasing on quantity of tofu production and sales in spite the fact that there is a significant increase in the number of tofu craftsmen in the past few years.Data was collected using questionnaires distributed to 130 respondents. Structural Equation Modeling was applied to analyze data. The results show that there is a significant positive influence of strategic supplier partnership on competitive advantage. However, there is no significant influence of customer relationship and level of information sharing on competitive advantage. Furthermore, there is a significant positive influence on business performance of all variables except level of information sharing.The current study reveals that strategic supplier partnership has to be managed properly between the tofu craftsmen and their suppliers to gain competitive advantage and improve their profitability together. Moreover, a good and structured relationship between the tofu craftsmen and traders is expected to improve business performance.

Keywords: supply chain management, strategic supplier partnership, customer relationship, level of information sharing, business performance, competitive advantage

Page 63


A NON-MAINSTREAM PERSPECTIVE OF “TIME VALUE OF MONEY” ON MURABAHAH

Virginia Nur Rahmanti, Dian AgustiaAirlangga University

AbstractA Non-Mainstream Perspective of “TVM” on Murabahah. This study aims to obtain a new concept of "TVM" definition by using a non-mainstream perspective, sharia banking - especially on the basis of murabahah financing. The revised PSAK 102 of 2013 which changed the murabahah basis from sales to financing has yielded a lot of cons because of an indication of the similarity of substance between "effective rate of return" and "effective interest method". Hyper-Postphenomenology was used in this study. Methods of data collection include literature studies and in-depth interviews. The results show that the "effective rate of return" used by Islamic banking as a reference in determining the rate of return is a form of Mukhatarah being different from Gharar. The effective rate of return application has positive implications for the performance of Islamic banking in the form of risk mitigation and sustainability. This shows the orientation of Islamic banking tends to be more directed to the market than maqashid sharia.

Keywords: Sharia Banking Perspective, Time Value on Money, Murabahah, Financing.

Page 64


OWNERSHIP STRUCTURE AND AVOIDANCE OF TAXES

Eny SupraptiUniversity of Muhammadiyah Malang

AbstractTaxes represent a significant cost to the firm and the shareholders, and generally the shareholders prefer tax avoidance. The ownership structure proves to explain the relationship between dispersed shareholders and managers’ decisions in tax-avoidance when the government provides tax incentive schemes. The variation of ownership structure determined by the proportion of dispersed ownership is resulting in a decrease of the Effective Tax Rate (ETR) value. This indicates that the dispersed ownership structure can reduce tax avoidance. Public ownership of public companies reduces the concentrated ownership pattern in Indonesia, improves information transparency, reduces tax avoidance by managers that do not increase corporate value, and increases the use of tax incentive schemes offered by the government. Our result have policy implication to prove the effectiveness of the policy of providing tax incentives to public companies is expected to be an input for the government in the determination of tax policy schemes that minimize tax avoidance.

Keyword : ownership structure, tax avoidance

Page 65


THE IMPACT OF ORGANIZATIONAL JUSTICE ON JOB PERFORMANCE WITH AFFECTIVE COMMITMENT AS A MEDIATOR

STUDY AT A PRIVATE UNIVERSITY IN BENGKULU PROVINCE, INDONESIA

Ansori Fazjerin , SuharnomoDiponegoro University

AbstractJob performance is the key to the success of an organization. High job performance will make improvements to a company or an organization’s overall performance. Therefore, it is important for supervisors to supervise their employees’ job performance; and for the supervisors to also pay attention to the earnings acquired by the employees so that they are more motivated to do their work. This study examined the job performance in terms of organizational justice (distributive, procedural, and interactional) received by employees. The sample extracted for this research was by using questionnaires and was distributed to 270 private university administrative employees in Bengkulu province, with returned data as many as 150 questionnaires, and which later was processed as many as 129 questionnaires. The data was then processed using SEM (Standard Equation Modeling) with Amos 24 software. The results showed that organizational justice such as distributive and procedural justice had no significant effect on job performance, whereas interactional justice had a significant effect on job performance. On the other hand, procedural and interactional justice had a significant effect on affective commitment, whereas distributive justice had no significant effect on affective commitment.

Keyword: Distributive Justice, Procedural Justice, Interactional Justice, Job Performance, Affective Commitment

Page 66


ANALYSIS OF PDAM PERFORMANCE IN EAST JAVA BEFORE AND AFTER DEBT RESTRUCTURING

Ady Setiawan, Isti Fadah, Elok Sri Utami

Universitas Jember

AbstractThis study aims to analyze the process of restructuring in PDAM. This research was

conducted at PDAM in East Java. The population and samples used in this study amount to 38 PDAM in East Java. Data collection techniques using secondary data in the form of financial performance reports. The analytical method used is the analysis of financial statements and discriminant analysis.

The results show that the variables of each group have a significant difference. The one of the real impacts of the size of the debt rate is the magnitude of the interest rate that burdens the operational of the PDAM. The greater the debt, the greater the interest rate (including the principal of the debt) to be paid. Interest expense will be a problem and hamper the performance of PDAM, both financial and operational performance, if the proportion to total operational cost is quite large compared to the proportion of other operational costs. Conditions on PDAMs in East Java. The direct cost of PDAM business is also a burden because the numbers are very large. Together with the high interest expense, this condition further exacerbates the financial performance of PDAM in East Java Province prior to debt restructuring, especially on the aspect of profitability. The low efficiency of production where the average production efficiency is 64.47% and even decreased to 62.70% after the restructuring. Debt and interest expense for each cubic meter of clean water produced also shows that PDAMs in East Java Province have to bear the burden of debt and interest costs per cubic meter are much higher. All operational costs must ultimately be charged to the consumer, then the debt and interest expense per cubic meter also automatically becomes the burden of the consumer. Keyword: restructuring, PDAM, debt, financial performance

Page 67


SYNCHRONIZING ISNC MODEL AND INDONESIA’S VILLAGE FUND PROGRAM TO STIMULATE RURAL AGRICULTURE-BASED INDUSTRIALIZATION THROUGH

RURAL INFRASTRUCTURE DEVELOPMENT

Firrean Suprapto, Sukardi Sentono, Rezaldi Alief PramadhaUniversitas Darma Persada

AbstractEstablishment of Sustainable Development Goals (SDGs) as global development agenda could generate support to implementation of Indonesia development plan 2014-2019 that focuses on developing frontier, border, and under-developed area and emphasizes on infrastructure development. On the other hand, in community development field, Inclusive and Sustainable New Communities (ISNC) Model of United Nation Development Program (UNDP) can be utilized to improve Village Fund Program Implementation by combining it with Republic of Korea’s Saemaul Undong concept.

Using literature study method, this paper aims to encourage the completion of SDGs number 9 by combining rural industrialization and community development. This study finds that implementation of ISNC Model accompanied with industrialization of rural area based on agriculture product can improve implementation of Village Fund Program while in the same time achieving SDGs number 9. Further discussion is presented to explain implementation strategies which emphasizes on community participation in order to achieve 1) Development of Village Enterprise, 2) Increasing Income, 3) Improvement of Rural Access and Livelihood, and 4) Ensuring Project Inclusiveness and Sustainability.

Keywords: Sustainable Development Goals, Village Fund Program, Inclusive and Sustainable New Communities (ISNC) Model, Rural Development, Community Participation

Page 68


COMPARATIVE ANALYSIS OF ISLAMICITY PERFORMANCE INDEX IN ASEAN ISLAMIC BANKS IN 2011 - 2016 PERIOD (A CASE STUDY ON INDONESIA, MALAYSIA,

BRUNEI DARUSSALAM, AND THAILAND)

Noer Fauziah Aulia Rahayu, Dina Fitrisia SeptiariniAirlangga University

AbstractThe aim of this study is to discover whether there are differences in Islamic Banking in ASEAN period 2011-2016. This study used quantitative approach with purposive sampling as the sampling method. Sample used in this study were Islamic banks in Indonesia, Malaysia, Brunei Darussalam, and Thailand, and then carried out the analysis of difference tests using ANOVA and Kruskal Wallis test. The variables used in financial performance assessment are PSR, ZPR, EDR, IIR, Isir. This study used secondary data gathered from financial report data for the 2011-2016 period. The results reveal that there are difference of Islamicity Performance Index among Islamic banks in terms of PSR, ZPR, EDR,IIR, IsIR.

Keywords: Comparative Analysis, Islamicity Performance Index, Islamic Bank, ASEAN

Page 69


THE IMPACT OF BRAND IMAGE, PRODUCT ATTRIBUTES, AND ATTITUDE TOWARD BUNDLING ON CONSUMER SATISFACTION AND REPURCHASE INTENTION

Rendi Arfiandi, I Made SukresnaUniversitas Diponegoro

AbstractThe business competition of packaged tea products is increasing, as indicated by the growing number of new brands of packaged tea. Companies should create a new marketing strategy to maintain and gain market share higher. The purpose of this research is to examine the influences of the brand image, attitude toward bundling, and product attributes on repurchase intention of Teh Botol Sosro product. The population in this research is Teh Botol Sosro’s consumers in Semarang city, Indonesia. Two hundred respondents are selected as sample using purposive sampling. Data obtained from the questionnaires were then analyzed using Structural Equation Modeling (SEM) technique. The results show that brand image, attitude toward bundling, and product attributes positively influence consumer satisfaction, and in turn, consumer satisfaction positively influences repurchase intention. In addition, compared to the other variables, product attributes has the most influence on repurchase intention.

Keywords: brand image, product attributes, consumer satisfaction, attitude toward bundling, repurchase intention.

Page 70


ANALYSIS OF PERCEPTION AND WILLINGNESS TO PAY NEW VIRGIN RED PALM OIL (VRO) “SALMIRA” ON AFRICAN EXPATRIATE IN JAKARTA

M. Syaefudin AndriantoBogor Agricultural University

Darmono TaniwiryonoPT. Nutri Palma Nabati

AbstractVirgin Red Palm Oil (VRO) is a naturaloil extracted from the mesocarp of matured oil palm fruit that contains high nutrition. Traditionally it is used in Africa as dietary supplement and is not available in Indonesia. So there is market opportunity to develop product for African Expatriate in Indonesia. The research objective is to analyze acceptance and willingness African community in Jakarta to pay new product of VRO. 35 African expatriate respondents were given 250 ml VRO sample.After trying sample for cooking, 35 African expatriate respondent were surveyed by questionnaire. The results showed that the product perception was good, simillar with the product in their origin country and almost 90 % respondent would to buy the product. Packaging was prefered in 1 liter. Maximum willingnes to pay for 1 liter was IDR 150,000, and minimum was IDR 20,000.Average price was IDR 70,370 and optimum price with linear regression approach was IDR.70,809and with the Logarithmic regression approach was IDR.62,628.

Key words : New Product Development, Optimal Price, Red Palm Oil, Willingness to pay

Page 71


STRATEGI PEMASARAN DAN PERMASALAHAN YANG DIHADAPI OLEH PERUSAHAAN SEPATU DAN KERAJINAN PRODUK KULIT DI DKI JAKARTA

Darwin Simanjuntak

Universitas Esa Unggul Jakarta

AbstrakTujuan utama penelitian ini adalah untuk menelaah dan menganalisis strategi dan praktek pemasaran serta permasalahan yang dihadapi oleh perusahaan sepatu dan kerajinan kulit di DKI Jakarta dan Sekitarnya. Penelitian ini Menggunakan metode penelitian deskriptif, data primer diperoleh dengan menggunakan kuestioner untuk diisi oleh perusahaan responden selanjutnya diikuti wawancara untuk memperoleh opini yang lebih lengkap dari responden. Hasil penelitian menunjukan berbagai hal penting seperti berikut. Produk unggulan yang dihasilkan oleh perusahaan sepatu dan kerajinan kulit adalah sepatu, sandal, jaket, mantel, tas, dompet, topi, tas dokumen/paspor, asesori dan dekorasi, dll. Produk-produk tsb selain dipasarkan di dalam negeri juga di ekspor ke berbagai negara tujuan seperti Amerika, Inggris, Jerman, Jepang, Itali, Belanda, Spanyol, Canada, Panama, Mexico, Australia, Saudi Arabia, dll. Adapun strategi keunggulan bersaing perusahaan terletak dalam hal-hal berikut, mutu bahan baku, design dan kualitas produk, harga bersaing, design dan nilai craftmenship yang tinggi. Strategi promosi yang lazim diterapkan adalah mencetak brosur/katalog produk, mengikuti pameran dagang di dalam dan luar negeri, korespondensi via email dan website, sponsorhip olah raga,iklan TV, majalah dan media cetak khususnya untuk perusahaan skala besar. Perusahaan sepatu dan industry kerajinan kulit menghadapi berbagai masalah seperti, sengitnya persaingan dipasar global, mahal dan makin langkanya bahan baku kulit yang bermutu, terbatasnya akses untuk ikut dalam pameran dagang(exhibition) dalam dan luar negeri, dan tingginya sukubunga pinjaman yang ditetapkan oleh sektor perbankan juga merupakan hal yang dikeluhkan oleh perusahaan responden. Perusahaan responden mengaharapkan agar pemerintah dapat meningkatkan fasilitas yang diberikan untuk industry sepatu dan kerajinan kulit seperti keringanan sukubunga pinjaman untuk belanja modal, menyediakan sarana/prasarana untuk pelatihan dan pendidikan tenaga kerja trampil khusunya dalam hal teknologi produksi, risert pasar dan design produk, serta perencanaan pemasaran dan pengembangan produk. Berbagai peraturan pemerintah yang terkait dengan industry sepatu dan kerajinan kulit hendaknya ditinjau kembali agar dapat lebih bersinergi sehingga dapat meningkatkan daya saing perusahaan sepatu dan industry kerajinan kulit menjadi andalan dalam pembangunan ekonomi Indonesia.

Kata kunci: Konsep dan Strategi pemasaran, Orientasi kustomer, Permasalahan dan Insentif Pemasaran.

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EFFICIENCY CONVERGENCE STUDY OF MANUFACTURING INDUSTRY IN INDONESIA: STOCHASTIC FRONTIER APPROACH

D.W. Sari, Z. Yasin & H.A.T. IslamiaFaculty of Economics and Business, Airlangga University, Surabaya, Indonesia

AbstractEvidence of efficiency levels and convergence are considered of importance in assessing the competitiveness of manufacturing industries. This paper evaluates the technical efficiency and convergence of Indonesian manufacturing industries using stochastic frontier analysis (SFA) by observing 24 subsectors of manufacturing industries. Results seem to provide supporting evidence of convergence of efficiency levels on 54% of Indonesian manufacturing industries.

Keywords: Efficiency Convergence, Stochastic Frontier Analysis, Manufacturing Industry

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Documents

- abstract - pp 1-73.docx · Web viewThe Second International Conference on Finance, Management and Business. Semarang, 1 . August. 2018. Page . 73