[DOCUMENT TITLE] · 2019. 8. 16. · [DOCUMENT TITLE] [Document subtitle] 2nd International Conference on Accounting and Business Management (ICAbM) 2019 e-ISBN 978-967-17038-0-9

[DOCUMENT TITLE] [Document subtitle]

2nd International Conference on Accounting and Business Management (ICAbM) 2019

e-ISBN 978-967-17038-0-9

ICAbM 2019 ""Bridging Academic and Practice towards Industry 4.0".

Conference Proceeding

2nd International Conference on Accounting and Business

Management (ICAbM) 2019

31 July -1 August 2019

Bandung, Indonesia


e-ISBN 978-967-17038-0-9

Conference Proceeding


Management

(ICAbM) 2019

31 July -1 August 2019

Bandung, Indonesia

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addressed to the publisher.

Programme & Abstracts of the 2nd International Conference on Accounting and Business Management (ICAbM) 2019,

Bandung, Indonesia.

Disclaimer: Every reasonable effort has been made to ensure that the material in this book is true, correct, complete, and

appropriate at the time of writing. Nevertheless, the publishers, the editors, and the authors do not accept responsibility for any

omission or error, or for any injury, damage, loss or financial consequences arising from the use of the book. The views

expressed by contributors do not necessarily reflect those of the Universitas Padjadjaran, Indonesia and Universiti Teknologi

MARA, Malaysia.

Published by Universitas Padjadjaran, Indonesia and Universiti Teknologi MARA, Malaysia.

Table of Contents


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Foreword:

Dean, Faculty of Economics and Business, Universitas Padjadjaran

Chief Executive of ICAbM 2019,Universitas Padjadjaran

About Organisers:

Universitas Padjadjaran, Indonesia

Universiti Teknologi MARA, Malaysia

Abstracts


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Foreword

Dean, Faculty of Economics and Business,

Universitas Padjadjaran, Bandung, Indonesia

Assalamualaikum warahmatullahi wabarakatuh

Excellencies, distinguished speaker, ladies and gentlemen

It’s a great pleasure to welcome you on behalf of Faculty of

Economy and Business Universitas Padjadjaran (UNPAD) to the first International conference

of accounting, business and management (ICAbM 2019). We are indeed pleased that a number

of distinguished speakers as well as many participants presents on this particular conference.

This conference is made possible by supports of some collaborating institutions. Therefore, I

would like to thanks to the government of West Java Provinces for valuable support to the

Faculty of Economics and Business. Gratitude also goes to the University Technology Mara,

Malaysia as the co Host and make this conference academically stronger. Collaboration

between international and regional institutions result in best research outcome and also

providing policy recommendations and scholarly publications.

The Faculty of Economics and Business is a leading and inspiring faculty and has a range of

big achievement to meet the University vision as world class university in the year 2026.

Currently, Unpad is the 4th top universities in Indonesia based on QS World University

rangking 2019.

This conference takes place in Bandung, known as Paris van Java, the center of Sundanesse

culture and famous for its heritage and culinary.

I wish you for dynamics discussion in ICAbM 2019.

Sincerely yours

Yudi Azis., SE., S.Si.,S.Sos., MT., PhD


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Chief Executive of ICAbM 2019,

Universitas Padjadjaran, Bandung, Indonesia

Assalamualaikum warahmatullahi wabarakatuh,

I am delighted to welcome you to Bandung and the 1st International Conference on Accounting and

Business Management (ICAbM). ICAbM is a scholarly activity consists of international seminar and

conference that is expected to give contribution to the convergence of multiple disciplines within the

scope of Accounting and Business Management in promoting value creation .

The Magister of Accounting Program, Faculty of Economics and Business, Universitas Padjadjaran,

Indonesia in Collaboration with The Faculty of Accountancy, University Technology Mara, Malaysia,

organized this conference. The theme of this conference is “Bridging Academic and Practice towards

Industry 4.0”, and this theme is manifested in the submitted comprised of the scholarly work from

various background.

This event is a great opportunity for networking and discuss the current development in

technology and its impact for interdisciplinary areas of Accountability and Integrity,

Accounting Information System, Auditing and Assurance, Business, Business Model and

Corporate Sustainability, and many others areas in business and management. We appreciate your

attending at the conferences and hope you enjoy your time in Bandung.

Wassalamualaikum warahmatullahi wabarakatuh.

Sincerely yours,

Zaldy Adrianto, S.E., Ak., M.PAcc


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About Organisers

Master of Accounting, Faculty of Economics and

Business, Universitas Padjadjaran, Bandung, Indonesia

The Master of Accounting, Faculty of Economics and Business of Universitas Padjadjaran,

Bandung, Indonesia is formed to develop graduates who are competent in the field of

accounting in accordance to the worldwide demands of professional accountants. It aims to

improve the competence and commitment of the academic staffs and students to play an active

role in the development of applied accounting knowledge and technology in a national and

Asia Pacific level. The Department also is currently organising internationally competitive

higher education that is able to access the world’s demands of human resources in accounting.

In addition, the Master of Accounting is also organising higher education management with

qualities in accordance to the principles of good governance to improve the reputation and the

trust of stakeholders. By the end of 2026, the Master of Accounting aspires to become an

excellence master degree in accounting with high reputation in accomplishment education.


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Faculty of Accountancy, Universiti Teknologi MARA

Selangor, Malaysia

The Faculty of Accountancy, Universiti Teknologi MARA is formed to nurture and produce

competent professional accountants capable of making positive contributions over their life

time to the profession as well as to their stakeholders. The education and experience that the

faculty provide lend a solid foundation of knowledge, skills, professionalism and ethical values

that would enable the graduates to learn and adapt to changes in their professional lives. In

terms of research and consultancy, the faculty aims to add value to its core activities, enrich its

skills and expand its professional profile by embracing research as part of the work culture.

The Faculty of Accountancy aims to become a leading reference centre and a catalyst to the

accounting profession.

Transformational Accounting Education is one of the research clusters under the wings of the

Faculty of Accountancy, Universiti Teknologi MARA. It aims to assist academics in helping

the students to become meta-critical participants in the learning process and well-practiced at

critical thinking, goal setting and reflection by way of research and innovation in teaching and

learning.


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Abstracts


Management (ICAbM) 2019

31 July-1 August 2019

Bandung, Indonesia


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Paper ID06

The Effect of Supply Chain Risks on Economic Performance and

Environmental Performance among ISO 14001 Certified Manufacturing

Sector

Nor Zawani Ibrahim1 and Razli Che Razak 2

1 Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia

2Centre for Postgraduate Studies, Universiti Malaysia Kelantan, Malaysia

ABSTRACT

Supply chain risks is one of the factors disrupting the organizational performance in terms of economic

performance and environmental performance. The objective of this study is to investigate the effect of supply

chain risks towards economic and environmental performance on Malaysian manufacturing sector those

obtain ISO 14001 certification. A total of 125 managers have participated in this study. Data was analysed

using PLS-SEM. By using exploratory factor analysis (EFA), supply chain risks were classified into five

supply chain risks constructs. The finding shows that demand risks and environmental risk has significant and

negative effect on economic performance. Manufacturing risk, supply risk and environmental risk has

significant and negative effect on environmental performance, meanwhile information risk has no significant

relationship towards both economic and environmental performance. The finding of this study can give

information to the researchers and academicians about which types of supply chain risks affect economic

performance and environmental performance. The proposed conceptual framework also would help the

academicians and practitioners to find the best strategy to manage the supply chain risks. To reduce the effect

of economic performance and environmental performance, future research can introduce the role of strategy

or practices to mitigate the supply chain risks.

Keywords: Supply chain risks, Economic performance, Environmental performance, Conceptual framework

Paper ID07


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Effects of Earning Manipulation, Strength of Financial Position and

Financial Distress to Firm Value: A Case of Listed Manufacturing Firms in

Indonesia

Armanto Witjaksono1

1Accounting and Finance Department, Faculty of Economic and Communication, University of Bina

Nusantara, Indonesia

ABSTRACT

Financial accounting information is often used by researchers and investors to measures firm value. The

objective of this research is to investigate whether earning manipulation, strength of financial position and

financial distress effect firm value. In this research earning manipulation is measured using Beneish M-Score,

strength of financial position is measure using Piotroski F - Score, Financial distress measured using Altman

Z-score, and firm value is measured using Price Book Value (PBV). We uses 129 samples from publicly listed

manufacturing companies in Indonesia Stock Exchange (Bursa Efek Indonesia) in 2014, 2015, and 2016. Our

research uses panel data analysis, and as the hypothesis test using E-VIEW. Results of our research show that

only financial distress influences firm value. However, all independent variables simultaneously influence

firm value. This finding also indicate that financial distress is more important than the other earning

manipulation and strength of financial position in determining firm value.

Keywords: Beneish M-Score, Piotroski F-Score, Altman Z-score, Firm Value


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Paper ID11

Exploration of Psychological Theory of Prospect on Investment Decisions

among Islamic Investors

Herry Ramadhani1

1Economics and Business Faculty, Mulawarman University, Indonesia

ABSTRACT

The purpose conceptual paper researcher wants to explore the psychological theory of prospect (Kahneman

& Tversky, 1979), on a new field related to the right investment decisions in Islamic investors. Islam views

all human actions in daily life, as an investment that will get a return. The investment results obtained in Islam

are in accordance with the amount of resources sacrificed The behavior of a Muslim investor should not be

the same as conventional investor behavior, as Muslim investors when investing in saving are not only profit-

oriented to be gained in the future but also pay attention to the element of ignorance. The Islamic principle of

investment activity encompasses at least five aspects, namely: not seeking sustenance on the things that are

haram, not tyranny and not destined, justice in the distribution of income, and no element of usury, maysir

(gambling, speculation), and gharar (uncertainty) The problem to be studied by the researcher is a social and

dynamic problem because it uses) with sequential explanatory design strategy.

Keywords: Prospect theory, Investment, Muslim investor and Mixed research method (MMR)


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Paper ID14

The Effects of Market Orientation towards Cooperative Business

Performance: Conceptual Paper

Azianis Mohd Noor1, Mohammad Ismail2 and Mohd Nor Hakimin Yusoff 3

1,2,3Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia

ABSTRACT

Cooperative organizations play an important role in economic development in Malaysia. The government has

seen it as another important entity to boost the country's economy and growth. Thus, cooperatives in Malaysia

are among the most important entity to be investigated in view of the role of economic growth. However,

little is known as of today, there is still no in depth study was conducted, therefore this study aim to investigate

the effect of Market orientation include customer orientation, competitor orientation and inter-functional co-

ordinations on the cooperative’s performance. The study was conducted among cooperative after considering

their contribution to the country economic growth. This study used library search and evaluation of the

previous literature review. Therefore, this study proposed framework for further investigate the factors that

affect the performance of cooperative. This framework will give a further insight about cooperative

performance and market orientation in different context.

Keywords: Market orientation, Customer orientation, Competitor orientation, Inter – functional

coordination.


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Paper ID23

Analysis of Preference of Using Tawarruq Contract in Islamic Retail

Financing Products

Nabihah Muhammad1, Sharifah Faigah Syed Alwi2, Najihah Muhammad3, Ismah Osman4, Amirul Afif

Muhamat5 and Mohamad Nizam Jaafar6

Arshad Ayub Graduate Business School, Universiti Teknologi MARA, Malaysia

ABSTRACT

Retail financing products is one of the main banking facilities offered by conventional and Islamic banks in

Malaysia. It consists of four types of products which are home financing, personal financing, vehicle financing

and credit card. Almost all banks which offer Islamic banking products and services in Malaysia today are

using tawarruq contract widely in their retail financing products. This scenario is quite alarming since the

banks will rely too much on tawarruq contract and neglect the other Shariah contracts. Thus, this study intends

to analyse the preference of using tawarruq contract as compared to other contracts for retail financing

products in the Islamic banks as well as the conventional banks which are offering Islamic banking products

and services. This study also focuses on the opinion of the Muslim jurists towards the tawarruq’s ruling which

has become the basis for the tawarruq’s preference in the banks. This study adopted the qualitative method

where semi-structured interviews are conducted with four Shariah experts from four banks who involved

directly with the Shariah Department. This study found that two full-fledged Islamic banks preferred to use

the tawarruq contract while two Islamic subsidiary banks did not prefer to use tawarruq contract based on

their own reasons and judgement. It is recommended that the full-fledged Islamic banks which are using only

tawarruq contract to apply the contract temporarily. At the same time, the banks should try to invent a new

mechanism in order to limit the usage of tawarruq contract to create healthy growth of Islamic banking

industry.

Keywords: Preference; Tawarruq contract; Retail financing products; Islamic banks


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Paper ID24

Optimal Portfolio Management based on the Shariah Compliance Paradigm

and Benefits of Diversification: Study of Indonesian Market

Nanda Karunia Amanah1, Budi Purwanto2 and Wita Juwita Ermawati3

1, 2, 3 Department of Management Science, FEM, Bogor Agricultural University, Indonesia

ABSTRACT

The Islamic Finance Compiliant continues to receive special attention because of their enormous potential.

The increasing number of requests for Shari'ah financial products in the global market is an indication that

Syari'ah Finance Compliance is not only in attractive by Muslims but has become part of the solution of

international investors. Reviewing the formation of counterparts based on Islamic principles provides an

indication that products based on shari'ah compliant can continuously reduce risk. By specifically entering

syari'ah shares as part of the portfolio, it will increase the value of the portfolio optimization. Therefore this

study intends to analyze the level of compliance of shari'ah stocks which is then followed by a series of

treatments namely weighting, optimization with the Karush Kuhn Tucker method (KKT) and Mean-variance

test. The portfolio with the composition of syari’ah stocks is believed to result in a better value of portfolio

performance tests.

Keywords: Portfolio management, Shariah compliance, Diversification, Indonesia


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Paper ID25

Improving Audit Quality: Adopting Technology and Risk-Based Approach

Sepky Mardian1 and Ilya Avianti2

1School of Islamic Economics, Padjadjaran University, Indonesia

2Faculty of Economics and Business, Padjadjaran University, Indonesia

ABSTRACT

Audit quality is an issue that has often been investigated since the previous 20 decades (Knechel et al., 2013),

especially after many major accounting scandals occurred (Duff, 2004). Various factors have been identified

with various results and conclusions. Among the latest factors related to audit quality issues are the use or

adoption of computer-based audit techniques (TABK) (Banker, Chang, & Kao, 2002; Bierstaker, Burnaby, &

Thibodeau, 2001; Dowling & Leech, 2014; C.-W. Lin & Wang, 2011; Widuri et al., 2016; Zhao et al., 2004);

implementation of a risk-based audit (RBA / Risk Based Audit) approach (Bell, Peecher, & Solomon, 2005;

Bowlin, 2011; Flint, Fraser, & Hatherly, 2008; Knechel, 2007; Lovaas, 2009). Regulators in various countries

are different in addressing the above issues. USA is among countries that require the use of TABK in the audit

process. In contrast to Indonesia, as one of the developing countries, it only encourages auditors to apply

TABK. Whereas related to risk-based audits are more related to the expansion of the scope of auditor

assignments related to fraud detection. In fact, this has become an international issue, where the IAASB-IFAC

released Audit Standard 240 which was also adopted by the Indonesian Institute of Certified Public

Accountants in SA 240 regarding the auditor's responsibility for fraud detection. This study aims to explain

the effect of TABK and RBA adoption on the quality of audits conducted by auditors of the Supreme Audit

Agency in Indonesia. The primary data obtained from the survey is used to explain the purpose of this research.

This research data is processed using the Structural Equation Model (SEM). This study found that the adoption

of computer-assisted audit techniques and a risk-based audit approach by BPK auditors had not had a

significant effect on audit quality.

Keywords: Audit quality, Technology, Risk based approach, TABK, Indonesia


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Paper ID30

Intellectual Capital in Malaysian Non-Profit Organisation

Amrizah Kamaluddin1 and Siti Zafirah Baiza Abu Bakar2

1,2Faculty of Accountancy, Universiti Teknologi MARA, Malaysia

ABSTRACT

The NPOs have received increasing demand of services from the society which caused them to operate in a

highly competitive environment due to the increasing competition in securing resources, less number of

volunteers and limited government funding. There are suggestions that the existence of intellectual capital can

lead the NPO to become a leader in the social network. Intellectual capital can be a new lens for the NPO in

increasing and sustaining its performance. A review of the literature has shown that most studies in the

intellectual capital literature have focused on profit organisations, leaving the examination on the link between

intellectual capital and NPOs largely unexplored. Thus, this study aims to examine the relationship between

intellectual capital and the performance of the Malaysian NPOs. Specifically, this study examines three

components of intellectual capital namely, human capital, organisational capital and relational capital. This

study applied the quantitative approach using questionnaire survey. Sixty seven representatives from various

NPOs in Malaysia participated in this study. The results of this study demonstrate that intellectual capital

provides a significant effect on the performance of the NPOs. The results indicate that organisational capital

and relational capital significantly influence the performance of the NPOs whereas human capital does not

stimulus the performance of the NPOs. Organisational Capital which includes organisation routines, structure,

values and practices proves to increase NPO’s performance. Relational capital focuses on both internal and

external relationship and communication. When there is an effective internal communication, it leads to a

satisfaction and successful of external communication.

Keywords: Intellectual capital, Human capital, Organisational capital, Relational capital, Non-profit

organization (NPO)


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Paper ID32

Analysis of Biological Asset Disclosure: Empirical Study On Agricultural

Companies In Indonesia

Evy Rahman Utami1 and Aji Prabaswara2

1,2Accounting Department, Universitas Muhammadiyah Yogyakarta, Indonesia

ABSTRACT

This study aimed to analyze the influence of biological asset intensity towards company performance with

biological asset disclosure as the intervening variable. The problem which arises is on the decrease of

agriculture company performance because of inaccurate financial report so that the information users are less

interested to agriculture companies. Hence, it impacts on the decrease of the company performance.

Indonesian Accountants Association (IAI/Ikatan Akuntan Indonesia) started to publish new regulations related

to measurement, recognition and disclosure of biological assets which is Statement of Financial Accounting

Standards (Pernyataan Standar Akuntansi Keuangan/ PSAK) 69. PSAK 69 was published in early 2015 which

was an exposure draft and generally used in financial report in 2018. The samples used in this study were

agriculture companies listed on Indonesia Stock Exchange for 2015-2017 period. The sampling method used

was purposive sampling. The analysis instrument was multiple linier regression and used path analysis in

measuring the intervening variable. The results of the study showed that biological asset intensity affected the

biological asset disclosure, biological asset intensity did not affect directly towards company performance and

biological asset disclosure variable was able to intervene the correlation between biological asset intensity

towards company performance. This study helps standard board to see the enhancement of biological asset

disclosure in Indonesia and to develop PSAK 69.

Keywords: Biological asset intensity, Biological asset disclosure, Compay performance


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Paper ID34

Credit Management in Full-Fledged Islamic Bank and Islamic Banking

Window: Towards Achieving Maqasid Al-Shariah

Najihah Muhammad1, Sharifah Faigah Syed Alwi2 and Nabihah Muhammad3

1,2,3Arshad Ayub Graduate Business School, Universiti Teknologi MARA,Malaysia

ABSTRACT

The percentage of non-performing loans (NPL) and non-performance financing (NPF) in Malaysia

commercial banks is under control and does not increase in its percentage since the year 2014 to 2016. These

scenarios are the result of the stringent credit management procedures in the commercial banks which if not

properly followed could affect banks’ profitability and liquidity. However, there are critics by the public on

how Islamic banks normally tend to punish their customers who are the real traders or businessman without

fixed monthly income when they slightly late in paying their periodical payment for the bank’s facility or

financing. Islamic bank is supposed to help the customer in order for it to achieve maqasid al-shariah

(objectives of Shariah). Thus, this study intends to compare the credit management’s procedure in one of the

full-fledged Islamic banks and one of the conventional banks which also offer Islamic banking window. This

study also aims to identify the achievement of maqasid al-shariah through the procedures of credit

management in the two banks. This study adopted the qualitative methodology where semi-structured

interviews are conducted with 2 bankers from one of the full-fledged Islamic banks and one of the

conventional banks which also offer Islamic banking window. Results from this study indicated that each

banks has their own strategies and procedures with regard to credit management. Their credit management

plans were structured to help customers to secure their loans, financing and assets as well as protecting from

them from bankruptcy and insolvency which basically comply with maqasid al-shariah. From this study, it is

recommended for commercial banks to apply a strict approval process for loan and financing as well as a strict

credit monitoring system to avoid NPL and NPF.

Keywords: Credit management; Full-fledged Islamic bank; Islamic banking Window; Maqasid al-shariah


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Paper ID35

Organizational Behaviour, Culture, Information Technology and Activity-

Based Costing Implementation Success

Aliza Ramli1 and Nur Fatin Rosli2

1&2Faculty of Accountancy, Universiti Teknologi MARA, Malaysia

ABSTRACT

Rapid technological changes have caused the traditional costing system to be inappropriate for companies

especially those that undertake mass production. The traditional costing system could hardly reflect the true

cause and effect relationship between indirect costs and individual products. Using a contemporary

management accounting technique i.e. Activity-Based Costing (ABC), managers could address issues

concerning cost allocation and product cost computation which can then enable them to make better decisions

on pricing, product line, customer market, and capital expenditure. Despite ABC’s numerous benefits, the

implementation of the technique is still low in Malaysia. Studies on ABC in the local context are limited and

which tend to confine to certain contextual variables. Therefore, this paper aims to examine the current state

of implementation success of ABC and its influential factors consisting of organizational behaviour, culture

and information technology in the manufacturing industry in Malaysia. Using the survey method,

questionnaires were distributed via different modes to manufacturing companies registered with the Malaysian

Manufacturer Association in which 23.2% usable response rate was obtained. The results revealed ABC

implementation is still at the infancy state and its implementation success was significantly influenced by

organizational behaviour and information technology. The findings put forth to managers the important factors

to consider in ensuring ABC implementation success, which in turn can enhance firm performance.

Keywords: Activity-based costing; Organizational behaviour; Organizational culture, Technology


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Paper ID38

The Relationship between Financial Knowledge, Business Ties, and Micro-

Enterprise Performance in Malaysia : A Conceptual Paper

Siti Maslina Hamzah1 and Mohd Nor Hakimin Yusoff2

1Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia 2Institute Small Medium Enterprise, Universiti Malaysia Kelantan, Malaysia

ABSTRACT

Micro-enterprise have been the backbone for Malaysian economy for achieving high-income status whereby

it supports local economic and significantly contribute to flourishing the economic growth, equity and social

stability. Having said so, micro-enterprise may requires a financial knowledge to prevent wrong decision

making in business activity. Lack of financial knowledge could possibly be constraint for proper financial

management and affect the business growth. The main purpose of this study is to examine the relationship

between financial knowledge, business ties towards micro enterprise performance in Malaysia. This study also

proposed the hypotheses as a guide and direction to achieve the objective. This paper provides a conceptual

model of the relationship between financial knowledge and micro enterprise performance and the moderating

role of business ties in relationship between financial knowledge and micro-enterprise performance in

Malaysia. A conceptual model of this study is relevant for any sectors to achieve and enhance their knowledge

about the financial in their business activity. Future studies will used the same model and can be conducted in

small-medium enterprise for generalisiblity.

Keywords: Financial knowledge, Micro-enteprise, Performance, Business ties


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Paper ID39

Storage, Transportation and Business Performance: The Case of Some

Small Fish Farmers in Kelantan

N.Z Nik Nurul Aniesha1 and Mohd Rosli Mohamad2

1 Faculty of Business and Entrepreneurship, University Malaysia Kelantan, Malaysia

ABSTRACT

The total cost and the efficiency of storage operations and transportation can be manage well by handling an

efficient storage system and transport management. The way how the inventories was handled of moving

product and stored are very important in business. However, there are insufficient studies regarding the

importance of storage management and transportation on aquaculture business performance in Kelantan. This

knowledge gap inspires this proposed study. The objective of the study is to uncover storage and transportation

activities among small farmers of tilapia fish in the East Coast of Peninsular Malaysia and its influences to

their business performance. In this preliminary study, the questionnaires was distributed to thirty Tilapia fish

farmers in the rural area of Bachok and Tumpat, Kelantan. The results show that the farmers practiced and

concerned about the storage and transportation positively associated with small firm’s business performance

in Kelantan.

Keywords: Storage, transportation, Business performance, Small fish farmers, Kelantan


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Paper ID45

The Influence of Trust, Service Quality, and Risk Perceptions on Customers

Participation in Electronic Banking Services

Sepdrian Nur Pratama1 and Tettet Fitrijani2

1,2Faculty of Economics and Business, Padjadjaran University, Indonesia

ABSTRACT

This research aims to determine the influence of trust, service quality and risk perception on customers’

participation in electronic banking services, either partially or simultaneously. The combination model

between technology acceptance model and theory of planned behavior are the theoretical basis that aims to

provide a more complete explanation of the behavioral interest in customers’ participation in electronic

banking services with factors influencing one's acceptance in adopting something of technology product.

Sampling method used is purposive sampling with criteria respondents as residents or domiciled in Jakarta or

Bandung who actively use electronic banking service facility either internet banking and/or mobile banking

in one of the banks that determined by researcher, that is BCA, Bank Mandiri, BNI and BRI. The number of

samples used is 125 respondents. Validity and reliability tests are used on research instruments. This study

uses three classical assumption test, namely normality test, multicollinearity test and heteroscedasticity test.

Data quantitative processing uses multiple linear regression analysis. Hypothesis testing uses test to

determination coefficient, partially test and simultaneously test with the help of SPSS 16.0 software. In this

study, trust, and service quality partially have a positive and significant influence on variable of electronic

banking services. Risk perception partially no negative and significant influence of electronic banking

services. Simultaneously, trust, service quality and risk perceptions have positif and significant influence of

electronic banking services. Based on research results, this study suggest that banks as a party which provides

electronic banking services should pay attention to trust, service quality, and risk perception in order to gain

customer participation in the service.

Keywords: Trust, Service quality; Risk perceptions, Participation, Electronic banking


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Paper ID46

Limited Funding: Challenges and Impact on Malaysian Non-Government

Organisations (NGOs)

Nurliana Zahira Zaharrudin1 and Azzarina Zakaria2

1,2Faculty of Business and Management, Universiti Teknologi MARA, Malaysia

ABSTRACT

Non-government organisation (NGO) is the third largest sector in the world primarily active in promoting

welfare activities to people in need. NGOs mainly depend on funding for their operations. Nevertheless, the

funding becomes limited due to economic volatility, and it will affect the financial viability of donors, since

the funding largely comes from the donors. Additionally, NGOs must compete with the limited funding due

to the large number of NGOs accordingly. Considering on these challenges, it will affect their operations and

the activities of the NGOs may be dissolved. On the other hand, society, government agencies and private

sectors are also distracted. The purpose of this paper is to discuss the challenges of Malaysian NGOs and the

effect of NGO to the society, government agencies and private sectors with its significance. However, due to

the limited funding, NGOs are unable to run the activities very well. Consequently, it will affect to the NGOs

operations, societies, government agencies and private sectors entirely. In this view therefore, the critical

success factors (CSFs) of funding has been suggested to sustain the existing funding and eventually NGOs

will continue their operations. Further, this paper in progress is useful for the top management and members

of the board of directors (BOD) involved in the Malaysian NGOs as practitioners.

Keywords: Limited Funding, Challenges, Impact, Malaysian Non-Government Organisation (NGO)


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Paper ID47

The Influence of Original Local Government Revenues Growth and Local

Capital Expenditures Growth towards Fiscal Stress: Evidence from West

Java Regencies/Municipalities

Iqbal Lhutfi1, Hamzah Ritchi2 and Ivan Yudianto3

1,2,3Faculty of Business and Economics, Padjadjaran University, Indonesia

ABSTRACT

This study aims to ascertain and analyze the influence of the original local government revenues growth and

local capital expenditures growth towards fiscal stress on the regency/municipality of West Java. This research

employs 27 samples regency/municipality of West Java in 5 (five) periods in 2013 - 2017. This research

applies the multiple regression method and also exercise the classical assumption test: normality,

multicollinearity, heteroscedasticity, and auto-correlation. As a contribution, since literature do not provide

the measurement that meets Indonesian characteristics of local government budget (APBD), the author

introduces a new approach that applies the fiscal capacity formula to measure the fiscal stress.The expecting

result of this study shows that growth of original local government revenues and local capital expenditures

significantly influence the fiscal stress on the regency/municipality of West Java. It is enhanced by the study

of Haryadi (2002), Jimenez (2007), Condrey (2010), and Arnett (2011)

Keywords: Original Local Government Revenues Growth, Local Capital Expenditures Growth, Fiscal Stress,

West Java, Regency, Municipality, 2013 – 2017


e-ISBN 978-967-17038-0-9

Paper ID52

Analysis of Risk Management Implementation in ABC Hospital

Ayu Anggita Triandini1 and M. Malik2

1&2Facultyof Economics and Business, Universitas Indonesia, Indonesia

ABSTRACT

Risk management in hospital industry plays important role considering it faces many risks, both in the medical

and non-medical fields. However, there are still few hospitals have implemented risk management in a proper

way. This paper intends to provide solution to the problem of how the implementation of a risk management

system at ABC Hospital is, with the objectives of the research are (1) get an understanding of effective and

integrated design of risk management; (2) get the results of those risk management design to be implemented

in ABC hospital thus can improve its service quality. In this research, authors used qualitative descriptive

approach, in which we analyze the risk management in ABC Hospital in several aspects, such as: organization

structure, COSO ERM, quality improvement and patient safety, occupational health and safety, financial,

performance measurement using balanced scorecard, and three lines of defense model; all using 2017 data.

Analysis result shows that ABC Hospital faces 12 key risks categorized by level of responsible person, start

from the head of the unit, the manager of quality improvement and patient safety division, and the director.

Other findings are human resources in ABC Hospital have low level of risk awareness as well as risk

management system implemented has not been fully integrated with each significant aspects are still being

separated. Recommendation for ABC Hospital focuses on building risk awareness for all human resources

and implementing integrated risk management system that covers all significant aspects.

Keywords: Risk management, medical risk, non-medical risk, quality improvement, hospital industry


e-ISBN 978-967-17038-0-9

Paper ID59

Depression, Anxiety, Stress Among Fulltime Workers: A Study Case at

Private Universities in Bandar Lampung, Indonesia

Cinthia Annisa Vinahapsari1 and Rosita2

1,2Faculty of Economics and Business, Universitas Teknokrat, Indonesia

ABSTRACT

The purpose of this study is to describe depressions, anxiety, and stress among fulltime workers who were

studying at private universities in Bandar Lampung. Era 4.0 is requires employees to improve their skills and

knowledge. Earning a degree is one way to get a path toward a more satisfying career. However, it presents a

dillema for those who need to maintain fulltime employment. A job is necessary to life, but school demands

the time usually spent at work. Balancing fulltime work and school is a problem. The reserach method used

mixed method explanatory design by collecting quantitative data first then collecting qualitative data to help

explain quantitative data. The sampling technique used probably sampling. Respondents were 100 people (61

women and 39 men). The measuring instrument used DASS 42. Preparation of measuring instruments using

a Likert scale. Data analysis used SPSS 18.0 package.The results of this study indicate that respondents had

medium (moderate) of depression (63%), very high of anxiety (73%), and medium (moderate) of stress (35%).

Overall, women have higher levels of depression, anxiety, and stress than men. Workload, worst boss

behavior, fear of replaced work positions, work fatigue, difficulty balancing time, make female workers

experience sleep disorders, loss of weight, depression, anxiety, and stress. Unlike male workers, unsupported

coworkers, new challenges, compensation, career development, make them depressed, anxiety, and stressed.

This research provides new insight about depression, anxiety, stress among fulltime workers. Time

management is necessary done to create balancing fulltime work and school. Moreover, management stress is

important to do it to manage stress among fulltime worker.

Keywords: Depression, Anxiety, Stress, Fulltime Worker


e-ISBN 978-967-17038-0-9

Paper ID61

The Influence Of The Internal Control System, Village Apparatus Competency, and

Participatory Budgeting to the Village Fund Management Accountability In Village

Governments In The West Java Province.

Srihadi Winarningsih, Ivan Yudianto, and Sofik Handoyo

Faculty of Economics and Business – Universitas Padjadjaran

ABSTRACT

The specific target to be achieved in this study is to obtain empirical evidence in the field

whether the internal control system implementation, village apparatus competencies, and

participatory budgeting have a positive and significant effect on the village fund management

accountability in the 92 Village Government in West Java Province. The output of this research

is expected to provide valuable input for the central/provincial/district government and village

government in the framework of public policymaking accountability for village fund

management.

Paradigm mixed method research will be used in this study, which is a method that combines

quantitative data and qualitative data for the interpretation of research results. Quantitative data

will be obtained through survey procedures by distributing questionnaires and qualitative data

obtained by interview procedures. Interpretation of quantitative research data will use the

exploratory factor analysis and confirmatory factor analysis.

The research result state that the internal control system implementation, village apparatus

competencies, and participatory budgeting each influence positively and significantly to village

fund management accountability. The implications of the results of this study, to improve the

accountability of village fund management require: (1) the participation of village people in

the planning and budgeting process, so that they can create programs and activities that are in

accordance with the needs of the village community, (2) the village apparatus competencies

through the commitment of village heads by arranging and implementing training programs

that are in line with the duties and functions of village apparatus, recruitment of good village

apparatus, and conducting comparative studies to add insight village apparatus, and (3) the

internal control system implementation through the active role of the district government

inspectorate and increase the commitment of village heads and village apparatus.

Keyword: internal control system, participatory budgeting, competence, accountability


e-ISBN 978-967-17038-0-9

Paper ID63

A Systematic Review on Entrepreneurship Education in Higher Learning

Institutions in Southeast Asia

Nor Hafiza Binti Othman1,2 and Norasmah Binti Othman1

1,2Faculty of Business and Entrepreneurship, Universiti Malaysia Kelantan, Malaysia 1Faculty of Education, Universiti Kebangsaan Malaysia, Malaysia

ABSTRACT

Many countries have invested in entrepreneurship education through programs and training especially in

Higher Learning Institutions (HLI’s). This paper aims to systematically review the impact of entrepreneurship

education (EE) in higher education by reviewing ten-years of publishing period in Southeast Asia countries.

This primary source of data for this study are research articles that were published from the year 2009 to 2018

in English written peer-reviewed journals on Web of Science and Scopus database. A total of 92 related articles

were identified and majority of the articles were from Malaysia, followed by Indonesia. A systematic review

approach was applied, guided by the PRISMA Statement, current study shows there is a trend of

entrepreneurship education research, especially in higher learning institutions. Besides that, this study shows

the outcome of entrepreneurship education in several themes. The outcome could be seen more visibly whether

it has a positive effect or otherwise, in developing the potential of students as entrepreneurs.

Keywords: Entrepreneurship Education; Higher Learning; Southeast Asia; Impact


e-ISBN 978-967-17038-0-9

Paper ID67

Can Coping Appraisals Predict International Tourists’ Perception?

Explaining the Behavioural Intention on Medical Tourism

Seow Ai Na1, Choong Chee Keong2, Chen I-Chi3 and Choong Yuen Onn4

1,2,3,4Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Malaysia

ABSTRACT

Globalisation and the marketing of medical services has resulted in the need for medical tourism. The purpose

of this research is to examine international tourists’ behavioural intention and its influent factors. The research

framework is based on protection motivation theory (PMT) extended with maladaptive coping and adaptive

coping. A sample of 501 data was collected from international tourists in Malaysia. Results shown a good

support for the application of extended PMT model with higher predictive power of a person’s protection

motivation on health coping but lower on health threats towards behavioural intentions. Individual concerns

(perceived vulnerability) played a more prominent role when predicting maladaptive coping of behavioural

intention, while adaptive coping (response efficacy) played a somehow more prominent role when predicting

behavioural intention. Hence, this proposed model suggesting PMT can be used to explain and predict

international tourists’ behavioural intention on medical tourism. Implications for research and practice are

provided.

Keywords: Medical Tourism, Protection Motivation Theory, Behavioural Intention, Maladaptive Coping,

Adaptive Coping, International Tourists


e-ISBN 978-967-17038-0-9

Paper ID68

Analysis of Administrative and Loan/Credit/Funding Indicators of Creative

Industries Start-Up in Indonesia

Nora Amelda Rizal1, Jurry Hatammimi2 and Salsabila Silfi Trianabayu3

1,2,3Faculty of Economics and Business, Telkom University, Indonesia

ABSTRACT

Since 2015, the government has fully supported the creative economy in Indonesia by estabilishing Badan

Ekonomi Kreatif (Bekraf) which aims to improve the growth of Indonesian economy. Creative economy is an

economic activity which is related to creativity and has cultural and social impact. Creative economy is also

defined as an activity that has a potential to generate income, employment and exports, where these potentials

can create the creative industry activities. Now days, Creative industry has an important role to support the

revolution of industry 4.0. Creative industry in Indonesia has several obstacles that can hinder the growth of

the creative industry. One of them is the limited funding, especially in the Application & Game Development

subsector. To overcome these constraints, it can be overcome by knowing the funding indicators as funding

parameter valuation that refers to previous study, so this study will analyze the administrative and

loan/credit/funding indicators as variables in this study, to find which indicator that can be used as parameters

for the creative industries start-up funding in Indonesia subsector of Application & Game Development. This

study is based on an explorative study, qualitative approach and semi-structure interview with the investors

who were be a speaker and pitching judge at the Go-Startup Indonesia event which was held by Bekraf in Bandung. This study also use triangulation method to reduce subjectivity and testing the validity and reliability

of the study findings. From the results of this study, it can be concluded that investors look more from the

owner/founder side, such as owner/founder’s profile and individual characteristic, while the loan repayment

rate is not too much noticed. So that administrative indicators are more dominant and can be used as a

parameter of valuation in start-up funding of creative industries in Indonesia.

Keywords: Funding creative industries start-up; Creative industry; Start-Up; Industry 4.0


e-ISBN 978-967-17038-0-9

Paper ID71

Analysis of the Curriculum of the Bachelor Degree Accounting Program of

Universitas Padjadjaran based on Kerangkakualifikasi Nasional Indonesia,

International Education Standard and Bloom’s Taxonomy

Dian Fitriyani1 and Prima Yusi Sari2

1,2Faculty of Economics and Business, UniversitasPadjadjaran, Indonesia

ABSTRACT

Globalization trend, the development of information technology, and business process had an impact on

accounting function and the role of the accountant in a business. These significantly changed the competency

requirements of professional accountant. In responds to those demands, the provider of accounting education

need to compile curriculum that in conform with the professional accountant competencies so that it can

produce graduates that can compete in the working world. The purpose of this research is to analyze the

curriculum design compiled by the Bachelor Degree Accounting Program of Universitas Padjadjaran based

on Kerangka Kualifikasi Nasional Indonesia (KKNI), International Education Standard (IES), and Bloom’s

Taxonomy – cognitive level. This research used qualitative method, while data are collected using

documentation and interviews. The result of this research showed that there are KKNI learning outcome

concerning information technology and IES learning outcome concerning economy that were unfulfilled in

the bachelor degree accounting program. This research also showed that only 51,52% courses from eight

cluster, where the exam questions were dominated by questions that the cognitive level matched the aim of

that course’s learning outcomes. Scoring system and learning method compiled in curriculum have been

consistent with the IES standard, and it is found that lecturing, discussions, and case studies are among the

most commonly used tools.

Keywords: Accounting Education, Curriculum, Kerangka Kualifikasi Nasional Indonesia (KKNI),

International Education Standard (IES), Bloom’s Taxonomy


e-ISBN 978-967-17038-0-9

Paper ID75

Graduates’ Soft Skills: A Systematic Review

Afifah Hanim Md Pazil1 and Razli Che Razak2

1,2Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia

ABSTRACT

At present, the situation of economic world is very challenging nowadays. As such employers are looking for

versatile graduates who will be able to drive the organizations so that they can compete successfully in the

market place. Graduates nowadays are expected by the employers to not only obtained good degrees and excel

in their academics, but also to equip themselves with soft skills. Globalization means increasing integration

of various sectors in today’s world. This leads to a demand for higher level graduates’ soft skills. By adopting

a systematic literature review approach, the current study attempts to present an exploration of soft skills

needed by graduates to be developed to get them ready for the work place. The review was guided by the

PRISMA Statement (Preferred Reporting Items for Systematic reviews and Meta-Analyses). A systematic

literature search was undertaken from two main journal databases – Scopus and Web of Science (WoS). All

papers reviewed from articles published from 2010 to 2019 and were written in English. The contribution of

the current study can be seen as the classification of the varied graduates’ soft skills. It can provide insightful

information to the stakeholders of the higher education institutions. To produce work-ready graduates, the

higher education institutions need to re-evaluate their teaching and learning approaches to develop the

necessary graduates’ soft skills as needed by the job market.

Keywords: Soft Skill, Graduates


e-ISBN 978-967-17038-0-9

Paper ID76

The Effect of Audit Opinion on the Incumbent’s Votes:

A Study in Indonesian Local Government

Fitra Dharma1

1Accounting Department, Faculty of Economics and Business, University of Lampung, Indonesia

ABSTRACT

It is still rare, research in Indonesia that examines the effect of good government governance (GGG) for the

political benefit of incumbents regional head. This article examines whether the audit opinion as a result of

the GGG associated with the incumbent votes in the local election The objectives of this study are: (a) to

examine the association between audit opinion of local goverment financial statment and incumbents' regional

head votes, (b) to examine the moderating effect of political competition in the association between audit

opinion with incumbents' regional head votes. The samples are the regencies and cities in Indonesia that

conducts local election followed by the incumbent regent or major. We tested hypotheses using moderated

regression analysis (MRA). We found that directly, audit opinion affects the incumbent votes in the local

election. The effect of audit opinion on incumbents' votes increases when interacting with a political

competition. In high political competition, the influence of audit opinion becomes stronger.

Keywords: Audit opinion, Incumbent votes, Political competition.


e-ISBN 978-967-17038-0-9

Paper ID81

Towards sustainability of competitive advantage: Strategies for Logistics

Service Providers in Malaysia

Norzaliha Jusoh1 and Zuraimi Abdul Aziz2

1,2Faculty of Entreprenuership and Business, Universiti Malaysia Kelantan, Malaysia

ABSTRACT

The repercussion of globalization and liberalization have led to numerous competitors entering the market

which caused to worldwide of Logistics Service Providers (LSPs) increased. This trend also created an

excessive pressure on logistics systems, which makes inevitable adjustments for local LSPs in Malaysia.

Currently, there are limited capability of LSPs since majority of local LSPs offer only basic services, such as

inbound and outbound transportation, warehouse storage and freight forwarding. The current study attempts

to explore sustainable competitive advantage and strategies for logistics service providers which contribute

the most to sustain in market. This paper used the method called PRISMA statement (Preferred Reporting

Items for Systematic reviews and Meta-Analyses). The resources are obtain from Scopus and Web of Science

database. The articles was collected from the years 2010 to 2019. This method used to run the systematic

review, eligibility and exclusion criteria, steps of the review process (identification, screening, eligibility) and

data abstraction and analysis. The contribution of study can be seen as to provide a way forward for local

LSPs to implement particular strategies that identified act as potential effective tools to sustain and remain

competitive in market. These suggestions are hoped to provide basis for concerned parties to employ

competitive advantage strategies that are coherent with local LSPs.

Keywords: Sustainable competitive advantage, Logistics service providers


e-ISBN 978-967-17038-0-9

Paper ID86

The Effect of Bonuses, Cost Of Debt, Tax Avoidance, Corporate Governance

on Financial Reporting Aggressiveness: Evidence from Indonesia

Arief Enggar Jananto1 and Amrie Firmansyah2

1,2Department of Accounting, Polytechnic of State Finance STAN, Indonesia

ABSTRACT

This study aims to examine the effect of bonuses, cost of debt, tax avoidance, and corporate governance on

financial reporting aggressiveness. This research is quantitative research with multiple linear regression

models. The sample employed in this research is all companies listed on the Indonesia Stock Exchange (IDX)

by excluding financial companies and companies from sectors that receive special treatment in taxation,

namely the property, construction, real estate, shipping, aviation and oil and gas sectors. The sample selection

from 2012 to 2017 using a purposive sampling method with the number of samples amounted to 260

observations. The model examination is conducted by panel data regression with fixed effect model. The

results suggest that the cost of debt and corporate governance is negatively associated with the aggressiveness

of financial reporting, while tax avoidance is positively associated with financial reporting aggressiveness.

Furthermore, the bonuses are not associated with financial reporting aggressiveness.

Keywords: Financial reporting aggressiveness, Bonuses, Cost of debt, Tax avoidance, Corporate governance


e-ISBN 978-967-17038-0-9

Paper ID87

Determinants of Transparency of Local Government Financial Management on the

Website: Evidence from Indonesia Local Government

Nuryani1 and Amrie Firmansyah2


ABSTRACT

This study aims to examine the determinants of transparency of Indonesia local governments financial

management on the website. Measurement of the level of transparency is carried out on the stages of planning,

implementation, reporting, and accountability of local government finance. This study employs internal

factors, namely the characteristics of local government and external factor, namely community condition. The

characteristics of the local government are represented by local government size, local government

expenditures, and local government dependency while community condition is represented by community

welfare. This research is quantitative research with multiple linear regression models. The samples are

district/city governments in Java from 2013 to 2016. The sample in this study should meet the criteria that the

district/city government has an official website, the website can be accessed, and the district/city government

has complete financial data from 2013 to 2016. The final samples amount to 424 observations. The results

suggest that the average level of transparency in financial management on the website of local governments

in Java Island from 2013 to 2016 is 24.76%. Furthermore, local government size and local government

expenditures are positively associated with the transparency of local government financial management.

Meanwhile, local government dependency and community welfare are not associated with the transparency

of local government financial management.

Keywords: Transparency, Size, Expenditures, Dependency, Community welfare


e-ISBN 978-967-17038-0-9

Paper ID88

The Effect of Financial Reporting Quality, Debt Maturity, Political

Connection and Corporate Governance on Investment Efficiency: Evidence

from Indonesia

Muhammad Panji Anugerah Al ‘Alam1 and Amrie Firmansyah2


ABSTRACT

This study aims to examine the effect of financial reporting quality, debt maturity, political connection and

corporate governance on firm’s investment efficiency. This research is quantitative research with multiple

linear regression models. The sample employed in this research is manufacturing and infrastructure companies

listed on the Indonesia Stock Exchange (IDX). The type of data used in this study is secondary data in the

form of financial statements and annual report from 2013 to 2016. The sample selection using purposive

sampling method with the number of samples amounted 86 samples of selected companies will be taken into

account in a four-year research period. Therefore, the total number of observations in the study are 344

observations.

The results suggest that financial reporting quality, debt maturity, and corporate governance are positively

associated with investment efficiency. However, the political connection is not associated with investment

efficiency. This study can be beneficial for the Financial Services Authority, creditors, and investors to

improve the efficiency of private sector investment in Indonesia.

Keywords: investment efficiency, financial reporting quality, debt maturity, political connection, corporate

governance, private firms


e-ISBN 978-967-17038-0-9

Paper ID92

How do you account Art Collections? Survey to World Top Galleries and

Comparative Case Studies of Art Galleries of Indonesia and Singapore

Ersa Tri Wahyuni1, Putri Dwi Novrina2, Leathano Aldwin3 and Prima Yusi Sari4

Faculty of Economics and Business, Universitas Padjadjaran, Indonesia

ABSTRACT

Many art galleries around the worlds are public sector institutions which serve as a museums of art collections.

Beside preserving the heritage assets, many art galleries also have mission for art education to the public.

Some of art galleries display art paintings and sculptures worth millions of dollars, yet the absence of

international accounting standard for art collections creates variations of the accounting for art collections

across the globe. The study surveys the financial reports top 100 galleries in the world and investigate the

difference of accounting policies applied by art galleries across countries. The study also conducted deep

interviews with management of national galleries in Indonesia and Singapore to compare the institutional

arrangements and the accounting policies of these two institutions. The result of the survey revealed that

galleries in the US mostly do not include their art collections in the balance sheet, while galleries in UK and

Australia include them in their balance sheets using both fair value method and cost method to account their

art collections. The regression analysis finds that the use of fair value, the number of art collections and the

growth of visitors have significant influence to the company's operating cost. The comparative case studies of

national galleries in Indonesia and Singapore show different institutional arrangements between these two

institutions where Singapore gallery are private independent institutions while Indonesian gallery is just a cost

center of Ministry of Educations and Culture. The institutional arrangement of Indonesian gallery has put

many constraints for the management to develop the gallery. Both institutions do not include their art

collections in their financial reports, however both institutions agree the importance of fair value

measurements of their art collections and conduct the assessment on a regular basis. This study has improved

our understanding on the institutional arrangement and the accounting practices of public service institutions,

especially on art galleries which are lacking of international accounting standard.

Keywords: Art Collections, Accounting, Art Galleries, Fair Value


e-ISBN 978-967-17038-0-9

Paper ID93

Does Auditor Gender influence Earnings Management Practices?: Evidence

from Indonesian Listed Companies

Ersa Tri Wahyuni1 and Veranyca Handoko2

Faculty of Economics and Business, Universitas Padjadjaran, Indonesia

ABSTRACT

The paper examines the association between auditor gender and earnings management of listed companies.

Using the data from Indonesian listed companies 2014-2016 (414 firm year obervations), this study uses

discretionary accruals (DACC) estimated by using the cross-sectional version of the modified jones model.

The study finds that less than 15% listed companies are audited by female auditor and auditor gender does not

have significant effect towards earning management practices in Indonesia. Other control variables in the

study; profitability, firm size, operating cash flow, sales growth and audit firm size, are also do not have

significant influence except for profitability. This study challenges the current literature which find that female

auditor reduces earning management practices.

Keywords: Auditor, Gender, Earnings management


e-ISBN 978-967-17038-0-9

Paper ID97

Accountability from Islamic perspective: The case of Pertubuhan IKRAM

Malaysia

Salsabila Abd. Rahim1, Nawal Kasim2, Siti Aqilah Talib3 and Roshayani Arshad4

1,3Department of Accounting, International Islamic University Malaysia, Malaysia

2,3Accounting Research Institute, Universiti Teknologi MARA, Malaysia

ABSTRACT

Non-governmental Organisations (NGOs) across the globe are going through serious debate among the public,

practitioners and academicians on the presence of NGOs. This thus leads to the need to gauge the

accountability and impact of NGOs – Do the activities conducted by NGOs positively impact the communities

that they served? Funders starting to question the accountability of NGOs as there are very limited reporting

provided by NGOs. In Malaysia, there are a huge number of NGOs registered under the Registry of Societies

(ROS). Among the NGOs are faith-based NGOs. This paper attempts to examine the reporting mechanism

used by Pertubuhan IKRAM Malaysia in ensuring it to be accountable by portraying that their activities had

impact on the communities. Through interview and content analysis of its annual report, it was found that

IKRAM has done beyond the regulators’ requirement by including a section for social impact report to portray

its accountability from the Islamic perspective. This section of reporting benefits stakeholders, who are users

of financial information, especially donors and funders, to understand the flow of funds and the contributions

of IKRAM to the society.

Keywords: Islamic Accounting, Islamic NGOs, Accountability, Social impact, Reporting


e-ISBN 978-967-17038-0-9

Paper ID99

Influence of Transformational Leadership Style, Internal Control System, and Internal

Government Auditor (APIP) Capability Level on Fraud Prevention

Klara Indra Pratiwi1, Dini Rosdini2 and Fury Khristianty Fitriyah3

Faculty of Economics and Business, Universitas Padjajaran, Indonesia

ABSTRACT

This study examined the effect of transformational leadership, internal control system, and internal

government auditor (APIP) capability level to fraud prevention in local government at West Java, either

partially or simultaneously. The population in this research are 28 local government in West Java, namely

West Java Provincial Government, 18 District Government and 9 City Government. For variables of

Transformational Leadership Style (X1) and Fraud Prevention (Y) using primary data through questionnaires.

The questionnaire for the Transformational Leadership Style variable is the head of the Office and for Fraud

Prevention is the financial department. For Internal Control System (X2) and APIP Capability Level (X3)

variable use secondary data. Data analysis using descriptive analysis and hypothesis testing using multiple

regression analysis using the SPSS program. The results showed that the transformational leadership style

positively influence the prevention of fraud, where the better the transformational leadership style the better

the prevention of fraud being applied. While the internal control system does not affect the prevention of fraud.

This is because the level maturity of SPIP is relatively low so this device cannot be used to detect fraud

prevention adequately. And for APIP capability level partially have a positive effect on fraud prevention,

where the higher the level of APIP capability, the better the prevention of fraud being applied.

Keywords: Transformational leadership style, Internal control system, Internal government auditor (APIP)

Capability level, Fraud prevention.


e-ISBN 978-967-17038-0-9

Paper ID100

Perceptions of Zakat Recipients on Zakat Disclosure

Khin Ohnmar Tun1, Sherliza Puat Nelson2, and Ahmad Zamri Osman3

1,2,3Department of Accounting, International Islamic University Malaysia, Malaysia

ABSTRACT

Studies about disclosure of Islamic financial institutions is still at its infancy. There are some zakat disclosure

studies in the perception of zakat recipients but there is very limited study related to students as the zakat

recipients. The objective of the study is to explore the perception of zakat recipients on the disclosure of zakat

institutions in Malaysia. Downward Accountability concept was applied as theoretical framework of this

research. A total of 2109 questionnaires were sent to the Zakat Department of a public institution of higher

learning in Malaysia. 1018 questionnaire were received and only 544 questionnaires were usable. The results

of the study show that the zakat recipient students perceived disclosure of financial information more

important than non-financial information.

Keywords: Zakat, Zakat institutions, Zakat disclosure, zZkat recipients, Malaysia


e-ISBN 978-967-17038-0-9

Paper ID104

IFRS Convergence: Does it really increase Value Relevance? A Study in

Indonesia

Filosofi Putri Aulia1 and Irham Lihan2

1Faculty of Economics and Business, Universitas Padjadjaran, Indonesia

2Faculty of Economics and Business, Universitas Lampung, Indonesia

ABSTRACT

Responding to the issue of value relevance decrement, the Indonesian Institute of Accountants (IAI) issued a

decision to convergence PSAK (Indonesia’s Statement of Financial Accounting Standards) with IFRS

(International Financial Reporting Standards) gradually starting January 1st, 2012. IFRS claimed to be

beneficial for improving the quality of financial statement information because the use of fair value can better

reflect the company's economic conditions. This study aims to explore the quality of accounting information

after the convergence of IFRS in Indonesia by knowing, analyzing, and comparing the value relevance of

companies' financial statements listed on the Indonesia Stock Exchange in stage I (2012 - 2013), stage II (2014

- 2015), and stage III (2016 - 2017). The higher stages are indicated by the increasing number of PSAK

(revised and new) based on IAS/IFRS and the smaller gap between applicable PSAK and IFRS. High value

relevance is indicated by the existence of a strong relationship between stock prices and earnings also the book

value of equity, because both accounting information reflects the economic conditions of the company. The

book value of equity represents the statement of financial position and the earnings value represents the income

statement. The results of the study prove that the level of relevance of earnings value increases gradually at

each stage of the application of IFRS convergence. While the book value of equity is not sufficiently relevant

in describing and predicting company values. IFRS convergence in Indonesia concluded to be able to have an

impact to increase the value relevance of the company's income statement which also contributes to improving

the quality of accounting information.

Keywords: IFRS convergence, Value relevance, Quality, Accounting information


e-ISBN 978-967-17038-0-9

Paper ID106

The Impact of Leverage, Liquidity and Firm’s Profitability: Accountability

of Malaysian Listed Oil and Gas Firms

Sazalina Ahmad Puat1, Nor Farizal Mohammed2 and Mira Susanti Amirrudin3

1Uzma Berhad, Malaysia

2Accounting Research Institute, Universiti Teknologi MARA, Malaysia 3Faculty of Accountancy, Universiti Teknologi MARA, Malaysia

ABSTRACT

Oil and Gas (O & G) industry is one of the industries that is known to be capital intensive. O & G companies

are known to frequently file for bankruptcy and incur unexpected losses due to rising financial risk. This trend

also applies to some O & G companies in Malaysia. Hence, this study examines the impact of leverage and

liquidity on the profitability among firms in the oil and gas industry in Malaysia that are listed in Bursa

Malaysia. In order to meet the objectives of this study, a quantitative data methodology was employed. The

data were obtained from the audited financial statements of 20 firms in oil and gas industry for the period of

ten years (2008 – 2017). The findings revealed that liquidity in terms of current ratio has a positive and

significant impact on firm’s profitability. While, the acid test ratio and cash ratio have positive and negative

relationship but insignificant association on firm’s profitability. The results further revealed that debt to equity

ratio has negative and significant association on firm’s profitability. However, debt to asset ratio and

proprietary ratio has positive relationship but insignificant association on firm’s profitability. The study

recommends that the firms to improve their profitability by increasing the level of liquidity and maintaining

their optimal leverage structure level.

Keywords: Leverage, Liquidity, Profitability, Oil and Gas, Debt to Equity ratio, Debt to Asset ratio,

Proprietary ratio, Current ratio, Acid Test ratio, Cash ratio


e-ISBN 978-967-17038-0-9

Paper ID107

The Impact of Tax Avoidance on Firms’ Value: Evidence from Indonesia

Turwanto1 and Ferry Irawan2

1School of Accounting, Polytechnic of State Finance STAN, Indonesia 2School of Tax, Polytechnic of State Finance STAN, Indonesia

ABSTRACT

The main objective of a firm is to optimize its shareholders’ welfare and value. Tax avoidance behavior may

influence the firm’s value. Study regarding the relationship between tax avoidance, tax risk and firm’s value

is quite limited especially in Indonesia. Indonesia tax authority experienced tax avoidance cases. The dispute

between tax payers and tax office is not only occurred during the audit, but also showed in tax court. This

Study tried to investigate the relationship among those three variables. Next, the study use all listed companies

in Indonesia Stock Exchange (IDX) except several sectors: finance, property & real estate, and construction.

The data is taken from IDX for five years (2013 – 2017). Furthermore, the firm’s value is measured using

Tobin’s Q and price to book value (PBV). We use long-run cash ETR and long-run GAAP ETR to measure

tax avoidance. Lastly, to measure the tax risk, we used deviation of a-five years cash ETR and a-five years

GAAP ETR. Using panel data analysis, and several control variables (return on assets, ROA volatility, firm

size, capital expenditure, leverage, growth, and cash flow) we identified several findings. Tax avoidance

significantly influence the firms’ value. Also the tax risk influence the firms’ value.

Keywords: Tax avoidance, Firm value, tax risk, Indonesia


e-ISBN 978-967-17038-0-9

Paper ID109

University Students’ Intention to become Accountants: Examination using

Fishbein and Ajzen’s Theory

Erlane K Ghani1, Nur Faezzah Mohamad2, Mazurina Mohd Ali3 and Kamaruzzaman Muhammad4

1,2,3,4Faculty of Accountancy, Universiti Teknologi MARA, Malaysia

ABSTRACT

This study aims to examine the factors influencing accounting students to become accountants. Specifically,

this study examines the influence of three factors namely, personal attributes, persons prompted career path

and career exposure on students’ intention to become accountants. Using questionnaire survey on 330 first

and final year accounting students of a public university in Malaysia, the result shows that personal attributes

and career exposure significantly influence the students’ intention to become accountants. However, the result

of this study shows that persons prompted career path is not a significant factor to influencing their intention

to become accountants. The findings in this study implicate that students’ interest in accounting plays a

significant role in their preference to be in the accounting profession. Therefore, educators in the universities

need to play an important role in nurturing the students’ interest to become accountants. This can be done by

implementing creative teaching and learning environment to gain students’ interest and ensuring that the

accounting knowledge can be delivered effectively.

Keywords: Personal attributes, Persons Prompted career path, Career exposure, Students’ intention,

Accounting profession


e-ISBN 978-967-17038-0-9

Paper ID112

Factors affecting the Integrity of Manufacturing Company Financial

Statements in Indonesian Stock Exchange and Malaysian Stock Exchange

Syarifah Nurul Fauziah1 and Rosinta Ria Panggabean2

1,2Accounting Department, Faculty of Economics and Communication, Bina Nusantara University,

Indonesia

ABSTRACT

This study aims to examine the effect of managerial ownership, auditors switching and intellectual capital on

the integrity of financial statements with leverage and firm size as control variables. The study employed

literature and observation study of the research object to obtain the research data. The research objects are

manufacturing companies listed on IDX and MYX within the period of 2014-2017. Research data were

analyzed using Eviews software with multiple linear regression analysis method. The results showed that in

the Indonesian manufacturing companies, managerial ownership, auditors switching and intellectual capital

have a positive effect on the integrity of financial statements. Meanwhile, in the Malaysian manufacturing

companies, from the three dependent variables used in the study, only managerial ownership has an effect on

the integrity of financial statements. With regard to the control variables used, leverage and firm size are

equally positive for the integrity of financial statements of companies just in Indonesia. This research is

different from the previous study in that the objects of this study are manufacturing companies listed on the

Indonesia Stock Exchange (IDX) and Bursa Malaysia (MYX) within the period of 2014-2017, which is a

longer period of time. Further, the researchers add independent variables to managerial ownership, auditor

switching, and intellectual capital.

Keywords: Integrity of financial statements, Managerial ownership, Auditor switching, Intellectual capital,

Leverage, Firm size.


e-ISBN 978-967-17038-0-9

Paper ID114

Hybrid Mismatch Arrangement: Does it Endanger Tax Base?

Dina Faqih Hastuti1, Ferry Irawan2 and Hanik Muamarah3

1,2,3Polytechnic of State Finance STAN, Indonesia

ABSTRACT

Base erosion and profit shifting (BEPS) action plans issued by OECD and supported by G-20 have been

partially adopted by Indonesia Tax Authority (ITA). So far, Indonesia has established regulation which

addressed the Action Plans. There are various ways to avoid the tax. One of the common practice is hybrid

mismatch arrangement. A group of companies can obtain benefits from this transaction by making use of tax

regulation in different countries. The objective of this study is to elaborate how hybrid mismatch arrangement

applied and why the tax authority concern about it. This study use case-study method. We analyze a state-

owned enterprises case that applied hybrid mismatch arra

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[DOCUMENT TITLE] · 2019. 8. 16. · [DOCUMENT TITLE] [Document subtitle] 2nd International Conference on Accounting and Business Management (ICAbM) 2019 e-ISBN 978-967-17038-0-9