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1 – 10 of over 2000Bayu Giri Prakosa, Danur Condro Guritno, Theresia Anindita, Mahrus Kurniawan and Ahmad Cahyo Nugroho
This study aims to analyze how ready a firm is to transform into Industry 4.0 using the Readiness Index (INDI 4.0) assessment. It also investigates the differences (before and…
Abstract
Purpose
This study aims to analyze how ready a firm is to transform into Industry 4.0 using the Readiness Index (INDI 4.0) assessment. It also investigates the differences (before and after) of the program “Making Indonesia 4.0” in 2018 in socioeconomic and demographic aspects.
Design/methodology/approach
The INDI 4.0 assessment involved a self-evaluation by 622 companies across 13 industry sectors, subsequently verified by the Ministry of Industry. This study incorporates discussions with industry experts to enhance the interpretation of the analytical findings.
Findings
This study explores the interrelation among the components of INDI 4.0 across different levels, assessing the readiness of each sector for Industry 4.0. The findings reveal the diverse impact of implementing Industry 4.0 in Indonesia on socioeconomic and demographic aspects. Furthermore, the study proposes several policy recommendations for the Indonesian government’s consideration.
Research limitations/implications
This study’s scope is confined to the industrial context of Indonesia, as the assessment components are tailored to the specific characteristics and culture of the country’s industry. Subsequent research endeavors can leverage this study as a foundational reference, adapting the components to align with the particular interests of other nations.
Practical implications
Businesses, especially those in Indonesia, can employ these findings to evaluate their position in the context of Industry 4.0 transformation compared to their industry. Simultaneously, the Indonesian government can use these results as a starting point to evaluate and potentially enhance their policies related to Industry 4.0. We recommend five policy proposals for the Indonesian government: diversifying measurement models, shifting terminology, emphasizing soft skills, promoting continuous learning and implementing Center of Digital Industry Indonesia 4.0 (PIDI 4.0) initiatives.
Social implications
This study offers a broad impact of Industry 4.0 implementation in socioeconomic and demographic aspects in Indonesia, such as income, job-shifting, age, educational background and gender.
Originality/value
To the best of our knowledge, no prior research has explored the repercussions of industrial implementation on socioeconomic and demographic facets.
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Pipin Kurnia and Ardianto
This study aims to determine the effect of board gender diversity on cyber security disclosure (CSD) in the banking sector of Indonesia as a developing country that adheres to a…
Abstract
Purpose
This study aims to determine the effect of board gender diversity on cyber security disclosure (CSD) in the banking sector of Indonesia as a developing country that adheres to a two-tier system.
Design/methodology/approach
This study uses a panel data of 47 banks listed on the Indonesia Stock Exchange from 2014 to 2021. The board gender diversity is measured by three proxies, the proportion of women on the board, BLAU Index value and the critical mass of women. The authors used generalized method of moments estimation to eliminate the simultaneous equation bias.
Findings
The results show that the women board of commissioners increases CSD, and the women of board of directors/top management team were significantly negative for CSD.
Research limitations/implications
First, this research was only conducted in the banking sector. The results cannot be generalized to non-financial companies. Second, there is no measurement of the quality of the board from the level of education, experience, expertise and other characteristics of diversity such as age, nationality and religion.
Practical implications
The study has revealed the need for the government’s role in providing oversight of the presence of women on the board so that banks fully comply with Indonesia Financial Services Authority regulations. Banks should also actively launch policies regarding the presence of women on the board to give a positive effect to stakeholders that women play an important role in decision making. Banks must also adjust the composition of female commissioners with a threshold of two people to maximize their function as supervisors.
Originality/value
This is the first research conducted on the banking sector in Indonesia as a developing country that adheres to a two-tier system. The results of this study provide evidence that patriarchal culture is still dominant in Indonesia.
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Wahyu Jatmiko, Banu Muhammad Haidlir, A. Azizon, Bambang Shergi Laksmono and Rahmatina Kasri
The proponents of cash waqf speak highly about its huge potential for mobilizing the third sector of the economy to fund the socio-economic development agenda. However, the…
Abstract
Purpose
The proponents of cash waqf speak highly about its huge potential for mobilizing the third sector of the economy to fund the socio-economic development agenda. However, the under-collection issue has been characterizing the cash waqf movement globally. This study aims to examine how understanding the distinct cash waqf donating behavior across different generations has the potential to address the problem.
Design/methodology/approach
This study extends the theory of planned behavior by adding religiosity and knowledge variables into the standard model, using the partial least square structural equation modeling. A survey is conducted on 684 respondents representing the main provinces in Indonesia and four major generations (Baby Boomers [BB], Generations X, Y and Z).
Findings
Religiosity, Knowledge, Attitude, Subjective Norms and Perceived Behavioral Control directly or indirectly affect cash waqf intention. The effect is contingent on the characteristics of generations.
Research limitations/implications
This study covers only the Indonesian case with limited coverage of the more heterogeneous provinces in the country. The sample distribution for BB can also be enlarged.
Practical implications
Cash waqf institutions (government and private) should apply the dynamic segmenting strategy, where the diversification of the promotion, marketing, awareness and approaches are contingent on the different characteristics of each generation.
Originality/value
To the best of the authors’ knowledge, this is the first study evaluating the intergenerational determinants of Intention toward cash waqf, particularly in Indonesia.
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Effiezal Aswadi Abdul Wahab, Damara Ardelia Kusuma Wardani, Iman Harymawan and Mohammad Nasih
This paper aims to investigate the relationship between military connections and tax avoidance in Indonesia. Further, the paper examines whether the relationship between military…
Abstract
Purpose
This paper aims to investigate the relationship between military connections and tax avoidance in Indonesia. Further, the paper examines whether the relationship between military connections and tax avoidance is impacted by three corporate governance variables: auditor size or Big 4, board size and audit committee independence. Indonesia's settings allow for a unique investigation, as military involvement has been documented.
Design/methodology/approach
This paper uses Indonesia as the research setting because its military forces have a long history of business involvement. The sample includes 1,986 firm-year observations on the Indonesia Stock Exchange from 2010 to 2018. The period signifies the time of significant change post-Suharto to illustrate changes in military reform.
Findings
Military-connected firms recorded a negative relationship with effective tax rates, indicating higher tax avoidance. The authors extend this test by considering three corporate governance variables: Big 4, board size and audit committee independence. They find the corporate governance variables are ineffective in mitigating the positive impact of military-connected firms and corporate tax avoidance. The results remain consistent when performing endogeneity tests.
Originality/value
This paper adds to the extant literature by examining the impact of military connections on tax avoidance. The findings reflect Indonesia's institutional settings depicting military and political connections.
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Vanessa Gaffar, Wenda Wahyu Christiyanto, Rivaldi Arissaputra, Abror Abror, Nurman Achmad, Esa Fajar Fajar Hidayat, Qoriah A Siregar and Aslinda Shahril
This paper aims to explore the influence of digital halal literacy and halal destination attributes on revisiting intention through satisfaction and trust as mediating variables.
Abstract
Purpose
This paper aims to explore the influence of digital halal literacy and halal destination attributes on revisiting intention through satisfaction and trust as mediating variables.
Design/methodology/approach
The study collected data from 308 domestic tourists in Indonesia who visited urban tourist destinations using a Likert-scale questionnaire, conducted between June and July 2023, and analysed using PLS-SEM for comprehensive data collection.
Findings
Digital halal literacy and halal destination attributes significantly impact tourist satisfaction and trust, potentially leading to the desire to revisit previously visited destinations. The higher the digital halal literacy and halal destination attributes, the higher the satisfaction and trust of tourists towards these destinations, potentially resulting in their intention to revisit.
Research limitations/implications
This study focused on the Greater Bandung area in western Indonesia, a popular tourist destination. Future studies should explore the eastern region and its surroundings, as they do not differentiate between nature-based and man-made tourism.
Practical implications
The absence of information on halal tourism destinations hinders travellers' understanding and decision-making, particularly considering the preference for symbols as a means of communication, a crucial factor that destination managers must consider.
Social implications
Visual elements, such as symbols and signage, significantly influence tourist behaviour and experiences, leading to the decision to revisit the destination.
Originality/value
The integration of digital halal literacy and halal destination attributes offers a comprehensive understanding of halal tourism, particularly in terms of revisit intentions.
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Suham Cahyono, Ardianto Ardianto and Mohammad Nasih
This study aims to investigate the association between chief executive officer (CEO) educational backgrounds in science, technology, engineering and mathematics (STEM) and climate…
Abstract
Purpose
This study aims to investigate the association between chief executive officer (CEO) educational backgrounds in science, technology, engineering and mathematics (STEM) and climate change disclosure within Indonesian companies.
Design/methodology/approach
Using data spanning from 2017 to 2022 from all publicly traded companies, the study uses ordinary least squares with fixed effects and robust standard error to evaluate the proposed hypothesis. In addition, a series of endogeneity tests are incorporated to bolster the robustness of the findings.
Findings
The study reveals that CEOs with a STEM educational background are more inclined to participate in corporate climate change disclosure compared to their counterparts with a non-STEM background. These results emphasize the significant role CEO educational backgrounds play in shaping a company’s approach to sustainability, specifically in the realm of climate change disclosure. The insights gleaned from this research hold valuable implications for various stakeholders, including top management and investors aiming to enhance corporate sustainability. Recognizing the influence of CEO characteristics, particularly a STEM educational background, proves pivotal in improving corporate climate change disclosure. Stakeholders can leverage this understanding to formulate and implement effective strategies toward realizing a company’s sustainability vision.
Originality/value
Notably, this study stands out as it was conducted within the context of Indonesia, a nation actively encouraging nonsocial graduates to assume crucial positions within the Republic of Indonesia.
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Effiezal Aswadi Abdul Wahab, Iman Harymawan, Damara Ardelia Kusuma Wardani and Mohammad Nasih
This study examines the relationship between the characteristics of militarily experienced directors and financial statement footnote readability. The second research question…
Abstract
Purpose
This study examines the relationship between the characteristics of militarily experienced directors and financial statement footnote readability. The second research question considers whether CEO busyness impacts the relationship between military-experienced directors and financial statement footnotes readability.
Design/methodology/approach
We use nonfinancial listed firms on the Indonesian Stock Exchange from 2010 to 2018, which amounted to 1,002 firm-year observations. We test the hypotheses and use fixed effects and Heckman's two-stage regression.
Findings
This study documents a negative relationship between military directors and financial statement footnote readability. We extend this relationship by factoring board busyness into the equation. We find that the presence of military-connected and busy CEOs negatively impacts the readability of financial statement footnotes. The results remain robust after additional analyses.
Research limitations/implications
Future research should consider a more robust measure of military-experienced directors. A broader context of directors' busyness should be considered, such as including multiple directorships.
Originality/value
We revisit the literature on military-experienced directors by considering political connections as one of the proxies for military connections in Indonesia. The findings largely support the convergence of the political connections literature in which rent-seeking activities are prevalent and prevent sound financial reporting.
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This study aims to enhance the understanding of the impact of the COVID-19 pandemic on corporate tax performance in the context of a large emerging country like Indonesia.
Abstract
Purpose
This study aims to enhance the understanding of the impact of the COVID-19 pandemic on corporate tax performance in the context of a large emerging country like Indonesia.
Design/methodology/approach
This study uses a quantitative approach with multiple regression methods on a data set of 2,366 firm-year observations registered on the Indonesia Stock Exchange (IDX) from 2017 to 2022.
Findings
The primary empirical findings from the multivariate regressions suggest a positive and significant association between the COVID-19 pandemic and corporate tax performance in Indonesia. In other words, these listed firms have increased their tax avoidance activities during the pandemic. As firms face financial hardships due to the pandemic's effects, they tend to engage in tax avoidance practices to reduce current income tax payments, thereby enhancing their liquidity. In addition, over time, firms have adapted to use various tax policies introduced by the government in response to the pandemic to mitigate the adverse impacts of the crisis.
Research limitations/implications
This study draws on a sample solely from one emerging country.
Practical implications
The results of this study can aid governments, policymakers, tax authorities and companies in evaluating their strategies concerning preparedness and emergency responses during crises, particularly those caused by pandemics.
Originality/value
To the best of the author’s knowledge, this study is considered one of the initial efforts to examine the impact of the COVID-19 pandemic on corporate tax avoidance in an emerging country like Indonesia.
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Rahayu Putri Agustina and Zuni Barokah
This study aims to investigate whether the presence of women in the boardroom influences companies’ environmental, social and governance (ESG) performance. Furthermore, it…
Abstract
Purpose
This study aims to investigate whether the presence of women in the boardroom influences companies’ environmental, social and governance (ESG) performance. Furthermore, it examines whether the COVID-19 pandemic and family control affect the relationship.
Design/methodology/approach
This study uses nonfinancial firms listed on the Indonesia and Malaysia Stock Exchange during 2018-2021. Thomson Reuters’ database is used to collect the ESG scores. Using 312 firm-year observations, the authors apply multiple regressions and sensitivity testing to ensure the robustness of the results.
Findings
This study provides empirical evidence that the presence of women in the boardroom improves companies’ ESG and family control weakens the relationship. Meanwhile, there is no support on the moderating effect of the COVID-19 pandemic. The authors also conducted additional tests using ESG pillars (i.e. environment, social and governance pillars) as the dependent variable. The findings are robust to alternative samplings.
Research limitations/implications
This research is limited to Indonesia and Malaysia, thus affecting the generalizability of the results to all developing countries. The sample size is relatively small due to data limitations related to the availability of ESG scores.
Practical implications
The findings of this study provide a basis for the government to establish mandatory regulations regarding sustainability performance. The positive relationship between women on boards and better ESG performance suggests that encouraging gender diversity in corporate leadership can improve sustainability practices. The government may consider implementing gender quota regulations to increase women's representation on corporate boards.
Social implications
Shareholders can pursue investment portfolios in socially responsible companies, prioritizing ESG performance. In addition, investors should consider the presence of women in the company’s boardroom and whether family control exists when making investment decisions.
Originality/value
Overall, the originality and significance of this research lie in its comprehensive examination of the moderating factors, the inclusion of different governance systems in the sample, and the exploration of psychological aspects, contributing to a deeper and more nuanced understanding of the relationship between women on boards and ESG performance in the context of developing countries.
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Muhammad Edo Suryawan Siregar, Suherman Suherman, Titis Fatarina Mahfirah, Berto Usman, Gentiga Muhammad Zairin and Herni Kurniawati
This study aims to investigate how the presence of female executives on the board affects a company’s capital structure decisions. The critical mass of female executives on the…
Abstract
Purpose
This study aims to investigate how the presence of female executives on the board affects a company’s capital structure decisions. The critical mass of female executives on the board was also considered to observe their impact on capital structure.
Design/methodology/approach
Samples were taken from nonfinancial sector companies listed on the Indonesia Stock Exchange between 2012 and 2021 (3,707 firm-year observations). Capital structure was measured using four approaches, namely, debt-to-total asset ratio (DAR), debt-to-equity ratio (DER), short-term debt-to-total assets (STD) and long-term debt-to-total assets (LTD). The data were analyzed using panel data regression analysis, including a fixed effects model with clustered standard errors.
Findings
The presence of female executives on the board is significantly negatively related to capital structure as measured by DER and STD. The critical mass of women provided no evidence of a relationship with a firm’s capital structure. Robustness checks were performed, and the results were consistent with those in the main analysis.
Research limitations/implications
Female executives can be appointed to management boards when determining a strategy to achieve the capital structure desired by a company.
Originality/value
This study increases the diversity of research in corporate governance by synthesizing various indicators from female executives into a single study to determine their relationships with companies’ capital structures. In addition, this study stands out by incorporating four distinct indicators for assessing capital structure and diverging from the norm observed in many other studies, many of which rely on just two indicators: DAR and DER. Moreover, it strongly emphasizes the unique economic, legal, social and cultural landscapes of developing countries like Indonesia in comparison to their developed counterparts, particularly Western nations.
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