This study aims to examine the control of corporate governance towards firm risks for a sample of Indonesian firms in agriculture, mining and property industries. This…
This study aims to examine the control of corporate governance towards firm risks for a sample of Indonesian firms in agriculture, mining and property industries. This study highlights the impact of four indicators of internal mechanism of corporate governance, i.e. board size, board independence, board gender and board ownership, on three measurements of firm risks, i.e. total risk, asset return risk and idiosyncratic risk.
Panel data analysis is conducted using a sample of 62 companies of agriculture, mining and property industries listed in Indonesia Stock Exchange from 2013 to 2017. Pooled ordinary least square with hetero-corrected is the statistical approach conducted to test the hypotheses.
The result indicates that board size and board gender insignificantly influence firm risks. While board independence gives varied impacts towards firm risks, it gives positive influence towards total asset return risk, insignificant towards idiosyncratic risk and negative towards total risk. Other interesting results are found in board ownership that has insignificant influence on asset return risk and negative influence on idiosyncratic and total risk.
Firms should incorporate corporate governance, especially the impactful roles of board independence and board ownership as they serve as tools in reducing firm risk. Moreover, investors may have a better understanding of corporate governance and factors that are influencing firm risks. Therefore, this study can assist them to make the right investment decision.
This study is notably the first to use comprehensively three measurements of firm risks in Indonesia. Risks can come from internal and external, thus the company should understand the various types of risks facing the company. Total risk measures both the internal and external risks, while asset return risk gives another perspective using overall market perception about the equity and assets of the company. Finally, this study also measures internal risk, which is the only risk that can be controlled and minimised by the board of the company.
This research examines the influence of the learning environment and students' attitudes towards choosing an accounting career mediated by intention to enhance the current…
This research examines the influence of the learning environment and students' attitudes towards choosing an accounting career mediated by intention to enhance the current knowledge.
The online survey is adopted to test the research model of this research. There are 503 useable responses collected with the effective response rate of 72 per cent. Data analysis and hypothesis testing use Partial Least Square as part of the Structural Equation Modelling technique.
The results of this research indicate that accounting students possess positive attitude both towards the intention to enhance the current knowledge and choosing their accounting career. The learning environment includes educators and friends who give significant influence on students' intention. Besides, current knowledge enhancement is also discovered to be able to mediate the link between attitude, learning environment and intention to choose accounting career.
Different generations may generate either different perception or different orientation in choosing accounting career. Therefore, future research can consider wider coverage and more updated object.
Findings of this research suggest that periodic improvement and renewal are necessary to administer to create an optimum learning environment, in term of teachers' capacity, teaching materials and supporting social environment.
This research contributes to any research related to attitudes towards choosing an accounting career. This study is the leading study that combines students' attitudes, learning environment, current knowledge enhancement, and career choice in one single model.