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Article
Publication date: 27 August 2019

Saarce Elsye Hatane, Stellania Supangat, Josua Tarigan and Ferry Jie

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Originality/value

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.

Details

Corporate Governance: The International Journal of Business in Society, vol. 19 no. 6
Type: Research Article
ISSN: 1472-0701

Keywords

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Article
Publication date: 14 September 2021

Saarce Elsye Hatane, Bernard Emerson, Olievia Soesanto, Ruth Arum Gunawan and Hatane Semuel

The purpose of this study is to discover the impact of work–life balance on the intention to pursue accounting careers through accounting career image.

Abstract

Purpose

The purpose of this study is to discover the impact of work–life balance on the intention to pursue accounting careers through accounting career image.

Design/methodology/approach

The study managed to collect 693 closed questionnaires, using the five-point Likert Scale, from accounting students in several universities in Java, Sulawesi and Kalimantan, as the three most densely populated islands in Indonesia. The research model is analysed using partial least square method as a part of structural equation modelling.

Findings

There are positive and significant influences between work–life balance and the intention to pursue accounting career when supported by accounting career image. The positive perception of accounting career image motivates accounting students to pursue accounting careers. Accounting students argue that attaining a balance between work and personal life can improve positive perceptions of accounting careers, which drive them to pursue a career in accounting. Work–life balance is an essential factor due to the fact that it can, directly and indirectly, affect the intention to pursue accounting careers. In addition, positive image of accounting profession is found to be able to strengthen the positive influence of the work–life balance to pursue accounting careers.

Research limitations/implications

Further studies can continue along the line of this study as the intention to choose an accounting career can change from time to time. In addition, the generational difference may create a discrepancy in perception and orientation in choosing accounting careers. Therefore, future studies should consider a broader scope and more updated objects.

Practical implications

The findings suggest that working experience is an essential part for accounting students in choosing accounting careers, and so higher education institutions need to consider including field work-practice in their curriculums. Companies are also expected to prioritise work–life balance since it will motivate accounting students to choose an accounting career.

Originality/value

This study investigates the link between work–life balance and decisions to pursue accounting careers through accounting students' perceptions in Indonesia. This study combines the influences of work–life balance and accounting career image on the intention to pursue accounting careers in one model, in which accounting career image is the mediating variable in the indirect link of work–life balance.

Details

Higher Education, Skills and Work-Based Learning, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-3896

Keywords

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Article
Publication date: 4 April 2020

Saarce Elsye Hatane, Felicia Jesslyn Setiono, Fannie Felita Setiawan, Hatane Semuel and Yenni Mangoting

This research examines the influence of the learning environment and students' attitudes towards choosing an accounting career mediated by intention to enhance the current…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

Journal of Applied Research in Higher Education, vol. 13 no. 1
Type: Research Article
ISSN: 2050-7003

Keywords

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Article
Publication date: 26 March 2021

Saarce Elsye Hatane, Jefferson Clarenzo Diandra, Josua Tarigan and Ferry Jie

This study examines the role of intellectual capital disclosure (ICD) on earnings forecasting by analysts in the pharmaceutical industry in emerging countries…

Abstract

Purpose

This study examines the role of intellectual capital disclosure (ICD) on earnings forecasting by analysts in the pharmaceutical industry in emerging countries, particularly in Indonesia, Malaysia and Thailand. This study specifically examines the role of each component of the ICD on analysts' forecasts, which consists of errors of forecasted earnings, the standard deviation of forecasted earnings and analyst recommendations.

Design/methodology/approach

Panel data analysis is conducted using a sample of 17 companies from pharmaceuticals industries in Indonesia, Malaysia, Thailand – Growth Triangle (IMT-GT), which are listed in the Indonesia Stock Exchange (IDX), Malaysia Stock Exchange (MYX) and Stock Exchange of Thailand (SET) from 2010 to 2017. Secondary data is obtained from Bloomberg and Annual report, where they are being analyzed to measure the ICD and gather the control variables.

Findings

The results indicate that the three components of ICD, namely human capital disclosure (HCD), structural capital disclosure (SCD) and relational capital disclosure (RCD), insignificantly influence average analysts' consensus recommendation and analysts' earnings forecast dispersion. However, the findings show a significant negative influence of relational capital disclosure (RCD) on analysts' earnings forecast error. In contrast, HCD and SCD have an insignificant impact.

Practical implications

Transparency in disclosing activities related to external parties is essential for the pharmaceutical industry. It is found that relational capital disclosure is the only ICD indicator that can strengthen analysts' profit predictions. Transparency about company activities in maintaining customer satisfaction and activities related to strategic alliances with other organizations are two critical things that can accommodate the accuracy of earnings forecasting from analysts in pharmaceutical companies.

Originality/value

This study contributes to ICD-related research by discussing the financial analyst's response to this voluntary disclosure in the pharmaceutical industry, particularly in Indonesia, Malaysia and Thailand. The selected observation period is seven years, starting one year after the global financial crisis. The results showed that the disclosure of IC is not an exciting thing for financial analysts. In forecasting current earnings, financial analysts are more interested in errors than the previous year's estimates.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

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Article
Publication date: 13 July 2021

Saarce Elsye Hatane, Josua Tarigan, Elenne Stefanie Kuanda and Elizabeth Cornelius

This study aims to examine the factors affecting intellectual capital disclosure (ICD), especially in the agriculture and mining sectors in Indonesia and Thailand…

Abstract

Purpose

This study aims to examine the factors affecting intellectual capital disclosure (ICD), especially in the agriculture and mining sectors in Indonesia and Thailand. Additionally, this study discusses the difference in ICD levels between Indonesia and Thailand.

Design/methodology/approach

The sample used is companies listed on the Indonesia Stock Exchange and Stock Exchange of Thailand from 2013 to 2017. The method used is a content analysis of 380 annual reports (150 from Thailand and 230 from Indonesia). This study uses a panel regression model. Variables tested are firm size, market shares, minority shareholders, profitability, leverage and the focus on ICD components such as human capital disclosure, structural capital disclosure and relational capital disclosure.

Findings

IC disclosures in financial statements are generally oriented to past events and focus more on the human capital component. Overall, ICDs in Thailand are more qualified than in Indonesia. The findings support the stakeholder and legitimacy theories. It was found that the greater the company’s resources, the higher the quality of disclosure of all intellectual capital (IC) components. Conversely, when associated with the position in the market, companies reduce the disclosures. As the company has gained the government’s legitimacy, management’s passion for revealing more about its ICD is diminishing.

Research limitations/implications

This study focuses on the agriculture and mining sectors in Indonesia and Thailand. The annual report is the primary medium to observe IC in qualitative and quantitative ways, yet firms would use other means to disclose their IC. This study deploys the content analysis method, in which the determination of scores is based on the researchers’ judgment.

Originality/value

This study contributes to the ICD-related literature by focusing on the agriculture and mining industries and multinational scopes. The ICD valuation is extended to the quality of disclosures, in which numerical and monetary figures also support the disclosures. This study also examined minority shareholders’ role in ICD quality, which is infrequent in ICD literature.

Details

Accounting Research Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1030-9616

Keywords

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Article
Publication date: 11 December 2020

Josua Tarigan, Amelia Rika Sanchia Susanto, Saarce Elsye Hatane, Ferry Jie and Foedjiawati Foedjiawati

This paper aims to examine whether companies in Indonesian controversial industries can rely on their corporate social responsibility (CSR) practices to improve potential…

Abstract

Purpose

This paper aims to examine whether companies in Indonesian controversial industries can rely on their corporate social responsibility (CSR) practices to improve potential employees' job pursuit intention, which lead to a higher quality of work life (QWL) and a better performance from their employees.

Design/methodology/approach

The target respondents are interns, staff and supervisors of 42 Indonesian listed companies in controversial industries. The data collection method is performed by distributing questionnaires using a seven-point Likert scale. Collected data using partial least squares (PLS) analysis are conducted and tested.

Findings

Consistent with the existing result, the authors find out that potential employees have a higher intention to join and accept a job offer from companies with a higher level of CSR practices. Regarding the corporate social responsibility, it is further proven to have a positive effect on employee's quality of work life. More interestingly, the findings of the current study reveal that CSR also affects employee performance (EP), both directly and indirectly, through QWL.

Research limitations/implications

Findings demonstrate that CSR in Indonesian controversial industry represents an important factor for recruiting top employees that lead to the improvement of the employee's quality of work life and performance.

Practical implications

The findings indicate that enterprises should be more concerned about CSR engagement in attracting new talents, enhancing the quality of work life and cultivating the employee's performance.

Originality/value

This study enhances previous supports and studies on the concept of CSR and human resource management by analyzing the relationship between CSR and employee performance. Previous researches have concentrated their objectives in finding the link between CSR and the financial performance of a company. However, it must be understood that a company's success actually hinges on the performance of one of their greatest assets, the human resources. Additionally, due to the change in generations that will be the job seekers, recruitment strategy to attract job applicants and improve the job pursuit intention (JPI) is now needed more than ever. One of the strategies that Indonesian companies can use to do so is by practicing CSR. Hence, this is the first study in an attempt to observe the overall relationship of the CSR with the job pursuit intention, QWL and EP, especially in the controversial industries. The study will drive companies to intensify their efforts in maintaining good employee performance.

Details

Asia-Pacific Journal of Business Administration, vol. 13 no. 2
Type: Research Article
ISSN: 1757-4323

Keywords

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