Accounting Analysis Journal starting in 2024 migrates to better secure from various unwanted things, including journal hacking and so on. To submit, the author please visit the new website page of our journal at the link https://journal.unnes.ac.id/journals/aaj MIGRATION OFFICIAL STATEMENT HERE Accounting Analysis Journal (p-ISSN: 2252-6765 e-ISSN: 2502-6216) is a peer-reviewed journal by Department of Accounting, Faculty of Economics and Business, Universitas Negeri Semarang collaborate with Ikatan Akuntan Indonesia Tingkat Pusat. This journal contains empirical studies regarding the Financial and Capital Market Accounting, Auditing, Accounting Information Systems, Management Accounting, Taxation, Public Sector Accounting, and Islamic Accounting. Accreditation Certificate: 2021-2025 GOOGLE SCHOLAR GARUDA EBSCO
Does Financial Efficiency Reflect Government Performance? Evidence from Indonesian Provinces
Purpose: The study critically examines whether financial efficiency ratios in local government financial reports genuinely reflect government performance or primarily indicate fiscal compliance. Within Indonesia’s decentralized governance framework, we investigate the relationship between expenditure realization, environmental outcomes, and reported financial efficiency. Method: An explanatory quantitative approach was utilized, employing balanced panel data from 34 provinces in Indonesia from 2020 to 2023. Financial performance was measured using the efficiency ratio. Regional expenditure was assessed using the expenditure realization ratio, and environmental performance was evaluated using the Environmental Quality Index (EQI). Total revenue was accounted for as a control variable. Panel regression analysis was conducted, and the appropriate estimation model was identified using the Chow and Hausman tests. Findings: Regional expenditure significantly predicts financial efficiency, confirming the ratio’s mechanical sensitivity to budget execution. However, environmental performance shows no significant association with financial efficiency, while fiscal capacity demonstrates a strong negative relationship. The limited explanatory power suggests efficiency ratios primarily capture fiscal compliance rather than substantive policy outcomes. Novelty: The study provides empirical evidence by comparing accounting-based financial efficiency indicators with outcome-based environmental performance measures, demonstrating that financial efficiency ratios primarily reflect fiscal compliance rather than substantive policy outcomes.
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Why Innovation Matters More Than Disclosure for Firm Value in Indonesian ESG Leaders?
Purpose: The study examines whether carbon emission disclosure, green innovation, and eco-efficiency affect firm value differently, and whether environmental performance mediates these relationships, among Indonesian ESG-listed firms. Methods/Study design/Approach: The quantitative study analyzes a balanced panel of 32 firms listed on the ESG Sector Leaders IDX KEHATI index with 96 firm-year observations in 2021–2023 using PLS-SEM with bootstrapped confidence intervals. Carbon emissions disclosure and green innovation are measured using content analysis; eco-efficiency is measured using ISO 14001 certification; environmental performance is measured using PROPER ratings; and firm value is measured using Tobin’s Q. Result/Findings: Green innovation significantly increases firm value, while carbon emission disclosure significantly decreases it; eco-efficiency has no significant effect. Environmental performance does not significantly affect firm value directly, nor does it mediate any of the three relationships tested. Novelty/Originality/Value: The study is among the first to jointly test compliance-based (disclosure and certification) and capability-based (innovation) sustainability practices within a single PLS-SEM framework for ESG-listed Indonesian firms, distinguishing between the credibility of the signals each sends to investors. It contributes evidence that environmental performance does not function as a market-valuation channel.
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The Effect of Financial Pressure on Financial Reporting Fraud: Insights from Sharia and Non-Sharia Firms
Purpose: The study examines the impact of financial pressure on financial reporting fraud. It also explores the variation of financial pressure between Sharia-compliant and non-Sharia firms, as Sharia-compliant companies are bound by Sharia principles. Method: The study uses data from public firms listed on the Indonesia Stock Exchange (IDX) and the Indonesia Sharia Stock Index (ISSI) for the period 2015–2021. All industrial sectors are included, except the financial sector, due to its distinct regulations and policies. The research employs multiple linear regression and independent-samples t-tests. Findings: The study reveals that pressures related to financial stability and debt are associated with a higher probability of financial reporting fraud. In addition, pressures arising from financial stability and financial targets are more pronounced in Sharia-compliant firms than in non-Sharia firms. In contrast, Sharia-compliant firms exhibit lower debt pressure than non-Sharia firms. Novelty: The study provides empirical evidence on how financial stability, financial target pressure, and debt pressure differ between Sharia and non-Sharia firms, and how these differences are relevant in explaining the risk of financial reporting fraud. The findings indicate that Sharia-compliant firms exhibit greater financial stability and financial target pressures, but lower debt pressure due to Sharia-based debt restrictions, offering new insights into fraud risk determinants in the context of Sharia compliance.
Can Tax Avoidance Be a Moderator in the Relationship Between Earnings Management and Firm Value?
Purpose: The study examines the effect of earnings management on firm value and investigates whether tax avoidance moderates this relationship in the context of the Indonesian capital market. The research is motivated by concerns about financial transparency and corporate credibility in emerging markets, where weak enforcement and managerial discretion often influence investor confidence. Method: The study uses panel data of 3,835 firm-year observations from non-financial companies listed on the Indonesia Stock Exchange during 2010–2022. Samples were selected through purposive sampling based on data completeness and reporting consistency. Multiple regression analysis is employed to test the proposed hypotheses. Findings: The result reveals that earnings management significantly reduces firm value, confirming that discretionary financial reporting practices weaken market confidence. Meanwhile, tax avoidance does not strengthen this negative effect, indicating that investors view tax minimization independently from earnings management behavior. Novelty: The study provides empirical evidence from an emerging market showing that tax avoidance does not amplify the adverse market perception of earnings management. The findings emphasize that investor responses in Indonesia are shaped more by earnings quality than tax strategies.
Board of Directors Characteristics and Financial Restatements: An Empirical Study of Indonesian Listed Firm
Purpose: The study examines the impact of key corporate board characteristics board tenure, size, independence, gender diversity, educational background, accounting expertise, and dual board appointments on the likelihood of financial restatements. Method: The study uses data from companies listed on the Indonesia Stock Exchange over the 2021–2023 period. A purposive sampling technique resulted in a sample of 640 firms. Logistic regression analysis was conducted using SPSS. Findings: The results show that a larger board and a higher proportion of independent board significantly reduce the likelihood of financial restatements, reflecting stronger governance and monitoring effectiveness. In contrast, longer board tenure and female board are positively associated with restatement incidence. Other factors, such as the presence of foreign board, higher educational, accounting expertise, and dual board positions, do not demonstrate a significant effect on restatement behavior. Novelty: Unlike previous studies that focus on particular industries, this research covers all publicly listed firms in Indonesia and emphasizes the role of individual board member characteristics in influencing financial reporting quality. By examining personal, professional, and demographic dimensions, the study offers new empirical insights into financial restatement behavior and fills an important gap in the governance literature.
Prudence Accounting, Financial Distress, and Foreign Operations on Tax Avoidance: Leverage’s Moderating Role
Purpose : The study investigates the effect of prudence accounting, financial distress, and foreign operations on tax avoidance, while also examining the moderating role of leverage in these relationships. The research addresses inconsistencies in prior studies regarding the influence of these factors and highlights their relevance in Indonesia’s financial sector, which is highly regulated and susceptible to aggressive tax strategies. Method : Using secondary data from audited financial statements of financial sector companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2023, this study employs panel data regression analysis. The fixed effect model was chosen as the best fit after Chow and Hausman tests. Findings : The results reveal that prudence accounting and financial distress positively and significantly affect tax avoidance, while foreign operations show no significant impact. Furthermore, leverage weakens the positive relationship between both prudence accounting and financial distress with tax avoidance, but does not moderate the relationship between foreign operations and tax avoidance. Novelty : The study offers a comprehensive framework by integrating prudence accounting, financial distress, and foreign operations with leverage as a moderating variable, providing empirical evidence on how these factors interact in shaping tax avoidance strategies in the regulated Indonesian financial sector.
How ESG Transparency Enhances Market Valuation: Examining Governance Quality in Emerging Market
Purpose: The study investigates the effect of Environmental, Social, and Governance report on market performance and also examines the moderating effect of corporate governance quality in this relationship. Methods/Study design/Approach: The analysis used panel data from 2018 to 2023, covering nonfinancial firms that registered in the Taiwan Stock Exchange (TWSE) and OTC market. Using 13,119 firm-year observations, we employ fixed-effects regressions with firm and year effects model Result/Findings: Higher ESG disclosure is associated with stronger market valuation. Corporate governance quality significantly enhances this effect, indicating that credible governance improves the value relevance of ESG information. When the ESG components are entered separately, the social pillar shows the strongest association with market value. Robustness checks that exclude the COVID-19 years confirm the stability of these results. Novelty/Originality/Value: The paper enhances the existing ESG literature by emphasizing the significance of corporate governance quality in optimizing the advantages of ESG disclosure. This paper also comparing the three ESG pillars within one framework. The Taiwanese evidence offers policy-relevant insights for ASEAN markets seeking to improve ESG disclosure and corporate governance to reinforce investor trust.
Green Governance and Carbon Emission Transparency: Does Firm Age Matter?
Purpose: This research aims to examine the influence of an independent board of commissioners, green strategy, and green investment on Carbon Emission Disclosure (CED), and to analyze the role of firm age as a moderating variable among the relationships. Method: The research uses a quantitative approach with object is non-financial companies listed on the IDX from 2021 to 2024 with total of 800, sampling using purposive sampling with a total of 204 observations units. This research was analyzed using Moderated Regression Analysis (MRA) with E-views tools. Findings: The results show that independent boards of commissioners and green investments significantly and positively influence CED. Meanwhile, the green strategy does not have a significant impact. Also, firm age can strengthen the influence of independent boards of commissioners and green investments on CED but not on the influence of green strategy. Novelty: These findings provide theoretical contributions in enriching the literature related to carbon disclosure in developing countries by combining the perspectives of Stakeholder Theory, Legitimacy Theory, and Resource-Based View. Originally, this research offered the latest empirical evidence on the role of organizational characteristics in moderating the effectiveness of sustainability strategies on carbon emission reporting.
Carbon Emission Disclosure: Media Exposure, Profitability, and Company size Moderation in Mining
Abstract Purpose: The study specifically analyzes how media exposure and profitability influence carbon emission disclosure (CED) in mining companies listed on the Indonesia Stock Exchange (IDX) during 2019–2023 and evaluates whether company size moderates these relationships. Method: Using a quantitative approach, the research applied purposive sampling and obtained 64 mining companies as the final sample. Data were collected from annual reports and sustainability reports, then analyzed through descriptive statistics and hypothesis testing using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method with WarpPLS 7.0. Findings: The results show that media exposure has no significant effect on CED, while profitability has a positive and significant effect. Moreover, company size moderates the relationship between media exposure and CED but does not moderate the link between profitability and CED. Novelty: The novelty lies in introducing company size as a moderating variable, offering fresh insights into the interaction between internal capacity and external pressures in shaping disclosure practices.
Understanding MSME Tax Compliance: The Role of Mental Accounting, Tax Awareness, Sanctions, and Socialization in Bekasi
Purpose: The study aims to analyze the influence of mental accounting, tax awareness, tax sanctions, and tax socialization on individual tax compliance among Micro, Small, and Medium Enterprises (MSMEs) in Bekasi Regency. The research specifically focuses on MSMEs operating within Bekasi Regency as the object of study. Method: A quantitative research approach was applied using primary data collected through questionnaire surveys distributed to MSME actors. A total of 147 valid responses were analyzed using the Structural Equation Model - Partial Least Squares (SEM-PLS) method. Findings: The analysis revealed that mental accounting, tax sanctions, and tax socialization significantly influence tax compliance. Conversely, tax awareness does not show a significant effect on tax compliance among MSME taxpayers in Bekasi Regency. Novelty: The research underscores the importance of psychological dimensions and tax-related education, alongside regulatory frameworks, in influencing tax compliance behavior. The exploration of mental accounting as a variable remains limited within the Indonesian context, particularly concerning MSMEs. Therefore, this study aims to enrich the existing body of tax literature by addressing this gap, specifically in relation to MSME compliance in Indonesia. The outcomes of this study provide both theoretical contributions and practical recommendations for policymakers especially the Directorate General of Taxes in formulating more targeted and effective strategies to improve tax compliance among MSMEs nationwide.
Determinants of Sukuk Ratings in Indonesia: The Role of Financial Performance as a Moderator
Purpose: The study examines the long-term influence of sukuk age, institutional ownership, and managerial ownership on sukuk ratings with financial performance as a moderating variable in sukuk issuing companies in Indonesia. Method: The population comprises 30 sukuk issuers during 2021-2023, from which 18 companies met the criteria using purposive sampling. Data analysis used the PVMAR and PVMECM techniques. Findings: The findings reveal that institutional ownership, managerial ownership, and financial performance have a long-term effect on sukuk ratings, while sukuk age does not. Moreover, financial performance strengthens the long-term effects of sukuk age, institutional ownership, and managerial ownership on sukuk ratings. Novelty: The study offers a new perspective on the interaction between sukuk rating determinants and financial performance in Indonesia, which provides essential implications for sukuk issuing companies in Indonesia to improve their financial performance. It shows the importance of good corporate governance and support from institutional shareholders as long-term stability factors that positively affect Sukuk ratings.
The Effect of Non-Executive Directors and Institutional Ownership on Firm Size: The Role of Audit Committee as a Moderating Variable
Purpose: The study explores the influence of non-executive directors (NED) and institutional ownership on firm size. Additionally, it examines the role of the audit committee as a moderating variable. Method: The research uses data from the annual reports on the Indonesia Stock Exchange (IDX). The research focuses on the banking industry from 2019 to 2023 with 105 units of analysis. The study employs moderated regression analysis (MRA) to assess the relationship among the variables. Findings: The results indicate that non-executive directors and institutional ownership have a negative effect on firm size. In addition, the audit committee significantly contributes to moderating the relationship between non-executive directors (NED), institutional ownership, and firm size. This study contributes to companies where the audit committee can mitigate the adverse effects of corporate governance and reinforce governance structures to promote firm growth. Novelty: As far as the researcher’s knowledge, this is the first research that examines the role of the audit committee as a moderating variable on the framework of the relationship between non-executive directors, institutional ownership, and firm size.
Revisiting Leadership in Public Finance: Evidence on Non-Tax Revenue Receivables Management Quality in Indonesia
Purpose: The study examines factors affecting the quality of Non-Tax State Revenue (NTR) receivable management, focusing on human resource competence, internal control, and servant leadership. Despite NTR growth, audit findings reveal ongoing weaknesses, particularly in receivable collection effectiveness. Method: The study employs a quantitative survey approach with 151 respondents across ministries, comprising civil servants managing NTR at State Ministries and Institutions. Data is analyzed using structural equation modeling (SEM) with partial least squares (PLS) software to examine the relationships between key variables. Findings: The results show that human resource competence and internal control positively influence the quality of NTR receivable management. However, servant leadership does not enhance the positive effects of these factors, indicating that leadership style may not be a critical moderating variable in this context. Alternatively, transactional or transformational leadership may be preferrable for NTR receivable management in Indonesian context. Novelty: The research expands the public sector accounting literature by shifting the focus from leadership-driven models to a competency-driven, control-based approach in NTR receivable management. The findings challenge the conventional emphasis on leadership in public finance and suggest that structured policies, internal control mechanisms, and human resource competency are more effective in ensuring financial governance and revenue optimization.
Impact of ESG Performance in Mitigating Non-Performing Loans in Kenya’s Commercial Banks
Purpose: The study examines the impact of ESG performance in mitigating non-performing loans of Kenyan commercial. Given the growing risks in Kenya associated with climate change and economic volatility in the financial sector, it is critical to understand how ESG performance can mitigate non-performing loans. Method: The study uses a dynamic panel system generalized method of moments model to analyse 33 commercial banks over the period 2013–2024. The non-performing loan (NPL) ratio is the dependent variable, while ESG performance is assessed across three key pillars: environmental, social and governance. Control variables include bank size, capital adequacy ratio and inflation rate. Findings: The study finds that there is a significant negative association between high ESG performance and non-performing loan ratios suggesting that enhanced ESG performance contributes to reducing non-performing loans. Novelty: The study adds to the knowledge of existing research on how ESG factor; environmental, social, and governance mitigates non-performing loans in Kenyan commercial banks thereby, enhancing scholarly discourse and offering insights for banking institutions and policymakers in their pursuit of sustainable financial practices.
Perceived Determinants of Rental Income Tax Compliance in Eldoret Municipality
Purpose: Taxes are an important source of government revenue across the globe. Hence, this study sought to assess the influence psychological factor comprising of perceived tax fairness, tax knowledge, and enforcement power, trust in government and social norm on rental income tax compliance from a developing region Method: The study was quantitative in nature. Data was collected using structured questionnaires. The sample consisted of 399 tenants who were selected using random sampling method in Eldoret Municipality.The hypotheses were testing using the results of multiple regression. Findings: The empirical results demonstrated that perceived tax system fairness, enforcement power, tax knowledge, trust in government and social norm are significant determinants of rental income tax compliance. Novelty: While the previous studies have focused on property owner, this study focused on tenants as key parties in residential tax compliance, thus providing new results regarding the influence of socio-psychological factors on rental income tax compliance.
Feminisms and Gendered Dynamics of Whistleblowing: How Organisational Culture Shapes Women’s Ethical Decisions
Purpose : The study examines the feminist perspectives and gendered dynamics of whistleblowing within Indonesian local governments. Unlike previous research that largely centers on the causal link between gender and whistleblowing behavior, this study delves deeper into the structural, psychological, and cultural barriers that hinder women from reporting misconduct. Method : The study employed a qualitative approach by interviewing retired civil servants using open-ended questions to elicit detailed narratives about their experiences and perceptions. The collected data were analysed using a thematic approach based on themes that emerged during the interview process. Findings : The findings suggest that women hesitate to blow the whistle due to group-oriented thinking, loyalty obligations, perceived innocence of wrongdoers, financial dependence, emotional burdens, and vulnerability to coercion. Novelty : Theoretically, this study fills a gap in empirical research on whistleblowing and gender in non-Western, collectivist settings. It highlights the need to contextualize rational action theory. It is because the decisions to report fraud are influenced not just by legal and ethical considerations but by social harmony, hierarchy, and conformity. Practically, the findings urge organizations to create inclusive whistleblowing systems that address gender norms, enhance protections, and promote an ethical culture that supports speaking out.
Corporate Social Responsibility Performance in the Environmental Sector: Role of Board Directors and Foreign Ownership
Purpose: The purpose of this research is to examine and experimentally demonstrate how foreign ownership and director qualities affect CSR performance, particularly in the environmental sector. The presence of independent directors, board size, and gender diversity serve as markers of the qualities of the board. The variables controlled in this study include company size, ROA, ROE, DER, and industry sensitivity. Method: The study utilizes a sample of 256 companies that are involved in PROPER on the IDX, except for finance. The data analysis technique used is Ordinary Least Squares (OLS) using STATA 17. Findings: The Research results show that only board size can improve CSR performance in the environmental field. Meanwhile, gender diversity on the board, independent directors, and foreign ownership do not influence the success of CSR in the environmental field. Novelty: The study differs from previous research by focusing specifically on corporate social responsibility performance in the environmental sector. To make sure the data used to assess CSR performance in the environmental sphere is objective and quantifiable, the researcher utilises the PROPER score that the firm received from the Ministry of Environment and Forestry.
CSR Performance in the Environmental Sector
Characteristics of the Board of Directors
CEO Demographics and Corporate Cash Holdings: Evidence from Banking Companies in Indonesia
Purpose: The study examines the impact of CEO demographics on corporate cash holdings in the Indonesian banking industry, focusing on CEO tenure, age, education, and gender. The study considers how regulatory constraints, firm characteristics, and macroeconomic factors shape corporate liquidity decisions. Method: Using data from 46 banking companies listed on the Indonesia Stock Exchange (IDX) from 2004 to 2022, this study analyzes 637 firm-year observations. The Ordinary Least Squares (OLS) regression model assesses the relationship between CEO demographics and cash holdings, incorporating firm-specific and macroeconomic control variables such as firm size, leverage, working capital, inflation, and GDP growth. Findings: The result reveals that CEO tenure negatively affects corporate cash holdings, suggesting that longer-tenured CEOs may optimize liquidity management rather than hold excess cash. CEO education positively influences cash holding, reflecting a stronger understanding of financial management and risk mitigation. In contrast, CEO age shows an insignificant effect, implying that experience and strategic priorities may matter more than age alone. Female CEOs exhibit a negative influence on cash holdings, possibly due to a more cautious financial approach or external governance expectations. Novelty: The study contributes to the literature on corporate liquidity by integrating CEO demographic factors with firm-specific and macroeconomic contexts. It extends the application of the upper echelons theory in a highly regulated sector, demonstrating how leadership traits influence cash management decisions. The research offers valuable insights for regulators, investors, and corporate boards in evaluating CEO profiles when assessing financial policies and risk management strategies.
Accountability of SDGs in Local Governments: Case Study of Central Java and Yogyakarta
Purpose: The study explores the work program preparation, budgeting, implementation, and accountability of SDGs targets and achievements by Central Java and Yogyakarta. Method: The research used a qualitative approach and included case studies of the governments of Central Java and Yogyakarta. Data was collected through interviews with the SDGs Implementation Team and study of SDGs documentation, then reduced, presented, and concluded. Findings: The results showed three main themes that reveal accountability SDGs in Central Java and Yogyakarta: preparation and budgeting, implementation and accountability, and strengthening the implementation of SDGs. Those themes explained that the implementation of SDGs by Central Java and Yogyakarta governments are not carried out separately but are attached to programs and activities prepared about the Regional Medium-Term Development Plan. This study is expected to improve integration between central and regional governments so that SDGs can be reported according to actual conditions. Novelty: The research provides an overview of the accountability mechanisms for SDG programs and activities, starting from the planning process, budgeting, and implementation to strengthening. This also reveals the facts SDGs accountability in the field, which demonstrate the legitimacy of local governments towards the commitment of implementation of SDGs.
Big Data, CAATs, and Auditor Religiosity in Fraud Detection: Task-Specific Knowledge as Moderator
Purpose : With task-specific knowledge taken into account as a moderating factor, this study attempts to investigate the impact of big data, computer-asisted audit techniques (CAATs), and auditor religiosity on fraud detection. The growing need for insight into the behavioral and technological components that support efficient fraud detection in audit procedures served as the basis for the study. Method : Using an associative quantitative approach, the study was carried out at the State Development Audit Agency’s Representative Offices in Sumatra. A straightforward random sample method was used to gather data, and 220 questionnaires were filled out. Structural Equation Modeling (SEM) was used in the investigation to determine the correlations between the variables. Findings : According to the t-test results, auditor religiosity significantly improves fraud detection. Big data and CAATs, however, did not demonstrate a statistically significant impact. Moreover, task-specific information serves as a predictive modifiers rather than a moderating variable as first proposed. With a termination value of 0.974, the model had a very small effect size. Novelty : The study is innovative since it examines behavioral, technical, and cognitive aspects of the auditing profession in a comprehensive manner. Additionally, it offers fresh perspective by reframing task-specific knowledge as a predicting component rather than a moderating variable, with important ramifications for enhancing fraud detection techniques.
Political Connection, Gender Diversification, and Firm Performance: The Moderating Role of Good Corporate Governance
Purpose: The research examines the influence of political connections and gender diversification on firm performance, with good corporate governance as a moderating variable. The research focuses on infrastructure sector companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2022 period. Method: The research method used is Structural Equation Modeling - Partial Least Square (SEM-PLS) using WarpPLS Version 7.0 software. The population for this study is infrastructure sector companies listed on the Indonesia Stock Exchange in 2019-2022. This research used a non-probability purposive sampling technique, resulting in a total sample of 35 companies. Findings: The research results show that political connections do not affect firm performance. However, political connections on firm performance have a significant influence when moderated by good corporate governance. Gender diversification does not influence firm performance and good corporate governance cannot moderate the influence of gender diversification on firm performance. Novelty: Unlike prior research which focuses on sectors like banking and manufacturing, this study targets the infrastructure sector—strategic, politically linked, and historically male-dominated—making the discussion on gender diversity particularly relevant. The finding that GCG selectively moderates only political connections offers a novel contribution to existing literature.
Do Carbon Emission Reporting and Carbon Trading Policies Improve Corporate Business Sustainability?
Purpose: The objective of this study is to examine and analyze the impact of carbon emission disclosure and carbon trading on improving corporate sustainability. Method: The data used in this study are secondary data obtained by documentation techniques. The sample in this study used 130 manufacturing companies in 2023. The data analysis technique in this study used IBM SPSS Statistics 26 software with stages including descriptive statistics, classical assumption tests, multiple linear regression analysis. Findings: The results of the study show that carbon emission disclosure has a positive effect on business sustainability. While carbon trading policies do not affect business sustainability. Carbon trading policies have not been widely implemented by companies in Indonesia, because companies in Indonesia are still in the process of preparing to implement carbon trading policies. Novelty: Research in Indonesia on the impact of carbon emission disclosure and carbon trading leading to business sustainability is still rarely conducted, researchers focus on company performance and bridge the issues related to environmental damage caused by manufacturing companies, efforts that can be made by manufacturing companies. Therefore, it is necessary to conduct research on the impact of carbon emission disclosure and carbon emission trading policies on business sustainability.
Factors Influencing University Sustainability Reporting
Purpose : The research analyses the factors that influence university Sustainability Reporting (SR) practices consisting of external assurance, internal auditor, signed declaration, sustainability office and stakeholder engagement. Method : The research uses descriptive, content analysis, and multivariate regression analysis were employed to analyse the data and test the hypotheses. Observational data from 155 universities registered in the Global Reporting Index (GRI) Database from 2010 to 2020 was analysed to examine the relationship between university sustainability reporting with external assurance, internal auditors, signed declaration, sustainability offices and stakeholder involvement with sustainability reporting. Findings : The findings indicate that external assurance, internal auditors, signed declaration, sustainability offices positively influence sustainability reporting. Stakeholder engagement has no influence sustainability reporting. These results underline the impact of factors that influence sustainability. Similar to previous studies, results of the GRI index disclosure show a relatively low score, there is a possibility of a tendency to gain legitimacy from the GRI ‘brand’. Novelty : The research offers new insights into the factors that influence sustainability reporting in university. This study contributes to a better understanding of the determinants of university sustainability reporting.
Operating Cash Flow Prediction: A Comparative Study of Earnings and Accruals
Purpose: Accurate cash flow prediction is crucial for effective financial management in companies, facilitating informed strategic decisions related to investment, financing, and working capital management. This study investigates the comparative effectiveness of historical income-based and accrual-based models in predicting short-term cash flows. Method: Using data from Bloomberg Terminal on 155 manufacturing companies listed on the Indonesia Stock Exchange (IDX) between 2011 and 2021, regression analysis was employed to examine the predictive power of both models, with cash flow as the dependent variable and historical income or accruals as the independent variable. Findings: The findings reveal that the historical income-based model, with an R² value of 0.6809, significantly outperforms the accrual-based model in predicting short-term cash flows. This study suggests that historical income data provides more relevant and reliable information for forecasting future cash flows. Novelty: The study uniquely contributes by comparing the predictive effectiveness of historical income-based and accrual-based models, specifically in the Indonesian manufacturing sector, an area underexplored in current literature..
Determination of Tax Aggressiveness in the Mining Sector in Indonesia
Purpose: The self assessment system is one of the tax collecting mechanisms in Indonesia. This collecting method gives taxpayers to calculate their own tax liability each year in compliance with current tax rules and regulations (Resmi, 2019). This allows companies to calculate their taxable revenue as low as feasible, allowing them to be more aggressive in lowering the tax burden paid in order to maintain firm profitability. This research aims to substantiate the hypothesized influences on tax aggressiveness. Capital intensity, profitability, and firm size are the independent variables under consideration. Method: The mining companies that were officially registered on the Indonesia Stock Exchange from 2017 to 2021 constitute the study population. The rationale behind the author's selection of a mining company is the suspicion that engineering practices to relocate income globally to low-tax countries and substantial costs to high-tax countries are still prevalent. The sampling procedure utilized is purposive sampling, in which samples are selected in accordance with predetermined criteria that the researchers have established. A total of 95 samples were acquired from 19 enterprises that met the specified criteria over the course of five years. In this investigation, multiple regression analysis was conducted. Findings: It was discovered that tax aggressiveness was negatively correlated with profitability. Inversely proportional to capital intensity is tax aggressiveness. As it contradicts the developed hypothesis, this hypothesis is refuted on account of the positive correlation between company size and tax aggressiveness. Novelty: Utilizing an agency theory framework, this study contributes to the literature on tax aggressiveness in mining companies listed on the Indonesia Stock Exchange, which is influenced by capital intensity, profitability, and company size. It was demonstrated by the study that capital intensity and profitability can influence tax aggressiveness
Tax Aggressiveness; Profitability; Company Size; Capital Intensity
Copyright (c) 2024 Accounting Analysis Journal
Green Accounting Perspective on Sustainability Development Goals
Purpose: The study is conducted to determine the factors that affect sustainable development goals (SDGs) in Indonesia listed companies with a green accounting approach. Three independent variables (ESG disclosure, environmental performance, and green accounting) were empirically tested to determine their relationships with sustainable development goals (SDGs). Method: The data set covers 16 companies that are consistently listed on the Jakarta Islamic Index (JII) during the period 2020 - 2024, data source was collected with purposive sampling technique, and hypotheses were tested using an ordinary least square regression random effect model. Findings: The results showed that ESG disclosure, environmental performance, and green accounting simultaneously affect sustainable development goals. Partially, ESG disclosure and environmental performance have a significant positive effect on sustainable development goals, while green accounting has no effect on sustainable development goals. Novelty: This study brings us to a different point of view, explaining that achieving sustainable development goals from a green accounting perspective. According to the findings, stakeholders can use it in making business decisions, both by companies and governments. Further research can add the variable of company value to see the investor’s perspective in contribute achieving sustainable development goals.
CSR, Profitability, Capital and Inventory Intensity Effects on ETR Moderated by Firm Size
Purpose : The purpose of this research is to empirically test and analyze the influence of Corporate Social Responsibility, Profitability, Capital Intensity, and Inventory Intensity on the Effective Tax Rate with Firm Size as a moderating variable. Method : The population consists of manufacturing companies in the consumer goods sector listed on the Indonesia Stock Exchange (IDX) for 2018-2023, totaling 91 companies. Sample selection used a purposive sampling approach, resulting in 150 data analysis units after excluding 63 outliers, analyzed using the Eviews 12 program. The study uses unbalanced panel data from secondary sources in annual reports. Data analysis techniques were conducted using descriptive statistical approaches and inferential statistical analysis. Findings : The research findings indicate that Corporate Social Responsibility and Inventory Intensity have no significant effect on the Effective Tax Rate (ETR). In contrast, Profitability negatively affects the ETR, while Capital Intensity has a positive effect. Furthermore, Firm Size moderates the relationship between Inventory Intensity and ETR but does not significantly moderate the effects of Corporate Social Responsibility, Profitability, or Capital Intensity. Novelty : The study builds upon and extends previous research on the effects of CSR, profitability, capital intensity, and inventory intensity on the ETR by using recent data (2018–2023) and incorporating firm size as a moderating variable to provide a more comprehensive analysis in the Indonesian context.
Sustainability Reporting as a Catalyst: Investigating the Mediating Path Between Corporate Characteristics and SDGs
Purpose: This research examines how LQ45 companies in Indonesia support sustainable practices by disclosing their SDGs. Method: The method used is a panel data regression method: random effect. Using 131 samples unbalanced panel data from 2019 to 2022, this research uses 17 SDGs developed by the UN as its SDGs disclosure index. Findings: The results show that LQ45 companies in Indonesia contribute more through company activities in accordance with SDG 8. This research also shows that SDGs disclosure gradually increased during the research sample period. In addition, this research finds that firm age and sustainability reporting have a positive influence on SDGs disclosure, while firm size does not affect SDGs disclosure. Novelty: The research using Sustainability Reporting as a mediation to find the most effective strategy towards SDGs. This research also fulfilling the lack of empirical research on SDGs in developing countries since SDGs have become a global concern recently.
Empirical Analysis on the Elements of a Good Tax System and Tax Compliance in Nigeria
Purpose : The study evaluates the relationship between the elements perceptions of a good tax system – simplicity and fairness – and tax compliance. Method : The survey was conducted using Cochran’s sampling technique with 384 respondents, drawn from personal and corporate income taxpayers, tax professionals, and tax officials across Nigeria. This study uses Partial Least Square Structural Equation Modelling (PLS-SEM) to analyse the relationship of tax simplicity and tax fairness with tax compliance. Findings : The study found that there is a significant relationship between tax simplicity and tax compliance. It was also found that tax fairness perception has a substantial relationship with tax compliance. Novelty : Some earlier studies have identified varied factors affecting tax compliance behaviour such as audits, tax education, trust in tax authorities and tax morale. This study identifies the interplay of tax simplicity and fairness in determining the tax compliance behaviour. It underscores that in a well-structured tax system, characterised by streamlined tax laws, if tax can be levied on taxable objects (people or organisations), then tax can provide benefits to both taxable objects and the government.
President Commissioner Attributes and Climate Change Disclosure: Evidence from Indonesian Banking Companies
In recent years, there has been an increased demand for information regarding companies’ risk management efforts and opportunities related to climate change. The lack of concrete evidence about companies’ efforts to address the impacts of climate change highlights the importance of climate change disclosure. The purpose of this study is to examine the influence of the attributes of the president commissioners (gender, age, and nationality) on climate change disclosure. Method: The study focuses on listed entities within the banking sector from 2020 to 2022 using a quantitative research methodology. The purposive sampling technique was used to gather a sample size of 129 observations. The data was analyzed using Stata 16. Findings: The results indicate that companies with female president commissioners tend to disclose less about climate change, while age and foreign nationality positively impact disclosure. These findings align with the upper-echelon theory and have significant practical implications. They underscore the need for policymakers to consider the president commissioner’s characteristics when developing strategies to promote climate change disclosure, given the growing importance of sustainability concerns. The robustness checks on the regression results consistently support these findings. Novelty: The president commissioner plays a crucial role in determining the success of climate change disclosure. Previous studies have analyzed commissioners’ educational backgrounds, while other crucial traits for supporting climate change disclosure, such as gender, age, and nationality, still lack empirical evidence. Additionally, there is still little attention given to the banking industry.