Journal of International Scholars Conference - BUSINESS & GOVERNANCE

Capital Asset Pricing Model Analysis: A Study On Indonesia Food And Beverage Sub Sector At Indonesia Stock Exchange

Francis M. Hutabarat, Wencke Panjaitan — Fri, 01 Jan 2016 00:00:00 +0700

The economic development of a country surely is goal for any country. There are many ways that can be done to measure it, one of them by knowing the level of development of capital markets and securities industries in the country. This study aimed to measure and analyze food and beverage sub sector of the Indonesian Stock Exchange using Capital Asset Pricing Model. The sample used is active companies in stock transaction, such as: ADES, AISA, ALTO, CEKA, ICBP, INDF, MLBI, MYOR, ROTI, ULTJ listed in food and beverage sub sectors. Based on the results of the study, it can conclude that after analyzing the food and beverage sub sector of the Indonesian Stock Exchange using Capital Asset Pricing Model, Beta that is significant shows that the stock is worthy to invest, and they are AISA, INDF, ICBP and ROTI based on the period observed from January to March 2015. This indicate that in the first quarter of 2015, the four stocks shows great promises for investor to invest and out of the four, ICBP has positive rate of return.

THE RELATIONSHIP BETWEEN COMPENSATION AND EMPLOYEE PERFORMANCE AT BANDUNG ADVENTIST ACADEMY

Juwita Simbolon, Francis M. Hutabarat — Fri, 01 Jan 2016 00:00:00 +0700

Human resources is a major asset for a company. Therefore, for the survival and progress of the company, then the company should give special attention to the human factor. For employees, compensation is seen as a tool to motivate employees to maintain the economic viability of their employees and to improve the performance of employees. The purpose of this study is to find the relationship between compensation and employee performance at Bandung Adventist Academy. The study used descriptive method using t-test to analyze the data with the used of SPSS. The research resulted that the respondent suggested that the compensation is given accordingly with mean 4.0305 and performance of employee is high with mean of 4.1771. And, the F-test shows that there are no significant between the answer of male and female, at Î± = 0.05. However, there was no significant relationship between compensation and employee performance at Bandung Adventist Academy. The resultshows the t-test is 0.702 and is lower than the t-table, which shows that Ho is accepted, with Ï-value of 0.490.

The Effect of Technology Usefulness, Top Management Support and User Commitment on Human Resource Information System Performance

Grace Orlyn Sitompul — Fri, 01 Jan 2016 00:00:00 +0700

A review of related literature has revealed that there are still unanswered questions concerning Human Resource Information System (HRIS) and its performance factors. Prior research findings have revealed that HRIS performance is influenced by several factors such as technology usefulness, top management support, and user commitment. The purpose of this study was to found the effect of technology usefulness, top management support, and user commitment using Structural Equation Modelling. The endogenous variable for the study was HRIS performance, and the exogenous variables were technology usefulness, top management support, and user commitment. For data collection, a combination of online and face-to-face surveys were used. A questionnaire composed of 4 instruments was administered to HRIS users for data collection. A total of 222 HRIS users of selected business organizations in the Philippines and Indonesia completed the survey. The result indicated that HRIS performance model developed from analyzed collected data explains 68.5% of the variance of HRIS performance, while the two factors such as technology usefulness (r = 0.216, p < 0.05), and user commitment (r = 0.247, p < 0.05) were found to have a direct positive effect on HRIS performance in the model. Top management support was the important factor that has a significant role in the success of HRIS performance. In the present study, it seems that top management support affect HRIS performance indirectly through other factors such as technology usefulness and user commitment. From the findings of the study, it can be concluded that technology usefulness, top management support, and user commitment have a significant role in organizations, helping employees to accept technology innovation at the work place and ultimately influencing HRIS performance.

Balance Of Trade Analysis Before And After The Implementation Of Acfta-Indonesia

Harman Malau — Fri, 01 Jan 2016 00:00:00 +0700

Free trade does not always bring advantage. It could be benefit or threat for a country. ACFTA is one of the International Free Trade with the acronym ACFTA stands for ASEAN-China Free Trade Area, implemented since January 1, 2010 in countries of China and six out of ten ASEAN members namely Indonesia, Malaysia, Singapore, Thailand, Philippines and Brunei Darussalam with agreement through the elimination of trade barriers such as quota and import tariff. Could it be a positive or negative trigger in a country?
The research aims is to show whether the implementation of ACFTA contributes advantage or disadvantage in Indonesia by analyzing balance of trade statistically using t-test (paired t-test) and trend line analysis picturing balance of trade impact clearly. And the sampling technique of this study is the total export and import of Indonesia from and to China, Malaysia, Singapore, Thailand, Filipina, and Brunei Darussalam from January 2005 to 2014. Sources of data are obtained from legal website of Central Bureau of Statistics of Indonesia.
The empirical study shows that balance of trade before and after the implementation of ACFTA was negative statistically, ACFTA had no strong correlation with performance, and yet, though the correlation was weak, the present of ACFTA had impact triggering 36 percent performance. Linear regression line both before and after ACFTA moves from left to right every year. And the line is more steeply after the implementation of ACFTA. Moreover, the difference of export-import was much bigger after ACFTA. It could be said that Free Trade of ACFTA did not enhance a positive balance of trade in Indonesia. The phenomenon indicates that the balance of trade performance is getting worse after the implementation of ACFTA.

Financial Performance Based On Profitability, Solvency And Its Impact On The Stock Price Of Companies Listed In The Mining Sector At Indonesia Stock Exchange From Year 2006-2014

Francis M. Hutabarat, Devina Tarigan — Fri, 01 Jan 2016 00:00:00 +0700

The research is a result of the need for the Indonesian people to strive for greater financial security through investment awareness. To achieve financial security, the public must be knowledgeable of various forms of investing. Investing in stocks is a popular and profitable option for interest investors. A clear understanding of stock investment is required for investors seeking optimal benefits from their investment. The study will use historical data, ROA, ROE, NPM, CR, DTA, DTE, and stock prices from period of 2006-2014 to evaluate and value selected stock of four companies listed in the mining sector at Indonesia Stock Exchange. The purpose of the study is to explore financial performance based on profitability, liquidity, solvency and its impact towrads stock price at mining companies listed in the Indonesian Stock Exchange from year 2006-2014. Method used in the study is descriptive. F-test and ttest were used to determine significant level of relationship between variables. The results of the study shows that there is no significant relationship both simultaneously and partially between financial ratios such as: GPM, NPM, ROA, ROE, CR, DTA, DTE and stock price of PT. Timah Tbk, PT. Aneka Tambang Tbk, and PT. Bukit Asam, respectively.

Exchange Rate, Inflation And Export-Import Indonesia And China (Comparative Analysis Before And After Free Trade)

Harman Malau — Fri, 01 Jan 2016 00:00:00 +0700

International traders need the relevant information when they make import or export decision. The change of international price, exchange rate and inflation are the things considered in international market. Since the elimination trade barriers, it is very clear that the implementation ASEAN-China Free Trade has changed the international price of products and services. How could it be for a country? How exchange rates, inflation and free trade give impact toward export and import of Indonesia and China?
The research aim is to show how exchange rates and inflations predict exports and imports before and after free trade by using Indonesia-China data analysis technique namely regression analysis, partial (t-test), simultaneous (F-test) and adjusted square. Sources of data are obtained from legal website of Central Bureau of Statistics of Indonesia. The data of import-export are divided into two parts, namely from 2005 to December 2009 is used to measure the performance of data before Free Trade. And from 2010 to 2014 is used to measure the performance of data after free trade
The results of study shows the inflation rate decreases after free trade. On contrary, exchange rate increases after the free trade. Exchange rate has preponderant influence than inflation before and after free trade. Both inflation and exchange rate have no strong impact toward import before and after the implementation free trade. It could be concluded that there is no significant relation of simultaneous inflation and exchange rate toward import before the implementation of free trade. In contrary, inflation and exchange rate has strong relation toward import after the implementation of free trade. Import linear regression has different before and after the implementation of free trade.
Export increases after the implementation of free trade. Both correlation of inflation and exchange rate have changed from negative become positive. Inflation rate has more preponderant influence than exchange rate before free trade. In contrary, exchange rate has more preponderant influence than inflation rate after free trade. It refers that both inflation and exchange rate have no strong impact toward export before and after the implementation free trade. Analysis of variance shows that there is no simultaneous relation of both inflation and exchange rate toward export before and after the implementation of free trade. Export linear regressions shows that trend line is different before and after free trade. And exports were much bigger from Indonesia to China after the implementation of free trade.

Ownership, Company Size And Audit Quality In Indonesia Banking Industry: An Empirical Evidence During The Relatively Stable Economic Condition

Hisar Pangaribuan, Djolly Pranata — Fri, 01 Jan 2016 00:00:00 +0700

Audit quality has become an important aspect in recent year. A reliable audit report will be a very useful information for various parties in order to provide assurance that the financial statements presented in accordance with applied accounting standards. The purpose of this study is to investigate the effects of managerial ownership, institutional ownership and company size on audit quality. At the same time this study also to investigate the effect of managerial ownership and institutional ownership on company size. Audit quality proxied by going-concern audit opinion. The research used partial least square/ variance based statistical method, with descriptive analitical research method. The research found that the value of r square for company size was 0.125 (weak) and the value of r square for audit quality was 0.073 (weak). With a significant level = 5%, it was found that company size has a significant effect on audit quality, institutional ownership did not have a significant effect on audit quality, managerial ownership did not have significant effect on audit quality, institutional ownership did not have a significant effect on company size and managerial ownership did not have a significant effect on company size.

The Evolution On Marketing Concept: Analysis On The Perspective Changes In Marketing Concept

Joan Yuliana Hutapea — Fri, 01 Jan 2016 00:00:00 +0700

Purpose - The purpose of this paper is to understand the evolution of marketing concept, how the perspective of marketing has changes, from its early philosophy to modern marketing concept that not only focused on the creation of products for consumers, but also giving a careful attention to other marketing factors such as: market segmentation, brand positioning, brand loyalty, internal marketing and market orientation.
Design/methodology/approach - The paper takes the form of a literature review, tracing the evolution of marketing concept, by analyzing and reviewing previous conceptual and empirical studies that related to the topic.
Findings - Marketing concept has significantly changes since the industrial revolution until today. Business initially only focused on how to create a product in high inventory levels in order to meet the needs of consumers. But along with the increase in technology, consumers knowledges, as well as the business competition that occurs from time to time, then business should be able to aggressively anticipate the dynamic changes, and come up with new and sophisticated marketing concepts to anticipate these changes. This study finds that perpective on marketing concept has been broaden, in which marketing activities were not just the creation of products and ensure the availability of products, but also have to think about market segmentation, brand positioning, how to maintain consumer confidence to the product, and how the organization should have a market oriented behavior, where customer satisfaction become the focus of the organizational activities.

Internal Audit: Its Implications To Good Corporate Governance (GCG) In PT. Telekomunikasi Indonesia

Judith T. G. Sinaga, Daniel Nicson Simanjuntak — Fri, 01 Jan 2016 00:00:00 +0700

The study aims to know the implications of audit internal to good corporate governance. It is known that audit internal plays a vital role in every entity or an organization. Audit internal helps achieve organizational objectives while good corporate governance emphasizes on how performance is monitored and optimized. This paper used descriptive method wherein data were gathered through questionnaires. Research questionnaires were distributed to 20 respondents who were working in Internal Audit Unit of PT. Telekomunikasi Indonesia. Internal audit as the independent variable has four (4) indicators, independence, professional competence, scope of work, and Implementation of audit activities. Good corporate governance as the dependent variable has four (4) indicator, these are, fairness, transparency, accountability, and responsibility. Data gathered were processed and concluded. Based on the result of the research, it is known that internal audit is related to good corporate governance with an r = 0.661, this means that the relationship of both variable is strong and positive. It is also known that audit internal affects good corporate governance with an Î± = 5%, it is known that it affects significantly. Also, the result shows that tvalue of 3.574 is > ttable value of 1.734, which is means that Ho is
rejected.

Internal Control, Ethics And Hiring Process Towards Employee Theft Prevention For Cash

Judith T. Gallena — Fri, 01 Jan 2016 00:00:00 +0700

Employee theft is rampant to companies where there is opportunity to steal pressured by the situation and triggerred by the attitude or rationalization. Employee theft (fraud) involve individuals or group of individuals dishonestly obtaining property or financial advantage by means of deception. Cash is very much prone for employee fraud since it can be easily obtained by the perpetrators. Employee theft should be prevented because it is a serious problem. Effective internal control, ethics (code of ethics), and human resource management (hiring of employees) are ways to prevent fraud. Internal controls are rules, regulations, policies and procedures set by top management to provide reasonable assurance of achieving objectives. Ethics set limits of unethical behavior and are intended to offer guidance in ambiguous situations. Human resource hires people that are skilled, competent, qualified and ethically equipped candidates.

Managing Management Boundaries of Creativity and Design

Noah Anburaj Balraj — Fri, 01 Jan 2016 00:00:00 +0700

This study examines the fundamental beliefs of creativity and design in management perspective. The study is descriptive in nature. The problem of managing management boundaries of creativity and design is quite challenging. Data were collected mainly on two broad perspectives to fine solutions to the challenge: 1) the product design of personal computers in comparison with the compatibility of human and other structures. 2) How nature and its stakeholders contributes to human living. Conclusions on the data found: Reflection of nature and its stakeholder, and human and other structures were compared with product’s creativity and design. Thus boundaries of creativity and design are directly proportionate to the reflection and growth of human beings (consumers’). By deducting the results of this a parallel is drawn to organizations as a product to do the same in creativity and design.

Performance Management Framework For Medium-Sized Enterprises in Service Sector

Ida Nuraida — Fri, 01 Jan 2016 00:00:00 +0700

The aim of this literature study is to propose a conceptual performance management framework for medium-sized companies in the service sector at Bandung and its surroundings. Performance management is important for small and medium-sized enterprises in Indonesia in anticipation of global competition in the ASEAN region, which is called ASEAN Economic Community (AEC), at the end of 2015. The medium-sized companies in the service sector facing many limitations such as lack of human resource capabilities. In addition, all of the services sector in Indonesia which become AEC priorities, is far behind compared to other Asean countries. It should be anticipated with relevant performance management framework for medium-sized companies in the the service sector, in order to improve the performance of employees, the company's growth and to achieve a competitive advantage. The role of the company's strategic plan needs to be considered for proposing the dimensions of performance management. Performance management need be linked to the capability of human resources because of the employee's performance of the service company depends on the employee's ability in providing and delivering services and service to satisfy customers directly. Service quality is one of the employee performance in the service sector that can improve competitive advantage. This performance management framework will be followed up by empirical research in medium-sized companies in the service sector at Bandung and its surroundings, to be used as a prototype for other regions of Indonesia.

Leader-Member Exchange and Its Relationship to Workplace Conflict as Mediated by Organizational Citizenship Behavior

Arlette Ufitinema, Lualhati Parulan Sausa — Fri, 01 Jan 2016 00:00:00 +0700

This study aimed to explore the relationship between leader-member exchange and workplace conflicts as mediated by organizational citizenship behaviors among private hospital workers in the Philippines. Data from 309 regular workers were collected through random sampling from conveniently selected private hospitals in the Philippines. Descriptive-correlational design was used in this study. Correlation, descriptive statistics and regression analysis were used to analyze the data. The respondents were satisfied by leader-member exchange on the leaders’ side, highly demonstrated their citizenship behaviors and perceived a low intensity of workplace conflicts. Leader-Member exchange and organizational citizenship behaviors had a significant positive relationship. However, there was no significant relationship between organizational citizenship behaviors and workplace conflicts. There was a significant negative relationship between leader-member exchange and workplace conflicts. There were significant mediating effects of organizational citizenship behaviors on the relationship between leader-member exchange and workplace interpersonal and intrapersonal conflicts. There was no significant difference in workplace conflicts when age, gender, and length of work experience of respondents were considered.

Challenges facing Real Estate Investment for Economic Growth in Arusha

Paluku Kazimoto — Fri, 01 Jan 2016 00:00:00 +0700

Today real estate investments are seen as foundation for wealth creation and economic growth in many countries. This study was based on analyzing the challenges facing real estate investments in relation to economic growth in Arusha. The study was based on Markowitz theory stating that individuals are for utility maximization, always switching from one investment to another that has the same expected return but less risk or one that has the same risk but greater expected return, or one, which has both greater expected return, and less risk. The study used descriptive approaches. Questionnaire was used and purposive sample method was used to collect data from 87 respondents. The findings revealed that there exists abundant opportunities for the rapid economic growth in Arusha city which has catalyzed the demand for real estate development. There is relationship between challenges facing real estates investment and economic growth in Arusha. The study recommends reforms and improvement on land laws for requisition and registration and communication infrastructure. There is need to regulate action on real estate pricing, rental values to attract more local participations/clients to facilitate capital accumulation and financial sustainability for economic growth.

Predictors Reducing Employee Fraud Risk: Proposed a Model

Jhon Rinendy — Fri, 01 Jan 2016 00:00:00 +0700

This study aimed to examine the predictors of employee fraud risk (EFR) in organization base on fraud triangle theory that could be predicted by component behaviors of Organizational Trust (OT) dimensions such as competence, openness, honesty, reliability, identification, and Job Satisfaction (JS) dimensions: existence needs, relatedness needs, and growth needs, as perceived to reduce fraudulent acts. The survey research design was employed in this study with convenience random sampling technique. The descriptive-correlational design and multiple regression analysis were used to determine the existing relationship among the variables and the predictors of EFR. There are three elements must be present for employee to commit fraud base on fraud triangle theory. The findings revealed that “pressure” ranked first as a risk, followed by “opportunities” and “rationalizations.” There was a negative and significant relationship between JS degree and EFR factors, and between OT and EFR of the respondents’ perception. Reliability, honesty, competence, existence needs, relatedness needs, and growth needs dimensions are the best predictors to reduce EFR. The results indicate the importance of well-structured organizational trust culture, job satisfaction and effective internal controls against employee fraud risk regarding misappropriation of assets by employees.

Knowledge and Understanding Problems of the Business Plan in the Small Entrepreneurship in Muak Lek Municipal Area, Muak Lek District, Saraburi Province

Wanlee Putsom, Subin Putsom, Somporn Khajornpop — Fri, 01 Jan 2016 00:00:00 +0700

The objectives of this research were 1) to study the knowledge and understanding of the business plan in small entrepreneurship, 2) to study the level of knowledge and understanding of the problems of business plan in small entrepreneurship, 3) to study a variety of knowledge and understanding of the problems of the business plan in small entrepreneurial categorized by personal factors. The samples were 86 entrepreneurs in Muak Lek municipal area, Muak Lek district, Saraburi province. Data were gathered through a survey questionnaire. The analytical tools were frequency, percentage, mean, standard deviation, t-test, and One-Way ANOVA. The results revealed that 1) the respondents’ level of knowledge and understanding of the business plan was low. 2) The study of the problems revealed that respondents’ lack of knowledge and understanding of the business plan was the major problem ( = 3.48) and whereas the least problem (= 3.21) was the respondents’ lack of ability to analyze and use the information in business administration in managing the business. 3) There was statistical significant difference at 0.05 in gender differences of respondent in terms of the lack of analyze and use the information in business administration in managing business, lack of knowledge and understanding of the business plan and lack of ability to predict the future situation of the business. The difference in gender and position in business differed significantly at 0.05 in terms of lack of knowledge and understanding of the business management. For the experience the study found that the differences in experience were significantly differ at 0.05 in terms of lack of knowledge and understanding of the business management. However, there was no significant difference for the comparison analysis. The difference in age, education level, and level of investment fund did not yield significant difference at 0.05 in terms of knowledge and understanding problem of the business plan.

Ability of Preparing and Implementing Business Plan of Small Business Entrepreneurs in Muak Lek Municipal Area, Muak Lek District, Saraburi Province

Wanlee Putsom, Damrong Sattayawaksakul — Fri, 01 Jan 2016 00:00:00 +0700

The purposes of this research were 1) to study the business management capability level of small business entrepreneurs, 2) to study business plan development capability level of the small business entrepreneurs, 3) to compare the difference in capability level of implementing business plan categorized by experience, education level, and size of investment. The sample of this study consisted of 86 small entrepreneurs at Muak Lek District of Saraburi Province. Data were collected using survey questionnaires. Data analysis was conducted using frequency, percentage, arithmetic mean, standard deviation, and one way ANOVA. The results show that 1) the small business entrepreneurs possessed medium level of capability in developing business plan and management 2) small business entrepreneurs categorized by different experiences and sizes of investment possessed no statistically significant difference in ability of developing business plan and management. However, difference in education level of small business entrepreneurs possessed statistically significant difference in capability of developing business plan and management. The small business entrepreneurs who have high school or less education level possessed statistically significant differences in ability of developing business plan and management when compare to those who have undergraduate education level.

Relationship between Budget Participation, Budget Procedural Fairness, and Department director’s/ Budget manager’s activities: The Study of Asia-Pacific International University

Rey Mom — Fri, 01 Jan 2016 00:00:00 +0700

This study investigates the correlation between budget participation, budget procedural fairness, and department director’s/budget manager’s performance at Asia-Pacific International University (AIU). Generally, department directors/budget managers do not seem interested in participating and sharing the important information they have with their supervisor while supervisors also seem uninterested of department director’s/budget manager’s ideas or information while preparing the annual budget. This study is a quantitative research, and a questionnaire was the main instrument for data collection. The questionnaires were distributed to the 38 department directors/budget managers of AIU. Multiple regression and multi correlation were used to test the variables. Overall, the analysis found no positive influence between budget participation and budget procedural fairness on department director’s/budget manager’s activities. Several limitations can be noticed in this study include population collected from only directors or budget managers of a small university. It also used only two variables, budget participation and budget procedural fairness, as an influence on department director’s/budget manager’s activities.

The Correlation Of Unemployment Rate, Fuel Price And Money Supply Towards Inflation In Indonesia

Richard F. Simbolon — Fri, 01 Jan 2016 00:00:00 +0700

Inflation is inevitable and prevalence because all countries, including Indonesia, have experienced inflation as part of their economic growth. The aim of the study is to find the correlation of unemployment rate, fuel prices, money supply to inflation in Indonesia. This study used descriptive method to analyze the data. Data were gathered from Badan Pusat Statistik, year 2010 to 2015. The result of the study shows that there is no significant correlation between unemployment rate and inflation; fuel price and inflation; money supply and inflation rate in Indonesia.

Systems Dynamics Study of SMEs’ Value Re-creation: Case of Embroidery Center Tasikmalaya

Ferey Herman — Fri, 01 Jan 2016 00:00:00 +0700

Since 1980 Tasikmalaya known as "City of SMEs" because of many SMEs are scattered throughout the city. From the various SMEs, embroidery industry covers 45% of the total SMEs, growing rapidly and absorb a lot of labor. But in recent years the industry does not run as well as expected, instead of grow, a lot of SMEs close their business. Preliminary research conducted by in-depth interviews with 56 entrepreneurs indicate that in their opinion, low profit margins and the difficulty of marketing, especially after global products enter the market are considered as a major problem. Unlike most similar previous research, this study was conducted with systems dynamics approach. Until now there has been little research about SMEs conducted with this approach, hopefully this study can give idea for other researchers to take advantage of systems dynamics in deciphering what is happening in a period, and bring insight when build a theory. Here, systems dynamics bring in awareness of the importance to discover business’ critical sussess factors and the importance of value re-creation to maintain business in global market.

The Consumers’ Satisfaction to Purchase Goods and Services over Internet: in MuakLek and KaengKhoi Districts, Saraburi Province, Thailand

Samorn Namkote — Fri, 01 Jan 2016 00:00:00 +0700

The objectives of this research were to study satisfaction level of consumers to purchase goods or services over internet and to compare difference of consumers’ satisfaction. The sample of this study consisted of 450 people who live in Muak Lek and Kaengkhoi District, Saraburi Province, Thailand. A questionnaire was used as the instrument to collect data. Statistical analyses were percentage, mean, standard deviation, t-test, and One Way ANOVA. To compare all pairwise differences, Scheffe’s method was utilized at the statistical significance level of 0.05. The results showed that the overall consumers’ satisfaction to purchase goods and services over internet was in satisfaction level. Considered by demographic characteristics; male, monthly income 20,001 30,000 bath, master degree, age 19-20 years old, private business, and single status were most satisfied to purchase goods and services over internet. In additional, to compare difference satisfaction found that different consumers did not have different satisfaction.

The Impact Of Environmental Performance As Realization Of Environmental Regulation On Financial Performance

Prayanthi Ika, Mandagi Deske — Fri, 01 Jan 2016 00:00:00 +0700

The purpose of this study is to assert the impact of environmental performance as realization of environmental regulation on financial performance for the span of one to three years (2010-2013) after the publication of environmental performance ratings. Environmental performance was measured by the ratings given by PROPER program, and financial performance was measured based on ROA and ROE. This study also examined if there is significant difference on financial performance among the group of companies on each rating. The research finding shows that there was no significant impact of environmental performance on financial performance on the first year announcement of the financial ratings, however there was a significant impact on the second and third year. Different test using ONE WAY ANOVA indicated that there was significant difference on financial performance of companies in different rating, in each year. The result suggested that companies with green rating had the highest financial performance followed by gold rating.

The Significance of Entrepreneurship: Problems, Motivations and Success Factors (Social Science)

Lorina Siregar Sudjiman, Paul Eduard Sudjiman — Thu, 15 Oct 2020 00:00:00 +0700

In general, entrepreneurship is a tough proposition as a good number of the new business fail to take off. Entrepreneurial activities differ based on the type of the business they are involved in. In the knowledge-based economy, innovation and knowledge are the key driver of success. The purpose of this study is to shed light on the role of today’s knowledge-based economy by reviewing a number of entrepreneurs who lived in Philippines. This study seeks to examine the relationship between innovation and knowledge in Entrepreneurship with regard to performance, their dynamism, adaptability and flexibility, constitute a central component of the innovative economy. Specifically to determine the entrepreneur’s skills and characteristics and put them into practice in order to know the ways of an entrepreneur in making business. The population of the study is 10 entrepreneurs were analyzed through hierarchical analysis and innovation was found to be a significant factor in entrepreneur samples. Implications for theory and practice are discussed that may provide possible competitive advantage for the entrepreneurs. The findings of this study help propose a framework for enabling innovation and entrepreneurship in developing countries.

Stakeholders’ Perception towards the Role of Secretaries in Globalization Era

Carmen Mandey — Thu, 15 Oct 2020 00:00:00 +0700

This research mainly focused on the stakeholders’ perceptions of the role of secretaries in the globalization era. The objectives of this research were to find out how much the secretary was needed, the performance a secretary should have, and what competencies it was that could support the value of a secretary. This was a qualitative research that used direct observation of the respondents’ situation and in-depth interview with the respondents to collect the data. The results of the data showed the answers to the three research questions. The answer to the first research question was that the level of needs for a secretary was high; the answer to the second research question was beside mastering her role, secretaries are expected to help the manager in doing managerial tasks like a supervisor; the answer to the third research question was that a secretary should master the office technological devices, master the good way of communicating, master the English language, master the knowledge of personnel, and possess personality and good appearance. Based on the research results, the researcher can conclude that a secretary is still needed in the era of sophisticated technology like nowadays; however, only a secretary with various skills can compete and is highly needed.

Time Management Capabilities: A Case of the Industrial Workers of the Gulf Cogeneration Company Limited’s Clients

Damrong Sattayawaksakul, Ritha Maidom, Pimpa Cheewaprakobkit — Thu, 15 Oct 2020 00:00:00 +0700

The purpose this research was to study the time management capabilities of the industrial workers of the clients of Gulf Cogeneration Company Limited, a company located in Saraburi Province, Thailand. In addition to investigating the overall time management capabilities of the workers, the study also examined six related aspects. They were 1) the analysis of problems related to time usage, 2) the formation of realistic objectives, 3) the planning of time usage, 4) the implementation of plans, 5) the assessment of time usage, and 6) the improvement of projected time usage plans and modification of time-wasting activities. The sample of this study consisted of 53 workers from factories at Keang Khoi District of Saraburi Province. Data were collected using a survey questionnaire consisting of 56 items. Data analysis was conducted using arithmetic mean, standard deviation, t- test, one way ANOVA, and Scheffe's method. The time management capabilities of the workers were also compared by gender, age, educational level, and income. The results show that the workers of the client companies of Gulf Cogeneration Company reported a high level of capabilities in three areas: 1) overall time management, 2) the planning of time usage, and 3) the assessment of time usage. Male and female workers possessed a statistically significant difference in overall time management capabilities. However, there were no statistically significant differences in the overall time management capabilities among workers of different ages, educational levels, and income levels.

Honesty is the Best Policy: Reality or Fallacy for Accounting Students?

Judith G. Sinaga, Victor C. Sinaga — Thu, 15 Oct 2020 00:00:00 +0700

The purpose of this study is to know the behavior of the accounting students during examinations. It also emphasizes on how the students conduct themselves in an ethical way. Since the school is a Christian institution, it is perceived that students would not attempt to misbehave during examinations. There are students who ignore the importance of values, such as honesty. Honesty is the best policy as always heard but in reality dishonesty exists during examinations. The result of the study showed that 34.9% practice honesty and 65.1% practice dishonesty. Students are motivated to act dishonestly (cheat) because of their aim to pass the examinations. Students have their own means of cheating, and by all means, they have to do something in order to get a good grade and not to repeat the subject at least. The result also showed that female students are more prone to cheating, 54% cheat during the examinations while 46% of the male students cheat. Educators must not tolerate cheaters. Consequences must be executed when students are caught cheating. There is a need to educate the accounting students in preparation for their profession otherwise, career is at stake. Ethical principles must be instilled in their minds, thoughts, and actions.

Relationship of Internal Audit Functions to Governance of Local Government Units

Janet N. Sabado, Reuel E. Narbarte, Robert A. Borromeo, Ruben Carpizo — Thu, 15 Oct 2020 00:00:00 +0700

The study determined the relationship between internal audit functions and governance in Local Government Units (LGUs) in Metro Manila, Philippines. The data were gathered from 510 employees of LGUs using stratified sampling. Majority ( 359 or 70.6%) of the respondents belonged to 31-50 years old; majority of them worked in finance (181 or 35.5%) and in social service provider department (179 or 35.1%) and were managers (44 or 8.6%), supervisors (188 or 36.9%), and in clerical position (278 or 54.5%). Results of the study revealed that the internal audit functions of the Internal Audit Units of the LGUs were very good. However, the respondents perceived that the internal audit units seldom retain an independent outlook in presenting their suggestions. The overall status of governance of LGUs included in the study was very good although they sometimes spend more than what they earned. Loans from private institutions are sometimes obtained. Further results revealed that all the dimensions of governance, i.e., financial management and reporting, delivery of basic services, legal compliance, and internal government were perceived very good but the respondents were most satisfied on financial management and reporting. There was a strong positive relationship of internal audit functions to governance. The findings showed that the predictors of governance included consulting services, assurance services, and age.

The Effect of Financial Ratios Towards Earning Per Share of Infrastructure Companies of the Indonesian Stock Exchange Infrastructure Sub Sector Indices

Francis M. Hutabarat, Maropen R. Simbolon — Thu, 15 Oct 2020 00:00:00 +0700

Indonesia is a develop country that had its ups-and-downs. The economic crisis on 2008 has suffered many countries. Suddenly the world stops to a glance of a promising new hope, which is Indonesia. A new-turn appears in the economy of Indonesia. Indonesia immediately showed great potential after becoming known in the international community. Indonesian Industries in the infrastructure sector is currently shows an up-trend and will probably continue to rise given the magnitude of the housing market and the need to build. Thus, the growing and development of infrastructure sector gives question to investor whether they can see the financial performance of the said company and how does it affect the Earning-per-share of the company. The purpose of the study is to find out whether the financial ratios are affecting Earning per share of Infrastructure companies listed in the Indonesian Stock Exchange. Based on the sample taken from annual report data from the 2008-2012 and analysis is used to estimate the relationship between the financial ratio and Earning-per-share. The results shows that there is a significant correlation of financial ratios namely return on equity (r = 0.887) on Earning per share of PT. Adhi Karya. The results are significant at Î± = 0.05. Therefore, this indicates that financial ratios of the company namely return on equity are able to predict the changes of Earning-per-share of PT. Adhi Karya. However, the rest of the companies shows that their financial ratios have no significant correlation towards the Earning-per-share of the companies.

CORPORATE GOVERNANCE STRUCTURE, DISCLOSURE AND INFORMATION ASYMMETRY IN INDONESIA BANKING INDUSTRY

Jenny Sihombing, Hisar Pangaribuan — Thu, 15 Oct 2020 00:00:00 +0700

The proper implementation good corporate governance mechanisms in the company will increase the level of disclosure. The direct relationship between corporate governance and information asymmetry stated that the implementation of good corporate governance will lead to reduce information asymmetry. One of the most fundamental components to be considered in implementation of good corporate governance is the establishment of effective corporate hierarchy. The purposes of this study are to find out the effect of corporate governance structure on information asymmetry, to find out the effect of corporate governance structure on disclosure, and to find out the effect of disclosure on information asymmetry in Indonesia banking industry. This study used partial least square/ variance based statistical method, with descriptive analitical research method. At significance level (Î±) of 10% resulted that corporate governance structure has a significant impact on disclosure in Indonesia banking industry (corporate governance structure represented by the indicator of audit committee member and independen board commissioner) and disclosure has a significant impact on information asymmetry in Indonesia banking industry (disclosure represented by the indicator of percentage corporate governance items disclosed or as IPCG).

Governing of the SDA higher education institutions in Indonesia: Problems and challenges

Stanley S. Nangoy — Thu, 15 Oct 2020 00:00:00 +0700

There are three SDA higher education institutions in Indonesia. All of them were built based on the distinctive characteristics of SDA philosophy of education however as time changes Indonesian SDA higher education institutions gradually shifted to the structure of the national system. Curriculum originally designed to gain accreditation by the GC-AAA status, began changing to meet the minimum requirements of the Indonesian Department of Education. Today these institutions are facing problems and challenges in dealing with policies regulating tertiary education.
The institutions’ principle of governance and policies are caught in between an idealized version of SDA denominationalism philosophy of Christian education and the government policies to regulate the country tertiary education.
This paper investigates the role of the tertiary institution board on important on three important issues: a. The roles, functions, responsibilities of the board and its members, b. Aligning church mission, visions, objectives to government regulations/restrictions and the market demand, c. Academic and finance pressures arising from the national accreditation requirements