International Journal of Business, Economics and Management

Published by: Conscientia Beam
Online ISSN: 2312-0916
Print ISSN: 2312-5772
Quick Submission    Login/Submit/Track

No. 4

Analysis of Credit Ratings Determinants: Evidences in Brazilian and American States

Pages: 248-260
Find References

Finding References


Analysis of Credit Ratings Determinants: Evidences in Brazilian and American States

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite

DOI: 10.18488/journal.62.2020.74.248.260

Nathalia Santos de Oliveira , Fabiano Guasti Lima , Carlos Alberto Grespan Bonacim , Rafael Confetti Gatsios , Alexandre Assaf Neto

Export to    BibTeX   |   EndNote   |   RIS

Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance, 23(4), 589-609.Available at: https://doi.org/10.1111/j.1540-6261.1968.tb00843.x.

Altman, E. I., Baidya, T. K., & Dias, L. M. R. (1979). Forecasting financial problems in companies. Business Administration Magazine, 19(1), 17-28.

Altman, E., & Katz, S. (1976). Statistical bond rating classification using financial and accounting data. (M. Schiff, & G. Sorter, Eds.). Paper presented at the Proceedings of the Conference on Topical Research in Accounting.

Beaver, W. (1966). Financial ratios as predictors of failure. Journal of Accounting Research, 4, 71-111.Available at: https://doi.org/10.2307/2490171.

Belkaoui, A. (1980). Industrial bond ratings: A new look. Financial Management, 9(3), 44-51.

Blume, M. E., Lim, F., & MacKinlay, A. C. (1998). The declining credit quality of US corporate debt: Myth or reality? The Journal of Finance, 53(4), 1389-1413.Available at: https://doi.org/10.1111/0022-1082.00057.

Bowman, W. Y. (1997). Evaluating local government financial health: Financial indicators for cook, DuPage, Kane, Lake, McHenry, & will counties (Executive Summary). The civic federation. Retrieved from https://www.civicfed.org . [Accessed August 17, 2019].

Brito, G. A., & Neto, A. A. (2008). Credit rating model for companies. Accounting and Finance USP, 19(46), 18-29.

Brito, G. A., Neto, A. A., & Corrar, L. J. (2009). Credit risk rating system an application to public companies in Brazil. Accounting & Finance Magazine - USP, 20(51), 28-43.

Brown, K. W. (1993). The 10-point test of financial condition: Toward an easy-to-use assessment tool for smaller cities. Government Finance Review, 9(6), 21-21.

Cambridge University Press. (1995). Cambridge University Press. Retrieved from https://dictionary.cambridge.org/pt/dicionario/ingles/stakeholder. [Accessed Novembro 04, 2019].

Damasceno, D. L., Artes, R., & Minardi, A. M. (2008). Determining the credit rating of Brazilian companies using accounting ratios. Administration Magazine, 43(4), 344-355.

Ederington, L. H. (1985). Classification models and bond ratings. Financial Review, 20(4), 237-262.Available at: https://doi.org/10.1111/j.1540-6288.1985.tb00306.x.

Fernandino, G. F., Takamatsu, R. T., & Lamounier, W. M. (2014). Impact of accounting ratios on credit rating application in Brazilian publicly traded companies. Accounting Vista & Revista, 25(3), 78-94.

Gitman, L. J. (1976). Principles of financial management (10th ed.). São Paulo: Pearson Universities.

Greene, W. H. (2003). Econometric analysis (5th ed.). Upper Saddle River: Prentice Hall.

Jorion, P. (2007). Value at risk: The new benchmark for managing financial risk (Vol. 3). New York: McGraw-Hill Companies.

Jorion, P., Shi, C., & Zhang, S. (2009). Tightening credit standards: The role of accounting quality. Review of Accounting Studies, 14(1), 123-160.Available at: https://doi.org/10.1007/s11142-007-9054-z.

Lima, F. G. (2018). Risk analysis (2nd ed.). São Paulo: Atlas.

Lima, F. G., Fonseca, C. V., Silveira, R. L., & Neto, A. A. (2018). The determinants of credit ratings of Brazilian banks. Contemporary Administration, 22(2), 178-200.

Macedo, J. D., & Corbari, E. C. (2009). Effects of the fiscal responsibility law on the debt of Brazilian Municipalities: An analysis of panel data. Accounting and Finance USP, 20(51), 44-60.

Markowitz, H. (1952). Março. Portfolio selection. The Journal of Finance, 7(1), 77-91.

Michel, A. J. (1977). Municipal bond ratings: A discriminant analysis approach. Journal of Financial and Quantitative Analysis, 12(4), 587-598.Available at: https://doi.org/10.2307/2330334.

Minardi, A. M., Sanvicente, A., & Artes, R. (2006). Business unit credit determination to estimate the cost of capital for third parties. Insper Working Paper No. (56).

Norcross, E., & Gonzalez, O. (2018). Ranking the states by fiscal condition. Mercatus research paper. Retrieved from SSRN: https://ssrn.com/abstract=3381208 or http://dx.doi.org/10.2139/ssrn.3381208 .

Ohlson, J. (1980). Financial ratios and the probabilistic prediction of bankruptcy. Journal of Accounting Research, 18(1), 109-131.Available at: https://doi.org/10.2307/2490395.

Petersen, J. E. (1977). Simplification and standardization of state and local government fiscal indicators. National Tax Journal, 30(3), 299-311.

Sales, B. F. (2006). Development of rating methodology based on the ordered probit model. Dissertation (Master in Finance and Business Economics), Federal University of Rio de Janeiro, Rio de Janeiro.  

Silveira, R. L., Lima, F. G., & Fonseca, C. V. (2017). An analysis of the determinants of credit ratings: Evidence among Brazilian non-financial companies. Paper presented at the USP Congress (FIPECAFI).

Soares, G. O., Coutinho, E. S., & Camargos, M. A. (2012). Credit rating determinants of Brazilian companies. Accounting Vista & Revista, 23(3), 104-143.

Thomas, H., & Wonnacott, R. J. (1972). Introductory statistics for business and economics (4th ed.). Nova Jersey, EUA: John Wiley & Sons.

Zehms, K. M. (1991). Proposed financial ratios for use in analysis of municipal annual financial reports. The Government Accountants Journal, 40(1), 79-86.

Zuccolotto, R., Ribeiro, C. P., & Abrantes, L. A. (2008). The composize of municipal public finances in the capitals of Brazilian states. Paper presented at the 15th Brazilian Congress on Costs.

No any video found for this article.
Nathalia Santos de Oliveira , Fabiano Guasti Lima , Carlos Alberto Grespan Bonacim , Rafael Confetti Gatsios , Alexandre Assaf Neto (2020). Analysis of Credit Ratings Determinants: Evidences in Brazilian and American States. International Journal of Business, Economics and Management, 7(4): 248-260. DOI: 10.18488/journal.62.2020.74.248.260
This piece of work, due to its relevance, aims to analyze the methodology used in the determining of ratings, not only expanding the number of variables tested and broadening the discussion on rating determinants, but also using variables which solely measure the market, liquidity credit and operational risks. Thus, the risks mentioned were compared to the ratings set for each Brazilian state from 2013 to 2017 (post-adoption of the MCASP accounting standard for financial statements) and for each American state from 2006 to 2016 (the most recently published financial datum). In face of that, this work is different from the others because it seeks to broaden the researches and the methods used in public listed companies or in financial companies, in public finances of Brazilian and American states, a subject which is little approached in researches. The ordered logit model was used since the credit rating is considered latent variables, besides following an ordinal version. The study was carried out with 50 American states, 26 Brazilian states and 648 ratings altogether. The model proposed in this work proved to be efficient, being able to successfully estimate 64.10% of the sample of the Brazilian states and 68.50% of the sample of the American states. The results reached are specially relevant for stakeholders, who are able to analyze or manage their possible investments regarding risk and return.
Contribution/ Originality
This study contributes in the existing literature to answer which drivers explain the ratings of the Brazilian and American states. This paper is different from the others because it broadens the researches regarding credit ratings determinants since the method used by rating agencies is not transparent with regard to the rating definition process.

Effect of Savings Deposit Rate on Stock Market Capitalization in Nigeria: An Empirical Investigation

Pages: 239-247
Find References

Finding References


Effect of Savings Deposit Rate on Stock Market Capitalization in Nigeria: An Empirical Investigation

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite

DOI: 10.18488/journal.62.2020.74.239.247

Gbalam Peter Eze , Nelson Johnny

Export to    BibTeX   |   EndNote   |   RIS

Abina, A. P., & Maria, L. G. (2019). Capital market and performance of Nigeria economy. International Journal of Innovative Finance and Economics Research, 7(2), 51-66.

Abraham, T. W. (2016). Exchange rate policy and falling crude oil prices: Effect on the Nigerian stock market. CBN Journal of Applied Statistics, 7(1), 111-123.

Acha, I. A., & Akpan, S. O. (2019). Capital market performance and economic growth in Nigeria. Noble International Journal of Economics and Financial Research, 4(2), 10-18.

Adekunle, O., Adodo, L. F., & Akindutire, T. (2018). Interest rate and growth nexus in Nigeria. International Journal of Business Management and Technology, 2(4), 80-87.

Agu Bertram, O. (2018). Economic growth and capital market development in Nigeria an appraisal. Economic Research, 2(4), 27-38.Available at: https://doi.org/10.29226/tr1001.2018.28.

Akpansung, A. O., & Babalola, S. J. (2011). Banking sector credit and economic growth in Nigeria: An empirical investigation. CBN Journal of Applied Statistics, 2(2), 51-62.

Asaolu, T., & Ilo, B. (2012). The Nigerian stock market and oil price: A cointegration analysis. Kuwait Chapter of Arabian Journal of Business and Management Review, 33(834), 1-16.

Azeez, B. A., & Obalade, A. A. (2019). Macroeconomic determinants of stock market development in Nigeria. Economica, 15(1), 203-216.

Demir, C. (2019). Macroeconomic determinants of stock market fluctuations. Economies, 7(8), 1-14.Available at: https://doi.org/10.3390/economies7010008.

Edirin, J., & Ekwueme, C. M. (2015). Interest rate regime and the performance of the Nigerian capital market. Studies and Scientific Researches, 1(22), 43-54.

Eriemo, O. N. (2014). An empirical analysis of the determinants of market capitalization in Nigeria. Developing Country Studies, 4(7), 67-78.

Etale, L. M., & Tabowei, P. I. (2019). Macroeconomic determinants of market capitalization in Nigeria: A further investigation. International Journal of Quantitative and Qualitative Research Methods, 7(4), 11-25.

Farooq, F., Anwar, S., & Chaudhry, I. S. (2016). Impact of interest rate differentials on market capitalization in Pakistan: An empirical analysis. Pakistan Journal of Commerce and Social Sciences (PJCSS), 10(3), 687-707.

Khrawish, A. H., Siam, W. Z., & Jaradat, M. (2016). The relationships between stock market capitalization rate and interest rate: Evidence from Jordan. Business and Economic Horizons, 2(2), 60-66.

Najaf, R., & Najaf, K. (2016). An empirical study on the dynamic relationship between crude oil prices and Nigeria stock market. Journal of Tourism & Hospitality, 5(5), 1-5.

Nazir, M. S., Nawaz, M. M., & Gilani, U. J. (2010). Relationship between economic growth and stock market development. African Journal of Business Management, 4(16), 3473.

Njemcevic, F. (2017). Capital market and economic growth in transition countries: Evidence  from South East Europe. Journal of International Business Research and Marketing, 2(6), 15-22.Available at: https://doi.org/10.18775/jibrm.1849-8558.2015.26.3002.

Nwaolisa, E. F., Kasie, E. G., & Egbunike, C. F. (2013). The impact of capital market on the growth of the Nigerian economy under democratic rule. Oman Chapter of Arabian Journal of Business and Management Review, 34(983), 1-10.

Obubu, M., Konwe, C., Nwabenu, D., Omokri, P., & Chijioke, M. (2016). Evaluation of the contribution of Nigerian stock market on economic growth; Regression approach. European Journal of Statistics and Probability, 4(5), 11-27.

Olufisayo, O. A. (2014). Oil price and stock market: Empirical evidence from Nigeria. European Journal of Sustainable Development, 3(2), 33-40.Available at: https://doi.org/10.14207/ejsd.2014.v3n2p33.

Pavone, P. (2019). Market capitalization and financial variables: Evidence from Italian listed companies. International Journal of Academic Research in Business and Social Sciences, 9(3), 1356 - 1371.Available at: https://doi.org/10.6007/ijarbss/v9-i3/5802.

Priscilla, C. I., & Ezeanyeji, C. I. (2019). Financial development and economic growth nexus  in Nigeria. International Journal of Business and Management Invention, 8(3), 50-63.

Raza, H., Hena, S., & Saeed, A. (2017). The effects of interest rate, on savings and deposits in Pakistan. International Journal of Business and General Management, 6(6), 67-74.

Sharif, A., & Afshan, S. (2016). Impact of stock market on economic growth of Pakistan. International Journal of Economics and Empirical Research, 4(10), 562-570.

Tile, E., Aime, A., & Kase, J. (2018). Macroeconomic variables and its impact on capital market development in Nigeria. International Journal of Business, Economics and Entrepreneurship Development in Africa, 10(5), 27-44.

Tsaurai, K. (2014). Stock market and foreign direct investment in Zimbabwe. Risk Govenance and Control: Finance and Institutions, 4(2), 53-60.Available at: https://doi.org/10.22495/rgcv4i2art4.

Ubesie, M. C., & Ude, M. E. (2019). Responsiveness of capital market on the output of manufacturing firms in Nigeria. International Finance and Banking, 6(1), 17-30.Available at: https://doi.org/10.5296/ifb.v6i1.14693.

Ugbogbo, S. N., & Aisien, L. N. (2019). Capital market development and economic growth in Nigeria. International Journal of Development and Management Review, 14(1), 14-24.

Ugherughe, J. E., & MaryAnn, N. I. (2019). Stock market indicators and human development index in Sub-Saharan Africa: The case of mauritius, Nigeria and South Africa. Journal of Financial Mark, 3(3), 28-39.

Utile, B. J., Okwori, A. O., & Ipkambese, M. D. (2018). Effect of interest rate on economic  growth in Nigeria. International Journal of Advanced Academic Research, 4(1), 66-76.

No any video found for this article.
Gbalam Peter Eze , Nelson Johnny (2020). Effect of Savings Deposit Rate on Stock Market Capitalization in Nigeria: An Empirical Investigation. International Journal of Business, Economics and Management, 7(4): 239-247. DOI: 10.18488/journal.62.2020.74.239.247
This research plan is prepared to find out the impact of savings deposit rate on security market capitalization in Nigeria. The inquiry plan employed monthly data between January 2016 and December 2019. The data were collected from the publications of the National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN). Variables on which data were sourced are stock market capitalization (MCAP), savings deposit rate (SDR) and bank lending rate (BLR) as a control variable. The data analysis was done via descriptive tools, Johansen cointegration test, ADF test of unit root and regression procedure. The investigation discovered a significant inverse association among savings deposit rate and security market capitalization. The research also discovered insignificant negative link between bank lending rate and stock market capitalization in Nigeria. The overall equation judging from the R2, Durbin-Watson statistics and F-statistics is significant. It is thus recommended that, at anytime the country intend to raise the level of stock market capitalization, government should formulate and implement policies to reduce savings deposit rate in Nigeria. Government should also implement policies to reduce bank lending rate to boast economic growth and as well raise the level of stock market capitalization in Nigeria.
Contribution/ Originality
This study is one of very few studies which have investigated the effect of savings deposit rate on stock market capitalization in Nigeria. This study contributes in the existing literature is to be a reference for further researchers who want to deepen or re-examine the effect of savings deposit rate on stock market capitalization.

The Impact of Social Media on Economic Growth: Empirical Evidence of Facebook, YouTube, Twitter and Pinterest

Pages: 222-238
Find References

Finding References


The Impact of Social Media on Economic Growth: Empirical Evidence of Facebook, YouTube, Twitter and Pinterest

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite

DOI: 10.18488/journal.62.2020.74.222.238

Prince Asare Vitenu-Sackey

Export to    BibTeX   |   EndNote   |   RIS

Beck, N., & Katz, J. N. (1995). What to do (and Not to Do) with time-series cross-section data. American Political Science Review, 89(3), 634–647.Available at: https://doi.org/10.2307/2082979.

Berger, A. N., & Di Patti, E. B. (2006). Capital structure and firm performance: A new approach to testing agency theory and an application to the banking industry. Journal of Banking and Finance, 30(4), 1065-1102.Available at: https://doi.org/10.1016/j.jbankfin.2005.05.015.

Cheng, C., Ren, X., & Wang, Z. (2019). The impact of renewable energy and innovation on carbon emissions: An empirical analysis for OECD countries. Energy Procedia, 158, 3506 – 3512.Available at: https://10.1016/j.egypro.2019.01.919.

Czernich, N., Falck, O., Kretschmer, T., & Woessmann, L. (2011). Broadband infrastructure and economic growth. The Economic Journal, 12(552), 505–532.Available at: https://doi.org/10.1111/j.1468-0297.2011.02420.x.

Dell'Anno, R., Rayna, T., & Solomon, H. (2016). Impact of social media on economic growth - evidence from social media Applied Economics Letters, 23(9), 633-636.Available at: https://dx.doi.org/10.1080/13504851.2015.1095992.

Koenker, R., & Bassett, J. G. (1978). Regression quantiles. Econometrica, 46(1), 33-50.Available at: https://doi.org/10.2307/1913643.

Koenker, R. (2004). Quantile regression for longitudinal data. Journal of Multivariate Analysis, 91(1), 74 -89.

Lamarche, C. (2011). Measuring the incentives to learn in Colombia using new quantile regression approaches. Journal of Development Economics, 96(2), 278-288.Available at: https://doi.org/10.1016/j.jdeveco.2010.10.003.

Ortiz-Ospina, E. (2019). The rise of social media. Retrieved from: https://ourworldindata.org/rise-of-social-media

Rayna, T., & Striukova, L. (2010). Web 2.0 is cheap: Supply exceeds demand. Prometheus, 28(3), 267–285.Available at: https://doi.org/10.1080/08109028.2010.522332.

Statcounter. (2020). Social media statistics. Retrieved from: https://gs.statcounter.com/social-media-stats.

Tarek, A.-K. L. S., Raihan, S. M. Z., & Duasa, J. (2014). The relationship between capital structure and performance of Islamic banks. Journal of Islamic Accounting and Business Research, 5(2), 158–181.Available at: https://doi.org/10.1108/JIABR‐04‐2012‐0024.

Zhu, H., Duan, L., Guo, Y., & Yu, K. (2016). The effects of FDI, economic growth and energy consumption on carbon emissions in ASEAN-5: Evidence from panel quantile regression. Economic Modelling, 58, 237-248.Available at: https://doi.org/10.1016/j.econmod.2016.05.003.

No any video found for this article.
Prince Asare Vitenu-Sackey (2020). The Impact of Social Media on Economic Growth: Empirical Evidence of Facebook, YouTube, Twitter and Pinterest. International Journal of Business, Economics and Management, 7(4): 222-238. DOI: 10.18488/journal.62.2020.74.222.238
The study assessed the impact of social media on economic growth in a global perspective hence the use of 198 countries as sample for the period 2009 - 2017. The study utilised and adopted panel data methodologies such as panel corrected standard errors, two-stage least square and panel quantile regression methods for its regression analysis. The study’s theoretical basis was on the endogenous growth model. The findings of the study support the two hypothesis that exist between social media and economic growth nexus. In relevance, the study concludes that social media has both positive and negative impact on economic growth perhaps fixed broadband, number of internet users and secure internet servers are the major drivers of social media. In particular, the study found that Facebook and Pinterest negatively affect economic growth as this finding is in support of the second hypothesis of social media and economic growth nexus. The positive relationship finding supports the first hypothesis that the abolishment of barriers to entry to enable users of social media to publish and disseminate information without any limitations with the support of proper and efficient internet and broadband supply then social media could positively affect economic growth because the multiplicity of media such as wikis, blogs, pictures, videos etc. to a large extent propel the potential of social media in relation to dissemination of information and knowledge whereas ensuring a multi-channel diffusion and codification of knowledge as YouTube and Twitter showed positive and significant impact on economic growth.
Contribution/ Originality
This study contributes in the sparse literature on the nexus between social media and economic growth specifically the individual effects of social media platforms. The study’s focus was on Facebook, Twitter, YouTube and Pinterest. However, the endogenous growth theory or model was used as the study’s theoretical basis.

Determinants of Profitability and its Implications on Corporate Values (Studies at Ceramic, Porcelain and Glass Sub Sector Listed in Indonesia Stock Exchange, 2009 - 2018)

Pages: 211-221
Find References

Finding References


Determinants of Profitability and its Implications on Corporate Values (Studies at Ceramic, Porcelain and Glass Sub Sector Listed in Indonesia Stock Exchange, 2009 - 2018)

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite

DOI: 10.18488/journal.62.2020.74.211.221

Bambang Mulyana , Benis Adidarma

Export to    BibTeX   |   EndNote   |   RIS

Brealey, R. A., Myers, S. C., & Marcus, A. J. (2007). Fundamentals of corporate financial management (5th ed.). Jakarta: Erlangga.

Fama, E. F., & French, K. R. (1998). Taxes, financing decisions, and firm value. The Journal of Finance, 53(3), 819-843.Available at: https://doi.org/10.1111/0022-1082.00036.

Ghozali, I. (2011). Application of multivariate analysis with SPSS program. Semarang: Diponegoro University.

Gujarati, D. N., & Porter, D. C. (2010). Basics of econometrics, Book (Vol. 5). Jakarta: Salemba Empat (Original Work published 2009).

Hani, S. (2015). The techniques of financial statement analysis (1st ed.). Medan: UMSU Press.

Horne, V. W. (2005). Fundamental of financial management (4th ed.). Jakarta: Salemba Empat.

Jensen, M. C. (2001). Value maximization, stakeholder theory, and the corporate objective function. Journal of Applied Corporate Finance, 14(3), 8-21.

Kesuma, A. (2009). Analysis of factors affecting capital structure and its effect on the stock prices of go-public real estate companies on the IDX. Journal of Management & Entrepreneurship, 2(1), 38–45.

Mafirotul, U., Puspitaningtyas, Z., & Bidhari, S. C. (2016). The effect of rupiah-dollar exchange rate fluctuations on the profitability of manufacturing companies listed on the indonesia stock exchange in the 2010-2014 period. Journal of Economics & Business, 10(2), 131-142.

Parminto, A., Djoko, S., & Jhonny, S. (2016). The effect of capital structure, firm growth and dividend policy on profitability and firm value of the oil palm plantation companies in Indonesia. Doctoral Management Program, Faculty of Economics and Business, Mulawarman University, Indonesia.  

Shintya, M. N., Situmorang, M., & Iryani, L. D. (2015). Analysis of the effect of leverage and sales growth on profitability in cosmetics sub sector companies listed on the Indonesia stock exchange. Student Online Journal in Accounting, 2(2), 7 - 9.

Sinambela, L. P. (2014). Quantitative research methodology. Yogyakarta: Graha Ilmu.

Suad, H. (2003). Financial management theory and application (Short-term decisions) (4th ed.). Yogyakarta: BPFE.

Tika, Kartika, A., & Pratama, I. (2012). Influence of financial performance, good corporate governance on food and beverages company value. Journal of Management and Entrepreneurship, 14(2), 118-127.

Wulandari. (2017). Effect of liquidity and capital structure on profitability in the pulp and paper industry registered on the Indonesia stock exchange. Student Journal On line FISIP, 4(2), 9 -10.

Yulia, W., Putra, A. A., & Badjra, I. B. (2015). Effect of leverage, sales growth and firm size on profitability. Eud Management E-Journal, 4(7), 2052-2067.

No any video found for this article.
Bambang Mulyana , Benis Adidarma (2020). Determinants of Profitability and its Implications on Corporate Values (Studies at Ceramic, Porcelain and Glass Sub Sector Listed in Indonesia Stock Exchange, 2009 - 2018). International Journal of Business, Economics and Management, 7(4): 211-221. DOI: 10.18488/journal.62.2020.74.211.221
This study aims to analyse the effects on the profitability (return on assets) and its implications on corporate value by internal influences (current ratio, leverage and sales growth) and external influences (IDR exchange rate and energy price). The object of research is ceramics, porcelain and glass industries registered in the Indonesian stock exchange with total 8 industries in the period 2009 – 2018. The methodology used is descriptive quantitative research and causality with purposive sampling technique and panel data regression analysis. The result of the study indicated that liquidity and energy price did not have a significant negative effect on profitability, leverage had a significant negative effect on profitability, sales growth had a significant positive effect on profitability, and IDR change rate did not have a significant positive effect on profitability. While profitability has significant positive effect on corporate value.
Contribution/ Originality
This study is one of very few that has investigated the causal relationship between internal and external influence at ceramic, porcelain and glass manufacturing that very impact to production cost and profitability. Consequently, it highlights that very importance of improving efficiency of energy and manage financial ratio to increase profitability.

Fraud Auditing Law Implications in the Case of Jiwasraya Insurance in Indonesia

Pages: 203-210
Find References

Finding References


Fraud Auditing Law Implications in the Case of Jiwasraya Insurance in Indonesia

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite

DOI: 10.18488/journal.62.2020.74.203.210

Ariella Gitta Sari

Export to    BibTeX   |   EndNote   |   RIS

ACFE (Association Certifield Fraud Examination). (2019). Fraud examiners manual, international edition. Asia-Pasific@ ACFE.com. The Gregor Builiding-West Ave: ACFE. Retrieved from: https://www.acfe.com/products.aspx?zid=2c92a00e6a07e354016a272c4ed755e5.

Agoes, S. (2004). Auditing (Internal Checks) by the public accounting firm [Auditing (Internal Audit) (Vol. 1). Jakarta: Fakultas Ekonomi Universitas Indonesia.

Arora, A., & Sharma, C. (2016). Corporate governance and firm performance in developing countries: Evidence from India. Corporate Governance, 16(2), 420-436.Available at: https://doi.org/10.1108/CG-01-2016-0018.

Bologna, G. J., & Robert, J. L. Q. (1999). Fraud audit and audit forensics. Yogyakarta. Edisi Kedua: BPKP.

Chatfield, M. (1996). Mckensson & Robbins case. In history of accounting: An international encyclopedia, ed. Michael Chatfield and Richard V. New York: Garland Publishing.

Chiang, C. C., & Korol, K. (2017). Fraud auditing in the Era of big data. Retrieved from: https://scholarspace.manoa.hawaii.edu/handle/10125/51929.

Chinn, R., & Jones, M. E. (2000). The corporate governance handbook. London: Gee Publishing Ltd.

CNN Indonesia.com. (2019). Chronology of OJK's chronology of OJK version of Jiwasraya failed case. Retrieved from https://www.cnnindonesia.com/ekonomi/20191230095752-78-460918/kronologi-kasus-gagal-bayar-jiwasraya-versi-ojk.

Cressey, D. R. (1953). Other people's money. Dechow, Patricia M. (pp. 1-. 300). Montclair, NJ: Patterson Smith.

Darmawan, D., & Abdi, D. (2017). Development of financial report quality improvement methods at PT Pelabuhan Indonesia IV Based on good corporate governance in the Municipality of parepare. Journal of Economic Development of STIE Muhammadiyah Palopo, 3(2), 109-117.

Donelson, D. C., Ege, M. S., & McInnis, J. M. (2017). Internal control weaknesses and financial reporting fraud. Auditing: A Journal of Practice & Theory, 36(3), 45-69.Available at: https://doi.org/10.2308/ajpt-51608.

Gonzalez, G. C., & Hoffman, V. B. (2018). Continuous auditing's effectiveness as a fraud deterrent. Auditing: A Journal of Practice & Theory, 37(2), 225-247.Available at: https://doi.org/10.2308/ajpt-51828.

Harahap, M. Y. (2008). Civil procedure code cet. 8. Jakarta: Sinar Grafika.

Ibrahim, J. (2006). Theories and methods of normative legal research. Malang: Bayumedia Publishing.

Karyono. (2013). Forensic fraud. Ed. I. Yogyakarta: ANDI.

Kozuma, T. (2017). Good corporate governance. Retrieved from https://kumparan.com/teddy-kozuma/good-corporate-governance.

Lozano, M. B., Martínez, B., & Pindado, J. (2016). Corporate governance, ownership and firm value: Drivers of ownership as a good corporate governance mechanism. International Business Review, 25(6), 1333-1343.Available at: https://doi.org/10.1016/j.ibusrev.2016.04.005.

Montgomery, D., Beasley, M., & Menelaides, S. (2002). Auditors' new procedures for detecting fraud. Journal of Accountancy, 193(5), 63-66.

Muda, I., Maulana, W., Sakti Siregar, H., & Indra, N. (2018). The analysis of effects of good corporate governance on earnings management in Indonesia with panel data approach. Iranian Economic Review, 22(2), 599-625.

Mulyadi. (2013). Auditing book I Ed. 6. Jakarta: Salemba Empat.

Norden, L., & Moura, L. (2019). Does good corporate governance pay off in the long-run? Evidence from stock market segment switches in Brazil. Brazilian Review of Finance, 17(3), 1-25.

Petrie, E., & Evans, C. (2017). An intelligence led approach to addressing cyber fraud: Proactive fraud auditing. Journal of Financial Compliance, 1(1), 64-71.

Putra, G. S. A., & Dwirandra, A. A. N. B. (2019). The effect of auditor experience, type of personality and fraud auditing training on auditors ability in fraud detecting with professional skepticism as a mediation variable. International Research Journal of Management, IT and Social Sciences, 6(2), 31-43.Available at: https://doi.org/10.21744/irjmis.v6n2.604.

Rodriguez-Fernandez, M. (2016). Social responsibility and financial performance: The role of good corporate governance. BRQ Business Research Quarterly, 19(2), 137-151.Available at: https://doi.org/10.1016/j.brq.2015.08.001.

Salman, K. (2007). Invetigarif audit (Effective Method in Disclosing Fraud). Paper presented at the Widyatama Hand Out Seminar.

Simeunović, N., Grubor, G., & Ristić, N. (2016). Forensic accounting in the fraud auditing case. The European Journal of Applied Economics, 13(2), 45-56.

Soemitro. (1998). Legal research methods and jurimetry. Jakarta: Ghalia.

Tempo.co.id. (2020). Danger of the Jiwasraya case. Retrieved from https://kolom.tempo.co/read/1294459/bahaya-kasus-jiwasraya/full&view=ok.

Viva.co.id. (2018). OJK finds 21 Pseudo trades in the capital market since the beginning of 2018. Retrieved from https://www.viva.co.id/berita/bisnis/1063597-ojk-find-21-perdagang-semu-di-pasar-modal-sejak-awal-2018.

Wartaekonomi.co.id. (2019). Seize public attention, this is a series of the Jiwasraya case. Retrieved from https://www.wartaekonomi.co.id/read263479/sita-perhatian-publik-ini-sederet-fakta-kasus-jiwasraya. [Accessed 26 December 2019].

Wartaonomi.co.id. (2019). What is fried stock? Retrieved from https://www.wartaekonomi.co.id/read263853/apa-itu-saham-gorengan. [Accessed December 28, 2019].

Widiatmika, P. H., & Darma, G. S. (2018). Good corporate governance, job motivation, organization culture which impact company financial performance. Journal of Business Management, 15(3), 82-99.

No any video found for this article.
Ariella Gitta Sari (2020). Fraud Auditing Law Implications in the Case of Jiwasraya Insurance in Indonesia. International Journal of Business, Economics and Management, 7(4): 203-210. DOI: 10.18488/journal.62.2020.74.203.210
The Jiwasraya case is a fraud auditing legal case that has taken a lot of public attention and is particularly influential on capital market investors. The purpose of this study is to find out the legal implications of the Limited Company case and preventive measures that can be taken so that similar cases are no longer repeated. By using normative and empirical research methods, the study presents the conclusions that it is very important training in fraud detection and prevention especially for internal auditors in the Limited Company. In this case, being cautious in investing to avoid "fried" shares is an important lesson for other companies. Based on the Jiwasraya case empirical study where only recently detected cases of corporate asset fraud revealed the facts about the lack of a comprehensive understanding of fraud auditing, technology implementation, and corporate management mechanisms that are not in accordance with Good Corporate Governance in the corporate body.
Contribution/ Originality
This study is one of the few studies that have been investigated about cases of a lack of comprehensive stakeholder understanding of fraud auditing, technology implementation, and corporate management mechanisms that are not in accordance with Good Corporate Governance in the corporate body.