Indonesia Conference Directory

Corresponding Author
Ardie Nirvansyah

Institutions
Universitas Indonesia

Abstract
Expected returns are a central input in asset allocation decisions and understanding the drivers of expected-returns variations has been coined the “central organizing question” in modern empirical asset pricing research (Cochrane, 2011). Log-Linear Present Value (LPV) framework offers a more parsimonious accounting-based approach for the estimation of expected returns across international markets. This paper will compare how optimal portfolio can be made based off LPV framework which will be compared to the more established Fama-French Five Factors model. The research uses sample of stocks in Indonesian Stock Exchange with observation period of five years, starting from November 2014. Portfolio was formed from selection of 50 stocks using Sharpe ratio as proxy for optimal reward-to-risk ratio. The research finding suggests that Fama French Five Factors model shows superior portfolio.

Keywords
Optimal Portfolio, Log-Linear Present Value, Fama-Frnehc

Topic
Finance

Link: https://ifory.id/abstract/kqWHKdY7eRhp

Corresponding Author
Isfenti Sadalia

Institutions
1,2,3) Department of Magister Management, Universitas Sumatera Utara, Jalan Sivitas Akademika, Medan 20155, Indonesia
*isfentisadalia[at]gmail.com

Abstract
Entering that revolution 4.0 financial industry must be able to implement several digital-based technologies including block chains, big files and robo advisers. Likewise in the trade sector where consumer payment instruments need to be more advanced such as online crowd funding and peer to peer payments. Disruptive innovation can help create new markets which eventually replace the previous technology. Companies must compete to provide a variety of innovative business model development technologies to exploit old technology in a new, better approach. Dynamic financial technology must be able to innovate that focuses on technology in marketing each of its products. This study uses quantitative methods with a sample of 200 conventional and sharia customers. The data that has been obtained is then processed using the WarpPLS software. Therefore, this study concludes that to improve product marketing in the financial sector, companies must consider the existence of disruptive innovation and financial technology for corporate progress. It is hoped that the implications of this research can improve customer service satisfaction in the banking sector.

Keywords
Financial Technology, Disruptive Innovation, Business Model Factors, Banking

Topic
Finance

Link: https://ifory.id/abstract/7X9bQmR4AfVY

Corresponding Author
Winalda Perdana

Institutions
Department of Management, Faculty of Economics and Business, Universitas Indonesia

Abstract
This study investigates the impact of corporate social responsibility performance on banks soundness in Indonesian bank during period 2008-2016. Using the OECD standards as CSR scoring indicator, this study found that corporate social responsibility performance have positive impact on banks profitability performance. CSR may affect both the cost and revenue. Although costs increase, revenues increase even more. Therefore, banks in Indonesia have to improve its CSR performance in order to increase its financial performance.

Keywords
corporate social responsibility, bank soundness, Indonesia

Topic
Finance

Link: https://ifory.id/abstract/gGMY4qDUJeWA

Corresponding Author
Ruri Eka Fauziah Nasution

Institutions

Rofikoh Rokhim
Universitas Indonesia

Ruri Eka Fauziah Nasution
Durham University

Asiah Muchtar
Sciences Po

Wahyudi Thohary
Transparancy International

Abstract
One possible indicator for measuring the local governments- corruption eradication performance in Indonesia is the Corruption Perception Index (CPI) published by the Transparency International Indonesia (TII). This paper attempts to provide an overview of CPI scoring trends for 10 cities (Medan, Padang, Bandung, Semarang, Surabaya, Banjarmasin, Pontianak, Makassar, and Manado). Two different periods are assessed in this research: 2004-2010 and 2014-2016. By using a descriptive analysis approach, this research finds that Banjarmasin, Padang, and Manado are the top three cities with the highest average CPI scores in 2004-2010. Meanwhile, Pekanbaru, Pontianak, and Manado are the three lowest-scoring cities. In 2014-2016, several cities such as Surabaya and Pontianak have a significant increase in their CPI scores, placing Banjarmasin, Surabaya, and Pontianak in the top three. On the other hand, the average CPI scores of several cities such as Padang, Makassar, and Manado significantly decline. In addition, this research also maps the central allocation funds for local governments and the Locally-Generated Revenues (PAD) against the levels of corruption. As a matter of fact, the regions with the smallest allocations tend to have higher CPI scores. Further, the regions with higher CPI scores also have higher Locally-Generated Revenues. However, these findings lack empirical evidence due to limited data.

Keywords
Corruption, decentralization, Corruption Perception Index (CPI).

Topic
Finance

Link: https://ifory.id/abstract/m9zhLdF3WR2H

Corresponding Author
Christine Juliana Hakim

Institutions
a) Graduate Program of Management, Faculty of Economic and Business, Universitas Indonesia, Salemba Raya, Indonesia
b) Department of Management, Faculty of Economic and Business, Universitas Indonesia, Salemba Raya, Indonesia

Abstract
The soundness of the bank can describe the ability of a bank in dealing with various potential risks that may be put in the bank at default. The study examines the significant impact of the credit growth that occurred in ASEAN during 2013-2017 towards banking health. Measurement of this paper using empirical tests using panel data regression with fixed effect technique. The result shows that credit growth in ASEAN does not affect the health of the banking industry. Meanwhile, there was another independent variable that affected bank soundness such as loan to deposit, the business model of the bank and bank capitalization.

Keywords
Credit growth, bank soundness, ASEAN

Topic
Finance

Link: https://ifory.id/abstract/bdBCHfN6R3yv

Corresponding Author
Christine Juliana Hakim

Institutions
a) Graduate Program Student of Management, Faculty of Economics and Business, Universitas Indonesia, Depok, Indonesia
*christine.juliana.hakim[at]gmail.com
b) Department of Management, Faculty of Economics and Business, Universitas Indonesia, Depok, Indonesia

Abstract
Credit growth can be likened to a double-edged sword that is able to illustrate the contradictions of the resulting impact. Sometimes credit growth becomes to be credit booms and lead to major events such as the debt crisis in the 1980s, the exchange rate crisis in 1992, Sudden Stops in the 1990s and the global financial crisis in 2008. The events made an own dilemma: if there was a policy of reducing credit that aims to prevent credit boom in developing countries can hamper economic growth. The study aims to analyze the siginificance of impact of the credit growth that occurred in ASEAN during 2013-2017 towards financial fragility. This study uses empirical tests using panel data regression. The result shows that credit growth in ASEAN has a significant effect on financial fragility

Keywords
Credit Growth, Financial Fragility, ASEAN

Topic
Finance

Link: https://ifory.id/abstract/QPdqmcj3nN97

Corresponding Author
Chairilisa Azzahra

Institutions
a) Faculty of Economics and Business
University of Indonesia
Depok, Indonesia
a) Faculty of Economics and Business
University of Indonesia
Depok, Indonesia

Abstract
Financial inclusion has become an interested issue and an important public policy priority following the recent global financial crisis. In Indonesia, government, banking sector and other related parties have focus to achieve higher rate of financial inclusion through various ways. This paper measure the index of financial inclusion in Indonesia covering three dimensions; accessibility, availability and the usage of banking services and also to see the level of financial inclusion in banking industry, considering the banking sector has an important role in driving the increase in the level of financial inclusion. To measure the index of financial inclusion we use a methodology that was proposed by Sarma (2012). We also attempt to identify the factors: banking variables and macro economic factors that are associated with banking financial inclusion in Indonesia. The results show that nowdays Indonesia has a high level of financial inclusion and following by ten banks with high IFI values categories are the banks with the largest assets in Indonesia.

Keywords
Financial inclusion; index of financial inclusion; banking services

Topic
Finance

Link: https://ifory.id/abstract/YKpWbB3Urt4V

Corresponding Author
Nahla Nurusshafa

Institutions
Universitas Indonesia

Abstract
Bank and Non-Bank Financial Institutions that are engaged in loan services are required by regulators to control risks and at the same time have mechanisms in place to mitigate these risks. The Indonesian Financial Service Authority (Otoritas Jasa Keuangan-OJK) issued regulation number 1 POJK.05 concerning risk management of Non-Bank Financial Institutions. Whereas Bank Indonesia previously issued Regulation No. 11/25 / PBI / 2009 as an effort to control the credit risk of finance companies. The implementation of these two recent regulations present an interesting research puzzle, particularly with regard to how micro and ultramicro credit institutions are managed, as the regulations ultimately result in the elimination of the use of collateral for credit assessments. In light of these recent developments and the seemingly redundant role that collateral assessments play, it is thus important to review the additional and most recent factors that may cause unsecured credit from ultramicro credit institutions. The sample used within this study involved 949 pre-prosperous women who were Mekaar customers of PT Permodalan Nasional Madani (PNM). This sample represents 34 Mekaar operational areas in Indonesia. We divided the data into two data groups, namely 258 customers including within the default category and 691 customers within the non-default category. By using the probit estimation method, this study shows the probability of default on loan payments at Mekaar. The results indicate that the time period of the loan, the loan cycle, age, and marital status of the loan recipient, affects the probability of default, whilst the credit amount was not found to significantly affect the probability of default.

Keywords
credit scoring, microfinance, probit, loan repayment, probability to default

Topic
Finance

Link: https://ifory.id/abstract/bnrGjLmJwafH

Corresponding Author
Febrio Giring Tolangga

Institutions
a) Department of Management, Faculty of Economics and Business, Universitas Indonesia
*rofikoh.rokhim[at]ui.ac.id; febrio.giring[at]ui.ac.id
b) Tilburg School of Economics and Management, Tilburg University
* m.r.astrini[at]tilburguniversity.edu

Abstract
This study investigates whether oil price has significant effect to the financial soundness of firms in transportation sector of 6 ASEAN countries, which are Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. In terms of operational activities, transportation sector is one of the most dependent sectors for oil usage. Therefore, oil price changes will create big impacts to the operational costs of transportation firms. Using panel data estimators, the researchers find that oil price change affects the financial soundness of transportation firms with return on equity as the mean of measurement. Furthermore, in addition to oil price change, researchers also find the effect of firm size and macroeconomic conditions to the financial soundness of transportation firms.

Keywords
Oil price; oil price volatility; financial soundness; financial performance

Topic
Finance

Link: https://ifory.id/abstract/yx92hTND8wC4

Corresponding Author
werner Murhadi

Institutions
University of Surabaya
Jl. Raya Kalirungkut, Surabaya

Abstract
This study aims to determine the factors that influence dividend payment policy. The review uses data from all companies listed on the Indonesia Stock Exchange for five years and dividends for a minimum of 3 periods. This Research used panel data. The results showed that foreign ownership had a positive effect on dividend payment policy, domestic property, independent commissioners, and company growth harmed dividend payments. Meanwhile, the variable board size, profitability, firm age, debt policy, and firm size do not affect dividends.

Keywords
dividend payment policy, domestic ownership, independent commissioners, company growth

Topic
Finance

Link: https://ifory.id/abstract/Lb7n32TyxptZ

Corresponding Author
Adityawan Pradipto

Institutions
(a) Universitas Indonesia
Gedung Dekanat FEB UI Kampus Widjojo Nitisastro, Jl. Prof. DR. Sumitro Djojohadikusumo, Kukusan, Kecamatan Beji, Kota Depok, Jawa Barat 16424
*adityawan.pradipto[at]gmail.com

Abstract
This study aims to investigate and compare the performance of Fama-French Five Factor Model and Hou et.al q5 factor model before and after the effect of transaction cost is taken into account in Indonesia Stock Market. To compare the performance of each factor before transaction cost, we use ordinary least square with monthly time-series data from 2002 to 2018. When comparing the performance of each factor after transaction cost, we use new performance metric from Novy-Marx and Velikov (2016) named generalized alpha. We find that Hou et.al q5 factor model cannot explain Fama-French SMB and HML factor while Fama-French five factor model cannot explain ROE and IA factor of Hou et.al q5 factor model. Except for SMB factor, this result is robust even when transaction cost is incorporated into the analysis. Our findings indicates that transaction cost is not a significant factor for comparing both model despite of monthly rebalancing of Hou et.al q5 factor model.

Keywords
asset pricing, fama-french 5 factor model, hou et.al q^{5} factor model, transaction cost, indonesia stock market

Topic
Finance

Link: https://ifory.id/abstract/EwdeHWzMtjbZ

Corresponding Author
Di-zenah Alifiah Rachma

Institutions
University of Indonesia

Abstract
2018 has been an exciting year for contractor. The government is actively supporting and carrying out infrastructure development in Indonesia. On the other hand, GAPENSI record a sharp decreasing number of its member from 70.000 to 35.000 members in 2018. These numbers represent the small- and medium contractors in Indonesia. PT. DMP is a small contractor in the transection phase to be a medium contractor. Its issues are cash- and organizational management which impacts it-s capability to scale up into a medium contractor. Therefore, based on intensive interview with the business owner, and direct interaction with the company, the coach analyzes the company using internal and external business tools. Mapping the existing-, ideal-, and GAP conditions of the company. And formulating solutions for the problems. Business coaching process will last for 6-8months. The goal of this coaching activity is to form a SOP for documenting transaction, and to produce a financial statement for this company.

Keywords
Standard Operational Procedure(SOP), Transaction, Financial Statement, Construction, Business coaching.

Topic
Finance

Link: https://ifory.id/abstract/VBWkgfXurdZJ

Corresponding Author
Asa Sabila Gina

Institutions
School of Business and Management
Institut Teknologi Bandung, Indonesia
Jl. Ganesha No. 10 Bandung 40132, Indonesia

Abstract
Indonesias micro, small, and medium-sized enterprises are facing many barriers; one of them is financial management. Financial management has a fundamental role in the entire management scheme in a company. Poor financial management is a crucial and frequent cause of failures in MSMEs. Lack of financial management impact financial performance. XYZ is one of small enterprise in Indonesia that includes in the fashion industry faced poor financial performance. Poor financial performance shows on their financial statements. The income statement in 2018 shows a net loss, whereas the revenue is the highest compared to 2017 and 2019. The objectives in this research are to explore what factors that cause the net loss in 2018 and to improve the enterprises financial performance — internal and external analysis conducted to achieve the objectives. The internal analysis uses the profitability ratios and fishbone analysis. The root cause of the problem conducted through fishbone analysis is due to financial activities. The profitability ratios analysis conducted using a tool called common-size income statement. According to the common-size income statement, the marketing expenses shows a disproportional ratio compared to its revenue. On the other hand, to maintain the company in a profitable position within the industry, the external analysis using Porters Five Forces and Porters Generic Strategies has been conducted. Following the result of Porters Five Forces analysis, fashion industry in Indonesia is in a tight competition that requires competitive advantage to compete. Overall, differentiation focus on Porters Generic Strategies is the most suitable strategy to keep the company in a favourable position within the market and to improve the company performance, especially in financial. Thus, this research is intended for small fashion companies that have problems in their financial performance.

Keywords
Common-size Income Statement, Financial Performance, Porter-s Five Forces, Porter-s Generic Strategies, Profitability Ratio Analysis

Topic
Finance

Link: https://ifory.id/abstract/K83zEZMf2hqC

Corresponding Author
Winalda Perdana

Institutions
Faculty of Economics and Business, Universitas Islam Negeri Syarif Hidayatullah & Department of Management, Faculty of Economics and Business, Universitas Indonesia

Abstract
This research investigates the impact of credit risk and liquidity risk on Islamic bank performance in Indonesia. Some previous studies have found that credit risk and liquidity risk have a significant impact on bank performance. Using data in Indonesia from 2008 to 2016, this study finds that credit risk has negative impact on Islamic bank performance while liquidity risk have negative impact on ROA and positive impact on ROE of Islamic bank in Indonesia. This result is in line to the previous studies done in developed and developing countries.

Keywords
credit risk, liquidity risk,, Islamic bank, bank performance, Indonesia

Topic
Finance

Link: https://ifory.id/abstract/rczGCnx7Bd9g

Corresponding Author
Bassem Kabouk

Institutions
a) Faculty of Economics and Business - University of Indonesia
b) Faculty of Economics and Business - University of Indonesia

Abstract
In 2011, the Syrian regulator has issued article No. 91 of the Legislative Decree No. 29/ 14th Feb. 2011“The nominal value per share shall be set at 100 Syrian Pounds only for all public companies, including banks and insurance companies, shall adjust their status within two years from the date of the entry into force of this Legislative Decree”. The purpose of this paper is to investigate the effects of this mandatory stock splits (regardless any split ratio) which is requested by regulators on market reaction in Damascus stock exchange market. According to official announcements, the main reason for this regulation is to set price range and increase the market liquidity. To examine the implications of the stock splits, all listed firms are included in our sample for the period 2011-2014. The methodology used is traditional event study for measuring the market reaction.

Keywords
Damascus Exchange Market; Stock splits; Market reaction

Topic
Finance

Link: https://ifory.id/abstract/UJFLvpPR4hWn

Corresponding Author
Winalda Perdana

Institutions
Department of Management, Faculty of Economics and Business, Universitas Indonesia.

Abstract
This study investigates the impact of oil price financial soundness of airlines company during period 2006-2017. Using the OPEC oil price as an indicator, this study found that oil price have negative impact on airlines company financial soundness. Oil price may affect the cost function because oil price is considered to be the biggest component in cost structure of airlines company. Therefore, airlines company should always anticipate the oil price in order to maintain its financial.

Keywords
oil price, airlines company, financial soundness

Topic
Finance

Link: https://ifory.id/abstract/9cwkWrfJGaU4

Corresponding Author
Winalda Perdana

Institutions
Faculty of Economics and Business, Universitas Islam Negeri Syarif Hidayatullah & Department of Management, Faculty of Economics and Business, Universitas Indonesia

Abstract
This study investigates the impact of oil price on cost of hajj in Indonesia during period 1975-2018. Using the OPEC oil price as an indicator, this study found that oil price have positive impact on cost of hajj. As the oil price increase, the hajj cost may also increase. This is due to the major component of hajj cost is transportation cost which really sensitive to oil price changes.

Keywords
oil price, cost, hajj, Indonesia

Topic
Finance

Link: https://ifory.id/abstract/7HBMxT8ntDAb

Corresponding Author
Jemmy haryanto

Institutions
1,2Department of Economic and Business, Universitas Indonesia, Indonesia

Abstract
One of the most powerful economic drivers in Indonesia is Micro Small Medium Enterprises (MSMEs). They positively contribute to Indonesias Gross Domestic Product (GDP). Unfortunately, many of them are still not appropiately managed. In this research, we applied some business coaching methods on one of MSMEs in Bekasi, namely RF Variasi Mobil. Its core business is focused on selling variation products and cars upholstery patent service. Using business coaching instruments, we collected qualitative data for mapping the MSMEs condition and problem, then take corrective action for improvement. The Pareto analysis for showing gaps reveals that financial system record and Geotrackers marketing plan are still concern. Thus, we restructured the financial system record from MS-Excel based to Ipos4 application-based and set marketing plan for Geotrackers product. W started examination from industry analysis, competitive analysis, segmenting, targeting, and positioning (STP) analysis, price setting, discrimination price, promotion, and marketing communication strategy. Before initiating a marketing plan, we surveyed about Geotrackers brand awareness and confirmed that Geotrackers marketing plan is eligible to be applied. This study helps RF Variasi in managing the financial record system and marketing activities to amplify Geotrackers brand.

Keywords
Business Coaching, Marketing plan, Restructuring financial record system

Topic
Finance

Link: https://ifory.id/abstract/kerAJpF2U7Rq

Corresponding Author
Olivia Laura Anggita

Institutions
a) Master of Management, Faculty of Economics and Business, University of Indonesia
Jalan Salemba Raya No.4, RW.5, Kenari, Kec. Senen, Kota Jakarta Pusat, Daerah Khusus Ibukota Jakarta 10430
*olivialaura96[at]yahoo.com
b) Master of Management, Faculty of Economics and Business, University of Indonesia

Abstract
The overarching question for the government as the sole owner of the State-Owned Enterprise (SOE) is why the company needs to be owned by the state. On the other hand, there are SOEs that conduct similar business activities like Indonesia Trading Company (ITC) – PT Perusahaan Perdagangan Indonesia (PPI) and Perum Badan Urusan Logistik (Bulog). This study aims to measure the financial health of business, performance and competitiveness as well as to predict the risk of bankruptcy of ITC itself. This research was conducted by using secondary data from the company-s financial statement and the application of the Altman model and the Data Envelopment Analysis (DEA) method. As the result of the research about the financial health of the company, it has not shown positive performance and even loss. It can be seen from the Altman Z-Score which is in the gray area and also while using the DEA method, the efficiency score shows less than one. This study recommends that a restructuring of ITC can be carried out to make this SOE healthy, so it can operate efficiently, transparently and professionally. To realize this, this study finds the possibility of Perum Bulog to acquire ITC.

Keywords
Restructuring; Acquisition; State-Owned Enterprises (SOEs); Altman Z-Score; Data Envelopment Analysis (DEA); PT Perusahaan Perdagangan Indonesia; Perum Bulog

Topic
Finance

Link: https://ifory.id/abstract/2yqNUY63WgwJ

Corresponding Author
Yoke Yolanda

Institutions
a. Master of Management, Faculty of Economic and Business, Universitas Indonesia, Kampus UI Salemba 10430, Indonesia
b. Department of Management, Faculty of Economic and Business, Universitas Indonesia, Kampus UI Depok 16424, Indonesia

Abstract
The purpose of this research is to examine the relation between family ownership structure and leverage and also the indirect impact of independent commissioner and independent director on the relationship of the family ownership structure and leverage. This research applied a purposive sampling technique that resulted 22 Indonesian manufacturing public firms operated in the period of 2010-2018 as the sample. The panel data was collected from Thomson Reuters and family ownership data is manually collected from the company annual report. This research using multiple regression analysis with four models. The result provides that family ownership structure is negatively significant to leverage. Independent director and Independent commissionaire are not significantly related to the family ownership structure and leverage. The result of this research could help the company to make a financing decision and mitigate the agency problem.

Keywords
Leverage, Family Ownership Structure, Independent Director, Independent Commissionaire, Indonesia

Topic
Finance

Link: https://ifory.id/abstract/2b4ufmGMyvAT

Corresponding Author
yusna mizan

Institutions
Politeknik Negeri Malang

Abstract
The aims of this study are to examine and analyze ((1) the indirect effect of free cash flow on firm value through the mediation of investment opportunity set. (2) the indirect effect of firm size on firm value through the mediation of investment opportunity set. This study was performed on the firms listed in the Indonesia Stock Exchange (BEI) During 2014 to 2017 period. The data collection was done by using purposive sampling while the population is chosen based on population criteria. The Firm involved as research sample are the number of research samples are 72 firms. The method of data analysis is Path Analysis and Sobel Test that are used to test are mediating role of investment opportunity set variable. Research finding show investment opportunity set as mediation the effect of free cash flow and firm size to firm value is significant

Keywords
Firm Value., investment opportunity set, firm size

Topic
Finance

Link: https://ifory.id/abstract/VL7PwtqZRFJc

Corresponding Author
Dyah Septa Pramasti

Institutions
Universitas Indonesia

Abstract
This study discusses the impact of asset growth rate on future stock return of listed companies in Indonesia Stock Exchange (IDX). Asset growth rate is one of the strongest predictors to predict future stock return. Not only that this study also used two control variable which has been proved to be one of the best predictors for future stock return such as size and book-to-market ratio. This study is quantitative research study with multiple regression method for data panel with 328 listed companies during the period 2014-2018 for the sample. The result of this study provide the evidence that independent variable include in the model (asset growth rate) show no significant impact to future stock return of listed company in IDX. On the other hand, the control variables which is size gave a positive and significant impact to stock return. Recommendation for future research could add another stock exchange and add more research period.

Keywords
Asset growth, stock return, size, book-to-market ratio.

Topic
Finance

Link: https://ifory.id/abstract/6quMTWcHRE3Z

Corresponding Author
Rizky Utami Hutapea

Institutions
Magister Manajemen (MM) Universitas Indonesia, Gd. MMUI Jl. Salemba Raya 4 Jakarta 10430

Abstract
This paper observes the linkage between working capital management and firm financial performance of manufacturers in ASEAN-5 (Indonesia, Malaysia, Thailand, Philippines, and Singapore). In the previous research, the optimum working capital investment was sensitive to financial constraint in which the relation shows the U-shaped. The fundamental information was used as the variable in order to see such sensitivity. In contrast, this paper uses not only fundamental information but also financial development index (published by World Bank) as variables. Therefore, we can see the influence of country development on working capital management. The paper also analyses whether the optimal working capital level for manufacturers with financial constraint are lower than those who are unconstraint. This can help the management in deciding the optimal investment level on working capital and maximizing the firm-s value and performance.

Keywords
working capital, financial constraint, corporate performance, financial development

Topic
Finance

Link: https://ifory.id/abstract/EDXCrRjy7tHK

Corresponding Author
M. Boy Singgih Gitayuda

Institutions
Economic and Business Faculty, Trunojoyo University Madura

Abstract
This study aimed to determine and analyze the level of income generating of salt farmers in Madura. This research was conducted with a qualitative approach. The qualitative approach in this study was to match empirical reality with the prevailing theory using de-scriptive methods. This research was located in the Sumenep Regency. Data collection techniques carried out by observation, interview, and documentation. Data analysis was performed descriptively-qualitatively. The results showed that the income of salt farmers in Madura was determined from the pattern of profit-sharing that had been chosen, name-ly the cost of salt production would be borne by landowners and sharecropper where the amount depended on the agreed pattern of profit-sharing. There were three pattern of profit-sharing between landowners and sharecropper in salt production, namely the pattern of dividing two (paron), the pattern of sharing for three (telon), and the pattern for five (leman).

Keywords
Income, Profit-Sharing System, Salt Farmers, Madura

Topic
Finance

Link: https://ifory.id/abstract/QYPqVUxhHXpW

Corresponding Author
Wahyu Purbo Santoso

Institutions
Magister Management
University Indonesia

Abstract
In Indonesia, agency problems in the family structure has developed even further due to concentrated ownership adoption on publicly traded firms. This study aimed to determine the effect of family structure on the cash flow sensitivity of cash (CFSC) in manufacture sector. It also investigates the indirect impact of busy directors as a moderating effect on this relation. These finding suggests that families are likely to hold more cash out of their cash flows for expropriation purposes. This study uses secondary data from all manufacturing firms that are listed on Indonesia Stock Exchange in 2013-2017. Family structure is measured by family ownership and a CEO family member, cash flow sensitivity of cash is determined by the change in cash and cash equivalent of total assets, meanwhile busy directors as a attribute of board is measured by dummy of board of commissionaires. In this study also measured the control effect of firm-s size, the market to book ratio, capital expenditure, and the change in net working capital. The results shows that family structure has positive impact on cash flow sensitivity of cash and statistically significant. Meanwhile, the indirect impact of busy directors found to have a negative effect and weakened the relationship of family structure and cash flow sensitivity of cash, suggesting that the quality of busy directors is an efficient corporate governance tools that is likely to monitor family corporate decisios.

Keywords
family structure, cash flow sensitivity of cash, cash holdings, busy directors,corporate finance, free cash flow agency theory

Topic
Finance

Link: https://ifory.id/abstract/e6QkAXbrq4zp

Corresponding Author
Nadia Dwi Novianti

Institutions
Department of Management, Faculty of Economic and Business, University of Indonesia

Abstract
This study aims to analyze the effect of non-interest bank activities on credit risk and loan spreads. Credit risk is measured using the two indicators, which are loan loss provisions and non-performing loans. Using the conventional banks in ASEAN-5 that are Indonesia, Malaysia, Singapore, Thailand and Philippines, the results shows that, overall, non-interest income has an adverse effect towards credit risk and loan spread. We also divide 49 banks- sample into two parts, which are large and small banks. In the large banks, it is found that most of non-interest income activities can lower loan loss provision, non-performing loan, and loan spread. Yet, the results are opposite with the small banks sample. Higher involvement in non-interest income activities can result in greater credit risk and loan spread.

Keywords
Non-Interest Income, Credit Risk, Loan Spread

Topic
Finance

Link: https://ifory.id/abstract/b2YB8q9cVTnN

Corresponding Author
Shirin Amira

Institutions
a) Fakultas Ekonomi dan Bisnis, Universitas Indonesia
b) Fakultas Ekonomi dan Bisnis, Universitas Indonesia

Abstract
Indonesian State-Owned Enterprises still have challenges to implement corporate governance mechanisms due to weak institutional arrangements. The purpose of the study is to provide an in-depth analysis of how the relationship of ownership concentration, institutional ownership, foreign ownership and board size on the performance of State-Owned Enterprises. The subject of this research is public State-Owned Enterprises listed on the Indonesia Stock Exchange for the period 2013-2018, which produced a total of 120 observations. Panel data regression was conducted to test the research hypothesis and the results found evidence that ownership concentration and foreign ownership has a positive influence on firm performance. This research contributes to the corporate governance literature by adding the State-Owned Enterprises as the research object. In addition, this study also produced managerial implications regarding the existence of female directors in State-Owned Enterprises.

Keywords
Corporate Governance, State-Owned Enterprises, Ownership, Board Size.

Topic
Finance

Link: https://ifory.id/abstract/G98Xk4JfEDBm

Corresponding Author
Friska Amelia Pratiwi

Institutions
Universitas Indonesia

Abstract
This paper aimed to analyze the role of liquidity channel in the spread of external shock in ASEAN-5, that consist of Indonesia, Malaysia, Singapore, Thailand, and Philippines. In purpose to see the linkage of market liquidity across countries, the authors used Granger causality. Data were divided into 4 sub-period ( Pre crisis period, Crisis period, Transition period, and Post crisis period), to implement the causality methodology. The crisis had impact on underlying the microstructure foundation and can lead to the flight to quality phenomenon, where investors move their asset from the risky one to the safe and liquid assets. The result showed that there was an increase of cross-market linkage in liquidity channel after the crisis period.

Keywords
contagion ; liquidity ; flight to quality ; stock markets; financial integration

Topic
Finance

Link: https://ifory.id/abstract/zWpHvfmjTycA

Corresponding Author
Lia Ninda Safitri

Institutions
a) Departement of Information Technology Management,
Sepuluh Nopember Institute of Technology, Cokroaminoto 12 A, Surabaya 60264, Indonesia *lianindasafitri[at]gmail.com
b) Faculty of Mathematics, Computing and Data Science, Keputih, Surabaya 60111, Indonesia

Abstract
Effort and cost management are important factors that determine the success of the software development project. Effort-based cost estimation has to be transparent and accountable. Use Case Points provides effort method using Object-Oriented Programming. In Indonesia, Agile-Scrum as development framework and Object-Oriented Programming as programming method have been widely used. Use Case Points integrated with Scrum Framework has been used to calculate effort estimation. Application of Use Case Points integrated with Scrum Framework to calculate cost estimation is something new. This research demonstrates how Use Case Points integrated with Scrum framework can be used to calculate the cost estimation of software development.

Keywords
Use Case Points, Scrum Framework, Cost Estimation, Effort Estimation, Software Development

Topic
Finance

Link: https://ifory.id/abstract/w3RgFearGWzT

Corresponding Author
Kusuma Ratnawati

Institutions
Management, Faculty of Economics and Business Universitas Brawijaya, Malang
kusuma[at]ub.ac.id

Abstract
This research is aimed to analyse volatility spillover in stock market, foreign exchange, and bond market in ten developing countries in Asia, consisting of Indonesia, Singapore, Taiwan, Malaysia, Philippines, China, South Korea, Hong Kong, Thailand, and India within the period of January 1, 2009 – December 31, 2016. The analysis method for the data required in this research employed Trivariate GARCH Model and The Cholesky Decomposition, assisted by software E-views8. The variables in this research comprised stock market (X1), foreign exchange (X2), and bond market (X3). The stock market was set as a proxy for daily closing share price index in each country, the foreign exchange served as a proxy for daily closing exchange rate in each country against USD, and the bond market-s proxy of ten-year daily government bond price in each country was for previous closing price. The result showed that there was volatility spillover in financial markets across the ten countries in Asia for stock market, foreign exchange, and bond market. It indicates that the trends in foreign exchange rate, share and bond prices in each country are influential to the trends in foreign exchange rate, share and bond prices in other countries.

Keywords
volatility spillover, stock market, foreign exchange, bond market

Topic
Finance

Link: https://ifory.id/abstract/6YvkM28yNFu3