Indonesia Conference Directory

Corresponding Author
Aries Heru Prasetyo

Institutions
Sekolah Tinggi Manajemen PPM, Jakarta, Indonesia
justzhongshan[at]gmail.com

Abstract
The rapid numbers of corporate action which is known as mergers and acquisitions (M&A) in Asian market for the past three decades is growing tremendously. The two actions are widely used as a means to pursue strategic targets – for example to maintain stable growth and to gain strong power to control the market. This study investigates abnormal return to shareholders of bidder firms around the announcement day for Indonesia and Taiwan. Using a sample of 160 corporate action M&A, the study found that the stock market responses positively to the two corporate actions. The evidence shows that there are expected cumulative abnormal returns in two different event windows: a two-day window and a three-day window. Investor is found in favour of M&A information. However, non-financial sector is experiencing higher abnormal return compares to the financial sector. The study suggests that the market is trying to reap the maximum benefits from M&A announcement and justify the strategy as an optimistic way to deal with any dynamic changes in the industry. The market has been identified as having its semi-strong form in which every information is well-reflected at the equilibrium price. Henceforth, non-organic growth strategy may be highly recommended to Indonesia and Taiwan managers especially to those who are coming from non-financial sectors.

Keywords
Mergers and acquisitions, Stock market, Abnormal returns, Efficient market

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/CWnbHP7hwVK8

Corresponding Author
Sugiharto Soeleman

Institutions
a )PT Bank Mandiri (Persero) Tbk, Jakarta, Indonesia
gitagifi[at]yahoo.com
tengku.ritahairani56[at]gmail.com
b) PT Lintang Jati Kencana, Yogyakarta, Indonesia
ss_aei[at]yahoo.co.id
c) PT Jasa Tirta Energi, Jakarta, Indonesia
ettysslwt[at]gmail.com

Abstract
1. Introduction Lack source of fund is one of critical issues being faced by smallholder farmers. Despite of having teak trees in their yards, such trees as biological assets are not accepted as loan collateral for bank-s loan. In general, smallholder farmers fulfill their daily needs by cutting down their teak trees of five years old for sale. This research explored the feasibility of postponing teak harvesting time and analyzed the financial impact. By postponing the harvesting time, it is expected the tree grows in diameter and height, thus increase the volume. Combine with the price increases, it is expected that the value of the asset is increased. 2. Methods This research was carried out in Gunung Kidul Regency, Yogyakarta, Indonesia between 2008 to 2018 in an area of 30 hectares. The method being employed was enterprise budget in which the costs of maintenance, the growth of the trees, and the sales of the harvested trees over time were considered. For the purpose of the valuation, a profit sharing as a result of value increases due to harvesting delay is shared between the owner of the asset and the investor through mudharabah financing arrangement. 3. Result The result suggests that the annual return for the investor (such as a bank) is well above the current interest depending on the investor-s profit sharing and the duration of harvesting delay. Specifically, for a five years delay of harvesting time and an investor-s share of 40%, the investor-s annual return is well above 30%. 4. Conclusions, implications and significance It is concluded that teak trees as biological assets should be justified as a bank collateral. References (Selected) Bazza, M.I., Bashir, Y.M., Bashir A.D. (2014). Islamic Financing: A Panacea To Small and Medium Scale Enterprises Financing Problems in Nigeria. European Scientific Journal, 10(10), 432-444. Sugiharto, S., Lestari, S.D. (2014). The Role of Sukuk Financing for Sustainable Development of Smallholder Farmers. Australasian Accounting, Business and Finance Journal, 8(5), 79-92. Svoboda, P. Bohusova, H. (2016). Biological Assets: In what way should be measured by SMEs?. Procedia- Social and Behavioral Sciences. 220. 62-69.

Keywords
enterprise budget, loan collateral, mudharabah, teak plantation

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/gyh9YHwKnDXQ

Corresponding Author
Dhika Maha Putri

Institutions
Universitas Negeri Malang, Malang, Indonesia
sulastri.fe[at]um.ac.id
Universitas Negeri Malang, Malang, Indonesia
dhika.maha.fe[at]um.ac.id
Universitas Negeri Malang, Malang, Indonesia
miranti.puspaningtyas.fe[at]um.ac.id

Abstract
MSME (Micro, Small and Medium Enterprises) is a vital sector for the economy. MSMEs being the biggest contributor to Indonesias Gross Domestic Products (GDP) value. UMKM has wide benefits through employment and economic drive. Therefore, MSMEs need to improve business continuity through proper financial management. Comprehensive financial budgeting is one of the management tools that can be used by MSMEs. Budgeting is a planning and control instrument for organizations. This study aims to develop a financial budgeting model that is suitable for the conditions of MSMEs. The budgeting model was prepared with a comprehensive approach to facilitate MSMEs in making budgets. Using the development method, a needs analysis was carried out using interview techniques and documentation studies at 25 MSMEs spread throughout East Java. The data obtained is used as a basis for implementing the budgeting models development. Overall, the comprehensive budgeting model produced in this study can help MSMEs in making financial budgets. The budgeting model can produce more systematic financial documents for MSMEs. The financial document can be used as a reference in decision-making by the organization to improve business sustainability

Keywords
MSMEs, Finance, Budgeting, Comprehensive, Business Sustainability

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/3B9GKJp6br7Z

Corresponding Author
Mirra Novyanti

Institutions
Financial Management, PPM School of Management, Jakarta, Indonesia
meazzaputra6[at]gmail.com
Financial Management, PPM School of Management, Jakarta, Indonesia
mirranovyanti[at]gmail.com
Financial Management, PPM School of Management, Jakarta, Indonesia
justzhongshan[at]gmail.com

Abstract
Introduction and Research Problem PT XYZ needs to design and implement risk management. One of the urgency for designing and implementing risk management system is because the soul of the parent companys business is in the construction field and wants to diversify its business into new business fields as energy investments that entrusted to PT XYZ. New business fields in the energy sector will certainly be faced with the high risks. Coupled with minimal experience makes the risk faced will be even higher. The need for the design and implementation of risk management at PT XYZ is also indicated by the occurrence of cost overrun in current projects. In carrying out each project, PT XYZ must pay a pre-development cost whose value is quite high. However, after PT XYZ spent the costs, the planned project may not be able to be proceed to the next stages. Therefore, PT XYZ has potential to pay sunk costs. Design and implementation of the risk management system is expected to make the usage of project pre-development costs will be more efficient. Methods The design of risk management systems in this study uses the ISO 31000: 2018 approach. To find out the current implementation of risk management at PT XYZ, an assessment of the risk maturity level that refers to the Chapman model (2011) was conducted. Furthermore, the risk management system then implemented by PT XYZ which includes several stages. The external context determination stage uses the PESTEL analysis and stakeholder analysis while the internal context determination stage uses the 7s McKinsey analysis. The Risk Breakdown Structure method through Work Breakdown Structure is used to identify the risks. In addition, root cause analysis be used to compose risk treatment plans. Results and findings This study-s result are risk management system design such as: risk management policy, proposed organizational structure, SOP and risk management processes templates that include communication and consultancy; determination of the scope, context and criteria; risk assessment; risk evaluation; risk treatment; monitoring and review; recording and reporting. The risk maturity level assessment shows that currently PT XYZ is at the basic level. In implementation of risk management design, the scope of risk management process is limited to PT XYZ and has not been integrated with its subsidiaries. From the process, 128 risks in PT XYZ have been identified, consisting of 59.4% strategic risks; 32.0% financial risk; 4.7% HR risk; 1.6% reputation risk; 1.6% legal risk; and 0.8% operational risk. In addition, the result of the risk evaluation shows that PT XYZ has 8% extreme risk. Conclusions, implications and significance The risk management system has been designed at PT XYZ. The risk maturity level of PT XYZ shows that the risk management system is designed as an effort to improve the business. Beside, risk treatment plans are composed to reduce the level of likelihood and / or level of impact of ex

Keywords
Energy Investment, Risk Management, ISO 31000:2018

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/gqML9vKcDaWb

Corresponding Author
SUWINTO JOHAN

Institutions
Sekolah Tinggi Manajemen PPM
Jalan Menteng Raya No. 9-19, Jakarta 10340
Indonesia
suwinto.johan[at]gmail.com

Abstract
The aim of the research is to study the value created by the foreign shareholders in Indonesia banking industry from 2016-2018. The research analyzed the performance of the foreign owned banks versus domestic owned banks. The banking industry is one of the main drivers of economic growth. The study focused on the 19 banks that are categorized as bank books 3 and 4 as per the central bank regulation. The shareholders status will be the independent variable and the main financial ratios will be dependent variables. The financial ratios are capital structure, credit risk, firm size and profitability ratio. We use non- parametric (Mann Whitney) and parametric (Dummy Variable Regression). The empirical results show that there are differences in profitability and firm size. The profitability was shown in return on assets, return on equity, economic value added. The firm size was shown in total asset and equity. The local banks performed better than foreign banks in return on assets, return on equity, economic value added and net interest margin. However, the foreign banks only performed better than local banks in equity size. There was no significant difference in capital structure and credit risk. The results is significant at  = 1% for return on asset, economic value added and equity size.

Keywords
Banking, Financial ratio, Foreign Ownership, Profitability

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/juwW6ryUCaAb

Corresponding Author
Suhartoko Suhartoko

Institutions
Telkom University, Bandung, Indonesia

Abstract
The era of digitalization which is very rapid raises, challenges for players in the telecommunications industry to meet customer needs by providing services with high speed and broad reach. The telecommunications industry in the countries of East and Southeast Asia still shows a positive growth trend in terms of average income of 2.3% and growth in the number of customers an average of 4.1% per year. But this was not matched by EBITDA margins which actually declined at a rate of -1.12% during 2013-2017. This research was conducted to determine, analyze and compare the efficiency values of 25 telecommunications companies in East and Southeast Asia which were included in the list of the most 300 valuable brands in 2018 in the 2013-2017 observation period. The method used to calculate the value of company efficiency in this study is Data Envelopment Analysis (DEA). By determining the input output variables based on previous studies, then the value of the variables obtained from the foreign financial statements of each company is processed and then processed in the MaxDEA-7 software to get the value of company efficiency. To find out the influence and relationship between input output variables and efficiency values, a correlation analysis is carried out to produce the correlation coefficient between them. The results of the efficiency value and the value of the correlation coefficient are then compared between each company and per each group of countries, to find out which companies and countries are the most efficient and the variables that most strongly influence the value of efficiency. From the analysis of the results of the study it can be concluded that the telecommunications company PT. NTT (Japan) is a company that has the highest efficiency value and is most influenced by capex, revenue and subscriber variables, while PT. FarEasTone (Taiwan) has the lowest efficiency value and is most contributed by capex and subscriber variables. And of the 10 countries in East and Southeast Asia studied in the past 5 years in a row, on average telecommunications companies in Japan have the highest efficiency values with the most influential variables being capex, revenue and subscriber, and on average Singapore has the lowest efficiency value with the most influential variables being opex, personal expense and total assets.

Keywords
Telecommunication Industry, East and Southeast Asia, Efficiency, Data Envelopment Analysis (DEA)

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/kv6brPuAK42e

Corresponding Author
Heri Supriyadi

Institutions
School of Business, IPB University, Doctorate Program of Business Management

Abstract
One of factors causing operational risk event in Indonesian banks is human factor, one of those is internal fraud. This paper is aimed to determine which factors significantly affecting employee to commit internal fraud, and to set simple model for scoring risk of employee to measure likelihood of committing internal fraud. Data was collected from human capital management system in a bank comprising personal identity, static data, liabilities, and other related data recorded at the system. The collected data was discussed through Focus Group Discussion (discussion members from several different departments in the bank) to be taken as important variables to affect employee to commit internal fraud. The variables were statistically tested to be determined as important and significant variables of model to score employee risk scoring. The output of scoring employee risk was categorized as Low, Low to Moderate, Moderate, Moderate to High and High. The result of correlation test shows that there are 9 variables significantly influencing employee to conduct fraud. Those comprise credit card outstanding, time length of employment, take home pay, time length of duty rotation, percentage of day leave taken, overtime job taken, internally soft loan outstanding, age and organization position. Based on the statistically testing, alternative solution by using expert judgment is proposed, i.e. using weighted scoring. The alternative solution applied to several employees in branch offices result then was confirmed to their managers. The selected managers confirmed that the alternative solution result is rationally accepted and could be used as a tool to measure likelihood level of employee committing fraud described as likelihood levels stated above, from Low to High. The next study with more detailed variables is recommended to more precisely estimate likelihood level of employees committing fraud. The Big Data also can be potentially used as more detailed and accurate data.

Keywords
Employee Risk Scoring, Fraud, Bank

Topic
Finance and Risk Management

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

Corresponding Author
Dishari Das Mou

Institutions
BRAC Business School, BRAC University, Dhaka, Bangladesh
disharimou283[at]gmail.com
mahmud_ullah_khan[at]hotmail.com
hridita.islam21[at]gmail.com

Abstract
* Introduction: The rate of unemployment is ever increasing even though Bangladesh is among the fastest growing economics in the world. The purpose of this study is to determine whether young adults are more incline to invest in security market than to seek employment and also to figure out which factors cause reluctance among them to invest on the stock market. Based on the Limited information we have a gathered, we have developed a hypothesis, which is "Factors such as income, parental influence, financial knowledge, and peer pressure are effecting the investment pattern of young professional. * Methods: We are collecting both primary data and secondary information for this study. Most of the secondary data are being collected from previously published journals. For primary data, a questionnaire have been created which will be distributed among young professionals between the ages of 25 to 35. The samples will be collected from Dhaka, Bangladesh. * Results: Based on the few responses we have collected, young generation have a negative perception on stock market due to market volatility, parental influence, peer pressure, and lack of knowledge about stock market. * Conclusions: As this study is still on-going, we are unable to provide any findings and have not reached any concrete conclusion.

Keywords
Young generation, influence, financial market

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/RNnYmqd7Ae6h

Corresponding Author
Christian Samuel

Institutions
PPM School of Management, Jakarta, Indonesia
csamuel93[at]gmail.com

Abstract
Enterprise Risk Scorecard (ERS) essentially is a Balanced Scorecard (BSC) combined with risk management. This experiment-s objective is to find out how risk management is applied to Indonesian SOEs in shipping companies using ERS. BSC focuses on objectives of company-s performance while ERS focuses on risk treatment that is perceived to affect the KPI achievement process. By 2018, Indonesia only had total of 19 ships and 226,948 deadweight tons and the number of ships which operated by SOEs is declining since 2014 and this affect the deadweight tons which also is declining. According to Indonesian Ministry of State-Owned Enterprise (SOE) Regulation for Good Corporate Governance (GCG) Application, risk management is an integral part of GCG by developing and applying risk management program as a whole strategic activity. This declining situation and the compliance due to Regulation of Indonesian Ministry of SOE for GCG then become the reason risk management must be applied in SOEs. Risk management in Indonesia is applied in two ways and they are done by paradigm of risk management and reward and punishment. Qualitative case study is used in this research with inductive approach and data is collected by interview. The results are risk management application using ERS for company A and company B is adopted by paradigm of risk management while for company C, risk management is adopted by reward and punishment. Reward and punishment model consider risk management as burden, sometimes it means costly and ineffective. Therefore, corporate tends to refuse applying risk management. On the other hand, regulation from central government insist of risk management appliance which make the BoD include risk management in their corporate governance mechanism by applying ERS. Management have two intentions of applying risk management and they are desire to get reward and fear for being punished by stakeholders. Paradigm model considers risk management as an internal need, even it is considered as strength. With this paradigm, BoD apply risk management in their corporate governance mechanism by applying ERS. ERS helps each company to apply risk management for the whole company to achieve their stated KPI by combining risk management into the BSC. By applying risk management with ERS, those companies will have a higher probability to achieve their own strategic KPI.

Keywords
balanced scorecard, enterprise risk scorecard, Indonesia, risk management, state-owned enterprise

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/ku9EDGFMdzcT

Corresponding Author
Bernika Setiawan

Institutions
a Sekolah Tinggi Manajemen PPM, Jakarta Indonesia
BER[at]ppm-manajemen.ac.id
b. Sekolah Tinggi Manajemen PPM, Jakarta Indonesia
YNR[at]ppm-manajemen.ac.id

Abstract
1. Introduction and research problem The development of information technology has an impact on the financial services industry with the advent of financial technology (FinTech) products. The Financial Services Authority (OJK) defines FinTech as utilizing the development of information technology in improving services in the financial industry. The OJK has classified FinTech in Indonesia into 5 major groups including (1) digital payment systems, (2) Financing & Investment, (3) information & feeder side, (4) account aggregator and (5) personal finance. P2PL is a financial technology (FinTech) product. Peer-to-peer lending provides an opportunity for a investor to provide funds/capital loans to people who need funds directly through a digital platform. P2PL is seen as an attractive investment instrument because it offers a high rate of return when compared to conventional investment instruments. The growth of the P2PL company was also welcomed by the community who contributed to becoming a borrower or becoming a lender. The presence of P2PL was quickly utilized by the people who needed a fast loan. The number of borrowers calculated based on the number of accounts increased by 786.5% from last year, so that as of September 2018, the number of borrowers was 2.3 million borrower accounts. So far, 85.6% of borrowers still come from Java. However, from year to year funding has begun to flow to regions outside Java, which was only 3.3% of the total number of borrower accounts in Indonesia in December 2016, to 14.4% (September, 2018). Garman et al. (2008) states that investors are one of the keys to success in the sustainability of the P2PL industry. Investors are looking for loans that can be funded as an alternative investment or additional investment instruments that have been owned. Jahanzeb and Muneer (2012) state that the decision making process is a complex cognitive process for choosing an alternative among the other available alternatives. In this study, researchers will provide a perspective on how investors decide to invest and how the process of selecting P2PL companies in Indonesia and the experience of investors in investing in P2PL. Investor experience is expected to provide insight for individuals who want to learn and consider P2PL as an investment alternative. 2. Methods This study uses a qualitative approach to view investor perspectives on P2PL as an alternative investment. Researchers conduct in-depth interviews with informants (investors). Researchers conduct an inductive process by building patterns, categories and themes starting from data and then entering into more abstract units of information. This process is repeated until the researcher can build a complete theme from all the data he has. Further more the deductive process is also carried out when a theme has been obtained to see and ensure the evidence supporting each theme is sufficient. If it is still lacking, researchers will look for and recombine other i

Keywords
Peer to peer lending, investment decision making process, investment experience, financial technology, investment motivation

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/bKd6eWnmcVYM

Corresponding Author
Yosia Moelyono

Institutions
LSPMR Indonesia, Jakarta, Indonesia
sekretariat[at]lspmr.org

Abstract
The purpose of this study is to know whether management attitudes can moderate the relationship between management support and risk management performance. Respondents from 112 companies were taken. They were the top rank risk management personal in those companies. Questionnaire was designed in collecting the data. The validity and reliability of the questionnaire has been tested. Multiple regression analysis techniques were used to test the null hypothesis that attitude is the moderating variable between management support and risk management performance. The null hypothesis was accepted indicating that attitude toward risk management was not a moderating variable in the relationship between management support and risk management performance. However further analysis with the use of path analysis found that management support instead was the mediating variable between attitudes and performance of risk management. Therefore, when top management has positive attitude toward risk management will increase the risk management performance of the organization.

Keywords
Risk management; attitude; management support; risk management performance

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/kQgC9TJaeMmU

Corresponding Author
Alsabaravi Ghiffari

Institutions
Sekolah Tinggi Manajemen PPM, Jakarta, indonesia
alsabaravi12[at]gmail.com
Sekolah Tinggi Manajemen PPM, Jakarta, indonesia
YNR[at]ppm-manajemen.ac.id

Abstract
1. Introduction and research problem Hospitals in providing health services are governed by various regulations from the regulator. Regulations and laws that apply to activities will be overseen by the Ministry of Health, the Indonesian National Agency for Drug and Food Control (BPOM), and the Indonesian Doctors Association (IDI). This aims to minimize the risk of mishandling and death of the patient. The provision of health services in hospitals in conducting health care is carried out thoroughly in accordance with Law number 44 of 2009. The intended health maintenance such as promotive, preventive, curative, and qualitative. Professional management is needed in dealing with problems and managing risks in hospital management. Permata Cibubur Hospital (RSU) is a private hospital that provides maternal and child health services in the fields of obstetric and gynecology, and pediatrics. Permata Cibubur Hospital serves several collateral programs such as private guarantees and government guarantees. Permata Cibubur Hospital is obliged to serve Regional Health Insurance (Jamkesda) in accordance with the regulations and implementation guidelines. Health insurance is a health service program from the government or a private company that uses an insurance system with the aim of providing dependents in using health facilities to all hospitals that collaborate with the health insurance. Management of Jamkesda in Permata Cibubur Hospital is still often found problems that affect the management system in the hospital. The impact that occurred was that the claim process carried out by the hospital to Jamkesda was hampered, which resulted in disrupted hospital revenue. The researcher uses a risk management approach based on ISO 31,000: 2018 which aims to evaluate and propose the potential risks and risk control measures faced by hospitals in managing health insurance programs. 2. Methods The researcher uses a qualitative approach to explore natural object conditions, where the researcher is a key instrument. Researchers conducted a study of documents related to the results of audits, procedures for implementing health services in the regional health insurance program (Jamkesda) and conducted in-depth interviews about aspects of risk and health services at the Permata Cibubur Hospital, namely in the division of the Internal Audit Unit (SPI) Permata Cibubur Hospital. Retrieval of information from informants is done by purposive and snowball, the combination of techniques with triangulation techniques and data analysis is inductive/qualitative. This study aims to develop a concept that already exists in Permata Cibubur Hospital. This study uses several procedures to test data validation, namely triangulation and peer review conducted on interview data sources obtained from various perspectives. 3. Results and findings Internal control aims to ensure that risks and risk events do not hamper the guarantee service process. However, some related

Keywords
Risk Management, ISO 31000:2018, Hospital, Internal Control

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/ZE4n6A8aQHkp

Corresponding Author
Gesang Ridho Subhan

Institutions
a Sekolah Tinggi Manajemen PPM, Jakarta, Indonesia
gesang554[at]gmail.com
b Sekolah Tinggi Manajemen PPM, Jakarta, Indonesia
riana.puspaputri[at]gmail.com
c Sekolah Tinggi Manajemen PPM, Jakarta, Indonesia
Justzhongshan[at]gmail.com

Abstract
PT ABC is one of the company that build and operate a coal-fired steam power plant in Komering Agung Village, Gunung Sugih District, Lampung Tengah Regency. Since the power plant has operated in 2014 until now, they do not have a risk management system. Therefore, there are several risk events that cannot be overcome by the company. If the company has implemented risk management, they can find out a list of risk events that will be faced, classify risks that need to be prioritized, and what risks that acceptable according to the companys risk appetite. In this thesis the risk management design is based on ISO 31000: 2018. The discussion of the risk management process starts from the determination of the risk context to the risk assessment. Furthermore, this thesis will discuss about improving the level of risk management maturity using a "Risk Maturity Model" tools which developed by Chapman (2011). This improvement is needed for the company so that the application of risk management becomes more directed. There are five measured dimensions, which are culture, system, experience, training, and managerial of risk management. The results of this study are a description of risk map from 55 identified risks and design activities to improve the risk maturity level for each dimensions until they reach Level 3 (Standard).

Keywords
risk management, risk assessment, risk maturity level, steam power plant

Topic
Finance and Risk Management

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

Corresponding Author
Arif Fajar Nugroho

Institutions
PPM School Of Management, Jakarta, Indonesia, ariffajar2[at]gmail.com.
PPM School Of Management, Jakarta, Indonesia, andrianto77[at]gmail.com.

Abstract
This study focused on the effect of external company-s factor (inflation) and internal company-s factor (profitability, size of company, growth, tax shield, and company-s assets) to firm-s value with capital structure act as an intervening variable in listed construction-s company in Indonesia. Hypothesis which tested in this research contain two major hypothesis which are direct effects of company-s factor to firm-s value and indirect effects of company-s factor to firm-s value through capital structure. In order to support this research, research problems was constructed which are: • Are company-s internal factor s can effect company-s capital structure decision? • Is company-s external factor can effect company-s capital structure decision? • Is company-s capital structure decision effect company-s value? • Are company-s internal factors effect company-s value? This study use data from construction company which is listed in Indonesia Stock Exchange (IDX) starting from 2014 until 2017. This study use a quantitative and causality research as the design of this study. Listed construction-s company act as the population of data used in this study. This study use Structural Equation Modelling with Partial Least Square approach as a method for conducting analysis in this study. The result of this study found out that company-s growth act as a factor that effect company-s capital structure decision in listed construction company in Indonesia. Other factor like inflation, profitability, company-s size, company-s assets and tax shield show no significant effect to capital structure decision. This study also found out that variable which is used like profitability, company-s size and company-s growth show no significant effect to firm-s value, capital structure decision also show the same effect to firm-s value. This study conclude that only company-s growth able to effect the company-s capital structure decision in listed construction companies in Indonesia. Further research regarding another factor should be consider. The result of this study is corresponding to related study conducted by another researcher as Moyo (2013), Komera (2015), Gill (2009), Shanmugasundaram (2008).

Keywords
Capital Structure

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/gKL9aGkRfDd4

Corresponding Author
Zahramutya Nadapertiwi Putri

Institutions
Sekolah Tinggi Manajemen PPM, Jakarta Indonesia
zahramutyanada[at]gmail.com
Sekolah Tinggi Manajemen PPM, Jakarta Indonesia
YNR[at]ppm-manajemen.ac.id

Abstract
1. Introduction and research problem The growth of Financial Technology (Fintech) services in Indonesia is a form of development of financial services in the digital era. Google and Temasek survey results (December 2018) showed that the digital economy in Indonesia could grow 100 billion US dollars in 2025. This makes Indonesia the largest market for digital economy penetration compared to other countries in Southeast Asia. The presence of Fintech is expected to increase financial inclusion which is considered to be able to reduce some socio-economic problems such as more equitable financial distribution so as to realize the financial independence of the community, reduce poverty and unemployment. Peer to Peer Lending (P2P) is a type of Fintech service that provides Information Technology-Based Money Lending and Borrowing services and has been officially regulated by the Financial Services Authority (OJK) through OJK regulation number 77/POJK.01 / 016. As of January 2019, there are 99 digital platforms in the Peer to Peer Lending category that have been registered with the OJK. In this study, researchers used two theories that can explain the level of understanding and acceptance of individuals in studying the use of digital technology-based financial services. The first theory is The Unified Theory of Acceptance and Use of Technology (UTAUT) proposed by Venkatesh et.al (2003) and the second theory is Social Cognitive Theory (SCT) put forward by Compeau & Higgins (1995). The variables used are Performance Expectancy, Effort Expectancy, Social Inflation, Facilitating Condition, Self-Efficacy, Affect, Trust, Reputation and Anxiety towards Behavioral Intention. Research subjects in DKI Jakarta have the population with the highest literacy and inclusion in Indonesia. 2. Methods The study was conducted in March-April 2019 by conducting a survey of 450 respondents. The determination of the sample is used based on a purposive sampling technique, based on the population of the population in DKI Jakarta of 10,467,600 people (Badan Pusat Statistik, 2018). The results of calculations based on Krejcie and Morgans table showed a minimum of 384 respondents. This survey uses a Likert scale which aims to measure peoples attitudes, opinions and perceptions about the use of P2P (Sekaran, 2013). Researchers conducted a preliminary test to 30 respondents aiming to measure whether the questions in the questionnaire were appropriate to measure the variables to be measured on a small scale first. The analysis technique used is multiple linear regression to explain how much influence the independent variable has on a dependent variable. The SPSS application is used to process and analyze survey results. 3. Results and findings The results of the analysis show that Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, Self-efficacy, Affect, Reputation, Trust and Anxiety have simultaneous significant effects on Individual Behavi

Keywords
Financial Technology, Peer to Peer Lending, UTAUT, SCT

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/rgPehYyknmV3

Corresponding Author
Ossi Ferli

Institutions
STIE Indonesia Banking School, Jakarta Indonesia
ossi.ferli[at]ibs.ac.id

Abstract
The frequency of transactions through online banking increased 169% from 13.6 million customers in 2012 to 50.4 million customers in 2016. Providing an overview of the increase in revenue from the use of technological innovations. The purpose of this research is to determine the effect of innovation technology on the financial performance. Population of this research is all Banks that conduct online banking listed in Indonesia Stock Exchange in 2017. Population of this research are 30 banks in IDX that provides online banking. Samples for each banks are average from 3 respondents.The independent variable uses primary data obtained from quesionnaires are Customer Independent, Customer Assisted, and Customer Transparent as a calculation of Innovation technology. The dependent variables uses secondary data from financial reports in Indonesia Stock Exchange (IDX) are financial performance which uses 3 indicators consisting of Non Performing Loans (NPL), Return on Assets (ROA) and Capital Adequacy Ratio (CAR). The data processing method used is the Partial Least Square (PLS) method using SmartPLS 3.0 software. The results show that Customer Independent have no significant effect on financial performance. Customer assisted and customer transparent have a positive significant on financial performance.

Keywords
customer independent, customer assisted, customer transparent, financial performance, technology innovation and bank.

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/2Eeu9Pq8bjdZ

Corresponding Author
Meichyel Meichyel

Institutions
ab Meichyel, Indonesia
mariameichyel[at]gmail.com
cd Novy Silvia Dewi, S.E., M.M, Indonesia
novy.silviadewi.nsd[at]gmail.com

Abstract
PURPOSE/AIM & BACKGROUND The financial statements issued by the company contain information about the condition and performance of the company during the related period. Information in financial statements is useful for users of financial statements for decision making as investors for investment decision making. In 2013, the Financial Accounting Standards Board (DSAK) in Indonesia revised the Statement of Financial Accounting Standards (PSAK) 1 regarding the presentation of financial statements which added the components of other comprehensive income (OCI) to the statement of profit or loss and other comprehensive income. In measuring and evaluating component of OCI, subjectivity is contained due to estimations, assumptions, and judgments (Rissi, 2016). The component of OCI consists of unrealized gains or losses that provide more comprehensive information to users such as investors for investment decisions. Company managers provide information through accounts that signal investors to help make investment decisions (Godfrey et al, 2010). Value relevance is measured by the ability of information in financial statements to convey information that affects stock prices (Francis and Schipper, 1999). This research will discuss the effect of the income statement and other comprehensive income, namely net income, comprehensive income, other comprehensive income, other comprehensive income with low subjectivity, and other comprehensive income with high subjectivity to stock returns. This research was conducted on infrastructure, utilities, and transportation companies listed on the Indonesia Stock Exchange in the 2014-2018 period. METHODOLOGY In this research, panel data regression analysis using Eviews software consists of 3 models to be selected, namely the common effect model, fixed effect model, random effect model. To estimate the regression model that will be chosen, 3 tests were performed to select the most appropriate model to use. The first is the chow (likelihood ratio) test to determine the chosen common effect model or fixed effect model. Second, the thirst test to determine the fixed effect model or random effect model chosen. And third, lagrange multiplier (LM) test to determine the common effect model or random effect model chosen. Then, the researchers conducted hypothesis testing. First, a partial test (t test) to see the effect of the independent variable partially on the dependent variable (Kurniawan, 2016) and secondly, the coefficient of determination (R2) to find out how much the variation of the independent variables can explain the dependent variable (Nachrowi and Usman, 2006). FINDINGS/RESULTS In this study, the selected regression model is the common effect model and the test results are as follows: Variable Coefficient Std. Error t statistic Prob. NIPS 0,216299 0,069499 3,112242 0,0033 CIPS -0,164921 0,057706 -2,857933 0,0065 OCI -0,131916 0,045250 -2,915241 0,005

Keywords
value relevance, subjectivity of other comprehensive income, stock returns

Topic
Finance and Risk Management

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

Corresponding Author
Sebastian Vieri Matasak Tandi

Institutions
Sekolah Tinggi Manajemen PPM, Jakarta, Indonesia
sebastianvieri19[at]gmail.com

Sekolah Tinggi Manajemen PPM, Jakarta, Indonesia
YNR[at]ppm-manajemen.ac.id

Abstract
1. Introduction and research problem Research conducted by Deloitte (2015) shows that digital financial services can provide an easier access to financial services, so that they can benefit the national economy. In Indonesia, the development of financial technology (FinTech) shows that in 2018 the number of FinTech in Indonesia was 190 companies divided into three parts, namely 157 Startup Companies, 24 Financial Institutions, and 9 Associate Partners (Indonesian FinTech Association, 2018). On the knowledge side, data published by Dailysocial (2018) shows that many Indonesian people are familiar with FinTech reaching 70.63%. Although experiencing growth, the numbers have not been able to match the level of public literacy about Fintech, which is equal to 58.14%, even that number has dropped of the number of users in 2017 amounted to 60.96%. Data according to Dailysocial (2018), shows that in Indonesia 32.48% have not used P2P lending services. Looking at the number of people who have not used fintech services, especially P2P lending. This research approach uses a theory created by Ajzen (1989) which is "Theory Planned Behavior" in which it functions to describe several factors that can influence a behavioral intention or a persons behavior. This theory has the perspective that trust is the main factor that can influence behavior. These factors are the attitude towards behavior, subjective norms, and perceived behavior control. This research was conducted in Jakarta because the highest per capita Gross Regional Domestic Product (GRDP) is still held by Jakarta at 194 million per year. But on the other hand, data published by OJK (2016) shows that there are still 22% or at least 2.2 million people of DKI Jakarta who have not used financial services, both digital and non-digital, even the number could be more for people who have not or not use FinTech services especially Peer to Peer Lending. Millennial was chosen because the generation is close to the use of technology (CHCD-PPM Manajemen, 2018) 2. Methods This study aims to determine the effect of Atitude Toward Behavior, Subjective Norm, and Perceived Behavioral Control on Behavioral Intention of millennials using Peer to Peer Lending services. Determination of the sample using the basis of Hair, et al (2005) which states that for the purpose of research that is causal analysis, the required respondents are at least 15-20 respondent times the number of independent variables. In this study using three independent variables with a number of indicators or questions as many as 19 indicators, so that a minimum of 95 respondents as a sample. Researchers distributed questionnaires and got 157 respondents. This survey uses a Likert scale which aims to measure peoples attitudes, opinions and perceptions about the use of P2P (Sekaran, 2013). The analysis technique used is multiple linear regression to explain how much influence the independent variable has on a dependent variable. The SP

Keywords
Financial Technology, Peer to Peer Lending, Theory Planned Behavior (TPB), Atitude Toward the Behavior, Subjective Norm, Perceived Behavioral Control, Behavioral Intention.

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/GJQckK2ht9ZE

Corresponding Author
Bunga Sukma Mefatisani

Institutions
ab Trilogi University, Jakarta and Indonesia
bungasukma01[at]gmail.com
cd Trilogi University, Jakarta and Indonesia
lelydahlia[at]trilogi.ac.id

Abstract
The study aims to explain the behavior of electronic money usage through the implementation of the Unified Theory of Acceptance and Use of Technology 2 (UTAUT 2) model that is collaborated with two other variables, including the factors examined Includes performance expectations, effort expectations, social influences, facilitation conditions, hedonist motivation, price value, habits, technological perception of security and the perception of Muslim society on electronic money transactions. UTAUT 2 is a model of acceptance and use of technology that combines the best features of several other technological acceptance theory models. This type of research is quantitative descriptive. Research is located in South Jakarta. Data is obtained using an online questionnaire with 176 respondents. Hypothesis testing was conducted using Structural Equation Model (SEM) with the Partial Least Square (PLS) application. The results of this study indicate that the application of the UTAUT 2 theory is positively influential in the behavior of electronic money usage, the security perception of technology doesn-t have a positively affects on the behavior of electronic money usage and the perception of Muslim society using electronic money has doesn-t have positive effect. Therefore, governments and electronic money-issuing parties need to consider the use of the UTAUT 2 theory model to be able to supervise and assess the product in the community, increased secutiry on electronic money servers is needed to increase community confidence, and the government is building partnership with electronic money publishers Syari-ah in order to minimize the concern of Muslim in using electronic money.

Keywords
Electronic money, UTAUT 2, technology security, Muslim perception, electronic money usage behaviour

Topic
Finance and Risk Management

Link: https://ifory.id/abstract/u7nUKCvPgXq4