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Theory of the Firm, Agency Costs, and Ownership Structure
... Teori keagenan memandang adanya hubungan antara pemilik (principal) dengan manajer perusahaan (agent) dipercaya oleh principal untuk mengelola perusahaan. Pemberian kompensasi yang sesuai dan tepat kepada agent dilakukan untuk menghindari aktivitas menyimpang yang dapat terjadi (Jensen & Meckling, 1976). Dalam pelaksanaannya, agent cenderung oportunis tanpa pemantauan yang efektif akan mengeksploitasi pemilik. ...
... Hal ini menunjukkan bahwa Remunerasi tidak berpengaruh signifikan terhadap Kinerja Utama Perguruan Tinggi. Hasil yang diperoleh tidak sejalan dengan agency theory yang memandang bahwa peningkatan kinerja perusahaan dapat dicapai dengan peningkatan remunerasi direksi (Miller & Sardais, 2011) dan pemberian kompensasi yang sesuai dan tepat kepada agent untuk menghindari aktivitas menyimpang yang dapat terjadi (Jensen & Meckling, 1976). Hasil tersebut mendukung penelitian Nurhidayah and Munari (2022), Dewi et al. (2022), namun tidak mendukung penelitian Jawad and Iqbal (2018), Tarwijo (2019), Permana and Bharoto (2021 (2019), Evaliandia and Sulistyowati (2020), Hidayat (2023), namun tidak mendukung penelitian Zulfikar and Ruhiat (2018), Indarti et al. (2022). ...
... (Jensen & Murphy, 1990). Remunerasi merupakan alat yang sesuai untuk menghindari aktivitas menyimpang agent agar terwujudnya rasa keadilan (Jensen & Meckling, 1976). Hasil tersebut tidak mendukung penelitian Muslih (2018), namun mendukung penelitian Sancoko (2010) ...
Affiliation: 1,2,3,4 Fakultas Ilmu Pendidikan, Universitas Negeri Malang, Malang, Indonesia ABSTRACT Purpose: This research aims to empirically test the influence of performance-based budgeting and remuneration on the main performance of higher education institutions which is mediated by good university governance Methodology/approach: This research is causal research with a quantitative approach using path analysis. The data used is primary data obtained from a sample of 42 people by distributing questionnaires using Google Form. Answer measurement uses a Likert scale. Findings: Performance-based budgeting mediated by good university governance has a significant effect on the main performance of higher education institutions. Remuneration mediated by good university governance has a significant effect on the main performance of higher education. Performance-based budgeting has a significant effect on good university governance. Remuneration has a significant effect on good university governance. Performance-based budgeting cannot directly improve the main performance of higher education institutions because it does not have a significant effect. Direct remuneration cannot improve the main performance of higher education because it does not have a significant effect. Good university governance has a significant effect on the main performance of higher education. Practical implications: Improving higher education performance can be done through the application of
... Teori keagenan membahas manajer dengan pemilik bahwa diantaranya terdapat kontrak kesepaktan. Kesepakatan kontraktual dapat terealisasi dengan baik maka principal melimpahkan otoritas kepada manajer dan agen bertanggung jawab untuk kemakmuran principal (Jensen & Meckling, 1976). Hubungan agency theory dalam penelitian ini karena terjadinya beda kepentingan perusahaan sebagai agen dan principal fiskus. ...
... Pemaparan teori, principal (pemilik perusahaan) dalam aktivitas operasional tidak mendapatkan informasi seperti kondisi agen sehingga menimbulkan kekuatiran apakah tindakan agen (manajemen) adalah untuk kepentingan terbaik perusahaan. Pihak manajemen harus mempertanggung jawabkan wewenang yang dilimpahkan pihak principal (Jensen & Meckling, 1976). Principal menghendaki agen melakukan kegiatan perusahaan dan setiap kebijakannya sesuai tujuan pemilik. ...
... Tax avoidance usaha menekan beban pajak melalui cara tertentu serta tidak melanggar undangundang. Teori mendasari penelitian ini adanya kesepakatan kontraktual dapat terealisasi dengan baik maka pemilik melimpahkan otoritas kepada manajer dan agen bertanggung jawab untuk kemakmuran principal (Jensen & Meckling, 1976). Terdapat dua variabel yang memengaruhi tax avoidance. ...
The aim of this research is to examine the effect of company size and Capital Intensity on tax avoidance of mining companies in 2019-2021. Sampling using purposive sampling technique, the number of data is 42. Types of quantitative data and secondary data. Multiple regression data analysis techniques, coefficient of determination, and hypothesis testing (t test). The results of research on firm size and Capital Intensity have no effect on tax avoidance. Big companies will not do tax evasion because they have a reputation. Fixed asset investment aims to improve the company's operations to achieve high profits.
... Agency theory discusses the relationship between the principal as the owner of the company and the agent as the manager of the company (Jensen & Meckling, 1976). In agency theory, company managers (agents) often get better information about the condition of the company than company owners (principals). ...
... Agency theory discusses the relationship that occurs in a company where there is a company owner (principal) and company manager (agent) (Jensen & Meckling, 1976). Agency theory views the firm as a set of contracts between self-interested individuals (O'Donnell & Sanders, 2003). ...
... Agency theory discusses the relationship that occurs in a company where there is a company owner (principal) and company manager (agent) (Jensen & Meckling, 1976). In agency theory, company managers (agents) often have better information about company conditions than company owners (principals). ...
Purpose-This study aims to examine how digitalization disclosures affect the quality of accounting information. The quality of accounting information is important for a company because it have an impact on internal and external parties. However, in Indonesia, digitilization disclosure is still an issue. Therefore, this study was conducted to address this problem by making digitalization a variable that can influence the quality of accounting information. Digitalization can increase transparency and accuracy through automation in the financial reporting process. Hence, increases the quality of financial reporting. However, the hypothesis of this research was rejected because the measurement of digitization used in this research was measured through voluntary disclosures by companies in the company's annual report, where in this case not all companies implementing digitization disclosed their digitalization efforts. Design/methodology/approach-The sample in this study are companies engaged in food and beverage, textile, and chemical sectors. This study focused on these three sectors because they are in line with a development initiative called "Making Indonesia 4.0". Research on this topic is still in the exploratory stage. Findings-The results of this study show that the application of digitalization in companies has not been maximized. However, this study shows that the application of digitalization has a negative but insignificant effect on absolute discretionary accruals which describes the behavior of accrual earnings management. Originality/value-Further research on the effect of digitalization disclosure on the quality of accounting information is still rare and is still in the exploratory stage. In addition, this study is supported by the Indonesian government's initiatives in order to encourage the implementation of digitalization of Indonesian companies called "Making Indonesia 4.0" which is in line with this research. Research limitations/implications-. The results of this study show that the application of digitalization in companies has not been fully maximized. This research shows that the application of digitalization is able to reduce the absolute level of discretionary accruals which describes accrual earnings management behavior. This can be seen from the negative influence of the variable implementing digitalization on absolute discretionary accruals. Hence, the application of digitalization is considered capable of reducing information asymmetry so that it can improve the quality of accounting information. The future aim is that this information can be useful to generate more profits or help resolve future financial problems because quality information is able to present the actual state of the company.
... Agency theory discusses the relationship between the principal as the owner of the company and the agent as the manager of the company (Jensen & Meckling, 1976). In agency theory, company managers (agents) often get better information about the condition of the company than company owners (principals). ...
... Agency theory discusses the relationship that occurs in a company where there is a company owner (principal) and company manager (agent) (Jensen & Meckling, 1976). Agency theory views the firm as a set of contracts between self-interested individuals (O'Donnell & Sanders, 2003). ...
... Agency theory discusses the relationship that occurs in a company where there is a company owner (principal) and company manager (agent) (Jensen & Meckling, 1976). In agency theory, company managers (agents) often have better information about company conditions than company owners (principals). ...
... Profitability is measured by EBITDA scaled by total assets. The predominant view in the corporate finance literature, influenced by the seminal work of Jensen and Meckling (1976), is that leverage increases the incentive to engage in riskshifting activities. As this affects previous and current loan outcomes, I control for firm leverage using the ratio of total debt to total assets. ...
... For larger borrowers, lead arrangers retain a smaller portion of the loans. In line with the prediction of agency-based theory (Jensen and Meckling 1976;Myers 1977) and the shift of control rights on a statecontingent basis (Gârleanu and Zwiebel 2009), the retained shares of lead arrangers decrease with loan size, maturity, and covenant. ...
... As noted by , the choice of borrowing from a relationship lead arranger or lending to a relationship borrower may not be made at random but rather endogenously determined. To address this concern, I employ alternative estimation techniques such as propensity score matching Imbens and Wooldridge 2009) and binary endogenous treatment models (Heckman 1978(Heckman , 1979. ...
The lead arrangers of syndicated loans often have lending relationships with the borrowers, while other lenders participating in the syndicate largely engage in an arm’s length transaction. Relatively little is known about how these relationships affect the shares of syndicated loans that the lead arrangers retain in their portfolio. Using a random sample of 10,328 syndicated loans made to 7316 nonfinancial U.S. firms over the period 1987 to 2013, this paper investigates the impact of lending relationships on the shares of loans retained. The results show that lending relationships are associated with a significant reduction in retained shares. These results are robust to alternative estimation techniques, such as propensity score matching and binary endogenous treatment models, which are employed to address endogeneity concerns. Furthermore, the results provide additional evidence that the existence and strength of lending relationships lead to decreased retained shares, particularly for non-top-tier lead arrangers. Moreover, the findings also demonstrate that when lead arrangers have lending relationships with borrowers, they retain significantly smaller shares whether the loans are made to informationally opaque, small, or speculative-grade-rating firms. Overall, the findings of this paper have important implications for lenders seeking to reduce their risk exposure in syndicated loans.
... It is a dyadic contract with mutual rights and obligations for agents and principals. The principal owns economic resources, and the agent agrees to perform duties in the principal's best interests (Jensen & Meckling, 1976). Principals are obligated to transfer some of their wealth to the agent for a profit on their investment, constituting the agents' obligation to maximize investors' wealth in exchange for specific compensation. ...
... Principals are obligated to transfer some of their wealth to the agent for a profit on their investment, constituting the agents' obligation to maximize investors' wealth in exchange for specific compensation. The ideal relationship, or "Pareto-optimality," of the agent-principal contract arises when neither party can enhance their wealth at the expense of the other (Jensen & Meckling, 1976). When there is a conflict of interest between agents and principals, the agents frequently profit from having more inside information than the principal because they are the entity that controls the company. ...
... When the principal and agent's contract is outcome-based, the agent is more likely to act in the principal's best interests. It was inspired by Jensen & Meckling (1976), who stated how increasing managers' ownership of the company reduces managers' opportunism. Second, when the principal has information that may be utilized to validate the agent's conduct, the agent is more likely to behave in the principal's best interests. ...
Systematic and non-systematic risk can both cause investment risk. Internal company conditions typically cause non-systematic risk. Diversification can help to mitigate this risk. This research aims to look into applying fair value to idiosyncratic risk. This quantitative study employs secondary data from manufacturing financial statements and stock data from the IDX. In addition, this study uses monthly data on 10-year government bond yields. Information on financial statements was obtained from www.idnfinancials.com, stock prices from www.finance.yahoo.com, and monthly 10-year government bond yields from www.bloomberg.com. In total, 575 observations were used in this study (firm-year). We used multiple linear regression analysis on panel data to test the research hypothesis. The study finds that managers' fair value accounting relates to idiosyncratic risk. The results of this test apply to both the market and the Fama-French models. This study contributes to knowledge development concerning fair value testing, which still needs to be improved in developing countries.
... Overinvestment is associated with the managers behavior of investing in negative NPV projects. The overinvestment problem is that managers might abuse their power by accepting undesirable projects that could hinder the shareholders' and bondholders' value (Jensen & Meckling, 1976). ...
... The overinvestment problem is based on the assumption that managers stress their interest contrary to the shareholders', leading to decline the firm's total value (Jensen & Meckling, 1976). Managers consider the firm a source of economic profit, self-esteem, and increase their capital. ...
... However, when R&D investment increases beyond the optimum level, it hinders the firm's performance due to the possible agency problem. As Jensen and Meckling (1976) asserted, overinvestment is inherited with managerial behavior of investing in negative NPV projects, which ultimately hinders firm performance. The overinvestment problem happens when management invests in risky projects that could hamper the shareholders' and bondholders' value (Jensen & Meckling, 1976 ...
This study examines the R&D investment and firm performance nexus under a three-stage sigmoid model on 923 firms in ten African countries. I applied a two-step system GMM, robust OLS, Fixed and Random Effect regression models to check the sensitivity of the assumption of the sigmoid model to different regression approaches, and the result proves it. This study demonstrates a three-stage sigmoid model. There exists a signficant negative relationship between underinvestment and firm performance (stage 1), a significant positive relationship between optimum investment and firm performance (stage 2), and a signficant negative relationship between overinvestment and firm performance (stage 3). It suggested that African firms should maintain optimum investment in their R&D projects to maintain positive profit.
... Interpretation of these relationships can be facilitated through agency theory, the convergence of interests' hypothesis, and managerial entrenchment. In the initial perspective, Jensen and Meckling (1976) assert that ownership concentration and increased shareholder competition have a positive impact on corporate performance. They argue that heightened competition among shareholders, facilitated by internal and external mechanisms, mitigates agency problems and conflicts of interest between shareholders and managers. ...
... However, the increase in managerial ownership aligns their interests more closely with those of external shareholders, potentially resolving conflicts between managers and shareholders. Consequently, managerial ownership is considered a contributing factor to addressing agency problems and improving corporate performance (Jensen & Meckling, 1976). In a contrasting perspective, Fama and Jensen (1983) redirect their attention to the implications of agency problems arising from shareholder concentration and control. ...
Abstarct The primary purpose of this study was to examine the evidence of managerial entrenchment or convergence of interest's hypothesis in evaluating the relationship between the shareholder competition's intensity on the return and value of Iranian stock exchange companies. This research is applied, a post-event method and descriptive type; it is included in the category of threshold nonlinear regression models. In this article, the data of 127 production companies active in the stock exchange market over the period of 2012-2021 were used.The results confirm the existence of a threshold non-linear relationship between the intensity of shareholder competition and the performance of the company; In other words, if the share of state owners increases, the hypothesis of convergence of interests prevails in the managerial entrenchment. This means that the major shareholders try to reduce agency conflict through control and supervision and align their interests with the managers and minority stockholders to increase the company's value and return. Conclusion: At high levels of concentration, shareholders by dominating the market are able to benefit from tariff exchange rates, cheap feed, and government support; therefore, these stockholders being in the safe margin, do not feel threatened by competitors and can use their resources in profitable activities with high return and value
... Agency theory explains that the role separation between the principal (owner) and the agent (management) might cause agency problem due to the gap of interest between both parties (Jensen & Meckling, 1976). The bigger the gap of interest is, the bigger the problem in the company will be. ...
... Agency theory explains that the role separation between the principal (owner) and the agent (management) might lead to the agency problem due to the gap of interest between both parties (Jensen & Meckling, 1976). The bigger the gap of difference is, the bigger the problem that might occur in the company and the more influenced the company performance will be. ...
... Agency theory according to (Jensen & Meckling, 1976) is a concept of agency relationship (agency relationship) that arises because of the existence of a contractual relationship between principal and agent. The principal is the party that gives the mandate to the agent to carry out all activities on behalf of the principal, in this case, the agent has the capacity as a decision maker. ...
... The results of this study do not support the Agency Theory (Jensen and Meckling, 1976) which states that in a relationship with the central government (principal) that delegates authority to the village government (agent) to carry out village financial management, so that the village government must comply with all conditions determined by central government by providing financial reports that are in accordance with the wishes of the central government with the competence of village officials to make this happen (Murthy & Jack, 2017). ...
This purpose of the research is to determine the effect of human resource competence, morality, internal control systems, and whistleblowing on the prevention of fraud in village financial management. The type of data in this research is quantitative. This research was conducted in 7 (seven) Kelurahan in Kapanewon Tempel using a questionnaire. The population in this study is the village apparatus as the holder of the power to implement village financial management in Kapanwon Tempel. The sample in this study was 94 respondents consisting of Lurah, Carik, Danarta, Village Consultative Body, and Hamlet in 7 (seven) Kelurahan in Kapanewon Tempel. The sample selection used a non-probability sampling and the data analysis assisted by the SPSS 20 program. The data analysis method used was the multiple linier regression method. The result of the research prove that human resources competence and whistleblowing have no effect on preventing fraud in village financial management, while morality and internal control systems have a positive effect on prevention fraud in village financial management at the Village Government in Kapanewon Tempel. Keywords: Human Resource Competence; Morality; Internal Control System; Whistleblowing; and Final Prevention In Village Financial Management.
... In addition, moral hazard is also a consequence of the conflict of interest between customers and service providers when there is information asymmetry (Xuan et al., 2021). At the same time, due to the separation of ownership, control and risk appetite of the participants (Eisenhardt, 1989;Jensen, 1986;Jensen and Meckling, 1976) it cannot be expected that the bank will not be interested in risk-taking and will always act for safety and sustainability, because risk and expected return are always opposite but unifying sides of every decision-making in business (Anginer and Demirgüç-Kunt, 2018;Cheng and associates, 2018;Girling, 2022). Since then, the consequences of asymmetry of information and interests in the process of operation are the cause of moral hazard in banking activities. ...
... There are many causes of moral hazard. Jensen and Meckling (1976) or later Dembe and Boden (2000), Girling (2022) concluded that the main cause of moral hazard in the banking business is the asymmetry of information. Asymmetric information is the term refers to situation that management cannot be assured and cannot control over the behaviors of their employees. ...
... Hal tersebut akan menimbulkan biaya agen (agency cost) bagi perusahaan. Sehingga dalam perkembangannya, muncul teori mengenai agency theory yang ditemukan oleh (Jensen & Meckling, 1976), yaitu hubungan keagenan di mana terdapat kontrak yang menegaskan jika pemegang saham memohon kepada manajer agar melakukan jasa tertentu demi kepentingan pemagang saham dengan cara memberi delegasi atau wewenang otoritas kepada pemegang saham. ...
... Teori Agensi ini ditemukan dan dikemukakan oleh (Jensen & Meckling, 1976) yang menyebutkan bahwa terdapat pendelegasian wewenang dari pemegang saham (principal) kepada manajemen perusahaan (agent) untuk memberikan suatu jasa dan kemudian mendelegasikan pengambilan keputusan kepada agent tersebut. Para ahli agency theory, berasumsi bahwa hubungan yang terjadi antara keduanya (principalagent) memiliki kepentingan masing-masing (self interests) dan kepentingan tersebut terdapat banyak perbedaan dari sudut pandang keduanya. ...
Pengaruh Penerapan Corporate Governance Terhadap Nilai Perusahaan Pada Perusahaan Manufaktur Sub Sektor Makanan & Minuman yang Terdaftar di Bursa Efek Indonesia Periode 2016 – 2020. Penelitian ini bertujuan untuk mengetahui pengaruh penerapan Corporate Governance yang diproksikan dengan Kepemilikan Institusional, Kepemilikan Manajerial, Jumlah Dewan Komisaris, dan Komisaris Independen terhadap Nilai Perusahaan pada perusahaan manufaktur sub sektor makanan & minuman yang terdaftar di Bursa Efek Indonesis periode 2016 – 2020 baik secara simultan maupun secara parsial. Objek penelitian ini adalah perusahaan manufaktur sub sektor makanan & minuman yang terdaftar di Bursa Efek Indonesia selama periode 2016-2020. Dengan menggunakan metode purposive sampling, diperoleh 8 perusahaan yang menjadi sampel penelitian dari populasi perusahaan yang berjumlah 26 perusahaan. Jenis data yang digunakan adalah data sekunder yang bersumber dari laporan tahunan (annual report) perusahaan. Penelitian ini menggunakan metode analisis regresi linear berganda. Hasil penelitian menunjukkan bahwa secara simultan Kepemilikan Institusional, Kepemilikan Manajerial, Jumlah Dewan Komisaris, dan Komisaris Independen berpengaruh terhadap Nilai Perusahaan. Hasil penelitian secara parsial menunjukkan bahwa Kepemilikan Institusional dan Kepemilikan Manajarial tidak berpengaruh terhadap Nilai Perusahaan, sedangkan Jumlah Dewan Komisaris dan Komisaris Independen berpengaruh terhadap Nilai Perusahaan.
... Agency theory, developed by Jensen and Meckling (1976), posits that companies with a separation of ownership and management and differences in controlling and minority share ownership are prone to information asymmetry and conflicts of interest regarding dividend payments. While owners expect high dividends, management may prefer to allocate profits towards company growth rather than distributing dividends. ...
... Allah SWT says in the Qur'an surah Al Maidah verse 8 regarding honest and fair behavior. The role of grand theory in the formation of hypotheses, such as agency theory by Jensen and Meckling (1976), pecking order theory by Myers and Majluf (1984), and dividend irrelevance theory by Modigliani and Miller (1961), is crucial in the context of presenting other comprehensive income (OCI) information in financial statements. In particular, OCI information presented in the income statement enhances the representativeness, predictive value, and transparency of financial statements. ...
The concept of Other Comprehensive Income (OCI) refers to the difference between the fair value and historical value of assets, resulting from applying fair value principles in financial statement preparation. Despite being unrealized income, it affects equity, and some of its items have a real potential to be realized in the coming period. Previous research has mainly studied the effect of realized income (net income) on dividends, while the impact of unrealized income on dividends, especially in Indonesia, has received limited attention. This study investigates the relationship between OCI and dividends for 682 companies listed on the Indonesia Stock Exchange using data from annual reports spanning from 2015 to 2021. This study employs descriptive statistics, correlation analysis, multiple linear regression analysis, and path analysis to examine the mediating role of profitability and operating cash flows in the relationship between OCI and dividends. The results reveal that OCI, as a whole, does not have a significant impact on dividends. However, when analyzing only the items within OCI that are "to be reclassified to net income", specifically gains (losses) on “available-for-sale financial assets”, the study identifies a significant and positive relationship between OCI and dividends. These findings suggest that incorporating OCI with net income in the income statement format can enhance the relevance of financial information for users, emphasizing the importance of considering the impact of unrealized income on dividends and the mediating role of profitability and operating cash flows.========================================================================================================ABSTRAK – Dapatkah Other Comprehensive Income Mempengaruhi Pembayaran Dividen di Indonesia? Konsep Other Comprehensive Income (OCI) merujuk pada perbedaan antara nilai wajar dan nilai historis aset, yang dihasilkan dari penerapan prinsip nilai wajar dalam penyusunan laporan keuangan. Meskipun merupakan penghasilan yang belum direalisasi namun mempengaruhi ekuitas dan beberapa item diantaranya ada potensi nyata terealisasi di periode yang akan datang. Kajian sebelumnya, terutama di Indonesia, umumnya hanya menguji pengaruh pendapatan yang terealisasi terhadap dividen, sedangkan pengaruh pendapatan belum terealisasi belum banyak dieksplorasi. Kajian ini bertujuan untuk meneliti hubungan antara OCI dan dividen pada 682 perusahaan yang terdaftar di Bursa Efek Indonesia menggunakan data dari laporan tahunan selama periode 2015- 2021. Analisis data dilakukan dengan statistik deskriptif, analisis korelasi, analisis regresi linear berganda, dan analisis jalur untuk mengeksplorasi peran mediasi variabel profitabilitas dan arus kas operasi dalam hubungan antara OCI dan dividen. Hasil kajian menunjukkan bahwa secara keseluruhan, OCI tidak memiliki dampak signifikan terhadap dividen. Namun, ketika analisis hanya dilakukan pada item-item OCI kelompok “yang akan direklasifikasi ke laba bersih”, khususnya pada item keuntungan (kerugian) aset keuangan tersedia untuk dijual, OCI berpengaruh positif signifikan terhadap dividen, dan profitabilitas serta arus kas operasi juga memediasi pengaruh OCI terhadap dividen. Temuan ini menunjukkan bahwa menggabungkan OCI dengan laba bersih dalam format laporan keuangan dapat meningkatkan relevansi informasi keuangan bagi pengguna, dengan menekankan pentingnya mempertimbangkan dampak penghasilan yang belum direalisasi pada dividen dan peran mediasi dari profitabilitas dan arus kas operasi.
... The agency theory developed by Jensen & Meckling (1976) also explains the relationship between independent and dependent variables. Agency theory is defined as an agency relationship, which is a contract where one or more people (principals) engage another person (agents) to perform some service on their behalf, which involves delegating some decision-making authority to the agent. ...
Purposes: The research aims to test and determine the influence of the components in the fraud hexagon on fraudulent financial statements.Methods: The population in this research are property and real estate sector companies listed on the Indonesia Stock Exchange and Malaysia Stock Exchange in 2020-2022. The study’s sampling technique used purposive sampling to obtain 77 companies with 187 units of analysis. Data were analyzed by panel data regression analysis using Eviews 12.Findings: The results show that financial targets, the nature of the industry, and ineffective monitoring positively and significantly affect fraudulent financial statements. Meanwhile, external pressure and the frequent number of CEO pictures reduce fraudulent financial statements. As for director experience, political connections and changes in auditors do not affect fraudulent financial statements.Novelty: Novelty in this research, namely the use of populations in Indonesia and Malaysia. The proxy used to represent the capability element also uses the director experience variable, which is rarely used in previous research.
... An agency relationship is an agreement wherein one or more individuals (principals) delegate certain decision-making authority to another individual (agent). To minimize conflicts of interest and information asymmetry, principals need to conduct monitoring such as requiring agents to provide accurate and transparent reports on company performance [15]. One of the reports that tries to present a comprehensive assessment on the company's performance both financial and non-financial is an integrated report. ...
While sustainability reporting has made significant strides in recent years, a noticeable gap persists between reporting practices and corresponding assurance measures. This paper emphasizes the alignment of sustainability assurance statements with the essential elements mandated by the ISAE 3000 assurance standard. A content analysis was conducted on the assurance statements of twenty (20) publicly listed companies across 20 different exchanges over a three-year span from 2020 to 2022. The analysis employed a quantitative approach, utilizing scoring to assess the alignment of the content with the requirements of the assurance standard. The research instrument was based on the minimal content elements of ISAE 3000 and developed by previous studies. The study reveals high quality levels among all assurance providers in the sample. Country-wise, the quality level is high for all countries except Japan, Thailand, Denmark, and Australia, which exhibit a medium quality level. Similarly, sectors in the sample generally exhibit a high quality level, except for consumer goods and industrial sectors, which demonstrate a medium quality level. The study also identifies variability in the content elements of assurance statements.
... Literature Review Agency Theory Agency Theory is a relationship where management acts as an agent entrusted by investors to manage the firm. This theory was first put forward by Jensen & Meckling (2019). In this case, according to him, the firm owner is the "agent," while the shareholder is the "principal." ...
This study proposes to understand the influence of return on assets, current ratio, debt-to-equity ratio, and total asset turnover on firm value. The research method used is quantitative and uses secondary data, namely the corporate sub-sector cosmetics and household goods listed on the Indonesian Stock Exchange (IDX). The sample used is as many as 6 firms, period 2015-2020 through the purposive sampling method. The method of analysis of panel data. The results obtained in this study show that the simultaneous return on assets, current ratio, debt-to-equity ratio, and total asset turnover affect the firm value. A partial return on assets effect has a negative and significant impact on firm value, a current ratio effect has a positive and significant impact on firm value, a debt to equity ratio has no significant effect on firm value, and total asset turnover has a positive and significant effect on firm value. The managerial implication of these findings is the importance of management in optimizing the use of assets, maintaining healthy financial ratios, and managing the firm's capital structure wisely. Managers need to pay attention to these financial performance indicators of firm value.
... Despite this, given the informational asymmetry between voters and rulers, the competence of rulers and the signaling of this competence emerge as fundamental variables for success in the electoral campaign (Arvate & Biderman, 2005;Arvarte, Avelino, & Lucinda, 2008). Thus, the public manager, according to agency theory (Jensen & Meckling, 1976), taking advantage of informational asymmetry, can seek to influence public opinion through the discretionary management of the available public budget. ...
... Type 1 agency theory addresses the conflict of interest between principals and agents (Jensen & Meckling, 1976). Hence, the supervisory structure through the board of commissioners is needed to bridge the conflict of interest between shareholders and management. ...
Purpose: The primary purpose of this study is to see the impact of the presence of a woman board of commissioners (WBoC) on firm performance (FP). In addition, this study looked at the effect of moderation of family ownership (FO) on the influence of WBoC on FP.Design/methodology/approach: This study used secondary data with a sample of all companies listed on the Indonesia Stock Exchange from 2017 to 2021. The study used a total of 788 observations. The data were analyzed using moderate regression analysis with unbalanced panel data.Findings: The results revealed that WBoC did not affect TQ and ROA. Empirical research shows that FO strengthens WBoC in increasing ROA and TQ.Research limitations/implications: In Indonesia, the portion of the representation of each company's woman board of commissioners is only one member on average at 78%. As many as 22% of companies with a board of commissioners are more or equal to 2 members.Practical implications: This study also serves as a guide for shareholders in selecting competent woman boards of commissioners for an effective supervisory system that drives the company's success.Originality/value: This study analyzes the impact of share ownership dominated by family companies on the relationship between the existence of a woman board of commissioners and firm performance. Therefore, this research is significant to understand the role of FO in helping women build leadership, gain recognition, and be empowered to improve firm performance.
... The board of directors is the main instrument for aligning and reconciling the interests of the organizations' partners and those responsible for managing the companies [2]. In this sense, the function of the board of directors is considered essentially as control, based on agency theory, where the board seeks to reduce the opportunism of agents, ensuring that management does not have objectives and interests antagonistic to those of shareholders and owners [3][4][5]. The board serves as a crucial intermediary, facilitating communication between managers and shareholders. ...
Corporate governance relies significantly on the board of directors, who act as custodians of shareholders' interests. The dynamics of social connections between Chief Executive Officers (CEOs) and board members form a critical element that influences information exchange within this vital governance structure. This study seeks to assess the impact of these social connections on organizational performance. We conducted a comprehensive analysis of the professional backgrounds of CEOs and board members to measure the extent of their social connections. Employing multiple regression analysis with robust error corrections, we considered essential economic and financial metrics, including Return on Assets (ROA), Return on Equity (ROE), and Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA). Our findings reveal that professional social connections have a positive influence on ROA (β = 0.0230|p-value ≤ 0.05) and EBITDA (β = 420,517,1|p-value ≤ 0.05), while educational connections exhibited no significant effect, and familial connections were found to adversely affect EBITDA (β = − 516,307,0|p-value ≤ 0.05). This study highlights the real influence of social connections on firm performance, shedding light on the complex interplay between social dynamics and corporate success. These insights contribute to a more comprehensive understanding of corporate governance and the factors driving organizational performance.
... Hubungan keagenan dimaknai sebagai sebuah hubungan antara principal atau pemilik yang merekrut agen (manajemen) untuk mengelola perusahaan (Jensen & Meckling, 1976). Seorang agen memiliki peran untuk memastikan perusahaan berjalan secara efektif dan efisien dengan tetap mematuhi ketentuan yang berlaku. ...
The government continues to strive to increase tax revenue targets. These efforts were followed by the government's consistent efforts to minimize tax avoidance through PP 55 of 2022 by developing tax avoidance prevention instruments. This research was conducted to analyze the relationship between corporate governance, financial performance, and the quality of an entity's auditors on the entity's tendency to act tax aggressively. The dependent variable in this research is tax aggressiveness measured by the effective tax rate. The dependent variables are corporate governance (measured by the proportion of independent commissioners and number of audit committees), financial condition (measured by profitability and leverage), and audit quality (measured by dummy variables). Data analysis uses multiple linear regression analysis. The test results show that profitability has a positive effect, and leverage has a negative effect on the tendency for tax aggressiveness. Other variables, namely corporate governance and audit quality, are proven to have no influence on the tendency for tax aggressiveness.
... In the context of public sector organizations, the relationship between principal and agent organizations is present within society as voters and public managers or elected leaders (Gailmard, 2012). Jensen & Meckling (2019) argued that the key assumption underpinning the principal-agent relationship is that the principal and agent are rational, they do not have the same interests and act to maximize their utilities. Elected leaders as agents have incentives to obtain and retain power, hence they need vote share. ...
p>This study investigates the relationship between incumbents' re-election incentives and financial reporting disclosure in the Indonesian local government. This study uses a sample of 351 local governments at the city or district level throughout 2015-2017 when they ran a local election. Content analysis is used to assign scores to the extent of disclosure. The incumbent mayor or regent who runs a second election is signaled by 1 and 0 otherwise as the proxy for the incumbent's re-election incentives. Cross-sectional multiple regressions will be conducted to examine the hypothesis that there is a significant relationship between an incumbent's re-election incentives and disclosure of financial statements in the local government. Our findings show that incumbent re-election incentives do not have a relationship with the disclosure of financial reports. The incumbent incentive to be re-elected does not necessarily drive an incumbent to disclose its financial statements. Regarding the control variables, significant negative relationships exist between dependencies and the size of the local government towards disclosure level. However, the complexity of the population was positively related to the disclosure level of financial reports. On the contrary, political competition, debt ratio, and type of local government were not related to the disclosure level of the local government's financial reports.</p
... Pada SAK lama, kepentingan non pengendali disajikan di antara liabilitas dan ekuitas, bukan bagian dari isi ekuitas pemilik. Berdasarkan hal tersebut, maka kerangka konseptual penelitian ini sebagai berikut: Agency theory (Jensen & Meckling, 1976) menyatakan bahwa seiring bertumbuh kembangnnya perusahaan, pemilik (prinsipal) dengan keterbatasannya tidak dapat lagi mengelola perusahaan, untuk itu ia membayar profesional yang ditunjuk sebagai manajemen (agen) dan diberi kewenangan untuk mengelola perusahaan. Karena tidak mengelola keseharian roda aktivitas perusahaan, maka pemilik (pemegang saham atau investor sekuritas ekuitas) memiliki keterbatasan informasi tentang perusahaan secara utuh. ...
Penelitian ini bertujuan untuk menguji faktor apa saja yang mempengaruhi laba dan ekuitas yang diatribusikan tersebut. Belum banyak studi yang mengujinya, karena studi selama ini masih berada pada area dampak dari kemunculan laba dan ekuitas yang diatribusikan sebagai bentuk pembuktian relevansi nilai bagi pengguna. Sedangkan studi yang mengkaji faktor apa yang mempengaruhi laba dan ekuitas yang diatribusikan belum dilakukan, maka inilah novelty penelitian ini. Dengan menggunakan data observasi n=3.460 dari 692 perusahaan sebagai sampel yang terdaftar di IDX periode 2018-2022, penelitian ini membuktikan bahwa faktor yang mempengaruhi laba dan ekuitas yang diatribusikan adalah laba operasi, kepemilikan di entitas anak dan asosiasi, serta ukuran perusahaan.
... Managers may spend surplus funds on less-than-desirable investment alternatives, which may have unfavourable risk/return characteristics for investors, whether in good faith or in bad faith. The presentation of one of the most prominent research about agency expenses was made by (Jensen & Meckling 1976). The study provides a fresh perspective on the agency issue (Gautam, 2019), and most studies on the subject of agency costs utilize research as a standard for comparison (Thapa, 2021). ...
This study entitles, “Factors Analysis on Dividend Payout of Nepal Bank Limited, Rastriya Banijya Bank Limited and Agricultural Development Bank Limited” focused on quantities paid are decided on the company's performance analysis of Nepal Bank Limited (NBL), Rastriya Banijya Bank Limited (RBB) and Agricultural Development Bank Limited (ADB) taking three sample banks. This study focused to find the effects of different factors and on its dividend payout taking secondary data from 2012/13 to 2021/22. The study’s finding indicate that larger corporations may afford to pay bigger dividends because of their greater financial strength. Also the profitability ratio, company size, and leverage ratio all have a negative correlation with the dividend payout ratio and as the bank's size grows, the dividend distribution will be reduced and increases in net income have a positive impact on dividend payments, meaning that higher payments will be made when growth is strong.
... Teori ini menjelaskan bahwa pemilik perusahaan (principal) yang mempekerjakan manajer (agent) yang melaksanakan sejumlah pekerjaan tertentu atas nama pemilik dalam suatu kontrak yang legal (Jensen & Meckling, 1976). Kondisi ini menunjukkan pihak manajer akan mempunyai informasi yang lebih banyak mengenai perusahaan dibandingkan principal (Nurasiah & Riswandari, 2023). ...
Latar Belakang: Harga saham mencerminkan penilaian pasar atas kinerja perusahaan pada saat publikasi laporan keuangannya. Laporan keuangan harus dilakukan proses audit oleh auditor independen agar dapat dipercaya oleh penggunanya. Oleh karena itu kualitas audit menjadi hal penting yang dapat mempengaruhi perubahan harga saham. Tujuan: Penelitian ini bertujuan untuk membuktikan secara empiris proksi dari kualitas audit yakni ukuran KAP, spesialisasi auditor, opini audit, dan audit tenure yang berpengaruh terhadap harga saham.Metode Penelitian: Jenis penelitian ini adalah penelitian kuantitatif korelasional. Populasi yang dipilih adalah perusahaan perbankan yang listing di BEI dari tahun 2016-2021. Pemilihan sampel menggunakan purposive sampling. Analisis data menggunakan regresi logistik dengan bantuan SPSS.Hasil Penelitian: Kualitas audit dengan proksi spesialisasi auditor dan opini audit berpengaruh positif terhadap harga saham. Sedangkan, kualitas audit dengan proksi audit tenure berpengaruh negatif terhadap harga saham serta ukuran KAP tidak berpengaruh terhadap harga saham.Keaslian/Kebaruan Penelitian: Penelitian ini menggunakan proksi spesialisasi audit. Karena perusahaan perbankan mempunyai regulasi yang ketat sehingga auditor yang melakukan audit diperlukan yang spesialis.
... To align both principals and agents interests, various mechanisms such as performance-based incentives, monitoring, and contracts can be employed. Jensen and Meckling (1976) highlighted the separation of ownership and control in corporations as key factor contributing to agency problems. They discussed how conflicting interests between shareholders (principals) and managers (agents) could arise. ...
... Teori Keagenan merupakan hubungan kontrak yang terjadi diantara pengelola peruashaan (agen) untuk mengolah sumber daya yang telah disediakan oleh pemilik modal (principal) dan melakukan pengambilan keputusan atas bisnis yang dijalankan (Jensen and Meckling 1976). Kontrak antara agen dan pemilik modal harus direncanakan dengan baik untuk menyesuaikan kepentingan antara agen dengan pemilik modal. ...
Kehadiran Artificial Intelligence (AI) di era revolusi industri 4.0 telah memberikan kemudahan dalam hal otomatisasi dan kontrol serta meningkatkan proses audit dengan efisien. Tujuan dari penelitian ini adalah untuk mengetahui bagaimana persepsi auditor tentang kemudahan artificial intelligence dalam meningkatkan proses audit. Penelitian ini menggunakan teknik analisis data berupa studi literatur dengan pengumpulan data berupa literatur review yang dianalisis secara induktif. Hasil penelitian menunjukkan bahwa potensi keberadaan artificial intelligence dapat mempengaruhi persepsi dari perilaku auditor dalam peningkatan proses audit. Namun dalam menerapkan artificial intelligence pada proses audit, maka semakin banyak tantangan dan tanggung jawab yang dimiliki oleh auditor. Penulis berharap untuk memberikan gambaran terkait penerapan artificial intelligence yang dapat memudahkan auditor dalam melakukan proses audit.
... Agency problem, arises when the goals of the principal and the agent differ, while the risk-sharing conundrum arises when the principal and the agent may favor different courses of action due to various risk preferences. In the business world, there is an agency relationship between a firm's managers and its owners, since the owners assign daily management of their investment to managers (Jensen & Meckling, 1976, 2019. Eisenhardt (1989) contends that outcome-based contracts and information monitoring systems are the key existing solutions to the agency problem. ...
This study explores the effect of risk management committee gender diversity on the likelihood of financial distress among listed deposit money banks in Nigeria. The study utilizes the Nigerian Code of Corporate Governance 2018 as an instrumental variable to address endogeneity concerns related to the self-selection of gender diversity on the risk management committee. The dependent variable is the likelihood of financial distress, while the independent variable is the gender composition of the risk management committee. The sample size consists of 12 listed deposit money banks, and the data covers the period from 2017 to 2021. The analysis employs a two-stage regression analysis technique. The findings of this study reveal a significant positive effect of risk management committee gender on the likelihood of financial distress among listed deposit money banks in Nigeria. This suggests that a higher representation of a particular gender in the risk management committee is associated with an increased likelihood of financial distress. The results have important implications for policymakers, regulators, and banking institutions in Nigeria. The study highlights the need to consider gender diversity in risk management committees as a potential driver of financial distress. The findings call for proactive measures to promote a more balanced gender representation and inclusion in corporate decision-making processes within the banking sector. The findings emphasize the significance of gender diversity in risk management practices and provide valuable insights for stakeholders seeking to enhance risk assessment and mitigate the occurrence of financial distress in the banking sector.
... According to Jensen and Meckling (1976) agency theory, there will be issues with agencies as a result of the separation of corporate owners (principals) and managers (agents). Information asymmetry between owners and managers is a component of the agency dilemma (Destriana, 2015). ...
... Selain teori fraud hexagon, teori yang mendukung studi ini yaitu teori keagenan dan teori stewardship. Menurut teori keagenan (Jensen & Meckling, 1976), hal yang bisa menimbulkan terjadinya konflik ketika tidak adanya informasi yang seimbang antara pihak manajemen (agent) kepada pemilik perusahaan (principal). Dan dengan adanya tata kelola perusahaan yang dapat melakukan manajemen laba sehingga mampu menimbulkan unsur-unsur kecurangan dalam laporan keuangan. ...
Purpose: The objective of this study was to determine the impact of financial target, financial leverage, financial stability, and company size on earnings management and their effect on financial reporting fraud in tourism and recreation industry companies traded on the Indonesia Stock Exchange for the 2017-2021 period. Methodology/approach: This study uses secondary data, namely data obtained indirectly. The sampling technique in this study used a purposive sampling technique. There were 90 observation samples of data obtained. The analytical method of this research uses descriptive analysis and several types of evaluation using SmartPLS software. Findings: From this reseaxch, it was concluded that only financial targets have a significant impact on earnings management and financial reporting fraud. Meanwhile, financial leverage, financial stability, and company size do not have a significant impact on earnings management and financial reporting fraud. Earnings management has no significant impact on financial reporting fraud. Practical implications: Investors can lessen the risk of poor firm performance by focusing not only on profit-oriented financial data, but also on other investment-related data. Originality/value: This research analyzes the most recently published concerns raised in the literature on fraud and earnings management. This study serves as a guideline for financial report readers when evaluating financial information and corporate performance.
... Di satu sisi, pagu anggaran Perguruan Tinggi Negeri dan LLDIKTI tahun 2020 sebesar Rp. 29.695.480 Dalam Agency Theory, PTN merupakan instansi pemerintah yang tidak terpisahkan dari kementerian negara atau lembaga induknya (Jensen & Meckling, 1976). PTN merupakan agen dari menteri/pimpinan lembaga induknya dalam kerangka pencapaian program kementerian/lembaga. Dalam hubungan keagenan ini menteri/pimpinan lembaga (principal) membuat suatu perjanjian kinerja termasuk di dalamnya pendelegasian wewenang dengan PTN (agent) dengan harapan bahwa agen akan bertindak/melakukan pekerjaan seperti yang diinginkan principal. ...
Accreditation of current study programs as part of the quality of education, on the one hand, the higher education budget being disbursed by the government is getting bigger. The purpose of this study was to empirically examine the effect of State University Operational Assistance spending, Pure Rupiah spending and Non-Tax State Revenue spending on the Accreditation of State University A/Excellent Study Programs in Indonesia. This research is a causal research with a quantitative approach. The population in this study are State Universities under the Ministry of Education, Culture, Research and Technology. The sampling technique used purposive sampling. The data used is secondary data in the form of performance reports. The data analysis technique used is panel data regression. The results of the study show that in terms of State University Operational Assistance Expenditures, Pure Rupiah Expenditures and Non-Tax State Revenue Expenditure simultaneously affect Study Program Accreditation. Partially, State University Operational Assistance Expenditures have a positive and insignificant effect on State University A/Excellent Study Program Accreditation. Pure Rupiah spending has a positive and significant effect on Accreditation of A/Excellent Study Programs in State Universities. Expenditures of Non-Tax State Revenue have a negative and significant effect on the Accreditation of State Higher Education A/Excellent Study Programs
... In this case, agency theory is an appropriate approach to analyse conflict of interest differences between managers as agents and shareholders as principals (Jensen & Meckling, 1976). The conflict of interests makes the agent and principal try to find loopholes for their own interests to reap benefits, because both parties want to maximize their respective utility (Mahesa, 2018). ...
This paper examined the impact of profitability, leverage, management ownership, and dividend payout ratio on income smoothing of companies listed in IDX in the range of 2015-2020 based on Eckel Index. The lower the Eckel Index the higher the intensity of income smoothing and vice versa. The hypothesis proposed were tested by a multiple regression analysis. This research concluded that return on asset, debt to capital ratio, and dividend payout ratio have significant and positive impacts on the Eckel Index. It is interpreted that the higher these variables, the lower the intensity of income smoothing. However, this research revealed that management ownership has a negative and significant impact on the Eckel Index, thus proving that managers ownership will drive them to conduct the income smoothing.
... These findings are in line with the theoretical underpinning of the agency theory. This further indicates that an effective and robust risk committee composed of an adequate number of directors with frequent meetings improves monitoring and transparency, which in turn enhances risk disclosure quality (Jensen & Meckling, 1976). On the other hand, the presence of executive directors in the risk committee was found to have an insignificant positive impact on risk disclosure quality consistent with the agency theory. ...
Objective –This study investigated the impact of risk committee characteristics on the risk disclosure quality (RDQ) of listed insurance firms in Nigeria from 2011-2021.Design/Methodology –Data for the research was generated from the annual reports and financial statements of seventeen listed insurance firms sampled out of a population of twenty-one. The study employed descriptive summary statistics, correlation analysis, regression analysis and factor analysis to analyze the data gathered.Results –Using factor analysis, it was found that Risk Disclosure Quantity (RDQUANT) has the highest eigenvalue, making it the composite quality of the risk disclosure of listed insurance firms and denoting that the RDQ of insurance firms is best measured by the RDQUANT. Using GLS regression, it was found that Risk Committee Size (RCS) and Risk Committee Meeting (RCM) have a significant positive impact on the RDQ of Listed Insurance firms in Nigeria. Contrary, Risk Committee Executive Presence (RCEXP) has an insignificant negative impact on the RDQ of the listed insurance firms.Research limitations/implications –This result influences the efforts of regulatory authorities in their attempt to develop resilient corporate governance codes that guarantee qualitative risk disclosures. The study recommends that regulatory authorities in the Nigerian insurance industry should mandate the establishment of large risk committees and set higher thresholds for committee meetings over and above the traditional quarterly meeting. The risk committee should be composed of a lower number of executive directors.Novelty/Originality –The originality of this study lies in the usage of factor analysis to determine the best measure of risk disclosure quality in Nigeria. In addition, this is the first study of its kind to determine the impact of risk committee attributes on risk disclosure quality in the Nigerian Insurance industry.
... The agency model of interaction between managers (agents) and company owners (principals) offered by the Nobel prize winners M. Jensen and W. Meckling [35] is the classical theory which is the first in the study of corporate finance. In the agency theory the key problem is that of opportunistic behavior of managers who are better informed about the state of things in the company than shareholders. ...
This paper conducts a comprehensive literature review of the factors influencing the emergence of the CEO investment horizon problem – a preference for short-term investments over long-term ones. The root cause of this CEO issue, as in-dicated in existing literature, is often attributed to the CEO's personal risk attitude, shaped by factors like age, tenure, and cultural background.Numerous sources contributing to the short-term investment problem in public companies are described in the current academic literature. Prominent among these determinants are the challenges of quarterly reporting, the association of corporate performance with short-term metrics, market pressures, and the company's specific risk profile. A study by McKinsey & Company, focused on the short horizon problem, demonstrates that companies inclined toward short-term investments exhibit weaker fundamentals and performance. The consulting firm Ernst & Young has introduced the Long-term Orientation Index, offering a basis for cross-country comparison of decision horizons. In 2010, Antia and colleagues introduced a metric for measuring CEO decision horizons, which relies on CEO personal characteristics. Despite these efforts, a comprehensive literature review addressing the specificity of the CEO investment horizon problem and its dis-tinctions from the broader corporate investment horizon problem has been absent.This paper not only investigates the initial empirical exploration of the short investment horizon problem but also raises questions about its cross-country manifestations, its potential correlation with economic crises, and the relevant personal traits of CEOs for its study. Finally, the paper proposes various strategies to mitigate the CEO investment horizon problem within companies.
... According to Jensen & Meckling (1976), a legal agreement known as an agency relationship occurs when one or more people (the principals) select another person (the agent) to carry out a certain activity on their behalf. The agent is then given the freedom to choose what is in the principal's best interest.According to Eisenhardt (1989), agency theory is principally based on three assumptions about human nature (1) that people are typically selfinterested; (2) that people have limited capacity for thinking about the future (bounded rationality); and (3) that people invariably avoid taking risks (risk averse) . ...
This research discusses tax aggressiveness, corporate social responsibility, and capital intensity before and during the COVID-19 pandemic. COVID-19 is still a popular topic today. The COVID-19 has not only affected the health sector but also the economies of almost all parts of the world. The phenomenon of COVID-19 raises discussions about whether there have been changes in company actions before and during the pandemic. Many companies have been negatively affected by the pandemic, but there are some businesses that have survived and remain stable. The findings of this study can be used as a monitoring method to inform stakeholders about company performance both before and during the pandemic. The time frame used in the study was 2018 to 2021. The population in this study was taken from the food and beverage industry listed on the Indonesia Stock Exchange (IDX). The data used was obtained from the company's annual report. The results of this study show that there were differences in tax aggressiveness, disclosure of corporate social responsibility, and capital intensity before and during the pandemic. There was an increase in tax aggressiveness during the COVID-19 pandemic due to the provision of tax incentives by the government, which was seen by companies as a loophole to practice tax aggressiveness. CSR also increased during the pandemic because it is used as a risk management strategy and to increase profits. Meanwhile, the decrease in capital intensity was due to a decrease in the company's fixed assets during the pandemic. Companies are trying to maximize the use of fixed assets and reduce costs that can reduce company profits. Further research is expected to use other variables and conduct research in different sectors with a larger number of samples.
... Meanwhile, according to agency theory, the board is a useful control mechanism for aligning the interests of ownership and management both in relation to financial and nonfinancial information (Jensen & Meckling, 1976) including through IR. Besides, to limit the agency's problems, corporate executives are influenced by board characteristics to strengthen disclosure practices (Chouaibi et al., 2020). ...
... Teori keagenan (agency theory) sering juga disebut dengan contracting theory (Jensen and Meckling 1976). Teori keagenan adalah kontrak hubungan antara prinsipal atau pemilik perusahaan dan agen atau manajemen perusahaan, yang mana agen melakukan tugas tertentu untuk prinsipal. ...
The purpose of this research is to determine the affect of thin capitalization, profitability, capital intensity, advertising expense, firm size, firm age, sales growth, and foreign ownership on tax avoidance.The data used in this research were from the financial statement of the manufacturing companies that were listed consistently on the Indonesia Stock Exchange (IDX) from 2019 until 2021. The sampel of this research are 132 years of data from 44 samples manufacturing companies that selected by using purposive sampling method. This research used multiple linear regression models to analyze data. This research results had proven that the thin capitalization and profitability have an influence on tax avoidance. While the capital intensity, advertising expense, firm size, firm age, sales growth, and foreign ownership do not have a influence on tax avoidance.
... Dividend policy melibatkan kepentingan antara manajemen juga pemegang saham dengan maksud investor menaburkan modal di perusahaan agar mendapatkan laba kembali dari dana yang telah diinvestasikan, dan manajemen perusahaan bertujuan pada peningkatan nilai perusahaan. Perbedaan kepentingan pihak-pihak tersebut dapat mendatangkan masalah keagenan disebut agency conflict Jensen & Meckling (1976). ...
Dividend policy merupakan putusan emiten tentang bagian dividen tunai yang akan diberikan untuk pemegang saham. Kajian yang dilakukan mempunyai maksud untuk memberikan lebih banyak mengenai pengaruh likuiditas, leverage, ukuran perusahaan, struktur kepemilikan, serta pertumubhan perusahaan terhadap dividend policy pada large business pada indeks LQ45 yang tersurat periode 2018-2020. Populasi yang diambil yaitu large business indeks LQ45 yang tersurat di BEI periode 2018-2020. Purposive sampling ialah pengambilan spesimen yang digunakan dengan sampel 28 perusahaan selama 3 tahun. Statistik deskriptif dan analisis regresi data panel digunakan untuk teknik analisis data dengan aplikasi software Eviews 12. Secara simultan hasil kajian menunjukkan likuiditas, leverage, ukuran perusahaan, struktur penguasaan, dan kemajuan perusahaan mendominasi terhadap dividend policy. Secara segmental yang telah ditetapkan, struktur kepemilikan dengan kepemilikan manajerial berpengaruh secara negatif terhadap dividend policy sedangkan likuiditas, leverage, ukuran perusahaan, struktur penguasaan dengan penguasaan institusional, serta kemajuan perusahaan tidak mendominasi mengenai dividend policy.
... Maka hipotesis kedua (H2) tidak dapat diterima. Hal ini dapat disebabkan karena jumlah dewan direksi yang terlalu besar akan menimbulkan benturan kepentingan dan masalah komunikasi (Jensen & Meckling, 1976) sehingga dapat menghambat proses pengambilan keputusan. Selain itu jumlah dewan direksi yang besar akan menyebabkan pihak manajemen mendominasi perusahaan dan berimbas terhadap meningkatnya praktik manajemen laba. ...
Penelitian ini bertujuan untuk menganalisis dan memberikan bukti secara empiris mengenai pengaruh antara mekanisme good corporate governance yang diproksikan dengan proporsi dewan komisaris independen, jumlah dewan direksi, kepemilikan manajerial, kepemilikan institusional dan kualitas audit terhadap praktik manajemen laba. Penelitian ini menggunakan 39 sampel perusahaan manufaktur sektor industri barang konsumsi yang terdaftar di Bursa Efek Indonesia selama periode 2016 sampai dengan 2019 yang dipilih dengan menggunakan purposive sampling method, sehingga didapatkan 140 data observasi. Pengolahan data dilakukan dengan menggunakan analisis regresi berganda. Hasil penelitian ini mengindikasikan bahwa proporsi dewan komisaris independen, kepemilikan manajerial, dan kualitas audit berpengaruh secara negatif dan signifikan terhadap manajemen laba. Sedangkan kepemilikan institusional berpengaruh secara positif dan signifikan terhadap manajemen laba, dan jumlah dewan direksi tidak berpengaruh secara signifikan terhadap manajemen laba. Kata kunci: Discretionary accruals, good corporate governance, manajemen laba.
... Dikemukakan oleh Jensen & Meckling (1976), agency theory menerangkan terkait konsep pemisahan kepentingan antara principal (pemilik perusahaan) dan agent (manajemen) dalam menjalankan tugasnya. Gudono (2017) dalam Septiani et al., (2021) menjelaskan teori ini dibuat dalam upaya untuk memahami dan mengatasi masalah yang dapat terjadi saat penandatanganan perjanjian hubungan kerja dan ketidaklengkapan informasi yang disajikan. ...
Purpose: Testing the effect of (1) CAR on ROA at PT. Bank KB Bukopin Syariah for the period 2014-2022 (2) NPF on ROA at PT. Bank KB Bukopin Syariah for the period 2014-2022 (3) FDR on ROA at PT. Bank KB Bukopin Syariah for the period 2014-2022 (4) BOPO on ROA at PT. Bank KB Bukopin Syariah for the period 2014-2022 (5) CAR, NPF, FDR and BOPO against ROA at PT. Bank KB Bukopin Syariah for the period 2014-2022.Methodology: The type of research used is field research with a quantitative approach. Data collection techniques with indirect observation through documentation methods. The data used is obtained from the financial statements of PT. Bank KB Bukopin Syariah published on its official website with a sample of 36 quarterly data (2014-2022). The data was processed using SPSS 22 through multiple linear regression analysis.Research Findings: Based on the results of the study, it was concluded that CAR and FDR have no effect on ROA of PT. Bank KB Bukopin Syariah for the period 2014-2022, while NPF and BOPO have a significant negative effect on ROA of PT. Bank KB Bukopin Syariah for the period 2014-2022. Novelty: The data used is in the form of secondary data from the quarterly financial statements of PT. Bank KB Bukopin Syariah published on its official website for the last 9 years (2014-2022). Tujuan Penelitian: Menguji pengaruh (1) CAR terhadap ROA di PT. Bank KB Bukopin Syariah periode 2014-2022 (2) NPF terhadap ROA di PT. Bank KB Bukopin Syariah periode 2014-2022 (3) FDR terhadap ROA di PT. Bank KB Bukopin Syariah periode 2014-2022 (4) BOPO terhadap ROA di PT. Bank KB Bukopin Syariah periode 2014-2022 (5) CAR, NPF, FDR dan BOPO terhadap ROA di PT. Bank KB Bukopin Syariah periode 2014-2022. Metodologi: Jenis penelitian yang digunakan adalah field research dengan pendekatan kuantitatif. Teknik pengambilan data dengan observasi tidak langsung melalui metode dokumentasi. Data yang digunakan diperoleh dari laporan keuangan PT. Bank KB Bukopin Syariah yang diterbitkan di website resminya dengan sampel sebanyak 36 data triwulan (2014-2022). Data tersebut diolah menggunakan SPSS 22 melalui analisis regresi linier berganda. Temuan Penelitian: Berdasarkan hasil riset ditarik kesimpulan bahwa CAR dan FDR tidak berpengaruh terhadap ROA PT. Bank KB Bukopin Syariah periode 2014-2022, sedangkan NPF dan BOPO berpengaruh negatif signifikan terhadap ROA PT. Bank KB Bukopin Syariah periode 2014-2022.Kebaruan: Data yang digunakan berupa data sekunder dari laporan keuangan triwulan PT. Bank KB Bukopin Syariah yang diterbitkan di website resminya selama 9 tahun terakhir (2014-2022).
... We postulated that EP has a positive effect on employees' CCR and a negative effect on entrepreneurs' CCR. Following the agency theory (Jensen and Meckling, 1976), it is neither certain that the EP of employees would be fairly acknowledged by the employers nor that higher EP employees would dedicate themselves to the organizations as if they were their own businesses. Some organizations have rules, systems, politics, and cultures that might buffer the employee's EP by implying low tolerance for positive deviant behaviors, such as intrapreneurship (Glinyanova et al., 2021). ...
Purpose
Despite the merit of extant studies on career decision regrets, they are not well integrated, are developed at different speeds and differ in focus. Specifically, they do not address an important question about the levels and antecedents of regret arising from choosing entrepreneurship instead of paid employment and vice versa. The authors adopted the regret regulation theory as foundation to examining the moderated effect of entrepreneurial potential (EP) on career choice regret (CCR) among employees and entrepreneurs.
Design/methodology/approach
The authors surveyed 721 employees and 724 entrepreneurs from a developing country and applied partial least squares-structural equation modelling (PLS-SEM) to test the hypotheses.
Findings
Employees regretted their career choice three times more when compared with entrepreneurs. However, the authors failed to conclude that the latter had three times better living conditions when compared with the former. EP negatively influenced the regret of being an entrepreneur in lieu of an employee while it positively influenced the regret of being an employee in lieu of an entrepreneur. The perceived opportunity cost of being a higher EP employee was three times greater when compared with that of being a lower EP entrepreneur. The effect of EP on CCR was mitigated or amplified by duration in the career, former career status, decision justifiability, and perceived environment's supportiveness.
Research limitations/implications
The design was cross-sectional, thus, the findings cannot be interpreted in the strict sense of causality.
Originality/value
The authors rely on an important yet often overlooked context of the choice between entrepreneurship and paid employment to test, clarify, and extend the regret regulation theory. The findings have novel human resource management and entrepreneurship policy implications.
... Kinerja keuangan perusahaan akan dinilai baik oleh para pemangku kepentingan apabila target keuangan yang ditetapkan oleh direksi dapat dipenuhi, sehingga manajemen akan bekerja seefektif dan seefisien mungkin (Riyanti 2021). Berdasarkan Agency theory yang dikemukakan oleh Jensen and Meckling (1976), dijelaskan bahwa apabila manajemen telah berhasil mencapai target yang telah ditetapkan, stakeholders akan mengapresiasi kinerja manajemen dengan memberikan bonus kepada pihak manajemen. Ketika perusahaan dalam kondisi yang stabil maka nilainya akan meningkat di mata investor, kreditur, dan publik. ...
Financial statement fraud has received a lot of attention over the past few years and will continue to become a concern because financial statement fraud can appear in various forms such as hiding assets, exaggerating assets, sales and profits, understating liabilities and costs. Even once deceptive fraudulent accounting practices are initiated, a whole system of manipulation will be used to maintain the appearance of sustainability. Financial reports are used by shareholders to measure company performance versus expectations. However, sometimes manipulated to fulfill one's greed. Many studies have been conducted in detecting and predicting the occurrence of financial statement fraud. This study explores the significant impact on corporate culture in the occurrence of financial statement fraud. Culture has been widely accepted as behavior pattern that influences society's character. In studying the occurrence of financial statement fraud, elements of corporate culture need to be considered along with other factors. This research provides a holistic view of the concept of culture and its influence on organizations and behavior. The second objective is to discuss the influence of corporate culture from the perspective of financial statement fraud. The research findings provide suggestions for improving corporate culture.
This study examines the moderating role of ownership concentration on the relationship between board diversity and intellectual capital disclosure. The study sample comprises four hundred and forty-four firm-year observations of listed non-financial firms in Nigeria from 2011 to 2020. After conducting pre- and post-estimation tests, the study runs robust ordinary least squares (OLS) regression to test the developed hypotheses. The results of the selected firms revealed that board gender and board size have positively influenced the disclosure of intellectual capital. The study also found that board composition does not have an influence on the firm’s intellectual capital disclosure. The finding documented that the moderation effect of ownership concentration improves disclosure on the relationship of board gender and board size and intellectual capital disclosure of the selected firms. This study offers some interesting insight into board diversity variables and its effect on ICD of the studied firms. These findings are useful for management to consider the inclusion of more women as part of the board of directors of the non-financial firms in order to influence the decision to increase their ICD. The finding of the study is limited to only listed non-financial firms in Nigeria, This study attempts to fill the gap in the literature by providing insights into the relationship between board diversity, ownership concentration and intellectual capital disclosure. This study adds to the literature as it is one of the first empirical studies to find the moderating role of ownership concentration on the relationship between board diversity and intellectual capital disclosure.
This study examined the effect of Corporate Social Responsibility (CSR) as a moderating variable on determinants of a bank’s profitability listed in the Indonesia Stock Exchange (IDX). This study used secondary data from banking annual reports listed in IDX during 2018-2021, with a total of 100 data from 25 banking companies that met the purposive sampling criteria. The data were analysed using moderated regression analysis with STATA software. This study found that simultaneously, Non-performing Loan (NPL), Good Corporate Governance (GCG), Third Party Funds (TPF), and Cost Efficiency have a significant impact on profitability. While individually, GCG has a significant negative effect, NPL has an insignificant negative effect, Third Party Funds has a significant positive effect, and Cost Efficiency has a significant negative effect on profitability. Furthermore, this study found that CSR has a positive moderating effect on the relationship between TPF and profitability, but CSR has a negative moderating effect on the relationship between Cost Efficiency and profitability. On the other hand, CSR was unable to moderate the relationship of NPL and GCG to profitability. This study contributes to the literature by suggesting the implementation of CSR not only as a compliance to regulation but also as a strategy to increase banking financial performance.
The aim of this research is to investigate the impact of tax planning on revenue management practices at PT. Merapi Utama Pharmacy, Medan. This research uses quantitative and correlational analysis methods. The scope of this research is limited to the period 2018 to 2022. The data analysis method used in this research is the simple linear regression analysis method. The findings of this research show that tax planning has a positive correlation and influence on laboratory management, thus indicating that improving tax planning will also lead to improved laboratory management. The findings of this research are consistent with rational choice theory and accounting theory. A company needs a superior competitive advantage compared to its business competitors in order to achieve high profitability. One of these advantages lies in the company's ability to manage finances effectively, which in turn will ensure long-term business continuity. The sustainability of this business can be measured from the level of profitability obtained. These are the factors that encourage management to engage in the presentation and reporting of laboratory information, also known as "earnings management".
This research is to analyze the effect of company size, profitability, leverage and audit committee on income smoothing. The population in this study are property and real estate sector companies listed on the IDX for 2020 – 2022. The data used in this research is secondary data in the form of financial reports obtained through the Indonesian Stock Exchange (IDX) website. The sample selection in this study used a purposive sampling technique. This study uses quantitative methods with the analysis technique used is descriptive statistical analysis and multiple linear regression analysis. The results of this study indicate that firm size, profitability, and leverage have an effect on income smoothing and audit committees have no effect on income smoothing. Income smoothing is a management action to stabilize income by moving income from years with high profits to years of periods of income that are less profitable.
O presente artigo teve como objetivo compreender o caso da Americanas sob a ótica da Teoria da Agência, identificando as relações principal-agente e os problemas de agência envolvidos na fraude. Além disso, foram analisados os fatos relevantes da fraude e notícias relacionadas, bem como as operações de Risco Sacado na legislação contábil e literatura. Adicionalmente, verificou-se os indicadores financeiros das Lojas Americanas nos últimos dez anos, com o intuito de identificar indícios da fraude nas demonstrações contábeis. A empresa, consolidada no setor varejista, enfrenta desafios recentes decorrentes da pandemia e dos escândalos descobertos em 2023. Nesse cenário, a análise dos indicadores financeiros trimestrais pode revelar tendências em aspectos como estrutura de capital, liquidez, prazos médios e EBITDA. Ademais, o fato relevante divulgado em 13 de junho de 2023 mostra a ocorrência de fraudes contábeis, que não se restringem à indevida contabilização de operações de Risco Sacado. Tais revelações evidenciam que o caso das Lojas Americanas vai além de meras "inconsistências contábeis" e se configura como uma fraude. Para atingir o objetivo proposto por este estudo, foram coletadas, na plataforma Economatica®, as demonstrações contábeis e os indicadores financeiros trimestrais da Americanas de 2010 a 2022. Ademais, buscou-se documentos oficiais no site da empresa, bem como notícias na mídia. Os achados em relação ao risco sacado/fraude e à teoria da agência destacam a importância de fortalecer os mecanismos de governança corporativa, implementar controles internos robustos e estabelecer incentivos adequados para prevenir e detectar fraudes.
Linha temática: Contabilidade Financeira
Palavras-Chave: fraudes contábeis; indicadores financeiros; risco sacado; fato relevante.
Penelitian untuk mengetahui pengaruh kinerja lingkungan, karakteristik perusahaan dan tata kelola perusahaan yang baik terhadap pengungkapan lingkungan. Sampel penelitian adalah perusahaan pertambangan dan pertanian yang terdaftar di Bursa Efek Indonesia. Purposive sampling digunakan untuk pilihan sampelnya dan diambil sebanyak 16 perusahaan. Analisis penelitian menggunakan pengujian statistik deskriptif, pengujian data panel, pengujian hipotesis klasik. Alat ukur yang digunakan untuk analisis ini adalah program Eviews 10. Hasil penelitian menunjukkan bahwa variabel Kinerja Lingkungan dan Ukuran perusahaan berpengaruh positif terhadap Pengungkapan Lingkungan. Sedangkan variabel seperti Umur perusahaan, Dewan Komisaris, Komisaris Bebas dan Komite Audit tidak berpengaruh terhadap Pengungkapan Lingkungan.
Sustainability issues have increased the need for stakeholders toward environmental information disclosure. Environmental information is pivotal for stakeholders to assess a firm’s environmental performance. A firm’s environmental performance significantly influences a firm’s environmental properly. This study examines the influence of a firm’s environmental performance on Firm environmental disclosure, moderated by the firm’s characteristics. The study involved fifty listed firms on Indonesia Stock Exchange (IDX) and PROPER participants (Company Performance Rating Program in Environmental Management) from 2017 to 2020. The firm’s characteristics in this study refer to size, profitability, and leverage. The estimated Generalized least square panel regression test indicated that firm environmental performance significantly explains the variance of environmental disclosure. The influence of firm environmental performance on firm environmental disclosure is significantly moderated by profitability and firm size.
Internal control is required to present some confidence to all stakeholders so their wealth will not be diverted away from basic concerns. The underlying principle is that, stakeholders are responsible for providing structures that preserve resources, stimulate reliable information, boost the observance of proposed regulations and effectively meet the modus operandi of institutions. The study's main objective was to assess the effect of employees' perception of internal control on output delivery in the public sector institution. The research applied a survey of employees at Wiawso College of Education. The study covered a random sample of 40 employees in the College; the response rate was 100%. Multiple regression models were used to test whether Internal control activities (Risk management, Monitoring, Corporate governance) have any relation with output delivery. It was found that employees' perception of the internal control system had a significant relationship with output delivery. The study's findings suggested that internal control systems, especially corporate governance and control activity, are essential areas that the management of Wiawso College of Education should give attention to improve output delivery of public sector institutions in Ghana.
Esta obra aborda la responsabilidad social universitaria en Iberoamérica, analizando tendencias en la literatura especializada y presentando un instrumento de medición aplicado en una universidad mexicana. Esta investigación busca convertirse en un valioso recurso para aquellos interesados en el compromiso social de las instituciones de educación superior que promueven una formación profesional alineada con los Objetivos de Desarrollo Sostenible y los compromisos del Pacto Mundial; y así, garantizar la disponibilidad de recursos y la calidad de vida de las futuras generaciones.
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