ANALISIS KOMPARASI MANAJEMEN LABA, PROFITABILITAS, DAN NILAI PERUSAHAAN SEBELUM DAN SESUDAH IMPLEMENTASI PSAK 69

PSAK 69 is the accounting standard resulting from IFRS adoption related to agricultural activities that is effective as of January 1, 2018. This study aims to examine and analyze differences in earnings management, profitability, and value of firm before and after the implementation of PSAK 69. The population of this study is agricultural companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2018 period. The sample selection technique uses a purposive sampling method and the sample that meets the criteria is 17 companies with 34 observational data. The type of data in this study is secondary data. This type of research is quantitative research with a comparative approach. Hypothesis testing in this study using paired sample t-test. The results of this study indicate that there are differences in earnings management before and after the implementation of PSAK 69, while for profitability which is proxied by Return On Assets (ROA) and firm value there is no difference before and after the implementation of PSAK 69.Keywords: earnings management, profitability, PSAK 69, value of firm.

Linking firms' strategies with firm performance: mediating role of network value in telecom industry

PurposeThe purpose of the current study is to investigate the role network value of firm on the relationship between firm strategic initiatives on firm performance by managing the market antecedents including user's expectations, user's coordination and user's compatibility.Design/methodology/approachThe current study uses secondary date of telecom industry of Pakistan, India and China. The data obtained were later subjected to the analysis using CASUALMED procedures of statistical analysis software (SAS).FindingsThe findings from the study projected that strategic drivers played an important role in leveraging the firms' performance. The results also confirm that in order to increase the firm performance, the network value of firms' plays a very crucial role.Research limitations/implicationsDespite making novel contribution, the present study has few limitations, need researchers' attention to be explained in the future, which includes narrow population size, not being able to work on indirect network effects and the theoretical explanation of behavioral antecedents of network value.Practical implicationsThe present research have potential applications for managers of telecom industry, which in turn would help them to develop the strategies that they could build to leverage their network value and firms' performance.Originality/valueThe current study has made a considerable contribution in the literature by proposing a model that adds to the theoretical foundation of strategic management of the firm. So, closely considering these insights would be helping for the firms to leverage its network value in mobile telecommunication industry.

The value of firm linkages in the age of industry 4.0: a qualitative comparative analysis

Over the years, manufacturing in advanced economies has been the object of intense reorganization driven crucially by the international strategies of multinational enterprises (MNEs), and more recently, by technological disruptions powering a new manufacturing model, defined as Industry 4.0 (I4.0). This paper aims to explore firm-based, place-based and global drivers that can determine high levels of companies’ performance in the context of the emerging manufacturing model ‘I4.0’. In particular, our article tests the relative importance of and balance between three determinants of MNEs’ performance: (i) MNEs’ internal operations and R&D capabilities; (ii) reliance on local external economies and co-location with high-value service and technological competence; and (iii) the extent of MNEs’ production in terms of spread across global value chains. We empirically address this issue by surveying top managers of MNEs operating in four advanced manufacturing industries (biotech, engineering, fashion, and new materials) and located in five European countries (Germany, Italy, Spain, Sweden and the United Kingdom). We adopt fuzzy-set qualitative comparative analysis, a configurational, case-oriented approach. MNEs can be highly profitable when they follow different, but equally successful, paths. Our findings shed light on which balance between firm-based, place-based and global drivers positively impacts on companies’ performance in European advanced manufacturing sectors. In particular, we find that companies that collaborate with local suppliers of enabling technologies linked to I4.0 - with regard to the variety and intensity of collaborations- show high levels of performance. Policy implications are drawn in the concluding remarks.

Profitability and value of firm: An evidence from manufacturing industry in Indonesia

The purposes of this research were to understand the profitability performance and its influencing factors based on DuPont Analysis and the effect toward the value of the firm. As a causality research, the sample data involved were 20 non-banking and finance companies as listed on LQ-45 of Indonesian Stock Exchange (IDX) years of 2014-2018, which could be classified into two types of industry; manufacture and non-manufacture sectors. The research’s quantitative design as a systematic approach of the relation among the variables focusing on the hypothesis testing done by data analysis tools using GLS Regression test of panel data. Profitability determinants of net profit margin, total assets turnover and financial leverage multiplier showed the result of positive and significant effect toward ROE (return on equity), while growth sales ratio showed the negative and significant effect. In terms of the relationship toward value of firm, the ROE and industry types were proven to have significant positive contributions. This implied that the management must be more efficient and effective in managing the company operational activities and minimizing the operational costs and other costs, both in the assets and debt usage to have maximal product results, to increase sales, net income, profit rate and return of equity where they will affect the increasing of investors’ and the market’s trust toward the firms since the increasing of return on equity for the owners and the shareholders. The different characteristics, traits and features of the industry’s types resulted in the different use of strategies in managing the firms’ operational activities. These all affected the increasing value of the firm.

CEO Employment Contract Horizon and Financial Reporting Discretion

We examine the effect of employment contract horizon on managers' discretion in financial reporting. During the contract horizon, the board learns about a new CEO's ability from realized firm performance and uses this information to determine whether to renew or terminate the CEO's contract. Economic theory suggests that the informational value of firm performance to the board's learning declines over time as the board's estimate of the CEO's ability becomes more precise; this motivates a CEO to overstate earnings more aggressively during the earlier stage of the contract horizon. Consistently, we find more (less) aggressive earnings overstatement during the earlier (later) stage of the first contract horizon. This finding is stronger for CEOs who have greater concerns over contract termination and CEOs who have greater flexibility to manipulate earnings. Our evidence suggests that the CEO employment contract horizon has a significant impact on managerial discretion in financial reporting.