This research examined the effectiveness of the implementation of Indonesia's three principles of Higher Education known as Tri Dharma Perguruan Tinggi comprising education and teaching, research and community service provided by the universities. More specifically, this research investigated the influences of leadership, strategic planning and human resources on the effectiveness of the implementation Tri Dharma Perguruan Tinggi as the standard setting in measuring Indonesian universities' performances. It is underlined that strong leadership, well-strategic planning and qualified human resources are essential for universities in providing quality education and teaching, research and community services. A sample consisting of 570 lecturers working and holding managerial position at universities in the Province of Sumatera Utara, Indonesia, were selected. Results of data analyses using partial least square (PLS) suggested that leadership, strategic planning and human resources influence the effective implementation of Tri Dharma Perguruan Tinggi. Meanwhile, the effective human resources serves as the pivotal driver that is needed for creating universities' competitiveness. Accordingly, an effective leadership determines the outcome of strategic planning required for achieving excellence competitiveness of the universities.
Leadership; Strategic Planning; Human Resources; Three Principles of Higher Education
The relevance of Management Control System (MCS), Good University Governance (GUG) and internal auditor's role has become crucial in realising excellent service of the university to the community. The effectiveness of the role and relationship of these three factors, particularly in the State University is still limited and relatively partial, whereas the measurement is not broad and not in the alignment system model (fit model). The objective of this study is to prove the role of MCS on GUG with the internal auditor's role as a mediation. Results of the test by using structural equation modelling (SEM) showed that the indicators of each variable valid and reliable. This study proves that the effectiveness of MCS affects the GUG, but the internal auditor's role is not significant. Thus, this study does not support the effectiveness of the MCS role in the achievement of GUG through internal auditor's role. Auditors are still influenced by the old paradigm that is as a watchdog, the representative of the Chairman and not as a catalysator. However, this study confirms the indicators of the effectiveness of MCS, GUG and the role of internal auditors. Based on the findings, the competency of the internal auditors should be improved, especially in time management, communication skills, searching for evidence and explaining recommendations. The results of this research would be more interesting for further study if it were to be re-examined in the context of higher education with different characteristics and ownership status.
Good University Governance, mediation, internal auditor
The paper investigates principal-principal (PP) conflicts arising in mergers and acquisitions (M&A) in ASEAN 5 countries; Indonesia, Malaysia, Philippines, Singapore and Thailand. The issue is of importance to investors and the growth of equity markets in ASEAN countries in South East Asia and probably well beyond. Large controlling shareholders in Asian public limited corporations, according to prior research, do cause agency conflicts. However, the net effects cannot be estimated with any degree of accuracy without understanding and being able to distinguish the single effect of an investment project. The relation between large shareholders and agency conflicts is difficult to test empirically since no public information is provided at the individual investment project level, which differs from the case of corporate mergers and acquisitions (M&A) (Amihud, Lev, & Travlos, 1990). The diagnostic testing potential the analysis to utilise Hausman-Taylor (HT) technique that takes into account time variant and time-invariant data into the model analysis. PP conflicts associated with M&A were found to be rampant. These suggest consequences in terms of limited willingness to participate in shareholding as part of individuals' portfolios. Similarly, challenges regulators concerned to promote the secondary market for equities are addressed in this paper by promoting the use of dividend ratio policies as an indicator for PP conflicts.
In this contemporary world, when there is a drastic shift in the demographic features of the workforce, understanding millennial workers' expectations of work becomes an important agenda for the continuity and success of the company. Outside Indonesia, researchers found millennial workers wanted to have high salaries, comprehensive benefit packages, rapid career development opportunities, as well as work location that is near to where they live (Robert Half International and Yahoo! HotJobs, 2008), personal life and an opportunity to grow (Baldonado & Spangenburg, 2009), and career advancement opportunities, and work-life harmony and good relationships with colleagues (The GMP Group & Temasek Polytechnic, 2009). In Indonesia, Sitepu (2012) found nature of the job, supervision and promotion opportunities as three main factors that made millennial workers stay at work. This study was carried out to enrich the findings above, focusing on millennial workers in Jakarta, a big city of Indonesia. The findings are: 1) simultaneously eight occupational factors which are Salary, Benefit, Promotion Opportunities, Supervision, Relationship with Colleagues, the Job Itself, Job Flexibility, and Work Location positively and significantly affected Organisational Commitment, and 2) only four factors (benefits, promotion opportunity, work flexibility and work location) partially affected the Organisational Commitment positively and significantly.
benefit; big city millennial workers; organisational commitment; promotion opportunity; relationship with colleagues; salary; supervision; the job itself; work flexibility; and work location
The purpose of this paper is to provide theoretical insights on the accounting and accountability practices of Islamic religious non-profit organisations. A case study of an Islamic boarding school in Aceh, Indonesia, was conducted and a grounded theory is used in this research. Data were generated from interviews with people inside and outside of the organisation, review of documentary materials and observation of the daily activities of the organisation. The study found that the financial report is seen by the management of the Islamic boarding school as an instrument that plays a very significant role in enhancing accountability of the organisation. Accounting activities are viewed as activities that have no contradiction to the religious belief and also the missions of the organisation. However, accounting practices in this institution are less developed and the financial accountability demonstrated by the management is still far from what is expected by society.
Accounting, accountability, Islamic boarding schools, non-profit organisation, religious organisation
The main aim of this paper is to study the effect of intellectual capital (IC) on turnover intentions (TIs) among employees in Malaysian private organisations. Measuring IC and its influence on employee's TIs represents an initial step. Until recently, there has been little quantitative analysis of IC elements: human capital, customer capital, structural capital, social capital, technological capital and spiritual capital in predicting employee's TIs. By using a non-probability random sampling method, this study involved 189 subjects who are working in Malaysian private organisations from various industries, departments, positions, tasks and responsibilities. Results showed that only structural capital negatively influenced employee's TIs from the present organisations. Meanwhile, organisational culture, systems and procedures, employee development and involvement on decision making, up-to-date policies, technologies and networking are the keys to enhance employee's retention. The key evidence presented in this study suggests that organisations should establish competitive working environment, systems and infrastructures to encourage employee's commitment, interaction and development. There is a wide gap in the literature discussing on the influence of IC on retention and TIs. This indicates that there is a need to justify the effects of IC elements on the turnover of specific group of employees and industries by conducting more quantitative and qualitative studies to determine and witness the relationships.
Intellectual capital; turnover intentions; employees; private organisations; Malaysia
Inspired by Elkington's (1997) concept of Triple Bottom Line (TBL), this study was carried out with the aim to formulate a holistic concept of managerial performance. Even though TBL is much better than the traditional financial measurement, for a theistic-spiritualist, it is still a partial and secular way of doing business. Based on that reason, TBL needs to be deconstructed. By making use of the concept of taqwa as lenses, the study attempts to deconstruct TBL and reformulate it as a new concept of managerial performance. Taqwa is a concept of an ultimate spiritual achievement of human being that is indicated by a feeling of union with God, people and nature, as well as awareness of obeying the divine will. The results of the study exhibit that managerial performance is ideally concerned with not only profit, planet and people, but also prophet and God. The concept called as Pentuple Bottom Line (PBL), in essence, stimulates the presence of the human's ultimate consciousness to be united with God.
God, prophet, pentuple bottom line, triple bottom line
The growing importance of board diversity among directors has been established as a result of global financial crisis in 2008. According to the Malaysian Code of Corporate Governance 2012, nominating committee shall be responsible to select directors with diverse background that meet the needs of the company. This paper attempts to examine the impacts of having female directors in a nomination committee on gender diversity on board. For this purpose, 393 (50%) non-financial Malaysian listed companies were selected for the three year period of 2011 to 2013. Results indicated that having female directors in a nomination committee is significantly related to the level of gender diversity on board. The results also signify the importance to have female directors in nomination committee as it will influence gender diversity on board.
Gender Diversity, Boards of directors, Nomination Committee, Malaysia
The purpose of this study is to examine the influence of leadership styles on integrity and to test the mediating role of trust in the relationship between leadership styles and integrity using 300 questionnaires responded by the employees (support staff group) of local authorities located in the central region of Peninsular Malaysia. The measurement scale employed in this study has met the acceptable level of validity and reliability tests of the study. However, performing confirmatory factor analysis (CFA) based on structural equation modelling (SEM) has remained two of three components of the second order measurement model of transactional leadership. They are contingent reward and management by exception (active). The management by exception (passive) was omitted for further analyses. Some items of the first order measurement model of transformational leadership were also deleted through CFA. Regression results of the SEM analysis indicated that integrity was not directly influenced by the transformational leadership and transactional leadership through the presence of trust as mediator. Trust mediated the relationship between transactional leadership and integrity. Further, this study provided the discussions and implications of the findings.
The high initial trading volume following an IPO listing is an anomaly in the aftermarket and this activity is mainly caused by the flipping activity of flippers. Therefore, this study argues that investors' interest could be one of the factors that trigger flipping activity. This study uses the signalling theory argument, whereby the proportion of shareholder retention sends a credible signal to investors and sways flipping activity. Using cross section and quantile regression in high and median quintiles, this study found a significant positive relationship between shareholder retention and flipping activity. The finding suggests that to increase the liquidity of the IPOs in the immediate aftermarket, the shareholders have to retain a higher proportion of shares in order to signal the quality and prospects of the IPOs.
The study attempts to increase the knowledge of how customers' perception of a company's innovativeness and service quality has influenced their repurchase of life insurance. This research aims to investigate, develop and validate a causal relationship model of life insurance repurchase by means of structural equation modelling (SEM) analysis. The sample group of 400 people who had bought insurance policies from companies in Thailand was approached to answer a structured questionnaire. Results revealed that repurchase of life insurance was directly affected by customers' perceived company's innovativeness and customer satisfaction, and indirectly affected by service quality of insurance agents. From previous studies related to correlation between service quality elements and repurchase, the correlation between corporate image and repurchase was well clarified, the interrelationship among the factors related to insurance company's innovativeness was not well illustrated. Thus, this research has developed a generic model of life insurance repurchase by means of structural equation modelling, which has value for its originality.
Perceived company innovativeness, life insurance purchase, service quality, satisfaction
This research aimed at analysing competitiveness of Indonesian palm oil and cocoa export commodities to Malaysia and Singapore markets. The two commodities were selected on the basis that they are Indonesian main export commodities, which contribute considerably towards the national income. Despite the significant contributions of the two commodities, the reality proves that Indonesia is still not able to optimise the potency and increase the competitiveness of those export commodities. Revealed Comparative Advantage (RCA) was employed as the competitiveness analysis method by using data in the period of 2009-2013. Results of the analysis revealed that Indonesian palm oil commodity has a strong competitiveness in Malaysia and Singapore export markets, as indicated by RCA index, which is greater than one (RCA>1). Similarly, cocoa commodity also demonstrates a strong competitiveness since its RCA index value is greater than 1 (RCA> 1) in Malaysia and Singapore export markets. However, the upward trend of the price of palm oil and cocoa commodities in the international market is not accompanied by the rise in the export product value. As a result, Indonesia is still not able to gain benefits from this condition. Moreover, the change in the internal policy of export destination countries continues to restrict the import of palm oil and cocoa commodities and this has become a challenge for Indonesia in order to boost the competitiveness of both commodities in the future.
This research was conducted to see and assess the extent to which government auditors can consistently maintain the quality of audit services that it provides. Moreover, it also aims to examine and analyse the effects of accountability, objectivity, integrity, working experience, competence, independence and motivation on the quality of examination results with hypothesis testing using multiple regression analysis. This study uses the purposive sampling method to obtain 30 respondents working at the Inspectorate of Lumajang as the research samples. Data used in the study were primary data obtained from the respondents directly through a questionnaire. The resultsed show that accountability, objectivity, integrity, working experience, competence and independence have significant effects on the quality of the examination results, whereas motivation does not significantly affect the quality of the examination results in Inspectorate of Lumajang.
Accountability, Competence, Independence, Integrity, Motivation, Objectivity, Quality of Inspection Results, Working Experience
Using game-theoretical modelling, this paper analyses the role of risk perception and signalling on HIV transmission between commercial sex workers (SW) and their clients. The paper also provides results of a survey conducted in late-2014 in Thailand involving 200 SWs (female sex workers, FSW, and male and transgender sex workers, MTSW), as well as 67 clients regarding condom use and HIV testing. It was found that: (1) incomplete information and individual risk perceptions are important factors for engaging in unprotected sex; (2) there is potential for signalling but it is rather weak in practice; and (3) MTSW, as well as men, who have sex with men (MSM) represented the highest-risk groups that are highly vulnerable and exposed to HIV.
This study aims to investigate the impact of loan portfolio diversification and income diversification in ASEAN-4 banking markets. Loan portfolio diversification consists of credit to different sectors and different types of credit offered to customers. This study applied a model of bank as a dealer, initiated by Ho and Saunders (1981), and the latest developed by Maudos and Solis (2009). We employed static and also dynamic panel data using System Generalised Method of Moment (System GMM) to estimate the model. The results show a decreasing trend in banks' net interest margins, which is consistent with the increase in selling of bank non-traditional products in this market that indicates the existence of cross-subsidy in revenue from non-traditional to traditional banking products. In addition, less diversification in credit sectors positively and significantly affects net interest margin. Furthermore, we also found that lesser competition, increases interest margin. However, foreign bank penetration will end up with a significant decrease in NIM.
ASEAN; Foreign Bank Penetration; Market Power; Loan Portfolio Diversification; Net Interest Margin; Non-Interest Income Diversification
This study investigates the sectoral impact of bank credit on economic output by analysing the long- and short-run effects of bank credit on the output of five major economic sectors in Malaysia. The sectors are the agriculture, manufacturing, mining and quarrying, construction and services. It employed quarterly data from 1997Q1 to 2014Q4 and adopted the ARDL and ECM approaches. The results revealed that bank credit has uneven impact on the economic sectors, with significant effects, particularly in the short run on the mining and quarrying, and manufacturing sectors, but no effect on the agriculture sector. In contrast, bank credit is found to have larger long-run impact on output of the construction and services sectors compared to the short run. Hence, the results suggest the importance of considering the sectoral-specific characteristics in extending bank financing to ensure the effectiveness of financing in supporting the growth of the sector. As for the agriculture sector, concessionary financing is needed since it is shown that the sector is not adequately being served by the banking system.
Financial Systems, ARDL, Bank Credit, Economic Sectors, Malaysia
Since the implementation of the decentralisation policy in 2001, it has brought different facets and consequences onto the Indonesian economy. International experiences expose it that this policy has positive aspects in social and democratic. On the other hand, it will hurt the economic development. It is a known fact that this policy needs better people's participation and involvement in policy decision, but it should bring the improvement of economic development and increasing life quality of the people in the end. The Indonesian government has shown effort to achieve all objectives, despite being under certain limited conditions. For example, through increasing transfer funds to local government year to year, it is expected that development problems such as inter-regional disparity can be reduced significantly. Based on the above problem, this study was conducted with the aim to analyse the impacts of fiscal decentralisation, education, unemployment, infrastructure, manufacture sector, regional and minimum wages on inter-regional disparity occurring in Indonesia. In addition, the study was done to determine factors influencing regional economic growth. For this purpose, secondary data were used to identify the problems and an explorative method was used to explain and answer the research questions. The study indicated several findings. First, economic growth does not affect regional disparities, while fiscal decentralisation in term of spending and revenue share influences economic growth. Second, income disparity influences economic growth, while fiscal decentralisation has no influence on economic growth.
Transfer fund, infrastructure, inter-regional disparity and coordination, economic growth