Showing papers in "Journal of Indonesian Economy and Business in 2015"

Analisis dampak struktur kepemilikan pada kebijakan hutang dalam mengontrol konflik keagenan

Abstract: This study examines the impact of ownership structure and some control variables on corporate debt policy (debt ratio) in an agency theory context. Control variables are dividend payment, firm size, asset structure, firm profitability and tax rate. This study is based on the previous study by Moh’d et al., (1998), which found that ownership structure of the firms’s equity (insider ownership, shareholder dispersion and institutional investor) is important in explaining corporate debt policy in a agency theory context. This study is focused on all firm listed on Jakarta Stock Exchange, except financial and insurance firms from 1992 to 1996. The method of analysis is using pooling. The method of data collection is purposive sampling. There are 100 firms year observation. The result of the study shows that insider ownership and institutional investor to be significant and negative determinant of the corporate debt policy (debt ratio). It also indicates that shareholder dispersion is insignificant determinant of debt ratio. Keywords: Debt Ratio, Ownership Structure, Agency Theory, Insider Ownership, Shareholder Dispersion and Institutional Investor.

Evaluasi Penetapan Kawasan Andalan: Studi Empiris di Kalimantan Selatan 1993-1999

Abstract: This paper attempts to evaluate government policy to classify a region as a key region (kawasan andalan) with special reference to South Kalimantan province. Using location quotient and logistic regression, we showed that the policy designed and based merely on regional income per capita and key subsector. The policy seems, to ignore the growth of regional income and regional specialisation. Our analysis also suggests that regional classification based on Klassen Typology is a better alternative than that of the ad-hoc “key region”. Key words: kawasan andalan, LQ, logistic regression, Klassen Typology

Factors affecting Entrepreneurial Intentions Among Indonesian Students

Abstract: Penelitian ini bertujuan untuk mengindentifikasi factor-faktor penentu intensi kewirausahaan (entrepreneurial intention) mahasiswa Indonesia Empat variabel independen digunakanl untuk memprediksi intensi kewirausahaan Keempat variabel tersebut adalah kebutuhan akan pencapaian (need for achievement), lokus kendali (locus of control), efikasi diri (self-efficacy), dan kesiapan instrumen (instrumental readiness) Menggunakan 130 sampel, penelitian menemukan bahwa dari variabel-variabel tersebut, efikasi diri dan kesiapan instrumen mempengaruhi intensi kewirausahaan secara signifikan, sedangkan lokus kendali dan kebutuhan akan pencapaian tidak mempunyai pengaruh terhadap intensi secara signifikan Secara keseluruhan, semua variabel bersama-sama hanya dapat menjelaskan 236% dari variansi total Selanjutnya, variabel demografis (umur, jender, pendidikan, dan pengalaman kerja) tidak mempunyai pengaruh yang signifikan terhadap intensi kewirausahaan Secara umum, penelitian menemukan bahwa intensi kewirausahaan mahasiswa Indonesia tidak terlalu tinggi (rata-rata= 446 dari 7; dan simpangan baku=139) Hal ini dapat diinterpretasikan bahwa mahasiswa Indonesia sedikit lebih menyukai menjadi entrepreneur daripada bekerja di perusahaan

Product development in islamic banks

Abstract: A book review dealing with Islamic finance mostly on banks. It encompasses the social needs on such product related to the halal priorities.

Developing a measure of local government’s financial condition

Abstract: This study develops an instrument to measure the financial condition of local governments (LG) in Indonesia. The instrument will serve as an early warning system for local governments’ financial management. The instrument to measure their financial condition consists of six dimensions, namely short-term solvency, long-term solvency, budgetary solvency, service-level solvency, financial flexibility, and financial independence. Each dimension has its own indicators. There are a total of eighteen indicators examined in this study. These indicators are combined to form a composite index, called a Financial Condition Index (FCI). The reliability and validity of the composite index is analyzed and the results show that the measures developed in this study are reliable and valid. In addition, the instrument possesses the criteria of a good measure: it is theoretically sound, a comprehensive assessment, it has predictive ability, distinctive ability, it is practical, objective, and a resistant to manipulation and gaming. Keywords: financial condition, local government, short term solvency, long term solvency, budgetary solvency, service-level solvency, financial flexibility, financial independence

Struktur kepemilikan, risiko, dan kebijakan keuangan: analisis persamaan simultan

Abstract: The research explores using simultaneous regression, to examine the interdependence relationship between managerial ownership, risk, dividend policy, institutional ownership, and leverage policy for Indonesian capital market. The research tries to explain how the relationships in financial policy for manufacture firms in Indonesia. We use five models of regression to represent five different policies in firms that reflect the agency issues and conflict of interest between agent (manager), and principal (insider and outsider shareholders). Jensen and Meckling (1976) argued that agency problem arise from separation of ownership and control. Each of five policies in this research is represent conflict of interest between agent and principal. The research combined models from Crutchley, Jensen, Jahera and Raymond (1999), and Chen and Steiner (1999) to construct five-regression policies model. We find interdependence relationship between managerial ownership, risk, dividend policy, institutional ownership, and leverage policy. We also find substitution effect between dividend policy and managerial ownership, and between managerial ownership and institutional ownership as predicted by agency theory. The substitution effect showed that ownership structure effectively used to reduce the agency problem between agent and principal. The study confirms that the relationship between risk and dividend is non-linear. Keyword: Agency Theory; Managerial Ownership; Risk; Dividend Policy; Debt Policy.

The effect of salesperson stress factors on job performance

Abstract: Tenaga penjual pada perusahaan jasa memiliki peran yang sangat penting karena mereka dituntut untuk dapat memenuhi target penjualan sekaligus membangun relationship dan citra perusahaan melalui pelayanan yang mereka berikan pada konsumen. Peran membangun citra dan relationship seringkali bertentangan dengan tugasnya untuk mencapai target penjualan. Peran tersebut juga seringkali dirasa berat dan membingungkan sehingga berpotensi menimbulkan stress yang dapat memberi pengaruh negatif pada kinerjanya. Studi ini menguji model struktural yang menggambarkan pengaruh stress factors (role stress dan burnout) pada job performance (behavioral dan sales performance) tenaga penjual jasa. Dalam model struktural, pengaruh stress factors pada job performance dimediasi oleh internal states (adaptability dan self-efficacy). Responden adalah 223 tenaga penjual asuransi jiwa dari 12 perusahaan asuransi jiwa yang beroperasi di Indonesia. Model diuji dengan menggunakan two-step approach to structural equation modeling. Kata kunci: role stress, burnout, adaptability, self efficacy, relational selling intention, sales performance, dan two-step approach to structural equation modeling.

Pengaruh ketidakpuasan konsumen, karakteristik kategori produk, dan kebutuhan mencari variasi terhadap keputusan perpindahan merek

Abstract: The objective of this study is to examine the partial and simultaneous effects of customer dissatisfaction, characteristics of product category, and variety-seeking needs on brand switching behavior. This study has tested the impact of the variety-seeking needs as a moderating variable on brand switching behavior and provided an alternative perspective on the concept of consumers’ brand loyalty. The brand switching approach can be very helpful in resolving problem and decision making related to brand loyalty reinforcement. The results show two important findings. Firstly, the customer dissatisfaction and variety-seeking needs were significantly related to brand switching behavior, but the impact of characteristics of product category itself on brand switching behavior was not significant. Secondly, the variety-seeking needs moderated the effects of customer dissatisfaction and characteristics of product category on brand switching behaviors. Some implications for future research are identified, including the choice of products as research objects, dissatisfaction constructs, and the importance of inter-customer interaction issues. Key words: brand switching, customer dissatisfaction, characteristic products, variety-seeking, involvement

Internet search traffic and its influence on liquidity and returns of indonesia stocks: an empirical study

Abstract: The development of advanced information technology has become a standard in the process of improving corporate value. This is seen through the high level of investors’ awareness of the brand and information that company holds (Da, Engleberg, and Gao, 2011; Bank, Larch, and George, 2011; Joseph, Wintoki, and Zhang, 2011). Among the information providers, internet plays an important role not only in accessing information, but also as a medium that can be applied to publish a wide range of financial reports or news to attract investors. This study aims to examine the effect of investors’ attention towards returns, liquidity and volatility of stock returns. The results indicate that investors’ attention which is represented by Google Insight contributes positively and significantly to the explanation of returns, liquidity, and volatility of stock returns in Indonesian manufacturing firms. Also, the phenomenon of information technology usage can be one of the considerations for investors in order to discover what types of company’s criterion that is appropriate to be included in their investment portfolio.

Kontribusi involvement dan trust in a brand dalam membangun loyalitas pelanggan

Abstract: Customer loyalty is the most valuable asset for the company. Many researchs found that customer loyalty had a positive effect on company’s profitability. The purpose of this research is to investigate involvement and trust in a brand (as cognitive and conative antecedent of loyalty) contribution to building loyalty. The object of this research is facial whitening product, and the subjects are women. Survey has been done in two central locations in Yogyakarta. This research found that involvement and trust in a brand has a positive effect on relative attitude as attitudinal dimension of loyalty, relative attitude has a positive effect on repeat patronage as behavioral dimension of loyalty. This research also found a strong support about relative attitude’s role as a mediator of involvement-repeat patronage relationships and trust in a brand-repeat patronage relationships. Therefore, involvement and trust in a brand are mediated by relative attitude to contribute to bulding loyalty. Key words: involvement, trust in a brand, relative attitude, repeat patronage

Non-financial factors in the going-concern opinion

Abstract: This paper describes the influence of tenure, auditor reputation, disclosure, and the size of the client company on a going concern opinion. Audit opinion issued by the auditor is expected by users of the quality of information, because as the basis for investment decisions. Going-concern audit opinion is an opinion issued by auditors to ascertain whether the company can maintain its existence. Studies on the factors that affect the audit opinion have been carried out both overseas and in Indonesia. The factors used are vary and the results are not conclusive. This study uses 89 sample firms listed on the Indonesia Stock Exchange in 2003-2008. Logit regression analysis shows that the tenure, auditor reputation, disclosure has a significant on going-concern opinion while the client company size has no effect on going-concern opinion. Keywords: tenure, auditor reputation, disclosure, size, going-concern opinion

The effect of gcg implementation and risk profile on financial performance at go-public national commercial banks

Abstract: The research tests the effect of the risk profile and the application of corporate governance on financial performance at go-public national commercial bank. The data were taken from their financial statement and GCG assessment published during 2008-2010, analyzed using SEM with generalized structured component analysis (GSCA). It shows that risk profile has no significant and positive effect on the financial performance. Among the four risk profiles, liquidity risk has the best discriminate validity. However, GCG has significant and positive effect on the financial performance, and only financial and non financial transparency has the best convergent validity. Bank's five financial performance indicators have good validity. Beside, ROA, NIM and CAR have good validity in which ROA has the highest loading estimate.

Monetary and fiscal policy analysis: which is more effective?

Abstract: Fiscal policy is an adjustment in the income and expenditure of government as stipulated in the state budget in order to achieve better economic stability and pace of development. The main objective of this study was to measure and analyze Fiscal and Monetary Policy of the Gross Domestic Product (GDP). Fiscal Policy Multiplier (FPM) and Monetary Policy Multiplier (MPM) are used to answer the debate where more effective between fiscal policy and monetary policy. Short-term models derived through error correction model (ECM), which also forms the derivative equation. A system of simultaneous equations two stage least squares (TSLS), is used to describe the sensitivity analysis (response) of shocks to the policy change of important macroeconomic indicators. The results showed that during the study period, Indonesia's monetary policy more effective than fiscal policy.

The indonesian inter-regional social accounting matrix for fiscal decentralisation analysis

Abstract: Disparities in development have long been a crucial issue in Indonesia. With regard to the new structure of the Indonesian government, it is of great interest to determine whether Indonesia should further decentralise its budget, and if so, what consequences this would have on the national economy overall. This paper develops a simple economic tool — that is an inter-regional social accounting matrix (IRSAM) multiplier — to analyse the impacts of further decentralising government fiscal policy on regional and national performances. Our simulations show the following. First, reducing gaps among regional economies and boosting the national economy through a higher fiscal transfer strategy might not achieve the same end; i.e. providing a higher transfer to regions that are lagging behind (Sulawesi and Eastern Indonesia) would most likely reduce gaps among regional economies, but might impact negatively on the national economy overall. Second, in general, a more decentralised fiscal system would benefit households in Sulawesi and Eastern Indonesia, whereas the same cannot be said for Java-Bali, Sumatra, and Kalimantan. Third, impacts of further fiscal transfers on labour income vary considerably depending on the region and type of labour. Keywords: regional economy, fiscal decentralisation, Social Accounting Matrix

Competitiveness towards asean economic community

Abstract: ASEAN Economic Community will be the driving force of an economic integration within ASEAN countries, and between ASEAN countries and the rest of the world. Many believe the economic integration will realize ASEAN framework as a single market and production base, to increase competitive economic region, to support more equitable economic development, and as a stepping stone toward full integration into global economy. Commitments of the implementation of AEC Blueprint by ASEAN member countries will be a crucial role to achieve the objective of the ASEAN Vision, Mission, and Targets. Keywords: AEC, ASEAN, Economic Community

INVESTMENT ANALYSIS AND MANAGEMENT An Indonesian Adaptation

Abstract: A book review dealing with investment in the field of management. It attempts to offer some adaptation to the local environment in Indonesia as compared with the common USA firm and country characteristics case. Yet, effort have been made to adjust the context to the Indonesian conditons but the US firm cases still prevail. Nevertheless, it is hoped to help local students as well as international students to grasp directly the objective for each course on investment. The adaptation is actually made from the P Charles Jones' previous book on principle of investment issue. We suggest also the advance course as it is highly recommended for students (mostly from undergraduate program to graduate one).

Partial Least Squares: Another Method of Structural Equation Modeling Analysis

Abstract: Structural Equation Modeling (SEM) adalah salah satu cara analisis data multivariat yang popular di kalangan peneliti di bidang bisnis, seperti akuntansi dan sistem informasi. Para peneliti sebelumnya telah mengenal SEM berbasis kovarian seperti yang digunakan dalam LISREL dan AMOS. Sebenarnya masih ada lagi jenis SEM yaitu yang dikenal sebagai Partial Least Squares (PLS). Jenis ini menawarkan alternatif terhadap SEM berbasis kovarian yang persyaratan penggunaannya cenderung lebih banyak dan rumit. Paper ini bertujuan untuk memberikan pemahaman mengenai Partial Least Squares. Berbagai aspek PLS seperti manfaat, keterbatasan, persyaratan penggunaan termasuk prosedur evaluasi modelnya juga dibahas.

Price stabilization and ipo underpricing: an empirical study in the indonesian stock exchange

Abstract: We attempt to investigate IPO underpricing and stabilization activities. We find IPO underpricing of around 25% in the Indonesia market. Return distribution for the first 30-trading days shows a positive skew, the distribution becomes closer to normality as the period lengthens. We then develop and test five algorithms to detect IPO intervention. An important goal of this paper is to develop an algorithm that will be able to detect IPO intervention using public data. We find that the number of closing prices that are equal to the offer prices and the skewness of the IPO return in the first 30-trading days are the ‘best’ stabilization measures. Having found “the best measures”, then we investigate under what conditions IPO intervention is more intensive. We find that underwriters tend to stabilize more on more expensive IPOs.

Predictability power of dividend policy and leverage policy to managerial ownership: an agency theory perspective

Abstract: Penelitian ini merupakan pengembangan dari Mahadwartha (2002b) yang mengguna-kan Logit model untuk mengetahui kemampuan prediksi kebijakan leverage dan dividen terhadap kepemilikan manajerial. Variabel leverage dan dividen sudah memisahkan antara kepentingan manajemen dan inside shareholders dengan outside shareholders. Penelitian ini juga menggunakan logit model, dengan modifikasi utama yaitu variabel kepemilikan manajerial menggunakan lead satu tahun kedepan (t+1), penambahan variabel kontrol aktiva lancar untuk meningkatkan kemampuan prediksi model dan periode sampel dari tahun 1993 sampai dengan 2001. Penelitian-penelitian sebelumnya hanya menggunakan variabel kepemilikan manajerial tanpa lead satu tahun kedepan (t+1). Penelitian ini berargumentasi bahwa kebijakan utang dan dividen mempunyai dampak yang lebih besar pada kepemilikan manajerial satu tahun kedepan (t+1) dibandingkan tahun yang berjalan (t0). Hasil penelitian menunjukkan konsistensi kemampuan prediksi kebijakan leverage serta dividen terhadap kepemilikan manajerial, dan kemampuan prediksi leverage dan dividen semakin meningkat dibandingkan penelitian Mahadwartha (2002b) yang hanya mengguna-kan kepemilikan manajerial tanpa lead (t0). Hubungan variabel leverage dan dividen dengan kepemilikan manajerial adalah negatif dengan besaran yang semakin meningkat. Hal ini sesuai dengan prediksi oleh teori keagenan bahwa terdapat efek substitusi antara kepemilikan manajerial dengan kebijakan utang dan dividen dalam mekanisme pengawasan (monitoring) dan pengikatan (bonding). Hasil ini juga menunjukkan bahwa kebijakan utang dan dividen lebih baik dalam menjelaskan program kepemilikan manajerial satu tahun kedepan. Kata Kunci: agency theory; lead; managerial ownership; leverage; dividend.

Pengaruh volume perdagangan saham, deposito dan kurs terhadap ihsg beserta prediksi ihsg (model garch dan arima)

Abstract: The objective of this research is to identify the influences of stock trading volume, deposits and exchange rate to the stock price index (IHSG). This research examines secondary data from Indonesia Stock Exchange Reference Center for monthly IHSG from 1992-2006 as well as deposit interest rate and exchange rate from Bank of Indonesia at the same period. The statistical modelings used to test the hypothesis are GARCH and ARIMA Model. Hypothesis test 1 and 3 shows that the stock trading volume has positive influence, while interest rate has negative influence to the stock price index. Test on hypothesis 2 indicates that exchange rate has no significant influence to stock trading volume. Based on the prediction obtained by ARIMA and GARCH method, it is shown that ARIMA provides the least differences between actual value and predicted value. It is concluded that for our data, ARIMA method is better than GARCH method.

Perilaku Beralih Merek Konsumen Dalam Pembelian Produk Otomotif

Abstract: This research examined of consideration set size to switch brands in automotive purchase, called Sambandam-Lord model (1995). The results showe that the replicated research model could be applied to the observed data, but not all eleven hypotheses could be supported as the researchers expected. Six of the eleven hypotheses, have been supported, while the others have not. This condition indicates that automotive brands switching behavior occurred because of the three factors mentioned in the model, i.e. (1) prior experience, (2) product knowledge, and (3) media search, and other factors. The intended factors which have not been revealed were found as a desire to have newly manufactured cars, a desire to try other brands, and boredom of the owned car, need to be considered for further research. Keywords: Brand switching, consideration set size, prior experience, product knowledge, media search, retailer search, and satisfaction.

The difference in consumer risk perception between celebrity endorser and expert endorser in college advertisements

Abstract: This research aims to examine the difference in consumer risk perception between celebrity and expert endorser in advertisement. We proposed two hypothesis, H1: There is a difference in consumer risk perception between an expert endorser and celebrity endorser in college advertisement. H2: There is a difference in consumer risk perception between an expert endorser and a celebrity endorser in college advertisement, which is moderated by the consumer product knowledge. Experimental design was employed in this study with Statistical Experimental-Completely Randomized Design. This was conducted on three groups to test H1 and six groups to test H2. To test H1, the participant of each group was given full color print ads using celebrity endorser, expert endorser and nonendorser in advertisement. We go further splitting each group with high and low consumer product knowledge to test H2. The participants of this research are 200 students of SMA 7 Semarang. We use One Way Anova to test H1 and two ways Anova to test H2. Our findings showed that there is a difference in consumer risk perception between an expert endorser and celebrity endorser in college advertisement. We also found that there is no difference in consumer risk perception between an expert endorser and a celebrity endorser in college’s advertisement, which is moderated by the consumer product knowledge. We also found that there is difference in consumer’s perceived performance risk, consumer’s perceived financial risk and consumer’s social risk between an expert and celebrity endorser in College advertisement. On the other hand, we found there is no difference in consumer perceived psychological risk between an expert and celebrity endorser in College advertisement. Keywords: celebrity endorser, expert endorser, consumer risk perception, consumer product knowledge.

Pengaruh variabel intervening kecukupan anggaran dan komitmen organisasi terhadap hubungan antara partisipasi penganggaran dan kinerja manajer di indonesia

Abstract: This study explores the linkages budget participation and managers performance in Indonesia. In the theoretical model budget participation affects totally to managers performance and this affects can directly or indirectly via two intervening variable: budget adequacy and organizational commitment. To test the relationship, a survey questionnaire was administered to managers of going public corporation in Bursa Efek Jakarta (BEJ). Results of path analysis support the hypothesized relationships.

Understanding Social Enterprises in Indonesia

Abstract: Entrepreneurship has been one of the biggest growth topics in the past decades. Some entrepreneurs engage in socially active activities that are strongly embedded in their entrepreneurial activities and are known as social entrepreneurship. This research maps the presence of social enterprises in Indonesia by investigating the personal and organizational contexts of the social entrepreneurs. Qualitative research was conducted by engaging in in-depth interviews with 8 social enterprises in Indonesia. The findings of this research result in a unique and interesting map of the presence of the social entrepreneurs that contributes significantly to the extant literatures of social entrepreneurship.

Grease or sand the wheel? the effect of individual bribes on the drivers of aggregate productivity growth

Abstract: The Asian paradox suggests a net grease-the-wheel effect of corruption. Under the assumption of diminishing returns to bribes, going beyond the single-representative-firm assumption, we argue that the grease and sand-the-wheel effects are likely to co-exist among a large number of firms, and that the industrial effect of corruption depends on the productivity drivers that fuel firm’s dynamics. We decompose Indonesian manufacturing labor productivity growth while contrasting and comparing the contributions of no-, low- and high-bribing firms over the period 1975-94. We confirm the coexistence of grease and sand-the-wheel effects. Industrial productivity gains stem first from the net entry of non-corrupted firms, evidencing a sand-the-wheel effect. Market share reallocation from low to high productivity growth incumbents paying low bribes is the second source of productivity growth, pointing at a grease-the-wheel effect. Intra- plant productivity growth is overall negative and largely attributable to high-corruption plants, suggesting a sand-the-wheel effect.

Alternatif pemacuan kinerja personel dengan pengelolaan kinerja terpadu berbasis balanced scorecard

Abstract: In this article I discussed a radical change in managing personnel performance. If in the past, performances were measured only at responsibility center level and the performance measures used were limited to financial measures, in this article I discussed how to desain integrated performance management system for responsibility centers and personnel as well, using Balanced Scorecard as a basis. In this article, first I discussed the limitation of executive performance measurement in traditional management. Then I explained expectancy theory created by Porter-Lawler to provide a conceptual framework in designing Balanced Scorecard based integrated performance management. In this article I discussed Balanced Scorecard based integrated performance management as an alternative for driving personnel performance in building company’s competitive advantage. At the end of this article I presented a summary of differences between performance measurement in traditional management and that in modern management. Keywords: pengelolaan kinerja terpadu; balanced scorecard; kinerja

Toward optimum synergy of monetary policy in dual financial/banking system

Abstract: In a country adopting dual financial/banking system, where a conventional financial system coexists with an Islamic financial system, monetary authority has the responsibility to maintain financial/monetary stability and synergy of both systems. This study analyses and compares one of the main pillars of conventional monetary system and Islamic monetary system (i.e., interest system vs. profit-and-loss sharing/PLS system) and try to come up with the possible conduct of optimum monetary policy under dual financial/banking system. The results show that PLS system is superior to interest system in fairness, justice, efficiency, and stability. Therefore, the optimum synergy in the dual financial/banking system can be achieved when monetary policy in conventional system benchmarks its policy rate to the PLS market return in Islamic financial market of Islamic system, which will ensure optimum market efficiency that maximize distributive social welfare and justice. Monetary policy in managing money supply is only a response to the dynamic activity in the real sector. While, active monetary policy can be conducted, not by altering M, but by altering V, i.e. to increase the flow of money in the economy by issuing central bank SUKUK with PLS market return to finance government projects, commercially as well as socially, in the real sector. Keywords: Islamic Monetary System, Islamic Financial System, Dual Banking Financial System

Analisis pengaruh strategi institusi, budaya institusi, dan conflict of interest terhadap budgetary slack

Abstract: This study examines the influences of Institution Strategy, Institution Culture, and Conflict of Interest on Budgetary Slack. The culture was devided into two types; common culture, the employee working process and budget culture, the composing budget process. The results of the case study at Local Government in Daerah Istimewa Yogyakarta showed that institution culture tend to have positif influence on common culture, commitment organization, and locus of control. On the other hand, it was found that rewards for group performance, hierarchical index, philosophy, and supervisor as team leader have high influence for budgetary slack creating. Both interview and direct questionare fill up show that the budget is not enough for executive programs and projects due to misunderstandings that often happen between executive and legislative in the process of composing. Otherwise, the program will be dropped or cut down if the reason was not accepted or conformed by legislative. However, conflict of interest tend to have negatif influence on budgetary slack and institution strategy that hold up their work. Key Words: Institution Strategy, Institution Culture, Conflict of Interest, Budgetary Slack

Problems of the indonesian sugar industry: an institutional economics perspective

Abstract: Diantara sekian banyak komoditas pertanian yang memainkan peran strategis di Indonesia, gula merupakan salah satu produk yang mendapatkan perhatian sangat besar dari pemerintah Masalahnya, sejak beberapa dekade terakhir, industri gula di Indonesia mengalami kemerosotan yang luar biasa, baik karena faktor internal maupun eksternal Akibat persoalan ini, Indonesia yang semula menjadi eksportir gula terbesar kedua di dunia, saat ini justru menjadi salah satu negara importer gula terbesar di dunia Secara umum, bila dipetakan, masalah pada industri gula di Indonesia berakar dari empat faktor berikut: (i) inefisiensi pada level petani; (ii) inefisiensi pada tingkat pabrik gula (iii) kebijakan pemerintah yang tidak efektif; dan (iv) perdagangan produk gula sangat distortif dalam pasar internasional Tulisan ini, dengan cara yang berbeda, berargumentasi bahwa sebagian dari penyebab kemunduran industri gula nasional disebabkan oleh inefisiensi kelembagaan (institutional inefficiency), baik pada level kebijakan kelembagaan (institutional environment) maupun kesepakatan kelembagaan (institutional arrangement)

Analisis kandungan informasi dan efek intra industri pengumuman stock split yang dilakukan oleh perusahaan bertumbuh dan tidak bertumbuh

Abstract: The objective of this research is to examine empirically about the information content and intra industry effect of stock split announcement. The analysis include three aspects: information content, risk (beta) and intra industry effect of stock split announcement by growth firm and not growth firm. The sample of this research is 79 reporter firm (consist of 59 growth firm and 20 not growth firm) and 166 non reporter firms during the period of 1997 – 2002. The result of this research show that stock split has information content which is negatively respondend and statistically significant responded by the market around the date of stock split announcement. The difference between beta growth firms and not growth firms after stock split announcement is significant. The intra industry effect of stock split announcement is competitive effect. Keywords: stock split, intra industry effect, competitive effect, information content