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Macroeconomic Risk and Growth in the Southeast Asian Countries

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INTERNATIONAL SYMPOSIA IN ECONOMIC THEORY AND ECONOMETRICS

Series Editor: William A. Barnett

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INTERNATIONAL SYMPOSIA IN ECONOMIC THEORY AND ECONOMETRICS - VOLUME 33B

MACROECONOMIC RISK AND GROWTH IN THE SOUTHEAST ASIAN COUNTRIES: INSIGHT FROM SEA

EDITED BY

WILLIAM A. BARNETT

University of Kansas, USA

and

Bruno S. Sergi

Harvard University, USA, & University of Messina, Italy

United Kingdom – North America – Japan – India – Malaysia – China

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Emerald Publishing Limited

Emerald Publishing, Floor 5, Northspring, 21-23 Wellington Street, Leeds LS1 4DL.

First edition 2024

Editorial matter and selection © 2024 William A. Barnett and Bruno S. Sergi.

Published under exclusive licence.

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ISBN: 978-1-83797-285-2 (Print)

ISBN: 978-1-83797-284-5 (Online)

ISBN: 978-1-83797-286-9 (Epub)

ISSN: 1571-0386 (Series)

Contents

About the Contributors

Rifqi Amrulloh is a Permanent Lecturer and Head of the Management Study Program at STIE Pancasetia Banjarmasin specializing in Financial Management. He is Active as a Coach in student development activities in the form of a capital market study group in collaboration with the Indonesia Stock Exchange and a Lecturer in Financial Management, Investment Management, and Capital Market and Risk Management courses. He is also a Member of the Indonesian Management Lecturer Association, Coordinator of Education at the Communication Forum for Indonesian Young Islamic Thinkers, and is Active in the Insurance Business.

Mochammad Doddy Ariefianto is a Banking-Economics Specialist and Lecturer at Binus University. In 2011–2019, he served at the Deposit Insurance Corporation with his last position as Director of the Financial System Stability and Surveillance Group as well as Research Group Director (Acting). He obtained graduates in Master of Economics and Doctor in Economics, University of Indonesia.

Prihat Assih is an Associate Professor in Accounting Discipline. She is also a Reviewer of National Accredition Body for higher education and Assessor of Profession Certification National Body.

Rialdi Azhar is an Assistant Professor within the discipline of Financial Accounting. Currently, he is a Lecturer in the Accounting Department, Faculty of Economics and Business, University of Lampung, Indonesia. He is also actively conducting research in the fields of Economic Policy and Finance, and focuses on raising energy issues.

Grahita Chandrarin is currently the Director of Graduate Program, University of Merdeka Malang, East Java, Indonesia. She has published a few books and the latest ones are ‘Accounting Research Methodology’ (published by Salemba Empat Jakarta in 2017) and a book chapter titled ‘Management Accounting in China and Southeast Asia’ regarding ‘Management Accounting Practices in Indonesia’ (published by Springer – Switzerland in 2021). She has published scientific articles in Thomson Reuters and Scopus-indexed journals as well. She was the Former of Indonesian Financial Accounting Standard Board and National Reviewer of Research. Besides, in the last 10 years, she has been involved in Asia Pacific Management Accounting Association (APMAA); in 2016 she was the President of the Association and has actively served as a Senior Director for years. Furthermore, she has become External Examiner in several universities, both in Indonesia and other countries; such as UiTM Malaysia, University of Canberra Australia, and Macquarie University, Sydney, Australia.

Zeni Firdayani is a Graduate of Business Administration, Department of Business Administration, Faculty of Administrative Sciences, Universitas Brawijaya, Indonesia. She is also a Researcher in Finance. Her thesis is associated with the performance of companies listed on the Indonesia Stock Exchange.

Evi Gravitiani is a Lecturer in Development Economics, FEB UNS. She has completed undergraduate studies majoring in Economics at UNS (1996), S2 studies majored in Economics at UGM (2003), and continued doctoral programs with environmental economics at UGM (2009). Her research interest is in environmental economics.

Harmono Harmono is an Associate Professor as a Lecturer and Senior Researcher in Economics, Financial Management, Business and Accounting at the University of Merdeka Malang. He is also a Reviewer of the Journal of Intellectual Capital published by Emerald indexed by Scopus Q1 British, (WOS), Reviewer of Expertise Journal of Finance and Bank.

Sugeng Haryanto is an Associate Professor in Financial Discipline. He also serves as Managing Editor of the Accounting and Financial Review published by the Merdeka University, Malang.

Ernie Hendrawaty is an Associate Professor and serves as Vice Dean of Academic and Partnership at Faculty of Economics and Business, Universitas Lampung, Indonesia. She is within the discipline of Finance. Her research interests are corporate governance, sustainability of finance, and financial literacy. In addition, she is the Reviewer of several journals, that is, reputable and non-reputable journals.

Setyaningtas Honggowati is an Assistant Professor within the discipline for Accounting Graduate from Doctoral Program Sebelas Maret University. She is Expert in Financial Report Disclosure Research and Mastering the Management Accounting as a subject.

Jung-Hua Hung is a Professor at Department of Business Administration, National Central University, Taiwan. He holds his PhD from National Chengchi University. His research expertise is in Financial Management, Accounting, and Financial Statement Analysis. He has published his articles in reputable journals, such as Review of Pacific Basin Financial Markets and Policies, Journal of Banking and Finance, Pacific Basin Finance Journal, and Quarterly Review of Economics and Finance.

Nur Imamah is a Lecturer in Finance, Department of Business Administration, Faculty of Administrative Sciences, Universitas Brawijaya, Indonesia. She currently serves as Secretary of the Department of Business Administration, Faculty of Administrative Sciences, Universitas Brawijaya, Indonesia. She is also a Member of the Indonesian Finance Association. Her articles published in Pacific-Basin Finance Journal, Australasian Accounting, Business and Finance Journal, and other journals.

St. Ibrah Mustafa Kamal is a Magister of Science within the discipline for Management. She is Lecturer at Alauddin State Islamic University Makassar (UIN Alauddin Makassar) in Basic Management and Scientific Writing. She also serves as one of the Expert Team in education quality assurance of UINAM. She is also the Managing Editor of edu-leadership journal published by Islamic Management of Education. Her research interest are management, behaviour finance, corporate finance, corporate governance, banking, and financial institution.

Fajrin Satria Dwi Kesumah, is a Young Lecturer in Management Department, Universitas Lampung, Indonesia, concentrating in Peer Group of Financial Management. He graduated from The University of Adelaide in Finance and Business Economics. He is currently a Voluntary Reviewer in International Journal of Environmental Science and Technology and Journal of Business Economics and Management.

Izza Mafruhah is a Professor within the discipline for Economics in Faculty of Economics and Business, Sebelas Maret University, Surakarta, Indonesia. She actively participates in scientific conferences and has published her articles in international scientific journals, especially economic and social sciences. Her specific interests cover empowerment, migrant worker, poverty, and economic development.

Firda Nosita has been a Lecturer at STIE Pancasetia Banjarmasin, Indonesia since 2014. She is currently pursuing PhD degree and is an Awardee of LPDP Scholarship. Her major areas are finance and investment. Her research interests (but not limited to) are corporate finance and investment and behavioral finance.

Winny Perwithosuci is an Economics Graduate from Sebelas Maret University. Currently, she works as Lecturer at the Faculty of Economics and Business, Universitas Muhammadiyah Surakarta. Her research interests are industrial economics and environmental economics.

Yeni Priatnasari is an Assistant Professor within the discipline for Accounting in Politeknik Harapan Bersama. Currently, she is the Student of Doctoral Program at Sebelas Maret University. She is the Editor in Chief in Monex Journal Research of Accounting Politeknik Harapan Bersama. She is also Reviewer of several reputable journals. She is the Principal Member of the Indonesia’s Accountant Association (IAI) and served as the Chairwoman of IAI Komisariat Tegal from 2018 till 2022.

Firman Pribadi is a Lecturer in Finance in Post Graduate Program at Universitas Muhammadiyah Yogyakarta. He earned his degree in Doctor of Management at Universitas Gajah Mada. His research interests are corporate finance, credit risk, and value at risk. He has published articles in several national and international journals, including Scopus-indexed journals.

Agung Nur Probohudono is an Associate Professor at Universitas Sebelas Maret, Surakarta, Indonesia. He holds a PhD in Accounting from Curtin University, Perth, Australia, who currently serves as Chair of the Accounting Study Program at the Faculty of Economics and Business. He is also a Reviewer in several reputable international journals and has many other experiences in research and community service.

Rahmawati is a Professor at the Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia. He currently serves as Head of the Doctoral Program in Economics. He is active in several research activities and community service, with many publications in national and international journals.

Tamat Sarmidi is an Associate Professor at the Centre for Sustainable and Inclusive Development Studies and a Deputy Dean at the Faculty of Economics and Management, Universiti Kebangsaan, Malaysia. He is also an Adjunct Professor at the Fakultas Ekonomi dan Bisnis, Universitas Airlangga, Indonesia. He is an Editor for the Scopus Index’s Jurnal Ekonomi Malaysia and International Journal of Economics and Management.

Wen-Chung Shih is an Associate Professor at the Department of M-Commerce and Multimedia Applications at Asia University. He received his PhD in Computer Science at National Chiao Tung University. His research interests are in e-learning, expert systems, and grid computing. He has published articles in several national and international journals, including Scopus-indexed journals.

Djoko Suhardjanto is Professor in Accounting. His PhD degree is from Curtin University, Perth, Western Australia. He is the Dean of Business Economic Faculty of Sebelas Maret University, and an Assessor of National Accreditation Board for higher education. He is Reviewer of several reputable journals. He is also Member of the Indonesia’s Accountant Association (IAI) and served as the Chairman of IAI Komisariat Surakarta from 2018 to 2022.

Indrian Supheni is an Assistant Expert in Accounting at Sekolah Tinggi Ilmu Ekonomi Nganjuk, Indonesia, who is currently studying at the Doctoral Program in Economics, Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia. He has several publications in accounting, economics, and other social sciences.

Arni Surwanti is a Lecturer in Finance at Master Management Department Post Graduate Program Universitas Muhammadiyah Yogyakarta. She received her Doctoral degree in Financial Management at Universitas Gajah Mada. Her research interest is in corporate finance. She has published articles in national and international journals, such as the International Journal of Management and Economics Invention.

Indah Susilowati is a Professor of Economics at Faculty of Economics and Business in Diponegoro University, Semarang, Indonesia. She actively participates in research and community service, especially in gender, fishery, and empowerment. The result of this activity was published in scientific conferences and reputable journals.

Eduardus Tandelilin is a Professor of Finance at Department of Management Faculty of Economics and Business, Universitas Gadjah Mada, Indonesia. He is also currently serving as the Director of MBA Program at Faculty of Economics and Business UGM. His research interests are corporate finance, corporate governance, capital markets, banking, and financial institution. He has written several books on finance subjects and articles published in national and international journals.

Irwan Trinugroho is an Associate Professor of Finance and Banking at the Faculty of Economics and Business, Universitas Sebelas Maret (FEB UNS), Indonesia. Currently, he is also the Head of International Office of UNS and the Chairman of the Center of Fintech and Banking UNS. He graduated with a PhD degree in Banking and Finance from the University of Limoges, France. He is also the Vice President for Program and International Affairs of the Indonesian Finance Association (IFA).

Saparila Worokinasih is a Lecturer in Finance, Department of Business Administration, Faculty of Administrative Sciences, Universitas Brawijaya, Indonesia. Currently, she also serves as Head of the Taxation Study Program, Faculty of Administrative Sciences, Universitas Brawijaya, Indonesia. Her articles published in the International Journal of Accounting and Business Society, Australasian Accounting, Business and Finance Journal, and other journals.

Preface

The world’s economic condition after suffering the COVID-19 pandemic has transformed dramatically by several challenges that affected numerous aspects. These potential issues include volatility in stock prices, labour markets, financial development, financial market risk, etc. Although the economy in various countries around the world is now developing for the better, the presence of problems such as geopolitical tensions and economic uncertainty still increases the probability of the emergence of a macroeconomic risk for certain countries.

The volume provides contemporary issues in the field of finance and economy in Indonesia and some Southeast ASEAN countries. These concentration areas, emerging markets, offer a unique setting that differs from those countries in developed markets, such as the domination of institutional and family-owned and the significant contribution of small businesses to economic growth. As a result, it is interesting to see the economic viability and risk with these background countries. This volume covers these topics and is represented in several papers written by authors from multiple countries. In Indonesia, a paper on this issue finds that business risk and asymmetric information significantly affected the increase of friction, while the stability of the economy reduced the friction. Another paper in this issue finds that business risk is associated with the instability in stock price that can cause the firm’s financial stability.

Firms in emerging countries are also often difficult to sustain because of the lack of risk assessment practice. Hence, this volume contains a discussion regarding risk reporting and disclosure practices, and it will bring a new finding in the accounting practice in emerging economies. Also, a paper will propose a new method for evaluating the risk of investing in the stock portfolio that could be applied to investment data interest and decision-making, which is considered essential for business in the long term. Macroeconomic risks are also inseparable from the social context in the country. Thus, a paper in this book presents labour force, migrant workers, and gender equality, which are important to be discussed in this topic.

Apart from several aforementioned new issues in finance and economics, some classical issues such as systemic risk, bank stability, and profitability also be covered in this volume because those topics are never absolute to be discussed, particularly in the context of macroeconomics risk. All the paper’s findings will enrich the evidence and literature on economic growth, economic risk, and others. These findings would be immensely beneficial for stakeholders, governments, policy-makers, and the people within the sector under financial risk, economic analysts, and others in order to tackle similar problems regarding the macroeconomics risk from the fundamentals.