Advanced Issues in the Economics of Emerging Markets: Volume 27

The study finds the determinants of women empowerment measured in terms of domestic decision-making in a developing economy perspective by considering rural women in India. Women empowerment simply means giving opportunities to women to enable them to be socially and financially independent. Empowerment of women through investment in their education and health has a positive effect on economic growth. Almost 70% of Indian population lives in rural areas. If women in these areas are educated and empowered, they can contribute to the economic growth either directly or indirectly by improving health and education of the future generations. This study indicates that an employed woman, having her own income source, higher educational level, knowledge of legal rights, higher educational level of the mother of the woman, having property in her own name, more freedom of movement during her school days, having high self-esteem and belonging to a relatively affluent background, increases domestic making power of the women, and thus empowerment. Some possible policies are suggested for developing economies.

Several studies and research related to event study and terrorist bombing acts have different conclusions. Moreover, research on terrorist bombings worldwide has never been conducted. Hence, this research aims at examining the impact of terrorist bombing using the abnormal return variables by looking at all bombings around the world in the past 10 years. This research uses a paired t-test by looking at the abnormal return before, during, and after a bombing act. Results show no significant difference between the abnormal return before, during, and after bombing acts.

This study aims to determine whether destination awareness, destination image, and tourist motivation have a direct or indirect effect on tourists’ intention to revisit, with word of mouth (WOM) as a mediating variable. The study conducted a self-administered questionnaire survey and its target population was the visitors who came to the Batu Secret Zoo. The sample consisted of 170 respondents, who had visited the Batu Secret Zoo in the last six months. A survey research design was used. The measures used in the questionnaire were adapted from previous scales. The research was conducted using a quantitative method.

The findings indicate that destination awareness, destination image, and tourist motivation have a significant effect on tourists’ intention to revisit. This study also analyzed the possible mediating effect of WOM on tourists’ intention to revisit. The results showed that WOM plays a significant mediating role for destination awareness and destination image on tourists’ intention to revisit. These causal relationship variables were consistent with previous findings and conceptualized related studies. Several implications of the findings are discussed later.

Micro, small, and medium enterprises (MSMEs) are important assets for the economic sustainability in Indonesia. The sector has an important role in encouraging economic growth and supporting the creation of new jobs for the Indonesian population. When Indonesia was facing the economic crisis situation, MSMEs remained and stood strong. In fact, the data shows an increasing number of MSMEs. Despite their contribution to Indonesia’s economies, it turns out that MSMEs still have very basic problems. The results of previous research indicate that MSMEs still face various problems related to financial management caused by a lack of managerial and financial knowledge. There are many cash flow problems faced by MSMEs that are in line with the lack of knowledge and understanding of financial management by MSME actors. This indicates that owners or managers of MSMEs need to have sufficient financial literacy. Understanding of financial literacy is paramount for business actors and can be utilized for instance to prepare financial statements that can be used to obtain funds. In the context of MSMEs, owners or managers need to have financial knowledge related to financial access and also for a company business to grow well. This study aims to analyze the financial literacy of owners or managers and its impact on access to finance and growth of the MSMEs in West Java, Indonesia. The samples of this research are MSMEs’ owners or managers of various business types. Data concerning Financial Literacy, Access to Finance, and Growth of the MSMEs are obtained through questionnaires. The obtained data were processed using Structural Equation Modeling to ensure the relationships between research variables. The results of the research analysis show depictions of the financial literacy, financial access, and growth of MSMEs in West Java, Indonesia. The results of the study support the previous studies and theories that Financial Literacy has a positive effect on Access to Finance and Growth of MSMEs, and Access to Finance also has a positive effect on Growth of MSMEs.

The purpose of this study is to provide an extensive bibliometric literature review on authentic leadership as a term and concepts to deliver authentic leadership research with Publish and Perish (PoP) software, Mendeley software, and databases from Google Scholar index. Article located through PoP software based on a Scopus index database. A total of 122 articles refined and analyzed from various qualifying journals starts on January 1999 to December 2018 (20 years). The Mendeley software is used to help manage the references and brief resumes of each article. This chapter presents five clusters to review authentic leadership literature. The clustering process assisted by the VOSviewer software by matching words that often appear in each group, namely antecedents, commitment, performance, positive effects, organizational behavior, and leadership effectiveness. Each of these clusters shows authentic leadership research areas. The five clusters produced through the VOSviewer software provide an overview and research stream of the authentic leadership. Researchers and practitioners need to pay attention to trends and research areas in authentic leadership for improving authentic leadership development.

Manufacturing waste reduction with productivity improvement 4.0 has a crucial role in the use of technology for efficient production development. The objective of this research is to measure the productivity increase rate of healthy juices to present the pathway of loss reduction in healthy juices with productivity improvement 4.0. The author collected data from informants through 14 activities, including observation and in-depth interviews, before analysing the received data with the Integration Definition (IDEF) process flow chart and value stream mapping using SPSS Statistics version 17.0. The study found that loss reduction in healthy juices takes place during the cutting, boiling, and pasteurizing processes. After checking the productivity increase in healthy juice production, the total time spending is eight hours and the rate of is 6.66 minutes/bottle; the total amount is 2,880 bottles, which is lower than the expected number. Therefore, the author offered the pathway for loss reduction in healthy juices with productivity improvement 4.0. The author also found that it is able to reduce the loss during the healthy juices production activity, resulting in the productivity increase to 4,000 bottles. Within eight hours, the productivity rate is 4.80 minutes/bottle, an increasing number of 38.88%. This increase benefits entrepreneurs to increase productivity efficiently and effectively.

This study aims to analyze the effect of top management team (TMT) expertise on real earnings management (REM) and accrual earnings management (AEM) activities in companies in Indonesia by examining a hand-collected secondary data from non-financial publicly listed companies in Indonesia in 2016 and 2017. The expertise of TMT members is measured by possession of a master’s degree, understanding and experience of managed core functional areas, and possession of accounting certifications such as CA or CPA. The results of the study show that the expertise of the members of the TMT has no influence on the activity of AEM in companies in Indonesia. Meanwhile, understanding and experience on the managed core functional areas have a positive influence on REM activities through abnormal cash flows. Possession of accounting certification has a positive influence on REM activities in companies that are in accordance with managerial entrenchment effects, as well as a negative influence on REM activities in companies through abnormal discretionary expenses that are in line with incentive-reduction effects.

This study examines associations between accrual earnings management (AEM) and real earnings management (REM), and earnings quality between countries considered under insider economics and outsider economics clusters. Countries included in the outsider economics cluster are Singapore, Malaysia, and Hong Kong. Meanwhile, countries included in the insider economics cluster are Indonesia, the Philippines, and South Korea. Earnings management practices have changed from AEM to REM since the publication of the Sarbanes Oxley Act and DFA 954 implementation of the Claws back provision policy in the United States.

Research data were obtained from the Bloomberg database, 2010–2016. Regression analysis and t-test were utilized. This study compared AEM and REM to determine which is stronger based on country clusters, as well as the association between AEM or REM and earnings quality.

The results of this study indicate that AEM and REM are associated with the quality of earnings in the insider economics cluster. However, AEM and REM are not associated with earnings quality in the outsider economics cluster. Furthermore, associations between AEM and earnings quality are stronger than associations between REM and earnings quality in insider economics cluster.

This research focuses on the financial literacy level, stock participation, and financial behavior among millennials in Indonesia.

Logit regression analysis is performed to analyze the relationship among tested variables. The weighted percentage analysis is also used to portray a response in relation to the sample of respondents. Such an analysis is widely used in Indonesia.

Findings suggest that for basic and advanced financial literacy level topics, millennials with higher education level and profession related to economy are the ones who have high basic financial literacy level. However, as respondents become older and/or get married, the basic financial literacy level tends to decrease. When the questions are advanced, the education level is statistically significant. If they have more available money to spend than others, then they tend to have a higher advanced financial literacy level. However, the advanced financial literacy level of female respondents who are older and/or have children tends to decrease. Subsequently, the relationship between financial literacy level and stock market participation is evident when millennials have a high basic and/or advanced financial literacy level, suggesting that they tend to participate in the stock market. Overconfident millennials or those who focus on learning economics also likely participate in the stock market.

The purpose of this study is to examine the perception of practitioners, auditors, and academics about important issues on International Financial Reporting Standards (IFRS) convergence in Indonesia as well as the plan to fully adopt IFRS in Indonesia. Indonesia is one of the emerging countries with distinct features that could shed some lights on IFRS convergence issues. Total respondents of our study are 170 (consist of 43 practitioners, 50 auditors, and 77 academics). The authors find that the respondents are quite familiar with IFRS as well as IFRS convergence in Indonesia. There are several challenges in IFRS convergence in Indonesia, namely complexity to measure fair value, complexity of IFRS-based accounting standards, and tax and accounting standard differences. Regarding the plan to fully adopt IFRS, respondents in average agree that the most significant benefit of IFRS full adoption is IFRS create uniformity in global financial reporting. However, there are several obstacles: lack of education, understanding, and experience by preparers of financial reports with the use of IFRS based, coordination and collaboration among global regulators, and required changes in accounting standards. Majority of respondents do agree that Indonesia fully adopt IFRS, and they stated that it will take at least three to five years for Indonesia to fully adopt IFRS.

With the increasing understanding of stakeholders on sustainability aspects for the business, companies are nowadays paying more attention to environmental and social issues. This study aims to examine the relationship between Environmental, Social, Governance (ESG) Index and firms’ value. Moreover, this study also examines how the controversy score influences the company’s value. The authors employ a dataset of 1.356 companies from 22 countries in Asia which representing the Asian market from 2014 to 2018. This study shows that ESG index score and controversy score are statistically significant, affecting the firms’ value, measured by Tobin’s Q. From the individual tests, the findings of this study indicate that ESG-environmental, ESG-social, and ESG-governance, individually affect the firms’ value. This study suggests that providing disclosure on ESG aspects is essential, not only to increase company value but also to show the company resilience and sustainability. On the other hand, ESG controversy score surprisingly indicates a positive relationship with the company value. The result implies that controversies provide a positive signal to the investor because controversies could provide a signal to the public of companies’ willingness to have transparency and accountability.