International journal of business, economics and management

Corporate governance and financial performance of manufacturing companies in Indonesia

I Putu Sisna Armawan — 2026-07-08

This study aims to provide empirical evidence on the effect of corporate governance mechanisms, proxied by board size, independent commissioners, family connections, and audit committees, on corporate financial performance, as measured by Return on Assets (ROA). The population of this study comprises manufacturing companies listed on the Indonesia Stock Exchange during the 2021–2024 period. Using a purposive sampling technique, 195 firm-year observations were selected. Data were analyzed using panel data regression with the Fixed Effect Model (FEM) employing Stata version 17. The findings reveal that board size, independent commissioners, family connections, and audit committees all have a positive and statistically significant effect on financial performance. These results suggest that robust internal governance mechanisms are effective in mitigating agency costs and enhancing corporate performance. Furthermore, the findings support the Alignment Effect perspective, indicating that family-connected boards can optimize the utilization of corporate assets and align managerial interests with those of shareholders. The study provides important implications for both corporate managers and regulators. Manufacturing firms are encouraged to maintain and strengthen governance structures to improve organizational performance, while regulators are expected to enhance substantive supervision regarding the implementation of good corporate governance practices.

Analysis of seaweed commodities competitiveness upon international market in Bali province

Putu Udayani Wijayanti — 2026-07-12

Seaweed is one of Indonesia’s leading fisheries commodities with significant export potential, particularly in Bali Province. However, increasing global competition requires a deeper understanding of its competitiveness. This study aims to analyze the comparative and competitive advantages of Bali seaweed, identify factors influencing its competitiveness, and examine export trends in the international market. The research uses a descriptive quantitative approach with secondary time series data from 2014 to 2024. Analytical tools include production share, export share, and Porter’s Diamond Model. The results show that Bali’s production share experienced a decline during 2017–2019 due to environmental and socio-economic pressures but gradually recovered after 2020. Export performance is highly fluctuating, with a significant increase in 2024 indicating strong competitiveness under favorable conditions. Factors influencing competitiveness include natural resources, human resources, infrastructure, technology, demand conditions, and government support. The study implies that improving technology, infrastructure, and value-added processing is essential to strengthen Bali’s global competitiveness in the seaweed industry.

Corporate governance and intellectual capital as drivers of financial sustainability: The mediating role of profitability in community-based financial institutions

Luh Ade Mirah Anggara Wati — 2026-07-15

This study examines the effect of corporate governance and intellectual capital on financial sustainability with profitability as a mediating variable in Village Credit Institutions (LPD) in Badung Regency, Bali, Indonesia. LPDs play an important role as indigenous community-based financial institutions that support local economic development and community welfare; therefore, maintaining their financial sustainability is essential. This study is grounded in Goal Setting Theory and Agency Theory and employs a quantitative approach using Partial Least Squares–Structural Equation Modeling (PLS-SEM). Data were collected through questionnaires distributed to LPD managers and supervisors in Badung Regency. The results reveal that corporate governance positively influences profitability but does not directly affect financial sustainability. Intellectual capital negatively affects profitability while positively influencing financial sustainability. Furthermore, profitability has a positive effect on financial sustainability and mediates the relationship between corporate governance, intellectual capital, and financial sustainability. These findings indicate that the sustainability of community-based financial institutions is determined not only by governance mechanisms and intellectual resources but also by their ability to generate sustainable profitability. This study contributes to the financial sustainability literature by providing empirical evidence from indigenous financial institutions and offers practical implications for policymakers, supervisory institutions, and LPD managers in strengthening long-term institutional sustainability.

Fraud risk prediction as a moderator of the relationship between operational complexity and audit report lag

I Gede Made Bagus Wira Manuaba — 2026-07-16

This study examines the effect of operational complexity on the likelihood of increased audit completion time and investigates the moderating role of fraud risk prediction. Increased audit completion time may reduce the timeliness and relevance of financial information. Operational complexity expands the scope and difficulty of audit procedures, while potential fraud risk increases audit uncertainty and requires more extensive audit examination. This study employs a quantitative approach using companies listed on the Indonesia Stock Exchange (IDX) as the research population. The sample was selected using a census sampling method based on the availability of complete annual reports and audited financial statements during the 2020–2024 period, resulting in 639 companies with 3,195 firm-year observations. Data were analyzed using logistic regression with Moderated Regression Analysis (MRA) through STATA 17. The increase in audit completion time was measured using a dummy variable, with a value of 1 when the current year’s audit completion period was longer than the previous year and 0 otherwise. Operational complexity was used as the independent variable, fraud risk prediction proxied by the Beneish M-Score as the moderating variable, and auditor reputation, firm size, and industry type as control variables.

Managerial environmental awareness as a contextual mechanism in advancing SME sustainability

Gede Agus Dody Aryawan — 2026-07-26

Small and medium-sized enterprises (SMEs) are increasingly required to adopt sustainable business practices; however, many SMEs still face challenges in integrating environmental strategies into their operational activities due to limited resources and adaptive capabilities. This study examines the effects of green innovation, dynamic capabilities, and organizational culture on business sustainability among SMEs in Denpasar City, Indonesia, while investigating the moderating role of managerial environmental awareness in these relationships. A quantitative research approach was employed using probability sampling. Data were collected through questionnaires distributed to SMEs in Denpasar City, resulting in 400 valid responses from 500 distributed questionnaires. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that green innovation, dynamic capabilities, and organizational culture positively and significantly influence business sustainability. These results indicate that environmentally oriented innovation, organizational adaptability, and sustainability-supportive culture contribute to enhancing SMEs’ economic, social, and environmental performance. Furthermore, managerial environmental awareness strengthens the relationship between green innovation and business sustainability. However, managerial environmental awareness weakens the effect of dynamic capabilities on business sustainability and does not significantly moderate the relationship between organizational culture and sustainability.

Factors influencing high school students' intentions to choose higher education institutions in Northern Vietnam

Vu Tat Dat — 2026-07-31

Choosing a higher education institution is a critical decision that shapes students' academic and career development. This study investigates the factors influencing high school students' intentions to choose higher education institutions in Northern Vietnam. A quantitative research design was employed using a questionnaire survey. A total of 612 valid responses were collected from Grade 12 students in public and private high schools. The data were analyzed using descriptive statistics, Cronbach's alpha, Exploratory Factor Analysis (EFA), and multiple linear regression with IBM SPSS Statistics 26.0. The findings indicate that six factors significantly influence students' intentions to choose higher education institutions. Among these, career opportunities exert the strongest influence, followed by institutional reputation, academic quality, social influence, tuition and financial support, and university communication. The regression model explains 62.4% of the variance in students' intentions, suggesting that university choice is a multidimensional decision-making process involving institutional, economic, and social considerations. The study contributes to the literature on higher education choice in Vietnam and provides practical implications for universities in designing recruitment strategies, enhancing institutional reputation, strengthening career-oriented programs, and improving communication with prospective students.

The impact of ESG integration in marketing activities on high school students' choice of higher education institutions in Northern Vietnam

Bui Ngoc Han — 2026-07-31

Environmental, Social, and Governance (ESG) has become an increasingly important strategic framework for higher education institutions seeking to strengthen sustainability, institutional reputation, and stakeholder engagement. This study investigates the impact of ESG integration in university marketing activities on high school students' choice of higher education institutions in Northern Vietnam. A quantitative research design was employed using a structured questionnaire administered to 300 Grade 12 students. The collected data were analyzed using descriptive statistics, Cronbach's Alpha, Exploratory Factor Analysis (EFA), and multiple linear regression with IBM SPSS Statistics 26.0. The findings demonstrate that all three ESG dimensions significantly and positively influence students' university choice. Among them, Social Integration exerts the strongest effect, followed by Governance Integration and Environmental Integration. The results suggest that prospective students increasingly value universities that communicate authentic commitments to social responsibility, transparent governance, and environmental sustainability. This study contributes to the growing literature on ESG and higher education marketing by providing empirical evidence from Vietnam and highlights ESG-oriented marketing as an effective strategy for enhancing institutional attractiveness and strengthening student recruitment.

Individual capacity as a moderator of the effects of budget emphasis, organizational commitment, and information asymmetry on budgetary slack

Putu Ika Sawitri — 2026-08-03

Budgetary slack remains a persistent concern in both private- and public-sector organizations because it may reduce the accuracy of resource allocation and weaken organizational accountability. Budgetary slack occurs when individuals involved in the budgeting process deliberately overestimate expenditures or underestimate revenues to make budget targets easier to achieve. Although such behavior may reduce the risk of failing to meet predetermined targets, it can also lead to inefficient resource allocation and distort performance evaluation. This study examines the effects of budget emphasis, organizational commitment, and information asymmetry on budgetary slack, as well as the moderating role of individual capacity in these relationships. The study was conducted at Udayana University and involved 72 Assistant Faculty Expenditure Treasurers and members of Faculty Planning Teams. Data were collected through a questionnaire survey and analyzed using partial least squares structural equation modeling (PLS-SEM). The results demonstrate that budget emphasis has a positive and significant effect on budgetary slack, indicating that stronger pressure to achieve budget targets increases the tendency to create slack. Organizational commitment has a negative and significant effect on budgetary slack, suggesting that employees with stronger organizational attachment are less likely to engage in opportunistic budgeting behavior.

The impact of artificial intelligence adoption on audit quality

Made Susmitha Kusuma Dewi — 2026-08-07

This study examines the effect of artificial intelligence (AI) adoption by public accounting firms on audit quality, as proxied by the disclosure of Key Audit Matters (KAMs) in independent auditors’ reports. The study is motivated by the implementation of Indonesian Auditing Standard SA 701 in 2022, the issuance of Financial Services Authority Regulation No. 30 of 2023, and the growing adoption of AI within the auditing profession. Agency theory is employed as the primary theoretical framework. The study population comprises all companies listed on the Indonesia Stock Exchange during the 2022–2024 period. Using purposive sampling, the study obtained 1,326 firm-year observations. Audit quality is measured using the number of words and the number of accounts disclosed in KAM paragraphs, which are standardized into a composite Z-score. The primary independent variable is AI adoption, measured using a dummy variable, while public accounting firm rotation, firm size, and industry sector are included as control variables. The data are analyzed using multiple linear regression after the classical assumption tests are satisfied. The results indicate that AI adoption has a positive and significant effect on audit quality.

Professional and organizational commitment in ethical decision-making

Putu Juna Sutrianta — 2026-08-08

This study examines the effects of professional commitment and organizational commitment on the ethical decision-making of tax consultants in Bali Province, with locus of control as a moderating variable. Ethical decision-making is a critical aspect of the tax consulting profession because it is closely associated with compliance with professional standards, integrity, and professional responsibility in providing taxation services. The increasing demands for professionalism and the complexity of tax regulations require tax consultants to maintain strong commitments to both their profession and organization in order to make ethically responsible decisions. A quantitative approach was employed using Moderated Regression Analysis (MRA). The study involved 393 tax consultants working in Bali Province, with data collected through questionnaires. Multiple linear regression and MRA were applied to examine the direct and moderating effects among the study variables. The results indicate that professional commitment has a positive and significant effect on ethical decision-making. Organizational commitment also has a positive and significant effect on ethical decision-making. Furthermore, locus of control strengthens the relationship between professional commitment and ethical decision-making, as well as the relationship between organizational commitment and ethical decision-making.

Becoming a professional auditor: Professional identity formation among junior auditors in Bali

Alfaningtyas Shulivien Mangile — 2026-08-13

Professional identity formation is a critical process for junior auditors, as it shapes how they understand their professional roles, values, and responsibilities during the early stages of their careers. Beyond acquiring technical auditing competencies, junior auditors are expected to internalize professional values such as integrity, objectivity, independence, competence, and professional responsibility through their workplace experiences. This study aims to understand and describe the lived experiences of junior auditors as they develop their professional identities in Bali, Indonesia. A qualitative research design employing Moustakas’s (1994) transcendental phenomenological approach was adopted. Five junior auditors working at public accounting firms in Bali participated in the study. The participants had less than two years of professional experience and had been directly involved in audit engagements. Data were collected through semi-structured in-depth interviews, observations, and documentation. Data analysis followed the stages of epoche, phenomenological reduction involving horizontalization and the identification of invariant constituents, imaginative variation, and the synthesis of meanings and essences. Trustworthiness was established through member checking, methodological triangulation, and peer debriefing.

Managerial Innovation and the Resilience of Agri-Food SMEs in Africa: An Analysis of the Role of Entrepreneurial Culture in Cameroon

Ben Boubakary — 2026-01-07

This study examines the influence of managerial innovation on the organizational resilience of agri-food small and medium-sized enterprises in Cameroon, with particular attention to the mediating role of entrepreneurial culture. Anchored in a context characterized by institutional instability, recurrent economic shocks, and heightened environmental uncertainty, the research develops and empirically tests an integrative conceptual model. Using survey data collected from 154 SME owner-managers, the study adopts a quantitative methodology and applies partial least squares structural equation modeling to assess both direct and indirect relationships among the constructs. The findings demonstrate that managerial innovation exerts a positive and significant effect on organizational resilience, enabling firms to better absorb, adapt to, and recover from systemic disruptions. Moreover, this relationship is partially mediated by entrepreneurial culture, suggesting that innovative managerial practices yield stronger resilience outcomes when embedded within organizational values that promote creativity, initiative, cooperation, and risk tolerance. By highlighting the interplay between managerial practices and culturally embedded resources, this study advances the literature on SME resilience in emerging economies, particularly within underexplored African contexts. From a practical standpoint, the results offer actionable insights for SME managers and policymakers seeking to design strategies that enhance adaptive capacity and long-term sustainability in volatile environments.