This study examines the impact of intensity of market competition and contextual variables (strategy and perceived environmental uncertainty) on manager’s use information by management accounting system (MAS) and unit business performance. Managers’ use of the information provided by management accounting systems (MAS) can help organizations to adopt and implement plans in response to their competitive environment. In this research MAS is viewed as a system which provides benchmarking and monitoring information in addition to internal and historical information traditionally generated by management accounting system. The responses of 102 marketing dan production managers, drawn from Indonesian manufacturing companies. Data analyzed by using partial least square (PLS). The results indicate that manager’s use information by management accounting system (SAM) acts as a mediator in the relationship between intensity of market competition and unit business performance. On the other hand, the relationship between strategy, perceived environmental uncertainty (PEU) and unit business performance through SAM are not significant.

Keywords: intensity of market competition, perceived environmental uncertainty (PEU), strategy, management accounting system (MAS), unit business performance.




Program Doktoral – Program Ilmu Akuntansi Fakultas Ekonomi Universitas Indonesia


The objective of this research is to understand the risk management factors which should be performed by the accounting firm in the process of client acceptance decision by considering of 3 risks factors: Client Risk, Audit Risk and Auditor’s Business Risk. The client risk was determined by management integrity valuation and client’s business risk, meanwhile, the audit risk was determined by the nature of the audit engagement, related parties transactions, client’s prior knowledge and experiences, and also from the deep understanding of auditors in regards to the error and fraud which is possible performed by the client. Furthermore, auditor’s business risk was determined by considering whether the client’s profiles is a public company, regulated industry or high profile company. In order to enhance this research, this paper also discusses how the audit fee and the role of specialist will impact to client’s acceptance decision. In conducting the model testing, this research was performed through a field of empirical testing in one of the accounting firm (archival data)

Key words : client acceptance, audit risk, auditor’s business risk, error and fraud risk, going public, audit fee recovery, risk management.

Data availability: Data used in this research are derived from a proprietary database.

Anteseden Dan Konsekuensi Burnout Pada Auditor: Pengembangan Terhadap Role Stress Model

Eka Murtiasri Politeknik Negeri Semarang
Prof. Dr. H. Imam Ghozali, M.Com, Akt Universitas Diponegoro


The objective of this study is to develop burnout construct in accounting occupation by showing that burnout is a key mediator for role stressors (role conflict, role ambiguity and role overload) on critical job outcomes (job satisfaction, turnover intention and job performance). Burnout is a well known phenomenon in psychology, characterized by three interrelated symptoms of emotional exhaustion, reduced personal accomplishment and depersonalization. This research is conducted to examine the direct and indirect effect of role stressor on behavioral job outcomes. The hypotheses are tested using Structural Equation Model (SEM) by Lisrel 8,54. Structural equation model is a multivariate analysis technique that is possible to test both measurement model and structural model to get all description about complexities model. Applying convenience sampling method, this study has collected 166 auditors from 46 audit firms in Indonesia. This study reveals two result. First, burnout condition will appear because the presence of role stressor and moreover will affect to behavioral job outcomes (except turnover intention). Second, burnout condition become a mediator on the relation between role overload and behavioral job outcomes but neither for role conflict and role ambiguity.

Keyword: burnout, role stressor, job outcomes and Structural Equation Model

Effect of Employee Stock Option Plans (ESOPS) To Performance and Firm Value: Empirical Study at JSX

Azwar Anwar and Zaki Baridwan

1.1 Background
Conflict of interests may be happen between owners or shareholders and management, between majority and minority shareholders, either between majority share-holders and bondholders. Conflict of interests may influence performance and firm value. One of many way to mitigate conflict of interests between owner and management is applied Employee Stock Ownership Plans. In 1950s’, a lawyer and investment banker, Louis Kelso said that capitalism system will be stronger if the employee joins the firms’ stock ownership. In United States, Employee Stock Ownership Plans (ESOPs) is a kind of pension program which was designed for achieve firms’ contribution by fund managing. It will do an investment to firm stock for employee. This was an employee stock ownership plans which was formulated by Kelso. In the great line, there are three models or tools from employee stock ownership participation in the firm, they are employee owner-ship by direct purchase plan, giving option to employee for purchasing firm stock (stock option plans) and fund management programs (trust) was designed for in-vestment. Otherwise, growing of stock ownership plans application in Indonesia fol-lowing by research of ESOPs Application Study Team for emitting in Indonesia (2002) which formed by BAPEPAM are: a) Before 1998, ESOP which is applied by companies in Indonesia, in the early growing, was forming a stock allocation when companies “go public”. In this case, we may call a “stock allocation scheme.” At the initial public offering, the employee get subside or lending which is guaranteed by company. b) In 1998 – now, the stock ownership growing about was advanced by employee, other side fixing allocation public offering 10%. Then, likely an option program, which nor before or other after company do public offering (go public), employee…...

The Influence of Earnings Management on Earnings Quality


This research objective is to examine empirically the influence of earnings management on earnings quality. The analysis units were 459 (153x3) manufacturing companies listed in the Jakarta Stock Exchange, started from the year 2002 up to 2004. Data used were archival ones. Sample selection was based on purposive sampling. Statistical method used to test the hypotheses was multiple regressions. The result of the research showed that: the influence of earnings management on earnings quality was 47.56%. It means that higher earnings management will be followed by higher earnings quality. Earnings management supports earnings responsive coefficient (ERC) that revealed on the fluctuation of market response as the symbol of market assurance towards financial statement especially on the earnings. The financial statement users assume that the reported earnings show managerial performance, through its responsive strength. The weak influence of earnings management on earnings quality means that the earnings management can not be detected by users, so that market will not give over response. It indicated that there is still chance for management to do the earnings management in the border of Standar Akuntansi Keuangan. Result of this study supported the results of Cho and Jung (1991), Subramanyam (1996), Pae (1999), Sankar (1999), Feltham and Pae (2000), Nelson et al. (2000), Scott (2000), Lobo and Zhou (2001), also Teixeira (2002).

Keywords: Earnings Management, Earnings Quality, Earnings Response Coefficient (ERC), and CAR.

Dynamics of Asymmetric Information and Capital Structure


I propose a model of financing decisions in an environment where asymmetric information changes through time. My goal is to determine the optimal sequence of securities as a function of the amount and dynamics of the asymmetric information advantage that insiders of the firm have with respect to outside investors. I identify a novel cost of debt that arises in this dynamic setting. Whereas in a one period model, debt is always preferred to equity because it is less sensitive to the private information managers have, with multiple overlapping investment projects, debt issues today make future security issues more sensitive to the degree of asymmetric information in the issuance period. I use the dispersion of analyst forecasts for different horizons to proxy for current and future asymmetric information and examine the financing of a large panel of US firms. I find that future adverse selection costs affect negatively the debt component of new external financing and positively the cash reserves of the firm. This evidence is consistent with the prediction of my model that companies try to minimize adverse selection costs intertemporally.


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