nep-sea New Economics Papers
on South East Asia
Issue of 2017‒10‒01
fifty-one papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Exchange Market Pressure and Monetary Policies in ASEAN5 By Ratnasari, Anggraeni; Widodo, Tri
  2. Border Communities Understanding on The Human Trafficking in Indonesia-Malaysia Border Region: Case Study in Sambas District, West Kalimantan By Muhammad Iqbal
  3. "The Relationships between Personal Values, Institutional Values and Affective Commitment (A Case of Graduate Students at A FaithBased Institution in Indonesia)" By Martinus Parnawa Putranta
  4. Housing and Well-being among the Vietnamese Elderly By Tuyen Quang Tran; Huong Vu Van
  5. Happiness in Higher Education Leader By Ninik Setiyowati
  6. "An Evaluation of Financial Stress for Islamic Banks in Indonesia Using a Bankometer Model" By Teguh Budiman
  7. Corruption and Firm Financial Performance: New Evidence from Vietnam By Huong Vu Van; Tuyen Quang Tran; Tuan Van Nguyen; Lim Steven
  8. "Factors Affecting Dividend Policy on Non-Financial Companies in Indonesia" By Novia Wijaya
  9. "Power Distance as A National Culture Observed in Organizational Scope" By Arief Noviarakhman Zagladi
  10. Green Practices in Northern Region Hotels of Malaysia By Noor Afza Amran
  11. "Optimization of Exclusive Economic Zone to Maintain and Protect Marine Natural Resources for the Welfare of the People of Indonesia" By Indien Winarwati
  12. "Individual Motives or Organisational Support? Exclusive Breastfeeding Behaviour Among Women Workers in Indonesia " By Riani Rachmawati
  13. Single Beta and Dual Beta Models: A Testing of CAPM on Condition of Market Overreactions By Ferikawita M. Sembiring
  14. "Value Relevance of Firms’ Reportable Segment Profit or Loss Reconciliation" By Nunung Nuryani
  15. Political Risk and Stock Returns in Indonesia By Paulina Yuritha Amtiran
  16. External and Internal Factors Influence to the Return on Equity and Risk Investment in Jakarta Islamic Index (JII) By Diana Dwi Astuti
  17. Functional income distribution and growth in Thailand: A post Keynesian econometric analysis By Bruno Jetin; Ozan Ekin Kurt
  18. Child Schooling and Child Work in the Presence of a Partial Education Subsidy By de Hoop, Jacobus; Friedman, Jed; Kandpal, Eeshani; Rosati, Furio C.
  19. "The Impact of Earthquake/Tsunami Threat on Land Prices in Padang, West Sumatera, Indonesia" By Budi Eko Soetjipto
  20. "FMCG Product Endorser Advertising Variable Affect the Purchase Decisions and Brand Loyalty in the Community in the Korwil Jember" By Nanik Hariyana
  21. Women, Climate Change and Economic Problems in the Family By Mientje Ratoe Oedjoe
  22. "Inter-Governmental Relation in City Bus Public Transportation Service in Surakarta in Indonesia" By Kristina Setyowati
  23. "Contribution of Work and Family Demands on Job Satisfaction Through Work-Family Conflict " By Endang Dhamayantie
  24. Insurance and Solidarity: Evidence from a Lab-in-the-Field Experiment in Cambodia By Lenel, Friederike; Steiner, Susan
  25. The donation response to natural disasters By Sarah Smith; Mark Ottoni-Wilhelm; Kimberley Scharf
  26. "Exploring Consumer Decision-making Processes Regarding the Adoption of Mobile Payments: A Qualitative Study" By Raden Agoeng Bhimasta
  27. "Green Purchase Behavior: The Role of Religiosity, Environmental Attitude, and Environmental Knowledge" By Julina
  28. East Asian Financial and Economic Development By Randall Morck; Bernard Yeung
  29. Impact of Companies' Financial Condition and Growth toward Acceptance of Going Concern Audit Opinion: Empirical Study at Company Listed in the Jakarta Islamic Index (JII) By Siti Maria Wardayati
  30. Multidimensional Group Identity and Redistributive Allocation: An Experimental Study By Fuhai HONG; Yohanes E. RIYANTO; Ruike ZHANG
  31. "Understanding AIS User Knowledge, AIS Quality, and Accounting Information Quality" By Yenni Carolina
  32. Micro, Small and Medium Enterprises (MSMEs) Coaching Program By Umiaty Hamzani
  33. Up in STEM, Down in Business: Changing College Major Decisions with the Great Recession By Liu, Shimeng; Sun, Weizeng; Winters, John V.
  34. Impact of Tri Hita Karana Culture on the Use of Accounting Information Systems and User Satisfaction as the Expression of Information System Success By I Gusti Ayu Nyoman Budiasih
  35. "The Role of Firm Strategy to Intervene the Influence of Corporate Social Performance on Corporate Financial Performance" By Bayu Aprillianto
  36. Ten Rules for Public Economic Policy By Yew-Kwang NG
  37. Wheat Agriculture and Family Ties By James B. Ang; Per G. Fredriksson
  38. "A Policy Framework to Support Household-Based Snack Food Industry in East Sumba Regency for Poverty Alleviation" By Ratih Dyah Kusumastuti
  39. Productivity Dynamics of Chinese Manufacturing Firms By Qu FENG; Zhifeng WANG; Guiying Laura WU
  40. "Dramaturgy Budget Policy Formulation: Intuitive Response of Politics and Power" By Syarifuddin
  41. "Is Financial Reward Still an Important Motivator for the Indonesian Multi-Generational Workforce?" By Yanki Hartijasti
  42. "Analysis of The Effect of Digital Word of Mouth (WOM) Marketing To Customer Purchase Decision" By Bunga Indah Bayunitri
  43. The Timing of Input Contributions, Deservingness, and Income Sharing Rules By Jichuan Zong; Te Bao; Jack Knetsch; Xiaowei Li
  44. "The Analysis of Community Empowerment Process through Poor Community Group (The Comparative Study of Pilot and Replication Areas)" By Izza Mafruhah
  45. Regret Aversion, Regret Neutrality, and Risk Aversion in Production By Xu GUO; Wing-Keung WONG
  46. Resistance to Change (RTC): A Taxonomical Perspective By Ahmad Syahmi Ahmad Fadzil
  47. Optimal Trading with Online Parameter Revisions By N. Baradel; B. Bouchard; N. m. Dang
  48. "Development Strategies to Improve the Ecotourism of Indigenous Villages" By Dyah Maya Nihayah
  49. "Human Capital Model as a Strategy for Development of Weaving Home Industry in Sambas District of West Kalimantan" By Jamaliah
  50. Uncovering The Deep Roots of Conflict By James B. Ang; Satyendra K. Gupta
  51. "Does Voluntary Tax Compliance Increase After Granting Tax Amnesty?" By I Made Sudarma

  1. By: Ratnasari, Anggraeni; Widodo, Tri
    Abstract: The aim of this research is to analyze the relationship between Exchange Market Pressure (EMP) and monetary policies in ASEAN5 (Indonesia, Malaysia, the Philippines, Thailand, and Singapore). This research applies Vector Error Correction Model (VECM) and monthly data for the periods January 2006 – December 2016 for individual country estimation. The results show that the ASEAN5 monetary authorities have responded the increase of EMP by contracting domestic credit in the non-crisis periods, and by providing more liquidity to the bank system in the crisis periods. In addition, in the case of ASEAN5 the increase in interest rate differential has reduced the EMP.
    Keywords: Exchange Market Pressure, Domestic Credit, Interest Rates Differential, Monetary Policy
    JEL: F31 F33 F37
    Date: 2017–09–22
  2. By: Muhammad Iqbal (Universitas Mercu Buana Jakarta, Indonesia. Author-2-Name: Yuherina Gusman Author-2-Workplace-Name: National Chengchi University Taipei)
    Abstract: "Objective – The aim of this study is to determine the understanding of people in the periphery of Indonesia-Malaysia border on safe migration and human trafficking. Methodology/Technique – This study used survey methodology with quantitative and qualitative approaches. The quantitative approach was used to determine the general data about the knowledge of the society – regarding the content and objectives of the campaign– as campaign target groups. Qualitative approach is also used to measure the Knowledge, Attitude, and Practice (KAP) of the informant. The population of this study are the head of the family or the breadwinner of the family who have productive age as family member(s). Data sampling technique were collected by using purposive sampling. This study was conducted in Sambas district, West Kalimantan Province. Findings –The results showed that among 150 respondents, only 68 people, or approximately 45.3% of them know the terminology of trafficking. The respondents were able acknowledged trafficking when it was replaced with the phrase “perdagangan orang” (trafficking in Bahasa, literally means the selling of people). There were 71 people or about 47% of respondents aware of what can be categorized as trafficking in persons, namely: fraud, use of violence, forgery, threatened with violence, abuse of power, confinement and kidnapping. Novelty – Based on the findings that migrant workers from the border areas, especially at region of Sambas a are vulnerable to human trafficking, due to their very limited knowledge about the crime of Trafficking in Persons and this will suggest for further educational development initiative by authorities in those areas."
    Keywords: Community; Human Trafficking; Indonesia-Malaysia Border; Safe Migration.
    JEL: I21 I25
    Date: 2017–07–20
  3. By: Martinus Parnawa Putranta (Universitas Atma Jaya Yogyakarta, Graduate School, Indonesia.)
    Abstract: "Objective – This research aimed at sketching personal values of graduate students at a faith-based institution in Indonesia. It also investigated the possible influence of these personal values and the students’ perceptions towards the values of their institution on their emotional attachment (affective commitment) to the institution. Methodology/Technique – A cross-sectional survey was employed as the primary method in the collection of the data. The fieldwork comprised the distribution of a self-administered questionnaire to potential respondents through direct contact. A convenience sampling was used to invite respondent participation. A total of 250 questionnaires were distributed of which 143 were usable, representing an overall response rate of 53 %. Findings – Results derived from the research suggested that the students, in general, embraced religious and intellectual values in their personal life. These dominant values seemed to be congruous with the demands of academic life in a faithbased educational institution as well as the demand of business worlds in the future. Likewise, a high level of affective commitment was exhibited by the students. Findings of the research also showed perceived institutional and personal values of students were more strongly predictors of students’ affective commitment than either one alone. Novelty – There has been little research on the relationships between personal values, institutional values and affective commitment in the Indonesian higher education institution contexts. Thus, this research fills this gap. "
    Keywords: Personal Values; Institutional Values; Affective Commitment; Graduate Students.
    JEL: I21 J28
    Date: 2017–07–10
  4. By: Tuyen Quang Tran (University of Economics and Business, Vietnam National University, Hanoi); Huong Vu Van (Academy of Finance, Hanoi)
    Abstract: This study examines the relationship between housing and subjective well-being among the Vietnamese elderly, using data from the 2011 Vietnam Ageing Survey. Our regression analysis reveals that permanent housing and better amenities are major factors contributing to housing satisfaction and life satisfaction. Notably, we find that housing satisfaction has a strongly positive impact on life satisfaction and the impact is stronger after controlling for endogeneity problems. Thus, the finding confirms that housing is an important life domain and as a result, housing satisfaction is a strong predictor of life-satisfaction judgments. The findings might suggest that people made a rational choice when they invested a large amount of resources in their houses with notable well-being gains. Also, another implication here is that policies and programs to assist poor families in moving out of temporary accommodation or improving housing amenities are likely to be beneficial in improving well-being for the poorelderly.
    Keywords: Aging, Elderly, Endogeneity, Housing satisfaction, Subjective well-being, Vietnam
    JEL: D4 D11 D6
    Date: 2017
  5. By: Ninik Setiyowati (Psychology Faculty, State University of Malang, Indonesia Author-2-Name: Irtaji Author-2-Workplace-Name: Psychology Faculty, State University of Malang, Indonesia)
    Abstract: "Objective – This study examines Happiness Leaders in the higher education context. Methodology/Technique – Using Positive Psychology perspective, data were collected through an in-depth interview with 30 Indonesian heads of Department in some faculties of Higher Education Malang from December 2016 to February 2017. Respondents were selected using non-probability purposive sampling technique. Findings – The results of this study indicate that the respondents focused their happiness factor more on relationship (R) and meaningfulness (M), but less on positive emotion (P), engagement (E) and accomplishment (A). Almost all respondents agreed that good relationship ensured a sense of safety and comfort and helped gain social support, especially when they were in Bad Condition. Otherwise, most respondents tended to lack focus in setting targets and did not enjoy through the process of achieving the target. Responsibilities were exercised only to meet the demand of the institution. Novelty – This research developed five aspects: positive emotion, engagement, relationship, meaningfulness and accomplishment (PERMA) as a key question and tested it in the context of Indonesia."
    Keywords: Happiness; PERMA; Qualitative; Positive Psychology.
    JEL: I21 J28 M54
    Date: 2017–06–22
  6. By: Teguh Budiman (Faculty of Economics & Business, Universitas Padjadjaran, Indonesia. Author-2-Name: Aldrin Herwany Author-2-Workplace-Name: Faculty of Economics & Business, Universitas Padjadjaran, Indonesia. Author-3-Name: Farida Titik Kristanti Author-3-Workplace-Name: Faculty of Economics & Business, Telkom University, Bandung, Indonesia.)
    Abstract: "Objective – In recent years, the market share of Indonesian Islamic banks has declined. The purpose of this study is to assess the financial distress being experienced by Islamic banks in Indonesia by using the Bankometer's score. This study will also uncover any differences between listed and non-listed Islamic banks using the Bankometer model. The Bankometer model is a model developed by the IMF (2000) to measure the financial soundness of banks. Methodology/Technique – The study uses data obtained between 2011 and 2015 using a purposive sampling model. The sample consists of 11 Islamic Banks in Indonesia. Findings – The results show that all Islamic banks are categorized as very healthy throughout the period of the research. Using and independent t-test, it is shown that there are differences between non-performing loans from listed and nonlisted Islamic banks. However, there are no significant differences between Variable Capital Asset, Equity Asset, Cost to Income and Loan to Asset. Novelty – The study uses Bankometer's score to evaluate financial distress."
    Keywords: Bankometer Model; Financial Distress; Islamic Banks.
    JEL: E44 F14 G01
    Date: 2017–06–18
  7. By: Huong Vu Van (Academy of Finance, Hanoi); Tuyen Quang Tran (University of Economics and Business, Vietnam National University, Hanoi); Tuan Van Nguyen (University of Dalat, Vietnam); Lim Steven (University of Waikato, New Zealand)
    Abstract: Using a nationwide survey of provincial institutional quality and a sample of private manufacturing small and medium scale enterprises (the SMEs), this paper is the first to examine the effects of corruption on financial performance of the Vietnamese private SMEs. Interestingly, contrary to previous findings, the study finds that corruption as measured by a dummy variable does not affect firms’ financial performance after controlling for heterogeneity, simultaneity and dynamic endogeneity. However, we find that the intensity of bribe and many types of corruption have negative impacts on firms’ financial performance. Thus, a typical approach using only a dummy variable of bribe might not adequately evaluate the impact of bribe intensity or even ignored negative impacts of some types of bribe on firms’ financial performance. Our findings imply that anti-corruption measures are necessary to the development of the Vietnamese private SMEs.
    Keywords: Corruption; financial performance; SMEs; institutional quality; Vietnam
    Date: 2017
  8. By: Novia Wijaya (Trisakti School of Management, Indonesia. Author-2-Name: Agathon Felix Author-2-Workplace-Name: Trisakti School of Management, Indonesia.)
    Abstract: "Objective – The objective of this study is to obtain empirical evidence and analyse the factors that affect the dividend policy of non-financial firms listed on the Indonesian Stock Exchange. The factors studied include liquidity, leverage, growth, price/earnings, size, earnings per share, price to book ratio, ownership, age of the firm, floating rate, profitability, and free cash flow. Methodology/Technique – The sampling method used in this study is purposive sampling, in which the samples are taken based on suitable characteristics of the population to generate representative samples. The total number of samples in this study are 105 non-financial firms listed on the Indonesian Stock Exchange between 2011 and 2015. The hypothesis is tested by using multiple regression analysis. Findings – The results of this study show that earnings per share, price to book ratio, and floating rate affect the dividends policy while liquidity, leverage, growth, price/earnings, size, ownership, age of the firm, profitability, and free cash flow has no effect on dividend policy. Novelty – The study findings contribute the companies to establish an appropriate dividend policy to satisfy the interest of both parties that is companies future growth and its investors."
    Keywords: Dividend Policy; Price to Book Ratio; Ownership; Age of the Firm; Floating Rate; Free Cash Flow.
    JEL: G32 G35 M41
    Date: 2017–07–20
  9. By: Arief Noviarakhman Zagladi (Pancasetia School of Economics, Indonesia)
    Abstract: "Objective – Cultural factors have significant roles in creating behavior in an organization. This research claims that national culture like power distance that is usually measured in a national scope actually can have a better result when it is measured in the organizational scope. The goal of this research is to find out the level of power distance among private lecturers in Banjarmasin, Indonesia, and compare it to Hofstede’s power distance for the whole country. Methodology/Technique – This research uses explanatory research that tries to understand the degree of power distance among private university lecturers in Banjarmasin. The populations used were all lecturers in private colleges in Banjarmasin City. The samples used were 86 lecturers who have become a lecturer for at least 2 years. The analysis is done through a descriptive quantitative method measuring the level of power distance among lecturers in Banjarmasin and with confirmatory factor analysis (CFA) to understand which indicators that have the strongest influence in creating power distance culture among lecturers in Banjarmasin. Findings – The results of the research show that power distance culture is low among the lecturers in Banjarmasin City, with indicator “The level of authority used by the leader” as the lowest factor. The result also finds that the indicator “subordinates Exclusion in decision-making” as the strongest indicator to form power distance culture. Novelty – This research conducted in the context of Indonesia using primary data."
    Keywords: National culture; Organizational culture; Power distance; Hofstede; Banjarmasin City.
    JEL: M50 M54
    Date: 2017–07–10
  10. By: Noor Afza Amran (Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Malaysia. Author-2-Name: Natrah Saad Author-2-Workplace-Name: Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Malaysia. Author-3-Name: Norhani Aripin Author-3-Workplace-Name: Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Malaysia.)
    Abstract: "Objective – The objective of this paper is to examine green practices of hotels located in Northern region of Malaysia. Methodology/Technique – The sample of the study is 115 hotels in Penang, Kedah and Perlis. Questionnaires were personally delivered to each respective hotel. The response rate for the survey is 43%. Findings – Findings from the survey indicate that hoteliers have started to show a positive sign towards adoption of green practices such as usage of power saving bulbs, water conservation, and recycling management program. Novelty – The study urges more campaigns on awareness and the benefits of green practices. And, it will indirectly educate the hoteliers and society at large on the importance of saving the Mother Nature. "
    Keywords: Green Practices; Environment; Recycle; Hotels; Malaysia.
    JEL: Q50 Q57
    Date: 2017–06–28
  11. By: Indien Winarwati (Faculty of Law, Trunojoyo Madura University, Indonesia.)
    Abstract: "Objective – The purpose of the present study is to determine Indonesia’s efforts to maintain and protect the fishery resources. Methodology/Technique – The present study used the normative juridical research method by researching the literature available. Findings – As stipulated in UNCLOS, the coastal states have rights, jurisdiction and obligations in the exclusive economic zone. Those rights are the rights to exploration and exploitation, conservation and management of natural resources, both living and non-living, of its waters. Novelty – The present study employed the law approach by examining all laws and regulations relating to the legal issues studied. The study suggests that Indonesia can implement and provide legal certainty with regard to maintaining and protecting marine natural (fishery) resources to support the life of the world community, especially the people of Indonesia to achieve social welfare."
    Keywords: Indonesian Sea; Exclusive Economic Zone; Indonesia; Protection; Marine Natural Resources.
    JEL: K32 Q34
    Date: 2017–07–14
  12. By: Riani Rachmawati (Faculty of Economics and Business, Universitas Indonesia, Indonesia Author-2-Name: Mega Indah Cinderakasih Author-2-Workplace-Name: Faculty of Economics Universitas Indonesia)
    Abstract: "Objective – This study aims to measure the knowledge and attitudes towards exclusive breastfeeding among women workers in Indonesia as well as their expectation to the company’s supports to enable the practice. Methodology/Technique – This research is cross sectional and was conducted in three manufacturing companies located in West Java, which the percentage of exclusive breastfeeding only reached 35.3% compared to the national percentage which reached 55.7 %. Research was conducted in HF, CI and CMW involving 290 respondents. Findings – The results showed that respondents do not understand the definition of exclusive breastfeeding. In addition, the main supports expected by women workers to be provided by the company include: longer maternity leave and designated nursery room with sufficient facilities. Novelty – This research suggests that companies should have a thorough policy and facilities for working mothers to enable them giving exclusive breastfeeding for their babies. As the number of women entering the workforce is steadily increasing, this kind of policy would be a necessary benefit provided by the companies. "
    Keywords: "Exclusive breastfeeding; Women workers; Manufacturing; Theory of Planned Behaviour; Perceived Organizational Support, Indonesia."
    JEL: J13 J16 J40
    Date: 2017–07–17
  13. By: Ferikawita M. Sembiring (Jenderal Achmad Yani University, Indonesia. Author-2-Name: Sulaeman Rahman Author-2-Workplace-Name: Padjadjaran University, Bandung Indonesia. Author-3-Name: Nury Effendi Author-3-Workplace-Name: Padjadjaran University, Bandung Indonesia. Author-4-Name: Rachmat Sudarsono Author-4-Workplace-Name: Padjadjaran University, Bandung Indonesia.)
    Abstract: "Objective – A previous study conducted by the same authors found that the conditions of market overreaction occurred in Indonesia and the market factor in CAPM, or a single beta, is able to explain the portfolio returns. As a continuation of that study, we now use the concept of conditional CAPM, or a dual beta, to test whether the performance of the dual beta can outperform the single beta. Methodology/Technique – The research uses the stocks of non-financial sector company on the Indonesian Stock Exchange during the period between July 2005 and December 2015, which have been divided into two portfolios; the winner and the loser. The conditional CAPM is applied by separating the market into upstream markets and downstream markets, so the dual beta model can be formulated. Findings – The results are consistent with the findings of Pettengill et al. (1995). The results of a single beta test do not comply with the conditions required in the CAPM model and this can be corrected through conditional beta testing that includes the testing on the up beta, down beta, and the dual beta. Novelty – The dual beta model can explain the returns of the portfolio in accordance with the expected results in CAPM testing. The explanation by using the dual beta model is more accurate and more successful than the single beta model."
    Keywords: Conditional CAPM, Dual Beta, Loser Portfolio, Winner Portfolio.
    JEL: J11 G31
    Date: 2017–06–21
  14. By: Nunung Nuryani (Master of Accounting Program, Institut Bisnis dan Informatika Kwik Kian Gie, Indonesia. Author-2-Name: Tan Thing Heng Author-2-Workplace-Name: Faculty of ICT, Universitas Multimedia Nusantara, Tangerang, Indonesia Author-3-Name: Phan Ferah Author-3-Workplace-Name: Institut Bisnis dan Informatika Kwik Kian Gie, Jakarta, Indonesia)
    Abstract: "Objective – The International Financial Reporting Standards (IFRS) No.8 adopted in Indonesian GAAP (Statement No. 5, 2012) requires a company to provide a reconciliation of the total of the reportable segments’ profit or loss of the firm’s profit or loss. The objective of this standard is to improve the value relevance of information in the financial statement. This study aims to investigate the value relevance of the segment reconciliation and the determinants of segment income dissimilarity, i.e. agency cost, proprietary cost, and audit quality. Methodology/Technique – Data used in this study was a secondary data obtained from 142 manufacturing companies listed in Indonesia Stock Exchange (IDX) for the period 2009 to 2013. Purposive sampling method yielded 59 firms. Two research models were used to test proposed hypotheses. Findings – The results show reconciliation of total of segments’ profit or loss of the firms’ profit or loss positively affects the market value of equity; this means segments’ reconciliation disclosure has value relevance for the investment decisions. In addition, this paper provides evidence that audit quality negatively affects the segment income dissimilarity, while agency cost and proprietary cost have no effect. This is consistent with hypothesis that firms audited by the Big Four tend to avoid disclosure of dissimilarity between firms profit or loss and segment profit or loss. Novelty – Our findings show that audit quality (Big 4 accounting firms) plays an important role in reducing dissimilarity between the sum of segment profit and firm profit (segment profit dissimilarity)"
    Keywords: Segment Reconciliation; Value Relevance; Agency Cost; Proprietary Cost; Audit Quality.
    JEL: M41 M42
    Date: 2017–06–23
  15. By: Paulina Yuritha Amtiran (Economic and Business Faculty, Universitas Nusa Cendana, Indonesia Author-2-Name: Rina Indiastuti Author-2-Workplace-Name: Universitas Padjadjaran, Bandung, Indonesia)
    Abstract: "Objective – The research aims to find the relationship between the political risk with stock returns. Methodology/Technique – Using the purposive sampling, secondary data on 30 companies listed in Indonesia Stock Exchange (BEI) of the year 2007-2015. Analysis technique used is weighted least square regression Findings – The results of study Political risks significantly positively associated with stock returns. These results imply a change from the shock of political risk will affect cost of capital of the company increased, causing the company's stock price will go up which in the end impact on improving the company's stock returns obtained. Novelty – The study implies Shock due to the change of political risk has a direct impact on the company's financial condition primarily of the cost of capital companies because it involves policy and investment decisions are made in Indonesia."
    Keywords: BEI; Market Capitalization; Market Returns; Political Risk; Stock Returns.
    JEL: G30 G32
    Date: 2017–06–21
  16. By: Diana Dwi Astuti (STIE Mandala, Jember, Indonesia)
    Abstract: "Objective – This study aims to analyze the direct influence of external factors (inflation, foreign exchange rates, interest rate of Bank Indonesia) and internal (capital structure, liquidity) on Return On Equity (ROE) in companies that went public in Jakarta Islamic Index, analyze the indirect influence of external and internal factors on the risk of investing in companies that go public in Jakarta Islamic Index, analyze the effect of ROE on the risk investment in companies that go public in Jakarta Islamic Index. Methodology/Technique – The sample used 10 companies using purposive sampling. Analysis tools using path analysis. Findings – Results showed inflation and exchange rates (foreign exchange rates / USD) no significant effect on ROE and Investment Risk. BI rate has no effect on ROE but significant effect on the risk of investment. Capital structure and liquidity significantly influence the ROE but had no effect on the risk of investment. ROE has no effect on the risk of investment. Novelty – Results of research it pays advisable for investors and prospective investors pay attention to internal factors (capital structure, liquidity and other fundamental factors) companies due to internal factors will affect the profitability of Integration."
    Keywords: Inflation; Exchange Rates; Interest Rates; Capital Structure; Liquidity; ROE; Investment Risk.
    JEL: L16 M21 M41
    Date: 2017–06–23
  17. By: Bruno Jetin (Université Paris 13); Ozan Ekin Kurt (Université Paris 13)
    Abstract: The aim of this article is to analyze the effect of the income distribution between labor and capital on the growth performance of Thailand from a post Keynesian view. It rests on the theoretical model of Bhaduri and Marglin (1990) to see if an increase in the labor income share has a sufficient positive effect on consumption to offset a negative effect on investment and export demand. In order to investigate the question empirically we adopt and develop the approach of Stockhammer, Onaran, and Ederer (2009). Several measures of the labor income share are calculated to take into account the fact that wage labor represents only half of the total labor force and check the robustness of our results. We also introduce a new treatment of external trade to better integrate the price competitiveness of Thailand. The econometric investigation shows that the growth regime is profit-led over the period 1970–2011, which shows that rebalancing the Thai economy will be difficult and requires an overall change of strategy going beyond a simple prolabor policy.
    Keywords: Development, functional distribution of income, growth, post Keynesian economics, Thailand
    Date: 2016
  18. By: de Hoop, Jacobus (UNICEF Office of Research, Innocenti); Friedman, Jed (World Bank); Kandpal, Eeshani (World Bank); Rosati, Furio C. (University of Rome Tor Vergata)
    Abstract: Could a partial subsidy for child education increase children's participation in paid work? In contrast to much of the theoretical and empirical child labor literature, this paper shows that child work and school participation can be complements under certain conditions. Using data from the randomized evaluation of a conditional cash transfer program in the Philippines, the analysis finds that some children, who were in neither school nor work before the program, increased participation in school and work-for-pay after the program. Earlier cash transfer programs, notably those in Mexico, Brazil, and Ecuador, increased school attendance while reducing child labor. Those programs fully offset schooling costs, while the transfers under the Philippine transfers fall short of the full costs of schooling for a typical child. As a result, some beneficiary children from poor Philippine households increased work to support their schooling. The additional earnings from this work represent a substantive share of the shortfall in the schooling costs net of transfer. The paper rules out several potential alternative explanations for the increase in child labor, including changes in household productive activities, adult labor supply, and household expenditure patterns that, in principle, can arise after a cash transfer and may also affect the supply of or demand for child labor.
    Keywords: cash transfers, child labor, education, education subsidy, Philippines
    JEL: C93 I21 J22 O22
    Date: 2017–09
  19. By: Budi Eko Soetjipto (Universitas Negeri Malang, Indonesia. Author-2-Name: Indra Maipita Author-2-Workplace-Name: Faculty of Economics, State University of Medan, Indonesia Author-3-Name: Idris Author-3-Workplace-Name: Faculty of Economics, State University of Padang, Indonesia Author-4-Name: Haikal Rahman Author-4-Workplace-Name: Faculty of Economics, State University of Medan, Indonesia)
    Abstract: "Objective – In this study, the impact of earthquake/tsunami threat on land prices is measured using the Hedonic Price Method (HPM). The location of the research is in Padang, West Sumatra. The subject of study is land owners who purchased their land later than September 30, 2009. Methodology/Technique – The linear model and Double-log model with Ordinary Least Square (OLS) are used to estimate variable. Findings – The findings reveal that the Linear model have five variables with a significant effect. Those variables are: (1) Environmental quality, (2) Distance to the seafront, (3) Distance to educational facilities, (4) Availability of clean water and (5) Position of the land, whereas the double-log model also have 5 variables: (1) Distance to the seafront, (2) Distance to educational facilities, (3) Access to evacuation routes, (4) Availability of clean water and (5) Position of the land. Novelty – The possibility of earthquake and tsunami threat in the future has raised a new parameter associated with the environment in the city of Padang, namely land distance towards the seafront. The findings of the study contribute the understanding in land pricing."
    Keywords: Earthquake/Tsunami; Environmental Quality; Land Prices; Padang.
    JEL: Q24 Q54
    Date: 2017–06–29
  20. By: Nanik Hariyana (Faculty Economy and Business, University of Jember, Indonesia. Author-2-Name: Raden Andi Sularso Author-2-Workplace-Name: Faculty of Economic & Bussiness University of Jember, Indonesia Author-3-Name: Diana Sulianti K Tobing Author-3-Workplace-Name: Faculty of Economic & Bussiness University of Jember, Indonesia)
    Abstract: "Objective – The purpose of this study to determine Endorsers of FMCG effect on Buying Decision and Brand Loyalty in Society in Korwil Jember. Phenomena of this study is the purchasing power of people in the district of Korwil Jember decisions. The purchase and brand loyalty FMCG products with their advertising endorser in television. Methodology/Technique – This study used purposive sampling to gather information in the district of Situbondo, with a sample of 126 respondents and data measured with SEM (Structural Equation Modelling). Findings – By knowing the quality of the product, usually bring an attitude like the product so that brand loyalty will be achieved. If a customer has made a purchase decision, and loyal to a brand, it is likely that consumers would recommend the product to others. Novelty – The study tests the Endorser effect in the context of Indonesia with original data."
    Keywords: Advertising Endorser; FMCG Products; Purchase Decisions and Brand Loyalty
    JEL: M31 M37
    Date: 2017–06–19
  21. By: Mientje Ratoe Oedjoe (Faculty of Teacher & Scien Education, Nusa Cendana University, Indonesia Author-2-Name: Rolland Epafras Fanggidae Author-2-Workplace-Name: Faculty of Teacher & Scien Education, Nusa Cendana University, Indonesia.)
    Abstract: "Objective – The role of women in Indonesia, particularly in East Nusa Tenggara in domestic activity very dominant. This study focuses on the efforts made by women cope with the impacts of climate change. Methodology/Technique – Methods used are mixture of quantitative and qualitative research. While the location of the research conducted in Kupang regency, East Nusa Tenggara. Findings – The study of the results showed that, women are still playing a dominant role in getting a sufficient supply of staple foods and meal replacements basic needs and outside work done in the event of extreme climatic impacts on the ocean. Novelty – This research looks at the optimal empowerment of women's role in addressing climate change and learn to know how the role of women in the economic field in the face of climate change impacts."
    JEL: J16 Q10 Q50
    Date: 2017–07–17
  22. By: Kristina Setyowati (Social and Political Sciences Faculty, Sebelas Maret University, Indonesia. Author-2-Name: Tya Astriyani Author-2-Workplace-Name: Social and Political Sciences Faculty, Sebelas Maret University, Indonesia.)
    Abstract: "Objective – The objective of research was to determine the intergovernmental relation in public transport services. It also aims to identify the inter-governmental Relation in the service of Batik Solo Trans viewed from the cooperation type, the cooperation process and examined using three aspects: sharing of benefits, sharing of burden and sharing of experience. Methodology/Technique – The research method was qualitative descriptive one with interview and documentation as the technique of collecting data. The sampling technique used was purposive sampling on. Data validation was carried out using method triangulation and data analysis using an interactive data analysis. Findings – Considering the result of research, it could be found that the type of inter- Governmental Relation in BST Service was the collective agreement without certain pact document. The cooperation process was done in coordinative manner. The cooperation showed the existence of benefit sharing between the areas involved. Besides, cooperation was also used as the media of sharing experiences, but it didn’t show the distribution of responsibility. Novelty – The study recommends that there should be an agreement document specifically governing the intergovernmental cooperation in BST service, enabling the sharing of burdens so that the cooperation can be proposed with the distribution of responsibility between the areas involved."
    Keywords: Inter-Regional Relation; Cooperation; Public Transport Service, City Bus.
    JEL: O18 O31
    Date: 2017–07–18
  23. By: Endang Dhamayantie (Faculty of Economics and Business, Tanjungpura University, Indonesia.)
    Abstract: "Objective – Work environment and family roles are two of the most important life domains; they are different but interconnected with each other. Each role requires energy and responsibilities to be handled effectively. Therefore, it is necessary to consider the experience of work-family interaction in this process. The purpose of this study is to develop an understanding of the effect of work and family demands on job satisfaction which is mediated by the experience in work-family interaction, in particular the work-family conflict. Methodology/Technique – Self-report questionnaires were given to permanent employees who work in non-banking financial sectors in Kalimantan Barat, Indonesia. They were selected by purposive sampling and 100 valid questionnaires were collected. Findings – The path analysis results show that work demands have a significant positive effect on work-family conflict, while family demands have no significant effect on work-family conflict, and work-family conflict has a significant negative effect on job satisfaction. Novelty – Although it is believed that work and family demands contribute to outcomes such as job satisfaction, it is unclear how this occurs. It is recommended that organizations need to manage work-related stressors through familyfriendly policies and programs that enable work and family domains to integrate with each other, as well as developing an organizational culture that supports the positive interaction of work and family. "
    Keywords: Work Demands; Family Demands; Work-Family Conflict; Job Satisfaction.
    JEL: J12 J23 J28
    Date: 2017–07–11
  24. By: Lenel, Friederike (Leibniz University of Hannover); Steiner, Susan (Leibniz University of Hannover)
    Abstract: This paper investigates the crowding out of informal support among peers by the introduction of formal insurance. We show that the availability of insurance changes people's intrinsic motivation to support others. We report results from a lab-in-the-field experiment conducted in Cambodia. Half of the subjects face the risk to lose a large proportion of their endowment. It is varied whether they can purchase an insurance before the loss is determined. The other half of the subjects can transfer part of their endowment to those who lose. We find that significantly lower transfers are provided to subjects who had the option to purchase insurance but did not use this option than to subjects who did not have the insurance option available. We show that the reduction in transfers is not affected by whether subjects were informed about the possibility of informal support when making their insurance decision. Our findings indicate that the extent of crowding out may be larger than previously thought, because insurance does not only change economic incentives but also affects intrinsic motivations.
    Keywords: insurance, informal support, crowding-out, social preferences, Cambodia
    JEL: D03 C91 O12
    Date: 2017–09
  25. By: Sarah Smith; Mark Ottoni-Wilhelm; Kimberley Scharf
    Abstract: Natural disasters, such as the 2004 East Asian Tsunami, attract a high level of donations. Previous literature has shown that the scale of the disaster is important in driving the aid response, but there are inconsistent findings on whether the number killed or the number affected matters more. In this paper we discuss a number of issues in linking measures of the scale of a disaster to the aid response, particularly taking account of outliers in both scale of disaster and aid. We show that a log-specification is preferred and that this specification can reconcile findings based on different datasets. Both the number killed and the number affected matter equally for whether aid is given; the number killed is more strongly related to the magnitude of the aid response. We also present new evidence confirming the importance of publicity for disasters, focusing on appeals.
    Date: 2017–09–22
  26. By: Raden Agoeng Bhimasta (Faculty of Economics and Business, Universitas Atma Jaya Yogyakarta, Indonesia. Author-2-Name: Budi Suprapto Author-2-Workplace-Name: Faculty of Economics and Business, Universitas Atma Jaya Yogyakarta, Indonesia.)
    Abstract: "Objective – The main objective of this study is to gain deeper understanding on the decision-making process of how and why consumers are adopting mobile payment in Indonesia. Methodology/Technique – The study was a qualitative study that included an experiment to the research design. A total of six young people were voluntarily participated in the study. Our finding provides explanation of salient factors that might drive or hinder the adoption in five different stages of innovation-diffusion process. Findings – Overall, our finding indicated that the attractiveness of rewards was an intriguing factor that greatly influences consumer decision whether to use mobile payment or not. Novelty – The uniqueness of our study lies on the use of innovative approaches to address the mobile payment adoption issues from different perspective than prior literatures."
    Keywords: "Consumers’ Decision-Making; Financial Technology; Innovation-Decision Process; Mobile Payment Adoption; Technology Adoption."
    JEL: M15 M31
    Date: 2017–06–28
  27. By: Julina (Faculty of Economic and Social Sciences, UIN Suska Riau, Indonesia. Author-2-Name: Dwi Kartini Author-2-Workplace-Name: Universitas Padjadjaran,Indonesia. Author-3-Name: Popy Rufaidah Author-3-Workplace-Name: Universitas Padjadjaran,Indonesia. Author-4-Name: Martha Fani Cahyandito Author-4-Workplace-Name: Universitas Padjadjaran,Indonesia.)
    Abstract: "Objective – This study attempts to determine the effect of religiosity, environmental attitudes, and environmental knowledge towards green purchase behavior. Methodology/Technique – Data were collected by distributing questionnaire to 14 shopping centers in Pekanbaru City during April - September 2016. Pekanbaru city is one of the provincial capital in Indonesia which experienced many environmental problems. A total of 421 eligible respondents participated in this study. Data were analyzed using structural equation modeling. Findings – The results found that the effect of religiosity, environmental knowledge, and attitude toward green purchase behavior are significant. These three variables explain the green purchase behavior at 67.6%. Besides it also found that religiosity and environmental knowledge have the positive and meaningful impact on environmental attitudes. Therefore, it can be concluded that these two variables affect the green purchase behavior through environmental attitudes. Novelty – The model built in this study tried to integrate the spiritual aspect that has not been touched by previous researchers. The results of this study open up opportunities for further research to further improve both aspects of modeling in combination with other variables as well as the use of statistical analysis"
    Keywords: Religiosity; Environmental Attitude; Environmental Knowledge; Green Purchase Behavior.
    JEL: I21 Q56 Q57
    Date: 2017–07–21
  28. By: Randall Morck; Bernard Yeung
    Abstract: Japan, an isolated, backward country in the 1860s, industrialized rapidly to become a major industrial power by the 1930s. South Korea, among the world’s poorest countries in the 1960s, joined the ranks of First World economies in little over a single generation. China now seems poised to follow a similar trajectory. All three cases highlight the importance of marginalized traditional elites, intensive early investment in education, a degree of economic openness, free markets, equity financing, early-stage coordination of firms in diverse industries via arrangements such as business groups, and political institutions capable of curbing the power of families grown wealthy in early-stage rapid development to make way for prosperity sustained by efficient resource allocation to high-productivity firms.
    JEL: G0 N25 N35 O1 O16 O53 P1 P11 P5
    Date: 2017–09
  29. By: Siti Maria Wardayati (Faculty of Economics and Business, University of Jember, Indonesia. Author-2-Name: Agung Budi Sulistiyo Author-2-Workplace-Name: Faculty of Economics and Business, University of Jember, Indonesia. Author-3-Name: Rahman El Junusi Author-3-Workplace-Name: Walisongo Islamic Univercsity of Semarang, Indonesia Author-4-Name: Alamsyah Author-4-Workplace-Name: Faculty of Economics and Business, University of Mataram, Indonesia Author-5-Name: Labitsta Untsa Afnany Author-5-Workplace-Name: Faculty of Economics and Business, University of Jember, Indonesia.)
    Abstract: "Objective – This study aims to explain the companies' financial condition and growth which is affecting going concern audit opinion of the companies listed in the Jakarta Islamic Index (JII). Financial condition is examined through the information changes in working capital to total assets, retained earnings to total assets, earnings before interest and taxes to total assets, book value of equity to book value of total liabilities, sales to total assets. Methodology/Technique – This study applies qualitative research with a description method and the populations used are all companies listed in JII period 2014-2015. Findings – The results of the study explained that the companies' financial conditions affect going concern audit opinion. The worse the financial condition of the company, the greater the probability of companies to receive going concern audit opinion, and vice versa. An auditor will give a going concern audit opinion on companies that are experiencing financial difficulties. The growth of the companies affects going concern audit opinion. If the sales growth is negative, the continuity of the company will be unstable, because the company will be difficult to make profits. It can cause the financial conditions of the company experience difficulties, so that the company will receive going concern audit opinion. Novelty – The study contributes literature with its empirical findings in the context of Indonesia."
    Keywords: Working Capital to Total Assets; Retained Earnings to Total Assets; Earnings Before Interest and Taxes to Total Assets; Book Value of Equity to Book Value of Total Liabilities; Sales to Total Assets and the Company's Growth.
    JEL: M41 M42
    Date: 2017–07–08
  30. By: Fuhai HONG (Division of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.); Yohanes E. RIYANTO (Division of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.); Ruike ZHANG (Division of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.)
    Abstract: Social identity is embedded in social structures, generated by various social processes, and has multiple dimensions. We report ?ndings from a laboratory experiment eliciting two-dimensional social identities: a horizontal identity determined either randomly or by preferences and a vertical identity de?ned by income status and determined either by luck or performance. We also vary income gaps between vertical identity groups. Participants make redistributive allocation decisions between two others di¤ering in identity attributes. We ?nd robust evidence of in-group favoritism and that both the identity distance between the allocator and the in-group recipient and income gaps in?uence the degree of in-group favoritism.
    Keywords: Social Identities, Horizontal and Vertical Identity Attributes, In-group Favoritism, Income Inequality
    JEL: C91 D03
    Date: 2016–12
  31. By: Yenni Carolina (Maranatha Christian University, Bandung, Indonesia)
    Abstract: "Objective – Nowadays, computer-based systems are used more to create, store and transfer information. Reliable accounting information will have impact on decision making. In other words, the success of an organization will depend heavily on the accounting information quality owned. Accounting information is generated from accounting information systems. The objective of this research is to know the extent if the knowledge influence of accounting information users towards implementation quality of accounting information systems and implication towards accounting information quality. Methodology/Technique – Instrument of data collection is using enclosed questionnaire filled by managers/chief of accounting and finance as well as branch chief of 63 insurance companies in Indonesia. SEM-PLS is used as a tool for processing data and hypothesis testing. Findings – The result of this research obtained empirical evidence that quality of accounting information systems implementation is influenced by knowledge of accounting information systems use and quality of accounting information influenced by quality of accounting information systems implementation. Novelty – The result of this study is consistent with theories and strengthens previous research results. The result contributes to the development of science, especially in the field of AIS."
    Keywords: AIS; User Knowledge; Accounting Information.
    JEL: M15 M41
    Date: 2017–07–13
  32. By: Umiaty Hamzani (Faculty of Economics and Business, Universitas Tanjungpura, Indonesia. Author-2-Name: Dinarjad Achmad Author-2-Workplace-Name: Faculty of Economics and Business, Universitas Tanjungpura, Indonesia.)
    Abstract: "Objective – This study aims to examine and analyze micro small and medium enterprises (MSMEs) coaching program and to obtain an empirical evidence regarding the effect of MSMEs coaching program on the quality of financial statements. Methodology/Technique – This study was conducted using quantitative descriptive method and statistical analysis using a sample of 50 entrepreneurs in several MSMEs coaching program institutions in Pontianak, West Kalimantan. Findings – The result shows that all objectives of MSMEs coaching program classified as good with the value of mean above 3.43. Furthermore, the hypothesis proposed in this study shows that MSMEs coaching program has a significant effect on the quality of financial statements. Novelty – The study findings useful for future references in implementing coaching program."
    Keywords: Coaching Program; Entrepreneur; MSMEs; Quality of Financial Statements.
    JEL: I21 L26
    Date: 2017–07–17
  33. By: Liu, Shimeng (Jinan University); Sun, Weizeng (Jinan University); Winters, John V. (Oklahoma State University)
    Abstract: We use the American Community Survey (ACS) to investigate the extent to which college major decisions were affected during and after the Great Recession with special attention to business and STEM fields, as well as the heterogeneity by gender, race/ethnicity and combinations of race/ethnicity and gender. Several conclusions are reached. First, we see an overall increase in the frequency of STEM majors but a decrease in the frequency of business majors during and after the Great Recession. Second, the increase for STEM fields is spread across several detailed STEM fields, while the decrease in business majors is especially concentrated among finance and management. Third, we find strong heterogeneous effects by gender and race/ethnicity. Males are pushed away from business majors, while both males and females are pushed toward STEM majors; certain racial groups, such as white and Asian, seem to be affected more than others.
    Keywords: Great Recession, college major, business, finance, STEM
    JEL: I20 J24
    Date: 2017–09
  34. By: I Gusti Ayu Nyoman Budiasih (Faculty of Economy, Udayana University, Indonesia Author-2-Name: I Made Sadha Suardikha Author-2-Workplace-Name: Faculty of Economy, Udayana University, Indonesia)
    Abstract: "Objective – The research aims to examine whether Tri Hita Karana (THK) culture influences the use of Acccounting Information System (AIS) and user satisfaction as the expression of Information Systems (IS) success. Methodology/Technique – The research was conducted in Badung Regency with Customary Village Financial Institution (LPD) as the sample. This research observes 55 LPDs in Badung Regency. The data was analyzed using SEM analysis with a PLS approach. Findings – The results of this research show that THK culture influences the use of AIS; THK culture influences through perceptions of use and perceptions of simplicity; THK culture influences user satisfaction through perception of use, perception of simplicity, and the use of AIS; perception of use and perception of simplicity influence the use of AIS; perception of use does not influence user satisfaction; perception of simplicity influences user satisfaction; AIS use effects user satisfaction; perception of use effects user satisfaction through the use of AIS. Novelty – The research suggests that suggestions for developing AIS in LPDs across Badung Regency or for further research in the field of AIS include: (1) dividing the LPDs into groups based on their business scale (either their amount of capital or the amount of assets owned); and (2) further exploring the impact of THK culture on the use of AIS."
    Keywords: THK Culture, Perception of Use, Perception of Simplicity, AIS, User Satisfaction
    JEL: M40 Z12
    Date: 2017–07–03
  35. By: Bayu Aprillianto (University of Jember, Indonesia Author-2-Name: Yosefa Sayekti Author-2-Workplace-Name: University of Jember, Indonesia)
    Abstract: "Objective – A Corporate Social Responsibility (CSR) implementation has been implemented since over 50 years ago. All of the CSR implementation divided into two categories, namely Strategic CSR and Non-Strategic CSR. A Strategic CSR implementation should consider the firm strategy based on the CSR concept and firm strategy. Some empirical studies have tested the influence of CSR on Corporate Financial Performance. The results of those studies are still inconclusive. Methodology/Technique – The purpose of this study is to analyze firm strategy as intervening variable between Corporate Social Performance and Corporate Financial Performance. This study used capital intensity and product differentiation to measure the firm strategy. The samples were 33 companies of LQ-45, listed in Indonesian Stock Exchange. Findings – The results did not indicate that firm strategy intervenes the influence of Corporate Social Performance on Corporate Financial Performance, both directly and indirectly. Novelty – The research suggests future studies to employ the other ratios representing Firm Strategy that will strengthen the literature."
    Keywords: "Corporate Financial Performance; Corporate Social Performance; Firm Strategy; Non-Strategic CSR; Strategic CSR."
    JEL: L25 M14 M41
    Date: 2017–07–17
  36. By: Yew-Kwang NG (Division of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.)
    Abstract: This paper discusses ten simple rules for the formulation of public economic policies efficiently, using both old wisdom and recent results. The ten rules are: Using the Invisible Hand; Provision of Essential Public Goods; Reducing Excessive Inequalities Efficiently; Adopt Free Trade and Eliminate Administrative and Collusive Monopolies; Provide Useful Information and Regulation; Raise Taxes Efficiently; Mitigate against Excessive Market Fluctuations; Undertake Public Projects Efficiently; Soft Paternalism; Happiness-Oriented Objectives. Justifications and qualifications are discussed.
    Keywords: Economic policy; ten rules; ten commandments; efficiency; public economics
    Date: 2017–03
  37. By: James B. Ang (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.); Per G. Fredriksson (Department of Economics, University of Louisville, Louisville, KY 40292, USA.)
    Abstract: Several recent contributions to the literature have suggested that the strength of family ties is related to various economic and social outcomes. For example, Alesina and Giuliano (2014) highlight that the strength of family ties is strongly correlated with lower GDP and lower quality of institutions. However, the forces shaping family ties remain relatively unexplored in the literature. This paper proposes and tests the hypothesis that the agricultural legacy of a country matters for shaping the strength of its family ties. Using data from the World Values Survey and the European Values Study, the results show that societies with a legacy in cultivating wheat tend to have weaker family ties. Analysis at the sub-national level (US data) and the country level corroborate these ?ndings. The estimations allow for alternative hypotheses which propose that pathogen stress and climatic variation can potentially also give rise to the formation of family ties. The results suggest that the suitability of land for wheat production is the most influential factor in explaining the variation in the strength of family ties across societies and countries.
    Keywords: Family ties; agriculture; long-run comparative development
    JEL: O1 Q1 Z1
    Date: 2017–05
  38. By: Ratih Dyah Kusumastuti (Faculty of Economics and Business, Universitas Indonesia, Indonesia. Author-2-Name: Viverita Author-2-Workplace-Name: Faculty of Economics and Business, Universitas Indonesia, Indonesia. Author-3-Name: Riani Rachmawati Author-3-Workplace-Name: Faculty of Economics and Business, Universitas Indonesia, Indonesia.)
    Abstract: "Objective – This research aims to develop a policy framework to support household-based snack food industry in the East Sumba regency for poverty alleviation. Methodology/Technique – A qualitative method is applied to enable exploration. A benchmarking analysis with the snack food industry in Garut, West Java, also is conducted to gain insights of the success factors and challenges faced by the industry there. Findings – Most informants say that the East Sumba regency has a high production of food crops and fruit; thus, it has potential to develop a household-based food industry to improve the local economy, i.e., a food and snacks industry based on raw materials such as maize, cassava, sweet potatoes, peanuts, and bananas. The regency also has a long coastline; therefore, coconut, fish, and seaweed-based food industries also are a potential for development in the area. Novelty – This study findings propose a policy framework for poverty alleviation through the creation of new entrepreneurs producing local snack foods. The creation of new entrepreneurs will increase employment and it should be done by the local government by implementing policies that develop the management skills of people in four functional management aspects, which must be supported by specific policies in community leadership, community culture and mindset, public–private partnerships, government support, and infrastructures."
    Keywords: Poverty Alleviation; Household-Based Industry; Food industry; East Sumba; Indonesia.
    JEL: L26 P46
    Date: 2017–06–25
  39. By: Qu FENG (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.); Zhifeng WANG (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.); Guiying Laura WU (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.)
    Abstract: China has experienced high-speed catch-up growth with an average annual rate of over 8% in per capita GDP in the past four decades. Using growth accounting, Zhu (2012) nds that the growth of total factor productivity (TFP) accounts for 77% of Chinas per capita GDP growth during 1978-2007, and argues that Chinas TFP growth is mainly driven by resource reallocation due to market liberalization and institutional reforms. This paper aims to estimate Chinas aggregate productivity growth by applying three leading methods of estimating rm-level production function on Chinese manufacturing rms during 1998-2007, and quantify the contribution of resource reallocation to productivity growth. In addition, we also empirically compare the three estimation methods in this large data set.
    Keywords: Chinas economic growth, TFP growth, production function, resource reallocation
    JEL: D24 O14
    Date: 2017–06
  40. By: Syarifuddin (Faculty of Economics and Business, University of Hasanuddin, Indonesia Author-2-Name: Marwah Yusuf Author-2-Workplace-Name: STIEM Bongaya Makassar Indonesia)
    Abstract: "Objective – This study aims to capture the perspective people and government in Jembrana Bali about politics and power, as a starting point for budget policy formulation. Methodology/Technique – The methods used in this study is dramaturgy. It is a method to analyze the front stage and back stage of the actors setting. Findings – This study found that the way people and government of Jembrana view politics and power is a starting point for budget policy formulation. This study found that accounting man uses power and politics in formulating accounting policies. In this case, actors develop policy as a meaning of the policy for the actors. Novelty – Unlike another study, this study using dramaturgy to observe human behavior. This technique is more interested in studying people as they are rather than adjusting them into propositions and theories that are already known."
    Keywords: Local government; Budgeting; Planning; Dramaturgy; Power; Politics.
    JEL: H61 H83 M41
    Date: 2017–07–11
  41. By: Yanki Hartijasti (Faculty of Economics and Business, Universitas Indonesia, Indonesia. Author-2-Name: Surya Dwi Kusuma Darpita Author-2-Workplace-Name: Faculty of Economics and Business, Universitas Indonesia, Indonesia.)
    Abstract: "Objective – Considering the importance of work motivation in the workplace for staff performance and organizational success, employers need to be sensitive and focusing more on work motivation of their employees to avoid losing them. However, previous studies still have conflicting results on this issue whether there is a significant difference on intrinsic and extrinsic motivators or not among employees from Baby Boomers, Gen X and Gen Y because many studies find generation is not the only driver influencing work motivators. The objectives of this study are to investigate whether a three-generation workforce differs in the level of work motivators and whether differences in generational work motivation are better explained by gender, education, or types of job to design effective human resources development programs. Methodology/Technique – Using survey method to collect data, 415 respondents who work in a manufacturing company were gathered and analyzed by applying descriptive and multivariate analysis. Intrinsic and extrinsic motivators were the subscales of work motivators. Findings – Results indicate that all generations are intrinsically motivated, in which Gen Y employees are found to have higher intrinsic motivators than Gen X and Baby Boomers. However, this study reveals that financial rewards are still considered as an important motivator for the three generations. Novelty – The study presents evidence that work motivators should not only be measured based on generational alone because other factors, such as gender, education, and types of job, can give impact to various outcomes."
    Keywords: "Intrinsic Motivators; Extrinsic Motivators; Financial Rewards; Gen Y; Gen X; Baby Boomers; Indonesian Workplace."
    JEL: J28 J33 M52 M54
    Date: 2017–06–20
  42. By: Bunga Indah Bayunitri (Economy Faculty of Widyatama University, Indonesia Author-2-Name: Fitri Nuraeni Author-2-Workplace-Name: Economy Faculty of Widyatama University, Indonesia Author-3-Name: Nenden Desi Author-3-Workplace-Name: Economy Faculty of Widyatama University, Indonesia)
    Abstract: "Objective – The study aims to explore the effect of digital Word of Mouth (WOM) marketing on customer purchase decision. Methodology/Technique – Types of research are a descriptive analysis and causal also measuring a conclusion by using a regression analysis and for hypothesis testing using t-test and F-test. Findings – The results of this research indicated that digital word of mouth marketing is effective and also has a influenced on customer purchase decision. The results show that digital word of mouth marketing included in the criteria of “Effective”, this means that customer respondents had a positive view about digital word of mouth marketing at Dusun Bambu by using these indicators: Talking, Promoting, and Selling. Novelty – It is suggested that the company can increase the quantity of purchases in one transaction by cooperating with local tour and travel agents in order to raise the number of visitors."
    Keywords: Digital Word of Mouth; Dusun Bambu; Marketing; Purchase Decision; Tourism.
    JEL: M31 M37
    Date: 2017–07–13
  43. By: Jichuan Zong (School of Finance and Laboratory of Experimental Economics, Dongbei University of Finance and Economics); Te Bao (Division of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.); Jack Knetsch (Department of Economics, Simon Fraser University); Xiaowei Li (School of Economic and Social Development, Dongbei University of Finance and Economics)
    Abstract: The results of an experiment involving income sharing being reported here, show that rather than being largely indifferent to the stage of implementation when an input takes effect, as implicitly assumed in nearly all economic analyses, timing appears to play an important role in determining the deservingness of reward. Among other implications, these findings appear to have direct consequences for emerging rules, and proposed alternatives, for sharing in venture capital investments.
    Keywords: willingness to share, joint venture, input timing, ex-ante bias
    JEL: C92 G24
    Date: 2017–04
  44. By: Izza Mafruhah (Faculty of Economic and Business, Universitas Sebelas Maret, Indonesia Author-2-Name: Nurul Istiqomah Author-2-Workplace-Name: Universitas Sebelas Maret, Surakarta, Indonesia.)
    Abstract: "Objective – The objectives of this study are to find out how to empower the poor through community groups (Pokmaskin) at Wukirsari village. The second objective is to create a model for community empowerment with the basic of comparative for pilot and replication area. Methodology/Technique – The first method is Analytical Hierarchy Process (AHP) to analyse the factors that affect the community empowerment through poor society in the pilot areas and the area will be used replication analysis. The second method will use qualitative method with Focus Group Discussion and in-depth interview to answer how the empowerment model that is right for the poor in urban and rural areas. FGD involve various stakeholders in the area of both the elements of society, leaders, NGOs and government. Findings – The result showed that the factors which is the most influenced on the community development as perceived by members of community groups in the pilot and replication areas are, internal factors, institutional factor and external factor. Increasing the internal factor with increased motivation main target group members in the community empowerment; increasing institutional support in the form of legality, the role of local government, support from community leaders, encourages community motivation, formed to develop the organization; and empower all stakeholders, especially the private sector to provide support in training, financial, increase production and marketing. Novelty – The study uses Analytical Hierarchy Process (AHP) and Focus Group Discussion to reach the results."
    Keywords: Poverty; Empowerment; Stakeholder; Community Group.
    JEL: P32 P35
    Date: 2017–07–14
  45. By: Xu GUO (School of Statistics, Beijing Normal University, Beijing.); Wing-Keung WONG (Department of Finance and Big Data Research Center, Asia University; Department of Economics and Finance, Hang Seng Management College; Department of Economics, Lingnan University)
    Abstract: Previous studies focus on the comparison of the optimal output levels of regret-averse firms under uncertainty and firms under certainty. This paper extends the theory by investigating the effects of both regret-aversion and regret-neutrality on production. We compare the optimal output levels of both regret-averse and regret-neutral firms with purely risk-averse firms under uncertainty and firms under certainty. We first show that the regret-neutral ?rms will surely produce more than its purely risk-averse counterparts and surely produce less than firms under certainty. Thereafter, we give sufficient conditions to ensure the regret-averse firms to produce more than both purely risk-averse and regret-neutral counterparts and study the comparative statics of the optimal production. We also develop properties of regret aversion on production in a binary model. The finding in this paper is useful for production managers in their decision on the production.
    Keywords: Production; Regret aversion; Regret neutrality; Risk aversion; Regret theory; Uncertainty.
    JEL: D21 D24 D81
    Date: 2017–09
  46. By: Ahmad Syahmi Ahmad Fadzil (Universiti Teknologi MARA, Malaysia. Author-2-Name: Syed Jamal Abdul Nasir Syed Mohamad Author-2-Workplace-Name: Universiti Teknologi MARA, Malaysia. Author-3-Name: "Roshidi Hassan" Author-3-Workplace-Name: Universiti Teknologi MARA, Malaysia.)
    Abstract: "Objective – This paper debatably argues that there is rather limited and effective framework in managing resistance to change. Thus, a different concept in assessing resistance to change is proposed. Methodology/Technique – This study is conducted through review of qualitative data based on organizational change literature. It was discovered that previous change research accentuated more on human aspect while missing other potential and critical aspect of change resistance. Findings – The past studies put more weightage on individual reactions to change. Study believes that everyone has own unique defence mechanisms that protect them from the change which act as barrier from allowing the individual to adapt with the change. Resistance correlates with individual’s mind reflecting one’s willingness and receptiveness to change while being influences by one’s thinking and behavior. Thus, evaluating resistance to change based on human aspect alone will produce dissimilarities in results. Novelty –Albeit the simplicity of the proposed model, the model will enable the assessment of resistance to change with the larger perspective in tandem with past recommendations of a dire need of better framework in managing resistance to change."
    Keywords: "Resistance to Change; Change Taxonomy; Individual Resistance; Change Programme Resistance; Institution Resistance."
    JEL: M50 M54
    Date: 2017–07–21
  47. By: N. Baradel (CREST - Centre de Recherche en Economie et Statistique [Bruz] - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz], CEREMADE - CEntre de REcherches en MAthématiques de la DEcision - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique); B. Bouchard (CEREMADE - CEntre de REcherches en MAthématiques de la DEcision - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique); N. m. Dang (UNS-HCMC - University of Natural Science, Vietnam National University HoChiMinhCity - University of Natural Science, HoChiMinhCity)
    Abstract: The aim of this paper is to explain how parameters adjustments can be integrated in the design or the control of automates of trading. Typically, we are interested in the online estimation of the market impacts generated by robots or single orders, and how they/the controller should react in an optimal way to the informations generated by the observation of the realized impacts. This can be formulated as an optimal impulse control problem with unknown parameters, on which a prior is given. We explain how a mix of the classical Bayesian updating rule and of optimal control techniques allows one to derive the dynamic programming equation satisfied by the corresponding value function, from which the optimal policy can be inferred. We provide an example of convergent finite difference scheme and consider typical examples of applications.
    Keywords: Bayesian filtering,Optimal trading,market impact,uncertainty
    Date: 2016
  48. By: Dyah Maya Nihayah (Economics Faculty, Universitas Negeri Semarang, Indonesia. Author-2-Name: Amin Pujiati Author-2-Workplace-Name: Economics Faculty, Universitas Negeri Semarang, Indonesia. Author-3-Name: Moh. Khoiruddin Author-3-Workplace-Name: Economics Faculty, Universitas Negeri Semarang, Indonesia. Author-4-Name: Eni Kusrini Author-4-Workplace-Name: Economics Faculty, Universitas Negeri Semarang, Indonesia. Author-8-Workplace-Name:)
    Abstract: "Objective – The aim on which this study conducted is to identify the interaction of indigenous factors and external factors at a Tourism Village Nongkosawit and then to create right strategy to develop the tourist village. Methodology/Technique – This descriptive quantitative research approach focuses on actual problems or phenomena of Nongkosawit which are described based on under-investigation facts and are then rationally and accurately interpreted. Data based on field surveys and questionnaires were evaluated with SWOT analysis (Strength, Weakness, Opportunity, Threat). Findings – The obtained SWOT results shows that, total score of 3.26 in IFE matrix and 3.00 in the EFE matrix indicate that the appropriate strategy to development a Nongkosawit tourism village is turnaround strategy which means internal problems in this village must be minimized to seize the market opportunities. Then rehabilitating infrastructural facilities, including hotels, restaurants and local tourist guides, and taking advantage of diversity of the ecosystem. Novelty – The study suggests that village tourism should make improvements on the internal side by performing management reconstruction and perform sharpening market segments. Stakeholders and communities must work together to support the development of rural tourism to raise the regional economy."
    Keywords: Village; Tourism; Sustainable; Development; SWOT.
    JEL: L83 Q57
    Date: 2017–06–28
  49. By: Jamaliah (Faculty Economics, University Tanjungpura, Indonesia.)
    Abstract: "Objective – Goals of economic development is to increase economic growth, increase employment opportunity, equalize income distribution, and increase standard of living which will reach out community welfare. Therefore, to achieve all those goals, programs which can enhance economic activities with high intensity are needed. It will create more job opportunities and higher income, which mean poverty can be minimalized. One of the efforts to increase economic growth and public income is to develop human capital. The research is aimed to create the development of human capital model which includes training, skill, experience, and other supports particularly creativity and innovation and regarding enhancing welfare of weaving industry’s workers. Methodology/Technique – This research used quantitative and qualitative methods with primary and secondary data which were taken by interviews, questionnaires, and observation. The research took place in several villages/districts in Sambas Regency, those were Jagur, Tumuk Manggis, Tanjung Mekar, Sumber Harapan, and Sajad districts. Considering that population data was not available accurately, respondents were selected based on purposive method and was adapted with the research goal. Findings – The research showed that human capital model to develop weaving industry was very likely to be done through comprehensive development by stakeholders in Sambas Regency (government and public figures), higher education institutions, and companies (business group) so that labour income could increase. Novelty – This developed model, then, is one of means that can be used to improve welfare of weaving industrial workers so that it can be new finding for human capital theory development."
    Keywords: Human Capital, Household Weaving Industry Development, Stakeholders.
    JEL: J01 J08 R11
    Date: 2017–07–18
  50. By: James B. Ang (Division of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.); Satyendra K. Gupta (Division of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.)
    Abstract: This research establishes that the emergence and persistence of intrastate con ict incidence since 1960 are in uenced by regional agro-ecological factors captured by the extent of variation in crop yield potential. Our results based on cross-country and grid-level analysis indicate that higher potential crop yield variability within a country that is exogenous to both human intervention and regional culture increases the likelihood of intrastate con ict. Our ndings are robust to the inclusion of various geographical, institutional, and potentially confounding economic development correlates.
    Keywords: Intrastate con ict, crop yield, agronomy
    JEL: E02 F50 Q10
    Date: 2017–02
  51. By: I Made Sudarma (Brawijaya University, Indonesia Author-2-Name: I Nyoman Darmayasa Author-2-Workplace-Name: Bali State Polytechnic, Indonesia)
    Abstract: "Objective – The main objective of this study is to explore the meaning of voluntary tax compliance by a person after they are granted tax amnesty. Methodology/Technique – This research is qualitative research and uses a transcendental phenomenology method. Findings – The results show that tax compliance does not automatically increase after a grant of tax amnesty. The reason for this is the fact that taxpayers wish to avoid being tax audited. Tax amnesty is therefore not yet useful in build trust in the tax authority. Tax authorities need to convince the public that tax amnesty creates justice for all taxpayers. The power of the tax authority is useful to strengthen law enforcement measures. Furthermore, fundamental moral and ethical considerations based on internalization, spirituality and religion tend to improve taxpayers’ honesty. Novelty – The trust and power of a tax authority that is in line with taxpayers’ honesty is fundamental voluntary to tax compliance. The results of this research demonstrate the need for new tax policies to increase voluntary tax compliance."
    Keywords: Moral Ethics; Tax Amnesty; Transcendental Phenomenology; Trust; Voluntary Tax Compliance.
    JEL: H20 H21 M41
    Date: 2017–07–07

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