The International Journal of Accounting and Business Society 2024-01-09T07:57:25+00:00 Editor In Chief Prof. Eko Ganis Sukoharsono, SE, MCom-Hons, CSRS, CSRA, PH.D Open Journal Systems <p>The Accounting Department publishes the International Journal of Accounting and Business Society (IJABS), Faculty of Economics and Business, University of Brawijaya, Indonesia, which is a dissemination medium for research results from researchers and lecturers in management, accounting, international business, entrepreneurship, business economics, risk management, knowledge management, information systems, ethics, and sustainability science. IJABS is a journal issued in April, August, and December. Today, IJABS is indexed in DOI (Crossref), Academic Microsoft Search, Copernicus, J-Gate, (DRJI ) Directory of Research Journals Indexing, Google Scholar, EBSCOhost (under evaluation), DOAJ (under evaluation), Scopus (under evaluation), Neliti and SJIFactor.</p> <p>The editor receives manuscripts not offered for publication elsewhere and analyses on business published within the nation and abroad.</p> <p>E-ISSN <a title="E-ISSN" href="">2355-2905</a> P-ISSN <a title="P-ISSN" href="">1328-1992</a></p> The Need for Ethics Audit: Its Relevance and Importance in Government Organizations (Case Study of Indonesian Government) 2022-09-07T03:40:13+00:00 Agus Setiawaty Unti Ludigdo Noval Adib <p><strong>Purpose – </strong>The purpose of this paper is to explore the emergent discourse of ethics audit and to move forwards on the relevance and importance of ethics audit as an effective way in maintaining ethical climate in Indonesian government organizations.</p> <p><strong> </strong><strong>Design/Methodology/Approach – </strong>This study uses qualitative approach with Constructivism Grounded Theory (CGT) analysis to find, explore and formulate findings gathering from field data. CGT is used because the conceptual foundation regarding ethics audit are still developing.</p> <p><strong> </strong><strong>Findings – </strong>The findings obtained is that the ethics audit proposed in this study has significant relevance for creating a better ethical climate in government organizations in Indonesia. The relevance involves an analysis of 3 levels of perspective, namely the analysis of the micro, meso and macro level perspectives. The ethics audit model is proposed that provide a design for action in mitigating ethics violation, a framework to achieve good government governance and a strategy for governing integrated continuous auditing.</p> <p><strong>Practical Implication – </strong>In a situation where the issue of ethics of public officials is being seriously highlighted in society, this study promotes the importance of ethics audit to government organization and it is hoped that ethics audit is legitimized as annual practice as the predecessor audits that already existed.</p> <p><strong> </strong><strong>Originality/Value – </strong>This study is a research that fills the void of the limited discourse on ethics audit in Indonesia. Findings from this research raises the government’s awareness to be more serious in dealing with ethics through ethics audit.</p> 2023-12-29T00:00:00+00:00 Copyright (c) 2023 The International Journal of Accounting and Business Society The Impact of Organizational Culture on Non-Financial Performance: A Mediation Effect of Sustainability Balanced Scorecard Measurements 2022-01-03T12:25:52+00:00 Ali Mohamed Alsawayeh Eko Ganis Sukoharsono <p><strong>Purpose </strong>— <em>This research aims to shed a light on the non-financial performance level in the hotel industry in East Java cities in Indonesia. That is, it aims to analyze the impact of organizational culture on non-financial performance by investigating the effectiveness of Sustainability Balanced Scorecard (SBSC) measurements usage on the relation of organizational culture and non-financial performance.</em></p> <p><strong>Design/methodology/approach </strong>— <em>This exploratory research examines a sample of 65 hotels operating at different targeted markets. In order to have a better understanding and provide clear discussion related to these relationships in more sufficient depth, the theoretical framework of this research has been designed and developed based on a wide review of relevant research, theories, and findings. The developed research framework adopts the mixed form of the contingency of fit (selection and mediating-based interaction approaches) to investigate the contingency relationship. The survey questionnaire is distributed using an offline approach. Therefore, the collected data is analyzed by using the Partial Least Square Path Modelling (PLS-PM) method along with taking advantage of SmartPLS 3.0 Software.</em></p> <p><strong>Findings </strong>— <em>The findings indicated that organizational culture (Clan, Adhocracy, Market, and Hierarchy) have a positive and significant influence on the effectiveness implementations and usage of Sustainability Balanced Scorecard Measurements namely, financial, internal business process, customer, learning and growth, environmental, and community. These five perspectives of SBSC have a mediation-interaction relationship between the impact of organizational culture and the </em><em>organizational non-financial performance levels; Therefore, there is a significant and positive influence </em><em>of SBSC measurements on non-financial performance (product/ quality service level; customer satisfaction level, employee loyalty level, and social sustainability level).</em></p> <p><strong>Practical implications </strong>— <em>This research contributes empirically to the existing pool of literature related to management accounting practices and more particularly to evaluation and performance </em><em>practices by providing findings from developing countries and giving a focus on the SBSC’ measurements’ usage at hotel business operate in three cities in East Java.</em></p> <p><strong>Originality/value </strong>— <em>The multiple evaluations and performances measurement of BSCS proved to be innovative business measurements to enhance the decision-making process and improve the overall value and performance of a business organization. Thus, this research paper adopts the contingency model to determine the main internal contingency factor that explains the extent level of SBSC measurements’ usage and the effective influence of SBSC measurements on non-financial performances level.</em></p> <p><strong>Keywords </strong>— <em>Organizational Culture, Non-Financial Performance, Sustainability Balanced Scorecard’s Measurements, Hotel Industry, East Java, Indonesia.</em></p> <p><strong>Paper</strong> <strong>type</strong> — <em>Exploratory</em> <em>Research</em></p> 2023-08-30T00:00:00+00:00 Copyright (c) 2023 The International Journal of Accounting and Business Society Defining the Joint Cost in the Field of CSR and Disclosing it in the Financial Statements: An Initiative to Enrich the Thought of Accounting for CSR 2024-01-09T07:57:25+00:00 Younis A. Battal Saleh <p><strong>Purpose: </strong>This study aims to establish a precise definition of the term ʺjoint costʺ in the field of CSR and discuss the issues of disclosing this cost in the financial statements.</p> <p><strong>Method: </strong>To raise a meaningful discussion about the meaning of joint cost in the field of CSR, through which an accurate definition can be developed regarding it, this study adopted the following concepts: 1) Overlapping CSRs; 2) The real sacrifice; 3) Independent legal personality; 4) Untargeted social or economic benefits; 5) Mixed costs resulting from loaning fixed assets and providing non-material assistance such as advisory services, construction and maintenance works, etc. By adopting the possible behavior method and its supporting justifications, the researcher will discuss all expected scenarios regarding the disclosure of these costs in the financial statements.</p> <p><strong>Result:</strong> This study developed a precise definition of the term ″joint cost″ in the field of CSR. This study provided a meaningful discussion on the issues of disclosure of this cost in the reports and financial statements. Also, this study identified three basic principles for achieving transparency when disclosing charitable activities that include a joint cost.</p> <p><strong>Originality /Value:</strong> This study is considered an enrichment of accounting thought in the field of CSR. This study will enhance the capabilities of companies in the field of disclosure of their commitment to CSR adequately and transparently. Also, this study is considered an invitation to international accounting organizations to issue their recommendations regarding how to disclose in the financial statements about charitable activities, especially those that reflect the concept of joint cost or whose costs are small but produce great benefits.</p> 2023-12-22T00:00:00+00:00 Copyright (c) 2023 The International Journal of Accounting and Business Society Empowering MSME Through Socialization and Training in Producing Simple Financial Reports in Tourism Villages 2023-11-16T07:39:54+00:00 Abdul Ghofar Khoirul Umam Hasbiy Wuri Cahya Handaru Mirna Amirya Areta Widya Kusumadewi Wahyu Kartika Larasti Mohammed Jawo <p>Aim - The aim of exists article This are (1) Increase MSME skills and understanding of making report finance simple For help they manage business they with more efficient (2) Encouraging MSMEs to operate practice more business _ transparent with provide report more finances _ accurate (3) Helping MSMEs in Tourism Villages Attack to own more access _ Good to source Power finance , like loans and support from the bank or institution finance other , with own report more finances _ good .<br />Method - This article use method qualitative with approach studies case , so the result nature analytical and descriptive . Population from study This is a tourist village throughout Indonesia and is becoming sample study This is a Tourist Village Attack in the District Blitar , East Java.<br />Findings - Moderate obstacles faced by MSME actors in Tourism Villages attack that is majority MSME actors not yet do recording on transaction required income and expenses _ in the production process so that understanding about importance making report finance still very lacking .<br />Implications Practical - This article help MSME actors in understand importance make report finance simple as tool For monitor performance business from time to time as well as increase quality of MSMEs in Tourism Villages Attack , as form contribution to growth economy local which can also be done practiced by all perpetrator business in Indonesia.<br />Originality - This article explained problems faced by MSMEs especially _ _ about literacy finance so that Can give example Not yet optimally understanding importance make report finance simple can reduce supposed profits _ Can maximized .</p> 2023-12-22T00:00:00+00:00 Copyright (c) 2023 The International Journal of Accounting and Business Society Environmental Factors and Bank Performance In Nigeria: A Panel GMM Approach 2023-09-13T03:45:46+00:00 Gbenga Festus Babarinde Idera Tajudeen Abdulmajeed Matthew Oladapo Gidigbi <p><em>This paper examines the impact of environmental factors on bank performance in Nigeria. Specifically, the study sought to determine the impact of the exchange rate, gross domestic products growth, government expenditure, and the interest rate on the performance of selected Deposit Money Banks (DMBs) in Nigeria using annual data sourced from CBN statistical Bulletin, annual reports and accounts of the 12 randomly selected DMBs from 2009 to 2018. The panel GMM approach was used in estimating the specified relationship among the variables. They found that gross</em><em> domestic product growth, interest rate, and </em><em>government expenditure have a positive significant impact on the performance of the banks. Among all the variables, government expenditure contributes more to the earnings per share (EPS) of the selected banks. </em><em>&nbsp;</em><em>The study, therefore, concludes that </em><em>interest rate, gross domestic product, and government expenditure are strong determinants of the performance of banks in Nigeria. </em><em>It can be recommended that</em><em> banks should be creative within legal bounds in their interest rate management. Banks should continuously focus on the fiscal policy of the government, especially on the expenditure side, and use this as a guide in their policymaking and decisions. Banks should roll policies, products, and services on development finance that are capable of stimulating the economic growth of Nigeria. </em></p> 2024-02-29T00:00:00+00:00 Copyright (c) 2023 The International Journal of Accounting and Business Society The Effect of Accountability, Public Trust, Reputation and Perceived Quality of Zakat Institution to Muzzaki’s Behavior 2022-08-30T02:14:07+00:00 Raudhah Trisna Wardhani Zaki Baridwan <p><strong>ABSTRACT</strong></p> <p><strong>Purpose </strong>— <em>This study aims to examine the effect of accountability, public trust, reputation and the perceived quality of the institution and its effect on muzzaki’s behavior.</em></p> <p><strong>Design/methodology/approach </strong>— <em>This study used an associative causality approach with data collection techniques using questionnaires. The population of this study were all muzzaki at the Zakat Management Organization in East Java, totaling 10,000 muzzaki. The sampling method used in this research was purposive sampling. The analysis technique used was a variance-based structural equation model (SEM) or component-based SEM, known as Partial Least Square (PLS).</em></p> <p><strong>Findings </strong>— <em>Institutional accountability had a positive effect on public trust, institution reputation, perceived quality, and muzzaki’s behavior. Public trust had a positive effect on muzzaki’s behavior. The reputation and perceived quality of the institution had a positive effect on the behavior of muzzaki. </em></p> <p><strong>Practical implications </strong>— <em>The results showed that the implementation of institutional accountability is an important factor in increasing public trust, institutional reputation, perceived quality and muzzaki’s behavior, so that the Amil Zakat Institution in East Java Province is expected to be able to implement accountability properly, so that the level of public trust, institutional reputation and perceived quality will be increase, so does the behavior of muzzaki at the Amil Zakat Institution in East Java Province.</em></p> <p><strong>Originality/value </strong>— <em>This research is a replication and modification of the concept of previous research where there was a gap between the similar variables studied which obtained inconsistent results.</em></p> <p><strong>Keywords </strong>— <em>Accountability; Public Trust; Institution's Reputation; Perceived Quality; Muzzaki’s behavior.</em></p> <p><strong>Paper type </strong>— <em>Research Paper</em></p> 2023-12-29T00:00:00+00:00 Copyright (c) 2023 The International Journal of Accounting and Business Society The Effect of Compensation and Work Motivation on Performance with Leadership Style as Moderator on Employees of the Secretariat of the Regional People's Representative Board of East Java Province 2024-01-02T04:10:59+00:00 Dewa Ayu Karina Asokawati Budiyanto Budiyanto Khuzaini Khuzaini <p><em>This research aims to examine the effect of compensation and work motivation on performance, with leadership style as a moderator on employees of the Secretariat of the Provincial Legislative Council's Representative Board of East Java Province. This research uses moderated regression analysis. The sampling technique used in this study is saturated sampling which involves all 163 members of the population as respondents.</em></p> <p><em>According to the findings of the study, it was observed that there is a positive and significant impact of compensation and work motivation on employee performance. However, the moderating effect of leadership style on the relationship between compensation and employee performance and between work motivation and employee performance was found to be weak.</em></p> 2023-12-22T00:00:00+00:00 Copyright (c) 2024 The International Journal of Accounting and Business Society Building Financial Capability of MSMEs through Financial Factor Analysis and its Effect on Lending Policy on P2P Lending Platforms 2023-09-20T06:34:31+00:00 Putu Wulandari Nurlita Novianti Ayu Fury Puspita <p><strong>Purpose </strong>— The purpose of this study was to analyze the effect of MSME financial factors consisting of credit score, business turnover, leverage ratio, number of loans, company size and profitability on P2P Lending lending policies.</p> <p><strong>Design/methodology/approach </strong>— <em>A quantitative research approach is used in this study to test research hypotheses that are relevant to the research phenomenon. The logistic regression data analysis technique was used in this study to see the factors that influence credit granting decisions.</em></p> <p><strong>Practical implications </strong>— <em>The practical implication of this research is to contribute benefits to MSME business actors in preparing important financial data to be able to obtain alternative funding sources other than conventional financial services.</em></p> <p><strong>Originality/value </strong>— This study reveals the financial variables that are important to be considered in providing P2P loans to MSMEs so that it is expected to provide hope for MSMEs to develop financial capabilities and increase business growth.<strong> &nbsp;</strong></p> <p><strong>Paper type </strong>— <em>Case study</em></p> 2024-02-12T00:00:00+00:00 Copyright (c) 2023 The International Journal of Accounting and Business Society