ENTRENCHED BOARDS IN NEW PUBLIC FIRMS: AN EMPIRICAL STUDY OF CHINESE IPOS - Bina Darma e-Journal

COLLECTED
ISBN NO: 978-602-097

-37

1

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PATRONS
\tohammad Nasir., M.Si., Akt, Ph'D'

:!nri.

SE, M.Com,

Akt, Ph.D'

* - --:s \takhfud, M.P.
-:


*.---

SE.. M.Sc., Ph.D

.-- :.;fti. R.etno H., M.S.
ORGANIZING

OMMITTEE MEMBERS

C

-+lra Farah M.Sc., Dr. Indira Januarti,

Dr. Suharnomo, Dr. Pujiharto, Dr. Faisal,

3.airnono, Dra. Amie Kusumawardhanie, M.SC.,

Dr. Ahmad Syakir,

Erman


,,:r-j, s:.. \M., Dr. Hadi sasana, Siti Muthmainah, s.E. M.si., Akt., Aditya Septiana,
,,",r .:..
-{kt., Drs. M. Iaiz, M. Yonathan Aditya, S.Kom, Muhamad Alfan, M.Hum.,
1--".:. S.E.. MiaPrameswari, SE., M.Si., Farid Ma'ruf, SE', Akt'

DITERNATIONAL SCIENTIFIC COMMITTEE

:-- ):. -\lueza Tourani-Rad
Auckland University of Technology, New Zealand
Morgan State University, U.S.
r* l: -\bdul Aziz
:-,- --:4:ra Smigielska
Bucharest University Romania
;-. - l':. ^nam Ghozali
Diponegoro University,Indonesia
- r -r---c:r R.ahman Abdul Rahim UiTM Malaysia
;-. lr \lohammed Yusoff
IIU, Malaysia
.,i,:r Slirvinski

Warsaw School of Economics, Poland
----: --r Shahida Wtzarat
Institute of Business Management
Universidad de Granada, SPain
- - :--,=-go \'Iartin-Rojas
:- 1,:. -\nihony S.F. Chiu
De la Salle University, Philippines
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Lunghwa University of Science and Technology, Taiwan
'-'' ::-. \fi
\Iing Lang Tseng
University of Delhi
Ag
- ,;-"Tanuia Agarwala
?:g-rf-. Dr. Tanuja
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-r --- ----.-ie Bt Abdul Ghani Azmt University of Malaya, Malaysia
;- ]':. -\bdul Rahim A. Rahman International Islamic University, Malaysia
Universiti Kebangsaan MalaYsia
Raj amangal a University o f Technolo gy, Thail and

- :=:;:t Tooksoon

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:- - )- {ugusty Ferdinand
:-. _ lt: I:rang Jun
:* lr: Tarna Savolainen

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Collected Abstracts - IRCBE

Diponegoro University, Indonesia
Fudan University, China

University of Eastern Finland

-


Semarang, Indonesia, 28-30

June20l3

Page 4

Prof. Dr. Moha Asri Abdullah

IIU, Malaysia

Prof. Dr. Indah Susilowati
Dr. Stephen Liason Sondoh
Dr. Amirul Shah Md Shahbudin
Assos. Prof. Dr. RarnanNoordin
Prof. Dr. Galina Shirokova

Diponegoro University, Indonesia
Universiti Malaysia Sabah
Universiti Sains Malaysia
Universiti Malaysia Sabah

St. Petersburg University, Russia

Inl

08.00 - 08.3(

10.00 - 10.1:

11.30 - 13.3r

15.00 - 15.1

19.00 - 21.(

08.00 - 08.:

10.00 - 10.

12.00 - 13.


15.00 - 15

08.00 - Fi

Programme and Collected Abstacts - IRCBE

-

Semarang, Indonesia, 28-30 June2013

Programme

Day L (28th June 2013)

Session No.

28 June 2013

Dr. Rajiv Khosla (Chandigarh
University, India)


PHILLPPINES)

MARKETING MIX ELEMENTS
INNOVATIONS EMPLOYED BY
SMALL AND MEDIUM
ENTERPRISES IN THE PROVINCE
OF BATANGAS, PHILIPPINES

SAFAK AKSOY (AKDENIZ
I.INIVERSITY, TURKEY)

CUSTOMER SATISFACTION IN
AIRPORT RETAILING

WOON HEI LING
(LINIVERSITI TLTN HUS SEIN
ONN MALAYSIA)

WOMEN IN REAL ESTATE:

PROFES SIONAL CHALLENGES
AND OPPORTUNITIES

M119

MERY CITRA SONDARI

,(p.30)

GTNIVERSITAS
PADJADJARAN)

KNOWLEDGE-BASED
TRANSF ORMATIONAL MODEL
OF HUMAN CAPITAL OF
FACULry MEMBER TOWARDS

JESUS P. BRIONES (COLLEGE
OF BUSINESS AND
AC COUNTANCYI.INIVERS ITY

OF BATANGAS,

ORGANIZATIONAL
PERFORMANCE OF HIGHER
EDUCATION INSTITUTION

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:4-_

Programme and Collected Abstracts - IRCBE

-

Semarang, Indonesia, 28-30 June2O13

Page 7

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Session No.

28 June2013

Dete

P1B

Time

Ihairperson

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3.30

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fL\ ELEMENTS
;

E\IPLOYED BY

TEDIUM

A'THE PROVINCE

E'077

(p,48)

KRISTIN JOHNSON
(RENMIN LINTVERSITY
oF CHINA), GORDON
LEE (LINIVERSITY OF
ONTARIO INSTITUTE
oF TECHNOLOGY)

AN INTANGIBLE THREAT: U.S.
ECONOMIC SECURITY AND CHINESE
FOREIGN DIRECT INVESTMENT

MAJID MADDAH
(SEMNAN LINIVERSITY
IRAN)

THE ENVIRONMENTAL KUZNETS
CURVE HYPOTHESIS, SOME
CONSIDERATIONS IN MEMBERS OF
ORGANIZATION OF THE ISLAMIC
CONFERENCE

ADELEKE SALAMI
(DEVELOPMENT
RESEARCH
DEPARTMENT,
AFRICAN
DEVELOPMENT BANK,
TLINISIA)

SUSTAINABLE AGRICULTURE IN
AFRICA: EMERGING ISSUES,
CHALLENGES AND POLICY OPTIONS

BIMO WIJAYANTO
(NATIONAL CENTRE
OR SOCIAL AND
ECONOMIC
MODELLING AT UC)

REVENUE AND DISTRIBUTION
IMPACT ANALYSIS OF INDONESIAN
PERSONAL INCOME TAX REFCRM IN

;. PHILIPPINES

.TISFACTION IN

\.iI-NG

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\ITIES
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TIO\AL MODEL
rPtrT-{L OF
{BER. TOWARDS

il,1,4

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(p.so)

OF HIGHER
;STITUTION
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Page 7

Programme and Collected Abstracts - IRCBE

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Page 9

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13.30

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15.00

Dare

28 June 2013

Chrirperson Dr. Manoj Sharma

Session No.

P2A

Time

15"15 -i,17.00

Room

1

(Chandigarh University)

BOARDS IN NEW
i: .\N EMPIRICAL
NESE IPOS

I

Managemgnt

-{rea

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Code

N.{\TS

OF
- CTURE: AN

]-DY

SHARMISTHA BANERJEE
(UNIVERSITY OF
CALCULTTA, INDIA) AND
IPSITA C. PATRANABIS
(GLOBSYN BUSINESS
SCHOOL, KOLKATA,

-\I052
ttp.44)

OF NEW

IED FIRMS

DOES EMOTIONAL INTELLIGENCE
SCORE DRIVE SUCCESSFUL LIFE

INSURANCE MARKETING?

INDiA)

E OUTCOMES OF

{\.{GEMENT

l,I06g

NFOR.I\{ATION

(p.27)

|

M07s

(p.28)

l

MANAWIN SONGKROH
(MAEJO I.INIVERSITY,
THAILAND)

TOURISTS' PERCEPTION TOWARD
HANDICRAFT PRODUCT IN CHIANG
MAI SUNDAY WALKING

YENNI CAROLINA
(PADJAJARAN
TINIVERSITY,
INDONESIA)

A DESIGN OF IMPROVED SERVICE
QUALITY WITH SIX SIGMA BASEDSERVQUAL (CASE STUDY ON
INTERNET SERVICE PROVIDER

coMPANY)
M109
@.2e)

1i

ASIF ALI (FEDERAL URDU THE RELATIONSHIP BETWEEN
UNIVERSITY OF ARTS
PERCETVED TRAINING
SCIENCE AND
OPPORTLTNITIES, WORK
TECHNOLOGY,
MOTIVATION AND EMPLOYEE
PAKISTAN)
OUTCOMES. EVIDENCE FROM
PAKISTAN

Programme and Collected Abstracts - IRCBE

Page 9

-

-

Semarang, Indonesia, 28-30

June2O13

page 10

A009
(p-71)

(p.72)

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--f,

Programme and Collected

E

-

Semarang' Indonesia' 28-30 June2013

Page 11

H

hI THROUGH
NDENTS (BCS)
fuSE STI.IDY OF THE
TNK

TELOPMENT OF
ID AVOID CRISES

INTERNAI CONTEXIUAL FACTORS
INFLUENCING THE EXTENT OF

FAISAL
(DEPARTMENT OF
ACCOUNTING,
FACULTY OF
ECONOMICS AND

ENWRONMENTAL DIS CLOSURE

BUSINESS,
DIPONEGORO
UNTVERSITY,
INDONESIA)
SRI DEWI

THE INFLUENCES OF THE
ORGANIZATIONAI STRUCTURE AND OF
THE TOP MANAGEMENT SIIPPORTS ON
THE ACCOLINTING INFORMATION
SYSTEM AND ITS IMPLICATION ON THE
ACCOLTNTING INFORMATION QUALITY

ANGGADINI
(PADJAJARAN
UNIVERSITY,
INDONESIA)

LAND MPACT ON
DE SCENARIO
AND CHILE

YULIANTI AND
YANUARNANOK

EFFECT OF CORPORATE GOVERNANCE
TO EARNING MANAGEMENT USING
ACCRUALS AND REAL ACTTVITIES

SOENARNO

(ATMAJAYA
L CONFLICT AND
IG THE
IINISM

013

Page 11

CATHOLIC
UNTVERSITY OF
INDONESIA)

Programme and Collected Abstracts - IRCBE

-

semarang, Indonesia, 28-30 June20l3

Page72

ND

ENTREI{CHED BOARDS IN NEw PUBLIC FIRMS: AN EVIPIRICAL
STUDY OF CIIINESE IPOS
Abdul Basyith, Fitriya, M. Idris

FakultasEkonomi, UniversitasMuhammadiyah palembang

ABSTRACT
Purpose: This study empirically investigates the impact of managerial entrenchment
on
performance of Chinese fi.-r' Initi;l public offering
(IPOs).Design/lVlethodology/Approach:Using 142 firms listed in
the Shenzen Stock
Exchange, this study uses two proxies to measure firm performance
and three proxies to
measure managerial entrenchment. The two proxies for firm performance
are iobin,s e
and ROA, and the three proxies for managerial entrenchment are derived
from the
principal component analysis (PCA). This study confirms that the
data is linear and no
endogeneity issue should be addressed in this study, but only
heteroskedasticty, nonnormality for Tobin's Q are a problem; therefore, the regression method
employed for
Tobin's Q is the GLS and the oLS between estimators for Roe.rindings:The
regression
result for Tobin's Q reveals that managerial entrenchment negatively
impacts on firm
performance. The results are in contradiction with the stewardrtip
tn.t.y fo. rr"* firms,
whereas it is positive for the managerial entrenchment for newfirms. In contrast, the
regression result for ROA reve
firm performance; however, on
The results are in line with the
entrenchment for new firms
inconclusive results, this sfudy confidently
explaining the financial performance of new
measure rather than accounting measure. In conclusion, the negative
results of
entrenchment proxies were caused by the
systems, namely that Chinese corporations
state, and hence the centralised state cont

firm financial

n has
) rate

; and
1. In
)nces
and

more
es to
erage
rates

rolicy

lhina

nnance in Chinese Firms IpOs context. It is
gerial entrenchment in new Chinese firms,
role in establishing the modern enterprise

system in the world, and is one of the largest market economies.
Further, the method used

in this study is more robust than prior research, as entrenchment proxies were
derived
using the PCA.
Key words: Managerial entrenchment, firm performance, chinese
firms Ipos.

Programme and collected Abstracts - IRCBE

-

Semarang, Indonesia, 2g-30 June2Ol3

Page 68

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