Book of Abstract ICBMR 2017
Table of Contents
WELCOME MESSAGE 2
ABOUT ICBMR 3
COMMITTEE MEMBERS 4
ABSTRACT KEYNOTE SPEAKERS 5
KEYNOTE SPEAKERS BIODATA 7
PROGRAM SCHEDULE 9
PARALLEL SESSIONS SCHEDULE 13
ABSTRACT 19
PARALLEL SESSION 1 (ACCT) 19
PARALLEL SESSION 1 (FIN) 25
PARALLEL SESSION 1 (GSM) 31
PARALLEL SESSION 1 (ECO, GSM, OPR) 37
PARALLEL SESSION 1 (MKT) 43
PARALLEL SESSION 2 (FIN, IFIN) 49
PARALLEL SESSION 2 (FIN) 55
PARALLEL SESSION 2 (GSM) 61
PARALLEL SESSION 2 (HRM) 67
PARALLEL SESSION 2 (MKT) 73
PARALLEL SESSION 3 (GSM) 79
PARALLEL SESSION 3 (FIN) 85
PARALLEL SESSION 3 (GSM) 91
PARALLEL SESSION 3 (IFIN) 97
PARALLEL SESSION 3 (MKT, MIS) 103
PARALLEL SESSION 4 (ACCT) 109
PARALLEL SESSION 4 (FIN) 115
PARALLEL SESSION 4 (HRM, GSM) 121
PARALLEL SESSION 5 (ACCT, FIN) 127
PARALLEL SESSION 5 (FIN) 134
PARALLEL SESSION 5 (MKT) 141
1
AUTHOR’S INDEX 148
Book of Abstract – ICBMR 2017
WELC O ME MESSAG E
Dear Honorable Scholars,
I am pleased to welcome all of you to Padang, West Sumatra province
for The International Conference on Business and Management
Research or ICBMR. This year would be the 11th year that the
Management Research Centre, Department of Management, Faculty
of Economics and Business, Universitas Indonesia, conducting this
conference. This event is organized with a motivation to provide an
international platform for the academicians, researchers and budding
students to share their research findings and to find international
linkage for future collaborations.
The theme of the 2017 conference is “Deglobalization: Challenges for
Emerging Countries”, to capture significant changes in the political
world that may impact emerging countries. We receive papers from
different management and business field of finance and Islamic
finance, marketing, human resources management, general, strategic,
and operations management, and accounting. All presented papers
will be published in the conference proceedings or in our supporting
journals.
This large gathering of academicians would not be possible without the
supports from KPPRI UI and sponsoring organizations, PT. Pertamina, PT.
Telkom, PT. Bank Central Asia and supporting journals/publisher: Asian
Journal of Business and Accountancy, Pertanika Journal of Social
Science and Humanities, ASEAN Marketing Journal, Indonesian Capital
Market Review, The Southeast Asian Management Journal, and Atlantis
Press.
I would also like to express my gratitude to the leaders of Universitas
Indonesia and Faculty of Economics and Business for their tremendous
supports. Last but not least, thank you from the bottom of my heart to
all contributors: presenters, track chairs, reviewers, keynote speakers,
and members of the organizing and scientific committees. Without
your supports and hardworking this conference would never be
happened.
May you have a wonderful experience in sharing your knowledge.
Enjoy the conference.
Ra tih Dya h Kusum a stuti, PhD
C ha ir o f O rg a nizing C o m m itte e
2
Book of Abstract – ICBMR 2017
ABO UT IC BMR
ICBMR 2017 theme is “Deglobalization: Challenges for Emerging
Countries”. This theme was chosen since currently there are significant
changes in the political world, such as Brexit and political changes in
the US that leads to deglobalization. This early process of
deglobalization is bringing impact to emerging countries. These
changes create a challenge for emerging countries to remain its
competitiveness in the world market. To that end, the Faculty of
Economics and Business, Universitas Indonesia, in particular the
Department of Management through its research institutes, namely
Management Research Centre is determined to contribute positively to
allow Indonesia to take advantage of the challenges posed into
various business opportunities. Through ICBMR prestigious event this
year, we expect to obtain various inputs and studies that can provide
insights for policy makers, businesses and the scientific developments in
the country.
C o nfe re nc e
The m e
1st
Fa c ing 21st C e ntury C ha lle ng e s
Busine ss La nd sc a p e Shifting in Asia
Pa c ific Re g io ns
Ma na g ing G lo b a l Busine ss
C o mp e titio n
The Ne w Wo rld O rd e r Afte r the C risis
Ho w to Enha nc e G lo b a b ility in The
Ne w Wo rld
Busine ss a nd Ma na g e me nt
C ha lle ng e s to wa rd ASEAN Ec o no mic
C o mmunity 2015
Tra nsfo rming Lo c a l a nd Re g io na l
Ne two rks into Susta ina b le G ro wth
Tra d e , Busine ss a nd Inve stme nt in the
G lo b a l Ec o no mic Re c o ve ry
Inte rna tio na l Ma rke t Inte g ra tio n
Enha nc ing Busine ss Sta b ility Thro ug h
C o lla b o ra tio n
De g lo b a liza tio n: C ha lle ng e s fo r
Eme rg ing C o untrie s
ICBMR, Bali, 2006
2nd ICBMR, Jakarta, 2007
3rd ICBMR, Bali, 2008
4th ICBMR, Bali, 2009
5th ICBMR, Depok, 2010
6th ICBMR, Manila, 2011
7th ICBMR, Ho Chin Minh, 2012
8th ICBMR, Seoul, 2013
9th ICBMR, Kyoto, 2014
10th ICBMR, Lombok, 2016
11th ICBMR, Padang, 2017
3
Book of Abstract – ICBMR 2017
C O MMITTEE MEMBERS
STEERING COMMITTEE
1. Prof. Ari Kuncoro, Ph.D
2. Dony Abdul Chalid, Ph.D
SCIENTIFIC COMMITTEE
1. Professor Dr. Agus W. Soehadi – Prasetiya Mulya Business School
2. Professor Dr. Balakrishnan Parasuraman – Universiti Malaya Kelantan
3. Professor Dr. Felix Mavondo – Monash University
4. Professor Dr. Firmanzah – Universitas Indonesia
5. Professor Dr. Iftekhar Hasan – Fordham University
6. Professor Dr. Irwan Adi Ekaputra – Universitas Indonesia
7. Professor Dr. Mohamed Ariff – Sunway University
8. Professor Dr. Togar Simatupang – Institut Teknologi Bandung
9. Dr. Ahmad Daryanto – Lancester University
10. Dr. Aryana Satria - Universitas Indonesia
11. Dr. Dony Abdul Cholid - Universitas Indonesia
12. Dr. Hanny Nasution - Monash University
13. Dr. Irwan Trinugroho – Universitas Sebelas Maret
14. Dr. John Walsh – Shinawatra University
15. Dr. Lukas Setiatmaja – Prasetiya Mulya Business School
16. Dr. Ratih Dyah Kusumastuti – Universitas Indonesia
17. Dr. Sari Wahyuni – Universitas Indonesia
18. Dr. Sri Rahayu Hijrah Hati – Universitas Indonesia
19. Dr. Sylvia Veronica – Universitas Indonesia
20. Dr. Tengku Ezni Balqiah – Universitas Indonesia
21. Dr. Vera Pujani – Universitas Andalas
22. Dr. Viverita - Universitas Indonesia
23. Dr. Wahyoe Sudharmono – Sampoerna University
24. Dr. Zaafri A. Husodo – Universitas Indonesia
ORGANIZING COMMITTEE
1.
2.
3.
4.
5.
6.
7.
4
Ratih Dyah Kusumastuti, Ph.D
Putri Mega Desiana, MM.
Fajar Ayu Pinagara, M.Phil., M.Sc.
Asiah, MA.
Ratna Juwita, MSM., M.Ak.
Andreina Fara Hapsari, SE.
Sintani Sari Aristi, SE.
8. Intan Juwita Sari, SIA.
9. Muhammad Miqdad Rabbani, SE.
10. Muhammad Furqon Abi Wirawan,
A.Md.
11. Mamun
12. Mat Sholeh
Book of Abstract – ICBMR 2017
ABSTRAC T KEYNO TE SPEAKERS
PROF. DR. IFTEKHAR HASAN
The Exte rna litie s o f G lo b a liza tio n:
Evide nc e fro m Fo re ig n Ba nk O wne rship a nd Inte rna tio na l
Dive rsific a tio n
First, I discuss about the impact of foreign ownership on the price
informativeness of bank stocks based on a large sample of banks from
60 countries between 1997 and 2012 and observe that foreign
ownership associated with greater (lower) stock price informativeness
(synchronicity). Such positive association is stronger when foreign banks
originate from countries with stronger governance than their host
countries, and when monitoring costs are lower. This evidence suggests
that foreign ownership significantly reduces bank opacity by promoting
better corporate governance. Our results yield important implications
for bank regulators and governments by documenting and highlighting
the significant role of banking globalization in promoting greater
transparency, quality corporate governance, and efficient capital
allocation. Second, I discuss how the capital market values
globalization (international diversification) of banks in good- and in
bad-times. I focus on this question by examining the domestic and
foreign sovereign debt rating changes, both before and during the
European sovereign debt crisis. Tracing 320 European banks in 29
countries and 226 credit rating announcements of European
sovereigns, between January 1, 2001 and August 15, 2012, I report that
capital market does value banks’ access to foreign funds. Despite
some occasional adverse effect immediately after the negative news
on sovereign credit rating changes, however, international
diversification (globalization) is likely to be beneficial to European
banks, especially during periods of distress.
5
Book of Abstract – ICBMR 2017
ABSTRACT KEYNOTE SPEAKERS
ASSOCIATE PROFESSOR DR. RUBI AHMAD
Ho w to Pub lish In Inte rna tio na l Jo urna ls?
Developing papers for research and publication is part and parcel of
academic life in addition to teaching and supervision. Getting our work
published is the key to having a productive, exciting and rewarding
academic career. In my presentation, I share some general tips as well
as my own experience on how to be successful in publication. It is
highly recommended to start writing and publishing at the early stage
of our research or doctoral study career. Diversifying your research
portfolio, concentrating on one or two fields of specialization, choosing
interesting topics and journals for your papers and collaborating with
your PhD students, coworkers, and international professors are very
useful together with writing clearly. The likelihood of getting your work
published also increases with having interesting title and good
abstract. These recommendations however require proper attention,
planning and implementation.
6
Book of Abstract – ICBMR 2017
KEYNO TE SPEAKERS BIO DATA
PROFESSOR DR. IFTEKHAR HASAN
Dr. Iftekhar Hasan is the E. Gerald
Corrigan Professor of Finance at
Fordham University. He serves as a
scientific advisor at the Bank of
Finland; a research fellow at the
Financial Institution Center at the
Wharton School and NYU Stern School
of Business. A Fulbright scholar and a
Fulbright selector, Dr. Hasan, held
visiting faculty positions at several
universities in Europe, Asia and
Australia. Professor Hasan's research
interests are in the areas of financial
institutions, corporate finance, and emerging markets. Professor Hasan
has over 325 publications in print, including 16 books and edited
volumes and over 240 peer-reviewed articles in reputed journals such
as JFE, JFQ A, JME, SMJ, HRM, JAR, and MG MT_SC I. He received his PhD
and MS from the University of Houston. He received a “Doctor Honoris
Causa” from the Romanian-American University in Bucharest.
7
Book of Abstract – ICBMR 2017
ASSOCIATE PROFESSOR DR. RUBI AHMAD
Rubi Ahmad is an Associate Professor of
Finance and Banking and is currently
Deputy Dean of Research and
Development, Faculty of Business and
Accountancy (FBA), University of
Malaya, Kuala Lumpur, Malaysia. She
holds a PhD in finance at Department
of Accounting and Finance of Monash
University, Melbourne, Australia as well
as MBA degree specialization in
finance from University of Memphis, TN,
USA.
Rubi Ahmad’s research is mainly focus on structural changes,
organizational performances, regulations and challenges facing
banking institutions as well as financial markets in emerging countries
namely ASEAN. She has supervised many doctoral students and several
of whom are now teaching at universities in Malaysia, Nigeria, Saudi
Arabia and Iran. Currently, she supervises five doctoral students whose
thesis topics include bank performance, financial regulations, mergers
& acquisitions and investment.
She has produced a wide range of publications specifically book
chapters and academic articles on banking and finance in local and
foreign academic journals. Her list of journal publications includes
Journal of International Money and Finance, International Review of
Economics and Finance, EMPIRICA, Chinese Management Studies,
Asia-Pacific Financial Markets and Multinational Finance Journal.
She also serves as an associate editor of Asian Journal of Business and
Accounting (AJBA) as well as an external examiner for two local
universities and University of Ilorin in Nigeria. From 2015 until today, she is
one of the panel members of Malaysian Quality Accreditation (MQA)
for Program Standard for Finance and Banking. MQA is a national body
that oversees and approves all undergraduate and post-graduate
programs offered by public and private institutions in Malaysia.
8
Book of Abstract – ICBMR 2017
PROGRAM SCHEDULE
Wednesday, 1st November 2017
Time
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am Registration
am Safety )nduction by (otel Management
Opening Remark by MC and National Anthem
am
Replay
Welcome Speech from The Governor of West
am
Sumatera, )ndonesia
am Reciting Prayer
am Report from the Organizing Committee
am Welcome Speech from The Dean of FEB U)
Welcome Speech from The Rector of Universitas
am
)ndonesia and Opening Ceremony
am Keynote Speech + Q&A Session
Prof. Dr. Iftekhar Hasan
Proffessor of Finance and Corrigan Chair in
)nternational Business and Finance
Fordham University, USA
am Token Appreciation and Photo Session
am Coffee Break
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pm Parallel Session
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pm Lunch
pm Keynote Speech + Q&A Session
Prof. Bambang P. S. Brodjonegoro, Ph.D
Minister of National Development Planning of
)ndonesia
. pm Token Appreciation and Photo Session
. pm Coffee Break
pm
Departure to Welcome Dinner
Welcome Dinner & Traditional Dance
. pm
Performance at Governor’s Residence
Venue
Padang
Convention
Centre
Anai, Ombilin,
Tarusan,
Kuantan
Ranah Minang
Coffee Shop
Anai, Ombilin,
Tarusan,
Kuantan
Padang
Convention
Centre
Lobby (otel
Governor's
Residence
Book of Abstract – ICBMR 2017
Thursday, 2nd November 2017
Time
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Description
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am
Keynote Speech + Q&A Session
Assc. Prof. Dr. Rubi Binti Ahmad
Deputy Dean Research and Development
Faculty of Business and Accounting
University of Malaya, Malaysia
Coffee Break
pm Parallel Session
pm Parallel Session
pm Doctoral Colloquium
Panelists:
. Prof. Dr. )ftekhar (asan
. Assc. Prof. Dr. Rubi Binti Ahmad
. Prof. Balakrishnan Parasuraman
. Zaafri A. (usodo, Ph.D
. Dr. Budi Widjaja Soetjipto
pm Lunch
pm Parallel Session
pm Practitioner's Track )mproving SME’s
Competitive Advantages and )mplementation of
OVOP Policy in West Sumatera Province
Panelists:
. )r. Zirma Yusri (ead of Cooperative and
SME Division, West Sumatera Province
. Asben (endri SE., MM. (ead of )ndustry and
Trade Division, West Sumatera Province
. Agus Mashud S. Asngari VP CSR and SME
Partnership Program, PT. Pertamina Persero
. Zakir Machmud, PhD. (ead of UKM Centre
FEB U)
Moderated by Dr. Rifelly Dewi Astuti Dept.
Management FEB U)
pm Closing Ceremony
Best Paper Announcement
pm Certificate and Receipt Collection with Coffee
Break
Venue
Ombilin
Anai, Ombilin,
Tarusan,
Kuantan
Anai, Ombilin
Kuantan and
Tarusan
Ranah Minang
Coffee Shop
Anai, Tarusan,
Kuantan
Ombilin
Book of Abstract – ICBMR 2017
Friday, 3rd November 2017*
Itinerary One‐Day Trip
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Padang – Anai Valley Natural Reserve and Waterfall
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Proceed to Bukittinggi
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Photostop at Anai Waterfall
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Back to Padang via Padang Panjang
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Drive to Padang
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Bukittinggi city tour: Sianok Canyon, Japanese Tunnel and
Jam Gadang
Freetime and Shopping at Pasar Ateh
Friday prayer time at the closest mosques for gentlemen
and ladies can kindly wait at Family Restaurant, continues
to lunch
A visit to Pagaruyung Royal Palace at Batusangkar
Observation at Pagaruyung Royal Palace which is the center
of Minangkabau ancient culture. You can learn the culture
of Minangkabau and also take some pictures wearing
Minangkabau traditional clothes.
Maghrib prayer and Dinner at Pak Datuak Restaurant
Specific of Minangkabau Traditional Foods
*To ur is o p tio na l. Re g istra tio n is a va ila b le a t the first d a y o f c o nfe re nc e .
12
Book of Abstract – ICBMR 2017
PARALLEL SESSIONS SCHEDULE
Pa ra lle l Se ssio n 1
1 st No ve m b e r 2017
11.00 a m - 12.30 pm
Ana i
O m b ilin 1
O m b ilin 2- 3
Ta rusa n
Kua nta n
(AC C T)
(FIN)
(G SM)
(EC O , G SM, O PR)
(MKT)
C ha ir: Yo sm a n
Busta m a n
C ha ir: Ifte kha r Ha sa n
C ha ir: Sa ri Wa hyuni
C ha ir: Mo ha m m a d
Ha m sa l
C ha ir: G ita G a ya tri
Analysis The Effect Of
Audit Fee On Audit
Quality In ASEAN
Countries
Closing Price
Manipulation in
Indonesia Stock
Exchange
Determinants of
Economic Growth: A
Case Study of PIIGS
Countries
Fitria ny
Ma hm uda h Fa tluc hi
The Influence of ValueCreation on Customer’s
Based Destination Brand
Equity : Case Study
Daerah Istimewa
Yogyakarta and
Magelang in Indonesia
Empirical Analysis of Fit
among Entrepreneurial
Marketing and
Marketing Strategy
towards SMEs Marketing
Performance
Erfa n Fiddin, Za hrin
Ha znina Q a lb y
Rife lly De wi Astuti
Ag ung Nug ro ho
Top Management
Team Characteristics
(TMT) and Profitability:
The Case of Indonesian
SOEs
Capital Structure
Determinnats of
SMEs Shariah
Compliant
Companies
Hilda Ro ssie ta
Ma zila Md- Yusuf
Stakeholder Pressure and
Its Effect on Strategic
Response and Firm
Performance: The
Mediating Role of
Dynamic Managerial
Capabilities
The Equilibrium Analysis
of Consumption and
Imports of Soybean in
Indonesia
Tweens Perception on
Advertising Using Older
Cognitive Age
Te tty Rim e nda Ta rig a n
Ha sdi Aim o n, Zul Azha r
Elo k Sa vitri Pusp a rini
The Effect of Head of
Region Characteristics
on Local Government
Financial Performance:
The Case of Indonesia
Does the religious
values of CEO affect
the capital
structure?
Rida Ra him
How Personality Could
Increase Engagement to
Change? Mediation Effect
of Personal Mastery and
Network Centrality
Do fa Purno m o
Do ddy Se tia wa n
Moderating Effect of
Demographic Factors
and Entrepreneurial
Phase on the
Relationship Between
Entrepreneurial
Competencies and
Innovation of ASEAN
Entrepreneurs: Evidence
from GEM Data
Investigating Consumer
Perceptions of Islamic
Advertising: From Ethics
to Virtue
Anya Sa fira , Fa dhil
Akb a r Purna m a
G a ndhi Pa wita n
The Effect of
Profitability, Tangibility,
Corporate tax, Nondebt tax shield and
Inflation rate to the
Capital Structure on the
Manufacture
Companies listed in the
Indonesia Stock
Exchange
Competition Analysis
of Banking Industry
in Indonesia: Were
the efficiency
transfers happened?
The Local Government’s
Supply Chain Strategy to
Empower the Traditional
Fishermen in Southern
Coast of Java Island
Managing Local
Resources To Improve
Community
Empowerment And
Reduce Poverty
Do ny Ab dul C ha lid
Ni Putu Eka Wid ia stuti
Wa hyuning sih
Analysis of team
engagement and
physical servicescape
perception effects on
branch service quality
and customer
engagement
Da nie l Tum pa l H. Arua n
Ab dilla h Arif Na sutio n
Managers' Cost
Stickiness Behavior:
Empire Building Motive,
Bonus Scheme
Incentive and
Companies' Earnings
Level
Cross border
banking sector:
Evidence of
diversification and
financial stability in
Asia Pacific
The Role of Entrepreneurial
Orientation in Achieving
Organization Performance
Through Business Model
Innovation and Strategic
Collaboration
Vive rita
Sa ndra De wi
The Use of Lean Six
Sigma to Improve Key
Performance Indicators
on The Plant Division of
PT. PPN
Atho r Sub ro to
Annual Traveller
Demand from
Advertising and Word of
Mouth
Sa iso m pho rn
La rhso uka nh
Hilda Ro ssie ta
14
Book of Abstract – ICBMR 2017
Pa ra lle l Se ssio n 2
1 st No ve m b e r 2017
01.30 - 03.00 pm
Ana i
O m b ilin 1
O m b ilin 2- 3
Ta rusa n
Kua nta n
(FIN, IFIN)
(FIN)
(G SM)
(HRM)
(MKT)
C ha ir: Ro fiko h Ro khim
C ha ir: Ifte kha r Ha sa n
C ha ir: Ve ra Puja ni
C ha ir: Ba la khrisna n P. /
Arya na Sa trya
C ha ir: Sri Ra ha yu HIjra h
Ha ti
Demand for Islamic
Pension Funds in
Indonesia: an
Exploratory Study
Financial Literacy and
Consumer Debt: A
Survey of Low Level
Income Households in
Depok, West Java,
Indonesia
The Driving Factors And
Focus Of CSR
Implementation: A
Comparison of Family
Business In Indonesia,
Japan and Thailand
The Role of Newspaper
as Political Marketing
Tool during Indonesian
Presidential Election of
2014
Ang e lic a Fa dya
No ve nti, Dwi Na stiti
Da na rsa ri
Sa ri Wa hyuni
Determination of
Leadership and Spiritual
Motivation on The
Performance of
Employees through the
Satisfaction of City
Government Employees
Batam, Indonesia
Impact of the
Agressive Working
Capital Management
Policy on Firm’s
Profitability and Value:
Study on Non-Financial
Listed Firms in
Indonesia Stock
Exchange
Effect of Institutional
Related Criteria in
Partner Selection: Case
of Logistic Service
Provider in Indonesia
Ra hm a tina Awa lia h
Ka sri
Market Structure and
Bank Stability:
Comparison Between
Conventional and
Islamic Banks in
Indonesia
Muha m m a d Budi
Pra se tyo
Ma slina Wa rnie
Huta suhut, India na
Ng e ng e t
C ha b lulla h Wib iso no
Spiritual Crafting:
Another Strategies to
Transform the Meaning
of Work
Missilia na Ria snug ra ha ni
Ha lly Ha na fia h
The Effects of Brand
Love, Brand Image and
Brand Personality on
Brand Engagement of
Local Fashion Brands in
Indonesia : Moderating
of Ethnocentrism
C indy Suwa ndhi
Ro sye ni Ra syid
National Framework,
Market Structure, and
Banking Stability
(Evidence in ASEAN-5)
Do ny Ab dul C ha lid
Idiosyncratic Cash
Flow Volatility in
Emerging Asia and
Developed Asia in
Manufacturing Sector
In Search of Product
Uniqueness: Insight From
Indonesia
Ag ung Wa hyu Ha nda ru
Exploring Antecendents
and Consequences on
Women/ Leader Identity
Conflict in Indonesia
Ilm a n Iria nto , Inta n Silvia
Da le , C o rina D.
Ria nto putra
Za a fri A. Huso d o
In a Social Capital
Perspective: The Effect
of Branded E-Stickers
(BES) Usage on Brand
Attitudes and Brand
Purchase Intentions
(Study on LINE Social
Messenger)
Ye shika Alve rsia
The Influence of
Banking Profitability on
Share Price and The
Moderating Role of
Capital Adequacy
Ratio and Foreign
Exchange Transaction:
Comparative Study of
Government and
Private Banks in
Indonesia
The Exposure to
Sensitivity of Common
Idiosyncratic Volatility
on Stock Returns:
Evidence in South East
Asia (ASEAN) Emerging
Markets
Will Jakarta Still Having
Traffic Congestion after
MRT?
Political Behaviours of
Internal Auditors in a
Public Organization
Fa ja r Ayu Pina g a ra
Mo nic a De vina
Pra tiwi No via ya nti
The Effect of Perceived
Quality of Performance
of Peripheral
Conference Service on
The Revisit Intention to
Conference Host
Destination and The
Moderating Effect of
Novelty Seeking
C hristina Lipuring tya s
Ruda tin
Me liza Za friza l
Measuring the Impact
of Higher Capital
Requirement to Bank
Lending Rate and
Credit Risk: The Case of
Southeast Asian
Countries
Sig it S. Wib o wo
15
The Financial Market
Stability : Southeast
Asia, BRIC and Latin
America
Isye Nur Isyro h
The Effect of Public
Service Quality and
Public Education on
Public Trust in Bekasi
City: A Comparison of
the Services for Civilians
and Businesses
Anto n Wa c hidin Widja ja ,
Budi Indra wa ti
Emotional Labor and
Organizational
Commitment among
Hospital Nurses: The
Mediating Role of Job
Burnout
Uliya tun Nikm a h
Perceived Justice and
Perceived Loss Influence
toward Customer
Satisfaction in Service
Recovery: the Impact
on Trust and Switching
Intention
G ita G a ya tri
Book of Abstract – ICBMR 2017
Pa ra lle l Se ssio n 3
2 nd No ve m b e r 2017
09.45 - 11.15 a m
Ana i
O m b ilin 1
O m b ilin 2- 3
Ta rusa n
Kua nta n
(G SM)
(FIN)
(G SM)
(IFIN)
(MKT, MIS)
C ha ir: Lily Sudha rtio
C ha ir: Irwa n Ad i
Eka putra
C ha ir: Anto n W. Widja ja
C ha ir: Za a fri A. Huso do
C ha ir: Wa hyuning sih
Social Media and
Innovation: The Case of
Indonesian SmallMedium Sized
Enterprises
Continuous and Jump
Betas : Implications for
Portfolio Diversification
(Evidence from
Indonesia Stock
Market)
The Effect of
Entrepreneurial
Marketing on Managing
Resource and Its Impact
on Innovation
Performance
An Empirical Analysis on
Zakat Institution's
Performance in Jakarta,
Indonesia: A
Measurement Using a
Newly Developed Index
Usm a n Arie f
Triyo no Arie f
Ma ulidia Am ri
An Analysis of
Technology
Acceptance Model with
Extensions in Affective
Components and
Anxiety for Village
Financial System
(Siskeudes), A Case
Study in Tangerang
District, Indonesia
Am b a r Sa ri De wi
Ro b y Sya iful Ub e d,
Am b a ng Arie s Yuda nto
The Governance of
Public-Private Ties
Model: How to Govern
The PPPs Infrastructure
Project Effectively (An
Indonesia Case)
Capital Buffer for
Stronger Bank Stability:
Empirical Evidence
from Indonesia’s
Commercial Banks
Dwi Na stiti Da na rsa ri
Krist Ade Sudiyo no
Business Unit
Entrepreneurial
Orientation and
Strategic Initiative in
Large Family Business
Group: The Role of
Corporate Centre and
Family Influence
Dynamic Relationship
between Sovereign
Bond and Sukuk Market
Developments with
Indonesian Economy
Successful Information
Technology Adaptation
Process to Enable
Business Agility
Siti Ya sm ina Zub a e da h
Re ifa Q isthi
Mitsa liya ndito
O kde r Pe ndria n
Strategic Roles of
Owner-Managers in
Achieving SMEs’ Dual
Goals
Rusla n Prija di
The Influence of
Corporate Social
Responsibility, Business
Diversification, and
Company Size on
Company Value
Erni Ma sdupi
The Role of Functional
Competencies,
Dynamic Capabilities
and Technology
Flexibility in Crafting
Product Superiority: A
Study of Indonesian
Packaged Software
Developers
Investment Strategy in
Islamic Capital Market:
Study on Indonesia
Stock Exchange
Za e na l Arifin
How Product
Arrangement and
Quantity Influence
Consumer's Intention:
The Role of Disliking
Disorderliness and
Scarcity Effects
Anda ng Fa zri
Minsa ni Ma ria ni
Why Gender Inequality
is Still Appeared in
Garment Factories in
Indonesia?
Muthia Pra m e sti
A Dynamic Effect of
Profitability on
Leverage: A Dynamic
Inaction Model of
Optimal Capital
Structure in Indonesia
Capital Market
Social Construction of
Trust in the Investment of
"Bodong"
Da m sa r, Indra ya ni
The Analysis of Market
Power and Bank
Soundness on Islamic
and non-Islamic Bank
Behavior
Which is the Stronger
Influence of Voting
Intention: Candidate
Credibility or Party
Credibility
Sri Ra ha yu Hijra h Ha ti
Ra iha n Ma he ndra
Ika No va ria
Bridging the Gap of
Knowledge between
Government Policies
and Project
Performance: An
Empirical Study in Highly
Regulated Industry
Fitria Astuti Firm a n
16
Cost of Financial
Distress and Firm
Performance
Estu Wida rwa ti
State-owned Enterprises
Innovation Performance
Andre a s Pa rdya nto
Sukuk Rating Prediction:
the Case of Corporate
Sukuk in Indonesia
Na b ila Ism a il
The Influence of Sharia
Compliance and
Marketing Mix on
Satisfaction and
Intention of Muslim
Tourist to Revisit Sharia
Hotel
Nurdin So b a ri, Ha rdius
Usm a n, M. Za inul
Wa tha ni
Book of Abstract – ICBMR 2017
Pa ra lle l Se ssio n 4
2 nd No ve m b e r 2017
11.15 a m - 12.45 pm
Ana i
O m b ilin 1
O m b ilin 2- 3
(AC C T)
(FIN)
(HRM, G SM)
Ta rusa n
Kua nta n
C ha ir: Sig it S. Wib o wo
C ha ir: Do ny Ab dul
C ha lid
C ha ir: Te ng ku Ezni
Ba lq ia h
C ha ir: Ba la krishna n
Pa ra sura m a n, Budi W.
So e tjipto
C ha ir: Ifte kha r Ha sa n,
Rub i Ahm a d, Za a fri A.
Huso do
Industrial
Compensation Gap,
Family Ownership, and
Risk Preferences
The Impact of
Information
Transmission and
Liquidity toward the
Indonesian Corporate
Bond Yield Spread
Human resource
management practices
in manufacturing SMEs
in Central Java,
Indonesia
Doctoral
Colloquium
Doctoral
Colloquium
Fitria Astuti Firm a n
Dwi Na stiti Da na rsa ri
O kde r Pe ndria n
Titi De wi Wa rnindra
Andre a s Pa rdya nto
Nug ro ho Ag ung Wijo yo
Sa ndra De wi
Estu Wida rwa ti
Wilsa The o do re
Anda ng Fa zri
Ha lly Ha na fia h
Do fa Purno m o
Minsa ni Ma ria ni
Elo k Sa vitri Pusp a rini
Ve ra Diya nty
Fa nny Ma rtdia nty
Anto nius Sia ha a n
The Effect of Business
Strategy on
Manipulation of Real
Activities
Eva He ria nti, Am o r
Ma rundha
The Orientation of
Microfinance on
Group Lending
Strategy: A Delphi-ANP
Evidence
Ali Sa kti
Analysis on The Impact
of Innovation
Management toward
Employee Engagement
Mediated by Teamwork
(Study Case at One of
Banking Company in
Indonesia)
Fa hrina Yulia ni
Fraud Risk Factors and
Tendency to Commit
Fraud: Analysis of
Employees’ Perceptions
A Demand Side
Analysis of The Mission
Drift Of Microfinance
Institutions In Indonesia
De si Adha ria ni
G a ne sha Ba yu Murti
The Impact Owner’s
Work-Life Balance,
Motivation, and
Personality on the MSE's
Business Performance
within Greater Jakarta
Area
Usm a n Ma no r
The Accountability Type
of Endowment (Waqf)
Institutions in ASEAN
Countries
Do dik Siswa nto ro
Corporate Governance
Determinants for
Mitigation of the
Likelihood of Financial
Distress
Ha fiz Ma hm ud Ahm a d
17
Interest Margin versus
Small Medium
Enterprises Financing:
Does Bank Ownership
Matter?
Working Condition and
Quality of Life for
Female Workers in
Garment Factories in
Indonesia, Does It Ideal?
Muha m m a d Miq da d
Ro b b a ni
Muthia Pra m e sti
Firm Profitability,
Ownership Structure
and Dividend Policy on
the Indonesian
Manufacturing
Companies
The Importance of PMO
Practices in Strategic
Initiative
Implementation: An
Empirical Study in
Indonesian Banks
Yo sm a n Busta m a n
Mo ha m m a d Ic hsa n
Book of Abstract – ICBMR 2017
Pa ra lle l Se ssio n 5
2 nd No ve m b e r 2017
01.45 - 03.30 pm
Ana i
Ta rusa n
Kua nta n
(AC C T, FIN)
(FIN)
(MKT)
C ha ir: Irwa n Ad i Eka putra
C ha ir: Rusla n Prija di
C ha ir: Wa hyuning sih
The Effect of Environmental
Disclosure on Firm Value and
Cost of Equity
Identifying Systematically
Important Banks in
Indonesia: CoVaR
Approach
A Comparison Between
the Application of Brand
Functional Value and
Brand Experiential Value
Toward Consumer
Evaluation on Local –
Foreign Branding: An
Experimental Study
Sylvia Ve ro nic a Sire g a r
Nug ro ho Ag ung Wijo yo ,
Irwa n Adi Eka p utra
Te ng ku Ezni Ba lq ia h
The Effect of Family Ownership
And Internal Control
Effectiveness on Audit Fee
Ida Ayu Ma rina C la ra Widia stiti
Oil Price Volatility Between
Oil Volatility Index and
Realized Variance To
Asean-5 Stock Return Using
DCC-GARCH
Sig it S. Wib o wo
The Effects of Green
Brand Positioning, Green
Brand Knowledge, and
Attitude towards Green
Brand on Green Products
Purchase Intention
O m b ilin 1, 2, 3
Practitioner's Track
“Improving SME’s
Competitive Advantages
and Implementation of
OVOP Policy in West
Sumatera Province”
(This session is in Bahasa
Indonesia)
Ele vita Yulia ti
Ownership Structure and
Company's Risk Taking Behavior
De si Adha ria ni
Foreign Portfolio Investment
Flows and Exchange Rate:
Indonesia Evidence
Dya h Ang g ita wa ti
Entrepreneurial Proclivity
on Performance : The Role
of Market and
Technology Turbulence As
a Moderator
Yunia Wa rdi
The Effect of Decentralization,
Task Uncertainty, and
Environmental Uncertainty on
the Managerial Performance:
Management Accounting
System Dimensions as a
Mediation Variable
The Analysis of Herding
Behavior in Indonesia and
Singapore Stock Market
Eko Rizkia nto , Do ny Ab dul
C ha lid
The Antecedents of
Donation Intention in The
Islamic
Philanthropy Organization:
The role of Social Media
Sya hrina Ma za ya
Do dy Ha pso ro
IFRS, Accounting Information
Quality, and Market Discipline:
Evidence from Indonesian
Banks
Profit-Loss Sharing Financing
and Islamic Bank Earnings
Volatility
Titi De wi Wa rnindra
Viska Ang g ra ita
Impact of Green
Accounting and Green
Culture to Green
Reputations of Hotel in
Indonesia
I Putu Asta wa
The Effect of The Working
Cabinet Reshuffle Volume II on
Abnormal Return and
Abnormal Trading Volume
Activity of The Companies
Listed in Jakarta Islamic Index
(JII)
Determinnants of Financial
Performance of StateOwned Enterprises with
Government Subsidy as
Moderator
The Antecedents of
Muslimas Attitudes and
Purchase Intention from
And Online Fashion Store
with Islamic Positioning
Am inulla h Assa g a f, Etty
Murwa ning sa ri
Sri Da rya nti
Nisful La ila
18
Book of Abstract – ICBMR 2017
PARALLEL SESSION 1
(ACCT)
PARALLEL SESSIO N I
Ana lysis the Effe c t o f Audit Fe e o n Audit
Q ua lity in ASEAN C o untrie s
Muha m m a d Ridzki & Fitria ny
Faculty of Economics and Business, Universitas Indonesia, Kampus UI Depok, Indonesia
Email of corresponding author: fitrianyamarullah@gmail.com
This study investigates the impact of audit fee to the audit quality. The
samples were Indonesia, Malaysia, Singapore, Philippines and Thailand
with the study period from 2011 to 2015. Total sample are 4.015 firm
years. Audit quality is measured by the amount of earnings
management as measured by the amount of AWCA (Abnormal
Working Capital Accruals). Audit fee divided into positive abnormal
audit fee (above normal audit fee) and negative abnormal audit fee
(below normal audit fee). The regression results show that both positive
abnormal audit fees and negative abnormal audit fee decrease the
audit quality. It is a reasonable thing, if the auditor receives audit fee
under a normal fee, then the audit quality will be low, because the
auditor is paid cheaply. However, if a positive abnormal audit fee is
also decrease the audit quality, indicating that there is a problem of
independence, it indicate the existence of economic bonding
between the auditor and the client in which the auditor is afraid of
losing that client, thus giving his clients great tolerance, among others,
by allowing earnings management performed by their client. These
results indicate that independence of auditor still needs to be
improved so that audit quality can be improved.
Ke ywo rds: Earnings management; abnormal working capital accruals;
abnormal audit fee; audit quality
20
Book of Abstract – ICBMR 2017
PARALLEL SESSIO N I
To p Ma na g e m e nt Te a m C ha ra c te ristic s (TMT) a nd
Pro fita b ility: The C a se o f Indo ne sia n SO Es
Prim a ta zya Putri & Hilda Ro ssie ta
Faculty of Economics and Business, Universitas Indonesia, Kampus UI Depok, 16424,
Indonesia
Email of corresponding author: enjum9@gmail.com
This research aims to analyze the effects of Top Management Team
(TMT, i.e., Board of Commissioners/ BOC and Boards of Directors/ BOD)
characteristics on profitability of Indonesian State Owned Enterprises
(SOEs). This research uses 175 SOEs firm-years observation as the
sample, covering the period of 2010-2014. TMP characteristics included
are: Education, Experience, Size and Gender. Net Profit Margin (NPM)
and Net Operating Profit (NOP) are used as profitability measures. NPM
is the bottom line profit which serve as the basis for determining
dividend to the State as well as TMT bonus, while NOP indicate SOEs
core competence.
In general, most of BOC characteristics are associated with the bottom
line profit NPM which concern more on dividend as the main interest of
the State as owner as well as TMT’s interest in term of bonus. On the
other hand, BOD characteristics have more balanced associations with
both the State/TMT’s interests, as well as on SOEs core competence.
More importantly, this research provides empirical evidence regarding
the effect of TMT characteristics in the unique setting of Indonesian
SOEs. Accordingly, besides pursuing commercial objectives, Indonesian
SOEs have to consider social obligations attached to the State as
dominating and controlling owner, as required by article 33 paragraph
3 of the 1945 Indonesian Constitution.
Ke ywo rds:
SOEs, TMT Characteristics, BOC/BOD Educational
Background; BOC/BOD Educationally-fit; BOC/BOD Tenure; BOC/BOD
Size; Women BOC/BOD ; SOEs Profitablity; Social Obligation
21
Book of Abstract – ICBMR 2017
PARALLEL SESSIO N I
The Effe c t o f He a d o f Re g io n C ha ra c te ristic s o n Lo c a l
G o ve rnm e nt Fina nc ia l Pe rfo rm a nc e : The C a se o f Indo ne sia
Enda ng Sri Ra ha yu & Do ddy Se tia wa n
Universitas Sebelas Maret, 57126 Surakarta, Indonesia
Email of corresponding author: ending.srira@gmail.com
This study investigates the effect of head of region characteristics on
local government financial performance. The head of region
characteristics consists of age, tenure, education level, gender and
affiliation of political parties. The sample of the study consists of 1,100
Local Government Financial Report which has been audited by
Supreme Audit Board during of 2011 – 2015 period. Financial
performance is measure using budget absorption and the ratio of
regional autonomy. The results of the study find that age of the head of
the region has a positive effect on the financial performance of local
government, tenure of the regional head has a negative effect,
education level of the regional head has no effect, female head of the
region has a negative effect, and affiliation of local political parties has
a negative effect on the financial performance of local government.
Ke ywo rds: head of region characteristics, local government, financial
performance, political party
22
Book of Abstract – ICBMR 2017
PARALLEL SESSIO N I
The Effe c t o f Pro fita b ility, Ta ng ib ility Asse ts, C o rpo ra te Ta x,
No n- de b t Ta x Shie ld a nd Infla tio n ra te to the Fina nc ia l
C a pita l Struc ture o n the Ma nufa c ture C o m pa nie s Liste d in
the Indo ne sia sto c k Exc ha ng e
Ab dilla h Arif Na sutio n ˡ, Ikhsa n Sire g a r ², & Ra hm a nsya h Pa ng g a b e a n ˡ
ˡDepartment of Accounting, University of Sumatera Utara, Almamater Rd Campus
USU, Medan, North Sumatera 20155, Indonesia
² Department of Industrial Engineering, University of Sumatera Utara, Almamater Rd
Campus USU, Medan – North Sumatera 20155, Indonesia
Email of corresponding author: badinst@usu.ac.id
This research is purposed for getting empirical evidence about the
effect of profitability, tangibility assets, corporate tax, non-debt tax
shield and inflation rate to the financial capital structure on the
Manufacture Companies listed in the Indonesia Stock Exchange. The
hypothesis research is return on asset, tangibility assets, corporate tax,
non-debt tax shield and inflation rate are significantly influence either
partially or simultaneously on the company’s financial capital structure.
The Population of this research are the manufacture companies
consumption goods sector which are listed on Indonesia Stock
Exchange in 2014 until 2016. The total samples of this research are the
36 Manufacture Companies. The method of statistical data analysis
which is used is descriptive statistics and test of classical assumption
and also multiple linier regression. Based on the result of data
processing is showed that partially profitability and Non-debt tax shield
are negative influential on the Financial Capital Structure, and
Tangibility Assets positive influential to the Financial Capital Structure.
Meanwhile the Tax Corporate and Inflation Rate are not influential to
the Financial Capital Structure of Manufacture Companies listed in
Indonesia Stock Exchange. Simultaneously showed that profitability,
Tangibility Assets, Corporate tax, Non-Debt taxshield and inflation rate
are significantly influence to the Financial Capital Structure of the
Manufacture Companies Listed in Indonesia Stock Exchange.
Ke ywo rds: Profitability; tangibility assets; corporate tax; non-debt tax
shield and inflation; manufacture companies
23
Book of Abstract – ICBMR 2017
PARALLEL SESSIO N I
Ma na g e rs’ C o st Stic kine ss Be ha vio r: Em pire Building Mo tive ,
Bo nus Sc he m e Inc e ntive a nd C o m pa nie s’ Ea rning Le ve l
Ta m m y Za g ita & Hilda Ro ssie ta
Faculty of Economics and Business, Universitas Indonesia
Email of corresponding author: enjum9@gmail.com
This study is aimed to examine the manager cost stickiness behavior
and the effect of earnings target incentive. Cost stickiness is the
phenomena of asymmetry cost behavior in which the increased cost in
the condition of sales increase is higher than the decreased cost when
sales fall. Managers tend to reduce the cost lower when the sales fall
due to the adjustment cost and managers’ expectation toward the
increase sales in the future. Cost stickiness behavior is also reinforced by
the managers’ incentive to build an empire building by keeping the
company size to remain big at the cost of company’s lower earnings.
However, managers’ bonus scheme incentive, which are based on
certain target earning level, eliminate the cost stickiness behavior. This
research is conducted on 123 manufacturing companies listed in
Indonesian Stock Exchange during the period of 2009 to 2015. The
empirical result indicates that in general, managers of the
manufacturing companies in Indonesia are having cost stickiness
behavior. Yet, managers of companies with level of earnings which are
closed to the critical level for claiming bonus are having incentive to
maintain high earning level and avoid decreased earnings. Therefore,
managers of these companies do not demonstrate the cost stickiness
behavior
Ke ywo rds: Asymmetric cost behavior; empire building motive; bonus
scheme incentives; cost stickiness behavior.
24
Book of Abstract – ICBMR 2017
PARALLEL SESSION 1
(FIN)
PARALLEL SESSIO N I
C lo sing Pric e Ma nipula tio n in Indo ne sia Sto c k Exc ha ng e
Ma hm uda h Fa tluc hi & Ro fiko h Ro khim
Department of Management, Faculty of Economics and Business, Universitas
Indonesia, 16424 Depok, Indonesia
Email of corresponding author: mahmudah51@ui.ac.id
This study examined closing price manipulation in Indonesia Stock
Exchange using return correlation, return volatility and volume shifting.
We use the data sample during September 2016 to February 2017.
From twenty biggest market capitalizations, more than 50% of the
sample was indicated having closing price manipulation. This study also
featured deep interview with market practitioners, fundamental and
internal external events. We found that 31% of information disclosure
reported to IDX after market close has effect on price reversal. There is
also significant proportion of volume shifts to pre-closing indicates the
economic importance of the last minutes of trading and the
heightened volatility suggests that closing price contains transitory
component.
Ke ywo rds: Closing price manipulation; information disclosure; pre-
closing; price reversal; transaction volume; volatility
26
Book of Abstract – ICBMR 2017
PARALLEL SESSIO N I
C a pita l Struc ture De te rm ina nts o f SME Sha ria h C o m plia nt
C o m pa nie s
Ma zila Md- Yusuf
Arshad Ayub Graduate Business School, Universiti Teknologi MARA, Shah Alam, 40450,
Selangor, Malaysia
Email of corresponding author: mazila370@salam.uitm.edu.my
Capital structure implies the components of capital in a company and
has implications on the total financing cost of a company. This study
examines the capital structure of Malaysian Small and Medium
Enterprise (SME) shariah compliant companies that are listed in the
Bursa Malaysia. The aim of the study is to identify the factors and the
relationship of these factors with the capital structure of the SME
shariah compliant companies. In this study, 18 SME shariah compliant
companies were examined from the period of 2005 until 2014. Capital
structure was proxied by debt ratio and the determinant variables used
in this study were age of firm, firm’s asset tangibility, firm’s liquidity, firm’s
profitability, firm’s growth rate and firm’s taxation payment. The pooled
ordinary least square (POLS) multiple regression estimation was used
and the findings showed that age of firm, firm’s asset tangibility and
firm’s liquidity are the determinants that influenced the capital
structure of the SME shariah compliant companies. The results also
indicated that firm’s asset tangibility, firm’s growth rate and firm’s
taxation payment have positive relation while age of firm, firm’s
liquidity and firm’s profitability have negative relation with the debt
ratio of the SME shariah compliant companies listed in the Bursa
Malaysia.
Ke ywo rds: capital structure; capital structure theories; leverage; SMEs;
shariah compliant companies
27
Book of Abstract – ICBMR 2017
PARALLEL SESSIO N I
Do e s the re lig io us va lue s o f C EO a ffe c t the c a pita l struc ture ?
Rida Ra him , C ynthia Afria ni & Ro fiko h Ro khim
Faculty of Economics and Business, Universitas Indonesia Depok, Indonesia
Email of corresponding author: rida_rahim95@ymail.com
The decision of the company's capital structure is related by behavior.
The religious values of the CEO are reflected in religion, moral hazard
and see the board of CEO at the meeting and the age of education.
Studies used data panels of 2010-2015 period of sample 231
companies, observation 1386, with data panel method of Fixed Effect
Model. Different test results show religious, fraud, size, profitability and
age of the company are different for family and non family enterprises.
We whose Christian CEO have higher debts than other family members
of the board of CEO and we are companies where Christian CEO with
family ownership as significant moderate variables have higher debt
than other companies. We are also CEO of companies that stumble
moral hazard cases have a significantly higher debt than the CEO of
other companies and CEO of companies with family ownership as a
moderating variable that stumbles fraud cases significantly have a
debt higher than other CEO. The results we get in accordance with our
prepositions, thus making this important decision between behavior
and family to the decision of capital structure.
Ke ywo rds: Religion; moral hazard; attendance; age; education; family
and non family firm
28
Book of Abstract – ICBMR 2017
PARALLEL SESSIO N I
C o m pe titio n Ana lysis o f Ba nking Industry in Indo ne sia : We re
the e ffic ie nc y tra nsfe rs ha ppe ne d?
Ac hm a d Fa dlo li & Do ny Ab dul C ha lid
Faculty of Economics and Business, Universitas Indonesia, Kampus baru UI, Depok
16424, Indonesia
Email of corresponding author: donny.abdul@ui.ac.id
The purpose of the research is to conduct an analysis on the level of
competition of the banking industry in Indonesia. Using the data from
107 conventional banks which operates from 2005 to 2014, this
research utilizes Profit Elasticity Model to measure the level of
competition. The results show the decreasing of the level of
competitiveness in the Indonesia Banking Industry. The result also
indicates that big banks are facing a lower level of competition
compared to the banks that are considered medium or small.
Moreover, the regional development banks are facing the lowest level
of competition. In general, the result indicates there is no transfer in
efficiency. The banks that are considered relatively as more efficient
would choose to attempt to aim for higher profit compared to
transferring the advantage in terms of efficiency to lower the interest
level to broaden the market.
Ke ywo rds: Bank; Competition; Profit Elasticity Model; Boone Indicator;
Indonesia
29
Book of Abstract – ICBMR 2017
PARALLEL SESSIO N I
C ro ss b o rde r b a nking se c to r: Evide nc e o f dive rsific a tio n a nd
fina nc ia l sta b ility in Asia Pa c ific
Adhya ti Prita kina ri & Vive rita
Department of Management, Faculty of Economics and Business, Universitas
Indonesia, Depok, Indonesia
Email of corresponding author: viverita.d@ui.ac.id
A glorious trend of globalization in the last two decades provokes
banks to intensify their participation to get benefits from the
opportunity in larger market, such as deregulation, more advanced
communication and technology, as well as better economic condition
(Claessens & Horen, 2012). Despite the benefit, member country of the
cooperation is also facing increasing competition among themselves
and in the region (Remolona & Shim, 2015). Yet, this opportunity also
rise the risk of financial instability (Remolona & Shim, 2015) due to
borderless economy as a result of global integration (Ashraf, Ramady,
& Albinali, 2016). Theory suggests that banking competition affects the
degree of bank’s financial innovation, such as increasing revenues
from non-traditional activities (Claessens & Laeven, 2004), by
diversifying their income (Pennathur, Subrahmanyam, & Vishwarao,
2012). This is inline with the c o nve ntio na l wisd o m (Smith, 1984), that noninterest income are more stable and fee-based income will reduce
bank’s risk. In the middle of sweltering