Nurdiono Nurdiono
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ACCOUNTING PERFORMANCE AS AN ANTECEDENT FACTOR OF CHIEF EXECUTIVE OFFICER TURNOVER IN INDONESIA

Journal of Indonesian Economy and Business Vol 26, No 2 (2011): May
Publisher : Journal of Indonesian Economy and Business

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Abstract

This study is aimed to provide empirical evidence about the usefulness of accounting information in the issue of CEO turnover. Previous research shows the results that CEOturnover is inconclusive with respect to its antecedent factors and consequences. It is also very rarely observed in Indonesia, and therefore strongly encourages the author toconduct this study. The samples of this study is all the companies performing turnover (either routine or non-routine) at the level of the companys top leaders in office asPresident Director. The sample included 81 CEOs which experienced turnover from 1998 to 2006 period, and compared with a control group referring to companies that does not perform CEO turnover during the observation period (nine years). The final sample that we used for testing the accounting data is as much as 140 companies, consisting of 81 companies that performed turnover and 59 companies that did not. The results of study show that accounting data (i.e. total assets, total sales, ROA, ROE and earnings), indicates a significant negative effect on turnover decisions, while current ratio does not. In additional tests, we find that the accounting performance on non-routine turnover compares favourably with CEO turnover on the type of routine. This result indicates a bargaining position of CEOs at a company that does change regularly. Meanwhile, worse accounting performance will have the potential for CEOs to be replaced (down position or enter into a council of commissioners) and even be laid off from the company.Keywords: CEO turnover, accounting performance, antecedent factors 

THE EFFECT OF BUDGETS’ PROPORTION AND NON-FINANCIAL FACTORS ON THE AUDIT RESULTS OF LOCAL GOVERNMENTS’ FINANCIAL STATEMENTS IN INDONESIA

Journal of Indonesian Economy and Business Vol 31, No 2 (2016): MAY
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

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Abstract

Local governments’ financial statements that obtain unqualified opinion until the end of 2011 were still relatively few in number. This study aims to empirically examine the effect on the audit results of the financial statements of local governments in Indonesia of the budgets’ proportion, the effectiveness of the internal audit, the follow-up to the Supreme Audit Board’s findings, the Supreme Audit Board’s opinions from earlier periods, and the competence of the available human resources to understand the audit results of the Supreme Audit Board. Budget management has become very important since it lays out a detailed plan for the expenditure and revenue of the local governments, so that it can be accountable to the public. This study used a sample of 434 Indonesian Local Governments’ financial statements of 2011 and a logistic regression analysis. This study used primary and secondary data to uncover the phenomena that the local governments’ financial statements which received an unqualified opinion from the Supreme Audit Board were still relatively few in number. The results of this study showed that the budgets’ proportions of local governments are negatively significant in affecting the audit results of the financial statements of the local governments. The Supreme Audit Board’s opinions from earlier periods positively influenced the audit results of the financial statements of local governments. Whereas the variables of the effectiveness of internal controls, the follow-up to the Supreme Audit Boards’ findings, and the competence of the human resources do not significantly influence the audit results of the financial statements of local governments. The results of this study can contribute both theoretically and practically to the quality of the local governments’ financial statements. Keywords: budgets’ proportion, human resources, competency, opinions, audit quality. 

ACCOUNTING PERFORMANCE AS AN ANTECEDENT FACTOR OF CHIEF EXECUTIVE OFFICER TURNOVER IN INDONESIA

Journal of Indonesian Economy and Business Vol 26, No 2 (2011): May
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Original Source | Check in Google Scholar

Abstract

This study is aimed to provide empirical evidence about the usefulness of accounting information in the issue of CEO turnover. Previous research shows the results that CEOturnover is inconclusive with respect to its antecedent factors and consequences. It is also very rarely observed in Indonesia, and therefore strongly encourages the author toconduct this study. The samples of this study is all the companies performing turnover (either routine or non-routine) at the level of the companys top leaders in office asPresident Director. The sample included 81 CEOs which experienced turnover from 1998 to 2006 period, and compared with a control group referring to companies that does not perform CEO turnover during the observation period (nine years). The final sample that we used for testing the accounting data is as much as 140 companies, consisting of 81 companies that performed turnover and 59 companies that did not. The results of study show that accounting data (i.e. total assets, total sales, ROA, ROE and earnings), indicates a significant negative effect on turnover decisions, while current ratio does not. In additional tests, we find that the accounting performance on non-routine turnover compares favourably with CEO turnover on the type of routine. This result indicates a bargaining position of CEOs at a company that does change regularly. Meanwhile, worse accounting performance will have the potential for CEOs to be replaced (down position or enter into a council of commissioners) and even be laid off from the company.Keywords: CEO turnover, accounting performance, antecedent factors 

Financial and Non Financial Factors on Going-Concern Opinion

The Winners Vol 13, No 2 (2012): The Winners Vol. 13 No. 2 2012
Publisher : Bina Nusantara University

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Abstract

Companys ability to survive is a fundamental uncertainty faced in the preparation and auditing financial statements. Provision of going-concern opinion on these financial statements the company is still being debated. Public Accountant Professional Standards in section 341 states that the auditor is responsible for evaluating whether there is a major doubt on the ability of entities in the continued survival of the appropriate period of time, not more than one year from the date of the financial statements being audited. This research analyzed the financial and non financial factors that affected the provision of going-concern opinion. This research used samples of 63 companies with 315 observations, taken from years 2005-2009. The logistic regression analysis showed that the companys financial condition variables, mitigating evidence, and disclosure significantly influence the acceptance of going-concern opinion. Enterprise risk was not significant at propensity of going-concern opinion.

ANALYSIS OF CEO TURNOVER IN INDONESIA: DOES UNDERPERFORMED ORGANIZATION CAUSE CEO TURNOVER? CASES OF MERGER COMPANIES IN INDONESIA

Journal of Economics, Business & Accountancy Ventura Vol 13, No 2 (2010): August 2010
Publisher : STIE Perbanas Surabaya

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Abstract

The results of previous research on the relationship between organizational performance and CEO turnover have been inconsistent so far. It has shown that the lower the performance, the greater the likelihood of CEO turnover. This negative relationship has been found in many subjects in organization. On the other hand, some studies found a positive relationship between job performance and turnover (in which the higher the performance, the greater the likelihood of turnover). Using a measurement of longitudinal design, this research tested organizational performance, such as stock and financial performance of top management turnover among 129 target and non-acquired firms over a five-year period. This study found significant relationships between them. The results indicated that poor organization performance triggered CEO turnover in Indonesia, especially in merger firms. This result also have an implication for Indonesian business such how organizational performance can affect a merger or an acquisition and, as a straight forward, it also affects the management of an acquired company.

The effects of auditor reputation, financial condition, and potential intensive economy on artificial auditor rotation

Journal of Economics, Business & Accountancy Ventura Vol 18, No 2 (2015): August - November 2015
Publisher : STIE Perbanas Surabaya

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Abstract

This research empirically re-tests the effects of auditor reputation, client’s financial condition, and potential intensive economy on artificial auditor rotation. The issue of audit quality is still interesting for the researchers to empirically. Auditors are demanded to execute their profession independently. To maintain their being independent, this profession is regulated in the Decree by the Minister of Finance No.17/PMK.01/2008 on public accountant service. It is mandatory for auditor rotation in that regulation and this is interesting to study more profoundly because in Indonesia this phenomenon of artificial rotation is found. Artificial auditor rotation indicates a condition in which, conceptually, there has been a change of the auditor but substantially the relationship between the auditor and the client is still going on. This research uses sample of companies listed in Indonesia Stock Exchange in 2002-2011, by purposive sampling technique. The analysis of the research was done using logistic regression. The results of the research show that auditor reputation affects auditor rotation. Yet, company’s financial condition and potential incentive economy do not affect auditor rotation. This research is expected to deepen the concept of audit quality, whereas in practice it is expected to provide inputs for regulating auditor rotation. Auditors are expected to show real auditor rotation.

The effect of audit firm tenure in artificial rotation on audit quality

Journal of Economics, Business & Accountancy Ventura Vol 17, No 3 (2014): December 2014
Publisher : STIE Perbanas Surabaya

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Abstract

This study aimed to examine the effect of auditor tenure in artificial rotation on audit quality. Tenure shows the relationship between the audit firms and a client that is measured in years. Artificial rotation of auditor (audit firm) indicates a condition that, conceptually, there has been a change of auditors leading to the auditor relationship with the client to be disconnected, whereas substantive auditor-client relationship is ongoing. Formally, the auditor does not violate the rules and is still able to audit for the same client. Yet, in the long-term, it could affect the audit quality. The longer auditor tenure, the closer auditor-client relationship is. Thus, the auditor accommodates the interests of the client at the client's financial statements, including the practice of discretionary accruals as a proxy for audit quality. The samples were selected by purposive sampling method of the companies listed in Indonesia Stock Exchange from the year 2002-2010, with multiple linear regression approach. It shows that tenure, and total assets do not affect the quality of the audit while the size of the audit firm, and debt statistically have significant effect on audit quality. Future studies may extend the period of observation, and using other audit quality measures, such as fraud, and the propensity of auditor to issue going concern opinion..