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INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES
International Research Journal of Business Studies (IRJBS), with registered number ISSN 2089-6271 (Print) and ISSN 2338-4565 (Online), is an open access and peer-reviewed scientific journal published by Prasetiya Mulya Publishing, Universitas Prasetiya Mulya. IRJBS published three times a year (December-March, April-July, and August-November).
Articles
167
Articles
Service Recovery and Its Effect on Students’ Satisfaction, Trust, and WOM Communication

Harsono, Soni ( Departement of Management STIE Perbanas Surabaya )

INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES Vol 11, No 2 (2018): August-November 2018
Publisher : Universitas Prasetiya Mulya

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Abstract

This study aims to examine the effect of service recovery, using distributive justice, procedural justice, and interactional justice approaches, on students’ satisfaction, trust, and WOM at excellent, flagship and non-flagship private universities in East Java, Indonesia. A total of 240 students participated in this study. Sampling was conducted using convenience sampling technique. Data analysis was done using regression assisted by SPSS and WarpPLS program. The results of this study provide university managers understanding that the low bargaining position perceived by the students has an impact on various aspects of teaching and learning process which eventually leads to the levels of students’ satisfaction, trust, and WOM. This study also suggests what should be done in the service recovery policy made by each university to increase the students’ satisfaction, trust, and positive WOM.Keywords:  Service recovery, Satisfaction, Trust and Word of mouth (WOM) https://doi.org/10.21632/irjbs.11.2.93-112

Corporate Finance and Firm Value in the Indonesian Manufacturing Companies

Handriani, Eka ( Faculty of Economics and Business, University of Darul Ulum Islamic Centre Sudirman, Jl. Tentara Pelajar No. 13, Ungaran, Central Java, Indonesia ) , Robiyanto, Robiyanto ( Faculty of Economics and Business Satya Wacana Christian University Jl. Diponegoro No. 52-60 Salatiga 50711 Central Java Indonesia )

INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES Vol 11, No 2 (2018): August-November 2018
Publisher : Universitas Prasetiya Mulya

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Abstract

This study examines the impact of dividend policy, investment decision, and funding policy on firm value in the Indonesian manufacturing companies. This study was conducted by using 178 manufacturing companies listed in the Indonesia Stock Exchange (IDX) during the period 2009 - 2016. Samples were taken by using a purposive sampling method. This study aims to examine the firm value’s main determinants of the manufacturing companies in Indonesia based on basic theory of capital structure through building theoretical model. Partial Least Square through path analysis was used to analyze the data. The findings show that dividend policy, investment decision, and funding policy have a positive impact on the Indonesian manufacturing companies’ firm value. This study supports the theory of pecking order and agency theory. Keywords: Dividend policy, Investment decision, Funding Policy, Firm Value, Pecking Order Theory, Agency Theory https://doi.org/10.21632/irjbs.11.2.113-127

Herding Behavior in Indonesian Investors

Fransiska, Maria ( Universitas Katolik Indonesia Atma Jaya Jl Jenderal Sudirman No 51 Jakarta Selatan ) , Sumani, Sumani ( Universitas Katolik Indonesia Atma Jaya Jl Jenderal Sudirman No 51 Jakarta Selatan ) , Pangestu, Stevanus ( Universitas Katolik Indonesia Atma Jaya Jl Jenderal Sudirman No 51 Jakarta Selatan )

INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES Vol 11, No 2 (2018): August-November 2018
Publisher : Universitas Prasetiya Mulya

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Abstract

This research attempts to investigate the herding behavior of the companies that invested in IDX LQ45 Index during 2014 through 2016. Herd behavior is the tendency of investors to follow other investors’ actions in the market. LQ45 was chosen as it comprises the most heavily-traded stocks of the Indonesian Stock Exchange. This research used Vector Autoregressive model to determine the effects of size and market return on the herding behavior. The Granger causality test suggests that there are dynamic interactions: (i) between size and herding behavior; and (ii) between market return and herding behavior. In addition, Variance Decomposition and Impulse Response reveal that market capitalization (size) has variable of the greater role in defining herding behavior, compared to that of market return.  Keywords: Herding Behavior, LQ 45, stock index, Vector Autoregression (VAR) https://doi.org/10.21632/irjbs.11.2.129-143

Corporate Governance Disclosure in Nigerian Listed Companies

Adefemi, Folashade ( University of The West of Scotland, UK ) , Hassan, Abeer ( University of The West of Scotland, UK ) , Fletcher, Mary ( University of The West of Scotland, UK )

INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES Vol 11, No 2 (2018): August-November 2018
Publisher : Universitas Prasetiya Mulya

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Abstract

Corporate Governance Disclosure (hereafter CGD) is the extent to which an organization transparently discloses its governance practices and strategies to stakeholders (UNCTAD, 2011). This paper aims to examine the impact of corporate governance disclosure on firm performance, board composition, and company size. The study used secondary data from companies listed on the Nigerian stock exchange and examined 31 companies across 5 sectors from 2010-2013. This study used panel regression techniques and the results indicate that asset turnover, board composition and number of employees are all significantly related to corporate governance disclosure. However, return on assets, return on equity and earnings per share are not significant. Overall, this study found that listed companies compliance with the Securities Exchange Commission (SEC) Disclosure requirements has a positive influence on corporate governance performance for the firms listed in the Nigerian Stock Exchange.Keywords: Corporate Governance Disclosure, SEC Codes. Nigeria. 

Consumer Global Orientation and Its Impact on Consumers’ Positive Emotions

Sulhaini, Sulhaini ( Department of Management, the University of Mataram ) , Dayani, Rahman, Sulaimiah, Sulaimiah, Rusdan, Rusdan

INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES Vol 11, No 2 (2018): August-November 2018
Publisher : Universitas Prasetiya Mulya

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Abstract

The objective of this study is to examine the role of consumer global orientation and the inferior image of foreign brands in young, educated consumers admiration for foreign brands and willingness to pay more for foreign brands. As its sample, this study used students of the University of Mataram, with data collected in a classroom setting following the end of lectures using a carefully developed instrument that was carefully developed and tested through a stepwise procedure. Its findings suggest that consumer global orientation and the inferior image of local brands have no direct effect on consumers willingness to pay more for foreign brands. Nonetheless, they do indirectly affect consumer intentions by creating positive emotions about foreign brands. This positive emotion, i.e. foreign brand admiration, seems to have a critical role, as it fully mediates the effects of the two studied constructs. Consumer global orientation and the inferior image of local brands nurture consumers positive views of foreign brands, which in turn increase consumer willingness to pay higher prices for foreign brands. The paper also conceptualizes consumer global orientation and provides important managerial and recommendations for future research.Keywords: Consumer global orientation, inferior image of local brands,foreign brand admiration https://doi.org/10.21632/irjbs.11.2.81-92

Impact of Working Capital Management on Profitability of the Selected Listed FMCG Companies in India

Jana, Debabrata ( Research Scholar, Vidyasagar University, Purba Medinipur, West Bengal. )

INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES Vol 11, No 1 (2018): April-July 2018
Publisher : Universitas Prasetiya Mulya

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Abstract

Working capital management plays a vital role in the success of businesses because of its effect on profitability and liquidity. The purpose of this study is to examine the relationship and the efficiency of the working capital management strategies of FMCG Company in India. The study used secondary data collected from all the fifteen listed FMCG Company covering the period from 2013-2017. Using panel data analysis, the study finds a significantly positive and negative relationship between profitability and working capital management. Therefore, efficient management of working capital for FMCG Company not only has a positive relationship with profitability but significantly impacts on such firm’s profitability.Keywords:  Working Capital Management, Profitability, Fixed Effect Model, Random Effect Model, Hausman Test https://doi.org/10.21632/irjbs.11.1.21-30 

The Role of Competencies and Education in Increasing Entrepreneurial Intention in Creative Economy

Sandroto, Christine Winstinindah ( Atma Jaya Catholic University of Indonesia ) , Ramawati, Yussi ( Atma Jaya Catholic University of Indonesia ) , Darmoyo, Syarief Darmoyo ( Atma Jaya Catholic University of Indonesia )

INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES Vol 11, No 1 (2018): April-July 2018
Publisher : Universitas Prasetiya Mulya

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Abstract

The creative economy is being increasingly encouraged by the Indonesian government, the existing entrepreneurs are mostly engaged in the culinary industry. This study aims to describe the role of competencies and education in increasing entrepreneurial intention in the creative economy. Three hundred and five questionnaires were distributed to creative entrepreneurs, consisting of 162 respondents in Jakarta and 143 in Balikpapan using convenience sampling. Research findings show that there is no difference between the mean scores of entrepreneurial competencies in Jakarta and Balikpapan. Furthermore, the level of education has a positive effect on (i) entrepreneurial intention, (ii) entrepreneurial professional attraction, and (iii) entrepreneurial networking support. There is a positive relationship between education level and monthly revenue, as well as between entrepreneurial competencies and monthly revenue. The findings of this research would suggest government and education institution to further develop entrepreneurship education and train them with various methods and to cultivate interests in other creative sub-sectors.Keywords: entrepreneurial competencies, education level, creative economy, entrepreneurial intention https://doi.org/10.21632/irjbs.11.1.31-44 

CSR Practice and Asymmetry Information of Indonesian Public Listed Companies

Usman, Berto ( University of Bengkulu - Indonesia ) , Yennita, Yennita ( University of Bengkulu - Indonesia )

INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES Vol 11, No 1 (2018): April-July 2018
Publisher : Universitas Prasetiya Mulya

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Abstract

Our study examines the relationship between Corporate Social Responsibility (CSR) practice and asymmetry information in the Indonesian Stock Exchange. We conjecture that these two concepts are negatively associated. To empirically test their association, we use the availability of CSR report, environmental score, and social score as the surrogate indicators of CSR practice. While, bid/ask spread (BAS) and price volatility (PV) are employed as the proxies of Asymmetry information. Using the quarterly data spans from the second quarter of 2012 to the fourth quarter of 2016, we collect as many as 39 companies that voluntarily disclosed their CSR-related information. To investigate the importance of CSR practice in the truncation of asymmetry information, we use the univariate analysis and multivariate analysis. We find that CSR practice is negatively associated with the asymmetry information. Our results remain consistently after we control for the firm-specific, year, and industry fixed-effect.Keywords:  CSR, asymmetry information, environmental, social score https://doi.org/10.21632/irjbs.11.1.45-66 

Is There Any Sectoral Cointegration in Indonesia Equity Market?

Natasha, Gabriella ( Universitas Prasetiya Mulya ) , Surya, Aileen Clarissa ( Universitas Prasetiya Mulya )

INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES Vol 10, No 3 (2017): December 2017-March 2018
Publisher : Universitas Prasetiya Mulya

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Abstract

This research analyzes short and medium-run cointegration relationship among 9 sectoral indices in Indonesia equity market (JCI), using 2012-2016 weekly closing prices as the data. Researchers analyzed the relationship among these sectors using Johansen-Julius Cointegration Test and predict the causal relationship using Engle-Granger Causality and model the causalities using Vector Error Correction Model.Researchers findings based on the empirical results of Johansen cointegration tests are there is no cointegration in the short-run as the sector indices performance are caused by unique moving factors that affect all sectors differently. However, there is a medium run relationship among the sectors as they are moved by macroeconomic and political conditions towards the same direction. Other two methods, Engle-Granger and VECM, are also supporting the results from Johansen cointegration tests. The findings from this research can be useful as an insight for investors and fund managers in minimizing portfolio risk by using sectoral diversification, which based on the research can only be applied in the short run period.Keywords: Stock Market, Sectoral Integration, Portfolio Diversification, JCI sectors. https://doi.org/10.21632/irjbs.10.3.159-172 

Performance Evaluation of Stock Price Indexes in the Indonesia Stock Exchange

Robiyanto, Robiyanto ( Faculty of Economics and Business Satya Wacana Christian University Jl. Diponegoro No. 52-60 Salatiga 50711 Central Java Indonesia )

INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES Vol 10, No 3 (2017): December 2017-March 2018
Publisher : Universitas Prasetiya Mulya

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Abstract

This study evaluates the performance of stock price indexes in the Indonesia Stock Exchange by using Sharpe Index, Treynor Ratio, Jensen Alpha, Adjusted Sharpe Index, Adjusted Jensen Index and Sortino Ratio. The stock price indexes evaluated are the Jakarta Composite Index (JCI), Sectoral Index consisting of 10 sectoral stock price indexes, LQ45 Index, Jakarta Islamic Index (JII), Kompas100 Index, BISNIS-27 Index, PEFINDO25 Index, SRI-KEHATI Index, Main Board Index (MBX), Developed Board Index (DBX). Data used in this research is daily closing data of stock price indexes studied and risk-free interest rate represented by BI rate during period January 3, 2011, until July 17, 2017. Data were obtained from Bloomberg. The results of this study indicate that only three stock price indexes perform better than risk-free and stock-market instruments when calculated by using Sharpe Index, Treynor Ratio, Jensen Alpha, Adjusted Sharpe Index, and Adjusted Jensen Alpha Index. Meanwhile, when calculated by using the Sortino Ratio, the stock price index of miscellaneous industry sector has the best performance.Keywords: Sharpe Index, Treynor Ratio, Jensen Alpha, Adjusted Sharpe Index, Adjusted Jensen Alpha Index, and Sortino Ratio. https://doi.org/10.21632/irjbs.10.3.173-182