This study investigates the relationships between audit reputation, company size, audit fees, and auditor rotation within manufacturing companies listed on the Indonesia Stock Exchange (BEI) from 2018 to 2022. The aim is to analyze the impacts of these factors on auditor rotation decisions, which are hypothesized to enhance trust and transparency in financial reporting. Data from 84 manufacturing companies were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that larger companies and those with higher audit fees are more likely to change their auditors. However, audit reputation neither influences nor moderates the relationship between these factors and auditor turnover. These insights contribute to understanding the patterns of auditor turnover in Indonesia's manufacturing sector, suggesting that larger firms and those with higher audit fees are inclined to consider changing auditors regardless of the auditor's reputation.
The evaluation of companies' sustainability performance in generating shareholder wealth is increasingly reliant on environmental, social, and governance (ESG) ratings. This study introduces a novel approach by applying data envelopment analysis (DEA) as an alternative to conventional linear regression methods. A conceptual framework has been developed to integrate E-, S-, and G-scores into DEA models, enabling a more nuanced interpretation of whether a company’s ESG efforts contribute to or undermine wealth creation. This approach also assesses the relative effectiveness of a company’s ESG initiatives compared to its peers, taking into account key wealth creation variables. An empirical analysis was conducted on a sample of 80 listed South African companies, calculating the technical efficiency of each company. The findings indicate that linear regression analysis falls short in benchmarking individual companies' ESG efforts in relation to shareholder wealth creation. In contrast, DEA effectively addresses this challenge by offering a robust benchmarking tool. The practical implications of this study are significant, as the concepts of 'fruitless' and 'fruitful' ESG efforts introduced here provide companies with a transferable framework for comparing their sustainability performance against peers. The empirical application underscores the value of DEA in distinguishing between productive and counterproductive ESG strategies, thereby enhancing the precision of sustainability assessments in the context of shareholder wealth.
In the contemporary digital era, individuals are afforded the convenience of instantaneous transactions through electronic wallets (e-wallets) when engaging in online shopping. This study aims to investigate the extent to which the adoption of e-wallets influences impulsive purchasing behavior, with a particular focus on the moderating effects of low distribution costs (LDC) and short transit times. A descriptive quantitative methodology was employed, targeting users of Indonesian e-wallets. A non-probability research design was utilized, specifically employing snowball sampling techniques. Data were collected through a Google Forms questionnaire, yielding 297 responses. Partial Least Squares (PLS) analysis was conducted to evaluate the data. The results revealed that perceived risk, perceived usefulness, and perceived ease of use (PEOU) significantly and positively impacted the adoption of e-wallets. However, the adoption of e-wallets did not necessarily result in impulsive purchases driven by utilitarian needs. Moreover, LDC and short transit times did not moderate the relationship between e-wallet usage and impulsive buying (IB) behavior. This suggests that most respondents did not use e-wallets for purchases motivated solely by practical considerations, even when LDC and quick transit times were available. These findings contribute to the existing literature on digital money and e-wallets, offering insights for online merchants and digital wallet providers. It is recommended that digital wallet providers enhance accessibility, improve transparency regarding customer data protection, and disseminate information about the benefits and utility of e-wallets to foster wider adoption. Online retailers are encouraged to offer diverse payment options to attract customers. This study provides valuable implications for the optimization of customer service in the context of Indonesia.
Internal audits serve as critical assurance services that support the enhancement of operational efficiency and financial performance within organizations. This study examines the role of internal auditing in improving these aspects in privatised financial institutions, specifically focusing on BLESSING Finance. Given the profit-driven orientation of management in such institutions, there is a pressing need to identify strategies that maximize profitability. Enhancing operational efficiency is pivotal, as it reduces operational costs while increasing productivity. Internal auditing contributes significantly by identifying deficiencies within internal controls and providing audit opinions that inform management in drafting appropriate policies and procedures. This research utilized a mixed-methods approach, combining qualitative data from interviews and quantitative data from questionnaires, to assess the impact of internal auditing on operational efficiency and financial performance. The findings demonstrate that internal audits have a positive and significant effect on both operational efficiency and financial performance, highlighting the value of internal audits as a strategic tool for financial institutions. It is recommended that BLESSING Finance’s management prioritize the recruitment of qualified auditors with the necessary skills and expertise to perform audits effectively and efficiently, thereby further enhancing the institution’s operational efficiency and financial outcomes. The study underscores the importance of robust internal audit functions as a key driver of strategic and financial success in financial institutions.
The mining sector plays a pivotal role in the economies of South Africa and Zimbabwe, yet limited attention has been given to the determinants of human capital disclosure within this industry. This study aims to address this gap by investigating the key factors influencing human capital reporting practices among the largest mining companies in these two countries. A quantitative approach was employed, utilising self-administered questionnaires to gather data from six major mining companies operating in both South Africa and Zimbabwe. Factor analysis was conducted to identify the primary determinants shaping human capital disclosure. The findings reveal that company structure, including audit committee characteristics, board size and composition, and assets, significantly influence disclosure practices. Performance-related factors, such as cost-effectiveness, return on training investments, liquidity, employee return on investments, and return on equity, also play a crucial role. Furthermore, market-related factors, including lobby pressure groups, media exposure, levels of debt, creditor pressure, and government regulations, were found to impact disclosure decisions. The results indicate that human capital disclosure mitigates information asymmetry, thereby strengthening relationships between company management and key stakeholders. It is also suggested that improved disclosure enhances corporate transparency, boosts investor confidence, and can positively influence a company’s perceived value. Given these findings, it is recommended that mining companies in South Africa and Zimbabwe adopt comprehensive reporting frameworks that incorporate human capital metrics. The adoption of such frameworks may align corporate practices with global reporting standards and enhance the sustainability and accountability of companies in the sector.
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