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Contact Name
Heny Kurniawati
Contact Email
christian.harito@binus.edu
Phone
+6221-5345830
Journal Mail Official
jafa@binus.edu
Editorial Address
Jl. Raya Kb. Jeruk No.27, RT.2/RW.9, Kb. Jeruk, Kec. Kb. Jeruk, Kota Jakarta Barat, Daerah Khusus Ibukota Jakarta 11530
Location
Kota adm. jakarta barat,
Dki jakarta
INDONESIA
Journal of Applied Finance & Accounting
ISSN : 19796862     EISSN : 27466019     DOI : 10.21512/jafa.v7i2.6378
Core Subject : Economy,
Journal of Applied Finance & Accounting (JAFA) showcases useful theoretical and methodological results with the support of interesting empirical applications in the area of Finance and Accounting. Purely theoretical and methodological research with the potential for important applications is also published. Articles in the journal may examine significant research questions from a broad range of perspectives including economics, sustainability, organizational studies and other theories related to accounting and finance phenomena. JAFA is essential reading for academics, graduate students and all those interested in research in accounting and finance. The journal is also widely read by practitioners in accounting, corporate finance, investments and banking.
Articles 99 Documents
ANALYZE REFRIGERATOR TOOLING INVESTMENT LIVIA MODEL AT PT LG ELECTRONICS INDONESIA Apit Supriyadi; Mini Wijaya; Tedy Fardiansyah
Journal of Applied Finance & Accounting Vol. 1 No. 1 (2008): Published on November 2008
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/jafa.v1i1.2

Abstract

For a large firm like PT LG Electronics Indonesia (LGEIN), which has resulted in high manufacturing utilization, require a few percent reductions in component prices every year. The one of potential project for cost reduction is tooling investment. After Livia is produced and the expenditure of new tooling is made, it is continually faced with the problem that current method computing profits are conventional without considering the expenditure of tooling in the long run. Finally, a firm’s capital budgeting decisions is needed because it defines its strategic direction. Four primary methods in the capital budget to decide whether or not the project should be accepted are: discounted payback, net present value, internal rate of return and profitability index. In addition, we use sensitivity analysis to indicate which factor has significant interfere with the project. The results generated that discounted payback is just 2 year 6 months less life of the project for 3 years, NPV generated positive result $3,502,387, and an IRR of this project is 25% greater than required rate of return 10% and profitability index gets 1.8 greater than 1. In sensitivity analysis shows that the project’s NPV is very sensitive to changes in sales and COGS, and relatively insensitive to changes in either growth rate or rate of return.In a method of capital budgeting analysis, Livia project could be accepted with initial investment for $4,199,288 and still more detailed analysis is required to support the expenditure.
The Analysis of Financial Performance Measurement of Global Cash Management Project Using Earned Value Analysis at PT. APRISMA INDONESIA Aldhi Halim; Syahrial Noviananto; Tony Tony; Raymundus Parulian Sihotang
Journal of Applied Finance & Accounting Vol. 1 No. 1 (2008): Published on November 2008
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/jafa.v1i1.114

Abstract

Many components in a software house company can be used in controlling and measuring its information technology projects.  The financial component is not only the numbers that tells how a company generates its profits. It also can tell how a project performance related to its scope, cost, schedule, and quality. For example, many information technology projects’ budget increases as more work time needed to complete the planned schedule due to problems occurred whilst project execution. These correlations between cost, schedule and the execution performance can be measured from a project financial component using a method called as Earned Value Analysis. The purpose of the research is to help PT. Aprisma Indonesia to properly and comprehensively analyze the Global Cash Management financial performance and find the most feasible recommendation to improve the projects performance in the future. The result of the research is to measures on how the Global Cash Management project performed according to the time and budget plan at PT. Aprisma Indonesia. Hopefully by knowing the components that influencing the Global Cash Management project cost and understand how to measure them, PT. Aprisma Indonesia would be able to quickly execute management strategies to address specific project problems.
The Impact of Switching Costs on Customer Loyalty: A Study among Customers of Mobile Telephony Allan Ricki; Andreas Raharso
Journal of Applied Finance & Accounting Vol. 1 No. 1 (2008): Published on November 2008
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/jafa.v1i1.115

Abstract

The conditions for doing business are changing rapidly. In last few years the mobile telecom market has witnessed a substantial growth and rapid changes globally as well as domestically. Customer loyalty is a critical issue in the success of any business system, for this reason, the main condition for protecting the subscriber base is to win customer loyalty, a key necessity for the maintenance of a brand’s life in the long term. To achieve this aim, customer loyalty must be measured and “switching costs” identified. The latter render subscribers’ preference for rival operator more expensive. In this connection, this study aim is to measure the impact of switching costs on customer loyalty, and the direct and indirect of “switching costs” on customer loyalty. For doing so, a survey has been performed on customers of the prepaid and postpaid mobile service operator in Indonesia, questionnaire were distributed among them and the results analyzed base upon the proposed research questions and hypotheses, and finally the conclusions and implications were made.
The Relationship between Economic Value Added (EVA®) and Market Value Added (MVA) With Reported Earnings: An Empirical Research Of 40 Listed Companies In Indonesia Stock Exchange For The Year 2004-2007 Pratiwi Putri Wibowo; Ruben Garcia Berasategui
Journal of Applied Finance & Accounting Vol. 1 No. 1 (2008): Published on November 2008
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/jafa.v1i1.116

Abstract

This study was made to examine the relationship between Economic Value Added (EVA®) and Market Value Added (MVA) with the reported earnings. Thus, the purpose is to gain better understanding in the use of EVA and MVA in relation to the reported earnings in certain purposes from different regression models. With the sample of 40 Indonesian listed companies in Indonesia Stock Exchange from year 2004 to 2007, the hypothesis testing is used to find the relationships among variables. The author use formula for calculating EVA and MVA to be use in four models of regression analysis against reported earnings. This study found evidence in the relationships between EVA and MVA with reported earnings, and the highest correlation among the models is relationship within the same year period, which can be used for evaluation purposes. Only the relationship of the EVA in the previous year and reported earnings changes is proved not significant. Still, MVA is more significant in explaining its relationship with reported earnings rather than EVA. The author concludes that in general, Indonesian listed companies still produces negative EVA. On the other hand, while the EVA and MVA are proved to have correlation with reported earnings, the result for EVA is lower than MVA. Therefore, there is still not enough evidence that EVA can be used to explain the reported earnings effectively other than MVA.
Ranking Indonesian Listed Banks on Its Corporate Social Responsibility Disclosures Ratnawaty Tandanu; Daryanto Hesti Wibowo
Journal of Applied Finance & Accounting Vol. 1 No. 1 (2008): Published on November 2008
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/jafa.v1i1.117

Abstract

In Indonesia, corporate social responsibility (CSR) is a new concept and companies have been pressurized to include corporate social responsibility as part of strategic management to sustain competitive advantage. The main objective of this study is to evaluate the level of CSR disclosures in Indonesian listed banks’ annual reports. In addition, the writer observes the kind of CSR activities currently implemented by the banks. Subsequently, the writer tries to discover regulations pertaining to recording CSR disclosures. Method use Examines social responsibility information disclosures on the 2004 – 2006 annual reports using content analysis through detecting the presence or absence of social responsibility information. The result generated from this study is the ranking of CSR disclosures among Indonesian listed banks according to several categories. Moreover, the levels of disclosures, as well as the kind of CSR activities carried out by Indonesian listed banks were listed. Conclusion is- Generally, banks with higher total assets and net income as well as state-owned disclose more than banks with lower total assets, lower net income, and private-owned. There are still a lot of room for improvements in terms of CSR disclosures especially in environmental issues like lending and investment policies and conservation of natural resources and recycling activities as banking industry consume vast amounts of resources like paper and energy and create waste.
Determinants of Capital Structure across Industries at Jakarta Stock Exchange Christina Christina; Johan Halim
Journal of Applied Finance & Accounting Vol. 1 No. 1 (2008): Published on November 2008
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/jafa.v1i1.118

Abstract

There are several objectives to be accomplished in this study. The main purpose of this research is to determine the nature of capital structure across non-finance industries in Indonesia, whether they prefer to use debt or equity as their source of financing. Subsequently, factors that influenced the capital structure of a company are then identified. In this study, the company’s profitability, size, and dividend payout are considered as those factors that have relationship with leverage. Finally, this research also conducted to examine whether a company’s capital structure decision affects its growth of shares price. In doing so, multiple regression analysis is used in order to determine whether there is relationship between variables tested. The sample of analysis includes 230 companies listed in Jakarta Stock Exchange from all industries, except finance, in 2006. The findings of this research confirm that, first of all, capital structure varies across industries. Each industry would have different decisions regarding its optimal capital structure, depends on several factors. This leads to the second findings, in which it proves that there is negative significant relationship between profitability and leverage, positive significant relationship between company’s size and leverage, and negative relationship between dividend payout and leverage. Finally, this research also verifies that there is no relationship between leverage and company’s growth of shares price, which means that the growth of shares price is not influenced by the company’s capital structure decision. Capital structure decision plays an important role in maximizing the firm’s value. By having the most optimal capital structure, firms might be able to push its cost to the minimum point, which then assist them in dealing with the competitive environment. Consequently, it is important to determine the factors that influence the capital structure of companies.
Faktor-Faktor Yang Mempengaruhi Initial Return 1 Hari, Return 1 bulan, dan Pengaruh Terhadap Return 1 Tahun Setelah IPO Emilia Emilia; Lucky Sulaiman; Roy Sembel
Journal of Applied Finance & Accounting Vol. 1 No. 1 (2008): Published on November 2008
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/jafa.v1i1.119

Abstract

There are some anomalies happenning when the shares are traded in the secondary market or stock exchange. When the shares price at the secondary market is higher than the primary market, then we say that there is a positive initial return or underpricing happened. The opposite is negative initial return or overpricing. The purpose of this research is to to study whether the underwriter’s reputation, auditor’s reputation, value of the share offering, percentage of the share offering, and earnings per share towards the IPO price influence the one day initial return, one month return, and one year return after the IPO. The objects of the research are 92 companies that went public through the Jakarta stock exchange market during 1999-2005 that had either positive or negative initial return. This research is done using multiple regression analysis with F Test, t Test, R2 Test, and classic assumption testing. The result indicates that only the value of the share offering variable that significantly influence the one day initial return and one month initial return negatively. For the one year return regression model, only the one month return that significantly influence the return one year after the IPO positively. It can be concluded that the higher the value of the share offering the smaller the one day initial return and one month initial return will be, and thus minimizing the positive initial return. Furthermore, the higher the one month initial return the higher also the one year return after the IPO.
Pengaruh Fluktuasi IHSG, Inflasi Dan Suku Bunga Terhadap Imbal Hasil Unitlink Berbasis Saham Teguh Antolis; Samuel Dossugi
Journal of Applied Finance & Accounting Vol. 1 No. 1 (2008): Published on November 2008
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/jafa.v1i1.120

Abstract

Investment is a general word and is understood by the general society, but how to manage an investment or how to invest the money that will generate good return with small risk is an  attractive challenge and not known by many people. This paper will discuss about unit link, a newly developed investment instrument, which is predicted to be the new star for investment, together with the factors that influence the return of a unit link investment. Unit link is an innovation from the financial industry, and is a combination of insurance and investment. Year 2007 is the year where the stock market had a spectacular growth and this paper will discuss the IHSG fluctuation phenomenon, inflation and interest rate toward the equity-based unit link return and the effect of each factors. From the result of research, we can conclude that IHSG, inflation and interest will affect the equity-based unit link return where the most significant effect is shown by IHSG.
Pengaruh Tingkat Suku Bunga, Nilai Tukar Rupiah dan Jumlah Ekspor Terhadap Tingkat Kredit PERBANKAN Yoda Ditria; Jenni Vivian; Indra Widjaja
Journal of Applied Finance & Accounting Vol. 1 No. 1 (2008): Published on November 2008
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/jafa.v1i1.121

Abstract

Interest rates level, exchange rates value and the export quantity are the variables of macroeconomy that always change according to the economic condition of a nation. A good knowledge about the effect of these three variables towards the amount of lending by banks, which consists of three kinds: working capital loan, investment loan, and consumption loan, will help banks’ strategic plan to face the economic volatility. Bank is a financial institution that serves as a bridge between parties that have excess funds with parties that need some funds. Banks are expected to provide loans to the public to sustain economic growth with prudence to reduce the risks, which can be customer risks or systemic risks. The goal of this research is to study the effects and relationship between interest rates level, exchange rates movement, and export quantity towards the credit level of banks and also the three kinds of bank loans, which are the working capital loan, investment loan and consumer loan using historical data from Quarter I 2002 to Quarter III 2007. The result of research indicates that the macroeconomic variables above affect the amount of lending and the three kinds of loan: working capital loan, investment loan and consumer loan. The result also shows that although the three macroeconomic variables have the same influence towards the three kinds of loan, the magnitude of the influence towards each kind of loan is different, in which the investment loan has a big influence towards the interest rates level change, working capital loan has a big influence towards the export quantity and exchange rates, and consumer loan has a moderate influence towards the variation of the three macroeconomic variables. 
Analisis Kinerja Reksa Dana Saham Dengan Metode Raw Return, Sharpe, Treynor, Jensen dan Sortino Simforianus Simforianus; Yanthi Hutagaol
Journal of Applied Finance & Accounting Vol. 1 No. 1 (2008): Published on November 2008
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/jafa.v1i1.122

Abstract

Mutual Fund (Reksa Dana) can be used as one of the investment alternatives besides personal saving, time deposit, shares and bond. Mutual fund is an investment that has a form as a collective contract investment and managed by the profesionals. From various mutual funds in Indonesia, the investor should choose the mutual fund that they want to invest in. The problem is the type of indicators that the investor can use to choose the mutual funds. The writer did research with 16 equity-based mutual funds in Indonesia with the period from December 31, 2002 to December 31, 2007. Firstly, the writer measures all mutual funds according to their performance, which is based on raw return, Sharpe, Treynor, Jensen and Sortino. Mutual funds with above average performance are considered as superior mutual funds. Afterwards, whether there is any consistency in the performance is checked by using probabilistic method and Chi Squared test. Then, ranking will be made started with the best to the worst mutual funds. The candidates for the best mutual funds are the mutual funds that achieve the superior level at least three times during the six years of the research period. The best mutual fund is the mutual fund which obtains the highest rank according to the five methods above. Probabilistic method indicates a high consistency level with an average of 71.50%. This result is supported by the chi squared test, where the hyphotesis that stated that there is a consistency between mutual fund performances can be proven. The final result is the rank of equity-based mutual funds in Indonesia. The following is the rank of the mutual funds with superior performance: Fortis Pesona, Schroder Prestasi Plus, Dana Reksa Mawar, Fortis Ekuitas, Trim Kapital, Panin Dana Maksima, Si Dana Saham, Rencana Cerdas dan Bahana Dana Prima.

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