Endri Endri

This paper examines how to build a portfolio and assess the impact of the COVID-19 on portfolio performance using the Sharpe single index model. The research sample consists of ten high market capitalization stocks representing five price fractions of the population listed stocks on the Indonesia Stock Exchange during the COVID-19 outbreak from March 1 to May 31, 2020. The results show that there are four stocks that are included in the portfolio formation, namely CASA with a proportion of 50%, BNLI with a proportion of 26 %, UNVR with a proportion of 15%, and HMSP with a proportion of 9%. Based on portfolio performance testing using the Sharpe single index model, it is known that the portfolio during the COVID-19 has a negative Sharpe ratio, meaning that portfolio performance is underperforming. The findings provide evidence that COVID-19 has had a negative impact on the stock market so that many investors have suffered losses on their portfolios. The implications of findings are that investors must evaluate portfolio performance and restructure the formation of new portfolios by considering the COVID-19 pandemic outbreak as a systematic risk factor that can determine the expected returns.

Technological developments are things that must be followed by companies to achieve a competitive advantage to improve performance. To achieve and improve performance, companies need active employee engagement by encouraging motivation and fulfilling their job satisfaction. This study aims to analyze the effect of motivation and job satisfaction on performance with employee engagement as a mediating variable. The research sample is Information Technology (IT) companies located in the cities of Jakarta and Bandung, Indonesia. Research respondents are system developers who handle system development activities for a project or part of an ongoing project. By using the convenience sampling technique 103 responses were obtained from IT developers. The research model analysis method uses Partial Least Square (PLS) with SMART PLS Ver 3.0 software. Empirical findings prove that motivation has a positive effect on the performance of IT employees, while job satisfaction is independent. Employee engagement does not directly affect employee performance, but the effect of mediation through motivation and job satisfaction can have a significant effect on employee performance. The research findings have managerial implications, in increasing high employee involvement, motivation needs to be encouraged to be more active and innovative, and facilitate the achievement of the desired results.

Acknowledgment
This study was made possible because of the full support of the Region III Education Service Institute (LL-DIKTI III), the Ministry of Education and Culture of the Republic of Indonesia, and the Research Center at Mercu Buana University, Jakarta.

This study examined the response of stock prices on the Indonesia Stock Exchange (IDX) to COVID-19 using an event study approach and the GARCH model. The research sample is the closing price of the Composite Stock Price Index (JCI) and companies that are members of LQ-45 in the 40-day period before the COVID-19 incident, 1 day during the COVID-19 incident (March 2, 2020) and 10 days after, January 6, 2020 – March 16, 2020. Empirical findings prove that abnormal returns react negatively to COVID-19, JCI volatility fluctuates widely during the COVID-19 event, and the GARCH(1,2) model can be used to assess volatility and predict stock abnormal returns in IDX in market conditions infected with COVID-19. The practical implication of the study’s findings for investors is that the COVID-19 event caused stock price volatility, which affects abnormal returns. Therefore, to face the conditions of uncertainty and increased volatility in the future, several lines of risk management are needed in managing a stock portfolio. In addition, it also opens up opportunities for speculators to profit in an inefficient market environment. This study is based on the empirical literature currently being developed to investigate the phenomenon of stock price volatility behavior during COVID-19 on the IDX. The GARCH model used proves that during the COVID-19 pandemic, stock price volatility increases and leads to a decrease in abnormal returns. The empirical findings also validate the efficient market hypothesis theory related to the study of events and the theory of financial behavior related to uncertainty.

Earnings management practices revealed in companies are primarily determined by the role of management in providing the best performance reports for shareholders. The purpose of this study was to analyze the effect of managerial ability, independent commissioners, audit committees, quality of external auditors, and the application of International Financial Reporting Standards (IFRS) on earnings management practices. The research data were retrieved from manufacturing sector companies listed on the Indonesia Stock Exchange from 2014 to 2018. These data are analyzed using a panel data regression model. The empirical findings of the study prove that managerial ability, quality of external auditors, and the application of IFRS have a positive effect on earnings management.
In contrast, independent commissioners have a negative effect. The audit committee does not affect earnings management. This study also reveals that the variables of corporate governance mechanisms, which consist of independent commissioners, audit committees, and the quality of external auditors, have different effects on earnings management practices. This indicates that corporate governance principles have not been appropriately implemented in a company. The managerial ability has a dominant role in carrying out old management practices with various manipulations of financial statements.

Cost and capital structure are needed to evaluate the feasibility of the investments made by a company. This study aims to estimate and analyze the effect of the component of cost of capital (COC) and capital structure (CS) on firm value. Pulp & Paper companies listed on the Indonesia Stock Exchange (IDX) became the research sample for the 2013–2020 period. The research method applied is a moderation regression analysis approach. The empirical findings of the study prove that firm value is not influenced by the cost of debt (COD), while the cost of equity (COE) has a negative effect, and COC is positive. COC is a combination of the use of debt and equity, modeling by adding a CS variable as a moderating variable; this leads to the conclusion that COD and COE have a negative effect on firm value, whereas COC and CS have a positive effect. The finding of the role of CS as a moderating variable reveals that CS is a quasi-moderator variable and plays a role in increasing.

Green Sukuk is a source of financing that supports the SDGs. Climate change, the growth of the Islamic finance industry, and the rise of socially responsible investing could make green Sukuk a vital tool for financing clean energy and sustainable infrastructure projects. Many studies have identified its potential and advantages. However, no companies have issued green corporate Sukuk in Indonesia yet. The purpose of this study is to determine the potential and main problems of issuing corporate green Sukuk in Indonesia, along with possible solutions and strategies. The research method used is the analytic network process (ANP). In this study, respondents are experts in the field of green Sukuk (involved experts were from academia, project actors, and regulators). The results of the study indicate that the first destination that has the potential to be financed with green corporate Sukuk is renewable energy. At the same time, the main problem is the lack of understanding from market participants. In terms of solutions, the incentive provided by the government is the best to encourage the issuance of green corporate Sukuk. Moreover, the first strategy is to issue green corporate Sukuk with ijarah contracts. From the research results, it is hoped that the Indonesian government can be more aggressive in providing incentives to green project actors.

The Covid-19 pandemic has caused consumers to fear and feel anxious about doing activities outside their homes, such as shopping. Thus, they switched to e-commerce for sustainable consumption. This study focuses on sustainable consumption represented with the variables of perceived effectiveness of e-commerce platform (PEEP), economic benefits, interactivity, and pandemic fear. This study uses the Uses and Gratification Theory (UGT) to determine consumer motivation and purchase intentions. It explores the relationship between PEEP, economic benefits, interactivity, and sustainable consumption, with pandemic fear as a moderating variable. The analysis was conducted from February to July 2021, with e-commerce being the object of study. The study uses purposive sampling based on the criteria of respondents who have made a transaction at least once in one of the marketplaces in Jakarta, Indonesia. An online survey was employed to test 95 respondents consisting of Millennials and Generation Z who are active e-commerce users in Indonesia. The moderated regression analysis (MRA) or interaction test was applied to analyze the data. The results of the study found that pandemic fear can moderate PEEP’s relationship with economic benefits and interactivity that can increase sustainable consumption. The research findings also prove that relying on interactivity in the buying process encourages them to use e-commerce. E-commerce can help consumers who are limited in making transactions due to fear of spreading the Covid-19 virus to fulfill sustainable consumption.

The rapid development of information technology encourages small and medium enterprises (SMEs) to accelerate digital transformation to increase their sustainable competitiveness. However, improved entrepreneurial skills must also support technology readiness to adopt e-commerce. This study aims to analyze the influence of entrepreneurial skills and e-commerce, which mediate the factors of technology readiness, top management support, and competitive pressure, on SME performance. The partial least squares structural equation modeling (PLS-SEM) was applied to estimate the research model on data from 520 respondents who actively use e-commerce in their business activities in Jakarta, Indonesia. Data were obtained by distributing questionnaires directly to SME. The results showed that entrepreneurial skills and e-commerce adoption positively affect SME performance. Furthermore, technology readiness, top management support, and competitive pressure positively affect e-commerce adoption and have implications for improving SME performance. Finally, this paper provides recommendations for SME managers and practitioners to improve business performance: e.g., they should enhance their entrepreneurial skills and increase e-commerce adoption for operational efficiency.

The determining factors that cause delays in audit reports are essential for shareholders to pay attention to when making quick decisions. Delays in audit reports receive significant attention in the capital markets where audited financial statements in annual reports are the only reliable source of information available to investors. This study aims to identify factors that cause delays in audit reports in the form of company and industry specifics consisting of profitability, company size, audit committee, audit opinion, and size of a public accounting firm. The research method uses a panel data regression model to test five hypotheses based on data collected from annual reports from 2011 to 2021. The research sample selected were 46 companies in the construction and property services sector listed on the Indonesian Sharia Stock Index. Empirical findings show that a public accounting firm’s profitability, audit opinion, and size hurt audit report lag, while the audit committee has a positive impact. Company size is the only factor that does not have an impact on audit reporting delays. The research results provide recommendations for company management and shareholders that delays in audit reports can be reduced by increasing company profits. Apart from that, audit delay lag can also be reduced by appointing a reputable or international public accounting firm and providing a quality audit opinion.

This study aims to assess the impact of bank-specific factors and macroeconomic indicators on the net interest margin (NIM) of commercial banks in Indonesia. Data from Indonesian commercial banks are used. Data are collected from the banks’ annual reports and the Financial Services Authority (OJK) for the period 2008 to 2018. A panel data regression model is used to estimate the effect of bank-specific and macroeconomic factors. The results prove that the variables of Non-Performing Loans (NPL), Loan to Deposit Ratio (LDR), Return on Assets (ROA), Interest Rate (SBI), and Exchange Rate (FOREX) affect NIM. The exchange rate variable has a predominant effect, while the NPL factor has a less strong influence on NIM. The empirical evidence from this research is important for commercial banks in Indonesia to improve operational efficiency through NIM performance. Internal and external factors of a bank should be subject of attention of bank managers.

The issuance of bonds by the government attracts the interest of many investors, including foreigners. The government must understand the factors determining bond yields for managing government debt. This study aims to investigate the effect of domestic and global macroeconomic variables on government bond yields in Indonesia. The paper uses monthly data from November 2014 to December 2022. The research sample comprises government bonds with 5, 10, and 15-year tenor bonds. The GARCH (1,1) and GARCH-M (1,1) models are applied to estimate and analyze the determinants of government bond yields. Research findings reveal that Indonesian interest rates significantly affect the yield of 10- and 15-year tenor bonds. Inflation has no impact on bond yields across all tenors. The increase in foreign exchange reserves reduces bond yields in all tenors. The Indonesian stock exchange index is detrimental to long-term bond yields. The exchange rate has a positive impact on bond yields in all tenors. World oil prices significantly impact yields on 5- and 10-year tenor bonds. The Fed’s interest rate positively affects the yield on the 15-year tenor bond. The implication of these findings for the Indonesian government is the implementation of several aspects of economic and financial policies that can improve state debt management and financial market stability.

Sustainable universities play a role in evaluating and reporting on sustainable practices in developing countries. The study aims to identify human capital’s impact on sustainable university performance by implementing sustainable human resource management (sustainable HRM) as a mediating variable. The paper uses a quantitative approach, with a sample of 140 employees consisting of lecturers and educational staff at Esa Unggul University, Jakarta, Indonesia. Data were collected using a Likert scale questionnaire and analyzed using structural equation modeling-partial least squares with SmartPLS 4.0 software. The results showed a positive and significant impact that was statistically proven by a direct impact of human capital and sustainable HRM on sustainable universities as well as an indirect impact of human capital on sustainable universities mediated by sustainable HRM. Furthermore, the results showed that the level of direct influence of human capital on sustainable universities has an influence value of 0.371, where the influence is categorized as weak. The level of indirect influence with sustainable HRM as a mediator between human capital and sustainable universities has an influence of 0.662 with a fairly strong/moderate influence. This proves that the role of sustainable HRM practices is an essential component in realizing a sustainable university. Empirical findings recommend increasing the capacity and quality of lecturers and education staff as the main component of university human capital to achieve sustainable higher education performance. Sustainable HRM practices need to be implemented thoughtfully by universities to improve performance from economic, environmental, and social aspects.