Measurement under IAS 40: Fair value model? Evidence from Indonesia
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Author(s)Kholilah Kholilah ,Aulia Fuad RahmanLink to ORCID Index: https://orcid.org/0000-0001-6767-5334
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Abdul GhofarLink to ORCID Index: https://orcid.org/0000-0002-0690-433X
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Sari AtminiLink to ORCID Index: https://orcid.org/0000-0002-8194-477X
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DOIhttp://dx.doi.org/10.21511/imfi.22(3).2025.23
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Article InfoVolume 22 2025, Issue #3, pp. 307-317
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Creative Commons Attribution 4.0 International License
Type of the article: Research Article
Abstract
This study examines the effect of contractual, asset pricing, and opportunistic motivations on choosing a fair value or cost model for investment properties, as well as how institutional ownership moderates the influence of these three motivations. This study was conducted on 100 companies with investment property accounts in ten sectors listed on the Indonesia Stock Exchange from 2018 to 2022, including 500 firm-year data observations. The study used logistic regression and moderated regression analysis to test the hypotheses. The results indicate that the three motivations explain the choice between fair value and cost models. However, institutional ownership plays an important moderating role. Contractual motivation and firm size as a proxy are positively related to fair value choice, contradicting political costs, as fair value can enhance asset value, potentially increasing opportunities for third-party financing. Asset pricing incentives and the ratio of market to book value as proxies for information asymmetries do not affect the choice because Indonesia is a developing country where investors tend to exhibit herding bias, meaning their information sources rely on issues rather than financial reports. As for opportunistic motivation, the gain arising from changes in the fair value of investment property for the bonus plan proxy is positively related to the fair value choice. In addition, institutional ownership can strengthen the influence of contractual and opportunistic motivations and weaken the influence of asset pricing motivation on selecting a fair value model.
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JEL Classification (Paper profile tab)M41, G32, G34
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References40
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Tables4
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Figures0
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- Table 1. Operationalization of variables
- Table 2. Descriptive statistics
- Table 3. Decision to choose the fair value method for investment property
- Table 4. Robustness test
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Test of capital market integration using Fama-French three-factor model: empirical evidence from India
Neeraj Sehrawat ,
Amit Kumar ,
Narander Kumar Nigam ,
Kirtivardhan Singh ,
Khushi Goyal
doi: http://dx.doi.org/10.21511/imfi.17(2).2020.10
Investment Management and Financial Innovations Volume 17, 2020 Issue #2 pp. 113-127 Views: 2305 Downloads: 963 TO CITE АНОТАЦІЯIntegration or segmentation of markets determines whether substantial advantages in risk reduction can be attained through portfolio diversification in foreign securities. In an integrated market, investors face risk from country-specific factors and factors, which are common to all countries, but price only the later, as country-specific risk is diversifiable. The aim of this study is two-fold, firstly, investigating the superiority of the Fama-French three-factor model over Capital Asset Pricing Model (CAPM) and later using the superior model to test for integration of Indian and US equity markets (a proxy for global markets). Based on a sample of Bombay Stock Exchange 500 non-financial companies for the period 2003–2019, the data suggest the superiority of Fama-French three-factor model over CAPM. Using the Non-Linear Seemingly Unrelated Regression technique, the first half of the sample period (2003–2010) shows evidence of market segmentation; however, the second sub-period (2011–2019) shows weak signs of market integration, which is supported by the Johansen test of cointegration, suggesting that Indian market is gradually getting integrated with global markets.
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The role of institutional ownership in strengthening to the enterprise value on the banking issuers
Iskandar Muda ,
Erlina ,
Muhammad Panca Diharja ,
Normah Haji Omar ,
Jamaliah Said 
doi: http://dx.doi.org/10.21511/bbs.14(1).2019.05
Banks and Bank Systems Volume 14, 2019 Issue #1 pp. 42-54 Views: 1856 Downloads: 256 TO CITE АНОТАЦІЯThis study examines the role of institutional ownership in moderating the relation between fundamental factors of a company and Corporate Social Responsibility (CSR) and Enterprise Value (firm value). The type of this research is an explanation research method. The sampling method was a proportional random sampling method of the population of banking companies of the Indonesian Stock Exchange. The method of data collection was documentation. The method of data analysis was Multiple Regression Analysis. The results of this study showed that simultaneous net profit margin and corporate social responsibility had a significant effect on the firm value. Partial test shows that net profit margin variables had an effect on the firm value and corporate social responsibility variables, which consist of economy, and had no influence on firm value. The results also indicated that institutional ownership strengthened the relation of fundamental factors and corporate social responsibility with the Enterprise Value.
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Ownership structure and corporate performance: evidence from property and real estate public companies in Indonesia
Investment Management and Financial Innovations Volume 14, 2017 Issue #2 (cont. 1) pp. 252-263 Views: 1759 Downloads: 1025 TO CITE АНОТАЦІЯThis paper has proposed a specific case in the property and real estate sector regarding the impact of ownership structure and corporate performance, since this sector is one of those with booming investment in Indonesia. The ownership structure was represented by the institutional investor and managerial ownership, and the Economic Value Added (EVA) and Tobin’s Q were used as a proxy for firm performance. This study utilized the purposive sampling of 240 observations over the period 2010-2015. The fixed and random effect panel data model was employed to determine the relationship among the variables. Findings show that the institutional investor and company’s size, as well as debt ratio, are important in explaining firm performance, while managerial ownership has a partially significant effect on the performance of companies in this industry.
