This study explores the impact of fintech adoption on financial inclusion among rural entrepreneurs in Tanzania, with a focus on the roles of digital literacy and financial awareness. The study employed Partial Least Squares Structural Equation Modeling (PLS SEM). Employing a quantitative research design, data was collected from rural business owners to assess the impact of technological engagement on access to financial services. The findings indicate a strong, statistically significant correlation between fintech adoption and enhanced financial inclusion, highlighting fintech's potential to address existing financial access disparities. Importantly, digital literacy was found to have a statistically significant moderating effect, enhancing the impact of fintech adoption on financial inclusion. Furthermore, digital literacy and financial awareness were identified as critical enablers, significantly affecting the effective utilization of fintech platforms. However, the benefits of fintech adoption are not uniformly experienced, varying according to socioeconomic and contextual factors. The study underscores the necessity for a comprehensive strategy that integrates technological access with tailored educational initiatives and inclusive policy interventions. This research enriches the existing literature on digital finance and provides valuable insights for policymakers, fintech providers, and development practitioners dedicated to promoting inclusive economic growth in underserved communities.
Previous empirical findings on the relationship between ESG disclosure and firm value have shown inconsistent results. Some studies suggest that ESG disclosure enhances firm value, while others view it as a cost burden or a managerial tool used for personal gain. These inconsistencies create uncertainty for stakeholders in making economic decisions and indicate that previous theoretical models may be incomplete. Addressing this gap, the current study introduces a new approach by incorporating financial performance as a mediating variable in the relationship between ESG disclosure and firm value. This study utilized panel data from 51 companies listed on the Indonesia Stock Exchange, covering the period from 2015 to 2022, with a total of 357 firm-year observations. Hypothesis testing was conducted using the PLS–SEM methodology through the WarpPLS 8.0 software. The results indicate that ESG disclosure does not have a significant direct effect on firm value. This study has three contributions. First, it provides an answer to previous studies showing inconsistent directions. Second, the outcomes lend support to the proposition that financial performance bridges the influence of ESG disclosure on firm value. Third, it provides an understanding to company managers that ESG disclosure is important to improving financial performance. The implications of this research indicate that ESG disclosure can be incorporated as a strategy to improve financial performance and indirectly strengthen firm value.
As a crucial financial metric, the cost of debt measures the economic burden that a firm bears when using loans to fund its operations. Using a regression model, this study examines how real earnings management, ESG disclosure, political connections, and several control variables affect the cost of debt within the context of non-financial firms listed on the Indonesia Stock Exchange during the observation period from 2018 to 2021. The results reveal that real earnings management has a significant positive connection with the cost of debt, while ESG Disclosure does not have a significant negative relationship with the cost of debt. As a moderating variable, political connections have been shown to strengthen the positive relationship between real earnings management and the cost of debt. Similarly, political connections also strengthen the negative relationship between ESG Disclosure and the cost of debt. This study highlights the importance of using ethical and transparent financial practices and robust ESG disclosure in managing debt costs. The findings provide insight into the potential benefits of aligning financial and sustainability practices, which may result in improved financial performance, enhanced investor confidence, and reduced business financing costs.
This quantitative study aims to examine the effects of discouraged borrowers on financial bootstrapping and financial inclusion, as well as how they affect business performance and business sustainability among startup creative economy entrepreneurs. Data were gathered from innovative MSME participants and analyzed using the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method. The results indicate that the hesitance of business stakeholders to pursue formal funding substantially promotes the use of bootstrapping techniques, while concurrently diminishing the level of financial inclusion. Moreover, both financial bootstrapping and financial inclusion positively influence business performance, thereby enhancing business sustainability. These findings highlight the significance of alternative funding techniques and participation in the formal financial system in encouraging small enterprises’ growth and resilience. Policy implications necessitate enhancing financial bootstrapping, providing management support, and streamlining access to financial services to promote firm autonomy and sustainability.
To date, empirical findings on the relationship between dividend policy and firm value remain inconsistent, particularly in emerging markets with relatively weak governance quality and investor protection. Unlike other studies that only examine the direct effects, this study includes several indicators of good corporate governance (GCG), namely the proportion of independent commissioners, board meeting frequency, board busyness, and board size, as moderating variables. Panel data regression was performed to analyze a sample of 45 manufacturing companies in the primary consumer goods sector listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. The results indicate that dividend policy has no significant direct impact on firm value. However, board independence and board size magnify the effect of dividend policy on firm value, while board busyness weakens it. Board meeting frequency, on the other hand, exerts no effect on this relationship. These findings suggest that the effectiveness of dividend policy depends on the quality of governance. This study provides new evidence from Indonesia and has practical implications for companies and regulators seeking to improve the credibility of governance in dividend policy decision-making.
Purpose: The purpose of this study is to investigate and gather empirical data about how media exposure influences the disclosure of carbon emissions in relation to green investment, environmental performance, and financial slack. Companies in the energy and basic minerals sectors that are listed on the Indonesia Stock Exchange were the subject of this study. This study utilized purposive sampling, and there were a total of 17 companies included in the sample. Methodology: Multiple linear regression and moderated regression analyses were employed in this study, while Eviews version 12 was utilized for data processing. Results: According to this study, environmental performance and financial slack have a favorable impact on carbon emission disclosure, whereas green investment shows a marginal effect. Besides, the impact of financial slack, environmental performance, and green investment on carbon emission disclosure was not mitigated by media exposure. Novelty: The moderating variable for carbon emission disclosure in this study was media exposure. Since the media has a significant influence on public perception and legitimacy demands on businesses, media exposure was selected as a moderating variable. The association between internal corporate parameters and carbon emissions is strengthened when firms with strong environmental performance, green investment, and financial capability are encouraged by high media exposure to disclose carbon emissions more transparently.
This study investigates the impacts of financial performance—assessed through blockholding, board size, and capital structure (debt-to-equity ratio/DER) variables—on firm value, with profitability (ROA) acting as a moderating variable. Data obtained from a sample of manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2023 were analyzed using panel data regression analysis in EViews 13. The findings reveal that blockholding exerts a negative and significant influence on firm value, indicating that ownership concentration may lead to agency conflicts and weaken investor confidence. Conversely, DER shows a positive and significant relationship with firm value, suggesting that a sound capital structure can enhance firm performance and signal financial stability to the market. Meanwhile, board size does not have a significant effect on firm value, implying that governance quality is more vital than the number of directors. Furthermore, profitability (ROA) does not moderate the relationship between blockholding, board size, or DER and firm value. These results emphasize that ownership and capital structures remain the key determinants of firm value, and profitability alone cannot strengthen these relationships. This study has practical implications for management and investors seeking to increase firm value through effective governance and optimal capital structure management.
Asset misappropriation is one of the most frequent and financially destructive types of occupational fraud, particularly in the public sector. Nevertheless, the behavioral and governance mechanisms contributing to this fraud have not received much attention in existing studies. Therefore, this study aims to evaluate the determinants of asset misappropriation by employing the Fraud Diamond Theory, which comprises elements of pressure, opportunity, rationalization, and capability. Furthermore, the analyses also explore the moderating role of Fraud Risk Assessment (FRA) as a detection-oriented governance mechanism, where its positive correlation with misappropriation is hypothesized to indicate increased detection capacity rather than control failure. Data obtained from 312 respondents from public organizations in Indonesia were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that opportunity and capability significantly influence asset misappropriation, while pressure and rationalization show no significant effect. Meanwhile, FRA serves a dual role: 1) it positively affects asset misappropriation through improved detection; and 2) it negatively moderates the relationship between opportunity and asset misappropriation. This reflects the effectiveness of FRA in limiting the exploitation of weak controls. By elucidating FRA’s dual role in governance and detection, this study contributes to the fraud theory and carries practical implications for the enhancement of fraud management through integrated surveillance, audit coordination, and real-time risk analytics.
MSMEs play a vital role in driving urban economic growth but continue to face challenges in managing risks, fostering innovation, and building effective collaboration. In a competitive environment such as DKI Jakarta, sound financial management and the ability to convert internal capabilities into measurable performance are essential. This study analyzes the influence of risk management, business creativity, and business collaboration on MSME growth with financial management quality as a mediating variable. Using a quantitative approach and SEM-PLS analysis on 100 purposively selected MSME respondents, the findings indicate that risk management and business creativity significantly enhance growth, whereas collaboration does not. Financial management quality also indicates a strong direct and mediating effect between risk management and creativity on business growth. The study reinforces the Resource-Based View and Enterprise Risk Management Theory, emphasizing that robust financial governance strengthens innovation-based performance. Future research should expand regional coverage and explore mediators such as digital literacy or market orientation.
In Indonesia, the efforts of BMT to improve its financial performance are hindered by Islamic Financial Inclusion (IFI), whose main provision—namely collateral—can prevent customers from applying for financing. Therefore, managers must adopt a novel non-financial approach, namely Strategic Agility Diversification Investment (SADI), which is developed through measurements of investment alignment, risk innovation, and data growth using the Markowitz theory and physical aptitude. This study tests the SADI indicators on 116 BMT managers in Central Java using AMOs 20.0. The results reveal that the variables of IFI—i.e., FI challenges, benefits, and realization—influence how SADI improves BMT’s financial performance. Furthermore, the direct effect of IFI on BMT’s financial performance is also tested, and the result shows a negative relationship. Thus, it can be concluded that the intervention of SADI in non-financial aspects is highly decisive in achieving IFI for BMT’s financial performance enhancement.
Using panel data of 24 firms in the Indonesian property and real estate sector from 2019 to 2023, this study investigates the impact of related party transactions on firm value by emphasizing the influence of firm size and family ownership. Tobin's Q was used in the analyses to measure firm value, with leverage, profitability, and liquidity as control variables. Empirical evidence demonstrates that related party receivables have a significant negative effect on firm value, thus confirming the agency theory. Related party payables, on the other hand, have a positive correlation with firm value, showing the potential as an internal financing mechanism and giving a good signal to the market. Furthermore, firm size has been shown to mitigate the adverse impacts of accounts receivable while magnifying the beneficial effects of accounts payable. Although family-owned businesses extract greater value from accounts payable than non-family-owned enterprises, there is no distinction in accounts receivable between the two. Nonetheless, this study shows that related party transactions are not necessarily harmful for companies. These findings are important for business management, regulators, and investors seeking to consider related party transactions that can increase firm value.
Many studies state that governance and sustainability affect financial performance, and transparent disclosure is considered capable of increasing stakeholder trust in corporate responsibility towards the environment, however, some researchers assume that governance and sustainability reports do not have a positive impact on financial performance and are considered only a burden and only to comply with regulations. This study attempts to fill this gap in the literature by testing the impact of governance disclosure and sustainability reporting by adding gender diversity variables as a moderation, female directors are believed to be more critical and able to increase stakeholder trust. This study uses a panel regression model on a sample of 54 banks registered in Indonesia and Malaysia in 2022. Effective governance can overcome the agency theory and moral hazard problems that commonly occur in the banking industry, such that bank performance, as measured by Tobin's q, increases because stakeholders feel that greater disclosure of governance can have a positive effect on financial performance. Disclosure of sustainability reporting in the banking industry not only complies with regulations but also has a positive effect on financial performance. Sustainability reporting integration into core business strategies is likely to play an important role in driving long-term financial success and increasing stakeholder confidence in bank performance. Gender diversity positively moderates corporate governance practices, sustainability reporting, and, ultimately, superior financial performance. Gender diversity in the ranks of company directors is an important factor in improving corporate governance, sustainability reporting practices, and financial performance. The benefits of gender diversity extend to various organizational dimensions, underscoring its significance as a strategic asset in the contemporary corporate governance paradigm.
This research examined the comparative characteristics affecting financial inclusion in Tanzania, Kenya, and Uganda. Despite Tanzania's robust economic development, its degree of financial inclusion remains inferior to that of its neighboring nations, Kenya and Uganda. The provision of accessible financial services to underrepresented people is essential for poverty alleviation and economic growth. This study used cross-sectional micro-level data from the Global Findex Database survey waves conducted in 2011, 2014, 2017, and 2021. The Least Absolute Shrinkage and Selection Operator (LASSO) post-selection inference technique was used in the research to address issues arising from high-dimensional data and model selection bias. The results indicate that Kenya excels in financial inclusion, propelled by sophisticated digital financial institutions, whilst Tanzania lags behind. The significant primary drivers of financial inclusion were debit card utilization, bank borrowing, and demographic characteristics such as gender and education level while the use of credit cards amongst women had a negative influence on financial inclusion. The research underscores the significance of access to financial services and the contribution of digital finance to improving inclusion. It underscores the need for focused strategies to tackle obstacles such as inadequate infrastructure, insufficient financial literacy, and gender inequities. Research indicates that enhancing mobile money systems and advancing financial literacy, particularly for women and low-income populations, may close the financial inclusion gap. The report emphasizes the need for a more inclusive financial environment to guarantee fair economic growth
This study examines the impact of managerial ability on the cost of debt (COD). It also evaluates the role of earnings quality as a mediator between managerial ability and COD. It further explores the moderating role of the independent board of commissioners in the relationship between managerial ability and earnings quality. Using the path analysis method, this study analyzes data from the financial statements of manufacturing companies listed on the Indonesian Stock Exchange (IDX) from 2021 to 2023. This study finds that higher managerial ability will result in lower cost of debt. Furthermore, it indicates that managerial ability will increase firms’ earnings quality. This study also finds no evidence of a mediating effect in the relationship between managerial ability and the cost of debt. In addition, the independent board of commissioners fails to moderate the positive relationship between managerial ability and earnings quality. This study implies that managerial ability plays a key role in lowering cost of debt and improving earnings quality. It also suggests the need to enhance the effectiveness of independent commissioners and strengthen corporate governance practices.
This study aims to analyze the influence of organizational commitment and Good Corporate Governance (GCG) on the performance of village officials, and to test the moderating role of community participation in the relationship. This study uses a quantitative approach with a survey method, involving 72 respondents consisting of officials and the community in Pakisaji District, Malang Regency. The data analysis technique uses Moderated Regression Analysis (MRA). The results of the study indicate that organizational commitment and the implementation of GCG principles have a significant effect on improving the performance of officials. Community participation also has a positive effect on the performance of officials, and significantly moderates the relationship between organizational commitment and official performance. However, community participation does not significantly moderate the relationship between GCG and official performance, indicating that the effectiveness of participation depends on the quality and structure of community involvement. These findings provide empirical contributions to the development of participatory and accountable village governance, as well as strengthening the role of internal and external factors in driving official performance.
ESG disclosure among basic materials firms in the ASEAN-5 countries remains uneven, with notable implementation gaps. Drawing on legitimacy and institutional theories, this study employs moderated regression analysis on 185 firms from a population of 2.110 during 2019–2023 to identify key determinants of ESG reporting. Results reveal that carbon emission intensity and product disclosure. Results show that higher carbon emission intensity leads to greater ESG disclosure, suggesting firms seek legitimacy by providing extensive ESG information despite higher emissions. Firms with more diversified products also exhibit higher ESG disclosure, as complexity requires transparency to manage environmental and social risks. Contrary to expectations, business environmental uncertainty does not significantly influence ESG disclosure, supporting contingency theory’s view that no single strategy fits all firms in navigating uncertainty. Geographic location negatively affects ESG disclosure, highlighting resource constraints and underdeveloped ESG infrastructure, particularly in Indonesia. Gender diversity significantly moderates the effects of environmental uncertainty and geographic location, strengthening their impact on ESG disclosure. However, its interaction with carbon emission intensity and product diversification is not significant. These findings deepen understanding of the institutional and legitimacy factors influencing ESG disclosure in emerging markets.
The environment is a critical issue in sustainable development in Indonesia, with significant variations in environmental quality between regions. This study seeks to examine the influence of the Regional Government Budget, COVID-19 (as a dummy variable), Gross Regional Domestic Product (GRDP), and the Human Development Index (HDI) on the Environmental Quality Index (EQI) in Indonesia. The data for this study were obtained from BPS–Statistics Indonesia and the Ministry of Environment and Forestry, covering the period from 2018 to 2022. The analysis employs multiple linear regression using panel data. Panel model testing indicates that the fixed effects model with cross-sectional lag provides the best fit. The results show that, collectively, all variables have a significant influence on Indonesia's Environmental Quality Index (EQI). Individually, the Regional Government Budget for environmental purposes, the COVID-19 dummy variable, and the Human Development Index (HDI) have a significant positive impact on EQI. In contrast, Gross Regional Domestic Product (GRDP) has a significant negative effect. These findings highlight the need for comprehensive macro-socioeconomic policies to sustain and enhance environmental quality in Indonesia.
This study explores the impact of financial technology (fintech) adoption on financial inclusion, its influence on consumer behavior, and the mediating role of financial inclusion. Employing a quantitative approach through structural equation modeling, data were collected via surveys to examine both direct and indirect relationships among the variables. The results indicate that fintech usage plays a key role in enhancing financial inclusion. In turn, financial inclusion contributes significantly to shaping consumer behavior. However, the direct influence of fintech usage on consumer behavior is moderate and statistically inconclusive. The findings confirm that financial inclusion mediates the relationship between fintech usage and consumer behavior, supporting greater financial access and fostering new financial habits. The study concludes that financial inclusion is essential in translating fintech adoption into meaningful behavioral shifts, underscoring the importance of broader financial access initiatives to fully realize the potential of fintech.
Fraudulent investment schemes continue to deceive the public despite ongoing improvements in financial literacy across Indonesia. This phenomenon presents a serious threat to personal financial management, as many individuals are still lured by promises of unrealistic profits and pressured into high-risk financial traps. These schemes exploit specific psychological vulnerabilities that influence decision-making. This study aims to examine the influence of three behavioral loss aversion, regret aversion, and herding on fraudulent investment decisions, with financial literacy analyzed as a moderating variable. Total of 100 respondents in Semarang who had experienced financial losses due to fraudulent investment practices were selected using purposive and snowball sampling methods. Data were analyzed using feasibility tests, classical assumption testing, multiple regression analysis, and moderated regression analysis (MRA). The findings reveal that loss aversion and regret aversion both have a significant negative effect on fraudulent investment decisions, while herding has a positive influence. Additionally, financial literacy plays a quasi-moderating role, effectively weakening the impact of these psychological traits. These findings underscore the importance of psychological factors in irrational financial behaviors and highlight the critical need for improved financial literacy education. Strengthening financial awareness may help reduce vulnerability to deceptive investment offers and promote healthier financial decision-making.
This study aims to analyse the influence of work experience, self-efficacy, access to financing, financial management skills, and financial literacy on MSME growth in Karawang Regency with entrepreneurial learning as a mediating variable. This research uses a quantitative approach with a survey method of 120 MSME actors selected through purposive sampling technique. The data were analysed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with the help of SmartPLS 3 software. The results show that work experience and self-efficacy have a positive and significant direct effect on MSME growth, while access to financing, financial management skills, and financial literacy do not show a significant direct effect. However, all of the exogenous variables were shown to have significant indirect effects on business growth through entrepreneurial learning as a mediator. This finding reinforces the strategic role of Entrepreneurial Learning in bridging the influence of human and financial resources on business growth. This research provides a theoretical contribution to the development of Human Capital Theory and Entrepreneurial Learning Theory and suggests the need for MSME empowerment programme design that focuses on strengthening the entrepreneurial learning process in a practical, contextual, and sustainable manner.
