The 12th InternationalConference on Busines andManagement Research

International Conference onBusiness and Management Research

Conference Programand Abstract Book

Management Research CenterDepartment of ManagementFaculty of Economics and BusinessUniversitas Indonesia

T H E 1 2 T H I N T E R N AT I O N A L C O N F E R E N C E O N

B U S I N E S S A N D M A N A G E M E N T R E S E A R C H

C O N F E R E N C E P R O G R A MA N D A B S T R A C T B O O K

M A N A G E M E N T R E S E A R C H C E N T E R F E B U I

Contents

Greetings from the Committee 7

Greetings from the Dean, Faculty of Economics & Business, UI 9

Scientific Committee 11

About Faculty of Economics & Business Universitas Indonesia 13

About Management Research Center FEB UI 15

Collaborations 17

Conference Program 19

Parallel Session 1: 7 November 2018, 15:45-17:45 20

Parallel Session 2: 8 November 2018, 10.20 - 12.20 22

Parallel Session 3: 8 November 2018, 13:45-16:15 24

Venue and Contacts 27

Abstract 29

Session 1: Human Resources 29

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Session 1: Finance 34

Session 1: General/Strategic Management 40

Session 1: Marketing 46

Session 1: Finance 51

Session 2: Economics 58

Session 2: Operations and Marketing 62

Session 2: Islamic Finance 68

Session 2: Finance 74

Session 2: Marketing 80

Session 3: Human Resources and General Management 86

Session 3: Finance (1) 92

Session 3: Finance (2) 98

Session 3: Marketing 104

Session 3: Finance (3) 109

Greetings from the Committee

We are honoured and delighted to extend a heartfelt welcome to eachof you for attending the 12th International Conference on Business andManagement Research (ICBMR) in Bali, Indonesia.

Firstly held in 2006, ICBMR is an academic conference and presti-gious event organised with a strong motivation to provide an excellentinternational platform for academics, researchers, and students aroundthe globe to share their research insights and knowledge. This eventis also a place to provide an opportunity for international networkingand future collaborations.

“Rethinking Innovationand Human Behaviour inIndustry 4.0”

For this year conference, we select a topic titled “Rethinking innova-tion and human behaviour in Industry 4.0,” which we consider relevantand topical to current issues in business and management.

We would like to express our gratitude to all people who dedicatedtheir time and efforts to make this as a successful event. We wouldto extend our thanks to all contributors to the conference program,keynote speakers, sponsors, publishing partners, and especially to theconference staff. We are looking forward to an intellectually stimulatingconference, thoughtful discussions, and an engaging experience withfellow attendes.

With sincere wishes for a wonderful conference from the 12th ICBMR.

Zaäfri A. Husodo, PhD Sigit S. Wibowo, PhD, CFP®

Scientific committee Organising committee

Greetings from the Dean, Faculty of Economics & Busi-ness, UI

Excellencies, Distinguished Speakers, Ladies and Gentlemen,Distinguished Speakers and Participants of the 12th International

Conference on Business and Management Research (ICBMR),On behalf of the Faculty of Economics and Business, Universitas

Indonesia, it is a great pleasure to welcome you to the 12th InternationalConference on Business and Management Research (ICBMR) 2018 inBali.

Prof. Ari Kuncoro, Ph.D.

As one of the leading business schools in Indonesia, Faculty of Eco-nomics and Business Universitas Indonesia (FEB UI) has encouraged itsacademicians to improve their contributions in economics and businessfields in order to support various organizations in Indonesia, includinggovernment institutions, profit and non-profit organizations. With suchcontributions, these organizations are expected to offer sustainableinnovations so that they are able to support economic growth nationallyand to improve Indonesia’s development index.

ICBMR, which has been carried out annually for a decade by Depart-ment of Management FEB UI, is therefore conducted once again thisyear as a forum that serves academicians both from Indonesia and over-seas universities to deliver various research results, covering financeand accounting, economics, operations, marketing, human resourcemanagement, and strategic management. This international conferenceis also the best place for academicians to establish a global network thatallows them sharing with those having the same research interest andto proceed a further research collaboration.

Finally, I would like to express our sincere gratitude and appreciationto all of those who have supported this event: the rector of UniversitasIndonesia Prof. Dr. Ir. Muhammad Anis, M.Met, our keynote speakersMr. Wimboh Santoso, Ph.D. and Prof. WONG Poh Kam, the scientificcommittee Mr. Zaafri Ananto Husodo, PhD and the organizing com-mittee Mr. Sigit Sulistiyo Wibowo, Ph.D, both who played a key role inthe success this conference, all of our reviewers, keynote speakers andthe last, but certainly not least, all the participants.

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I hope that you enjoy the 12th ICBMR, not to mention Bali with allits attractions.

Professor Ari Kuncoro, Ph.D.Dean of the Faculty of Economics and BusinessUniversitas Indonesia

Scientific Committee

“Rethinking Innovationand Human Behaviour inIndustry 4.0”

Prof. Irwan Adi Ekaputra − Universitas IndonesiaProf. Rosmimah Mohd Roslin − Universiti Teknologi MARA, MalaysiaProf. Togar M. Simatupang − Institut Teknologi Bandung, IndonesiaProf. Ujang Sumarwan − Institut Pertanian Bogor, IndonesiaProf. Wong, Poh Kam − National University of SingaporeDr. Abdillah Ahsan − Universitas IndonesiaDr. Adith Cheosakul − Chulalongkorn University, ThailandDr. Ancella A. Hermawan − Universitas IndonesiaDr. Anton Wachidin Widjaja − Universitas Bhayangkara Jakarta RayaDr. Aria Farah Mita − Universitas IndonesiaDr. Arief Wibisono Lubis − Universitas IndonesiaDr. Arnold Japutra − University of Western AustraliaDr. Arviansyah − Universitas IndonesiaDr. Athor Subroto − Universitas IndonesiaDr. Ayu Wahyuningsih − Universitas TadulakoDr. Bernadia Nugraheni − Macquire UniversityDr. Daniel Tumpal H Aruan − Universitas IndonesiaDr. Desi Adhariani − Universitas IndonesiaDr. Dony Abdul Chalid − Universitas IndonesiaDr. Dyah Setyaningrum − Universitas IndonesiaDr. Elok Savitri Pusparini − Universitas IndonesiaDr. Elvia Shauki − University of South Australia.Dr. Eng. Saiful Anwar − Ahmad Dahlan School of EconomicsDr. Evi Rina Simanjuntak − Binus UniversityDr. Evony Silvino Violita − Universitas IndonesiaDr. Fanny Martdianty − Universitas IndonesiaDr. Fitriany − Universitas IndonesiaDr. Ganjar Mustika − Universitas IndonesiaDr. Gita Gayatri − Universitas IndonesiaDr. Guido Benny − Taylor’s University MalaysiaDr. Hanny Nasution − Monash UniversityDr. Hooy Chee Wooi − Universiti Sains MalaysiaDr. Ibrahim Rohman − United Nations University

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Dr. Icuk Rangga Bawono − Universitas Jenderal SoedirmanDr. John Walsh − Shinawatra UniversityDr. Juniarti − Universitas PetraDr. Kanti Pertiwi − Universitas IndonesiaDr. Khairunnisa Musari − State Islamic University of JemberDr. Lily Sudhartio − Universitas IndonesiaDr. M. Hamsal − Binus UniversityDr. M.M. Nanny Dewi Tanzil − Universitas PadjajaranDr. Maman Setiawan − Universitas PadjajaranDr. Maria Ulpah − Universitas IndonesiaDr. Mirwan Surya Perdhana − Universitas DiponegoroDr. Mokhamad Anwar − Universitas PadjajaranDr. Nur Indah Riwajanti − State Polytechnic of MalangDr. Nuri Wulandari − STIE Indonesia Banking SchoolDr. Putu S. PIartrini − University UdayanaDr. Rahmatina Awaliah Kasri − Universitas IndonesiaDr. Rangga Handika − Tokyo International UniversityDr. Ratih Dyah Kusumastuti − Universitas IndonesiaDr. Retno Tanding Suryandari − Universitas Sebelas MaretDr. Riani Rachmawati − Universitas IndonesiaDr. Rifelly Dewi Astuti − Universitas IndonesiaDr. Rizal Edy Halim − Universitas IndonesiaDr. Rofikoh Rokhim − Universitas IndonesiaDr. Ruslan Prijadi − Universitas IndonesiaDr. Sigit S. Wibowo − Universitas IndonesiaDr. Siti Nurwahyuningsih Harahap − Universitas IndonesiaDr. Sri Rahayu Hijrah Hati − Universitas IndonesiaDr. Sylvia Veronica − Universitas IndonesiaDr. Tengku Ezni Balqiah − Universitas IndonesiaDr. Vera Diyanti − Universitas IndonesiaDr. Vera Pujani − Universitas AndalasDr. Viverita − Universitas IndonesiaDr. Yanki Hartijasti − Universitas IndonesiaDr. Yosman Bustaman − Swiss German UniversityDr. Yulianti Abbas − Universitas IndonesiaDr. Yunizar − Universitas PadjajaranDr. Zaafri Ananto Husodo − Universitas IndonesiaDr. Zuliani Dalimunthe − Universitas Indonesia

About Faculty of Economics & Business Universitas In-donesia

The Faculty of Economics and Business, Universitas Indonesia (FEB UI)story commenced on September 18, 1950, when the Social-EconomicDepartment of Faculty Law of Indonesia University (FHUI) separateditself to become the Faculty of Economics and Business-UI (FEB UI).At the same time the National Academy student who also studied theEconomics join the new faculty. They then become a first generationstudents in FEB UI. Uniquely, the 300 students are taught by the numberof teaching staff that was very limited, and any administrative affairswere handled by the students themselves. Starting from that, thenSeptember 18, 1950, is officially designated as the anniversary of FEBUI. It can be said that FEB UI is the oldest higher education institutionof economics learning in Indonesia.

FEB UI is a modern, dynamic, and friendly campus as a place toforge knowledge for prospective national leaders. Located in twoplaces, namely the Widjojo Nitisastro Depok campus and the SumitroDjojohadikusumo Salemba campus, FEB UI is fully committed to pro-viding excellent service for every learning process of higher educationsupported by adequate facilities and competent lecturers in their re-spective fields. FEB UI is leading in the experience and developmentof economics and business. FEB UI has succeeded in creating the bestgraduates of the country that have the potential to play an importantrole in the realm of Indonesian government.

The glory of FEB UI at the national level has become a trigger tocontinuously improve its quality and achievements in order to competeinternationally. With the increasing number of research and scientificpublications of FEB UI in international journals, FEB UI has proventrack records of its research capability.

The international reputation of FEB UI provides opportunities foracademic collaboration with several university partners including Aus-tralian National University, Melbourne University, University of Gronin-gen, Kobe University, Hiroshima University, Yokohama National Uni-versity, and Paris University of Nanterre-Paris X.

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Armed with the spirit of integration, FEB UI is now ready to becomepart of the Universitas Indonesia towards World Class University bycarrying out the Faculty of Economics and Business as a world classeconomics and business school.For more information, go to http://www.feb.ui.ac.id/en/.

About Management Research Center FEB UI

The Management Research Center (MRC) was established in March2006 under the Department of Management Faculty of Economics andBusiness Universitas Indonesia. The rationalé for the establishmentis due to the particular reason of relative weakness on managementresearch in Indonesia. MRC is national research center dedicated tocontribute the theoretical, empirical, and practical research in recentmanagement issues.

The intention is not only to stimulate research and discussion withinscholarly circles, but also to enhance business community and publicawareness to stimulate thinking on and exploring solutions in manage-ment issues.

The MRC is placed to assist local, regional and international scholars,and other researchers that provide a congenial and stimulating intel-lectual environment, encouraging the fullest interaction and exchangeideas.

To achieve these aims, the MRC conducts a range of research pro-grams; holds public lecturers, seminars, workshops, and conferences;publishes research journals and books, support research facilities, in-cluding data, financial subsidy and library collections.

Currently, MRC is publishing three nationally accredited journalswhere each journal has a particular scope of research. The current headof MRC is Dr Ratih Dyah Kusumastuti.

• The South East Asian Journal of Management (http://journal.ui.ac.id/tseajm).

• Indonesian Capital Market Review (http://journal.ui.ac.id/icmr).

• ASEAN Marketing Journal (http://journal.ui.ac.id/amj).

Collaborations

Sponsors

Supported by

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Journal Partners1. Asian Academy of Management Journal of Accounting & Finance

(http://web.usm.my/journal/aamjaf/main.htm)

2. Asian Academy of Management Journal (http://web.usm.my/aamj/)

3. European Journal of International Management (https://www.inderscience.com/jhome.php?jcode=ejim)

4. International Journal of Business and Society (http://www.ijbs.unimas.my)

5. International Journal of Economics and Management (http://econ.upm.edu.my/ijem/)

6. International Journal of Emerging Markets (https://www.emeraldinsight.com/journal/ijoem)

Conference Program

Wednesday, 7 November 2018

12.00-13.00 Registration and Lunch13.00-13.15 Opening Ceremony13.15-13.30 Welcome Speech from

Prof.Dr.Ir. Muhammad Anis, M. Met.Rector, Universitas Indonesia

13.30-13.45 Welcome Speech fromProf. Ari Kuncoro, S.E., M.A., Ph.D.Dean, Faculty of Economics and Business, Universitas Indonesia

13.45-13.55 Report from the Organizing CommitteeSigit Sulistiyo Wibowo, Ph.D., CFP

13.55-14.55 Keynote Speech and Q&A SessionWimboh Santoso, Ph.D.*Chairman, The Board of CommisionersThe Financial Service Authority/Otoritas Jasa keuangan

14.55-15.05 Rundown announcement15.05-15.20 Photo session15.20-15.35 Coffee break15.45-17.45 Parallel Session 1

19.00-21.00 Gala Dinner

Thursday, 8 November 2018

08.00-10.00 Keynote Speech and Q&A SessionProf. WONG Poh KamNational University of Singapore

10.00-10.15 Coffee break10.20-12.20 Parallel Session 2

12.20-13.30 Lunch break13.45-16.15 Parallel Session 3

16.30-17.00 Best paper award and closing ceremony17.00-18.00 Certificate collection and administration

*to be confirmed

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Parallel Session 1: 7 November 2018, 15:45-17:45

No. Title Author(s)

Human Resource Management Legong RoomChair: Prof B. A/L Parasuraman (Universiti Malaya Kelantan)

1 Exploratory Study on Caree Sustainability of Singer TalentAudition Finalist

Alkadri Kusalendra Siharis,Muhammad Mustaqim

2 The Role of Leader-Member Exchange, Psychological Em-powerment and Employee Engagement in Building Inno-vative Work Behavior : A Case form Indonesian Company

Vallya Sharina Dahniar, AryanaSatriya, Ayu Aprilianti Lizar

3 Expatriation Process in Indonesian Local Firms Dian Prihadyanti, Karlina Sari, NurLaili, Dudi Hidayat, Budi Triyono,Chichi S. Laksani

4 Developing Organizational Capacity for Change, The Roleof Leader and Trust. A Case Study from Indonesia Gov-ernment Institution

Firman Bayu Raamadani, AyuAprilianti Lizar

5 Effect Knowledge Sharing on Affective Commitment: TheMediation Role of Competency Development (Case Studyon Gen Y Employees at PT PP (Persero), Tbk Head Office)

Nara Pangestika Vidyani, PutriMega Desiana

6 Interpersonal Justice and Informational Justice in Predict-ing Organizational Deviance

Ema Nurmaya, Mohamed NazidinNazlan, Ani Muttaqiyathun

Finance Pendet RoomChair: Dr Zaäfri A. Husodo (Universitas Indonesia)

1 Does Country Characteristics Affect ComplementaryLevel of Financial and Tax Aggressiveness?

Nurul Aisyah Rachmawati, Sid-harta Utama, Dwi Martani

2 Real Exchange Rate and Real Stock Price in ASEAN-5Countries

Della Pidanti Nareswari, Sigit S. Wi-bowo

3 Trading Patterns Before and After Suspension in Indone-sian Stock Exchange

Indriana Damayanti, Maria Ulpah

4 The Effects of The Characteristics of Board of Director toBank Portfolio Risk

Malinda Ria Fariza, Dony AbdulChalid

5 The Impacts of Financial Literacy on Investment Decisionof Non-Donation Based Crowdfunding in Indonesia

Jihan Nadra Arifah, Zuliani Dal-imunthe

6 A Cross Country Study of Indirect Effect of IFRS Adoptionon Earnings Management

Agustin Setya Ningrum, RatnaWardhani, Aria Farahmita

General/Strategic Management Joged RoomChair: Dr Budi W. Soetjipto (Universitas Indonesia)

1 Managing Eco-Friendly Strategy Implementation and ItsImpacts on Business Performance: The Role of Organiza-tional Strategic Capabilities

Elok Savitri Pusparini, Budi WidjajaSoetjipto, Riani Rachmawati, LilySudhartio, Uliyatun Nikmah

2 Implications of Sustainability toward Green InnovationInvestment: Livestock Industry Perspective

Muzammal Ilyas Sindhu

3 Social Business Model Canvas Development and FormingEntrepreneurial Ecosystem for Waste Banks to AchieveSustainability (Case Study in Bali, Indonesia)

Mochammad Gerry Yudha, LilySudhartio

4 Do Local Values Affect Performances? The Study of TriHita Karana Culture on Hotel Performance in Bali

Jaya Ishwari

5 Peer-to-Peer Accommodation Service Process: A Frame-work of Service Blueprint

Anna Riana Putriya, Pri Hermawan,Santi Novani, Utomo Sarjono Putro

6 Antecendents of Copability and Its Effect on LearningOrganization (An Empirical Study at A Life InsuranceCompany)

Lily Sudhartio, Anton WachidinWidjaja, Sun Yi

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No. Title Author(s)

Marketing Kecak RoomChair: Dr Putu S. Piartrini (Universitas Udayana)

1 Value Co-Creation: The Effect on Relationship Quality Kurnia Endah Riana, Rizal EdyHalim, Chairy

2 Examining the Determinants of Indonesian Tourists’ Loy-alty toward Komodo National Park Area

Devia Tiwi Puspitasari, Hapsari Se-tyowardhani

3 Product Quality, Convenience and Brand Loyalty: theCase of SilverQueen’s Adolescent Consumers

Cynthia Chadwick, Putu SaroyiniPiartrini

4 Factors that Influence the Attitude and Behavioral Inten-tion towards Online Food Delivery Service Apps in thecase of Go-Food App Users in Indonesia

Gagah Triyuniar Prabowo, AgungNugroho

5 Factors that Deter Films Piracy in Muslim Consumers:The Role of Attitude as Moderator

Rezdi Luthfan Pramananda, Sri Ra-hayu Hijrah Hati

6 Evaluating the Effect of YouTube Advertising towardsYoung Customers’ Purchase Intention

Dhiyaa Nadhifa Aziza, Rifelly DewiAstuti

Finance Rama Sinta BallroomChair: Prof Irwan Adi Ekaputra (Universitas Indonesia)

1 Financial Inclusion, Banking Stability and Digital Technol-ogy Development in ASEAN

Raisha Noor Azzahra, Viverita

2 Analysis of Book-Tax Difference Effect on Audit Fees:Corporate Governance as a Moderating Variable

Shinta Adelaide, Desi Adhariani

3 Volume and Frequency Relation with Volatility Returnson the Islamic and Mixed Capital Market

Rahma Tri Benita

4 Stock Valuation of PT indika Energy Tbk: Impact of Ac-quisition Kideco Jaya Agung

Alvin Setiawan Rusli, Taufik Fatur-rohman

5 The Choice of Infrastructure Project Financing Strategies:A Case of Seaport in Indonesia

Waskitha Weninging Galih, RuslanPrijadi

6 The Dominant Country for Regional Portfolios: Evidencefrom Listed Companies in Southeast Asias Emerging Mar-ket

Nurita Anggraini, Zaafri AnantoHusodo

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Parallel Session 2: 8 November 2018, 10.20 - 12.20

No. Title Author(s)

Economics Legong RoomChair: Dr Maddaremmeng A. Panennungi (Universitas indonesia)

1 The Impact of Indonesian Non-Tariff Measures on Im-port : The Case of Sanitary and Phytosanitary (SPS) andTechnical Barriers to Trade (TBT)

Ilman Hakim, Maddaremmeng A.Panennungi

2 Is Men More Shopaholic Online? Gender Difference inOnline Shopping

Faizal Pradhana, Prani Sastiono

3 B2C vs C2C : Willingness to Pay Premium Between TwoE-Commerce Business Models

Muhammad Faishal, NuryakinChaikal

4 Granger Causality of Exchange Rates and Stock Indicesin 10 Emerging Market Countries: During QuantitativeEasing and Tapering Off Period

Samitra Rismadani

5 The Effect of International Trade on Workers’ BargainingPower in Indonesia

Novrizal Novrizal, Maddarem-meng A Panennungi

6 Implication of Digital Innovation to Employment, Inequal-ity, and Economic Growth in Indonesia

Iraln Adiyatma Rum, Endang Tau-fiqurahman, Cupian, Dika Djatnika

Operations and Marketing Pendet RoomChair: Prof. WONG Poh Kam (National University of Singapore)

1 Filling Capability Analysis For Shampoo Production: ACase Study in Manufacture Industry

Zianpa Miko Mei Irwanto, Moham-mad Hamsal, Humiras Hardi Purba

2 Using System Dynamics to Understand the Effect of PriceDiscounted Program on the Logistic at a Pharmacy Logis-tic Company

Maulia Farsiko Gama, Athor Sub-roto

3 Lean Operations Implementation at An Indonesian ShoeProducer

Bonny Tofani Antonio, Ratih DyahKusumastuti

4 The Role of Network Externalities and Innovation Charac-teristics in Influencing Intentions to Use an Online Bank:Moderating Technological Anxiety

Nancy Gloria Miranda, TengkuEzni Balqiah

5 Determinant Factors for Tourists in using Peer to PeerAccommodation Services using The Theory of PlannedBehavior: A Study on Airbnb Accommodation Services

Ariestiyani Rahayu, Daniel TumpalH. Aruan

6 Effect of Protection for Prospective Lenders in OnlinePeer-to-Peer Lending in Indonesia

Nur Amalia, Zuliani Dalimunthe

Islamic Finance Joged RoomChair: Dr Rahmatina Awaliah Kasri (Universitas Indonesia)

1 Tawhidic Hyper-Phenomenology as A Method in Account-ing Research

Tumirin

2 The Effect of Risk Preference and Corporate Governanceon the Islamic Banks’s Efficiency Using Stochastic FrontierApproach

Ratnika Detri Goddess, Evony Sil-vino Violita

3 Prediction Model For Sharia Mutual Fund Persistence InIndonesia Capital Market

Zaenal Arifin, Sri Mulyati

4 Towards a Theory of Religiosity-Constrained Mental Ac-counting: An Experimental Study From Islamic Setting

Fuad Fuad

5 Role of Knowledge, Trust and Religiosity in ExplainingCash Waqf amongst Indonesian Muslim Millennial

Rahmatina Awaliah Kasri, SyafiraRizma Chaerunnisa

6 Mispricing on Islamic Stock Markets in ASEAN Countries Arienka Prilitaningtyas, M. BudiPrasetyo

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No. Title Author(s)

Finance Kecak RoomChair: Dr Yosman Bustaman (Swiss German Univ., Indonesia)

1 Poisson Regression Analysis for Risk Classification andDerivation of Mortality Rate Estimation in Life InsuranceCompany (Study Case at One of Life Insurance Companyin Indonesia)

Puspita Tyas Agnesti, Yogo Pur-wono

2 Transitory and Permanent Effects in Market Microstruc-ture Stability Model With Jumps

Usman Arief, Zaafri Ananto Hu-sodo

3 Does Growth and Monitoring Effect Investor Funding forDigital Start-ups?

Mashitha Pelangi Firlana, ZulianiDalimunthe, Helman Arif

4 The Effects of Tax Avoidance and Tax Risk Managementon the Earnings Response Coefficient: Empirical Evidencefrom Multinational Companies in Indonesia and Malaysia

Indah Masri, Akhmad Syakhroza,Ratna Wardhani, Samingun

5 Foreign Related Parties Transactions as Tax AvoidanceStrategy in Indonesia: The Role of Corporate Governance

Nuritomo Nuritomo, SidhartaUtama, Ancella A. Hermawan

6 Monetary Shock, Banking Risk and Bank Lending Chan-nel; Evidence from Indonesian Banking Industry

Yosman Bustaman, Viverita, Nur-dayadi

Marketing Rama Sinta BallroomChair: Dr Rifelly Dewi Astuti (Universitas Indonesia)

1 The Analysis of Celebgram in Developing ConsumerBrand Perceptions and Intention to Buy Luxury BrandCosmetics

Irdina Tiara Putri, Rifelly Dewi As-tuti

2 Factors that Affect Intention to Pirate Music for MoslemConsumers

Adira Alam Amtha, Sri Rahayu Hi-jrah Hati

3 Contribution of Cultural Event to the Visitor’s Intention toRevisit and Recommend Tourist Destination, Case Study:Dieng Culture Festival, Central Java, Indonesia

Hamida Mutia Maharani, HapsariSetyowardhani

4 Consumer Brand Loyalty of Fast Fashion Brands of YoungConsumers in Indonesia

Azzahra Sabina Tohir, Agung Nu-groho

5 Perceptions of Technical and Social Presence towards Cus-tomers Trust and Value: Click-And-Brick versus Pure-Click Retailers

Joshua Jeffrey Kurniawan, AdrianAchyar

6 Antecedent Factors of Self-Gifting Behavior and Its Influ-ence toward Post-Purchase Regret on Millenials Genera-tion

Alia Rachma Ningtias, Sri Daryanti,Ilma Savira Putri

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Parallel Session 3: 8 November 2018, 13:45-16:15

No. Title Author(s)

Human Resources and General Management Legong RoomChair: Dr Aryana Satria (Universitas Indonesia)

1 Business Behavior in Islamic Perspective: A Case Study ofMuslim Women Entrepreneur in Ikatan Wanita PengusahaIndonesia (IWAPI) Members

Muhammad Nafik Hadi Ryandono,Sesha Ayu Permatasari, Ida Wi-jayanti

2 The Impact of Fun at Work on Creative Performance andOrganizational Citizenship Behaviour

Herkin Prabowo, Nayunda And-hika Sari, Ayu Aprilianti, AryanaSatrya

3 The Mediating Role of Job Characteristic on The Rela-tionship between Human Resource Practice, EmployeeEngagement and Affective Organizational Commitment

Muhammad Baiquni, AyuAprilianti Lizar

4 The Mediating Role of Organizational Commitment andthe Moderating Role of Service Climate

Wayan Gede Supartha, Irene HannaH. Sihombing, Ni Nyoman Sukerti

5 Enhancing Performance of Regional Development Banks Ferry Novindra Idroes, Ernie Tis-nawati Sule, Popy Rufaidah

6 The Influence of Resource Complementary, TechnologyCompetence and Supply Chain Risk Criteria on SupplyChain Collaboration

Hally Hanafiah

Finance Pendet RoomChair: Dr Tastaftiyan Risfandy (Universitas Sebelas Maret, Indonesia)

1 Capital Adequacy Requirement, Cost of Financial Interne-diation, and Risk Taking Behavior of Indonesia BankingSector

Rika Angelia Sirait, RofikohRokhim

2 The Effect of Board of Commissioners’ Diversity on Cor-porate Expropriation

Vera Diyanty, Louis Rio Prasetyo

3 The Impact of Thin Capitalization Rule on Capital Stucture Venantius Budi Jatmiko, ZaafriAnanto Husodo

4 Performance Evaluation of Momentum Strategy using52-week high data in Indonesia Stock Exchange period2012-2016

Yulius Kurniawan

5 The Role of Stock Split and Investor Attention in Dimin-ishing Disposition Effect of Individual Investors

Wendy Kesuma, Irwan Adi Ekapu-tra, Dony Abdul Chalid

6 Competition and Stability in the Credit Industry: Bankingvs. Factoring Industries

Marta Degl’Innocenti, FrancoFiordelisi, Irwan Trinugroho

7 Intellectual Capital As Firm Value Predictor (EmpiricalStudy on Intellectual Capital Index)

Dyna Rachmawati, Mudjilah Ra-hayu, Hendra Wijaya

Finance Joged RoomChair: Dr Dony Abdul Chalid (Universitas Indonesia)

1 Idiosyncratic Risk and Firm Characteristic on IslamicStocks of 4 ASEAN Countries in 2005-2017

Putri Utami, M. Budi Prasetyo

2 Bond Auction Mispricing and Determinants in Indonesia:Study Case of Government Project Based Sukuk Issuance(2012-2016)

Ristiyanti Hayu Pertiwi, Tika Arun-dina, Rahmatina A. Kasri

3 Does Conventional Monetary Policy Affect Islamic MoneyMarket and Banking Sector Differently? A Closer Lookunder Dual Banking System in Indonesia

Amrial Amrial, Ristiyanti Hayu Per-tiwi, Tika Arundina

4 Analysis of Implementation of Indonesian GovernmentRegulation Number 20 Year 2015 Related To Tenure AndRotation of Accounting Firms and Public Accountants toAudit Quality

Muhammad Faisal, Fitriany fitriany,Muthia Prima Nirmala

5 SMEs Lending and Market Concentration Putri Amelia, Dony Abdul Chalid

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No. Title Author(s)

6 Dividend and Firm Value in ASEAN 6: Is There a ReserveJ-Shaped?

Irma Octaviani, Rofikoh Rokhim

7 Intended Use of Proceeds and Post-Issue Operating Per-formance of Indonesian IPO Firms

Kaleb Hasudungan, WardatulAdawiyah

Marketing Rama Sinta BallroomChair: Dr Tengku Ezni Balqiah (Universitas Indonesia)

1 The Effect of Intrinsic and Extrinsic Product AttributeBeliefs on Value, Satisfaction, and Loyalty; ComparativeStudy between Local and Global Coffee Brand

Annisa Amalia, Tengku EzniBalqiah

2 The Influence of Knowledge and Religiousity with Media-tion of Attitude Toward Intention of Repurchasing HalalCosmetics

Ilma Savira Putri, Sri Daryanti, AliaRachma Ningtias

3 Factors Influencing the Intensity of Using a Digital SocialNetwork among Indonesian Millennial Tourist

Annisa Husnul Latifah, Hapsari Se-tyowardhani

4 The Influence of Shopping Dimensions on Consumers’Motivation to Shop at Malls: A Study on SupermalKarawaci Shopping Center

Luthfy Andruskha, Agung Nu-groho

5 Analysis on Motivational Factors of MSMEs En-trepreneurs to Become Halalpreneurs

Mumtaz Anwari, Sri Rahayu HijrahHati

Finance Kecak RoomChair: Dr Maria Ulpah (Universitas Indonesia)

1 Ownership Concentration, Corporate Liquidity and Divi-dend Payment Policy Evidence Indonesian Financial In-dustries

Antonius Torang Siahaan, YosmanBustaman

2 Composite Systemic Risk Ranking for Identification ofSystemically Important Financial Institutions In Indonesia

Arza Faldy Prameswara, ZaafriAnanto Husodo

3 Investment Cash Flow Sensitivity and Cash-Cash FlowSensitivity: Cross Country Evidence

Maria Ulpah

4 Cost Structure and Payout Policy in Indonesia 2011-2015 Elizabeth Lesmana Pualam, Sigit S.Wibowo

5 The Role of Financial Integration and Liberalization onFinancial Stability in ASEAN-5 Countries

Arsya Rimala Arief, Sigit S. Wibowo

6 Corporate Social Responsibility Performance and BankingSoundness in Indonesia: Should The Industry Be MoreSocially Responsible?

Winalda Ajaniara Perdana, RofikohRokhim

Venue and Contacts

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28

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Abstract

Session 1: Human Resources

Exploratory Study on Career Sustainability of Singer TalentAudition Finalist

Alkadri Kusalendra Siharis (siharis.alkadri@gmail.com)Muhammad Mustaqim (mohammad@mustaqim.tv)

Universitas Indonesia

ABSTRACT

The talent search event have become very popular in indonesia becausethis program give people a chance for a better life from their previouslife condition in the form of talent competition in a particular field. Inthis event, the participants are selected and trained to improve theirperformance. The elimination system creating a competitive environ-ment among participants. The most popular talent search events is thetalent search event in the singing field (longest running event). Usuallysuch events promise cash and or contracts with certain companies. Thepurpose of this research is to explore the career of talent search finalistsin singing field, after participating in talent search audition. Explorationis done through various sources such as: interviews with the grandfinalist in the talent search event in the field of singing. An observationusing Youtube video to know the activities of finalists during the talentsearch event. Data obtained through the internet, is a secondary datathat can be used as a source of information about the sustainability ofa finalist’s career after following the talent search event. The researchresults show that the sustainability of a finalist’s career is determinedby the attitude of the finalist itself, whether the finalist continue tostruggle to learn things so that they can convince their managementto keep promoting them to be able to compete in Indonesian musicindustry.Type of paper: empiricalKeywords: Talented people, talent audition, singer, work contract.

30

The Role of Leader-Member Exchange, PsychologicalEmpowerment and Employee Engagement in Building Innovative

Work Behavior: A Case form Indonesian Company

Vallya Sharina Dahniar (vallya.sharina@ui.ac.id)Aryana Satriya (aryanasatrya@yahoo.com.au)

Ayu Aprilianti Lizar (aprilianti@ui.ac.id)Nayunda Andhika Sari (nayunda@ui.ac.id)

Universitas Indonesia

ABSTRACT

This quantitative study aims to investigate the influence of leader-member exchange (LMX) and psychological empowerment on innova-tive work behavior mediated by employee engagement. 226 employeeswho work in a fast moving consumer goods company in Indonesiawere involved as respondents. Data were analyzed using the StructuralEquation Modeling (SEM). The results of this study show that LMXhas direct positive influence on innovative work behavior, whereas psy-chological empowerment does not have direct influence on innovativework behavior. In addition, employee engagement has positive influ-ence on innovative work behavior. Thus, psychological empowermentwas found to have an indirect positive influence on innovative workbehavior through employee engagement. It indicates that employee en-gagement has worked as partial mediator between LMX and innovativebehavior, and as full mediator between psychological empowermentand innovative work behavior.Type of paper: empiricalKeywords: Leader-member exchange (LMX), psychological empow-erment, employee engagement, innovative work behavior, structuralequation modeling.

31

Expatriation Process in Indonesian Local Firms

Dian Prihadyanti (dian.prihadyanti@gmail.com)Karlina Sari

Nur LailiDudi HidayatBudi Triyono

Chichi S. LaksaniIndonesian Institute of Sciences, Indonesia

ABSTRACT

This paper attempts to analyze expatriation process in Indonesian localfirms. Qualitative approach with multiple case studies was used toanalyze expatriation process in Indonesian local firms which employedexpatriates with expertise in engineering area. Results of case studiesshows different pattern of expatriation process with and without in-volvement from external parties. Recruitment and selection process inIndonesian local firms was tent to be closed and semi-formal system.Different selection criteria were found for process with and without in-volvement of external parties. Multi-stage recruitment process emergedwhen there was involvement of external parties. Other finding revealsthat Human Resource Department (HRD) held more passive role, whilethe more active role was held by expatriate’s co-workers and top levelmanagement. Language and cultural aspect was identified as inhibitorsfor knowledge transfer (KT). KT success could be achieved in two typesof condition related with KT readiness, either from the expatriate orthe co-worker.Type of paper: case studyKeywords: expatriate, knowledge transfer, local employee, Indonesianlocal firm, expatriation process, expatriate management, technologicallearning, human resource management.

32

Effect Knowledge Sharing on Affective Commitment: TheMediation Role of Competency Development (Case Study on

Gen Y Employees at PT PP (Persero), Tbk Head Office)

Nara P. Vidyani (nara.pangestika51@ui.ac.id)Putri M. Desiana (putri.mega71@ui.ac.id)

University, Indonesia

ABSTRACT

Discussion related to affective commitment becomes one of the prob-lems in human resource management. This study aims to explore themediation role of competency development on the effect of knowl-edge sharing with affective commitment. The research uses the cross-sectional survey to collect primary data. A sample was obtained fromGen Y employee in PT PP (Persero), Tbk Head Office. In total, 152

people filled and the questionnaires were usable. The research data pro-cessing by using Lisrel 8.50 software with Structural Equation Modeling(SEM) technique. The results of this research indicate that knowledgesharing proved to have a significant effect on the competency develop-ment. And also, affective commitment on the Gen Y employees in PT PP(Persero), Tbk Head Office and competency development proved signifi-cantly and positively mediate the influence between knowledge sharingwith affective commitment to employees Gen Y in PT PP (Persero),Tbk Head Office. This study was limited to the Gen Y employees inPT PP (Persero), Tbk Head Office. Therefore, researchers should testthe research model further in several construction service industries.The more knowledge shared in the organization; the higher employeecompetencies will become. This study contributes to Gen Y’s knowl-edge sharing literature, competency development and also affectivecommitment.Type of paper: empiricalKeywords: gen Y, knowledge sharing, affective commitment, competencydevelopment, Sructural Equation Modeling (SEM).

33

Interpersonal Justice And Informational Justice In PredictingOrganizational Deviance: Empirical Evidence From Indonesian

Nurse

Ema Nurmaya (emanurmaya@yahoo.com)Universitas Ahmad Dahlan, Indonesia

Mohamed Nazidin Nazlan (nazlan@kyp.edu.my)Kolej Universiti Yayasan Pahang, MalaysiaAni Muttaqiyathun (animtq@gmail.com)Universitas Ahmad Dahlan, Indonesia

ABSTRACT

The proponent of workplace deviance study suggest to understandthe antecedent of the deviance because of its negative and seriousimpact. Specifically this study investigates the relationship betweeninterpersonal and informational justice and organizational devianceand hypothesized that, interpersonal and informational justice arenegative related to organizational deviance. To test the hypotheses,regression analysis was employed to analyze the survey data collectedfrom 479 nurses from hospital in Indonesia. The result of this studyshowed that there is: (a) a negative relationship between interpersonaljustice and organizational deviance; and (b) a negative relationshipbetween informational justice and organizational deviance. With regardto the contribution, this study provides evidences in understandingantecedent of organizational deviance, and proposes prescriptions tomanagers in minimizing organizational deviance such as increasingcommunication training and soft skill training. Future studies incorpo-rating such as personality, religiosity, job availability and collectivistculture are valuable to improve the understanding of organizationaldeviance.Type of paper: empirical

34

Session 1: Finance

Does Country Characteristics Affect the Complementary Level ofFinancial and Tax Aggressiveness?

Nurul Aisyah Rachmawati (nurulaisyah@universitas-trilogi.ac.id)Universitas Trilogi, Indonesia

Sidharta Utama (sidhartautama@yahoo.com)Dwi Martani (dwimartani@yahoo.com)

Ratna Wardhani (ratnawardhani@yahoo.com)Universitas Indonesia

ABSTRACT

This study aims to examine whether two country characteristics−book-tax conformity and law enforcement−affect the complementary levelof financial and tax aggressiveness. Previous studies have producedinconclusive results for the relationship between financial and tax ag-gressiveness. This study fills the gap by examining the country-leveldeterminants of the complementary level of financial and tax aggres-siveness. It also develops a new measure of the complementary levelof financial and tax aggressiveness. Using a sample of firms from 15

countries in East Asia and Europe from 2014 to 2016, this study findsthat firms from countries with stronger law enforcement tend to have alower complementary level of financial and tax aggressiveness. Con-trary to the hypothesis, this study also finds that firms from countrieswith higher book-tax conformity tend to have a higher complementarylevel of financial and tax aggressiveness. In an additional test, thisstudy shows that in countries with lower book-tax conformity, the ef-fect of law enforcement on the complementary level of financial andtax aggressiveness is stronger than in countries with higher book-taxconformity. These results suggest that country characteristics influ-ence managers’ decisions to either present financial statements and taxreporting aggressively at the same time or not.Type of paper: empiricalKeywords: complementary level of financial and tax aggressiveness,book-tax conformity, law enforcement.

35

Real Exchange Rate and Real Stock Price in ASEAN-5 Countries

Della Pidanti Nareswari (dellapidanti@gmail.com)Sigit S. Wibowo (sigit.sw@ui.ac.id)

Universitas Indonesia

ABSTRACT

This study examines the relationship of the real exchange rate of do-mestic currency to US Dollar and real stock price in ASEAN-5 countriesfor the period 2000-2018. Correlations between the two variables areestimated using the Dynamic Conditional Correlation GARCH whilecausality between real exchange rate and real stock prices is measuredusing the Granger causality test. The direction of the relationship be-tween the two variables is also examined to determine the relationshipbetween the two variables in accordance with ’flow-oriented’ modelor ’stock-oriented’ model. This study shows that in Indonesia the realexchange rate movement causes the real stock price movement in ac-cordance with ’flow-oriented’ model while in Thailand the relationshipis reversed consistent with ’stock-oriented’ model. Meanwhile, in Sin-gapore, the study found there is bidirectional causality between realexchange rate and real stock price. However, in the unconventionalmonetary policy era, each country shows a different type of causalrelationship. Indonesia has a bivariate causal relationship, while the re-lationship in Malaysia and Filipina is in accordance with ’flow-oriented’model.Type of paper: empiricalKeywords: GARCH, volatility, ASEAN-5, stock price, exchange rate,causality.

36

Trading Patterns Before and After Suspension In Indonesian StockExchange

Indriana DamayantiMaria Ulpah (mulpah@ui.ac.id)

Universitas Indonesia

ABSTRACT

The goals of this research are to examine the trading pattern and perfor-mance of stock before and after suspension in Indonesia Stock Exchange.The research data used in this research are stock listed in suspensionand unsuspension announcement from 2016 until 2017. Trading patterninvestigated in this research related to the behavioral finance theorywhich divided by the status of investor, domestic and foreign investor.To examine investor behavior, the author use Net Investment Flowcalculation then analyzed using Pearson Correlation and Vector AutoRegression (VAR). While to calculate trading performance, the authoruse cumulative return calculation. By using the daily transaction data ofdomestic and foreign investor, proved that herding behavior is strongerin foreign investor than domestic investor in both suspension period.Investment performance of foreign investors are better than domesticinvestors. Domestic investors have information-based model as aninvesting pattern, while foreign investor has value investing model inbefore suspension and information-based model after suspension.

Type of paper: empiricalKeywords: trading pattern, investor type, herding, price reversal, sus-pension.

37

The Effects of The Characteristics of Board of Director to BankPortfolio Risk

Malinda Ria FarizaDony Abdul Chalid (donny.abdul@ui.ac.id)

Universitas Indonesia

ABSTRACT

This study aims to analyse the effect of the characteristics of directors(such as age, education, gender) to bank portfolio risk. Using data of33 banks listed on Indonesia Stock Exchange in 2011-2015, this researchperforms panel data regression. The result of data analysis using paneldata fixed-effect model shows that regarding to the characteristics ofdirectors, only background of education level that influence to portfoliorisk. On the other hand, bank-specific factors such as the size of themanaged public savings, the amount of loans granted, the level of prof-itability have significant effect on the level of bank risk. These resultsindicate that the characteristics of the board of directors has less influ-ence on the level of risk of banks in Indonesia than the characteristicsof banks.Type of paper: empiricalKeywords: bank, executive, portfolio risk, age, female, education.

38

The Impacts of Financial Literacy on Investment Decision ofNon-Donation Based Crowdfunding in Indonesia

Jihan Nadra Arifah (jihan.nadra@gmail.com)Zuliani Dalimunthe (zulianifeui89@gmail.com)

Universitas Indonesia

ABSTRACT

The present study investigates the heterogeneity of the financial literacylevel between backers and nonbackers of non-donation-based crowd-funding. The study extends the analysis to the predictors of financialliteracy and its impact on the investment decision of non-donationcrowdfunding. The hypotheses are examined through binary logisticregression. The study’s findings are as folloes. First, there is hetero-geneity in the financial literacy level between backers and nonbackers.Second, the financial literacy level is found to be affected by residence,education, income, and stock market product ownership. Third, thereis a tendency that investors in crowdfunding to be in the younger agegroup. Fourth, male has higher chance to invest in non-donation crowd-funding than female despite there is no difference in financial literacybetween them. Fifth, individuals in the lowest income group were morelikely to invest in non-donation crowdfunding than individuals withlarger incomes.Type of paper: empiricalKeywords: non-donation crowdfunding, financial literacy, crowdfundingbackers, crowdfunding investment decision, Indonesia.

39

A Cross Country Study of Indirect Effect of IFRS Adoption onEarnings Management

Agustin Setya Ningrum (setyaningrum@ui.ac.id)Ratna Wardhani (ratnawardhani@yahoo.com)

Aria Farahmita (aria.farahmita@ui.ac.id)Universitas Indonesia

ABSTRACT

The main purpose of this study is to investigate whether there is in-direct effect of IFRS adoption on earnings management, through anincrease of analyst coverage. This paper is motivated by the fact thatIFRS adoption could increase the number of analysts who follow thecompanies. The existence of analysts will increase the role of oversightof the company, which will decrease earnings management practices.This study is a cross-country study using 3.786 firm years of entitiesamong 30 countries. This study proves that there is positive indirecteffect of IFRS adoption on earnings management, through increase ofanalyst coverage. Increase of analyst coverage will push companiesto do earnings management practices. This study also confirms thatIFRS adoption has negative direct effect on earnings management. Thispaper develops new measurement of IFRS adoption, which are differentfrom previous studies. This scores are based on information presentedin the IFRS Jurisdiction Profile published by the IFRS Foundation. Thismeasurement becomes an additional contribution to further studies.Type of paper: empiricalKeywords: IFRS adoption, earnings management, financial analyst, ana-lyst coverage, analyst following, discretionary accruals, cross countryanalysis.

40

Session 1: General/Strategic Management

Managing Eco-Friendly Strategy Implementation and Its Impactson Business Performance: The Role of Organizational Strategic

Capabilities

Elok S. Pusparini (eloksp@ui.ac.id)Budi Widjaja Soetjipto

Riani RachmawatiLily Sudhartio

Uliyatun NikmahUniversitas Indonesia

ABSTRACT

The increasing movements on the importance of environmental sustain-ability in the emerging country like Indonesia forces organizations tomajor the responsibilities in determining array of strategic initiatives toanswer the green business inquiries. We build on the organizationalcapabilities literature of strategic management to explain how orga-nizations strengthen their performances toward the implementationof eco-friendly business strategy. Using a model integrating resource-based theory, organizational behavior theory, and strategic businessunit perspectives, we examine how Indonesia’s hotel industry responseto the green business pressures, how organizational capabilities takea major role in defining organizational strategic response towards thepressures, and their impact upon business performances. This studyused SPSS software followed by mediation test to analyze the effect ofSBU’s Strategic Capabilities toward Business Performance mediated byEco-Friendly Strategy Implementation. Research data were collectedthrough the questionnaires, resulting 102 data from 3 up to 5 starredhotels across major cities in Indonesia. Our findings indicate that or-ganizational strategic capabilities has a positive and significant effecton eco-friendly strategy implementation and business performances re-spectively. Drawing from these results, the implications of the findingsupon industrial, policies, and further research avenues are discussed.Type of paper: empiricalKeywords: Business performance, eco-friendly business strategy, organi-zational strategic capabilities, hotel industry, Indonesia.

41

Implications of Sustainability toward Green Innovation Investment:Livestock Industry Perspective

Muzammal Ilyas Sindhu (muzammal496@gmail.com)Bahria University, Pakistan

ABSTRACT

This research study examines the effect of sustainability on green inno-vation in the livestock industry of Pakistan. The main concern is relatedto the different dimensions of sustainability that influence green inno-vation. The cross-sectional analysis conducted was based on primarydata collected from the livestock industry that works in the Pakistanidistricts. The empirical findings are based on structural equation mod-eling and propose that the economic, institutional and social aspectscomprehensively affected green innovation. The environmental aspecthas shown a comparatively less-contributing effect, which means asignificant relationship exists between environmental sustainabilityand the investment in green innovation. The results recommend thateconomic and institutional sustainability could be a good source ofinnovation that affects social sustainability.Type of paper: empiricalKeywords: green innovation investment; environmental sustainability;societal sustainability; institutional sustainability; economic sustainabil-ity; structural equation modeling.

42

Social Business Model Canvas Development and FormingEntrepreneurial Ecosystem for Waste Banks to Achieve

Sustainability (Case Study in Bali, Indonesia)

Mochammad Gerry Yudha (mochammadgerryyudha@gmail.com)Lily Sudhartio (Lily Sudhartio)

Universitas Indonesia

ABSTRACT

This article provided general overview to understand comprehensive in-sight for waste banks in Bali to achieve a value-increment of the plasticwaste by producing plastic recycled products, described through socialbusiness model canvas development. In addition, it also explainedabout strategic alliances implications to form entrepreneurial ecosys-tem. Social business model canvas is used as “beyond-profit businessmodels” because it fits the requirement of a social enterprise to defineand further innovate its business model. Furthermore, entrepreneurialecosystems building is important to do because ecosystem will help thebusiness working as usual. Hence, to help forming an entrepreneurialecosystem, strategic alliance will be used, in hope that the business willachieve sustainability. This research used qualitative data analysis gath-ered through conference calls, in-depth interviews, direct observation,and documentation, supported with literature review as the reference offorming entrepreneurial ecosystem. As the result, social business modelcanvas for waste banks in Bali to produce plastic recycled productswas developed, also the action plans to form entrepreneurial ecosystemusing strategic alliances. The result is expected to positively affect wastebanks’ sustainability in Bali and to enhance the value of plastic wasteso that the amount of plastic waste will indirectly be reduced. Lastly,this research can be a reference for managerial implication of wastebanks in Bali to produce plastic recycled products.Type of paper: reviewKeywords: Business model canvas, entrepreneurial ecosystem, socialbusiness model canvas, social entrepreneurship, strategic alliances,strategic management.

43

Do Local Values Affect Performances? The Study of Tri HitaKarana Culture on Hotel Performance in Bali

Jaya Ishwari (jaya.ishwari@gmail.com)Sari Wahyuni

Ignatius HeruwastoAnton W. WidjajaEka N. Kencana

Universitas Indonesia

ABSTRACT

It is argued culture is one of the important sources of competitive advan-tage for a firm, which serves as a driver for business performance. By‘collectively program the mind’ of its members, organizational culturecan generate similar behavior among members, and create harmonyamong people of different levels in an organization or different back-ground. For Bali and its people, the philosophy and/or values thatguide people to live harmoniously with the others as well their sur-rounding is called Tri Hita Karana. This work is directed to study theinfluence of these values as organizational culture of hotels in Bali ontheir performances by the mediation of dynamic capabilities. Apply-ing structural equation modeling, Tri Hita Karana’s culture and hotelperformances are positioned as exogenous and endogenous latent, re-spectively. This study reveals Tri Hita Karana’s culture does not showa direct significant effect on performances, on the contrary dynamiccapabilities acts as a mediating variable. However, by the mediation ofhotels’ capabilities to face the industry competition, Tri Hita Karana isproven to significantly affect hotel performances in Bali.

Type of paper: empiricalKeywords: Bali, culture, hotel performance, Tri Hita Karana.

44

Peer-to-Peer Accommodation Service Process: A Framework ofService Blueprint

Anna Riana Putriya (anna_riana@sbm-itb.ac.id)Pri Hermawan (prihermawan@sbm-itb.ac.id)

Santi Novani (snovani@sbm-itb.ac.id)Utomo Sarjono Putro (utomo@sbm-itb.ac.id)

Institut Teknologi Bandung

ABSTRACT

Sharing economy is the result of technological developments that cre-ate an innovative new business model and create a revolution in howbusiness entities interact. Peer-to-peer accommodation (P2P) createsan online marketplace where peer providers and consumers meet eachother’s needs and can exchange roles. Without ownership of assets,P2P accommodation becomes a strong competitor of the hotel. Thisphenomenon creates opportunities for Indonesia in improving com-petitiveness among other ASEAN countries. This preliminary studybecomes important and relevant with the phenomenon of sharing econ-omy considering not too much research that discusses the uniquenessand dynamics of interaction that occurs in perspective of service domi-nant logic (SDL). This study uses the Soft System Methodology (SSM)approach precisely is the first stage that is defining an unstructured sit-uation. Approaches of gathering data is using participant observation,online observation, and in-depth interview. Interactions between actorscan be explored using service blueprint framework. In perspective ofservice dominant logic (SDL), the ability to identify operant resources(people and process) is crucial for value co-creation.Type of paper: empiricalKeywords: sharing economy, peer-to-peer accommodation, Airbnb, ser-vice dominant logic.

45

Antecendents of Copability And Its Effect on LearningOrganization (An Empirical Study at A Life Insurance Company)

Lily Sudhartio (lily.sudhartio@gmail.com)Universitas Indonesia

Anton Wachidin Widjaja (antonwachidinwidjaja@yahoo.com)University Bhayangkara Jakarta Raya, Indonesia

Sun YiUniversitas Indonesia

ABSTRACT

This research is focused on the role of copability (cope-ability), asthe ability to cope with internal problem, on the development or thetransformation of organizations into learning organization. Buildinglearning organization, researchers usually link organizational adapt-ability and the dynamic organizational routines, that is formed fromostensive and performative routines. This research investigates theimpact of adaptability, ostensive routines, and performative routineson the copability of the firm and how their copability affects learningorganization. With the participation of 205 respondents of middle-top management team, taken from a life insurance company and itsagencies, this study reveals that ostensive routines and performativeroutines are the antecedents of copability, and copability has positiveeffect on the building and/or transforming organizations into learningorganizations. But organizational adaptability does not have a positiveeffect on the copability of the firm.Type of paper: empiricalKeywords: copability, adaptability, dynamic organizational routines,ostensive routines, performative routines, learning organization.

46

Session 1: Marketing

Value Co-Creation: The Effect on Relationship Quality

Kurnia Endah Riana (endah.riana@gmail.com)Rizal Edy Halim (rizaledy@gmail.com)

ChairyUniversitas Indonesia

ABSTRACT

This research aims to investigate the influence of value co-creation onrelationship quality. Co-creation has relational properties, but thereare limited studies that discuss the effect of value co-creation on re-lationship outcomes such as customer satisfaction, commitment, andbenefit/trust confidence, and social benefits. Hypotheses testing is doneusing experimental method. Value co-creation scenarios are developedusing purchasing of tourism travel services setting. Value co-creationis manipulated into high and low conditions. The independent t-testresults show that there are differences on confident benefit/trust andsocial benefit in high and low value co-creation groups.Type of paper: empiricalKeywords: value co-creation, relationship quality, tourism travel service.

47

Examining the Determinants of Indonesian Tourists’ Loyaltytoward Komodo National Park Area

Devia Tiwi Puspitasari (devia.tiwi@ui.ac.id)Hapsari Setyowardhani (hapsari.setyowardhani@gmail.com)

Universitas Indonesia

ABSTRACT

In the relationship marketing concept, maintaining a mutually benefi-cial and strong relationship with visitors is considered key to buildingdestination loyalty. Tourist relationship perceptions, which consisting ofservice fairness, destination image, and service quality are consideredfactors that can affect tourists’ relationship quality with a destinationand their destination loyalty. This quantitative research aims to exam-ine the determinants of tourists’ loyalty by analyzing the relationshipsamong tourist relationship perceptions, relationship quality, and des-tination loyalty of Indonesian tourists toward Komodo National ParkArea as natural tourist destination. A total of 140 respondents whohad visited the Komodo National Park Area within the last year werecollected and the data were processed by using structural equationmodeling. The results show that destination image and service qualityare important factors affecting destination satisfaction and trust towarddestination service providers. Furthermore, destination satisfactionplays a vital role in determining and affecting tourists’ destinationloyalty.Type of paper: empiricalKeywords: relationship marketing, destination tourism, service fairness,destination image, service quality, relationship quality, destinationloyalty.

48

Product Quality, Convenience and Brand Loyalty: A Case ofSilverQueen’s Adolescent Consumers

Cynthia ChadwickPutu Saroyini Piartrini (royetrini@unud.ac.id)

Udayana University, Indonesia

ABSTRACT

Present study analyzed relationship between product quality and re-purchase behavior as well as relationship between convenience andrepurchase intention behavior based on perspective of Expectancy Dis-confirmation Theory and Resource Matching Theory. Data accumulatedfrom 366 students of Saphomore and senior high school in DenpasarCity, with convenience sampling technic who consumed Silver Queenchocolate. Difference from previous study, present study reveals that inadolescent segment market of chocolate bar product, the relationshipbetween quality as well as convenience and repurchase intention arenot significant. The reasons of the finding maybe student’s limitedfinancial capacity, subjective norms or different consumption orienta-tion between children segment market and adolescent segment market.Further study needs to explore the effects of subjective norms andshopping orientation effects on intention to purchase chocolate barproduct.Type of paper: empiricalKeywords: product quality, convenience, intention to repurchase.

49

Factors that Influence the Attitude and Behavioral Intentiontowards Online Food Delivery Service Apps in the case of Go-Food

App Users in Indonesia

Gagah Triyuniar PrabowoAgung Nugroho (a.nugroho@ui.ac.id)

Universitas Indonesia

ABSTRACT

The development of the internet as one of the media that grows bigenough in Indonesia makes the people of Indonesia have tendencyto do various things through internet facilities and other supportingapplications. Consumers Indonesia also tend to prefer to shop onlinebecause it is considered to provide comfort or convenience motivationand economic value better than traditional shopping. It also occursin the food and beverage sector, which encourages the emergence ofonline food delivery services or OFD services.

This study aims to examine the effects of convenience motivationand post-usage usefulness as well as several other factors toward at-titudes toward online food delivery service (AODS) and behavioralintention toward online food delivery service (BIOFDS), using casestudy of mobile application service Go-Food’s users . The sample ofthis study is the users of Go-Food service in various regions in Indone-sia, following the service area covered by Go-Food service. The resultsimply that most of the proposed hypothesis were proven supported,except for some relationships from price-saving orientation, prior onlinepurchase experience, and convenience motivation to attitude towardsOFD service.Type of paper: empiricalKeywords: food delivery, online food delivery service, mobile apps,convenience motivation, post-usage usefulness, attitude toward onlinefood delivery services, behavioral intention, Go-Jek, Go-Food.

50

Factors That Deter Films Piracy in Muslim Consumers: The Role ofAttitude as Moderator

Rezdi Luthfan Pramananda (rezdi.luthfan@gmail.com)Sri Rahayu Hijrah Hati (sri.rahayu72@ui.ac.id)

Universitas Indonesia

ABSTRACT

Movie piracy has become a global phenomenon that affects the overallmovie industry. Globally, damaged caused by piracy is not small, finan-cially. Indonesia is also affected by this phenomenon, where piracy iscommon in the country. This research is aimed to understand factorsthat deter films piracy in Muslim consumers, considering Indonesiais the biggest Muslim majority country in the world, that consist ofPerceived Risk, Perceived Benefits, Attitude Towards Digital Piracy,Facilitating Conditions, Habitual Digital Piracy Behavior, and Intentionto Stop Using Pirated Films. This research uses 166 samples, thenanalyzed using Partial Least Squares-Structural Equation Modelling(PLS-SEM) method with SmartPLS software. The results of this researchshows that Perceived Risk, Attitude Towards Digital Piracy, and Facili-tating Conditions can be deterrence against films piracy. On top of that,Attitude Towards Digital Piracy is also found to moderate relationshipbetween Facilitating Conditions and Habitual Digital Piracy Behavior.Type of paper: empiricalKeywords: movie piracy, Muslim consumers, PLS-SEM, attitude towardsdigital piracy, habitual digital piracy behavior.

51

Evaluating The Effect of YouTube Advertising towards YoungCustomers’ Purchase Intention

Dhiyaa Nadhifa Aziza (dhiyaanadhifa@gmail.com)Rifelly Dewi Astuti (rifelly.dewi@ui.ac.id)

Universitas Indonesia

ABSTRACT

The use of YouTube advertising by companies to communicate withtheir customers is increasing nowadays, along with the increasingnumber of YouTube audiences. But still a few scholars who examine theeffectiveness of YouTube advertising on customers’ purchase intention.This study aims (1) to analyze the factors of YouTube advertising (e.g.entertainment, informativeness, customization, and irritation) and theirimpact on perceived YouTube advertising value; and (2) to evaluate theeffect of YouTube advertising towards customers’ purchase intention.This was a conclusive quantitative research with 261 respondents agedrange 18-29 years. This study found that the more entertaining and themore informative of a YouTube advertising would increase the YouTubeadvertising value. However, the customization and irritation factorsthat was assumed to influence the YouTube advertising value, were notproven. Finally, the YouTube advertising value positive significantlyinfluenced the customers’ purchase intention and partially mediated bybrand awareness.Type of paper: empiricalKeywords: YouTube advertising, advertising value, purchase intention.

Session 1: Finance

52

Financial Inclusion, Banking Stability and Digital TechnologyDevelopment in ASEAN

Raisha Noor Azzahra (raishazhr@gmail.com)Viverita (viverita.d@ui.ac.id)

Universitas Indonesia

ABSTRACT

This study aims to examine the effect of financial inclusion that sup-ported by digital technology development on income inequality, povertyand banking stability in ASEAN’s emerging countries. This study usesGeneralized Method of Moment (GMM) and Generalized Least Square(GLS) methodology, using annual data for a 10-year period from 2007

to 2016. Results of the study show that digital technology development(usage of mobile phone) can improve financial inclusion because thetechnology makes it easier to access financial services to people who aredifficult to reach. Furthermore, financial inclusion has negative effecton income inequality, but other empirical results show that financialinclusion has no impact on poverty. This finding indicates that formalfinancial services seems to be unable to reach the poor. Finally, theempirical evidence show that financial inclusion and income equalitycontribute positively to banking stability. These findings suggest thatthe usage of banking and formal financial services still dominated bymiddle and upper society.Type of paper: empiricalKeywords: financial inclusion, banking stability, digital technology, mo-bile phone, income inequality, poverty

53

Analysis of Book-Tax Difference Effect on Audit Fees: CorporateGovernance as a Moderating Variable

Shinta AdelaideDesi Adhariani (desi.adhariani@ui.ac.id)

Universitas Indonesia

ABSTRACT

This study aims to examine the association between book-tax differencesand audit fees in Indonesia. This study also examines the effect ofcorporate governance as a variable to moderate the association. Thesample used is companies listed on the Indonesia Stock Exchange in2012 until 2016, which consist of 309 observations. The results indicatethat book-tax differences have no significant effect on audit fees. Corporategovernance is also not proven to weaken the association. Interpretationof the results might imply that book-tax differences have not been seenas a risk factor by auditors in determining the audit fees, probably dueto the low potential of earnings management from such differences.Type of paper: empiricalKeywords: Book-tax differences, audit fees, board of commissioners,audit committee, corporate governance.

54

Volume and Frequency Relation with Volatility Returns on theIslamic and Mixed Capital Market

Rahma Tri Benita (rahmatribenita1212@yahoo.co.id)Ministry of National Development Planning, Indonesia

ABSTRACT

This research was aimed to estimate the correlation between volume andfrequency and volatility return in Islamic and mixed capital markets.The correlation between volume and frequency and volatility returncould be used to identify the process of distribution of information,distribution of informed traders and the characteristics of transactionmodel. Indonesian capital market is a proxy of mixed capital market,while capital market in Saudi Arabia is proxy of Islamic capital markets.The results of research indicates that: 1). The process of informationdistribution of MDH in Islamic and mixed capital markets constitutean efficient market. 2). The process of information distribution ofSIAH in Islamic and mixed capital markets identifies the informedtraders. 3). The characteristics of informed traders transaction modelin Indonesia is the implementation of competitive transaction model.4). The characteristics of informed transaction model in Saudi Arabia isthe implementation of strategic transaction model. The characteristicsof the distribution of information and their impact on market behaviordepend on the difference of number of informed traders, the strengthof information and the structure of environment.Type of paper: empiricalKeywords: GARCH, SIAH, MDH.

55

Stock Valuation of PT Indika Energy Tbk: Impact of AcquisitionKideco Jaya Agung

Alvin Setiawan Rusli (alvin.setiawan@sbm-itb.ac.id)Taufik Faturrohman (taufik@sbm-itb.ac.id)

Institute Teknologi Bandung, Indonesia

ABSTRACT

A fluctuation of the price of the energy commodity in several yearsaffected the energy companies around the world including Indonesiaenergy companies. Most of the company that selling coal experiencedan increase in revenue in 2017 due to rapidly rising coal price in2017. The increase in revenue in 2017 also experienced by PT. IndikaEnergy, Tbk. and some of INDY subsidiaries in December 2017. Theincrease in revenue and core profit also affected the stock price of INDYthat increased significantly from IDR 705/shares at the end of 2016

to IDR 3.060/shares at the end of 2017. This final project conductedto examine the impact of the acquisition of Kideco Jaya Agung, thethird largest coal producer in Indonesia on INDY profits by identifyingsome factors and condition that might affect the intrinsic value andperformance of the company. The valuation process in this final projectconducted using absolute and relative valuation model. The result ofthe absolute valuation and relative valuation showed that the stockof INDY is undervalued. Based on the results of the valuation therecommendation for investors is to BUY INDY’s stock because INDYstocks still undervalued by the market.Type of paper: empiricalKeywords: acquisition, coal, energy, stock, valuation.

56

The Choice of Infrastructure Project Financing Strategies: A Case ofSeaport in Indonesia

Waskitha Weninging Galih (waskithawgalih@gmail.com)Ruslan Prijadi (rprijadi@gmail.com)

Universitas Indonesia

Purpose − This paper aims to understand the financing decision forseaport project in Indonesia from various perspectives.Methodology − An online survey and a focus group discussion areconducted to gain insights from the Indonesian seaport stakeholders togain insights on the most effective financing vehicle for seaport infras-tructure projects. Furthermore, this paper presents a case study of aseaport infrastructure project financing strategy by constructing cashflow simulation model based on different financing scenarios to illus-trate the effectiveness of the alternate ways to finance seaport projects.Findings − The survey finds that Indonesian domestic banks syndica-tion and Public-Private Partnership schemes with government fiscalsupport are the two most awaited financing vehicles. The cash flowsimulation shows that, when a project’s internal rate of return is a basisof the decision to distribute project dividend, the project sponsors couldbenefit from adjusting the project’s capital structure.Value − This paper contributes to the research and management prac-tice by revealing the expectation and reality of infrastructure projectfinancing in Indonesia.Type of paper: Case studyKeywords: financing, Indonesia, infrastructure, seaport.

57

The Dominant Country for Regional Portfolios: Evidence fromListed Companies in Southeast Asia’s Emerging Market

Nurita AnggrainiZaäfri Ananto Husodo (z.husodo@ui.ac.id)

Universitas Indonesia

ABSTRACT

This study investigates the Five Factor Fama-French Model as a basemeasurement tool to analyze the dominant country of regional port-folios formed in emerging markets Southeast Asia. We use firmslisted on Indonesia, Malaysia, Philippines, Thailand, and Vietnamstock exchange to form the regional portfolios. To test the Five FactorFama-French Model, we use the data from 2008 to 2017. The resultsshow that the dominant country in each group of regional portfoliossuch as small-high (SH), small-low (SL), big-high (BH), big-low (BL),small-robust (SR), small-weak (SW), big-robust (BR), big-weak (BW),small-aggressive (SA), small-conservative (SC), big-aggressive (BA), andbig-conservative (BC) varied by analyzing the ranking of each countryin the regional portfolio formed based on market value per portfolio,percentage of contribution in sample, and total shares per portfolio.It shows the diversity of choices for investors in determining whichcountry to invest in emerging markets Southeast Asia.Type of paper: empiricalKeywords: Five Factor Fama-French model, emerging market, SoutheastAsia, dominant country, regional portfolios.

58

Session 2: Economics

The Impact of Indonesian Non-Tariff Measures on Import: TheCase of Sanitary and Phytosanitary (SPS) and Technical Barriers to

Trade (TBT)

Ilman Hakim (hakim.ilman84@gmail.com)Universitas Indonesia and Ministry of Foreign Affairs of Indonesia

Maddaremmeng A. Panennungi (maddaremmeng@gmail.com)Universitas Indonesia

ABSTRACT

The purpose of this study is to estimate the impact of Indonesian non-tariff measures, in particular Sanitary and Phytosanitary and TechnicalBarriers to Trade on import for the period 2006-2015. This study em-ploys the method that is developed by Kee et al. (2009) and estimatedresults are converted into ad-valorem equivalent (AVE) to identify theprice effect. This study found that SPS and TBT measures are signif-icantly reduce Indonesian import on aggregate level. However, theimpact on disaggregated level (HS 2 digit) can be different either trade-reducing or demand-enhancing. The affected sectors are not alwaysin line with the result of inventory measures indicated by frequencyindex and coverage ratio. Moreover, this study also suggest that In-donesia tend to have high AVE of SPS and TBT measures in low tariffssub-sectors.Type of paper: empiricalKeywords: Ad-valorem equivalent, Indonesia, sanitary and phytosani-tary, technical barriers to trade.

59

Is Men More Shopaholic Online? Gender Difference in OnlineShopping

Faizal Pradhana (faizalpradhana@gmail.com)Prani Sastiono (prani@ui.ac.id)

Universitas Indonesia

ABSTRACT

The purpose of this research is to see if the difference of genderedpreference in online shopping occurs. We focus on the emotional level,the level of practicality, and also the level of trust felt by every individualregarding online shopping, which relates towards the frequency ofonline shopping and the total amount spent on online shopping. Thetechnique of data collection is done via a questionnaire that can befilled online. This research found that women are online shoppingmore than men, but regarding total spending, men spend more thanwomen. Level of trust becomes the biggest factor for men in decidinghow often they do online shopping and how much money they spend.Men’s risk aversion influences their activities in online shopping, whilewomen’s risk aversion has no significant effects.Type of paper: empiricalKeywords: online shopping, gender difference, emotional level, practi-cality, trust, risk aversion.

B2C vs. C2C: Willingness to Pay Premium Between TwoE-Commerce Business Models

Muhammad Faishal (faishal2803@gmail.com)Chaikal Nuryakin

Universitas Indonesia

ABSTRACT

This research is conducted to answer two questions: finding the de-terminants that influence the Willingness to Pay (WTP) for a productwhen shopping online and finding the premium from WTP when beingcompared with two business models, which are Business to Consumer(B2C) and Consumer to Consumer (C2C). This research was conductedat Universitas Indonesia with 330 respondents by using a questionnaireas the survey instrument. We elicit subject’s WTP on four productswhich are T-shirts, Jackets, Shoes, and Watches. Beside the businessmodel, we introduced trust and risk preference along with other controlvariables in the regression model. In general, the regression resultsshow that trust, risk preference, and the business model has strong cor-relation with subjects’ WTP. In addition, our study suggest a significantprice premium of products sell in the B2C compare to the C2C.Type of paper: empiricalKeywords: WTP, trust, risk preference, bad experience, B2C, C2C.

60

Granger Causality of Exchange Rates and Stock Indices in 10Emerging Market Countries: During Quantitative Easing and

Tapering Off Period

Samitra Rismadani (samitra.r@gmail.com)

ABSTRACT

This study was conducted to see the strength of Emerging Marketeconomic (EM) withstand shocks that arise when The Fed changes theQuantitative Easing (QE) to Tapering Off policy (TO). The EM countriesin this study were selected based on trade relations with the US, thoseare China, India, South Korea, Taiwan, Indonesia, Argentina, Brazil,Mexico, Russia and Turkey. This study also conducted by using GrangerCausality method and VAR, then comparing the result of each variable(S&P 500 index, EM’s stock index and exchange rate) before and afterthe implementation of QE and TO (January 1st, 2008 - December 31st,2017). Granger Causality test results show that there is a change indirection from QE to TO period in most EM countries. This changereflects that the shock of TO policy did not directly bring down thecapital market of EM countries despite capital outflows. EM countriesare believed to have strong domestic and regional economic, so there isan economic transmission when the shock occurs.Type of paper: empiricalKeywords: emerging market, exchange rate, quantitative easing, stockindices, tapering off.

61

The Effect of International Trade on Workers’ Bargaining Power inIndonesia

Novrizal (novrizal.papansal@gmail.com)Maddaremmeng A. Panennungi (maddaremmeng@gmail.com)

Universitas Indonesia

ABSTRACT

This study is aimed at analyzed the effect of international trade on work-ers’ bargaining power in Indonesia with sample more than 40,000 firmsfrom manufacturing industry during period 2006-2015. Regressionanalysis was conducted by using panel data from national sector leveland national province level. The national sector level showed that ex-port did not affect workers’ bargaining power, while import decreasedworkers’ bargaining power. While national province level showed thatexport did not affect workers’ bargaining power, but import increasedworkers’ bargaining power.Type of paper: empirical

Implication of Digital Innovation to Employment, Inequality andEconomic Growth in Indonesia

Irlan Adiyatma Rum (irlan.rum@unpad.ac.id)Endang Taufiqurahman

Cupian,Dika Djatnika

Universitas Padjadjaran, Indonesia

ABSTRACT

Digital innovation has created new way of development. Indonesianow recognized the impact of digital innovation since it changes howthe social-economy works. This paper tries to measure the implicationof digital innovation to macro indicators, i.e. to employment rate, Giniratio and GDP growth. We develop digital evolution index for Indone-sia. It measures the development of digital innovation for 33 provincesbetween the period 2012 and 2015. We analyze the impact of digitalinnovation using the absolute difference of coefficient from the simpleregression model. We found that digital evolution in Indonesia hasdiversity across provinces. Although the disparity of digital evolutionis quite large, we can conclude that overall the impact of digital inno-vation has positive impact to the economic growth. But at the sametime, it creates dispute for employment rate and income inequality. Inthis study, we also create the digital evolution map across provinces inIndonesia. Type of paper: empiricalKeywords: digital evolution index, employment, inequality, economicgrowth, Indonesia.

62

Session 2: Operations and Marketing

Filling Capability Analysis for Shampoo Production: A Case Studyin Manufacture Industry

Miko Mei Irwanto (miko_mei_irwanto@yahoo.co.id)Mercu Buana University, Indonesia

Mohammad HamsalHumiras Hardi Purba

Bina Nusantara University, Indonesia

ABSTRACT

In today’s cosmetic market, shampoo is one consumer goods that ishighly demanded. Its market competition is also very tough. In thissituation, a shampoo manufacturing company should find a strategy toproduce a high quality product with a good performance, less cost, andless losses. Thus, improvement made must be straight to the point. Toachieve that, accountability with hard data and evidence-based decisionmaking is needed. Statistical Process Control provides accountabilityand is very essential in this quality-performance effort. A statistical pro-cess control chart allows us to see the capability of a process, whethera process is working correctly or not, whether the variation is naturalor not, and what corrective action that we should take. To measurethe capability, a term Cp/Cpk is used. Cp is an indicator for processcapability, while Cpk is adjustment for Cp for the effect of non-centereddistribution. In this paper, we will focus on improving the filling ca-pability of a shampoo production process. A good filling capabilityis shown by Cp > 1.67 and Cpk > 1.67. Based on the study that hasbeen done, it can be concluded that by having a good setting parameter,shut-off nozzle, flowmetric filling machine, proper size of hopper, andcomprehensive training for operators, capability issue of the fillingmachine can be solved.

Type of paper: empiricalKeywords: Statistical Process Control, control chart, production, fillingcapability, shampoo, control parameters.

63

Using System Dynamics to Understand the Effect of PriceDiscounted Program on the Logistic at a Pharmacy Logistic

Company

Maulia Farsiko Gama (farsikogama@gmail.com)Athor Subroto (athor.subroto@ui.ac.id)

Universitas Indonesia

ABSTRACT

This study aims to understand the impact of a price discounted promo-tion on a product named as “Mixagrip Flu and Batuk (Mixagrip)” at PTEnseval Putera Megatrading’s logistic performance. Mixagrip is beingused in this research as it represents the characteristics of the pricediscounted products in the company. Using actual sale, sale forecast,inventory product 2013-2014 data, and system dynamics approach, wesee that the price discount program will fluctuate the sales and inven-tory level. The fluctuation ultimately is responsible for the downturnof the company’s profits. We highlight the need for the coordinationbetween marketing and logistics of the company to ensure its minimalimpact on the company profit by making minor fluctuation.Type of paper: empiricalKeywords: price discount, logistic, inventory, pharmacy product.

64

Lean Operations Implementation at An Indonesian Shoe Producer

Bonny Tofani AntonioRatih Dyah Kusumastuti (ratih.dyah@ui.ac.id)

Universitas Indonesia

ABSTRACT

GoodShoes is a fast-growing Indonesian shoe producer that has prob-lems in both operations and finance. Even though the level of inventoryis high, GoodShoes often experiences stockout that results in the lossof sales opportunity. This condition affects the company’s profitabilitywhich continues to decline in the first quarter of 2016. To improvethis condition the management took the initiatives to apply the leanoperations in the company. The objectives of this paper are to ana-lyze the impact of the program on GoodShoes’ performance, identifyfactors that determine the success of the implementation, and pro-pose further improvements. Comparisons of operational and financialperformance before and after implementation are conducted to an-alyze the program’s impact. We then ask six representatives fromGoodShoes and its vendor to rank the key success factors (identifiedfrom literature) of the lean operations implementation at the company.The results show that GoodShoes experiences a significant increase inperformance. Furthermore, five most important factors affecting thesuccessful implementation of the program are managements’ commit-ment and involvement, teamwork, communication, cultural changemanagement, and sustainability of improvement activities. However,the current performance can still be improved by the use of informationtechnology, implementation of Kanban system, direct delivery of rawmaterials, and lead time reduction.Type of paper: empiricalKeywords: Lean operations, key success factors, shoe producer, Indone-sia.

65

The Role of Network Externalities and Innovation Characteristicsin Influencing Intentions to Use an Online Bank: Moderating

Technological Anxiety

Nancy Gloria Miranda (nancygloria@ymail.com)Tengku Ezni Balqiah (tengku.ezni@ui.ac.id)

Universitas Indonesia

ABSTRACT

Digital innovations have an impact on most dimensions of modern life;as such, many business models integrate online or virtual forms, whichincludes banking. The online bank is a virtual form of a bank’s businessmodel that utilizes smartphones and the Internet. This paper intends toanalyze the role of network externalities, innovation characteristics, andtechnological anxiety on the intention to use new forms of this financialbusiness model. The model of this research uses three aforementionedtheories on intention to use online bank in Indonesia. This paper furtherverifies the relationship between NE to intention to use and examineswhether any mediating effect of innovation and or technological anxietyhave a moderating effect on the proposed relationships. With the partic-ipation of 174 respondents, the data were gathered through purposivesampling and then analyzed using structural equation modeling withthree types of relationships: direct, indirect/mediation, and moderation.The result show that network externalities have direct effects on inten-tion to use, most characteristics of innovation have mediating effectson previous relationships, and technological anxiety has a moderatingeffect in some paths.Type of paper: empiricalKeywords: network externalities, innovations characteristics, technologi-cal anxiety, intention to use, online bank.

66

Determinant Factors for Tourists in using Peer to PeerAccommodation Services using The Theory of Planned Behavior: A

Study on Airbnb Accommodation Services

Ariestiyani Rahayu (ariestiyani@gmail.com)Daniel Tumpal H. Aruan (dtumpal@ui.ac.id)

Universitas Indonesia

ABSTRACT

To better understanding the phenomenon of collaborative consumptionin tourism marketplace, this paper aims to investigate the determinantfactors of tourists’ attitudes and their behavioral intention to participatein collaborative consumption accommodation services in the future,especially using Airbnb. The rising of peer to peer accommodationonline platform has enabled both private individual and communityparticipating in the collaborative consumption of sharing spare spaceservices. This current trend presents potential transformation of thecompetitive landscape in the accommodation sector. The purpose ofthis study is to examine factors that drive and hinder the use of peer-to-peer accommodation service in tourism marketplace. The findings areexpected to give contribution to marketing literature and as guidancefor marketers and accommodation providers in creating the effectivestrategy to get more customers participating in the sharing economy.Type of paper: empiricalKeywords: sharing economy, collaborative consumption, attitude, sub-jective norms, perceived behavioral control, behavior intention.

67

Effect of Protection for Prospective Lenders in Online Peer-to-PeerLending in Indonesia

Nur Amalia (nur.amalia41@ui.ac.id)Zuliani Dalimunthe (zuliani_d@ui.ac.id)

Rachmadi Agus Triono (rachmadi78@gmail.com)Universitas Indonesia

ABSTRACT

This study aims to analyze how lender protection for default risk pro-vided by peer to peer lending platform effect to prospective lenders’lending intentions and using platform trust as the mediating vari-able. We collected and summarized protection terms provided by P2Pplatform through examined 17 platforms websites and interview twoplatforms’ management. We also survey 303 respondents accessedthrough online questionnaire. Analysis of this study uses StructuralEquation Model method. Respondents are prospective lenders whofamiliar with P2P Lending concept and some of them are real lenders.We found that there are several policies perceived as protection forlenders such as having SLIK checking, using machine learning technol-ogy to record and analyze loan, joining in international forums relatedto credit risk management and collaborate with financing company toovercome the risk of shortage fund. We also found that the peer topeer lending platform should be able to build lender trust by makinglenders feel protected to invest on the platform despite the possibilityof default risk. We suggest that Financial Services Authority (calledOJK) may create protection policies to protect lenders in the marketlike Indonesian Securities Protection Fund (ISPF).Type of paper: empiricalKeywords: financial technology, peer to peer lending, lender protection,lending intention, platform trust.

68

Session 2: Islamic Finance

Tawhidic Hyper-Phenomenology as A Method in AccountingResearch

Tumirin (tumirin@umg.ac.id)Muhammadiyah University of Gresik, Indonesia

ABSTRACT

The objectives of this study are to develop and formulate tawhid-basedresearch method in accounting research. Islamic paradigm is an essen-tial belief established by Muslim’s heart and belief that illustrates thebeing that lies behind it and is the reality and truth that are visibleto the eyes of our heart and explains the nature of being. This studyused literature review method. Tawhidic hyper-phenomenology is de-veloped based on Ibnu Arabi’s philosophy of being and Don Ihde’sphilosophy of technology. Philosophy of being becomes the basis fortruth revelation with hyper-instruments of the Qur’an, hadith, andheart or mind. The use of hyper-instruments by informant (body one)produces informant perception called hyper body. The hyper body isthe result of hermeneutical spiritual process. Philosophy of technol-ogy is the basis for which the truth is disclosed using technologicalinstruments in accounting fields such as financial statements or otheraccounting documents. The use of the instruments by informant (bodyone) produces perception called body two. The body two is the resultof hermeneutical material process. The combination of instruments andhyper-instruments as truth revelation is binary opposition synergy as amanifestation of tawhid view.Type of paper: reviewKeywords: philosophy of being, accounting, post-phenomenology, tawhidichyper-phenomenology, and tawhid.

69

The Effect of Risk Preference and Corporate Governance on theIslamic Banks’s Efficiency Using Stochastic Frontier Approach

Ratnika Detri GoddessEvony Silvino Violita (evony.silvino@gmail.com)

Universitas Indonesia

ABSTRACT

This research investigates the effects of risk preferences and corporategovernance on the cost efficiency in listed Indonesian Islamic Banks.In doing so, this research applies Stochastic Frontier Approach (SFA)and OLS regression to analyze the data over the year of 2010-2014. Asa measure of risk preferences, this study considers solvency, liquidityand financing quality. The analysis shows that solvency and liquiditypositively influence, whereas financing quality insignificantly influencesthe cost efficiency in the listed Islamic Banks. Further, the result exhibitsan inconclusive role of corporate governance on the cost efficiency. Theoverall findings of this research imply that solvency and liquidity aremore profound for cost efficiency than financing quality and corporategovernance.Type of paper: empiricalKeywords:

70

Prediction Model For Sharia Mutual Fund Persistence in IndonesiaCapital Market

Zaenal Arifin (zaenalarifin.fe@uii.ac.id)Sri Mulyati (mulyati@uii.ac.id)

Universitas Islam Indonesia

ABSTRACT

In the period 2010 to 2012, the performance of Islamic mutual fundsin Indonesia has a high degree of persistence. However, in the period2014 to 2016, the persistence rate decreased. This research tries toidentify the factors that influence the persistence of the performance ofthe mutual fund and based on these factors, the persistence predictionmodel is created. The samples of the study are all sharia mutual fundsoffered from 2010 to 2016 in Indonesia capital market. The econometricequation used to construct the model is the Logit equation. To evaluatethe accuracy of the prediction model, we use the Expectation-PredictionEvaluation with a prediction evaluation for success is 0.5. The results ofthis study indicate that, for the mutual fund as a whole, the best modelis a model involving variables: (1) the length of time the mutual fundhas been launched, (2) whether the mutual funds are at top 5 within1-2 years after launch, and (3) the number of newcomer funds duringpersistence testing. The level of accuracy of this model, when used topredict the whole sharia mutual fund persistence is 64%. When themodel is used to predict persistence of performance of equity mutualfund, then the level of accuracy increased to 77.78%. Whereas if itused to predict the persistence of fixed income mutual funds thenthe accuracy rate is 70%. The persistence prediction model for mixedfunds uses different factor compositions: (1) the amount of funds undermanagement, (2) whether the mutual funds are in the top 5 within1-2 years after launch, and (3) the number of newcomer funds duringpersistence testing. The level of accuracy of this model is 75%. Theresults of this study are expected to be used as a guide for investorswho want to invest in sharia mutual funds.Type of paper: empiricalKeywords: Sharia mutual fund, performance, persistence, persistenceprediction model.

71

Towards a Theory of Religiosity-Constrained Mental Accounting:An Experimental Study from Islamic Setting

Fuad (tofuad@yahoo.com)Universitas Diponegoro, Indonesia

ABSTRACT

Purpose –This study analyzes and explores the mental accounting of theMuslims with the ultimate objectives to predict the Muslims behaviorin keeping track of their economical and cost-benefits affairs for eventsbased on two Islamic laws (i.e. halal/permitted and syubhat/doubtful).Design/Methogology/Approach − Using the mental accounting exper-imental study of by Thaler (1980), this study employed two products inwhich halal and syubhat can be applied. Data were gathered from 150

Muslims participants that could make rational economic decisions.Findings - The results indicate that the mental accounting effect is likelyto exist in the halal and syubhat scenarios. Despite the fact that mentalaccounting phenomenon is apparent for both cases, our subsequentanalysis indicates that Muslims economic decision making is heavilyinfluenced by their religious belief and question the applicability ofmental accounting in Islamic cases, particularly on syubhat.Originality/value - Prior empirical evidences have documented howindividuals calculated economic outcomes, labeled sources and uses offunds and made the choices based on prior economic activities. How-ever, researches were conducted without exploring further “constraints”that could change the findings. This study introduces the Islamic lawsthat play pivotal role in how Muslims make economic decisions andthus, their mental accounting.Type of paper: empiricalKeywords: Mental accounting, Islamic laws, experimental design, deci-sion making.

72

Role of Knowledge, Trust and Religiosity in Explaining Cash Waqfamongst Indonesian Muslim Millennial

Rahmatina Awaliah Kasri (unirahma@gmail.com)Syafira Rizma Chaerunnisa (syafirarizma@gmail.com)

Universitas Indonesia

ABSTRACT

The study aims to determine the role of knowledge, trust and religios-ity in influencing the intention to donate through online cash waqfamongst Indonesian Muslim millennial. In analyzing the relationships,this study collected primary data from 418 Muslim millennial thatdomiciled in six large cities in Indonesia and analyzed the data usingStructural Equation Modeling (SEM). The main findings suggest thatknowledge, trust and religiosity factors played important role in explain-ing the intention to donate through online cash waqf amongst the urbanmillennial. Indeed, religiosity is found to be the most powerful factorinfluencing such intention. These results imply that it is important forthe waqf institutions to reflect strong Islamic values in their ash waqfproducts and communicate more religious messages about the benefitsof giving cash waqf to the millennial generations. It is also importantthat the institutions be more transparent and accountable to maintainand enhance trust towards their organizations. Furthermore, it is crucialto spread the knowledge of waqf, or waqf literacy, through appropriateinformation and campaign programs. Taken together, the findings andrecommendations are expected to provide important insights so thatwaqf institutions could devise effective strategies in raising online cashwaqf donation.Type of paper: empiricalKeywords: Cash waqf, online waqf, theory of planned behavior, inten-tion, urban millennial.

73

Mispricing on Islamic Stock Markets in ASEAN Countries

Arienka Prilitaningtyas (arienka.p@gmail.com)Muhammad Budi Prasetyo (m.budi.prasetyo@ui.ac.id)

Universitas Indonesia

ABSTRACT

The purpose of this study is to detect any mispricing on Islamic stockin four countries which are founding fathers of ASEAN (Indonesia,Malaysia, Singapore, and Thailand). Fama and French (1993) Three-factor Asset Pricing Model is being used to held this study with dailyindividual stock price from June 2005 until December 2017 and laterbeing categorized into 25 portfolios based on their size and book-to-market equity. This study found no evidence of mispricing in Indonesiaand Malaysia so that these Islamic stock markets are efficient. Differentevidence found in Singapore and Thailand as in those Islamic stockmarkets significant mispricing can be found on Thailand Islamic StockMarket and marginally significant mispricing on Singapore IslamicStock Market that indicates those markets are not efficient. Moreover,this study also found that Financial Crisis 2008 only have a significanteffect in Indonesia and Thailand Islamic Stock Market. This papergives a new insight of Islamic Stock Market Efficiencies by focusingon Islamic stock in ASEAN which is a region dominated by emergingmarkets and this study also use daily stock price of individual stockand not index level data.Type of paper: empiricalKeywords: ASEAN, efficient market hypothesis, mispricing, Three-factorasset pricing model.

74

Session 2: Finance

Poisson Regression Analysis for Risk Classification and Derivationof Mortality Rate Estimation in Life Insurance Company (Study

Case at One of Life Insurance Company in Indonesia)

Puspita Tyas Agnesti (puspita.tyas61@ui.ac.id)Yogo Purwono (yogoact@yahoo.com)

Universitas Indonesia

ABSTRACT

This study aims to classify risk and derive best estimate mortality ratefor life insurance company PT ABC by using Poisson regression model.With Poisson regression model, this study modeled the number ofdeaths with policy duration, underwriting treatment, extra mortalityenactment, and sum insured amount. Sample data used in this studyis death count of insured males over the age of 18 years during pe-riod 2012-2016 in life insurance company PT ABC. After modelingbaseline mortality with Poisson regression model and then performingexploratory analysis using standardized mortality ratio (SMR) for clas-sifying risk, mortality rate estimation based on the risk profile of lifeinsurance company PT ABC is obtained. This estimated mortality rateis used to construct mortality table. The results of the study showedthat mortality rates for three-year policy duration of insured males overthe age of 18 years’ underwritten insurance policy with sum insuredamount less than IDR 100 million and no extra mortality are greaterthan mortality rates for zero-year policy duration with the same profile.By getting the mortality rate in accordance with company’s risk profile,life insurance companies are expected to be more precise in determin-ing the required reserves and deriving premiums in line with the riskprofile of the insured lives.Type of paper: empiricalKeywords: mortality rate, Poisson regression model, life insurance.

75

Transitory and Permanent Effects in Market MicrostructureStability Model With Jumps

Usman Arief (usman.arief@ui.ac.id)Zaäfri Ananto Husodo (z.husodo@ui.ac.id)

Universitas Indonesia

ABSTRACT

This paper estimates a general microstructure model of the transitoryand permanent impact of order flow on stock prices. Jumps are de-tected by extreme of order imbalance in capital market. We decomposejumps into permanent which have the fundamental of macro events,and transitory, only impact the short-time of liquidity shortages. Wepropose a reduced form model estimation to measure the impact ofboth transitory and permanent jumps in stock markets. Our empiricalfindings show that transitory jumps have 33% and 76% impact on mar-ket price and stability in Indonesia and Thailand respectively. However,the significant value of transitory jumps are associated with privateinformation. This information persist the order flow on stock price formore than one period.Type of paper: EmpiricalKeywords: transitory, permanent, jumps, market stability.

76

Does Growth and Monitoring Effect Investor Funding for DigitalStart-ups?

Mashitha Pelangi Firlana (pelangi.firlana@gmail.com)Zuliani Dalimunthe (zulianifeui89@gmail.com)

Helman Arif (heraf_arif@yahoo.co.id)Universitas Indonesia

ABSTRACT

This study analyzes how growth and monitoring affect investors’ fund-ing decisions for digital start-up firms. We define the funding decisionhere as both funding amount and funding rounds, then measure start-up growth by the number of acquisitions undertaken by the start-upand the number of users’ monthly visits to the website. We define start-up monitoring as the number of board members assigned by a funderand the number of lead investors providing funds for the start-up. Weseek to find whether there is difference between investor decisionsregarding financing digital start-up firms in developed countries versusthose made in emerging countries, using a data sample of 300 start-upswith the highest rankings worldwide. Using multiple linear regressionof OLS (Ordinary Least Square), the results demonstrate that bothgrowth and monitoring positively influence the amount of fundingand the number of funding rounds for a digital start-up company. Wealso determined there is no significant difference in investor fundingdecisions between digital start-ups in developed and those in emergingcountries.Type of paper: empiricalKeywords: Digital start-up, start-ups monitoring, start-up growth, fund-ing rounds; users’ monthly visit.

77

The Effects of Tax Avoidance and Tax Risk Management on theEarnings Response Coefficient: Empirical Evidence from

Multinational Companies in Indonesia and Malaysia

Indah Masri (indahmasri@univpancasila.ac.id)Pancasila University and Universitas Indonesia

Akhmad SyakhrozaRatna Wardhani

SamingunUniversitas Indonesia

ABSTRACT

The aim of this research is to analyse the role of tax risk management asa moderating variable in tax avoidance relationships with the earningsresponse coefficient. The research uses a sample of all the nonfinancialmultinational companies listed on the Indonesian and Malaysian stockexchanges during the period 2010 to 2016. The results show that taxrisk management can strengthen the positive effect of tax avoidance onEarnings Response Coefficient. This proves that tax risk managementcan be one of the controls used by multinational corporations in taxavoidance. Companies that achieve better tax risk management canincrease the pre-tax income transparency that they present, therebyincreasing earnings informativeness (ERC).Type of paper: empiricalKeywords: tax risk management, tax avoidance, earnings response coef-ficient.

78

Foreign Related Parties Transactions as Tax Avoidance Strategy inIndonesia: The Role of Corporate Governance

Nuritomo (nuritomo@gmail.com)Universitas Atma Jaya Yogyakarta, IndonesiaSidharta Utama (sidhartautama@yahoo.com)

Ancella A. Hermawan (ancella_hermawan@yahoo.com)Universitas Indonesia

ABSTRACT

This study researches on tax avoidance practice through foreign relatedparty transaction and the effect of corporate governance on the rela-tionship between the shareholder’s tax expenses and foreign relatedparty transaction. Different from other studies that use related partytransaction entirely, this study uses a foreign related party transaction.Related party transaction will be beneficial only if it is done on thecompany with different tax rate. If it is done in Indonesia that has a flatincome tax rate, foreign related party transaction can be used to avoidtax. Using data from 301 listed companies in Indonesia, this study findsthat tax avoidance in Indonesia is undertaken by increasing foreignrelated party transaction. The use of foreign related party transactioncan tell more about tax avoidance strategy compared to related partytransaction in totally. The related party transaction to a country with alower tax rate can be one of tax avoidance strategy in Indonesia to geta tax benefit. This study also finds that the corporate governance canweaken the effect of the shareholder’s tax expenses on the related partytransaction meaning to lower the tax avoidance practice through themechanism of related foreign party transaction.Type of paper: empiricalKeywords: tax avoidance, tax expenses, related party transaction, marginaltax rate, corporate governance.

79

Monetary Shock, Banking Risk and Bank Lending Channel:Evidence from Indonesian Banking Industry

Yosman Bustaman (jbustaman@gmail.com)Swiss German University, Indonesia

Viverita (viverita.d@ui.ac.id)Universitas Indonesia

Nurdayadi (nurdayadi@sgu.ac.id)Swiss German University, Indonesia

ABSTRACT

This study examines the existence of bank lending channel in the In-donesian banking system and tests whether monetary policy shock istransmitted via bank risk on bank lending activity. We use bankingmicro-data over the period from 2007 to 2016. Using static and dy-namic panel data, we find some contrary results from the US bankingevidence, where less liquid banks and smaller banks and not highlyliquid and larger banks abler to insulate their credit supply against themonetary shock. These types of the bank might raise funds from theirbusiness group, loyal depositors as well as strong lending relationshipto shield their loan portfolio. Additionally, well capitalized-banks donot have a problem to raise uninsured funding. Therefore they are ableto provide more loan supply. Moreover, riskier bank suffers more onits lending supply against monetary policy shock. Even stable bank(characterized by higher Z score) neither unable to protect their capacityto channel their loan when interest rate increase. It should be suspectedthat larger banks convert its loanable funds into short-term investmentsand also focus to generate income from high-risk non-traditional bankproducts in the contracting period. Hence they suffer more on its loanportfolio. It is a signal for Financial Services Authority (OJK) to scrutinythe behavior of larger banks that might go to riskier businesses. Toanticipate this activity, the banking regulator also needs to refine theminimum loan to deposit ratio for different size of banks so that theycould increase their participation in spurring economic growth.Type of paper: empiricalKeywords: Bank risk, bank lending channel, Indonesia banking, mone-tary policy.

80

Session 2: Marketing

The Analysis of Celebgram in Developing Consumer BrandPerceptions and Intention to Buy Luxury Brand Cosmetics

Irdina Tiara Putri (inatiaraputri@gmail.com)Rifelly Dewi Astuti (rifelly.dewi@ui.ac.id)

Universitas Indonesia

ABSTRACT

Social media presence increases the chances businesses to market theirproducts in a more creative and innovative way. Increased social mediaalso presents a new definition to the emergence of artists in social mediaknown as Celebgram in Instagram. This phenomenon encouragesmarketers to make endorsement to Celebgram. This study aimed todetermine the effect of Celebgram in the form of interaction parasocial(parasocial interaction) that occurs between the influencer to theirfollowers in shaping consumer perceptions and purchase intentionsfor the product that was endorsed by the influencers. Therefore, thisstudy developed a research model that saw parasocial interaction effecton brand perception. The models were developed and then validatedusing Structual Equation Modelling (SEM), the research data obtainedfrom the survey by distributing questionnaires to 215 women aged 18

to 34 years. The results of this study confirm that the attributes of thePSI that were, physical attractiveness, social attractiveness/homophileattitude affect brand perception and in turn encourage consumers tomake purchases.Type of paper: empiricalKeywords: parasocial interaction, luxury brand, endorser, Celebgram,purchase intentions.

81

Factors that Affect Intention to Pirate Music for Moslem Consumers

Adira Alam Amtha (adira.alam@gmail.com)Sri Rahayu Hijrah Hati (sri.rahayu72@ui.ac.id)

Universitas Indonesia

ABSTRACT

The advancement of technology that can be held by the hands of allclasses of people can make some benefits and drawbacks. One ofthe benefits is the ease of procurement of goods. Although, it is alsoapplicable to goods that should have been bought legally, where canbe procured illegaly through ilegal downloading, especially music.This paper aims to analyze the effects of the factors that can affectintention to pirate music in the moslem population. The researcheruses SEM-PLS as his method to analyze the effects to no pirate music.The study has found that religiosity has no effect to intention, but MoralObligation, Normative Pressure, Willingness to pay, Mimetic Pressure,and Attitude significantly affects intention to not pirate. This researchhas implications to governments who wanted to reduce digital piracyespecially in Indonesia also Digital media industry, both Halal and theindustry as a large. Type of paper: empiricalKeywords: institutional isomorphism, music piracy, islamic religiosity,theory of planned behavior, willingness to pay.

82

Contribution of Cultural Event to The Visitor’s Intention to Revisitand Recommend Tourist Destination (Case Study: Dieng Culture

Festival, Central Java, Indonesia)

Hamida Mutia Maharani (hamidatrn@gmail.com)Hapsari Setyowardhani (hapsari.setyowardhani@gmail.com)

Universitas Indonesia

ABSTRACT

Indonesia, as the country richest in cultural resources in ASEAN, hasopportunities to maintain its cultural resources and thereby increasetourism, and hosting cultural events is one of the ways to do so. Al-luring events can motivate one to leave one’s place, visit the placeconducting cultural events, and spend money to procure services at theevent site. Dieng, a highland in Indonesia, rich in cultural resourcesheld cultural event namely Dieng Culture Festival since 2009 and be-coming one of national event. The focus of this study is the contributionof cultural events and the other elements of a tourist destination tothe formation of the destination image which then leads to positivebehavioural intention. This research used PLS-SEM to analyze the effectof cultural events, event brand, place brand, and structural elementsto the affective and cognitive image. Respondents of this researchrepresented anyone who had visited The Dieng Culture Festival 6, 7,or 8. This research has found that place brand and structural elementssignificantly affect both cognitive and affective image. The other afore-mentioned variables, cultural events, and cultural event brand, weredetermined significantly to affect the affective image of a tourist desti-nation only. In the case of Dieng and the The Dieng Culture Festival,the affective image has a more significant effect on the formation ofthe overall image than cognitive image. In this study, the researcheralso found that the overall image of tourist destination significantlyaffects positive behavioural intention (intention to revisit and intentionto recommend) of the tourist to a certain tourist destination.Type of paper: empiricalKeywords: cultural events, affective image, cognitive image, destinationimage, behavioural intention.

83

Consumer Brand Loyalty of Fast Fashion Brands of YoungConsumers in Indonesia

Azzahra Sabina TohirAgung Nugroho (a.nugroho@ui.ac.id)

Universitas Indonesia

ABSTRACT

The purpose of this paper is to empirically investigate the factors af-fecting consumer’s fast fashion brand loyalty by examining Indonesiancollege students’ perceptions and loyalty toward Fast Fashion Brands.The research model describes relationships between Consumer BasedBrand Equity Dimensions towards Brand Loyalty. The hypothesis tothis research was that consumer’s perceptions of Fast Fashion, includingbrand awareness, perceived quality, perceived value, brand personality,organizational associations, and brand uniqueness, affect consumerbrand loyalty. Based on the results of 139 Indonesian college studentsin the Greater Area of Jakarta, using structural equation modeling, thisstudy found that for Indonesian College Students, Brand Awareness,Perceived Value, Organizational Associations and Brand Uniquenesswere factors that influenced their Brand Loyalty towards Fast FashionBrands.Type of paper: empiricalKeywords: fast fashion, brand loyalty, consumer-based brand equity,fashion in indonesia.

84

Perceptions of Technical and Social Presence towards CustomersTrust and Value: Click-And-Brick versus Pure-Click Retailers

Joshua Jeffrey KurniawanAdrian Achyar (a.achyar@ui.ac.id)

Universitas Indonesia

ABSTRACT

Sellers/retailers understand that there is always a risk behind the on-line interaction (e.g., anonymity or proximity) and respond with themulti-platform commercial channel (click-and-brick). The click-and-brick (multi-channel) retailers gain, relatively, an immense prominenceand rivalry from the pure-click (single-channel) retailers as the conse-quences. The present study attempts to measure the impacts of bothretailers’ (multi and single) web-features on trust and value percep-tions. Utilizing structural equation modelling, around 550 experiencedsubjects were hired into the current research. These empirical findings/evidence provide one, among several others, insight (recommendation)to pure-click retailers in developing and promoting offline presencethus weathering the competition from multi-channel retailers.Type of paper: empiricalKeywords: e-commerce, channel structures, technical web-features, socialpresence web-features, perceived trust, perceived value.

85

Antecedent Factors of Self-Gifting Behavior and Its Influencetoward Post-Purchase Regret on Millennials Generation

Alia Rachma Ningtias (alia.rachma@ui.ac.id)Sri Daryanti (sri.daryanti@ui.ac.id)

Ilma Savira Putri (ilma.savira@ui.ac.id)Universitas Indonesia

ABSTRACT

With the shifting trend from gifting behavior to self-gifting behavior,retailer faced a new challenge on winning their consumer’s heart, es-pecially millennials consumers. Additionally, the growing landscapein retail environment and the more options consumers faced whenshopping may result on dissatisfied feeling with their buying and trig-gered the regret feeling afterward. This study aims to analyze theantecedent factors that drive a consumer to perform self-gifting behav-ior and the relationship from self-gifting behavior performed towardspost purchase regret. As the previous study said, hedonic shoppingtraits and indulgence are the drives to self-gifting behavior performanceon consumers. With 292 respondents chosen with purposive samplingjoining this study and using Structural Equation Modelling (SEM) tech-nique for analysis, this study proof that there are strong and positiverelationships between two antecedent factors mentioned above towardsfour categories of self-gifting behavior, except hedonic shopping traitstoward celebratory self-gift. This study also revealed that four cate-gories of self-gift behavior does not have positive relationship towardspost-purchase regret on millennials consumers. However, indulgencehas positive relationship towards post-purchase regret on millennialsconsumers.Type of paper: empiricalKeywords: consumer behavior, self-gifting, post-purchase regret, retail,millennials.

86

Session 3: Human Resources and General Management

Business Behavior in Islamic Perspective: A Case Study of MuslimWoman Entrepreneur in Ikatan Wanita Pengusaha Indonesia

(IWAPI) Members

Muhamad Nafik Hadi Ryandono (muhammadnafik@feb.unair.ac.id)Sesha Ayu Permatasari (seshaayu@gmail.com)

Ida Wijayanti (dama.madiun@gmail.com)Universitas Airlangga, Indonesia

ABSTRACT

In today’s business world, women also can be success in runningbusiness. They called as women entrepreneur. Some research statedthat cultural diversity may have an impact on women entrepreneurialbehavior, one of them is about religion. And this research will revealthe Islamic perspective about it. The purpose of this research is toknow how Islam ruled women entrepreneurs and do the businessbehavior of married Muslim women of IWAPI members in Surabayais in accordance with the teachings of Islam. This research used aqualitative descriptive method in case studies approach. Data collectiontechniques are used in-depth interviews, participative observation, anddocumentation. In this research, the business behavior of Muslimare in terms of following aspects: motivation, commitment to family,experienced obstacles, responsibilities and activities as well as adoptinga business strategy which guided from four character of the Prophetnamely: Siddiq (truth), Amanah (trustworthy), Fathanah (smart/wise),Tabligh (deliver). Results of this research shows that doing business isnot forbidden in Islam as long as it does not ignore the main task ofa Muslim woman as a housewife. Business motivation of housewivesis gain a flexible time management so as to enable a balance betweenthe obligations of housewives and business. Thus, a Muslim is able toprove that a Muslim woman could succeed as a wife, IWAPI members,and businesswomen.Type of paper: empiricalKeywords: Women entrepreneur, business behavior, Islam, IWAPI.

87

The Impact of Fun at Work on Creative Performance andOrganizational Citizenship Behaviour

Herkin Prabowo (herkinprabowo12@gmail.com)Nayunda Andhika Sari

Ayu ApriliantiAryana Satrya

Universitas Indonesia

ABSTRACT

The growing numbers of millennial generation in the workforce haveled to numerous changes in the way organisations work and how thejobs are managed. This includes where the work takes place, how wethe work is organised, and how workers communicate. These changesrequire organisations to take into account millennial’s preferences to-ward work and therefore adapt to the current development. One of themost popular trends among millennial workers is the implementationof fun at work. Using the SEM method, this study examines the impactof fun at work on organizational citizenship behaviour as well as cre-ative performance, with the role of work engagement as the mediatingvariable. This study was conducted using quantitative method in whichdata was collected by distributing questionnaires to 250 employees.Results have shown that fun at work does not influence employees’work engagement but has direct influence on organizational citizenshipbehaviour and creative performance. Hence, work engagement doesnot have role as mediator in the relationship between fun at work andcreative performance as well as organizational citizenship behaviour.Type of paper: empiricalKeywords: Fun at work, work engagement, creative performance, orga-nizational citizenship behaviour.

88

The Mediating Role of Job Characteristic on The Relationshipbetween Human Resource Practice, Employee Engagement and

Affective Organizational Commitment

Muhammad BaiquniAyu Aprilianti Lizar (ayuaprilianti@ui.ac.id)

Universitas Indonesia

ABSTRACT

Organizational success in this 4.0 industrial revolution era depend lesson advantages associated with economies of scale, but derive morefrom committed human resources combine with the ability to lever-age technology that the organization has. Accordingly, finding aneffective strategy to increase employees’ commitment as well as engage-ment plays a significant role for achieving organizational success. Thepurpose of this quantitative research is to investigate the relationshipamong human resource practice, job characteristics, employee engage-ment and organizational commitment, and also testing the role of jobcharacteristics as the mediator between human resources practice andorganizational commitment as well as employee engagement. A total of462 employees from 3 organizations in Jakarta were participated as therespondents of this study. Data were obtained through questionnaireand then analyzed using the structural equation modelling. The resultshows that affective commitment and engagement is positively influ-enced by human resource practice and job characteristics. Additionally,job characteristic mediates the relationship between human resourcepractice, organizational commitment and employee engagement.Type of paper: empiricalKeywords: human resource practice, job characteristic, employee engage-ment, organizational commitment.

89

The Mediating Role of Organizational Commitment and theModerating Role of Service Climate

Wayan Gede Supartha (wayangedesupartha@unud.ac.id)Universitas Udayana, Indonesia

Irene Hanna H. Sihombing (henry_irene@yahoo.com)Ni Nyoman Sukerti (sukertinyoman70@gmail.com)

Sekolah Tinggi Pariwisata Nusa Dua Bali, Indonesia

ABSTRACT

This study aims to predict the effect of job satisfaction on knowledgesharing behavior. At the same time to predict the moderation role of ser-vice climate as well as the mediation role of organizational commitment.Organizational commitment has significant positive effect on knowl-edge sharing behavior. Based on this, the organizational commitmenthas full mediation effect on the influence of job satisfaction on knowl-edge sharing behavior. Service Climate does not moderate the effect ofjob satisfaction on knowledge sharing behavior. The implications of thisstudy indicate that with the increased of job satisfaction, organizationalcommitment will also increase. Knowledge sharing behavior can beachieved by organizational commitment. Climate service has no role ofmoderation between job satisfaction and knowledge sharing behavior.Type of paper: empiricalKeywords: organizational commitment, service climate, job satisfaction,knowledge sharing behaviour.

90

Enhancing Performance of Regional Development Banks

Ferry Novindra Idroes (ferry.idroes@president.ac.id)President University, Indonesia

Ernie Tisnawati Sule (erniesule@gmail.com)Popy Rufaidah (popy.rufaidah@fe.unpad.ac.id)

Diana Sari (diana.sari@fe.unpad.ac.id)Universitas Padjajaran, Indonesia

ABSTRACT

The role of Regional Development Banks (BPD) in Indonesia are asfinancial intermediation and as a driver of the respective regionaleconomy. The role can be performed optimally if there are synergiesundertaken by all stakeholders. This study is expected to contributeto BPD stakeholders in optimizing performance. This research usedmixed method research which started with quantitative process to ques-tionnaire data and secondary data 26 BPDs. The qualitative process iscarried out for in-depth confirmation through interviews of BPD lead-ers, employees and customers. In addition to the confirmation, FGDs(Focus Group Discussion) are conducted with BPD officers, the Associ-ation of Regional Banks (Asbanda) and the Financial Service Authority(OJK) using Balance Score Card. Important finding in this research isthe performance of internal process which gives high perceived valueof customer very determined the success of BPDs.Type of paper: empiricalKeywords: regional development bank, banking performance, balancescore card.

91

The Influence of Resource Complementary, TechnologyCompetence and Supply Chain Risk Criteria on Supply Chain

Collaboration (Case Study of Export Import Activities in Indonesia)

Hally Hanafiah (hally.hanafiah@gmail.com)Prijono Tjiptoherijanto

Anton Wachidin WidjajaSetyo Hari Wijanto

Universitas Indonesia

ABSTRACT

Supply chain collaboration has been widely practiced but the level ofinstability and failure was still high. One of the factors is the selection ofpartners, where research on this subject is still very limited. The lack ofliterature on the selection of partners is an impetus to examine the effectof partner selection criteria on the success of collaboration. The previousstudy of selection partner is largely limited to two sets of major criteria:the notion of task related motivation and partner-related consideration.Because this research focuses on supply chain collaboration whereinformation sharing and risk processes occur, this study will use thecriteria of partner technology competence and partner supply chainrisk have become a determining factor for successful collaboration. Theobjective of this is study will examine the criteria of partners that arethe dominant factors in the selection of partners to improve the firmperformance through supply chain collaboration. This research willalso examine the contribution of supply chain collaboration to firmperformance through collaborative advantages. This is quantitativeresearch through descriptive analysis, measurement models, structuralmodels using Structural Equation Model (SEM) with using 6-likertscale. The samples were 151 service provider’s logistics company inexport and import activities in Indonesia.Type of paper: empiricalKeywords: Partner selection, resource complementary, technology com-petence, supply chain risk, supply chain collaboration, collaborativeadvantage.

92

Session 3: Finance (1)

Capital Adequacy Requirement, Cost of Financial Internediation,and Risk Taking Behavior of Indonesia Banking Sector

Rika Angelia SiraitRofikoh Rokhim (rofikoh.rokhim@ui.ac.id)

Universitas Indonesia

ABSTRACT

Basel I, II and III are strictly applied after the financial crisis in 1997/1998

and 2008 to ensure financial stability, among others by applying theminimum capital adequacy requirements that must be met by the bankin accordance with the risk profile. However, whether the impact ofthese requirements contributes positively to Indonesian banking sectorare still questionable, because some previous empirical studies haveshown that strict capital requirements can force banks to increase theirfinancial intermediation costs due to the rising of capital cost. Thisstudy examines the relationship between minimum capital adequacy,the cost of financial intermediation and risk-taking behavior of In-donesia banking sector by using panel data from 45 commercial banksfrom 2012 to 2017. Using the Generalized Least Square (GLS) paneldata regression, we find that the bank’s capital ratio has a negativeand significant relationship to the financial intermediation costs andrisk-taking behavior of Indonesia banking sector. We also find thatthe average return on equity of Indonesia banking sector decreasedduring the observation period which shows that an increase in capitalregulation position didn’t increase the cost of bank’s equity capital.Type of paper: empiricalKeywords: capital requirement, the cost of financial intermediation, risktaking.

93

The Effect of Board of Commissioners’ Diversity on CorporateExpropriation

Louis Prasetyo and Vera DiyantyUniversitas Indonesia

ABSTRACT

This study aims to analyze the effect of Board of Commissioners’ diver-sity on corporate expropriation. The Board of Commissioners’ diversityis measured by age, gender, tenure, education level, educational back-ground, and experience. Age and Tenure diversity is measured usingvariance coefficient, while gender, educational level, educational back-ground, and functional background is measured using Blau Index. Theresult indicates that the diversity of gender in the board of Commission-ers negatively affects corporate expropriation. In addition, the diversityof tenure in the board of Commissioners positively affects corporateexpropriation. Furthermore, the diversity of educational background inthe board of commissioners negatively affects corporate expropriation.Overall, this study encourages companies regulators, in setting the min-imum diversity criteria for the Board of Commissioners’ compositionin order to reduce the occurrence of company expropriation, and forfuture investors to pay attention to Board of Commissioners’ diversityas a possible indication of firm expropriation.Type of paper: empiricalKeywords: Board of commissioners’ diversity, expropriation, age, gender,tenure, education level, educational background, experience.

94

The Impact of Thin Capitalization Rule on Capital Structure

Venantius Budi Jatmiko (jatmikobudi@gmail.com)Zaafri Ananto HusodoUniversitas Indonesia

ABSTRACT

Debt financing is more favorable than equity financing due to thedeductibility of the interest while the dividend is nondeductible incorporate taxation. This paper analyzes the impact of the implemen-tation of Thin Capitalization Rule, that limiting deductibility of theinterest expense through limiting the debt to equity ratio, on the choiceof capital structure of the company. In this study, we use corporatetax return data (SPT) from fiscal year 2010 to 2017. Using panel dataregression, the results of the study show that the Thin CapitalizationRule reduces the use of debt in the capital structure. This study alsoshow an indication that the enactment of this rule increase the use ofrelated party debt in the capital structure.Type of paper: empiricalKeywords: thin capitalization rule, tax return data, related party debt.

Performance Evaluation of Momentum Strategy using 52 WeekHigh Data in Indonesia Stock Exchange Period 2012-2016

Yulius KurniawanUniversitas Indonesia

ABSTRACT

Majority of investor in the stock market always think that the right timeto buy stock is when there is a decline of stock price in the market. Butin the real market, not all stock which decline will return to the highestlevel. There are several stock which still continue to rise, even breakits highest level. Objective of this research is to evaluate performanceof momentum strategy using 52-week high data in Indonesia StockExchange. This research use monthly data of LQ45 from January 2012

until December 2016. Portfolio which is formed, then will be backtestedusing portfolio attribution. The result show that momentum strategyusing 52 week high is able to generate return but still below the JakartaComposite Index. 52 week high strategy is more effective to generateabnormal return in the small capitalization company.Type of paper: empiricalKeywords: 52 week high, portfolio attribution, Sharpe, Treynor, Jensen.

95

The Role of Stock Split and Investor Attention in DiminishingDisposition Effect of Individual Investors

Wendy KesumaIrwan Adi Ekaputra (irwan.adi@ui.ac.id)

Dony Abdul ChalidUniversitas Indonesia

ABSTRACT

We test our framework that individual investors are attentive to a stocksplit, and the split signal helps to reduce their disposition effect. Wefind that individual investors are attentive to stock splits, especiallywhen the stock split has a higher split ratio or it leads to significantprice drops. We also learn that a stock split weakens the dispositioneffect, and the quality of split signals plays a major role in reducingdisposition effect. Moreover, we find that investor’s attention may onlyreduce disposition effect when the split signal is strong (i.e. high splitratio). Otherwise, investor’s attention tends to increase dispositioneffect.Type of paper: empiricalKeywords: Disposition effect, Indonesia, investor attention, stock split.

96

Competition and Stability in the Credit Industry: Banking vs.Factoring Industries

Marta Degl’Innocenti (m.deglinnocenti@soton.ac.uk)Southampton Business School, UK

Franco Fiordelisi (franco.fiordelisi@uniroma3.it)University of Rome III, Italy & SDA Bocconi, Italy

Irwan TrinugrohoUniversitas Sebelas Maret, Indonesia

ABSTRACT

In the last decade, most credit-industries registered a decline in lendingvolumes, with the exception of the factoring industries that insteadregistered a substantial increase. Surprisingly, only a handful of papersso far investigate factoring companies. Do factoring firms display thesame stability levels of banks? Is the competition similar in factoringand banking industries? Is the link between competition and stabilitythe same in these industries? Focusing on Italy (one of the largestfactoring and banking market in Europe) and using a unique dataset,we show three main results, factoring companies are (on average) morestable than banks, 2) the stability of factoring companies increase whencompetition declines (competition fragility-view), 3) the competition-fragility view is weaker in the factoring industry than in the bankingsector.Type of paper: empiricalKeywords: banking, factoring, competition, stability.

97

Intellectual Capital As Firm Value Predictor (Empirical Study OnIntellectual Capital Index)

Dyna Rachmawati (dyna@ukwms.ac.id)Mudjilah Rahayu (rahayu@ukwms.ac.id)

Hendra Wijaya (hendrawijaya@ukwms.ac.id)Universitas Katolik Widya Mandala Surabaya, Indonesia

ABSTRACT

This study seeks to fill the gap of previous studies. First, this studyuses intellectual capital index based on McGuire and Brenner (2015:23)formula as a measure of intellectual capital. Previous studies usedVAICTM to measure intellectual capital. VAICTM has several weak-nesses as measurement of intellectual capital. Second, previous studiesfocused on the relevance of the value of intellectual capital information.This study examines the ability of intellectual capital as a predictor offirm value.

The sample of this study is a non-financial company listed on theIndonesian Stock Exchange (IDX) in the 2014-2016. The results ofthe study show that intellectual capital and ROA have the ability topredict firm value in the one year ahead, two years ahead, and threeyears ahead. The ability of ROA to predict firm value is stronger thanintellectual capital. Debt to assets also has the ability to predict firmvalue in the one year ahead. The ability of intellectual capital, ROAand DAR as predictors of firm value is strongest in the one year ahead.The ability of intellectual capital, ROA, and DAR to predict firm valueis weakening in the two and three year ahead.

This study has several limitations. First, the intellectual capital index(ICI) based on McGuire and Brenner’s formulation could be appliedonly to public companies. Second, the data use in this study for t-1, t-2,and t-3 are not the same. The data use in t-1 is greater that t-2 and t-3.It could affect the significance value.Type of paper: empiricalKeywords: intellectual capital index, firm value, returns on assets, firmsize, debt to assets.

98

Session 3: Finance (2)

Idiosyncratic Risk and Firm Characteristic on Islamic Stocks of 4ASEAN Countries in 2005-2017

Putri Utami (putri.utami41@ui.ac.id)M. Budi Prasetyo (m.budi.prasetyo@ui.ac.id)

Universitas Indonesia

ABSTRACT

This research investigates idiosyncratic volatility in Islamic stock of fourASEAN countries namely Indonesia, Malaysia, Singapore, and Thailandduring period of 2005-2017. The volatiles will be analyzed based on theidiosyncratic volatility levels of each country. Furthermore, firm charac-teristics will be used to see its relationship on the idiosyncratic volatilitymovement. This research used the Fama French Three Factor modelfor obtaining realized value of idiosyncratic volatility. Furthermore,a panel data regression is used to estimate the relationship betweenfirm characteristics and idiosyncratic volatility. The research’s resultssuggest that mean value of idiosyncratic risk in Islamic stock of thisASEAN countries is below the non-Islamic stock in US but above thenon-Islamic stock in Hongkong. Meanwhile, after the period of globalfinancial crisis in 2008, the relationship between return and idiosyn-cratic risk of Islamic stock change from all four countries. Panel dataregression of firm characteristics show that firm size is significantlynegative in all four countries while share turnover is insignificant toidiosyncratic volatility.Type of paper: empiricalKeywords: Idiosyncratic risk, Fama-French three factor, firm characteris-tic.

99

Does Conventional Monetary Policy Affect Islamic Money Marketand Banking Sector Differently? A Closer Look under Dual

Banking System in Indonesia

Amrial (amrial@ui.ac.id)Ristiyanti Hayu Pertiwi (risti.hayu@gmail.com)

Tika Arundina (tikarudina@ui.ac.id)Universitas Indonesia

ABSTRACT

The development of the Islamic banking industry which is seen throughthe trend of financing distribution to the establishment of an Islamic-based money market is closely related to the monetary policy takenby the government. Moreover in a dual banking system such as inIndonesia, monetary policy is indicated to have different impact on eachtype of financial industry. Therefore, this study wants to empirically testthe close relationship between monetary policy instruments, namelythe interest rate, and the financing provision from Islamic banks andthe rate of return on Islamic interbank money market rate in Indonesia.The results will also be compared with instruments in the conventionalfinancial industry, namely credit provision and rates of return on theinterbank money market. To achieve this goal, this research was carriedout with quantitative method using Vector Autoregressive (VAR). Theresults of this study found that the Islamic financial industry has astronger response and relationship to conventional monetary policythan the response by the conventional financial industry itself. It isthus indicated that Islamic financial industry in Indonesia is morede-stabilizing towards changes in monetary policy compared to theconventional industry.Type of paper: empiricalKeywords: Monetary policy, money market, Islamic bank.

100

Does Conventional Monetary Policy Affect Islamic Money Marketand Banking Sector Differently? A Closer Look under Dual

Banking System in Indonesia

Amrial Amrial (amrial@ui.ac.id)Ristiyanti Hayu Pertiwi (risti.hayu@gmail.com)

Tika Arundina (tikarudina@ui.ac.id)Universitas Indonesia

ABSTRACT

The development of the Islamic banking industry which is seen throughthe trend of financing distribution to the establishment of an Islamic-based money market is closely related to the monetary policy takenby the government. Moreover in a dual banking system such as inIndonesia, monetary policy is indicated to have different impact on eachtype of financial industry. Therefore, this study wants to empirically testthe close relationship between monetary policy instruments, namelythe interest rate, and the financing provision from Islamic banks andthe rate of return on Islamic interbank money market rate in Indonesia.The results will also be compared with instruments in the conventionalfinancial industry, namely credit provision and rates of return on theinterbank money market. To achieve this goal, this research was carriedout with quantitative method using Vector Autoregressive (VAR). Theresults of this study found that the Islamic financial industry has astronger response and relationship to conventional monetary policythan the response by the conventional financial industry itself. It isthus indicated that Islamic financial industry in Indonesia is morede-stabilizing towards changes in monetary policy compared to theconventional industry.Type of paper: empiricalKeywords: monetary policy, money market, Islamic bank.

101

Analysis of Implementation of Indonesian Government RegulationNumber 20 Year 2015 Related to Tenure and Rotation of Accounting

Firms and Public Accountants to Audit Quality

Muhammad Faisal (m.fsl@yahoo.com)Muthia Prima Nirmala

FitrianySylvia VeronicaRatna Wardhani

Universitas Indonesia

ABSTRACT

This study examines government regulations related to public audit ser-vices performed by accounting firm and public accountant as regulatedin Government Regulation No. 20 of 2015. PP No. 20 of 2015 in this caseeliminates limits for AF tenure and extends tenure PA which was origi-nally three years into five years. This research also analyzed the previ-ous regulation of the Minister of Finance Decree No. 359/KMK.06/2003,Minister of Finance Regulation No. 17/PMK.01/2008, which is relatedto the existence of real and pseudo-rotation of AF. This research used195 non-financial industry companies listed in Indonesia Stock Ex-change with pre-regulation research period is year 2008-2014 and postregulation is year 2015-2016. The results state that accounting firmtenure has no quadratic effect on audit quality, while tenure publicaccountant has a concave quadratic effect on audit quality in postregulation period. This study also found that the pseudo-rotation of ac-counting firm had a positive effect on audit quality in the pre-regulationperiod and did not affect the post-regulation period, while it was notfound that the real accounting firm rotation had an effect on auditquality.Type of paper: empiricalKeywords: audit tenure, audit rotation, audit quality, regulation.

102

SMEs Lending and Market Concentration

Putri AmeliaDony Abdul Chalid

Universitas Indonesia

ABSTRACT

This study aims to analyse the effect of the competition to SMEs Lend-ing. Using data of Indonesia banks in 2009-2016, this research performspanel data regression. The result of data analysis using panel datafixed-effect model shows that competition have insignificant effect onSMEs Lending. On the other hand, bank-specific factors such as theROE and LDR have significant effect on the level of SMEs lending. NPLof SMEs Credit also play significant role in reducing SMEs lending.These results indicate that in general banks are not consider the SMEslending as their important product.Type of paper: empiricalKeywords: bank, competition, SMEs lending.

Dividend and Firm Value in ASEAN 6: Is There a ReserveJ-Shaped?

Irma OctavianiRofikoh Rokhim

Universitas Indonesia

ABSTRACT

This study examines the cross-sectional relation between dividends andfirm value. We find that the lowest-dividend payers firm are valued thehighest among others. We also identify a reverse J-Shaped relation instock market ASEAN 6 over the period 2000-2016. This reverse J-Shapedrelation is statistically significant especially at the peak of the shapethat consists of the lowest-dividend payers group with the highest firmvalue. Other control variables that can predict firm value significantlyare earning, research and development expenditures, changes in totalassets and interest expense. We propose that the catering and maturityhypothesis can explain the result.Type of paper: empiricalKeywords: firm value, dividend, J-shaped.

103

Intended Use of Proceeds and Post-Issue Operating Performance ofIndonesian IPO Firms

Kaleb Hasudungan (kaleb.hasudungan@ui.ac.id)Wardatul Adawiyah (adawiyah@ui.ac.id)

Universitas Indonesia

ABSTRACT

This paper aims to examine the effect of intended use of proceedson firms’ post-issue operating performance in Indonesia, especially intrade, services, and investment sector, also in infrastructure, utilities,and transportation sector during the period 2008-2012. We investigatethe disclosure of use of proceeds in IPO prospectus, containing a Com-positional Data and is estimated with Quantile Regression method. Thefindings show that high-performing firms would be benefited from theintended use of proceeds for fixed asset investment and working capital.Meanwhile, investment in shares of stock, including acquisitions canexplain the phenomenon of the decline in firms’ operating performance.Moreover, we find there is no statistically significant effect of both debtrepayment and secondary shares on firms’ operating performance afterIPO.Type of paper: empiricalKeywords: compositional data, firm operating performance, initial pub-lic offerings, intended use of proceeds, quantile regression.

104

Session 3: Marketing

The Effect of Intrinsic And Extrinsic Product Attribute Beliefs OnValue, Satisfaction, and Loyalty; Comparative Study between Local

And Global Coffee Brand

Annisa AmaliaTengku Ezni BalqiahUniversitas Indonesia

ABSTRACT

The purpose of this study was to examine the effects of product at-tributes on coffee drinks (including sensory content, functional content,and packaging & branding) on perceived value (including utilitarianand hedonic values), consumer satisfaction and loyalty (including re-purchase intention, positive WOM, and willingness to pay more). Thisstudy is also a comparative study between local and global coffeebrands. In this study there are 189 respondents on local coffee con-sumers and 191 respondents on global coffee consumers. StructuralEquation Modelling was employed to analyse the survey data. Theresult are different between local and global brand. For local brand, thefindings indicate that all product attributes (content sensory, contentfunctional, packaging and branding attributes) do not influence utilitar-ian nor hedonic values. Further these values can affect consumer loyaltythrough satisfaction. Whereas, for global brand, only content sensoryand content function sensory attribute could enhance value. Furtherthese values also can affect consumer loyalty through satisfaction. Thisstudy also found that consumer satisfaction is more encouraging information of positive WOM than other loyalty formation. This studycan serve as a reference in determining the company’s communicationstrategy.Type of paper: empirical

105

The Influence of Knowledge and Religiosity with Mediation ofAttitude Toward Intention of Repurchasing Halal Cosmetics

Ilma Savira Putri (ilma.savira@ui.ac.id)Sri Daryanti (sri.daryanti@ui.ac.id)

Alia Rachma Ningtias (alia.rachma@ui.ac.id)Universitas Indonesia

ABSTRACT

The growth of muslim population continues to increase and is expectedto continue growing up to 2.2 billion by 2030. This makes the demandfor halal products is increasing. However, it is not followed by supplyfrom a trusted manufacturer for halal product. This study wanted toknow how the perception of halal in Islam can affect one’s intention ofrepurchase judged from the level of religiosity, knowledge, attitude andits impact in determining the intention of repurchasing halal cosmeticin Indonesia regardless of their religion. Total of 354 usable question-naires from respondents over the age of 18 and who purchased cosmeticon the last 6 months were used. This study used self-administratedquestionnaire with closed-ended questions. Also data analysis wasperformed using conclusive descriptive cross-sectional analysis andStructural Equation Modeling (SEM) method using LISREL 8.51 soft-ware. The results in the study showed that there is a significant impactbetween variable religiosity and knowledge of the customers towardintention to repurchase halal cosmetics on indirect relationship. Thepurpose of this study is to increase awareness on society about the im-portance of halal product is not only for internal use but also externaluse. The mediating variable: attitude; become a significant variable tomediating the influence of religiosity and knowledge toward intentionto purchase halal cosmetics. While previous study shown that onlyreligiosity has significant result.

Type of paper: empiricalKeywords: halal, religiosity, knowledge, influence, attitude, intention,repurchasing, halal cosmetics.

106

Factors Influencing the Intensity of Using a Digital Social Networkamong Indonesian Millennial Tourist

Annisa Husnul Latifah (annisaaltfh@gmail.com)Hapsari Setyowardhani (hapsari.setyowardhani@gmail.com)

Universitas Indonesia

ABSTRACT

This descriptive-quantitative research aims to examine the effect ofexperience self-congruity, perceived social value, and experience satis-faction on the intensity of using a digital social network to reinforce theidentity of millennials users in Indonesia. Based on the literature, it isknown that tourist especially those who came from millenials gener-ation use the internet in every stage of tourism consumption process.They always carry their mobile phone to create a travel content andthen post it to any social media they have. As social media is currentlythe second most used application after the chatting apps, it certainlyhas a great influence on consumer decision-making process. Previ-ous research by Cortés (2017) has discussed the influence of tourist’sself-congruity, perceived social value, and experience satisfaction onthe intensity of using digital social network. For all of that matters,researcher interested to recreate that model using Indonesian millen-nials as its respondent. This research involved 214 respondents whovisited Lombok for leisure and used a digital social network to informothers about their tourism experience. Lombok is chosen as it is knownas “the second Bali”, yet still not as popular as Bali. This study usedStructural Equation Modelling (SEM) as data processor, and the resultsshow that there is a direct and positive effect between perceived socialvalue and the intensity of using a digital social network, but no directand positive effect between experience self-congruity and experiencesatisfaction on the intensity of using a digital social network.Type of paper: empiricalKeywords: digital social network, perceived social value, satisfaction,self-congruity, tourism.

107

The Influence of Shopping Dimensions on Consumers’ Motivationto Shop at Malls: A Study on Supermal Karawaci Shopping Center

Luthfy AndruskhaAgung Nugroho (a.nugroho@ui.ac.id)

Universitas Indonesia

ABSTRACT

This purpose of this research is to determine the effect of the sevenShopping Dimensions identified by Bloch et al (1994) on consumers’motives for visiting and shopping at malls specifically in SupermalKarawaci, while simultaneously study the strategies needed for Su-permal Karawaci to compete with its competitors in terms of consumerbehavior and how it gives them a competitive advantage over othermalls. The multiple regression statistical technique for data analysisis used in this research to determine the significance of: (1) Aesthet-ics dimension, (2) convenience dimension, (3) escape dimension, (4)exploration dimension, (5) role enactment dimension, (6) flow dimen-sion, and (7) social dimension towards the consumers’ motivation forshopping at malls specifically at Supermal Karawaci. A structuredquestionnaire was distributed to the consumers of Supermal Karawaci,with a total of 200 respondents based on the sample size calculatedthrough non-probability purposive sampling. This research found all ofthe seven dimensions are positively related to consumers’ motivation toshop at malls, indicating that all hypotheses were accepted, with escapedimension being the strongest motivator amongst the others. A clusteranalysis showed that the respondents could generally be clustered intothree groups, 1) Moderately motivated respondents, 2) Highly moti-vated respondents and 3) Lowly motivated respondents. This research,however, was limited to Supermal Karawaci and its consumers only,with a non-probability sampling method that may predispose the re-sults to selection bias. In addition, the sample frame of 200 respondentsdoes not sufficiently represent the consumers of shopping malls ingeneral.Type of paper: empiricalKeywords: shopping dimensions, consumer motivation, mall visit be-haviour, shopping centres, retail industry, supermal karawaci

108

Analysis of Motivational Factors of MSMEs Entrepreneurs to beHalalpreneurs

Mumtaz Anwari (mumtazanw@gmail.com)Sri Rahayu Hijrah HatiUniversitas Indonesia

ABSTRACT

This study aims to know the motivational factors of SMEs entrepreneursto become Halalpreneurs based on their attitude such as awarenessof halal entrepreneurship, intrinsic motivation, effort to seek out op-portunity, creativity and motivation, honesty and integrity, risk-takingattitude, relative advantage and perceived desirability, Subjective normsuch as family support and peer influence, and Perceived behavioralcontrol such as perceived feasibility and government support and re-ligiosity. Data were collected from questionnaire that gathered 239

muslim respondents that have their own business. Data were then ana-lyzed using descriptive analysis and partial least square in SmartPLS3.0. From the result, intrinsic motivation, effort to seek out opportunity,relative advantage, perceived desirability, family support, and perceivedfeasibility positively influenced halalpreneurial propensity. Meanwhileawareness of halalpreneurship, creativity and innovation, honesty andintegrity, perceived governmental support, peers influence, risk takingattitude, and religiosity did not positively influence halalpreneurialpropensity.Type of paper: empiricalKeywords: SMEs, halal, halalpreneurship.

109

Session 3: Finance (3)

Ownership Concentration, Corporate Liquidity And DividendPayment Policy: Evidence Indonesian Financial Industries

Antonius Siahaan (antonius.siahaan@sgu.ac.id)Yosman Bustaman (jbustaman@gmail.com)

Indah Larisa Sari (ichheisseindahlarisasari@gmail.com)Swiss German University, Indonesia

ABSTRACT

The main objective of this research is to analyse the effect of ownershipconcentration and corporate liquidity on dividend payment policy inIndonesian financial industry. Dividend payment is measured usingdividend pay-out ratio on measuring dividend payment. Corporateownership concentration is measured using the number of shares heldby legal individual investors and large block-shareholders. Owner-ship concentration is divided into three categories, which are insideshareholders, stable shareholders, and market shareholder. Mean-while, the corporate liquidity is measured by corporate profit whichare Retained-earning/Total assets and Retained-earning/Total equity,corporate leverage (total liabilities/total assets), and corporate size (Lognormal total assets). We apply data panel regression and robust leastsquare method. Based on robust least square method of data panel re-gression, we find there is a relation between inside shareholder, marketshareholder and dividend payment policy. In contrast, there is no rela-tion between stable shareholder on dividend payment policy. On theother side, we also found that there is relation between corporate profitwhich variable is retained-earning/total assets, corporate leverage, andcorporate size on dividend payment policy. These results conclude thatdividend payment increases when inside shareholder decreases, andwhen market shareholder increases corporate profit will also increaseand corporate leverage and corporate size decreases.Type of paper: empiricalKeywords: dividend payment policy, ownership concentration, corporateliquidity.

110

Composite Systemic Risk Ranking for Identification ofSystemically Important Financial Institutions In Indonesia

Arza Faldy Prameswara (arzafaldy@gmail.com)Zaafri Ananto Husodo (z.husodo@ui.ac.id)

Universitas Indonesia

ABSTRACT

The aim of this study is to incorporate systemic risk ranking from sixgenerally accepted metrics and develop a single composite rankingusing Principle Component Analysis, based on Nucera, et. al. (2016).We analyze the Systemically Important Financial Institutions (SIFIs)to gather information difference between systemic risk metrics. Weidentify SIFIs as the top 10 companies in each systemic risk metricsranking, using a sample of 60 listed financial institutions in Indonesiaover the period 2008-2016. We find that our single composite rankingis more consistent in term of SIFIs composition than most individualrisk rankings. Therefore, we suspect that our single composite ranking,that combines both market and fundamental aspect, will provide betterinsight for the regulator to conduct decisions.Type of paper: empirical/reviewKeywords: SIFIs, systemic risk, systemic risk ranking, Principal Compo-nent Analysis, delta CoVaR, MES, SRISK, composite risk ranking.

Investment Cash Flow Sensitivity and Cash-Cash Flow Sensitivity:Cross Country Evidence

Maria Ulpah (mulpah@ui.ac.id)Universitas Indonesia

ABSTRACT

This study basically attempts to see the Investment cash flow sensitivity(ICFS) on cross-country level of analysis and the time-series variation,moreover we also would like to see the effect of financial developmenton this ICFS. As alternative, we also provide the estimation result usingcash-cash flow sensitivity. By using data from 14 European countries,we find that there is a positive and significant effect of cash flow oninvestment after controlling for the industry-year and country dummieswhich indicating that there is some friction in the financial market inEU area. We also find that that there is positive and significancerelationship between cash holding and cash flow. The decreasing trendof the effect of cash flow on investment cannot be found then we maysuggest that investment cash flow sensitivity still can be used as ameasure of financial constraint.Type of paper: empiricalKeywords: financial constraint, ICFS, CCFS, cross country analysis

111

Cost Structure and Payout Policy in Indonesia 2011-2015

Elizabeth Lesmana Pualam (lizbeth.lie@gmail.com)Sigit S. Wibowo (sigit.sw@ui.ac.id)

Universitas Indonesia

ABSTRACT

This study aims to examine the impact of cost structure on payoutpolicy within Indonesian non-financial firms. Previously, there is notmuch prior research regarding cost structure and payout policy onemerging market, especially Indonesia. Most of Indonesian firms stillprefer to distribute dividends over repurchases. Cost structure canbe defined as the portion of the firms’ fixed and variable. By usinglogistic panel regression method, the results show that Indonesiannon-financial firms’ cost structure plays a significant role in payoutpolicy, specifically dividend payout. When the cost structure decrease,firms become more flexible in changing their profits as the sales change.The higher values of cost structure mean the more inflexible the firmsbecome, these firms tend to have a high proportion of fixed costs intheir operating costs. This study reaches the understanding that firmswith high cost structure usually compensate less in dividends andrepurchases. Indonesian non-financial firms, which distributes payout,have a lower cost structure, higher retained earnings, higher cash,and more variable operating income. Based on the conducted study,it is more rational for Indonesian non-financial firms to administerpayout on dividend compare to repurchasing. Although the trendof repurchasing shares has recently escalated in emerging country,especially Indonesia, majority of Indonesian non-financial firms stillhave the tendency to spend money on dividend instead of repurchasesdue to unclear repurchases’ regulation and several limitations.Type of paper: empiricalKeywords: Payout policy, cost structure, operating leverage, dividend,emerging markets.

112

Corporate Social Responsibility Performance and BankingSoundness in Indonesia: Should The Industry Be More Socially

Responsible?

Rofikoh Rokhim and Winalda Ajaniara PerdanaUniversitas Indonesia

ABSTRACT

This study investigates the impact of corporate social responsibility(CSR) performance on banking soundness in Indonesian banking in-dustries during period 2008-2016. Using the OECD standards as CSRscoring indicator, this study found that CSR performance have positiveimpact on banks soundness. CSR may affect both the cost and revenue,although the costs increase, the revenues increase even more. There-fore, banks in Indonesia have to improve its CSR performance in orderto increase its financial performance and finally to reach the bankingsoundness.Type of paper: empiricalKeywords: corporate social responsibility, bank soundness, Indonesia.