DOI: https://doi.org/10.14710/dijb.2.1.2019.10-17

Relationship between accounting information systems implementation and corporate governance of rural banks in Indonesia

Widyatama University, Indonesia

Open Access Copyright 2019 Diponegoro International Journal of Business

Citation Format:
Abstract
The purpose of this paper is to examine the relationship between accounting information systems implementation and the governance of rural banks (bank perkreditan rakyat/BPR). Specifically, this study examines the effect of bookkeeping systems, financial reporting, budgeting systems, and IFRS for SMEs implementation on good corporate governance of rural banks.   PLS-SEM wasemployed for data analysis to 145 rural banks registered in Regional Owned Bank Association of Central Java Indonesia. The results of data analysis found that bookkeeping systems, financial reporting and budgeting systems implemetation positively affectgood corporate governance of rural banks, while IFRS for SMEs implementation was not significantly affectgood corporate governance of rural banks.  

 

Fulltext View|Download
Keywords: accounting information systems implementation; bookkeeping systems; financial reporting; budgeting system; IFRS for SMEs; good corporate governance; rural banks

Article Metrics:

Article Info
Section: Articles
Language : EN
Recent articles
Back matter Front matter Uncertainty, trust and formal governance mechanism in Indonesian family SMEs An investigation of factors affecting SMEs performance: an Indonesian case Effects of brand placement and player involvement on brand awareness: an empirical study on online game players More recent articles
  1. Alp, A., & Ustundag, S. (2009). Financial reporting transformation: the experience of Turkey. Critical Perspectives on Accounting, 20(5), 680–699. https://doi.org/10.1016/j.cpa.2007.12.005
  2. Bollen, K. A. (1989). Structure Equation Model that are nonlinier in Latent Variable: a Least-Squares Estimator. In Structure Equations With Latent Variables (pp. 223–251)
  3. BPR. (2010). Pedoman Akuntasi Bank Perkreditan Rakyat, 1–157
  4. Bushman, R. M., & Smith, A. J. (2003). Transparency, financial accounting information, and corporate governance. FRBNY Economic Policy Review, 9(1), 65–87. https://doi.org/10.1016/S0165-4101(01)00027-1
  5. Christopher, S., Guay, W. R., Joseph, P., Link, C., & Armstrong, C. S. (2010). The Role of Information and Financial Reporting in Corporate Governance and Debt Contracting. Journal of Accounting & Economics, 50(2), 179–234
  6. Corcoles, Y., Penalver, J., & Ponce, A. (2011). Intellectual capital in Spanish Public Universities: Stakeholders ’ Information Needs. Journal of Intellectual Capital, 12(3), 356–376. https://doi.org/10.1108/14691931111154689
  7. Eng, L. L., & Mak, Y. T. (2003). Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22, 325–345. https://doi.org/10.1016/S0278-4254(03)00037-1
  8. Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39. https://doi.org/10.2307/3151312
  9. Hair, J., Hult, T., Ringle, C., & Sarstedt, M. (2014a). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). California: SAGE. https://doi.org/10.1007/978-3-319-71691-6
  10. Hair, J., Hult, T., Ringle, C., & Sarstedt, M. (2014b). Partial Least Squares Structural Equation Modeling ( PLS-SEM ). USA: SAGE Publication
  11. Haniffa, R. M., & Cooke, T. E. (2002). Culture , Corporate Governance and Disclosure in Malaysian Corporations. A Journal of Accounting Finance and Business Studies, 38(3), 317–349. https://doi.org/https://doi.org/10.1111/1467-6281.00112
  12. http://www.simulasikredit.com. (n.d.). Apa itu Standar Akuntasi Keuangan Apa Fungsi Standar Akuntansi Keuangan SimulasiKredit
  13. Huynh, Q. L. (2015). The mutual relationship between corporate governance and management accounting: Which occurs first? American Journal of Applied Sciences, 12(6), 403–410. https://doi.org/10.3844/ajassp.2015.403.410
  14. IAI. (2016). Standar Akuntansi Keuangan- IAI Global. Retrieved from http://iaiglobal.or.id/v03/standar-akuntansi-keuangan/etap
  15. International Finance Corporation. (2017). Corporate governance frequently asked questions
  16. Joshi, P. L., & Ramadhan, S. (2002). The adoption of international accounting standards by small and closely held companies: Evidence from Bahrain. International Journal of Accounting, 37(4), 429–440. https://doi.org/10.1016/S0020-7063(02)00190-5
  17. Martani, D. (2017). Penyajian Laporan Keuangan
  18. Mwangi, M. (2011). The Role of Budgeting in Promoting Corporate Governance on Constituency Development Funds Allocation: A Case of Nairobi Country (Vol. 55)
  19. Nobes, C., & Stadler, C. (2013). How arbitrary are international accounting classifications? Lessons from centuries of classifying in many disciplines, and experiments with IFRS data. Accounting, Organizations and Society, 38(8), 573–595. https://doi.org/10.1016/j.aos.2013.10.001
  20. Pallisserry, F. (2016). True and Fair Financial Reporting: a tool for better Corporate Governance. Journal of Financial Crime, 19(4), 332–342. https://doi.org/Pallisserry, F. (2012). True and fair financial reporting: a tool for better corporate governance. Journal of Financial Crime, 19(4), 332–342. doi: 10.1108/13590791211266331
  21. Peraturan Nomor 4/POJK.03/2015 Tentang Penerapan Tata Kelola Bagi Bank Perkreditan Rakyat
  22. Seal, W. (2006). Management accounting and corporate governance: An institutional interpretation of the agency problem. Management Accounting Research, 17(4), 389–408. https://doi.org/10.1016/j.mar.2006.05.001
  23. Shil, N. C. (2008). Accounting for Good Corporate Governance, 3(1), 22–31. Retrieved from http://joaag.com/uploads/3_ShilFinal.pdf
  24. Soleh, A. (2018). Kasus Penipuan Jadi Faktor Utama Penyebab Banyaknya BPR di Indonesia Tutup - TribunSolo. Retrieved from
  25. http://solo.tribunnews.com/2018/02/22/kasus- penipuan-jadi-faktor-utama-penyebab-banyaknya-bpr-di-indonesia-tutup
  26. https://ekonomi.kompas.com/read/2018/10/22/144240026/hingga-semester-i-2018-bisnis-bank-perkreditan-rakyat-masih-tumbuh
  27. Tenenhaus, M., Amato, S., & Vinzi, E. V. (2004). A global goodness-of-fit index for PLS structural equation modelling. The XLII SIS Scientific Meeting, 739–742
  28. Uyar, A. (2017). Impact of the Accounting Information System on Corporate Governance : Evidence from Turkish Non-Listed Companies Impact of the Accounting Information System on Corporate Governance : Australasian Accounting, Business and Finance Journal, 11(1), 9–27. https://doi.org/10.14453/aabfj.v11i1.3
  29. Uyar, A., & Güngörmüş, A. H. (2013). Perceptions and knowledge of accounting professionals on IFRS for SMEs: Evidence from Turkey. Research in Accounting Regulation, 25(1), 77–87. https://doi.org/10.1016/j.racreg.2012.11.001
  30. Uyar, A., & Kuzey, C. (2016). Contingent Factors, Extent of Budget Use and Performance: A Structural Equation Approach. Australian Accounting Review, 26(1), 91–106. https://doi.org/10.1111/auar.12090

Last update:

No citation recorded.

Last update:

No citation recorded.