Jurnal Ekonomi dan Bisnis Airlangga

Front Matter Volume 34, No.1, December – May 2024

Sulistya Rusgianto — 2024-05-30

DETERMINANTS OF MILLENNIAL INVESTMENT DECISION-MAKING IN THE SHARIA CAPITAL MARKET: A COMPREHENSIVE REVIEW

Nurul Nur Aeni — 2024-05-30

Introduction: The study aims to examine the impact of financial literacy, overconfidence, regret aversion bias, herding, and risk tolerance on the investment decisions of the Indonesian millennial generation.

Methods: The study used a quantitative approach with a sample of 120 respondents from the millennial generation who invested in the Islamic capital market. A statistical test was done using SPSS IBM 26.

Results: Financial literacy and overconfidence significantly influenced investment decisions. On the other hand, regret aversion bias, herding, and risk tolerance had no significant impact on investment decisions.

Conclusion and suggestion: The study concluded that financial literacy and overconfidence are the major factors that affect the investment decisions of the Indonesian millennial generation. The government (regulator) and related institutions should take a more proactive approach in providing outreach and education about the importance of financial literacy and overconfidence. The millennial generation is interested in investing in the Sharia capital market.

INTERMEDIATING ROLES OF INSTITUTIONAL INFRASTRUCTURE IN THE TRADE OPENNESS-INCLUSIVE GROWTH NEXUS: NEW EMPIRICAL EVIDENCE FROM NIGERIA

Felix Odunayo Ajayi — 2024-05-30

Introduction: Inclusive growth (IG) is a revolutionary method for generating and sustaining macroeconomic stability through economic development, social equity, and prosperity. There has been little theoretical and empirical study in Nigeria on analyzing the effects of trade openness on inclusive growth and exploring its determinants.

Methods: This study examines the intermediating roles of institutional infrastructure in the trade openness-inclusive growth nexus in Nigeria spanning from 1985 to 2021. The study employed the Johansen Cointegration methodology to confirm the existence of the long-run association while fully modified ordinary least squares (FM-OLS) and dynamic ordinary least squares (DOLS) techniques are used to elucidate the uncertainty in the trade openness-inclusive growth nexus.

Results: Consequently, the results of the Johansen Cointegration confirmed the long-run association among variables. The FM-OLS and D-OLS indicate that trade openness enhances growth in Nigeria, suggesting that greater trade openness would foster inclusive growth and remain a focal point for both direct and indirect relations with inclusive growth. The interaction effects of trade openness and institutional infrastructure on inclusive growth show negative and insignificant effects on inclusive growth, demonstrating that institutional infrastructure plays a mitigating influence in the relationship between trade openness and inclusive growth, albeit insignificant at a 5% level.

Conclusion and suggestion: The study recommends that Nigeria should pursue policies aimed at improving institutional infrastructures with a way of reducing transactional costs and risks related to trading.

EFFICIENCY OF SDGS IMPLEMENTATION IN VILLAGE SUSTAINABLE DEVELOPMENT TO REDUCE INCOME DISTRIBUTION INEQUALITY

Amila Zamzabila Putri — 2024-05-30

Introduction: Village development in Indonesia aims to improve the welfare of the community, especially in terms of income equality. To achieve this goal, people-centered sustainable development is needed. Sustainable development is an effort to improve the quality of life while still trying not to exceed the ecosystem that supports life. Sustainable development in villages can be implemented through the Village SDGs. The Village SDGs include 17 goals that are interconnected with each other. Each goal has specific targets in addressing pressing social, economic, and environmental issues and creating a more just and sustainable future together. The purpose of this study is to determine whether people-centered sustainable development is effective in reducing income distribution inequality and to explain how it affects income distribution inequality.

Methods: Using DEA analysis and panel data regression, the research object is 33 provinces in Indonesia.

Results: The results show that education and income have a significant negative effect on income inequality. Furthermore, health has a significant positive effect on income distribution inequality.

Conclusion and suggestion: Equal access to education, health, and equal income, will be effective in reducing the level of inequality in the community.

CONTRIBUTION OF FOREIGN DEBT, SUKUK, AND BONDS IN INDONESIA'S ECONOMIC GROWTH

Devi Widhia Maharani — 2024-05-30

Introduction: Indonesia's economic growth experiences unstable conditions from year to year, The study explores their impact on Indonesia's inability to overcome government spending problems by comparing three alternative sources of Indonesian state income to support economic growth, namely foreign debt, Sukuk, and bonds.

Methods: The research uses a quantitative approach derived from secondary data in the form of time series data. Foreign debt has a negative effect on Indonesia's economic growth, while sukuk and bonds have a positive effect on Indonesia's economic growth.

Results: The simultaneous result is 0.948, meaning that the independent variables (foreign debt, Sukuk, and bonds) have an influence and can be explained by 94.8% of Indonesia's economic growth. Meanwhile, the remaining 5.2% is explained by other variables that are not in this research. This indicates that the foreign debt sukuk and bonds variables have a big influence on Indonesia's economic growth in 2016-2023.

Conclusion and suggestion: Foreign debt must be controlled properly by the state so that an economic crisis does not occur in Indonesia. Apart from that, the government must increase the issuance of sukuk and bonds to meet the needs of the deficit APBN.

THE ASSOCIATION BETWEEN AUDIT FEE AND AUDIT QUALITY: A META-ANALYSIS STUDY

Hartaty Hartaty — 2024-05-30

Introduction: This study aims to reconcile conflicting empirical results from previous studies on the relationship between audit fees and audit quality. In addition, it investigated whether the contradictory findings were moderated by different types of audit fees and audit quality measures. The study also makes cross-country comparisons of empirical evidence to provide more insights.

Methods: This study utilized meta-analysis to integrate the findings of previous studies on the relationship between audit fees and audit quality and further investigated moderators of the association.

Results: The findings revealed that audit fees had a positive effect on audit quality. These results were observable for both developed and developing countries, indicating the beneficial consequences of audit fees on audit quality should not be overlooked. Furthermore, this study also found that the size of audit fees and quality moderated the positive influence of audit fees on the quality.

Conclusion and suggestion: This study contributes to the stream of research investigating the relationship between audit fees and audit quality. To the best of our knowledge, this study represents one of the pioneering efforts to apply statistical meta-analysis to the issue addressed.

ANALYSIS OF DETERMINANTS IN HALAL INDUSTRY DEVELOPMENT OF ISLAMIC FASHION INDONESIA

Fachrounissa Zein Vitadiar — 2024-05-30

Introduction: As Indonesia is inhabited by a lot of Muslim population, this demographic characteristic benefits the expansion of the halal industry internationally. The reputation of halal products relies on the rising production quality. This study aims to better understand how fashion preferences, halal certification, and the quality of business actors influence the potential of the Indonesian Islamic fashion industry to become an international halal industry.

Methods: This study was carried out using quantitative analyses including multiple linear regression, validity, and reliability analyses.

Results: The quality of business actors, halal certification, and fashion taste all had a positive and significant effect on expanding the potential of the Islamic halal fashion trade.

Conclusion and suggestion: The Indonesian Ulema Council and the government should coordinate in ascending the halal certification. In addition, business actors are required to seek information related to halal certificates and acquire them before running their business. Given the importance of halal certification, the public is encouraged to purchase halal fashion items as this lifestyle expresses their identity.

WASTE MANAGEMENT USING LEAN-GREEN APPROACH: A CASE STUDY IN A FURNITURE COMPANY

Febriana Wurjaningrum — 2024-05-30

Introduction: Wooden furniture is one of Indonesia's superior products, with a low-efficiency level. However, the wooden furniture industry is often associated with intense environmental degradation and high levels of waste. In anticipating waste, a green manufacturing model proposed is Lean-Green manufacturing. This current study aims to explore the implementation of the Lean-Green model in a furniture company's waste processing system and assess the effectiveness of Lean-Green implementation.

Methods: The research methodology was qualitative with the Lean-Green scoring method implemented in the supply chain of Company S. Data were collected through interviews and field observations.

Results: Company S had a low score, meaning that the interaction between the Lean and Green approaches in the waste processing of the supply chain was not optimal. The Lean-Green implementation in the wooden furniture industry was effective in evaluating waste processing in the supply chain. The research findings urge the initiatives to improve the understanding and implementation of the Lean-Green concept.

Conclusion and suggestion: The evaluation of the Lean-Green implementation helps the company's manager improve the supply chain with sustainable measures.

CONSUMER SHOPPING BEHAVIOR IN INDONESIA AND THAILAND: HEDONIC AND UTILITARIAN SHOPPING VALUES

Hendri Pujianto — 2024-05-30

Introduction: Shopping value, which influences shopping experiences, has garnered attention and constitutes a well-studied topic in marketing. This study aimed to measure and describe differences in consumer shopping behavior between Thailand and Indonesia regarding hedonic and utilitarian values.

Methods: This study employed a quantitative, descriptive, cross-sectional survey conducted among consumers residing in Indonesia and Thailand. The respondents comprised 70 individuals aged 18 years from Surakarta City and an equivalent number from Nonthaburi City. The data distribution and collection using questionnaires were carried out for 2 months, from July to August 2023. The data analysis was performed by utilizing SPSS software. Notably, both cities are in the process of rapid development into metropolises. Most respondents were women under 25 years old.

Results: This study discovered that Indonesian and Thai consumers performed hedonic shopping behaviors. However, consumers with hedonic shopping behaviors in Thailand were more inclined towards impulsive shopping behaviors and engaged in shopping activities out of desire rather than necessity, compared to consumers in Indonesia.

Conclusion and suggestion: This study described that both Indonesian and Thai consumers had utilitarian shopping behaviors, enabling them to accomplish their objectives and procure desired items effectively during shopping endeavors. Nonetheless, consumers in Thailand display a tendency to find their desired items and prefer to shop briefly compared to their counterparts in Indonesia. Future researchers would benefit from examining the relationship between consumer behavior and other factors such as age or gender. Understanding the influence of these variables on shopping behavior is crucial for gaining comprehensive insights into consumer preferences and decision-making processes in the retail environment.

CASH WAQF FOR MICROFINANCE: A BIBLIOMETRIC ANALYSIS

Zahriya Nurul Aini — 2024-05-30

Introduction: Waqf is one of the Islamic social financial instruments, having the distinctive characteristic that waqf assets are donated voluntarily by the wakif and are permanently designated for social benefits. Waqf can be used for productive or commercial activities to generate profits by Sharia law. Cash waqf can play a role in supporting the overall development process, both in human resource development, as well as in economic and social development. This study tries to explore the role of cash waqf for microfinance which can subsequently help the people's economy.

Methods: The research method used in this research is quantitative research with bibliometric analysis. Data sources collected secondary data obtained from the Google Scholar database. Data were obtained using Publish or Perish (POP) software and analyzed using VOSviewer software.

Results: The results of this research show that, from data searches using the keywords "cash waqf", "microfinance" and "sharia microfinance" by limiting 500 papers in the 2010-2024 time period, the words "microfinance institutions" are the most frequent keywords, indicated by a darker color than other keywords.

Conclusion and suggestion: Based on the results and analysis, it can be concluded that, from year to year, research on the topic of cash waqf for microfinance is most often used. However, research on the topic of cash waqf for Sharia microfinance is still limited. Therefore, future research can be carried out regarding cash waqf for sharia microfinance. Cash waqf plays an important role in supporting the overall development process, both in human resource development, as well as in economic and social development. The potential of cash waqf can be used as a means of economic empowerment for lower-middle-class communities with the role played by microfinance institutions.

FINANCIAL LITERACY, INFORMALITY, AND SMALL BUSINESS OPERATIONAL PERFORMANCE IN ZIMBABWE

Rutendo Taruvinga — 2024-05-30

Introduction: The exponential growth of small and medium enterprises (SMEs) in many developing economies is a well-documented phenomenon in business literature. However, research indicates that the expansion of most SMEs is hindered by financial illiteracy and high levels of informality, posing significant challenges to their performance and long-term sustainability. Concerns arise from the fact that only a small fraction of these enterprises successfully transition into larger firms. This study sought to address these issues by investigating the levels of financial literacy among 120 SMEs operating in Harare and Bindura, taking into account the pervasive informality within the sector. The research also aimed to evaluate the relationship between financial literacy and SME operational performance.

Methods: Employing a quantitative approach within an explanatory research design, data collection was facilitated through a structured questionnaire. To capture the diverse landscape of SMEs operating in an informal context, both purposive and convenience sampling methods were utilized to select participants for the survey. Descriptive and inferential analyses were conducted using SPSS software.

Results: The findings of the study revealed a significant positive impact of financial literacy on SME operational performance, indicating that advanced financial literacy can contribute to enhanced business outcomes. Moreover, the research observed an improvement in financial literacy within SME operations, evidenced by increased awareness and application of financial management skills.

Conclusion and suggestion: The study recommends that efforts to promote financial literacy among SMEs should be intensified through advanced financial education initiatives, awareness campaigns, and enhanced financial inclusion strategies. Financial service providers are encouraged to play a proactive role in supporting SME growth by investing in financial awareness programs, funding educational initiatives, and actively engaging SMEs in key economic policy frameworks. Ultimately, SMEs are urged to fully embrace financial literacy as a fundamental pathway for achieving sustainable growth and long-term business success amidst the challenges of informality.