Contemporary Journal on Business and Accounting

Implementation of Government Accounting Standards No. 07 and Management of Fixed Assets at the Regional Asset Financial Management Agency of Gowa Regency

St Maimuna Febrianti, Idrawahyuni Idrawahyuni, Wahyuni Wahyuni — Mon, 27 Oct 2025 00:00:00 +0800

Purpose – This study aims to analyze the implementation of Government Accounting Standards No. 07 and Fixed Asset Management at the Regional Asset Financial Management Agency of Gowa Regency.

Design/methodology/approach – This research uses a qualitative research method with a focus on the implementation of Government Accounting Standards and Fixed Asset Management.

Findings – The results of this study indicate that the implementation of SAP No. 07 has been carried out in accordance with applicable provisions, but there are still technical obstacles, such as the lack of integration of the Electronic Regional Property (E-BMD) asset recording system with the Regional Government Information System (SIPD) regional financial system, as well as limited human resources in the implementation of asset inventory and assessment. Fixed asset management has been running according to regulations but its implementation in the field is still not optimal.

Originality - This research lies in an in-depth study of the application of Government Accounting Standards by linking it to Fixed Asset Management.

Keywords: GSAP No.07, Fixed Asset, SIPD, E-BMD, BPKAD

The Influence of Herding Behaviour, Mental Accounting, and Regret Aversion Bias on Investment Decisions with Framing as a Moderating Variable

Lukman Tuwo, Ana Mardiana, Jingga Azaria Yasi Dera — Mon, 27 Oct 2025 00:00:00 +0800

Purpose – This study aims to analyze the influence of herding behaviour, mental accounting, and regret aversion bias on investment decisions, as well as the role of framing as moderation variables in these relationships.

Design/methodology/approach – The research was conducted on investors who have accounts at securities firms in Makassar City using purposive sampling methods. The samples used were 119 respondents who had met the research criteria. Data were obtained through questionnaires and analyzed using a moderated regression analysis.

Findings – Research results show that herding behaviour, mental accounting, and regret aversion can have an effect on investment decisions. In addition, framing proved to be a moderation variable that strengthened the influence of herding behaviour on investment decisions. In contrast, framing weakens the relationship between mental accounting and regret aversion bias with investment decisions. This suggests that framing plays a greater role in influencing external and social behaviour bias, while psychological bias rooted in investors' cognitive and emotional internal processes is less affected by the way information is presented.

Originality – This study contributes by integrating the framing variable as a moderator in the relationship between behavioral biases (herding behaviour, mental accounting, and regret aversion bias) and investment decisions, particularly among investors in Makassar City.

Keywords: Herding Behaviour, Mental Accounting, Regret Aversion Bias, Investment Decision, Framing, Behavioral Finance

Paper Type Research Result

Indonesia Sovereign Wealth Fund and Accountability State Wealth Management: The Relevance of External Audit by the Office Public Accountant or Constitutional Audit by the State-Audit Board

Afriansyah Tanjung, Agniya Thahira, Maela Khoirul Ummah — Mon, 27 Oct 2025 08:49:24 +0800

Purpose – This study explores the accountability framework of Indonesia’s Sovereign Wealth Fund (SWF), known as the Lembaga Pengelola Investasi (LPI) or Indonesia Investment Authority (INA), focusing on the legal and institutional mechanisms that ensure its transparent and professional operation.

Design/methodology/approach – The research addresses concerns over the management of public wealth derived from the state budget and other state assets, emphasizing the relevance of dual oversight by the Audit Board of Indonesia (BPK) and Public Accounting Firms (KAP). Using a qualitative, library-based research methodology with conceptual and statute-based approaches, the study draws on legal statutes, academic literature, and international case studies—particularly Norway’s GPFG and Singapore’s Temasek Holdings.

Findings – The Findings highlight that dual-audit mechanisms are both constitutionally mandated and functionally complementary: BPK ensures public accountability and legal compliance, while KAP provides internationally credible financial assurance to investors.

Originality – The study identifies governance risks drawn from past corruption in State-Owned Enterprises (BUMN) and proposes a dual-audit framework as a safeguard against similar failures. It contributes to the legal and public finance discourse by providing a normative and empirical justification for multi-layered oversight in managing Indonesia’s strategic public investments.

Keywords: INA, BPK, Public Accounting Firms, Dual-Audit Mechanism.

Paper Type Research Result

The Effect of Intellectual Capital on Firm Value with Company Reputation and Financial Performance as Mediation Variables

Robert Jao, Kunradus Kampo, Anthony Holly, Irene Bakrie — Mon, 27 Oct 2025 00:00:00 +0800

Purpose – This research is aimed to determine the effect of intellectual capital on firm value with corporate reputation and financial performance as mediating variables.

Design/methodology/approach – This research uses secondary data obtained by using documentation method. The data source in this research is the financial reports of banking companies listed on the Indonesia Stock Exchange (IDX) for the 2020-2024 period and have score Corporate Image Index (CII) published by Frontier Consulting Group. The sample were selected using purposive sampling method, with a total sample of 39 data. Method used in this research is path analysis.

Findings – The result of this research indicate that intellectual capital has a positive and significant effect on company reputation. Intellectual capital has a positive and significant effect on financial performance. Company reputation has a positive and significant effect on firm value. Financial performance has a positive and significant effect on firm value. Intellectual capital has a positive but not significant effect on firm value. Company reputation is able to mediate the effect of intellectual capital on firm value. Financial performance is able to mediate the effect of intellectual capital on firm value.

Originality – This study integrates corporate reputation and financial performance as mediating variables in the relationship between intellectual capital and firm value, focusing on the banking sector in Indonesia that possesses a Corporate Image Index (CII) score.

Keywords: Intellectual Capital, Firm Value, Company Reputation, Financial Performance

Paper Type Research Result

The Effect of Effectiveness Ratio, Efficiency Ratio, and Fiscal Independence on Financial Distress of Local Governments in Regencies and Cities in Indonesia for the 2022-2023 Period

Atha Athaya, Rindu Rika Gamayuni — Mon, 27 Oct 2025 09:38:47 +0800

Purpose – This study aims to examine the effect of effectiveness ratio, efficiency ratio, and fiscal independence on financial distress in local governments of regencies and cities in Indonesia for the 2022-2023 period.

Design/methodology/approach – This research uses a quantitative method with secondary data obtained from the audited Local Government Financial Reports (LKPD) and the Fiscal Capacity Index issued by the Ministry of Finance. The analysis was conducted using binary logistic regression.

Findings – The results show that the effectiveness ratio has a negative and significant effect on financial distress, while the efficiency ratio has a positive and significant effect. Fiscal independence has a negative and significant effect, indicating that higher autonomy reduces the risk of fiscal distress.

Originality – This study provides empirical evidence on how local government financial performance affects fiscal distress by integrating effectiveness, efficiency, and fiscal independence ratios in one model.

Keywords: Effectiveness Ratio, Efficiency Ratio, Fiscal Independence, Financial Distress, Local Government.

Paper type Research Result

Pok Pek Prak: Sundanese Local Wisdom as the Foundation for Financial Reporting among Micro, Small, and Medium Enterprises (MSMEs)

Yanti Yanti, Fista Apriani Sujaya, Sihabudin Sihabudin, Citra Savitri — Mon, 27 Oct 2025 10:57:05 +0800

Purpose – This study was conducted to examine the extent to which the Pok Pek Prak culture is used as a conceptual foundation in the preparation of financial statements.

Design/methodology/approach – This research employs a qualitative method with a phenomenological approach. The data used consists of primary data obtained through interviews with MSMEs (Micro, Small, and Medium Enterprises) managers operating in the culinary sector.

Findings – The results show that the Pok Pek Prak culture has already been implemented in the management of MSMEs. Furthermore, this culture should be applied as a foundation in financial reporting, as it reflects the values of Sundanese local wisdom. The values embodied in Pok Pek Prak can be instilled in individuals managing financial reports, thereby enhancing the quality and accountability of those reports.

Originality – This study explores the extent to which the Pok Pek Prak culture can serve as a conceptual foundation for the preparation of MSME financial statements in West Java.

Keywords: Pok Pek Prak, Sundanese local wisdom, MSMEs.

Paper Type Research Result