Indonesian Journal of Law and Economics Review

Brand Image And Trust Relate Positively To Purchases Unlike Location

2026-10-01T01:49:24+00:00

General Background Micro, small, and medium enterprises must adapt to intense market competition to sustain their economic contributions and maintain operational viability. Specific Background The Jambangan Village cracker center in Sidoarjo Regency is a growing economic hub, yet it faces critical challenges regarding unstandardized packaging, inconsistent product quality, and inadequate parking facilities. Knowledge Gap While previous literature evaluates consumer behavior, existing empirical studies present inconsistent findings regarding how corporate reputation, client confidence, and physical accessibility dictate commercial transactions. Aims This study investigates how brand image, customer trust, and location shape purchasing decisions at the Jambangan Village cracker center. Results Analyzed through Partial Least Squares Structural Equation Modeling on data from 100 respondents, the findings reveal that brand image and customer trust positively and significantly determine purchasing decisions, whereas location exhibits a significant negative relationship. Novelty This research uniquely demonstrates that in specific rural business hubs, poor environmental infrastructure and limited accessibility can inversely associate alongside buying intentions despite strong product recognition. Implications Local producers must diversify their offerings and sales communication skills while actively collaborating with regional authorities to resolve infrastructure and parking limitations, thereby ensuring sustainable consumer convenience.

Highlights:

• Corporate reputation significantly dictates commercial transactions among local enterprise patrons.

• Consumer confidence regarding product consistency shapes final transaction agreements favorably.

• Limited physical site accessibility inversely associates alongside overall transaction volumes.

Keywords: Brand Image, Customer Trust, Location Strategy, Purchasing Decision, Partial Least Squares

Customer Engagement Mediates Digital Marketing And Service Quality Determining Cafe Patron Loyalty

2026-10-01T02:39:42+00:00

Abstract General Background The food and beverage sector requires dynamic strategies to maintain market share amid intense competition. Specific Background Cafes in Kavling DPR Sidoarjo struggle with high closure rates and visitor retention despite utilizing digital marketing and standard services. Knowledge Gap Previous literature isolates digital marketing, service quality, and loyalty, leaving how customer engagement bridges these variables locally underexplored. Aims This study investigates how digital marketing and service quality determine customer loyalty, examining customer engagement as a mediator among Sidoarjo cafe patrons. Results Partial Least Squares analysis of 114 respondents reveals service quality positively dictates loyalty, whereas intensive digital marketing shows a negative direct relationship. Customer engagement significantly mediates digital marketing's effect on loyalty but fails to mediate service quality's effect. Novelty This study identifies a promotional fatigue effect, demonstrating that excessive digital marketing reduces loyalty unless converted into active engagement. Implications Managers must ensure consistent physical service and curate interactive digital content to foster genuine engagement and long-term patronage.

Highlights:

• Consistent physical provision directly predicts returning buyers regardless of online interactions.

• Overly intensive promotional communications inversely correlate with consumer retention when unmediated.

• Active consumer interaction successfully converts online communication efforts into sustained commercial retention.

Keywords: Digital Marketing, Service Quality, Customer Engagement, Customer Loyalty, Cafe Business

Risk Profile Governance Earnings And Capital Predict Banking Corporate Value

2026-10-01T03:35:35+00:00

General Background The banking sector functions as a vital financial intermediary necessitating robust operational performance to maintain public trust and stimulate macroeconomic growth. Specific Background Regulatory frameworks require financial institutions to maintain their health using risk, administration, profitability, and equity metrics to secure market confidence and mitigate potential liquidity crises. Knowledge Gap Previous empirical literature presents fragmented findings, frequently isolating individual bank health indicators rather than evaluating the comprehensive assessment framework against market valuation metrics like Tobin's Q. Aims This study investigates how risk profile, corporate governance, earnings, and capital determine the firm value of banking enterprises listed on the Indonesia Stock Exchange from 2020 to 2025. Results Based on multiple linear regression analysis of 217 purposively sampled observations, the findings demonstrate that non-performing loans, independent commissioner proportions, return on assets, and capital adequacy ratios significantly dictate corporate market assessment. Novelty This research provides a holistic evaluation of the updated bank health assessment framework by simultaneously testing its four core components against equity market valuation across a dynamic five-year timeline. Implications Financial institutions must prioritize comprehensive hazard mitigation, transparent administrative oversight, robust profitability, and sufficient equity reserves to optimize investor confidence and maximize long-term market capitalization.

Highlights:

Non-performing loan metrics inversely correlate with market capitalization among financial institutions.
Independent commissioner proportions actively stimulate investor confidence and market assessment.
Return on assets and adequacy ratios directly secure long-term equity appreciation.

Keywords: Tobin's Q, Market Capitalization, Bank Health, Non-Performing Loans, Financial Intermediaries

Cash Holding And Internal Control Predict Mining Corporate Value Through Profitability

2026-10-01T03:24:15+00:00

General Background Corporate sustainability requires accountable governance and responsible administration. Specific Background The resource extraction sector faces severe volatility, necessitating optimal liquidity, rigorous oversight, and transparent non-financial reporting. Knowledge Gap Previous studies present inconsistent findings regarding whether sustainability disclosures, institutional monitoring, and liquidity reserves determine market capitalization through intervening financial metrics. Aims This study investigates how environmental, social, and governance reports, administrative frameworks, and liquid assets dictate market assessment, examining financial returns as a mediator in Indonesian extraction enterprises. Results Multiple regression and Sobel tests on 144 observations reveal that liquid assets significantly drive financial returns, while sustainability reporting and administrative monitoring do not. Furthermore, administrative monitoring, liquid assets, and financial returns directly dictate market assessment, whereas sustainability reporting exhibits no significant relationship. Financial returns successfully mediate the relationship between liquid assets and market assessment, but fail to mediate other variables. Novelty This research demonstrates that within volatile extraction industries, tangible liquidity reserves dictate market perception more immediately than non-financial sustainability disclosures. Implications Executives must prioritize liquidity management and rigorous administrative monitoring to maximize investor confidence and secure market capitalization.

Highlights:

Optimal liquidity reserves significantly dictate return on assets within resource extraction enterprises.
Strict administrative oversight directly guarantees higher market assessment among financial investors.
Sustainability disclosures fail to immediately translate into short-term financial returns.

Keywords: Environmental Social Governance, Financial Performance, Firm Value, Internal Control System, Cash Holding

Financial Performance Moderates Intellectual Capital And Firm Size Predicting Corporate Value

2026-10-01T02:16:20+00:00

General Background The banking sector continuously transforms into a knowledge-based industry, requiring strategic resource optimization to maintain competitive advantages. Specific Background Intellectual capital and physical firm size serve as crucial organizational elements that signal operational stability, resource capacity, and prospect viability to investors. Knowledge Gap Despite theoretical consensus, previous empirical studies present inconsistent findings regarding how non-physical resources and corporate dimensions directly determine organizational worth, suggesting the necessity of investigating financial metrics as moderating mechanisms. Aims This study examines how knowledge resources and company dimensions determine corporate worth while analyzing financial outcomes as a moderating variable within the Indonesian banking industry. Results Based on Moderated Regression Analysis of 150 observations from 30 listed banks between 2020 and 2024, both intellectual capital and firm size positively and significantly dictate organizational worth. Furthermore, financial performance significantly strengthens these direct relationships. Novelty This research integrates resource-based and signaling theories to explicitly map how high financial returns magnify the investor assessment of knowledge resources and corporate dimensions simultaneously. Implications Banking executives must prioritize non-physical resource management and operational efficiency, as robust financial outcomes maximize investor confidence and overall corporate worth.

Highlights:

• Knowledge resources significantly determine organizational worth within the banking industry.

• Business scale positively correlates with higher market assessment among financial institutions.

• Profitability metrics strengthen the relationship between non-physical assets and overall company pricing.

Keywords: Intellectual Capital, Firm Size, Financial Performance, Firm Value, Banking Sector

Virtual Account Integration Secures Cash Receipt Accounting Systems And Internal Control

2026-10-01T03:11:46+00:00

General Background Public financial management requires robust oversight to prevent administrative fraud. Specific Background Manual revenue recording exposes government units to transcription errors, reconciliation delays, and misappropriation risks. Knowledge Gap Few studies evaluate how integrating virtual accounts with cash receipt systems operationalizes the COSO framework in local governments. Aims This study analyzes virtual account-based cash receipt systems and evaluates COSO-based internal controls at the Construction Testing Laboratory. Results Qualitative analysis reveals the system successfully integrates virtual accounts via local revenue applications, automatically synchronizing banking networks and regional treasuries. This implementation eliminates manual errors, accelerates reconciliation, and fulfills all COSO components through strict task segregation. Novelty This research explicitly maps how virtual gateways transform manual cash receipt vulnerabilities into automated compliance mechanisms. Implications Public administrators should adopt integrated virtual account frameworks to secure revenues and guarantee transparent reporting.

Highlights:

Automated payment synchronization eliminates manual data entry vulnerabilities within regional treasury operations.
Digital transaction documentation fully satisfies COSO framework compliance requirements for public institutions.
Strict task segregation mechanisms successfully prevent unauthorized fund manipulation during service delivery.

Keywords: Financial Transparency, COSO Framework, Public Sector Governance, Digital Payment, Risk Management

Online And Offline Sales System Integration Reveals Retail Inventory Synchronization Bottlenecks

2026-10-01T02:01:21+00:00

General Background Modern retail enterprises increasingly adopt integrated digital platforms to manage massive daily transactions and maintain operational consistency. Specific Background PT Indomarco Prismatama operates simultaneous digital application and physical point-of-sale channels, yet faces recurring inventory discrepancies between virtual records and physical stock. Knowledge Gap While prior literature evaluates retail inventory software independently, few studies examine the operational synchronization bottlenecks merging digital applications with conventional physical store databases. Aims This research examines the implementation and data integration of dual-channel commercial recording frameworks, identifying the systemic constraints causing stock variances. Results Qualitative descriptive analysis reveals that although physical point-of-sale systems operate efficiently in real-time, cross-channel synchronization experiences delays due to network disruptions, human error in return processing, absent automated control alerts, and complex multi-channel coordination during peak hours. Novelty This study maps the exact operational friction points where concurrent e-commerce and physical store transactions overlap, causing physical stock shortages. Implications Retailers must prioritize network infrastructure upgrades, implement automatic stock reservation mechanisms, tighten standard operating procedures, and deploy automated inventory alerts to ensure cross-channel data consistency.

Highlights:

• Simultaneous physical transaction frameworks frequently encounter data mismatches from network delays.

• Manual processing regarding damaged goods contributes heavily toward unrecorded stock shortages.

• Automatic item reservation mechanisms prevent dual purchasing during peak operational hours.

Keywords: Accounting Information System, Digital Transaction, Stock Discrepancy, Internal Control, Point Of Sale

Public Transparency Organizational Culture And Official Religiosity Predict Village Financial Performance

2026-10-01T02:59:15+00:00

General Background The delegation of administrative authority requires local rural governments to manage resources and public funds responsibly. Specific Background Open governance, strong workplace norms, and individual moral values theoretically minimize agency conflicts and prevent mismanagement within rural administrations. Knowledge Gap Previous empirical studies present inconsistent findings regarding whether information openness, institutional habits, and individual morality directly dictate rural fiscal outcomes without additional moderating variables. Aims This study examines how public transparency, organizational culture, and the religiosity of village officials determine the financial performance of rural governments in Beji District. Results Based on multiple linear regression analysis of 100 purposively sampled village officials, public transparency, organizational culture, and official religiosity positively and significantly drive local financial performance. Novelty This research integrates external informational openness, internal institutional norms, and individual moral beliefs into a single comprehensive predictive model for rural fiscal governance. Implications Rural policymakers must actively institutionalize open data access, foster collaborative workplace routines, and promote ethical religious values to secure accountable and responsible budgetary management.

Highlights:

• Open civic data access significantly drives local budgetary accountability.

• Collaborative institutional norms positively dictate rural fiscal management outcomes.

• Individual moral beliefs secure responsible resource allocation among administrators.

Keywords: Public Transparency, Organizational Culture, Official Religiosity, Financial Performance, Village Government

Inspection Authority Delegation And Internal Control Predict Village Financial Performance

2026-10-01T02:49:22+00:00

General Background Local rural administrations manage substantial public funds requiring transparent and accountable governance frameworks. Specific Background Current regulatory developments, including rural cooperative budget reallocation programs, demand stringent supervision, clear task distributions, and robust monitoring mechanisms. Knowledge Gap Existing literature presents inconsistent findings regarding administrative delegation and rarely integrates these oversight variables within the context of recent budgetary reallocation policies. Aims This research examines how inspection routines, delegation of authority, and internal control systems determine the fiscal outcomes of local rural governments in Beji District. Results Based on quantitative analysis of 100 purposively sampled local apparatus, findings indicate that inspection routines, authority delegation, and internal control positively and significantly predict administrative fiscal outcomes. Notably, routine inspections exhibit the most dominant predictive strength among the evaluated factors. Novelty This study uniquely models these three administrative parameters simultaneously during the transitional implementation of mandatory cooperative fund reallocation programs. Implications Rural policymakers must prioritize routine compliance audits, clear organizational responsibilities, and systematic risk monitoring to secure transparent budgetary execution and prevent fund misappropriation.

Highlights:

• Routine administrative audits significantly secure public budget management transparency.

• Clear task distribution among rural apparatus positively shapes accountability.

• Systematic risk monitoring frameworks prevent misappropriation during policy transitions.

Keywords: Rural Governance, Fiscal Transparency, Administrative Auditing, Organizational Accountability, Public Fund Management

Taxpayer Awareness, System Utilization, and Knowledge Predict Tax Compliance

2026-10-01T02:27:42+00:00

General Background Optimizing state revenue requires strict citizen compliance regarding calculation and reporting obligations. Specific Background Micro, small, and medium enterprises frequently exhibit low regulatory adherence due to limited understanding and readiness for modernized digital administration. Knowledge Gap Limited empirical research examines how socialization programs moderate the connection between internal awareness, procedural knowledge, Core Tax adoption, and regulatory adherence. Aims This study investigates how taxpayer awareness, Core Tax utilization, and tax knowledge predict compliance, evaluating tax socialization as a moderating variable among Krupuk micro-enterprises in Sidoarjo Regency. Results Structural Equation Modeling on 56 registered respondents reveals that awareness, system utilization, and knowledge significantly drive compliance. Furthermore, socialization strengthens the effects of awareness and knowledge but fails to moderate Core Tax utilization. Novelty This research demonstrates that while general socialization reinforces internal consciousness, it cannot independently bridge the technical competency barriers required for digital platform adoption. Implications Authorities must redesign outreach strategies to emphasize hands-on technical training, ensuring enterprise operators acquire practical skills for digital reporting.

Highlights:

• Internal taxpayer awareness significantly dictates administrative reporting consistency among rural micro-enterprises.

• Practical understanding regarding tax regulations directly correlates with higher regulatory adherence.

• Tax socialization campaigns fail to bridge the technical competency gap required for digital system utilization.

Keywords: Taxpayer Awareness, Core Tax Utilization, Tax Knowledge, Tax Compliance, Tax Socialization

Challenges of Managing Organizational Change and Ways to Address them for a Sample of Employees of the Iraqi Ministry of Education

2026-08-04T02:36:07+00:00

General Background: Government institutions increasingly undertake structural and administrative reforms to improve performance and service quality, but implementation is often constrained by administrative, human, financial, and situational barriers. Specific Background: The Iraqi Ministry of Education operates through multiple administrative levels and extensive human resources, making adaptation to digital, organizational, and knowledge-based transformations complex. Knowledge Gap: Limited empirical evidence identifies the main difficulties experienced by ministry employees during the implementation of institutional reforms in the Iraqi public education sector. Aims: This study identifies the key barriers encountered by employees at the Iraqi Ministry of Education headquarters and proposes practical measures to address them. Results: A descriptive analytical design was applied to questionnaire responses from 195 employees. The instrument included four dimensions: administrative and organizational, human and professional, financial, and situational barriers. Data were analyzed using SPSS 28 and Microsoft Excel. Situational barriers ranked highest, with reliance on traditional methods during crises (mean = 3.82). Human and professional barriers followed, particularly inadequate professional competencies for reform management (mean = 3.80). Novelty: The study provides a four-dimensional employee-based diagnosis of reform implementation at the headquarters of a major Iraqi public institution. Implications: Effective reform implementation requires crisis-responsive procedures, continuous professional development, transparent communication, employee participation, fair committee formation, and flexible institutional planning.

Highlights:

Traditional crisis procedures received the highest item rating at 3.82.
Professional competency shortages ranked second, with a mean of 3.80.
Recommended actions prioritize communication, training, participation, fairness, and implementation flexibility.

Keywords: Organizational, Management, Administrative , Education, Employee Resistance.

Victim Death Does Not Extinguish Heirs’ Restitution Rights

2026-09-23T04:15:11+00:00

General Background: Criminal restitution constitutes a legal mechanism for compensating victims and their families for losses arising from criminal offenses. Specific Background: Indonesian District Court Decision Number 185/Pid.B/2025/PN Jbg rejected an IDR 260,366,500 restitution claim submitted by a deceased victim’s heir through the Witness and Victim Protection Agency and public prosecutor. Knowledge Gap: Existing studies have insufficiently examined the distinction between heirs’ legal standing and criminal offense eligibility for restitution following victim death. Aims: This study examines heirs’ restitution rights and judicial interpretation of restitution requirements under Indonesian victim protection legislation. Employing normative juridical research, the study applies statutory, case, and conceptual approaches through qualitative legal analysis. Results: Article 7A(6) of Law Number 31 of 2014 recognizes heirs as restitution recipients when victims die. However, the court rejected the claim based on restrictive interpretations of eligible criminal offenses under Supreme Court Regulation Number 1 of 2022 and circumstances seriously endangering life. The findings establish that heirs’ legal standing and restitution eligibility constitute distinct legal questions requiring separate judicial assessment. Law Number 3 of 2026 subsequently reaffirmed heirs’ entitlement without retroactively governing the examined decision. Novelty: This study distinguishes statutory recognition of heirs from judicial determination of qualifying offenses within a single criminal restitution dispute. Implications: Judicial assessments should reconcile statutory eligibility requirements with victim protection, legal certainty, and substantive justice while recognizing that victim death does not extinguish heirs’ restitution rights.

Highlights:

Article 7A(6) of Law Number 31 of 2014 explicitly recognizes eligible family members as compensation recipients.
Restrictive interpretations of qualifying offenses and life-threatening circumstances formed the basis for denying the IDR 260,366,500 claim.
Legal standing and statutory eligibility require separate assessments, while the 2026 legislation reinforces continuity of victim protection.

Keywords: Criminal Restitution, Heirs’ Rights, Victim Protection, Judicial Interpretation, Indonesian Criminal Law

Material Flow Cost Accounting and Its Role in Reducing Loss Costs and Enhancing Product Sustainability: An Applied Study in the General Company for Textile and Leather Industries

2026-09-19T17:27:51+00:00

General Background: Industrial manufacturing processes are increasingly challenged by rising resource costs and growing environmental responsibilities regarding production waste. Specific Background: Conventional costing systems typically fail to trace or report the specific costs of losses and non-productive material flows separately. Knowledge Gap: Detailed empirical tracking of physical material and energy movements across successive textile manufacturing stages using standardized environmental accounting remains limited. Aims: This study aims to examine the role of Material Flow Cost Accounting (MFCA) in identifying loss costs and evaluating potential reductions to promote product sustainability. Results: Applying MFCA revealed that loss costs accounted for 3.288% of total material flow costs, and proposed improvements could reduce these costs by approximately 15.46% while raising the material utilization rate to 91.791%. Novelty: The implementation of ISO 14051-based material flow cost accounting within the Iraqi textile and leather sector specifically pinpoints distinct production stage loss burdens. Implications: Manufacturing enterprises can systematically optimize resource efficiency and strengthen both economic and environmental dimensions of product sustainability by utilizing MFCA data.

Key Findings Highlights

Material flow cost accounting successfully isolates and reveals non-productive loss costs separately from conforming finished product expenses.

Cutting and knitting stages exhibit significant loss quantities and financial burdens that require prioritized corrective action.

Proposed optimization measures can significantly decrease overall loss rates while simultaneously improving material utilization efficiency and economic performance.

Keywords Material Flow Cost Accounting, Loss Costs, Negative Product, Cost Reduction, Product Sustainability

The Role of Artificial Intelligence Technologies in Enhancing the Quality and Level of Disclosure of Accounting Information in Light of the Requirements of ISO 37001:2025

2026-09-14T15:05:36+00:00

General Background: Rapid technological advancements are continuously transforming the accounting and financial environment through enhanced data processing and analytical capabilities. Specific Background: As business operations grow increasingly complex, conventional control mechanisms often struggle to manage unusual transactions and mitigate operational risks effectively. Knowledge Gap: Limited research comprehensively examines how artificial intelligence technologies integrate with modern anti-bribery frameworks to improve financial reporting outcomes. Aims: This study examines the role of artificial intelligence technologies in improving accounting information quality and disclosure under the requirements of ISO 37001:2025. Results: Findings indicate significant positive correlations and direct effects between artificial intelligence technologies and both accounting information quality and disclosure, with ISO 37001:2025 requirements serving as a partial mediator for information quality and a full mediator for disclosure. Novelty: The integration of artificial intelligence analytics with the specific compliance and anti-bribery standards of ISO 37001:2025 within the banking sector provides a unique regulatory and technological synergy. Implications: Financial institutions can substantially strengthen their internal controls, transparency, and reporting reliability by systematically deploying intelligent applications alongside anti-bribery management systems.

Key Findings Highlights

Artificial intelligence technologies demonstrate statistically significant positive effects on both accounting information quality and financial disclosure standards.

The requirements of ISO 37001:2025 act as a critical mediator, providing full mediation for accounting disclosure and partial mediation for information quality.

Expanding intelligent applications into predictive analytics and continuous transaction monitoring significantly reinforces organizational control and transparency.

Keywords Artificial Intelligence Technologies, Accounting Information Quality, Accounting Disclosure, ISO 37001:2025, Anti-Bribery

Whistleblowing System Emerges as Significant Predictor of Village Fund Fraud Prevention

2026-09-14T08:06:33+00:00

General Background: Transparent village fund management is essential to prevent fraud. Specific Background: Fraud prevention may relate to internal control, apparatus competence, individual morality, and whistleblowing mechanisms. Knowledge Gap: Previous findings are inconsistent, and these determinants have rarely been examined simultaneously. Aims: This study examines these four factors using 64 purposively selected respondents and PLS-SEM with SmartPLS. Results: Internal control, apparatus competence, and individual morality were not significant, whereas the Whistleblowing System had a positive and significant relationship with fraud prevention (β = 0.43, t = 3.35, p < 0.01). Novelty: The study integrates four determinants in one PLS-SEM model. Implications: Strengthening reporting channels, follow-up mechanisms, and whistleblower protection can support fraud prevention in village fund management.

Highlights:

Reporting mechanisms recorded the strongest coefficient at 0.43 with statistical significance.
Internal controls showed β = 0.17 but did not reach the required significance threshold.
Staff capability and personal morality were also unsupported as individual determinants.

Keywords: Civil Service Competence, Individual Morality, Whistleblowing System, Village Funds.

Accrual Accounting Reveals Material Gaps Between Operations and Budget Reports

2026-08-09T12:35:01+00:00

General Background: Indonesian regional governments are required to apply accrual-based accounting, with the Statement of Operations (LO) providing information that should be meaningfully reconciled with the cash-based Budget Realization Report (LRA). Specific Background: The 2025 Brebes Regency Regional Government Budget provides a basis for examining consistency between accrual recognition and cash realization. Knowledge Gap: Previous research identified inter-report inconsistencies at a single work unit, leaving broader regency-level patterns insufficiently examined. Aims: This qualitative descriptive study analyzes 2024–2025 LO components and compares 2025 LO figures with LRA realization to assess transparency and accountability. Results: LO revenue increased 14.76%, operational and transfer expenses increased 9.68%, and the LO surplus reached Rp365.86 billion, up 78.44% from 2024. Key differences include Rp418.40 billion in LO grant revenue with zero LRA realization and financial-assistance expense of Rp195.60 billion in LO versus Rp505.93 billion in LRA. Novelty: The study extends anomaly analysis to the regency level through explicit LO–LRA comparison. Implications: Comprehensive Notes to Financial Statements and explicit reconciliation are needed to clarify differences and strengthen transparent, accountable regional financial reporting.

Highlights:

Aggregate revenue increased 14.76%, while combined operational and transfer expenses rose 9.68%.
Grant income of Rp418.40 billion had zero cash realization, while financial assistance showed a Rp310.33 billion cross-statement difference.
The 2025 surplus reached Rp365.86 billion, but fuller notes and reconciliation remain necessary for transparency and accountability.

Keyword: Accrual-Based Accounting, Regional Government Budget, Statement of Operations, Transparency, Accountability

The Role of Fair Value Measurement and Accounting Disclosure of Toxic Assets in Reducing the Risks of Financial Misrepresentation

2026-09-07T19:28:46+00:00

General Background High-risk financial assets presented at values detached from economic recoverability compromise financial statement reliability. Specific Background Illiquid accounts receivable lacking active markets rely heavily on valuation estimates and management assumptions. Knowledge Gap However, the combined role of fair value adjustments and structured risk disclosures in mitigating financial misrepresentation remains insufficiently quantified in industrial sector contexts. Aims This study evaluates how integrating fair value measurement with comprehensive disclosure reduces financial misrepresentation risks. Results Empirical analysis of Al-Mansour Company data (2022–2024) demonstrates that a ten percent collection risk discount reduces 2024 pre-tax surplus by 31.2%, while revealing a 75% gap in credit risk disclosures. Novelty An analytical sensitivity model paired with an IFRS-aligned disclosure index is established for high-risk receivables. Implications Combining realistic risk-adjusted valuation with detailed debt aging disclosures prevents misleading financial presentations and enhances reporting transparency.

Key Findings Highlights

Applying risk-adjusted fair value discounts significantly alters receivables values and reported operating surpluses.

Evaluating financial reporting reveals a seventy-five percent disclosure gap regarding high-risk asset collection profiles.

Integrating granular risk disclosures with valuation models mitigates incomplete financial position representation.

Keywords: Fair Value Measurement, Toxic Assets, Accounting Disclosure, Financial Misrepresentation, Accounts Receivable

Cybercrime Enforcement Remains Fragmented Despite Electronic Evidence Reform

2026-09-04T07:47:41+00:00

General Background: Blockchain is reshaping transactions, ownership, verification, smart contracts, tokenization, and digital governance, creating new legal objects for Islamic jurisprudence. Specific Background: In fiqh al-nawāzil, these configurations cannot be reduced to cryptocurrencies or product compliance because their legal character varies with architecture, functions, actors, rights, risks, and governance. Knowledge Gap: Empirical integration between technical knowledge, taḥqīq al-manāṭ, uṣūl al-fiqh, maqāṣid, and maʾālāt remains limited, while product-centred reasoning does not adequately capture system-level characteristics and consequences. Aims: This qualitative multi-stakeholder case study examined 28 informants through semi-structured interviews, legal vignettes, and documentary analysis to reconstruct digital ijtihād for blockchain-related cases. Results: Blockchain emerged as a multidimensional nāzilah; taḥqīq al-manāṭ functioned as the epistemic gateway linking technical reality with legal characterization; reasoning shifted from product-based classification toward systemic analysis and from post-hoc maqāṣid justification toward maṣlaḥah–mafsadah and consequence assessment. Novelty: The study formulates Substantive Digital Fiqh al-Nawāzil Theory, sequencing taṣawwur al-nāzilah, taḥqīq al-manāṭ, taʿyīn al-waṣf al-muʾaṡṡir, uṣūlī reasoning, maqāṣid evaluation, maṣlaḥah–mafsadah, maʾālāt al-afʿāl, legal determination, Shariah governance, and continuous monitoring. Implications: The framework supports object-first, systemic, consequence-sensitive, and multidisciplinary digital ijtihād for fatwas and Shariah governance.

Highlights:

Taḥqīq al-manāṭ linked technical facts with istinbāṭ al-ḥukm.
Systemic legal characterization replaced product-centred classification across complex cases.
Maqāṣid shifted toward maṣlaḥah–mafsadah and consequence-sensitive evaluation.

Keywords: Artificial Intelligence, Criminal Law, Cybercrime, Digital Evidence, Law Enforcement

Gender Identity Regulation and Legal Certainty in Indonesia

2026-08-31T02:58:00+00:00

General Background: Gender identity within LGBT communities raises legal questions concerning constitutional guarantees, human rights, population administration, criminal law, and territorially applicable regulations. Specific Background: Indonesian positive law regulates these issues through multiple national and subnational regimes, while recognition of gender changes remains connected to population administration and court determination. Knowledge Gap: Previous studies commonly examine human rights, transgender legal status, criminal policy, or regional regulation separately, leaving limited integrated analysis of identity, administrative status, punishable acts, and territorial scope. Aims: This study analyzes the legal position of gender identity and the consequences arising from specific acts using normative legal research with statutory, conceptual, and case approaches. Results: Indonesian law does not criminalize LGBT identity as such; criminal consequences arise only when specific conduct satisfies applicable statutory elements. Gender-status recognition depends on population administration and court determination, while regional and special regulations operate only within their respective territorial and institutional competence. Novelty: The study integrates legal certainty, rule-of-law requirements, the principle of legality, and human-rights protection into a single framework that distinguishes personal identity, administrative status, and sanctionable conduct. Implications: Clearer differentiation among these categories can support predictable legal consequences, proportional application of sanctions, rights protection, and more consistent guidance for policymakers and legal authorities.

Highlights:

Gender-status changes remain tied to population administration and court determinations.
Criminal consequences arise only when statutory elements of specific acts are satisfied.
Regional and special regulations operate within their respective territorial competence.

Keywords: Gender Identity, Human Rights, Indonesian Law, Law Enforcement, LGBT