correspondence to : nilta.alfi16198@student.unsika.ac.id received: oct, 22, 2020 revised: dec, 12, 2020 accepted: dec, 17, 2020 jurnal akuntansi, manajemen dan ekonomi vol.22, no. 4, pp. 26 29 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction in a company, employee competency improvement is something that is continuously conduct to develop employees' abilities. competence refers to the characteristics that underlie behavior that describe the motives, personal characteristics, self-concept, values, knowledge or skills bring by a person who is superior in the workplace (spencer and spencer, 1993). during the current pandemic, it is very difficult for employees to conduct training because of health protocols that require all activities to do from home and must maintain a distance. this limitation has triggered the emergence of virtual training or online training, even though doing work from home increasing work competence can still be done. competency improvement through virtual training is used as a solution for employees to develop their potential skills. the company has goals and objectives for the company to be able to obtain the maximum profit they want to achieve even though there are big challenges that must be faced, but with the challenges of the current pandemic the company is trying to continue to develop its human resources to achieve the company's targets. the definition of training as defined by pramudyo (2007: 16) is a learning process designed to change the performance of people in doing their jobs. what is meant in this case is that there are four things that must be considered, namely the training process, performance, training participants, and work. it must be understood that the training process refers to a change that must occur in the training participants. in the training process, poor performance is corrected in such a way as to get better. so that a set of tasks that have been waiting for can be done properly by workers who have attended the training. since the pandemic the employess should carry out their work and doing form home. the problem came up when company can not conduct the training while the company need to increase their performance and the employees need to improve their abilities, update their knowledge, update their information. it should be done in the interest and to achieve company’s goal. the restrictions because of pandemic that makes vritual training become a solution for the virtual training on competency improvement bank mandiri employees in covid pandemic 19 riza azizy1, dedi rianto rahadi2 1,2,3,4department of management, faculty of economic and business, president university, indonesia abstract training is a company strategy to improve employee performance competencies. however, in the current covid 19 pandemic, companies cannot conduct training directly because of the government's rules to cdo work and study activities from home. during the covid 19 pandemic, companies tried to develop employee performance skills, virtual training is one of the methods used to improve employee performance during the covid-19 pandemic. bank mandiri use virtual training solutions to provide training for employees to maintain employee performance so that the company's goals could be achieved even in difficult circumstances such as the current covid 19 pandemic. the study aims to determine whether virtual training has an effect on improving the performance of bank mandiri employees by using qualitative research to describe facts about an incident at bank mandiri and a situation that occurred during the covid-19 pandemic. data was collected using a survey method by distributing questionnaires to employee respondents. the results showed that the virtual training conducted by bank mandiri had a very good effect on improving the performance of bank mandiri employees. keywords virtual training, employee performance, pandemic covid 19 mailto:nilta.alfi16198@student.unsika.ac.id jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 26 29 company to still be able to conduct training from home for the employees, so that the employees still can make improvement for their performance. definition of virtual based on virtual communication theory or so-called hyperpersonal communication (walter: 1996: 5), namely communication with internet media which according to society social is more attractive when compared to direct communication. with the presence of virtual communication that is developing in human life, it is possible to produce a new environment which he calls a "global village". this can be interpreted, "when the world shrinks the world, the involvement of people in the lives of others will be higher". virtual communication itself is part of the innovations that continue to be developed in new media (new media). the use of old media is felt to have many shortcomings so that humans innovate to make new media that can be used without any distance and time restrictions and at the same time can be an ineractive medium. through virtual communication, users can provide feedback on what they see. definition of training companies have an obligation to plan a training program for employees to improve their abilities and competencies needed in the workplace (jie and roger, 2006). training can be provided through different methods such as coaching and monitoring, peer cooperation and participation by subordinates. training programs not only develop employees but also help organizations to make best use of them and support their competitive advantage. sims (2006) emphasizes that training focuses on the current job while development focuses on employee preparation for the future of the company. definition of performance the results of a process that refer to and measured over a certain period of time based on the provisions or agreements that have been predetermined. according to muhammad zainur roziqin (2010:41) performance is as the whole process works from individuals whose results can be used the foundation to whether the individual's work is good or otherwise. from some of the above understandings can be concluded that the performance is the result of quality work and the quantity achieved by the employee as a whole which can be used as a the foundation to determine whether the individual work either or instead. indicators for measuring the performance of mangkunegara (2011:75): leather work, quantity work, productivity, initiatives, cooperation, responsibility. the covid pandemic 19 the outbreak of a new pneumonia that started in wuhan, hubei province, which then spread widely and rapidly to more than 190 countries and territories. this outbreak is named coronavirus disease 2019 (covid19) which is caused by severe acute respiratory syndrome coronavirus-2 (sarscov-19). the most common symptoms of covid-19 are fever, fatigue, and dry cough. some patients may experience aches and pains, nasal congestion, colds, sore throats or diarrhea. these symptoms are mild and occur gradually. however, some people who are infected but do not show any symptoms and do not feel unwell. most people (about 80%) recover from the disease without the need for special treatment. about 1 out of every 6 people who get covid-19 are seriously ill and have difficulty breathing. older people, and those with medical problems such as high blood pressure, heart problems or diabetes, are more likely to get a serious illness. people with fever, cough and breathing difficulties should get medical attention. according to the who, the covid19 coronavirus spreads people through small droplets from the nose or mouth that spread when a person coughs or exhales. these droplets then fall onto objects touched by others. the person then touches the eyes, nose, or mouth. based on current studies, covid-19 spread through free air has not been found. methods this research is a qualitative survey research. sources of data from this study are bank mandiri employees who have conducted virtual training during the pandemic. the characteristics of the companies that are the subject are banking companies that continue to carry out work activities with a shift and work from home system. data were collected in august 2020 and processed in september 2020. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 26 29 the data collection technique used a questionnaire technique where the respondents were 38 bank mandiri employees from various regions throughout indonesia who participated in virtual training during the pandemic period held by bank mandiri. research instrument this study uses a questionnaire instrument for virtual training variables as a training and development medium and employee performance . determine the effect of virtual training on employee performance during the covid 19 period, it was carried out using a likert scale. likert scale is a scale used to measure attitudes, opinions, perceptions of a person or group of people about social phenomena. each instrument answer item on the likert scale has a gradient from very positive to very negative. table 1. likert scale sbs sb b s b bs 6 5 4 3 2 1 collecting data method obtaining research results requires data and information that can support research. the researcher carried out several data collection steps, namely (1) observation; (2) interview; (3) questionnaires; (4)and literature. population and research sample the population in this study were employees of bank mandiri throughout indonesia who conducted a virtual expertise training for industrial business fast moving consumer goods which was held on 5-6 august 2020 with a total of 38 employees. referring to 38 people who meet the requirements, the questionnaires distributed are 38 questionnaires. result and discussion the purpose of this study is to assess whether the implementation of virtual training in the covid-19 pandemic period can be implemented properly and to know the advantages and disadvantages of the implementation of virtual training to improve the performance of bank mandiri employees analysis of the application of virtual training in improving the competence of bank mandiri employees in order to make it easier to analyze, the respondent's responses to virtual training were presented by researchers in the form of a table as a whole as follows: table 2. analysis of respondents' responses regarding the implementation of virtual training in improving bank mandiri employee performance: table 2. average result of quesionnare achievement of training objectives 5.7 very good benefits of training for smooth assignments 5.7 very good additional knowledge acquired 5.7 very good training method 5.5 very good content of the material / module 5,6 very good duration of training 5,4 very good internet network 5.1 very good completeness of training 5.3 very good presentation aids facilities 5.3 very good committee service 5.7 very good information and services during training 5.7 very good time management 5.7 very good total 66.3 average 5,53 very good source: pt praba cipta daya so, seen from table 2 it is known that virtual training as a training medium in a pandemic period carried out by bank mandiri for its employees can be said to be very good, because the average of all statements is 5.7 in the interval 5.1 5, 9 = very good jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 26 29 discussion permatasari and hardiyan conclude that application of e-learning make a positive effect to employees performance (2018:07). the implementation of virtual training to increase competency resulting a very good work. the implementation of virtual training have a very good relationship to improve employees competency. virtual training program can conduct in effective and effisien ways so that the company’s goal can achieved even in a pandemic covid 19 situation. “it’s a good move to conduct a training program using virtual learning method in pandemic covid 19 situation” choiriyah and riyanto (2020:2). conclusion overall, the results obtained are that virtual training as a solution during the covid 19 pandemic has doing well. this can be proven from the results of the questionnaire data processing, which shows that the basis for consideration of the application of virtual training all produces very good criteria. evidenced by the results of the calculation of the analysis of respondents' statements regarding virtual training. respondents' answers to each statement submitted as a whole produce very good criteria, namely with an average of 5.5 and it means that the qualifications on which the application of virtual training is very good in accordance with its value which is in the interval 5.1-5.9. virtual training design can adapt in pandemic covid 19 situation where all the activity have to be done from home. it become a solution for the company to conduct a training and supporting the prevention of covid 19 at the same time. so that the company still can create a superior and competitive employee. references anwar prabu mangkunegara, (2011). manajemen sumber daya manusia perusahaan, remaja rosdakarya, bandung choiriyah, siti and riyanto, setyo, desain pelatihan pada masa pandemi covid19 (studi kasus constructive learning pada penyampaian pembelajaran virtual learning) vol.2, no.8, universitas mercubuana:2020. devito, joseph , a. 1997. human communication. new york: harper collinc colege publisher. daryanto. 2010. media pembelajaran peranannya sangat penting dalam mencapai tujuan pembelajaran. yogyakarta: gava media, pp.168. hasan, iqbal. 2002. metodelogi penelitian dan aplikasinya. jakarta: ghallia indonesia. muhamad zainur roziqin, (2010). kepuasan kerja, malang: averroes press mangkuprawira, safri. 2007. manajemen sumber daya manusia. bogor: cetakan pertama, ghalia indonesia miles, matthew & huberman, a. michael. 1992. analisis data kualitatif: buku sumber tantang metode-metode baru. jakarta:universitas indonesia press, pp.153. noe, raymond a. 2010. employe training and development fifth edition. new york: mcgraw hill, pp.55 permata sari, indah and hardiyan, pengaruh e-learning sebagai media pelatihan dan pengembangan terhadap kinerja karywan bca kcu tangerang vol.07, no.01, sisfokom:2018 sinambela, poltak, lijan. 2012. kinerja pegawai. yogyakarta: geraha ilmu, pp.6. stanley j. baran, pengantar komunikasi massa melek media dan budaya (jakarta: erlangga, 2008), hlm.386 correspondence to mahardhika1988@yahoo.com received: 5 september 2019 accepted:17 november 2019 published: 16 december 2019 jurnal akuntansi, manajemen dan ekonomi vol.21, no.3, pp. 70-74 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction financial reforms have taken place especially in government institutions with the issuance of several legal foundations such as regulations on autonomous regions, the introduction of technological devices to accelerate organizational processes, and the introduction and obligation to implement organizational systems based on good governance to government institutions that always refer to attitudes , ethics, practice and community values (syakhroza, 2003). as a result of public sector financial reforms, demands for accountability for public institutions have strengthened (mardiasmo, 2006) accountability should be applicable to all regions but in reality many practice of frauds are still found and this is still a domestic problem. in recent years there has been an increasing trend regarding financial cases both within companies and in public sector organizations. the practice of frauds in recent years shows an increasing trend. data from the investigation of corruption cases in the last five years in 2014 were 56 corruption cases investigated by the kpk. then it rose in 2015 to 57 cases, and in 2016 rose again to 99 cases. the unfolding of financial fraud in recent years cannot be separated from the services of a whistleblower. based on the association of certified fraud examiner (acfe) report, about half of fraud cases can be revealed because of whistleblower reports, while the internal audit role can only reveal a quarter, the rest can be revealed by internal control processes and accidentally tjahjono (2013). empirical research proved that one of the factors that determines whistleblowing behavior is the level of one's moral reasoning (near and miceli, 1995; liyanarachchi and newdick, 2009; gundlach, et al., 2003). however, different results were found by akhyaruddin and asnawi (2017); satriani and suwardi (2018) which found that the level of moral reasoning does not affect one's intention to do whistleblowing. the difference in results from studies conducted in indonesia and in western countries motivates the writer to incorporate the culture of indonesian society into the existing model. collectivism is a culture that is inherent in eastern societies, including indonesia (park, et al., 2005). the culture of collectivism is the opposite of individualism in western societies. cultural differences in collectivism and individualism are assumed to be related to geographical, economic, and historical conditions that affect the patterns of interaction of the people. the more complex the society, the more difficult it is to have deep interactions and the less demands on group compliance, on the other hand, the simpler a society is, the closer its kinship is (park et al., 2005). the impact of collectivism in relationship between moral reasoning and whistleblowing arya samudra mahardhika1, anton prasetyo2 1accounting department, stie putra bangsa kebumen, indonesia 2management department, stie putra bangsa kebumen, indonesia abstract the purpose of this study was to analyze the impact of collectivism culture on the relationship between moral reasoning and whistleblowing in government organizations in kebumen district. the sample in this study were 80 treasurers and village financial staff in kebumen regency who met the established criteria. this study uses structural equation modeling (sem) with warppls software version 6. the results of hypothesis testing in this study indicate that a high level of moral reasoning has been proven empirically to increase one's tendency to do whistleblowing, however, collectivism has been proven to empirically reduce whistleblowing tendencies; the latest finding is that collectivism has proven to weaken the relations of moral reasoning and whistleblowing. keywords collectivism; moral reasoning; whistleblowing jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 70-74 research conducted by xin (2014) in asian societies found that collectivism culture results in a closed organizational culture. behavior that will damage the image and interests of the organization is considered as betrayal. the whistleblower is deemed unworthy of trust and disloyal. so that it will cause a lot of disagreement for the reporting party, the organization and colleagues. based on the description that has been stated, this study aims to reexamine the effect of moral reasoning on whistleblowing; and adding cultural aspects, namely collectivism as determinants and moderators. whistleblowing whistleblowing is a disclosure by members of an organization of illegal, immoral, or illegal practices to people or parties outside the organization who might be able to act (near and miceli, 1985). whistleblowing can be done by every layer in the organization, both by top management and by employees. disclosure of information made by whistleblowers is not always an illegal fraud or error committed by an organization, but mistakes that are not illegal but are seen as immoral or illegal by employees. shawver and shawver (2018) stated that whistleblowing is morally permissible if the company suffers serious harm to both employees and the public. the role of a whistleblower is indispensable in the disclosure of a fraud, because the whistleblower is part of the organization's internal and most likely knows the occurrence of a fraud in the organization (akhyaruddin and asnawi, 2017). being a whistleblower seems to be a dilemma for members of the organization, on the one hand they want the organization to run properly, but on the other hand the consequences that might be received such as reprimands, threats to themselves or family, and other social sanctions can discourage them. protection efforts undertaken by the indonesian government in protecting whistleblowers are contained in uu no. 13 year tahun 2006 which is then made into uu no. 31 tahun 2014 concerning protection of witnesses and victims. moral reasoning and whistleblowing moral can be interpreted as a characteristic of a person or group that becomes a guide in behaving in accordance with the values that apply in the social group concerned. etymologically moral comes from the latin mores which means the procedure for living, customs and habits. in other words morals are rules about human actions and attitudes that are good and right. according to santrock (2011), moral development involves thoughts, feelings, and behaviors regarding rules and discoveries about what people should do in their interactions with others. desmita (2005) argued that morals are closely related to interpersonal relations but have long been the subject of discussion in philosophy. one of the important factors that influence an individual's decision to do whistleblowing is moral behavior (akhyaruddin and asnawi ,2017). the higher the level of moral reasoning someone, their tendency to do whistleblowing is higher when faced with wrongdoing done by the organization. liyanarachchi & newdick (2008) and shewver and shewver (2018) show that moral reasoning has a positive impact on an individual's tendency to whistleblowing. collectivism and whistleblowing collectivism is one of the cultures inherent in eastern society, including indonesian society (park et al., 2005). according to englehart (2000), collectivism is a set of values that includes adherence to superiors, loyalty to groups, and fusion of individual identity into group identity. according to collectivism culture, organizational interests are considered more important than the interests of employees, so they tend to be more obedient to the demands and needs of the organization, because they want to avoid conflict (park et al., 2005); threatening harmony with other employees or with the organization (bochner, 1994). we suspect that the culture of collectivism in indonesia will reduce one's intention to do whistleblowing even though he has high moral reasoning, because he prefers to avoid conflicts with fellow colleagues or organizations. methods this research is a causal quantitative with survey methode. the population of this study were all employees of government organizations in kebumen regency. the sample used in this study is the treasurer and financial staff in each village in kebumen regency. of the 150 questionnaires distributed, 80 can be used for analysis. the data in this study are primary data obtained directly from respondents through the dissemination of instruments. the instrument jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 70-74 used in this study was a likert scale questionnaire. the questionnaire compiled is an adaptation of the instrument developed by liyanarachchi and newdick (2009), which is also used by akhyaruddin and asnawi (2017). the data collection technique is done by purposive sampling, with the criteria that employees have worked for at least one year with the consideration that they are already familiar with their work environment and coworkers. the response rate of this study was 53.3%. according to gudono and mardiyah (2000), the response rate for the questionnaire survey in indonesia is generally below 20%, so it can be said that the response rate in this study is quite high. the hypothesis in this study was tested using structural equation modeling (sem) with an alternative method of partial least square (pls) using software warppls 6.0. with the consideration that sem-pls is able to analyze variables that cannot be measured directly (unobserved variables) and take into account measurement errors (sholihin and ratmono, 2013). figure 1. research model results and discussion convergent validity convergent validity indicates the extent to which a measure is positively correlated with the same alternative construct size (hair, et al., 2014). there are two criteria (sholihin and ratmono, 2013) to assess whether the measurement model meets the requirements of convergent validity for reflective constructs namely loading values> 0.70 with significant p (value <0.05); or the average variance extracted value (ave) ≥ 0.50. table 2 shows the loading, p-value, and ave values for each construct. it can be seen that indicators mr1, mr6, mr7, mr 8, mr9, c1, c2, c5. c6, c7, c8, c10 and c11 have been dropped from the model because the loading value is below 0.04. nevertheless, we still maintain indicators that have loading values between 0.04-0.07. the suggested procedure states that the decision to delete the indicator with a loading value between 0.04-0.07 is based on the impact of the decision to delete the indicator on ave and composite reliability (sholihin and ratmono, 2013). the indicator can be removed if it has an impact on increasing ave and composite reliability above its limit (sholihin & ratmono, 2013). table 1. convergent validity item loading pvalue ave moral reasoning mr2 (0.793) <0.001 0.645 mr3 (0.875) <0.001 mr4 (0.818) <0.001 mr5 (0.831) <0.001 mr10 (0.623) <0.001 mr11 (0.854) <0.001 whistleblowing wb1 (0.882) <0.001 0.663 wb2 (0.859) <0.001 wb3 (0.675) <0.001 wb4 (0.824) <0.001 collectivism c3 (0.763) <0.001 0.520 c4 (0.727) <0.001 c9 (0.669) <0.001 discriminant validity discriminant validity shows the extent to which the construct is completely different from other constructs based on empirical standards (hair, et al., 2014). the criteria used to assess whether the measurement model meets discriminant validity requirements is the average variance extracted (ave) square root value, which is a diagonal column and enclosed with brackets, must be higher than the correlation between latent variables in the same column (sholihin & ratmono, 2013). table 2. discriminant validity mr wb c c*mr mr (0.803) 0.295 -0.245 0.067 wb 0.295 (0.814) -0.155 -0.150 c -0.245 -0.155 (0.721) 0.317 c*mr 0.067 -0.150 0.317 (0.515) table 2 indicates that the discriminant validity requirements have been met. it can be seen that the ave square root value (diagonal moral reasoning whistleblowing collectivism jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 70-74 column) is higher than the correlation between latent variables in the same column internal consistency reliability internal consistency reliability tests are carried out to assess homogeneity between items that make up a construct (cooper and schindler, 2011). the criteria used to assess the reliability of internal consistency are composite reliability and cronbach's alpha values above 0.70 (sholihin and ratmono, 2013). table 3 indicates that all constructs in this study meet the requirements for internal consistency reliability, which is indicated by the composite reliability and cronbach's alpha values of each construct above 0.70. table 3. internal consistency reliability mr wb c c*mr composite reliability 0.915 0.886 0.764 0.832 cronbach's alpha 0.887 0.827 0.737 0.819 hypothesis test the hypothesis in this study was tested using sem-pls. there are 3 (three) hypotheses tested in this study. a hypothesis is supported if the p-value <0.05 (significant at the 5% level). table 4 below presents a summary of the results of testing this research hypothesis. table 4. hypothesis testing path coefficient pvalue result h1 mr -> wb 0.258 0.002 accepted h2 c -> wb -0.198 0.014 accepted h3 c*mr -0.165 0.034 accepted the results of hypothesis testing using sem-pls, proving that all three hypotheses in this study were accepted (p-value < 0.05). thus it can be concluded that: 1.) moral reasoning has a positive effect on an individual's tendency to whistleblowing; 2.) collectivism has a negative effect on an individual's tendency to whistleblowing; 3.) collectivism has a negative effect on the relationship between moral reasoning and the tendency of individuals to do whistleblowing conclusion based on the results of hypothesis testing, it is empirically proven that employees with high levels of moral reasoning tend to take whistleblowing actions when confronted with fraud, this is appropriate in supporting the research of near and miceli (1995); liyanarachchi and newdick (2009). however, the culture of collectivism inherent in indonesian society has been proven to empirically reduce employee intention to take action whistleblowing. the next finding is that empirically proven that someone with a high level of moral reasoning, but growing and living in a society with a high collectivism culture, will reduce their tendency to take action whistleblowing. this study provides findings that the culture of collectivism is empirically proven to weaken the relationship between moral reasoning and whistleblowing. the indirect impact of this research on local governments in developing policies needs to emphasize aspects of professionalism and idealism, because it is empirically proven that the high moral level of employees does not guarantee them to take action whistleblowing because of cultural influences. respondents from this study are village treasurers, so that the generalization of the results of this study still needs further research. references akhyaruddin, m. & asnawi, m. (2017). pengaruh moral reasoning dan ethical environment terhadap kecenderungan untuk melakukan whistleblowing. jurnal akuntansi & ekonomika, 7(1), 1-20 bochner, s. (1994). cross-cultural differences in the self concept-a test of hofstede’s individualism/ collectivism distinction. journal of cross-cultural psychology, 25(2), 273283. cooper, d.r. & schindler, p.s. (2011). business research method. (11thed.). new york: mcgraw hill international edition desmita. (2005). psikologi perkembangan. bandung: pt remaja rosdakarya englehart, n.a. (2000). right and culture in the asian values argument: the rise and fall of confucian ethics in singapore. human rights quarterly, 20(1), 548-568 hair, j. f. hult, g.t., ringle, c., & sarstedt, m. (2014). a primer on partial least squares structural equation modeling (pls-sem): sage publications liyanarachchi, g. & newdick, c. (2009). the impact of moral reasoning and retaliation on whistle-blowing: new zealand evidence. journal of business ethics, 89(1), 37-57 mardiasmo. (2006). perwujudan transparansi dan akuntabilitas publik melalui akuntansi sektor publik: suatu sarana menuju good governance. jurnal akuntansi pemerintah, 2(1),1-7. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 70-74 mardiyah, a.a. & gudono. (2000). pengaruh ketidakpastian lingkungan dan desentralisasi terhadap karakteristik sistem akuntansi manajemen. prosiding seminar, sna-simposium nasional akuntansi, vol. 3. jakarta: universitas indonesia near, j.p & miceli, m.p. (1985) organizational dissidence: the case of whistle-blowing. journal of business ethics, 4(1), 1-16 near, j.p. & miceli, m.p. (1995). effective whistleblowing. the academy of management review, 20(30), 679-683. park, h., rehg, m. t., & lee, d. (2005). the influence of confucian ethics and collectivism on whistleblowing intentions: a study of south korean public employees. journal of business ethics, 58(4), 387-403. santrock. (2011). life-span development: perkembangan masa-hidup. (edisi 13). jakarta: penerbit erlangga satriani, a. & suwardi, e. (2018) pengaruh penalaran moral, retialisasi dan relogiositas terhadap niat aparatur sipil negara melakukan whistleblowing. thesis, unpublished. universitas gadjah mada yogyakarta shawver, t.j. & shawver, t.a. (2018). the impact of moral reasoning on whistleblowing intention. professional responsibility and ethics in accounting, 21(1), 153-168 sholihin, m. & ratmono, d. (2013). analisis sempls dengan warppls 3.0 untuk hubungan nonlinear dalam penelitian sosial dan bisnis. yogyakarta: andy offset syakhroza, a. (2003). reformasi profesi akuntansi sektor publik dan good government governance. jurnal manajemen dan usahawan, 32(1), 1-5. tjahjono, s. (2003) business crimes and ethics: konsep dan studi kasus fraud di indonesia dan global. yogyakarta: andi. xin, liu. (2014). the influence of national culture on whistle-blowing: a cross -cultural investigation. cross -cultural communication, 10(6), 91-95 correspondence to: reresagustin25@gmail.com received: 2 june, 2021 accepted: 10 june, 2021 published: 30 march, 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 2, pp. 34 39 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction today, all aspects of life are accompanied by the existence of a very broad horizon of knowledge. humans live side by side and of course need or depend on each other. in fulfilling their needs, they carry out economic activities for the survival of each individual. without us realizing it, the economy always helps complement the needs of people's daily lives in carrying out activities. political economy broadly means a branch of science that studies two substances in it, namely economics and politics. the scope of this discussion of political economy is quite broad, because there are a lot of ideas that will be discussed in its application. political economy has two sides of a good relationship, namely explanatory or it can be interpreted as a study that aims to test a theory in order to strengthen or reject a pre-existing theory; and normative which are commonly referred to as applicable norms or rules. (deliarnov, 2006) of course, economic activity is closely related to the existence of a market in the country concerned. the existence of a market in the state order makes it easier for the people to carry out their economic activities. the market and its income or profits are considered as determinants of economic progress in a country. a quality market structure reflects the success of the mechanisms implemented in implementing policies from many parties, both from the community itself and due to interference from the government. market diversity varies greatly. this causes a lot of policy differences in regulating the market mechanism, so that there is relatively imperfect competition which is one of the causes of market failure. the role of the public sector for the sustainability of its political economy, the public sector itself is considered capable of improving things that have no rules in achieving economic success. therefore, the existence of a government in this market mechanism is very beneficial and has a positive impact on many parties, as well as overcoming the failure of the prevailing market mechanism. basically, the existence of a market mechanism itself is formed in order to enforce political economy and the role of the public sector “the role of government in overcoming market mechanism failures” reres agustin1, zukhrufah ash shodiqoh2 1,2 department of sharia economic, faculty of islamic economics and business, state islamic university of prof. kh. saifuddin zuhri purwokerto, indonesia abstract along with the times, of course, the economic success of a country is influenced by several factors that support it. one of them is in the field of political economy. however, along with these developments, the economic system encountered several obstacles, such as the failure of the market mechanism. political economy and its own tools are involved in overcoming this failure. the government's role in the failure of this market mechanism is needed to stabilize a country's economy and provide justice for economic actors. the purpose of this journal is to find out what the relationship between political economy and the public sector is, by discussing in detail the role of government in overcoming the failure of market mechanisms. the source of the data we obtained comes from a collection of various information obtained through the media of literature and readings that refer to the title of the discussion of political economy and the role of the public sector. keywords political economy; public sector; market; government; mechanism failure jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 34 39 economic justice by considering all forms of interests of all parties involved in the market. the market mechanism that exists in this free market has a tendency to stabilize prices until it meets the level of price equilibrium in the market. the large number of policy changes from the parties involved in this market caused the mechanism in the market to almost fail. it is not impossible anymore, all of these events were caused by other economic aspects, thus causing failures in the market mechanism. the role or intervention of the government here is very necessary. (fitriana, 2012) the government is often, within certain limits, sometimes required or necessary to intervene to balance market prices to avoid the formation of prices that could harm consumers or producers. the role of government is also considered to be a solution to solving problems in the economy. market concept according to the language of the market can be interpreted as "mercatus" which means trading or as a place to trade. meanwhile, according to the term market is a place or process of interaction between sellers and buyers of an item or service. according to many experts, it is concluded that the market has two meanings from the classic and modern side. according to the classical meaning, the market is a meeting place for sellers and buyers to carry out a series of exchange activities, both goods and services. meanwhile, according to the modern meaning, the market is a medium that accommodates a process of supply and demand for goods and services. (indrayani, 2018) broadly speaking, the market is the main factor in the sustainability of economic activity. basically the market has three functions, namely: distribution function, price formation function and promotion function. 1. market plays a role in distribution the market in this function is tasked with facilitating interaction or distribution media between producers and consumers. with this function, parties involved in this distribution activity can interact easily in the activities of offering goods and services offered by producers to consumers. 2. market as price shaper the market is a place where buyers and sellers meet. in the market, sellers can offer their goods to buyers. and, buyers who will need goods or services can bid prices directly to the seller. after bargaining occurs between the two parties and the price has been agreed upon, a price is formed. 3. market as a promotion tool the market is said to be a means of promotion, meaning that the market is a place to introduce, market, and inform a product or service about the information, benefits, and advantages of products offered by producers. promotions carried out by producers aim to attract buyers' interest in the goods or services being promoted. there are several ways to do promotions, namely by placing banners, distributing brochures, doing advertisements on social media, and so on. (setiawan, 2011) market mechanism the study of economics as we know it is sourced from ideas or ideas, which are then poured and developed into a theoretical model of these economic ideas. the market mechanism is a mechanism that regulates the ongoing economic activity through the market, the market here is the interaction between sellers and buyers. it is in this market that economic actors meet to conduct interaction and transaction activities in order to achieve their respective goals. to get the goods they want they have to compete tightly because not all desires can be fulfilled by the limitations and availability of goods or services. in addition, there is also a price mechanism which is an interaction process based on the existence of a basic economic model of attractiveness between producers and consumers, both in terms of the output market or in terms of the input market. the price itself is a nominal which states the amount of exchange value of an item. (amalia, 2012, p. 6) the price system in the market functions like a hand to regulate economic activity. this is different from the regulatory system through laws, government regulations. according to adam smith, the activities of each economic unit in its efforts to obtain what is best for him will actually lead to a mechanism that can run regularly. according to smith, the government intervenes only in its duties as a party that: 1. defend the country against attacks from outside. 2. implement a fair legal system in the country. 3. carry out development and carry out a general job (sigit sardjono, 2017) jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 34 39 although in its implementation the mechanism has many advantages, besides that the mechanism also has its own weaknesses in its implementation. some of these weaknesses include the existence of unlimited freedom which tends to threaten or oppress certain groups. this results in competition or competitive interaction in all circles. the upper classes compete with other upper classes by strengthening their competitiveness, or the strong groups may oppress the weak in order to control what they want. the existence of a market system that triggers the emergence of a monopoly is also a weakness of the market mechanism. the condition of prices circulating in the market tends to change depending on the supply and demand side of the mechanism itself. in addition, the provision of goods or services in the market mechanism still looks inefficient due to obstacles from the lack of facilities provided by the market mechanism itself. thus, the government here takes on the role of providing services that cannot be fulfilled by market mechanisms. (fitriana, 2012) political economic relations with the public sector basically, the scope of this public sector is one of the important indicators in the sustainability of the country's economy with a major industrial level. this important role involves intervention from the government to balance the public sector. the public sector itself is far from a free market accompanied by minimal government intervention. minimization in avoiding the occurrence of a conflict in the economic field needs to be emphasized. ignorance of rational insight or often called by economists with rational ignorance, is the condition of a group of people who lack the information that is currently circulating. some communities admit that their voice will not be able to play a role in solving the problems they face on their own. in addition, fraud often triggers a conflict between economic goods or products and political goods. in response to this, the public sector action would be to support legislation that is easy to identify in exchange for future costs, which are relatively difficult to predict and identify. in general, the government structure consists of community groups, political circles, and bureaucrats or government groups. each of these groups each has its own role as well as holding and has its own ambitions. in community groups, they tend to have quite significant differences, so that it makes it easier for each individual to easily find public services that are in harmony and in accordance with the integrity of each individual's request. so, it can be concluded that this is one of the factors in the formation of a vote and gives rise to democratic representations that have an impact on the political economy of a developing country. thus, in its implementation, political economy acts as a forum for studying political and economic interactions. all forms of government's role in the market sector will be discussed in more detail in the next chapter. the involvement of government groups in the management of the public sector affects a country in its economic aspects and affects its market mechanism sector. (prasetiya, 2013) the government role the involvement of one person with another person who has more power feels familiar in the development of aspects of a country's economic activity. these developments are often found in developing countries. this is done in order to streamline all objects that are considered unable to be fulfilled in a certain scope. in government, this has become a phenomenon that is quite natural because there are several things that cause economic distortions or imperfect market conditions. as we know that the government is used as an institution that is considered capable of overcoming or accommodating problems that cannot be fulfilled by a forum that deals directly with these problems. it is possible, behind the existence of a market mechanism, this can also happen. the government's position here acts as a driver to streamline some of the processes for allocating and distributing available resources if the allocation is not possible to be directed or handled by the market mechanism itself. (sumarni, 2013) in reality, market mechanisms are imperfect and cannot run properly due to various forms of inhibiting factors. as a result, a price fixing that develops in the market mechanism is difficult to determine and it is feared that it will affect the economic actors in the market mechanism. this negative influence will greatly affect the balance of the economy, both in the micro and macro economy. (karim, 2010) this role is often referred to by economists as market intervention, which means that the jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 34 39 government's participation or involvement in the development of market mechanisms should not be taken care of. recovery from failures in market mechanisms is carried out in order to reduce the percentage of prolonged market distortions. (sukirno, 2014) in a free market mechanism without any supervision or control from the government, it causes price speculation and encourages the level of exploitation of its resources, so that only certain groups will dominate because of differences in strata of life and endanger the weak in terms of the economy, both small traders and consumers. (mujiatun, 2013) all forms of equity and activities to stabilize the economy are formed by the government in controlling the market mechanism. allocations that are not optimal are usually based on fraud or a monopoly that causes externalities (inefficiency of existing resources in the market). one of the policies is setting a minimum price to protect the position of producers and a maximum price to protect consumers. furthermore, the government's policy on tax determination is also enforced, by imposing taxes according to developing commodities. as in the example of increasing the cost of taxes on foreign goods or imported goods, so that people will pay more attention to the production of goods from within which the price range is relatively cheaper because the tax set is not too high. in addition to suppressing the competitiveness of domestic production with foreign countries, this will also help to reduce the rate of inflation. inflation that is not controlled by strong institutions will lead to economic inequality in a country. a review of prices in the market needs to be carried out in order to avoid high and unreasonable price increases, as well as to reduce the burden borne by parties in the market. (sumarni, 2013) in fact, adam smith stated that a free economic mechanism provides a fairly central role for a country to enforce justice (fair) for all actors. the government does not always participate in an authoritarian way, it's just that the government's position here is to balance stability in order to create effectiveness. all forms of violations in the market mechanism will be controlled by the government in order to defend the rights and interests that are violated. a market mechanism that can run in a structured manner will greatly determine the success of the country's economy. therefore, this role or government intervention exists because of the demands for it. this form of control over the oversight of the failure of the market mechanism is nothing but the wisdom of a just, authoritative, and ethical political government. on the other hand, if the government's intervention in the failure of the market mechanism only supports certain parties and does not act decisively on the problems that occur, it will be bad for all parties and reduce the quality of the national economy. (keraf, 1998) methods this study used descriptive qualitative method. this method contains non-numeric data (not numbers). the purpose of preparing a journal using this qualitative descriptive method is in line with the problems that will be discussed regarding political economy with the public sector, especially the role of the government in overcoming the failure of the market mechanism, so that we can know the concept of the market and its mechanisms, the failure factors of the market mechanism, and the role of the government. in overcoming these problems. the approach used in compiling the journal is using a literature study, where the data obtained comes from the media literature and significant readings with journal titles that are relevant to the topic of discussion. all information that can be obtained from literature, books, essays or scientific works, as well as from other written encyclopedia sources. conclusions political economy has two sides of a good relationship, namely explanatory or it can be interpreted as a study that aims to test a theory in order to strengthen or reject a pre-existing theory; and normative which are commonly referred to as applicable norms or rules. a quality market structure reflects the success of the mechanism that is treated in the implementation of policies from many parties, both from the community itself and due to interference from the government. this causes a lot of policy differences in regulating the market mechanism, so that there is relatively imperfect competition which is one of the causes of market failure. therefore, the existence of a government in this market mechanism is very beneficial and has a positive impact on many parties, as well as overcoming the failure of the prevailing market mechanism. basically, the existence of a market mechanism itself is formed in order to enforce economic justice by considering all jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 34 39 forms of interests of all parties involved in the market. the market mechanism that exists in this free market has a tendency to stabilize prices until it meets the level of price balance in the market. the many changes in policy from the parties involved in this market have caused the mechanism in the market to almost fail. the government is often, within certain limits, sometimes required or necessary to intervene to balance market prices to avoid the formation of prices that could harm consumers or producers. as we know, the government is used as an institution that is considered capable of overcoming or accommodating problems that cannot be fulfilled by a forum that deals directly with these problems. this role is often referred to by economists as market intervention, which means that the government's participation or involvement in the development of market mechanisms should not be taken care of. in a free market mechanism without any supervision or control from the government, it causes price speculation and encourages the level of exploitation of its resources, so that only certain groups will dominate because of differences in strata of life and endanger the weak in terms of the economy, both small traders and consumers. on the other hand, if the government's intervention in the failure of the market mechanism only supports certain parties and does not act decisively on the problems that occur, it will be bad for all parties and reduce the quality of the national economy. as in the example of increasing the cost of taxes on foreign goods or imported goods, so that people will pay more attention to the production of goods from within which the price range is relatively cheaper because the tax set is not too high. it should illustrate brief and clear results of study, contributions to new theories, and new ideas for future researches. here, the theoretical and practical implications should be written in paragraphs. references amalia, e. (2012). mekanisme pasar dan kebijakan penetapan harga adil dalam prespektif ekonomi islam. jurnal fakultas syariah dan hukum uin syarif hidayatullah. dipetik juni 28, 2021, dari https://media.neliti.com/media/publications/1 95011-id-mekanisme-pasar-dan-kebijakanpenetapan.pdf deliarnov. (2006). ekonomi politik. jakarta: erlangga. fitriana, w. p. (2012, oktober). google.com. dipetik juni 28, 2021, dari www.123dok.com: https://123dok.com/document/q0gmlwvzmakalah-mekanisme-pasar-dalam-ekonomima.html indrayani, d. d. (2018). pengantar sosiologi pasar. jakarta: prenadamedia group. dipetik juni 28, 2021 karim, a. a. (2010). sejarah pemikiran ekonomi islam. jakarta: rajagrafindo persada. dipetik juni 28, 2021, dari https://www.rajagrafindo.co.id keraf, s. (1998). etika bisnis-edisi baru. yogyakarta: pt kanisius. dipetik juni 28, 2021 mujiatun, s. (2013). peran pemerintah tentang pengembangan perekonomian dalam prespektif sistem ekonomi kapitalis, sosialis, dan islam. jurnal analytica islamica universitas islam negeri sumatera utara, 3 no. 1. dipetik juni 28, 2021, dari http://jurnal.uinsu.ac.id/index.php/analytica/ar ticle/view/440/341 prasetiya, f. (2013). google.com. dipetik juni 28, 2021, dari www.lecture.ub.ac.id: http://ferryfebub.lecture.ub.ac.id/files/2013/01 /bagian-iii-ekonomi-politik-sektor-publik.pdf setiawan, f. (2011). konsep mekanisme pasar ekonomi modern. jurnal digilib.uinsby uin sunan ampel. dipetik juni 28, 2021, dari http://digilib.uinsby.ac.id/9574/9/bab2 sigit sardjono, ,. p. (2017). ekonomi mikro teori & aplikasi. yogyakarta: andi publishing. dipetik juni 28, 2021 sukirno, s. (2014). mikro ekonomi "teori pengantar". jakarta: rajagrafindo persada. sumarni. (2013). intervensi pemerintah antara penolakan dan kebutuhan di bidang ekonomi. jurnal islamic and economic education, 1 no. 2. dipetik juni 28, 2021, dari www.media.neliti.com: https://media.neliti.com/media/publications/4 3003-id-3intervensi-pemerintah3-antarakebutuhan-dan-penolakan-di-bidangekonomi.pdf correspondence to: dijan.rahajuni11@gmail.com received: 30 may, 2021 accepted: 20 june, 2021 published: 30 june, 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 2, pp. 1 7 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the government is trying to build an infrastructure network, one of which is the rail infrastructure. it is realized that the better of transportation will support the mobility of people and goods. with the increasing population, the needs for human and goods transportation to increase, especially when faced with limited resources, not all residents can fulfill their transportation functions, and their own regions can produce not all necessities. the availability of adequate and appropriate transportation facilities will certainly improve welfare. the ministry of transportation has built facilities and infrastructure in 10 new airports, rehabilitated 65 terminals, built 21 ferry ports, 104 non-commercial port facilities, and constructed 45 railway operational stations/buildings. trains are one of the most popular of transportation due to the load capacity of both passengers and many goods. besides that, the travel time is fast and relatively precise. the growth of passenger and freight transport on trains (table 1) despite fluctuating but the average growth rate is positive. the positive trend of growth in the number of passengers and goods for rail transport must be supported by increasing railway facilities and infrastructure, including the construction of the double track and overpass lines. during 2015 2019 the growth rate of the construction of new railway lines on the islands of sumatra and java. in the form of multiple tracks and the average reactivation reached 86.17 percent, with an average of 48,351.8 km of track length (table 2). the construction of the double track and the gambarsari overpass began to be socialized in 2017. this line includes in operation area v, connecting purwokerto and kroya with a line length of 27,168 km. rianto (2011) states that in the development of infrastructure, land acquisition activities are inseparable. land acquisition will socio-economic conditions of society affected by the development of overpass and double-track railway in the village of gambarsari, kebasen district, banyumas district dijan rahajuni 1, muhammad farid alfarisy 2, janahtin saraswati3 1,2,3 economics and development studies, faculty of economics and business, universitas jenderal soedirman, indonesia abstract the construction of road infrastructure in an area can displace residents who have previously inhabited the area. likewise, the construction of double tracks and overpasses in gambarsari village, kebasen district, banyumas regency. however, with the eviction, the government takes action. the government provided compensation that did not harm the community. this study aims to analyze the socio-economic conditions of the respondents who were evicted from the perspective of land area, living conditions and housing facilities, with 28 households evicted. the analysis method used a paired two-sample test by first testing the conditions for the normality of the data. the study results were that the average land area had decreased. however, as much as 57.14 percent of the respondents had an increase in land area. respondent’s living conditions are all getting better with permanent buildings and there is also an increase in the score of living conditions for 67.86 percent of respondents. the condition of facilities where the respondents lived was increase in 25 percent of the respondents. the condition of the facilities includes from the good category to the complete category. keywords socio-economic conditions; double track and train overpass; land value; residence; housing facilities jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 1 7 have a social and economic impact on the affected communities. changes in the community's socio-economic conditions that occur can lead to better conditions or even vice versa. it is base on each individual's ability to manage assets of compensation for land acquisition and the ability to adjust to a new environment. communities affected by land acquisition and moving to areas far from their previous areas need to adjust to the new area. in the initial phase of the railway overpass and double-track construction project in gambarsari village, land acquisition and residences for residents whose land has been affected by the railroad development. however, the land acquisition received compensation according to the agreement between the railroad and the residents. on the other hand, it also impacted socio-economic conditions, especially the residents of the surrounding community. dewitasari (2015) in the construction of the surabaya mojokerto toll road in wringinom subdistrict, gresik regency, also impacts the socio-economic conditions of the community as the shift in livelihoods from farmers to entrepreneurs, distance relationships between affected residents, and increased family needs. on the other hand, according to kayupa (2015), the construction of a hydroelectric power plant in suluwana village, north pamona district, poso regency positively impacts employment, increasing income, and education level and health of the surrounding community. this study analyzes how the construction of the railway overpass and double track in gambarsari village affects the affected residents, seen from their socio-economic conditions. socio-economic conditions analyzed include changes in fixed assets, namely land area, residence and residential facilities owned by affected residents. research methods this research combines quantitative and qualitative research forms (creswell, 2017: 5). the concurrent triangulation combination research method is through collecting data at one time (concurrent) in one stage both quantitative and qualitative data to compare whether there is a difference, convergence, or several combinations through comparing and integrating the results of two data in a side-byside discussion (cresswell, 2017 : 320). data collection was obtained through the census method, namely observations made on the entire population in an area (yughi, 2018), with the population of households affected by the overpass and double-track construction in gambarsari village 28 households. data analysis the test of normality data is conducted to determine whether the data is normally distributed or not. the statistical test of normality uses skewness and kurtosis, the variables are normally distributed if the value of skewness and kurtosis is not more than : 0.05 (ghozali, 2016: 28). the data is normally distributed if the resulting z value is not more than 1.96 (α =0,05) to answer the hypotheses, this research using t-test paired sample. according to kadir (2016; 302), to compare the differences between a correlated sample with the same sample group and produce two data distributions. if the data is not normally distributed, then non-parametric statistics are tested, hypotheses development: a. for the variable of fixed assets seen from the land area h0 : β1 = 0, there is no difference in fixed assets owned by the community before and after land acquisition h1 : β1 ≠ 0, there is no difference in fixed assets owned by the community before and after land acquisition b. for the variable of residence h0 : β1 = 0, there is no difference in the condition of the community’s residence before and after land acquisition h1 : β1 ≠ 0, there are differences in the condition of people’s residence before and after land acquisition c. for residential facilities variable h0 : β1 = 0, there is no difference in community housing facilities before and after land acquistion h1 : β1 ≠ 0, there are differences in community housing facilities before and after land acquisition 1. the indicators used in observing changes in living conditions and residential facilities are based on the following bps 2019 indicators: a. indicators of housing conditions include a). status of control of the residential building occupied, 6 indicators; b). status of residence, 3 indicators; c). roof type, 6 indicators; d). the widest type of wall, 3 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 1 7 indicators; e). the widest type of floor, 5 indicators; e). floor area, 6 indicators. b. indicators of residential facilities include: a). sources of drinking water, 11 indicators; b. use of drinking water facilities, 4 indicators; c). how to get drinking water, 3 indicators ; d). water source for bathing/washing, 9 indicators ; e). how to get water for bathing/washing, 3 indicators ; f. wc, 4 indicators ; g). light source, 4 indicators ; h). electric power, 6 indicators; i). fuel source, 4 indicators ; j). family entertainment, 5 indicators; k). cooler, 4 indicators. based on these indicators, a score range is made with the formula (sari, 2014): calculation of the range of scores for residential facilities: a. complete housing facilities if the score obtained 43-57 b. housing facilities are sufficient if the score obtained is sufficient 27-42 c. residential facilities are lacking if the score obtained 11-26 range of scores for the state of residence: a. state of permanent residence if score is obtained 20-26 b. the state of semi-permanent residence if the score obtained is 13-19 c. the state of residence is non-permanent if the score is obtained 6-12 results and discussions 1. normality test on asset change data a. the normality test of the change in asset value data before the respondent is affected by the doubletrack construction shows that the respondent's asset value data is normally distributed. from the test results in table 5 shows the value of z skewness =1,23 and z kurtosis= 0,41, using α =0,05 both of them below the critical value ±1,96. b. the normality test of the data on changes in asset values after the respondent was affected by the construction of the double-track shows that based on the results of the z skewness. value test z skewness =1,959 and z kurtosis =0,38. using α =0,05 , both of them below the critical value ±1,96, it means the data normally distributed. c. paired t-test result shows land score before and after the overpass and double track building, showing t score -3,464 >│t table │-2,05183, pvalue 0,002. it means that h0 rejected and h1 accepted. the result shows that there is significant asset accumulation in public in the land acquisition period. 2. normality test on the living condition data a. data on the condition of the respondent's residence before being affected by the construction of the double-track was not normally distributed because the value of z skewness = -2,371 and score z kurtosis = 2,001, critical value ±1,96. b. likewise, the condition of the respondent's place of residence after being affected by the construction of a double-track is not normally distributed, this is indicated by the value of z skewness = -2,477 and score z kurtosis = 0,576, critical value ±1,96. c. the result of wilcoxon test shows z score -3,52 > │z table │ -1,96 and pvalue : 0,00043. it means h0 rejected dan h1 accepted. this means there is a change significantly on the living condition of the community after the land acquisition. 3. normality test on residential facility a. residential facility of the respondent before the land acquisition shows normally distributed, it shows from score of z skewness = -1,942 and score of z kurtosis = -0,960, critical value ±1,96. b. data of residential facility after the establishment of double track also normally disitributed, it can be seen from score of z skewness = 0,524 and score of z kurtosis = 0,071, critical value ±1,96. c. the result from paired t-test, the tscore is -6,838 >│t tabel │-2,05183 and pvalue 0,000. it means that h0 rejected and h1 supported. it means that the changing of residential facility is significant when compare before and after land acquisition. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 1 7 discussions respondent's land area the land acquisition has a significant influence towards the ownership of land area of the residents affected. the average of land acquisition for the construction of double trucks and overpasses in gambarsari of the respondents' land area decreased by 8 m2, with details of 16 people (57.14 percent) whose average land area increased by 127.8 m2, 9 people (32.14 percent). the average land area is reduced by 196.6 m2 and 3 people (10.72 percent) the land area remains. as for the price of land in the new location shows an increase from 1,256,000 indonesia rupiah to 1,340,296 indonesia rupiah per m2. this condition is following the opinion of soeparmoko (2002) that the construction of transportation facilities will have a more significant impact on the increase in the value of land and buildings (rate of increase) in an area. the condition of respondent's residence the land acquisition by pt kai for the construction of double trucks and overpasses in gambarsari village turned out to have a significant impact on the living conditions of the affected communities. referring to the bps criteria for living condition indicators, all respondents have permanent houses, whereas previously there were 5 respondents whose houses were not permanent. in addition to changes in the condition of the house, there was also an increase in the score of living conditions, 19 respondents (67.86 percent) experienced an increase in their score, 2 respondent’s scores decreased (7.14 percent) and 7 respondent’s scores remained constant (25 percent). the acquisition of residential land has a positive impact on the living conditions of the affected residents. this is different from the acquisition of agricultural land as proposed by al-fajar et.al (2017), namely that the conversion of agricultural land does not impact changes in the farmer’s residence. kersanagara village, cibeureum district, tasikmalaya city, west java province. it can happen because the respondents in gambarsari village who were evicted were their places of residence so they had to find a new place to live, in the construction of a new residence armed with the compensation money received, of course respondents wanted a more comfortable place to live. residence facilities the condition of the respondent's residence facilities has a significant and positive difference between before land acquisition and after land acquisition. this difference can be seen from the score of the residential facilities indicator. before land acquisition, all respondents had adequate housing facilities and after land acquisition there was an increase in ownership of residential facilities, namely 7 respondents (25 percent) ownership of residential facilities to be classified as complete, while the remaining 21 respondents (75 percent) ownership of residential facilities were still in use. enough category. this shows that 25 percent of respondents use the money from compensation to increase residential facilities completeness. this condition is also not in line with land use change, as al-fajar et al (2017) research that the conversion of agricultural land has no impact on the condition of the respondent's household facilities. in gambarsari the respondents do not focus their compensation money on land replacement but on housing and housing facilities, because the respondents in gambarsari are not land conversions but are evictions of respondent’s housing because they are affected by doubletrack construction and train overpass. in accordance with rianto's opinion, 2011, changes in respondents' socio-economic conditions affected by land acquisition vary according to their ability to manage and allocate compensation received. likewise, the conditions that occur in gambarsari village, therefore prior to the land acquisition process, are better if socialization is carried out regarding financial management to manage and allocate compensation money to improve welfare. according to janathin, 2021 after the relocation of the displaced people's residences there will be no significant changes in terms of income and welfare, there is even a decrease in the level of welfare, this is because the affected respondents are generally old and use their compensation money more for consumption, this condition it would be concerning if many young people inhabited the displaced settlements. in a new settlement, armed with the remaining compensation money after meeting their housing needs, they can set aside to carry out productive economic activities to increase their income. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 1 7 conclusions transportation development carried out by pt kai in gambarsari village, kebasen district, banyumas regency led to the eviction of residential land. this condition has a beneficial impact on the evicted residents because the compensation provided by the government does not harm the evicted respondents. this impact is evident from the changes in the land area owned by the respondents, although the average area has decreased. however, the 57.14 percent of the land area has increased, and positive changes in housing conditions where all respondents have permanent housing buildings and residential facilities. there is an increase, 7 respondents the condition of their living facilities into the complete category. it needs to socialize the use of compensation money and replace the old place of residence and carry out productive economic activities to increase the income of the displaced. references abdillah, w. &. (2015). partial least squarre (pls) al fajar, f., noor, t. i., & sudradjat, d. (2017). dampak alih fungsi lahan terhadap perubahan tingkat kesejahteraan petani padi sawah di kelurahan kersanagara kecamatan cibeureum kota tasikmalaya provinsi jawa barat. jurnal ilmiah mahasiswa , 4 (3), 794.doi:http://dx.doi.org/10.25157/jimag.v4i3. 1645. bps. (2019). survey sosial ekonomi nasional (susenas). jakarta: bps. diakses dari https://sirusa.bps.go.id/sirusa/index.php/dasa r/view?kd=14&th=2019. cresswell, j. w. (2017). research design. yogyakarta: pustaka pelajar. dewitasari, t. 92016) dampak pembangunan jalan tol surabaya – malang terhadap kondisi sosial ekonomi penduduk di daerah kecamatan wringinanom kabupaten gresik. swara bhumi e-journal pendidikan geografi fis unesa, 1(1), 197-201. djarwanto. (2001). mengenal beberapa uji statistik dalam penelitian. yogyakarta: liberty. ghozali, i. (2016). aplikasi analisis multivariete dengan program spss. semarang: badan penerbit undip. janathin saraswati, dijan rahajuni, muhammad farid alfarisy. (2021). does monetery compesation during railway construction make haoesehold better-off? ekoregional, 16(1), 47-55 kadir. (2016). statistika terapan. jakarta: raja grafindo persada. kayupa, o. (2015). dampak sebelum dan sesudah pembangunan pembangkit listrik tenaga air (plta) terhadap kondisi sosial dan ekonomi masyarakat di desa sulewana kecamatan pamona utara kabupaten poso. ejournal katalogis , 4(11), 217-227 kemenhub. (2018). statistik perhubungan 2018. jakarta: pustikom kemenhub.diakses dari http://dephub.go.id/ppid/informasi/117. kemenhub. (2019). statistik perhubungan 2019. jakarta: pustikom kemenhub.diakses dari http://www.dephub.go.id/post/read/bukustatistik-perhubungan-tahun-2019-(buku-i). rianto, n. (2011). indikator perubahan kesejahteraan masyarakat pasca pembebasan lahan untuk pembangunan infrastruktur pekerjaan umum dan pemukiman. jurnal sosek pekerjaan umum , 3(3), 185-194. suparmoko. (2009). metode penelitian praktis. yogyakarta: bpfe yogyakarta. yughi, s. a. (2018). analisis tngkat efisiensi ekonomi dan kesejahteraan usaha tani kangkung darat dan air di kecamatan tambak kabupaten banyumas. jurnal akrab juara , 3(4), 22-37. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 1 7 list of table: table 1. average growth in the number of passengers and goods of railway transportation on the island of java in 2014-2018 (percent) description 2014 2015 2016 2017 2018 average passenger 25,65 18,33 9,17 0,94 16,59 14,14 goods 34,58 -8,77 4,54 13,62 17,44 12,82 source: kemenhub 2017-2018 table 2. development of new railways in sumatra and java islands 2015-2019 (km) description 2015 2016 2017 2018 2019 total construction of new railway lines (including double and reactivated tracks) 89.91 184.73 373.29 744.05 1,025.61 2,417.59 new railroad development growth) 105,46 102,07 99,32 37,84 average 86,17 source: kemenhub 2019 table 3. data normality test result and hypotheses acceptance at = 0.05 (+ 1.96) a. land area before and after overpass and double track construction n skewness kurtosis statistic statistic std. error statistic std. error land area before 28 0,570 0,441 -0,383 0,858 z skewness 1,23 z kurtosis -0,41 conclusion data normally distributed land area after 28 0,907 0,441 0,355 0,858 z skewness 1,959 z kurtosis 0,38 conclusion data normally distributed paired t-test t counted = -3,464 t table =│2,05183 │ sig = 0,002 kesimpulan h1 accepted there is a significant difference in asset value between before and after land acquisition. b. condition of residence before and after land acquisition n skewness kurtosis statistic statistic std. error statistic std. error before land acquisition 28 -1,098 0,441 1,853 0,858 z skewness -2,371 z kurtosis -2,001 conclusion data nor normally distributed jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 1 7 after land acquisition 28 -1,147 0,441 0,533 0,858 z skewness 2,477 z kurtosis 0,576 conclusion data not normally distribute uji wilcoxon │z score │ -3,52 > z table │1,96│ and sig = 0,00043 conclusion h1 accepted, there is a significant difference in the condition of the community's residence before and after land acquisition pembebasan c. resident facility before and after land acquisition n skewness kurtosis statistic statistic std. error statistic std. error before land acquisition 28 -0.691 0.441 -0.888 0.858 z skewness 1,492 z kurtosis -0,960 conclusion data normally distributed after land acquistion 28 0.242 0.441 0.065 0.858 z skewness 0,524 z kurtosis 0,071 conclusion data normally distributed paired t-test t score = 6,838 > t table =│2,05183 │ sig = 0,000 conclusion h1 is accepted, there is a significant difference in community living facilities between before and after land acquisition figure 1: calculation range of score 𝑅𝑆 = 𝑆𝑘𝑇 − 𝑆𝑘𝑅 𝐽𝐾 rs : range skor skt : higest score skr : lowest score jk : number of classification correspondence to : helenaduamea@gmail.com received: 24 september 2021 accepted: 20 november 2021 published: 30 december 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 4, 2021, pp. 29 37 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction one of the reasons for the rising number of fraud cases and fraudulent investment offers to the general public is a lack of investment understanding. many consumers are duped by investments with enticing interest profit prospects because they lack insight and understanding about investing, hazards, and legal investment methods. the entire loss due to unlawful investments in the last ten years (2008-2018) is estimated to be 88.8 trillion rupiahs, according to the ojk. customers from ntt were responsible for 23% of the total. between 2014 and 2018, the ntt provincial investment alert task force shut down 14 unlawful investment firms in ntt, including the mitra tiara financial credit institution in larantuka, the multipurpose cooperative (ksu) in maumere, and amanda permata in waingapu, among others. after approximately eight months in operation, dynasty sejahtera in ende was declared illegal in july 2020. there are still illegal investment companies functioning in ntt today, and there are still people who believe in them. fraudulent investors continue to employ the same methodology as before to entice individuals to engage in their schemes. without needing to sell the product, investors guarantee to double the profits that are given every day. furthermore, the capital required is quite little. customers were initially relatively easy to obtain the promised investment benefits, and this became such a strong draw that many people sold their possessions in exchange for a free registration fee. investors also employ names that sound authoritative, such as the national commission for the rescue of state assets (komnas pan), or names that have a fantastic sound, such as big data international group (bdig). they also identify their investments with well-known individuals, as though these individuals were also their clients. investors frequently flee when a huge number of consumers join and a large sum of money is raised. aside from financial literacy, another element that might influence the type of investment is risk tolerance, or the amount to which investors are willing to accept the negative consequences of their investment decisions (khairiyati & krisnawati, 2019). financial literacy, overconfidence, risk tolerance and public investment decision of ende residents, east nusa tenggara province of indonesia maria helena carolinda dua mea1, hyronimus se2 1,2 management study program, faculty of economics, flores university, indonesia abstract the goal of this research was to see how financial literacy, risk tolerance, and overconfidence influenced public investment decisions in the ende region. this is a quantitative study. the research subjects are located in ende's downtown area, specifically mautapaga, onekore, paupire, and potulando, with a total of 80 respondents. the respondents were given questionnaires to fill out as part of the primary data collection process. the data was evaluated using smartpls to determine the validity and reliability of the data, and then a hypothesis test was performed to determine the impact of each variable on investment decisions and how much three variables affect public investment decisions in ende. the level of financial literacy affects significantly on public investment decisions by 36.9%, by overconfidence with 14.9%, and risk tolerance or consideration of the risk that will be accepted by investors affects public investment decisions by 29.3% financial literacy, overconfidence, and risk tolerance all have a 35% impact on people's investment decisions, according to the simultaneous test, while the other 65% is explained by other characteristics. keywords financial literacy; overconfidence; risk tolerance; investment decisions; ende jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 overconfidence can also impact public investment decisions. overconfidence causes investors to overestimate their expertise and underestimate their predictions since they have overstated their talents (nofsinger, 2005 in (kartini & nugraha, 2015) overconfidence will also influence risk-taking behavior, in which rational investors want to maximize profits while limiting risk (nofsinger, 2005 in (akmal & saputra, 2016) appropriate investment knowledge about an investment instrument can assist an investor in making the best investment selections, allowing them to maximize their rate of return or return on investment and choose alternative forms of investments that provide sufficient returns. the purpose of research is to determine the impact of financial literacy, risk tolerance, and overconfidence among ende city residents on their investing decisions. in this investigation, four hypotheses must be proven: h1.the citizens of ende city's investing decisions are influenced by their level of financial literacy. h2.ende city residents' investing decisions are influenced by their overconfidence. h3. the citizens of ende city's investment decisions are influenced by their risk tolerance. h4. the residents of ende city's investment decisions are influenced by their financial literacy, risk tolerance, and overconfidence all at the same time. as a result, the following is the research model provided in this study: fig.1 research model research methods this is a quantitative study. the research takes place in the city of ende, with the inhabitants of ende as the subject of study. in the city of ende, there are four sub-districts: north ende district, east ende district, middle ende district, and south ende district. ende regency has a population of 274,599 people in 2020. (based on the record of the central statistics agency of ende regency). the researchers limited the sampling area to four areas in the downtown area of ende, namely mautapaga, onekore, paupire, and potulando, due to the vast population. the sample is chosen using a purposeful random selection method, to find respondents in the urban community who are over 35 years old and have (any) investments. the age of the respondent is determined on the assumption that at that age, people are generally financially stable and have at least one form of investment, such as savings, deposits, property, gold, and other investments. because the overall population of over 35-year-olds with investments in the four cities listed above is unknown, the researchers limited the number of respondents per area to 20, resulting in a total of 80 respondents who will be sampled. the researchers collected primary data by delivering questionnaires to respondents based on the criteria they established. the responses to the statement items in the survey were graded on a likert scale of 1 to 5. secondary data is gathered through book review and observation. table 1 summarizes the variables and indicators. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 table 1. variables and their indicators the data will be analyzed using smartpls to determine its validity and reliability, followed by hypothesis testing to determine the effect of each variable on investment decisions, and finally, a simultaneous test to determine which variables have the greatest influence on ende city residents' investment decisions. results and discussion validity and reliability table 2. validity and reliability test results the cronbach alpha, rho a, and composite reliability values of each of these research variables are as follows: investment decision has a composite reliability value of 0.926 > cronbach alpha 0.5, financial literacy has a cr value of 0.843> cronbach alpha 0.5, overconfidence and risk tolerance variables have a value of 1.0 > cronbach alpha 0.5, overconfidence and risk tolerance variables have a value of 1.0 > thus, by looking at the goodness of fit value of the study model, it can be inferred that the data has met the valid and reliable standards, allowing it to be continued. hypothesis test fig.2 hypothesis test with smartpls the effect of exogenous variables on endogenous variables was investigated using hypothesis testing. investment decisions are the exogenous variables in this study, whereas financial literacy, overconfidence, and risk tolerance are the endogenous variables. the original sample value, sample mean, standard deviation, t-statistics, and pvalue are used to test the hypothesis. the following are the findings of hypothesis testing with smart pls: bootstrapping path coefficient results table 3. path coefficient results financial literacy's impact on investment decisions with a t value of 2,962 where t count > t table (1.991673) and a significance or p-value of 0.003 < 0.05 on investment decisions, path analysis demonstrates that the financial literacy variable affects public investment decisions. the understanding of financial literacy has a considerable impact on investing decisions, influencing 36.9% of them. as a result, the first hypothesis, namely, that no variable indikator measurement scale basic finance knowledge savings and borrowing insurance investment (chen and volpe (in fitriarianti, 2013) risk seeker risk neutral risk averter halim (in pradikasari & isbanah, 2018) overestimate underestimate (nofsinger in kartini and nugraha, 2015) investment security investment risk investment return time value of money and liquidity (putri & rahyuda in khairiyati & krisnaw ati, 2019) 3 overconfidence likert scale 4 investment decision likert scale financial literacy likert scale1 2 risk tolerance likert scale jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 financial literacy influences the inhabitants of ende city's investment decisions, has been confirmed and accepted. to avoid financial troubles, everyone needs to have a high level of financial literacy. financial issues are not always caused by a lack of income; they can also develop as a result of a financial management error, such as the misuse of credit, a lack of financial planning, or a lack of savings. as a result, possessing a high level of financial literacy is critical to living a rich life (akmal & saputra, 2016). financial literacy is defined by huston (2010, in (akmal & saputra, 2016) as "the ability to read, analyze, manage, and communicate about personal financial conditions that affect material well-being, which includes the ability to distinguish financial choices, discuss financial issues, plan for the future, and respond competently to life events that affect day-to-day financial decisions, including general economic events." according to byrne (akmal & saputra, 2016), a lack of financial awareness will lead to poor financial planning and a bias in achieving welfare when one's working years are over. budgeting, savings, loans, and investments are the four most common aspects of financial literacy, according to remund (akmal & saputra, 2016). in the meanwhile, the jumpstart coalition (akmal & saputra, 2016) disseminates financial information on themes such as income, money management, saves and investment, and loans and credit. financial literacy is defined by chen and volpe (fitriarianti, 2013) as having four indicators: a) basic financial understanding, b) savings and borrowing, and c) protection or insurance (insurance), d) financial investment. previous research (khairiyati & krisnawati, 2019; mertha dewi & purbawangsa, 2018; putri & hamidi, 2019; safryani et al., 2020; upadana & herawati, 2020) found that financial literacy influences people's investment decisions, regardless of profession. an investor's knowledge of finance or investment is essential. a basic understanding of deposit or savings and loan types, as well as investment interest rates and returns on investment capital, can impact an investor's judgment about which investments to make. investors who understand this fundamental understanding have a lesser risk of losing money and falling victim to investment fraud because they are less likely to be enticed by numerous investment offerings that appear appealing and beneficial at first sight but turn out to be the exact opposite. investors' educational attainment does not always imply that they have a sufficient level of financial literacy. according to the research team's survey findings, most victims of fake investment have a bachelor's degree and work as government or private employees, while there are also victims of fraudulent investment who have less education and work in a variety of occupations. the effect of overconfidence on investment decisions with a t-count value of 2.532, which is bigger than the t-table (1.991673) but a significant value or p-value of 0.272> 0.05 on investment decisions, path analysis demonstrates that overconfidence affects investment decisions. overconfidence influences investing decisions by 14.9 percent, according to path analysis, but the changes or consequences are not significant. as a result, the second hypothesis, that overconfidence affects people's investment decisions, has been confirmed and is acceptable. overconfidence is the sensation of being overconfident. overconfidence causes investors to overestimate their knowledge and underestimate their predictions because they overestimate their talents (nofsinger, 2003 in (kartini & nugraha, 2015) overconfidence can also alter risk-taking behavior, in which rational investors want to maximize profits while avoiding risk (nofsinger, (kartini & nugraha, 2015). overconfidence can affect public investment decisions, according to studies (addinpujoartanto & darmawan, 2020; tanusdjaja, 2018; venti laksita bangun, 2020) overconfidence causes investors or the general public to have expectations about the type of investment to make. in this study, we discovered that the overconfidence variable has an impact on people's investment decisions, particularly when it comes to unlawful investments. for a modest amount of money, illegal investing offers an inflated rate of return on capital. this unlawful investing approach aims to target overconfident investors by presenting logical returns projections, allowing them to feel confident in adopting this sort of investment and promoting it to others. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 risk tolerance's impact on investment decisions with a t-count value of 2.532 > t table (1.991673) and a significance or p-value of 0.012 < 0.05 on investment decisions, path analysis demonstrates that risk tolerance affects people's investment decisions. this suggests that risk tolerance, expressed as a percentage, or assessment of the risk that will be accepted by investors, is influenced by 29.3 and has a considerable impact on investing decisions. as a result, the research's third hypothesis, that risk tolerance influences public investment decisions, has been verified and accepted. the willingness of investors to take the risk when making investments is referred to as risk tolerance (budiarto, 2005 in (pradikasari & isbanah, 2018) according to chavali and mohanraj's research (pradikasari & isbanah, 2018), risk tolerance and investment decisions have a favorable association. a) risk seekers are investors who want more risk because they understand that risk and return are positively associated, b) risk neutral are investors who are flexible and cautious in making investment decisions, according to halim in (pradikasari & isbanah, 2018) c) investors who choose to avoid investment risk are known as risk averters. according to studies (anggirani, 2017; bahri, 2018; budiarto, 2017; ni putu priscilia kartika dewi & krisnawati, 2020; wardani & lutfi, 2019) the risk tolerance factor or tolerance for investment risk might impact the public's or investors' investment decisions. the impact of financial literacy, overconfidence, and risk tolerance on the city of ende's investment decisions table 4. simultaneous test results the simultaneous test demonstrates that financial literacy, overconfidence, and risk tolerance variables can explain 35 percent of the investment choice variable, while other variables can explain 65 percent. the investment decision process, according to tandelilin and herlianto in (khairiyati & krisnawati, 2019), is a continuous decision process that proceeds until the optimum investment option is made. the fundamental in the investment decision process, according to tandelilin (khairiyati & krisnawati, 2019), is understanding the relationship between projected return and risk of an investment. the link between risk and expected return on investment is unidirectional and linear, which means that the higher the expected return, the higher the level of risk that must be taken into account. because of such relationships, not all investors will solely invest in assets with the best rate of return. aside from looking for high returns, investors must also assess the level of risk they are willing to take. investment decisions are influenced by five factors: investment security, investment risk, investment returns, time value of money, and liquidity levels (putri & rahyuda in 2008 in (khairiyati & krisnawati, 2019). the findings of this study also support previous research (anggirani, 2017; khairiyati & krisnawati, 2019; ni putu priscilia kartika dewi & krisnawati, 2020; venti laksita bangun, 2020; wardani & lutfi, 2019), which found that several variables, including financial literacy, overconfidence and risk tolerance, can influence public investment decisions. as a result, the fourth hypothesis, namely financial literacy, overconfidence, and risk tolerance, has a concurrent effect on investment decisions in ende city residents, which has been confirmed and accepted. conclusion one of the reasons for the rising number of fraud cases and fraudulent investment offers to the general public is a lack of investment understanding. many people are fooled by investments by providing unfair interest profits and unclear investment management to those who lack insight and information about investment, hazards, and legal investment procedures. aside from financial literacy, another element that might influence the type of investment is risk tolerance or the extent to which investors are willing to accept the negative consequences of their investing decisions. the overconfidence factor can also impact public investment decisions. overconfidence causes investors to overestimate their expertise and underestimate the predictions jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 they make because they overestimate their talents. future research may be undertaken to see how additional characteristics, such as gender, income, employment, or any other possible variables supported by past research, can influence people's investment decision-making. thank you very much to: kemenristek dikbud, who funded this research in the novice lecturer research scheme for the fiscal year 2021. references addinpujoartanto, n. a., & darmawan, s. (2020). pengaruh overconfidence, regret aversion, loss aversion, dan herding bias terhadap keputusan investasi di indonesia. jurnal riset ekonomi dan bisnis. https://doi.org/10.26623/jreb.v13i3.2863 akmal, h., & saputra, y. e. k. a. (2016). analisis tingkat literasi keuangan. jebi (jurnal ekonomi dan bisnis islam). anggirani, n. (2017). pengaruh risk tolerance, overconfidence, dan literasi keuangan terhadap pengambilan keputusan investasi masyarakat surabaya. eprints.perbanas.ac.id. bahri, m. s. (2018). pengaruh risk tolerance , risk perception dan kecerdasan spiritual terhadap keputusan investasi. eprints.perbanas.ac.id. budiarto, a. (2017). pengaruh financial literacy, overconfidence, regret aversion bias, danrisk tolerance terhadap keputusan investasi (studi pada investor pt. sucorinvest central gani galeri investasi bei universitas negeri surabaya). jurnal ilmu manajemen (jim). fitriarianti, b. (2013). pengaruh literasi keuangan, perilaku keuangan dan pendapatan terhadap keputusan berinvestasi. journal of petrology. kartini, k., & nugraha, n. f. (2015). pengaruh illusions of control, overconfidence dan emotion terhadap pengambilan keputusan investasi pada investor di yogyakarta. ajie. https://doi.org/10.20885/ajie.vol4.iss2.ar t6 khairiyati, c., & krisnawati, a. (2019). analisis pengaruh literasi keuangan terhadap keputusan investasi pada masyarakat kota bandung. jurnal manajemen dan bisnis. mertha dewi, i., & purbawangsa, i. b. a. (2018). pengaruh literasi keuangan, pendapatan serta masa bekerja terhadap perilaku keputusan investasi. e-jurnal ekonomi dan bisnis universitas udayana. https://doi.org/10.24843/eeb.2018.v07.i 07.p04 ni putu priscilia kartika dewi, & krisnawati, a. (2020). pengaruh financial literacy, risk tolerance dan overconfidence terhadap pengambilan keputusan investasi pada usia produktif di kota bandung. jurnal mitra manajemen. https://doi.org/10.52160/ejmm.v4i2.344 pradikasari, e., & isbanah, y. (2018). pengaruh financial literacy, illusion of control, overconfidence, risk tolerance, dan risk perception terhadap keputusan investasi pada mahasiswa di kota surabaya. jurnal ilmu manajemen (jim). putri, wilantika w., & hamidi, m. (2019). pengaruh literasi keuangan, efikasi keuangan, dan faktor demografi terhadap pengambilan keputusan investasi (studi kasus pada mahasiswa magister manajemen fakultas ekonomi universitas andalas padang). jurnal ilmiah mahasiswa ekonomi manajemen. safryani, u., aziz, a., & triwahyuningtyas, n. (2020). analisis literasi keuangan, perilaku keuangan, dan pendapatan terhadap keputusan investasi. jurnal ilmiah akuntansi kesatuan. https://doi.org/10.37641/jiakes.v8i3.384 tanusdjaja, h. (2018). keputusan investasi investor individu berdasarkan kompetensi, overconfidence, dan pendidikan. jurnal muara ilmu ekonomi dan bisnis. https://doi.org/10.24912/jmieb.v2i1.998 upadana, i. w. y. a., & herawati, n. t. (2020). pengaruh literasi keuangan dan jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 perilaku keuangan terhadap keputusan investasi mahasiswa. jurnal ilmiah akuntansi dan humanika. https://doi.org/10.23887/jiah.v10i2.2557 4 venti laksita bangun. (2020). pengaruh literasi keuangan, persepsi risiko dan overconfidence terhadap keputusan investasi (studi kasus pada generasi milenial di yogyakarta). in malaysian palm oil council (mpoc). wardani, a. k., & lutfi, l. (2019). pengaruh literasi keuangan, experienced regret, risk tolerance, dan motivasi pada keputusan investasi keluarga dalam perspektif masyarakat bali. journal of business & banking. https://doi.org/10.14414/jbb.v6i2.996 list of tables table 1. variables and their indicators table 2. validity and reliability test result no variable indikator measurement scale basic finance knowledge savings and borrowing insurance investment (chen and volpe (in fitriarianti, 2013) risk seeker risk neutral risk averter halim (in pradikasari & isbanah, 2018) overestimate underestimate (nofsinger in kartini and nugraha, 2015) investment security investment risk investment return time value of money and liquidity (putri & rahyuda in khairiyati & krisnaw ati, 2019) 3 overconfidence likert scale 4 investment decision likert scale financial literacy likert scale1 2 risk tolerance likert scale jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 table 3. path coefficient results table 4. simultaneous test results jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 list of figures fig.1 research model fig.2 hypothesis test with smartpls jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 3, 2022, pp. 22-29 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : slamet.smh@bsi.ac.id received: 1 august 2022 accepted: 30 august 2022 published: 1 sep 2022 introduction disease covid-19 pandemic at the beginning of 2020 was an event that shocked the world. covid-19 has been declared by the who (world health organization) as a pandemic in which the spread of the virus has spread which has mild or severe symptoms, the symptoms generally are cough, runny nose, fever, and shortness of breath. but the elderly group, they have a high risk related to heart, high blood pressure, and diabetes. (indonesian covid 19 task force, 2020) this virus is growing very fast because it is carried by tourists who have been exposed and visit each other from one place to another, many countries are affected, including indonesia.various sectors in indonesia have suffered losses from the impact of this virus, one of these sectors is tourism (deb, 2020). the limitation of social activities and the closure of road access in indonesia are government efforts to reduce the spread of the virus and this causes tourists to be unable to carry out activities, as usual, resulting in a decline in state financial income. (sumarni, 2020). (george et al., 2020) said significant changes also appeared in the declining tourist visits, because in the year before this pandemic, tourists were very free to enter and leave the country, thus making tourism a source of foreign exchange for the country. however, with this situation, tourists are afraid to travel, even implementing strict health protocols cannot guarantee exposure or not, so many tourists choose to stay at home (george et al., 2020). according to data from the central bureau of statistics, tourist visits experienced a decline in the three main entrances, almost 75% before and after the covid-19 outbreak. the number of visits in 2019 was around 16 million and different in 2020 which was around 4 million. statistical data also shows that tourist visits have decreased from 2020 to 2021, which only reached around 130 thousand visitors. in addition to tourism in general, there is one tourism interest that has potential and is very prospective to be developed into a promising target market, namely halal tourism (muawanah et al., 2021). this prospect has impact of services, marketing and halal tourism on tourism recovery strategies during the covid-19 pandemic slamet heri winarno1, alan budi kusuma2, bryan givan3 1,2management department, faculty of economic and business , universitas bina sarana informatika, indonesia 3 management department, faculty of economic and business , universitas nusa mandiri, indonesia abstract the arrival of the covid-19 pandemic has made many places affected, one of which is the tourism industry. ministry of tourism and creative economy is planning that halal tourism can help tourism become better, because halal tourism is currently in demand by many people because it is prospective and very potential also supported by many residents who are majority muslim. to encourage this, the need for a maximum strategy in restoring tourism that has been declining from various aspects such as visits that affect income, and one of these efforts is service. service is very important to be optimized, because the quality of excellent service will make guests more comfortable in visiting tourist attractions. if connected with halal tourism that the concept looks to be able to apply a very friendly service with the aim of being able to provide their needs and desires when traveling supported by amenity development strategies, attraction development, accessibility development, hr development, and friendly tourism that applies sharia principles. the method used is quantitative data in the form of primary data resulting from the dissemination of questionnaires directly to tourists who visit. keywords services; marketing; halal tourism; tourism strategy jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3 , 2022, pp. 22-29 been recognized by the world, one of which in 2019 indonesia was ranked first as the best halal tourism in the world which has excelled from 130 other country participants, this is because indonesia has the largest muslim population from various countries (muawanah et al., 2021). indonesia has a muslim population that is more than any other country. in addition, indonesia has halal tourism destinations that have received awards (nurohman & qurniawati, 2021), namely lombok in the award (the world best halal tourism destination at the world halal travel awards in abu dhabi), aceh in the award (world's best airport for halal travelers & world's best halal cultural destination from the world halal tourism award) and three others (riau islands, west sumatra, and jakarta). in its implementation, we need what strategies we should develop to market halal tourism in restoring tourism, one of which is service (muawanah et al., 2021). excellent service is very important for us to optimize (winarno, 2019), moreover, we can provide additional services such as amenities, accessibility, and other muslim travel wishes (rachmiatie et al., 2020). in procurement, it is necessary to pay attention to the aspect of access, communication, and the environment (putra, a. s., winarno, s. h. et al., 2021). services are activities offered between parties that are intangible and do not result in ownership (winarno et al., 2018), on the other hand, the quality of service is one of the requirements in a company or agency to be used as a reflection of the satisfaction aspect (winarno et al., 2020). marketing is a human activity to fulfill satisfaction in the needs of the marketing process (cristobal-fransi et al., 2020), in addition, marketing is a social process (which includes individuals and groups) to get what they need and want by offering exchanges of products with other parties. (sheth & uslay, 2007) the concept of halal tourism is tourism that puts forward islamic law which has a vision that the recommended tourism is tourism such as pilgrimages or activities that can protect or prevent visitors from committing sins (muawanah et al., 2021), on the other hand, the halal concept includes all aspects of human life such as finance, work, cosmetics, clothing, tourism, finance, etc. (rachmiatie et al., 2020) the tourism promotion strategy in public relations is an overall approach to the program that becomes the principle for the desired direction (oppermann, 2000), other things that need to be considered are the development of tourism products and destinations, tourism institutions, and infrastructure, as well as tourism human resources (riestyaningrum et al., 2021). methods the research method is quantitative by using data in the form of numbers from the results of calculations or measurements. data was obtained by distributing questionnaires to respondents who have qualifications, namely, people who always travel (tourists) spread across several regions in jabodetabek (jakarta, bogor, depok, tangerang, and bekasi) as many as 200 people and conducted online. the data analysis technique uses the structural equation model (sem) method, which includes the analysis stages: (1) measurement of the outer model; (2) inner model analysis; and (3) hypothesis testing. figure 1. research model jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 3, 2022, pp. 22-29 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : slamet.smh@bsi.ac.id received: 1 august 2022 accepted: 30 august 2022 published: 1 sep 2022 the hypothesis is based on the research model is h1: services have a significant effect on tourism strategy h2: marketing has a significant effect on tourism strategy h3: halal tourism has a significant effect on tourism strategy results and discussion measurement of outer model based on data from 200 respondents who have been obtained through distributing questionnaires, it is obtained profiles of respondents regarding gender, occupation, and travel experience (table 1). this classification of respondents aims to know clearly about the description of respondents as research samples. based on the data in table 1, it can be seen that the majority of visitors to tourist attractions or tourists are dominated by women by 114 people or 57%, while the remaining 43% are men. this data is obtained from the results of distributing questionnaires to tourists who visit tourist attractions. this study also describes the distribution of respondents based on occupations where the first order is dominated by employees by 33% or 66 people, the second-order is housewives who reach 50 people or 25%, the third-order is students with 44 people or 22%, and then selfemployed by 40 people. people or 20%. these results were obtained from distributing questionnaires to respondents who visited tourist attractions.the author could indicate the position of figure in the text as follows: table 1. respondent characteristics classification of respondents total percentage gender: man woman 86 114 43% 57% occupation: employee student housewife entrepreneur 66 44 50 40 33% 22% 25% 20% travel experience: experienced inexperienced 172 28 86% 14% based on 200 sample respondents presented in this study, data obtained that 86% or 172 of them have experience in halal tourism, while 28 people or 14% have no experience in halal tourism. factor loading figure 2. factor loading jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 3, 2022, pp. 22-29 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : slamet.smh@bsi.ac.id received: 1 august 2022 accepted: 30 august 2022 published: 1 sep 2022 factor loading is the initial stage in measuring the validity of a model. factor loading has a condition that must be > 0.7 so that an indicator can be said to be valid. if it does not meet the requirements, it must be removed from the model. meeting the first condition will affect the ave value. the calculation results (figure 2) show that each latent variable has indicators that meet the requirements for factor loading > 0.7, so it can be said that the model is valid and there is no need to change the model due to the deletion of indicators. average variance extracted (ave) the expected ave value in this study is > 0.5 and the calculation results of this study indicate that each latent variable has a value of > 0.5 (table 2). table 2. ave value constructs average variace extracted (ave) x1 services 0.803 x2 marketing 0.674 x3 tourism 0.725 y strategy 0.761 table 2 clearly shows that the ave value does not have a convergent validity problem because all variables have an ave value > 0.5, so we can then test the problem model related to discriminant validity. discriminant validity discriminant validity can be seen from the cross-loading table, this output is used to measure discriminant validity. at this stage, there are two value criteria to be evaluated, namely the cross-loading value and the correlation value between latent constructs (table 3). the value of cross-loading on all variables is as follows: 1. the value of the service variable with five measurement indicators, each of which has a value > 0.7, namely pl1 = 0.991, pl2 = 0.880, pl3 = 0.924, pl4 = 0.843, pl5 = 0.920. 2. the value of the marketing variable with four measurement indicators, each of which has a value > 0.7, namely pm1 = 0.838, pm2 = 0.734, pm3 = 0.850, pm4 = 0.855. 3. the value of the strategy variable with five measurement indicators, each of which has a value >0.7, namely s1 = 0.877, s2 = 0.720, s3 = 0.892, s4 = 0.883, s5 = 0.877. 4. the value of the tourism variable with five measurement indicators, each of which has a value >0.7, namely ws1 = 0.883, ws2 = 0.827, ws3 = 0.900, ws4 = 0.892, ws5 = 0.857. all the variables have each indicator with a value of > 0.7, meaning that the model in this study is said to be valid. if the cross-loading value has an output of one variable that is <0.7 then discriminant validity is needed by equating the base of the ave square with the correlation between latent constructs. composite reliability composite reliability is the last step of the construct validity test in measuring the outer model to test the unidimensionality of the model used in this study (table 4). to test this unidimensionality using composite reliability and cronbach's alpha with a value of > 0.7. the calculation results (table 4) shows the value of croncbach's alpha service variable = 0.938, marketing = 0.843, strategy = 0.904, tourism = 0.921. the composite reliability value of service variable = 0.953, marketing = 0.892, strategy= 0.929, tourism = 0.941. that is, all each variable has a value > 0.7, then all variables are reliable. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3 , 2022, pp. 22-29 table 3. cross loading value table 4. composite reliability value constructs cronbach’s alpha composite reliability services 0.938 0.953 marketing 0.843 0.892 strategy 0.904 0.929 tourism 0.921 0.941 measurement inner model adjusted r square is the corrected r square value based on the standard error value (table 5). the value of adjustment r square provides a stronger picture than r square in assessing the ability of an exogenous construct to explain endogenous constructs. table 5. r square value table 5 shows the y variable has an r-square value of 0.342 or 34.2%, where the value is > 0.33 so it can be said that the model formed is categorized as a moderate model. indicators services marketing strategy tourism pl1 0.991 0.576 0.290 0.435 pl2 0.880 0.608 0.134 0.382 pl3 0.924 0.699 0.289 0.230 pl4 0.843 0.513 0.347 0.399 pl5 0.920 0.668 0.154 0.205 pm1 0.478 0.838 -0.037 -0.274 pm2 0.385 0.734 -0.027 0.083 pm3 0.516 0.850 0.000 pm4 0.776 0.855 0.171 0.246 s1 0.250 0.039 0.877 0.593 s2 0.204 0.115 0.720 0.382 s3 0.244 0.019 0.892 0.520 s4 0.249 0.027 0.883 0.608 s5 0.195 0.039 0.873 0.435 ws1 0.382 0.108 0.623 0.883 ws2 0.240 -0.013 0.509 0.827 ws3 0.382 0.096 0.494 0.900 ws4 0.298 -0.024 0.441 0.892 ws5 0.260 -0.067 0.553 0.857 r square r square adjusted strategy 0.375 0.342 jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 3, 2022, pp. 22-29 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : slamet.smh@bsi.ac.id received: 1 august 2022 accepted: 30 august 2022 published: 1 sep 2022 table 6 shown the test results concluded that the service had no significant effect on the recovery strategy with p-values of 0.785 or > 0.05. table 6. path coefficients patch coefficients p-values services > strategy 0.785 marketing > strategy 0.951 tourism > strategy 0.000 the results of other calculations also have no significant effect on the marketing strategy with p-values of 0.951 or > 0.05. but on the other hand, halal tourism significantly influences the choice of recovery strategy because it produces p-values of 0.000 or <0.05. overall, the three factors in the model (service, marketing, and halal tourism) affect the tourism recovery strategy. hypothesis testing hypothesis testing in this study uses tstatistics and p-values (table 7). the hypothesis will be declared accepted if the value of t-statistics > 1.701 (t-table) and the value of p values <0.05 table 7. hypothesis result patch coeffecient t-stat pvalues result services > strategy 0.273 0.785 rejected marketing > strategy 0.061 0.951 rejected tourism > strategy 4.220 0.000 accepted h1: services have a significant effect on tourism strategy the test results show the value of t-statistics for the service variable to the recovery strategy variable, which is 0.273 < t-table (1.701) with p-values 0.785 > 0.05. from these results, it is stated that the hypothesis is rejected and proves that the service variable does not affect the recovery strategy variable. the main factor that is part of the tourism recovery strategy, of course, lies in reopening tourist destinations affected by the covid-19 pandemic. research (deb, 2020) also reveals that the most important thing right now after the pandemic is to reactivate the economy, especially the tourism sector. the same thing was also conveyed by (sumarni, 2020) that the biggest challenge today in indonesia is to return the economic order to normal again. so it can be concluded that tourism services are not believed to be a determining factor in tourism recovery strategies. h2: marketing has a significant effect on tourism strategy the test results show the value of t-statistics for the marketing variable to the strategy variable, which is 0.061 < t-table (1.701) with p-values 0.951 > 0.05. from these results, it is stated that the hypothesis is rejected and proves that the marketing variable does not affect the strategy variable. the paralysis of the economic sector due to the covid-19 pandemic was also felt by various business sectors, especially the travel business. marketing activities for tourist destinations also experienced a setback. many tourist destinations have closed their businesses during the covid-19 pandemic, so that it has an impact on marketing activities in the travel business, so for now tourism marketing has not affected the recovery strategy. (riestyaningrum et al., 2021) in her research revealed the need for strategic steps as an effort to overcome this crisis. h3: halal tourism has a significant effect on tourism strategy the test results show the value of t-statistics for the tourism variable on the strategy variable, which is 4.220 > t-table (1,701) with jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3 , 2022, pp. 22-29 p-values 0.000 <0.05. from these results, it is stated that the hypothesis is accepted and proves that the halal tourism variable affects the recovery strategy variable. amid the current covid-19 pandemic, returning the interest of tourists to visit tourist objects is an opportunity (cristobal-fransi et al., 2020). one of them is halal tourism (muawanah et al., 2021). the development of halal tourism is currently increasing along with the improvement in the economic sector (rachmiatie et al., 2020). the management of halal tourist destinations has also begun to be carried out through strategic planning (nurohman & qurniawati, 2021). this is certainly a separate strategy in economic recovery, especially in the tourism sector. with the development of halal tourist destinations, it is expected that there will be an increase in the number of tourist visits (mittal & sinha, 2021). the support of all parties is also needed to revive the passion for tourism, especially in indonesia. conclusion the results of the study concluded several things, including service was proven to not affect recovery strategies in the postpandemic period, marketing was proven to not affect recovery strategies in the postpandemic period, and halal tourism was proven to affect recovery strategies in the post-pandemic period. although service and marketing do not influence the post-pandemic recovery strategy, it is better if we continue to provide good and friendly service to guests, and marketing must always be done so that the tourism economy recovers quickly. but on the other hand, tourists must still comply with the health protocols set by the government when visiting tourist attractions to protect themselves and other tourists. references cristobal-fransi, e., daries, n., ferrer-rosell, b., marine-roig, e., & martin-fuentes, e. 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(2021). destination image impacts of wuhan post-pandemic on china’s foreign students’ behavioral intention. advances in hospitality and tourism research. 9(2): 292–312. https://doi.org/10.30519/ahtr.829292 sheth, j. n., & uslay, c. (2007). implications of the revised definition of marketing: from exchange to value creation. journal of public policy and marketing. 26(2): 302– 307. https://doi.org/10.1509/jppm.26.2.302 sumarni, y. (2020). pandemi covid 19: tantangan ekonomi dan bisnis. al-intaj jurnal ekonomi dan perbankan syariah. 2(1): 46–58. winarno, s. h. (2019). determinan kepuasan dan loyalitas pengguna jasa hotel syariah di jakarta (studi pada sofyan hotel betawi). jkbm (jurnal konsep bisnis dan manajemen), 6(1): 80. https://doi.org/10.31289/jkbm.v6i1.2984 jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3 , 2022, pp. 22-29 winarno, s. h., givan, b., & yudhistira, y. (2018). determinan loyalitas pelanggan pada operator telepon selular. esensi: jurnal bisnis dan manajemen. 8(2): 151–162. https://doi.org/10.15408/ess.v8i2.7586 winarno, s. h., nalendra, a. r. a., & givan, b. (2020). the effect of service quality, corporate image, and price perceived in creating customer satisfaction and loyalty on education business. esensi: jurnal bisnis dan manajemen. 10(1): 45–56. https://doi.org/10.15408/ess.v10i1.14468 correspondence to: dosen01032@unpam.ac.id received: 18 march, 2021 accepted: 25 march, 2021 published: 30 march, 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 1, pp. 29 36 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the era of globalization has demanded that all information be accessed quickly and practically. with the design of a good information system, quality information will be obtained (sani, abdul rahman, subiyakto, & wiliani, 2019). information systems are important and can be applied to public transportation modes. a nice occupant information strategy aids in easing the entryway to the public transport mesh for every person, whether they nowadays take civils transport or not. true and reliable obvious-time information should be fittable for passengers before and throughout traveling to possible them to purpose door-to-door travel. they take the most suitable departure time and strecth from the beginning to the end of their trip (pede & agostini, 2007, p. 2). to determine people's perceptions about city transportation and online-based transportation, the researcher will conduct interviews with all related parties, including the community, government, and third parties as city transport operators (yeboah, cottrill, nelson, corsar, markovic, & edwards, 2019). tangerang city people now crave a reliable mode of transport, good quality of service, on time and at affordable costs, especially urban transportation. but based on a survey by the south tangerang transportation service, people who use private vehicles are increasing. in contrast, those who use city transportation are decreasing, plus there are online-based transportation modes as another alternative. figure 1: use of online transportation source: kompas figure 1 presents the community's reasons, with the most percentage being cheap, namely 55.4 percent; it turns out that the security community perception of the usage of urban public transport and online application based transportation in south tangerang rissa hanny1, syafieq fahlevi almassawa2 1,2management department, universitas pamulang, tangerang selatan − indonesia abstract public transportation services in indonesia in general and the city of south tangerang are still low; schedules are unclear, facilities are dirty, unsafe, unprofessional vehicle crews, and fares are not cheap. this study presents the results of a study on the perceptions of the people of south tangerang city towards the use of city transportation and the perceptions of onlinebased transportation. this research is qualitative research with data collection methods using deep interviews or in-depth interviews with parties related to this study, such as urban transportation users and online-based transportation users. interviews are also conducted on other stakeholders such as the government, 'organda,' transportation companies online. in addition to interviews, this research also uses fgd (forum group discussion), carried out with the community and related instant. other information is obtained by researchers from discussion forums of various parties to see what the wider community wants in fulfilling their transportation needs. the result of this research is the perception the community towards urban public transportation is still not good because the service is still bad; because of this, people get another alternative, namely online transportation. keywords community perception; online application-based, transportation jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 29 36 percentage is the lowest, namely 8.2 percent. in comparison, 91.4 percent of respondents have used online transportation; this information illustrates that online transportation is in demand by the public. based on this, how people have enjoyed online transportation services and accepted their existence. transportation has also become an alternative mode of transportation in cities. another interesting thing is that people think that online transportation is cheap, fast, and safe. according to the results of research on 121 samples from https://sharingvision.com/research/ reports in august 2016, that at least 1 week once the online application is often used. figure 2: online transportation usage and applications source: (sharing vision, 2016) figure 2 presents online transportation information and applications received by the public seen from a high percentage of usage, meaning that online transportation has become the new mainstream in indonesia and has had tremendous economic effects. according to the data from department of transportation in south tangerang city. figure 3: choose of transportation mode in south tangerang city (2020) source: author's elaboration (2020) figure 3 presents that 88.52 percent of the people still use private vehicles compared to public transportation. this figure is very crucial because only 3.69 percent use public transportation. transport plays a crucial role in urban development by giving people access to employment, education, markets, recreation, health, and other services and restoring social contact. in the current decade, the role of transportation and population mobility has increased, which is related to economic growth and technological progress. david a. hensher (1998) states that we do not expect that the public transportation system can provide a service level that can attract large numbers of people who now use private cars (burian, zajíčková, ivan, & macků, 2018). it should be necessary to introduce or support policies and find ways to increase the use of public transportation and change negative perceptions about public transportation and attitudes towards public transportation. public transportation must be competitive and meet customer needs and demands. this change is possible through clear definitions that can influence people's choice of transport mode and attitudes towards transport. therefore, it should be obtained and evaluated information about passenger perceptions and attitudes in choosing the mode of transport to be used. many factors determine the transportation behavior and the causes in determining the other modes of transport. even the choice of transport may vary depending on the time, length of trip, and/or destination (chee & fernandez, 2013). to reduce private cars' use, you must know the traveling behavior of transport users, and now private cars are more attractive than public transportation for the usual reasons, namely, speed, comfort, convenience, reliability, freedom, and social status (burian, zajíčková, ivan, & macků, 2018). city transportation has no arrival and departure schedules, such as our city transportation in general and city transportation in south tangerang. there are no route maps, scheduled hours of arrival and departure, and the frequency. only city transport users who have lived in south tangerang for a long time know this because it is based on experience alone. knowledge is obtained from experts in the field of transportation so that they get the information needed. an expert is usually a person who studies transportation and is a transportation expert and can also live in the place that is being researched. meanwhile, public transportation users use public transportation in their daily activities, such as going to work every day. the condition of city transportation is like what happened in mexico jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 29 36 city. it needs management knowledge and knowledge of public transportation. inexorable knowledge is a mixture of experience, value, expertise, contextual information, and enlightenment that can provide a suitable environment and structure for evaluating and combining new information and experiences. pulling data through third parties or crowds of data can be retrieved from crowds where people are waiting for public transportation (cairo, salcedo, & gutierrez-garcia, 2015). this research submits three-question i.e. (1) average how long the system transport takes; (2) average how long the wait is; and (3) how long will it take for the transfer knowledge of experts and users of public transportation. in this study, researchers focused on examining people's perceptions of urban and online-based transportation. by examining people's attitudes, it is hoped that the researcher will know the public's desire to choose the mode of transport that is used daily. the research problems identified include: (1) public perception in determining the mode of transport to be used depends on the services provided by that mode of transport. (2) the low quality of service provided by city transportation in south tangerang creates a bad perception from the public. (3) as a result of this, the community chooses another alternative in online transportation-based transportation to meet their daily travel needs. (4) to overcome these problems, improvement of service quality must be carried out simultaneously by related parties. (5) another done is that is crucial is to evaluate city transport routes that are no longer relevant to the development of south tangerang. (6) consolation at the local government, especially regarding the management of urban transportation, both by the government and by third parties, is related to the route bordering south tangerang. research objectives this research aims to presents the results of a qualitative study of (1) the discovery of the phenomenon of public perceptions about urban transportation and also transportation based on online applications, so that the purpose of this study is to find public perceptions about these two things so that we can find what the community wants in meeting the needs for transportation. (2) construct the phenomenon so that it can find hypotheses and grounded theory. (3) by knowing the public's perceptions, it is hoped that solutions be found for public transportation problems, especially public transportation and online application-based transportation. (4) involve related agencies in this research so that it is hoped that they can work together to produce a mode of transport that is of interest to the public and a transportation system that is useful for the people of tangerang selatan. public perception according to walgito (2000:54), perception makes individuals aware and understands the situation of the individual itself. "perception is an integrated activity. all that is in the individual, such as feelings, experiences, thinking abilities, frames of reference, and other aspects that exist in the individual community, will play a role in that perception. at the same time, society is "a group of people who live in society's social order. society is any group of people who have lived and worked together for a long time so that social unity with certain limits." (agustin & khuzaini, 2017). according to slameto (2010:102), perception is a process that involves the entry of messages or information into the human brain, through human perception, continues to make contact with the environment. this relationship is carried out with the senses, namely the senses of sight, hearing, touch, and smell (agustin & khuzaini, 2017). individuals in society in the form of experiences through their senses that make individuals able to give opinions on something, the opinions of individual opinions combine to become community perceptions. city public transportation city transport operators can be carried out by the government itself or by third parties such as 'organda.' city transportation is part of public transportation which consists of commuter, big bus, small bus. online application-based transportation is 2-wheeled and 4-wheeled private vehicles that operate as public transportation managed via private, this transportation works by using the internet system by entering the web from an online transportation provider, and usually, the customer will automatically become a member of the company. online application based and navigation systems online application-based transportation can be interpreted as an application system in ordering it, a transparent payment system that has been available in the application, the use jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 29 36 my location service, which is supported in the internet system, which makes it easier for motorists to find the location of the customer. the rider's identity is seen clearly in the booking application; the order does not need to look for the rider; open the order, he will find the driver (agustin & khuzaini, 2017). research methods approach, types, and nature of research according to john w. cresswell (2016:152), a qualitative researcher must be mature in identifying and identifying the research as the initial foundation to be carried out. (agustin & khuzaini, 2017). the qualitative research method is a research method based on the philosophy of positives, used to observe the natural conditions of the object, where the researcher is the key instrument (sugiyono, 2017, p. 15). this research conduct in the city of south tangerang because it is an area that is rapidly developing into a dense city, becoming a residential destination for the community. qualitative research procedures can generate insights based on evaluations from customers and perceptions of city transportation and online application-based transportation. population and research sample a stratified sample is used to ensure the balance between users of city transportation and users of online transportation-based applications from 18 until 70 years old and with the composition of men and women almost the same. also, participants must live in different geographic locations within the city. based on transportation users, three priority groups, i.e., city transport users, namely people who always use city transportation every day, online application-based transportation users, namely people who always use online application-based transportation for trips every day; and second user, namely people who use both modes of transportation on their way every day. collecting data methods this study used a semi-structured interview method based on a predetermined interview guide and lasted an average of 30 minutes. the focus of the interview is how the perception of the use of public transportation and online application-based transportation. through this interview, the researcher will get information about these perceptions. interviews were conducted on the subject, namely users of city transportation, online application-based transportation, experts in the field of transportation, and related parties such as the government and city transport operators such as 'organda.' observations were also carried out to see directly into the field what is actually happening concerning public transportation and online application-based transportation— observations in several places representing areas in the city of south tangerang. observation time must be adjusted to the community's daily activities, whether it is the time to go to work, return to work, take a rest, or vacation time. this observation is carried out in crowded places, such as terminals or bus stops; observations can be made by a third party so that the observation area is wider and the results are maximized. technique in data analysis data analysis is the process of systematically searching and arranging data obtained from interviews, observations, notes in the field, and documentation, by organizing data into categories, describing the number of units, synthesizing, arranging in patterns, choosing which ones are important and which will be. learned, and make conclusions easily understood by oneself and others (moleong, 2014). qualitative data analysis is inductive based on the data obtained, and then the data is searched repeatedly so that it concluded whether the data collected, which then performed the triangulation technique to make conclusion results. results and discussion respondent characteristics the research object is users involved in public transportation and private car users; the respondents of this study were eight people. the characteristics are divided by two people based on the age category, namely 15 21 years old, 22 30 years old, 31 40 years old, and more than 40 years. in comparison, the occupation is also divided by two people, each based on the category, namely student/college student, employees/civil servants, mistress, and entrepreneur. table 1. characteristics of respondents by age and occupation jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 29 36 appellation: age amount: 8 15 years 21 years 2 22 years 30 years 2 31 years 40 years 2 > 40 years 2 appellation: occupating amount: 8 student/college student 2 employees / civil servants 2 mistress 2 entrepreneur 2 source: data processing (2020) forum group discussion (fgd) are conducted with related agencies, resource persons, user communities, online transportation players, and public transportation actors; fgd participants are: (1) head of the development and transportation service section of the south tangerang city transportation service, (2) section head public transportation development, facilities and infrastructure of the south tangerang city transportation service, and (3) gojek drivers. discussions this study aims to determine people's perceptions of urban public transportation and online transportation based on interviews and fgds with user communities, the government, and all stakeholders who all argue that public transportation facilities and services in the city of south tangerang are still bad, things that need to be improved are the facilities of transportation. urban public or 'angkot' is still of great concern such as old and inadequate fleets, routes that adjusted, schedules, vehicle crews who have to improve their services and security using the 'angkot' itself. now that people rely on online transportation to meet public transportation needs, people choose the easy, fast, and affordable ones. there are still many people who choose to use private vehicles, both cars, and motorbikes, even though the government and the private sector have tried to facilitate free buses to be able to help people use public transportation comfortably, especially 'angkot.' the results of this study indicate that there is a desire of the community to use public transportation and improved facilities and services so that attitudes. the community that has been negative towards public transportation can change by trying to use it and starting to reduce private vehicles' use. the use of online transportation is constructive for community activities because it is straightforward with a smart-phone application. conclusion based on the results of interviews, forum group discussion, the discussion of the previous chapter, the conclusions of this study are: (1) the community's attitude towards public transportation, especially city transportation, is not good because the facilities are not good and inadequate, such as dirty, hot, narrow, careless vehicle crews, long-tapping, and routes that still use old routes. (2) people still rely on private vehicles such as cars and motorbikes because they can better manage the time they want, are comfortable and safe; also public transportation is good. the facilities are people who want to use public transportation. (3) people rely on online transportation, especially online motorcycle taxis, because they are easy to access, fast, and cheap. (4) the government has made efforts to overcome public transportation in south tangerang, such as providing 'trans anggrek' buses for free, but still, not many people know, and not many people want to use this transportation nodes cars higher social status than using public transportation. (5) the private sector has also participated in solving public transportation by providing bsd link buses for free; however, the 'trans anggrek bsd link' bus is also still empty of passengers even though it has been operating for 2 years. suggestions for this research are: (1) the south tangerang city government must make a new urban transportation plan, both from facilities, routes, and operating systems, so that people are interested in using public transportation. the south tangerang city government can see and imitate the urban transportation system in the city of jakarta, which is getting better now. (2) the jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 29 36 government must also conduct a survey regarding the needs of south tangerang city people for public transportation. the survey must be comprehensive, detailed, and involve all societal levels so that a modern, integrated and affordable transportation system will be available. (3) the government must make regulations on public transportation and online transportation so that the two transportation facilities can serve the community together, but there are rivalries. references agustin, a., & khuzaini. (2017). persepsi masyarakat terhadap penggunaan transportasi online (go-jek) di surabaya. jurnal ilmu dan riset manajemen, 6(9), 1-18. androniceanu, a. (2016). the quality of the urban transport in bucharest and how to improve it in accordance with the expectations of the citizens. theoretical and empirical researches in urban management, 11(1), 5-18. https://www.jstor.org/stable/10.2307/24 873546 burian, j., zajíčková, l., ivan, i., & macků, k. (2018). attitudes and motivation to use public or individual transport: a case study of two middle-sized cities. social sciences, 7(6), 1-25. https://doi.org/10.3390/socsci7060083 cairo, o., salcedo, j. s., & gutierrez-garcia, j. o. (2015). crowdsourcing information for knowledge-based design of routes for unscheduled public transport trips. journal of knowledge management, 19(3), 626-640. https://doi.org/10.1108/jkm-02-20150053 chee, w. l., & fernandez, j. l. (2013). factors that influence the choice of mode of transport in penang: a preliminary analysis. in m. n. abu bakar (ed.), psu-usm international conference on humanities and social sciences. 91, pp. 120-127. elsevier ltd. https://doi.org/10.1016/j.sbspro.2013.0 8.409 creswell, j. w. (2016). research design : pendekatan metode kualitatif,. kuantitatif dan campuran (edisi 4, cetakan kesatu). yogyakarta: pustaka belajar. hensher, d. a. (1998). the imbalance between car and public transport use in urban australia: why does it exist? transport policy, 5(4), 193-204. https://doi.org/10.1016/s0967070x(98)00022-5 moleong, l. j. (2014). metodologi penelitian kualitatif (revisi ed.). bandung: remaja rosdakarya. pede, g., & agostini, a. (2007). innovative information systems for public transport. szentendre, hungary: the regional environmental centerfor central and eastern europe (rec). available at: https://civitas.eu/sites/default/files/civita s_ii_policy_advice_notes_09_public_tr ansport_information_0.pdf sani, a., abdul rahman, t. k., subiyakto, a., & wiliani, n. (2019). combining statistical and interpretative analyses for testing readiness and it adoption questionnaire. proceedings of the 1st seminar and workshop on research design, for education, social science, arts, and humanities. surakarta: european alliance for innovation. https://doi.org/10.4108/eai.27-42019.2286808 setda kota tangerang selatan. (2017). review renstra tahun 2016-2021. bagian organisasi dan peningkatan kinerja aparatur. tangerang selatan: dinas perhubungan kota tangerang selatan. available at: https://esakip.tangerangselatankota.go.id/asset s/file/renstra/34-renstra-2020.pdf sharing vision. (2016). transportasi online sudah menjadi mainstream baru di indonesia dan menimbulkan efek ekonomi yang luar biasa. retrieved september 2020, from https://sharingvision.com/research/ slameto. (2010). persepsi masyarakat (revisi ed.). jakarta: pt. rineka cipta. sugiyono. (2017). metode penelitian evaluasi: pendekatan kuantitatif, kualitatif, dan kombinasi. bandung: cv. alfabeta. walgito, b. (2000). bimbingan dan konseling (studi dan karier). yogyakarta: andi offset. yeboah, g., cottrill, c. d., nelson, j. d., corsar, d., markovic, m., & edwards, p. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 29 36 (2019). understanding factors influencing public transport passengers’ pre-travel information-seeking behaviour. public transport, 11, 135– 158. https://doi.org/10.1007/s12469019-00198-w jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 3, 2022, pp. 35-43 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : dprihandoko@binus.ac.id received: 9 august 2022 accepted: 19 august 2022 published: 1 sep 2022 introduction pt x has two types of business activities, namely b2b and b2c activities. for b2c, it is meant to be a daily cash flow, and for the company's operating costs, customers of b2c are mainly msmes, end users, and several projects or events that require wholesale suppliers. for b2b, pt x has 3 customers: pt a, pt b, and pt c (as shown in fig. 1). each customer has a different warehouse. however, all these 3 customers have one thing in common: they do not tolerate delivery delays. based on the data received from the company, the order processing process for the period 2020-2021: • delivery to pt a of 24 shipments, 19 delayed with a delay of 5-47 days. • delivery to pt b of 7 shipments; 5 were delayed with a delay of 38-83 days. moreover, that is a serious issue that companies need to address soon if they want their business to thrive and be sustainable. it should be noted that the company's customer does not specify a maximum delay limit, which means there is no tolerance for delays. this zero tolerance is enforced because the items shipped from pt x are food and beverage ingredients that are an important part of the customer's business. like pt a issuing orders to feed its employees in jakarta and mines in papua and kalimantan. then pt b for later resale at several airports in indonesia. at the same time, pt c fills the coop store in their office setting. many factors affect delivery delays, as was the case with pt x, from internal factors such as pt x only has 1 unit of the operational truck to send goods to customers and is also used to scout for goods or goods to factories or suppliers. another internal factor is if employees are exposed to the covid-19 virus, which requires a quarantine of at least 14 days, this is enough to hamper pt x's business processes. from the 42 total orders placed by pt x with suppliers in the form of factories or distributors for may 2020 to june 2021, 11 orders experienced sourcing delays, and 31 other orders were shipped on time by the suppliers. to minimize delivery delays to b2b customers by reducing lead time in delivering goods to pt x's customers, this can be done using several methods such as value stream mapping, process diagram mapping, and time mapping functions. from several options, the author chooses to use the value stream mapping method because, in this case, it is necessary to describe the flow of business activities in detail, and it is necessary to separate valueadded activities and non-value-added minimizing waste to reduce lead time delivery at pt. x through value stream mapping method danang prihandoko1, adhika a siwabessy2, sultan ravi alam3 123management department, bbs-up, bina nusantara university, jakarta, indonesia abstract the purpose of this study is to minimize waste in order to reduce lead time delivery at pt x. the method that the author uses in this research is a quantitative method with data analysis techniques using value stream mapping and seven waste analysis. the data collection technique that the author uses is interviews, observations, and company documents. the results of this study succeeded in reducing the lead time from 11 days, 31 hours 35 minutes, to 10 days, 23 hours 35 minutes if the operational unit is on standby. furthermore, if the operational unit is on standby after 17 days 28 hours 35 minutes, it becomes 10 days 29 hours 35 minutes. keywords lead time reduction; seven waste analysis; value stream mapping; waste elimination. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 35-43 activities so that the authors can be more precise in finding waste. efforts are made to approach the lean concept, and also value stream mapping has been proven to be successfully demonstrated in all industries (shou et al., 2017). lean manufacturing is a way to streamline and increase effectiveness by developing methods to increase production and minimize waste developed by toyota after world war ii (nadeem et al., 2017). the application of lean will use the seven waste analysis methods to identify existing waste; in addition to using the seven waste analysis methods, the author will also use the value stream mapping method because it reduces waste. value stream mapping is a series of activities that contain value-added and non-value-added activities needed to provide a product ordered by customers through the mainstream related to the entire supply chain (md. abu sayid mia, 2017). so it must be understood in advance that the entire business activity from the beginning to the end of the business process takes place so that it is found which processes have a waste of time and can still be reduced to make it even shorter. due to high customer expectations, companies must adapt quickly to satisfy customers (sudhakara et al., 2020). the purpose of this research is to make business processes at pt x more optimal to increase customer satisfaction owned by the company so that it can run a sustainable business as expected, namely to satisfy consumers, one of which is by sending orders on time. literature review supply chain management supply chain management describes all coordination in the supply chain, starting from raw materials to customers' hands; thus, supply chain management includes suppliers, service providers, distributors, and customers (heizer et al., n.d., 2017). so, in other words, supply chain management is planning that aims to make the fulfillment of customer orders more effective and efficient. lean operation a lean operation, in general, can be explained as a japanese concept of dynamics in manufacturing and is widely practiced by many organizations and companies to reduce waste, increase productivity, and overcome environmental impacts; this effort has grown over the last few decades (purushothaman et al., 2020 ). in other studies, lean can be defined as a system that eliminates waste and focuses on the company's goal of increasing customer satisfaction (heizer et al., n.d., 2017). in essence, companies or organizations use lean to reduce waste in their activities and to improve performance (mardin et al., 2019). furthermore, lean also aims to provide customers with a zero-waste process with continuous performance improvement (heizer et al., n.d., 2017). lean operation is quite easy for employees to solve a problem because lean is a human-based system concept that makes it easier for employees to solve problems in their workplace (mardin et al., 2019). lead time lead time cannot be promised due to uncertainty in procurement, production, transportation, and other unforeseen events that cause uncontrollable time, leading to customer dissatisfaction (stefan et al., 2021). lead time is also one of the important aspects of a company's business processes because it affects the effectiveness of all of the company's business processes, so the right decision must be made in selecting the lead time (negi & wood, 2019). the length of the lead time also affects customer satisfaction because if it is not minimized, it can result in delays in delivery and others. however, the lead time can still be reduced to several parts to be more efficient and effective. seven waste analysis lean has the aim of perfecting production activities to be efficient and effective, where there is no waste and non-value added activity, which means that every activity or product cannot provide value; the product or activity can be said to be waste (heizer et al., n.d., 2017 ). in their book, jay hazer and berry r have summarized a concept from taichi ohno, namely the concept of seven waste analysis which contains: waste of overproduction: a condition where it produces more than the number of customer orders which is one of the causes of the bullwhip effect. waste of queues: waiting time that does not generate values or unnecessary waiting time. waste of transportation: the process of moving goods between warehouses or jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 35-43 factories with inefficient routes that can cause wasting time. waste of inventory: storage of excessive production raw materials or storage of finished products that can cause waste. waste of motion: unnecessary mobilization of goods or employees can also cause waste. waste of over processing: activities carried out in the production process but not really needed, or non-value-added activities will also cause waste. waste of defective product: products that are rejected or returned either because of wrong delivery, damage, defects, or warranty claims can result in double work, which is waste. seven waste analysis is applied because eliminating waste can impact the use of resources more effectively and efficiently to make business processes more optimal (widodo et al., 2020). if waste elimination can be carried out continuously, the company will be able to maintain its profits (heizer et al., n.d., 2017). value stream mapping value stream mapping has been widely defined by experts in recent times who say that value stream mapping is a way to visualize an information flow from a business process (johari et al., 2018). value stream mapping also helps management in getting information about the company's business flow and also getting information about nonvalue added activities and their effects on the company's business processes (johari et al., 2018). in one study, it was stated that lean manufacturing has tools that are commonly used to help identify waste and find solutions for that waste. the goal is to reduce or even eliminate non-value-added activities so that business processes are more effective and efficient and make customers feel satisfied with what they get (dinis-carvalho et al., 2019). in another study, it was also explained that value stream mapping is a tool to help understand processes and provide added value to help companies reduce waste (heizer et al., n.d., 2017). value stream mapping (fig. 2) uses a series of streams with image symbols that are used to improve the visualization of the flow and also highlight the waste contained in nonvalue added activities after being separated from value added activities (seth et al., 2017). fishbone chart a fishbone chart is an analysis shaped like a fishbone that calculates the factors that affect the quality of a product, such as humans or employees, machines, materials, processes, and the environment (sui et al., 2018). after the fishbone chart has been filled in and refined, the researcher can systematically summarize or conclude the factors that influence an event and propose preventive measures. the steps for improving the fishbone chart in the journal from (sui et al., 2018) are as follows: survey: to understand comprehensively and prepare accurate charts for analysis. troubleshooting: the next survey results are described using a fishbone chart. cause analysis: classify the data according to the importance of the survey and according to the group of reasons. research methods the method used in this study is a quantitative research method. the type of research that will be used in this research is a case study that aims to find out what wastes occur in business processes at pt x that cause delays in sending orders to company customers. this study uses cross-sectional dimensions. the first step is to map the business processes studied using the value stream mapping method to separate value-added and non-value-added activities from determining which parts can be optimized. the next step is categorizing the waste contained in the business process into 7 waste analyses according to their respective categories. next, find a solution to overcome the waste and minimize and replace it with value-added activity; it will be able to reduce the current lead time so that it can send orders to customers more on time. results and discussion in the current value stream mapping of pt x (fig. 3 and fig. 4), if the operational unit is on standby, there is an average lead time of 11 days and 31 hours 35 minutes. furthermore, it is broken down into valueadded activities 7 days, 23 hours, and nonvalue-added activities 4 days, 8 hours 35 minutes, such as travel, non-work hours, data transmission, information delivery, moving goods, and preparation for the next series. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 35-43 efficiency is 64.4%. in pt x's business activities, the purchasing department of the operational division must also go to supermarkets to complete goods that are lacking from vendors to complete ordered goods that vendors do not sell. furthermore, suppose the operational unit needs to be on standby. in that case, it has a total lead time of 17 days 28 hours 25 minutes, which is then divided into 2 groups, namely the value-added activity of 7 days 23 hours and non-value-added activity of 10 days 5 hours 25 minutes, different from when the standby unit here has an efficiency level of only 43.76%. after identifying the waste in the company's business flow and using a fishbone diagram (tabel. 2), a value stream mapping containing the business flow has been optimized by reducing the identified waste. it can be seen that there are several changes in value-added activities and non-value-added activities, which is a total of 10 days 23 hours 35 minutes which means 1 day 8 hours down from the previous total lead time. the total time is divided into 2, namely 7 days, 19 hours as a value-added activity, and 3 days 4 hours 35 minutes as a non-value-added activity. the level of business process efficiency also increases to 70.97%. in the value stream mapping from the company after being optimized (fig. 5 and fig. 6), if the operational unit is off standby, there is a considerable change in the total lead time. with a total lead time of 10 days, 29 hours 35 minutes, divided into 7 days, 21 hours for value-added activities, and 3 days 8 hours 35 minutes for non-value-added activities. this figure is certainly much reduced from the previous one, which had a total lead time of 17 days, 28 hours, and 35 minutes; besides that, the efficiency level also increased to 70.12% after being optimized. the reduction in nonvalue-added activity occurs when the company hires a freight forwarder to deliver goods to the customer instead of waiting for the operational unit to arrive and be available. conclusion seven waste that occurs in pt x's business processes is waste of overproduction, waste of queues, waste of transportation, waste of inventory, waste of motion, waste of processing, and waste of defective products. moreover, there are several identified wastes, namely: a. waste of queues: • queuing at the cashier of a store or supermarket. • waiting for the president director's response to approve. • waiting for answers and confirmation from vendors and or suppliers. • waiting for their turn to unload at the customer's place. b. waste of transportation: • not the fastest route. • routes to supermarkets or shops are random and unplanned, so they are back and forth and ineffective. c. waste of inventory: goods are unloaded and arranged in front of the warehouse. d. waste of over-processing: goods that have been unloaded and arranged in front of the warehouse are put into the warehouse and rearranged, e. waste of defective products: • goods from vendors or suppliers that are not eligible will be returned. • the customer will return items that are not eligible. to reduce lead time on delivery, the author optimizes business processes by eliminating waste that can be eliminated and cutting nonvalue added activities in pt x's business processes. and the lead time in business processes when the standby unit is reduced from the previous 11 days 31 hours 35 minutes, to 10 day 23 hours 35 minutes. and if the unit is not on standby before 17 days 28 hours 35 minutes, it becomes 10 days 29 hours 35 minutes. this is supported by the results of the calculation of the lead time efficiency which was originally in the initial state when standby was only 64.4% and increased in the future state to 70.97% and in the initial condition of the non-standby unit there was also an increase which previously only increased by 43.76%. to 70.97% in the future state. references dinis-carvalho, j., guimaraes, l., sousa, r. m., & leao, c. p. 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https://doi.org/10.1108/tqm-04-2020-0072 jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 35-43 list of tables table 1. value stream mapping symbol table 2. breakdown waste with fishbone diagram flow fishbone diagram waste of queues : queue at the supermarket waste of queues : waiting for unloading symbol explanation information delivered directly information submitted online suppliers who supply the goods needed business processes that occur internally in the company such as departments or products delivery of goods from the supplier or delivery to the customer movement of goods or products within the company first in first out symbol delivery from supplier or to customer the go see symbol that occurs when checking the place to write the time on the top line is value added activity and the bottom line is non value added activity jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 35-43 pt a 64% pt b 35% pt c 1% pt a pt b pt c waste of transportation : go to supermarket waste of transportation : deliver goods to customers waste of inventory : arrange goods in warehouse waste of defective product : checking by qc waste of queues : waiting for operational unit list of figures figure 1. b2b customer contribution to pt x . revenue source : internal data pt. x jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 35-43 figure 2. values stream mapping framework figure 3. current values stream mapping unit standby figure 4. current values stream mapping unit not standby figure 5. future values stream mapping unit standby jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 35-43 figure 6. future values stream mapping unit not standby correspondence to : helenaduamea@gmail.com received: 24 september 2021 accepted: 20 november 2021 published: 30 december 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 4, 2021, pp. 29 37 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction one of the reasons for the rising number of fraud cases and fraudulent investment offers to the general public is a lack of investment understanding. many consumers are duped by investments with enticing interest profit prospects because they lack insight and understanding about investing, hazards, and legal investment methods. the entire loss due to unlawful investments in the last ten years (2008-2018) is estimated to be 88.8 trillion rupiahs, according to the ojk. customers from ntt were responsible for 23% of the total. between 2014 and 2018, the ntt provincial investment alert task force shut down 14 unlawful investment firms in ntt, including the mitra tiara financial credit institution in larantuka, the multipurpose cooperative (ksu) in maumere, and amanda permata in waingapu, among others. after approximately eight months in operation, dynasty sejahtera in ende was declared illegal in july 2020. there are still illegal investment companies functioning in ntt today, and there are still people who believe in them. fraudulent investors continue to employ the same methodology as before to entice individuals to engage in their schemes. without needing to sell the product, investors guarantee to double the profits that are given every day. furthermore, the capital required is quite little. customers were initially relatively easy to obtain the promised investment benefits, and this became such a strong draw that many people sold their possessions in exchange for a free registration fee. investors also employ names that sound authoritative, such as the national commission for the rescue of state assets (komnas pan), or names that have a fantastic sound, such as big data international group (bdig). they also identify their investments with well-known individuals, as though these individuals were also their clients. investors frequently flee when a huge number of consumers join and a large sum of money is raised. aside from financial literacy, another element that might influence the type of investment is risk tolerance, or the amount to which investors are willing to accept the negative consequences of their investment decisions (khairiyati & krisnawati, 2019). financial literacy, overconfidence, risk tolerance and public investment decision of ende residents, east nusa tenggara province of indonesia maria helena carolinda dua mea1, hyronimus se2 1,2 management study program, faculty of economics, flores university, indonesia abstract the goal of this research was to see how financial literacy, risk tolerance, and overconfidence influenced public investment decisions in the ende region. this is a quantitative study. the research subjects are located in ende's downtown area, specifically mautapaga, onekore, paupire, and potulando, with a total of 80 respondents. the respondents were given questionnaires to fill out as part of the primary data collection process. the data was evaluated using smartpls to determine the validity and reliability of the data, and then a hypothesis test was performed to determine the impact of each variable on investment decisions and how much three variables affect public investment decisions in ende. the level of financial literacy affects significantly on public investment decisions by 36.9%, by overconfidence with 14.9%, and risk tolerance or consideration of the risk that will be accepted by investors affects public investment decisions by 29.3% financial literacy, overconfidence, and risk tolerance all have a 35% impact on people's investment decisions, according to the simultaneous test, while the other 65% is explained by other characteristics. keywords financial literacy; overconfidence; risk tolerance; investment decisions; ende jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 overconfidence can also impact public investment decisions. overconfidence causes investors to overestimate their expertise and underestimate their predictions since they have overstated their talents (nofsinger, 2005 in (kartini & nugraha, 2015) overconfidence will also influence risk-taking behavior, in which rational investors want to maximize profits while limiting risk (nofsinger, 2005 in (akmal & saputra, 2016) appropriate investment knowledge about an investment instrument can assist an investor in making the best investment selections, allowing them to maximize their rate of return or return on investment and choose alternative forms of investments that provide sufficient returns. the purpose of research is to determine the impact of financial literacy, risk tolerance, and overconfidence among ende city residents on their investing decisions. in this investigation, four hypotheses must be proven: h1.the citizens of ende city's investing decisions are influenced by their level of financial literacy. h2.ende city residents' investing decisions are influenced by their overconfidence. h3. the citizens of ende city's investment decisions are influenced by their risk tolerance. h4. the residents of ende city's investment decisions are influenced by their financial literacy, risk tolerance, and overconfidence all at the same time. as a result, the following is the research model provided in this study: fig.1 research model research methods this is a quantitative study. the research takes place in the city of ende, with the inhabitants of ende as the subject of study. in the city of ende, there are four sub-districts: north ende district, east ende district, middle ende district, and south ende district. ende regency has a population of 274,599 people in 2020. (based on the record of the central statistics agency of ende regency). the researchers limited the sampling area to four areas in the downtown area of ende, namely mautapaga, onekore, paupire, and potulando, due to the vast population. the sample is chosen using a purposeful random selection method, to find respondents in the urban community who are over 35 years old and have (any) investments. the age of the respondent is determined on the assumption that at that age, people are generally financially stable and have at least one form of investment, such as savings, deposits, property, gold, and other investments. because the overall population of over 35-year-olds with investments in the four cities listed above is unknown, the researchers limited the number of respondents per area to 20, resulting in a total of 80 respondents who will be sampled. the researchers collected primary data by delivering questionnaires to respondents based on the criteria they established. the responses to the statement items in the survey were graded on a likert scale of 1 to 5. secondary data is gathered through book review and observation. table 1 summarizes the variables and indicators. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 table 1. variables and their indicators the data will be analyzed using smartpls to determine its validity and reliability, followed by hypothesis testing to determine the effect of each variable on investment decisions, and finally, a simultaneous test to determine which variables have the greatest influence on ende city residents' investment decisions. results and discussion validity and reliability table 2. validity and reliability test results the cronbach alpha, rho a, and composite reliability values of each of these research variables are as follows: investment decision has a composite reliability value of 0.926 > cronbach alpha 0.5, financial literacy has a cr value of 0.843> cronbach alpha 0.5, overconfidence and risk tolerance variables have a value of 1.0 > cronbach alpha 0.5, overconfidence and risk tolerance variables have a value of 1.0 > thus, by looking at the goodness of fit value of the study model, it can be inferred that the data has met the valid and reliable standards, allowing it to be continued. hypothesis test fig.2 hypothesis test with smartpls the effect of exogenous variables on endogenous variables was investigated using hypothesis testing. investment decisions are the exogenous variables in this study, whereas financial literacy, overconfidence, and risk tolerance are the endogenous variables. the original sample value, sample mean, standard deviation, t-statistics, and pvalue are used to test the hypothesis. the following are the findings of hypothesis testing with smart pls: bootstrapping path coefficient results table 3. path coefficient results financial literacy's impact on investment decisions with a t value of 2,962 where t count > t table (1.991673) and a significance or p-value of 0.003 < 0.05 on investment decisions, path analysis demonstrates that the financial literacy variable affects public investment decisions. the understanding of financial literacy has a considerable impact on investing decisions, influencing 36.9% of them. as a result, the first hypothesis, namely, that no variable indikator measurement scale basic finance knowledge savings and borrowing insurance investment (chen and volpe (in fitriarianti, 2013) risk seeker risk neutral risk averter halim (in pradikasari & isbanah, 2018) overestimate underestimate (nofsinger in kartini and nugraha, 2015) investment security investment risk investment return time value of money and liquidity (putri & rahyuda in khairiyati & krisnaw ati, 2019) 3 overconfidence likert scale 4 investment decision likert scale financial literacy likert scale1 2 risk tolerance likert scale jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 financial literacy influences the inhabitants of ende city's investment decisions, has been confirmed and accepted. to avoid financial troubles, everyone needs to have a high level of financial literacy. financial issues are not always caused by a lack of income; they can also develop as a result of a financial management error, such as the misuse of credit, a lack of financial planning, or a lack of savings. as a result, possessing a high level of financial literacy is critical to living a rich life (akmal & saputra, 2016). financial literacy is defined by huston (2010, in (akmal & saputra, 2016) as "the ability to read, analyze, manage, and communicate about personal financial conditions that affect material well-being, which includes the ability to distinguish financial choices, discuss financial issues, plan for the future, and respond competently to life events that affect day-to-day financial decisions, including general economic events." according to byrne (akmal & saputra, 2016), a lack of financial awareness will lead to poor financial planning and a bias in achieving welfare when one's working years are over. budgeting, savings, loans, and investments are the four most common aspects of financial literacy, according to remund (akmal & saputra, 2016). in the meanwhile, the jumpstart coalition (akmal & saputra, 2016) disseminates financial information on themes such as income, money management, saves and investment, and loans and credit. financial literacy is defined by chen and volpe (fitriarianti, 2013) as having four indicators: a) basic financial understanding, b) savings and borrowing, and c) protection or insurance (insurance), d) financial investment. previous research (khairiyati & krisnawati, 2019; mertha dewi & purbawangsa, 2018; putri & hamidi, 2019; safryani et al., 2020; upadana & herawati, 2020) found that financial literacy influences people's investment decisions, regardless of profession. an investor's knowledge of finance or investment is essential. a basic understanding of deposit or savings and loan types, as well as investment interest rates and returns on investment capital, can impact an investor's judgment about which investments to make. investors who understand this fundamental understanding have a lesser risk of losing money and falling victim to investment fraud because they are less likely to be enticed by numerous investment offerings that appear appealing and beneficial at first sight but turn out to be the exact opposite. investors' educational attainment does not always imply that they have a sufficient level of financial literacy. according to the research team's survey findings, most victims of fake investment have a bachelor's degree and work as government or private employees, while there are also victims of fraudulent investment who have less education and work in a variety of occupations. the effect of overconfidence on investment decisions with a t-count value of 2.532, which is bigger than the t-table (1.991673) but a significant value or p-value of 0.272> 0.05 on investment decisions, path analysis demonstrates that overconfidence affects investment decisions. overconfidence influences investing decisions by 14.9 percent, according to path analysis, but the changes or consequences are not significant. as a result, the second hypothesis, that overconfidence affects people's investment decisions, has been confirmed and is acceptable. overconfidence is the sensation of being overconfident. overconfidence causes investors to overestimate their knowledge and underestimate their predictions because they overestimate their talents (nofsinger, 2003 in (kartini & nugraha, 2015) overconfidence can also alter risk-taking behavior, in which rational investors want to maximize profits while avoiding risk (nofsinger, (kartini & nugraha, 2015). overconfidence can affect public investment decisions, according to studies (addinpujoartanto & darmawan, 2020; tanusdjaja, 2018; venti laksita bangun, 2020) overconfidence causes investors or the general public to have expectations about the type of investment to make. in this study, we discovered that the overconfidence variable has an impact on people's investment decisions, particularly when it comes to unlawful investments. for a modest amount of money, illegal investing offers an inflated rate of return on capital. this unlawful investing approach aims to target overconfident investors by presenting logical returns projections, allowing them to feel confident in adopting this sort of investment and promoting it to others. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 risk tolerance's impact on investment decisions with a t-count value of 2.532 > t table (1.991673) and a significance or p-value of 0.012 < 0.05 on investment decisions, path analysis demonstrates that risk tolerance affects people's investment decisions. this suggests that risk tolerance, expressed as a percentage, or assessment of the risk that will be accepted by investors, is influenced by 29.3 and has a considerable impact on investing decisions. as a result, the research's third hypothesis, that risk tolerance influences public investment decisions, has been verified and accepted. the willingness of investors to take the risk when making investments is referred to as risk tolerance (budiarto, 2005 in (pradikasari & isbanah, 2018) according to chavali and mohanraj's research (pradikasari & isbanah, 2018), risk tolerance and investment decisions have a favorable association. a) risk seekers are investors who want more risk because they understand that risk and return are positively associated, b) risk neutral are investors who are flexible and cautious in making investment decisions, according to halim in (pradikasari & isbanah, 2018) c) investors who choose to avoid investment risk are known as risk averters. according to studies (anggirani, 2017; bahri, 2018; budiarto, 2017; ni putu priscilia kartika dewi & krisnawati, 2020; wardani & lutfi, 2019) the risk tolerance factor or tolerance for investment risk might impact the public's or investors' investment decisions. the impact of financial literacy, overconfidence, and risk tolerance on the city of ende's investment decisions table 4. simultaneous test results the simultaneous test demonstrates that financial literacy, overconfidence, and risk tolerance variables can explain 35 percent of the investment choice variable, while other variables can explain 65 percent. the investment decision process, according to tandelilin and herlianto in (khairiyati & krisnawati, 2019), is a continuous decision process that proceeds until the optimum investment option is made. the fundamental in the investment decision process, according to tandelilin (khairiyati & krisnawati, 2019), is understanding the relationship between projected return and risk of an investment. the link between risk and expected return on investment is unidirectional and linear, which means that the higher the expected return, the higher the level of risk that must be taken into account. because of such relationships, not all investors will solely invest in assets with the best rate of return. aside from looking for high returns, investors must also assess the level of risk they are willing to take. investment decisions are influenced by five factors: investment security, investment risk, investment returns, time value of money, and liquidity levels (putri & rahyuda in 2008 in (khairiyati & krisnawati, 2019). the findings of this study also support previous research (anggirani, 2017; khairiyati & krisnawati, 2019; ni putu priscilia kartika dewi & krisnawati, 2020; venti laksita bangun, 2020; wardani & lutfi, 2019), which found that several variables, including financial literacy, overconfidence and risk tolerance, can influence public investment decisions. as a result, the fourth hypothesis, namely financial literacy, overconfidence, and risk tolerance, has a concurrent effect on investment decisions in ende city residents, which has been confirmed and accepted. conclusion one of the reasons for the rising number of fraud cases and fraudulent investment offers to the general public is a lack of investment understanding. many people are fooled by investments by providing unfair interest profits and unclear investment management to those who lack insight and information about investment, hazards, and legal investment procedures. aside from financial literacy, another element that might influence the type of investment is risk tolerance or the extent to which investors are willing to accept the negative consequences of their investing decisions. the overconfidence factor can also impact public investment decisions. overconfidence causes investors to overestimate their expertise and underestimate the predictions jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 they make because they overestimate their talents. future research may be undertaken to see how additional characteristics, such as gender, income, employment, or any other possible variables supported by past research, can influence people's investment decision-making. thank you very much to: kemenristek dikbud, who funded this research in the novice lecturer research scheme for the fiscal year 2021. references addinpujoartanto, n. a., & darmawan, s. (2020). pengaruh overconfidence, regret aversion, loss aversion, dan herding bias terhadap keputusan investasi di indonesia. jurnal riset ekonomi dan bisnis. https://doi.org/10.26623/jreb.v13i3.2863 akmal, h., & saputra, y. e. k. a. (2016). analisis tingkat literasi keuangan. jebi (jurnal ekonomi dan bisnis islam). anggirani, n. (2017). pengaruh risk tolerance, overconfidence, dan literasi keuangan terhadap pengambilan keputusan investasi masyarakat surabaya. eprints.perbanas.ac.id. bahri, m. s. (2018). pengaruh risk tolerance , risk perception dan kecerdasan spiritual terhadap keputusan investasi. eprints.perbanas.ac.id. budiarto, a. (2017). pengaruh financial literacy, overconfidence, regret aversion bias, danrisk tolerance terhadap keputusan investasi (studi pada investor pt. sucorinvest central gani galeri investasi bei universitas negeri surabaya). jurnal ilmu manajemen (jim). fitriarianti, b. (2013). pengaruh literasi keuangan, perilaku keuangan dan pendapatan terhadap keputusan berinvestasi. journal of petrology. kartini, k., & nugraha, n. f. (2015). pengaruh illusions of control, overconfidence dan emotion terhadap pengambilan keputusan investasi pada investor di yogyakarta. ajie. https://doi.org/10.20885/ajie.vol4.iss2.ar t6 khairiyati, c., & krisnawati, a. (2019). analisis pengaruh literasi keuangan terhadap keputusan investasi pada masyarakat kota bandung. jurnal manajemen dan bisnis. mertha dewi, i., & purbawangsa, i. b. a. (2018). pengaruh literasi keuangan, pendapatan serta masa bekerja terhadap perilaku keputusan investasi. e-jurnal ekonomi dan bisnis universitas udayana. https://doi.org/10.24843/eeb.2018.v07.i 07.p04 ni putu priscilia kartika dewi, & krisnawati, a. (2020). pengaruh financial literacy, risk tolerance dan overconfidence terhadap pengambilan keputusan investasi pada usia produktif di kota bandung. jurnal mitra manajemen. https://doi.org/10.52160/ejmm.v4i2.344 pradikasari, e., & isbanah, y. (2018). pengaruh financial literacy, illusion of control, overconfidence, risk tolerance, dan risk perception terhadap keputusan investasi pada mahasiswa di kota surabaya. jurnal ilmu manajemen (jim). putri, wilantika w., & hamidi, m. (2019). pengaruh literasi keuangan, efikasi keuangan, dan faktor demografi terhadap pengambilan keputusan investasi (studi kasus pada mahasiswa magister manajemen fakultas ekonomi universitas andalas padang). jurnal ilmiah mahasiswa ekonomi manajemen. safryani, u., aziz, a., & triwahyuningtyas, n. (2020). analisis literasi keuangan, perilaku keuangan, dan pendapatan terhadap keputusan investasi. jurnal ilmiah akuntansi kesatuan. https://doi.org/10.37641/jiakes.v8i3.384 tanusdjaja, h. (2018). keputusan investasi investor individu berdasarkan kompetensi, overconfidence, dan pendidikan. jurnal muara ilmu ekonomi dan bisnis. https://doi.org/10.24912/jmieb.v2i1.998 upadana, i. w. y. a., & herawati, n. t. (2020). pengaruh literasi keuangan dan jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 perilaku keuangan terhadap keputusan investasi mahasiswa. jurnal ilmiah akuntansi dan humanika. https://doi.org/10.23887/jiah.v10i2.2557 4 venti laksita bangun. (2020). pengaruh literasi keuangan, persepsi risiko dan overconfidence terhadap keputusan investasi (studi kasus pada generasi milenial di yogyakarta). in malaysian palm oil council (mpoc). wardani, a. k., & lutfi, l. (2019). pengaruh literasi keuangan, experienced regret, risk tolerance, dan motivasi pada keputusan investasi keluarga dalam perspektif masyarakat bali. journal of business & banking. https://doi.org/10.14414/jbb.v6i2.996 list of tables table 1. variables and their indicators table 2. validity and reliability test result no variable indikator measurement scale basic finance knowledge savings and borrowing insurance investment (chen and volpe (in fitriarianti, 2013) risk seeker risk neutral risk averter halim (in pradikasari & isbanah, 2018) overestimate underestimate (nofsinger in kartini and nugraha, 2015) investment security investment risk investment return time value of money and liquidity (putri & rahyuda in khairiyati & krisnaw ati, 2019) 3 overconfidence likert scale 4 investment decision likert scale financial literacy likert scale1 2 risk tolerance likert scale jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 table 3. path coefficient results table 4. simultaneous test results jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 29-37 list of figures fig.1 research model fig.2 hypothesis test with smartpls correspondence to : muh_shadri@iainpalopo.ac.id received: 10 nov 2022 accepted: 20 nov 2022 published: 1 dec 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 4, 2022, pp. 74 80 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction in the banking business, which can be seen from the map of the strength of government banks, which are increasingly being competed by private banks, as well as banking technology that is increasingly widespread, innovation is very necessary.(jerene & sharma, 2020). banking innovation and development is a necessity that cannot be avoided, because the public's assessment of banks is not only focused on quantity issues such as interest provided by banks, but has developed on quality issues both regarding the bank services provided and the good image of the bank.(normasari et al., 2013; tabrani et al., 2019). one of the bank's images can occur because of good service quality and satisfying customers which will have an impact on loyalty. synergy over services, a good bank image has an impact on customer satisfaction. furthermore, customer satisfaction in turn will be able to create a continuous relationship between the customer and the bank in the form of repeated transactions or loyalty(andhika, 2021). customer satisfaction is defined as a response to a specific or inappropriate consumption experience that is felt between previous expectations and the actual performance of the product after use(krisna & sudiartha, 2018; rofiqo et al., 2021). satisfaction concerns what is expressed by customers about perceptions and expectations of banking services obtained from banks. loyalty is related to what customers do after interacting in the banking service process(jhamb & kiran, 2012; susanti & parera, 2021). the concept implies that customer satisfaction is not measured by satisfaction or dissatisfaction. customer satisfaction is no less relevant to be analyzed because the attitude of customer satisfaction arises after the customer feels satisfied or dissatisfied with the quality of banking services and image.(ishak & azzahroh, 2017). service quality is the most dominant factor in service delivery(bahia & nantel, 2000), customers who feel good service quality, then customers will feel satisfied and believe in the performance of the bank(normasari et al., 2013; sutisna, 2016; does service quality, customer satisfaction and company image affect customer loyalty? muh. shadri kahar muang1 , jibria ratna yasir2 1sharia business & management department, faculty of islamic economic & business, iain palopo, indonesia 2sharia economic department, faculty of islamic economic & business, iain palopo, indonesia abstract this study proposes an idea to analyze how the role of service quality, customer satisfaction and corporate image in building customer loyalty at pt. bank central asia kcu makassar. this research uses the method quantitative with multiple linear analysis using 100 samples. the results of this study indicate that service quality variable (x1), customer satisfaction (x2), company image (x3) have a significant effect either partially or simultaneously on customer loyalty because it has a probability value of 0.000 0.05. while the coefficient of determination (adjusted r square) obtained is 0.937. this means that 93.7% of customer loyalty can be explained by the three dependent variables, while the remaining 6.3% of customer loyalty is influenced by other variables. this research contributes directly theoretically to the progress or development of understanding of the phenomenon of loyalty for the banking world in indonesia and empirically able to make an active contribution to the banking and marketing team in managing loyalty and retaining customers. further tracing and further research is needed by using a wider variety of research approaches, additions and changes to sampling techniques and adding other new variables. which is thought to also affect the formation of customer loyalty. keywords service quality; customer satisfaction; company image; loyalty; banking jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp.74-80 wardhana et al., 2018). if the bank has a good image, customers will feel comfortable and tend to be loyal customers to the bank. a good image in the eyes of customers will lead to high loyalty as well. image cannot be created like creating a product(hilz, 2008), the image will appear by itself according to the impression obtained by the public from knowledge and understanding of something. bank bca (bank central asia) is the largest private bank in indonesia that has a variety of quality and targeted products and services for bank bca customers. in addition, bank bca is one of the banks that currently has many types of banking services, one of which is tabungan hari depan, better known as tahapan bca. various segments are offered by bca in the tahapan savings account to different customers, of course with attractive features tailored to each of these segments. for example, tahapan bca is intended for individual customers or foundations. then stages gold is intended for the business segment. table 1 top brand index of indonesian conventional bank savings products 2021 – 2022 brand tbi 2021 tbi 2022 bca stages 31.6% 29.9% britama 21.7% 21.1% simpedes 10.3% 10.2% independent savings 8.9% 11.5% bni taplus 8.6% 6.9% source: top brand index (tbi) 2017 – 2018(top brand award, 2022) based on table 1.1, it shows that ranking 1 in the top category version of the top brand index (tbi) is the stage of bank central asia which has a value above 15% from 2019 to 2022, where bank central asia experienced an increase in percentage from 2019 to 2022 by 9%. top brand index (tbi) is an award given to the best brands chosen by consumers for the results of research on indonesian consumers. the products offered by banks to customers for consumption or use to meet the needs and desires of customers, where the benchmarks of the top brand index (tbi) are mind share, commitment share and market share. bank central asia experienced a percentage increase from 2017 to 2018, service quality, satisfaction, and the image created by bank central asia for customers are also very important in order to provide a response to create customer loyalty. the phenomenon faced by pt. bank central asia kcu makassar in providing quality service fulfillment to customers, instilling customer satisfaction and image, which until now has been fulfilled according to customer expectations. customer satisfaction in banking competition has now become a major issue(atmaja, 2018; ibrahim khartabiel student & saydam, 2014), the issue of customer/consumer satisfaction is the most important thing for service companies, considering the increasing number of alternative products that consumers can choose to meet their needs and desires. in previous research conducted by krisna and sudiartha (2018), the results of the study showed that service quality, customer satisfaction and bank image together had a significant effect on customer loyalty.(krisna & sudiartha, 2018). based on the background that has been stated, the authors propose a title in this paper, namely "the effect of service quality, customer satisfaction and company image on customer loyalty in". research methods the type of data used in this study is quantitative data in the form of answers given by respondents to the statements in the questionnaire. the source of data used in this study is primary data, namely data on respondents' answers to questions in the questionnaire.the population in this study is the customer of tahapan gold savings at pt. bank central asia kcu makassar, totaling about 5,970 customers. the sample selection technique in this study used the accidental sampling technique, the number of samples to be taken using the formula from slovin(arikunto, 2017)as follows : n = n 1+𝑁 (𝑒)2 n = 5970 1+5970(0,1)2 n = 98.35 or rounded up to 100 samples/respondents. to determine the effect of service quality, customer satisfaction, and company image on customer loyalty, multiple regression analysis was used. multiple regression analysis (multipleregression) is used to test hypotheses 1, 2, 3. the regression equation model is as follows: jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp.74-80 y1 = a + b1x1 + b2x2+ b3x3 results and discussion results characteristicsrespondent respondents in this study were customers of pt. bank central asia kcu makassar by using accidental sampling technique, which amounted to 100 respondents. the characteristics of respondents included in this study include gender, age/age of respondents, education and occupation. from the survey results obtained data on the characteristics of the respondents as follows: table 2 characteristics of respondents by gender no gender frequency (person) percentage (%) 1 man 65 65.0 2 woman 35 35.0 total 100 100.0 source: research results (processed data) 2022 table 3 characteristics of respondents based on age no age frequency (person) (%) 1 <23 years 2 2.0 2 >24 – 35 years 18 18.0 3 > 36 45 years old 41 41.0 4 > 46 years old 39 39.0 total 100 100.0 source: research results (processed data) 2022 table 4 characteristics of respondents based on education no education frequency (person) percentage (%) 1 senior high school 5 5.0 2 d3 5 5.0 3 s1 83 83.0 4 s2 7 7.0 total 100 100.0 source: research results (processed data) 2022 table 5 characteristics of respondents based on occupation no work frequency (person) percentage (%) 1 student/student 5 5.0 2 private employees 11 11.0 3 self-employed 70 70.0 4 civil servant 14 14.1 total 100 100.0 source: research results (processed data) 2022 validity test testing the validity in this study using correted item-total correlation processed with spss computer program. the results of the validity test can be seen in the following table. table 6 validity test results variable indicator r count r table informat ion service quality (x1) x1.1 0.479 0.195 valid x1.2 0.591 0.195 valid x1.3 0.578 0.195 valid x1.4 0.437 0.195 valid x1.5 0.494 0.195 valid customer satisfaction (x2) x2.1 0.450 0.195 valid x2.2 0.441 0.195 valid x2.3 0.302 0.195 valid x2.4 0.512 0.195 valid company image (x3) x3.1 0.434 0.195 valid x3.2 0.562 0.195 valid x3.3 0.553 0.195 valid x3.4 0.687 0.195 valid customer loyalty (y) y1.1 0.490 0.195 valid y1.2 0.571 0.195 valid y1.3 0.534 0.195 valid y1.4 0.441 0.195 valid source: research results (data processed by spss) 2022 reliability test the results of the reliability test in this study used the cronbach alpha coefficient. if cronbach's alpha is greater than or equal to 0.60 then the instrument is reliable. here are the results of the reliability test: table 7 reliability test results variable cronbach's alpha information service quality (x1) 0.747 reliable customer satisfaction (x2) 0.645 reliable company image (x3) 0.754 reliable customer loyalty (y1) 0.716 reliable source: research results (data processed by spss) 2022 based on table 4.10, it has been shown that the cronbach's alpha value of all variables is greater than the standard reliability value of 0.60, so it can be concluded that the instrument of the questionnaire statement jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp.74-80 indicator used in this variable is declared reliable or trustworthy as a measuring tool. multiple linear regression test table 8 multiple linear regression analysis model uc sc t sig. b std. error beta 1 (constant) -,436 ,505 -,864 ,390 service quality (x1) ,639 .041 ,798 15,70 6 ,000 customer satisfaction (x2) ,124 0.048 ,131 2,587 0.01 1 company image (x3) ,106 ,033 ,097 3,214 ,002 source: research results (data processed by spss) 2022 based on table 4.11 from the results of data processing, the following regression equation is obtained: y = 0.436 + 0.639 x1 + 0.124 x2 + 0.106 x3 the regression equation has the following meaning: 1. the constant of -0.436 states that if the independent variables, namely service quality (x1), customer satisfaction (x2), and company image (x3) are equal to 0 or not applied, then the negative constant value indicates a decrease in customer loyalty. 2. the x1 regression coefficient of 0.639 states that if service quality increases, it will increase customer loyalty and vice versa if service quality decreases it will decrease customer loyalty. 3. the x2 regression coefficient of 0.124 states that if customer satisfaction is conducive it will increase customer loyalty and vice versa if customer satisfaction is not conducive it will decrease customer loyalty. 4. the x3 regression coefficient of 0.106 states that if the company's image is conducive it will increase customer loyalty and vice versa if the company's image is not conducive it will decrease customer loyalty. hypothesis testing f uji test the f (simultaneous) test is a joint test to test the significance of the influence of the variables of service quality (x1), customer satisfaction (x2), and company image (x3) together on the customer loyalty variable (y). if the value of sig 0.05, then there is an effect of service quality variables (x1), customer satisfaction (x2), and company image (x3) together on the customer loyalty variable (y). if the sig value > 0.05 then there is no effect of the variables of service quality (x1), customer satisfaction (x2), and company image (x3) together on the customer loyalty variable (y). table 9 f uji test model sum of squares df mean square f sig. 1 regression 313.540 3 104.513 490,3 96 ,000b residual 20,460 96 ,213 total 334,000 99 source: research results (data processed by spss) 2022 from the formulation, it can be said that the variables of service quality (x1), customer satisfaction (x2), company image (x3) have a significant simultaneous effect on customer loyalty because it has a probability value of 0.000 0.05. t uji test article t-test was conducted to determine the effect of each or partially the independent variables (service quality, customer satisfaction, and company image) on the dependent variable (customer loyalty). meanwhile, partially the influence of the three independent variables on consumer purchasing decisions is shown in the following table: table 10 t test results model uc sc t sig. b std. error beta 1 (constant) -,436 ,505 -,864 ,390 service quality (x1) ,639 .041 ,798 15,706 ,000 customer satisfaction (x2) ,124 0.048 ,131 2,587 0.01 1 company image (x3) ,106 ,033 ,097 3,214 ,002 source: research results (data processed by spss) 2022 jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp.74-80 the influence of each variable of service quality, customer satisfaction and company image on customer loyalty can be seen from the direction of the sign and the level of significance (probability). the variables of service quality, customer satisfaction and company image have a positive direction. the variables of service quality, customer satisfaction and company image have a significant effect on customer loyalty because the significant value is 0.05. coefficient of determination test table 11 model summary model r r square adjusted r square see 1 ,969a ,939 ,937 ,46165 source: research results (data processed by spss) 2018 from the results of calculations using the spss program, it can be seen that the coefficient of determination (adjusted r square) obtained is 0.937. this means that 93.7% of customer loyalty can be explained by the variables of service quality, customer satisfaction and company image, while the remaining 6.3% customer loyalty is influenced by other variables not examined in this study. discussion based on the results of the research on service quality variables consist of five indicators, namely physical evidence, reliability, responsiveness, assurance/assurance, and empathy. the results of the partial test (t test) between service quality variables on customer loyalty show a t-count value of 15.706 and a probability value of 0.000 0.05, this means that service quality has a positive and significant effect on customer loyalty and these results support the research of sigit and soliha (2017) which states that service quality has a positive and significant effect on customer loyalty. this statement supports the opiniontabrani et al. (2019) that satisfied customers with service quality will provide the main basis for repeat purchases and the creation of customer loyalty(tabrani et al., 2019). of course, on the basis of good service quality, so the meaning of this service quality is a service provided by a company to its consumers both physically and mentally. in the end it will form a paradigm that customers will be loyal or not to the company. it can be concluded that the quality of service obtained by customers greatly influences customer loyalty. the results of the partial test (t test) between the variables of customer satisfaction on customer loyalty show a t-count value of 2.587 and a probability value of 0.011 0.05, this means that service quality has a positive and significant effect on customer loyalty and these results support fromrafica (2018) which states that customer satisfaction has a positive and significant effect on customer loyalty(rafica, 2018). this statement supports the opinion of wardhana (2018) that in the long term, customer satisfaction will have an impact on the formation of customer loyalty. when customers will feel satisfied with the services provided by a company, customers will tend to return to visit the service where this is one indicator of the emergence of customer loyalty.(wardhana et al., 2018). according to andhika (2021) that many benefits are received by the company by achieving a high level of customer satisfaction. so it can be concluded that every satisfaction obtained by customers has a very positive and significant effect on customer loyalty(andhika, 2021) based on variable research resultsthe corporate image consists of four, namely personality, reputation, values and corporate identity. the results of the partial test (t test) between corporate image variables on customer loyalty show the t-count value of 3.214 and the probability value of 0.002 0.05, this means that service quality has a positive and significant effect on customer loyalty and these results support the research of triyadi et al. al. (2021) which states that company image has a positive and significant effect on customer loyalty(triyadi et al., 2021) this statement supports the opinion of purba (2017) that an image cannot be formed just like that but requires a process to form it. the company always improves the image so that consumers are loyal to the services it sells, because the more loyal consumers, the more sales will increase(ancient, 2017). how strongly the company's image is embedded in the minds or memories of consumers affects subsequent customer behavior or attitudes, if the image of a company is good then customers will have a sense of pride in being users of these services. conclusion this study shows that service quality has a positive and significant effect on customer loyalty at pt. bank central asia kcu makassar. this significant value indicates that the better quality of services provided by bank central asia can make jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp.74-80 customers loyal to the bank. customer satisfaction has a positive and significant effect on customer loyalty at pt. bank central asia kcu makassar. customers achieve their hopes and desires so that they can feel a satisfaction from bank central asia. corporate image has a positive and significant effect on customer loyalty at pt. bank central asia kcu makassar. bank central asia's positive and strong corporate image is able to make customers feel satisfied and can lead to loyalty. this research contributes directly theoretically to the progress or development of understanding of the phenomenon of loyalty for the banking world in indonesia. provide additional marketing and marketing management treasures for banks. in addition, empirically it is able to make an active contribution to the banking sector and its marketing team in managing loyalty and retaining its customers. this study only uses multiple linear regression analysis with a quantitative approach. further tracing and further research is needed using a variety of deeper research approaches in the form of path analysis or phenomenological studies with a qualitative approach. in addition, it is necessary to carry out further studies with sampling techniques that better describe the population such as cluster sampling. this research indicates for the company to further improve the quality of its services by having a target of how long it takes to serve a customer and trying to provide timely service to customers, so that customers are satisfied with the services provided, being serious in serving every customer and employee need. able to communicate with customers, so that customers feel happy and comfortable in conducting transactions. the most dominant variable influencing customer loyalty is guarantee/assurance. for this reason, bank central asia needs to improve indicators on this variable, as well as improve other indicators such as physical evidence, reliability, responsiveness and empathy. bank central asia needs to make efforts to improve the company's image so as to create customer satisfaction which will result in customer loyalty. in addition, the corporate image variable, the most dominant indicator influencing customer loyalty, is the value in prioritizing customer interests. for this reason, bank central asia needs to maintain indicators on this variable, as well as improve the personality, reputation, and corporate identity. references andhika, a. (2021). the influence of customer satisfaction, brand equity, company image, and customer satisfaction on customer loyalty. syntax literate ; indonesian scientific journal. https://doi.org/10.36418/syntaxliterate.v6i12.5035 arikunto, s. (2017). slovin. electronic thesees and dissertation. atmaja, j. (2018). service quality and customer satisfaction on loyalty to bank bjb. ecodemica journal. bahia, k., & nantel, j. (2000). a reliable and valid measurement scale for the perceived service quality of banks. international journal of bank marketing. https://doi.org/10.1108/02652320010322994 hilz, w. (2008). albert o. hirschman, exit, voice, and loyality: responses to decline in firms, organizations, and states, cambridge 1970. in schlüsselwerke der politikwissenschaft. https://doi.org/10.1007/978-3-531-904009_48 ibrahim khartabiel student, m., & saydam, s. (2014). banks employees satisfaction as a lead to customers satisfaction. international journal of business and social science. ishak, mz, & azzahroh, ep (2017). the influence of service quality on customer loyalty of islamic banks with customer satisfaction as an intervening variable. journal of islamic economics and business (journal of islamic economics and business). https://doi.org/10.20473/jebis.v3i1.3599 jerene, w., & sharma, d. (2020). the effect of efinance service quality on bank customers' fintech e-loyalty: evidence from ethiopia. international journal of e-business research. https://doi.org/10.4018/ijebr.2020040105 jhamb, d., & kiran, r. 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(2013). the influence of service quality on customer satisfaction, company image and customer loyalty. journal of business administration (jab). purba, rp (2017). the effect of corporate image on customer loyalty (case study of pt. bintang utara representative dolok sanggul). fisip student online journal. rafica, vm (2018). analysis of factors affecting customer satisfaction at pt. bank rakyat indonesia kanca ponorogo. scientific journal of asian business and economics. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp.74-80 https://doi.org/10.32812/jibeka.v10i2.75 rofiqo, a., addinata, vh, & sari, dn (2021). the effect of service quality on loyalty with trust and satisfaction as mediator variables for islamic banks in ponorogo. etihad: journal of islamic banking and finance. https://doi.org/10.21154/etihad.v1i1.2732 susanti, e., & parera, no (2021). customer loyalty from the ease of using mobile banking. international journal of digital entrepreneurship and business. https://doi.org/10.52238/ideb.v2i1.37 sutisna, aj (2016). the effect of service quality on customer loyalty at the ajb bumiputera syariah serang branch office. scientific journal of revenue. tabrani, a., sumarna, g., & permatasari, m. (2019). the effect of service quality on customer loyalty (tandamata) at bjb bank rangkasbitung branch. muamalatuna. https://doi.org/10.37035/mua.v11i1.1948 top brand awards. (2022). top brand index phase 1 2022. https://www.topbrandaward.com/top-brand-index/?tbi_index=top brand&tbi_year=2022 triyadi, t., amelia, rw, & khoir, a. (2021). the influence of service quality and company image on customer satisfaction at pt. bank danamon tbk bintaro branch. journal of effective economics. https://doi.org/10.32493/jee.v3i4.11289 wardhana, aa, hudayah, s., & wahyuni, s. (2018). analysis of service performance and customer satisfaction on savings customer loyalty. journal of management. https://doi.org/10.29264/jmmn.v9i1.2390 correspondence to : nuranita0403@gmail.com received: 22 september 2021 accepted: 2 november 2021 published: 30 december 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 4, 2021, pp. 22 28 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the use of a single dimension in a company's performance measurement system is considered not able to provide a comprehensive understanding (simerly, 1998; voivio, 1999). multiple measurements should be able to be carried out or integrated with each other (ventkatraman, 1986; wiklund, 1999). this phenomenon is corresponding to the results of empirical studies conducted by feltham and xie (1994) and kaplan and norton (1992). it is stated that a single performance measurement or financial has a drawback because it has not been able to measure the important aspects of performing properly. also, the research by abemethy and lillies (1995) and harrison and poole (1997) expressed that performance measurement focusing on financial does not have a significant effect on improving performance aspects. the balanced scorecard (bsc) is defined as a system of measuring strategic performance introduced by robert kaplan and david norton in 1992. they were students from harvard university who were initially conscious that the traditional financial performance measurement was not representative of the company goal. therefore, a balancing aspect is needed in its measurement (kaplan & norton, 1992). the financial measurement balancing has to consists of customer perspective, internal business perspective, innovation, and learning perspective. gallo et al (2018) provide an explanation regarding the four perspectives in the bsc. the first perspective is finance, which notices the company from the owner's point of view. the objectives of the financial perspective are focused on progress, cost reduction, investment, and market compatibility. this perspective also provides an analysis of whether or not there is an increase in the company's profit from the strategy that has been carried out. the second is the customer perspective which notices the company from the customer's point of view. the goals of the customer perspective are related to market share, customer satisfaction, having new customers, and lifetime customers. the third perspective is an internal business process that notices the aims related to the processes needed to achieve the goals in the financial and customer perspective. the focusing of this perspective is on value systems, innovative or operational processes. furthermore, the learning perspective as the last perspective focuses on infrastructure and corporate education. basically, the bsc concept is the result of strategies and goals translation that will be achieved by a company in the long term (elisabeth, 2018). also, bsc provides the changes of balanced scorecard (bsc): a comprehensive review nur anita master of science and doctoral study program, faculty of economics and business, universitas gadjah mada, indonesia abstract this study aims to review the changes of balanced scorecard (bsc) approach over four generations followed by its research trends over the last three years. the narrative literature method is used to analyze the information of each reference. the last bsc generation generally is used by many companies caused it has been improved. furthermore, the research trends currently show that the bsc is not only for profit-oriented entities but also for social companies. this study also found that there are many companies starting to combine bsc with other approaches. it is such as best-worst method (bwm), gray relational analysis, data envelopment analysis, and swot analysis. by combining these approaches, the result of performance measurement will be more accurate keywords balanced scorecard, bsc generations, performance measurement, research trend jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 22-28 strategic objectives for the company into a set of interrelated performance parameters. the bsc concept must be considered by a company. therefore, it can be used as an accurate measuring assessment and the right decision-making parameter. these two things make the bsc concept an important indicator in assessing the performance of a company (nazari-shirkouhi, 2020). this paper aims to trace the development of bsc over several generations. the new concepts related to bsc were not proposed in this study. however, research trends associated with the bsc over the last three years are described. it is to obtain an analysis related to the development of it as a company performance measurement assessment. research methods this study is used the narrative literature review method objectively. the step of research consists of collecting the information and literature, comparing, analyzing, discussing, and concluding. the information collected is utilized to follow the changes of each bsc generation and its research trends. each of the bsc generation changes is identified to mapping the advantages and the otherwise. furthermore, the research trend related to bsc over three years is used to identify the development of the performance measurement. results and discussion a. bsc generations overview first generation kaplan and norton (1992) introduced an initial bsc design wherein there are four performance measurement perspectives consisting of one financial perspective and three non-financial perspectives. the nonfinancial perspective consists of customers, internal business processes, and learning and growth. each perspective helps answer basic performance questions like can we continue to improve and create value? what should we excel at? how do customers see us? and how do we look to shareholders?. figure 1 – the first generation bsc concept unfortunately, it has several practical problems such as unclear definitions (lawrie and cobbold, 2004). in addition, there are difficulties in answering the questions posed by the first-generation bsc design. especially, it occurs regarding the need to filter that consists of selecting some specific actions to report and grouping. it decides the actions into perspective (ali, 2019). in 1993, kaplan and norton quickly introduced a new concept of strategic objectives for overcoming adversity. the innovation proposed is the direct mapping between each perspective from several strategic objectives. it makes the first generation bsc design underwent a significant change. nevertheless, bsc still needs to be developed so that it can be adapted to the development and the user needs. finally, the second generation bsc appeared to complete it (ali, 2019). second generation the second-generation bsc was introduced by kaplan and norton in 1996. it emerges inasmuch as the definition of the first generation bsc was unclear. the innovation offered is linking the bsc to the company's vision. it provides a way to manage the company's strategy through four important stages as well. the stages consist of translating the company's vision, connecting the vision that has been set to various departments, business planning to achieve the company's vision, and feedback by comparing planned performance with actual performance (ali, 2019). so, the bsc evolves from a measurement system to a core of management system (kaplan and norton 1996). third generation the third generation bsc completes by adding new features to provide more strategic relevance and better functionality. the design is made in reverse. the destination statement becomes the first design activity (lawrie and cobbold, 2004). whereas in the previous generation, it has been the last design of the model. shulver et al (2000); cobbold and lawrie (2002); lawrie et al (2004) find that an agreement within the management team can be reached quickly if a job starts from a statement of purpose. fourth generation jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 22-28 the fourth-generation bsc begins with the strategy. explicitly, this generation discusses how an organization learns. it accelerates the organization's learning process from its strategy. it means that the organization will be more receptive to change and more able to respond when the change is needed. so, the organization learns about strategies and studies their effects on performance. the fourth generation uses “the business compass”. it is a methodology designed by allan rodrigues to support the fourthgeneration bsc (ali, 2019). rodrigues has brought the scorecard concept to the fourth generation by linking the scorecard to corporate value. he also relates the scorecard as a measure of the impact of the company's strategies on society and the environment. moreover, he correlates four scorecard perspectives from the first generation bsc, strategy mapping from the second generation bsc, statement of purpose from the third generation bsc to the current and future value of a company's stock from the fourth generation bsc. the business compass also measures the impact of the vision and mission on the environment and the wider community (ali, 2019). b. bsc research trends the research about balanced scorecard from year to year has run into headway. this is indicated by the many recent studies that have emerged relating bsc to various sectors. currently, many public companies have adopted the bsc as a tool to measure performance. though before bsc was only known in profit-oriented companies. table 1 shows research trends on bsc from 2019 to 2021. table 1 – the research trends of bsc research by result recomendation xie et al, 2021 learning and growth is the most significant balanced scorecard perspective for the improvement of renewable energy investment projects. using different multi-criteria decision-making (mcdm) method to determine the consistency of the results of this study. dwivedi et al, 2021 the combined bsc-bwm model has been successfully applied. the model can measure the performance of an organization. it also integrates the efficiency and effectiveness of the strategies. eventually, it assists an organization in decision-making. we can implement the bscbwm method in different industries. rafiq et al, 2021 the use of bsc is highly recommended to eliminate routine problems and to ensure environmental sustainability. we can improve the study by adding another variables such as leadership issues and sociocultural aspects. in addition, this study only includes political and regulatory influences. while, other mediating variables like customers, rival activities, or pressure from ngos were not discussed. these variable can be considered as moderating variables on the future research. benkova et al, 2020 there is a significant relationship between companies that adjust nonfinancial indicators. so, the use of bsc is important in the industrial sector. we can focus on modern management tools that fulfill the concept of sustainable development. fatima and elbanna, 2020 it is important for the hospitality and tourism industry to implement the bsc. we can conduct research on the sustainable tourism sector and emerging tourism management jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 22-28 research by result recomendation to ensure effective implementation of the bsc. sulastiningsih et al, 2020 • based on growth and learning perspective, supervisory support and training have a major effect on increasing job satisfaction. it can result in strong loyalty from zakat institution employees. • based on the internal process perspective, strong employee loyalty has an effect on improving the quality of services provided. • based on the customer's perspective, service quality plays an important role in the satisfaction and loyalty of muzakki and mustahiq. • based on the financial perspective, the result indicates that customer satisfaction and loyalty have an effect on financial performance. we can apply the bsc approach to other social entity. delen et al, 2020 study findings show that consumer is the most significant dimension than learning and growth. this means that all consumer-focused criteria have the highest priority. further research can be carried out on various sectors and topics that can be evaluated with the proposed methodology. it is like service quality in cosmetics or similar industry segments. truong et al, 2020 internal factors (if) and external factors (ef) of the tourism company have a positive relationship to the implementation of the bsc in evaluating the performance of tourism companies in hanoi. we recommend improving the implementation of the balanced scorecard in evaluating the performance of tourism enterprises in hanoi. pham et al, 2020 the performance of public hospitals in the northwest province of vietnam is influenced by factors in the bsc model in descending. it shows by the regression coefficients such as internal processes, finance, mission, strategic planning, customers, employee learning and growth. we can conduct a similar study on other public hospitals in vietnam with similar conditions. firk et al, 2020 the findings suggest that the use of bsc as a framework for preparing conference calls can give an advantage to the company. the companies can use the bsc as a framework for preparing their conference calls. quezada et al, 2019 combining swot and bsc analysis is very useful for improving company performance. we can use the same method (swot and bsc) in other research areas. sarraf and nejad, 2019 gray relational analysis is an accurate method for measuring the performance of water and wastewater companies compared to data envelopment analysis. we can apply both methods to measure the performance of water and wastewater companies. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 22-28 research by result recomendation in addition, the bsc in this study helps managers to understand the causal relationship between variables. mamabolo and myres, 2019 the perspectives that adapted from the bsc such as customer, organizational learning and growth, finance, and internal processes can be used as performance indicators. we can conduct further qualitative research to explain the performance of social enterprises. tuan, 2019 vietnamese commercial banking companies in particular have successfully implemented the balanced scorecard to improve business performance. we have to promote the application of bsc to improve the performance of vietnamese commercial banks. peris-ortiz et al, 2019 there is a significant effect between the application of the bsc on research performance and higher education innovation. we can research the implementation of bsc in other educational sectors. discussion the application of the balanced scorecard (bsc) as an instrument is used to measure financial and non-financial performance in a company. it has been carried out for approximately 29 years from 1992 until 2021. the adjustments of the model and design have been conducted for four generations. the changes made are aimed at improving the design and maintain the relevance of the bsc to the growth of the company. so, the bsc is becoming more complex to measure the performance. the development of the bsc generation is also followed by research progress. many researchers have analyze the bsc as a measuring tool for companies whose implementation areas are very broad. the research trend on bsc shows a very significant progress. the focus of its research is not only on a profit company but also on a social enterprises. in addition, the researchers also merge bsc with other approaches such as best-worst method (bwm), gray relational analysis, data envelopment analysis, and swot analysis. the company must be creative to collaborate the bsc with other models. hence, the results of the analysis of performance measurement become more accurate. in 2020, bsc research had been growth rapidly in the sectors that previously did not adopt a performance measurement approach. it is such as zakat institutions and the hospitality tourism industry. nowadays, zakat institutions have begun to maximize their performance measures to increase public trust and loyalty. this phenomenon shows that bsc is needed by the wider community. meanwhile, in 2021, the research on bsc is more focusing on sustainable development in the renewable energy field. the existence of recent studies on bsc can provide insight for the companies. basically, the implementation of bsc is not rigid but it can be adapted to the needs of each company. conclusion from 1992 to 2021, the balanced scorecard has undergone many changes. these are shown by the design process used to make it more relevant to the needs of the company. the bsc changing is related to innovation driven by empirical evidence based on the weaknesses in the former. it does not omit the original idea. the change has also occurred in the trend of research on bsc in recent years. many researchers have analyzed the use of bsc in unique companies which previously did not adopt it. hopefully, the latest research related to the bsc can provide knowledge to companies and to the public. because, the bsc can be used unlimitedly in various fields. references abemethy, a. m. & lillies, m. a. 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(2000). a process for developing strategically relevant measures of intellectual capital. proceedings of the 2nd international conference on performance measurement and management (pma 2000), cambridge, july. simerly, r. l. & mingfang, l. (1998). the moderating effect of environmental dinamysm on the ownership and performance relationship. strategic management journal, 19, 258-271. sulastiningsih, wikaningtyas, s. u., & novitasari, d. (2020). improving performance of zakat institution in poverty alleviation: balanced scorecard approach. tazkia islamic finance and business review, 14(2), 142-163. tuan, tran trung. (2019). the impact of balanced scorecard on performance: the case of vietnamese commercial banks. journal of asian finance, economics and business, 7(1), 71-79. truong, d. d., nguyen, h., & duong, t. q. l. (2020). factors influencing balanced scorecard application in evaluating the performance of tourist firms. journal of asian finance, economics and business, 7(5), 217 – 224. vaivio. r. p. (1999). exploring a non financial management accounting change. journal of management acoounting journal research, 10, 409-437. venkatraman, n., & ramanujam, v. (1986). measurement of performance in strategy research : a comparison approaches. academy of management review, 11(4), 801-814. wiklund, johan. (1994). the sustainability of the entrepreneurial orientation performance relationship, entrepreneurship theori and practice. academy of management review, 17(4). xie ,y., zhou, y., peng, y., dincer, h., yüksel, s., & xiang, p. a., (2021). an extended pythagorean fuzzy approach to group decision-making with incomplete preferences for analyzing balanced scorecard-based renewable energy investments. ieee, 9. https://doi.org/10.1016/j.evalprogplan.2019.101762 https://doi.org/10.1016/j.evalprogplan.2019.101762 correspondence to : amurjani@bps.go.id received: 8 november 2021 accepted: 25 december 2021 published: 30 december 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 4, 2021, pp. 46 52 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction poverty is the focus of goal 1 of sustainable development goals (sdgs) initiated in 2015 by the united nations (un) to be implemented by its country members (united nations, n.d.). in detail, for goal 1.1, extreme poverty (people living below $1.25 a day) should be eradicated by 2030 and halving the poverty rate measured by the respective national standard. the progress of poverty reduction is remarkable in recent decades.1 however, the covid-19 pandemic worsen the welfare situation all over the world indicated by the economic contraction that sequentially affected the poverty rate. eradicating extreme poverty by 2030 may face a more complicated situation during the covid-19 pandemic. moreover, if the pandemic is uncontrollable, the tasks of goal 1 of sdgs are unlikely to be materialized. the world bank (2020) estimated that the pandemic has added another 88 million people or around 1.4% of the total world 1 the threshold for extreme poverty is $1.90 a day according to the un, and the goal 1.1 focuses deeper on the extreme poor living at $1.25 a day. population into extreme poverty by 2021. the pandemic problem is one obstacle to reaching goal 1 of sdgs besides climate change and conflict issues. according to kakwani (1993), the magnitude of the poverty rate depends on two variables: income growth and inequality in income distribution. this means that to push the poverty rate down, growth and inequality become the main focus to formulate a precise policy intervention. and once again, discussing growth and inequality, we are dealing with other sdgs goals: goal 8 (decent work and economic growth) and goal 10 (reduced inequalities). with the covid-19 pandemic's existence in reaching goal 1 of sdgs, we are also involving goal 3 of sdgs (good health and well-being) because of its high correlation with health issues during the pandemic. it is clear that the discussion of eradicating poverty during the covid-19 pandemic relates with many sdgs goals; hence, it needs serious efforts. the elasticity of poverty to the growth and inequality before and during the covid-19 pandemic ahmadi murjani bps-statistics of south kalimantan province, indonesia abstract this study aims to measure the elasticity of poverty to income growth and inequality and to assess the pro-poorness of the growth near and during the covid-19 pandemic by taking the south kalimantan province of indonesia as a focused study. the lack of poverty elasticity and decomposition study during the covid-19 pandemic has motivated this study to be done. by using the poverty decomposition method applied to south kalimantan data, this study achieved some conclusions. first, all the poverty measurements (fgt indexes) have the absolute value of elasticities by more than one, indicating that poverty is highly sensitive to the change of income growth and inequality. second, when inequality is constant, an increasing growth rate of income will benefit the poor more than the less poor, and selecting the poverty measurement to observe is critical. third, the trade-off between growth and inequality represented by mprs is positive and more than one in all years of examination. there should be more growth rate needed to respond to an increasing inequality to maintain the poverty rate stable. forth, the targeted policies to the poor in the period from 2020 to 2021 are proven to help the poor shown by the poverty growth curve. keywords elasticity of poverty; poverty decomposition; growth; inequality; south kalimantan jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 46-52 the interaction of poverty-growthinequality has been discussed by many researchers such as kakwani & son (2006), ravallion (2004), ravallion & chen (2003), and son (2004) amongst others. those studies underlined the impact of economic growth on poverty with the additional influence of inequality which leads to the concept of propoor growth and trickle-down growth. alternatively, this paper employs the kakwani (1993) approach aiming to calculate the elasticity of income growth and inequality on the various poverty measurements which has not been deeply examined during the covid19 pandemic. in addition, this paper uses two years of examination on household-level data before and during the covid-19 pandemic to emphasize the pandemic impact on welfare. thus, this paper contributes to the povertyrelated studies based on two points: (1) this paper employs kakwani (1993) approach to measure the marginal proportional rate of substitution (mprs) that covers various poverty measures; and (2) this paper accommodates the period before and during the covid-19 pandemic to examine poverty situation. this paper is organized as follows. (1) introduction; (2) literature review; (3) research method; (4) result and discussion; and (5) conclusion. literature review the relative contribution of growth and redistribution of income on the poverty measurements was examined by datt & ravallion (1992). they theorized that poverty reduction cannot be fully determined by declining in inequality. furthermore, the impact on poverty from inequality (redistribution effects) should be accompanied by growth. so, the decomposition does matter in the poverty examination. more specifically, the growth component in the change of poverty is the change in the mean of income by holding the lorenz curve constant. the redistribution component is the change in the lorenz curve by holding the mean of income constant. also, the residual component exists in the modeling process which did not be accommodated by kakwani & subbarao (1990) and jain & tendulkar (1990). although the residual is not the main focus of the analysis, it should always be evaluated via growth and redistribution consistency. the theory of the growth and distribution of poverty was also written by kakwani (1993). the poverty measurements depend on three factors such as poverty line, mean of per capita income, and income inequality. by holding the poverty line constant, the impact of income growth (socalled pure growth effect) and income redistribution (so-called inequality effect) can be examined separately. based on the theorized model, the coefficient of mean per capita income should be negative, meaning that the positive growth of income will bring the poverty rate down (and vice versa). on the other hand, the coefficient of inequality should be positive, inferring that increasing inequality will make the poverty rate goes higher (and vice versa). the trickle-down effect happens if the poverty rate declines at a small rate for any given positive growth of income per capita. the trickle-down effect is also recognized when the poor receive the benefits equal or less than the growth rate in case of the coefficient of inequality is non-positive. from here, the degree of trickle-down is shown by the coefficient of inequality (kakwani & subbarao, 1990). kakwani (1993) also highlighted the trade-off between pure growth effect and inequality effect in that model providing the term of marginal proportional rate of substitution (mprs). for example, a 1% increase in the gini index should be responded by a certain degree of percentage change in the mean income to hold the poverty rate at the same rate. mprs describes such a certain degree of the percentage change of mean income to keep the poverty rate the same given a change in the gini index. son (2003) introduced a new poverty decomposition that does not refer to any inequality measurements nor involve residual terms in the factors that affect poverty. the decomposition according to son (2003) is divided into four components such as growth effect holding inequality in the distribution constant, between-group growth rate differences effect, within-different-group inequality changing effect, and various-groups population shares changing effect. those components are summed and produce changes in poverty. aristondo et al. (2010) took a different approach to decomposing poverty. their decomposition involves the product of the headcount ratio, total income gap ratio, and generalized entropy inequality index of the poor’s income gaps. this approach can be used to examine whether the increasing poverty is related to changes in either one of the poverty measurements or a combination of all those. in this sense, poverty changes jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 46-52 based on poverty incidence, intensity, and inequality. some studies involving the interconnection of poverty, growth, and inequality have been conducted by kakwani et al. (2000), ravallion & chen (2003), ravallion (2004), son (2004), and kakwani et al. (2004), amongst others. those above-mentioned studies have shown the importance of growth and inequality in determining poverty. furthermore, those concepts emphasized the pro-poor growth terms, the condition when the economic growth shares the majority portion of benefits into the pocket of the poor. in more applicative studies in indonesia, poverty decomposition has been examined as follows: asra (2000), sumarto & de silva (2013), pukuh & fadlun widyasthika (2017), and murjani (2021). there is still a research gap that should be examined particularly about the trade-off between growth effect and inequality effect in affecting poverty before and during the covid-19 pandemic. it is an essential matter for the policymaker as well as researchers to study the marginal proportional rate of substitution in every poverty measurement; thus, the poverty-oriented policy intervention could be more effective especially during the covid-19 pandemic. this paper uses kakwani's (1993) approach to measure mprs in the period before and during the covid-19 pandemic by selecting the south kalimantan province of indonesia as a focused study.2 to complete the analysis, the pro-poorness of the income growth in the period from 2020 to 2021 will also be examined by using son's (2004) approach. research method data this study employs the indonesian national socioeconomic survey (susenas) data for the years 2020 and 2021 in the south kalimantan province of indonesia to represent the period before and during the covid-19 pandemic. murjani (2021) suggested utilizing a short period of examination to avoid a possible mixed result in the case of using a longer period. the variables of per capita expenditure as a proxy for income and household size will be extracted from 2 for the strength and weakness of the analytical approach by kakwani's (1993) and its methodological review, see araar (2012 p.14). 3 susenas 2020 was held in march 2020. this period of the survey did not fully show the impact of the covid-19 susenas data and be used in the calculation. as complementary data, the poverty line for south kalimantan in 2020 and 2021 will be used as respective poverty thresholds in each year, the data for the poverty lines is available at the website of the bps-statistics indonesia of south kalimantan.3 for the calculation, this study uses the dasp stata package written by araar & duclos (2021). poverty decomposition the decomposition of poverty with the impact of growth and inequality that developed by kakwani (1993) is formulated as follows: 𝑑𝜃 = 𝜕𝜃 𝜕𝜇 𝑑𝜇 + ∑ 𝜕𝜃 𝜕𝑚𝑖 𝑘 𝑖=1 𝑑𝑚𝑖 (1) where, 𝜃 is the poverty index determined by the poverty line, the mean of income per capita, and income inequality (shown by the lorenz curve). changes in the lorenz curve is affected by changes in 𝑘 parameters 𝑚1, 𝑚2, 𝑚3,..., 𝑚𝑘. the part 𝜕𝜃 𝜕𝜇 𝑑𝜇 is identified as pure growth effect and the part ∑ 𝜕𝜃 𝜕𝑚𝑖 𝑘 𝑖=1 𝑑𝑚𝑖 is the inequality effect. the premise is that if the economic growth is positive, the pure growth effect will be negative (increasing growth will push poverty down), and vice versa. for the inequality effect, if the redistribution of income benefits the rich, the inequality effect will be positive (higher inequality will make poverty worse), and vice versa. the situation when the inequality effect is negative is called trickle down. more specifically, the trickle-down effect happens when the poor absorb benefits at least equal to the growth rate (kakwani, 1993). equation (1) is then partially differentiated to calculate each elasticity and the final equation can be written as 𝑑𝜃 𝜃 = 𝜂𝜃 𝑑𝜇 𝜇 + 𝜀𝜃 𝑑𝐺 𝐺 (2) where, 𝜂𝜃 is the partial elasticity of poverty to income growth (assuming inequality constant) and 𝜀𝜃 is the partial elasticity of poverty to the gini index (assuming the pandemic in indonesia, especially in south kalimantan. it is considered a relevant year for representing the before-pandemic time of reference. the susenas data used are from the march survey. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 46-52 income growth is constant). if 𝑑𝜃 𝜃 or proportional change in poverty is equal to zero, the marginal proportional rate of substitution (mprs) can be written as 𝑀𝑃𝑅𝑆 = 𝜕𝜇 𝜕𝐺 𝐺 𝜇 = − 𝜀𝜃 𝜂𝜃 (3) poverty growth curve (pgc) as an additional analysis of the povertygrowth-inequality relationship, this study utilizes the poverty growth curve (pgc) introduced by son (2004). in the period from 2020 to 2021, there were many pro-poor policies applied by the government amidst the covid-19 pandemic in indonesia intended to counterbalance the socioeconomic impact especially on the poor that can affect the distribution of income (ministry of social affairs republic of indonesia, 2021). thus, the pgc analysis can be employed to complete the analysis. the pgc can be written as 𝑔(𝑝) = 𝑔 + ∆𝐿𝑛(𝐿(𝑝)) (4) where, 𝑔 = ∆𝐿𝑛(𝜇). 𝑔(𝑝) is the pgc of the bottom 𝑝 percent of the population. 𝑔 is the growth rate mean of per capita expenditure. 𝐿(𝑝) is the lorenz curve. the pgc indicates the pro-poor growth of income if the pgc is above the value of 𝑔 for the poor group; otherwise, it could be either a trickle-down growth or immiserizing growth. result and discussion the detailed calculation in this study especially in the data processing stage uses the dasp stata package developed by araar & duclos (2021). the result for the analytical approach by kakwani (1993) can be seen in table 1. ----------------------------------------- insert table 1 in here table 1 provides the elasticity of poverty measurements from the fgt indexes (foster, greer, & thorbecke, 1984) on the average income growth and gini index in south kalimantan taking the years 2020 and 2021. by utilizing all the fgt indexes, the examination can be more comprehensive especially reviewing the impact on the poor. the higher the value of α (i.e., p0 is the index when α=0) the more weights are given to the poorest poor (kakwani, 1993). some substantial findings are elaborated as follows. the absolute values of elasticity of the average income growth and gini index are higher than one for all of the poverty measurements in all time of observations, meaning that the poverty is highly sensitive to the changes of income growth and gini index regardless of the time of examination (before or after the pandemic). furthermore, poverty will decrease faster than the rate of average income growth by holding inequality constant. the higher the α, the higher the absolute value of the elasticity (except for p1 in 2020 that has a relatively smaller elasticity than p0). in general, this result indicates that the poor will benefit more than the less-poor from the income growth by holding the inequality constant. this evidence is more visible in 2021 during the covid-19 pandemic (the higher α, the bigger the elasticity). if the values of the elasticity are compared between 2020 and 2021, the absolute values of elasticity of p0 to average income growth and gini index in 2020 are higher than in 2021. a contrast situation is found for p1 and p2. from a pro-poor policy perspective, the pro-poor program that targets the poor for enhancing income will be more effective in reducing the poverty gap and inequality among the poor during the pandemic in 2021 compared to 2020. so, the chosen poverty indicator as the targeting program should be wisely determined. of course, the poverty rate will decline faster than the increasing rate of the average income growth but a higher rate of reduction is bigger in the period before the pandemic. this could make sense if the poor are more affected than the non-poor when the pandemic hits. concerning that the values of elasticity of poverty measurements to gini index are bigger than the absolute value of elasticity for the average income growth, the matter of inequality should be carefully controlled. the pro-poor programs should be more targeted and effectively applied, to ensure the inequality effect is minimized. the concern about the interaction of the pure growth effect and the inequality effect leads the examination to the values of mprs. first, all mprs values are positive and more than one. the higher growth rate of average income will be required to counter the increasing rate of the gini index to maintain the poverty measurements at the same level. second, the higher the α for the poverty index, the bigger the mprs. this means given a 1% jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 46-52 increase in the gini index, more average income growth is needed for the higher poverty index (higher α). for instance, in 2020, to maintain p0 at the same level (or at a stable level), it needs the average income to grow by 1.52%. for p2, it needs 2.31% of average income to grow to maintain p2 at the same level. it can be concluded that when inequality takes a certain impact on poverty, we will need a higher effort of policy intervention if we concern more for poor people. this situation is also the same with 2021 during the pandemic. third, mprs for 2021 is less than in 2020 in respective poverty measurements. for example, for a 1% increase in the gini index, during the pandemic in 2021, it needs a 1.49% increase of average income growth lesser than in 2020 that needs 1.52% to maintain p0 at the same level. the smaller value of mprs in 2021 compared to 2020 may be due to increasing pro-poor programs from the government of indonesia when the covid-19 pandemic hit indonesia. the intervention on the poor more or less has an impact on inequality. one question remains whether the pro-poor policies in the period from 2020 to 2021 affect the distribution of income and favor the poor that were affected much by the pandemic. figure 1 shows the pro-poorness of the average income growth in such a period. ----------------------------------------- insert figure 1 in here from figure 1, it can be seen that the income growth in the period from 2020 to 2021 favors the poor. the pgc, especially at the bottom percentile groups, has value more than the average growth of population (shown by the blue line). the income growth is identified as pro-poor. the targeted policies applied by the government of indonesia to assist the poor during the pandemic are evident in the pgc. this result also supports the result from table 1, which explains that the poorer will benefit more than the non-poor from the increasing rate of income growth assuming inequality is constant. conclusion poverty, economic growth, and inequality are examined widely in the economic development area. further, the inclusion of those macro indicators in the sdgs goals has put more attention from policymakers and researchers. the study of poverty decomposition has developed for a while until now throughout many phenomena. this study is no exception. the covid-19 pandemic that hit the world recently has motivated this study to be conducted. by taking the south kalimantan province of indonesia as a locus for study in the period from 2020 to 2021, this study concludes some points. first, the elasticities of all poverty measurements to average income growth and gini index are more than unity, meaning that the change of all of the poverty measurements will be higher than the rate of the average income growth and gini index for all time of observations. second, by using the partial examination of the elasticities, providing a propoor program during the period of the pandemic in 2021 will give a higher impact on p1 and p2 compared to 2020. on the other hand, providing a pro-poor program in 2021 gives less impact on p0 compared to 2020. all assume that inequality is constant in each examination. the chosen poverty measurement is essential. third, mprs has shown that the trade-off between pure growth effect and inequality effect affects the poverty measurements regardless of the pandemic, and the mprs values for all fgt indexes are positive and more than one. during a hard time in the pandemic, mprs in 2021 is less than in 2020 for each poverty measurement. the higher effort from the government to help the poor through pro-poor programs during the pandemic has seemingly affected the mprs. forth, the result of pro-poorness analysis has shown the importance of government intervention to improve the distribution of income during the pandemic. the pro-poor policies are should be sustainable during a hard time. it is to make sure that everyone including the poor can pass this pandemic. reference list araar, a. (2012). expected poverty changes with economic growth and redistribution. ssrn electronic journal, (april). https://doi.org/10.2139/ssrn.2042163 araar, a., & duclos, j. y. (2021). dasp: distributive analysis stata package version 3.01. pep, world bank, and université laval. aristondo, o., de la vega, c. l., & urrutia, a. (2010). a new multiplicative decomposition for the foster-greer-thorbecke poverty indices. bulletin of economic research, 62(3), 259–267. https://doi.org/10.1111/j.14678586.2009.00320.x jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 46-52 asra, a. (2000). poverty and inequality in indonesia: estimates, decomposition, and key issues. journal of the asia pacific economy, 5(1–2), 91–111. https://doi.org/10.1080/13547860008540785 bps-statistics indonesia of south kalimantan. (n.d.). garis kemiskinan 2020-2021. retrieved october 31, 2021, from https://kalsel.bps.go.id/indicator/23/139/1/gar is-kemiskinan.html datt, g., & ravallion, m. (1992). growth and redistribution components of changes in poverty measures. a decomposition with applications to brazil and india in the 1980s. journal of development economics, 38(2), 275–295. https://doi.org/10.1016/03043878(92)90001-p foster, j., greer, j., & thorbecke, e. (1984). notes and comments a class of decomposable poverty measures. econometrica, 52(3), 761–766. jain, l. r., & tendulkar, s. d. (1990). role of growth and distribution in the observed change in headcount ratio measure of poverty: a decomposition exercise for india. indian economic review, 25(2), 165–205. retrieved from https://www.jstor.org/stable/42657351 kakwani, n. (1993). poverty and economic growth with application to cote d’ivoire. review of income and wealth, series 39(number 2), 121–139. kakwani, n., khandker, s., & son, h. h. (2004). pro-poor growth: concepts and measurement with country case studies (no. 1). brasilia df, brazil. kakwani, n., prakash, b., & son, h. (2000). growth, inequality, and poverty: an introduction. asian development review, 18(2), 1–21. kakwani, n., & son, h. h. (2006). pro-poor growth: the asian experience (no. 56; vol. 56). https://doi.org/10.1057/9780230594005_2 kakwani, n., & subbarao, k. (1990). rural poverty and its alleviation in india. economic and political weekly, 25(13), 2–16. ministry of social affairs republic of indonesia. (2021). kemensos lanjutkan perlindungan sosial untuk masyarakat terdampak pandemi melalui program bansos. retrieved november 7, 2021, from https://kemensos.go.id/kemensos-lanjutkanperlindungan-sosial-untuk-masyarakatterdampak-pandemi-melalui-programbansos murjani, a. (2022). pro-poor curves and pro-poor growth index: case study in south kalimantan province. jurnal dinamika ekonomi pembangunan, 5(1), forthcoming. pukuh, n., & fadlun widyasthika, h. (2017). when growth is inclusive in indonesia? jurnal perencanaan pembangunan: the indonesian journal of development planning, 1(3), 195–209. https://doi.org/https://doi.org/10.36574/jpp.v1 i3.19 ravallion, m. (2004). pro-poor growth : a primer (no. 3242). washington dc. ravallion, m., & chen, s. (2003). measuring propoor growth. economics letters, 78, 93–99. retrieved from https://doi.org/10.1016/s01651765(02)00205-7 son, h. h. (2003). a new poverty decomposition. the journal of economic inequality, 1(2), 181–187. https://doi.org/10.1023/a:1026122624752 son, h. h. (2004). a note on pro-poor growth. economics letters, 82(3), 307–314. https://doi.org/10.1016/j.econlet.2003.08.003 sumarto, s., & de silva, i. (2013). poverty-growthinequality triangle: the case of indonesia. in mpra paper (no. 04; vol. 57135). jakarta. united nations. (n.d.). the sustainable development agenda. retrieved october 20, 2021, from https://www.un.org/sustainabledevelopment/ development-agenda/ world bank. (2020). covid-19 to add as many as 150 million extreme poor by 2021. retrieved october 26, 2021, from https://www.worldbank.org/en/news/pressrelease/2020/10/07/covid-19-to-add-asmany-as-150-million-extreme-poor-by-2021 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 46-52 list of tables table 1. the elasticity of poverty measurements to income growth and gini index in south kalimantan, 2020 and 2021 year poverty measurements the elasticity of poverty to income growth (𝜼𝜽) the elasticity of poverty to gini index (𝜺𝜽) mprs (− 𝜺𝜽 𝜼𝜽 ) 2020 headcount ratio (p0) -5.07 7.72 1.52 poverty gap (p1) -5.03 10.19 2.03 poverty severity index (p2) -6.41 14.81 2.31 2021 headcount ratio (p0) -4.55 6.76 1.49 poverty gap (p1) -5.90 11.26 1.91 poverty severity index (p2) -8.04 16.93 2.11 source: author’s processing. note: the poverty line in 2020 is 497,262 rupiah and in 2021 is 519,150 rupiah. list of figures figure 1. pgc in south kalimantan, 2020-2021 source: author’s processing. correspondence to : muntheadhie@gmail.com received: 16 november 2021 accepted 2 february 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 12 18 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction financial statements every company wherever the company is located and any type of company must produce financial statements from the company. the financial report itself is like a warning from within the company that shows the company's performance which shows that the company is in a good or bad state. the financial statements of a company must be based on accounting regulations in which the financial statements contain historical information from the company and a set of very important number calculations used in calculating the economic value (pujiyanti, 2015: 111). all types of companies in all sectors have similarities in the presentation of their financial statements, this similarity is a natural thing because, in the process of making financial statements, the financial report makers already have the rules or regulations that must be met by the company or kap as the report maker. finance. lee, (2014) argues that the form of financial statements from all industrial sectors or issuers is the same, namely based on financial accounting standards (sak) but what can distinguish is the type of account grouping where the account of one issuer sector or industry is not the same as one issuer sector or sector. other industries (p. 3). the financial statements provided by the company are so important, however, the audit or financial reports provided by the company often experience delays in reporting, delays that occur can greatly affect the company itself. suryani, siregar, and ika. (2020:) argues that the timeliness given by the company in the presentation of financial statements is a very important basis (p. 14). audit delay what happens in the company is an illustration of the quality of the financial statements provided by the company because the length of time the company provides financial reports can create distrust of the financial statements and make the quality of financial reports worse. the company's delay in reporting financial statements will harm the company itself because if the company is late in carrying out financial reporting, it will create a crisis of confidence in the company. according to kawatu, (2019) efficient financial reports should be provided at the specified time because the quality or function of late information will be reduced (p. 26). in producing financial statements, many factors can cause delays in providing financial statements, but this delay not only affects users of financial statements and companies but can also affect the following year's financial statements. onin 2003, the telkom company experienced delays in submitting its the influence of solvency, profitability, and size of kap on audit delay 2017-2019 period adhie maston1, judith t. galena sinaga2 1,2 faculty of economics, adventist university of indonesia, indonesia abstract the report of a financial statement is a description of a corporation's performance, without the existence of financial reports, users of financial statements such as owners, company management, investors, and others cannot know the development of the company. although financial reports are very necessary and useful, there are still many companies that are late in providing their financial reports (audit delay). this research was conducted to determine the factors that form financial statements such as solvency, profitability, and size of the public accounting firm (kap) that affect the occurrence of audit delay. the technique used in this study is a quantitative research method so that a sample of 90 financial reports can be obtained from 30 banking companies that provide their financial reports continuously from 2017 to 2019. keywords audit delay, kap size, profitability, solvency jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 12-18 financial statements, thus affecting the financial statements of the following year in 2004 and 2005 which also resulted in delays in providing financial reports (santosa, 2017: 465). in 2020 the indonesia stock exchange imposed sanctions on 23 issuers or companies that were late in reporting their financial reports to the idx, as reported in cbnc indonesia. ii and with a fine of 50 million. based on the news case above, there are still companies that carry out violations by providing financial reports late to the idx, which has violated the rules that have been set regarding the time limit for submitting audit or financial reports of their companies to the indonesia stock exchange. based on the regulation of the financial services authority (ojk) no. 29 /pojk.04/2016 concerning the annual report of issuers or public companies in article 7 regarding submission of financial reports states that issuers or public companies are required to submit annual reports to the financial services authority no later than the end of the fourth month after the end of the financial year. based on the above regulatory statement, companies and issuers must submit or provide financial reports which are no later than 120 days or 4 months after the company closes its books. financial statements can be formed from the existence of economic activities in the company, with that the purpose of this research is to find out the elements that make up financial statements which are formulated in several ratios and variables, namely the first is profitability, and the second is solvency and the third is profitability. the size of the public accounting firm (kap) that affects the dependent variable, namely audit delay by using banking sub-sector companies as sample data that provides financial reports for the period 2017 to 2019. this research was also conducted based on a research gap which has been found where in previous research it has not been found that there is research that researched from 2017 to 2019 which examined the effect of solvency, profitability, and kap size on audit delay. in previous research, it has not been found that there are researchers who research the effect of solvency, profitability, and kap size on audit delay on companies from the financial services sector, namely the banking subsector. based on the existing gaps, the researchers conducted research based on the known research gaps to fill the existing gaps to provide information that can increase knowledge regarding the provision of late financial reports (audit delay). theoretical review audit delays a position where the company is late in providing financial reports to the public. financial statements have the use of guessing, namely estimating the financial situation or financial needs, and future capabilities that will be faced by the company (kawatu, 2019:26). based on the information on the financial services authority regulations above, the audit or financial report should be reported at the time that has become the provision, because the audit or financial report contains data that can be used for the sustainability and the way the company moves and if the financial report experiences delays in reporting it will cause delays in the reporting process. reduce the quality of the financial statements. like the news in the newspaper, solvency is the capability to pay long-term bills, both principal and interest bills (kuswadi, 2008: 182). solvency is one of the financial ratios generated from the financial statements provided by the company to the public. companies that produce high solvency in their projections (having very large debt records) are very risky to company finances, but these companies can have a great possibility to generate greater profits by using the borrowed funds properly (hery, 2015:163). this study calculates and explains the solvency of one of the above ratios, namely using the ratio debt to equity ratio (der). this variable is the part that explains the relative portion between equity and debt used to finance the company's assets. der has a formula for calculating by comparing the total liabilities and equity of the company (darya, 2019:147). by using the der ratio, it can be concluded that the debt should not be greater than the existing capital of the company, therefore the higher the percentage of this ratio the more it shows that the condition of the company is getting better. profitability is a standard of the ability of a company to generate profits. according to zaharudin (2006), that profitability is the standard of an industry or business entity to generate profits by monitoring the capital used (p. 295). profitability can also provide information about the standard level of regulatory efficiency of a company (kasmir, 2016:117). in profitability, many ratios can explain profitability. according to prihadi jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 12-18 (2019), in general, looking for results from profitability can be grouped into three parts, namely: • return on sales (ros), is the level of profitability associated with the profits earned. • return on assets (roa), is the level of profitability associated with the assets used. • return on equity (roe), is the level of profitability associated with the company's assets (p. 166). but in this study in analyzing the profitability used is return on assets (roa). and this study aims to find the relationship between profitability and audit delay in the banking sub-sector. ubaidilah (2020:14) argues that roa is very much needed for company owners and company regulators to test efficiency and effectiveness in company management and regulate all company capital. profitability can be projected by dividing the net income with the results of the company's total assets and displayed in the form of a percentage (fakhruddin, 2008: 170). public accounting firm (kap) is a service company that assists a company in making financial reports in which the business entity has obtained permission from the minister of finance. based on the regulation of the minister of finance number: 154/pmk.01/2017 concerning the guidance and supervision of public accountants, it is stated that the kap of the business entity or service company that can be established based on the requirements of the legislation and has the approval to conduct business activities based on law number 5 years 2011 regarding public accountants. kap can provide a guarantee of independence from the service company to shareholders and users of financial statements if the report provided by the company or business entity has met the requirements of generally accepted accounting regulations (subroto, 2014:21). in the classification, these companies can be grouped into two types, namely big four kaps and non-big four kaps. what distinguishes the big four kaps and non-big four kaps is that the income from the big four kaps is greater than that of other kaps. companies from the big four branches in the united states often manage to get more profits than branch companies in all existing offices (dewi, 2010: 63). with the following explanation, the research has a direction to find out how much influence there is between kap size and companies from the big four branches in the united states often manage to get more profits than branch companies in all existing offices (dewi, 2010: 63). with the following explanation, the research has a direction to find out how much influence there is between kap size and companies from the big four branches in the united states often manage to get more profits than branch companies in all existing offices (dewi, 2010: 63). with the following explanation, the research has a direction to find out how much influence there is between kap size and audit delay. in assessing the effectiveness of management profitability, it is used by looking at the basis of the size of the repatriation obtained from the sale of the company and the investment received by the company (hery, 2017: 7). the good and bad of the company in managing sales and generating profits can be seen through profitability. a study conducted by saemargani and mustikawati (2015) concluded that profitability and audit delay has a significant influence between the two, this research is contrary to the research that has been carried out by suparsada and putri (2017) where the research produced is profitability which shows that there will be a negative influence on audit delay. amrin (2019) states that the notion of the solvency ratio is useful for assessing the power of the company in fulfilling its obligations if the company is about to be dissolved or liquidated (p 201). based on research from apriyana and rahmawati (2017) research states that solvency and audit delay have a positive influence on both, but in the research conducted by lestari and saitiri (2017) it is contrary to the journal above were the results of the research state that solvency does not exist. influence on audit delay or negatively affect audit delay. according to sari, hastuti, ratnawati, (2020:52) said that kap is a company or business entity that can operate based on the requirements of laws and regulations and obtain approval already based on the laws and regulations regarding public accounting firms. based on research that has been studied by puspitasari and latrini (2014) stated that the size of kap and audit delay has a significant influence between the two, but in contrast to research conducted by bahri, hasan, & carvalho (2018), the size of kap has a positive but not significant effect on delay audits. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 12-18 method research design this study uses a variety of data from quantitative data based on secondary data from banking sub-sector companies listed on the idx in the 2017-2019 period. data types and sources the data used by the author in compiling this report is data from the annual financial report (annual report) of the banking sub-sector companies in the period 2017 to 2019 where the research data used is obtained from www.idx.co.id which is the original website of the idx. population and sample from this study, the population is audit reports from all banking sub-sector companies listed on the idx. due to the large number of banking companies in indonesia that provide financial reports and are listed on the idx, many researchers also use research samples consisting of 90 research samples originating from audit or financial reports of 30 banks listed at the idx office in the 2017-2019 period. data analysis method in this research, statistical analysis used linear regression analysis to find out the relationship between the independent variable or dependent (x) and the dependent variable or independent (y). to find out the relationship in this study using the f significant test which is useful for finding together whether all of the independent variables can affect the dependent variable, the significant t-test used in this study is useful to determine the effect of one of the dependent or independent variables on the variation of variables. independent or dependent, the classical assumption test used in this research aims to provide knowledge that in the linear regression model there are problems in the classical assumption, and this research test the method using autocorrelation, heteroscedasticity, multicollinearity, normality, as well as the correlation coefficient test and the coefficient of determination. all tests carried out in this research aim to understand the impact of profitability, solvency, and size of kap which is the independent or dependent variable on audit delay, namely the dependent or independent variable. results and discussion 1. descriptive statistics analysis based on table 1, produces descriptive statistics on research related to the characteristics of the variables in this study. profitability found a minimum value of -6.4 and a maximum value of 3.13 with an average value of 0.6282. regarding the size of the kap, it was found with a minimum value of 0 (not big four kap) and a maximum scale of 1 (big four kap) with an average of 0.5889. and if you look at solvency, it has a minimum scale of 159.37% and a maximum scale of 1474.84% and the average scale obtained is 635.61%. regarding audit delay, it was found that a minimum scale of 15 days and a maximum scale of 141 days had an average audit delay scale of 60 days. in general, two things need to be presented in this section, namely research data and data analysis results. each component is separated by a subsection title. the technique of writing subsections follows the provisions previously described.: table 1. descriptive statistics n minimu m maxim um mean std. deviatio n roa 90 -6.40 3.13 .6282 1.62927 der 90 159.37 1474.84 635.61 276,74843 hood 90 .00 1.00 .5889 .49479 delay 90 15.00 141.00 60.0333 29.23652 valid n (listwise) 90 2. correlation coefficient table 2 shows the correlation coefficient has a very strong relationship from the variables of profitability, solvency, and kap size to audit delay seen from the value of r = 0.457. the table shows that in model 1 the r-square value is 0.208 which can be concluded that the contribution of profitability, solvency, and kap size to audit delay is 20.8%. table 2. model summary jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 12-18 mo del r r squ are adjus ted r squar e std. an error of the esti mate change statistics dur binwat son r sq uar e ch ang e f cha nge d f 1 d f 2 sig. f cha nge 1 .4 57 .20 8 .181 26.4 6186 .20 8 7.54 8 3 8 6 .000 1.30 5 a. predictors: (constant), kap, der, roa b. dependent variable: delay 3. significant test with this study, it was found that the model test with the f significant test obtained results in this study, which showed a significant influence on profitability, kap size, solvency on audit delay. this can be seen from the f test showing the f-count is 7.548 and the sig value. 0.000 < 0.05. table 3. f test results anova model sum of squares df mean square f sig. 1 regression 15855.099 3 5285.033 7.548 .000a residual 60219.801 86 700.230 total 76074.900 89 a. predictors: (constant), kap, der, roa b. dependent variable: delay 4. classic assumption test • durbin watson test the table explains it can be seen that dw 1.189 is in positions -2 and 2, so it is found that the test is accepted and the autocorrelation is not implemented. table 4. durbin watson model durbin-watson 1 1.189 • multicollinearity the table defines, it can be seen that vif < 10 and tolerance value > 0.10, then it is found that if the test is accepted and multicollinearity is not formed. table 5. multicollinearity model collinearity statistics tolerance vif 1 (constant) roa .888 1.126 der .906 1.103 hood .897 1.114 • p-plot uji test the table can be seen that the plot points are between the diagonal lines, thus it is found that the test is accepted that the data is normally distributed table 6. p-plot uji test • scatterplot from the table above, it can be seen that the plot points are spread out and do not form a pattern, thus it is found that the test is accepted that there is no heteroscedasticity. table 7. scatterplot jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 12-18 5. regression analysis table 8. t . test results model unstandardi zed coefficients standardi zed coefficie nts t sig . collinearity statistics b std. erro r beta tolera nce vif (consta nt) 65,93 7 8,78 1 7.5 09 .00 0 roa -4.933 1,82 7 -.275 2,7 00 .00 8 .888 1.1 26 der .009 .011 .089 .88 7 .37 8 .906 1.1 03 hood 14,95 6 5,98 4 -.253 2.4 99 .01 4 .897 1.1 14 based on this research, it can be concluded that the model test with a significant t-test illustrates that the results in this study have a significant effect on profitability and audit delay. this can be seen from the significant ttest showing t-count -2700 and the value of sig. 0.008 at the 5% significant level. regarding solvency, it is known that there is no significant effect between solvency and audit delay. it can be seen from the significant t-test which shows a t-count weight of 0.887 and a sig value. 0.378 > 0.05. based on this study, it was found that the model test with a significant t-test showed that this study had a significant influence between the size of the kap and audit delay. this can be seen from the significant t-test showing t-count -2.499 and the value of sig. 0.014 < 0.05. conclusion (tahoma 10 bold, uppercase) from this research was found that research related to profitability and audit delay had a significant influence between these two variables on bank sub-sector companies listed on the idx for the 2017-2019 period. this can be seen from the t-test showing t-count -2700 and the value of sig. 0.008 at the 5% significant level. this result is in line with hypothesis h1 which shows that there is a significant effect between profitability and audit delay. the results of this study are based on previous research by amani and waluyo (2016), suparsada and putri (2017). regarding the research hypothesis h2, it was found that the results of research related to solvency and audit delay did not have a significant effect on these two variables on bank sub-sector companies listed on the indonesia stock exchange for the 2017-2019 period. this result is not following hypothesis h2 which says there is a significant effect between solvency and audit delay. the results of the analysis that have been carried out are supported by previous research by soermargani and mustikawati (2015) and dewi and wiratmaja (2017). regarding the research hypothesis h3, it was found that the results of research related to the size of kap and audit delay were a significant influence between the two variables. this can be seen from the t-test showing t-count -2.499 and the value of sig. 0.014 < 0.05. this result is following hypothesis h3 which says there is a significant effect between kap size and audit delay. the results of this analysis are supported by previous research by puspitasari and latrini (2014) and harjanto (2017). suggestions the implementation of this research is useful for several parties such as: 1. the kap is expected to be able to complete the company's audit and be able to provide financial reports to the public following the time and regulations that have been applied. 2. to all companies that provide financial reports, it is hoped that they can complete the recording in the internal part of the company so that the company can hire auditors to carry out audits so that kap can provide financial 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(2018) effect of firm size, firm age, profitability, solvency, and size of public accounting firms on audit delay, ciastech 2018, 178-185. amani, f., a. & waluyo, i. 2016. effect of firm size, profitability, audit opinion, and company age on audit delay. empirical study on property and real estate companies listed on the indonesia stock exchange in 2012-2014. nominal journal. volume v number 1. goddess. p. & wiratmaja, n. 2017. the effect of profitability and solvency on audit delay with firm size as a democracy variable. e journal of accounting udayana university. vol.20.1. harjanto, k. 2017. the effect of firm size, profitability, solvency, and size of public accounting firms on audit delayempirical study of manufacturing sector companies listed on the idx for the 2013-2015 period. ultimate accounting. vol 9 no 2. correspondence to : emans.aero@gmail.com received: 4 october 2021 accepted: 12 november 2021 published: 30 december 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 4, 2021, pp. 1 10 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the covid-19 pandemic has killed many businesses, one of which is culinary efforts (stephen nelson cpa, 2020), ranging from micro, small, and medium enterprises (msmes) to many well-known restaurants that have gone out of business because they have difficulty getting income (duke, 2020). during the pandemic, culinary businesses in cirebon have experienced a decrease in turnover from 80 to 100 percent. some of them have even been forced to close their businesses. there are currently 365 culinary msme business actors affected by covid-19, 59 of whom have not received income in the last few months (fery afrudin; 2020). the culinary business, which is an opportunity for some people, must remain productive and competitive to earn income in the midst of the plague that has hit and is also an opportunity. from this downturn, various parties must combine strategies so that businesses rise up to provide truly outstanding customer service and produce fresh and delicious culinary products (or their business equivalent) while under the limits of the pandemic will emerge stronger with a strong business advantage actually(duke, 2020) to increase sales volume. with strict health protocols in various sectors, changing the perspective of marketing products is by digitizing business (bouwman et al., 2019). these new digital technologies can be seen as reducing the costs of certain marketing activities. digital marketing explores how traditional marketing areas such as pricing, promotion, product, and placement change as certain costs fall substantially, perhaps approaching zero. using the framework in a recent summary of the digital economics literature (goldfarb & tucker, 2019). digital marketing offers new ways to reach, inform and engage customers and offer and sell products and services to them. this has been done with great success and as such, digital marketing is expected to remain at the forefront of the technological revolution (ko, 2019; lamberton & stephen, 2016; martín consuegra et al., 2018). digital marketing via social media and mobile is rapidly becoming a part of the daily lives of millions of people, developing into common social media activities, and often leading to the creation of customer relationships (fujita et al., 2017; han et al., 2016; nguyen et al., 2015; woodside & bernal mir, 2019) which will have an impact on increasing sales volume. fascinating digital marketing, excellent service, brand awareness, tactics that can help business grow during pandemic on smses culinary tourism ellin herlina1, eman sulaiman2,3, vina andita pratiwi4 1 master of management: postgraduate, stie cirebon, cirebon 2,3 doctoral student: faculty of economics and business, universitas jendral soedirman, purwokerto. 3 stie cirebon, cirebon 4 management study program, stie cirebon, cirebon abstract this study objectives to decide the impact of digital marketing on sales volume, to determine excellent service on sales volume, and to determine the effect of brand awareness on sales volume in culinary msme businesses during the pandemic in cirebon. the data analysis technique used statistical package for the social sciences method, the data collection method uses an online form questionnaire to culinary entrepreneurs in cirebon. the sampling technique used the probability sampling method with a sample size of 74 respondents. based on the study results, it can be concluded that digital marketing, excellent service, brand awareness has a positive effect on sales volume during the covid 19 pandemic in culinary msme businesses in cirebon. keywords digital marketing, excellent service, brand awarness, sales volume, msmes jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 1-10 increasing of sales volume manager must improve. brand awareness is an indicator effect of sales volume. brand awareness is the ability of a private person to recognize or remember that a brand can be part of a selected product category (aaker, 1999). strong awareness of a brand plays a crucial (balaji, 2011; k. l. keller, 2009). role in increasing buying intention, especially during this case, culinary tourism. a brand's ability to regulate the market will make it easier for consumers to form decisions (rinova & putri, 2020). futhermore excellent service literature shows that the use of a customer satisfaction approach generally improves financial performance (anderson et al. 1997, 2004; gupta and zeithaml 2006; kamakura et al. 2002; rust et al. 1995). three potential customer satisfaction and productivity focused strategies could be pursued by service organizations. we concentrate specifically on the high end of customer satisfaction, i.e. excellence in service. empirical evidence suggests that they reap the strongest longterm added value once companies achieve strategic a dual policy. in this study, we explore how service exellent could be able to achieve this dual strategy. we conclude that customer satisfaction is a continuum and that there is an increased profit return for organizations with strong levels of service excellence than those focusing on productivity or trying to implement a dual strategy. we hope that your use of this article has helped you understand the sales sector's customer satisfaction (wirtz & zeithaml, 2018). literature review and hypotheses digital marketing digital marketing highlights technologies with market goods, services, information and ideas via the world wide web, cell devices, statistics shows and other digital content in marketing activities and business practices. data-driven marketing uncovers diverse techniques for approaching, retaining, knowing, delighting and guiding online marketing customers. many famous authors have cited digital marketing and are unlikely to state their thoughts about it. "referring to this, strauss and frost describe it as: "the use of electronic data and applications to plan and implement the conception, delivery and pricing of concepts, products and services to create exchanges that meet individual and organizational objectives” (judy & strauss, 2001). smith and chaffey describe it as: "achieving marketing objectives through the application of digital technologies". (chaffey, 2010). digital marketing encourages business development and brand value, thus ensuring growth and increased exposure. msmes with a high level of digital maturity that react to the challenges by speeding up the transition to digitalized companies; second, smes with liquidity problems but a low level of digital maturity only decide to digitalize the sales feature (priyono et al., 2020). digital marketing for small and medium-sized enterprises and previous studies to close the gap between digital marketing and its application in small and medium-sized enterprises. as systematic winning strategies implemented would give a strong start to marketing campaigns, smes need to be prepared for the role of digital marketing (pradhan et al., 2018). excellent service the main problems and challenges for the service industry today are excellent service quality and high customer satisfaction (hung et al., 2003) including the culinary tourism msme industry (lahindah et al., 2018). services are activities or benefits offered to individuals by organizations or individuals that are intangible and can not be owned (daviddow & uttal, 1989). according to (maddy, 2009) excellent service is, in other words, a service that meets quality standards. a service that meets quality standards is a service that meets clients' or society's expectations and satisfaction. it is a tough task to provide an outstanding service experience and deserve all employees' full attention, from top management to guest contact employees. there is one overarching lesson for the benchmark service organizations to teach us: a total organizational commitment to customer service and satisfaction can lead to success in any business field (ford, 2001) and promote customer delight (johnston, 2004). brand awareness the basis of brand awareness in building brand equity depends on the strength of brand quality from the buyer's intention.. it becomes operational as the degree of awareness (review and recognition)of a brand becomes apparent. the most significant brand attention levels considerably affect advertising efficiency (k. k. keller & swaminathan, 1998) and improve the chances of being considered jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 1-10 in future purchasing circumstances. brand awareness is a predominant decision strategy in the configuration of recurring customer purchase items (hoyer & brown, 1990). (bogart & lehman, 1973) found that the commonality of a brand among the essentially identical items creates an impression of separation. also, despite differences in cost and quality, buyers tend to choose a brand with a high level of awareness (samiee et al., 2005). (cacioppo et al., 1983) argued that the inclusion of articles directs the effect of brand awareness on the buyers' purchase options. staying alert is visualized to incentivize the brand by forming a base to which different credits can be related. in this way, standing out to consumers, building a solid brand awareness becomes a necessity. micro, small and medium enterprises – msmes there is no universally accepted msme definition (agyapong, 2010). based on local operations and conditions, different regions or countries have defined msmes. a link between entrepreneurial ventures and economic development was established. (schumpeter, 1934) the link between micro, small and medium-sized businesses, entrepreneurship and financial well-being can be traced back to time. msmes are dominated by one individual, according to (mensah, 2004) with all important decisions being taken by the owner or manager. they have weak management skills, thereby inhibiting the development of a sustainable growth strategic plan. the lack of technical know-how and the inability to acquire skills and advanced technology impede the possibility of growth. small firms with fewer than 200 employees have increased their overall share of total employment in france, germany, italy, japan, the uk and the usa, according to (loveman & sengenberger, 1990). in indonesia, law number 20, 2008 lays down the meaning of msmes. this law establishes net resource estimate barring areas and the operation of business premises, as set out in art. 6, as the norms used for characterizing an msme. under the provisions of these measures, mie is a specialist unit with an estimated benefit of up to 50 million indonesian rupiah ( rp) or the annual deal of rp300 million; se is an advantage unit with an estimated advantage of over rp50 million up to rp500 million or more than rp300 million annually up to rp2,5 billion; in contrast, bps receives workers under rules: mie 0-4 persons; se: 5-19 persons; me: 20-99 persons; and le: > 99 persons (tambunan, 2019). methods the population in this study were all smes culinary tourism players in cirebon. the sample of this study was 74 food and beverage saffron smes based on statistical data from the department of trade, cooperatives, small and medium enterprises (disperindag, 2020). the sampling method in this study is probability sampling, which means that each item in the population has the same opportunity to be included in the sample (taherdoost, 2018). in this study, the sample size is 74 respondents who work as culinary entrepreneurs in the city of cirebon. this study uses primary data and secondary data. primary data were obtained from questionnaires distributed by culinary entrepreneurs in cirebon city, and secondary data from other sources such as journals and books. the data analysis method used is the method of statistical package for the social sciences. the hypothesis in this study are: h1: digital marketing has a positive impact on sales volume. h2: brand awareness has a significant positive impact on sales volume. h3: excellent service has a positive impact on the sales volume method. hypothesis testing criteria (suliyanto, 2018): the hypothesis is accepted if c.r (critical ratio) = t-table. the hypothesis is rejected if the c.r (critical ratio) < t-table. results and discussion this study uses data from 74 respondents in culinary tourism businesses in cirebon. after processing and analyzing data obtained from answers to questionnaires distributed to respondents regarding the influence of digital marketing, excellent service, and brand awareness on sales volume, the following description is obtained: h1. effect of digital marketing on sales volume partially testing the influence of the digital marketing (x1) variable on the sales volume (y) shows that the digital marketing variable can predict sales volume. the significance jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 1-10 value of 0.001 <0.05 means that the hi hypothesis is accepted. when viewed from the t-test, it is found that the t value is 6.905 while the t table value is 1.994. thus, the t-count > t-table way that the formerly formulated speculation states are an effective and good sized impact of digital marketing on sales volume is accepted. alternatively, in other words, digital marketing can predict an increase in sales volume. the magnitude of the positive influence of digital marketing on sales volume is 62.1%. according to pradiani (pradiani, 2017) regarding digital marketing: "a wider target can be reached by digital marketing to penetrate the international world. wherever it is now marketing can be done because almost everywhere there is an internet network and everyone has a device, namely a smartphone". marketer (2017: 47) states the advantages of digital marketing: 1. can connect producers with consumers via the internet. 2. get higher sales income because of the less distance and time. 3. costs incurred are much more efficient. 4. digital marketing allows sellers to provide real-time services 5. connecting sellers with customers via mobile devices anywhere and anytime. from the research results and supported by expert opinions regarding digital marketing and its effect on sales volume, it can be concluded that through digital marketing sales volume can be increased because of the ease of promoting and a wider reach through the internet network used. h2. the effect of excellent service on sales volume partial testing of the influence of the prime service variable (x2) on sales volume (y) shows that the excellent service variable can predict sales volume positively. the significance value of 0.000 means that the hypothesis is accepted. when viewed from the t-test, it is found that the t value is 5.242 while the t table value is 1.994. thus, tcount> t-table means that the previously formulated hypothesis states that a positive on sales volume is accepted. the magnitude of the influence of the prime service on sales volume is 57.6%. the research hypothesis states that a effective and important influence, this means that expanded sales volume may be carried out with excellent. (parasuraman et al., 1985; sutopo & suryanto, 2016) argue that "the purpose of excellent service is to provide services that can meet and satisfy customers or society and provide a focus on customer service". excellent service in the business or private sector, of course, always aims or is oriented to the company's profit or profit. from the research results and supported by expert opinion, it is clear that excellent service can increase sales volume. h3. the influence of brand awareness on sales volume the partial testing of the influence of the variable brand awareness (x3) on the sales volume (y) shows that the variable brand awareness can positively predict the sales volume. the significance value of 0.000 means that the hypothesis is accepted. thetvalue was found to be 5.890, while the t-table value is 1.994. therefore, tcount> t-table means that the previously formulated hypothesis that "there is a absolute influence of brand awareness on salesvolume" is accepted, or brand awareness can, in other words, predict an increase in sales volume. the influence of brand awareness on sales volume is 80%. the research hypothesis is that there's still a positive and significant impact of brand awareness on sales volume. brand awareness can increase sales volume. brand awareness is linked to the strength of the impression stored in memory reflected in the capacity of the client to retrieve or interact with the brand in different conditions. brand awareness can be characterized according to its depth and breadth. the depth of brand awareness it concerns the prospect that even a brand may be recognised or noticed again. the breadth of brand awareness relates to the variety of buying and consuming situations in which a brand is remembered. (keller, 2016) the brand (brand) is significant because the differentiation of one product from another depends on the brand displayed. in this perspective, the brand features as a manner for corporations to foster and expand consumer loyalty. a sturdy emblem will offer a bonus in pricing rules and emerge as a barrier for the competition to go into the market. conclusion based on the results of the report, the following conclusions can be drawn: digital marketing has a positive and important influence on sales volume. the sum jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 1-10 of digital marketing impact on sales volume is 62.1 per cent. excellent service has a positive and substantial impact on sales volume.the magnitude of the influence of excellent service on sales volume is 57.6%. there is a significant effect of brand awareness on sales volume. the amount of influence of brand awareness on sales volume is 80%. there is a joint influence of digital marketing, excellent service and brand awareness on sales volume. the amount of positive influence of digital marketing, excellent service and brand awareness on sales volume is 49.8%. this research's limitation is that the writer only measures three variables that affect the increase sales volume in a culinary tourism msmes. future research can be done by adding other variables that might affect the increase sales volume. it could be by adding mediation between independent variables and dependent variables in the study. also, future research can be done by applying the model to other products, both goods and services. references aaker, j. l. 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(2019). clicks and purchase effects of an embedded, socialmedia, platform endorsement in internet advertising. journal of global scholars of marketing science, 29(3), 343–357. https://doi.org/10.1080/21639159.2019.1622 437 list of tables table 1. micro, small and medium enterprises (umkm) in the culinary sector in cirebon city in 2019 no territory total 1 kejaksan 12 2 lemah wungkuk 8 3 harjamukti 38 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 1-10 4 pekalipan 5 5 kesambi 11 jumlah 74 source: department of trade, cooperatives, small and medium enterprises (2020) table 2. the results of the calculation of the validity test of all items of the variable instrument x1 (digital marketing) table 3. the results of the calculation of the validity test of all items of variable instrument x2 (excellent service) jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 1-10 table 4. the results of the calculation of the validity test of all items of variable instrument x3 (brand awareness) jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 1-10 table 5. the results of the calculation of the normality test test statistics table 6. the results of hypothesis testing for multiple regression analysis jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 1-10 list of figures figure 1. model test annotation: x1 = variable of digital marketing x2 = variable of pelayanan prima x3 = variable of brand awareness y = variable of sales volume correspondence to: widtyas@gmail.com received: 2 february, 2021 accepted: 10 march, 2021 published: 30 march, 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 1, pp. 1 8 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction financial behavior is related to a person's attitude in managing their finances. the right financial behavior would affect a person's wellbeing. on the other hand, bad behavior had long term socially negative consequences (perry and morris, 2005). financial behavior is a person's ability to plan, manage, control, earn, and save his or her finance. financial behavior appears because of the goal of meeting the life necessities in line with the level of income earned. consumption, savings, investment, and credit management are part of financial behavior that usually people have in life. some of the university students as the millennial generation have not been able to organize their financial aspect especially in spending the income they earn, both the income from their parents and the income from their own jobs. the financial behavior that students learn in their lives tended to influence their future decisions (shim, xiao, barber, & lyons, cited in selcuk, 2015). assad (2012) in his research revealed that perceived financial knowledge influenced financial decisions. financial knowledge is part of the financial literacy dimension which can influence financial behavior. based on the financial inclusion index released by the financial services authority (ojk), the level of student literacy in indonesia has only reached 64.2%. for students and university students, the level of financial literacy is 23.4% which is still classified as very low. financial literacy is defined as person’s financial knowledge about financial products and the concept of skills in managing finances. financial knowledge and understanding will influence a person's behavior in making decisions related to finance, such as saving, planning and managing finances that are not yet organized well. regardless of the income technology based financial services innovation, financial literacy and its impact on financial behavior ekaningtyas widiastuti1, sugeng wahyudi 2 1student dim of diponegoro university, indonesia 2lecturer of economic and business faculty diponegoro university, indonesia abstract information technology grows rapidly and has brought tremendous benefits to the advance of human civilization. people in indonesia are well known with their quick adaptation ability to any changes including changes in information technology, such as in utilizing available financial services. university students as millennial generation cannot be separated from technology in all aspects including finance. innovative technology-based financial services (fintech) provide flexibility for the community, including students, to meet their needs. financial knowledge and understanding will influence a person in making decisions and behaving appropriately related to effective and efficient financial management. this research focused on students at different universities in purwokerto, to examine the impact of technology-based financial service innovation and financial literacy on student financial behavior. questionnaire was used as the data collection method. convenience sampling was used as the sampling technique and multiple linear regression used as data analysis in this study. the results showed that social demography, financial socialization and fintech had no influence on financial behavior. financial knowledge and financial attitude had a positive influence on financial behavior. keywords social demography; financial knowledge; financial attitude; financial socialization; fintech; financial behavior. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 1 8 or money they receive from various sources used to meet their needs, if they do not spend it wisely, they will always feel insufficient. studies related to the determinants of financial behavior found inconsistencies in their results. demographic factors, knowledge, financial attitude, and financial socialization influence financial behavior. akben-selcuk elif's research (2015) among turkish students found that financial knowledge had significant positive influence on financial behavior. in contrast, research by m. husni mubarok (2017) in puspitaningtyas (2020) found different results that demographic factors had negative and insignificant influence on family financial management behavior; second, financial knowledge had positive and insignificant influence on family financial management behavior; and third, personality traits had positive and insignificant influence on family financial management behavior. rusliza yahaya's research (2019) proved that financial attitudes influenced financial behavior, but financial knowledge did not influence financial behavior. in studying financial behavior among university students, technology cannot be separated and they even have a dependence on technology in all aspects related to finance. fintech-based digital financial services provide flexibility for university students to meet their needs. the use of mobile banking financial services and investment through technology such as smartphones and laptops are examples of a combination of technology with the financial system to make it easier for people including university students to access financial services. university students take advantage of technology-based financial services as a means of payment transactions, transfer, and even for investment. based on the data from a report entitled digital banking in indonesia: building loyalty and generating growth from the business management consulting company mckinsey & company (in rasyid, 2019), the penetration rate of the use of fintech-based financial services in indonesia was still around 5%. the data showed that compared to china with a percentage of 67%, hong kong with 57% and india with 39%, indonesia was still relatively low. however, looking at the very fast growth of digitalization in indonesia, shows that indonesia has the opportunity and potential to develop. humaidi, ahmad et al ,. (2020) showed the results that financial technology and financial literacy had a significant positive effect on financial management behavior in the productive age population in surabaya. the development of this technology is expected to be a medium for the development of students’ mindsets, so that it can be reflected in their behavior related to their finances. especially if it is supported by adequate financial knowledge and understanding, it will have an impact on good financial planning and management. this study aimed to determine the impact of fintech-based financial service innovation and financial literacy on student financial behavior in order to plan and manage their personal finances. determining the right strategic efforts in improving financial attitudes or behavior would be able to change their mindset so that they could act appropriately in managing their finances. this research focused on university students from various universities in purwokerto. financial behavior financial behavior could be defined as human behavior that was relevant to money management (xiao, 2008). according to shefrin (2000) in fitriarianti (2018) financial behavior was a study that studied how psychological phenomena affected financial behavior that was practiced in financial decision making. good financial knowledge could encourage people to form positive financial behavior (hilgert, et al., 2003). xiao (2008) explained that financial behavior had a high influence on financial decision making, which could affect personal finances as a whole. individuals need financial knowledge to make decisions that will improve the quality and welfare of life now and in the future. an individual behavior would reflect the application of knowledge (wiharno, 2018). financial behavior is an individual action such as recording income and expenditure, making investments, taking insurance, calculating, predicting and having the courage to face the risks of decisions that are related to finance. fintech development in indonesia the development of technology has changed most of human life, including business. financial technology innovation started in the banking world with the arise of the core banking system (cbs), an application that is the heart of the banking system. the development of financial technology spread to clients with the growth of start-up and hightech companies that create financial jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 1 8 technology innovations. the financial services sector with information technology known as financial technology (fintech) synergizes to achieve the goal of maximizing the use of technology in accelerating financial services. indonesian fintech association (afi) aims to provide trusted and reliable business partners to build a fintech ecosystem in indonesia originating from indonesian companies and for indonesia itself. up to now, there are 140 fintech users in indonesia with 55 of them being members of the organization. in 2016, the indonesian financial services authority (pojk) regulation issued a new regulatory policy regarding fintech about off balance sheet borrowing by the market and by the payment transaction process by bank indonesia. financial literacy according to the financial services authority (ojk) (2016) financial literacy was knowledge, skills, and beliefs that influence attitude and behavior to improve the quality of decision making and financial management in order to achieve welfare. the development of financial literacy has become increasingly important recently due to complex financial problems. there are many people who do not understand the financial concepts and financial equipments needed to make more profitable decisions. tyson (2010) argued that people should increase financial literacy because people who were less knowledgeable about finance would have more financial mistakes. financial literacy comes from a person's personal financial knowledge and its application to his or her personal finance. financial literacy helped a person to understand, had confidence, and had motivation to make wise financial judgments and decisions (gachango, 2014 in reswari 2018). hypothesis h1 : socio demography has a positive effect on financial behavior h2 : financial knowledge has a positive effect to the financial behavior. h3 : financial attitude has a positive effect to the financial behavior. h4 : financial socialization has a positive effect to the financial behavior. h5 : fintech-based financial service innovation has a positive effect to financial behavior. figure 1. research model methods respondents in this study were students from various universities in purwokerto. the universities which became samples were jenderal soedirman university (unsoed), wijaya kusuma university (unwiku), state islamic university (uin), muhammadiyah purwokerto university (ump), and amikom purwokerto university (amikom). sampling was done using convenience sampling technique. the dependent variable (y) was influenced by the independent variable. in this study, the dependent variable used was financial behavior, which was a study that studied how psychological phenomena affect financial behavior that was practiced in financial decision making. the independent variable (x) in this study were the variables such as social demography, financial knowledge, financial attitude, financial socialization and financial technology. multiple linear regression analysis multiple linear regression analysis was used to see the influence of several independent variables (x1 and x2) on the dependent variable (y), or in other words that there were variables that influence and there were variables that were influenced. the regression equation (sugiyono, 2007): y = 𝛼 + 𝛽1𝑋1 + 𝛽2𝑋2 + 𝛽3𝑋3 + 𝛽4𝑋4 + 𝛽5𝑋5 + 𝜀 annotation: y : financial behavior a : constants from the regression equation b1,b2,b3,b4,b5 : regression coefficient of x variable x1 : socio demography x2 : financial knowledge x3 : financial attitude x4 : financial socialization x5 : financial technology ε : residual value/error jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 1 8 determination coefficient the coefficient of determination was the part of the total variation in the dependent variable that was explained by the variation in the independent variable. also called r-squared and denoted r2. if the coefficient of determination r2 = 0, it meant that the independent variable had no influence at all (= 0%) on the dependent variable. conversely, if the coefficient of determination r2 = 1, it meant that the dependent variable was 100% influenced by the independent variable because it was located in the interval between 0 and 1, algebraically it was stated as 0 ≤ r2 ≤ 1. significance test of simultaneous influences (test f) this f test was used to test the accuracy of the research model, whether or not the predicted value was able to describe the real conditions. if f count > f table, or a significant value < α (0.05), then the fintech variables and financial literacy simultaneously influenced financial behavior (ha was accepted and h0 was rejected) if f count < f table, or significant value > α (0.05), then the variables of fintech and financial literacy simultaneously had no influence on financial behavior (ha was rejected and h0 was accepted) significance test of partial influence (t test) this t test was used to determine the influence of the independent variable on the dependent variable partially. by using 95% confidence or α = 0.05 and with degrees of freedom (n-k), the formulas h0 and ha were compiled as follow: the criteria for the t-test were: h0: there was no influence between variable x and variable y. ha: there was an influence between the x and y variables. if t count ≥ t table or probability <0.05, it meant h0 was rejected and ha was accepted. if t count ≤ t table or probability> 0.05, it meant h0 was accepted and ha was rejected. results and discussion results of data analysis and discussion the statistical analysis used in this study was multiple linear regression analysis. the regression model obtained from the ordinary least squares method (ols) was a regression model that produced the best linear unbiased estimator (blue). this condition would occur if several classical assumptions were met. after testing the validity and reliability as well as testing the classical assumptions and the results were met, the next section was a discussion of the results of multiple linear regression testing. based on the results of calculations using the spss program, the results of the analysis were as follow: regression equation table 1. results of multiple linear regression analysis variable b t count sig. constant 3,033 0,908 0,366 social demography (x1) 0,089 0,364 0,717 financial knowledge (x2) 0,541 3.372 0,001 financial attitude (x3) 0,957 4.933 0,000 financial socialization (x4) 0,033 0,335 0,738 financial technology (x5) 0,087 0,671 0,504 r2 0,702 sig. f 0,000 based on the tests done, the following equation results were obtained: y = 3,033+0,089x1+0,541x2+0,957x3+ 0,033x4+0,087x5 determination coefficient (r2) based on table 2, it could be seen that the coefficient of determination (r2) was 0.702 and indicated a godness of fit. the value of 70.2% indicated that the regression equation model in this study was able to explain the relationship between the dependent variable (financial behavior) and the independent variable (social demography, financial knowledge, financial attitude, financial socialization and financial technology) by 70.2%; which meant that financial behavior could be explained by social demography, financial knowledge, financial attitude, financial socialization, and financial technology. while the remaining 29.8% was influenced and explained by other factors outside the model that were not mentioned or tested in this study. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 1 8 simultaneous testing (test f) based on table 2, it was known that the significance value of f (0,000) ≤ α (0.05), which meant that the regression equation model formed had model accuracy (goodness of fit) or it could be said that the independent variables (social demography, financial knowledge, financial attitude) , financial socialization and financial technology) simultaneously influenced financial behavior. partial testing (t test) based on the partial test results shown in table 2, the significance value of the social demography variable was 0.717, which was greater than 0.05, meaning that it did not have a partial effect on financial behavior. meanwhile, the significance value of the financial knowledge variable was 0.001 and the financial attitude variable was 0.000, both values were smaller than 0.05, which meant that partially the financial knowledge and financial attitude variables had an effect on financial behavior. the financial socialization variable had a significance value of 0.738 and financial technology of 0.504. both of these variables had a significance value above 0.05, meaning that they did not have a partial effect on financial behavior. discussion of hypothesis test results the influence of social demography on financial behavior the partial test results showed that social demography had no influence on financial behavior, so the hypothesis that social demography influenced business performance was rejected. social demography was the study of population (an area), especially regarding the number, structure (composition of the population) and its development (changes) from time to time. demographic variables included job status, marital status, income, type of work, age, gender, work experience, and education level. the results of the study proved that the gender, age, income of most respondents did not influence financial behavior. this result was not in line with research conducted by walczak damian and sylwia (2018) which found that men and women showed different financial behaviors. astari and widagda (2014) also found that gender in the perspective of differences between men and women influenced personal financial management. women used more economic and efficient principles than men, and people who had better or higher incomes would have better financial management. therefore, although the results of this study stated that sociodemography had no influence on financial behavior, this was possible because people, both men and women of productive or not productive age and highly educated or not highly educated currently prefer having consumptive lifestyle rather than increasing income. they were also not having intentions to invest or partially save. financial advantages were like how to manage personal finances to support the achievement of welfare both now and in the future. the influence of financial knowledge on financial behavior the results of the partial test showed that financial knowledge had a positive influence on financial behavior, so the hypothesis which stated that financial knowledge had an influence on business performance was accepted. this meant that the higher and the better financial knowledge a person had, the better his financial behavior would be. most students at the universities in purwokerto already knew and understood the basic knowledge of financial management, how to save properly, had savings and atms, and did savings transactions (opening accounts, deposits, withdrawals). they also have studied financial management from social media or the internet, and learned financial management from financial experts through seminars. the results of this study supported the theory of financial behavior that used cognitive processes in managing and solving problems in decision making. the higher the knowledge of one's finances, the better the management and problem solving in making investment decisions, the better the financial behavior would be. these results supported the statement emphasized by gutter (2008) that financial knowledge was the main prediction in shaping financial behavior. this result was also in line with the research of potrich et al (2014) which found that financial knowledge and financial attitudes had a positive influence on financial behavior. the influence of financial attitude on financial behavior based on the results of hypothesis testing, it was known that financial attitudes had no significant effect on financial behavior. this result was not in line with hayhoe, et.al (1999) which stated that there was a relationship jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 1 8 between financial attitudes and the level of financial problems. therefore, it could be said that a person's financial attitude also influenced the way a person managed his financial behavior. marsh (2006) also stated that a person's personal financial behavior arose from their financial attitude. consequently, although the consequence was that financial attitudes did not have a significant influence on financial behavior, this could occur because individuals who were not wise enough in responding to their personal financial problems tended to have bad financial behavior. the better a person's financial attitude or mentality, the better his financial behavior. the influence of financial socialization on financial behavior based on the results of hypothesis testing, it showed that financial socialization had no influence on financial behavior. the results of this study were not in line with research conducted by joo et al (2003) which found that there were several factors that influence financial behavior, such as environment, socialization, and other factors. elif akben selcuk (2015) also found that parental teaching on finance had a positive impact on financial behavior. from these results it could be seen that the role of family, especially parents and friends as agents of financial socialization, did not affect respondents in financial management. family was an important socialization medium because family was the first socialization environment, family characteristics can influence communication patterns about finances that lead to good financial behavior. the influence of fintech on financial behavior the results of the analysis showed that fintech had no influence on financial behavior. most students in purwokerto have taken advantage of the available technology-based financial service facilities. they could use digital or online services for transactional purposes and could take advantage of existing promos from fintech products, in the form of go-pay, ovo, tcash, and dana. but in reality, not everyone could understand fintech products well. what they should do was securing their financial position, such as saving and managing finances properly. the negative impact sometimes made them consumptive because it was easy to spend their money while they didn’t feel like spending money physically. so that the existing technology-based financial services could not influence students to behave appropriately in relation to their finances. they have not been able to make the right decisions in managing their finances. this indicated that the availability of financial services must be supported by good financial literacy in order to avoid irresponsible financial behavior. strategic efforts that can be done are optimization of technology-based financial services is applied by providing broad literacy to the community in general and students in particular so that it can be used and utilized effectively and efficiently. this implementation will influence them in acting and making decisions related to finance in their lives. many factors in increasing financial behavior. the college students as a respondent of this research ought to problem approximately this phenomenon via figuring out their mindset in finance concerning financial behavior conduct with the intention to have a great conduct in finance. conclusion social demography had no influence on financial behavior. it means that regardless of age, gender and income, it had no affect students to be able to manage their finances effectively. financial knowledge had positively effects on financial behavior. it means that the better the knowledge of ownership of money, investment and savings, the better it will be to consider decisions and actions to be taken. financial attitude had positively effects on financial behavior, means that the attitude related to finance make they know must buy things that they need more, not what they want. financial socialization had no effect on financial behavior, means that if more and more people interact with financial dissemination agencies such as parents, educations, friends and the media had no effect the behavior of finance. fintech had no effect on financial behavior, means that the fintech application, the existing promos (like go-pay, ovo, t-cash, funds) 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(2013). financial literacy and financial behavior among young adults: evidence and implications –, volume 6 issue 2 scholar commons. sugiyono. (2010). statistika untuk penelitian. alfabeta. bandung. sugiyono. (2007). “metode penelitian kuantitatif kualitatif dan r&d”. alfabeta. bandung tyson, e. (2010). personal finance for dummies, 6th edition. wiley publishing. wiharno, herma.(2018). pengaruhfinancial knowledge, financial behavior dan financial attitude terhadap personal financial management.(survei pada masyarakat di kabupaten kuningan. jrka. volume 4 isue 1, p.. 64-76 xiao, j. j. (2008). applying behavior theories to financial behavior. handbook of consumer finance research. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 1 8 list of tables table 1. results of multiple linear regression analysis variable b t count sig. constant 3,033 0,908 0,366 social demography (x1) 0,089 0,364 0,717 financial knowledge (x2) 0,541 3.372 0,001 financial attitude (x3) 0,957 4.933 0,000 financial socialization (x4) 0,033 0,335 0,738 financial technology (x5) 0,087 0,671 0,504 r2 0,702 sig. f 0,000 table 2. operational definition of variables no. variable indicator measurement 1 financial behavior consumption, cash management , saving and investment, credit management (xiao and dew , 2011) likert scale is to measure the question with the value from 1-5 1 strongly dissagree 2 disagre 3 neutral 4 agree 5 strongly agree 2 social demography age, gender, education, income (agarwalla , 2013) likert scale is to measure the question with the value from 1-5 3 financial knowledge ownership, saving, insurance, investment (sakinah, 2018). likert scale is to measure the question with the value from 1-5 4 financial attitude financial orriented, account payable, financial safety, personal financial (sakinah, 2018) likert scale is to measure the question with the value from 1-5 5 financial socialization friends, family, media / internet, money skilled (venkataraman, 2018). likert scale is to measure the question with the value from 1-5 6 financial technology online transaction, card payment, account receivable. (ansori, 2019) likert scale is to measure the question with the value from 1-5 list of figures figure 1. research model correspondence to : candraandhikabolot@gmail.com received: 30 august, 2021 accepted: 5 september 2021 published: 30 september 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 3, 2021, pp. 56 64 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction banks have a very important role in the economy and national development. bank papua began to undertake a diversification strategy in the form of business diversification as a step intended to obtain maximum profit by combining several investment portfolios whether by producing various goods, establishing a number of business units, or establishing new subsidiaries or even buying companies that are already established (hariadi, 2005: 37). bank papua's business diversification is the development of a single business by adding more business units to the bank. this strategy is an attempt by bank papua to expand by opening branch offices outside papua. this diversification strategy is expected to enable bank papua to earn more revenue as more branch offices are opened. this effort is also a step to improve bank performance. diversification strategy in the economy, diversification includes business and products diversification in products, stated by kotler and armstrong (2008: 71) which explains that diversification is a strategy in growing a company by starting a new business or buying other companies outside the company's products and markets that are already owned when this. hariadi (2005: 37) defines business diversification as a step that is intended to obtain maximum profit by combining several investment portfolios whether by producing various goods, establishing business units, or establishing new subsidiaries or even buying existing companies. the definition is also put forward by coulter in rahayuningsih (2015: 443-445) defines business / business diversification as a company growth strategy where the company expands its operations by entering different industries rahayuningsih (2015: 443-444) suggests that diversification is carried out to increase total company value. value is created when a particular strategy enables business units to increase revenue or reduce costs while implementing its business-level strategy. another reason is to get more market power than its competitors. in addition, a diversification strategy is implemented to neutralize the market power of competitors and to expand the company's portfolio in order to reduce managerial employment risk, for the effect of banking diversification strategy on the performance of bank papua candra andhika1, sabihaini2 1,2master of management study program, faculty of economics and business, yogyakarta “veteran” national development university abstract this study aims to describe the performance of bank papua after diversification and to analyze the effect of diversification strategies on the performance of bank papua. this research is a quantitative study with a population of 37 bank papua branch offices throughout indonesia. the data source used is secondary data in the form of financial reports for 2016 2018. data analysis using descriptive analysis and linear regression. the results showed that the diversification strategy carried out by bank papua had a significant and negative effect on the performance of bank papua as indicated by a significance value of 0.038 (p <0.05) and a value of t = -2.086. the significant and negative effects of the diversification strategy also apply to each bank performance variable based on ldr (influence magnitude of 5.9% and significance of 0.010), roa (influence size of 3.6% and significance of 0.047), npl (magnitude of influence of 3.6%. and a significance of 0.046), and car (magnitude of influence 3.9% and significance 0.038). it can be concluded that the higher the diversification, the lower the bank's performance. keywords diversification; bank papua; bank performance; roa; ldr jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 56-64 example, if one business fails, top-level executives can still work in the diversified company. rumelt (1974) in sabihaini (2012) classifies diversification strategies into 5 business categories according to their level of diversification. in addition to the single business categories and the dominant business, increasingly related firms are classified into related and unrelated categories. a company is concerned through its diversification when there are relationships among its business units, for example units with various products or services, technology, or distribution networks. the tighter the ties between the business units, the more “limited” their diversification links will be. disconnection refers to the absence of a direct relationship between businesses. the levels and types of diversification are described in the following table, table 1. diversification level diversification level: low 1. single business more than 95% of revenue comes from a single business 2. dominant business between 70% and 95% of revenue comes from a single business diversification level: moderate-high 3. related constrained less than 70% of revenue comes from the dominant business, and all businesses share products, technology and distribution networks 4. related linked less than 70% of revenue comes from the dominant business, and there are limited relationships between these businesses t diversification level: very high 5. unrelated less than 70% of revenue comes from the dominant business, and there is no relationship between these businesses source: rumelt (1974) in sabihaini (2012) the basis used by rumelt (1974, 1982) to determine the level of diversification uses a specialization rate (sr) or concentric rate (cr) which is the ratio between core business income and total income. the formula is as follows: rt ru sr   = information: ru = main business income rt = total income sr = specialization rate the level of diversification based on the sr can be explained as follows: 1. if the sr number is higher (95%> sr> 70%), the lower the level of diversification, meaning that the company's business activities are concentrated (concentrated) on the main business activities. 2. if the sr number is getting smaller (below 70%), the higher the level of diversification, it means that business activities are moving away from the main business or the company tends to business activities that generate fee based income (supporting activities). bank performance according to syaifuddin (2009: 25), bank performance is basically the work that can be used to evaluate the ability of banking management to manage its business to achieve bank goals, namely with certain risks for high profitability. bank health assessment refers to bank indonesia regulation (pbi) number 13/1 / pbi / 2011 concerning assessment of commercial bank soundness level. assessment of bank soundness as stipulated in article 2, namely by using a risk approach (risk based bank rating) either individually or on a consolidated basis. this method replaces the previous valuation method, namely a method based on capital, asset, management, earning, liquidity and sensitivity to market risk or what is called camels. in article 6 of pbi number 13/1 / pbi / 2011, the rbbr method uses an assessment of four factors, namely the risk profile, good corporate governance, earning and capital (rgec). 1. risk profile the risk profile can be measured by credit risk and liquidity risk. credit risk can be measured using the non performing loan (npl) ratio, with the formula: %100 pr x credittotal creditoblem npl = jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 56-64 a. non-performing loans are loans to nonbank third parties that are classified as substandard, doubtful, and bad. b. total credit is credit to non-bank third parties. table 2. npl determination criteria rating keterangan kriteria 1 very healthy npl < 2% 2 healthy 2% ≤ npl < 5% 3 fairly healthy 5% ≤ npl < 8% 4 unwell 8% ≤ npl 12% 5 not healthy npl ≥ 12% source: bank indonesia circular no. 6/23/ dpnp of 2004 measuring liquidity risk can be done with the loan to deposit ratio (ldr), with the formula: %100x fundspartythird grantedcreditofamountthe ldr − = table 3. ldr determination criteria rating keterangan kriteria 1 very healthy ldr ≤ 75% 2 healthy 75% < ldr ≤ 85% 3 fairly healthy 85% < ldr ≤ 100% 4 unwell 100% < ldr ≤ 120% 5 not healthy ldr > 120% source: bank indonesia circular no. 6/23/ dpnp of 2004 2. good corporate governance (gcg) in attachment 1 of bank indonesia circular letter no. 13/24 / dpnp, parameter / assessment of the gcg factor which is an assessment of the bank's management on the implementation of gcg principles referring to the bank indonesia provisions concerning gcg for commercial banks with due regard to the characteristics and complexity of the bank's business. the principles of gcg include transparency, accountability, responsibility, independence, and fairness. 3. rentability based on appendix i of bank indonesia circular letter number 13/24 / dpnp, profitability is indicated by the level of roa. roa is the ratio between net income and total bank assets, using the following formula: %100 pr x assettotalaverage taxbeforeofit roa = table 4. roa determination criteria rating keterangan kriteria 1 very healthy roa > 1,5% 2 healthy 1.25% < roa ≤ 1,5% 3 fairly healthy 0,5% < roa ≤ 1,25% 4 unwell 0% < roa ≤ 0,5% 5 not healthy roa ≤ 0% source: bank indonesia circular no. 6/23/ dpnp of 2004 4. capital (capital) the assessment of capital factors is measured using the capital adequacy ratio (car). car is calculated by the following formula: %100x assetsweightedrisk capitalbank car = table 5. car determination criteria rating keterangan kriteria 1 very healthy car > 12% 2 healthy 9% ≤ car < 12% 3 fairly healthy 8% ≤ car < 9% 4 unwell 6% < car < 8% 5 not healthy car ≤ 6% source: bank indonesia circular no. 6/23/ dpnp of 2004 research methods the population in this study were all branch offices of bank papua throughout indonesia after diversification, namely 37 branch offices. the research sample was all bank papua branch offices in the last 3 years, namely during the 2016-2018 period. the sampling technique in this study used a census, in which all members of the population were sampled. the type of data used includes secondary data. secondary data sources were obtained from data from all bank papua branches jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 56-64 regarding the level of diversification including main business income and total income, and the performance of papuan banks including car, roa, ldr, and npl. the data analysis used descriptive analysis, which is the statistic used to analyze the data by describing the data with the diversification level, roa value, car value, ldr value, and npl value. hypothesis testing in this study uses linear regression test. hypothesis: the high level of diversification strategy affects the low performance of bank papua, and vice versa. results and discussion bank papua's diversification strategy was implemented by opening 37 branch offices throughout indonesia (5 branches in papua and 32 branches in papua). branch offices (bo) in the papua region include bo kaimana, bo teminabuan, bo jayapura, bo waisai, bo wamena, bo wasior, bo agats, bo merauke, bo oksibil, bo aimas, bo tanah merah, bo nabire, bo waren, bo sentani, bo dekai, bo mulia, bo abepura, bo sorong, bo arso, bo sarmi, bo fakfak, bo bintuni, bo karubaga, bo kasonaweja, bo timika, bo biak, bo enarotali, bo keppi, bo serui, bo manokwari, bo waghete, and bo ilaga. meanwhile, branch offices outside papua include bo jakarta, bo yogyakarta, bo makassar, bo surabaya, and bo manado. 1. bank papua diversification strategy from the annual report for 2016-2018, the data is presented in the following table: table 6. bank papua revenue data 2016-2018 year main income year (rp), in million supporting income (rp), in million total revenue (idr), in million 2016 2.088.661 322.333 2.410.994 2017 2.114.796 381.485 2.496.281 2018 1.892.775 588.420 2.481.195 diversification strategies that are increasingly being carried out are measured using a specialization rate or sr, in this study using the basis used by rumelt (1974, 1982) which is the ratio between core business income and total income as follows: incometotal incomeessbumain rt ru sr sin =   = based on the formula above, the level of diversification of bank papua from 2016-2018 can be obtained as follows: 866,0 000.000.994.410.2 000.000.661.088.2 2016 ==sr or 86,6% 847,0 000.000.281.496.2 000.000..796.114.2 2017 ==sr or 84,7 % 763,0 000.000.195.481.2 000.000.775.892.1 2018 ==sr or 76,3 % based on the results of the above calculations, it can be seen that from 2016 to 2018 the sr number is getting lower (although still> 70%) which indicates that the level of diversification is getting higher, meaning that business activities move away from the main business or companies tend to business activities that generate fee based income (supporting activities). this means that activities are no longer focused on main activities that generate principal benefits in the form of interest income, but are also expanded through other supporting activities. therefore, the decreasing sr figure shows that income is not only based on main income, but also supporting income. this is what causes the sr number to decrease, indicating that the main income has also decreased due to switching to income from supporting activities. it can be concluded that the lower the sr number, the wider the diversification will be. based on the sr data in the table above, it can be seen the trend of increase or decrease in the sr number for each bank papua branch office. figure 1 trend of sr for bank papua branch offices in 2016-2018 in the above, it can be seen that from 2016-2018 in most branch offices there was a decrease in the sr number, although some branch offices fluctuated but at the end of the 0,5 0,6 0,7 0,8 0,9 1 1 4 7 10 13 16 19 22 25 28 31 34 37 s r branch offices sr trend 2016-2018 bank papua branch offices 2016 2017 2018 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 56-64 research year (2018) almost all branch offices were at the lowest sr number. based on the description of the sr figures in the 2016-2018 period, the average sr value of the branch offices shows a decreasing value. this indicates that the branch office is adjusting its diversification strategy according to the direction of the head office. 2. the performance of bank papua a. loan to deposit ratio (ldr) loan to deposit ratio (ldr) is measured to determine the bank's ability to repay its obligations to customers who have invested in the bank, namely in the form of credit. ldr is measured by comparing the amount of credit extended to third party funds. the ldr percentage shows the soundness level of the bank, the higher the percentage, the more unhealthy the bank is. based on the ldr criteria, several bank papua branch offices were categorized as unhealthy, even unhealthy. bank papua branch offices that are not healthy based on ldr are makassar, sentani, eranotali, and manado with ldr> 120%, while unhealthy branch offices with 100% <ldr ≤ 120% are yogyakarta, waisai, wasior, waren, sorong, biak, and serui. several branch offices also experienced changes, from a healthy condition to a less / unhealthy condition, namely bo kaimana, bo teminabuan, and bo jakarta. b. return of assets (roa) return of assets (roa) is a ratio to measure a bank's ability to generate income from managing its assets. this relates to the profit or loss experienced by a bank. roa ratio is obtained by comparing profit or loss before tax with average total assets. the roa percentage shows the soundness of the bank, the smaller the percentage, the less healthy the bank. the ldr percentage shows the soundness level of the bank, the higher the percentage, the more unhealthy the bank is. based on the roa criteria, several bank papua branch offices were categorized as unhealthy, even unhealthy. bank papua branch offices that are not healthy based on roa are bo kaimana, teminabuan bo, jakarta bo, yogyakarta bo, sentani bo, eranotali bo, and manado bo with roa <0% (minus). the seven branch offices were consistently in unsanitary conditions during 2016-2018. c. non performing loan (npl) non performing loan (npl) is the ratio of the level of non-performing loans. credit risk is the risk related to the possibility of a debtor's failure to pay off his debt, both principal and interest, at a predetermined time. this ratio is calculated by comparing non-performing loans with total loans. the npl used in this study is gross npl with the consideration that nonperforming loans are not only bad loans, but also all credit problems. a high npl percentage value indicates problems in bank lending, the greater the npl percentage, the more unhealthy the bank is. based on the npl criteria, some bank papua branch offices are categorized as unhealthy, even unhealthy. several branch offices that were categorized as unhealthy were bo teminabuan, bo jakarta, bo yogyakarta, bo wamena, bo eranotali, and bo manado. all of these branches consistently had npl rates of> 12% during 2016-2018. d. capital adequacy ratio (car) capital adequacy ratio (car) is the size of the minimum capital requirement. the car percentage value is a benchmark for bank health, the greater the car percentage, the healthier the bank. based on ldr criteria, several bank papua branch offices were categorized as unhealthy (6% <car <8%), namely bo teminabuan, bo jakarta, and bo oksibil. the three branches have a figure of 6% <car <8% respectively during 2016-2018. the branch offices that are not healthy (car ≤ 6%) are bo yogyakarta and bo enarotali. the two branch offices respectively have a car value of ≤ 6% during 2016-2018. based on the indicators of ldr, roa, npl, and car, branch offices that are always in an unhealthy condition are bo yogyakarta, bo eranotali, and bo manado. apart from that, bo jakarta and bo teminabuan also need attention because based on roa, npl, and car, the two branch offices are always in an unhealthy condition. based on the ldr and roa indicators, bo sentani is always in an unhealthy condition, and based on the npl and car indicators, bo wamena is also always in an unhealthy condition. 3. effect of diversification on the performance of bank papua jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 56-64 the calculation of the test for the effect of diversification on the performance of bank papua is carried out by means of regression analysis which includes regression analysis of diversification strategies on ldr, diversification strategies towards roa, diversification strategies towards npl, diversification strategies for car, and diversification strategies for overall financial performance. diversification strategy is measured by the specialization rate or sr, the lower the sr, the higher the diversification and vice versa. table 6 hypothesis test calculation results independent variable dependent variable sig. information magnitude of influence diversification strategy overall performance 0,039 negative and significant impact 3,8 % ldr 0,010 negative and significant impact 5,9 % roa 0,047 negative and significant impact 3,6 % npl 0,046 negative and significant impact 3,6 % car 0,038 negative and significant impact 3,9 % based on the table above, it can be concluded that the diversification strategy has a significant effect on the performance of bank papua. table 7 test results of the effect of diversification strategy on the performance of bank papua model t sig. 1 (constant) 2.568 .012 sr -2.086 .039 a. dependent variable: performance based on the table above, it can be seen that the significance value shows the number 0.039 or p <0.05 with a t value of 2.086, so it can be concluded that there is a negative and significant influence of diversification strategies on the performance of bank papua. this shows that the diversification strategy has a negative effect on the performance of bank papua, where the higher the diversification, the lower the bank's performance. based on these results, the hypothesis is accepted. the regression equation can be arranged based on the coefficient value which can be seen in column b (unstandardized coefficients) to form a linear regression equation as follows: y = a + βx y = 650,898 – 634,262 x from the above equation, it can be concluded that the influence of the independent variables, namely the diversification strategy on the performance of bank papua, is: 1) constant of 650,898; it means that if the sr is constant, the performance value is 650,898. 2) the regression coefficient for the diversification variable is 634,262; this means that if the diversification strategy has increased by 1%, then the performance of bank papua has decreased by 634,262. the coefficient is negative, meaning that there is a negative relationship between the diversification strategy and the bank's performance, the wider the diversification is, the lower the bank's performance. to determine the magnitude of the influence of the independent variables on the dependent variable, the coefficient of determination is used. table 8 coefficient of diversification strategy determination on the performance of bank papua model summary model r r square adjusted r square std. error of the estimate 1 .196a .038 .030 204.753814 a. predictors: (constant), sr if r2 is greater, then the percentage change in the dependent variable caused by the independent variable is higher and vice versa. from the calculation results obtained r2 of 0.038 or 3.8%. this shows that the diversification strategy affects the performance of 3.8% and the remaining 96.2% is influenced by other variables that are not examined. bank diversification is an expansion of the bank's business, meaning that activities are expanded to generate income other than the main income, namely bank interest. with the expansion of bank activities through diversification, it is very possible that the income will no longer rely on the main income supporting income and also jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 56-64 contribute to the profits obtained by the bank. the diversification strategy undertaken by bank papua includes diversification of business / business and product diversification. diversification of business / business, namely the addition of business units with expansion of 32 branch offices in the papua region, starting to build 5 branch offices outside papua covering jakarta, makassar, surabaya, manado and yogyakarta, bringing the total branch offices to 37. the product diversification is carried out by developing various products and services such as edc and cdm facilities, credit payment systems, samsat payments (online samsat), tax payments (pph and ppn), electricity payments, motor vehicle installment payments, electronic card services for civil servants, save deposit box (sdb) facilities, payment for airplane tickets, and so on. the consequence of this diversification is that operating costs have increased so that the profits obtained are not as high as when focusing on the main business. however, if diversification can be maximized, profits can be multiplied, both from the core business (main business) and the supporting business. the results of this study are supported by several previous studies, namely sabihaini (2012), which shows that the diversification carried out by banks is increasingly moving away from (leaving) the main function of the bank or bank business activities tend to be business activities that generate fee-based income. sianipar's (2015) research also found that income diversification had no effect on firm value, but had a positive effect on profitability. in large banks, it is found that the effect of income diversification is negative on stock beta when compared to small banks. this is in line with amyulianthy and sari's (2013) research which shows that the company diversification strategy carried out by the majority of companies has not yet provided optimal results on company performance. in fact, their performance is below companies that carry out a focused strategy (specialized firms or single-segment firms). the results showed a negative effect of diversification on company performance, meaning that diversification was not profitable for the company. the reason for the decline in performance is due to diversification, which amyulianthy and sari (2013) also put forward, namely, if viewed from an agency theory perspective, diversification will cause managers to take excessive overinvesment due to distortions of internal capital allocations so that they become inefficient and result in projects. being funded carries a high risk. in addition, diversification makes the company unfocused because it has many business segments. controlling and monitoring measures are often inefficient and difficult to implement perfectly because they cost a lot of money so that the goal congruence set by the head office is often ineffective because the division manager prioritizes his own division. conclusion based on the results of research and discussion, the conclusion drawn is that the diversification strategy carried out by bank papua has a significant and negative effect on the performance of bank papua which is indicated by a significance value of 0.038 (p <0.05) and a t value of -2.086. more details regarding the effect of the diversification strategy on each performance indicator, namely ldr, roa, npl, and car can be seen as follows: 1. the effect of diversification on bank performance based on ldr is 5.9%. the test results show that diversification has a negative and significant effect on ldr performance with a significance of 0.010 (p <0.05) and a value of t = -2.612. it is concluded that the higher the diversification, the lower the bank's performance. 2. the effect of diversification on bank performance based on roa is 3.6%. the test results showed that diversification had a negative and significant effect on roa performance with a significance of 0.047 (p <0.05) and a value of t = -2.011. it is concluded that the higher the diversification, the lower the bank's performance. 3. the effect of diversification on bank performance based on npl is 3.6%. the test results show that diversification has a negative and significant effect on npl performance with a significance of 0.046 (p <0.05) and a value of t = -2.018). it is concluded that the higher the jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 56-64 diversification, the lower the bank's performance. 4. the effect of diversification on bank performance based on car is 3.9%. the test results show that diversification has a negative and significant effect on car performance with a significance of 0.038 (p <0.05) and a value of t = -2.612), so it can be concluded that the higher the diversification is, the lower the bank's performance. references amyulianthy, r. dan nuraini sari. 2013. pengaruh diversifikasi terhadap kinerja perusahaan. binus business review, vol. 4, no.1, hal. 215-230 hariadi, b. 2005. strategi manajemen, memenangkan perang bisnis. malang; bayumedia pulishing. komite nasional kebijakan corporate governance. 2004. pedoman good corporate governance perbankan indonesia. get access from http://www.knkgindonesia.org/dokumen/pedomangcg-perbankan.pdf kotler, p. dan gary armstrong. 2008. prinsipprinsip pemasaran. jakarta: erlangga peraturan bank indonesia nomor 13/1/pbi/2011 tentang penilaian tingkat kesehatan bank umum rahayuningsih. 2015. strategi diversifikasi bisnis. analisa, vol. 3, no. 1, hal. 443451 sabihaini. 2012. kompleksitas lingkungan dan regulasi pemerintah: implikasinya terhadap kinerja perbankan di jawa timur. disertasi. universitas brawijaya sianipar, as. 2015. pengaruh diversifikasi pendapatan terhadap kinerja bank. jurnal siasat bisnis, vol. 19, no.1, hal. 27-35 syaifuddin, dt. 2009. efisiensi dan kinerja bank (aplikasi teori hubungan struktural). kendari: unhalu press list of tables table 1. hypotheses test coefficientsa http://www.knkg-indonesia.org/dokumen/pedoman-gcg-perbankan.pdf http://www.knkg-indonesia.org/dokumen/pedoman-gcg-perbankan.pdf http://www.knkg-indonesia.org/dokumen/pedoman-gcg-perbankan.pdf jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 56-64 model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 650.898 253.463 2.568 .012 diversification strategy -634.262 304.109 -.196 -2.086 .039 a. dependent variable: performance list of figures figure 1. model test sig. = 0.039 β = -634.262 diversification strategy ldr car roa bank performance correspondence to : ade.anggraeni@unsoed.ac.id received: 22 june 2021 accepted: 28 june, 2021 published: 30 june, 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 1, pp. 51 58 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction an organization is not going to run without having a source of power humans are good. in order to improve the quality of which can compensate for the advancement of technology when this, the organization should be more attention the management of source power humans who exist in it. managing source power in an organization is a priority and no longer something that can be ruled out. the public sector is an institution or agency of government whose purpose mainly is the welfare of the community to provide services to the public, not to seek profit. the institution is required to provide service that is optimal for society to give a good performance. law number 5 the year 2014 on " reform of civil state" mandates each asn, which included civil servants, to carry out duties in a professional and not take sides, maintain and uphold a high standard of ethics that sublime, accountable for the actions and performance to the public, provide services to the public in an honest, responsive, fast, precise, accurate, powerful order, managed to, mannered, and the value of the base more. the performance itself can be affected by many factors, either directly or not directly, such as that proposed by gibson et al. (1996) to classify the variables that can impact performance, namely, variable individual, variable psychology and variable organization. the variable individual is composed of abilities, skills, the background behind, and demographics. psychological variables include personality, perception, motivation, and job satisfaction. at the same time, the organizational variables consist of leadership, rewards, environment, and organizational culture. it is also related to the individual variable, namely self-efficacy. self-efficacy has an impact on emotional reactions and individual thought patterns. efficacy themselves say it is essential to implement the tasks and responsibilities its employees need to be sure on their own, so it does not happen hesitations in carrying out duties and responsibilities he replied. self-efficacy influences employee performance to further improve employee performance and achieve the company's goals or organization. the relationship between the efficacy of self and performance is supported by studies that do cherian and jolly (2013), which concluded that the efficacy of selfimpact positively on performance. also demonstrated that an organization of sceptical professionals are usually influenced by a sense of trust themselves are significant. hendriani and mahda (2014) argue that one factor affecting performance is variable psychology, namely personality. so employee performance can be directly influenced by personality. the personality that is owned by someone between the one with the others enhancing performance and commitment through justice siti jami’iaturochmah1, ade irma anggraeni2 1,2 management department, faculty of economics and business, universitas jenderal soedirman, indonesia abstract employee commitment is one of the determining factors for the excellence of government institutions in optimizing public services. this study aims to examine and analyze organizational commitment, namely affective commitment, continuing commitment, normative commitment in the relationship between organizational dimensions of justice, namely distributive justice, procedural justice, interactional justice on employee performance. there were 175 employees as respondents of the research of the agricultural human resources extension development agency of the ministry of agriculture in east java. the sampling technique in the study used a probability sampling technique where the respondents had the same opportunity to be selected. the data collection method used a questionnaire. data analysis using the partial least square (pls). keywords employee performance, organizational commitment, organizational justice jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 51 58 undoubtedly different. of the various kinds of cultures that exist in indonesia and even the world, each individual's personality becomes diverse. in this research, the proactive personality model will be used. bateman and crant (2003) state that the individual proactive can identify opportunities for change and growth, act on opportunities that had the initiative, and persevere until the change, which means it occurs. research that is done by salsabil (2018) find evidence that personality proactive have influence in a direct and influence positively and significantly to the performance. crant (1995) states that individuals with personality proactive tend to create a consistent and effective performance. at the time of this organization must be aligned and in tandem with the development of technologies that exist if they want a compelling performance. the construction and completion of a task will seem much more manageable if able to do innovations. innovations can be done such as the system construction, how to complete the task of each individual, and the technology used. innovation is not directly also can affect the performance of employees. creating ideas is new to the application and will impact the continuity and progress of the organization. individuals can do innovation means they have been able to think differently and move faster than the others. in the study, innovation is used as a mediating variable between the efficacy of self and personality proactive towards the employee's performance. the research carried out by desiana (2019) indicates that innovation has an influence positively and significantly on the employee's performance. self-efficacy has a positive effect on employee performance through innovation as an accepted intervening variable. that is, innovation acts as an interaction effect of selfefficacy on employee performance. the effect of self-efficacy on employee performance robbins (2007) states that the efficacy of self, which is also known as the theory of cognitive, social, or theory of reasoning social, referring to the beliefs of individuals that he is capable of carrying out a task. t then, according to rimper and l. kawet (2014) stated that self-efficacy has a positive and significant effect on employee performance, so the researchers took the following hypothesis : 𝐇𝟏: self efficacy impact positively to the performance of the employee effect of personality proactive against the performance of employees proactive personality is considered a prelude to proactive behaviour, providing skills for an employee to be actively involved in changing work environments. furthermore, proactive employees show the initiative to persist until change occurs. in addition, some people identify their problems and solve them to improve their personal and corporate environment. this is why the proactive personality skill is described as an essential determinant of organizational success and effectiveness. viet (2018) states that a proactive personality has a positive effect on performance. similarly, salsabil (2019) concluded that proactive personality has a positive and significant influence on employee performance, so the researchers took the following hypothesis : 𝐇𝟐: personality proactive impact positively on the performance of employees the effect of self-efficacy on innovation according to the theory of cognitive, social define the behaviour of humans is mediated by self and efficacy of self that will affect the choice; efforts were made, tenacity when facing adversity, and most. desiana (2019) concluded that the efficacy of self has positively influenced the innovation of employees. hsiao et al. (2011) concluded that self-efficacy has a positive influence on innovation. similarly, according to aditya's (2016) research, self-efficacy has a positive influence on innovation, so the researcher takes the following hypothesis : 𝐇𝟑: efficacy themselves influence positively on innovation the impact of proactive personality on innovation behaviour proactive is the behaviour of taking the initiative to change the state around becomes much better. in particular, the ideas and innovations of individuals or groups in the economy continue to experience growth that can assist in various forms and continue to experience an increase in quality with time. according to drucker in windy (2009:88), innovation is conceptual and perceptual and can be understood and seen. israeli's research (2019) concluded that a proactive personality has a positive influence on innovation. so the researchers took the following hypothesis : jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 51 58 𝐇𝟒 : personality proaktifberpengaruh positive towards innovation the effect of innovation on employee performance when a person can use the method or input new to complete a task, a change in the technical or system is new. changes in technical or system that is new will have an impact on the results are obtained. a person or organization that is the first time doing a change of technical particular referred to as an innovator. geroski et al. (1993) emphasize the importance of innovation as his own and the process of learning in a company associated with innovation. research by dama & imelda (2018) concluded that innovation and creativity are simultaneously influenced significantly to the performance. similarly, according to daniel (2011), innovation has a positive effect on performance. furthermore, lakoy (2015) concludes that creativity has a significant effect on performance. take the hypothesis : 𝐇𝟓: innovation has impacted positively on the performance of employees 𝐇𝟔: innovation mediate efficacy themselves against the performance of employees 𝐇𝟕: innovation mediate personality proactive against the performance of employees methods research quantitatively uses the method of a research survey on employees of the department of industry and trade district banyumas. the research uses the questionnaire as a tool of analysis of data using the formula slovin with technique purposive sampling obtained by the number of employees who used a sample of at least 60 employees. results and discussion all items or questions questionnaire efficacy of self (x1) is valid because the value of r count all items> r table (0.254), so it can be said that the questionnaire had the right to measure the beliefs themselves, employees. in addition to the value r11 of 0.677 indicates that the reliability or the rate of provision of questionnaires entered in the criteria of high so that the results of the questionnaire can be trusted to measure the level of confidence themselves employee dinperindag regency of banyumas. several items for the proactive personality questionnaire variable (x2) are valid because the value of r count all items > r table (0.254) except for items number 7 and 8, so it can be said that the questionnaire is appropriate in measuring the proactive personality variable by eliminating item number 7 and 8. in addition, the r-value of 0.763 indicates that the reliability or level of determination of the questionnaire is included in the high criteria so that the results of the questionnaire can be trusted in measuring proactive personality in the dinperindag banyumas regency. all items or questions questionnaire innovation (z) is valid because the value of r count all items> r table (0.254), so it can be said that the questionnaire had the right to measure the variables of innovation employees. in addition, the r-value of 0.620 indicates that the reliability or level of determination of the questionnaire is included in the high criteria. the questionnaire results can be trusted in measuring the innovation of the banyumas regency industry and trade office employees. employee performance some of the items or questions questionnaire performance of employees (y) is valid because the value of r arithmetic item> r table (0.182) except item number 6, so it can be said that the questionnaire had the right to measure the variable performance of employees by eliminating the item number 6. in addition to the value of r of 0.965, the reliability or level of determination of the questionnaire is included in the very high criteria, meaning that the questionnaire can be trusted in measuring the performance of the employees of the dinperindag banyumas regency. classic assumption test normality test results of the calculation show that the value of significance (2-tailed) of 0.200> alpha (0.05). the mean value of the residual standardized otherwise spread is normal. multicollinearity test based on the output testing, it can be known that the value of tolerance throughout the variable is smaller than 0.10, and the value of vif variable efficacy of self, personality proactive and innovation of each note has a value much smaller than 10, so it can be concluded not happen multicollinearity. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 51 58 heteroscedasticity test based on the results of the heteroscedasticity test, the third variable efficacy of self, personality proactive and innovative whole has a value of probability that is more substantial than the value of alpha (sig.> α). of output that it can be known that the model of regression does not occur symptoms heteroskedasticity. linearity test based on testing linearity variable efficacy of self, personality proactive and innovation has a value of significance that is more substantial than the value of alpha (sig.> α). from these results, it can be concluded that the three variables above have a linear relationship with the dependent variable, namely the performance variable. model feasibility test r square test from the output of the first model test, the coefficient of determination (r2) is 0.155. the results show that the efficacy of self, personality proactive has a variation contribution in influencing the employees' performance in doing the work of 15.5%. from the output of the second model test, the value of the coefficient of determination (r2) is 0.063. the results show that the efficacy of self, personality proactive has a variation contribution in influencing the innovation they are in doing work of 6.3%. from the output of the third model test, it can be seen that the coefficient of determination (r2) is 0.017. results are showing that innovation has a variation contribution in influencing the performance of 1.7%. f test the regression output of the first model obtained that the calculated f was 6.408, which was greater than the f table, namely by calculating df = (k-1) and (nk) with a result of 2.53. with the results of the f test that showed that the variable efficacy of self and personality proactive manner simultaneously affects that significant to the performance of the employee, the other words can be concluded that the model of regression that is formed is expressed following the data of the results of research or goodness of fit. f test results indicate that the variable efficacy of self and personality proactive in concurrent (simultaneous ) effects is not significant to the innovation. the results of the f test shows that the innovation variable has a negative effect on employee performance. t test testing the significance of the effect of variable efficacy of self, personality proactively through innovation on the performance of employees is partially done by using the t-test. the level of error (α) = 0.05 and degree of freedom (nk), obtained t table for testing onetailed by 2004. output analysis regression multiple models first which influence the efficacy of self and personality proactive against the performance of employees in mind the value of t variable efficacy of self-worth 2.673 with sig. 0.010 <0.05, and the tthe value of the proactive personality variable is 2.573 with sig. 0.013 < 0.05. results of statistical testing models first have demonstrated that the efficacy of self and personality proactively positively affects the employee's performance. output analysis regression multiple models of both that influence the efficacy of self and personality proactive towards innovation known to value t variable efficacy of self-worth 1,387dengan sig. 0.171> 0,05dannilai t variable personality proactive worth 2.113 with sig. 0.039 < 0.05. the results of this statistical test show that self-efficacy and proactive personality have a negative effect on innovation. hypothesis test from the results of test analysis regression multiple earned value unstandardized coefficients of 0.218 and a significance of 0.010, the results show that the efficacy of self has positively influenced the performance of employees. the results of test analysis, regression multiple gained value unstandardized coefficient of 0.158 and significance of 0.013. the results of these statistical tests explain that proactive personality has a positive effect on employee performance. from the results of test analysis regression multiple earned value unstandardized coefficients of -0.244 and significance of 0.003, the results show that the efficacy of themselves affects negatively towards innovation employees. from the results of test analysis regression, multiple earned value unstandardized coefficient of -0.166 and significance of 0.007, thus showing that personality proactive has negatively influenced employees' innovation. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 51 58 from the results of test analysis regression multiple earned value unstandardized coefficients of -0.418 and significance of 0.001, it thus shows that innovation has negatively influenced the performance of employees. proactive personality variable on employee performance. because in the relationship between proactive personality and innovation itself, rejection of the hypothesis is not accepted. conclusion based on the research results that have been discussed, it can conclude (1) efficacy of themselves positively affects the performance of employees of the department of industry and trade district banyumas. (2) personality proactive effect on the performance of employees of the department of industry and trade district banyumas. (3) self-efficacy has a negative effect on employee innovation at the banyumas regency industry and trade office. (4) proactive personality has a negative effect on employee innovation at the banyumas regency industry and trade office. (5) innovation has a negative effect on the performance of the banyumas regency industry and trade office employees. (6) innovation does not mediate the relationship of self-efficacy to the performance of the banyumas regency industry and trade office employees. (7) innovation does not mediate the relationship of proactive personality to the performance of the banyumas regency industry and trade office employees. the theoretical findings of the study have demonstrated that the efficacy of self and personality proactive impact positively on the performance of employees, but the efficacy of self and personality proactive no effect on innovation and is also not can be mediated by innovation. this study also found that innovation cannot affect performance because of the age factor and type of organization, namely public sector organizations. with such, the research results can enrich the findings of studies of empirical other related topics performance of employees. the organization can provide an education that aims to foster a sense of confidence in employees so that they are confident in the ability of the possession. for example, give a seminar filled by experts and followed by employees on how to improve their confidence to be a result of work can be achieved with the maximum. in addition, it provides training technical is also necessary, so that employees increasingly feel the match between skills and abilities them with jobs or tasks are given. so that employees can have a proactive nature, the organization should provide soft skills training tailored to the needs of achieving organizational goals, for example, by providing personality development training. (4) employees can communicate or discuss with colleagues working or boss when got difficulties in completing the complex work. (5) in order for the belief of self and personality proactive role in improving the innovation, should the organization provide a training. for example, by providing technical guidance that is tailored to the organization's goals. so that employees can work more effectively with the use of technologies that exist. objects that exist in the research are that employees of the office of the department of industry and trade district banyumas provide assessment against themselves of their own, so there is the possibility of refraction in a study of this. there are limitations of the study by using a questionnaire that sometimes the answers given by the respondents did not indicate the state of the real. there are differences in the application of innovation in organizations in the public sector and the nonpublic sector. because the sector of public entirety has been governed by the centre and not careless in changing the ways or methods used in completing the task, future research can be done on the non-public sector to find out the difference. in research, it is only reserved for the employees of state civil, so the research is less prevalent. future research can add non-permanent employees as samples or respondents.. references aboody, d., hughes, j. and liu, j. 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(2016). organizational justice: a conceptual discussion. procedia social and behavioral sciences 219, 798803. jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 04, 2022, pp. 53-61 published online ... in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : ratri@mercubuana-yogya.ac.id received: 9 sep 2022 accepted: 12 nov 2022 published: 1 dec 2022 introduction generation z's consumptive behavior can disrupt their financial stability. therefore, the skills in managing finances must be possessed by generation z (dewanti et al., 2022). in recent years, the practice of financial management in generation z has received serious attention from various organizations, such as the government, financial institutions, universities and so on (fietroh & mandasari, 2022). plus, the existence of various digital shopping platforms today has influenced generation z, in conducting spending transactions through existing e-commerce and marketplaces especially during this covid-19 pandemic, so many activities are supported by digital media (bayu surindra, 2022). lifestyle lifestyle refers to the choice to distribute income based on the relative distribution in the assortment of products and services, and for specific alternatives. this means that lifestyle can describe the consumption patterns of everyone who are diverse, for example, some have total expenditures on food, entertainment, or education. lifestyle is a way of life for a person identified by how people spend time (activity), something that is considered important in their environment (interests) and what is thought about oneself and the world around them (opinions) (nugroho, 2021). lifestyle measures human activity, interests and opinions in terms of: 1. often hang out with friends in the café. 2. like to collect items that are currently trending. 3. feel cool if you can follow the trend the daily behavior of individuals which includes interests, opinions, and activities with characteristics tends to like something luxurious and likes to squander money because they are interested in symbols that can distinguish their social status(oktafikasari & mahmud, 2017). today, life is increasingly disrupted and fast-paced with the development of technology, the impact of these technological developments makes the previous generation slowly begin to be replaced with a new generation, generation z, which has a different mindset and character so that it can form its own personality and paradigm (subawa et al., 2020). generation z as the first generation who has grown up in the middle of an era of developed information technology, being one of the most critical users of sns, constantly engaging in online exchanging of information and conversation among its peers (silva, s. s.; machado, j. c. & cruz, 2017). the influence of lifestyle and financial literacy against consumptive behavior of generation z in yogyakarta during the covid-19 pandemic ratri paramitalaksmi1, wuku astuti2, hadjija dewi aviva3 1,2,3accounting department, faculty of economic, universitas mercu buana yogyakarta, indonesia abstract this study aims to determine the influence of lifestyle and financial literacy against consumptive behaviour of generation z in yogyakarta during the covid-19 pandemic. the method used in this study was by distributing questionnaires to 200 students in yogyakarta who was born in the years after 1995 to 2010 by sampling method through google form. this sampling determination is expected to be a representative of generation z in yogyakarta, indonesia. the result of this study is that the higher the lifestyle, the higher the consumptive behavior of generation z in yogyakarta during the covid-19 pandemic. on the other hand, lower level of financial literacy, the higher the consumptive behavior of generation z in yogyakarta during the covid-19 pandemic. keywords lifestyle; financial literacy; consumptive behavior; generation z; covid-19 pandemic file:///e:/downloads/ratri@mercubuana-yogya.ac.id jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp. 53-61 the results of research conducted by credit karma in 2018 showed that 39% of the younger generation is willing to owe debt to always follow the ongoing trends, which is very unfortunate (rinjani & prasetyaningrum, 2021). one thing that needs to be considered is how to manage finances that can inhibit consumptive behavior so that it is not excessive through financial literacy and overall, financial literacy affects everything from day-to-day to long-term financial decisions, also this has implications for individuals and society. (lestari et al., 2022). financial literacy financial literacy is a useful tool to change behavior from unintelligent to intelligent, such as how to utilize income to saving, investment, and the needs of life (purwanto, 2019). financial literacy describes the management of a person's finances to achieve maximum well-being and as a measure of an individual's understanding of personal financial management based on the use of the information they had (azizah, 2020). according to survei nasional literasi dan inklusi keuangan (snlik) by otoritas jasa keuangan (ojk) in 2019 it showed the financial literacy index reached 38.03% which was previously in 2016 at 29.7%. the financial inclusion index in 2019 was 76.19% which was 67.8% previously in 2016 (ojk, 2020). based on snlki conducted by the ojk in 2016 the students have a financial literacy rate of 23.4% and financial inclusion of 64.2%. this percentage shows a considerable difference, the younger generation has gained access to credit, savings, insurance, and other financial services but the understanding of the benefits and risks of financial services has not been maximized. meanwhile, the reality is that the younger generation is one of the largest users in the cashless transaction system. financial literacy is expected to help students to take control of their personal finances, the younger generation (paramitalaksmi, 2021). according to (weng, 2018), college students’ financial education mainly focuses on teaching students financial thinking, cultivating financial skills, improving student’s financial quotient, and guiding students to set up the correct financial outlook, as well as outlooks on life and values. the magnitude of the influence of financial literacy is partially significant on student consumptive behavior, this is evidenced by a value of 38.9% which means that financial literacy variables can contribute to consumptive behavior variables (fauzia & nurdin, 2019). consumptive behavior consumption can affect economic stability, where the higher human consumption, the higher the changes that occur in the economy. high consumptive behavior is caused by a person's lifestyle. one of the factors that influence consumptive behavior is lifestyle, where humans will more often spend their income to meet their wants instead of needs (irianto, 2022). consumptive behavior generally refers to a person or group that carries out the process of consuming a product, service, brand or company as well as the use of excessive money value consciously or unconsciously and will be sustainable (fungky et al., 2021). . if this behavior is allowed to continue, it will result in wasteful actions (rosyada & adinugraha, 2022). financial attitudes and behaviors are reflected in a person's ability to determine financial goals, compile financial planning, manage finances and be able to make quality financial decisions in using financial products and services (sugiharti & maula, 2019). in modern times, especially during the covid-19 pandemic, there are many changes, especially when we compare it with previous years. one of these changes is regarding high consumptive behavior, especially in generation z who always follow existing developments. the ease of access to loans, saving, insurance and other financial services without being accompanied by an understanding of the benefits and risks of these services has maximally contributed to increasing consumptive behavior among generation z, especially during the covid-19 pandemic. today, when you want to buy a certain product, you can do it on a communication device or your cellphone with an online shop, in an economic point of view, of course this situation is an attraction in itself for users who are indeed interested in it but on the other hand it can encourage people who are less mature in financial management to easily spend on goods that are actually not really needed (syah & barsah, 2022). social media also have an effect on the consumptive behavior of generation z, within the covid19 pandemic (sinclair, 2021) . various results of research on lifestyle have certainly been done a lot with various kinds of habits and results in it. there was a jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp. 53-61 positive and significant influence on the consumptive behavior of generation z during the covid-19 pandemic (fungky et al., 2021). generation z generation z is the generation born in the years after 1995 to 2010 (hidvegi & erdös, 2016). the oldest age of generation z in 2022 is 27 years old. generation z is addicted to technology and social media, and they want to receive everything quickly and conveniently. they get information from the internet and share it frequently. they are also strong at multitasking, dislike working in groups, and are technologically proficient (simangunsong, 2018). generation z has a lifestyle that focuses on what is experienced in the present without thinking about future risks or commonly called you only live once (yolo). in addition, generation z has a sense of fear of missing out (fomo), or a feeling of fear of being left behind a lifestyle trend that is being widely used or carried out by others. the level of knowledge of generation z financial literacy at this time is still very low even though to reduce consumptive behavior to improve and understand about financial management with financial literacy. therefore, individuals who lack understanding of financial literacy for their personal finances sometimes tend to behave consumptively. during the covid-19 pandemic, generation z are threatened with consumptive behavior. this consumptive behavior is due to an excessive lifestyle without thinking rationally. the level of consumptiveness has increased, especially for generation z who always follow the development of the lifestyle that is always exhibited on their social media (citra & pambudi, 2022). the covid-19 pandemic covid-19 was first identified in november 2019 in china and was decided as a pandemic by world health organization (who) in the early months of 2020 (sukardi, 2020). pembatasan sosial berskala besar (psbb) began to be implemented by the government of indonesia as a first step in responding to the covid-19 pandemic. during the covid-19 pandemic, there are many changes, especially when we compare it with previous years. one of the changes is about financial behavior. good financial behavior should reflect good and responsible financial behavior so that all finances, both individuals and families and communities, can be managed appropriately (rumini et al., 2019). the mind frame used in this study is as follows: ----------------------------------------- insert figure 1 in here based on the explanation above, this study aims to determine the influence of financial literacy and lifestyle levels against consumptive behavior of generation z in yogyakarta during the covid-19 pandemic. research methods the analytical techniques in this study consist of research instrument tests, normality tests and regression tests. validity and reability tests are useful for knowing the validity and realiableness of each item contained in the questionnaire. testing of research instruments is carried out before the actual data is collected. the instrument is said to be valid if the correlation > 0.30, while the instrument is said to be reliable if the correlation > 0.60. after the instrument test is carried out, then data collection can be carried out. before the data can be analyzed, a normality test must be carried out beforehand. the sample data must meet the requirements of normal distribution. testing was carried out by the method of one sample kormogrov smirnov test with a significance level of 5%. the criteria of this test are as follows: a. the probability of asymp.sig (2-tailed) > 0.05 then the data is normally distributed. b. the probability of asymp.sig (2-tailed) < 0.05 then the data is abnormally distributed after the normality test was met, a multiple linear regression analysis was then carried out using spss 25.00 for windows to analyze the data that had been collected related to financial literacy, lifestyle and consumptive behavior of students. the formula of the multiple regression equation in this study is: y = a + b1 x1 + b2 x2 information: y = consumptive behavior a = constant b = coefficient x1 = lifestyle x2 = financial literacy the data collection technique used is a questionnaire. questionnaire is a data collection technique that is carried out by giving a set of questions or written statements to respondents for them to answer. the type of questionnaire used is a closed and structured questionnaire, meaning that the jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp. 53-61 question or statement does not give the respondent the freedom to give their answers and opinions according to their wishes because the answers have been provided. the respondents of this study were 200 students in yogyakarta who was born in the years after 1995 to 2010 with sampling method. this sampling determination is expected to be a representative of generation z in yogyakarta, indonesia. the basis of decision making by looking at the significance value (sig.) is as follows: asymp. sig. < 0.05, there is an influence of financial literacy and lifestyle levels against consumptive behavior of generation z in yogyakarta during the covid-19 pandemic. asymp. sig. > 0.05, there is no influence of financial literacy and lifestyle levels against consumptive behavior of generation z in yogyakarta during the covid-19 pandemic. it describes the research design used comprises of methods, technique in collecting data, technique of data analysis, and variables measurement which are written in paragraphs, not numbering. results and discussion lifestyle the following are the results of validity tests and reability tests on lifestyle variables: ----------------------------------------- insert table 1 in here the results of the validity test on lifestyle variables as shown in table 3 show that all questions regarding lifestyle are valid. it can be seen that the question of lifestyle has a pearson correlation value of > 0.30. ----------------------------------------- insert table 2 in here the results of the lifestyle variable reability test as shown in table 4 show that lifestyle is reliable. this can be seen from the value of cronbach's alpha > 0.60 on questions regarding lifestyle. financial literacy the following are the results of validity tests and reability tests on financial literacy variables: ----------------------------------------- insert table 3 in here the results of the validity test on financial literacy variables as shown in table 1 show that all questions regarding financial literacy are valid. it can be seen that the question of financial literacy has a pearson correlation value of > 0.30. ----------------------------------------- insert table 4 in here the results of the financial literacy variable reability test as shown in table 2 show that financial literacy is reliable. this can be seen from the value of cronbach's alpha > 0.60 on questions regarding financial literacy. consumptive behavior consumptive behavior becomes the act of buying goods not to meet needs but to fulfill dreams, which is done excessively which causes waste of costs. the word consumptive has the meaning of extravagant, which consumes goods and services in excess. the pattern of human life is controlled and driven by a dream to fulfill the desire of pleasure alone is considered to be a consumptive behavior (wahyuni et al., 2019). the following are the results of validity tests and reability tests on consumptive behavior variables: ----------------------------------------- insert table 5 in here the results of the validity test on the consumptive behavior variable as shown in table 5 show that all questions regarding consumptive behavior are valid. it can be seen that the question of consumptive behavior has a pearson correlation value of > 0.30. ----------------------------------------- insert table 6 in here the results of the reability test of consumptive behavior variables as shown in table 6 show that consumptive behavior is reliable. this can be seen from cronbach's alpha value > 0.60 on questions regarding consumptive behavior. the influence of financial literacy and lifestyle against consumptive behavior of generation z in yogyakarta during the covid-19 pandemic ----------------------------------------- insert table 7 in here the results of the normality test as shown in table 7 show that the asymp value. sig. (2tailed) is by 0.017. this value > 0.05, thus showing that the data in the study were normally distributed. ----------------------------------------- insert table 8 in here based on the results of simultaneous calculations in table 8, a calculated f value of 111.823 with a significance of 0.000 and a table f of 3.00 was obtained. the f value of jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp. 53-61 the calculation > the table f value and the significance value of the < 0.05, meaning that there is an explanation between lifestyle and financial literacy against the consumptive behavior of generation z in yogyakarta during the covid-19 pandemic. ----------------------------------------- insert table 9 in here based on table 9, the multiple regression equations in this study are as follows: y = 7,680 + 0,693 x1 + (-0,213) x2 the multiple regression equation can be described as follows. the multiple regression equation above is known to have a constant of 7.680. the magnitude of the constant indicates that if an independent variable is assumed to be zero then the dependent variable, that is y, rises by 7.680. the variable coefficient x1 = 0.693 means that any increase in x1 by 1% will cause an increase in y of 0.693%. the variable coefficient x2 = 0.213 means that any decrease in x2 by1% will lead to an increase in y of 0.213% based on the results of calculations using spss 25 tools for windows seen in table 9, it seen that for lifestyle variables obtained t count 14.798 > t table 1.28586 with a significance value of 0.000 < 0.05. it means that the higher lifestyle, the higher the consumptive behavior of generation z in yogyakarta during the covid-19 pandemic. in table 9 also seen that for the financial literacy variable obtained t count 0.213 < t table 1.28586 with a significance value of 0.014 < 0.05. it means that the lower level of financial literacy, the higher the consumptive behavior of generation z in yogyakarta during the covid-19 pandemic. ----------------------------------------- insert table 10 in here based on the calculation results using spss 25 for windows seen in table 10, it shown that the r square obtained is 0.532. this means that 53.2% of the consumptive behavior of generation z in yogyakarta during the covid-19 pandemic can be explained by the variables lifestyle and financial literacy. while the rest, namely 46.8% of the consumptive behavior of generation z during the covid-19 pandemic in special region of yogyakarta, indonesia influenced by other variables not included in the study. conclusion based on the results of this study, it can be concluded that lifestyle has an influence on consumptive behavior of generation z in yogyakarta during the covid-19 pandemic. it means that the higher lifestyle, the higher the consumptive behavior of generation z in yogyakarta during the covid-19 pandemic. financial literacy has an influence on consumptive behavior of generation z in yogyakarta during the covid-19 pandemic. it means that the lower level of financial literacy, the higher the consumptive behavior of generation z in yogyakarta during the covid19 pandemic. suggestions for further research are expected to add different independent variables to find out other variables that can affect consumptive behavior variables of generation z in yogyakarta during the covid19 pandemic such as self-control and demographic conditions. references azizah, n. s. 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(2020, march 13). ternyata covid-19 pertama kali muncul pada 17 november 2019, bukan desember : okezone health. okezone. https://health.okezone.com/read/2020/03/13/ 481/2182628/ternyata-covid-19-pertamakali-muncul-pada-17-november-2019-bukandesember syah, a., & barsah, a. (2022). pengaruh gaya hidup dan literasi keuangan terhadap keputusan berinvestasi generasi milinial kota tangerang selatan. scientific journal of reflection: economic, accounting, management and business , jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp. 53-61 5(3), 649–655. https://doi.org/https://doi.org/10.37481/sjr.v5i 3.518 wahyuni, r., irfani, h., syahrina, i. a., & mariana, r. (2019). pengaruh gaya hidup dan literasi keuangan terhadap perilaku konsumtif berbelanja online pada ibu rumah tangga di kecamatan lubuk begalung kota padang. jurnal benefita, 4(3), 548. https://doi.org/10.22216/jbe.v4i3.4194 weng, t.-s. (2018). a new method in teaching financial management to students. international journal of information and education technology, 8(9), 616–622. https://doi.org/10.18178/ijiet.2018.8.9.1110 list of tables table 1. lifestyle validity test results correlations activity interest opinion lifestyle activity pearson correlation 1 .590** .594** .824** sig. (2-tailed) .000 .000 .000 n 200 200 200 200 interest pearson correlation .590** 1 .733** .896** sig. (2-tailed) .000 .000 .000 n 200 200 200 200 opinion pearson correlation .594** .733** 1 .894** sig. (2-tailed) .000 .000 .000 n 200 200 200 200 lifestyle pearson correlation .824** .896** .894** 1 sig. (2-tailed) .000 .000 .000 n 200 200 200 200 **. correlation is significant at the 0.01 level (2-tailed). table 2. lifestyle reability test results item-total statistics scale mean if item deleted scale variance if item deleted corrected itemtotal correlation cronbach's alpha if item deleted activity 5.70 4.030 .635 .845 interest 5.40 3.296 .744 .743 opinion 5.42 3.421 .748 .739 table 3. financial literacy validity test results correlations financial literacy deposits and loans incurance investment financial literacy financial literacy pearson correlation 1 .360** .312** .280** .690** sig. (2-tailed) .000 .000 .000 .000 n 200 200 200 200 200 deposits and loans pearson correlation .360** 1 .306** .241** .675** sig. (2-tailed) .000 .000 .001 .000 n 200 200 200 200 200 insurances pearson correlation .312** .306** 1 .247** .741** sig. (2-tailed) .000 .000 .000 .000 n 200 200 200 200 200 investment pearson correlation .280** .241** .247** 1 .621** sig. (2-tailed) .000 .001 .000 .000 n 200 200 200 200 200 financial literacy pearson correlation .690** .675** .741** .621** 1 sig. (2-tailed) .000 .000 .000 .000 n 200 200 200 200 200 **. correlation is significant at the 0.01 level (2-tailed). jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp. 53-61 table 4. financial literacy reability test results item-total statistics scale mean if item deleted scale variance if item deleted corrected item-total correlation cronbach's alpha if item deleted financial literacy 13.65 1.455 .441 .512 deposits and loans 13.51 1.477 .418 .527 insurance 13.78 1.198 .397 .555 investment 13.51 1.558 .343 .577 table 5. comsumptive behaviour validity test results correlations impulsive irrational extravagant consumptive behaviour impulsive pearson correlation 1 .682** .596** .875** sig. (2-tailed) .000 .000 .000 n 200 200 200 200 irrational pearson correlation .682** 1 .582** .886** sig. (2-tailed) .000 .000 .000 n 200 200 200 200 extravagant pearson correlation .596** .582** 1 .830** sig. (2-tailed) .000 .000 .000 n 200 200 200 200 consumptive behaviour pearson correlation .875** .886** .830** 1 sig. (2-tailed) .000 .000 .000 n 200 200 200 200 **. correlation is significant at the 0.01 level (2-tailed). table 6. comsumptive behaviour reability test results item-total statistics scale mean if item deleted scale variance if item deleted corrected itemtotal correlation cronbach’s alpha if item deleted impulsive 6.21 3.363 .722 .730 irrational 6.48 2.964 .708 .747 extravagant 6.39 3.636 .641 .807 table 7. normality test results one-sample kolmogorov-smirnov test unstandardized residual n 200 normal parametersa,b mean .0000000 std. deviation 1.79538359 most extreme differences absolute .071 positive .071 negative -.056 test statistic .071 asymp. sig. (2-tailed) .017c a. test distribution is normal. b. calculated from data. c. lilliefors significance correction. table 8. simultaneous test results anovaa model sum of squares df mean square f sig. 1 regression 728.223 2 364.111 111.823 .000b residual 641.457 197 3.256 jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022, pp. 53-61 total 1369.680 199 a. dependent variable: consumptive behaviour b. predictors: (constant), lifestyle, financial literacy table 9. multiple linear test results coefficientsa model unstandardized coefficients standardized coefficients beta t sig. b std. error 1 (constant) 7.680 1.596 4.812 .000 lifestyle .693 .047 .722 14.798 .000 financial literacy -.213 .086 -.121 -2.489 .014 a. dependent variable: consumptive behaviour table 10. coefficient of determination test results model summaryb model r r square adjusted r square std. error of the estimate 1 .729a .532 .527 1.80447 a. predictors: (constant), lifestyle, financial literacy b. dependent variable: consumptive behaviour list of figures figure 1. mind frame of the study β=0,421 sign=0,000 lifestyle of generation z financial literacy of generasion z consumptive behaviour of generation z correspondence to : 18042010003@student.upnjatim.ac.id give the information related to corresponding author and the email address received: 11 november 2021 accepted: 15 january 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 1 11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 the influence of discipline, organizational culture and work motivation against employee performance at perum bulog east java regional office nurindah dwi antika1, jojok dwiridotjahjono2 1,2business administration study program, upn “veteran” east java, surabaya abstract quality human resources are a determining factor in improving the performance of a business organization. the performance of a business organization is largely determined by the performance of its employees, and this is the main reason for this research. this study aims to determine the effect of discipline, organizational culture and work motivation on employee performance. this research approach is a descriptive research with a quantitative approach. the data used in this study are primary data obtained directly from respondents through questionnaires in the field and secondary data obtained in finished form, has been collected and processed by other parties. the number of samples taken in this study were 74 respondents. the data analysis technique used in this research is multiple linear regression. the results of the analysis show that the variables of discipline, organizational culture and work motivation have a significant effect on employee performance both simultaneously and partially. the results of this study indicate that the variables of discipline, organizational culture and work motivation are the determining variables in an effort to improve employee performance keywords discipline; organizational culture; work motivation; employee performance introduction in the era of globalization, competition is getting tougher, all organizational activities must be aligned with technological developments and human capabilities, the role of humans in organizations can be managed through human resource management (hrm), with human resource management to encourage the creation of quality human resources, resources who have the ability, attitude, willingness to contribute to the progress of the company. aspects that support the progress of the company is employee performance. companies can improve the performance of their employees by analyzing the factors that influence it. the first is work discipline. work discipline is a benchmark for employees in complying with pre-determined regulations. if employees have a sense of discipline, it can have a positive impact on the company. the second is organizational culture. organizational culture is a guideline for companies in carrying out all activities, so that indirectly organizational culture has an influence in shaping attitudes, behavior, and employee responsibility, there are also other factors, namely motivation. motivation is a desire that arises in employees so that it creates high enthusiasm in doing work. the stronger a person's motivation, the stronger the employee's efforts to achieve company goals. based on the results of observations and interviews, there are still many problems that occur in perum bulog, east java regional office, which are related to work discipline. many employees still arrive late, go home earlier than working hours, and employees sometimes neglect not to scan entry or return scans. the following is presented data on the attendance record of incoming & outgoing employees of perum bulog east java regional office for the period january august 2021 correspondence to : 18042010003@student.upnjatim.ac.id give the information related to corresponding author and the email address received: 11 november 2021 accepted: 15 january 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 1 11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 table 1.1 employee attendance recapitalization month in & out attendance total number come too late go home early negligent absence january 155 50 140 76.7% february 152 70 145 73.9% march 150 55 129 76.3% april 160 76 145 75.5% may 165 82 122 70.7% june 170 80 152 75.4% july 167 85 136 75.1% august 155 78 156 77.2% however, according to several sources, the organizational culture there is still well maintained, for example every day before work activities are carried out, the leaders and employees of perum bulog always and are obliged to pray together. nature". however, in reality, employees think that the culture is "akhlak". this is a general standard of an industry so that many of its implementations are not yet embedded in employees. this is evidenced by the number of undisciplined employees, and low employee motivation. employees consider that the company has not provided good work facilities, such as work rooms are still combined with other divisions. based on the problems above, researchers are interested in examining these problems with the title "the influence of discipline, organizational culture and work motivation on employee performance of perum bulog east java regional office”. literature review discipline discipline is the attitude or behavior of employees voluntarily in complying with work regulations or procedures. according to sinambela (2018), discipline is an attitude, behavior and action that is in accordance with company regulations, both written and unwritten.the existence of work discipline can help maintain order and smooth implementation of tasks. meanwhile, for employees will get a pleasant working atmosphere so that enthusiasm arises to get the job done.according to dewi & harjoyo (2019:96) the following are some indicators of work discipline, among others: 1. time discipline. defined as an attitude/behavior that demonstrates adherence to working hours which includes: attendance and compliance of employees during working hours, timely and correct execution of tasks. 2. regulatory discipline. written and unwritten rules and regulations are made so that the goals of an organization can be achieved properly. for this reason, it takes a loyal attitude from employees to the commitments that have been set. 3. responsibility discipline. one form of employee responsibility is the use and maintenance of equipment as well as possible so that it can support office activities to run smoothly. organizational culture organizational culture is a guideline or identity for companies in carrying out all activities that refer to the values and belief patterns of an organization. according toenny (2019:52)organizational culture is a value system that is obtained and developed by the organization into rules or guidelines for thinking and acting. meanwhile, according totuala (2020:03)organizational culture is a pattern of basic assumptions regarding beliefs, values, and behaviors developed by an organization to achieve goals. according totuala (2020:04) the characteristics of organizational culture are as follows: correspondence to : 18042010003@student.upnjatim.ac.id give the information related to corresponding author and the email address received: 11 november 2021 accepted: 15 january 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 1 11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 1. innovation and risk taking, namely the extent to which employees are encouraged to be innovative and dare to take risks 2. attention, namely the extent to which employees show accuracy, and attention to detail. 3. results orientation, namely the extent to which the leader focuses on results, not on techniques to achieve results. 4. people orientation, namely how far management decisions affect people in the organization. 5. team orientation, namely the extent to which work activities are organized in work teams, not individuals 6. aggressiveness, the degree to which people are aggressive and competitive rather than casual. 7. stability / stability, namely the degree to which organizational decisions and actions emphasize efforts to maintain the status quo. work motivation every company wants to achieve its company goals. therefore, this can be done by motivating employees. according to marliani (2018) insafitri (2018:5)said that motivation is important in work because without a strong work motivation in oneself, work is easy to be shaken. this means that work motivation is something that can lead to high enthusiasm in doing work, without motivation the work will feel in vain. according totahir (2017:116) there are several forms of work motivation activities for employees, namely as follows: 1. intrinsic motivation. motivation that comes from within the employee, because he feels that the work he is doing is able to meet his needs, or enable him to achieve a goal in the future. 2. extrinsic motivation. motivation that comes from outside the worker. a condition that requires him to carry out work to the fullest. for example, high dedication in work because of high salary wages. employee performance performance comes from the word job performance which means the actual work performance achieved by someone. according to luthans, 2005:165 inmasram & mu'ah (2017:148)performance is the result of work in quality and quantity achieved by employees in accordance with the responsibilities given. this means that performance is the result of work and work behavior that has been achieved in completing the tasks and responsibilities given in a certain period. performance is always related to employees, so many people always call it employee performance. according to bangun (2012:233) inasnawi (2019:14) indicators to measure employee performance are as follows: 1. quality. the quality of work is measured by the employee's perception of the quality of the work produced and the perfection of the task. 2. quantity. represents the resulting amount expressed in terms such as number of units, number of completed activity cycles. 3. punctuality. it is the level of activity completed at the beginning of the stated time, from the point of view of coordinating with the output results and maximizing the time available for other activities. 4. effectiveness. is the level of use of organizational resources (manpower, money, technology, raw materials) is maximized with the intention of increasing the results of each unit in the use of resources. hypothesis model figure 1.1 thinking framework discipline (x1) organizational culture (x2) work motivation (x3) employee performance (y) correspondence to : 18042010003@student.upnjatim.ac.id give the information related to corresponding author and the email address received: 11 november 2021 accepted: 15 january 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 1 11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 based on the hypothetical model, the hypotheses in this study are: h1: the discipline variable partially has a significant effect on employee performance h2: the organizational culture variable partially has a significant effect on employee performance h3: the variable of work motivation partially has a significant effect on employee performance h4: discipline, organizational culture and work motivation variables simultaneously have a significant effect on employee performance research methods research type and location the approach used in this research is quantitative research. this research was conducted at perum bulog, east java regional office. the location of this company is located on jl. ahmad yani no. 146-148, gayungan, kec. gayungan, surabaya city, east java 60235. sample population in this study, the population is all employees of perum bulog east java regional office with a total of 74 employees. the sampling technique used is saturated sampling, namely all employees at perum bulog, east java regional office. and all of them were sampled in this study data collection the data collection in this study used a data collection instrument, namely the questionnaire method. in addition to collecting data directly to respondents, data collection with documentary techniques is also carried out to support research analysis. data instrument test testing the instrument using validity and reliability tests. the data is said to be valid if the value of r count > r table. while the data is said to be reliable if the cronbach alpha value of these variables is greater than 0.6, or the instrument used is appropriate and feasible to be forwarded to the next test. classic assumption test there are 4 classical assumption tests, namely the normality test. normality test is used to determine the distribution of data. does it follow a normal distribution or not.multicollinearity test. multicollinearity test aims to determine the value of the variance inflation factor (vif). if the value of vif> 10 then there is no multicollinearity, and vice versa.heteroscedasticity test. this test was conducted to respond to the variable x with absolute unstandardized residual regression. if the test result is above the significant level (r > 0.05) it means that there is no heteroscedasticity and vice versa. and autocorrelation test. testing autocorrelation in a method that aims to determine whether there is a correlation between the confounding variable in a certain period and the previous variable, with the value of durbin watson data analysis analysis of the data used in this study is multiple linear regression analysis. hypothesis testing is carried out with the f test and the test to prove the proposed hypothesis results and discussion results 1. validity test the validity test was conducted to determine whether the questionnaire was valid or not. to find out the responses of 74 respondents regarding the analysis of the influence of discipline, organizational culture and work motivation on employee performance. the validity test was used with the help of spss 20 software. table 1.1 validity test results variable statement correlation coefficient r table (5%) conclusion work discipline (x1) d1 0.755 0.227 valid d2 0.632 0.227 valid d3 0.708 0.227 valid correspondence to : 18042010003@student.upnjatim.ac.id give the information related to corresponding author and the email address received: 11 november 2021 accepted: 15 january 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 1 11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 d4 0.642 0.227 valid d5 0.625 0.227 valid d6 0.610 0.227 valid organizational culture (x2) b1 0.530 0.227 valid b2 0.460 0.227 valid b3 0.679 0.227 valid b4 0.376 0.227 valid b5 0.684 0.227 valid b6 0.554 0.227 valid b7 0.599 0.227 valid work motivation (x3) m1 0.687 0.227 valid m2 0.657 0.227 valid m3 0.700 0.227 valid m4 0.561 0.227 valid m5 0.529 0.227 valid employee performance (y) k1 0.622 0.227 valid k2 0.620 0.227 valid k3 0.729 0.227 valid k4 0.560 0.227 valid k5 0.604 0.227 valid k6 0.582 0.227 valid source: primary data after processing based on the data above, it shows that the correlation value is greater than r table, so it is stated that all independent and dependent variables show valid data. 2. reliability test reliability test is used to determine whether the questions posed to the respondents will provide answers that tend to be consistent. the results of the reliability test on the variables can be seen in the following table: table 1.2 reliability test results variable cronbach'alpha alpha conclusion work discipline (x1) 0.741 0.6 reliable organizational culture (x2) 0.626 0.6 reliable work motivation (x3) 0.618 0.6 reliable employee performance (y) 0.677 0.6 reliable source: primary data after processing from the table above, it can be seen that the variables of discipline (x1), organizational culture (x2), work motivation (x3) and employee performance (y) are reliable. because all alpha values (rcount) are greater than 0.6. so in this study all variables were declared reliable. 3. normality test the normality test using the kolmogorov-smirnov test results can be seen from the table below: table 1.3 normality test results one-sample kolmogorov-smirnov test correspondence to : 18042010003@student.upnjatim.ac.id give the information related to corresponding author and the email address received: 11 november 2021 accepted: 15 january 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 1 11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 unstandardized residual n 74 normal parameters, b mean 0e-7 std. deviation 1.61126713 most extreme differences absolute .087 positive .087 negative -.035 kolmogorov-smirnov z .745 asymp. sig. (2-tailed) .636 a. test distribution is normal. b. calculated from data. from the table it can be explained that the results of the kolmogorovsmirnov test are indeed proven that the residual value follows a normal distribution because of asymp. sig (2tailed) = 0.636 0.05. and the following is a picture of the p-plot project pilot test results figure 1.2 p-plot project pilot test results it can be seen that the distribution of data on the chart can be said to be spread around the diagonal line (not far from the straight line). so it can be said that the normality requirements can be met. figure 1.3 histogram of normality test results hypothesis test results a. simultaneous effect or test (f) the f test is used to test the independent variables simultaneously having a significant or insignificant effect on the dependent variable . table 1.5 simultaneous test results anovaa model sum of squares df mean square f sig. 1 regression 411,938 3 137,313 50,717 .000b residual 189,521 70 2,707 total 601.459 73 a. dependent variable: employee performance b. predictors: (constant), work motivation, organizational culture, discipline source: primary data after processing test steps: a) determination of acceptance and rejection:• 1. if p-value > a = 0.05 then h0 is accepted and h1 is rejected. this means that the independent variables simultaneously do not have a significant effect on the dependent variable. correspondence to : 18042010003@student.upnjatim.ac.id give the information related to corresponding author and the email address received: 11 november 2021 accepted: 15 january 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 1 11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 2. if p-value < a = 0.05 then h0 is rejected and h1 is accepted. this means that the independent variables simultaneously have a significant effect on the dependent variable.• b) test result : it is known that = the number of respondents (n) = 74, the number of variables (k) = 3. the error rate (a) = 5%. ftable formula ftable = (k ; nk) = (3 ; 74-3) = ( 3; 71) = 2.73 then the ftable used is t 0.05 (3 ; 71) = 2.73. c) based on the results of the anova table data above, it can be seen that the significance value is 0.000 <0.05 d) conclusion :based on the output above, it is known that the significant value for the influence of discipline (x1), organizational culture (x2), and work motivation (x3) simultaneously on employee performance (y) is 0.000. which is 0.000 < 0.05 and fcount 50.717 > 2.73 so it can be concluded that hi is accepted which means that there is an influence between discipline (x1), organizational culture (x2), and work motivation (x3) have a significant (simultaneous) effect on employee performance variable (y). b. partial effect or test (t) table 1.6 partial test results coefficientsa model unstandardized coefficients standardi zed coefficien ts t sig. b std. error beta 1 (constant) 1.178 1,885 .625 .534 discipline .207 .057 .269 3.640 .001 organizational culture .325 .062 .393 5.226 .000 work motivation .437 .085 .414 5.172 .000 a. dependent variable: employee performance based on the results of the table by observing the row, column t and sig, the following explanation can be given: 1. partial test between discipline variables (x1) on employee performance (y) a. ttable = t(/2 with df = nk-1) t = (0.05/2 with df = (74-3-1) t = (0.025 with df = 70) = 1,997 b. significance value 0.000 < 0.05 c. tcount > ttable = 3,640 > 1,997 d. conclusion :based on table 5.5 partial test results (t) shows that the significance value of the influence of discipline (x1) on employee performance (y) is 0.000 <0.05. and the tcount value is 3,640 > the ttable value is 1,997. so ho is rejected, ha is accepted, meaning that there is a significant influence between the discipline variable (x1) on employee performance (y). correspondence to : 18042010003@student.upnjatim.ac.id give the information related to corresponding author and the email address received: 11 november 2021 accepted: 15 january 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 1 11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 2. partial test between organizational culture variables (x2) on employee performance (y) a. ttable = t(/2 with df = nk-1) = 1,997 b. significance value 0.000 < 0.05 c. tcount > ttable = 5.226 > 1.997 d. conclusion :based on table 5.5 partial test results (t) shows that the significance value of the influence of organizational culture (x2) on employee performance (y) is 0.000 <0.05. and the tcount value is 5,226 > the ttable value is 1,997. so ho is rejected, ha is accepted, meaning that there is a significant influence between organizational culture variables (x2) on employee performance (y). 3. partial test between work discipline variables (x3) on employee performance (y) a. ttable = t(α/2 with df = nk1) = 1,997 b. significance value 0.001 < 0.05 c. tcount > ttable = 5.172 > 1.997 d. conclusion :based on table 5.5 partial test results (t) shows that the significance value of the influence of organizational culture (x2) on employee performance (y) is 0.001 <0.05. and the tcount value is 5.172 > the ttable value is 1.997. so ho is rejected, ha is accepted, meaning that there is a significant influence between work discipline variables (x3) on employee performance (y). discussion a. simultaneous effect or test (f) 1. the effect of discipline, organizational culture, and simultaneous work motivation on employee performance based on the results of data processing through the f test, the data obtained that the f count is 50,717 > from the f table of 2.73. this means that the variables of discipline (x1), organizational culture (x2) and work motivation (x3) have a simultaneous effect on employee performance (y). this means that if the company has a good level of discipline, it will later be able to form a harmonious organizational culture, and it will also be able to create work motivation to grow stimulation in employees to take good work actions. so it can be concluded that if the company is successful in applying discipline, organizational culture and good work motivation, it will also have a good effect on employee performance either individually or in groups.hypothesis testing is carried out with the f test and the test to prove the proposed hypothesis b. effect partially or test (t) 1) the effect of discipline (x1) on employee performance (y) the results of the partial hypothesis test show that discipline (x1) has a significant effect on employee performance. this is known from the calculation of the t test on discipline (x1), namely where the t count is 3,640 > the t table value is 1,997. this shows that there is a significant relationship between discipline and employee performance, meaning that the better the discipline, the more it will help achieve the company's goals. the results of this analysis are in accordance with what was hypothesized by the researcher, correspondence to : 18042010003@student.upnjatim.ac.id give the information related to corresponding author and the email address received: 11 november 2021 accepted: 15 january 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 1 11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 discipline is important because the implementation of discipline in the company will be able to help direct employees to carry out work in accordance with the rules an employee who enters on time, performs tasks according to schedule and, follows every rule and standard,these results also strengthen the results of previous research, namely nurindah et al (2021) which states that the work discipline variable has a significant effect on employee performance. 2) the influence of organizational culture (x2) on employee performance (y) the results of partial hypothesis testing show that organizational culture (x2) has a significant effect on employee performance. this can be seen from the calculation of the t-test on organizational culture (x2), which is where the t-count value is 5.226 > the t-table value is 1.997. it can be explained that the direct influence between employees' perceptions of organizational culture on employee performance provides evidence that there is a significant direct relationship between employee performance, meaning that the higher the employee's perception of organizational culture, the higher the level of employee performance. the results of this analysis are in accordance with what was hypothesized by the researcher, organizational culture has a positive impact on the company's internal and individual employees, these results also strengthen the results of previous studies, namely:virsa sari widuri et al (2020) which shows that the influence of organizational culture on work discipline is positive with a coefficient value of 0.733 3) the effect of work motivation (x3) on employee performance (y) the results of partial hypothesis testing show that work motivation (x3) has a significant effect on employee performance. this can be seen from the calculation of the t-test on organizational culture (x2), which is where the t-count value is 5.172 > the t-table value is 1.997. the results of the evidence that have been carried out provide evidence that there is a significant direct relationship between work motivation and performance, meaning that the higher the work motivation, the higher the employee's performance. work motivation is an important element because motivation can create morale, foster stimulation to be able to work optimally. if their needs are met, the employee will show joy at work as a form of satisfaction.these results also strengthen the results of previous research, namely nurindah et al (2021) which states that the work motivation variable has a significant effect on employee performance. 4. conclusion based on the results of the analysis and discussion described, the following conclusions can be drawn: 1. the independent variable discipline (x1) and organizational culture (x2) and work motivation (x3) simultaneously have a significant effect on the dependent variable on employee performance (y). at the company perum bulog east java regional office. this means that if the company succeeds in implementing good discipline, organizational culture and work motivation, it will also have a good effect on employee performance, either individually or in groups. correspondence to : 18042010003@student.upnjatim.ac.id give the information related to corresponding author and the email address received: 11 november 2021 accepted: 15 january 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 1 11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 2. discipline variable (x1) partially has a significant effect on employee performance (y) perum bulog east java regional office, it means discipline is important because the implementation of discipline within the company will be able to help direct employees to carry out work in accordance with agreed rules so that it also has an impact on improving employee performance. 3. the organizational culture variable partially has a significant effect on the performance of the employees of perum bulog east java regional office, it means there is a significant direct relationship between employee performance, meaning that the higher the employee's perception of organizational culture, the higher the level of employee performance. 4. the variable of work motivation partially has a significant effect on the performance of the employees of perum bulog east java regional office, it means work motivation is an important element because motivation can create morale, foster stimulation to be able to work optimally. there is a significant direct relationship between work motivation and performance, meaning that the higher the work motivation, the higher the employee's performance. 5. suggestion 1. in order to create high employee performance, the company needs to pay attention, improve and focus on the factors that affect the performance, namely motivation, work discipline and organizational culture. 2. companies should pay more attention to discipline issues, because discipline has the most dominant influence on employee performance. such as, timeliness, violation rate. therefore, the company must further increase sanctions to carry out discipline 3. companies should pay more attention to the problem of work motivation, because motivation does not only arise from within the employees themselves, but sometimes employees expect more motivation from the company and also the environmental atmosphere to support employee morale at work. 4. companies must ensure that employees are satisfied with the work they have. that is by fulfilling the rights of employees and paying attention to the work environment to keep it comfortable and clean. so that employees will feel happy in completing their work and employee performance will increase. references asnawi, ma (2019). performance of limited liability company employees (z. fachrussyah (ed.1) cv. artha samudra. dewi, dp, & harjoyo. (2019). human resource management. in e. junaedi (ed.1, issue 1). unpampress. enny, wm (2019). human resource management (m. w erma ; ed.1). uphara press management. masram, & mu'ah. (2017). human resource management. in zifatama publisher (ed.1). zifatama publisher. safitri, rp (2018). the influence of corporate culture on work motivation and its impact on employee performance. journal of management review, 2(2), 198. https://doi.org/10.25157/jmr.v2i2.17 correspondence to : 18042010003@student.upnjatim.ac.id give the information related to corresponding author and the email address received: 11 november 2021 accepted: 15 january 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 1 11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 95 sinambela, lp (2018). human resource management (suryani (ed.3), vol. 148). pt bumi aksara. sugiyono. (2017). quantitative, qualitative and r&d research methods (ed.23) cv.alfabeta sutrisno, e. (2017). human resources management (1st edition). date. tuala, rp (2020). organizational culture and leadership in islamic educational institutions. in pustaka media (ed.1, vol. 53, issue 1). media library. wekker, is (2019). social research methods (i. fatria (ed.1)). cv. adi karya mandiri. widyanti, r. (2019). organizational behavior (theory and concepts) (basuki (ed.1)). islamic university of borneo mab banjarmasin. correspondence to : abi.revyansah@bps.go.id received: 3 february, 2021 accepted: 10 march, 2021 published: 30 march, 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 1, pp. 18 28 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction since indonesia adopts an open economic system, international trade activities have an essential role in indonesia’s economy. export can boost gdp through foreign exchange revenue while import consumes foreign exchange reserves for purchasing goods and services from abroad. therefore, export must be endeavored by developing indonesia’s potential commodities. unfortunately, raw and intermediate commodities from the agriculture and mining sectors are the majority of indonesia’s export commodities which have a low contribution to employment and involve limited network enterprises. therefore, indonesia should export high value-added commodities more by developing national industries. realizing the importance of exporting industrial commodities, the ministry of industry republic of indonesia launched the “making indonesia 4.0” program in 2018 where the automobile industry is one of the development targets. one of the program goals is to make indonesia the leader of automobile export in the asean. the automobile industry was chosen because first, the indonesian automobile is a high value-added commodity and the 4th rank as non-oil & gas export commodity based on the ministry of trade republic of indonesia. second, gabungan industri kendaraan bermotor indonesia (gaikindo) reports that indonesian automobile export increased tremendously from 5,000s units to 250,000s units within 15 years resulting in labors absorption in the automobile industry from 50,000s to 200,000s (bps-statistics indonesia, 2021). third, previous papers mostly study agriculture export commodities where high value-added commodity such as the automobile is not studied yet. only abedini & péridy (2009) and peridy & abedini (2008) study indonesian automobile export together with other automobile exporter countries. however, their results are too broad and do not discuss specifically indonesian automobile or address particular importer countries. export generally is influenced by internal factors and external factors (lubis, 2013). on the automobile export case. the internal factors are a large domestic market, low capital investment, and limited commodity variations. while the external factors are the automobile price, exchange rate, limited access to the export market, and protective regulations in importer countries. indonesian automobile export is possible because the size of indonesia’s domestic market creates such a minimum average production cost resulting in a more competitive price in the export market. figure 1 illustrates how much the gap between the domestic sales and export where the the export determinants of indonesian automobile in the selected middle-east countries abi revyansah perwira1 1badan pusat statistik kabupaten tabalong, indonesia abstract since the automobile is one of indonesia's high value-added commodities which has high export potency, this paper attempts to analyze and find the export determinants of indonesian automobile in the selected middle-east countries during the period 2006 – 2019. those countries are chosen since they are the largest oil exporters in the world and have large gdp from it. this paper applies the gravity model and the ordinary least square (ols) regression method. since the fixed effect model (fem) suffers from positive autocorrelation heteroscedasticity, the analysis employs seemingly unrelated regression (sur) weights on the fem model. based on the analysis result, the export determinants of indonesian automobile in the selected middle-east countries are indonesia’s gross domestic product (gdp) per capita, the importer country’s gdp per capita, economic distance between indonesia and the importer country, exchange rate, and oil price crisis. keywords gravity model; indonesian automobile export; the middle-east countries jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 18 28 domestic market dominates the production of indonesian automobile. to reduce the gap, indonesia must expand the automobile export to prospective countries. thus, this paper proposes the middle-east countries as the relevant export destination countries because first, there are no previous paper studies the middle-east countries specifically as export destination countries where mostl are asian countries (huda, 2006; siburian, 2012; wardhana, 2011; zuhdi & suharno, 2015), major importer countries (hasibuan et al., 2012; hermawan, 2011; huseyni et al., 2019; nurhayati et al., 2018; sari et al., 2014; virginia & novianti, 2020; yulismi & siregar, 2007), other regions (osabuohien et al., 2019; wardani & mulatsih, 2017), or the world (abedini & péridy, 2009; natale et al., 2015; peridy & abedini, 2008). the determination of export destination countries is fundamental since different regions require specific bilateral policies. second, despite some middle-east countries are being stricken by war conflicts such as syria, palestine, and yemen, the middle-east countries generally have high gross domestic product (gdp) per capita. third, indonesia has a long relationship with most of the middle-east countries in the organization of islamic cooperation (oic) since 1969 which can be used as easiness access to economic bilateral relations. therefore, the middle-east countries are potential countries as trading partners and relevant to be further studied. based on the background, this paper attempts to fill both research gaps, the export commodity and the export destination countries. hence, this paper analyzes the export determinants of indonesian automobile in the selected middle-east countries. literature review gdp per capita gdp is the economic size of a country and commonly used in many economic papers. gdp per capita is gdp divided by the total population which explains the wealthiness of the people in a country. the higher gdp per capita, the wealthier people of a country which indicates an increasing ability to purchase imported goods and services. economic distance export and import activities have a negative relationship with the distance between two exporter and importer countries where the farther the distance the more expensive the transportation cost is. the expensiveness of the transportation cost can reduce the export potential. some previous papers utilize the economic distance to measure the elasticity transportation cost which involve the importer country’s gdp. sari et al. (2014) propose the economic distance formula as follows: 𝐸𝐷𝑥𝑚𝑡 = 𝐺𝐷𝑥𝑚 × 𝐺𝐷𝑃𝑚𝑡 𝐺𝐷𝑃𝑀𝑡 where: 𝐸𝐷𝑥𝑚𝑡 : the economic distance between exporter country and importer country in year 𝑡; 𝐺𝐷𝑥𝑚𝑡 : the geographical distance between exporter country and importer country in year 𝑡; 𝐺𝐷𝑃𝑚𝑡 : importer country’s gdp in year 𝑡; 𝐺𝐷𝑃𝑀𝑡 : total selected importer countries’ gdp in year 𝑡. exchange rate the exchange rate, usually measured by the local currency unit (lcu) against the us$, indicates the purchasing power of a country to import commodities because mostly import are paid by the international currency, the us$. when a country’s lcu depreciated, it means that the country’s importing power is weakened. since most developed countries in the middle-east adopt fixed exchange rate regime and to capture the effect of the exchange rate on the analysis, this paper utilizes dinh's et al. (2011) exchange rate formula: 𝐸𝑅𝑡 = 𝐸𝑅𝑖𝑡 𝐸𝑅𝑚𝑡 where: 𝐸𝑅𝑡 : exchange rate in year 𝑡; 𝐸𝑅𝑥𝑡 : indonesia’s average exchange rate in year 𝑡; 𝐸𝑅𝑚𝑡 : the importer country’s average exchange rate in year 𝑡. dummy variables dummy variables are specific characters that some importer countries have or something that happened during a particular period. since most of the middle-east countries are the world oil suppliers and some of them are also automobile producers, this paper utilizes the oil price crisis as the dummy variable. this paper attempts to capture the effect of the oil price crisis during the middle 2010s. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 18 28 the gravity model the main idea of the gravity model is to measure how much a country will be able to export to another country based on the determinant variables. this paper imitates the classical gravity model from wardani & mulatsih (2017) to measure indonesian automobile export. based on wardani & mulatsih (2017), the gravity model of indonesian automobile export can be expressed as follows: ln 𝐴𝑋𝑡 = 𝛽0 + 𝛽1 ln 𝐺𝐷𝑃𝑝𝐶𝑖𝑡 + 𝛽2 ln 𝐺𝐷𝑃𝑝𝐶𝑚𝑡 − 𝛽3 ln 𝐸𝐷𝑖𝑚𝑡 + 𝛽4 ln 𝐸𝑅𝑡 + 𝛽5𝑂𝐶 + 𝜀𝑡 where: 𝛽0, …, 𝛽5 : regression coeffcients; 𝐴𝑋𝑡 : indonesian automobile export value in year 𝑡; 𝐺𝐷𝑃𝑝𝐶𝑖𝑡 : indonesia’s gdp per capita in year 𝑡; 𝐺𝐷𝑃𝑝𝐶𝑚𝑡 : importer country’s gdp per capita in year 𝑡; 𝐸𝐷𝑖𝑚𝑡 : the economic distance between exporter country and importer country in year 𝑡. 𝐸𝑅𝑡 : exchange rate in year 𝑡; 𝑂𝐶 : the dummy variable when the oil price crisis occurs. 𝜀𝑡 : error term in year 𝑡; the formulation of hypotheses effect of gdp per capita on automobile export since gdp per capita measures the wealthiness level of people, both exporter and importer countries interact with each other. when importer countries’ gdp per capita increases, export tend to rise to result in also an increase in the exporter country’s gdp per capita. all of the previous papers show that importer countries’ gdp per capita has a positive effect on export. however, wardani & mulatsih (2017) finds that the exporter country’s gdp has a negative sign. it argues that export commodities tend to be consumed more by the domestic market when the exporter country’s economy is getting better. h1: indonesia’s gdp per capita has a positive effect on indonesian automobile export. h2: importer countries’ gdp per capita has a positive effect on indonesian automobile export. effect of distance on export since the distance is the proxy of transportation cost, all previous papers are consistent that the distance has a negative effect on export either using the geographical distance or the economic distance. h2: the economic distance between indonesia and importer countries has a negative effect on indonesian automobile export. effect of exchange rate on export the exchange rate in dinh et al., (2011) and sari et al. (2014) show a positive effect. however, the exchange rate does not give significant effect on turkish automobile export (huseyni et al., 2019). the possible answer is turkish automobile import is higher than export. virginia & novianti (2020) also show that the exchange rate is not significant on indonesian clove export. the import tariff is also the possible answer to the insignificancy. h5: the exchange rate between indonesia and importer countries has a positive effect on indonesian automobile export. effect of dummy variables on export each previous paper utilizes different dummy variables depending on the characteristics of importer countries, export commodities, and period. abedini & péridy (2009) and peridy & abedini (2008) utilize common language and automobile types on automobile export. abedini & péridy (2009) and peridy & abedini (2008) finds that automobile types have a positive effect. however, only peridy & abedini (2008) shows that common language affects iranian automobile export significantly. dinh et al. (2011) employ cultural gap and strategic partnership dummy variables on vietnam’s export. it concludes that the cultural gap has a significant positive effect while the strategic partnernship is not significant. hermawan (2011) uses the association of southeast asian nations (asean) and asiapacific economic cooperation (apec) membership, and country border on indonesian textile commodities. all dummy variables have negative signs on fibre export. in contrast, the asean membership and the country border have positive effects while the apec membership is insignificant on yarn and fabric export. since there is are inconsistency dummy variable coefficients, hermawan (2011) proposes its final gravity model without the dummy variables. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 18 28 gul & yasin (2011) utilizes border, language, the south asian association for regional cooperation (saarc) and economic cooperation organization (eco) membership as the dummy variables on pakistani export. the border has a negative effect due to political conflict with india, language has a positive effect, and saarc and eco membership are not significant variables. natale et al. (2015) employ regional trade agreement (rta) on seafood global export which indicates a positive effect. natale et al. (2015) warn that the rta does not always provide a relevant explanation because the effect depends on the implementation of rta in particular importer countries and specific commodities. huseyni et al. (2019) use the european union (eu) membership on turkish automobile export and concludes that the eu membership gives a significant impact on turkish automobile export. osabuohien et al. (2019) utilize the landlocked region of exporter and importer countries on the economic community of west african states (ecowas) member countries. the result concludes that importer countries located in the landlocked region have difficulty in importing commodities. however, landlocked exporter countries do not find difficulty in exporting their commodities. research methods this paper employs the gravity model in natural logarithmic form since the analysis involves the selected middle-east countries as research subjects within a fixed period. research sample and period from 15 middle-east countries, only 10 countries have been indonesian automobile importer countries. unfortunately, yemen is eliminated from the selected countries due to war conflict. thus, this paper includes only 9 middle-east countries in the analysis, they are bahrain, bahrain, jordan, kuwait, lebanon, oman, qatar, saudi arabia (sa), and the united arab emirates (uae). the selected period is between 2006 and 2019 when the selected middle-east countries imported indonesian automobile consistently. therefore, the primary data in this paper is longitudinal data. the data is annual secondary data which is obtained and calculated from centre d’etudes prospectives et d’informations internationales (cepii), un comtrade, and world bank. automobile export is all export commodities with hs code 8703 (motor cars and other motor vehicles; principally designed for the transport of persons) based on un comtrade classification. data analysis technique since this paper employs the gravity model with longitudinal data, the model can be solved by applying ordinary least square (ols) regression analysis. however, to acquire the best linear unbiased estimator (blue), the regression analysis must fulfil the classical assumptions. all calculations are processed by using the eviews 10 program. results and discussion multicollinearity test based on table 1, all of the cross-correlation values is under 0.80 which mean there is no multicollinearity among the independent variables. ols regression analysis before continuing to other classical assumption tests, the model identification must be run first. in longitudinal data analysis, the ols regression basically provides three models, common effect model (cem), fixed effect model (fem), and random effect model (rem). based on table 2, the model with the highest r-squared is the fem. the chow test result suggests choosing the fem rather than the cem because the probability is lower than 0.05 (table 3). also, the hausman test is invalid and the eviews program rejects the test because there are at least one of the independent variables which do not fulfil the rem requirement. therefore, the fem is better than rem. heteroscedasticity test the glejser test is performed to check whether there is any heteroscedasticity problem on the fem. to perform the glejser test, the independent variable, ln 𝐴𝑋𝑡 , is replaced by |𝜀𝑡 |, the absolute value of the fem’s residuals. then, re-regress |𝜀𝑡 | as the fem. the glejser test result displays that the fem has a heteroscedasticity problem since two of independent variables have the probability higher than 0.05 (table 4). autocorrelation test this paper employs the durbin-watson (dw) test to check the autocorrelation on the fem. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 18 28 the dw test compares between dw statistic value with the durbin upper (du) value and the durbin lower (dl) value from the durbinwatson table. there is a positive autocorrelation if dw statistic < dl or a negative autocorrelation if dw statistic > 4du. based on the eviews program, the dw statistic value is 1.4682 (table 5). from the dw table with 5 dependent variables (k) and 126 observations (n), the dw table shows that du = 1.7923 and dl = 1.6276. because dw statistic < dl, then the fem has a positive autocorrelation problem. normality test figure 1figure 2 illustrates that the fem’s residuals are not normally distributed since the jarque-bera test has the probability 0.0017 which is below 0.05. seemingly unrelated regression (sur) cross-section weights on the fem because the fem suffers from heteroscedasticity, positive autocorrelation, the fem need to be re-regressed with sur cross-section weights so the sur weighted fem can be free from heteroscedasticity and autocorrelation problems (nurhayati et al., 2018). based on table 6, the constant coefficient equals –13.6632 which means if all independent variables equal to zero then indonesia imports automobile from the selected countries instead of exporting automobile. the coefficient of indonesia’s gdp per capita is 0.7513 which states that if indonesia’s gdp per capita increases 1% then indonesian automobile export rises 0.75% ceteris paribus. the coefficient of importer country’s gdp per capita is 1.6787 which states that if importer country’s gdp per capita increases 1% then indonesian automobile export rises 1.68% ceteris paribus. the coefficient of economic distance is – 2.0661 which states that if the economic distance between indonesia and an importer country increases 1% then indonesian automobile export decreases 2.06% ceteris paribus. the coefficient of oil price crisis is –0.2551 which states that if the oil price crisis occurs in the world then indonesian automobile export decreases 0.26% ceteris paribus. also, figure 3 displays that the sur weighted fem passes the normality test because the probability of the jarque-bera test is 0.2500 which is larger than 0.05. coefficient determination (adjusted rsquared) according to table 6, figure 1the value of the adjusted r-squared is 0.9817. this means that the gravity model can describe indonesian automobile export about 98.17% while the rest 1.83% is influenced by other variables. f-test figure 1f-statistic is 516.8146 with the probability of 0.0000 which is lower than 0.05 (table 6). this means that indonesia’s gdp per capita, importer country’s gdp per capita, economic distance, exchange rate, and oil price crisis simultaneously have a significant effect on indonesian automobile export. t-test indonesia’s gdp per capita has t-statistic = 4.6474 with the probability = 0.0000. so, the hypothesis is accepted that indonesia’s gdp per capita has a significant effect on indonesian automobile export. importer country’s gdp per capita has tstatistic = 9.8547 with the probability = 0.0000. so, the hypothesis is accepted that the importer country’s gdp per capita has a significant effect on indonesian automobile export. economic distance has t-statistic = – 9.1120 with the probability = 0.0000. so, the hypothesis is accepted that the economic distance between indonesia and the importer country has a significant effect on indonesian automobile export. exchange rate has t-statistic = 10.4522 with the probability = 0.0000. so, the hypothesis is accepted that the exchange rate has a significant effect on indonesian automobile export. oil price crisis dummy variable has tstatistic = –4.8034 with the probability = 0.0000. so, the hypothesis is accepted that the oil price crisis has a significant effect on indonesian automobile export. effect of indonesia’s gdp per capita the analysis result concludes that indonesia’s gdp per capita has a significant effect positively on indonesian automobile export. this finding is inline with hermawan (2011) where indonesia’s gdp per capita has a positive effect on indonesian fibre export. however, it is different from wardani & mulatsih (2017) where indonesia tend to lose jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 18 28 tires export demand when the domestic consumption increases. the result indicates that the increase of indonesians wealthiness also rises indonesian automobile export. the increase of wealthiness causes the automobile demand in the domestic market to increase. as a result, the average cost of automobile production can be minimized creating a more competitive price in automobile export. effect of importer country’s gdp percapita the analysis result finds that the importer country’s gdp per capita is a significant determinant variable on indonesian automobile export. this finding is inline with hermawan (2011), nurhayati et al. (2018), wardani & mulatsih (2017) where the importer country’s gdp per capita has a positive effect on indonesian export commodities. the result indicates that the wealthiness of the importer country’s people influences their purchasing power. the increase of wealthiness causes the automobile demand in the importer country also rises. therefore, indonesia can expand automobile export in the importer country’s market. effect of economic distance the analysis result concludes that the economic distance between indonesia and an importer country affects negatively indonesian automobile export. this finding is inline with nurhayati et al. (2018), sari et al. (2014), virginia & novianti, (2020), wardani & mulatsih (2017) where the economic distance between indonesia and the importer country has a negative effect on indonesian export commodities. the result indicates that the further the location of an importer country from indonesia, the more expensive the export transportation cost is which results in import discouragement from indonesia. effect of exchange rate the analysis result finds that the exchange rate has a significant influence positively on indonesian automobile export. this finding is inline with dinh et al. (2011) since this paper utilizes the same exchange rate equation. the economic distance between indonesia and the importer country has a negative effect on indonesian export commodities. the result indicates that the higher the exchange rate the cheaper the export price of indonesian automobiles are. since most of the selected middle-east countries adopt the fixed exchange rate regime, the exchange rate between rupiah and us$ should be concerned on this gravity model. nevertheless, rupiah devaluation is not a good answer to increase automobile export because indonesia still requires importing raw and intermediate materials for automobile production. rupiah depreciation can also raise automobile price because the imported material becomes more expensive. effect of oil price crisis the analysis result concludes that the oil price crisis can weaken indonesian automobile export significantly. the oil price crisis is a unique dummy variable that is utilized in this paper. this dummy variable is used to capture the phenomenon of economic contraction in particular middle-east countries such as bahrain, kuwait, oman, qatar, sa, and uae during 2016 – 2018. since oil is the primary export commodity of these countries, their income highly depends on the world oil price. thus, the collapse of oil price in the period impacted their importability. conclusion despite of war conflict often strikes in particular countries, the middle-east countries are potential for indonesian automobile export since they have such a large gdp from exporting oil. the determinant variables which give a positive effect significantly on indonesian automobile export to the selected middle-east countries are indonesia’s gdp per capita, the importer country’s gdp per capita, and the exchange rate. on the other hand, the determinant variables which give a negative effect significantly on indonesian automobile export to the selected middle-east countries are the economic distance between indonesia and the importer country and the oil price crisis. references abedini, j., & péridy, n. 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(2015). analisis daya saing ekspor kopi indonesia dan vietnam di pasar asean 5. jurnal habitat, 26(3), 152– 162. https://doi.org/10.22437/jiseb.v20i1.5028 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 18 28 list of tables table 1. multicollinearity test variables 𝐥𝐧 𝑮𝑫𝑷𝒑𝑪𝒊𝒕 𝐥𝐧 𝑮𝑫𝑷𝒑𝑪𝒎𝒕 𝐥𝐧 𝑬𝑫𝒊𝒎𝒕 𝐥𝐧 𝑬𝑹𝒕 𝐥𝐧 𝑮𝑫𝑷𝒑𝑪𝒊𝒕 1.0000 0.0751 0.0097 0.0288 𝐥𝐧 𝑮𝑫𝑷𝒑𝑪𝒎𝒕 0.0751 1.0000 0.2076 0.2994 𝐥𝐧 𝑬𝑫𝒊𝒎𝒕 0.0097 0.2076 1.0000 -0.0759 𝐥𝐧 𝑬𝑹𝒕 0.0288 0.2994 -0.0759 1.0000 source: eviews output table 2. multiple regression analysis variables cem fem rem coefficient std. error coefficient std. error coefficient std. error constant -6.2116* 3.2493 -13.5109*** 4.1341 -4.1168 2.9869 ln 𝐺𝐷𝑃𝑝𝐶𝑖𝑡 1.4816*** 0.3841 0.8011*** 0.2755 1.5895*** 0.2228 ln 𝐺𝐷𝑃𝑝𝐶𝑚𝑡 0.6121*** 0.1084 1.8359*** 0.5547 0.1811 0.3223 ln 𝐸𝐷𝑖𝑚𝑡 0.8547*** 0.1089 -2.4430*** 0.6965 0.3269 0.3639 ln 𝐸𝑅𝑡 -0.01926 0.0461 2.6158*** 0.3390 0.5361*** 0.1592 𝑂𝐶 0.0648 0.2812 -0.3251* 0.1657 -0.1680 0.1568 r-squared 0.5514 0.8894 0.366055 adjusted r-squared 0.5327 0.8766 0.339641 f-statistic 29.497 69.2950 13.8582 prob(f-statistic) 0.0000*** 0.0000*** 0.0000*** source: eviews output notes: (*) significant at 0.1, (**) significant at 0.05, and (***) significant at 0.01 table 3. model identification test chow test hausman test effects test statistic d.f. prob. test summary chi-sq. statistic chi-sq d.f. prob. cross-section f 42.7981 (8,112) 0.0000*** cross-section random 0.0000 5 1.0000 cross-section chi-sq. 176.4563 8 0.0000*** cross-section test variance is invalid. hausman statistic set to zero. source: eviews output notes: (*) significant at 0.1, (**) significant at 0.05, and (***) significant at 0.01 table 4. heteroscedasticity test on the fem glejser test variable coefficient standard error t-statistic probability constant 4.7195 0.9436 5.0018 0.0000*** ln 𝐺𝐷𝑃𝑝𝐶𝑖𝑡 -0.4061 0.1115 -3.6407 0.0004*** ln 𝐺𝐷𝑃𝑝𝐶𝑚𝑡 -0.1095 0.0315 -3.4789 0.0007*** ln 𝐸𝐷𝑖𝑚𝑡 0.0081 0.0316 0.2550 0.7992 ln 𝐸𝑅𝑡 -0.0079 0.0134 -0.5917 0.5552 𝑂𝐶 0.2245 0.0816 2.7500 0.0069*** source: eviews output notes: (*) significant at 0.1, (**) significant at 0.05, and (***) significant at 0.01 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 18 28 table 5. autocorrelation test on the fem durbin-watson test dw statistic k n dl du 1.4682 5 126 1.6276 1.7923 source: eviews output and durbin-watson table table 6. the sur weighted fem analysis variable coefficient standard error t-statistic probability constant -13.6632 2.1461 -6.3664 0.0000*** ln 𝐺𝐷𝑃𝑝𝐶𝑖𝑡 0.7513 0.1617 4.6474 0.0000*** ln 𝐺𝐷𝑃𝑝𝐶𝑚𝑡 1.6787 0.1703 9.8547 0.0000*** ln 𝐸𝐷𝑖𝑚𝑡 -2.0661 0.2267 -9.1120 0.0000*** ln 𝐸𝑅𝑡 2.5790 0.2467 10.4522 0.0000*** 𝑂𝐶 -0.2551 0.0531 -4.8034 0.0000*** r-squared 0.9836 f-statistic 516.8146 adjusted r-squared 0.9817 prob(f-statistic) 0.000000 source: eviews output notes: (*) significant at 0.1, (**) significant at 0.05, and (***) significant at 0.01 list of figures figure 1. indonesian automobile domestic sales and export (units) figure 2. the fem residuals normality test 0 2 4 6 8 10 12 14 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 series: standardized residuals sample 2006 2019 observations 126 mean -4.23e-17 median 0.019909 maximum 1.778329 minimum -2.161856 std. dev. 0.584490 skewness -0.113092 kurtosis 4.543560 jarque-bera 12.77712 probability 0.001681 200.000 400.000 600.000 800.000 1.000.000 1.200.000 1.400.000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 domestic sales export jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 18 28 figure 3. the sur weighted fem normality test 0 2 4 6 8 10 12 14 16 -2.5 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 series: standardized residuals sample 2006 2019 observations 126 mean 6.14e-16 median -0.007704 maximum 1.834444 minimum -2.325406 std. dev. 0.983390 skewness -0.140477 kurtosis 2.329782 jarque-bera 2.772670 probability 0.249990 correspondence to : mai.yuliza@gmail.com received: 3 february, 2021 accepted: 10 march, 2021 published: 30 march, 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 1, pp. 9 18 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the role of human resources has a critical and strategic position in the organization to achieve goals. human resources are essential for business in managing, and exploiting employees to function productively to reach organization goals. human resources in the firms have need of to be managed professionally to balance the needs of employees and the assertions and capabilities of the company organization (mazur & walczyna, 2020). human resources are the only resources with feelings, desires, skills, knowledge, encouragement, power, and work. all of these human resource potentials affect the organization's efforts to achieve goals (sutrisno, 2019, hal. 3). based on the global report from deloitte, human resource management is the handling of various problems within the scope of employees, employees, laborers, managers, and other workers to be able to support the activities of an organization or company to achieve a predetermined goals (geller & mazor, 2011). the another important factor supporting individual or organizational performance is the use of the web or cloud-based technology to support their business with the concept of digitization, which makes it much easier in terms of managing information systems (jou & wang, 2013; husain & budiyantara, 2020). hereinafter, good hr in a company can affect the level of success of the organization. the level of organizational success, i.e., achieving organizational goals supported by optimal employee performance. high performance requires motivation and organizational support (putri, haryadi, & anggraeni, 2018). both of them in the era of the industrial revolution 4.0, of course, are very dependent on one another. the individual performance of its employees greatly influences the success of an organization. of course, achieving performance goals requires employees who have good performance who work effectively and efficiently and hospital organizations that effect of work movements, job promotion, and compensation towards employee performance (study at ibnu sina simpang empat islamic hospital) mai yuliza1, mezi desri2, nasfi3 1,2management department, sekolah tinggi ilmu ekonomi pasaman, padang − indonesia 3management department, stes manna wa salwa, padang − indonesia abstract the role of human resources has a critical and strategic position in the organization to achieve goals. human resources are essential for companies in managing and utilizing employees to function productively to achieve company goals. this study's objectives are to analyze and provide empirical evidence on the effect of work movements, job promotion, and compensation on employee performance at the ibnu sina simpang empat islamic hospital. the type of research used in this research is quantitative research. this study's population was all islamic hospital ibnu sina simpang empat, totaling 239 employees, and the final sample counted as many as 150 employees. the data analysis technique used multiple linear regression analysis. this research aims to analyze and provide empirical evidence on work movements, job promotion, and compensation on employee performance at the ibnu sina simpang empat islamic hospital, pasaman barat, sumatera barat with yields as follows: (1) work movements is not affect employee performance significantly. (2) job promotion is affecting employee performance significantly. (3) compensation is affecting employee performance significantly. (4) work movements, job promotion, and compensation is affecting employee performance simultaneously. work movements, job promotion, and compensation to employee performance variables have contributed a level of strength, i.e., 52,6 percent. keywords job promotion; compensation; employee performance jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 9 17 require quality human resources and can provide services to the community. to improve hospitals' performance and competitiveness, high-performance employees with the ability to understand the hospital conditions and the public's will are needed so that they can create maximum, productive, and innovative performance results. in context of international human resource management (ihrm), the ‘softer’ culturalist perspective draws concern to cultural specific in terms of the differing values, ideas, and beliefs shared by people within any given society. these aspects will then be taken into the organizational setting and uniquely influence an individual's workplace behavior (nickson, 2007, hal. 41). nowodays, the hospital as a health institution is growing rapidly. hospitals are required to improve the quality of their services to compete to be the main choice for the community. according to the indonesian ministry of health in 2009, the hospital is a health service institution for the community with its unaccompanied characteristics. it is affected by the cultivation of health science, technological progress, and the community's socio-economic life, which must continue to be able to improve quality services (vika ayu & ernawati, 2015). the ibnu sina simpang empat islamic hospital is a company or private organization engaged in the service sector located in west pasaman regency, which aims to provide health services for west pasaman and its surroundings. following the hospital's mission, namely implementing quality services and prioritizing patient safety, completing resources, facilities, and infrastructure, increasing the professionalism of service providers, and applying islamic values in providing services at the hospital. the ibnu sina simpang empat islamic hospital, which has been fully accredited, continues to organize itself and improve service quality by providing excellent service to the community. currently, the ibnu sina simpang empat islamic hospital consists of four floors and several other supporting rooms, namely the emergency room (ugd), a polyclinic room consisting of cardiac, ent, dental, obstetrics, eyes, nerves, surgery, bones, children, and lungs. pulmonary, internal medicine, physiotherapy and geriatrics, then operating rooms and inpatient rooms consisting of icu, safa, perinatology, marwa, arafah, and mina. based on the results of observations and interviews with informants thru the pre-survey stage. the problems faced are applying for transfer and promotion at the ibnu sina simpang empat islamic hospital, which is still not following employees' level of expertise. many employees are dissatisfied with information on job promotions conducted by the company that is not objective and fair. employees are not given the same opportunity to follow procedures in filling vacancies in a position. whereas the theory states that if the promotion is given to competent people, its performance will increase (rivai, 2015). another problem faced was the compensation received by the ibnu sina simpang empat islamic hospital employees, namely direct compensation (salary, services, incentives, allowances) and indirect compensation (health insurance, work uniform facilities). the organization is obliged to use various rewards to attract and retain and motivate its employees to achieve goals. research objectives empirical inquiries seeking to link hr reforms and organizational performance have been attempted with some success in health care settings (wilkinson, muurlink, awan, & townsend, 2018). based on the preposition's formularization above, this study's objectives are to analyze and provide empirical evidence on the effect of work movements, job promotion, and compensation on employee performance at the ibnu sina simpang empat islamic hospital, pasaman barat, sumatera barat. performance employee performance plays an important role in achieving organizational goals and advancing the abilities of employees because it can provide work morale that fosters selfconfidence. performance is the comparison of the work achieved by employees with predetermined standards. performance can also be interpreted as work performance or work implementation, or performance (sidanti, 2015). performance is the achievement or achievement of an employee concerning the tasks assigned to him (marwansyah, 2016, hal. 228). performance (work performance) is the result of work in quality and quantity achieved by an employee in carrying out his duties following the responsibilities assigned/assigned to him (mangkunegara, 2017, hal. 9). from some of the references above, it can be concluded that performance is a person's success in carrying out the tasks given by the company and which is mandated jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 9 17 both in terms of quality or one's ability to interpret tasks and how many employees provide the ability with sacrifices made as to the goal of achieving result satisfaction—the maximum to the company. the reach of employees’ performance yield and output recognized by the organization where they did and characterized by skills, effort, and nature of work conditions is the composite of the section which represents better employees’ performance (suharto, suyanto, & hendri, 2019). performance indicators consist of (1) quality; work quality is measured by employees' perceptions of the quality of work produced and the perfection of tasks on employees' skills and abilities. (2) quantity; represents the amount produced expressed in terms such as the number of units, the number of activity cycles completed. (3) punctuality of time; is the level of activity completed at the beginning of the stated time, seen from the point of coordination with the output results and maximizing the time available for other activities. (4) effectiveness; is the level of use of organizational resources (workforce, money, technology, raw materials) maximized to increase each unit's use of resources. (5) independence; it is the level of an employee who will later carry out their work functions and work commitment. it is a level where employees have a work commitment to the agency and employee responsibilities to the office (robbins & coulter, 2016). movements movements is a routine activity of a company to be able to implement the principle of 'the right men on the right place' (daryanto, 2013, hal. 41). the movements can also occur within one institution, for example from unit to part of another unit (manullang, 2012). movements are activities to move workers from one place of work to another. movements include activities to move workers, transfer of responsibilities, transfer of employment status, and the like (hasibuan, 2017, hal. 111). based on the above definitions, it can be concluded that movement is a process of moving an employee's position/job to another position/job which is considered to be of the same level or equivalent. the movements that are carried out can increase effectiveness and efficiency. therefore, it is necessary to evaluate each worker objectively. several factors that are considered objective and rationale must be considered, namely: (1) movements are caused by manager policies and regulations; (2) movements based on the principle of the right man on the right place; (3) movements as a basis for increasing working capital; (4) movements as a medium for maximum competition; (5) movements as a step for promotion; and (6) movements must be coordinated (hasibuan, 2017, hal. 102). movements indicators consist of: (1) mutation frequency, namely the frequency of mutations in the organization. (2) reasons for the transfer, namely the factors that support the transfer's implementation, whether it comes from the company or from the employee itself. (3) accuracy in carrying out mutations adjusted to employee workability, level of education, length of tenure, responsibilities or workload, pleasure or desire of employees, applicable policies or regulations, and the suitability between the old position and the current position (nitisemito, 2013; ambarita & ridho, 2015). job promotion after we know that promotion is basically a change from a lower level to a higher level followed by an increase in duties, powers, and responsibilities. types of promotion include: (1) temporary promotion, which is a form of promotion that is carried out for a temporary period, this promotion is usually used if you have to fill an empty position for a while because the official concerned is sick, on leave, or is attending education. to fill the vacancy, one of the employees is appointed temporarily to carry out the position's duties; (2) permanent promotion; an employee is promoted from a position to a higher position because the employee has met the requirements promoted. this promotion is permanent; (3) small scale promotion; increasing an employee's position from a position that is not difficult to transfer to a difficult position that requires certain skills but is not accompanied by an increase in authority, responsibility, and salary; and (4) dry promotion; an employee is promoted to a higher position accompanied by an increase in rank, authority, and responsibility but not accompanied by an increase in salary or wages (hasibuan, 2017, hal. 112). job promotion indicators consist of: (1) work experience, every employee who has reached a certain service period should get a promotion. (2) the education level is important in providing promotion because higher education and position be given. (3) job performance is employees who are given promotions are certainly high achievers. (4) jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 9 17 career advancement is an employee who is promoted will be able to enhance the employee's career, and (5) justice is the promotion of promotion must be based on the principle of fairness so that the implementation of the promotion does not cause conflict in the organization (nitisemito, 2013, hal. 112-113). compensation compensation is "any form of payment or compensation given to an employee and arising from the employee's employment." (dessler, 2015, hal. 417). employees who work in an organization definitely need compensation or compensation that is sufficient and fair; if possible, it is quite competitive compared to other organizations or companies. a good compensation system will greatly affect the morale and productivity of a person. a good compensation system needs to be supported by a rational method that can result in a person being paid or compensated according to the work guidance. compensation is all income in the form of money, direct or indirect goods received by employees as compensation for the company's services. establishing a potent compensation system is an essential section of human resource management as it aids attract and resist talented jobs. besides, the company's compensation system has an impact on strategic performance (alwi, 2017). compensation indicators consist of: (1) salary and wages (rights received by employees because of compensation to the company); (2) incentives (additional compensation beyond salary and wages provided by the company); (3) facilities (compensation provided by the company to employees to support the smooth running of work and motivate employees to work morale); (4) allowances (additional compensation provided under company policy to all employees to improve employee welfare) (hasibuan, 2017). previous research, conceptual framework, hypothesis development the yields of several previous studies about employee performance include (1) christilia o. posuma, which researches ratumbuysang manado hospital's object research with the test of three competence, compensation, and leadership of factors in the march-july 2013 period. this study involves 77 final samples of hospital employees. the results showed that competence, compensation, and leadership had a simultaneous effect on employee performance, but partial leadership did not significantly influence employee performance. (2) anton tirta komara and nelliwati euis, which researches regional general hospital's (rsud) in bandung city, object research with the test of three compensation, motivation, and job satisfaction factors in 2014. this study involves 183 respondents of civil servants. the results showed that compensation, motivation, and job performance had a simultaneous and partial effect on employee performance. (3) luh putu darmika yani, gede putu agus jana susila, and i wayan bagia, which researches hotel bali handara golf and country club resort, object research with the test of a job promotion and compensation factors in 2016. this study involves 50 respondents of employees. the results showed that job promotion and compensation had a simultaneous and partial effect on employee performance. (4) taufiqurrahman noor, which researches religious affairs office in banjarbaru city, object research with movements, promotions, and cultural organization factors in 2017. this study involves 116 respondents of civil servants. the results showed that movements, promotions, and cultural organization had a simultaneous and partial effect on employee performance. (5) anrio muaja, sri murni, and luckey o.h. dutolong, which researches hasjrat abadi (sudirman) manado corporation, object research with a job promotion, work mutations, and compensation factors in 2018. this study involves 62 final samples of corporation employees. the results showed that job promotion and had a simultaneous and partial effect on employee performance. the results showed that job promotion, work mutations, and compensation had a simultaneous effect on employee performance, but partial work mutations did not significantly influence employee performance. the research above is that there is a gap, namely that several factors that affect employee performance do not significantly affect leadership and work movements. they are summarized into the conceptual framework for formulated variables or construct. the frame of mind is a draftual model of how the theory relates to various factors that have been recognized as important necessaries (sugiyono, 2017, hal. 60). this technique is needed to formulate an alternative hypothesis. the alternative hypothesis formulated using ipo (inputprocess-output) logic is combined into a jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 9 17 causal model (sani, pusparini, rizal, khristiana, zailani, & husain, 2020). the input in question is the entire recorded data, namely survey data on employees who actively work in islamic hospitals, processing work movements, promotion, and compensation to produce output, namely employee performance which is processed using statistical analysis. model compute in research this is described as follows: employee performance h1 h3 work movements h2job promotion compensation figure 1: research model regarded on the conceptual framework described above, this research hypothesis is: h1: work movements affects the employee performance. h2: job promotion affects the employee performance. h3: compensation affects the employee performance. methods approach, and type of of research the type of research used in this research is quantitative research. the research method used is associative, a study that aims to determine the relationship between one variable and another (sugiyono, 2017, p14). population and sample this study's population was all islamic hospital ibnu sina simpang empat, totaling 239 people. in this study, the sampling technique used was the probability sampling method with a simple random sampling technique. this technique is random sampling so that all objects have the same opportunity to be selected as samples. in determining the sample size, researchers used the slovin formula with a significant level (α) of 5 percent, as the final sample counted as many as 150 employees. technique in collectiong data the data collection technique is an attempt to obtain the data needed in research. the data collection techniques used were the interview method, the observation method, and the literature method. the instrument used in this study was a questionnaire with a 'linkert' scale with 5 (five) points of gradation. use of questionnaires to obtain data from each research variable was used. in this study, there are 4 (four) variables consisting of 3 (three) independent variables, namely, work movements, job promotion, and compensation, and 1 (one) dependent variable, namely the employee performance. technique in data analysis the data analysis technique used multiple linear regression analysis. this analysis is used to determine how much influence two or more independent variables have on the dependent variable (kuncoro, 2011). the multiple linear regression equation is formulated as follows: y = a + b1x1 + b2x2+ b3x3+ e results and discussion results validity and reliability tests are carried out to ensure the research instrument is an accurate and reliable measuring tool. in the validity test in this study, if the correlation value is below 0.30, it can be concluded that the item is invalid, so it must be corrected or discarded for further research. based on this, the data validity test results are above 0.30, which means that the instrument used is valid and reliable. the instrument is said to be reliable if it has a cronbach's alpha value of at least 0.60 (sugiyono, 2017, hal. 59) the results of the reliability test in this study are presented in the following table: table 1. reliability test yields variables cronbach's alpha score std. cronbach's alpha conclusions work movements (x1) 0.795 0.60 reliable job promotion (x2) 0.865 0.60 reliable compensation (x3) 0.830 0.60 reliable jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 9 17 variables cronbach's alpha score std. cronbach's alpha conclusions employee performance (y) 0.918 0.60 reliable source: data elaborate (2020) according to on the test yields in the table above, it shows that the work movements (x1), job promotion (x2), compensation (x3), and employee performance (y) variables are declared reliable. this is evidenced by each variable having an alpha coefficient value more significant than chronbach's alpha 0.60. to find out whether the data is normally distributed or not, we use the kolmogorovsmirnov (k-s) statistical test based on the output in the following table: table 2. normality test yields variables asymp. sig. (2-tailed) conclusions work movements (x1) 0.199 normal distributed job promotion (x2) 0.136 normal distributed compensation (x3) 0.203 normal distributed employee performance (y) 0.235 normal distributed source: data elaborate (2020) according to the yields of the data analysis table above, it is known that the significance value of the residual performance variable is 0.235. if the significance score is compared with alpha (α> 0.05), it is proven that the significant sig score of alpha (0.274> 0.05), the significance score of the work movements variable residual is 0.199 (0.199> 0.05), the significance score of the residual job promotion variable is 0.136 (0.136> 0.05), and the significance score of the residual variable compensation is 0.203 (0.203> 0.05). thus, it can be concluded that the data in this study were from 4 normally distributed variables. table 3. multicollinearity test yields variables tolerance score vif score conclusions work movements (x1) 0.910 1.099 free of multicollinearity job promotion (x2) 0.395 2.534 free of multicollinearity compensation (x3) 0.384 2.606 free of multicollinearity source: data elaborate (2020) according to the yields above, the tolerance score is 0.910 or > 0.1; the vif score is 1.099 or < 10, the tolerance score is 0.395 or > 0.10 and the vif score is 2.534 or < 10, the tolerance score is 0.384 or > 0.1, and the vif score is 2.606 or < 10, meaning that each of the work movements, job promotion, and compensation variable does not have multicollinearity symptoms. to test the presence or absence of heteroscedasticity, it can view from the scatterplot plot graph. if there is a certain pattern, such as dots that form a certain pattern which is regular wavy, widened, and sideways), it can be interpreted that there has been heteroscedasticity or vice versa. figure 2: scatterplot the scatterplot graph above shows that the residual data in the regression model spreads randomly below and above the number 0 on the y-axis and does not form a certain pattern. thus the regression model in this study did not occur heteroscedasticity symptoms. to determine whether the regression equation function used is linear, it can be the view from the p-p plot as follows: jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 9 17 figure 3: linearity test from the p-p plot graph above, it can be seen that the points move towards the regression model with a linear line, so it can be concluded that the regression model of this study is linear. the heteroscedasticity test is useful for testing whether a population group's variation from one observation to another is constant. it is called homoscedasticity. if it is different, it is called heteroscedasticity. according to the data analysis in the table above, the results of the multiple linear regression equation are as follows: y = 8.419 0.169x1 + 0.612x2+ 0.415x3+ e table 4. summary of regression test yields r-square (adj.) 0.526 sig. score (f) 0.000 variables coefficients sig. score (t) conclusions constant 8.419 0.002 work movements (x1) -0.169 0.141 h1, reject job promotion (x2) 0.612 0.000 h2, accept compensation (x3) 0.415 0.003 h3, accept source: data elaborate (2020) to determine each independent variable's impact on the dependent variable, it can be the view from the regression coefficient value with the existing significance level. work movements (x1) has no significantly affected the employee performance, with a significant score of more than 0.05, i.e., 0.141. job promotion (x2) has significantly affected employee performance, with a significant score of less than 0.05, i.e., 0.000. compensation (x3) has significantly affected employee performance, with a significant score of less than 0.05, i.e., 0.003. hereinafter, f-statistic, work movements, job promotion, and compensation have affected employee performance with a significant score of less than 0.05, i.e., 0.000. besides, the magnitude of the value of the contribution of the three factors above results in 0.526, meaning that 52.6 percent is strong enough to explain employee performance in islamic hospital ibnu sina simpang empat. discussions work movements in imply from employee performance in islamic hospital ibnu sina simpang empat yields coefficients score as the minus of 0.169 (table 4). it means that the coefficient results show a negative and significance of more than 0.05, so that does not affect is work movements towards employee performance. this contrivance in line with the previous study shows that work mutations did not significantly influence employee performance (muaja, murni, & dotulong, 2018). this study's yields show conformity with locke's goal setting theory, which explains that employees who understand the goals and expectations of a leader for their performance will not deviate from their behavior when under pressure from superiors or complex assignments. one of the complex assignments here is when the employee has to feel the transfer. movements carried out at the ibnu sina simpang empat islamic hospital are limited to moving rooms. mutations are consequences that are known and ready to run. therefore, mutations do not affect the performance of employees at the ibnu sina simpang empat islamic hospital. hereafter, this contrivance, in contrast with the previous study, showed that work movements have significantly influence spirit of work (ambarita & ridho, 2015), and employee performance (noor, 2017) job promotion in implies from employee performance in islamic hospital ibnu sina simpang empat yields a coefficient score of 0.612 (table 4). it means that the coefficient results show strength and significance of less than 0.05, so that does affect is job promotion towards employee performance. this contrivance, in line with the previous study, showed that job promotion have significantly influence employee performance (yani, susila, & bagia, 2016; noor, 2017; muaja, jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 9 17 murni, & dotulong, 2018). job promotion can affect employee performance. by giving promotion to an employee, employees who receive a promotion will have high performance. still, employees who do not receive a promotion will also have more motivation to work better and get the same thing as other employees who receive a promotion. therefore, it is better if the ibnu sina simpang empat islamic hospital should provide a fair and transparent promotion following the employee's performance. thus, promotion is one factor that must be considered to get better employee performance to achieve organizational goals. compensation in implies from employee performance in islamic hospital ibnu sina simpang empat yields a coefficient score of 0.415 (table 4). it means that the coefficient results show quite a strength and significance of less than 0.05, which affects employee performance. in line with the previous study, this contrivance showed that compensation promotion has significantly influenced employee performance (posuma, 2013; komara & euis, 2014; yani, susila, & bagia, 2016; alwi, 2017; muaja, murni, & dotulong, 2018). maintaining and increasing the existing compensation can motivate employees and be more enthusiastic at work. the performance of employees at the ibnu sina simpang empat islamic hospital will also increase and get work performance per the organization's expectations. work movements, job promotion, and compensation in implies from employee performance in islamic hospital ibnu sina simpang empat yield a coefficient score of 0.000 (table 4) as f-statistics probability. it means that the coefficient results show a significance score of less than 0.05, i.e., 0.000. in line with the previous study, this contrivance showed that work movements, job promotion, and compensation promotion have together significantly influenced employee performance (muaja, murni, & dotulong, 2018). conclusion this research aims to analyze and provide empirical evidence on work movements, job promotion, and compensation on employee performance at the ibnu sina simpang empat islamic hospital, pasaman barat, sumatera barat with yields as follows: (1) work movements is not affect employee performance significantly. (2) job promotion is affecting employee performance significantly. (3) compensation is affecting employee performance significantly. (4) work movements, job promotion, and compensation is affecting employee performance simultaneously. the contribution value obtained from 0.526 shows that around 52.6 percent of employee performance can be explained by the work movements (x1), job promotion (x2), and compensation (x3). or practically, it can view that the contribution of work movements, job promotion, and compensation to employee performance variables quiet strength. ibnu sina simpang empat islamic hospital management needs to pay attention to employee transfer that has not been maximal; a comprehensive evaluation is necessary considering this aspect tends to be related to other aspects such as compensation, job promotion, and another. management also needs to make career development to manage human resources, especially those related to the three aspects, namely transfer, promotion, and compensation. further research can add other variables such as organizational culture, work climate, job satisfaction, and employee involvement to contribute to other sectors to improve employee performance. references alwi, m. 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(2016). pengaruh promosi jabatan dan kompensasi terhadap kinerja karyawan. ejournal bisma | jurusan manajemen, 4, 110. correspondence to : kukuh.panuntun23@gmail.com1 received: 23 august 2021 accepted: 6 october 2021 published: 30 december 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 4, 2021, pp. 11 21 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction organizational performance is defined as the level of organizational achievement in achieving agreed goals and objectives (nuryanto et al, 2020). therefore, employee performance is important to achieve organizational performance. employee performance is very influential on organization in achieving goals. according to the employee performance of mangkunegara (2009: 9), “employee performance is the result of the quality and quantity of work that an employee obtains when performing his duties according to his assigned responsibilities”.civil servants are jobs that have the aim of carrying out government duties and providing professional public servs. as mandated in law number 5 of 2014 concerning state civil apparatus (asn) promulgated on january 15, 2014, it is stated that asn is a profession for civil servants in charge of implementing public policies; provide public services with hight quality and professionalism ; and strengthen the unity and integrity of the republic of indonesia (article 11). this certainly gives great hope for civil servants to have competence and professionalism in providing good public services so that organizational goals can be achieved. improving the performance of civil servants can also be optimal if an agency has the influence of work discipline, career development and compensation on employee performance of protocol and consular directorate kukuh bagus panuntun1, masydzulhak djamil2 1,2 magister manajemen, mercubuana university, jakarta, indonesia abstract this study aims to determine the impact of work discipline, career development, and compensation on the performance of the civil servant (pns) of the general directorate protocol and consular affairs. the research object is selected because there are still problems in performance goals, work discipline, compensation and career development. this is a quantitative study and data collection conducted within the general directorate of protocol and consular affairs using questionnaires, interviews, and documents. data analysis used the structural equation analysis (sem) method on the smartpls 3.3.3 software. the results of this study show that career development variables significantly impact on compensation, while work discipline, career development and compensation variables have a significant direct impact on performance. then work discipline and salary variables mediated by compensation variables also have a significant impact on employee performance keywords discipline; career development; compensation; employee performance abstrak tujuan dari penelitian ini adalah untuk mengetahui pengaruh dari disiplin kerja, pengembangan karir, dan kompensasi terhadap kinerja pegawai pada pns direktorat jenderal protokoler dan konsuler. objek penelitian dipilih karena masih terdapat masalah terkait target kinerja, kompensasi, dan pengembangan karir. penelitian ini merupakan jenis penelitian kuantitaif dan pengumpulan data menggunakan kuesioner dan survey di lingkungan direktorat jenderal protokoler, dan konsuler. analisis data yang digunakan menggunakan metode analisis persamaan struktural (sem) pada software smartpls 3.3.3. hasil penelitian ini membuktikan bahwa variabel pengembangan karir berpengaruh signifikan terhadap kompensasi, dan variabel disiplin kerja, pengembangan karir, serta kompensasi berpengaruh signifikan cera langsung terhadap kinerja. kemudian variabel disiplin kerja dan kompensasi yang dimoderasi oleh variabel kompensasi juga memiliki pengaruh signifikan terhadap kinerja pegawai kata kunci disiplin kerja; pengembangan karir; kompensasi; kinerja jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 11-21 paid attention to the career development of its employees. career development is mean the process of enhancing personal work abilities in order to achieve the desired career. career development is the process of improving personal working ability in order to achieve an ideal career. career development is a condition that indicates that a person’s position in the career path determined by the relevant organization improves (sudiro, 2011: 91). in accordance with law number 39 of 2008 concerning state ministries, it is stated that the directorate general of protocol and consular affairs is one of 3 (three) ministries that cannot be dissolved by the president, in addition to the ministry of home affairs and the ministry of defense. the directorate general of protocol and consular affairs has the task of carrying out the formulation and implementation of policies in the field of administering protocol, consular, and diplomatic facilities, as well as the protection of indonesian citizens and indonesian legal entities abroad. sustainable and there is compensation so that employees have high morale. the directorate general of protocol and consular affairs also has many problems regarding resources related to the level of discipline, career development, and employee compensation. based on the data obtained through the payroll, absenteeism, and through pre-questionnaire with interviews of 20 employees at random, it can be seen that work discipline, career development, and compensation are still not optimal and resulting employee's performance target has not been achieved so that this study focuses on these variables literature review gibson in kasmir (2015: 182) stated that personal performance is is the establishment of hierarchical performance, which is influenced by personal characteristics, personal motivations, expectations, and management’s assessment of the achievement of personal work results. performance is basically about what employees do and don’t do. performance is kind of motivation and ability. to do a job or work, an individual ought to have a specific degree of willingness and ability. employee performance will provide an overview of how an employee contributes to the organization (susanto et al., 2021). achieving organizational goals requires the commitment of human resources to be able to operate the organization under any conditions. according to hasibuan (2016: 193), discipline is the main functional capacity of human asset the executives, in light of the fact that the better the worker discipline, the higher the work execution that can be accomplished. without great discipline, it is hard for associations and foundations to accomplish the best outcomes. however, this condition does not mean that employees can be exploited without providing appropriate rewards (compensation) so that employees do not have satisfaction in their work. employee satisfaction is very important in keeping employees gradual in an organization. compensation is what employees get in exchange for their contribution to the company's services. providing compensation as one of the implementation of human resource management functions is closely related to the types of personal rewards as an exchange for performing organizational tasks (rivai, 2005: 357). in its journey, the company will develop and be able to survive as long as it is supported by human resources who are committed to the organization. according to hidayat, sugiharjo and parashakti (2019), someone who has a great career will make an optimal contribution to the organization he/she follows. career development is concerned with making changes for the better. every company produces production, either goods or services where the level of productivity is highly dependent on the quality of individual employees. the individual quality of these employees is highly dependent on knowledge, professional skills, teamwork skills, the ability to grow ideas, and of course self-confidence in the career they carry out. career development is to help employees plan their future careers in the organization so that employees can fully carry out their activities. according to rivai and sagala (2009), career development is the process of improving personal working ability to achieve a career which they want. performance is performance, which can be interpreted employee in an organization can complete their work based on their respective authority and responsibilities, and legally get the goals of the organization, rather than violating laws and ethics. it can be understood that career development is a continuous process for individuals to achieve career planning goals that are compatible with organizational conditions through personal jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 11-21 efforts. based on this description, the research hypothesis is proposed as follows. h.1:work discipline affects the compensation of employees of the directorate general of protocol and consular affairs; everyone who works must be paid. the more employees get paid, the greater the motivation for employees to improve performance, so as to achieve job satisfaction at the employee level. laura (2012). according to sopiah (2013) compensation significantly effect postively on job satisfaction, and compensation also significantly effect on employee performance. so, the research hypothesis is proposed as follows: h.2:career development affects the compensation of the directorate general of protocol and consular affairs; career development is a proper method in organization to guarantee that individuals in the organization have the fitting capabilities, capacities, and experience when required.therefore, companies need to manage their careers and develop their careers in order to maintain the productivity of employees, and to encourage employees to always do their best to avoid job frustration and lead to a decline in company performance. according to felicia dewi wibowo (2006), career development has a positive and significant impact on organizational commitment and employee performance. based on this description, the research hypothesis is proposed as follows: h.3:the effect of work discipline on the performance of the employees of the directorate general of protocol and consular affairs; good employee discipline is very important in improving performance, reducing the desire to move, and increasing work productivity. based on this description, the research hypothesis is formulated as follows: h.4:the effect of career development on employee performance; according to fatimah (2013) inadequate compensation reduces employees' sense of organizational commitment, job satisfaction and work motivation. according to lieke emw (2008) compensation has a significant effect on organizational commitment. financial, social interaction, organizational rewards as part of job characteristics have a significant relationship with employee commitment to the organization, one of which is manifested in employee loyalty to the organization. satisfaction with compensation will create a sense of belonging and ultimately increase organizational commitment.based on this description, the research hypothesis is formulated as follows: h.5:the effect of compensation on employee performance; career development is important because management can increase productivity, improve employees’ attitudes towards work and build higher job satisfaction. career development is a formal method adopted by an organization to ensure human resources, because a career is a requirement for job satisfaction of a company's employees, and it contributes sufficiently to the realization of the company's established goals and objectives. according to deddysaputra (2010), career development has a positive and significant impact on employees’ job satisfaction, and according to veitzhalrivai (2004), career development means management can increase productivity and improve employees’ attitudes towards work and build job satisfaction.based on this description, the research hypothesis is formulated as follows: h.6:the effect of work discipline and compensation on the performance of the employees of the directorate general of protocol and consularaffairs; according to fatimah (2013) that inadequate compensation reduces employee organizational commitment, job satisfaction and work motivation, while rivai (2009) that career development is a process of increasing individual work abilities achieved in order to achieve the desired career, and also according to duan-hung chen (2011 foreign/new journal)that job satisfaction mediates the effect of tenure and career patterns on career commitment. fatimah (2013) stated that insufficient salary will reduce employees’ organizational commitment, job satisfaction, and work motivation, while rivai (2009) believes that career development is the process of jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 11-21 improving individual work abilities to achieve an ideal career, and according to duan-hung chen (2011) foreign/new journal) job satisfaction plays an intermediary role in the influence of tenure and career model on career commitment.based on this description, the research hypothesis is formulated as follows: h.7: career development and compensation affect the performance of the employees of the directorate general of protocol and consular affairs; the research framework for the relationship between career development, compensation, job satisfaction and organizational commitment will look like in figure 1 figure 1. conseptual framework research method this is quantitative research and the types of data used are primary and secondary data . the data collection method are interviews and questionnaires, and the report of performance the directorate general of protocol and consular affairs 2020. the population of this study is limited to the work unit of the secretariat general, which is 212 employees of the directorate general of protocol and consular affairs. then, the research sample was determined using the slovin method formula, with an error tolerance limit of 5% which then the results of the number of samples in this study could be determined. here is how to determine the sample size, one of which is according to (yusuf, 2014; 146), the technique of determining the sample size with the slovin formula as follows: 𝑛 = 𝑁 1 + 𝑁. 𝑒 2 information : n = sample n = population e =degree of accuracy or desired critical value the number of populations adjusted to the sample limits with an inaccuracy level of leeway of 5%, then by using the slovin formula above, total of sample in this study is : 𝑛 = 212 1 + 212 (0,05)2 = 137 respondent operational definition and variables measurement the operational definition is an explanation of each variable used in the study of the indicators that make it up. the variables used by the author in this study are independent variables and dependent variables. tabel 1 operational definition variables definition indicators scal e work disciplin e (x1) discipline is an individual's eagerness to agree with the guidelines that apply in the company. 1. attenda nce frequen cy 2. awaren ess level 3. adheren ce to work standar ds 4. work ethic 5. complia nce with regulati ons liker t career develop ment (x2) career developme nt is the process of selfdevelopme nt through improving employees' working ability to achieve their ideal career 1. educati on 2. training 3. selectio n 4. job promoti on mutation liker t jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 11-21 compe nsation (y1) compensa tion is all income got by employees in return for services provided to the company. 1. wage s 2. incenti ve 3. insura nce 4. office faciliti es 5.allowanc e like rt emplo yee perfor mance (y2) the result of work achieved by a person in organizatio n in terms of quality and quantity according to their respective authorities and responsibili ties 1. qualit y 2. quanti ty 3. respo nsibilit y 4. coope ration 5. initiative like rt data analysis this research uses structural equation analysis technique with the help of smartpls software version 3.3.3. ghozali (2006) explained that pls is a soft modeling analysis technique because it does not assume that data with a certain measurement scale and small samples (less than 100 samples) can be used. the analysis of the data in this study evaluates the internal model and the external model in the form of descriptive statistics and inferential statistical analysis to test their validity and test hypotheses.article text here article text herearticle text here. article text article text article text here. (arial 10 normal, sentence case) results and discussion descriptive statistics in order to use the likert scale from 1 to 5 (strongly disagree until strongly agree) according to the each variable statement, and to determine the answer trend of the questionnaire based on the type of answer selected, descriptive statistical analysis can be used. the average value of career development variables is 2.36. therefore, career development at the general secretariat's work unit, general directorate of protocoler and consular affairs, is still lacking. the average of the work discipline variable is 3.70, which shows that work discipline is still good. the average value of the compensation variable is 2.36. this shows that the compensation is still very low. the average of the performance variable is 3.31, which indicates that the performance of the staff of the general directorate of protocol and consular affairs of the ministry of foreign affairs is quite low. evaluation of the reflective (outer model) or indicator test in order to test the convergence validity, it is done by checking the reliability, internal consistency or structural reliability of a single item and the average variance extraction (ave). from the standardized loading factor value, we can see the evaluation of the convergent validity of the reliability check of a single item. the standardized load factor describes the correlation between each measurement item (indicator) and its structure. the load factor value used in this study is> 0.5, so if the load factor value <0.5 is in the calculation result of the measurement model (external model), it will be deleted from the model.the work discipline variable has 4 valid indicators and the rest are excluded from the model, 10 indicators from the career development variable are all valid so that they are included in the model, the compensation variable has 3 invalid indicators so that it must be removed from the model, and there are 6 valid indicators on the performance variable so that the rest are excluded from the model. model. structural model evaluation (inner model) or hypothesis testing assess the primary model (inner model) or test the speculation in this examination, that is, assess the way coefficient esteem, assess the r2 esteem, measure the impact size f2, utilize the decency of fit list (gof) to check the general construction model), and test the prescient connection (q2). evaluate the internal model or test the hypothesis in this study, that is, evaluate the path coefficient value, evaluate r2 value, measure the effect size f2, use the goodness of fit index (gof) to verify the overall structure model), and test the predictive correlation (q2). tabel 2 result of path coefficient test jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 11-21 origi nal sam ple (o) t stati stics p valu es t tab el hasil kete rang an work discip line (x1)-> comp ensati on (y1) 0.01 0 0,25 6 0,79 8 1,96 7 ts<tt posi tive, not sign ifica nt comp ensati on (y1) > perfor manc e (y2) 0,17 1 1,90 7 0.05 7 1,96 7 ts<tt posi tive, not sign ifica nt work devel opme nt (x2) > perfor manc e (y2) 0,34 2 3,03 6 0.00 3 1,96 7 ts>tt posi tive, sign ifica nt work discip line (x1) >perf oman ce(y2 ) 0.49 2 6,57 6 0.00 0 1,96 7 ts>tt neg ative , sign ifica nt work devel opme nt (x2) > comp ensati on (y1) 0,81 7 22,3 26 0.00 0 1,96 7 ts>tt posi tive, sign ifica nt source : base on primary data that running smartpls versi 3.3.3.(2020) by researcher variables direct effect indirect effect compens ation employe e performa nce employee performance work develop ment (x2) 0,817 0,342 0.140 work disciplin e (x1) 0,010 -0,492 0.002 compens ation (y1) 0,171 source :base on primary data that running smartplsversi 3.3.3.(2020) by researcher the parameter coefficient for the work discipline variable (x1) on the compensation variable (y1) is 0.010, which means that there is an influence between work discipline on compensation. the value of t statistics is 0.256 < from t-table 1.97 which means it is not significant. the magnitude of the parameter coefficient for the compensation variable (y1) on the employee performance variable (y2) is 0.171, which means that there is an influence between career development on compensation. the value of t statistics is 1.907 < from t-table 1.97 which means it is not significant. the magnitude of the parameter coefficient for the career development variable (x2) on the employee performance variable (y2) is 0.342, which means that there is an influence between career development on employee performance. the value of t statistic is 3,036 > from t-table 1.97 which means it is significant. the magnitude of the parameter coefficient for the work discipline variable (x1) on the performance variable (y2) is -0.492, which means that there is no influence between work discipline on performance. the value of t statistics is 6.576 > from t-table 1.97 which means it is significant. the magnitude of the parameter coefficient for the career development variable (x2) to the compensation variable (y1) is 0.817, which means that there is an influence between compensation on performance. the value of t statistic is 22,326 > from t-table 1.97 which means it is significant. the magnitude of the parameter coefficient for the career development variable (x2) through the compensation (y1) variable on performance (y2) is 0.342 > direct effect is 0.140, so y1 mediates the effect of x1 on y2. the magnitude of the parameter coefficient for the work discipline variable (x1) through the compensation variable (y1) on performance (y2) is 0.002 > direct effect is 0.492, so y1 mediates the effect of x2 on y2. use the calculation smartpls version 3.3.3 to evaluate the value of r2 based on the calculation result. the algorithm gets the result of the r2x value, that is, the compensation variable is 0.663 and the performance variable is 0.605. the value of r2 indicates that exogenous variables (career development and work discipline) have a fairly high degree of determination of endogenous variables. the effect size f2 is to check the influence of exogenous latent variables on endogenous latent variables or to check the pros and cons of the model. a value of 0.02 represents a weak impact, 0.15 represents a medium impact, and 0.35 represents a strong impact. the f² value of the work discipline on jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 11-21 compensation variable is 0.000. this means that career development variables have a weaker impact on the structural level. the f² value of the performance-related work discipline variable is 0.571. this means that the work discipline variable has a strong influence on the structural level. the f² value of the career development variable on performance is 0.097. this means that career development variables have a strong influence on the level of structure. the f² value of the career development variable regarding salary is 1.848. this means that the work discipline variable has a strong influence on the structural level. the f² value of the performance compensation variable is 0.025. this means that the influence of the compensation variable on the structural level is very weak. the calculated goodness of fit index (gof) shows a value of 0.512 (large scale). based on these results, it can be concluded that the overall performance of the measurement model (outer model) and structural model (inner model) is quite good, because the goodness of fit index (gof) value is greater than 0.35 (large-scale gof). model (outer model) and structural model (inner model) are feasible or effective. according to the calculation result of the predicted correlation (q2) above, it shows a value> 0.4. in this research model, the endogenous latent variable has a predictive correlation value (q2) greater than 0 (zero), so the exogenous latent variable as an explanatory variable can predict the endogenous variable, that is, performance or in other words prove that the model has good predictive correlation. results of the effect of independent variables on dependent variables testing the hypothesis about the influence between exogenous career development variables (x2), work discipline (x1) on endogenous variables compensation (y1) either partially or simultaneously and also career development (x2), work discipline (x1) and compensation (y1) on endogenous variable performance (y2), and also the following are related to the effect of the mediator or the influence of the mediator in this case performance as follows: tabel 3 result of partial effect of independent variables on dependent variables origin al (o) sample mean (m) t statistics p values work discipline -0,492 -0,504 6,897 0,000 (x1) -> performanc e (y2) work discipline (x1) -> compensati on (y1) 0,010 0,005 0,238 0,812 compensati on (y1) -> performanc e (y2) 0,171 0,162 1,865 0,063 career developme nt (x2) -> performanc e (y2) 0,342 0,341 3,050 0,002 career developme nt -> compensati on 0,817 0,820 21,212 0,000 source :base on primary data that running smartplsversi 3.3.3.(2020) by researcher tabel 4 result of simultaneous effect of independent variables on dependent variables r square f stats f tabel alpha (x1) -> kpmn (y1) -> knrj (y2) 0,663 88.40 2.46 f count> f tabel is accept ed (x2) -> kpmn (y1) -> knrj (y2) 0,605 69,54 2.46 f count> f tabel is accept ed source :base on primary data that running smartplsversi 3.3.3.(2020) by researcher (h1) work discipline has an impact on compensation. the path coefficient is 0.010 and p is 0.798, so h1 is rejected (p> 0.05). work discipline has no significant effect on compensation. the research results show that work discipline has an impact on compensation, but it is not significant. these results are consistent with research by riskapuspita sari (2018), which shows that the better the employee discipline, the higher the compensation and its impact on performance. therefore, the work discipline of employees has a positive impact on the compensation of working in the ministry of foreign affairs. the work discipline of all employees in various positions or job types can strive to increase the compenssation for career development. (h2) career development has an impact on compensation. the path coefficient is 0.817 and p is 0.000, so jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 11-21 (h2) is accepted (p <0.05). the research results show that career development has a significant positive impact on compensation. that is, the better the career development of employees, the higher the compensation. fransiscaoktavianooh, et al (2017)'s research results also show that career development has a significant positive impact on compensation, and compensation has a significant positive impact on performance. (h3) discipline has an impact on performance. the path coefficient is -0.492 and p is 0.000, so (h3) is accepted (p <0.05). the research results show that hypothesis 3 is proved, that is, work discipline variables have a positive and significant impact on performance. this result is consistent with the research results of catherine purnama (2016), that compensation and work discipline have a positive and significant impact on performance. (h4) career development has an impact on performance. the path coefficient is 0.342 and the p-value is 0.002, so h4 is accepted (p <0.05). career development has a significant impact on performance. the research results show that career development has a positive and significant impact on the performance of the staff of the general administration of protocol and consular affairs of the ministry of foreign affairs. this is consistent with the findings of ammar balbed (2019), which indicate that career development has a positive impact on performance. (h5) compensation has an impact on performance. the path coefficient is 0.0171 and p is 0.063. therefore (h5) is rejected (p> 0.05). compensation has no significant impact on performance. the results of the study show that compensation has a positive but insignificant effect on the employee performance. this is usually consistent with agung surya dwianto's research (2019), whose results show that compensation has a positive effect on performance. (h6) discipline and compensation have an impact on performance. the r2 of career development and compensation variables is 0.663, the f statistic is 88.40, and the f table value is 0.05, which is 2.46. this means that fcount (88.40)>ftable (2.46), then (h6) is accepted. therefore, it can be concluded that hypothesis 6 is proved, which shows that work discipline and compensation variables have a positive and significant impact on performance. the results of the study show that the work discipline established through remuneration has a positive and significant impact on employee performance. this is consistent with the study by ustadussholihin (2021), which pointed out that work discipline and compensation have a significant impact on employee performance. (h7) career development and compensation have an impact on employee performance. the r2 of career development and employee performance variables is 0.605, the f statistic is 69.54, the f table value is 0.05, and the alpha is 2.46. this means that f count (69.54)> f table (2.46), so h7 is accepted. the conclusion is that h7 proves that career development and compensation have a significant impact on employee performance. the research results show that hypothesis 7 has been proved, which shows that the career development variable through compensation is significant and has a positive impacton employee performance. it can be concluded that career development and discipline and remuneration affect the performance of the general directorate of protocol and consular affairs. this is consistent with the research of lismawati (2020), which pointed out that work discipline, career development and compensation have a significant positive impact on employee performance. conclusion this research result a proof that career development variables significantly effect on compensation. meanwhile, the variables of work discipline, career development, and compensation variables significantly effect on performance directly. then the variables of work discipline and compensation which are mediated by the compensation variable also significantly effect on employee performance variable. references journal article budiningsih, s., warso, m. m., & yulianeu, y., (2017) hubungan pengembangan karir dan kompensasi terhadap kepuasan kerja dan implikasinya pada komitmen organisasional pt. pertani (persero), wilayah jateng & diy. journal of management, 3(3), 2. nuryanto,et. al, (2020) keunggulan bersaing dalam meningkatkan kinerja organisasi berkelanjutan, jurnal manajemen dan bisnis islam at-tijaroh, vol 6. pp. 1-22. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 11-21 sangadji, e. m., &sopiah, s.,(2013) the effect of organizational culture on lecturers’ job satisfaction and performance: a research in muhammadiyah university throughout east java. international journal of learning & development, 3(3), 1-18. sholihin, u., (2021) dampak kompensasi kerja terhadap kinerja karyawan di masa pandemi covid 19 dengan kepuasan kerja sebagai variable intervening. (jmk) jurnal manajemen dan kewirausahaan, 6(1), 86-99. entire book ghozali, i. (2006). structural equation medeling, metode alternatif dengan pls, badan penerbi tundip. semarang. hasibuan. (2016). manajemen sumber daya manusia, edisi ke revisi. jakarta :bumi akasara. mangkunegara, anwar prabu. (2009). evaluasi kinerja sdm. bandung, refika aditama rivai. veithzal. (2005). manajemen sumber daya manusia untuk perusahaan. jakarta: pt raja grafindo persada. rivai, veithzal dan sagala, ella jauvani. (2009). manajemen sumber daya manusia untuk perusahaan dari teori ke praktik. jakarta: pt raja grafindo/ sudiro, a. (2011). perencanaan sumber daya manusia. undang-undang republik indonesia nomor 5 tahun 2014 aparatur sipil.15 september 2014 .lembaran negara republik indonesia tahun 2014 nomor 5494. jakarta. conference proceeding susanto, a. et. al., (2021). the influence of leadership, performance appraisalsystem, work motivation on job satisfaction andemployee performance of pt pdsi. micoss 2020, september 28-29, jakarta, indonesia. list of tables table 1. operational definition variables definition indicators scale work discipline (x1) discipline is an individual's eagerness to agree with the guidelines that apply in the company. 1. attendance frequency 2. awareness level 3. adherence to work standards 4. work ethic 5. compliance with regulations likert career development (x2) career development is the process of self-development through improving employees' working ability to achieve their ideal career 1. education 2. training 3. selection 4. job promotion 5. mutation likert compensation (y1) compensation is all income got by employees in return for services provided to the company. 1. wages 2. incentive 3. insurance 4. office facilities 5. allowance likert employee performance (y2) the result of work achieved by a person in organization in terms of quality and quantity according to their respective authorities and responsibilities 1. quality 2. quantity 3. responsibility 4. cooperation 5. initiative likert table 2. result of path coefficient test jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 11-21 original sample (o) t statistics p values t tabel hasil keterangan work discipline (x1)-> compensation (y1) 0.010 0,256 0,798 1,967 ts<tt positive, not significant compensation (y1) -> performance (y2) 0,171 1,907 0.057 1,967 ts<tt positive, not significant work development (x2) > performance (y2) 0,342 3,036 0.003 1,967 ts>tt positive, significant work discipline (x1) >perfomance(y2) -0.492 6,576 0.000 1,967 ts>tt negative, significant work development (x2) > compensation (y1) 0,817 22,326 0.000 1,967 ts>tt positive, significant variables direct effect indirect effect compensa tion employee performan ce employee performance work developme nt (x2) 0,817 0,342 0.140 work discipline (x1) 0,010 -0,492 0.002 compensa tion (y1) 0,171 table 3. result of partial effect of independent variables on dependent variables original (o) sample mean (m) t statistics p values work discipline (x1) -> performance (y2) -0,492 -0,504 6,897 0,000 work discipline (x1) -> compensatio n (y1) 0,010 0,005 0,238 0,812 compensatio n (y1) -> performance (y2) 0,171 0,162 1,865 0,063 career development (x2) -> performance (y2) 0,342 0,341 3,050 0,002 career development -> compensatio n 0,817 0,820 21,212 0,000 table 4. result of simultaneous effect of independent variables on dependent variables r square f stats f tabel alpha (x1) -> kpmn (y1) -> knrj (y2) 0,663 88.40 2.46 f count> f tabel is accepte d (x2) -> kpmn (y1) -> knrj (y2) 0,605 69,54 2.46 f count> f tabel is accepte d jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 4, 2021, pp. 11-21 list of figures figure 1. conseptual framework correspondence to : sitinuraziz@yahoo.com received: 7 august 2021 accepted: 18 august 2021 published: 30 september 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 3, 2021, pp. 1 9 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction front line employees are very important resources because of their important role in the overall operation of the business. in the previous literature, more research discussed phenomena that appear under different names, such as resource management human resources sustainability, green human resources management, social management, and ethical human resources management (ehnert, 2009). underlying the aforementioned studies is to develop long-term employment orientation and to the indifference of the employees, which is largely determined by the trust, loyalty, commitment, and equity in employment relations. therefore, it is important to further investigate the determinants in the context of organizational interpersonal relationships, such as the relationship between superiors and subordinates. various studies have explored interpersonal trust not only in the context of a sustainable relationship but also to improve the desired outcomes of employees such as job satisfaction, organizational commitment, organizational citizenship behavior, cooperation, and performance (stankevciut and savaneviciene, 2018). despite the importance of interpersonal trust in organizations for both sustainable work relationships and the results of positive employee attitudes and behavior, researchers in the past paid little attention to the determinants of interpersonal trust felt by frontline employees towards supervisors. hence, there is a need to investigate interpersonal trust, particularly trust-insupervisors in front-line employees. to address the academic gap mentioned above, a study was conducted on the interpersonal trust of frontline employees in trust-in-supervisors. the study of antecedents of the trust-in-supervisors in the context of frontline employees is still rarely explored. this research explores the abusive supervisor as negative antecedents of trust in supervisor and supervisor support and communication quality as positive antecedents of trust-insupervisor. furthermore, the moderating effect of relationship quality is examined on the effect of abusive supervisor and supervisor support on trust-in-supervisor the findings of this study are expected to contribute to theory and practice in several ways. the first examines the unique positions of frontline employees in the workplace, who are influenced by their immediate supervisor. as owners of power in the organization, leaders have a great influence on both the staff and the organization. organizations can run effectively if there is an emphasis on the best leadership style or one best way (rukaiyah and muliana, 2018). second, this study can contribute to the literature on sustainable employment relationships by empirically investigating some of the positive and negative trust in supervisor for frontline employee: quality of relationship as moderator siti nur azizah management department, economy and business, university of putra bangsa, indonesia abstract this study investigates the antecedents of a frontline employee’s trust-in-supervisor with relation quality as moderator variable.this research is a causal descriptive study to investigate the relationship between variables. a personally administered survey was conducted to collect data from 100 frontline employees in kebumen district, cenral java, indonesia. covariancebased structural equation modeling was applied using pls3 to explore the proposed relationships. the results show that abusive supervision is negatively related to fro ntline employee’s trust-in-supervisor, whereas supervisor support and communication quality have significant positive effects on frontline employee’s trust-in-supervisor. finally, the results show that relationship quality moderates (strengthens) the supportive influence of supervisors on trust in supervisors, but the quality of the relationship does not moderate the effect of abusive supervisors on trust in supervisors keywords trust-in-supervisor; abusive supervisor; supportive supervisor; qualuty of communication antecedents of frontline employees with trust-insupervisors. third, the findings of this study can contribute to the literature on employee cooperation behavior with trust-in-supervisors research conducted by barton, et al. (2012) explore abusive supervisor affect the relationship between the regulatory and supervisory stress rude. the results showed that the increase in the stress level of the supervisor was related to the increase in the experience of rough supervision that was rated by employees. tepper (2000) describes in his research as “rough supervision” and this has led to a decline in the trust of his subordinates. in another study, abusive behavior of the leadership of the abusive acts as a mediator in full relationship machiavellianism with counter-productive behavior (amir and malik, 2016) the research also shows that there is support from superiors who can increase the trust of subordinates, which then affects, among others, employee performance. the supervisor's role is very important to ensure that employees are competently capable of performing their jobs (rowold, 2008). the ability, virtue, and integrity of supervisors can increase or decrease employees' trust in them ( mayer and gavin, 2005). conversely, leaders will gain the trust of their subordinates if their behavior is by the principles of openness, fairness, and impartiality (de carlo, et al. 2020) so that superior communication will also increase subordinates' trust. trust is very important for cooperation. this is the most direct, economical, and effective way for leaders to increase organizational effectiveness (kramer and tyler, 1996). increasing the confidence of subordinates in their superiors will help form harmonious relationships in the organization that result in organizational citizenship behavior and increase job performance, loyalty, and willingness of subordinates to comply with superior decisions and organizational regulations, as well as reduce uncertainty, lower transaction costs, increase internal resources for use more rational, thereby increasing organizational effectiveness (barney and hansen, 1994). the quality of the relationship is a determining factor in increasing trust if the support from the supervisor is carried out properly. this research will take in several organizations in kebumen, central java and the subject of this research are front-line employees. the framework of this research uses social exchange theory, where subordinates will provide remuneration in the form of a positive contribution because superiors give positive attention or vice versa. social exchange theory is one of the main theories for interpreting social exchange relations between parties in the regulation of human interaction. in particular, this theory is frequently discussed in the literature to explain social exchanges between superiors and subordinates. cropanzano and mitchell (2005) describe that social exchange occurs when employers treat their employees and the employees have responded with the attitude and positive work behaviors. in other words, if one party feels that the other is fulfilling a social obligation, then the exchange process continues; however, if the party views it negatively, then social exchange does not continue, and as a result, negative outcomes are likely. based on the social exchange theory, this study investigates the social interactions of frontline employees and their supervisors. abusive supervisor (x1) and trust -insupervisor (y) mayer et al. (1995) define trust as the willingness of a party to be vulnerable to the actions of others, based on the expectation that the other party will take certain important actions, regardless of the ability to monitor or control the other party. to be more specific, trust in supervisors in frontline employees refers to the willingness of front-line employees to rely on the actions, promises, words, or intentions of their immediate supervisors. confidence in superiors ( trust in the supervisor ) is a trust in the integrity, fairness, and reliability of a person against a supervisor (dizgah, farahbod & khoeni, 2011). as the holders of power in the organization, leaders have a great influence on both the staff and the organization. researchers have paid attention to many positive things about leadership such as transformational leadership, charismatic leadership, and concern for increasing leadership effectiveness (mitcel and ambrose, 2007) such as trust in superiors which will impact commitment and performance. however, both the leader and the leadership have their dark side. therefore, studying the "dark" side of leaders contributed to amendments to the theoretical leadership system. increased productivity work environment, the sustainability of the employment relationship, and build trust play a very important role. therefore, it is important to explore the factors that increase or decrease the perception of trust-in-supervisors. one factor that has not been explored that may affect the subordinate is the abusive supervisor. abusive e supervisor refers to the perception of subordinates on the extent to which their supervisors are involved in display behavior hostile, verbal and non-verbal sustainability exclude physical contact (tepper, 2000). researchers have made a list of examples of abusive supervisors, such as intimidation by threat of firing, aggressive eye contact, silence, and embarrass or ridicule someone in front of others. studies of the results of abusive supervisors on the attitudes and behavioral outcomes of employees in the workplace have been conducted. for example, researchers have shown that abusive supervisors significantly improve employee morale release of employee stress and intention to move, avoidance interaction, and dehumanization of the organization. the researcher proposes a hypothesis: h1 abusive supervisors ber influence negatively trust-insupervisor supervisor support (x2) and trust-in-supervisor (y) supervisor support in the workplace is defined as the belief offered by the supervisor (susskind, 2007) as related to the work to help the performance of their jobs. in other words, supervisor support is the general perception of employees that their supervisors acknowledge their contribution and pay significant attention to their well-being. supervisor support reduces feelings of misery and increases the safety of an employee mindset, which is an important component of confidence. more specifically, according to social exchange theory, a positive social exchange between superiors and subordinates fosters a reciprocal norm (gouldner, 1960). in other words, supervisory support can increase the interpersonal trust frontline employees feel in their supervisors. based on the findings from the studies mentioned above, for this study, we conclude that supervisor support can help to increase the confidence of frontline employees. this is because, frontline employees generally perform a challenging task and many, therefore, help supervisors in learning and successfully handle the responsibility is an important indicator, support oversight tends to increase confidence in their superiors. therefore, the second hypothesis is : h2 supervisor support ber influence positively on the trust-in-supervisor. communication quality (x3) and trust-insupervisor (y) communication quality refers to the sharing of information that is timely and accurate, both formal and informal (morgan, et al., 1994). ouedraogo and ouakouak (2018) have studied the effects of communication as the natural process of change management. their study revealed that good supervisor communication leads to an effective commitment from employees. conversely, several studies have also emphasized that failure in proper communication leads to decreased trust and more uncertainty. thus, in the context of a service setting, supervisors, co-workers, and frontline employees work together to deliver high-quality customer service. according to social exchange theory, positive social exchanges between superiors and subordinates foster reciprocal norms (gouldner, 1960). in other words, the quality of communication from supervisors can increase the interpersonal perception of frontline employees' trust. therefore, the researchers found the quality of communication in the workplace will improve the perception of trust-in-supervisor of frontline employees because of a piece of sharing information in a timely and accurate increase their trust in the supervisor/supervisor. therefore, the third hypothesis in this study is: h3. the quality of the air communication positive impact on the trust-in-supervisor relationship quality (z) as moderator if supervision is cruel frequent or prolonged, it always causes employees antipathy and then affects mistrust of subordinates (xiaqi, 2012). relating to the relationship factor with the leader/group. tosi et al. (1990) said that the relationship between a leader and his subordinates will vary, and the variation in this relationship will be reflected in the quality of the relationship between superiors and subordinates. therefore, the quality of the superior-subordinate relationship affects the formation of an employee's commitment to the company. the quality of the relationship between a superior and a subordinate is a level that shows the extent to which the closeness of the work and social relationship that is established between a superior and a subordinate in a dyad, as a result of the process of forming a role carried out by a subordinate. furthermore, landy (1989) states that if the superiorsubordinate relationship occurs it is of high quality. then a boss will often discuss with his subordinates personal and work problems, and the boss will be very interested in the fun difficulties faced by subordinates. this indicates a personal and social bond between superiors and subordinates. personal attachment and social happens this will prevent subordinates from the race isolation in the company. this research proposes a hypothesis h4. the quality of the relationship me moderating influence of abusive supervisor to t rust-in-supervisor h5. the quality of the relationship moderates the influence of supervisor support on t rust-insupervisor based on the above hypothesis, the thinking framework for this study is: figure 1. research framework variable measurement items were taken and adapted from previous research in the literature. respondents use a five-point scale where 1 means "strongly disagree" and 5 "strongly agree" to respond to the questionnaire abusive abusive superviso r supervisor support trust in supervisor kualitas hubungan kualitas komunikasi supervisor, supervisor support, the quality of communication, and the quality of relationships. abusive supervisor refers to the perception of subordinates on the extent to which supervisors (supervisors) involved in displaying hostile behavior, verbal and non-verbal sustainability does not include physical contact (tepper, 2002) was measured with five items. supervisor support or employee support in the workplace is defined as the individual beliefs offered by supervisors ( susskind, 2007) related to work to help their job performance. this variable is measured by 3 items. communication quality refers to the timely and accurate sharing of information both formal and informal (morgan, et al. 1994). this variable is measured by 2 items. trust in a supervisor is a belief in the integrity, fairness, and reliability of a person towards superiors (dizgah, farahbod, and khoeni, 2011). this variable was measured by an indicator according to heider et al. (2015 ) measured at 4 items. landy (1989) states the quality of the relationship as a level that shows the extent to which the closeness of the work and social relationship that is established between a superior and a subordinate in a dyad, as a result of the role formation process carried out by a subordinate. the quality of the relationship is measured by 2 items research methods referring to the problem formulation that has been set in the previous chapter, this study uses quantitative methods to test and prove the hypotheses that have been made through various tests and data processing. this is mentioned by schiffman and kanuk (2000: 19), quantitative research methods are related to methods for collecting data, sample design, and construction of data collection instruments. malhotra (2006: 161) reveals that the quantitative approach is a research methodology that seeks to quantify data and usually applies certain statistical analyzes. based on the dominant type of data processed in the form of numbers, this research is a quantitative research category (sekaran, 2007). the tool used in this study is a questionnaire distributed to a sample of a predetermined population population according to sekaran (2011) population is an entire group of people, events, or things that researchers want to investigate. the area of generalization consisting of subjects who have certain qualities and characteristics determined by the researcher to study and then draw the conclusion is also called the population (anshori and iswati, 2009: 92). the target population is addressed clearly concerning the sampling unit, element, extent or scope, and time. the population used in this study is front-line employees in kebumen, central java, indonesia. sample the sample is part of the population consisting of several members selected from the population (sekaran, 2006: 123). the sample in this study was determined by the non-probability sampling method, which is a sampling technique that does not provide equal opportunities or opportunities for each member of the population to become a sample, by using the purposive sampling technique. the process of distributing research questionnaires was carried out through field surveys. the number of samples in this study is the first 100 samples. in this study, the sample is front-line employees who have worked at least 1 year to experience perceptions of leadership. testing the research hypothesis was carried out by using the structural equation model (sem) approach based on partial least square (pls). structural equation model (sem) is a field of statistical studies that can test a series of relationships that are relatively difficult to measure simultaneously. according to santoso (2014), sem is a multivariate analysis technique which is a combination of factor analysis and regression analysis (correlation), which aims to examine the relationship between variables in a model, be it between indicators and constructs, or relationships between constructs. validity and reliability this study uses a questionnaire in collecting research data. to determine the level of validity and reliability of the questionnaire, the researcher used the smartpls 3 .0 program. the validity testing procedure is convergent validity by correlating the item score with the construct score which then produces the loading factor value. the rated loading factor is said to be high if the component or indicator correlates more than 0.7 0 the construct to be measured. however, for research in the early stages of development, a loading factor of 0.5 to 0.6 is considered sufficient (ghozali, 2008). reliability states the extent to which the results of measurements can be trusted or reliable and provide relatively consistent measurement results after several measurements are made. to measure the reliability level of the research variables, the coefficient alpha or cronbachs alpha and composite reliability were used. measurement items are said to be reliable if they have an alpha coefficient value greater than 0.6 (malhotra, 1996). inner model the purpose of the structural model test is to see the correlation between the measured constructs which is the t-test of the partial least square itself. the structural or inner model can be measured by looking at the r-square model value which shows how much influence between variables in the model. then the next step is to estimate the path coefficient which is the estimated value for the path relationship in the structural model obtained by the bootstrapping procedure with a value that is considered significant if the statistical t value is greater than 1.96 (significance level 5%) this research included descriptive research. the study aims to determine the effect of abusive supervisors, supportive supervisors, and the communication quality of the trust in supervisor with the quality of the relationship as a moderating. the dependent variable used in this study is trust in the supervisor, while the independent variable is abusive supervisor, supportive supervisor, and communication quality, while relationship quality is the moderator. results and discussion respondent characteristics the results of the analysis of the characteristics of the respondents are shown in table 1: table 1 descriptive total percentage gender male 34 0.34 female 66 0.66 age (years) 17-25 37 0.37 26-35 36 0.36 36-40 19 0.19 > 41 8 0.08 education high school 78 0.78 associate degree 15 0.15 bachelor 7 0.07 length of working 1-3 53 0.53 (years) 4-6 37 0.37 > 6 10 0.10 source: primary data processed, 2021 based on table 1 the respondents can be divided into two categories: male and female. of the 100 respondents who obtained, the composition of the respondents by sex is 66 respondents or 66% gender to female, and the remaining 34 or 34% were males. table 1 shows the highest number of respondents in the range 17-25 years (37%), and at least> 41 years as many as 8 people (8%). based on the education of the respondents, 78% are high school graduates, 15 respondents (15%) are associate degree graduates, and 7 respondents (7%) are bachelor degree. based on the data of respondents in this study, 53 respondents (53%) with 1-3 years length of work, 37 respondents (37%) with 4-6 years length of work, and 10 respondents (10%) with > 6 years length of work. outer model testing (measurement model) this research model will be analyzed using the partial least square (pls) method and assisted by the smartpls 3.0 software. pls is an alternative method of structural equation modeling (sem) that can be done to solve problems in the relationship between variables which are very complex but the sample size is small (30100 samples) and has non-parametric assumptions, meaning that the data does not refer to either certain distribution (yamin and kurniawan, 2009). convergent validity convergent validity is done by looking at the item reliability which is indicated by the loading factor value. a loading factor is a number that shows the correlation between the score of a question item with the score of the indicator construct that measures the construct. the loading factor value is greater than 0.7 which is said to be valid. however, according to hair et al. (2010) for the initial examination of the loading factor matrix is approximately 0.3 considered to have met the minimum level, and for a loading factor of approximately 0.4 is considered better, and for a loading factor greater than 0.5 is generally considered significant. in this study, the loading factor limit used was 0.7. the results of the loading factor can be shown as in table 2 : table 2 load ing factor value variable loading factor x1.1 0.783 x1.2 0.936 x1.3 0.820 x1.4 0.773 x2.1 0.780 x2.2 0.851 x3.1 0.958 x3.2 0.946 x3.3 0.926 y1.1 0.880 y1.2 0.926 y1.3 0.908 z1.1 0.935 z1.2 0.999 source: primary data processed, 2021 from the results of data processing with smartp ls shown in table 2, that the majority of the indicators on each variable in this study have a loading factor value greater than 0.70 and are said to be valid (ghozali, 2008). discriminant validity the next evaluation is to see and compare discriminant validity and the square root of average variance extracted (ave). the measurement model is assessed based on the measurement of cross-loading with the construct. if the correlation between the constructs with each indicator is greater than the size of the other constructs, then the latent construct predicts the indicator better than the other constructs. according to ghozali (2008), if the value is higher than the correlation value between the constructs, good discriminant validity is achieved (if ave> 0.5). the following are the measurement results with ave for each indicato table 3 ave variable ave x1 0.583 x2 0890 x3 0.592 y 0813 z 0.710 source: primary data processed, 2021 from the measurement results in table 4 above, it can be seen that five variables meet the criteria composite reliability to determine composite reliability, if the composite reliability value is > 0.8, it can be said that the construct has high or reliable reliability and> 0.6 is said to be quite reliable (ghozali, 2008). the results of the reliability test in this study are: table 5 composite reliability variable composite reliability x1 0.873 x2 0.961 x3 0812 y 0.946 z 0.873 source: primary data processed in 2021 the smartpls output results in table 4, it shows that the composite reliability value for all constructs is above a value of 0.70. with the resulting value, all constructs have good reliability following the required value limits. inner model testing the goodness of fit model is measured using the r-square of the dependent latent variable with the same interpretation as the regression. r-square predictive relevance for structural models measures how well the observed value is generated by the model and also its parameter estimates. the value of r-square> 0 indicates the inner model measurement model with pls is as follows: table 5 r square r square adjusted r square y 0.4 0. 2 2 source: primary data processed, 2021 results of the study showed variability in the variables x1, x2, and x3 is 40% while the remaining 6 0% explained by other variables. the adjusted r square value has a value with an interval between 0 and 1. if the adjusted r square value is getting closer to 1, it shows that the independent variable (x) explains the variation of the dependent variable (y) is getting better. in the present study, can not you the value of adjusted r square 0.22 or 22 %. so it can be concluded that the 22 % variation that occurs in variable y can be explained by the independent variable, while the rest can be explained by other variables. hypothesis test hypothesis testing is carried out based on the results of the inner model which includes the r-square output, parameter coefficient, and t-statistic. to see whether a hypothesis can be accepted or rejected, among others, by paying attention to the significance value between the constructs, t-statistics, and p-values. this research hypothesis testing was carried out with the help of smartpls (partial least square) 3.0 software. the rules of thumb used in this study are tstatistic> 1.96 with a significance level of p-value 0.05 (5%) and the beta coefficient is positive. the value of testing the hypothesis of this study can be shown in table 5 and the results of this research model can be described as shown in figure 2 : in testing the hypothesis, the value analyzed is the value that is in the t-statistic generated from the pls output by comparing it with the t-table value. the pls output is an estimation of the latent variable which is the aggregate linear of the indicator. hypothesis testing based on the statistical results, the hypothesis test can be explained in the following table: table 6 hypothesis test origi nal sam ple (o) sam ple mea n (m) standar d deviatio n (stat dev) t statistic (o / statd ev) pval ue x1 → y 0.58 3 0.56 8 0.192 3,033 0.0 33 x2 → y 0.89 0 0.84 0 0.137 6.502 0.0 00 x3 → y1 0.59 2 0.52 6 0.116 5.088 0.0 00 modera ting effect 1 x1 → z 0.01 8 0.12 2 0.172 1.281 0.2 01 modera ting effect 2 x2 → z 0.22 0 0.85 5 0.038 5.825 0.0 00 source: primary data processed, 2021 the first hypothesis which tests the negative effect of abusive supervisors on trust in supervisors in table 6 showed that the original sample value is 0.583 and the t statistic is 3.033 with a p-value of 0.0 33, so hypothesis 1 is accepted. figure 2 shows the regression coefficient of -0323 indicates this effect is negative (h1 accepted) hypotheses 2 that tested the effect of positive supervisors' support to trust in supervisors in table 6 showed the value of the original sample was 0. 890 and statistical t 6.502 with p-value 0.000 then hypothesis 2 is accepted. figure 2 showed the regression coefficient of 0. 1 indicates this effect was positive (h2 accepted) the third hypothesis showed the positive influence ofcommunication quality of subordinates' superiors on trust in supervisors. table 5 showed that the original sample value is 0. 592 and t statistic 5. 0 88 with a p-value of 0.0 00, then hypothesis 3 is accepted. figure 2 showed the regression coefficient of 0. 158, it indicates that this effect was positive (h3 accepted). based on statistical calculations, it can be concluded that a quality relationship is not moderating abusive supervisor to trust in the supervisor. it can be seen that the t-statistic is 1.281 which is less than the ttable 1.96 (h4 is rejected) based on statistical calculations, it can be concluded that relationship quality moderating supportive supervisors to trust in the supervisor it can be seen that the t-statistic is 5,825 greater than the ttable 1.96 (h5 accepted). conclusion front employees as an important resource of the company play an important role in business operations. therefore, researchers and practitioners place great importance on the determinants of front-line employees' ongoing relationships with their superiors. in this case, taking the social exchange theory, this study was conducted to test the trust-insupervisor antecedents within one framework. following social exchange theory, the research findings reveal that hypothesis 1 is that abusive supervision is significantly proven to reduce trust in frontline employee supervisors. this finding is in line with previous research, which showed that abusive supervision led to negative outcomes such as low job satisfaction, low affective commitment, low organizational identification, employee stress, and intention to leave and enter. the results of this study support the research of ji & jan (2020) that abusive supervisors harm trust in supervisors. so if the supervisor performs abusive behavior, the subordinates' trust in their superiors will decrease. hypothesis 2 showed that supervisor support has a positive effect on trust in supervisors. this supports the research of ji & jan (2020) that supervisor support has a positive effect on trust in supervisors. so if supervisors show supportive behavior, then the subordinates' trust in their superiors will increase. consistent with previous studies, the study also shows that the communication quality has a positive effect on trust in supervisor in hypothesis 3. this research supports previous studies that do ji and jan (2020) that the communication quality has a positive effect on trust in the supervisor. based on statistical calculations, it can be concluded that a quality relationship is not moderating abusive supervisor to trust in the supervisor. the results of this study support tepper (2000) that good relationship quality can strengthen supportive behavior towards trust in supervisors. the results showed support for the social exchange theory which states that subordinates will provide remuneration in the form of a positive contribution because the boss gives positive attention or vice versa. but, this study does not prove the moderating effect of relationship quality on the abusive effect of supervisors on trust in supervisors in the context of frontline employees. managers must educate supervisors about the negative outcomes of abusive supervisors. the findings of this study reveal that poor supervision in the workplace can exacerbate perceptions of trust-insupervisors, which in turn affects the likelihood of collaboration between frontline employees and supervisors. hence, in this regard, there is a need to formulate an organizational policy based on an organization-wide zero tolerance of abusive behavior, leading to a sustainable working relationship. also, managers are advised to improve the selection and recruitment process for supervisors to reduce abuse of supervision in the workplace. managers must educate and train supervisors to be more supportive of front-line employees. to increase supervisory support in the workplace, supervisors need to be encouraged to provide recognition and appreciation to front line employees, providing support in the form of assistance in carrying out tasks, and providing useful feedback. supportive supervision will increase the level of trust of front-line employees in their superiors, which will trigger their cooperative behavior. the research findings reveal that the supervisor's communication quality and the quality of relationships that leads to trust-in-supervisors. managers should place more emphasis on the communication skills of the applicant during the hiring process. besides, managers must offer extensive training and on-the-job development workshops. references amir, t. s., & malik, a. a. 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(2nd edition). new york: harper collins publisher yamin sofyan, kurniawan heri. 2009. spss complete: tekhnik analisis statistik terlengkap dengan software spss. jakarta: salemba infotek https://www.researchgate.net/journal/pastoral-psychology-1573-6679 https://www.researchgate.net/journal/chinese-management-studies-1750-614x https://www.researchgate.net/journal/chinese-management-studies-1750-614x correspondence to: a.banani@yahoo.com received: 18 february, 2021 accepted: 10 june, 2021 published: 30 june, 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 2 pp. 8 19 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction industry sector one of the sectors playing an important role in improving national economy. the growth of indonesian economy was supported by the contribution of manufacture industry sector accounted for 20 percent. based on the data of bps (central bureau of statistics) during year 2017, manufacture sector contributed rp2.739,4 trillion or 20.1 percent to gross domestic product. it decreased slightly compared to the previous year, 2016, contributing about 20.5 percent to indonesian gross domestic products. in addition, referring to data provided by indonesian ministry of industry {kemenperin) manufacture industry contribution during year 2015 reached rp2.097,71 trillion or 18.1 percent to national gdp. this number increased from year 2014 because manufacture sector contributed 17.8 percent or rp1.884 trillion and giving the highest contributor to gdp among agriculture sector (13.4 percent to gdp), and trade (13 percent to gdp). therefore, manufacture sector became more interesting to be studied because it continued constantly being able to enhance indonesian economy growth. companies are able to play a crucial role in enhancing national economy growth by achieving the goal of companies well. maximizing the value of them is acknowledged as the goal of company especially for the profit orientation companies. (weston and copeland, 1997), brigham (1991: 14) also stated that the main objective of business company is to maximize the stockholder’s welfare by maximizing stock price. therefore, in making decision, its management should only act what it is expected to increase the stock price (gitman, 2012: 9). the qualification of good company was reflected by the high of stock price (indasari and yadnyana, 2018), because investors tend to look only at the movement of stock price obtained from companies stock prices traded at stock exchange. the effect of leverage, liquidity, profitability, firm’s growth, firm’s size, and dividend policy toward firm value (study at manufacture companies listed on indonesia stock exchange period 2014-2017) ade banani1, rachmawati dewi2, sulistyandari3 1,2 management department, faculty of economics and business, universitas jenderal soedirman, indonesia abstract this study aims to analyze the leverage (der), liquidity (cr), profitability (roe), firm growth (sales growth), firm size (ln total asset), and dividend policy (dpr) on firm value (pbv) at manufacturing company listed on the indonesia stock exchange for the period of 2014 – 2017. the population in this study were 177 companies. the sample used in this study were 10 companies. sample were taken by purposive sampling method. data in this study were analyzed with multiple linear regression. the result showed that leverage (der) has negative and significant on firm value (pbv), liquidity has no effect on firm value (pbv, profitability (roe) has positive and significant effect on firm value (pbv), firm growth (sales growth) has positive and significant effect on firm value (pbv), firm size (ln of total asset) has positive and significant effect on firm value (pbv), and dividend policy (dpr) has no effect on firm value (pbv). keywords debt to equity ratio (der), current ratio (cr), return on equity (roe), dividend payout ratio (dpr), and price to book value (pbv) jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 8 19 the figure 1 showed the value of closing price of stocks year 2015 decreased 17.01 percent. meanwhile, two years later the price of stocks increased significantly. stock price became a benchmarking for investors to invest their capital by buying stocks classified as manufacture sector. firm value can affect investors’ perception. the value of the firm is the firm performance shown by stock prices formed by supplies and demands in stock market reflecting investors’ perception of firm’s performance (harmono, 2011: 233). (emery r. and finnerty, 1997) there are factors being able to affect the performance of firm such as leverage, liquidity, profitability, company, companies’ size and dividend policy. the researches covering leverage and firm value were done by et al. (2016). they found that the leverage negatively and significantly affected to the value of the firm. then, the research result done by nuraeni et al. (2016), sadi’ah (2018), and rahmantio et al. (2018) showed that leverage did not influence significantly toward value of the firm. different from the research done by rudangga and sudiarta (2016) stating that leverage affected positively and significantly toward the value of the firm. the next factor that is able to influence firm value is liquidity. the liquidity is a ratio showing the correlation between cash and other current assets and current liability. according to marsha and murtaqi research (2017), liquidity measured by using quick ratio (qr) negatively and significantly affected firm value. meanwhile, by using current ratio (cr) as proxy, liquidity affected positively and significantly on firm value that was in line with the result of the research done by gunawan, et al. (2018). different from the result of research conducted by indasari and yadnyana (2018) showing that liquidity did not influence significantly on value of the firm. then, variable that can influence the value of the firm is profitability. it is a ratio used to know the firm’s ability in gaining profit during given period through source owned by company. the researches related to profitability and firm value are researches conducted by marungu (2014), nuraeni et al. (2016), rudangga and sudiarta (2016), hasibuan et al. (2016), marsha dan murtaqi (2017), dhani and utama (2017), sadi’ah (2018), gunawan et al. (2018), rahmantio et al. (2018), indasari and yadnyana (2018) mentioning that profitability influenced positivelly and significantly on value of the firm. however, the result of research done by rahmantio et al. (2018) using roa as well to measure profitability stated that profitability did not influence firm value significantly. figure 1. closing stock price index manufacture industries year 2014-2017 source: www.idx.co.id (data processed) jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 8 19 the firm value is affected also by the growth of company. according to weston and copeland (1995: 243), the growth of firm reflects the ability of firm in enhancing expansion its operation seen from the growth of revenue. this research that relates to firm growth is a research conducted by dhani indasari and yadnyana (2018) stating that firm’s growth affected positively and significantly on firm value. on the other hand, researches done by marungu (2014), and dhani & utama (2017) stating that the growth of company did not influence value of the firm. investors tend to be interested in big scale of the firm. according to panggabean and prasetiono (2017), firm size affects stock exchange. the accessibility to the stock market is likely to be much easier. if the company is getting bigger it would be able to be easier in getting funds by going public. the company is able to issue its stocks through stocks exchange indicating the company is healthy or having good performance as a result, that research proved that firm size affects firm value positively and significantly. the same result was shown by research conducted by rudangga and sudiarta (2016). whereas nuraeni et al. (2016) and rahmantio et el., (2018) argued that firm size did not significantly affect firm value. the last variable affecting firm value is dividend policy. it correlates with company decision concerning whether the income earned by company would be paid to investors as dividends or would be put to the company as retained earnings that will be used for operation, paying debts or to do expansion. value of the firm can be seen as the ability of company in paying dividend (gunawan, 2018). the previous research conducted by gunawan et al. (2018), panggabean and prasetiono (2017), and sadi’ah (2018) showed that dividend policy influenced positively and significantly on firm value. however, research done by marungu (2014) stated that dividend policy did not affect significantly on firm value. based on the background explanation can be concluded that manufacture sector is important to be studied because it consistently increased being able to support indonesian economy. in addition, various researches related to firm value are still debatable. because firm value is crucial for lot of parties, the writers were interested in doing research entitled “the effect of leverage, liquidity, profitability, company growth, firm size, and dividend policy toward firm value (study on manufacture companies listed at indonesia stock exchange period 2014-2017). research hypothesis h1 : leverage affects negatively on firm value h2 : liquidity influences positively toward firm value h3 : profitability affects positively on firm value h4 : the growth of firm affects positively toward the value of the firm h5: firm size influences positively on firm value h6: dividend policy affects positively on firm value methods type of research this research is an associative causality research. it aims to know the correlation and causality of variables and the phenomena of dependent variable and independent variables (gujarati, 2005). population and research sample population in this research are manufacture companies listed at indonesian stock exchange. period year 2014 – 2017 which are 177 companies. this research used purposive sampling method. it took samples based on given consideration. samples in this research were based on some criteria as follows as: 1. manufacture companies listed at indonesia stock exchange during period year 2014 – 2017. 2. companies reporting financial statement during period year 2014 – 2017 completely and regularly. 3. companies having positive growth ratio during period year 2014-2017. 4. companies distributed dividend consecutively during period year 20142017. 5. financial reporting used rupiah currency (rp) during period year 2014 – 2017. type and source of data this research used secondary data. it refers to data collected by someone rather than the primary user. common sources of secondary data for social science include censuses, information collected by government departments, organizational records and jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 8 19 data originally collected for other research purposes (suliyanto, 2005). secondary data in this research were collected from financial reporting of manufacture companies provided by indonesia stock exchange (www.idx.co.id) year 2014-2017. data collection technique technique in collecting data in this research is literature study. it is done by collecting theories, concept obtained from various sources such as text book, articles/journals and other scientific writings supporting this study as the basic of this study. in addition, this research used documentation technique by collecting secondary data in the form of annual financial report published by indonesian stock exchange consecutively during 2014 – 2017 (www.idx.co.id). data analysis technique 1. descriptive statistics analysis descriptive statistics analysis was used to analyze data by describing or elaborating data that have been collected without making conclusion generally accepted (sugiyono, 2016: 147). 2. multiple regression analysis regression analysis involves study concerning correlation between one variable called as dependent variable and another one as independent variable (gujarati, 2007: 115). meanwhile, multiple linear regression consisting more than one independent variables used to explain the behavior of dependent variables. (gujarati, 2006: 125). regression model in this research can be explained in the equation as follows as: yi= b0 + b1x1i+ b2x2i+ b3x3i+ b4x4i + b5x5i + b6x6i + ui notes: y =firm value b0 = constant b1,b2,b3,b4,b5,b6 = parameter of each variable x1 = leverage x2 = liquidity x3 = profitability x4 = company growth x5 = firm size x6 = dividend policy 3. classical assumption test a. normality test normality test is used to determine if data set is well-modeled by normal distribution and to compute how likely it is for a random variable underlying the data set to be normally distributed. standardized residual value having normal distribution if described by bell-sharped curve that both sides spread till infinite. (suliyanto, 2011:69). in this research, normality test used kolmogorov-smirnov test which is normality test used cumulative distribution function. standardized residual value having normal distribution if k calculated < k table or value sig. > α (suliyanto, 2011: 75), (gujarati, 2005). b.multicollinearity test multicollinearity occurs when independent variables in regression model are correlated. this correlation is a problem because independent variables should be independent. if the degree of correlation between variables is high enough, it leads to problems when someone fit the model and interpret the result. (suliyanto, 2011:82), (gujarati, 2005). in this research, multicollinear used value tol (tolerance) and variance inflation factor (vif) from each independent variables and dependent variable. if the value of vif < 10, thus model is stated no multicollinearity occur (suliyanto, 2011:90), (gujarati, 2005). c.heteroscedastisity test heteroscedastisity happens when standard deviation of a predicted variable, monitored over different values of an independent variable or as related to prior time period, are not constant. in this research, heteroscedastisity test used glejser method by regressing all independent variables on the residual absolute value. if there is the significant effect of independent variable on its residual absolute value, it means there is heterroscedasticity problem. if the value of sig > α, thus, it can be concluded that the model did not have any heteroscedasticity problem or can be stated no heterocedasticity occur if t calculation < t table (suliyanto, 2011: 98), (gujarati, 2005). d.autocorrelation test autocorrelation refers to the degree of correlation of the same variables between two successive time intervals. it measures how the lagged version of the value of a variable is related to original version of it in a time series (suliyanto, 2011:126), (gujarati, 2005). in this research, autocorrelation used durbin watson method (uji d-w) aiming to test whether autocorrelation exist from jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 8 19 empirical model estimated (suliyanto, 2011:126), (gujarati, 2005). 4. determinant coefficient test coefficient of determination denoted r2 or r2 is the proportion of the variance in the dependent variable that is predictable from the independent variable (suliyanto, 2011:39), (gujarati, 2005). the higher of the value of coefficient of determination the higher independent variables explaining the change or variability of its dependent variable or one factor can be caused by its relationship to another factor. . 5. f count test the value of count is used to examine the fit of model or goodness of fit, whether equation model formed is classified as fit criteria or no. f test is well known as simultaneous test that is used to examine whether independent variable used in the model is able to explain the variability of dependent variable value or no. to infer whether model is categorized as fit or no, f test is needed to be compared to f degree of freedom: df: α,(k-1),(n-k). 6. t test the value of t test is used to examine whether independent variables significantly influence on dependent variable. a variable will affect another variable significantly if t count value of that variable is higher that t table. the criteria of hypothesis test are follow as a.ho accepted if the value – t table < t count < t table and value sig. > α = 0,05 b.ha accepted if – t table > – t count or t count > t table and value sig. < α = 0,05 result and discussions data analysis 1. descriptive statistics analysis descriptive statistics analysis is used to know the description of data of each variable in this research which are leverage (x1), liquidity (x2), profitability (x3), company growth (x4), firm size (x5), dividend policy (x6) and firm value (y). the result of descriptive statistics analysis of samples firms are follow as: table 1. the result of descriptive statistics analysis variables n min max mean std. dev leverage (x1) 40 0,080 2,360 0,685 0,561 liquidity (x2) 40 0,610 8,290 2,894 1,808 profitability (x3) 40 0,043 1,359 0,312 0,353 firm growth (x4) 40 0,007 0,258 0,089 0,060 size firm (x5) 40 11,591 13,963 13,115 0,670 dividend policy (x6) 40 0,148 1,435 0,541 0,301 firm value (y) 40 1,050 58,480 10,509 15,215 2.classical assumption test a.normality test to know whether data in this research are normally distributed or no, then, normality test is done by using kolmogorof-smirnov test. if the result kolmogorof-smirnov test shows significance value is bigger than α (0.05). it means distributed data is normal. however, if the value of kolmogorofsmirnov test shows significance test is smaller than α (0.05) meaning data are not normally distributed. the results of normality test are as follows as: table 2. the result of normality test using kolmogorov smirnov method based on table 2 can be known that the value asymp. sig. (2-tailed) for standardized variable is 0,943 bigger than α (0.05). this result shows that data used in this research are normal distributed. b.multicollinearilty test to know whether there is strong correlation among independent variables so multicollinearity test is needed. the result of multicollinearity test are follows as: no variable value kolmo gorov smirnov asymp. sig. description 1 standard ized residual 0,528 0,943 normal jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 8 19 table 3. multicollinearity test result table 3 shows that leverage (x1), liquidity (x2), profitability (x3), company growth (x4), size firm (x5) and dividend policy variables (x6) have the value tolerance > 0,10 and variance inflation factor (vif) < 10. therefore, it can be concluded that no multicollinearity occurs among independent variables in that regression model. c. heteroscedasticity test to know whether there is the difference of variance between residual variable in regression model in one observation and another observation, thus heteroscedasticity test is needed by using glejser test. the results of heteroscedastisity test are as follows as: tabel 4. summary of hetroscedasticity test result data on table 4 show that the value of significance t count of leverage (x1), likuidity (x2), profitability (x3), company growth (x4), size firm (x5) and dividend policy (x6) variables is bigger than the value of α (0,05) respectively. asa result, it can be concluded that no heterocedasticity in regression model. d. autocorrelation test to know whether there is strong correlation among data observed described according to time period of research, autocorrelation test is needed. in this research, autocorrelation test is done by using durbin watson method. the result of correlation test are follows as: table 5. summary of autocorrelation test result data on table 5 show that the value dw count is 1,911. this value is compared to the value of durbin watson table for n = 40 and independent variables = 6, thus, it can be determined that the value du = 1,854. in conclusion, the value of durbin watson count exists between the value du (1,854) and 4 – du (2,146). it means that no autocorrelation both positive and negative occur in regression model. table 6. summary of multiple linier regression analysis result no. independent variables coeficient regressiom tcount signifi cance 1 leverage (x1) -1,388 -3,778 0,001 2 liquidity(x2) 0,038 0,577 0,568 3 profitability (x3) 4,463 8,957 0,000 4 company growth (x4) 2,636 2,115 0,042 5 firm size (x5) 0,577 3,942 0,000 6 dividend policy (x6) 0,028 0,083 0,934 constant = -6,736 r square = 0,864 adj. r square = 0,839 fcount = 34,848 3. the result of multiple linier regression multiple linier regression analysis is used to know the effect of independent variable on dependent variable. this research studied the effect of leverage, liquidity, profitability, company growth, firm size, and dividend policy toward firm value. the result of multiple linear regression can be seen on table 6. based on output on table 6, it can be arranged the equation of multiple linear regression as follows as: y = -6,736 1,388x1 + 0,038x2 + 4,463x3 + 2,636x4 + 0,577x5 + 0,028x6 4. the result of coefficient determination the know the degree of the effect of independent variables in explaining the change variability dependent variable is used no independent variables tolerance value vif descrip tion 1 leverage (x1) 0,125 7,999 nm 2 liquidity (x2) 0,376 2,658 nm 3 profitability (x3) 0,172 5,825 nm 4 company growth (x4) 0,941 1,062 nm 5 firm size (x5) 0,551 1,814 nm 6 dividend policy (x6) 0,536 1,865 nm no independent variables sig. description 1 leverage (x1) 0,161 nh 2 liquidity (x2) 0,102 nh 3 profitability (x3) 0,474 nh 4 company growth (x4) 0,242 nh 5 size firm (x5) 0,932 nh 6 dividend policy (x6) 0,821 nh no dwcount value du value 4 du descripti on 1 1,911 1,854 2,146 na jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 8 19 the calculation of coefficient determination (r2) r square and adjusted r square. based on the summary of multiple linear regression result on table 6 can be found that coefficient determination or r square is 0.864 and coefficient adjusted r square is 0.839 meaning that about 83.90 percent variability change of manufacture firm value listed at indonesia stock exchange during period year 2014 – 2017 can be explained by leverage, liquidity, profitability, company growth, firm size, and dividend policy. meanwhile, the rest about16.10 percent can be explain by other variables being not studied in this research. 5. goodness of fit test to know goodness of fit of model in explaining causality relationship between independent variables and dependent variable, f test is needed. based on the summary of multiple linear regression result on table 6 can be seen that the value of f count 34.848 higher than the value f table with df = (k 1) and (n k) is 2.42. the result of f test showed that simultaneously leverage, liquidity, profitability, company growth, firm size, and dividend policy variables influenced significantly on manufacture firm value listed at indonesia stock exchange, or can be stated as well that a regression model formed is fit with research data obtained (goodness of fit). f test curve can be described on figure 1: 6. partial test (t statistics test) this test is used to know the significance of the effect of leverage, liquidity, profitability, company growth, firm size, and dividend policy variables on firm value partially. referring to the degree of deviation or bias (α) = 0.05 and degree of freedom (n – k), where n = 40 dan k = 7, thus, can be known the value to one tailed test was 1.692. based on the summary of multiple linear regression result on table 6 can be explained that the value of t count of leverage variable (x1) is -3.778, the value of t count of liquidity variable (x2) is 0.577, the value of t count of profitability variable (x3) is 8.957, the value of t count of company growth variable (x4) is 2.115, the value of t count of firm size variable (x5) is 3.942 and the value of t count of dividend policy variable (x6) is 0.083. referring to the first hypothesis statement in this research, thus one tailed curve test of the left side (negative) can be shown as follows as: figure 2. t test curve the first hypothesis (negative) then, referring to the second, third, fourth, fifth, and sixth hypotheses statement in this research, thus one tailed curve test of the right side (positive) can be shown on figure 3 as follows as: figure 3. hypotheses 2, 3, 4, 5, and 6 (positive) discussions 1. the effect of leverage on firm value the result of analysis shows that leverage affects negatively and significantly on firm value. based on the summary of multiple linear regression result on table 6 can be known the value of t count of leverage variable (3.778) < the value of -t table (-1.692) and 0 ftable = 2,42 fcount= 34.848 figure 1. f test curve figure 2. t test curve the first hypothesis (negative) jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 8 19 significancy 0.001 < α (0.05). that result shows an evidence that leverage partially affects negatively and significantly on manufacture firm value listed at indonesia stock exchange year 2014 -2017. as a result, the first hypothesis stating that leverage affects negatively on firm value is accepted. causal relationship between leverage and firm value in this research can be explained that the higher ratio between total liability (short term and long term liabilities and total equity will result in the higher its dependency level on other parties (creditors) that causes the decrease of company’s profit. in line with the signal theory the decrease of profit can indicate signal negative for investors because they tend to choose to invest their capital in companies getting profit continuously and increasingly. this condition results in investors are not interested in investing their capital or funds as a result, decreasing its firm value. 2. the effect of liquidity on firm value the result of analysis shows that liquidity does not affect firm value. based on the summary of multiple linear regression result on table 6 can be known that the value of t count of liquidity variable (-0. 577) < the value of -t table (-1,692) and significancy 0,568 > α (0,05). that result shows an evidence that liquidity partially affects positively but not significantly on manufacture firm value listed at indonesia stock exchange year 2014 2017. the higher of capability of the firm in covering short term liabilities is not always followed by increasing manufacture firm value listed in indonesia stock exchange year 2014 -2017. in addition, investors do not always focus on liquidity level of the firm as main factor in making investment decision. based on the signal theory, the high liquidity results in idle funds and the company has to take responsibility of its risk because of cost incurred. as a result, the second hypothesis stating that liquidity affects positively on firm value is not accepted. causal relationship between liquidity and firm value in this research can be explained that the higher ratio between total assets and total liabilities will result in the risk occurred because of idle current assets. it leads to the decrease of company’s profit. 3. the effect of profitability on firm value the result of analysis shows that profitability affect firm value significantly and positively. based on the summary of multiple linear regression result on table 6 can be known that the value of t count of profitability variable (8.957) < the value of -t table (-1.692) and significancy 0.000 < α (0.05). that result shows an evidence that profitability affects positively and significantly on manufacture firm value listed at indonesia stock exchange year 2014 -2017. the higher of capability of the firm in obtaining profit over equity, leads to the higher manufacturers firm value listed at indonesia stock exchange year 2014 2017. as a result, the third hypothesis stating that profitability affects positively on firm value is accepted. causal relationship between profitability and firm value in this research can be explained that the company having higher profit tends to attract investors to invest their capital at that company. in conclusion, the profitability of company leads to firm value. 4. the effect of company growth on firm value the result of analysis shows that company growth affects firm value significantly and positively. based on the summary of multiple linear regression result on table 6 can be known that the value of t count of company growth variable (2.115) > the value of -t table (-1.692) and significancy 0.042 < α (0.05). that result shows an evidence that company growth variable affects positively and significantly on manufacture firm value listed at indonesia stock exchange year 2014 -2017. the higher of capability of the firm in selling its products results in investors are willing to invest their capital in a company that leads to the higher manufacturers firm value listed at indonesia stock exchange year 2014 -2017. investors believe that company having higher sales indicates that a company tend to be able to have better performance in the future. as a result, the forth hypothesis stating that company growth affects positively on firm value is accepted. 5. the effect of firm size on firm value the result of analysis shows that firm size affects firm value significantly and positively. based on the summary of multiple linear regression result on table 6 can be known that the value of t count of firm size variable (3.942) > the value of -t table (-1,692) and significancy 0.000 < α (0.05). that result shows an evidence that firm size variable affects positively and significantly on manufacture firm value listed at indonesia stock exchange year 2014 -2017. the higher of the amount of total assets owned by the firm in operating the firm leads to investors jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 8 19 are willing to invest their capital in a company that leads to the higher manufacturers firm value listed at indonesia stock exchange year 2014 -2017. investors believe that company having bigger assets indicates that a company tend to be easier to be able to obtain funds from other parties and accessibility in listing at stocks exchange and issuing its stocks to get fresh funds are easier. thus, investors believe that the higher assets owned by companies tend to have better performance in the future. as a result, it leads to increase firm value. as a result, the fifth hypothesis stating that firm value affects positively on firm value is accepted. 6. the effect of dividend policy on firm value the result of analysis shows that dividend policy affects firm value significantly and positively. based on the summary of multiple linear regression result on table 6 can be known that the value of t count of dividend policy variable (0.083) < the value of -t table (1.692) and significancy 0.934 < α (0.05). that result shows an evidence that company growth variable affects positively but not significantly on manufacture firm value listed at indonesia stock exchange year 2014 -2017. the higher of capability of the firm in distributing its profit to its stockholders as dividends does not take for granted increasing the value of the firm. investors believe that company having higher sales indicates that a company tend to be able to have better performance in the future. as a result, the sixth hypothesis stating that dividend policy affects positively on firm value is not accepted. conclusions 1. leverage represented by debt to equity ratio affected negatively and significantly on firm value. it resulted in the first hypothesis was accepted 2. liquidity represented by current ratio did not influence on firm value. as a result, the second hypothesis was not accepted. 3. profitability represented by return on equity positively and significantly affected on firm value. therefore, the third hypothesis was accepted. 4. company growth represented by sales growth positively and significantly influenced firm value. therefore, the fourth hypothesis was accepted 5. firm size represented natural logarithm of total assets positively and significantly affected on firm value. therefore, the fifth hypothesis was accepted. dividend policy represented by dividend payout ratio did not affect firm value. therefore, sixth hypothesis was not accepted suggestions based on the conclusion, there are some suggestion should be given to the main stakeholders: 1. companies based on findings that profitability does affect value of the firm, every company should pay attention to sales. because in the current condition the competition is very tough marketing strategy plays important role especially promotion. in addition, the company especially manager should pay attention to cost especially cost of goods sold because even the sales increase drastically if cost of goods sold increase drastically as well, the company will not get higher profit. the manager must monitor in managing cost of goods sold to avoid ineffectiveness related to cost incurred. as a result the company will be able to get profit well. 2. investors in investing their capital, investors not only focus on profitability but also pay attention to other factors such as liquidity and leverage. lot of companies focus too much on profitability but ignore liquidity and leverage. thus, huge companies find difficulties in running their operation because they must deal with their responsibility or liabilities in short time. then, some must be responsible to the divide their profit that supposed to be distributed to investors but profits must be given to creditors. thus, investors before making decision to invest their capital should 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(1997). manajemen keuangan (edisi 9 jilid 2). jakarta: binarupa aksara correspondence to : ade.anggraeni@unsoed.ac.id received: 22 march 2021 accepted: 28 march, 2021 published: 30 march, 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 1, pp. 42 52 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction tourism is an activity carried out by most people to spend free time or for vacation. cultural ruins, historical museums, and natural conditions indonesia is a beautiful tourism destination. indonesia's natural conditions are one of the most attractive tourism destinations for both local and foreign tourists. indonesia has stunning natural beauty such as mountains, beaches, lakes, islands, caves, and cliffs. this attracts tourists who want to go on an adventure by visiting these places. adventure tourism results from tourists who want to do tourism activities that are more challenging both physically and mentally. adventure tourism is characterized by tourist characteristics that provide high sensory stimulation for tourists, and it is usually characterized by a physically and mentally challenging experience component (muller & cleaver, 2000). of the many adventure tourism activities available in indonesia, mountaineering is one of the favourites for tourists. even now, mountain climbing in indonesia seems to be a new trend, so many tourists want to experience this. mountain climbing activities are prevalent because the natural beauty can make us relax. on the other hand, mountain climbing is a very crucial thing. mountain climbing is one of the risky adventure tourism activities. hillson (2005) claims that the word risk comes from italian, which means to be brave. when discussing contexts where risk is significant, people may mention situations that pose a physical hazard, such as mountain climbing or skydiving. others may say gambling, online poker, or the stock market as high-risk activities ( lipscombe, 2007). climbing a mountain is a safe activity if mountain climbers pay attention and follow the mountain manager's rules. in addition, mountain climbers must also pay attention to the standard of equipment needed to climb the mountain. therefore, prospective climbers who will climb can experience or at least know about risks and ways to overcome threats. the central premise about risk is how they have sufficient knowledge. when a tourist buys a flight ticket or books accommodation, it poses a threat. they buy intangible services and tourist experiences obtained after making pull and push factors in adventure tourism mukhamad arfian setyonugroho1, ade irma anggraeni2 1,2 management department, faculty of economics and business, universitas jenderal soedirman, indonesia abstract indonesia is a country that has many volcanoes that are well-known among local and foreign tourists. this causes the mountain climbing basecamp to pay more attention to their preparations in meeting the needs of tourists who come. basecamp parties need to consider factors that can add value to the effectiveness and efficiency of mountain climbers who will carry out adventure activities on the mountain. motivation, preparation, knowledge, and experience are the pull factors needed to influence the participation of mountain climbers to decide to climb the hill. in addition to considering the pull factors, the involvement of mountain climbers is also influenced by standard operational procedures, quality, security and cooperation with mountaineering basecamps with the other party is the driving factor. at the same time, the driving factor is self-motivation to carry out adventure tourism activities. lifestyle, character, hobbies, or experience become a motivation to carry out this adventure tourism activity. for both beginner and experienced mountaineers, knowledge of mountaineering is essential to minimize risk and strengthen the determination to climb. meanwhile, until now, research on push factors and pull factors is still very minimal. the research that will be carried out includes climbing mount slamet via bambangan, which is the highest mountain in central java. keywords motivation, motives, natural environment, mountaineering opprotunities, push-pull factor, tourism jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 42 52 payment (boksberger and craig-smith 2006). tourism also carries different risks due to its intangible nature and experience (sirakaya and woodside 2005). cohen (2009), writing about deaths on holiday, argues that death during holidays becomes a challenge for those closest to him because it occurs in a foreign physical, cultural, and social environment. in other words, in a place where they lack the knowledge they have. this is because a combination of expertise and risk produces information about the locations they will visit (cohen 1972). even though it is full of dangers and challenges, few are still curious to keep climbing the mountain. therefore, the basecamp must consider risk management to prevent and overcome the risks that mountain climbers face. risk management in mountaineering adventure tourism service providers focuses on effectiveness and efficiency, especially if it is seen from the characteristics of the business processes that are carried out and the limitations they have. according to dann (1997), tourists have many factors that motivate them to go to the places they want to visit; these factors can be separated as a push or pull motivation. in this case, push factors and pull factors are meant. (dann, 1977), push factors are sociopsychological characteristics of tourists. personality characteristics, lifestyle elements, and personal perception of adventure are categorized as push factors. while pull factors are elements that represent satisfaction in the destination they are going to. internally generated motives such as escapism, social recognition, socialization, self-esteem and novelty. which of these are the needs needed in the destination is a category of push factors. indonesia is a country that has its natural tourism attraction. this is because of the unique nature of indonesia, which is still beautiful and honest, and the lack of accommodation and facilities is a challenging attraction for tourists. the tourism sector also plays a significant role in increasing the country's foreign exchange. it is proven from year to year, income from the tourism sector continues to grow. berasarkan data from the ministry of tourism, foreign exchange earnings increased from 2009 to 2019. the foreign exchange income in 2015 alone reached the figure of us $ 12.2 billion. this number continues to increase along with the increasing quality and access to tourist destinations and the increase in the information provided. due to natural conditions, nature tourism in indonesia is quite challenging for tourists who want to test their adrenaline and also add to the experience of an adventurous impression. therefore, the tourism manager needs to pay attention to the aspects required by tourists. improving the quality of infrastructure and increasing tourist information is very important to be carried out by the manager. with the quality of infrastructure and good news, it will undoubtedly add to the tourist attraction. this will significantly help tourists and is also needed by tourists who want to visit these tourist destinations. in addition, the safety aspect of tourists must be improved to minimize risks. mountaineering is one type of adventure tourism that is quite popular among local and foreign tourists. tropical rain forests are a distinctive feature of the mountains in indonesia. the lush forest becomes an attraction for challenging adventures. the uniqueness and beauty of the mountains in indonesia is a pull factor for mountaineers. pull factors are factors that make mountaineers interested in doing adventure tourism activities. the management of mountaineering basecamps has a significant influence on the pull factor. access to climbing basecamps, information on trails, and safety factors are the pull factors for adventure tourism activities. in addition to most mountaineers, beginners would prefer to climb that has an easy track but still does not eliminate the mountain's natural shades and natural beauty, such as gunung prau and bukit sikunir, the area of wonosobo, central java, indonesia. gunung prau and bukit sikunir have a unique attraction for mountaineers beginners. the track is relatively easy to estimate the time that does not require a long time but still has the feel and beautiful natural scenerymeanwhile, we know that indonesia is one of the destinations for adventure tourism in great demand by local and foreign tourists. the management of mountaineering in indonesia is undoubtedly still lagging when compared to japan or nepal. the management of mountain climbing in indonesia is managed mainly by perum perhutani and the regency governments. in other words, the direction of mountain climbing in indonesia is still controlled by the government. on the island of java, climbing posts or mountaineering basecamps on average have more than one hiking trail. before climbing, mountaineers will be briefed in advance to provide information about the jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 42 52 hiking trail. among them are providing information about the rules, tracks, and conditions that mountaineers must obey to climb. basecamp management is essential to support the pull factors and push factors for mountaineers. as for the knowledge that must be known and understood by mountaineers. starting from the equipment that must be brought, the equipment needed, and mastery of knowledge about the area. therefore, mountaineering managers should improve their information so that the required preparation by mountaineers has been carefully prepared. one good example is the manager of tnbts (bromo tengger semeru national park) about climbing mount semeru. they provide complete information on their website pages with details. in addition, they also provide briefings to all mountaineer members so that information is more evenly distributed to all mountaineer members who will visit mount semeru. the research that will be carried out includes climbing mount slamet via bambangan, which is the highest mountain in central java. the highest peak is central java, which should be a tourist destination favoured by tourists. the research will be taken from the mountaineering community in central java. push factor according to which, bai, hu & wu (2009) push factor is the need for sociological passage and the psychology of the individual who makes somebody travelled. same as with kozak (2002), which describes a push factor as encouraging internally an individual to travel. so also with yoon & uysal (2005) also explain that the push factor is the aspect of internal or emotional a person doing the tour. in terms of this, the push factor can be described as encouraging the self individual to travel to the destination specified. while mountaineering tourism push factor is an impulse or desire of individuals correlated with the motivation of individuals mentioned in the follow mountaineering (elmes & barry, 1999; ewert, 1985; loewenstein, 1999; walter, 1984). thus, mountaineering tourism push factors are internal factors that make an individual's reason to participate in mountaineering activities. the dimensions of mountaineering tourism push factors, according to ewert (1985) and loewenstein (1999 ), are divided into two, including: motivational dimension the motivation dimension is a process that initiates someone to do something; in this case, motivation explains why an individual participates in mountaineering, according to weiner (1992), which demonstrates that motivation is a collection of internal and external factors that evoke the behaviour of an individual. in terms of this, a group of factors that make a person participate in mountaineering activities. meanwhile, according to driver, tinsley & manfredo (1991) in ewert (1993), motivation is the possibility of a series of states of a person when individuals realize this, which explains that motivation is also a result of needs. research has shown many motivations for a person to participate in mountaineering activities ( elmes & barry, 1999; ewert, 1985; loewenstein, 1999; walter, 1984). motives motive is a driving force that facilitates action or a reason why individuals do something; in this case, motive explains a person's reasons for participating in mountaineering activities. loewenstein (1999) states that if an individual has a strong motive, then the people can just let themselves through the dangerous things. jang and cai (2002) stated that the motive could be manifold following the chosen destinations by individuals who participated. there are two types of reasons, general motives and motives that are not too important such as status. when someone is getting increased experience of travelling, the motive usually has turned into a necessity (pearce, 2005). pull factor pull factor is defined as features, attractions, or the attributes of a destination (kim, lee & klenosky, 2002). like lee, o'leary, lee, & morrison (2002), pull factors are elements that exist in destinations that promise satisfaction to their visitors. as that is said by dann (1977), that pull factor influencing the decision someone in choosing destinations. in case this pull factor can be interpreted as a feature of a destination that can attract visitors to visit destinations such. tourism mountaineering pulls factor element pullers that attract people to the destinations specified that has a source of power that is appropriate (pomfret, 2006), the destination specified that mentioned a place mountaineering are there. as are described by jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 42 52 ewert (1985) that the nature of the mountains is one of the features that motivate a person to engage in the activities of mountaineering. the dimensions of mountaineering tourism pull factors, according to ewert (1985) and also pomfret (2006), including : natural environment lauesen (2013) explains that the natural means is something that happens in the world outside of the behaviour of human beings, which contains a variety of species of life such as animals and plants, as well as geophysical that exist at their location such as water, landscape, and air. at the same time, the environment means that it is seen from an angle of view. so, the natural environment is everything that is created in nature that surrounds humans. in terms of this, the natural mountain environment is all that there is in the mountains surrounding mountaineers, such as plants, landscapes and skies of the mountains. such as that expressed by ewert (1985) that the environment of nature is one of the pull factors of the mountains that attract travellers. similarly, explained by clarke & stankey ( 1979). the natural environment is a combination of physical, biological, social, and managerial conditions for the destinations mentioned. mountaineering opportunities pomfret (2006) explains that their chances in following mountaineering activities for the rating would potentially attract travellers to participate. the opportunity to participate in mountaineering has two dimensions, namely : 'hard' and 'soft' activities pomfret (2006) describes the dimensions is as follows activities of soft that requires not much experience, skills are limited, and the risks are minimal. or you can participate in activities classified as challenging activities, such as opening mountain trails that have never been done before. commercially organized activities the commercial organization provides their activities also can add to urge someone to follow the actions of mountaineers. mountain participation according to lane (1995), participation is a comprehensive concept, which means that participation has a meaning different from others (kelly, 200). however, ndekha, hansen et al. ( 2003) called it a social process in which groups specific to the needs of the same are actively pursuing the needs are the same, take decisions, and establish mechanisms to meet those needs. the effect of motivation towards mountaineering participation according to weiner (1992), motivation is a collection of internal and external factors that evoke an individual's behaviour. the behaviour here mentioned as behaviour that makes someone participate in mountaineering activities were, 1993). so from that, research from ewert (1985) shows that the dimensions of motivation positively influence mountain participation. h1: the motivation dimension has a positive influence on mountain participation the effect of motives towards mountaineering participation loewenstein ( 1999 ) motif significantly affects individuals' participation, wherein if the motive was too strong, then the individual will to quickly put himself in a dangerous situation. in this case, loewenstein (1999) research shows that the motive dimension has a positive influence on mountain participation. h2: the motive dimension has a positive influence on mountain participation the effect of natural environment towards mountaineering participation the natural environment is one of the pull factors of the mountains that attract tourists ( ewert, 1985). pomfret (2006) states that mountains must be set to attract tourists and give satisfaction to those who participate. in this regard, research from ewert (1985) shows that the natural environment has a positive influence on mountain participation. h3: the natural environment has a positive influence on mountain participation the effect of mountaineering opportunity towards mountaineering participation participation in the following sport at risk, such as mountaineering, will provide an opportunity for travellers to develop the identity of the new (pomfret, 2006), due to the construction of the identity of the motif is essential for engagement constantly kept in the sport at risk ( celsi et al., 1993) such as mountaineering. in this case, pomfret (2006) research shows that mountaineering opportunity has a positive influence on mountain participation. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 42 52 h4: mountaineering opportunity has a positive influence on mountain participation methods the type of research used is a research survey with approach quantitative based on the explanation on the above, the study uses survey and through the approach quantitative. objects were addressed in the research of this is the participation of mountaineers influenced by motivational dimension, motives, natural environment, and mountaineering opportunity. research is conducted at basecamp ascent of mount slamet via bambangan, in the district purbalingga, jawa tengah. the location selection is due to the phenomenon that indicates that management at basecamp climbing mount slamet via bambangan rated have less reasonable control. the population in the study of this is the community of lovers of nature. both are located in the campus and community of lovers of nature every day in banyumas, province of jawa tengah. perpetrators with mountaineer criteria who have climbed mount slamet via the mount slamet climbing basecamp route via bambangan. primary data on research is the data main obtained from respondents mountaineers who are in the community of lovers of nature presented in the questionnaire, which contains about motivational dimension, motives, natural environment, and mountaineering opportunity. results and discussion the sample of research from the population was determined using recommendations from (cohen 1992) of 90 respondents. sampling techniques using purposive sampling with students or people with criteria in banyumas regency who had climbed slamet mountain through bambangan route. respondent overview respondents in this study were students and people who had climbed slamet mountain through the bambangan route. this research was conducted with a quantitative approach using a questionnaire. the distribution of questionnaires is using online questionnaires through a google form. in this case, the researchers distributed questionnaires to one of the mountaineering community members on each campus, school, the general community and asked to spread them on social media groups to other community members. in google form, researchers also screen respondents with the required criteria so that respondents who do not fit the criteria can not fill out the questionnaire that has been distributed. the questionnaire rate obtained in this study reached 100%. the results obtained from the dissemination of the questionnaire had information about the identity of the respondents covering gender, age, and occupation. the gender of most research respondents was male, with 62 respondents, while women numbered 28 respondents. then in the age classification of most research respondents, namely aged 21-30 years with the number of 60 respondents, the age of 15-20 amounted to 26 respondents, and 31-45 amounted to 4 respondents. furthermore, the classification of the occupation of college student research respondents amounted to 40 respondents, then workers with the number of 40 respondents, and students with the number of 10 respondents. pilot test pilot tests are used to test the validity and reliability of the question indicators on the questionnaire. this research was conducted using the help of computer software in the form of spss statistics. researchers took the data by distributing questionnaires to students that participating in mountaineering activities. the amount of data collected for the pilot test was 43 respondents. the following are the test results using pilot tests. validity test validity testing is used to determine the validity of the indicators in the questionnaire question. the validity of each indicator can be measured using an r-counted value. valid test results are r-calculated values more than r-table values. the r-table value in this study used a probability level of 5% and degree of freedom n-2 and obtained a result of .308. here are the validity test results using spss: the results showed that each variable's indicators have passed the validity test and can be said to be valid because it has an rcount value more than r-table. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 42 52 reliability test reliability testing aims to measure the consistency of respondents' answers to questions in research questionnaires. reliability in this study used spss statistics and measured through the cronbach alpha technique. question indicators can be declared to have reliability if the cronbach alpha value is more significant than .60. based on the reliability test results, the five variables in this study had a cronbach alpha coefficient value more significant than the minimum limit of more than .60. this indicates that all the indicators in the questionnaire have passed the reliability test and can be said to be reliable. descriptive statistical analysis analysis of descriptive statistics is an overview of respondents' answers to the variables used in the study. this study examined the overview of push factors and pull factors that affect mountaineer participation. independent variables in this study are motive, motivational dimension, mountaineering opportunity, and ecoserv. for dependent variable is mountaineering participation. descriptive statistical analysis can provide an overview of the distribution of data about respondents' answers to the questions contained in the questionnaire. the answer is measured using a five-point likert scale that applies to each variable with a classification (1) strongly disagrees, (2) disagrees, (3) is neutral, (4) agrees and (5) strongly agrees. the average number of each indicator of mountaineer participation variables has an average of more than 4.00, and the average of all indicators obtained results is 4,285. the number of answers based on the table shows that the scales of 4 (agree) and 5 (strongly agree) amount to 304 (4) and 384 (5) out of a total of 810. this shows that most mountaineers in banyumas regency agree that mountaineer participation has an essential role in this research. the average number of each indicator of benefit perception variables has an average of more than 4.00, and the average of all indicators obtained results is 4.016. the number of answers based on the table shows that the scales of 4 (agree) and 5 (strongly agree) amount to 168 (4) and 167 (5), while for answers on a scale of 1, 2 and 3 amount to 12 (1), 21(2), and 82 (3) out of a total of 450 the average number of each indicator of benefit perception variables has an average of more than 3.00, and the average of all indicators obtained results is 3.850. the number of answers based on the table shows that the scales of 4 (agree) and 5 (strongly agree) amount to 108 (4) and 125 (5), while for kawaban on a scale of 1, 2 and 3 amounts to 61 (1), 72 (2), and 144 (3) out of a total of 360. the average number of each indicator of the benefit perception variable has an average of more than 4.00, and the average of all indicators obtained results is 4.259. the number of answers based on the table shows that the scales of 4 (agree) and 5 (strongly agree) amount to 378 (4) and 387 (5) out of a total of 900. this shows that most mountaineers in banyumas regency agree that ecoserv has an essential role in this research. measurement model analysis (outer model) pls the measurement model or outer model defines how each indicator block relates to its latent variables. outer models with reflexive indicators are evaluated with convergent and discriminant validity indicators and composite reliability for block indicators. this section will be discussed about the test results of the validity of the instrument used. validity testing is carried out to determine the extent of the ability of research instruments to measure things to be measured. a validity test is done by analyzing the validity of a sub variable used as a measurement, and then from a valid sub variable is done grain analysis. item validity testing is performed using pls analysis tools. the results of this item analysis test will be discussed in this section. although this instrument has been tested for validity in previous studies, a validity test is still necessary because the research is done under different conditions. different conditions in terms of respondents, such as the characteristics of respondents, are different, but differences also lie in the respondents who are intended. convergent validity convergent validity refers to the presence of correlations between different instruments that measure the same construct. convergent validity is assessed based on the correlation between the item score or indicator (component score) and the construct score calculated by pls. convergent validity is used to determine the validity of each relationship between the indicator and its latent construct (variable). individual reflexive measures are jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 42 52 high if they correlate more than 0.7 with the constructs to be measured. nevertheless, for early-stage research of the development of measurement scale loading value of 0.50 is considered sufficient (hair et al., 1998). based on this criterion, the indicator whose loading value is less than 0.50 is dropped from the analysis and reestimated. the result of data processing using pls produces outer loading for each indicator (variable manifest) of latent mountaineer participation (mp), motive (mtv), motivation dimension (md), mountaineering opportunity (mo), and ecoserv (ec). from outer loading appears the value of 40 indicators. after the process of exiting (drop) the invalid indicator, then all indicators have a loading value above .50 discriminant validity discriminant validity is used to show that latent constructs predict the size of their blocks better than the size of other blocks. discriminant validity can be seen from the cross-loading value; the value of the indicator's correlation to the construct must be greater than the correlation value between the indicator and other constructs. all loading correlations between each variable are more significant than loading correlations with other variables. this indicates that latent constructs are able to predict the size of the blocks themselves more than the size of other blocks, meaning that the variables mountaineer participation (mp), motive (mtv), motivation dimension (md), mountaineering opportunity (mo), and ecoserv (ec) have good discriminant validity. another way to measure discriminant validity is to compare the ave root of each latent variable construct with the correlation between other constructs. if the value of the ave root is greater than the correlation between a construct and other constructs, each construct has a good discriminant validity value (fornell dan lackner dalam ghozali, 2006). the ave root value in ec constructs is .654 ('.428) higher than the correlation between ec and md (.361), mtv (.354), mo (.312), and mp (.579). similarly, the ave root value of the md construct of .660 (''.436) is greater than the correlation between md and ec (.361), mtv (.627), mo (.629), and mp (.535). then the ave root value of the mtv construct was .709 (''.503) greater than the correlation between mtv and ec (.354), md (.627), mo (.475), and mp (.403). then the ave root value of the mo construct is .780 (''.608) greater than the correlation between mo and ec (.312), md (.629), mtv (.475), and mp (.410). then the ave root value of the mp construct is .628 (''.394) greater than the correlation between mp and ec (.579), md (.535), mtv (.403), and mo (.410). based on these results, it can be said that all latent constructs have good discriminant validity. composite reliability reliability assessment of indicator block is done using composite reliability. compared to cronbach alpha, composite reliability assumes that all indicators are weighted equally. so composite reliability is a closer approximation assuming parameter estimation is accurate while cronbach alpha tends to lower bound estimate reliability. according to dahlan et al. (2014) cronbach alpha scale is divided into 5 criteria namely, 0 .20 is very un-reliable, .21 .41 is not reliable, .42 .60 quite reliable, .61 .80 reliable, and .81 1 very reliable. it appears that all latent variables are acceptable. the composite reliability measurement of all variables is above .61. thus the construct that is built points to the accuracy and accuracy of the gauge or the reliability. structural model (inner model) pls evaluation using r-square aims to measure the degree of variation of independent variable changes to dependent variables where the greater the value of rsquare, the better the prediction model of the research model (abdillah and hartono, 2015:197). mountaineer participation (mp) variable value has an r-square value of .459 (45.9%). these results showed that the variable ability of mountaineer participation reached 45.9%, while other variables outside this study explained 54.1%. based on the calculation results from qsquare, it can be concluded that the relevance of the research data that this research model can explain is 46%, while the remaining 54% is explained by other factors outside the model of this study. hypothesis test the hypothetical test used to determine the relationship between variables in this research model. this test will also prove that the initial hypothesis compiled in this study resulted in acceptance or rejection. hypothetical test in this study using bootstrapping in smartpls, bootstrapping results in the form of path jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 42 52 coefficients. the path coefficient value in pvalue is used to determine the influence of the hypothesis, while t-statistic is used for significant levels. the first hypothesis (h1) in this study is the motivational dimension affecting mountaineer participation. the table explains that the first hypothesis has a p-value of .006 and is less than .05. the t-statistic value in the first hypothesis reaches 2,723 and is more significant than 1.96. the results can be concluded that the motivational dimension has a significant influence on mountaineer participation. the results are also following the first hypothesis so that the first hypothesis (h1) is accepted. the second hypothesis (h2) in this study is the motive affecting mountaineer participation. the table explains that the second hypothesis has a p-value of .921 and more significant than .05. the t-statistic value in the second hypothesis reaches .099 and is less than 1.96. the results can be concluded that the motive has an insignificant influence on mountaineer participation. the results did not match the second hypothesis, so the second hypothesis (h2) was rejected. the third hypothesis (h3) in this study is ecoserv influence on mountaineer participation. the table explains that the third hypothesis has a p-value of .000 and is less than .05. the t-statistic value in the first hypothesis reached 5,319 and was more significant than 1.96. the results can be concluded that ecoserv has a significant influence on mountaineer participation. the results are also following the third hypothesis so that the third hypothesis (h3) is accepted. the fourth hypothesis (h4) in this study is that mountaineering opportunity affects mountaineer participation. the table explains that the fourth hypothesis has a p-value of .498 and more significant than .05. the tstatistic value in the second hypothesis reaches .677 and is less than 1.96. the results can be concluded that mountaineering opportunity has an insignificant influence on mountaineer participation. the results did not correspond to the fourth hypothesis, so the fourth hypothesis (h4) was rejected. discussion motivational dimension affects mountaineer participation. the first hypothesis (h1) test results concluded that the motivational dimension significantly affects mountaineer participation by students or people involved in mountaineering activities in banyumas regency. this makes the first hypothesis (h1) accepted. these results may indicate that the mountaineer has motivational dimensions in him to climb the mountain. as explained in chapter 2, the motivational dimension has a positive influence on mountaineer participation. this study has resulted in line with the research (yilmaz akgunduz, 2018), which is about motivations for tourist participation. (thompson and matheson, 2008) also has a conclusion in their research that emphasizes the importance of one's uniqueness in motivation dimensions to stimulate participation. then, research (ewert, 1985) showed that the motivation dimension positively influences mountaineer participation. the results of this study have the meaning that mountaineering basecamp managers need to improve their service quality that supports aspects of the motivational dimension. motive does not influence mountaineer participation. the second hypothesis (h2) test results in this study concluded that motive has no significant effect on mountaineer participation by students or people involved in mountaineering activities in banyumas regency. this makes the second hypothesis (h2) rejected. this indicates that mountaineers have different views about a person's motives for climbing a mountain. in this case, a person's motive is to climb the mountain back to himself and be different from the motive found in others. this is shown from the random answer to the questionnaire. the second hypothesis (h2) test results are not in line with those described in chapter 2. in research conducted by (ben-shaul, 2017) the central estimate for participation is sociopsychological motives. then (loewenstein, 1999), the motive greatly influenced individual participation. the study from (loewenstein 1999) also said that motives positively influence participation. however, the study from (recours 2004) mentioned that the motives related to age, gender, nationality, and support. in this case, the motive in mountaineer participation can produce different answers due to factors related by motive so that questionnaires produce varied data. ecoserv affects mountaineer participation.the third hypothesis (h3) test results concluded that ecoserv has a significant effect on mountaineer participation by students or people involved in mountaineering activities in banyumas regency. this makes the third hypothesis jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 42 52 (h3) accepted. these results may indicate that the management of mountaineering basecamp is considered necessary in increasing mountaineer participation. ecoserv is identical to the natural environment, as mentioned in chapter 2; the results of this third hypothesis test are following those in chapter 2. research conducted by (pomfret 2006) states that mountains should attract tourists and give satisfaction to those who participate. then the research conducted by (khan 2003) mentioned that businesses that want to attract ecotourism participation should pay attention to safe facilities for the environment. furthermore, (ewert 1985) shows that natural environment identic with ecoserv positively influences mountaineer participation. this hypothesis testing shows that mountaineering basecamp needs to improve service quality to facilities and services located at mountaineering basecamp to support the ecoserv factor. mountaineering opportunity does not influence mountaineer participation. the fourth hypothesis (h4) test results in this study concluded that mountaineering opportunity has no significant effect on mountaineer participation by students or people involved in mountaineering activities in banyumas regency. this makes the fourth hypothesis (h4) rejected. it shows that mountaineers have different views on the importance of this mountaineering opportunity. this is shown from the results of the questionnaire collected, some consider that mountaineering opportunity is essential for them to participate in mountaineering activities, but others consider it unnecessary. the fourth hypothesis (h4) results are not in line with those mentioned in chapter 2. research from (americus reed ii et al., 2012) identity is relevant to the concept of mountaineering opportunities that can encourage participation. then another study from (pomfret 2006) showed that mountaineering opportunity has a positive influence on mountaineer participation. however, research conducted by (hill 2012) says that opportunity will affect participation after choosing and determining to engage in their chosen activities. in this case, mountaineering opportunities get different answers because everyone will be different in achieving their goals in climbing mountains conclusion the overall results of this study showed an overview of push factors and pull factors that affect mountaineer participation. this study showed that the motivational dimension of the push factor and ecoserv, which is part of the pull factor, shows a positive influence on mountaineering participation. this research shows mountaineer needs and what mountaineer expects to be described so that mountain basecamp managers can understand and improve their service quality to support what is needed and expected by a mountaineer. an overview of push factors and pull factors that affect mountaineer participation have described factors that are considered essential and not essential and factors that are accepted and not accepted in influencing mountaineer participation in banyumas regency. this research can be used to reference further research that discusses the factors that affect mountaineer participation. mountaineering basecamp is expected to make this research a reference source to optimize service quality to support essential factors to increase mountaineer participation. the local government is expected to make this research a reference source to develop the right strategy for local government in managing mountaineering objects. academics are expected to make this research a reference source regarding push factors and pull factors in tourism and hospitality management. the research process uses questionnaires that are not entirely accompanied directly, so there are various possibilities of filling out questionnaires that do not correspond to what is meant by the question. this research uses the method of spreading questionnaires online through google form in data collection. this has a positive impact on the spread of questionnaires faster to respondents. however, it also had a negative impact in a lack of direct interaction with respondents. respondents from this study used the criteria of mountaineers in banyumas regency who had climbed slamet mountain through the bambangan route to feel less representative of the mountaineer. further research is better done using questionnaires directly so that interaction with respondents is maximal. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 42 52 references abdillah, w. &. 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(2018). motivations of event tourism participants and behavioural intentions. tourism and hospitality management, vol. 24, no. 2, pp. 341-357. correspondence to : adiaprabowo@ustjogja.ac.id received: 30 oct 2022 accepted: 12 nov 2022 published: 1 dec 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 4, 2022, pp. 62 73 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction burnout is the emotional exhaustion felt by the auditor. public accounting firms during peak seasons or periods of peak audit work have historically been associated with high employee turnover activities (fogarty, t. j., s. jagdip, k. r. gary, 2000). auditor is a profession that has a high level of emotional exhaustion. this is due to the limited time to live a private life during the peak season at the public accounting firm, and passing the public accountant certification examination is also a challenge faced by auditors in the public accounting firm (pricewaterhousecoopers, 2004). research conducted (sweeney & summers, 2002) examines the impact of excessive workloads that can lead to work burnout in a public accounting firm, causing a dysfunctional psychological stress syndrome consisting of three different dimensions, namely emotional exhaustion, depersonalization, and reduced personal needs achievement. since the mid-1970s, the issue of burnout has become popular. it has been characterized as a negative affective response to job stress, and combines feelings of physical and emotional exhaustion. this stress syndrome affects both service workers and their clients (farber, 1983). an understanding of job burnout or burnout is very relevant to the psychological state and work, where the auditor and the environment that demands a high job. the importance of job satisfaction is evidenced by a consistent correlation with levels of absenteeism and employee turnover (barber, 1986). hiring, directing, and training new employees on an ongoing basis is inefficient and expensive for companies, especially public accounting firms. job satisfaction has become an important part of human resource management. identifying the factors that influence job satisfaction (job satisfaction) provides the necessary and meaningful information to make smart decisions regarding interventions aimed at increasing job satisfaction of auditor staff for managers in public accounting firms (lambert, e. g., hogan, n. l., & barton, 2001). a lot of evidence influence personal characteristics, physical work environment, rating and reward systems on job satisfaction through burnout as intervening variables adia adi prabowo1, ida nurhayati2 1accounting, faculty of economics, universitas sarjanawiyata tamansiswa, indonesia 2accounting, politeknik negeri semarang, indonesia abstract the purpose of this study was to examine the effect of personality characteristics, physical work environment, appraisal and rewards systems, on job satisfaction through the burnout variable. this type of research is descriptive quantitative while the sampling in this study used a sample of 90 samples conducted at the public accounting firm (kap) located in central java and yogyakarta. the data analysis method was carried out using pls-sem analysis, testing pls-sem analysis through two stages, namely the measurement model (outer model) and structural model (inner model). the results of this study indicate that the hypothesis of appraisal and rewards systems, personality characteristics, physical work environment on burnout has a positive effect, appraisal and rewards systems, burnout, personality characteristics, physical work environment, on job satisfaction has a positive effect, personality characteristics on job satisfaction through burnout variables. has a positive effect, while the physical work environment and appraisal and rewards systems variables on job satisfaction through the burnout variable have no effect. keywords personality characteristics; physical work environment; appraisal and rewards systems; job satisfaction; burnout correspondence to : adiaprabowo@ustjogja.ac.id received: 30 oct 2022 accepted: 12 nov 2022 published: 1 dec 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 4, 2022, pp. 62 73 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 shows that one of the important issues in public accounting firms is related to job satisfaction. however, few practices place job satisfaction as a top priority for managers (spytak, j. m., marsland, d. w., & ulmer, 1999). many studies examine the correlation between job satisfaction and burnout. research conducted (ursula & steven p. schinke, 1998) found that there is a correlation between job satisfaction and burnout that if the company can provide needs for employees, it can reduce burnout, absenteeism, and employee turnover. (fisher, 2001) found that the potential impact of stress is low job satisfaction, but also for organizations in terms of low performance quality and high employee turnover. several researchers including (collins, 1993) and (sanders, 1995) argue that work-related stress is directly related to the intention to leave work because of the low level of job satisfaction in the public accounting firm. research methods types of research this type of research is descriptive quantitative, namely describing the data collected and the variables to be studied the relationship between one variable and another. population, sample, and sampling technique the population used in this study were all employees who worked in the kap area of central java and yogyakarta, the determination of the sample in this study was purposive sampling. participants for this study were 90 auditors drawn from the offices of 10 public accounting firms located in central java and diy. data were collected through a structured questionnaire which was sent to auditors working in public accounting firms in central java and diy via google form. the implementation of the questionnaire distribution follows three steps namely determining a public accounting firm where we have a contact person, sending a questionnaire in the form of a google form to the partner whatsapp group and ask for help from partners in public accountants and auditor colleagues to distribute questionnaires in the form of google form. research sites the location of the research was carried out at public accounting firms (kap) in central java and diy. this research was conducted from january to february 2022. data analysis technique the questionnaire was adapted from previous literature works to ensure high reliability and validity. the questionnaire consists of a fourpoint likert scale, where 1 refers to "strongly disagree" and 4 refers to "strongly agree." the questionnaire includes demographic instruments and other instruments to measure the different variables of this study. meanwhile, data analysis uses pls-sem. pls-sem was used in this study. pls-sem is the second generation of multivariate technique to combine confirmatory factor analysis (cfa), multiple linear regression and path analysis. it focuses on explaining the variance in the dependent variable when examining structural models. pls-sem is appropriate if the phenomenon is relatively new, and prediction is more important than parameter estimation. this study is considered as an additional and new contribution to the existing stress-related theoretical framework. results and discussion characteristics of respondents the characteristics of the respondents in this study explain the profile of the respondents. characteristics of respondents consist of gender, age, length of work and assignment. based on table 1, the total respondents obtained are 90 respondents consisting of 51 male respondents (56.67%) and 166 female respondents (43.33%). the number of male respondents is 13.34% higher than female respondents. in this study, these results indicate that there are more male respondents than female respondents. table 2 shows the distribution of respondents based on age. the results of the analysis show that the majority of respondents in this study are workers with an age range of 26-35 years with a total of 53.33%, while workers with an age of less than 25 years with a total of 18.89%, workers with an age range 36-55 years with a total of 18.89% and workers with the age of more than 55 years with a total of 8.89%. table 3, shows the distribution of respondents based on length of work. the results of the analysis show that the majority of respondents in this study are workers with a length of work spanning 2-5 years with a total of 33.33%, while workers with a length of service of less than 1 year with a total of 23.33%, workers with a length of work spanning 6-10 years with a total of 20 % and workers with more than 10 years of service totaling 23.33%. correspondence to : adiaprabowo@ustjogja.ac.id received: 30 oct 2022 accepted: 12 nov 2022 published: 1 dec 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 4, 2022, pp. 62 73 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 table 4 shows the distribution of respondents based on assignment. the results of the analysis show that the majority of respondents in this study were workers with 6-10 assignments totaling 26.67%, while workers with less than 5 assignments totaling 23.33%, workers with assignments ranging from 11-15 with a total of 11.11%, workers with assignment prone pen16-20 with a total of 21.11% and workers with a range of assignments more than 20 with a total of 17.78%. measurement model test results (outer model) convergent validity the results of the convergent validity test in this study are shown as follows: based on table 5, the data shows that the value of the outer loading (cross loading) is in accordance with the requirements, namely the loading value is above 0.60. overall, the results of this test can be concluded that the construct has good convergent validity. reliability test table 6 shows the results of composite reliability and cronbach alpha in table 6, which resulted in all constructs having a value above 0.70 so it can be concluded that the construct indicators for the appraisal and rewards systems variables, burnout, job satisfaction, personality characteristics, physical work environment, were declared reliable or meet the reliability test. discriminant validity based on the table above, it can be concluded that the ave root in all constructs is higher than the correlation between constructs in table 7. for example, the aars construct has an ave root of 0.918. the ave root value is higher than the correlation coefficient on the aars variable which has a value range between 0.919 to 0.878. it can be concluded that the aars variable has a good level of discriminatory validity and is declared valid. likewise for the other variables, so that it can be stated that all variables in this study have quite high discriminatory validity. structural model test results (inner model) based on table 8, it can be seen that the rsquare value of the burnout variable is 0.822 which means that the burnout variable which is explained by the construct of personality characteristics, physical work environment, appraisal and rewards systems variables with a percentage of 82.2%. and the value of job satisfaction is 0.018 which means that the job satisfaction variable is explained by the variable construct of personality characteristics, physical work environment, role conflict, appraisal and rewards systems with a percentage of 1.8%, while the remaining 16% is explained by other constructs outside this study. hypothesis the results of the path coefficients in table 9 can be seen that the first hypothesis shows that the personality characteristics hypothesis on job satisfaction is t statistic > t-table (2.161 > 1.989) and the p values (0.031) are smaller than the 5% sig value. so it can be concluded that the personality characteristics hypothesis on job satisfaction is accepted. the second hypothesis shows that the appraisal and rewards systems hypothesis on job satisfaction is t statistic > t-table (12,115 > 1,989) and the p values (0.000) are smaller than the sig value of 5%. so it can be concluded that the appraisal and rewards systems hypothesis on job satisfaction is accepted. the third hypothesis shows that the physical work environment on job satisfaction is t statistic > t-table (4,136 > 1,989) and the p values (0.000) are smaller than the sig value of 5%. so it can be concluded that the hypothesis of the physical work environment on job satisfaction is accepted. the fourth hypothesis shows that the burnout hypothesis on job satisfaction is t statistic > ttable (2.224 > 1.989) and the p values (0.027) are smaller than the sig value of 5%. so it can be concluded that the burnout hypothesis on job satisfaction is accepted. the fifth hypothesis shows that the personality characteristics of job satisfaction through burnout as an intervening variable are t statistics > t-table 2.196 > 1.989) and the p values (0.029) are smaller than the sig value of 5%. so it can be concluded that the personality characteristics hypothesis on job satisfaction through burnout as an intervening variable is accepted. the sixth hypothesis shows that the appraisal and rewards system on job satisfaction through burnout as an intervening variable is t statistic < t-table 1.446 < 1.989) and the p values (0.149) are greater than the sig value of 5%. so it can be concluded that the appraisal and rewards systems hypothesis on job satisfaction through burnout as an intervening variable is rejected. the seventh hypothesis shows that the physical work environment on job satisfaction through burnout as an intervening variable is t statistic > t-table 1.522 <1.989) and the p values (0.129) are greater than the sig value of 5%. so it can be concluded that the physical environment hypothesis on job satisfaction correspondence to : adiaprabowo@ustjogja.ac.id received: 30 oct 2022 accepted: 12 nov 2022 published: 1 dec 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 4, 2022, pp. 62 73 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 through burnout as an intervening variable is rejected. discussion the first hypothesis testing found that personality characteristics had a positive effect on job satisfaction. because t statistic > t-table (2.161 > 1.989) and the value of p values (0.031) is smaller than the sig value of 5%. this shows that an auditor who has emotional stability has a positive influence on job satisfaction. emotionally stable people can handle pressure well and endure the frustrations of work, and as a result they are more likely to produce job satisfaction than emotionally unstable people. this finding is in line with research conducted by jones (2006) which suggests that many organizational and personality variables can influence the observed relationship between job performance and job satisfaction. p.t. van den berg & feij (2003) show that many studies have shown that personality traits are not only related to job performance, but also to job satisfaction. d.w. organ & lingl (1995) showed that employees with conflict-avoiding personalities contributed significantly to the differences described in job satisfaction. peltokorpi (2008) also found that emotional stability has a positive influence on job satisfaction. testing the second hypothesis found that appraisal and rewards systems have a positive effect on job satisfaction received. because t statistic > t-table (12,115 > 1,989) and the value of p values (0.000) is smaller than the sig value of 5%. appraisal and rewards systems can motivate employees to perform better so that employees can meet their needs and feel satisfaction in working at the company, while appraisal and rewards systems are not appropriate, so they motivate employees to work not optimally because employees feel that by working they do not get rewards that match their needs. his life. research according to millmore & lewis (2007) found that nonfinancial rewards have increased employee performance in the company because employees get rewards for every performance they have achieved. meanwhile, chiang & birtch's (2008) research found that nonfinancial rewards have an effect on employees' work performance motivation. research galanou, e., georgakopoulos, g., sotiropoulou & dimitris (2010) financial and non-financial rewards contribute significantly to employee motivation and job satisfaction. because when employees are satisfied with the workplace, especially related to the compensation or reward system, they are more likely to be stable, productive, and working towards organizational goals. testing the third hypothesis that the physical work environment has a positive effect on job satisfaction is accepted. because t statistic > t-table (4.136 > 1.989) and the value of p values (0.000) is smaller than the sig value of 5%. a worker who works in an appropriate work environment such as the need for workplace facilities can improve performance so that employees feel comfortable and satisfied in their workplace. this is in line with the findings of roelofsen (2002) showing that the physical work environment affects job satisfaction. jain & kaur (2014) study proves that good working conditions, refreshment & recreation facilities, health and safety facilities, fun at work increase the level of job satisfaction. mokaya, musau, wagoki, & karanja (2013) a conducive workplace characterized by a cheerful and pleasant atmosphere, bright and cheerful decorations, proper arrangement of facilities and adequate work space; all have a positive effect on employee job satisfaction. good working conditions help employees achieve their job and company goals; make the workplace more pleasant, thereby increasing job satisfaction. testing the fourth hypothesis that burnout has a positive effect on job satisfaction is accepted. because t statistic > t-table (2.224 > 1.989) and p values (0.027) is smaller than sig 5%. this proves that employees who do not reach psychological maturity will cause frustration which will eventually lead to burnout and affect employee job satisfaction. this shows that burnout has meaning in determining employee job satisfaction. research conducted by t. j. fogarty, singh, rhoads, & moore (2000) identified a significant negative relationship between burnout and job satisfaction. similarly, research conducted by k.j. smith, davy, & everly, (2007) also found that burnout had a significant negative relationship with job satisfaction, and a significant positive relationship with turnover intention, but failed to find a significant relationship between burnout and job performance. burnout is a syndrome of emotional exhaustion, depersonalization and a low sense of personal accomplishment that leads to decreased effectiveness at work. it is associated with decreased job performance and reduced work commitment, and predicts health problems related to stress and low career satisfaction. testing the fifth hypothesis, namely personality characteristics has a positive effect on job correspondence to : adiaprabowo@ustjogja.ac.id received: 30 oct 2022 accepted: 12 nov 2022 published: 1 dec 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 4, 2022, pp. 62 73 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 satisfaction through burnout. because t statistic > t-table 2.196 > 1.989) and the value of p values (0.029) is smaller than the sig value of 5%. employees who have low emotional stability are more likely to have high levels of stress at work so they feel uncomfortable working in the company where they work. boumans (1990) study shows that, in addition to job characteristics, individual characteristics are also related to job satisfaction. in addition, employees who receive a lot of social support at work are more satisfied, while employees who do not have social support are faced with the problem of being less satisfied with their jobs. personality makes a person determine how people think and how they perceive and react to their work (george & jones, 2008). testing the sixth hypothesis, namely appraisal and rewards systems has a positive effect on job satisfaction through burnout is rejected. because the t statistic < t-table 1.446 < 1.989) and the value of p values (0.149) is greater than the sig value of 5%. contrary to the results of research conducted by symon, cassell, & dickson, (2000) about the satisfaction people get from the rewards they receive. nazir, shafi, qun, nazir, & tran, (2016) found the effect of the reward system on job satisfaction and burnout, and consequently, affects employee commitment, performance, and intention to resign. according to the research of koo, yu, chua, lee, & han (2019), work has a significant mediating effect between incentives and affective commitment. determination of the reward system does not affect the emotional stability of employees because the conditions of the needs and emotional characteristics of each employee are different. testing the seventh hypothesis, namely the physical work environment has a positive effect on job satisfaction through burnout. barry & heizer (2001) stated that the work environment is a physical environment which affects the performance, safety and quality of employees. according to research by ramlall (2003), people try to keep working in a company when the company provides a good and positive work environment. d. scott, bishop, & chen (2003) work environment is proven to increase job satisfaction. bakotic & babic, (2013) found that workers who work in difficult working conditions will feel dissatisfied in the company. raziq & maulabakhsh (2015) show that the work environment has a positive impact on job satisfaction. conclusion based on the research findings, it is suggested that the partners or managers of public accounting firms minimize the occurrence of disappointment and the emergence of negative emotions in the workplace that fair behavior (distributive, procedural and interactional justice) will significantly help in this regard. by creating a healthy environment and proper management of public accounting firms away from institutional discrimination will strengthen the spirit of cooperation and benefit from experience among staff, because when colleagues support each other, they become more confident in their own skills. partners or managers in public accounting firms should promote fair merit-based rewards and place the right people in the right places, to encourage staff who adhere to harmony and replace their cooperative spirit with their competitive morale. in addition, partners and managers in public accounting firms must also pay attention to the nature of neuroticism which has the most positive impact on burnout incidents in public accounting firms. people with this characteristic tend to focus on the negative aspects of a given situation. the negative and uncertain attitude of these people causes them to have negative judgments about their level of authority and this reduces the individual's success and the fatigue effect gradually appears in them and whatever this trait increases the burnout rate also increases. there are some limitations in conducting research. these limitations can limit the reliability of the data. the results of the study were limited to the responses obtained from the public accounting firms in central java and yogyakarta. the sample in this study may not be representative of all auditor staff in public accounting firms in indonesia. therefore, it is proposed that the number of selected 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(1997). measurement and mismeasurement of mood: recurrent and emergent issues. journal of personality assessment, 68(2), 267–296. correspondence to : adiaprabowo@ustjogja.ac.id received: 30 oct 2022 accepted: 12 nov 2022 published: 1 dec 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 4, 2022, pp. 62 73 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 list of tables table 1. classification of respondents based on gender umur jumlah presentase laki-laki 51 56.67% perempuan 39 43.33% jumlah 90 100% source: primary data, processed 2022 table 2. classification of respondents based on age of workers umur jumlah presentase <25 tahun 17 18.89% 26-35 tahun 48 53.33% 36-55 tahun 17 18.89% >55 tahun 8 8.89% jumlah 90 100% source: primary data, processed 2022 table 3. classification of respondents based on length of work source: primary data, processed 2022 table 4. classification of respondents based on assignment source: primary data, processed 2022 table 5. cross loading no item pertanyaan pc pwe ars burnout js 1 personality characteristics pc1 0.906 -0.422 -0.285 0.777 -0.210 pc2 0.960 -0.510 -0.082 0.785 -0.012 pc3 0.927 -0.348 -0.126 0.749 -0.092 pc4 0.946 -0.439 -0.089 0.903 -0.051 2 physical work environment pwe1 -0.131 0.902 0.758 -0.003 0.799 pwe2 0.070 0.884 0.725 0.074 0.691 lama bekerja jumlah presentase < 1 tahun 21 23.33% 2-5 tahun 30 33.33% 6-10 tahun 18 20% > 10 tahun 21 23.33% jumlah 90 100% penugasan jumlah presentase < 5 penugasan 21 23.33% 6-10 penugasan 24 26.67% 11-15 penugasan 10 11.11% 16-20 penugasan 19 21.11% > 20 penugasan 16 17.78% jumlah 90 100% correspondence to : adiaprabowo@ustjogja.ac.id received: 30 oct 2022 accepted: 12 nov 2022 published: 1 dec 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 4, 2022, pp. 62 73 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 pwe3 -0.069 0.828 0.497 0.052 0.520 pwe4 -0.348 0.711 0.341 -0.204 0.404 pwe5 -0.263 0.728 0.455 -0.151 0.536 pwe6 -0.273 0.768 0.579 -0.162 0.557 pwe7 -0.086 0.899 0.596 0.037 0.643 pwe8 0.089 0.844 0.832 0.070 0.840 3 appraisal and rewards systems ars1 -0.112 0.709 0.860 -0.050 0.798 ars2 0.056 0.735 0.853 0.008 0.866 ars3 -0.057 0.588 0.870 -0.083 0.871 ars4 -0.242 0.668 0.953 -0.226 0.852 ars5 -0.078 0.760 0.933 -0.113 0.885 ars6 -0.151 0.676 0.957 -0.138 0.804 ars7 -0.138 0.605 0.922 -0.134 0.751 ars8 -0.115 0.665 0.906 -0.120 0.830 ars9 -0.151 0.768 0.962 -0.183 0.883 ars10 -0.086 0.774 0.958 -0.084 0.835 4 burnout b1 0.614 -0.068 -0.056 0.795 -0.086 b2 0.727 0.019 -0.024 0.835 -0.043 b3 0.642 0.097 -0.131 0.864 -0.076 b4 0.860 0.032 -0.084 0.942 0.011 b5 0.805 -0.163 -0.186 0.904 -0.173 b6 0.867 -0.037 -0.151 0.923 -0.052 5 job satisfaction js1 -0.061 0.775 0.845 -0.030 0.937 js2 -0.099 0.703 0.808 -0.175 0.822 js3 0.027 0.798 0.852 -0.007 0.910 js4 -0.035 0.689 0.876 -0.055 0.954 js5 -0.123 0.595 0.814 -0.128 0.898 js6 -0.033 0.726 0.800 -0.035 0.945 source: primary data, processed 2022 table 6. composite reliability and cronbach alpha variabel cronbach's alpha composite reliability keterangan ars 0.979 0.982 reliabel burnout 0.941 0.953 reliabel js 0.959 0.967 reliabel pc 0.952 0.965 reliabel pwe 0.932 0.944 reliabel source: primary data, processed 2022 table 7. ave and √ave correspondence to : adiaprabowo@ustjogja.ac.id received: 30 oct 2022 accepted: 12 nov 2022 published: 1 dec 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 4, 2022, pp. 62 73 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 nama variabel (ave) √ave keterangan ars 0.844 0.918 valid burnout 0.772 0.879 valid js 0.832 0.912 valid pc 0.875 0.935 valid pwe 0.678 0.824 valid source: primary data, processed 2022 table 8. r-square variabel r square burnout 0.822 job satisfaction 0.018 source: primary data, processed 2022 table 9 . path coeffisiens hipotesis original sample (o) t statistics p values keterangan h1 pc -> js 0.169 2.161 0.031 diterima h2 ars -> js 0.727 12.115 0.000 diterima h3 pwe -> js 0.252 4.136 0.000 diterima h4 burnout -> js -0.127 2.224 0.027 diterima h5 pc -> burnout -> js -0.111 2.196 0.029 diterima h6 ars -> burnout -> js 0.025 1.446 0.149 tidak h7 pwe -> burnout -> js -0.030 1.522 0.129 tidak source: primary data, processed 2022 list of figures figure 1. outer loading correspondence to : adiaprabowo@ustjogja.ac.id received: 30 oct 2022 accepted: 12 nov 2022 published: 1 dec 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 4, 2022, pp. 62 73 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 correspondence to: reresagustin25@gmail.com received: 3 june, 2021 accepted: 10 june, 2021 published: 30 june, 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 2, pp. 40 50 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction economic activity can change at any time. these changes can be felt in real-time when the country's economy is experiencing high prosperity or when the country's economy is in decline. even so, assessing the economic performance by looking at what its people feel is not the best way. a good practice is paying attention to economic activity data, which is known as macroeconomic indicators. usually, the data that always used to observe and measure the economy of a country, among others; economic growth rates, national income, inflation, job opportunities, unemployment, the balance of payments, foreign exchange rates, interest rates, and stock market developments (sukirno, 2000: 27). according to dornbusch in the (nasrullah, 2014). net exports are one of the factors that affect gross domestic income (gdp). net exports are total exports minus total imports. net exports stimulate increased revenue and economic growth if the current account is in a surplus. international trade activities significantly affect a country's economic growth because the world economy is currently intertwined with one another. however, this activity also faces challenges and risks from global financial turmoil, government political decisions, low competitiveness & quality of domestic products, expensive domestic production costs, and government regulations on imported countries regarding environmental, health, and safety issues. the debate regarding the role of exports in economic analysis the impact of net export, investment, labour and exchange rate on economic growth in indonesia in the year of 2000-2020 vina kurniawati1 1accounting department, faculty of economics and business, universitas esa unggul, indonesia abstract economic growth is defined as an indicator measuring whether a country's economy is progressing or not, especially in indonesia, due to the high and low levels of production factors for goods and services that will affect economic development. this study aims to determine and an2alyze the extent of the influence of net exports, investment, labor, and exchange rates on economic growth from 2000 to 2020. the data used in this study are secondary data obtained from the official website of the indonesian central statistics agency (bps). , the central bank of indonesia (bi) and the indonesian investment coordinating board (bkpm). researchers tested multiple linear regression analysis with the ordinary least square (ols) method using eviews 10 as a testing tool to see the effect of independent variables on the dependent variable. based on the research conducted by the author, the results show that the factors that influenced economic growth in 2000-2020 were investment, labor and the exchange rate, while net exports had no effect because during the 2000-2020 period the development of net exports in indonesia was still slower due to growing imports from year to year and low product competitiveness due to export commodities that are still based on primary products that do not have added value from these results, it is hoped that the government will be able to support activities that can encourage net exports through infrastructure development and development of primary commodities into products with high selling value, able to create conducive investment climate , safe and regulatory that not complicated for investors in indonesia, can provide facilities in order to improve the quality of human resources and also be able to fulfill of labor rights, the government must also be able to provide monetary and fiscal policies that can maintain the stability of the rupiah exchange rate in the global market. keywords economic growth, net export, investment,labour, exchange rate jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 40 50 growth is an exciting topic, especially in economic development. beside that, according to (todaro 2004: 65), investment, be it fdi or ddi by the government or private sector, is a prerequisite for economic activity to increase national income. in indonesia itself, the investment climate experiences several obstacles, including complicated and excessive regulations and the proposition of a tax regime that is reluctant to provide more space for entrepreneurs. another factor that affects economic growth is human resources. the increasing population of indonesia will increase the number of workers, allowing an area to increase production. a more significant number of workers means that it will increase the number of productive work. however, on the other hand, the negative impact of increasing population growth is not matched by employment opportunities, unequal education, and training for workers to doubt the quality of human resources. (mikhral rinaldi, abd. jamal, 2017) the next indicator that affects economic growth is the exchange rate. according to (arifin and mayasya, 2018) the exchange rate is the number of specific currency units required to buy or obtain different currency types. therefore, it can create a good business climate that is very profitable for trade and investment. the debate about the exchange rate system has become a hot topic of discussion after the asian risks of 19971998 hit developing countries. also, there are two prepositions regarding the impact of the movement on the rupiah exchange rate. the first proposition is the depreciation of the exchange rate, which positively affects export demand to make the trade balance a surplus. comparatively, domestic products will be cheaper than competing countries. in their research, leigh et al. (2016) estimated that the impact of the exchange rate depreciation of 10% would cause an increase in the trade balance by an average of 1.5%. the second proposition, exchange rate depreciation, has a negative impact on the trade balance. the negative effect is due to the abundance and cheapness of imported products, thus reducing the ability to produce and export products to the global market. these two inconclusive estimation results require empirical and accurate proof, resulting in invalid answers. in their research (cahya hendra purwanggono, 2015) stating that economic growth is strongly influenced by net exports, employment, and investment abroad. furthermore, reinforced by in the research conducted by(nasrullah, 2014), it is stated that there are many factors that can determine the high or not the economic growth of a country, including; net export, domestic and foreign investment, labor availability, and exchange rate from the description that has been presented, it can see that net exports, investment, labor, and foreign currency exchange rates are indicators in determining the growth of gross domestic product (gdp). this condition can be realized by the role of various supporting elements that influence it. the existence of multiple debates, obstacles, and the results of previous research estimates that are inconclusive is the reason for the authors to look at the problem of economic growth and examine it more deeply, namely regarding: "analysis of the impact of net export, investment, labour and exchange rate on economic growth in indonesia 20102020". this research is aimed to investigate the relationship of net export, investment, labour, and exchange rate on indonesia's economic growth in the year of 2000-2020, and giving some suggestion to help indonesia get higher and better economic growth. economic growth economic growth is an activity that runs from year to year. therefore, to find out the level of economic growth of a country must be compared with the annual gross national gross (gdp). in comparing it, you must also pay attention that gdp is affected by inflation or price changes that can occur at any time. therefore, to avoid it, the price benchmark used is constant price. according to (indonesian central statistics agency, 2020), continuous price gdp can determine the rate of economic growth each year in various sectors. therefore, to find out the level of economic growth of a country must be compared with the annual gross national gross (gdp). in comparing it, you must also pay attention that gdp is affected by inflation or price changes that can occur at any time. investment in economic theory, investment is defined as expenditure used to buy capital goods and production equipment to increase the stock of capital goods in the economy to facilitate the future production process. to achieve the expected economic growth, a country must jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 40 50 have savings or invest for long-term use. if economic growth increases, it will also increase productivity, welfare, and even income. even in the harrod-domar theory, stimulating economic growth requires a new investment that includes a net addition to reserves or capital stock. the same thing is conveyed by adrian sutawijaya, in (nasrullah, 2014) that the increase in investment will lead to an increase in new employment opportunities, so this will certainly encourage economic growth. international trade international trade is an activity where there is an exchange of goods or services between economic actors originating from different countries. the economic balance theory states that global trade problems include two actions: import (m) and export (x). export is an activity carried out by removing goods from within the country to abroad with specific standards and criteria. meanwhile, import is defined as an activity that causes goods from abroad to enter indonesia's customs area (kartikasari, 2017). furthermore, net exports are the deduction from the value of exports to the value of imports. therefore it is necessary to have net exports within a country. based on the macroeconomic theory, the correlation between exports and economic growth or a reflection of national income is the identity equation because exports are a part of the national income level. a country must produce goods or services by international market standards or criteria. competitiveness is also an essential factor in export activities. the competitiveness of a country is influenced by human resources, natural resources, socioculture and technological developments. labour according to (mulyadi, 2003), labour is a population with an age range of 15-64 years or the number of people in a country who can produce goods or services when there is demand and the willingness to contribute to these activities. whereas in law no. 13 of 2003 concerning the protection of manpower, workers are individuals who do work to obtain goods and services either for themselves or for the community. therefore, labor is often referred to as the driving force of the nation's economy. the use of labor in production activities is related to wages, production costs, and labor demand. the increase in the number of workers will trigger an increase in labor productivity due to changes in the workforce's quality and quantity, which will support the rate of economic growth. exchange rate the exchange rate is the price/value of another country's currency which is stated using the domestic currency. according to (yunita and robiyanto, 2018) exchange rate is the amount of one currency that can be exchanged for a unit of another currency. however, these foreign exchange rates fluctuate due to the influence of the demand and supply of foreign currencies. in addition, according to (sukirno, 2002) in a floating exchange rate system, depreciation or appreciation of currency values will result in export and import practices in a country. in simple terms, if the exchange rate in a country experiences depreciation or a decrease in the currency value, it means that the value of the other country's currency is higher (price) and will result in increased exports and lower imports. so it can be concluded that foreign exchange rates have something to do with export and import activities, which of course, in the end, this impact will affect the rate of economic growth in a country. correlation between dependent variable and independent variables the effect of net export towards economic growth net exports are necessary to achieve high levels of economic growth because the net export is the export value that the import value has reduced. in this case, exports are a source of foreign exchange for a country. furthermore, this net export will positively impact a country's economic growth when its value exceeds the value of its imports to increase national income and encourage economic growth directly. to export, a country must produce goods or services by international market standards or criteria. competitiveness is also an essential factor in export activities. furthermore, in a study conducted by (bruckner & lederman, 2012) that exports have a positive influence on a country's economy. according (utami, 2019), (abdelhak errami, 2019) dan (teguh andiarto, 2019), (fitriani, 2019) state that exports have a positive and significant impact on economic growth. in the research by he was also stating that exports have a positive effect on economic growth. in the research conducted by therefore, it can be concluded that net exports in a country positively impact jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 40 50 economic growth. the trade balance in that country does not experience a deficit, or exports' value is smaller than imports.. h1 : it is assumed that net exports have a positive effect on growth economy in indonesia during the period 2000-2020 the effect of investment towards economic growth investment and economic growth have a close relationship. investment is used as an expense in buying capital goods that can be used in the future. if the investment is positive, then national income will also increase, followed by opening up job opportunities, increasing productivity, even distributing income, the people's welfare, etc. it can be said that economic growth in that country has increased. there are three main factors in a country's economic growth: 1) capital accumulation, including all forms and types of new investments, physical equipment, capital, or human resources. 2) population growth, which will increase the number of workers in a country. 3) the development of technology (todaro, 2000). according to (purwanggono, 2015) the correlation between investment and economic growth has a very close relationship because investment is a factor that can drive economic growth in a country. in the research that conduct by (wulandari and zuhri, 2019) stated that investment has a positive effect on indonesia's economic growth. to achieve the expected economic growth, a country must have savings or invest for long-term use. if economic growth increases, it will also increase productivity, welfare, and even income. even in the harrod-domar theory, stimulating economic growth requires a new investment that includes a net addition to reserves or capital stock. h2 : it is assumed that investment has a positive effect on growth economy in indonesia during the period 2000-2020. the effect of labour towards economic growth therefore, labor is often referred to as the driving force of the nation's economy. the use of labor in production activities is related to wages, production costs, and labor demand. the increase in the number of workers will trigger an increase in labor productivity due to changes in the workforce's quality and quantity, which will support the rate of economic growth. based on research conducted by (mikhral rinaldi, abd. jamal, 2017) and (mutia s, 2016) states that labor variables are a significant and positive impact on economic growth in indonesia. this is also continuing in the sollow and swan theory, economic growth is influenced by available labor, capital, and technology. in this theory, the raise of output capital can change if the use of labor is greater, the capital required will be less. on the contrary, if the use of labor is less, the capital raises needed will be more. h3 :it is assumed that labor has a positive effect on growth economy in indonesia during the period 2000-2020 the effect of exchange rate towards economic growth one of the factors affecting the trade balance is the exchange rate. however, these foreign exchange rates fluctuate due to the influence of foreign currencies' demand and supply. if the domestic exchange rate depreciates, exports will increase so that the trade balance will be a surplus. however, the foreign exchange rate becomes weak when the payment is a deficit or when the country has a very high demand for foreign exchange than its supply due to the increasing national income of the people and the too great interest in imported products. (sukirno, 2002). the results of this study are in line with research conducted by (winiarni, 2020) stating that the exchange rate has a negative effect on indonesia's economic growth. (ginting, 2013) she stated that based on the results of long-term and short-term regression analysis, it turned out that the exchange rate had a negative and significant effect on indonesian exports. this previous shows that the stronger the exchange rate (appreciation) will cause the decline in indonesian exports, which will reduce indonesia's economic growth. h4 :it is assumed that the exchange rate has a negative effect on economic growth in indonesia during the period 2000-2020. research model based on the theoretical basis described above, this research works with the framework of thinking that net export, investment, labor, and exchange rate individually or collectively affect economic growth, and will be illustrated clearly through figure below : jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 40 50 figure 1. research model source : data processed by author methods the analytical method used in this research is analysis descriptive and quantitative. descriptive analysis is intended to describe in detail the phenomena that occur related to the problems studied. quantitative analysis is used because this study emphasizes testing theories or hypotheses through measuring the research variables in numbers and analyzing data with static procedures and systematic modeling. the research location is indonesia. this study's population is all data on net export, investment, labour, exchange rate and economic growth, from the central bureau of statistics agency, capital investment coordinating board, and bank central of indonesia. while the sample is the data mentioned above within the 2000-2020 period. in compiling this thesis, the author uses the literature search method, where research is carried out with library materials to obtain supporting data in scientific writings, research reports, journals, and books related to the topic under study, various national and international journals, and previous research. the data collection technique used was direct recording in time series data for 21 years (2000-2020). all data used in this study are secondary data in the form of annual time series within the 2000-2020 period, which is quantitative, namely data in the form of numbers and data sources obtained from data published by the indonesian central statistics agency (bps) through the website. (www.bps.go.id) , capital investment coordinating board and through the website (www.bkpm.go.id), bank central of indonesia through website (www.bi.go.id) and other supporting data obtained from journals, books and previous research. to analyze the independent variable's effect on the dependent variable in that period, the econometric theory approaching model is used by regressing the available variables using the ordinary least square (ols) method. the ols method is used to find regression line estimates in analyzing the independent variable's effect on the dependent variable by minimizing the number of squares of errors in each observation on the research path. results and discussion in this study there is a number of valid data, namely net export, investment, labor and exchange rate indonesia for 21 years of research. classical assumption test the first test carried out by the author is the classical assumption test, the first is normality detection it produces probability value 0.559081 > 0.05 indicates that the residual is normally distributed. next is heteroscedasticity detection using glejser test, indicated p value is prob. chi-square on obs * r-squared is 0.3720. so, 0.3720 > 0.05, it can be concluded that the residual regression model is free from heteroscedasticity. next is multicollinearity detection, it can produce the vif value by each variable that is export ( 1.022349 ), investment (6.683659), labor ( 3.452689), exchange rate (5.893818) is smaller than 10. so, it can be concluded that the regression model does not indicate multicolonierity symptoms. the last is autocorrelation detection using the durbin-watson value (dw), the calculated dw value of 1.908585 and the calculation using dw-table results in the value dl=0.09272, the value 4– dl=3.0728, the value du=1.8116 and the value 4–du=2.1884 . due to the value of dl(0.09272) < du(1.8116) < dw-count (1.908585) < 4–du(2.1884) < 4–dl(3.0728) it can be concluded that there is no autocorrelation in this area. multiple linear regression test next is to perform multiple linear analyzes using the ols method, we can draw the equation model for the effect of net exports (x1), investment (x2), labor (x3), and the exchange rate (x4) on indonesia's economic growth (y). based on data obtained from research results and data that has been processed using the eviews 10 computer program, futhermore, the following regression results are obtained: y= α+ β1exp+ β2inv+ β3labβ4rate+£ jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 40 50 table 1. hypothesis test result source : data processed using e views 10, 2021 based on the multiple linear regression equation y=-87.882470.036567exp+0.709391inv+5.840205la1.736803rate, a constant value of -87.88247 is obtained, a negative value means that if the score for the independent variables, namely net export, investment, labor and exchange rate, is considered non-existent or equal to zero , then the score of economic growth will further decline towards -87.88247. this condition arises because economic growth is very vulnerable to the dynamics of the economy in that country. if the economic situation is unstable and frequent shocks, the economic growth will continue to decline. the coefficient value of net export -0.036567 with a significance value = 0.3354 indicates that the net export variable has a negative and insignificant effect on indonesia's economic growth. the coefficient value on the investment variable shows the number 0.709391 with a significance value of = 0.0042. here the investment variable has a positive and significant influence on economic growth. if there is an increase in investment of 1%, it will increase economic growth by 0.709391%. the labor variable's coefficient value is 5.840205 with a significance value of = 0.0001, which states that the labor variable has a positive and significant effect on indonesia's economic growth. in this case, if there is an increase in labor by 1%, it will increase indonesia's economic growth by 5.840205%. the coefficient value on the exchange rate variable is -1.736803 with a significance value of 0.0400. it is stated that the variable exchange rate has a negative and significant effect on indonesia's economic growth. if the exchange rate increases by 1%, it will reduce economic growth by -1.736803%. hypothesis testing the hypothesis test aims to determine whether the hypothesis that has been previously proposed in this study is accepted or rejected. in this study, researchers used a hypothesis test consisting of the coefficient of determination test, t-test, and f test. based on the f test (simultaneous test) shows that the f-count is 44.90989, with a pvalue of 0.000000, if fcount> ftable or pvalue < level of significance of 0.05, it means that all independent variables jointly affect the independent variable. while the f-table value with the number of observations is 21 samples (n) using a significance level of 0.05 and the number of all variables (k) is 5, then the equation is obtained. the following; df1 = k-1 = 4 and df2 = n-k = 16, so that the f-table value is 3.01. based on these calculations' results, the f-count is greater than the f-table or 44.90989> 3.0, and it can be seen from the pvalue that is smaller than the significance value of 0.05 or 0.000000 <0.05. so, it can be interpreted that all variables, namely x1 (net export), x2 (investment), x3 (labor), and x4 (exchange rate) have on variable y (indonesian economic growth) have a no test hypothesis t-statistic prob. significant (5%) conclussion 1 f-test 44.90989 0.000000 0.05 all variables simultaneously has a significant effect 2 t-test h1 -0.993088 0.3354 0.05 not accepted h2 3.335688 0.0042 0.05 accepted h3 5.414531 0.0001 0.05 accepted h4 -2.234723 0.0400 0.05 accepted jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 40 50 significant effect on indonesia's economic growth. based on the partial hypothesis test (t test), the net export t-count is -0.993088 < 2.10982 t-table, and obtained a probability value of 0.3354 > 0.05. furthermore, it can be concluded that net export does not have a significant effect on indonesia's economic growth, so it is stated that hypothesis 1 (h1) is not accepted. the investment t-count is 3.335688 < 2.10982 t-table, and obtained a probability value of 0.0042 > 0.05. furthermore, it can be concluded that investment have a significant effect on indonesia's economic growth, so it is stated that hypothesis 2 (h2) is accepted. the labor t-count is 5.414531 < 2.10982 t-table, and obtained a probability value of 0.0001 > 0.05. furthermore, it can be concluded that labor has a significant effect on indonesia's economic growth, so it is stated that hypothesis 3 (h3) is accepted. the labor tcount is -2.234723 < 2.10982 t-table, and obtained a probability value of 0.0400. > 0.05. furthermore, it can be concluded that labor have a significant negative effect on indonesia's economic growth, so it is stated that hypothesis 4 (h4) is accepted. based on the coefficient of determination (rsquare / r2) test, show the r-square value is 0.918217. this number indicates that the independent variables, namely: net export, investment, labor, and exchange rate, figure 1. indonesian economic growth development 2000-2020 source by : data processed, indonesian central bureau of statistics together can explain the dependent variable of 91.8%. meanwhile, only about 8.9% were influenced by other factors that do not include in the model. discussion economic growth can reflect the growth in the production of goods and services in an area at a specific time. production is then measured in terms of added value occurring in economic sectors, which we usually refer to as gross domestic product (gdp). economic growth can also be used as an indicator used to measure the level of prosperity in a country. the financial sector plays an essential role in driving economic growth in a country. if there is positive growth, it indicates that there has been an improvement in the economy compared to last year. conversely, if it shows negative, there has been a decline in the economy compared to previous year. the following can be seen from the development of indonesia's economic growth. indonesia's economic growth has fluctuated from 2000-2020. in 2001, there was a decline in the economic growth rate from 4.92% to 3.64%. this decline is due to the slowing down of poverty since the monetary crisis in 1997 and economic disparities between regions that have not been resolved. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 40 50 on the other hand, external impacts such as the terrorist attacks on 51 buildings in the wtc and the united states pentagon also contributed to lowering indonesia's gdp because the us economy was paralyzed. in 2002-2006, indonesia's economic growth grew by an average of 5%, and this growth occurred in all economic sectors. in 2010, the indonesian economy showed improvement to 6.10% from 4.62% in the previous year. this increase occurred in all sectors, and the largest contributor was the transportation and communication sector. in 2015, indonesia's economic growth fell to 4.87%. the main cause of the decline in the rate of economic growth was the domestic condition hit by inflation, which caused household consumption to slow down. the weakening purchasing power of the public due to inflation is allegedly a result of indonesia's unfavorable trade system. the indonesian ministry of trade is not quite right in making policies regarding imports. from quarter iquarter iv 2020 , indonesia's economic growth contracted quite severely. in quarter i, the indonesian economy only grew 2.97% due to a decline in the number of indonesian exports, including china and the united states. in quarter ii and quarter iii, indonesia's economic downturn got worse since the outbreak of covid-19 around the world, which disrupted all activities of buying and selling, consumption, trade, and other economic activities. it is known that in 2020, annual financial reports show that more funds are being disbursed for the benefit of the pandemic. quarter iv, quarter to quarter contracted 0.42 percent due to indonesia's trading partner countries which also experienced contraction. cumulatively, indonesia's economic growth in 2020 experienced a contraction of -2.07%. the effect of net export on economic growth the economic paradox theory supports this negative correlation between net exports and economic growth. from the results of the author's calculation, the negative meaning of the net export results can be stated that during the 2010-2020 period, the relationship between net exports and economic growth was in line with the export hypothesis as the cause decline in economic growth (exportreducing growth hypothesis). in his research, (aliman and purnomo, 2001) states that the export hypothesis is an engine for a growth economy is only a mechanism in the pessimists' perspective. it only occurs in the short term, especially in developing countries. however, in the long run, exports are not the key to solving development problems in developing countries because of; 1) exports cause developing countries' economies to be vulnerable to world economic fluctuations. 2) the possibility of protection and synthetic products made by developed countries to replace natural goods or raw materials from developing countries. 3) dualistic economic structure in the economies of developing countries in general. research conducted by (lynn, 2015) states that net exports have no effect on economic growth the same results were also obtained by (wulandari and zuhri, 2019) in his research for the period 20072017 where net exports did not affect indonesia's economic growth because the development of net exports in indonesia was still slower than other aspects, and the value of indonesia's imports was still high compared to the value of exports so that often the value of net exports from indonesia is in deficit. besides, the condition of indonesia's export commodities to date still relies on primary products that do not have added value. in addition, the elasticity of primary products exported by indonesia is still lacking, so when a trade balance deficit occurs, government intervention through exchange rate devaluation will not be effective. furthermore, net exports do not significantly affect economic growth, marked by the lack of export contributions in influencing economic growth. export commodities in indonesia still rely on the upstream industry or primary commodities where productivity does not significantly impact the indonesian economy, especially in terms of employment. in fact, not infrequently, indonesia's exportability is still supported by imported capital goods from abroad. this is what the government needs to improve so that exports can contribute significantly and have a more positive impact on indonesia's economic growth. the effect of investment on economic growth based on the author's estimation results, investment has a positive and significant effect on economic growth, and this is in accordance with the hypothesis proposed by the author in chapter ii. furthermore, it is strengthened by the harrod-domar theory, which states that investment plays an essential role in the process of economic growth, especially the dual role that investment has, namely; 1) investment can generate income 2) investment can increase production capacity jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 40 50 through increasing capital stock. the first role is assessed as the impact of demand, while the second role is the impact of the supply of investment. as long as net investment in indonesia continues to run smoothly, income and output will also increase. investment has a positive and significant impact on economic growth. this means that the proportion of domestic investment and foreign investment and the rapid growth of such investment can contribute to better economic development. a large amount of investment in the value of money or the number of projects realized can be used efficiently to increase indonesia's productivity because investment is an activity to convert potential resources into real economic strength. this positive influence given by investment to economic growth cannot be separated from the existence of regulations set by the government, which are oriented towards the ease of investing in indonesia. the enactment of the investment law marks this convenience no. 25 of 2007 concerning investment (hereinafter referred to as the investment law) which is pro to investors, by providing easy licensing, the proportion of capital ownership above 75 percent, and permits to use the land for more than 25 years, this policy taken by the government to increase investment to explore economic potential becomes a real force, using both domestic and foreign capital. the next convenience is the provision of fiscal facilities provided to business actors investing or industries that contribute to developing the quality of human resources. indonesia's incremental capital-output ratio (icor) is currently higher than other countries due to the higher growth of investment outside infrastructure. therefore, the government will continue to encourage other investments through infrastructure configuration. the results of this study are also in line with research conducted by (sri, syahrir and dahliah, 2019), which states that investment has a positive and significant effect in the gowa province. he also stated that investment is important for a region, especially in carrying out economic development, to reduce public consumption of foreign products, which may reduce the level of savings created in the future. the effect of labour on economic growth this is in accordance with solow's theory, which states that economic growth is also influenced by the labor force's growth, as seen from the population. this is because the population can explain economic growth in the long run in a sustainable manner. this positive effect is because the current workforce placement has been adjusted according to their abilities. in addition, there are multinational companies that employ unskilled workers with minimum wages. so that the company is able to reduce the cost of employee wages for the training process to minimize the cost of producing goods and services. population growth and labor force growth are considered to be one of the factors that drive economic growth. a large number of workers will increase productivity, and then large population growth will expand the size of the domestic market. the number of the labor force working is a description of the available employment opportunities in the area. the greater the available employment, it will encourage an increase in production in an area. (simanjuntak, 2017) found the same results in his research, which analyzed the effect of exports, investment, labor, foreign exchange, imports on economic growth in the 2000-2016 period. the effect of exchange rate on economic growth indonesia's economic growth. this shows that a stronger exchange rate will lead to a decline in indonesia's economic growth. based on the estimation results, the authors found that the 2000-2020 exchange rate period had a negative and significant impact. a negative impact means that the increase in economic growth is driven by a decrease in the rupiah exchange rate. or it can be said that if the exchange rate has been appreciated, it will reduce indonesia's economic growth. the exchange rate is closely related to the level of indonesian exports and imports because the export and import activities traded internationally will result in changes in the rupiah exchange rate against foreign currencies. the weakening of the exchange rate, the currency, actually positively affects indonesia's current account. if the rupiah weakens, it will encourage higher exports. this is because domestic prices will tend to be cheaper so that export demand will be higher. vice versa, if the exchange rate. conversely, if the higher the exchange rate has an impact on the prices of goods, mainly imported goods and raw materials for imported products, for domestic products, which in turn has an effect on rising prices of goods and will reduce economic growth. similar research results jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 40 50 were also found by (ginting, 2013) who stated that based on the results of long-term and short-term regression analysis, it turned out that the exchange rate had a negative and significant effect on indonesian exports. this shows that the stronger the exchange rate (appreciation) will cause the decline in indonesian exports, which will reduce indonesia's economic growth. conclusion based on the results of estimates and analyzes related to the effect of net exports, investment, labor and exchange rates on economic growth in 2000-2020, it can be concluded that: the test results show that net export has a significant effect on economic growth, investment and labor positively and significantly affects economic growth and exchange rate has a negative and significant effect on economic growth in the years 20002020. net export has a insignificant effect on economic growth because development of export in indonesia was still slower than other aspects which are often still supported by importing raw goods from abroad, indonesia's export commodities which at that time relied on primary products that did not have added value, many entrepreneurs in indonesia find it difficult to develop their business due to lack of capital and have difficulty getting raw materials for export, indonesian product unable to compete in the global market due to a lack of innovation and indonesian people like foreign products compared to domestic products. investment and labor positively and significantly affects economic growth because in 2000-2020 indonesia issued regulations to accelerate investment realization and simplify the process of foreign and domestic investment in indonesia and the fact that investment can encourage economic development in regions. furthermore, it is known that workers in indonesia have received work placements following their abilities and also companies in indonesia have provided minimum wages to unskilled workers so that they can reduce employee training costs and production costs without reducing productivity. and lastly, xchange rate has a negative and significant effect on economic growth because this indicates that the strengthening of the exchange rate will reduce economic growth because the stronger the exchange rate (appreciation) causes the prices of domestic goods to increase so that the price of imported goods and raw materials for imported products is cheaper. at this time, imports will experience an increase, and export will experience a decline which in turn will reduce indonesia's economic growth. vice versa. limitation the limitation in this study is that the data in this study is secondary data, so the author is not able to control and monitor the possibility of errors during calculations, the selection of this sample is also limited, namely the author only uses 4 variables, namely net export, investment, labor and exchange rate where there are still many other independent variables that have the possibility to affect economic growth. further research suggestion from the limitations described, there is a suggestion from the author for this research, namely that secondary data is usually used as a support for primary data, therefore sometimes we do not only use secondary data as the only source of information to solve our research problems, hoped that other variables can be added to the economic growth model in indonesia that has not been included in this study , whether it is macro or micro variables that can affect economic growth so that the results obtained can give a broader picture and to also increase the research sample to be over 20 years. implications this research is a study that discusses phenomena in the realm of macroeconomics where there are many parties. the government, companies and the community must be involved to help push indonesia's economic growth higher. so from this research, it is hoped that the governments as development authorities are required to implement policies that can increase exports as a source of foreign exchange and income, create a favorable investment climate, and conducive to economic actors. provide facilities to improve the quality of human resources in indonesia and maintain the stability of the rupiah exchange rate against the usd. for companies, must diversify their products, provide support and facilities so that workers can develop themselves from jobs with low productivity to jobs with high productivity. for society, must support and comply with every regulation taken by the government, love domestic products, promote government products, msme products or jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 40 50 tourism in indonesia, learn and read a lot to develop insight and knowledge references mulyadi, s. (2003). human resource economics in perspective development. jakarta: pt. rajagrafindo persada. sukirno, s. (2000). modern macroeconomics. jakarta: rajagrafindo persada. todaro, m. (2000). economic development. jakarta: erlangga. abdelhak errami (2019) ‘pengaruh ekspor-impor dan investasi asing terhadap pertumbuhan ekonomi indonesia dengan menggunakan nilai tukar sebagai variable moderasi periode 2010-2017’. available at: http://etheses.uinmalang.ac.id/id/eprint/15483. aliman and purnomo, a. b. (2001) ‘kausalitas antara ekspor dan pertumbuhan ekonomi’, jurnal ekonomi dan bisnis indonesia, 16(2), pp. 122–137. arifin, s. and mayasya, s. (2018) ‘faktor faktor yang mempengaruhi nilai tukar rupiah terhadap dolar amerika serikat’, jurnal ekonomi-qu, 8(1), pp. 82–96. doi: 10.35448/jequ.v8i1.4965. cahya hendra purwanggono (2015) ‘pengaruh ekspor neto, tenaga kerja dan investasi terhadap pertumbuhan ekonomi indonesia’, 151, pp. 10–17. fitriani, e. (2019) ‘analisis pengaruh perdagangan international terhadap pertumbuhan ekonomi indonesia’, jurnal riset bisnis dan manajemen, ix(1), pp. 18–26. ginting, m. (2013) ‘pengaruh nilai tukar terhadap ekspor indonesia’, buletin ilmiah litbang perdagangan, 7(1), pp. 1–18. available at: http://jurnal.kemendag.go.id/bilp/article/vie w/96/61. kartikasari, d. (2017) ‘international journal of economics and financial issues the effect of export, import and investment to economic growth of riau islands indonesia’, international journal of economics and financial issues, 7(4), pp. 663–667. available at: http:www.econjournals.com. lynn, k. k. (2015) ‘an analysis of the relationship between foreign trade and economic growth in myanmar during 1990-2014’, international journal of business and administrative studies, 1(4). doi: 10.20469/ijbas.10001-4. mikhral rinaldi, abd. jamal, c. s. (2017) ‘analisis pengaruh perdagangan internasional dan variabel makro ekonomi terhadap pertumbuhan ekonomi indonesia’, jurnal ekonomi dan kebijakan publik indonesia, 4(1), pp. 49–62. mutia s, m. n. dan s. (2016) ‘pengaruh investasi, tenaga kerja dan pengeluaran pemerintah terhadap pertumbuhan ekonomi di indonesia’, jurnal ekonomi dan kebijakan publik indonesia, 3(2), pp. 109–115. doi: volume 3 nomor 2, november 2016. nasrullah (2014) ‘analisis pengaruh perdagangan international terhadap pertumbuhan ekonomi indonesia tahun 1999-2013’, p. 203. simanjuntak, n. n. dan a. n. (2017) ‘analisis pengaruh ekspor terhadap pertumbuhan ekonomi indonesia’, buletin ilmiah litbang perdagangan, 6(1), pp. 1–20. doi: 10.30908/bilp.v11i1.185. sri, h., syahrir, m. and dahliah (2019) ‘pengaruh investasi, tenaga kerja, dan pengeluaran pemerintah terhadap pertumbuhan ekonomi di kabupaten gowa’, 2(4). teguh andiarto (2019) ‘analisis pengaruh ekspor, impor, investasi asing, nilai tukar rupiah dan cadangan devisa terhadap pertumbuhan ekonomi di indoneisa periode 1999-2018’, naskah publikasi, 126(1), pp. 1–7. utami, a. (2019) ‘pengaruh konsumsi, ekspor, dan impor terhadap pertumbuhan ekonomi regional sumatera utara’, skripsi, 1(1), p. 2019. winiarni, e. dan m. (2020) ‘pengaruh inflasi dan kurs terhadap pertumbuhan ekonomi indonesia’, 4(1), pp. 41–50. wulandari, l. m. and zuhri, s. (2019) ‘pengaruh perdagangan internasional dan investasi terhadap pertumbuhan ekonomi indonesia pada tahun 20072017’, jurnal rep (riset ekonomi pembangunan), 4(2), pp. 119– 127. yunita, y. and robiyanto, r. (2018) ‘the influence of inflation rate, bi rate, and exchange rate changes to the financial sector stock price index return in the indonesian stock market’, jurnal manajemen dan kewirausahaan, 20(2), pp. 80–86. doi: 10.9744/jmk.20.2.80-86. http://etheses.uin-malang.ac.id/id/eprint/15483 http://etheses.uin-malang.ac.id/id/eprint/15483 http://jurnal.kemendag.go.id/bilp/article/view/96/61 http://jurnal.kemendag.go.id/bilp/article/view/96/61 correspondence to maratuszahro@stiesia.ac.id received: 16 september 2019 accepted: 24 october 2019 published: 16 december 2019 jurnal akuntansi, manajemen dan ekonomi vol. 21, no. 3, pp. 42-53 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the development of financial institutions, which include the banking structure in indonesia, is expected to provide positive changes for economic growth in indonesia. financial institutions, especially banks, have an important role in the economic wheels of indonesia. the main function of financial institutions is as an intermediary institution that is very influential on a country's economic growth. the main task of bank indonesia is not only to maintain monetary stability, but also the stability of the financial system (banking and payment system). the success of bank indonesia in maintaining monetary stability without being followed by financial system stability, will not mean much in supporting sustainable economic growth. bank indonesia has five main roles in maintaining financial system stability, one of which is having a vital role in creating a healthy performance of financial institutions, especially banks. banks become intermediaries for financing the real sector, both in the context of improving the business and investment climate and in the context of creating jobs. bangkona (2014) revealed that the increasing of flowing of money in the country made the banking sector to be the most strategic sector in trade and development. banking is closely related to providing capital for business or trade, so that the wheels of the economy can continue to spin. according to him, banking has a very strategic role in creating a conducive climate, especially for improving the national economy. bangkona (2014), added that the national banking became the driving force of the national economy, especially in job creation. this can be done if banks can not only collect but also mobilize public funds or companies to be channeled into productive businesses in various sectors that absorb a lot of labor, such as agriculture, fisheries, and industry. bank indonesia as an institution that plays a role in maintaining financial system stability has several indicators used in measuring financial system stability, namely inflation and interest rates. in simple terms inflation is defined as an increase in prices in general and continuously within a certain period. firmanzah (2015), theoretically the relationship between inflation and economic growth shows interesting things to observe, inflation that is banking financial performance, inflation level, bank indonesia interest rate, and economic growth in indonesia mar’atus zahro1, mega arisia dewi2 1,2sekolah tinggi ilmu ekonomi indonesia, indonesia abstract this study aimed to test the effect of bank financial performance, inflation rates, bank indonesia interest rates on economic growth in indonesia. this type of research was quantitative. the research sample consisted of 87 conventional banks and 12 islamic banks during 2015-2017 as samples. the sampling technique used was purposive sampling method, sampling technique using certain criteria. the analytical method of this study used multiple linear regression analysis technique. the results showed that (a) financial performance which is proxied by car, bdr, and ldr of conventional banks has no effect on economic growth in indonesia, (b) financial performance which is proxied by roa has a positive effect on economic growth in indonesia, (c) proxied financial performance with car, bdr, fdr, and roa of islamic banks have no effect on economic growth in indonesia, (d) inflation has a positive effect on economic growth in indonesia, (e) interest rates in indonesia have a negative effect on economic growth in indonesia. keywords financial performance, inflation, bank indonesia interest rates, economic growth jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 42-53 too low, even at the level of deflation, will suppress economic growth and inflation that is too high will also make people's purchasing power fall resulting in the stuck of economic wheel. therefore, maintaining the stability of the inflation rate needs to pay attention to two factors, namely the level of inflation that makes economic growth to be optimum, while not making people's purchasing power down. in principle, not all inflation has a negative impact on the economy, especially mild inflation below 10%, mild inflation can encourage economic growth because inflation is able to encourage entrepreneurs to further increase their production (septiatin et al., 2016). interest rates are one of the variables that are closely watched in the economy due to their broad impact. when interest rates are low, the funds will flow more and economic growth will increase, on the contrary the high interest rates will result in low economic growth due to the less funds flowing (sundjaja and barlian, 2003). an increase or decrease in bank indonesia interest rates (bi rate) will affect interbank interest rates and deposit interest rates which will result in changes in lending rates (indriyani, 2016). this study wants to see the paradigm of the influence of banking financial performance, inflation rates, and interest rates on economic growth in indonesia. this study tries to confirm the effect of financial performance of banks (both conventional commercial banks and islamic commercial banks) on economic growth in indonesia because there is still little research that examines the paradigm. this study also tries to confirm varying results in several studies concerning the effect of inflation and interest rates on economic growth in indonesia. this study aims to obtain empirical evidence of the influence caused by the financial performance of banks, inflation rates, and the stability of bank indonesia interest rates on economic growth in indonesia. banking performance is measured using six aspects of valuation, namely capital, assets, management, earning, liquidity, and sensitivity to market risk (camels ratio). four of the six aspects of valuation are assessed using financial ratios, so this study only uses four aspects of valuation, namely capital, assets, earnings, and liquidity. based on the consideration of all the references and descriptions above, this study wants to see the effect of the banking financial performance, inflation rate, and the interest rate of bank indonesia (bi rate) on economic growth in indonesia. literature review classical growth theory the rationale for classical growth theory is economic development, which is based on a liberal system, in which economic growth is driven by a passion for maximum profits. if profits increase, savings will increase, and investment will increase which will have an impact on increasing the stock of existing capital. the scale of production will increase and increase demand for labor so that wage levels also increase. then it will result in an increase in the amount of labor supply which results in a decrease in the level of productivity and profits due to the enactment of additional legal results which are increasingly reduced due to the limited amount of natural resources. this process resulted in production, labor demand, and wage levels falling (tambunan, 2014). according to classical thought, the economy experiences a saturation point or stationary state. a situation where the economy has matured and the community is prosperous, but without further development. harrod-domar's theory harrod-domar's theory tries to broaden keynes's theory of the balance of economic growth in a long-term perspective by looking at the effect of investment, both on aggregate demand and on expanding production capacity or aggregate supply, which will ultimately increase economic growth (tambunan, 2014). harrod-domar's theory concludes that economic growth is determined by high savings and investment. the low level of savings and investment, causing the country's economic growth to be low. bank financial performance banking performance is measured using six aspects of valuation, namely capital, assets, management, earning, liquidity, and sensitivity to market risk (camels ratio). camels is an aspect that has a lot of influence on the financial condition of banks, which affects the soundness of banks. four of the six aspects of valuation are assessed using financial ratios, so this study only uses four aspects of valuation, namely capital, assets, earnings, and liquidity. capital valuation is used to ensure the adequacy of capital and reserves to carry the jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 42-53 risks that may arise. asset valuation is used to ensure the quality of assets owned by the bank and the real value of those assets. the deterioration in the quality and value of assets is the biggest source of erosion for banks. earning valuation is used to ensure the efficiency and quality of bank income correctly and accurately. weaknesses to real income are an indicator of potential bank problems. rate liquidity is used to ensure that asset and liability management is carried out in determining and providing sufficient liquidity (riva et al., 2007). inflation in implementing monetary policy, bank indonesia adheres to a framework called the inflation targeting framework (itf). flexible itf is built by remaining based on important elements of itf, one of the main elements is the announcement of the inflation target to the public. inflation remains the main target of monetary policy. inflation can be interpreted as a price increase in general and continuously within a certain period. low and stable inflation is a prerequisite for sustainable economic growth. unstable inflation will create uncertainty for economic actors in making economic decisions. empirical experience shows that unstable inflation will complicate people's decisions in consumption, investment and production, which will ultimately reduce economic growth (bank indonesia, 2018). interest rate determination of interest rates is a direct instrument of the central bank, both for loans and deposits in the banking system. bank indonesia interest rates (bi rates) are policy rates that reflecting the stance or monetary policy stance established by bank indonesia and announced to the public. the bi rate is announced by the board of governors of bank indonesia at every monthly board of governors' meeting and implemented in monetary operations conducted by bank indonesia through liquidity management on the money market to achieve monetary policy operational targets (bank indonesia, 2018). hypothesis development the effect of banking financial performance on economic growth in indonesia. lebdaoui and wild (2016), assess and evaluate the relationship between economic growth and the contribution of islamic banking in the financial markets of southeast asian countries in terms of assets and deposits. the results show there is a long-term relationship between the ratio of assets and deposits and economic growth and concludes that the size of islamic banking is associated with high economic growth. hachicha and amar (2015), gdp in malaysia is not sensitive to islamic financing. this economic result can be explained by the islamic banking financing structure which excludes profit and loss based instruments, and this turned out to be consistent with the economic reality in malaysia, because islamic banking is more involved in non-participatory activities which generally have short-term impacts. abuzayed and al-fayoumi (2016), revealed a positive and significant relationship between economic growth and each banking concentration and institutional quality. these results support the argument that banking concentration and institutional quality are important for the growth of the mena (middle east and north african) countries. h1a: conventional banking capital has a significant effect on economic growth in indonesia h2a: capital of islamic banking a significant effect on economic growth in indonesia h1b: assets of conventional banking have a significant effect on economic growth in indonesia h2b: assets of islamic banking have a significant effect on economic growth in indonesia h1c: earning of conventional banking has a significant effect on economic growth in indonesia h2c: islamic banking earnings have a significant effect on economic growth in indonesia h1d: liquidity of conventional banking has a significant effect on economic growth in indonesia h2d: liquidity of islamic banking has a significant effect on economic growth in indonesia the influence of inflation rate on economic growth in indonesia datta and mukhopadhyay (2011), stated that in the short run, inflation plays an important role to negatively affect economic growth, but on the other hand, in the long run, economic growth leads to changes (positively) in inflation. barro (2013), inflation has a negative and significant effect on economic growth and investment. syarum (2016), stated that the level of inflation affects economic growth, with a negative regression coefficient. h3: inflation has a significant effect on economic growth in indonesia jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 42-53 the effect of bank indonesia interest rates on economic growth in indonesia nurhidayah et al. (2014), stated that there is a shift in the bi rate in the indonesian economy (as long as the decline in the bi rate contributes to affecting inflation and the increase in the bi rate contributes to affecting economic growth for the period after the global financial crisis). the bi rate does not only play a role in influencing inflation but also plays a role in encouraging economic growth in indonesia. semuel and nurina (2015), stated that there is a significant and negative relationship between interest rates and gross domestic product (gdp). h4: the interest rate of bank indonesia significantly influences economic growth in indonesia methods this type of research according to data analysis was included in quantitative research, namely research that analyzes data in the form of numbers and secondary data. secondary data is a source of research data obtained indirectly through intermediary media researchers. meanwhile, according to the characteristics of the problem, this study was included in a descriptive study that was a study of problems in the form of the current facts of a population. the purpose of descriptive research was to test hypotheses or answer questions related to the current status of the subjects studied. the population in this study was all banking companies in indonesia. the sample used in this study was conventional commercial banks and islamic commercial banks that published financial statements during the 2015-2017 period. the sampling technique used in the study was purposive sampling. sampling was only limited to certain types of samples that could provide the information needed in this study. sampling was carried out based on considerations and fulfilling the following criteria: (1) the samples selected in this study were banking companies both listed and not listed on the indonesia stock exchange (idx) for the period 2015 to 2017; (2) the sample used was divided into two groups, namely conventional banking and islamic banking; (3) the bank used as a sample in this study was not a bank branch office domiciled abroad; (4) conventional commercial banks and islamic commercial banks which have published quarterly financial reports for three consecutive years, namely march 2015 to december 2017. from the sample selection process, 87 conventional commercial banks and 12 islamic commercial banks were obtained as the research sample. this study used quarterly financial statements for the period of 2015 to 2017, so that the number of observations in the study for 87 conventional commercial banks were 1044 observations, while for 12 islamic commercial banks were 144 observations. banking performance was measured using six aspects of valuation, namely capital, assets, management, earning, liquidity, and sensitivity to market risk (camels ratio). four of the six aspects of valuation were assessed using financial ratios, so this study only used four aspects of valuation, namely capital, assets, earnings, and liquidity. the independent variables in this study were used as a measure of capital, assets, earnings, and liquidity. capital was measured using capital adequacy ratio (car), assets were measured using bad debt ratio (bdr), earnings were measured using return on assets (roa), while liquidity was measured using loan to deposit ratio (ldr) for conventional commercial banks and finance to deposit ratio (fdr) for islamic commercial banks. data were taken from indonesia stock exchange gallery of stiesia surabaya and the website of financial services authority (ojk). the inflation and interest rate variables of bank indonesia in this study were taken from the data of indonesia stock exchange investment gallery of stiesia surabaya. economic growth is basically defined as a process whereby the real gross domestic product (gdp) or real income per capita increases continuously through an increase in productivity per capita (indriyani, 2016). data on economic growth in indonesia from 2015 to 2017, were taken from the data of indonesia stock exchange investment gallery of stiesia surabaya. data analysis technique data normality test data normality test aimed to test whether in the regression model, the dependent variable and the independent variable both have normal or near normal data distribution. data normality test could use a graphical approach. the method used, was to look at the normal probability plot that compared the cumulative distribution of actual data with the cumulative distribution of the normal distribution. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 42-53 classic assumption test autocorrelation is the correlation between sample members ordered by time. to detect the existence of autocorrelation in a regression model can be done through testing of the durbin watson test value (dw test), with the following conditions: (1) dw <du then there is a positive autocorrelation ; (2) dl ≤ dw ≤ du then autocorrelation did not occur ; (3) dw> dl, then there is a negative autocorrelation. multicollinearity test multicollinearity is the existence of a perfect linear relationship (exact) between the independent variables in the regression model. to detect the presence of multicollinearity that is by looking at the amount of vif (variant inflation factor) and tolerance, the vif value <10 or tol value> 0.10. heteroscedasticity test heteroscedasticity test aims to test whether in the regression model there is an inequality of variance from the residuals of one observation to another. a good regression model is homoscedasticity, or heteroscedasticity does not occur. heteroscedasticity test can use a graphical approach. if the location of the residual data does not form a certain pattern, then heteroscedasticity will not occur. multiple regression analysis the main analytical tool used in this study was multiple linear regression, because in this study the dependency of a variable (i.e. dependent variable) was studied / analyzed by estimating or predicting the average value of the dependent variable in relation to the known independent variable values. to examine the effect of banking financial performance, inflation rates, and bank indonesia interest rates on economic growth in indonesia, the specifications of this research model are as follows: model 1 regression equations for testing hypotheses 1, 3, and 4 at conventional commercial banks: peit = β0 + β1carit + β2bdrit + β3roait + β4ldrit + β5infit + β4sbiit + εit model 2 regression equations for testing hypotheses 2, 3, and 4 at islamic banks: peit = β0 + β1carit + β2bdrit + β3roait + β4fdrit + β5infit + β4sbiit + εit in this case, the notations in the equation above are explained as follows: peit : economic growth in indonesia carit : capital adequacy ratio bdrit : bad debt ratio roait : return on asset ldrit : loan to deposit ratio fdrit : finance to deposit ratio infit : inflation rate sbiit : bank indonesia interest rates hypothesis test to test the effect of the financial performance of banking, inflation, and interest rate of bank indonesia to economic growth in indonesia, t test was conducted (t test or partial test). hypothesis testing in this study used spss software. the t test was used to test the significance of the partial regression coefficients of each independent variable. the partial test criteria with the level of significance α = 5%. results and discussion data normality test the graph analysis results for normality test of model 1 and 2 can be seen in the following figure: figure 1. normal pp plot model 1 graph jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 42-53 figure 2. normal pp plot model 2 graph figure 3. the durbin watson value distribution curve model 1 the figure above shows that the value of the test durbin-watson is in the region of non-autocorrelation, so that we can conclude that a model first used in the study was free from interference autocorrelation. tests have been carried out that obtained by the durbin watson model 2 value of 1,833 with n = 117 and ‘k = 6, the significance level used (α) is 5% obtained ‘dl = 1,550 and ‘du = 1,803 and 4–‘du = 2,197 and 4–‘dl = 2,450. figure 4. watson durbin value distribution curve model 2 4–‘du = 2,169 and 4–‘dl = 2,293. the figure above shows that the durbin watson test value is in the nonautocorrelation region, so that it can be concluded that model 2 used in the study is free from autocorrelation disorders. multicollinearity test the results of multicollinearity testing conducted on model 1 obtained the following results: table 1. tolerance value and variance inflation factor model 1 variable tolerance value vif value information car 0,682 1,466 multicollinearity free bdr 0,882 1,133 multicollinearity free roa 0,910 1,099 multicollinearity free ldr 0,716 1,397 multicollinearity free inf 0,591 1,692 multicollinearity free sbi 0,585 1,709 multicollinearity free the results of multicollinearity testing conducted on model 2 obtained the following results: table 2. tolerance value and variance inflation factor model 2 variable tolerance value vif value information car 0,501 1,994 multicollinearity free bdr 0,563 1,778 multicollinearity free roa 0,634 1,577 multicollinearity free fdr 0,644 1,552 multicollinearity free inf 0,602 1,661 multicollinearity free sbi 0,507 1,971 multicollinearity free jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 42-53 tables 1 and 2 shows that the independent variables consisting of car, bdr, roa, fdr, inflation and sbi none of which have a vif value exceeding 10. this indicates that the six variables do not have a very strong attachment or relationship, so the model could be concluded the study does not occur multicollinearity disorder. figure 5. scatterplot model 1 graph figure 6. scatterplot model 2 graph figures 5 and 6 shows the distribution of points above and below the y axis, it can be concluded that the analysis model does not occur heteroscedasticity disturbance. coefficient of determination tests that have been done shows the coefficient of determination for models 1 and 2 are as follows: table 3. model determination coefficients 1 model r r square adjusted r square std. error of the estimate durbinwatson 1 ,436a ,190 ,185 2,08115 1,850 a. predictors: (constant), sbi, ldr, roa, bdr, car, inf b. dependent variable: economic growth table 3 shows the value of r square (r2) obtained at 0.190. these results show the contribution of the model used by car, bdr, roa, ldr, inflation, and sbi to the ups and downs of economic growth in indonesia of 19.0%. while the remaining 81.0% is contributed by other factors. table 4. model determination coefficients 2 model r r square adjusted r square std. error of the estimate durbinwatson 1 ,494a ,244 ,203 2,06112 1,833 a. predictors: (constant), sbi, roa, fdr, bdr, inf, car b. dependent variable: economic growth multiple linear regression analysis tests that have been done through multiple regression models 1 obtained the following results: table 5. model 1 multiple linear regression analysis model unstandardiz ed coefficients stand ardize d coeffi cients t sig. b std. error beta 1 (constan t) 1,458 1,032 1,413 ,158 car ,121 ,197 ,022 ,616 ,538 bdr ,124 ,087 ,044 1,415 ,157 roa ,186 ,085 ,067 2,179 ,030 ldr -,119 ,227 -,018 -,523 ,601 inf 4,266 ,293 ,556 14,577 ,000 sbi -2,76 ,384 -,276 -7,208 ,000 from the table data above the regression equations obtained are: peit=1,458+0,121carit+0,124bdrit+ 0,186roait–0,119ldrit+4,266infit– 2,766sbiit jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 42-53 the value of the constant (α) is 1.458 indicating that the independent variable consisting of car, bdr, roa, ldr, inflation and sbi do not change or equal to 0, then economic growth of indonesia rate is 1.458. the value of β1 obtained is 0.121 indicating the direction of a positive (unidirectional) relationship. this result shows that the higher level of car of conventional banks encourages economic growth in indonesia. the β2 value obtained is 0.124 indicating the direction of a positive (unidirectional) relationship. this result shows that the higher bdr level of conventional banking is driving the increase of economic growth in indonesia. the β3 value obtained is 0.186 indicating the direction of a positive (unidirectional) relationship. this result shows that the higher level of roa of conventional banks have led to an increase of economic growth in indonesia. the β4 value obtained is 0.119 indicating the direction of the negative relationship (opposite direction). this result shows that the higher level of conventional banks' ldr drive a decline in economic growth in indonesia. the β5 value obtained is 4.266 indicating the direction of a positive (unidirectional) relationship. this result shows that the higher level of inflation has led to an increase of economic growth in indonesia. the value of β6 obtained is -2.766 indicating the direction of a negative relationship (opposite direction). this result shows that the higher level of sbi is driving the decline in economic growth in indonesia. table 6. model 2 multiple linear regression analysis model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) -11,473 9,580 -1,198 ,234 car -1,397 ,798 -,205 -1,749 ,083 bdr -,051 ,348 -,016 -,145 ,885 roa ,215 ,207 ,108 1,040 ,301 fdr 4,037 2,394 ,174 1,686 ,095 inf 4,712 ,835 ,603 5,641 ,000 sbi -4,158 1,161 -,417 -3,581 ,001 from the table data above the regression equations obtained are: peit = -11.473–1.397carit–0,051bdrit+ 0,215roait+4,037 fdrit+4,712 infit– 4,158sbiit the value of the constant (α) is -11,473 indicating that if the independent variables consisting of car, bdr, roa, fdr, inflation and sbi have no change or equal to 0, then economic growth in indonesia rate is -11.473. the value of β1 obtained is -1,397 indicating the direction of the negative relationship (opposite direction). this result shows that the higher level of car of islamic banks will further reduce economic growth in indonesia. the value of β2 obtained is -0.051 indicating the direction of a negative relationship (opposite direction). this result shows that the higher bdr level of islamic banks will further reduce economic growth in indonesia. the value of β3 obtained is 0.215 indicating the direction of a positive (unidirectional) relationship. this result shows that the higher level of roa of islamic banks encourages an increase in economic growth in indonesia. the β4 value obtained is 4.037 indicating the direction of a positive (unidirectional) relationship. this result shows that the higher level of fdr of islamic banks has boosted economic growth in indonesia. the β5 value obtained is 4,712 indicating the direction of a positive (unidirectional) relationship. this result shows that the higher level of inflation has led to an increase in economic growth in indonesia. the β6 value obtained is -4,158 indicating the direction of the negative relationship (opposite direction). this result shows that the higher level of sbi is driving the decline in economic growth in indonesia. the effect of car on the economic growth the test results showed that the car in model 1 (conventional commercial banks) did not give significant positive effect on the growth of the indonesian economy. while the results of car test in model 2 (islamic commercial banks) showed no significant negative effect toward economic growth. the insignificance of financial performance which is proxied by car in conventional banks and islamic banks is due to the allocation of capital to generate profits that do not run effectively and the efforts of banks both conventional and islamic banks in maintaining capital adequacy make banks not easy to issue funds, so that bank capital cannot maximally channeled. this is in line with the results of anita's research (2018) which stated that in the estimation model of bank bca, bank mandiri, and bank bri, car variable does not significantly influence economic growth in indonesia. while the car variable in the bank bni estimation model significantly influences economic growth in indonesia. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 42-53 effect of bdr on economic growth the test results show bdr in model 1 (conventional commercial banks) have not a significant positive effect on economic growth in indonesia. this result shows that the higher the level of bdr, the higher the assets owned by banks that have problems because of something that causes cash flow from the debtor's business and makes it difficult for debtors to pay installments to the bank. in this case the conventional bank bdr range is between 0.0% to 0.0344% less than <2% which shows the condition of the bank's financial performance in terms of bdr in the very healthy category. although there is an increase in bdr, but it does not exceed 2%, indicating that earning assets owned by banks do not experience difficulties in cash flow caused by debtors' difficulties in paying interest and even the principal debt. the smoothness of the debtor in paying installments shows that the business undertaken has not experienced any obstacles. this makes the economy can develop well. the test results showed bdr model 2 (islamic commercial bank) have insignificant negative effect on the growth of the indonesian economy. this condition shows that the higher the level of bdr, the worse the soundness of the bank is because the assets owned have problems with cash flow. this condition will reduce economic growth in indonesia. the insignificant financial performance proxied by the bdr on the conventional commercial banks and islamic banks because the level of bdr both conventional commercial banks and islamic banks were <2% in very good health, so the rise and fall of bdr in the bank is not a difficulty in cash flow due to the debtor is able to pay interest and even its principal debt, so that economic growth in indonesia continues to run well. the effect of roa on economic growth the test results showed roa in model 1 (conventional commercial banks) give significant positive effect on economic growth in indonesia. this result shows that the higher level of roa shows the higher profit for loans given to customers due to the greater rate of return. kaushal and ghosh (2018) state that there is a stable long-term relationship between economic growth and the growth of the banking and insurance sectors in india. the test results showed roa model 2 (islamic commercial bank) have insignificant negative effect on the growth of the indonesian economy. this condition shows that the higher level of roa will further reduce economic growth in indonesia. this condition shows that the total assets used do not provide profit or loss. this result explains that in managing its assets, islamic banks have not been effective, so that the higher roa will lead to the lower level of profit sharing received by customers. this is in line with the results of anita's research (2018) which stated that in the estimation model of bank bca, bank bni, and bank bri, the roa variable significantly influences economic growth in indonesia. while the roa variable in the bank mandiri estimation model does not significantly influence economic growth in indonesia. the effect of ldr or fdr on economic growth the test results showed ldr in model 1 (conventional commercial banks) have significant negative effect on economic growth in indonesia. the higher the ratio gives an indication of the lower ability of the bank's liquidity concerned. this is due to the greater amount of funds needed to finance loans. this condition will affect depositors' trust in the bank so that the funds to be obtained by banks to be channeled through credit are reduced. the reduced credit channeled will affect economic growth in indonesia. the test results showed fdr in model 2 (islamic commercial bank) have insignificant positive effect on the economic growth in indonesia. this result shows that the higher the value of fdr in banking companies shows that the banking sector has the potential to obtain income from the higher financing provided so that the more available funds can be used again for other customers. this will make economic growth increase. the insignificance in this study was due to the large amount of financing disbursement that did not supported by good credit quality, poor credit quality could affect the profitability of the company. the amount of financing disbursed is unable to provide optimal income because the greater the amount of financing disbursed, the greater the problem loans will be faced by banks. these results also explain that the bank's management is still hampered by the lack of market share, namely sales percentage of a particular product or service controlled by a company, here the company looks too cautious, so it is not optimal to manage portfolios of financing disbursed. this situation ultimately has an impact on the ineffectiveness of financial performance jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 42-53 achievements such as fdr, which is quite good, apparently it has not been able to influence the level of profit sharing that distributed. farahani and dastan (2013) revealed that there is a positive and statistically significant relationship between economic growth and islamic bank financing in the short and long term. farahani and dastan (2013) also found that long term relationship between economic growth and islamic bank financing is stronger than a short-term relationship. el ayyubi et al. (2017) based on the results of the forecast error variance decomposition (fevd) it appears that financing in islamic banking has the greatest contribution in influencing economic growth. the influence of inflation on economic growth the test results show that inflation in model 1 (conventional banks) has a significant positive effect on economic growth in indonesia. likewise, model 2 (islamic banks) shows that inflation has a significant positive effect on economic growth in indonesia. this condition indicates that rising inflation will drive economic growth to increase. this result occurs because the indonesian government can maintain the inflation rate below 10% (mild category). indonesia average inflation rate for 2015-2017 was 4.43%. the inflation that is slow to take effect is seen as a stimulator for economic growth. the increasing price is not immediately followed by an increase in workers' wages, the profits will increase. increased profits will encourage investment in the future, and this will bring about an acceleration in economic growth. mallik and chowdhury (2001) stated that there is a positive long-term relationship between gdp growth rates and inflation in four countries namely bangladesh, india, pakistan and sri lanka. inflation at a moderate level can help economic growth, but economic growth that is too fast will lead to inflation. increasing the rate of inflation makes the price of goods will increase. this encourages producers to produce more goods, demand for production factors increased. this increase in production factors means increased employment. this will affect the income per capita which then will increase the rate of economic growth. in the long term, controlled low inflation is important for increasing economic growth. this result is in line with samuelson and william (2004) that there is a positive relationship between output and inflation, the fastest economic growth in a country occurs when inflation is low, especially if there is mild inflation below ten percent, because inflation is able to encourage entrepreneurs, to further increase its production. entrepreneurs are eager to expand their products, because with the price increases that occur entrepreneurs get more profit. increased production leads to the creation of new jobs, from this it can increase people's income. this result is in line with indriyani's research (2016) which stated that inflation has a positive and significant effect on economic growth in indonesia in the period 2005-2015. this result is not in line with daniel's research (2018) which stated that inflation insignificantly influence economic growth in the city of jambi. meanwhile, according to pratiwi et al. (2015) inflation has a significant and negative direct effect on economic growth. the effect of bank indonesia interest rates (bi rate) on economic growth the test results show that sbi in model 1 (conventional banks) has a significant negative effect on economic growth in indonesia. likewise, in model 2 (islamic banks) showing sbi has a significant negative effect on economic growth in indonesia. the high interest rates will lead to reduced investment, which means economic growth will fall, conversely if interest rates are low it will encourage a lot of investment to increase economic growth. basically, interest rates are set low so that economic growth is expected to increase. sbi interest rates are set low to provide liquidity to the banking world so that it contributes to economic growth. the more available funds will be absorbed by entrepreneurs so that the source of funding for the need to increase production is greater. for producers, high interest rates cause sources of debt funding to become heavy, so the profits derived by companies decline and company growth tends not to be as aggressive as when interest rates are set low. nurhidayah et al. (2014) stated that there is a shift in the role of the bi rate in the indonesian economy. the bi rate does not only play a role in influencing inflation but also has a role in driving economic growth in indonesia. this result is not in line with research by indriyani (2016) and pratiwi et al. (2015) which stated that interest rates have a positive and significant effect on economic growth. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 42-53 conclusions based on the results of data analysis and discussion, conclusions can be concluded that: (1) the financial performance of conventional commercial banks as measured by car, bdr, and ldr insignificantly influence economic growth; (2) the financial performance of conventional commercial banks as measured by roa has a significant positive effect on economic growth; (3) the financial performance of islamic commercial banks as measured by car, bdr, roa, and fdr have no significant effect on economic growth; (4) the inflation rate has a significant positive effect on economic growth; (5) bank indonesia interest rates (bi rates) have a significant negative effect on economic growth. references abuzayed, b. & al-fayoumi, n. (2016). bank concentration, institutional quality, and economic growth: empirical evidence from mena countries. review of international business and strategy, 26(2), 219-231. anita, f. (2018). pengaruh kinerja keuangan bank terhadap pertumbuhan ekonomi di indonesia periode 2013-2016 (studi kasus bank buku 4). jurnal ilmiah mahasiswa feb universitas brawijaya, 6(1), 1-17. bank indonesia. (2018). kerangka kebijakan moneter. accessed date 9 agustus 2018 dari https://www.bi.go.id/id/moneter/ contents/default.aspx. bangkona, a. w. (2014). ini arti penting perbankan di indonesia bagi pemerintah. accessed date 8 agustus 2018 dari https:// finance.detik.com/moneter/d-2459047/-iniarti-penting-perbankan-di-indonesia-bagipemerintah. barro, r. j. (2013). inflation and economic growth. annals of economics and finance, 14(1), 85-109. daniel, p. a. 2018. analisis pengaruh inflasi terhadap laju pertumbuhan ekonomi di kota jambi. ekonomis: jurnal of economics and business, 2(1), 131-136. datta, k. & mukhopadhyay, c. k. (2011). relationship between inflation and economic growth in malaysia – an econometric review. international conference on economics and finance research ipedr volume 4. singapore. el ayyubi, s., anggraeni, l., & mahiswari, a. d. (2017). pengaruh bank syariah terhadap pertumbuhan ekonomi di indonesia. jurnal al-muzara’ah, 5(2), 88-106. farahani, y. g. & dastan, m. (2013). analysis of islamic banks’ financing and economic growth: a panel cointegration approach. international journal of islamic and middle eastern finance and management, 6(2), 156-172. firmanzah. (2015). inflasi dan pertumbuhan ekonomi. accessed date 08 agustus 2018 dari http://www.neraca.co.id/article/ 62490 /inflasi-dan-pertumbuhan-ekonomi. hachicha, n. & amar, a. b. (2015). does islamic bank financing contribute to economic growth? the malaysian case. international journal of islamic and middle eastern finance and management, 8(3), 349-368. indriyani, s. (2016). analisis pengaruh inflasi dan suku bunga terhadap pertumbuhan ekonomi di indonesia tahun 2005– 2015. jurnal manajemen bisnis krisnadwipayana, 4(2), 1-11. kaushal, s. & ghosh, a. (2018). banking, insurance and economic growth in india: an empirical analysis of relationship from regulated to liberalized era. journal of financial economic policy, 10(1), 17-37. lebdaoui, h. & wild, j. (2016). islamic banking presence and economic growth in southeast asia. international journal of islamic and middle eastern finance and management, 9(4), 551-569. mallik, g. & chowdhury, a. (2001). inflation and economic growth: evidence from foor south asian countries. asia-pasific develompment journal, 8(1), 123-135. nurhidayah, l., kaluge, d., & pratomo, d. s. (2014). the role of bi rate and exchange rate affect inflation and economic growth in indonesia (before and after the global financial crisis). journal of basic and applied scientific research, 4(6), 249-260. pratiwi, n. m., dzulkirom, m. & azizah, d. f. (2015). pengaruh inflasi, tingkat suku bunga sbi, dan nilai tukar terhadap penanaman modal asing dan pertumbuhan ekonomi di indonesia. jurnal administrasi bisnis (jab), 26(2), 1-9. rivai, v., veithzal, a. p. & idroes, f. n. (2007). bank and financial institution management. jakarta: pt rajagrafindo persada. samuelson, p. a. & nordhaus, w. d. (2004). ilmu makro ekonomi. edisi bahasa indonesia. jakarta: pt media global edukasi. semuel, h. & nurina, s. (2015). analysis of the effect of inflation, interest rates, and exchange rates on gross demestic product (gdp) in indonesia. proceedings of the international conference on global business, economics, finance, and social sciences. thailand. septiatin, a., mawardi, & rizki, m. a. k. (2016). pengaruh inflasi dan tingkat pengangguran terhadap pertumbuhan ekonomi di indonesia. i-economic, 2(1), 50-65. sundjaja, r. & barlian, i. (2003). manajemen keuangan 2. yogyakarta: bpfe yogyakarta. syarum, m. m. (2016). inflasi, pengangguran, dan pertumbuhan ekonomi di negara-negara islam. jurnal ekonomi islam, 7(2), 27-44. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 42-53 tambunan, t. t. h. (2014). perekonomian indonesia: kajian teoretis dan analitis empiris. bogor: penerbit ghalia indonesia. correspondence to dewimaryam@stiesia.ac.id received: 15 september 2019 accepted: 25 november 2019 published: 16 december 2019 jurnal akuntansi, manajemen dan ekonomi vol.21, no.3, pp. 54-60 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction there are several sectors of manufacturing companies in indonesia, for example: base industry and chemical sector, diverse industry and consumer goods industry sectors. companies on consumer goods have significant impact due to the community’s buying power as the result of gdp growth, interest rate, and a nation’s macro economy performance (wulandari, 2012). with the supporting conditions, companies on the sector of consumption goods industry in indonesia are attempting to benefit from existing opportunities in order to gain profit by improving their sales levels. the usages of capital and debt are considered as the early stage of establishing a company. brigham and houston (2001) state that financial capital structure is an alternative way that can be used to improve profit. the application of debt for investment as an additional way to finance company assets is perceived to advance company profit. the company assets can be used to generate profit. therefore, the profit available for equity holders becomes larger (brigham & houston, 2001). when the interest expense is enormous, the operational profit is not adequate. so the financial difficulty problems will arise and lead to the declining company performance. however, debt interest expense can also be seen as tax reduction which can increase company value (brigham & gapenski, 1997). in brief, it is safe to say that debt can increase a company performance. a company that is considered as a large size is one that involves large assets and only need discretionary expense. the discretionary expense againts net sales is the proxy to measure agency cost. with the reduction of discretionary expense, the company performance will improve, and the company profit will increase (jensen & meckling, 1976). in addition, a company performance presents the company ability to generate profit from assets, equity, and debt. company performance is defined as the company’s working achievement. another way to measure a company performance can be applied with return on equity (roe). this is the measurement on company profitability that is important to measure the return to shareholders agency cost as an intervening variable in the impact of capital structure and company size on company performance dewi maryam1, yesa cahayaning ramadhani2 1,2sekolah tinggi ilmu ekonomi indonesia, indonesia abstract this research was aimed to examine agency cost as an intervening model between capital structure and company size towards the company's performance. data was collected through non participatory observation method using criteria on issuing consecutive financial statements within the research period. having the complete financial data that was consistently needed during the research period. the company was not listed during the research period. in this study, the data analysis was conducted using quantitative data analysis with compared ratios and path analysis. the analysis was used due to its possibility of intervariable relationships in a linear model. the research hypotheses were the effect of capital structure on the company performance, the company size on the company performance, the capital structure of agency cost, the company size on agency cost, and the agency cost on the company performance. as the results, there were direct impact of capital structure, company size, and agency cost on the company's performance. in contrast, there was an indirect impact of capital structure, the size of the company on the company's performance through agency cost as the intervening variable.. keywords discreationary expense, return on equity (roe), leverage, company size (size) jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 54-60 (jones, et al, 2009). indeed, there are several functions in a company, for example: the organization function and the ownership function. accordingly, jensen and meckling (1976) state that the separation of organization function and the ownership function is vulnerable to agency conflict. agency conflict occurs when a manager tends to make decisions that is profitable to himself rather than to the shareholders (jensen & meckling 1976, myers 1977). agency conflict may cause agency cost, which is the adequate incentive given to the manager as well as the supervision costs to avoid hazard. agency conflict may occur between shareholders and managers as well as between shareholders and creditors (husnan, 2001). a company can be financed by debt and equity. the debt finances a company that is not always similar to liabilities and payable. the debt that causes interest expense may reduce tax. in other words, interest expense can be reduced from income so that profit before tax becomes lower and the tax becomes smaller. if the funding uses equity, there will be no expense that can reduce company tax. referring to the explanation regarding the effects of company profit, capital, debt, company asset, and discretionary expense, this research is conducted to investigate agency cost as a an intervening model of capital structure and company size to company performance. theoretical framework capital structure capital structure is the permanent funding that consists of long-term debt, preferred stock, shareholder capital. book value of shareholder capital includes common stock, paid-up capital or surplus, retained capital and accumulation. capital structure is a part of financial structure (sawir, 2005). according to sjahrial (2008), the capital structure is the permanent funding that involves long-term debt, preferred stock, shareholder capital. in general, the capital structure of a company consists of several components. moreover, the long-term debt is a debt with repayment due date for more than 10 years. this component includes mortgage and obligation debts. then, the shareholder capital includes preferred stock and common stock. company size brigham and houston (2001:119) define company size as the average of total net sales for that year up to several years. company size is the characteristic of a company that is related with the company structure. according to jones, et al (2001) company size is described as how big or how small a company is of which can be seen from how big or how small capital that is used, total asset that is owned, or total sales that is gained. agency cost agency relationship is a contract of which there is a person or more investors (that is called as the principal) and another person (that is called as the agent) to take action on behalf of the principal and upon whom is given the authority to make decisions. the separating ownership function and organization function may cause agency conflict since the separation can create conflict of interest between shareholders and company manager. agency problem between shareholders and manager potentially occurs when the manager does not own the majority of stock in the company. the shareholders perceive the manager to work for maximum wealth of shareholders. however, it is possible for the manager to act not for the interest of shareholders but for his own interest and wealth, work safety and other benefits, and charge them to company expense (jensen & meckling, 1976). company performance company performance is the whole state display of a company in certain period of time, which is the result or achievement affected by company operational activities in using its owned resources (helfert, 1996). performance is a term used for a part of or all actions or activities of an organization within a period with reference to standard amount of past or projected expenses, based on management efficiency, responsibility or accountability (ceacilia, 2004). previous researches there are several previous researches used as reference of this research. for example, a research conducted by patti (2006) who investigate capital structure and company performance as a new approach to agency cost theory and its application in banking industry. this includes a theory of company governance that predicts leverage affecting jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 54-60 agency cost and company performance. they also propose a new approach to examine this theory by using profit efficiency, or how closed a company is. profit must be based on the best practice of a company in regard with the same exogenous condition. they also become the first research in using simultaneous equation model that contributes to the reverse causality of performance to capital structure. finally, they find that the data in us banking industry is consistent with the theory, and the result is statistically significant and economically strong. hypotheses the effect of capital structure on agency cost the relation between debt and agency cost in capital structure is mentioned by jensen and meckling (1976). the use of debt creates supervision from external parties or the bank which can motivate the manager to operate the company more efficiently. in this way, agency cost decreases and company performance increases. based on that statement, the research hypothesis can be formulated as follows: h1: capital structure (leverage) affects agency cost. the effect of company size on agency cost the relation between debt and agency cost in capital structure is mentioned by jensen and meckling (1976). the use of debt creates supervision from external parties or the bank, which can motivate the manager to operate the company more efficiently. in this way, agency cost decreases and company performance increases. based on that statement, the research hypothesis can be formulated as follows: h1: capital structure (leverage) affects agency cost. the effect of company size on agency cost fachrudin (2011) finds in his research that company size has a negative significant effect on agency cost. if the company size improves the economic scale, performance will probably increase through expense reduction. therefore agency cost will decrease. based on that statement, the research hypothesis can be formulated as follows: h2: company size affects agency cost. the effect of capital structure on company performance the use of debt in investment as an additional way to finance company assets is expected to improve company profit, as company assets can be used to generate profit. debt causes interest expense. interest expense is a tax reduction which can increase company value. in this way, it is safe to say that debt can increase performance. based on that statement, the research hypothesis can be formulated as follows: h3: capital structure (leverage) affects company performance. the effect of company size on company performance lin (2006), wright et al. (2009), and calisir et al. (2010) find that company size has positive effect on company performance. this indicates that good performance in big companies is more promising. instead, talebria et al. (2010) finds that company size has no effect on company performance. based on that statement, the research hypothesis can be formulated as follows: h4: company size affects company performance. the effect of agency cost on company performance interest expense that is one of the components of discretionary expense can reduce tax which leads to the improvement of company performance. when discretionary expense decreases, company profit will improve, so the company performance will also increase. fachrudin (2011) and immanuela (2014) find in their research results that agency cost has no effect on company performance. based on that statement, the research hypothesis can be formulated as follows: h5: agency cost (discretionary expense) affects company performance. method this section presents types of research, research time and place, research target/subject, procedure, data, instrument, and data collection technique, data analysis technique. this research applies an explanatory research that aims to explain the relations between variables, such as: capital structure, company size, agency cost and company performance of manufacturing companies in the sector of consumer goods which are listed in indonesia stock exchange through hypothesis test and explanatory. the deter jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 54-60 mination of explanatory research is in regard with sekaran (2006). this research is conducted with the intention of explanatory and confirmation by providing causal explanation or relations between variables through hypothesis test. this research includes manufacturing companies in the sector of consumption goods who have been publicly acknowledged in the indonesia stock exchange during 2013 to 2017. the samples used in this research are saturated samples of which all members of research population are used as research samples. this research is an explanatory research. its determination is due to what is described by sekaran (2006) in the intention of explanatory and confirmation, by providing causal explanation or relations between variables through hypothesis test. the type of data in this research is secondary data. the data is collected from the finished forms of data, including publication and documentary. the secondary data were collected from indonesian capital market directory (icmd) and annual reports of manufacturing companies in the sector of consumer goods from 2010 to 2014 that were collected from indonesia stock exchange at brawijaya university. the stages of data collection are as follows. first stage is conducted by collecting the necessary secondary data consisting of financial reports from indonesian capital market directory (icmd) of manufacturing companies in the sector of consumer goods and attachments of financial reports in relation to this research. the second stage is conducted by calculating the necessary variables, such as capital structure, company size, agency cost, and company performance taken from financial reports and indonesian capital market directory (icmd). all data are then analyzed. the data analysis technique that is used in this research is path analysis. this aims to analyze the relational pattern between variables to find out the indirect effect of independent variables on dependent variables that are mediated with intervening variables. before processing data, this study should firstly be free from classic assumption test. classic assumption test is conducted to estimate model parameter value to be declared valid. the classic assumption test should also be fulfilled are normality assumption test, autocorrelation, multicollinearity, and heteroscedasticity. results and discussion based on the theoretical framework, the empirical data and analysis of research result, the relations of capital structure, company’s size with agency cost and company performance can be discussed as follows. the effect of capital structure on agency cost capital structure is measured by using long-term debt against equity that induces fixed expense for company. according to mahendra (2011) capital structure is the permanent expense reflecting the balance between long-term debt and the company’s own capital coming from both internal and external sources. capital structure that is the most suitable for company with high growth level is different from company with low growth level. company with high growth level, in its relation with capital structure, should apply equity as its financing source to avoid agency cost between shareholders and company management; on the contrary company with low growth level should apply debt as its financing source as the use of debt will require the company to pay the interest regularly. paying the interest regularly will reduce the interest expense which leads to minimizing discretionary expense which in this research is used as the agency cost proxy. agency theory explains that a company is vulnerable to agency conflict that is resulted by the difference in interest of manager and owners or shareholders. in order to resolve agency conflict, agency theory describes two ways to control the company by increasing manager ownership to align owner’s interest and by using debt as a control against manager (jensen & meckling, 1976). this research also finds that the direct effect of capital structure on agency cost is an insignificant one. the descriptive statistical analysis shows that the value of agency cost is higher than capital structure, which indicates that the company in conducting its operation uses more discretionary expense (operational expense, non-operational expense, interest expense, salary and wages) against net sales than debt. therefore, the value of r square of capital structure to agency cost is small, showing that agency cost is not able to affect capital structure. this is due to the manufacturing companies in the sector of consumer goods using more of its own capital than its debt. the result of this research is in line with immanuella (2014) that capital structure does not have an effect on agency cost. in con jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 54-60 trast, it is not in line with researches which are conducted by fachrudin (2011) and by campbell et al (2003) that capital structure has a significant effect on agency cost. the result of this research is also in accordance with the theory defined by brigham and daves (2004) stating that the high use of debt in capital structure may bring bankruptcy to the company which can reduce agency cost as manager will cut less important cost to be able to pay company’s debt. however, the result of this research is not in line with the theory by jensen and meckling (1976) and cao (2006) arguing that the use of debt in capital structure may prevent any unnecessary cost and encourage the manager to operate the company more efficiently. the effect of company size on agency cost brigham and houston (2001) define company size as the average of total net sales for that year up to several years. company size is the characteristic of a company that is related with the company structure. according to jones, et al (2001) a company size describes how big or how small a company is which can be seen from how big or how small capital that is used, total asset that is owned, or total sales that is gained. for this, oyelere et. al. (2001) explain that company size is the proxy for several company characteristics that several reasons have been mentioned in literatures supporting the relation between company size and information disclosure conducted by companies. in this research, company size is measured from total asset owned by a company. the total asset is defined as all resources that are owned by a company as the result of past transactions and is expected to give future economic benefit for the company (iai, 2009). according to jensen and meckling (1976), the agency cost is the prices incurred by companies to minimize agency conflict. agency cost is proxied by discretionary expense ratio. discretionary expense is the expenditure incurred based on a manager’s discretionary. this expense includes operational expense, nonoperational expense, interest expense, salary and wages. therefore, when a company uses more of its total asset, the use of discretionary expense will be less. the negative value of coefficient path indicates that the bigger the company size, the less the agency cost tends to be. on the contrary, the smaller the company size lead to the more the agency cost. in this research, the company size has a negative effect on agency cost. the indications are drawn that 1) big companies can wisely organize the discretionary expense for efficiency, 2) the existence of economy scale, and 3) big companies have bigger net sales rather than small companies. moreover, this study find that the direct effect of company size on agency cost is a significant one. this is supported by the result of descriptive statistical analysis which figures out the dominant or high company size value. this can be concluded that the company uses the big total asset to lead for discretionary expense. the test result is in line with findings of lin (2006). this research is also in line with zhang and li (2008) who find negative significant effect of company size on agency cost. big company size requires small discretionary expense. moreover, big companies attract more attention and they are automatically under bigger public observation. in other words, the big companies have to disclose larger information in order to reduce agency cost. therefore, such situation demands companies have enormous responsibility to both public and government, to operate with high professionalism, which can decrease the agency cost. the effect of capital structure on company performance capital structure can be used as an external control tool in the effort of achieving company goals which are maximizing company performance and reducing the chances for a manager to act against shareholders’ interest (jensen, 1996). capital structure is measured using debt against equity. the debt is employed as a control by shareholders in order to make the manager more responsible in organizing the company. when a company falls into bankruptcy, a manager may lose their job. obviously, a company performance is the ability of a company in organizing its existing resource which gives value to the company. by finding out the performance of a company, one can measure the efficiency level and productivity of the company. the measurement of company performance can also be essential to address a company development. in this research, the company performance is measured using net profit against equity. brigham and houston (2001) state that financial capital structure is an alternative way to increase profit. the use of debt in invest jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 54-60 ment is considered as an additional way to finance company assets. this is expected to improve company profit, since the company assets can be used to generate profit. debt causes interest expense. interest expense can reduce tax which can increase company value that will increase company performance. while according to theory by jones et al. (2009), the capital structure can increase yields for shareholders (favorable leverage), but it can also be harmful to shareholders (unfavorable leverage). the result of this research indicates that the direct effect of capital structure on company performance is not a significant one. from the descriptive statistical analysis, the capital structure with a value is presented lower than the company performance. this indicates that the company uses its own capital more than its debt. therefore the company cannot reduce interest expense which cause the increasing tax and lead to the decreasing company performance. accordingly, this research is not in line with the theory of jones et al. (2009) stating that capital structure affects company performance since debt financing creates interest expense that must be paid. the research cannot show that the capital structure can lower yields for shareholders. this means that debt financing is not used effectively which leads to less profit. from the indirect result in table 5.12, this study convinces that agency cost cannot moderate the capital structure to company performance. when the capital structure affects company performance, the result is not significant. this means that the leverage which uses debt is not effective in indonesian manufacturing companies, particularly in the consumer goods industries. this indicates that the use of debt is not a factor that can improve company performance. this will decrease a company profit as the company performance is decreasing since the manager who is also a shareholder does not use debt effectively. in turn, this will affect the manager’s own wealth. debt can be the control for a manager who makes decisions not to decrease company profit. the effect of company size on company performance the size of a company can be measured through the company’s wealth or assets. in this study, the measurement on company refers to the natural log of total asset. a big company with large asset can gain larger access to get funds in capital market than a small company, which can be used in company operations. this larger access may enable company to improve productivity which leads to company performance advancement. company assets are generally practiced to measure the size of a company. moreover, company assets represent the rights and obligations as well as the company capital. a company which is determined big in size is generally known to have big assets. the asset turnover of big companies tends to be faster due to the considerable amount of sales. more sales means that company performance is more productive. then, the company performance is measured by using net profit against equity. furthermore, this research results that the direct effect of company size on company performance is not significant. from the descriptive statistical analysis, the value of company size is seen lower than company performance. owing to all companies possess large assets, they depend more on capital in order to improve company profit. thus, this research is not in line with the finding of gray et. al, (2008) stating that big companies will reveal more information than small companies. the research result is not accordance with research of immanuela (2014) arguing that companies with big assets represent the company stability. in brief, the well-established companies usually have a stable financial condition. the big company can raise the economy scale and reduce information collection and processing cost. a big company with big resource will conduct larger information disclosures and will be able to afford financing the information availability for internal needs. the information availability can also be used to provide facts for external parties, such as: investors and creditors. so spending more funds to reveal further information can be avoided. therefore, big companies do not always have lower information production cost compared to small companies since not all big companies have a stable financial condition. from the indirect result this study finds that agency cost can moderate company size to company performance. however, company size does not solely show significant effect on company performance. this is because the agency cost is the control from management side, the supervision functions and control in using discretionary expense against net sales will lead to the improvement of company performance. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 54-60 the effect of agency cost on company performance agency relationship is a contract in which involve one person or more as investor(s) (that is called principal) and another person (that is called agent) to take action on behalf of the principal and upon whom is given the authority to make decisions (jensen & meckling, 1976). in a company, there are several functions, such as the organization function and the ownership function. jensen and meckling (1976) argue that the separation of organization function and the ownership function is highly vulnerable to agency conflict. agency cost in this research applies the ratio proxy of discretionary expense against net sales. discretionary expense is the expense that are based on the discretionary of a manager. interest expense is one of the components of discretionary expense that can reduce tax; tax reduction can improve company performance. while the company performance is measured using net profit against equity. when the agency cost decreases, the company profit increases, and the company performance also improves. when the agency cost decreases, there is tendency that company performance decreases. the ignorance of agency cost can cause a reduction in competitive profit which leads to lessening company performance. the result of this research indicates that agency cost has a significant effect on company performance. the descriptive statistical analysis evidences that the agency cost of the average company is larger than company performance. this value can increase company performance. therefore, the research result is in line with the finding of lin (2006) claiming that agency cost is the rates as the responsibility of shareholders so that management can efficiently organize company to raise its value or to increase shareholders wealth. the research result is in accordance with kim and lee (2003) who find the closed relations between agency problem and company performance. this means that company burden affects company performance. the research result is in line with wright et al. (2009) who finds that agency cost has negative significant effect on company performance. in other words, if the agency cost is left to grow uncontrollably, it will reduce the achievement of competitive profit which has negative effect on performance. conclusions the coefficient value of the capital structure variable path is 0.093, so the coefficient value indicates the amount of capital structure contribution that directly influences agency cost. the effect is statistically significant negative, since t_count (1.084) <t_tabel (1.9995) is supported by the value of sig t (0.281)> 0.05. as the result, the hypothesis (h1) stating there is an effect of capital structure (x1) on agency cost (y1) is rejected. the path coefficient value of the company size variable is -0,596, the coefficient value indicates the size of the contribution of company size which directly influences agency cost. the effect is statistically insignificant, because t_count (-6.966)> t_tabel (1.9995) is supported by the value of sig t (0,000) <0.05. thus, the hypothesis (h2) which states that there is an influence of company size (x2) on the agency cost (y1) is accepted. the coefficient value of the capital structure variable path is -0.120; the coefficient value indicates the amount of capital structure contribution that directly influences the company's performance. the effect is statistically insignificant, because t_count (-1.571) <t_tabel (1.9995) is supported by the value of sig t (0.120)> 0.05. therefore, the hypothesis (h3) which states that there is an influence of capital structure (x1) on performance company (y2) is rejected. the coefficient value of the company size variable path is 0.142; the coefficient value indicates the size of the contribution of the company size which directly influences the company's performance. the effect is statistically insignificant, because t_count (1.508) <t_tabel (1.9995) is supported by the value of sig t (0.135)> 0.05, so the hypothesis (h4) indicating that there is an influence of company size (x2) on company performance (y2) is rejected. the path coefficient value of the agency cost variable is -0.593; the coefficient value indicates the amount of agency cost contribution that directly influences company performance. the effect is statistically significant negative, because t_count (-6.251)> t_table (1.9995) is supported by the value of sig t (0,000) <0.05, so the hypothesis (h5) that there is an influence of agency cost (y1) on performance company (y2) is accepted. from the descriptions above, this study concluded that h2 and h5 are accepted while h1, h3, h4 are rejected. the table 5.14 is a summary of the hypothesis and the coefficient of influence between exogenous varia jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 54-60 bles and endogenous variables. from this study, the authors provide several suggestions to interested parties. it is important for both the stock exchange and institutions in relation to ensure management of capital market and companies continuing good corporate governance. the open access of information about the company is very essential to establish investors’ trust so they intend to invest in the capital market. information about fundamental condition of companies as the object of investment is essential for investors and potential investors in using a technical approach. by understanding company's fundamental conditions, the investors and potential investors can find real condition of the company through its financial statements. profitability has been an important reference for investors to determine the company's performance. however, the investors also need to know how the company manages its assets productively through its liquidity. therefore, it is important for investors and potential investors to have basic financial management knowledge, particularly financial ratios, to help them analyzing company performance through financial statements. companies should have large resources in making wider disclosure of information and in financing the provision of information for internal purposes. the information can be appropriate materials to disclose information to external parties, such as: investors and creditors. thus, so the company does not require higher additional cost to make wider disclosure. further researchers can examine the effect of capital structure on agency costs within companies experiencing financial distress. therefore, the empirical evidence may show increasing debt that reduce clearer agency costs. future studies can also apply path analysis techniques to analyse non-linear relationships as explained by hayes and preacher (2010) to find out deeper information on the obtained research data to get better test results if the data indicates a relational non-linear data. the results of this study provide several implications that occur in this study. practically, the manufacturing companies in the consumer goods industry sector in indonesia have been indicated having agency problems in accordance with the observed samples. the increasing debt cannot reduce agency costs. a high capital structure is less attractive to managers since it imposes a higher risk for managers rather than for public investors. this opinion is supported by lin's research (2006) assuming that managers also acts as the owner of the company. when a company goes bankrupt due to the defaulted debt, the manager also bears the costs of bankruptcy. practically, the company size affects the agency cost. conflicts between shareholders and managers can linfluence agency costs. in minimizing the occurrence of agency costs, the managers maximize the usage of company assets in carrying out company operations so that the company pays interest expenses and will reduce corporate taxes. this will improve company performance and can automatically maximize company profits. the use of debt cannot increase the burden and does not significantly improve company performance. the managers should consider the trade off between interest expense and tax savings. thus, the managers employ debt as an alternative capital to reduce interest costs and taxes that can increase company value. large companies may not necessarily produce better performance. the large companies do not necessarily produce better performance even though large companies can save their discreationary expenses. therefore, the investors and prospective investors do not concern on the size of company for investment. the theory of brigham and weston (1994) state that a large and established company is easier to go to the capital market. in turn, this addresses greater flexibility and gains investors’ broader trust. it can be concluded that companies with large assets are not able to make greater profit if they are not followed by the result of good operational activity. agency cost is practically a significant effect on the company's performance. in other words, the company's burdens affect the company's performance. the interest expenses affect performance of the company. in the manufacturing company of the consumer goods sector, it is known that company size and agency cost affect the company's performance. this indicates that the company with a large scale will influence a slight burden of the company (discreationary expense) so that the roe of a company's performance will be high. agency cost is also a benchmark for the company's performance to increase the company's profit. furthermore, the investor will tend to invest into a company that have maximum profit as the investor's stock. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 54-60 there are some limitations that are apparent from this research. some actions cannot be conducted due to some reasons that affect imperfections of research results. some reasons addressing the low value coefficient of total model of research may refer to the interference linearity assumptions in 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(1996). affective event theory: a theoretical discussion of the structure, causes and consequences of affective experience at work. research in organizational behavior, 18(1), 1-74. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 54-60 welton, r. e., lagrone, r. m., & davis, j. r. (1994). promoting the moral development of accounting graduate students: an instructional design and assessment. accounting education, 3(1), 35-50. west, t., ravenscroft, s., & shrader, c. (2004). cheating and moral judgment in the college classroom: a natural experiment. journal of business ethics, 52(2), 173-183. wong, s.-s., & law, k. s. (2002). the effects of leader and follower emotional intelligence on performance and attitude: an exploratory study. the leadership quarterly, 13(3), 243-274. correspondence to received: march, 12, 2020 accepted: march, 21, 2020 published: march, 30, 2020 jurnal akuntansi, manajemen dan ekonomi vol 22, no 1, pp 39-43. published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the tourism industry has become an important concern since president joko widodo took office. this is because tourism potential in indonesia is still not widely known by the public and foreign tourists even though the tour has its own uniqueness and is also in line with president joko widodo's program for the development of creative industries in indonesia until 2025. the pariwista office also said that tourism development in an area could developing the economy of the community around this can also reduce poverty. thus there is an expected economic influence as a result of this industrial development. the existence of the tourism industry should contribute to society because of the relationship between tourism and local communities. as stated by the sultan (2013) the empowerment of local culture as a force in tourism development is one of the emerging trends in tourism management today. increasing the number of tourists from domestic and foreign countries can boost the regional original income (pad). the relationship between the tourism sector and pad is a functional relationship, because the tourism sector is one of the sectors that gets top priority in order to improve the regional economic structure and can increase independence and competitiveness. thus it is expected to make a sizeable contribution to pad. the successful development of the tourism sector, means it will increase its role in regional revenue, where tourism is the main component by taking into account also the factors that influence it, such as the number of attractions offered, the number of tourists visiting both domestic and international, hotel occupancy rates, per capita income, the size of the hotel and restaurant tax, and the size of the tourist attraction fees. the tourism industry has good prospects for regional economic development. this journal aims to describe the development of the tourism industry and economic activities related to this industry in the banyumas regency. research methods this study uses descriptive research on tourism in the banyumas regency and the surrounding economic activities. the data is taken from secondary data from the central bureau of statistics (bps) of banyumas regency. the data used in the form of hotel occupancy rates, length of stay of tourists, and number of tourists. the data is used to find out how big the impact of tourism is on society. banyumas regency tourism potential khosy zufat annaaf1 1 faculty of education vocational program, information system, universitas brawijaya abstract in line with the government's program to develop creative industries in indonesia until 2025. the tourism industry is expected to be one of the triggering industries for creative economic growth. this journal aims to provide an overview of the tourism industry and economic activities related to this industry in the banyumas regency. the data used in the form of hotel occupancy data, length of stay of tourists, and number of tourists taken from the banyumas regency bps. the data is used to find out how big the impact of tourism is on the community. banyumas regency's tourism industry still relies on natural tourism. some of the attractions that are in need of attention of local governments because of conditions that are not maintained, thus reducing the interest of visitors. various tourism potentials are still being developed such as a culture that blends from javanese culture and sundanese culture and also a combination of natural tourism and cultural tourism can develop keywords creative industries, nature tourism, bps, and industry jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 39-43 results and discussion banyuams regency has a myriad of tourism that is not yet known by the domestic community and foreign tourists. in banyumas regency there is a diversity of tourism from natural tourism, religious tourism, to educational tourism, namely museums. of course to increase tourists to the banyumas regency requires an appropriate marketing strategy and this must be done from the layers of government, related agencies, and the community of banyumas in particular. there are several marketing strategies that can be carried out such as: (1) conducting island promotions to various mass media, namely print media, electronic media and also online media. this is because the mass media has a strong enough influence on the target especially tourists; (2) making booklets, leaflets and guide books containing tourism information in banyumas regency; (3) promoting and cooperating with airlines and several airports in indonesia. the banyumas regency culture and tourism office conducted promotions to several international airports, namely yogyakarta, semarang and solo; (4) the culture and tourism office of banyumas regency conducts outreach and socialization for tourism actors. the increase in tourism previously in 2009 from 13 tourist sites to 14 tourist sites in 2013. in 2013 the banyumas district government allowed the construction of andhang pangrenan recreational park tourism in purwokerto. the existence of a city park does not seem to have an impact on foreign tourists. this park functions more as a place of recreation for local people. as the data in table.1 from year to year, baturaden lokawisata has always been a tourist center visited by tourists. tours with beautiful natural scenery and various cultural attractions that are displayed always attract visitors. not far from the area lies the tourist attraction pancuran seven and pancuran tiga. both of these locations offer natural hot spring tourism. to reach this location tourists have to walk along more than 5 km. the scenery along the road leading to the foot of mount slamet and the cool air and then there are hot spring baths seems attractive to tourists by remembering the facilities provided on these two objects are very simple. attractions around the baturaden area are all managed by the banyumas regency government. the facilities provided by the government are simple and modest. banyumas regency also offers cultural tourism which includes religious tourism, museums and cultural sites. cultural tourism of the wayang sendang mas museum features various puppet collections in the area around banyumas. included in this tour package is a search for banyumasan culture. the number of historical museum tourists decreased in 2010. this could happen because of poorly maintained tourist location conditions. this museum is located in the middle of a city forest park and because of the condition of the forests that are currently untreated, rarely knows where it is. then according to the data in table.1 the wayang sendang mas museum has increased in 2011 to 2012 there can also be an improvement in the place of the wayang sendang mas museum by the banyumas regency government. religious tourism began to be visited a lot. saka tunggal mosque has been attracting tourists from year to year. various improvements and tour packages are offered around the location making it interesting. tourists can enjoy religious tourism as well as traditional cultural offerings in banyumas regency. kalibacin hot springs do not show a significant upward trend in visitors. from 2009 to 2013 only around 5900 to 6000 visitors each year. this is due to the lack of attention of the banyumas regency government to the kalibacin hot spring. visitors are only given a hot spring bathing suit facility without any other facilities being the center of attention to come to the kalibacin hot spring. visitors to the kalibacin hot spring are only visited by the surrounding community. this is due to the lack of attractive marketing strategies carried out so far by the banyumas regency government to attract foreign tourists. table 1. number of tourism object visitors in banyumas regency for the period of 2009-2013 tourism site visitors (people) 2009 2010 2011 curug cipendok 52349 5101 3 48446 telaga sunyi 3415 3020 3089 pancuran tiga 25111 3860 6 40634 pancuran tujuh 21894 2380 9 17568 bumi perkemahan baturaden 1750 2569 1213 lokawisata baturaden 346873 3528 23 39329 1 jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 39-43 kalibacin 5988 5859 5853 wanawisata baturaden 13066 9136 10108 curug gede 22605 2071 4 23729 curug ceheng 12950 1223 4 11978 museum wayang sendang mas 1702 1197 1989 thr pangsar soedirman 12356 1130 6 8833 the mosque saka tunggal 5765 8433 12573 recreational park andhang pangrenan 0 0 27307 6 tourism site visitors (people) 2012 2013 curug cipendok 50986 48450 telaga sunyi 3670 4496 pancuran tiga 50539 53507 pancuran tujuh 38208 20714 bumi perkemahan baturaden 1359 1709 lokawisata baturaden 44285 5 43311 6 kalibacin 5868 6002 wanawisata baturaden 10550 11796 curug gede 24234 24803 curug ceheng 10654 8319 museum wayang sendang mas 1983 1124 thr pangsar soedirman 10587 9196 the mosque saka tunggal 11072 13388 recreational park andhang pangrenan 28948 6 23002 8 source: bps of banyumas regency various forms of promotion can be done by local governments to attract tourists. utilization of local cultural activities such as the upload ceremony before fasting or jaro rojap ceremony to capture the interests of foreign tourists and hand in hand introducing the local culture of the community also offers the beauty of existing natural attractions. local governments can take advantage of activities carried out by the government and the provincial government to promote the tourism it has. the launch of the visit of central java in 2013 did not include the banyumas district in the tour. borobudur is an icon of tourism in central java which is already very well known in the world followed by cultural tourism in solo so that these two regions are included in the travel agenda list. however, the banyumas regional government can send various forms of promotion such as brochures as a way of promoting its tourism industry which is entrusted at tourist sites that are included in the agenda of the central java tourist route. the existence of the 2013 central java visit program opens banyumas opportunities to carry out effective promotions. nature tourism is a mainstay of banyumas tourism. tourism development carried out in 2001 until 2012 relied on the beauty and natural wealth of the surroundings. for example the development of the dreamland water tourism site. the development of this tour follows the current tourist trend by utilizing the wealth of water and views of the surrounding hills. this development is a continuation of the surrounding natural attractions namely cipendok waterfall. tourists can visit both places with the same route. tourism development in banyumas is built in a sustainable manner. it can be seen that cultural tourism can actually be a leading tourist attraction in banyumas. the condition of banyumas which is geographically located within the borders of javanese and sundanese culture has given rise to its own cultural characteristics which absorb the influence of both cultures. the existence of tourist sites must also be supported by adequate facilities. this facility is like a mosque, a parking lot, a place to eat, a toilet. these facilities become standard facilities at tourist sites. other facilities which are also important as a tourist attraction, especially from outside the city, are hotel and lodging facilities. in each tourist spot is also given a center of souvenirs so that the community around the tourist attractions get income from selling souvenirs typical of banyumas. table.2. number of hotels and rooms in banyumas regency year 2002-2014 tahun hotel bintang hotel non bintang unit kamar unit kamar 2002 5 353 136 1842 2003 5 262 137 1881 2004 5 359 137 1881 2005 5 470 151 2128 2006 5 470 151 2128 2007 5 368 167 2355 jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 39-43 2008 5 369 169 2994 2009 6 369 163 2289 2010 7 444 166 2562 2011 9 637 164 2405 2012 7 411 166 2998 2013 11 857 168 2824 2014 11 862 171 2969 source: bps of banyumas regency some conditions can be the cause of many local tourists staying at jasmine hotels. first, there are more jasmine hotels and most of them are scattered in nature tourism locations. tourist attraction that is visited by many natural attractions, so consumers prefer lodging close to tourist sites. however, jasmine hotels are also available near realistic religious tourism and cultural tourism, although in small amounts. the second reason, because prices are more affordable by tourists. some budget hotels located in the baturaden tourist complex offer cheap prices with adequate facilities. the cleanliness and safety of jasmine hotels is guaranteed because the hoteliers are aware of intense competition in the lodging business. in some periods also seemed to increase. but the existence of star hotels is still focused in urban areas. this hotel function has the main market objective to be a place to stay for people who have affairs in the regency of banyumas, especially the capital district, purwokerto. the price offered between one hotel to another is also the same and the position of the star hotel is too far to reach tourism around the banyumas regency. of course the local government also has a goal if a five-star hotel is built near tourism, it will shut down the jasmine hotel business that is around the tour. table 3. number of foreign and archipelago travelers who stay at hotels in banyumas regency in 2002 – 2014 year traveler overseas traveler domestic amount 2002 7,308 311,292 318,600 2003 4,884 325,834 330,718 2004 5,597 316,260 321,857 2005 6,328 355,193 361,521 2006 6,602 337,676 344,278 2007 8,237 399,494 407,731 2008 10,272 539,401 549,673 2009 9,707 469,802 479,509 2010 2,230 556,001 558,231 2011 3,605 454,942 458,547 2012 10,014 419,189 429,203 2013 5,474 510,593 516,067 2014 2,720 344,097 346,817 source: bps of banyumas regency from table 3 it can be seen that the dominant local tourists staying at jasmine and starred hotels. this also proves that local tourists are dominant in every tourist visit in banyumas regency. in total only from 300,000 to 450,000 although there have been a number of years of which 500,000 have stayed. the number of foreign and local tourists is also relatively fluctuating, it can also be seen that local tourists are bored to visit tourist attractions that are just like that so that innovation is needed to attract visitors. the longer the tourists stay the more expenditure will be the consumption of tourists. their expenditure is not only for consumption of primary needs that will kill the culinary industry, but also the consumption of local handicrafts. various creative industries were lifted up and sold in the presence of tourism. one of the emerging creative industries is the performing arts. traditional performing arts such as calung and ebeg often appear at baturaden tours. the traditional arts group that always fills events at this tour consists of groups of children and adult groups. on average, one calung arts group is 24 people. ebeg artistry consists of an average of 20 people because it consists of gamelan musicians and ebeg dancers. the banyumas batik industry has also been elevated along with the development of banyumas tourism. in the baturaden tourism location there is a batik gallery that displays banyumasan batik. banyumasan batik has at least two of its own styles namely baturadenan and sokaraja styles. each has its own characteristics. baturadenan batik has a different color from sokaraja typical banyumas batik. the style, color and detail of this batik will depend on the area of the craftsmen. tourists will also look for local specialties for souvenirs. banyumsan typical foods include mino, chips, jenang jacket and fried getuk. this food is available at every tourist location. jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 39-43 conclusions for the future development of tourism it is better to lead to the use of nature around the banyumas regency because its position close to the foot of mount slamet will certainly get an innovation-innovation for further tourism development. then the existing tour must be given adequate facilities to be considered suitable as a tourist spot. innovation is also needed for existing tours so that the tours built are not in vain. tourism management must also be both structural and functional in order to have benefits for the government and the community. references bps kabupaten banyumas. (2016) banyaknya pengunjung objek wisata di wilayah kabupaten banyumas, accessed november 26, 2019 https://banyumaskab.bps.go.id/statictable/2 016/03/27/ 59/banyaknya-pengunjung-obyek-wisatadi-wilayah-kabupaten-banyumas-t ahun-2009-2013.html bps kabupaten banyumas. (2019) https://banyumaskab.bps.go.id/statictable/2 016/03/28/ 72/banyaknya-hotel-dan-kamar-dikabupaten-banyumas-tahun-20022014.html bps kabupaten banyumas.(2018) wisatawan hotel di banyumas. accessed november 26, 2019. https:// banyumaskab. bps.go.id /statictable /2016/03/28/ 65/banyaknyawisatawan-mancanegara-dan-nusantarayang-menginap-di-hotel-di-kabupatenbanyumas-tahun-2002---2014.html hermawati, sri., milawaty, yusye. (2016). potensi industri pariwisata kabupaten banyumas. jurnal ilmiah ekonomi bisnis. volume 21 nomor 3. 173-181. kamila, aisyah. (2016). pengaruh sektor pariwisata, produk domestik regional bruto (pdrb), tingkat investasi dan jumlah penduduk terhadap peningkatan pendapatan asli daerah (pad) tahun 2010-2014. skripsi. feb, akuntansi. universitas muhammadiyah surakarta. mayasari, diannor. (2014). strategi promosi pariwisata pulau derawan. skripsi. fki, ilmu komunikasi. universitas muhammadiyah surakarta. sultan, muh. (2013). menggagas pencitraan berbasis kearifan lokal,http://komunikasi.unsoed.ac.id/sites/d efault/files/59.sulton%20poenya.pdf correspondence to : lilissitibadriah@gmail.com received: 4 july 2021 accepted: 12 august 2021 published: 30 september 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 3, 2021, pp. 24 37 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the achievement of sustainable development goals is an important agenda for every country. the department of economic and social affairs of the united nations states that in line with population growth, production followed by unsustainable consumption patterns can lead to increased environmental problems (undesa, 2010). based on research by lebreton & andrady (2019), around 60 to 99 million metric tons of unmanaged plastic waste was generated globally in 2015 and is predicted to triple by 2060. based on this research, in million metric tons/yard mismanaged plastic waste (mpw), indonesia ranks 9th as the highest mpw country in the world, which is 1.63, after china (17.2), india (14.4), philippines (4.52 ), brazil (3.68), turkey (2.15), nigeria (1.90), tanzania and thailand each with 1.77 million metric tons/yard. indonesia's position is higher than egypt's (1.62). this large amount of unmanaged waste, especially plastic waste, can cause environmental, health, and socioeconomic disturbances. the household is one of the parties that act as a producer of waste. modern waste management, including efforts to reduce, reuse, and recycle, is expected to minimize the amount of waste generated. however, based on bps data (2018a), the percentage of households in indonesia that handle their waste properly is still low. the percentage of households that recycle waste is 0.1 percent, households that use their waste as compost is 0.6 percent, and 0.4 percent are deposited into the waste bank. meanwhile, the handling of waste by burning has the highest percentage, namely 53 percent, followed by 5 percent of households choosing to throw it into rivers, 2.1 percent choosing to be piled up, and 2.7 percent throwing their garbage in any place. one type of waste that is difficult to decompose is plastic waste. in indonesia, the packaging sector is the largest plastic user, which is 65 percent of the total national consumption (purwoko & wibowo, 2018). the increase in plastic packaging is caused by changes in human lifestyles that want convenience by using lighter, durable, stronger, flexible, and low-cost plastic types, thus shifting the trend from reusable packaging to single packaging. use plastic (geyer et al., 2017; bps, 2018a). purwoko & wibowo (2018) states that plastic producers in indonesia find it difficult to replace their plastic materials with plant-based raw materials/biodegradable due to three factors, namely the high selling price of analysis of willingness to pay toward green products larassati rosse1, nurul anwar2, lilis siti badriah3 1,2,3 economics and development studies department, economics and business faculty, jenderal soedirman university, indonesia abstract plastic waste is a waste that difficult to decompose. consumer awareness to behave environmentally friendly consumption becomes very important. this study aims to analyze the willingness to pay (wtp) value of consumer households in surabaya city on green products and the determinants of the wtp. this study uses primary data from 100 respondents who were analyzed using the contingent valuation method and binary logistics regression. the results show the average maximum wtp value varies depending on th e product’s type offered. the perception of the green products' price and the behavior of considering environmental issues in the buying process have a significant positive effect on wtp. the implications of this study are government regulations and socialization are needed to increase awareness of environmentally friendly behavior for the community. producers are expected to increase the variety of the green product and expand their distribution area so the products can be more easily obtained by consumers. keywords willingness to pay; consumer household; green products; contingent valuation method; environmental issues jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 24-37 biodegradable plastics, low consumer education on biodegradable plastics, and the majority of consumers still choose conventional plastics because low price. in addition to plastic production which is difficult to suppress, household behavior can also affect the volume of plastic waste produced. based on the indonesian environmental statistics report (bps, 2018b), household behavior in carrying shopping bags to reduce the use of plastic bags is still low, 54.8 percent of households say they never bring their shopping bags. in addition to shopping bags, the fast moving consumer goods (fmcg) industry also contributes to donating plastic packaging waste. greenpeace defines fmcg as a product that is low in cost but has a high level of demand because it is purchased regularly by households due to its perishable or fastperishing properties, such as food, beverages, cosmetics, and health, as well as household products, such as personal cleaning products. due to their nature, the accumulation of packaging waste from these products increases rapidly in line with the high intensity of purchasing fmcg products by households. in response to this, awareness of the role of consumers in overcoming environmental problems is very important. the trend of environmentally friendly lifestyles carried out by various organizations is trying to change their daily lifestyle to avoid overconsumption behavior and be more environmentally friendly. green products are also increasingly recognized and available in the market. karunarathna et al. (2017) stated that green products are products that have a minimum impact on the environment and are related to strategies for using recycled materials, reducing packaging, and using harmless substances. based on the results of a survey by wwf and nielsen in 2017 (world wide fund indonesia, 2017), as many as 63 percent of indonesian consumers are willing to consume environmentally friendly products at higher prices. however, the willingness to buy green products cannot always be interpreted as the actual buying behavior of green products (akehurst, 2012). suharjo et al. (2016) mention that although the number of consumers who want to buy green products has increased in recent years, the market share of green products which is only 1-3 percent of the total market shows that consumers' consideration of environmental sustainability in making purchasing decisions is still low. one of the green product segments is organic food. perceptions about the price of organic food products that are more expensive, difficult to obtain, and limited information owned by consumers are barriers for consumers to buy green products (thio, 2008; priambodo & najid, 2014; suharjo et al., 2016). however, willingness to pay for green products can increase due to good perceptions of product quality and safety (krystallis & chryssohoidis, 2005) and consumer awareness of the environment (junaedi, 2005). willingness to buy green products can also be influenced by sociodemographic factors. karunarathna et al. (2017) mentioned that educated young consumers tend to feel more environmentally responsible and open to new ideas. while laroche et al. (2001) state that the majority of consumers who are willing to pay more for green products are women who are married and have children. based on the theory of demand, many factors can affect the quantity of demand, one of which is the population. suparmoko (2012:11) states that with the increasing population, more goods and services are needed to meet needs. an increase in the number of goods and services encourages an increase in production factors that are processed and produce by-products in the form of waste that pollutes the environment. table 1. shows population growth in the six capital cities of java island from 2016 to 2017 which is directly proportional to the increase in the amount of daily waste produced. based on table 1. it is known that dki jakarta is the city with the most population, which is 10,374,235 thousand people, followed by surabaya city, in second place at 3,074,883 thousand people. however, the increase in the estimated daily waste production in surabaya city is more than dki jakarta. based on the percentage of transported waste, yogyakarta is the city with the largest percentage of transported waste, which is 99.26 percent, while surabaya city is in fifth place, which is 54.84 percent. the data illustrates that with the high population, the volume of waste transported per day in surabaya city is not as optimal as in other capitals. surabaya city, as the capital of east java province, is a metropolitan area with a strategic position that makes surabaya city a center of dynamic community economic jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 24-37 activity. the number of households in surabaya city is 935,089 units and has the largest total waste generation of 2,790.9 tons/day (43 percent) in 2017. other sources of waste generation come from public facilities and commercial centers with 13 percent each, traditional market and office each amounted to 5 percent, region 6 percent, and 15 percent sourced from others (surabaya city environmental service, 2018). a large number of household actors is because most community activities are carried out in the area and reflect the large role of household consumption activities in the generation of waste produced. economic conditions, city functions, and people's lifestyles are also able to determine the composition of a city's waste. surabaya city has a diverse composition of waste. based on the composition of waste in 2017, the largest composition came from food waste, which was 54.31 percent. in the second place, the composition of plastic waste reaches 19.44 percent of the total city plastic waste and makes the composition of plastic waste the largest inorganic waste composition among other compositions (surabaya city environmental service, 2018). based on previous studies, it is stated that price is the main inhibiting factor for consumers in buying green products and an analysis of willingness to pay (wtp) can be done to determine the maximum value that consumers are willing to pay for green products. priambodo & najid (2004) use the analysis of wtp as a method to find out the maximum value that consumers are willing to pay for improving the quality of a product. wtp in this study is the dependent variable that measures the maximum level of a person's willingness to pay a higher price for green products than similar conventional products. this willingness to pay is calculated using the contingent valuation method (cvm). based on the description, it is important to study the wtp for green products. this study is very important considering the inconsistency between the high interest of consumers to consume green products and the low number of consumers who fulfill these desires. this is caused by various purchasing barriers, such as high prices, difficulty in obtaining products, perceptions of quality, and low environmental awareness. surabaya city has the second-highest population after dki jakarta so that the level of consumption is getting higher. increasing consumption makes the amount of household waste in surabaya city increase. however, the percentage of waste transported in 2017 in surabaya city is still relatively low compared to other capital cities on the island of java. this shows that waste management in surabaya city is not optimal enough to balance its daily waste production. in such conditions, besides requiring the role of the government and producers, consumers are also able to take a role in managing waste, especially household waste. although no regulation strictly prohibits the use of plastic, in surabaya city, some facilities allow households to behave environmentally friendly in their consumption activities, such as the availability of waste processing facilities such as waste banks, 3r tps, and compost houses, organic vegetable markets, to the eco-friendly bulk store. therefore, based on the phenomenon of the problem, this study aims to analyze the value of willingness to pay (wtp) of consumer households in surabaya city for green products and also analyze the factors that influence the wtp. methods this research was conducted in surabaya city using cross-section data in october 2019. the population of this study was consumer households in surabaya city who knew green products. for unknown population size, suliyanto (2018: 198) states that for determining the sample, it can use the proportion formula to determine the minimum sample. with a significance level of 5 percent and an error tolerance level of 10 percent, the calculation of the number of research samples is 96.04 which is rounded up to 100 samples. respondents were determined using purposive sampling with the criteria, namely: 1) female consumers with the assumption that women tend to be decision-makers in purchasing household needs, 2) representing one ordinary household, and 3) aged 17 years and over (junaedi, 2005, priambodo & najid, 2014, khoiryah & toro, 2014). furthermore, the sampling of members is done by accidental sampling (hasan, 2002:68). analysis of the value of willingness to pay toward green products this study refers to priambodo & najid (2004) who uses the analysis of wtp as a method to determine the maximum value that is willing to be paid from improving the quality of a product. to find out preferences for willingness to pay, the contingent valuation jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 24-37 method (cvm) can be used (suparmoko et al., 2014:55). the stages in cvm according to hanley & barbier (2009:45), suryahani et al. (2011), and aufanada et al. (2017) are: a) constructing a hypothetical market, b) obtaining the bid value (bid) of wtp, c) estimating the average value of wtp. setiyadi et al. (2016) used the formula for the estimated average wtp, namely: ewtp = ∑ wi n i=1 n ............................. (1) note: ewtp = estimated average value of wtp; wi = the i-th wtp value; n = number of respondents; i = the i-th respondent who is willing to pay (i=1, 2, 3, n). d) estimate the wtp curve that describes the relationship between the wtp level and the cumulative number of respondents who are willing to pay at the wtp level, e) add up the data from the total wtp with the formula: twtp = ewtp𝐼 x p ...................... (2) note: twtp = total wtp; ewtpi = the average value of the i-th wtp; p = respondent. analysis of factors affecting willingness to pay toward green products in this study, a likert scale was used to measure the attitudes, perceptions, and behaviors of respondents. to be analyzed with parametric statistics, the data is first transformed into interval data using the method of successive interval (msi) (suliyanto, 2005:25). furthermore, the method used to analyze the factors that influence consumers' willingness to pay higher for green products is the binary logistics regression model (ghozali, 2002:74) with the following equation: ln ( p 1− p ) = 𝛽0 + 𝛽1 𝑋1 + 𝛽2𝑋2 + ⋯ + 𝛽𝑘 𝑋𝑘 ……(3) note: p = probability of respondents saying "yes" ( p 1− p ) = oddss ratio (opportunity ratio) or the comparison between something happening and not happening. to find out consumers' willingness to pay more for green products, the equations used in this study are: ln ( p 1− p ) = wtp = β0 + β1usia + β2kel + β3nkh + β4pdd + β5pdt + β6hrg + β7kual + β8ktd + β9str + β10ling + ε … .. (4) note: ln ( p 1− p )= higher willingness to pay for green products; β0, 1, 2, ...,10 = regression coefficient; ε = error term; usia = respondent's age; kel = number of family members; nkh = marital status; pdd = education; pdt = income; harga = green product price perception; kual = perceived quality/benefit of green products; ktd = perception of green product availability; str = behavior of depositing waste to waste processing facilities; ling = behavior considering environmental issues in the buying process. to test the validity of the model, several tests were carried out, such as testing the significance of the model using: a) ghozali's overall model fit test (2002:78) b) wald's test, to partially test the effect of the independent variables (aufanada, ekowati, and prastiwi, 2017). c) model feasibility test (hosmer and lemeshow's goodness of fit) ghozali (2002:79) d) negelkerke's r square to show the variability of the dependent variable which can be explained by the variability of the independent variables in the study, e) classification table. the 2 x 2 classification table explains the accuracy of the model prediction by calculating the correct and incorrect estimation values (ghozali, 2002: 80), f) multicollinearity test. results and discussion results analysis of willingness to pay toward green products the results of the analysis of wtp for green products show that 91 percent of respondents stated that they are willing to pay higher for green products. while 9 percent said they were not willing. respondents who stated that they were not willing to pay more for green products generally reasoned that higher prices should be for improving product quality to be more environmentally friendly, not borne by consumers, but to producers. another reason is that respondents are satisfied with using existing conventional products. a wtp analysis was conducted to determine the maximum value that a person is willing to spend on green products. to obtain the value of consumers' willingness to pay for green products, the cvm analysis is used with the following stages: jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 24-37 the first stage, creating a hypothetical market, in this study is described in the research questionnaire. in the second stage, determining the bid value obtained through interviews using the tiered bidding/bidding game method. the last price reached is defined as the maximum wtp value of the respondent. the distribution of respondents to the prices offered based on each type of green product is presented in table 2. the third stage, calculating the maximum average wtp of green product consumers, is shown in table 3. based on table 3, it is known that the average maximum wtp value for green products varies depending on the type of product offered. reusable shopping bags have the highest average maximum wtp value, while reused straws have the lowest average value. next stage, the wtp curve is estimated, as shown in figures 1, 2, 3, and 4. the wtp curve for the four green products tested shows a negative slope, which means that the lower the wtp value offered, the more respondents are willing to pay. a sloping or steep curve shows the movement of the curve from one wtp point to the next with different frequencies of increasing respondents. the smaller the difference between respondents from one point of wtp to the next, the steeper the curve will be. on the other hand, the greater the difference between respondents from one point of wtp to the next, the more sloping the curve will be. based on table 3, it is known that the average maximum wtp value for green products varies depending on the type of product offered. reusable shopping bags have the highest average maximum wtp value, while reused straws have the lowest average value. next stage, the wtp curve is estimated, as shown in figures 1, 2, 3, and 4. the wtp curve for the four green products tested shows a negative slope, which means that the lower the wtp value offered, the more respondents are willing to pay. a sloping or steep curve shows the movement of the curve from one wtp point to the next with different frequencies of increasing respondents. the smaller the difference between respondents from one point of wtp to the next, the steeper the curve will be. on the other hand, the greater the difference between respondents from one point of wtp to the next, the more sloping the curve will be. source: primary data processed, 2019 figure 1. the wtp curve of reusable menstrual sanitary equipment. based on figure 1, as many as 11 respondents are willing to pay for menstrual sanitation equipment for reuse in the form of cloth pads for rp. 40.000,00, 10 respondents are willing to pay for rp. 34.500.00, 17 respondents are willing to pay for rp. willing to pay at the price of rp. 18,000.00. source: primary data processed, 2019 figure 2. the wtp curve of environmentally friendly toothbrush based on figure 2, only 3 respondents are willing to pay for an environmentally friendly toothbrush at the highest price level of rp. 30,000.00, 6 respondents are willing to pay at the price of rp. 25,500.00, 14 respondents are willing to pay at the price level of rp. 21,000.00, followed by 31 respondents who are willing to pay for rp. 16,500.00, and the highest number of respondents, 46 respondents, is willing to pay at a price level of rp. 12,000.00. 0 5 10 15 20 25 30 35 40 0 20 40 60 80 100 w t p v a lu e ( th o u s a n d ru p u a h ) f cumulative respondents 0 5 10 15 20 25 30 35 40 0 20 40 60 80 100 w t p v a lu e ( th o u s a n d ru p u a h ) f cumulative respondents jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 24-37 source: primary data processed, 2019 figure 3. the wtp curve for reusable straws figure 3 regarding the wtp of reused straws illustrates that 17 respondents are willing to pay for reusable straws made of stainless steel with the highest price of rp. 16,000.00, 12 respondents are willing to pay the price of rp. 13,000.00, 29 respondents are willing to pay the price of rp. 10,000, 00, 26 respondents are willing to pay the price of rp. 7,000.00, and 17 respondents are willing to pay the price of rp. 4,000.00. source: primary data processed, 2019 figure 4. the wtp curve for reusable shopping bags the wtp curve for reusable shopping bags made from environmentally friendly fabric fibers is shown in figure 4. there is 1 respondent who is willing to pay for rp. 215,000.00, 7 respondents are willing to pay for rp. 177,000.00, 6 respondents are willing to pay for rp. 101,000.00, 20 respondents are willing to pay the price of rp. 63,000, and the majority of respondents, 66 respondents, are willing to pay at the price of rp. 25,000.00. furthermore, the aggregation of the total wtp is carried out. aufanada et al. (2017) mention that the aggregation value of wtp is important for marketers to know to obtain sales value at the maximum price consumers are willing to pay based on each type of green product. the results of the calculation of the wtp aggregation can be seen in table 4. based on table 4, it is known that the wtp aggregation for each type of green product shows different values. the ranking of types of green products based on the aggregation value from the highest to the lowest sequentially is reusable shopping bags, reused menstrual sanitation equipment, environmentally friendly toothbrushes, and finally reusable straws. analysis of factors affecting willingness to pay toward green products the results of the binary logistic regression analysis of the factors that affect wtp toward a green product in surabaya city are as follows: a. overall model fit test results the results of the overall model test (table 5) show that the difference in -2 loglikelihood in block 0 and block 1 is 36.553, greater than the chi-square table value of 18.307 so that the hypothesized model fits the data and is feasible to use. b. model feasibility test results (hosmer and lemeshow's goodness of fit) based on the results of the model feasibility test, the significance value of the hosmer and lameshow test is 0.961, greater than the p-value of 0.05. it can be interpreted that the model is feasible. c. nagelkerke’s r square the value of nagelkerke's r square in the research model is 0.674. this indicates that the variable of consumers' willingness to pay for green products can be explained by independent variables in the study of 67.4 percent while 32.6 percent is explained by other variables not used in the study. d. classification table test based on the results of the classification table test (table 8), the results of the overall percentage or the accuracy of the model explain the willingness of respondents to pay higher for green products by 94 percent. e. multicollinearity test the results of the multicollinearity test using matrix correlation showed that there 0 2 4 6 8 10 12 14 16 18 20 0 20 40 60 80 100 w t p v a lu e ( th o u s a n d ru p u a h ) f cumulative respondents 0 50 100 150 200 0 20 40 60 80 100 w t p v a lu e ( th o u s a n d ru p u a h f cumulative respondents jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 24-37 was no correlation value of 0.9 so that is no multicollinearity in the model. if the correlation coefficient between the dependent variables is 0.9, it can be indicated that there is multicollinearity symptoms (ghozali & fuad, 2008:38). f. wald test the results of the wald test are shown in table 9 with = 5%. based on table 9, partially the variables that affect the willingness to pay for green products are the price perception variable (price) and the behavioral variable considering environmental issues in the purchasing process (ling). while other variables have no significant effect on willingness to pay. based on table 9, the odds ratio or exp (b) of the price perception variable (price) is 13.713, which means that households that have better price perceptions have a 13.713 times greater chance of being willing to pay higher than households with unfavorable price perceptions. while the ling variable has an exp (b) value of 36,872 which means that households who often consider environmental issues in their purchasing process have a 36,872 times greater chance of being willing to pay higher compared to households who less often consider environmental issues in the buying process. the regression equation model formed is as follows: ln (p/(1p)) = wtp = -27,479+ 2,618harga + 3,607ling…..(5) or in the form of probabilities, namely: 𝑃 = 𝑒 −27,479+ 2,618harga + 3,607ling 1 + 𝑒 27,479+ 2,618harga + 3,607ling …… (6) discussion the value of willingness to pay for green products in the contingent valuation method analysis, based on table 3, it is known that reused shopping bags have the highest maximum wtp average value, while reused straws have the lowest average value. the high average value of the maximum wtp for reusable shopping bags can be caused by the high price of these products, ranging from rp. 25,000.00 to rp. 215,000.00. on the other hand, the low maximum wtp value for reused straws is caused by the low price of the product, which ranges from rp. 4,000.00 to rp. 16,000.00. this is in accordance with the research of aufanada et al. (2017) and krystallis & chryssohoidis (2005) which state that the maximum value consumers are willing to pay varies depending on the type and price of the product itself. likewise, when aggregating the total wtp, each type of green product shows a different value (table 4). the value of the wtp aggregation on green products shows the total revenue that can be obtained by producers based on different types of green products. the greater the wtp aggregation value, the greater the revenue that producers will get from the green product. the influence of demographic-economic factors on willingness to pay for green products demographic-economic factors which include age, marital status, number of family members, education level, and income have no significant effect on the wtp for green products of consumer households in surabaya city. this is because households who are willing to pay higher and households who are not willing to pay higher have almost the same demographic-economic conditions so that they have the same opportunity to be willing or unwilling to pay higher for green products. this finding is different from previous studies which state that demographiceconomic factors have a significant influence on consumers' willingness to pay (setiyadi et al., 2016; aufanada et al., 2017). however, the results of this study are in line with priambodo & najid (2014) and krystallis & chryssohoidis (2005) which show that demographiceconomic factors do not have a significant influence on consumers' willingness to pay for green products and cannot be a good predictor of consumer profiles green. priambodo & najid (2014) added that socioeconomic factors play a relatively small or even no role in consumer decisions to buy green products because consumers are more influenced by product knowledge, price sensitivity, and personal values they have. the effect of the age factor on wtp for green products in previous studies showed different results. karunarathna et al. (2017) mention that age has a significant effect on young consumers who are willing to pay higher because they are more open to new ideas, while setiyadi et al. (2016) stated that older consumers are willing to pay higher because they are aware of the health and safety of their families. however, this study found that age had no significant effect on the jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 24-37 willingness of consumer households to pay more for green products. based on the age distribution data of respondents obtained from the survey results, it is known that the average group of respondents who are willing to pay higher and those who are not willing to have the same average age, namely 25 years. the results of this study are in line with krystallis & chryssohoidis (2005), priambodo & najid (2014), and laroche et al. (2001) which states that the age of consumers does not determine their willingness to pay higher for green products and cannot be a good predictor to determine the profile of consumer households who are willing to pay higher for green products. the factors of marital status and the number of families also have no significant effect on wtp. based on survey data, the majority of respondents from the group who are willing to pay (69 percent) and those from the group who are not willing (78 percent) are unmarried and have the same average number of family members, which is 4 people. the results of this study found that marital status and the number of family members of consumers' households in surabaya city had no significant effect on higher wtp for green products. these results confirm krystallis & chryssohoidis (2005) and priambodo & najid (2014) which show that marital status and number of family members do not affect consumers' willingness to pay for organic products. regarding education level, aufanada et al. (2017) stated that the education factor had a significant effect on the willingness to pay for environmentally friendly products. the higher the education, the better ecological knowledge and environmental awareness one have. in this study, the majority of respondents from the group who are willing to pay (57 percent) are university graduates and from the group who are not willing to pay (67 percent) are high school graduates. however, the results of the study show that the latest level of education in consumer households in surabaya city does not determine the wtp significantly higher for green products. this result is in line with priambodo & najid (2004) which shows that consumer education does not play a significant role in determining wtp higher for green products. the results of this study also found that the income factor had no significant effect on the wtp for green products. based on the results of a survey regarding the distribution of respondent's income, the income of 50 percent of respondents is in the lowest range, namely rp. 400,000 rp. 1,600.000 per month, with the status of a student. based on their willingness, respondents who are willing to pay higher tend to have higher incomes than respondents who are not willing. in previous studies, income has a significant effect on wtp higher for green products in consumers with higher incomes because the price of green products tends to be high (awad in akehurst, 2012; aufanada et al., 2017). however, the results of this study indicate that the income factor does not affect the willingness of consumer households to pay higher for green products and confirms priambodo & najid (2014) which shows that income only plays a small role in consumers' willingness to pay for green products. the influence of consumer attitudes toward green products on willingness to pay for green products consumer attitudes towards green products are known by using indicators of perceived green product prices, perceived quality/benefits of green products, and perceived availability of green products. the price perception factor has a significant positive effect on consumers' willingness to pay higher for green products. based on the survey data, the consumer households who are willing to pay higher tend to have a better perception of the price of green products than those who are unwilling, while respondents who are not willing to pay higher have lower perceptions of the price of green products. the positive relationship between perceived affordability of prices and higher willingness to pay for green products can be interpreted that households with a good perception of the affordability of green products or feel that the price of green products are affordable for them, have a greater chance of being willing to pay higher prices for green products. on the other hand, consumer households who perceive that green products are expensive, have a lower chance of being willing to pay higher prices for green products. based on the odds ratio value, consumer households with a better price perception (feeling that the price of green products is cheap) have a 13.713 times greater chance of being willing to pay higher prices compared to consumer households with a less favorable price perception (feeling that the price of green products is expensive). jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 24-37 a good perception of the price of green products can be caused by the high purchasing ability of consumers because it is supported by their income level. in addition, this good perception of the price of green products can be driven by consumer awareness of the benefits and importance of green products so that they do not object to the prices of green products offered even though the prices are relatively higher than conventional products. the consumer perception factor regarding the quality/benefit is known to have no significant effect on the availability of paying for green products. based on the survey data, the group of respondents who are willing to pay higher mostly agree/strongly agree that the quality of green products is superior to non-green products and agree that their use can be a solution in overcoming environmental problems. meanwhile, in the group of respondents who are not willing to pay higher, they are neutral for both perceptions. so that based on perceptions of product quality/benefits, consumer households in the surabaya city have the same opportunity to be willing or unwilling to pay higher for green products and make the quality/benefit factor of the product not an important factor influencing consumers' willingness to pay higher for green products. the consumer perception factor on the availability of green products also does not affect the willingness to pay for green products. based on the data obtained, consumer households, both those who are willing to pay higher and those who are not, assess that green products are difficult to find or rarely available in public shopping places. this is in accordance with the situation on the ground that the availability of green products is still limited, only in environmentally friendly specialty stores or in certain shopping centers with slight variations because they are still dominated by non-green products. the influence of consumer behavior factors on the environment on willingness to pay for green products in this study, consumer behavior factors towards green products are reflected through consumer behavior in depositing household waste to waste processing facilities and behavior considering environmental issues in the buying process. the results showed that the behavior of consumer households in surabaya city in depositing their household waste to waste processing facilities had no significant effect on willingness to pay higher for green products. based on the data obtained, both consumer households who are willing to pay higher and those who are not, tend to never deposit their waste to a waste processing facility. waste processing facilities in surabaya city have special criteria for acceptable waste, such as only accepting certain types of waste and in clean and segregated conditions, so that households find it difficult to choose waste regularly so that it can be taken to the waste processing facility and prefer to handle the household waste more easily and practically, such as being transported by officers or disposed of to a garbage dump (tps). the results of this study are in line with laroche et al. (2001) who found that recycling behavior was not an important factor in determining consumers' willingness to pay more for green products. the results of this study indicate that the behavior of considering environmental issues in the purchasing process has a significant positive effect on willingness to pay for green products. the more often the behavior is carried out, the more likely the respondent is willing to pay a higher price. this behavior is reflected through the behavior of ensuring that the packaging uses recycled materials, the behavior of refusing to purchase with excessive plastic packaging, and the behavior of reading environmentally friendly labels before buying the product. this shows that consumer households tend to behave more often considering environmental issues in the purchasing process, especially those related to plastic packaging and recycled materials. based on the odds ratio value, consumer households that often consider environmental issues in the buying process have a 36,872 times greater chance of being willing to pay higher than households that rarely behave in this way. the positive relationship between willingness to pay and that behavior is because respondents have an awareness of environmental issues and the importance of the role of households in overcoming these issues. this awareness is then reflected in his commitment to environmentally friendly behavior in his daily consumption activities. green products are intended as an alternative to making it easier for consumers to behave environmentally friendly so that households that apply environmentally friendly behavior will be willing to pay higher to get the benefits of green products. the results of this study are in line with laroche et al. (2001) which shows that consumers who consider environmental jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 24-37 issues in the purchasing process tend to be more willing to pay higher prices for green products. conclusions this study found that 91 percent of consumer households in surabaya city who know green products are willing to pay more to get these products. the maximum average willingness to pay (wtp) for green products varies depending on the type of product offered. factors that have a significant positive effect on the willingness of consumer households in surabaya city to pay higher for green products are the perception of the price of green products and the behavior of considering environmental issues in the buying process. meanwhile, the factors of age, marital status, number of family members, education, and income, perceptions of the quality/benefits of green products, perceptions of the availability of green products, and the behavior of depositing household waste to waste processing facilities did not significantly affect the willingness to pay higher for green product. consumer households in surabaya city who have better price perceptions of green products have a 13.713 times greater chance of being willing to pay higher prices than consumer households with poor price perceptions. consumer households that more often consider environmental issues in the process of purchasing their consumption needs have a 36,872 times greater chance of being willing to pay higher prices for green products compared to consumer households that behave less frequently. the results of this study imply that consumer households in surabaya city have relatively good environmental awareness and realize the importance of their role in protecting the environment, especially regarding waste accumulation. environmentally friendly lifestyles such as zero waste or less waste which involve the use of green products have the potential to be accepted by the community. however, structural approaches such as socialization, policies, or government regulations are needed to make a great impact. therefore, this potential should be supported by the surabaya city government by optimizing existing environmentally friendly regulations and supported by increasing the procurement of environmentally friendly public facilities to increase household participation in overcoming environmental problems, including to behave more environmentally friendly by using green products. households in surabaya city already have a good perception of green products but are still hampered by the limited availability of products in shopping centers. this should be a concern, both producers, suppliers, and marketers to be able to increase the variety or type of green products, and expand their distribution area so that green products can be more easily obtained by consumers. obtaining information about the characteristics of consumers who are willing to pay for green products and the maximum value that consumers are willing to spend on green products should be able to help producers and marketers of green products in developing appropriate marketing strategies, mapping potential consumers, and pricing green products better so that can increase the consumption of green products in the household. the dissemination of knowledge and information related to environmentally friendly lifestyles and green products should be increased so that more households practice an environmentally friendly lifestyle, especially managing and processing their household waste. thus, environmental problems, especially waste, can be overcome from the smallest units such as households. references akehurst, g. 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(2016). consumer willingness to pay of organic rice and the factors which affected in pontianak. ilmu pertanian (agricultural science). 1. 130136. doi: doi.org/10.22146/ipas.11227. suharjo, b., ahmady, m., & ahmady, m. r. (2016). indonesian consumers’ attitudes towards organic products. advances in economics and business. 4. 132-140. doi: 10.13189/aeb.2016.040303 suliyanto. (2005). analisis data dalam aplikasi pemasaran. bogor: ghalia indonesia. suliyanto. (2018). metode penelitian bisnis untuk skrip, tesis, dan disertasi. yogyakarta: andi offset (anggota ikapi). suparmoko, m. (2012). ekonomi sumber daya alam dan lingkungan (suatu pendekatan teorits). yogyakarta: bpfe. suparmoko, m., sudirman, d., & wibowo, h. s. (2014). valuasi ekonomi sumberdaya alam & lingkungan. yogyakarta: bpfe-yogyakarta. suryahani, i., anwar, n., & sudjarwanto, d. (2011). aplikasi willingness to pay: proteksi terhadap penentuan harga (model empirik dalam estimasi permintaan air pdam rumah tangga di kabupaten banyumas). eko-regional. 6. 107-116. doi: 10.20884/1.erjpe.2011.6.2.449. thio, s. (2008). persepsi konsumen terhadap makanan organik di surabaya. jurnal manajemen perhotelan. 4. 18-27. doi: 10.9744/jmp.4.1.18-27. united nations department of economic and social affairs (undesa). (2010). trends in sustainable development towards sustainable consumption and production (10-25383). new york: united nation. retrieved from: https://sustainabledevelopment.un.org/index. php?page=view&type=400&nr=15&menu=15 72 diakses pada 24 april 2019. https://www.bps.go.id/publication/2018/12/07/d8cbb5465bd1d3138c21fc80/statistik-lingkunganhidupindonesia2018.html https://www.bps.go.id/publication/2018/12/07/d8cbb5465bd1d3138c21fc80/statistik-lingkunganhidupindonesia2018.html http://lh.surabaya.go.id/fileupload/ebook/buku%20ii%252%200ikplhd%20kota%20surabaya%20tahun%202017.pdf http://lh.surabaya.go.id/fileupload/ebook/buku%20ii%252%200ikplhd%20kota%20surabaya%20tahun%202017.pdf http://lh.surabaya.go.id/fileupload/ebook/buku%20ii%252%200ikplhd%20kota%20surabaya%20tahun%202017.pdf http://lh.surabaya.go.id/fileupload/ebook/buku%20ii%252%200ikplhd%20kota%20surabaya%20tahun%202017.pdf https://www.researchgate.net/publication/%20242382759_a_review_of_methods_for_measuring_willingness-to-pay https://www.researchgate.net/publication/%20242382759_a_review_of_methods_for_measuring_willingness-to-pay https://www.researchgate.net/publication/%20242382759_a_review_of_methods_for_measuring_willingness-to-pay https://sustainabledevelopment.un.org/index.php?page=view&type=400&nr=15&menu=1572 https://sustainabledevelopment.un.org/index.php?page=view&type=400&nr=15&menu=1572 https://sustainabledevelopment.un.org/index.php?page=view&type=400&nr=15&menu=1572 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 24-37 world wide fund indonesia. (2017). eco-label production and consumption trend in indonesia: manufacturers' commitment to provide and markets' readiness to buy. retrieved from: https://www.wwf.or.id/en/news_facts/?unews id=60462. . list of tables table 1. total population, production, and volume of waste transported per day by capital city in java in 2016 – 2017 city year total population (thousand people) estimated daily waste production (m3) the volume of garbage transported per day (m3) percentage of waste collected (%) dki jakarta 2016 10.277.628 7.099,081 6.016,301 84,75 2017 10 374 235 7.164,531 6.872,181 95,92 bandung 2016 2.490.622 1.469,001 1.100,001 74,86 2017 2.497.938 1.600,001 1.120,001 70,00 semarang 2016 1.602.717 5.080,51 4.445,00 87,49 2017 1.610.605 5.163,72 4.544,00 88,00 yogyakarta 2016 417.744 904,80 880,00 97,26 2017 422.732 1.048,00 1.040,00 99,24 surabaya 2016 3.016.653 9.710,61 5.237,70 53,94 2017 3.074.883 9.896,78 5.427,45 54,84 serang 2016 655.004 1.638,00 710,00 43,3 2017 666.600 1.638,00 710,00 43,3 note: 1unit uses ton source: bps, 2018, processed table 2. distribution of respondents' maximum wtp value by type of green product green product type no wtp value (rupiah) respondent (people) percentage (%) a. reusable menstrual sanitary equipment (pads) 1 18.000 31 31 2 23.500 31 31 3 29.000 17 17 4 34.500 10 10 5 40.000 11 11 total 100 100 b. eco-friendly toothbrush 1 12.000 46 46 2 16.500 31 31 3 21.000 14 14 4 25.500 6 6 5 30.000 3 3 total 100 100 c. reusable straws 1 4.000 16 17 2 7.000 26 26 3 10.000 29 29 4 13.000 12 12 5 16.000 17 17 total 100 100 d. reusable shopping bags 1 25.000 66 66 2 63.000 20 20 3 101.000 6 6 4 139.000 0 0 5 177.000 7 7 6 215.000 1 1 total 100 100 source: primary data processed, 2019 https://www.wwf.or.id/en/news_facts/?unewsid=60462 https://www.wwf.or.id/en/news_facts/?unewsid=60462 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 24-37 table 3. average maximum value of wtp by type of green product green product type average maximum wtp (rupiah) a. reusable menstrual sanitary equipment (pads) 25.645 b. eco-friendly toothbrush 16.005 c. reusable straws 9.640 d. reusable shopping bags 49.700 source: primary data processed, 2019 table 4. aggregation of wtp by type of green products green product type wtp aggregation value (rupiah) a. reusable menstrual sanitary equipment (pads) 2.564.500 b. eco-friendly toothbrush 1.600.500 c. reusable straws 964.000 d. reusable shopping bags 4.970.000 source: primary data processed, 2019 table 5. overall model test results omnibus tests of model coefficients chi-square df sig. (p-value) 36,553 10 0,000 source: output ibm spss statistics 26 table 6. model feasibility test results hosmer and lemeshow test chi-square df sig. (p-value) 2,514 10 0,961 source: output ibm spss statistics 26 table 7. nagelkerke's r square test results nagelkerke’s r square -2 log likelihood cox & snell r square nagelkerke r square 23,955 0,306 0,674 source: output ibm spss statistics 26 table 8. the classification table test results classification table overall percentage 94,0 source: output ibm spss statistics 26 table 9. logistics regression test results variable coefficient (b) p-value (sig.) oddss ratio (exp(b)) decision usia 0,083 0,710 1,086 not significant nkh 2,902 0,414 18,216 not significant kel 1,516 0,094 4,556 not significant pdd -0,408 0,831 0,665 not significant pdt 0,380 0,800 1,463 not significant harga 2,618 0,037 13,713 significant kual 0,083 0,945 1,086 not significant ktd 0,796 0,508 2,216 not significant str 0,193 0,817 1,213 not significant ling 3,607 0,034 36,872 significant constant -27,479 0,188 0,000 sumber: output ibm spss statistics 26 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 24-37 correspondence to : eror1421@gmail.com received: 3 may, 2021 accepted: 20 june, 2021 published: 30 june, 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 2, pp.20 33 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction world health organization (who) was declared that covid-19 as a pandemic in the world on 11 march 2020. many countries have decided to lockdown towns and countries for certain period. the virus is spreading through human to human interactions. therefore isolation or social distancing of people is one of the solution to stop or minimize the spreading of the virus. indonesia’s government decided to close borders, postponing social events and shutdown industries and commercial activities for certain period of lockdown. the purpose was keeping people in isolation and minimize the spread of virus, however, has negative effects in the economy and business sectors (smith, et al., 2020). many industries were collapse and the urgency to reopen commercial business was considered with strict health protocols. business organizations have to adapt to new working behaviors during lockdown period transition to new normal. working from home (wfh) was one of alternative taken by business organizations to keep business running and on other hand comply with health protocols. the use of mobile technology was an important part to keep employees performing their role during wfh. the mobile technology use reduces employee’s role stress and increase job satisfaction (roman et al., 2018). social distancing also create gap between coworkers, supervisor and organization itself even though mobile technology also allowed employees to meet with co-worker and supervisors virtually (andreev, et al 2010; archibald, et al., 2019). meanwhile, support from supervisor lessen role stress of employees and increase job performance and job satisfaction (babin and boles, 1996). furthermore, employees may experience uncertainty related to their job continuance in the organizations during pandemic. job insecurity perception is one of working from home during pandemic covid-19: effects of mobile technology use, supervisor support and job insecurity on employee’s role stress and job satisfaction edward rorong1, hanifah2, pandapotan siagian3, pandi pakolo4 1,2 magister manajemen, universitas prasetiya mulya, jakarta, indonesia abstract this study is to examine the relationship among mobile technology use, supervisor support, job insecurity, role stress and job satisfaction during working from home (wfh) in pandemic covid-19. a descriptive research using questionnaires were distributed to employees in jakarta areas (jabodetabek). a total of two hundreds forty four valid questionnaires were collected. factor analysis and regression analysis were used in this study. based on the result of analysis, note that mobile technology use, supervisor support and job insecurity each have significant effect on role stress. in testing direct effect on job satisfaction, supervisor support, job insecurity and role stress were statistically significant, while mobile technology not significant. role stress were mediating supervisor support and job insecurity toward job satisfaction. the findings of this study provide insight for company’s policies and strategies in adopting wfh/telecommuting activity as well as providing necessary support for employees knowing that wfh/telecommuting is not a work culture in indonesia. few research has been studied the impact of mobile technology use, supervisor support and perception of job insecurity towards to role stress and job satisfaction in the pandemic covid-19 context. keywords mobile technology, supervisor support, job insecurity, role stress, job satisfaction jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 20 33 work stressor and there is positive relationship between job insecurity and role stress (masia and pienaar, 2011). this pandemic phenomenon may affect both employees and employers since wfh is not a work culture in many business organizations in indonesia. for this reason, the study is to examine the relationship between mobile technology use, supervisor support, job insecurity, employee’s role stress and job satisfaction in the context of wfh during pandemic covid-19. mobile technology business organizations required to make adjustments in an unexpected condition to support organization’s contingency plan (simpkins, 2009) for example on pandemic covid-19 condition. the use of mobile technology and its information are relevant to improve existing interaction between organization and its employees either in workplace or from home/virtual office (golden et al., 2009). the use of mobile technology have positive impact on employees (yueh et al., 2016; chung et al., 2015) in their work performance. in the context of wfh due to pandemic covid-19, the use of mobile technology especially virtual meetings have positive significant impact to productivity of employees in jakarta (suhardi et al., 2020). mobile technology improved communication with co-worker and keep them connected in the team (grieco, et al., 1995). based on (nuskiya, et al., 2018), technology advancement helped employee more effective in completing their work. as the result, technological advancement improved the performance of organizations (obeng, et al., 2018). during pandemic covid-19, employees continue to working remotely by using mobile technology (vargo et al., 2020). telework by using technology during pandemic increased efficiency (baert et al., 2020). roman et al (2018) grounded their study on job demand-control (jd-c) theory (karasek, 1979) to describe that mobile technology use as a tool by employee to increase job control to deal with their job’s demand. it also described by karasek, that job control may closely related to organization’s structure and technology. as the result, it would reduce role stress and improve job satisfaction. therefore, the hypothesis is the following: h1. mobile technology use is negatively related to role stress supervisor support based on role dynamics theory, employees learn about their roles in organizations from members of their supervisors and co-workers through information communicated to them (kahn, et al., 1964). the combination of job’s high demands, but lacking of support and low control had higher risks of psychological stress (karasek & theorell, 1990). some studies recommended to reduce role stress according to classic organizational theory, which an employee must be supervised by direct supervisor (michael, et al., 2009). supervisor support is reflected by a degree of supervisor offer subordinate support, concern and encouragement (burke, et al., 1992). based on (french, et al., 2018), work support which defined as psychological or material resources can mitigate work stress. in the example, role stress which caused by overload can be reduced by supervisors and co-worker’s support (frone et al., 1997). supervisor support may affect employee’s performance and increased degree of supervisor support reduce role stress (babin and boles, 1996). in the context pandemic situation, wfh has negative effect on employee’s performance due to lack of supervision (lippe, 2019). lack of face to face communication with supervisor may impact negatively for employees. it is also challenge for supervisor to coordinate subordinate who are physically in different places (greer et al., 2014). degree of employee’s commitment may reduce as well as job satisfaction when there is lack of social support from organization (lynch et al., 1999). however, through mobile technology such as microsoft teams, zoom and others virtual meeting application, an employee may still get guidance and support from supervisor (vargo et al., 2020) during wfh. based on those previous studies, we propose the following hypothesis. h2: supervisor support is negatively related to role stress job insecurity economic instability incurred during pandemic covid-19 creates uncertainty for business going concern. the downturn may impacted to both employers and employees. many employers reduce employee’s benefits even laid off their employees to survive. this create doubts of job security for employees. job jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 20 33 insecurity is defined as insecure feeling (psychological condition) felt by employee due to working environmental changes (smithson & lewis, 2000). job insecurity also defines as powerlessness to maintain desired continuity in a threatened job situation (greenhalgh and rosenblatt, 1984). hellgren et al (1999) described job insecurity as subjective, implies uncertainty about the future and doubts of employment continuance. term quantitative job insecurity is referred to concern about future of current job. meanwhile, qualitative job insecurity is referred to perceived threats quality of employment relationship such as career progress and increase benefits (hellgren et al., 1999). the others studies found that job insecurity is significantly and negatively related to organizational attitudes, mental and physical health and performance of employee. this has been identified as main source of job stress (sverke et al., 2002, storseth, 2006). other study identified that job insecurity as major source of job stress which increased perception of overload and role ambiguity as well as reduced commitment and more negative outcomes (probst and brubaker, 2001). job insecurity is positively related to role stress and negatively related job satisfaction (masia and pienaar, 2011). according to previous studies, we propose our hypothesis as follow. h3: job insecurity is positively related to role stress role stress and job satisfaction employees were experiencing role stress owing to their role in organization (behrman and perreault, 1984). an employee is experiencing role stress when he or she tries to fulfill behaviors that are expected to perform assigned role (delpechitre et al., 2017). role stress is not only caused by pressure, but also due to employee’s perception of the demand and control of resources to deal with (cox, 1978). there was degree of variance how employee perceive job demand as strain of stressful (mulki et al., 2008). therefore, jd-c theory can be considered as highly stressful by some employees and plausible by others, subject to employee’s job control and resources. some researchers represented dimensions of role stress into role overload, role ambiguity and role conflict (johnson and sohi, 2014; mulki et al., 2008; singh, 1998). role conflict occurs when expectation and demands are incompatible (rizzo, et al., 1970). role ambiguity refers to lack of information or uncertainty of expectations from role sender (singh, 1998). role overload occurs when work demand expectations are not possible to be completed within given time limit (latack, 1981). job satisfaction is one of the most commonly studied in human resource literature. job satisfaction is expressed positive feeling of employee as the result of performance appraisal of his/her job (locke, 1976). many studies recognized that role conflict and role ambiguity are the role stressor as well as overload perception reduced job satisfaction of employees (mulki et al., 2008). roman, et al (2018) confirmed that role stress is negatively related to job satisfaction. thus, we propose a hypothesis as follow.h4: role stress is negatively related to job satisfaction role stress as mediation variable those hypotheses of h1, h2, h3 and h4 are also interpret that independent variables also related to job satisfaction through role stress as mediation variables. therefore, we propose the hypothesis as follow: h5: role stress mediates mobile technology use and job satisfaction h6: role stress mediates supervisor supports and job satisfaction h7: role stress mediates job insecurity perceptions and job satisfaction the research model is presented in figure 1 below. figure 1 – research model jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 20 33 methods data sources quantitative survey was conducted to collect empirical data. primary data collected through online questionnaires form to respondent in jakarta bogor depok tangerang and bekasi (jabodetabek). simple random sampling method was used in this research. researcher set two preliminary filters as the criteria for valid respondents limited to permanent employees and worked from home (wfh) during pandemic covid-19. sampling was done in february march 2021. total of 298 random respondents accepted and validated for total 244 respondents based on filter criteria. please see table appendix 1 for demographic characteristic of respondent’s. table 1 – research model data analysis tools and technique valid data were processed and analyzed using multiple regression analysis by ibm spss 23 version (spss). researcher applied t values at 0.05 significance level to examine direct effect of mobile technology use, supervisor support, and job insecurity to role stress as well as role stress to job satisfaction. the effect of role stress as mediating variable between mobile technology uses, supervisor support, job insecurity and job satisfaction have been examined by using process procedure for spss version 3.5 in spss. measuring instruments mobile technology use variable was consists of three constructs. two constructs was adopted from delvecchio and anselmi (2006) to measure extent of smartphones and laptop to conduct job activities during wfh. researcher was added virtual meeting application as additional construct of mobile technology. seven point likert questions was applied with ranged from 1 = “i do not use this technology at all in my job when wfh during pandemic covid-19” and 7 = “i use this technology a great deal in my job when wfh during pandemic covid-19”. the remaining scales were used seven-point likert questions ranged from 1 = “strongly disagree” to 7 = frequency % cumulative % gender female 127 52 52 male 117 48 100 total 244 100 age group <= 23 years old 8 3 3 24-30 years old 65 27 30 31-35 years old 53 22 52 36-40 years old 51 21 73 41-45 years old 26 11 83 > 45 years old 41 17 100 total 244 100 education junior high school 1 0 0 senior high school 9 4 4 bachelor 189 77 82 master 45 18 100 total 244 100 income/year below 100 million rupiah 72 30 30 101-300 million rupiah 96 39 69 301-500 million rupiah 34 14 83 above 500 million 42 17 100 total 244 100 numb er of wfh 1-2 days 49 20 20 3-4 days 71 29 49 more than 4 days 124 51 100 total 244 100 frequency % cum ulative % industries finance institution 43 18 18 mining 26 11 28 property and construction 17 7 35 trading 16 7 42 consum er goods 15 6 48 plantation and farm 14 6 54 infrastructure & utilities 13 5 59 chem ical industry 7 3 62 e-com m erce 3 1 63 other industries 90 37 100 total 244 100 work service period less than 2 years 34 14 14 2 5 years 73 30 44 6 10 years 62 25 69 more than 10 years 75 31 100 total 244 100 position staff 66 27 27 senior officer 29 12 39 supervisor 23 9 48 asisstant manager 23 9 58 manager 74 30 88 general manager 13 5 93 direktur 16 7 100 total 244 100 departm ent marketing & sales 29 12 12 finance & treasury 103 42 54 operasional 32 13 67 hr & it 21 9 76 others support function 59 24 100 total 244 100 size of com pany big 181 74 74 medium 42 17 91 sm all 21 9 100 total 244 100 virtual application use mteam s 119 49 49 zoom 80 33 82 google meet 29 12 93 webex 11 5 98 bluejeans 3 1 99 whatsup 2 1 100 total 244 100 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 20 33 “strongly agree”. six items measuring supervisor support were adapted from house and wells (1978). this scale has been used and reported high validity and reliability (deeter & ramsey, 1997). researchers used six items scale of job insecurity of hellgren et al. (1999). role conflict, role ambiguity and role overload were presented dimensions of role stress. those were measured from shortened version items from rizzo et al. (1970) and beehr et al. (1976). role overload scales have high validity and reliability (singh, 1998). meanwhile, rizzo et al.’s scale have been proved in many studies regarding both reliability and validity (roman and iacobucci, 2010). three items scale of job satisfaction was used in this study based on scale developed by churchill et al. (1974). the short version was determined positive evidence of reliability and validity (onyemah, 2009). results and discussion demographic of respondents from 244 respondents, 52% were female, 78% were bachelor graduates, 48% were in above 35 year age group, 61% were above supervisor level position, 80% of respondents have more than 3 days a week wfh experience during pandemic covid-19, 70% were in the above rp100 million/year income group and all respondents were used virtual meeting application during wfh. validity and reliability researcher was assessed the validity and reliability of 24 statements by performing a confirmatory factor analysis (cfa) and measuring reliability based on cronbach alpha value. standard loading for constructs were ranged from 0.565 to 0.911 which meaning that all items were good measures of respective factors (hair et al., 2010). scales reliability have been tested and found that all alpha coefficient greater than 0.70 (nunnally and bernstein, 1994). kaiser meyer olkin (kmo)’s value were ranged from 0.661 to 0.865 which the minimum above 0.5. the components have eigen value more than 1 which considered as a factor. based on the validity and reliability assessment (table ii) of the constructs, a further examination using multiple regression analysis was developed using these factors. table 2. validity and reliability multiple regression analysis multiple regression was conducted to examine the relationship between independent variables and dependent variable. prior to multiple regression analysis, it is used to check data for multicollinearity. researcher was adopted the tolerance value, as result of multicollinearity statistics, to detect whether any multicollinearity which presented in table ii. higher tolerance value means potential overlap between variables are low. tolerance value set by 0.5 or higher for this study to consider that there is no multicollinearity exist. as describe in table iii, the tolerance value is above 0.5, therefore, there is no multicollinearity problem between variables used in this study. table 3 – multicollinearity statistic multiple regressions was performed to examine the relationships between independent variables and dependent variable. as shown in table iv and table v, the relationship between mobile technology use, supervisor support, job insecurity and role stress was significant, f = 173.062, p < 0.001 with adjusted r squared of 0.680. it means those independent variables were explaining around 68% of role stress while remaining 32% was influenced by other variables. table iv – anova result factors range factor loading eigen values explained variance kmo cronbach's alpha mobile technology use 0.700 0.870 1.950 65.001 0.629 0.717 supervisor support 0.836 0.911 4.655 77.585 0.865 0.941 job insecurity 0.627-0.799 3.243 54.050 0.761 0.828 role stress 0.565-0.797 2.988 50.804 0.797 0.787 job satisfaction 0.761-0.896 2.147 71.560 0.661 0.796 collinearity statistics tolerance mobile technology use .918 supervisor support .862 job insecurity .910 model 1 sum of squares df mean square f sig. regression 114.426 3 38.142 173.062 .000 b residual 52.895 240 .220 total 167.320 243 b. predictors: (constant), mobile technology use, supervisor support, job insecurity model 1 a. dependent variable: role stress jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 20 33 table v – regression model fit summary further, the relationship between role stress and job satisfaction was statistically significant (table vi and table vii), f (328.451, p < 0.001 with adjusted r squared of 0.574. role stress was influenced the job satisfaction by 57.4% while other variables were not studied in this study were influenced job satisfaction by 42.6%. both r squared were indicated as adequate goodness of fit (read, 1998). table vi – anova result table vii – regression model fit summary hypothesis testing and result as shown in table viii, the result showed that mobile technology use (β = 0.323, p < 0.001) had positive relationship with roles stress. the positive relationship means increase of frequency mobile technology use would increase role stress. thus, h1 was not supported. table viii – multiple regression coefficients hypothesis 2 predicted a negative relationship between supervisor support and role stress. the standard regression supports h2. supervisor support (β = -0.356, p < 0.001) negatively significant to role stress which means higher supervisor support would resulted low role stress. job insecurity (β = 0.604, p < 0.001) was found had positive relationship with role stress. in other word, increasing in perceived job insecurity would increase the role stress. therefore, h3 was supported. the result is also indicated that replication of hypothesis 4 (role stress to job satisfaction) was supported. as shown in table ix, role stress (β = -0.759, p < 0.001) had negative relationship with job satisfaction. this means increases of role stress would decrease employee’s job satisfaction. table ix – regression coefficient further, researcher tested the direct and indirect relationship among mobile technology use and job satisfaction. the data analysis found that there is no significant direct relationship between mobile technology use and job satisfaction (β = 0.041, p = 0.247). the indirect effect of role stress as mediating variable, is tested by using hayes’s process procedure for spss. the confidence interval was 95% with number of bootstrap samples are 5,000. the range of bootllci and bootulci is -0.2477 to -0.0973. since it does not contain zero, therefore there is mediating effect. further, this was tested by including total direct and indirect effect of mobile technology use on job satisfaction. however, these paths failed to improve fit significantly. therefore, h5 was not supported. based on the regression analysis, supervisor support had significant direct positive relationship with job satisfaction (p< 0.001). further testing is performed to check whether role stress mediates supervisor support and job satisfaction. the table x shows that role stress mediates the relationship between supervisor support and job satisfaction. there was indirect effect of role stress as mediation variable since range of bootllci and bootulci is 0.1559 to 0.3392 (does not contain zero). therefore, h6 was supported. r r square adjusted r square std. error of the estimate durbinwatson 1 .827 a .684 .680 0.47 1.881 model a. predictors: (constant), mobile technology use, supervisor support, job insecurity b. dependent variable: role stress sum of squares df mean square f sig. regression 99.892 1 99.892 328.451 .000 b residual 73.600 242 .304 total 173.491 243 model 1 a. dependent variable: job satisfaction b. predictors: (constant), role stress r r square adjusted r square std. error of the estimate durbinwatson 1 .759 a .576 .574 0.55 2.092 model a. predictors: (constant), role stress b. dependent variable: job satisfaction standardized coefficients b std. error beta (constant) 1.804 .246 7.329 .000 mobile technology use .239 .028 .323 8.537 .000 supervisor support -.299 .033 -.356 -9.117 .000 job insecurity .531 .033 .604 15.888 .000 a. dependent variable: role stress model unstandardized coefficients t values p values 1 standardized coefficients b std. error beta (constant) 7.346 .164 44.760 .000 role stress -.773 .043 -.759 -18.123 .000 a. dependent variable: job satisfaction 1 model unstandardized coefficients t values p values jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 20 33 table x – mediating effect test (supervisor support – role stress – job satisfaction) based on the regression analysis, job insecurity had significant direct negative relationship with job satisfaction (p<0.001). this study found that role stress as mediation variable increases the effect of relationship between job insecurity and job satisfaction. table xi shows that result of process analysis described ranged of bootllci and bootulci from -0.5081 to -0.3265 (does not contain zero), it means that there is mediating effect. therefore, h7 was supported. table ix – mediating effect test (job insecurity – role stress – job satisfaction) conclusion during pandemic covid-19, employees in jabodetabek were experiencing wfh. this study provides evidence about relationship between mobile technology use, supervisor support, job insecurity, and role stress and job satisfaction during wfh in pandemic covid19. first, researcher found that mobile technology use is positively related to role stress, which is not consistent with previous study. in previous study, mobile technology use helped sales person achieved sales target during normal working condition (nonpandemic and non-wfh). those devices helped sales person to increase job control and deal effectively with high job demand. previous study was also exclusively focus on use of mobile technology during working hours. in this present study, respondents were randomly sampled to employees were experiencing wfh during pandemic. we found 75% of employees were working as support functions such as finance and accounting, human resource and information technology and other support departments. meanwhile, employees worked on sales and marketing department represented 12% from total respondents. in terms of position level, 39% of respondents are senior staffs and below, 49% are represents supervisor up to managers and 12% are general manager up to directors. as hierarchically, manager is a middle level management position below top management and above first level of supervision (wooldridge et al., 2008). thus, manager is a supervisor as well as he/she is being supervised (dutton & ashford, 1993). manager is more susceptible to role stress than others position (srivastava et al., 1994; balogun, 2003). business disruption, turbulent, downsizing of organization, decentralization have impacted role stress of manager (dopson & stewart, 1990; parker, 2005; harding et al., 2014). one of turbulent facing by organizations recently is pandemic covid-19. researcher found that, during wfh in pandemic covid-19, frequency of using mobile technology increases role stress. mobile technology use is expanding scope of work. this increase employee’s effort on adapting mobile technology (rangarajan et al., 2005), especially on new virtual meeting application and interface technology between laptop, smartphones and office’s server or system. mobile technologies were associated with role overload since user work harder to understand these technologies and used them remotely (wfh). skill discrepancy was one of difficulties in learning technology (tarafdar et al., 2007). around 74% of respondents are working in big companies. most of big companies have own integrated systems to support their business. company’s system have to be integrated with employee’s laptop and smartphone to keep all employees have connected to main system in office’s server. this may require interface system or application. for some companies, this interface is newly adopted during pandemic. those efforts create role stress by increasing role overload. by using mobile technology, employees are expected to work as faster as in normal conditions at office. laptop, smartphones and virtual meeting application are enabled employees to do multitasking. this creates feeling of having/solving many tasks/problems at the same time. excessive multitasking makes someone difficult to focus on one task in certain period of time. as the result, there will be no enough time to complete the tasks/job. it definitely increase indirect effect(s) of x on y: effect bootse bootllci bootulci role_st .2466 .0467 .1559 .3392 partially standardized indirect effect(s) of x on y: effect bootse bootllci bootulci role_st .2918 .0508 .1920 .3899 completely standardized indirect effect(s) of x on y: effect bootse bootllci bootulci role_st .2890 .0536 .1825 .3949 indirect effect(s) of x on y: effect bootse bootllci bootulci role_st -.4145 .0459 -.5081 -.3265 partially standardized indirect effect(s) of x on y: effect bootse bootllci bootulci role_st -.4905 .0465 -.5844 -.3987 completely standardized indirect effect(s) of x on y: effect bootse bootllci bootulci role_st -.4636 .0449 -.5519 -.3719 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 20 33 role overload as one of component of role stress. wfh is one of telecommuting practice. through telecommuting, employees are able to extend working hours at home due to expectation in responding e-mail and completing job timely. perception of role overload was increased due to mobile technology use since organization, customers, users, clients expecting employee to be available and responsive in dealing with deliverables, meetings and deadline (duxbury et al., 2014; vandelannoite, 2017). we found that almost 80% of employees were experiencing at least 3 days a week of wfh during pandemic. mobile technology (laptop/pc, smartphones and virtual meeting application) make employees plugged in all day during wfh, which caused exhaustion (ferguson et al., 2016; vandelannoite, 2017). job information overload through emails and messages application on laptop and smartphones increased role overload and role ambiguity. employees didn’t know what to do first and prioritize tasks (tarafdar et al., 2007). extension of mobile technology through virtual meetings has increased information flow and communication in the organization. virtual meetings application were emerged and developed during pandemic. number of individuals participating is becoming larger through virtual meetings (foster et al., 1984; huber 1990). multiple virtual teams can created role conflict when it operate differently (atanasoff and venable, 2017). an employee may join two or more teams that simultaneously work. this increases role set of individual which create role conflict and increase role stress (tarafdar et al., 2007). suhardi et al., (2020) found that use of virtual meeting technology during wfh in pandemic condition leads to frustration especially in dealing with technical issues and virtual meeting platform. despite virtual meeting application has positive impact on productivity of employees, it cause exhaustion as well to employees. in this context, employees who using mobile technology to meet his/her job role expectation, experienced exhaustion and increased role stress. direct relationship between mobile technology use and job satisfaction was not significant as well as total effect of technology use through role stress toward job satisfaction. second, this present study proposed that supervisor support has significant negative relation to role stress. the data analysis displayed that the hypothesis is supported. this is consistent with previous study (babin and boles, 1996). furthermore, role stress is mediating the supervisor support and job satisfaction of employees during wfh in pandemic condition. supervisor support is important to protect employees from role stress during wfh in pandemic condition. this is consistent with job demand control model. wfh during pandemic creates social distance between employee and his/her superior as well as reducing coaching session. a problem may solve in couple of minutes discussion in normal working condition. however, wfh is reducing physical interaction and face to face discussion, as the result, it may create miscommunication and delay in decision making. isolation from colleagues and friends was one of the disadvantage of wfh (messenger, 2019). one of challenge of physical distance practice in indonesia was society communication culture (rahman, 2020). indonesian are friendly, used to collaborate each other (gotong royong) and had close relationship called guyub. in cultural sociology of sundanese, need of face to face communication was very important (rosidi, 2020). further, indonesian believe that physical communication is one of appreciation to others (hidayat et al., 2018). further, supervisor’s characteristic was involved in communication and interaction. passive supervisor was increased role stress (barling and frone, 2017). kaushik and guleria (2020) found that wfh may disengage employee from supervisor. attention from direct superior was lessening role stress and increase job satisfaction. most of respondents agreed that supervisor support is very helpful in reducing role stress. third, researcher found that perception on job insecurity is positively related to role stress which support previous studies. the data analysis showed there was indirect effect of role stress as mediation variable between job insecurity and job satisfaction. this is support the job demand resource model as job insecurity is one of variable of job demand. job insecurity was the most frequently examined stressor of role stress involved in recession condition (hellgren and sverke, 2001). other study found that role stress was increased after business recession and downsizing organization (tombough and white, 1990). role stressor consistently correlate negatively with job satisfaction (pozner and randolph, 1980). business and industries were slowed down during pandemic which directly impact to business performance. many commercials laid off their jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 20 33 employees. this condition creates insecure feeling and relates to job loss, physiological strain of powerless position and ambiguity of continuity employment (yaslioglu et al., 2013). around 74% of respondents were working in big companies and they’re felt that their job are secure in the future despite of economic downturn due to pandemic. big companies were used to engage in downturn condition and have a business recovery plan. this creates employee’s confidence and increase their satisfaction. finally, confirming other studies, researcher found that role stress has negative relationship with job satisfaction. failure in preventing role stress creates low job satisfaction perception. practical implications the research findings showed that during pandemic condition, employees in jabodetabek are exposed to new working environment applied by businesses and industries. adoption of wfh were facing challenges in early period of pandemic. wfh is required employees to engage with mobile technology and its applicable application to perform and deliver same result as normal condition (work at office). this present study showed that high frequency of using mobile technology such as laptop/pc, smartphones and virtual meeting application have a positive significant relationship to employee’s role stress. wfh policy should be established by employers to facilitate new working behavior and in other hand handling business requirements. human resources and information technology (hrit) division have an important role to maintain balance of its policies. some policies should be rigid, meanwhile others policies could be more flexible. use of digital technology is a requirement for employees who working from home. employees should be able to use devices, applications, software, vpn and internet of things related to job. hrit is required to socialize and on line train their employees in using the mobile technology devices, including related software, etc. employers have to ensure that wfh’s employees have full access of hardware, software, internet access, applications and provide on-line technical support for troubleshooting. the information communication technology (ict) policy is one of the rigid rule to be complied by employees during wfh. right of use of those properties provided by employers only for job related and company business only. they have to understand and abide ict policies in order to safeguard company’s data, security and confidentiality. any harm of ict policies will bear the consequences. this study found that higher frequency of using mobile technology is leading to role stress. normal working hour policy is suggested to be applied to balance the loading of work. employees are required to work in normal working hours during wfh except for some employees, who are experiencing of work home conflict, have flexible arrangement of his/her working hours permitted by employers. however, weekly working hours and job responsibilities may not be changed. employers may support wfh policy with providing employees with ergonomic tools such as move available office chair and desk to home. this would help employees avoid high exhaustion during long hours deal with mobile technology. those modified policies make employees understand regarding wfh term and condition as well as comfort in using mobile technology to perform their job well. supervisor support was found as an important factor that reduce employee’s role stress during wfh. challenges of wfh are lack of communication and interaction between employee and his/her superior/supervisor. employees felt disengaged with organization and his/her supervisor. as previously said, isolation from social life may be added mental strain. hr division have an important role to keep employees engaged during wfh. middle level management including supervisor should be trained how communicate effectively and keep control on their subordinates during wfh. hr may provide them with virtual coaching training, webinars and so on. hybrid wfh policies may be applied during pandemic with tight health protocols. employees may have roster schedule to work or meeting at office to lessen miscommunication amongst coworkers or supervisors. on the other hand, hr should emphasize employees to comply with health safety protocols at office, provide meeting rule and perform regular office sanitation. hr should create policy for employees who scheduled work from office need to submit online health assessment in application one day before. honesty is a key here. the health assessment have to be approved first before employees come to office. any covid-19 symptoms post working at office to be reported immediately to track close contacts and avoid spreading. other policy to be considered is on line counselling to sense employee’s feeling jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 2, 2021, pp. 20 33 and overcome their difficulties in doing wfh during pandemic. those policies set clear wfh’s rules and support from employers may alleviate phycology strain as well as improve supervisor’s skill in terms of communication in supporting subordinates to lessen pressure of role stress. pandemic covid-19 was impacted to business going concern especially for small to medium business. big business or organization can be survived because of their capital structure, experience and business strategy. however, many businesses were closed, downsized and laid off their employees. perception on job insecurity during pandemic have impacted to employee’s role stress and job satisfaction. it should be managed properly since organization need to ensure the business continuity as well as employee’s productivity. hr should pay attention on quantitative and qualitative dimension of job insecurity. quantitative dimension represents concern on current job continuance and qualitative dimension represents concern on loss of job feature for example career promotion, compensation and benefits. leaders have to engage with employees in uncertain condition to ensure that they are aware of employee’s anxiety and ambiguity. leaders need to open about organization’s condition and strategy to cope with uncertainties including postpone salary increase, promotion or even reduce compensations, benefits and bonuses. for example, instead of permanent layoff, hr may offer unpaid leave policy during pandemic. however, the purpose of those policies should deliver to employees clearly which to keep business survive. those policies may apply flexible in accordance to organization financial condition. financial assistance policy may be determined to help employees dealing with wfh and pandemic such as reimbursement of certain costs of internet connection, sanitization stuffs, taxi/cab cost for roster employees work at office (to avoid public transport such bus, train and so on) and provided office lunch (to avoid crowd during break). those policies may be applied by organization to reduce perception on job insecurity as well as lessen role stress and increase job satisfaction. finally, wfh practice in jabodetabek is a new phenomenon due to pandemic covid-19. wfh during pandemic may be different with flexible working practices applied by few international companies in indonesia. this phenomenon creates shock in working behavior. organizations are expected to learn from this phenomenon in order to provide sufficient resources, develop policies and apply appropriate strategies. hrit may redefine organization policies related to this new working behavior and set whether to apply it rigidly or flexible/elastic in accordance to each organization’s condition and aligned with its organization culture. limitation and future research this study has several limitations which could be opportunities for future study. this study proposed three factors may affect role stress and job satisfaction during wfh in pandemic condition, which are mobile technology use, supervisor support and perception of job insecurity. future research should examine other factors that affect role stress and job satisfaction such as organizational support, co-worker support, family work conflict, technostress, autonomy and characteristic of work. this study is focusing on employee’s perspective. the future study may focus on exploring from organization’s perspective to expand the understanding of factors may affected role stress and job satisfaction. future research may explore on the qualitative dimension of use mobile technology and psychological consequences. samples of respondents could be expanded outside jabodetabek and timing of questionnaire survey may be extended. future research may include additional outcomes (e.g. job performance or job productivity). finally, future research may exploring which of hrit policies to be applied rigidly or flexible. in conclusion, this present study is one of the few attempts in capturing the relation between mobile technology use, supervisor support, job insecurity, and role stress and job satisfaction during wfh in covid-19 pandemic. this study contributes to companies in terms of hrit strategies and policies in arranging wfh or telecommuting practices as well as organization behavior. references andreev, p., salomon, i., & pliskin, n. 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(2016), “employees’ acceptance of mobile technology in a workplace: an empirical study using sem and fsqca”, journal of business research, vol. 69 no. 6, pp. 23182324. correspondence to falinagunata@gmail.com received: 5 september 2019 accepted:17 november 2019 published: 16 december 2019 jurnal akuntansi, manajemen dan ekonomi vol.21, no.3, pp. 75-80 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the potential of health industry in indonesia is not optimal yet because of limited number of the industry players (kemenkes, 2017) while health is an important factor. based on the 2016 data of the ministry of health, there are 214 companies of pharmaceutical industry in indonesia. compared to the total population of indonesia of about 257 million, this indicates limited number of the industry players (detik.com accessed on march 18, 2019 at 21.00) a business should have competitive advantage to attract the consumers and make them willing to pay for what is offered and trust in the brand. consumers’ level of trust in brand of pharmaceutical products is still lacking or often misguided (rotfeld, 2009). according to shrank, 2009, consumers still believe in the ‘ada harga ada kualitas (you get what you pay for)’ principle, in which they assume that generic drugs’ quality is worth their price. only few consumers are willing to change to generic drugs. there are two types of drugs in in indonesia, which are patent medicine and generic drug. patent medicine is medicine first produced or marketed by pharmaceutical industry after conducting various kinds of clinical tests. this medicine is expensive since it has passed various kinds of tests. generic drug consists of two types, generic drug with logo (ogb) and generic drug with brand. the two have the same active ingredients and efficacy with those of patent medicine. the difference between generic drugs with logo and generic drugs with brand is that the first comes with simple package as provided by the government and the latter comes with package pursuant to producer and also with additional ingredients. generic drugs with brand are commonly added with additive so as to reduce its smell unpleasant aroma. (dinkes.kalbarprov .go.id accessed on march 18, 2019 at 23.12) antecedents and consequences of brand trust for pharmaceutical drug products falina gunata, pramono hari adi, ary yunanto magister management, faculty of economics and business, universitas jenderal soedirman, indonesia abstract the health industry potential in indonesia is not optimal yet because of limited number of players in this industry (kemenkes, 2017) even if health is an important factor. based on the 2016 data of the ministry of health, there are 214 companies of pharmaceutical industry in indonesia. compared to total indonesian population of about 257 million, this indicates the limited number of the industry players (detik.com accessed on march 18, 2019 at 21.00). to be attractive to the public, a business should have competitive advantage and consumers’ trust so as to attract consumers and make them willing to pay for what is offered and trust its brand. consumers’ level of trust in brand of pharmaceutical products is lacking or often misguided (rotfeld, 2009). researches on brand trust in pharmaceutical products have not been conducted extensively and therefore result in difference between theory and field fact. the author studies brand trust in pharmaceutical products using the consumer – brand characteristics variable as the indicator of brand image and brand personality, brand liking, brand experience, brand satisfaction, and peer support. according to (matzler, 2016) brand trust influences customer loyalty. 100 respondents are taken as the samples using a purposive sampling technique, which is based on certain criteria for maximum information. this research’s criteria are 21 to 60 years old non-health worker. the analysis employs sem with software spss amos. the research concludes that brand image, brand personality, brand experience, brand satisfaction, and peer consumer influence brand trust, and brand trust influences consumer loyalty. keywords brand image, brand personality, brand liking, brand experience, brand satisfaction, peer support, trust in a brand, brand loyalty jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 75-80 shrank, 2009, explains that drugs which have been marketed for a long time are safer than those newly marketed, so that consumers trust in patent medicine more than in generic drugs. according to lesley, 2010, consumers get confused or are not sure if they are to shift to generic drugs since they are not sure of the quality and efficacy of generic drugs. according to touzani, 2016, consumers have negative opinion about the quality, efficacy and side effect of generic drugs, so that they tend not to shift to other brand in case a drug is to treat a disease which they assume dangerous. marketers should focus on building and maintaining trust in customer relations with a brand through symbol to acquire customers’ loyalty to the brand. if a group trusts other groups, the group will be likely to develop some positive behaviors towards the other groups. according to (lau and lee, 1999), trust in a brand is affected by brand characteristics, company characteristics and consumer-brand characteristics. customers’ level of trust in a brand affects the customers’ loyalty level. when customers trust in a brand, the customers will show positive or loyal attitude and behavior towards the brand since the brand renders positive result. researches on trust in a pharmaceutical brand are not really extensive and there, therefore, are differences between theory and field fact. the author studies brand trust in pharmaceutical products using the consumer – brand characteristics variable with brand image and brand personality, brand liking, brand experience, brand satisfaction, and peer support as the indicators. brand characteristics and company characteristics are not taken as the variable since drugs used by patients or to be chosen by patients are previously, first selected by physician or pharmacist (fraeyman, 2015), since they are aware of the side effect, effectiveness, equivalence, etc. (hussaini, 2018). brand image, brand personality, brand liking, brand experience, brand satisfaction, and peer support influence consumer trust in a product (lau & lee, 1999). according to (stein, 2013), consumer trust in a brand is influenced by brand experience. according to (deheshti, 2016), brand image and brand personality influence brand trust. according to (munnuka, 2016), peer support also influences brand trust. brand trust influences customer loyalty (attitudinal and behavioral) (matzler, 2016). customer loyalty has become a benchmark for marketing success. loyalty bears a strategic meaning for a company related to entry barrier for competitor, improve corporate capability to respond to competitor’s threat, enhance sales and income, and make customers less sensitive to efforts made by competitors.. literature review brand image and brand personality brand image & brand personality are the brand of the product with conformity or similarity to it in evaluating and assessing the brand. according to (deheshti, 2016), brand image and brand personality are correlated with brand trust, thus it is necessary to improve the strategy and quality, so that the product’s brand image will conform to consumer’s brand image. this way, the higher the brand image and brand personality, the higher consumers’ level of trust in a brand will be. according to the research conducted by (chinomona, 2016), brand image influences brand trust through communication. consumers trust more in and are more loyal to brand with brand image and good reputation. according to the research conducted by (xiao, 2017), brand personality positively influences brand trust. in line with xiao’s opinion, according to (yongjun, 2010), brand personality are strongly correlated with brand trust. consumer perception of the characteristics of a brand personality is highly important to determine consumer trust in a brand (brand trust). brand image is the association of a brand with consumer memory. the examples of brand personality’s characteristics of consumers are age, gender, social and economy with brand. consumers will assess the brand. in case the brand has similarity to consumers’ self-image, they will be likely to trust in the brand (lau & lee, 1999). brand liking brand liking means that consumers like a product’s brand, so that they may start relationship between company (brand) and customers. brand liking is acquired from previous experience and reference (smit et al., 2006 in imronudin et al., 2015). to be attached to a brand, consumers must like the product first (nazeer, 2015). salespeople tend to enhance consumers’ brand trust to build brand liking. when consumers prefer the brand to other brand, this will make consumers trust in the brand (nazeer, 2015). brand experience jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 75-80 brand experience is when consumers learn from their previous experience which may, in this case, give an overview of future behavior. the experience obtained from this brand will result in positive behavior. according to the research conducted by (delgado–ballester, 2001), brand experience will influence brand trust if consumers are highly involved in the brand. when consumers’ involvement in the brand is not dominant, the relation between brand experience and brand trust is none. according to the research conducted by (sahin, 2011), brand experience influences brand trust. brand experience enhances consumer trust in the brand they are going to find, buy and consume. brand experience is correlated with brand trust, since when consumers have used the product and are satisfied with it, they will trust the brand (wardani & gustia, 2016). consumers will learn from their experience and influence the prediction of their future behavior. when consumers have good experience with the brand, their trust in the brand will grow even more tjahyadi (2006). brand satisfaction brand satisfaction is that consumers get satisfied more than what they have expected after using the product and making evaluation. if the brand fulfills consumer satisfaction and maintain their promise (consistent), consumers will behave positively. there is positive correlation between brand satisfaction and brand trust (ellonen, 2008) and significant correlation between brand satisfaction and brand trust in brand with high involvement (jain, 2017) according to the research conducted by menidjel (2017), brand satisfaction positively influences brand trust of brand with high involvement with consumers. when company fulfills what is promised and consumers are satisfied with the brand used (lau & lee, 1999), company keeps what it has promised, which will influence consumer trust in the brand. peer support peer support is social influence like family, close friends and community which influence consumers to take a stand on the brand. according to toivonen (2016), peer support influences brand trust since with peer support, advertisement will be effective reliable peer support will lead to positive attitude (trust in) towards the brand. a person’s behavior is highly important to influence others (lau & lee, 1999). good communication in marketing is very important since it will influence others (peer support). consumers will trust a brand that others or other parties have chosen and used or have information of (lau & lee, 1999). brand trust and customer loyalty brand trust influences consumer loyalty. consumers’ higher trust in a brand will improve their loyalty to the brand. when their trust in the brand is low, their satisfaction and loyalty to the brand will be low (deheshti, 2016). brand trust has significant effect on brand loyalty (sahin, 2011). the higher the consumers’ level of trust in a product, the higher their loyalty to the brand will be (sahin, 2011). trust is something important in influencing customer loyalty to items with high involeemtn with consumers (sahin, 2011). customer loyalty to a brand is based on consumers’ level of trust in the brand, since they have used and are satisfied with it. furthermore, consumers tend to buy repeatedly and recommend others of the brand or company (lau & lee, 1999). method this quantitative research employs survey, of which data are the samples of the total of population. the research’s samples are 70 people with criteria of 21–60 years old nonhealth workers. the data interval instrument is employed to measure the data. the likert scale is employed, which is designed to determine the extent of subject’s influence with 5 points of scale with agree and disagree statements. results and discussion this research model consists of 5 (five) constructs: brand image and brand personality (x1), brand liking (x2), brand experience (x3), brand satisfaction (x4), peer support (x5), brand trust (z) and brand loyalty (y). the measurement model evaluation is the phase of testing the validity and reliability of a construct. construct validity test construct validity test is aimed to examine whether or not the indicators used to measure latent variable are valid. the validity of each indicator in measuring latent variable is shown jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 75-80 by the extent of loading factor. an indicator is declared valid if the loading factor of an indicator is positive and higher than 0.5. the validity test results are presented in the table 1. table 1. validity test variable indicator estimate cut off remark brand image and brand personality x1_1 0.920 0.5 valid x1_2 0.946 0.5 valid brand liking x2_1 0.916 0.5 valid x2_2 0.940 0.5 valid x2_3 0.938 0.5 valid brand experience x3_1 0.997 0.5 valid x3_2 0.912 0.5 valid brand satisfaction x4_1 0.970 0.5 valid x4_2 0.988 0.5 valid x4_3 0.886 0.5 valid peer support x5_1 0.731 0.5 valid x5_2 1.009 0.5 valid brand trust z1_1 0.847 0.5 valid z1_2 0.817 0.5 valid brand loyalty y1_1 0.698 0.5 valid y1_2 0.602 0.5 valid y1_3 0.711 0.5 valid y1_4 0.743 0.5 valid based on the table, we may observe that all of the question indicators used to measure the brand image and brand personality (x1), brand liking (x2), brand experience (x3), brand satisfaction (x4), peer support (x5), brand trust (z) and brand loyalty (y) variables have loading factor value higher than 0.5. therefore, the indicators are declared valid to measure the variables. construct reliability test construct reliability test is conducted using cronbach’s alpha technique. the test criteria state that if cronbach’s alpha coefficient ≥ 0.6, we may state that the construct is reliable or the indicator is consistent to measure the variables. the summary of reliability test results is presented in the table 2: table 2. reliability test variable cronbach’s alpha cut off remark brand image and brand personality 0.923 0.6 reliable brand liking 0.948 0.6 reliable brand experience 0.947 0.6 reliable brand satisfaction 0.959 0.6 reliable peer support 0.848 0.6 reliable brand trust 0.952 0.6 reliable brand loyalty 0.931 0.6 reliable based on the table, we may observe that the cronbach’s alpha value of the brand image and brand personality (x1), brand liking (x2), brand experience (x3), brand satisfaction (x4), peer support (x5), brand trust (z) and brand loyalty (y) variables are higher than 0.6. therefore, based on cronbach’s alpha calculation, all indicators to measure the brand image and brand personality (x1), brand liking (x2), brand experience (x3), brand satisfaction (x4), peer support (x5), brand trust (z) and brand loyalty (y) variables are declared reliable. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 75-80 model fit and proper test construct (model) fit and proper test is aimed to observe whether or not the construct formed is appropriate (fit). there are some test indexes in sem analysis, which are rmsea, gfi, agfi, tli and cfi. the criteria using rmsea state that if rmsea value ≤ cut off value (0.08), the construct formed is appropriate (fit). finally, the criteria using gfi, agfi, tli, and cfi state that if goodness of fit value ≥ cut off value (0.90), the model formed is appropriate (fit). the summary of model fit and proper test results is presented in the table 3. based on the summary of goodness of fit, we may observe that the tli, nfi, cfi and rmsea approaches employed results in fit model conclusion, thus the theory hypothetical test may be continued. hypothesis test hypothesis test is aimed to test whether there is direct influence of exogenous variable on endogenous variable. the significance may be found out through p value. the test criteria state that if p value < level of significance (alpha (α=0.05)), then exogenous variable significantly influences endogenous variable. the analysis results may be observed in the summary presented in the table 4. table 3. goodness of fit test result index goodness of fit cut off value remark nfi 0.652 close to 1 marginal of fit tli 0.616 close to 1 marginal of fit cfi 0.676 close to 1 marginal of fit rmsea 0.280 ≤ 0.10 marginal of fit table 4. hypotheses test hypothesis exogenous endogenous coef. c.r p value remark h1 brand image and brand personality brand trust 0.495 8.924 0.000 significant h2 brand liking brand trust 0.247 5.253 0.000 significant h3 brand experience brand trust 0.527 9.517 0.000 significant h4 brand satisfaction brand trust 0.476 8.448 0.000 significant h5 peer support brand trust 0.383 6.091 0.000 significant h6 brand trust brand loyalty 0.997 8.032 0.000 significant the table 4 informs that: 1. the test of influence of brand image and brand personality on brand trust results in c.r (critical ratio) of 8.924 and p value of 0.000. the test result shows that p value < level of significance (alpha = 0.05), which means that brand image and brand personality significantly influence brand trust. the coefficient is positive 0.495, indicating that brand image and brand personality positively influence brand trust. this means that higher brand image and brand personality tend to improve brand trust. 2. the test of influence of brand liking on brand trust results in c.r (critical ratio) of 5.253 and p value of 0.000. the test result shows that p value < level of significance (alpha = 0.05), which means that brand liking significantly influences brand trust. the coefficient is positive 0.247, indicating that brand liking positively influences brand trust. this means that higher brand liking tends to improve brand trust. 3. the test of influence of brand experience on brand trust results in c.r (critical ratio) of 9.517 and p value of 0.000. the jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 75-80 test result shows that p value < level of significance (alpha = 0.05), which means that brand experience significantly influences brand trust. the coefficient is positive 0.527, indicating that brand experience positively influences brand trust. this means that higher brand experience tends to improve brand trust. 4. the test of influence of brand satisfaction on brand trust results in c.r (critical ratio) of 8.448 and p value of 0.000. the test result shows that p value < level of significance (alpha = 0.05), which means that brand satisfaction significantly influences brand trust. the coefficient is positive 0.476, indicating that brand satisfaction positively influences brand trust. this means that higher brand satisfaction tends to improve brand trust. 5. the test of influence of peer support on brand trust results in c.r (critical ratio) of 6.091 and p value of 0.000. the test result shows that p value < level of significance (alpha = 0.05), which means that peer support significantly influences brand trust. the coefficient is positive 0.383, indicating that peer support positively influences brand trust. this means that higher peer support tends to improve brand trust. 6. the test of influence of brand trust on brand loyalty results in c.r (critical ratio) of 8.032 and p value of 0.000. the test result shows that p value < level of significance (alpha = 0.05), which means that brand trust significantly influences brand loyalty. the coefficient is positive 0.997, indicating that brand trust positively influences brand loyalty. this means that higher brand trust tends to improve brand loyalty. conclusion based on the research results discussed above, we may conclude that: 1. brand image and brand personality positively influence brand trust. this means that better brand image and brand personality tend to improve brand trust. 2. brand liking positively influences brand trust. this means that higher brand liking tends to improve brand trust. 3. brand experience positively influences brand trust. this means that higher brand experience tends to improve brand trust. 4. brand satisfaction positively influences brand trust. this means that better brand satisfaction tends to improve brand trust. 5. peer support positively influences brand trust. this means that better peer support tends to improve brand trust. 6. brand trust positively influences brand loyalty. this means that higher brand trust tends to improve brand loyalty. references carroll, n. v., & wolfgang, a. p. 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(2014). antara obat paten dan generik. tribun news. accessed http://farmasi.ugm.ac.id/files/ piotribun/2014-9-07698043antara-obat-paten-dan-generik.pdf leonard, e., & prevel katsanis, l. (2013). the dimensions of prescription drug brand personality as identified by consumers. journal of consumer marketing, 30(7), 583-596. kevin, l. k. (2013). strategic brand management. united states of america: pearson prentice hall, inc ladha z. (2007). are consumers really influenced by brands when purchasing pharmaceutical products?. journal of medical marketing. 7(1), 146-151. lau, g. t., & lee, s. h. (1999). consumers' trust in a brand and the link to brand loyalty. journal of market-focused management, 4(4), 341370. medistiara, y. (2016). baru ada 214 industri farmasi di indonesia, kemenkes: harusnya ribuan. accessed https://finance.detik.com /berita-ekonomi-bisnis/d-3336321/baruada-214-industri-farmasi-di-indonesia-kemenkes-harusnya-ribuan priyambodo, b. (2014). jalan panjang penemuan obat baru. accessed https://priyamhttps://priyambodo1971.wordpress.com/2014/03/27/jalan-panjang-penemuan-obat-baru/ jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 75-80 bodo1971.wordpress.com/2014/03/27/jalan-panjangpenemuan-obat-baru/ rotfeld, h. j. (2009). function and problems of brand name pharmaceuticals. journal of product & brand management, 18(4), 240241. setyawan, a. a., & imronudin, k. (2015). brand trust and brand loyalty, an empirical study in indonesia consumers. british journal of marketing studies, 4(3), 37-47. shrank, w. h., cox, e. r., fischer, m. a., mehta, j., & choudhry, n. k. (2009). patients’ perceptions of generic medications. health affairs, 28(2), 546-556. suliyanto. (2018). metode penelitian bisnis. yogyakarta: penerbit andi tjahyadi, r. a. (2006). brand trust dalam konteks loyalitas merek: peran karakteristik merek, krakteristik perusahaan, dan karakteristik hubungan pelanggan-merek. jurnal manajemen maranatha, 6(1), 65-78. touzani, f. s. (2016). country-of-origin versus brand: consumers’ dilemma when choosing between generic and branded drugs in emerging countries. journal of product & brand management, 25(2), 148-159. https://priyambodo1971.wordpress.com/2014/03/27/jalan-panjang-penemuan-obat-baru/ https://priyambodo1971.wordpress.com/2014/03/27/jalan-panjang-penemuan-obat-baru/ https://priyambodo1971.wordpress.com/2014/03/27/jalan-panjang-penemuan-obat-baru/ correspondence to : riski.etikare@gmail.com received: feb, 11, 2020 revised: april, 12, 2020 accepted: july, 3, 2020 jurnal akuntansi, manajemen dan ekonomi vol.22, no. 3, pp. 1 7 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the accounting information contained in the financial statements contains information for decision making. therefore, financial statements are required to present true, honest and effective information which does not harm the user's financial statements. therefore, financial statements must be integrity. the integrity of financial statements is a measure of management in the quality of information presented free from bias, honest and not misleading to its users. the case of deviation on financial statement occurred at pt. myrx which is subject to ojk sanctions on the case of manipulation of financial statements. the company presents the financial report 2016 overstated with a material value of rp. 613 billion, the report is assessed in violation of psak 44 about accounting of real estate activity. where the company recognizes revenues using the full accrual method and does not reveal the binding agreement on sale and purchase lot ready to build worth rp. 732 billion (wicaksono, 2019). such conditions reflect unintegrity financial statements. integrity of financial statements issues can also be characterized in companies that do the financial report restatement. companies in sub-sector property and real estate which gets financial reports restatement tend to fluctuate and in the year 2018 there is a triples increase with 9 companies that do the financial report restatement. when compared to the number of companies in sub-sector property and real estate, the number of companies that perform the representation is relatively small by 16%. nevertheless, if left alone will mislead users of financial statements in decision making. some research related to the integrity of financial statements and the factors that can affect them are explained in the next paragraph. corporate governance is a pattern of relationships, systems and processes used by the company to provide added value to shareholders. according to research conducted nurdiniah & pradika (2017) by using the mechanism of corporate governance that describes the company's good control impact on the financial statements of integrity. meanwhile, according to tussiana & lastanti (2016) that corporate governance has no effect on the integrity of financial statements. audit quality is the ability of an auditor to ensure there is no misserved in financial influence of corporate governance, factors of auditors, and gender diversification on integrity of financial statements riski etika suhendra1, majidah2 1,2,3,4department of accounting, faculty of economics dan business, telkom university, indonesia abstract this research aims to determine the influence of corporate governance, audit quality, industry specialisation of auditors, and gender diversification on the integrity of financial statements, both simultaneously and partially. the population in this research is the entire sub-sector property and real estate company listed on the indonesia stock exchange in 2016-2018. the sample determination in this study used purposive sampling and obtained 96 samples. data analysis uses descriptive statistical analysis and logistic regression analysis. the results showed that corporate governance, audit quality, industry specialization of auditors, and gender diversification are the simultaneous effect on the integrity of financial statements. partially, the industry's specialty of auditors has a negative effect on the infidelity of financial statements, while corporate governance, audit quality, and gender diversification have no effect on the integrity of financial statements keywords integrity of financial statements, corporate governance, audit quality, industry specialization of auditors, gender diversification mailto:riski.etikare@gmail.com jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 1 7 statements. qualified auditors will encourage the company to present a financial report with integrity. the results of the research conducted by nurjannah & pratomo (2014) said that the quality of the audit will affect the financial statements that are presented free of mismanagement with caution in the face of uncertainty. unlike the results of research conducted by hardiningsih (2010) stating that the quality of audit has no effect on the integrity of financial statements. the specialty of the auditor industry is an audit factor conducted to provide quality audits by having more knowledge of the client industry, detecting presentation errors so that the audits are accurately provided. this is in line with research of fajaryani (2015) stating that the industry's specialization of the auditor demonstrated a specialist auditor having adequate experience to promote the integrity of financial statements through its audit results. inversely proportional to the research of tussiana & lastanti (2016) stating that the specialist of industrial auditors has no effect on the integrity of financial statements. gender diversification is a gender role in presenting financial statements. the existence of gender diversification in the company can bring new perception in decision making. with the correct decision making, the company's performance will be better and affect the presentation of the financial statements that are presented in real or integrity. according to the research done majidah & muslih (2019) which states the proportion of women in decision making is cautious and careful than men who tend to be pragmatic that encourages the integrity of financial statements through decision. this is inversely proportional to the research of abbott, parker, & presley (2012) stating that female directors have an effect on financial restatement identifying unintegrity reports. financial statements financial statements are the final product of an accounting process that generates the financial information of an entity at a certain period and reflects the financial performance (sujarweni, 2017:1 ; hery, 2015:3). financial statements are presented to provide useful information to users of financial statements, especially as a basis of consideration in decision making. the purpose of the financial statements according to kieso, waygandt, & warfield (2008:5) is to provide information relating to financial position, performance, as well as changes in financial position of a company that is beneficial to a large number of users report financial decision making. the financial statements presented for this purpose meet the needs of a shared user financial statement. integrity of financial statements financial information in general does not escape the risk of presenting financial statements that are deemed not to reflect the actual picture, which is intentional or not. therefore, financial information is required for integrity, so the information is not misleading in the decision-making. high-integrity reports must meet two key characteristics in a financial statement. according to sfac no. 2 in fasb (1980) on qualitative characteristic of accounting information, there are two things that are the primary qualities in financial statements, namely relevance (relevance) and reliability. the integrity of the financial statements in this study is being proxed with conservatism. the principle of conservatism is used on the grounds of the conservatism which presents the understate financial statements, which have a less risk than the overstate financial statements (fajaryani, 2015). conservatism is measured using accrual measures based on the model givolyn and hayn (2002). here are the formulas used for measuring these variables: 𝐶𝑂𝑁𝑁𝐴𝐶𝐶 = nlit − cfoit description: con_acc = rate of accounting conservatism nlit = profit before extraordinary items + depreciation of company i in year t cfoit = cash flows from the operating activities of the company i in year t the conservatism in this study used dummy (1) conservatism and (0) optimistic (non-conservative). the company can be said to be unconservative when connacc value above zero (positive). however, the company is said to be conservative when the connacc value is below zero (negative). because the profit presented on the financial statements is smaller than the cash flow available for operating activities (indrasari, 2016). corporate governance corporate governance disclosure is the instrument used to disclose the company's information. the company uses the annual jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 1 7 report as a means to establish corporate governance. calculation of corporate governance disclosure indexs if disclosed is given a score of 1 and if not disclosed was given a score of 0 (juan l, 2008 in majidah & habiebah, 2019). calculations use the ratio as follows: 𝑪𝑮𝑫 = 𝑺𝒄𝒐𝒓𝒆 𝒂𝒏𝒏𝒖𝒂𝒍 𝒓𝒆𝒑𝒐𝒓𝒕 𝒄𝒐𝒓𝒑𝒐𝒓𝒂𝒕𝒆 𝒈𝒐𝒗𝒆𝒓𝒏𝒂𝒏𝒄𝒆 𝑴𝒂𝒙𝒊𝒎𝒖𝒎 𝒕𝒐𝒕𝒂𝒍 𝒔𝒄𝒐𝒓𝒆 audit quality audit quality can be measured by earnings surprise benchmark (pasiwi & majidah, 2016). earnings surprise benchmark used is between μ – σ and μ + σ, where μ is the average earnings/total assets and σ is its deviation. the quality of audits in this study is measured using dummy variables, if the μ-σ < roa is < μ + σ it is a value of 1 and this indicates quality of audits if roa > μ + σ or roa < μ – σ then the value 0 and it shows audit is not quality industry specialization of auditors specialisation in the auditor industry can be measured using market share approach method. according to gul, fung, & jaggi (2009) in karman, abdib, & ardinac (2017) this method assumes that specialization in auditors is the result of the experience of conducting audits of large business volumes within an industry. calculation of specialty industry auditors as follows: 𝑺𝑷𝑬𝑺 = ʃ 𝒌𝒍𝒊𝒆𝒏 𝑲𝑨𝑷 𝒊𝒏𝒅𝒖𝒔𝒕𝒓𝒊 ʃ 𝒆𝒎𝒊𝒕𝒆𝒏 𝒊𝒏𝒅𝒖𝒔𝒕𝒓𝒊 𝒙 𝒙 𝒂𝒔𝒆𝒕 𝒌𝒍𝒊𝒆𝒏 𝑲𝑨𝑷 𝒊𝒏𝒅𝒖𝒔𝒕𝒓𝒊 𝒙 𝒂𝒔𝒆𝒕 𝒔𝒆𝒎𝒖𝒂 𝒆𝒎𝒊𝒕𝒆𝒏 𝒊𝒏𝒅𝒖𝒔𝒕𝒓𝒊 the industry specialisation of auditors is measured using dummy variables, if the kap controls 15% market share or more (specialist), it is coded 1. if the kap mastered less than 15% market share (non-specialist), it was given code 0 (karman, abdib, & ardinac, 2017). gender diversification gender diversification is a diversity that exists in the company's organs based on gender. gender diversification variables are measured using dummy variables, which if the board of directors has a female board of directors getting a value of 1 and if the board of directors does not have a female board get a value of 0. methods the purpose of research in this research is a descriptive purpose. according to sugiyono (2017:8) the research method is the way it is used to obtain information and data on various matters relating to the issues to be researched. based on the method, this study included quantitative research. quantitative research is a type of research that can be achieved (acquired) using statistical procedures or other means of quantifying (measuring) (sujarweni, 2015:12). population, sample, techniques the population in this research is a subsector property and real estate company listed on the indonesia stock exchange in 2016-2018. the number of samples used in this study was 96 samples, consisting of 32 companies with time period research for 3 (four) years, i.e. from 2016 up to 2018. the research also involves years before the research period, which is necessary to measure the value of audit quality variables. the data analysis technique in this research is logistic regression. according to sugiyono (2017:207-209)descriptive statistics are statistics used to analyze the data by describing or describing data that has been collected as it is without intent to make any applicable conclusions for public or generalization. hypothesis testing the f-statistic test essentially shows the influence of free variables simultaneously on the bound variables. simultaneous testing can be seen using the omnibus of test model coefficient testing when: a) the sig value of f statistics < 0.05 then h0 rejected and ha accepted. b) the sig value of f statistical > 0.05 then h0 accepted and ha rejected. results and discussion this research uses logistic regression analysis with ibm spss 23 software to test the impact of independent variables on dependent variables, both simultaneously and partially. the logistical regression analysis is used because the dependent variables in this study are non-metric (nominal). the following test results in logistic regression analysis. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 1 7 table 1. goodnes fit test hosmer and lemeshow test step chi-square df sig. 1 5.872 7 .555 source : output spss 23 (2020) table 1 shows chi-square value of 5,872 with significance probability of 0555. the probability value of significance is greater than α = 0.05, then the 0 hypothesis (h0) cannot be rejected and the regression model is eligible for use in subsequent analysis steps. table 2. overall model fit block number -2 log likelihood 0 117,623 1 106,968 table 2 shows that of the feasibility test result obtained-2log likelihood (ll) block number = 0 of 117.623 and at 2log likelihood (ll) block number = 1 of 106.968, so the value of-2logl block number = 0 >2logl block number = 1, it can be it was concluded that overall, the logistic regression model used in this study was a model that fit with data, so this regression model could be used for subsequent analysis. tabel 3 coefficient of determination model summary step -2 log likelihood cox & snell r square nagelkerke r square 1 106.968a .105 .149 source : output spss 23 (2020) table 3 show that the number of nagelkerke r square obtained is 0.149. this means that the combination of corporate governance, audit quality, industry auditor specialization, and gender diversification can explain the variation of the dependent variable which is the integrity of the financial statements of 14.9% while the remaining 85.1% other factors not involved in the study. table 4. simultaneous testing omnibus tests of model coefficients chi-square df sig. step 1 step 10.655 4 .031 block 10.655 4 .031 model 10.655 4 .031 source : output spss 23 (2020) in table 4 shows simultaneous hypothesis testing conducted on this study resulting in significance value of 0.031 or smaller than α = 0.05. from these results, it can be concluded that corporate governance, audit quality, industry auditor specialization, and gender diversification simultaneously affect dependent variables, namely the integrity of financial statements. table 5. partial testing variables in the equation b s.e. wald df sig. exp(b) step 1a cg .251 3.170 .006 1 .937 1.285 ka -.153 .478 .102 1 .750 .859 spes -1.635 .561 8.504 1 .004 .195 dg .530 .495 1.149 1 .284 1.699 constant -.781 2.737 .081 1 .775 .458 a. variable(s) entered on step 1: cg, ka, spes, dg. source : output spss 23 (2020) based on the results of logistic regression testing in the 5 table, the following logistics model equation is obtained: 𝑳𝑵 𝑰𝑳𝑲 𝟏−𝑰𝑳𝑲 = – 0,781+ 0,251 (cg) – 0,153(ka) – 1,635 (spes) + 0,530(dg) the value of constants (c) of – 0.781 with a probability level of 0775 more than α = 0.05. that is, if assumed the entire independent variable equals constant or 0, then the value of the dependent variable, i.e. the integrity of financial statements can not be interpreted because it is insignificant and can not be interpreted. the value of corporate governance regression coefficient (β1) amounted to 0.251 with a probability rate of 0.937 more than α = 0.05, meaning that corporate governance has no effect on the integrity of financial statements. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 1 7 the value of the audit coefficient of quality audits (β2) amounted to – 0.153 with a probability level of 0.750 more than α = 0.05, meaning the quality of audits has no effect on the integrity of financial statements. the value of the auditors ' industry specialisation coefficient (β3) of – 1.635 with a probability level of 0.004 less than α = 0.05, means the industry specialisation of auditors negatively affects the integrity of financial statements. effect of corporate governance on integrity of financial statements corporate governance regression coefficient of 0.251 with probability level 0.937 more than α = 0.05, means corporate governance has no effect on the integrity of financial statements. the results of this research do not support the research hypothesis that demonstrates significant positive corporate governance towards the integrity of financial statements. in other words, the research does not support research results from nurdiniah & pradika (2017) which shows that corporate governance significantly positively affects the integrity of financial statements. corporate governance above average and below average is dominated by unintegrity financial statements. this is because the company only complies with existing regulations to disclose corporate governance without regard to the integrity of the company's financial statements.company. effect of audit quality on integrity of financial statements a regression coefficient of audit quality – 0.153 with a probability level of 0.750 more than α = 0.05, meaning the quality of audits has no effect on the integrity of financial statements. the results of this study do not support the research hypothesis that says the audit quality has a significant positive impact on the integrity of financial statements. in other words, this research does not support research results from nurjannah & pratomo (2014) which shows that the quality of audits significantly positively affect the integrity of financial statements. quality audits and not-for-quality audits are dominated by unintegrity financial statements. this can be due to the quality of audits measured by earning surprise benchmarks only for auditors to detect the existence of profit management practices of windows dressing or taking a bath, but not related to encouraging the company in fixing financial statements. effect of industry specialization of auditors on integrity of financial statements the regression coefficient of industry specialisation for auditors – 1.635 with a probability level of 0.004 less than α = 0.05, means the industry's specialisation of auditors negatively affects the integrity of financial statements. the results of the research were influential despite its negative direction so that it did not answer the research hypothesis that says the industry's specialty auditors have significant positive impact on the integrity of financial statements. in other words, the study did not support the research results of fajaryani (2015) which suggests that the industry's specialty of auditors significantly positively affects the integrity of financial statements. companies audited by specialist and nonspecialist auditors of the majority of their financial statements are not integrity. this signifies a specialist auditor who has a deeper understanding of the client's industry is not necessarily able to make an accurate audit to encourage the company to present its integrity financial statements. effect of gender diversification on integrity of financial statements gender diversified regression coefficient of 0.530 with a probability rate of 0.284 more than α = 0.05 means that gender diversification has no effect on the integrity of financial statements. the results of this study do not support the research hypothesis that says the industry specialisation of auditors has a significant positive impact on the integrity of financial statements. in other words, this research does not support the results of the majidah & muslih (2019), stating the proportion of women in decision making is careful and careful than men who tend to be pragmatic. gender diversification and nondiversification are dominated by the integrity of the below average financial statements. the existence of gender diversity in a company is unable to raise performance with the correct decision making impacting the presentation of the integrity of the financial statements. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 1 7 conclusion the majority of the company (69.79%) property and real estate sector listed on idx in 2016-2018 presents unintegrity financial statements. corporate governance of the property and real estate sector registered at idx in 2016-2018 shows the average value of 0.87 (87%) the majority have a relatively good corporate governance disclosure. majority of the company (57.29%) in property and real estate sectors registered at idx in 2016-2018 have an unqualified audit. the majority of the company (60.41%) in property and real estate sector registered at idx in 2016-2018 have non-specialist auditors.the majority of the company (57.30%) property and real estate sector listed on idx in 2016-2018 have gender diversification. corporate governance, quality of audit, industry specialization of auditors, and gender diversification in a significant way to the integrity of financial statements in property sector companies and real estate listed on idx year 2016-2018. corporate governance has no significant nfluence on the integrity of financial statements. the quality of audit has no significant influence on the integrity of financial statements. the industry specialisation of auditors has a significant influence on the integrity of financial statements. gender diversification has no significant influence on the integrity of financial statements. references abbott, l. j., parker, s., & presley, t. j. (2012). female board presence and the likelihood of financial restatement. accounting horizons, 26(4), 607-629. fajaryani, a. (2015). analisis faktor-faktor yang mempengaruhi integritas laporan keuangan. jurnal nominal, 4(1), 67-82. fasb. (1980). concepts no. 2 qualitative characteristics of accounting information. fasb concepts statements. givoly, & hayn, c. (2002). rising conservatisme : implications for financial analysis. financial analysts journal, 57-74. hardiningsih, p. (2010, februari). pengaruh independensi, corporate governance, dan kualitas audit terhadap integritas laporan keuangan. kajian akuntansi, 2(1), 61-76. indrasari, a., yuliandhari, w. s., & triyanto, d. n. (2016). pengaruh komisaris independen, komite audit, dan financial distress terhadap integritas laporan keuangan. jurnal akuntansi, xx(1), 117-133. karman, i. w., abdib, i. n., & ardina, c. (2017). pengaruh jenis, spesialisasi industri auditor, audittenure, ukuran perusahaan terhadap going concern reporting. journal of applied accounting and taxation, 2(2), 134142. kieso, d. e., waygandt, j. j., & warfield, t. d. (2008). akuntansi intermediate jilid 1. jakarta: erlangga. majidah, m., & habiebah, i. u. (2019). apakah corporate governance disclosure, intellectual capital, dan karakteristik perusahaan merupakan faktor determinan perusahaan? jurnal riset akuntansi dan keuangan, 7(1), 161-168. majidah, m., & muslih, m. (2019). sustainability report: women directors, competencies of commissioners and corporate characteristics. advances in economics, business and management research, 65, 613-616. nurdiniah, d., & pradika, e. (2017). effect of good corporate governance, kap reputation, its size and leverage on integrity of financial statements. international journal of economics and financial issues, 7(4), 174-181. nurjannah, l., & pratomo, d. (2014, desember). pengaruh komite audit, komisaris independen dan kualitas audit terhadap integritas laporan keuangan. e-proceeding of management, 1(3), 99-105. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 1 7 pasiwi, b. g., majidah, m., & mahardika, d. p. (2016). analisis determinan kualitas audit. e-proceeding of management, 3(2), 1682-1690. sugiyono. (2017). metode penelitian kuantitatif, kualitatif dan r&d. bandung: alfabeta. sujarweni, v. w. (2015). metodologi penelitian bisnis ekonomi. yogyakarta: pustaka baru press. sujarweni, v. w. (2017). analisis laporan keuangan : teori, aplikasi, dan hasil penelitian. yogyakarta: pustaka baru press. tussiana, a. a., & lastanti, h. s. (2016, april). pengaruh independensi, kualitas audit, spesialisasi industri auditor dan corporate governance terhadap integritas laporan keuangan. media riset akuntansi, auditing & informasi, 16(1), 69-78. wicaksono, a. (2019, agustus 8). cnn indonesia. retrieved oktober 25, 2019, from www.cnnindonesia.com: https://www.cnnindonesia.com/ekono mi/20190809145515-92419879/sulap-lapkeu-mantan-diruthanson-international-didenda-rp5-m yulinda, n. (2016, februari). pengaruh komisaris independen, komite audit, leverage, pergantian auditor, dan spesialisasi industri auditor terhadap integritas laporan keuangan. jom fekon, 3(1), 419433. correspondence to : ledygita17@gmail.com received: 30 august, 2021 accepted: 21 september 2021 published: 30 september 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 3, 2021, pp. 38 45 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction according to law no. 10 of 1998 concerning banking, it can be concluded that the banking business includes three activities, namely collecting funds, channelling funds, and providing other bank services. the activity of raising thirds party funds with collecting funds from the public in the form of current account, time deposits and savings. usually to give an attractive service the bank give policy such as higher interest as a stimulus for the community. alfian (2015) said that third party funds have a positive and significant influence on credit. amelia and murtiasih (2017) found that the capital adequacy ratio has a positive and significant effect on credit disposement. the statement is also found in the study of triasdini and arfianto (2010) which concluded that car had a positive influence on credit disposement. but, according to usman (2018), car had no effect on credit disposement.according to riyadi (2018) ldr positively and significantly affected toward bpd bank credit disposementacross indonesia. but according to research conducted by supriadi and eko (2016) there is no variable partial influence loan deposit ratio to credit disposement. according to darmawan et al (2017) return on assets has a positive and significant effect on credit disposement. in contrast to the results of the research by febrianto and muid (2013) which stated that roa does not have a significant effect on loans channelled by banks in indonesia.from several indicators of the health of the quality of bank assets, there are indicators that the author took to be studied, namely non-performing loan. npl is a basic financial ratio that can provide information about capital conditions, profitability, credit risk, market risk and liquidity. the opinion of putri and akmalia (2016) states that the npl ratio has a significant negative effect on lending.and according to darmawan (2018), npl has no effect on credit disposement. according to research conducted by febrianto and muid (2013), the value of oer does not affect the amount of bank credit. credit disposement and its internal determinants ledy gita septiyani1, najmudin2, meutia karunia dewi3 1,2,3 faculty economic and business, jendral soedirman university, indonesia abstract the purpose of this research was to find out the effect of third-party funds, capital adequacy ratio, loan to deposit ratio, return on assets, non-performing loan and operating expense ratio on credit disposementof pd bpr bkk purbalingga it needs to be explored more deeply about the effect of these variables on credit disposementto get more complete evidence. the data in this study were quarterly financial reports of pd bpr bkk purbalingga during the period of 2011-2018. data anaysis method used was multiple regression method using spss 24. based on the data analysis, it can be concluded that (1)third-party funds have positive effect on credit disposementof pd bpr bkk purbalingga, (2)capital adequacy ratio has positive effect on credit disposement of pd bpr bkk purbalingga, (3)loan to deposit ratio has positive effect on credit disposementof pd bpr bkk purbalingga, (4)return on assets does not have positive effect on credit disposementof pd bpr bkk purbalingga, (5)non performing loan does not have negative effect on credit disposementof pd bpr bkk purbalingga, (6)operational expense ratio has negative effect on credit disposement of pd bpr bkk purbalingga. keywords third-party funds, capital adequacy ratio, loan to deposit ratio, return on assets, non-performing loan, operating expense ratio, credit disposement jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 38-45 bank efficiency that generates profits for parties does not have to be allocated by banks to increase the amount of credit extended to the public. therefore, there are some research gaps in previous studies which indicate that the results of previous studies are still inconsistent. thus, the research gap and inconsistency support the author to conduct this research. so, based on the background above, the author conducted the study entitled “the determinant of bank internal factors on credit disposement (case study on pd bpr bkk purbalingga)”. this research aims to examine and provide empirical evidence about several independent variables of the determinant of bank internal factors on credit disposement. the object of this research is the pd bpr bkkin the purbalingga. the data in this study are secondary data, which is collecting data from financial report. literature review theory of bank liquidity theory trade-off between liquidity and profitability. this theory develops in the world of islamic banking where there is a conflict of interest between liquidity and profitability. banks must be able to maintain their liquidity levels by increasing cash reserves. the addition of cash reserves to maintain liquidity can reduce the level of profitability because the funds are not used. conversely to obtain high profitability, the bank must reduce its cash reserves, which means the level of tire liquidity will decrease. bank according to law number 10 of 1998 concerning banking, by type is grouped into commercial banks and rural credit banks. commercial banks provide all available banking services and have a range of operational areas that can be carried out in all regions. the function of bpr includes efforts to collect and dispose funds with the aim of getting profit. bpr benefits derived from the spread effect and interest income. the bpr businesses are: a. collecting funds from the public in the form of deposits in the form of time deposits, savings, and / or other forms equivalent. b. give credit.provide financing for customers based on profit sharing principles in accordance with the provisions stipulated in government regulations. c. placing funds in the form of bank indonesia certificates, time deposits, certificates of deposit, and / or savings at other banks. bank indonesia certificate is a certificate offered by bank indonesia to an rb if an rb experiences over liquidity or excess liquidity. credit credit provided by banks or financial institutions is based on trust. in granting credit must be seen from various elements of credit. the elements of credit according to kasmir (2010) are: a. trust a belief from lenders that the credit to be given will really be accepted again in the future. this trust is given by companies, which have previously conducted research investigations about customers both internally and externally. research and investigation of past and present conditions of credit applicants. b. agreement besides the element of trust, credit also contains an element of agreement between the lender and the credit recipient. this agreement is stated in an agreement where each party signs their respective rights and obligations. c. duration every credit given has a certain period, this period includes the agreed credit repayment period. the time period can be in the form of short term, medium term or long term. d. risk a grace period for repayment will cause an uncollectible risk or loan default. the longer the credit, the greater the risk and vice versa. this risk is borne by the bank, jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 38-45 both intentional risk by negligent customers, and by unintentional risks such as natural disasters or bankruptcy of the customer's business without any other intentional elements. e. reply services the advantage of providing a credit or service known as interest. repayment in the form of interest and credit administration costs is a benefit company. thirds party funds third party funds are funds raised from the community in the form of savings, current accounts, and time deposits. where third party funds are a source of funds that are very relied upon by banks to carry out their operational activities. the bank can utilize this fund in activities that can generate income or profits, one of which is disposement of credit. capital adequacy ratio capital adequacy ratio is a ratio that shows how far all bank assets that contain risks (loans, investments, securities, bills at other banks) are financed from the bank's own capital funds in addition to obtaining funds from sources sources outside the bank, such as funds from the public, loans, etc. car is an indicator of a bank's ability to cover a decline in assets as a result of bank losses caused by risk assets. loan to deposit ratio loan to deposit ratio or ldr is used to measure the level of bank liquidity or how far the bank's ability to meet its short-term obligations. ldr is a ratio that compares the number of loans extended by banks with the amount of funds raised by banks. according to bank indonesia, the ldr ratio for banks in indonesia is expected to be in the range of 85% -100%. return on assets roa is used to measure the ability of bank management in obtaining overall profit. profit is the main goal in the business, including in banking company. the reason for the achievement of banking profits can be in the form of adequacy fulfil the obligations of shareholders, assess the performance of leaders, and can increase power attract investors to invest their capital. roa is an internal factor in carry out lending that can be used to measure profitability in banking. high profits make banks gain the trust of the public allows banks to raise more capital so that banks get wider lending opportunities (simorangkir, 2004 in triasdini, 2010). non-performing loan according to bank indonesia circular letter no.8 / 30 / dpbpr / 2006, what is meant by non-performing loans (npl) is a comparison between loans and the number of loans granted. bpr credit quality categories consist of: current category, substandard category, doubtful category, and bad category. a high npl results in the nonfunctioning of the bank intermediary function optimally because it decreases the circulation of bank funds, thereby reducing the opportunity for banks to earn income. operational efficiency ratio operational efficiency ratio is calculated using a comparison between operating expenses for 12 months against operating income in the same period or what is often referred to in indonesia as bopo. this ratio is used to measure the level of efficiency of a bank (bank indonesia circular letter n0.15 / 8 / dpbs dated march 30, 2013).operational efficiency ratio is one indicator in measuring the soundness of a bank, because this is related to the ability of banks to obtain profits. research methods this type of research according to data analysis was included in quantitative research, namely research that analyzes data in the form of numbers and secondary data. secondary data is a source of research data obtained indirectly through intermediary media researchers. meanwhile, according to the characteristics of the problem, this study was included in a descriptive study that was a study of problems in the form of the current facts of a population. the purpose of descriptive research was to test hypotheses or jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 38-45 answer questions related to the current status of the subjects studied. the object in this research is thirds party funds, capital adequacy ratio, loan to deposit ratio, return on assets, nonperforming loans, and operational efficiency ratio to the dependent variable is disposement of credit recorded in the financial statements of the financial services authority. data collection and instrument development technique documentation technique is to collect and record data and reports owned by the company related to the problem that will be discussed and used as research objects. the documentation technique is used to collect data on the financial statements from pd bpr bkk purbalingga in 2011-2018. literature technique is a technique of collecting data from various research reports and relevant literature. done by reading books of literature relating to credit and banking. data analysis technique this studdy using multiple regression analysis. but before doing multiple regression analysis we test data with normality test, multicollinearity test, heteroscedasticity test, and correlation analysis. multiple regression analysis the function of this analysis is to measure the impact of independent variables (thirds party funds, capital adequacy ratio, loan to deposit ratio, return on assets, nonperforming loans, and operational efficiency ratio) toward dependent variables (disposement of credit). the formulation for multiple regression is below: doct= a + β1 tpft-1 + β2 cart-1 + β3 ldrt-1 + β4 roat-1 + β5 nplt-1 + β6 oert-1+ e explanation: doct : ln disposement of credit (t) tpft-1 : ln thirds party funds (t-1) cart-1 : capital adequancy ratio (t-1) ldrt-1 : loan to deposit ratio (t-1) roat-1 : return on asset (t-1) nplt-1 : non-performing loan (t-1) oert-1 : operational efficiency ratio (t-1) e : error (residual variable) hypothesis test from table 2 and table 3, we know that thirds party funds, capital asequancy ratio, loan to deposit ratio, operational eficiency ratio under level significal 0.05 so that variable is accepted has significant effect. but any two variable are return on assets and net performing loans above significal level 005 so that variable is rejected no significant effect . results and discussion descriptive statistics the results of processing descriptives statistical data are presented in the table 1 in the attachment. based on table 1, the results of the descriptive analysis using spss 24 show that average value of third-party funds is rp 258,577,811.800,-. the average value of capital adequacy ratio is 10.98%. the average of capital adequacy ratio is above 8%, it means that the capital adequacy ratio is in the healthy condition. the average value of loan to deposit ratio is 85.75%. the average of loan to deposit ratio is below 94,75%, it means that the loan to deposit ratio is in the healthy condition. the average value of return on assets is 1.76%. the average of return on assets is above 1,215%, it means that the return on assets is in the healthy condition. the average value of non-performing loan is 7.03%. the average of non-performing loan is above 5%, it means that the non-performing loan is in the unhealthy condition. the average value of operating expense ratio is 65.12%. the average of operating expense ratio is below 93,52%, it means that the operating expense ratio is in the healthy condition. the average value of credit disposement is rp 260,961,500.100,-. discussion h1: third-party funds have positive effect on credit disposement. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 38-45 the results of hypothesis testing with spss show that third-party funds have positive and significant influence on credit disposement. according to law no. 10 of 1998 concerning banks is a business entity that collects funds from the public in the form of deposits and channel them back to the community in the form of credit and other forms in order to improve people’s lives. it can be concluded that third party funds are the largest source of bank funds used to carry out bank tasks, namely credit disposement. h2: capital adequacy ratio has positive effect on credit disposement. the results of hypothesis testing with spss show that capital adequacy ratio has positive and significant influence on credit disposement. car is the bank’s performance ratio to measure the bank’s capital adequacy to support assets that contain or generate risk, such as credit disposement. according to bank indonesia (number 9/13 / pbi / 2007), car is the provision of minimum capital for banks based on broad risk assets, both assets listed in the balance sheet and administrative assets as reflected in liabilities that are still dependent and / or commitments given by banks for third parties or market risk. completion of the international bank stipulates a minimum capital requirement of 8% of roa for banks in indonesia. from this statement, car affects credit because the bank has sufficient predetermined car and allocates funds for credit disposement. amount of capital and low risk possessed by the bank is able to finance operational activities and provide a sizeable contribution to profitability, thus allowing banks to be able to dispose more credit. h3: loan to deposit ratio has positive effect on credit disposement. the results of hypothesis testing with spss show that loan to deposit ratio has positive and significant influence on credit disposement. loan to deposit ratio is a ratio that measures the ability of banks to meet short-term obligations by dividing total loans by total thirdparty funds. banking liquidity needs to be managed to meet needs when customers take their funds and dispose credit loans to borrowers (debtors). if the ldr value is too high, it means that the bank does not have enough liquidity to cover its obligations to customers. conversely, if the ldr value is too low, it means that the bank has sufficient liquidity but may have lower income, because as is known, the banking world gets income through credit disposement. h4: return on assets has positive effect on credit disposement. the results of hypothesis testing with spss show that return on assests has negative and not significant influence on credit disposement. roa is a ratio that measures the ability of banks to generate profits (can be called profitability) by comparing net income with resources or total assets owned. its function is to see how effective banks are in using their assets in generating income. the greater the value of roa means the better the bank’s ability to generate profits. one of the profits generated comes from customer interest income (derived from credit disposement). the study of febrianto and muid (2013) states that the effect of roa on the volume of credit given has a significant positive effect, meaning that if there is an increase in roa, it will be followed by an increase in the volume of credit disposement and vice versa. h5: non-performing loan has negative effect on credit disposement. the results of hypothesis testing with spss show that non-performing loan has positive and not significant influence on credit disposement. the main objective of the bank is to provide credit to the debtor, that is the debtor can return all loans in accordance with the promised period. credit is one of the main activities of banks, interest from credit activities is the main income in generating bank profits. but, if the credit given is problematic in the sense that it can be in a substandard category, it is doubtful that even bad credit will affect the bank’s performance. as a result of high npl, banks must provide jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 38-45 more reserves so that bank capital is also eroded. though, the amount of capital greatly affects the amount of credit expansion. the amount of npl is one of the causes of the difficulty of banks in channelling credit (sentausa, 2009). h6: operational expense ratio has negative effect on credit disposement. the results of hypothesis testing with spss show that operating expense ratio has negative and significant influence on credit disposement. operational efficiency ratio is a ratio that describes the efficiency of banks in carrying out their activities. considering that the main activity of a bank is acting as an intermediary, i.e. collecting and disposing funds, the bank’s operating income is dominated by interest from the credit disposement. implication based on the conclusions of the research results, there are some suggestions that may be useful for the management. results of this study can be used as a reference for management who manage the company. for pd bpr bkk purbalingga, it can be used as a record / correction to maintain and improve its performance, while improving if there are shortcomings. the results of this study are expected to be used as a reference or consideration for managing the business. management of the company must pay attention to the financial performance of the company they manage to avoid business failures. financial performance indicators that need to be taken into account are third-party funds, capital adequacy ratio, loan to deposit ratio and operating expense ratio. based on this research, these ratios have significant influence on credit disposement. the company must also have a benchmark company in order to find out their financial position. private companies or banks can be used as a benchmark because they can maintain and improve their business. references alfian, m. (2015). faktor-faktor yang mempengaruhi implementasi simda dan kualitas laporan keuangan skpd. jurnal akuntansi dan investasi, 16(1), 1-11. amelia, k. c. & murtiasih, s. (2017). analisis pengaruh dpk, ldr dan car terhadap jumlah penyaluran kredit pada pt bank qnb indonesia, tbk. periode 2005-2014. jurnal ilmiah ekonomi bisnis, 22(1), 66-74. darmawan, a. (2018). influence of loan interest rate, non-performing loan, third party fund and inflation rate towards micro, small and medium enterprises (msme) credit lending disposement at commercial banks in indonesia. advances in social science, education and humanities research, 231, 308-311. darmawan, i. g. a. s., wahyuni, m. a., & atmadja, a. t. (2017). pengaruh capital adequacy ratio (car), non-performing loan (npl), product domestic bruto (pdb) dan return on asset (roa) terhadap penyaluran kredit perbankan: studi empiris pada perusahaan perbankan yang terdaftar di bursa efek indonesia periode 2013-2015. e-journal s1 ak universitas pendidikan ganesha jurusan akuntansi program s1, 8(2). sinaungan, m. (2000). dana bank manajemen (second edition). jakarta: bumiaksara. febrianto, d. f. &muid, d. (2013). analisis pengaruh dana pihak ketiga, ldr, npl, car, roa dan bopo terhadap jumlah penyaluran kredit: studi pada bank umum yang terdaftar di bursa efek indonesia periode tahun 2009-2012. diponegoro journal of accounting, 2(4), 1-11. bikker, j. a. (2010). measuring performance of banks: an assessment. journal of applied business and economics, 11(4), 141-159. putri, y. m. w. &akmalia, a. (2016). pengaruh car, npl, roa dan ldr terhadap penyaluran kredit pada perbankan: studi pada perusahaan perbankan yang terdaftar di bursa efek indonesia periode 2011-2015. jurnal balance. riadi, s. (2018). the effect of third parties fund, non-performing loan, capital adequacy ratio, loan to deposit ratio, return on assets, net interest margin and operating expenses operating income on lending: study in regional development banks in indonesia. proceedings of the international conference jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 38-45 on industrial engineering and operations management bandung, indonesia, march 68, 2018, 1015-1026. supriadi & eko. (2016). pengaruh car, nim, bopo, npl, ldr terhadap jumlah penyaluran kredit pada bank perkreditan rakyat di mojokerto. eba journal: journal economics, bussines and accounting, 2(2), 41-55. triasdini, h. &arfianto, e. d. (2010). pengaruh car, npl dan roa terhadap penyaluran kredit modal kerja: studipada bank umum yang terdaftar di bursa efek indonesia periode 2004-2009. thesis. diponegoro university. usman, m. n. (2018). macro and microeconomic indicators on banking credit disposement list of tables table 1. descriptives statistics tpf (in thousand rupiah car ldr roa npl oer cd (in thousand rupiah mean 258,577,811 10.98% 85.75% 1.76% 7.03% 65.12% 260,961,500 standard deviation 65,399,855 1.80% 10.42% 0.79% 3.47% 8.03% 46,604,557 maximum 367,737,790 15.24% 105.65% 3.17% 13.52% 78.90% 304,164,641 minimum 138,854,667 7.63% 66.94% 0.32% 3.22% 54.09% 136,228,550 source: result research 2019 table 2. multiple regression analysis result model unstandardized coefficients standardized coefficients t sig. b std. error beta (constant) -0.721 0.443 -1.628 0.116 tpf 0.987 0.022 1.290 45.585 0.000 car 0.011 0.002 0.098 6.771 0.000 ldr 0.011 0.000 0.557 23.673 0.000 roa -0.007 0.004 -0.027 -1.985 0.058 npl 2.625 0.002 0.000 0.015 0.989 oer -0.001 0.000 -0.044 -2.533 0.018 a. dependent variable: cod3 table 3. hypothesis testing result no. hypothesis statement result 1 h1 tpf ->cod. accepted 2 h2 car ->cod accepted 3 h3 ldr ->cod accepted 4 h4 roa ->cod rejected 5 h5 npl ->cod. rejected 6 h6 oer ->cod accepted list of figures figure 1. model test jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 38-45 third party funds (x1) capital adequency ratio (x2) loan to deposit ratio (x3) return on assets (x4) nonperforming loan (x5) operational efficiency ratio (x6) disposement of credit (y) correspondence to : istiqomah@unsoed.ac.id received:june, 12, 2020 accepted: june, 21, 2020 published:june, 30, 2020 jurnal akuntansi, manajemen dan ekonomi vol 23, no 2, pp.36-41 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction article 33 of the 1945 constitution explains that the indonesian economy is supported by three economic actors, namely the state, the private sector, and cooperatives. according to the 1945 constitution, the indonesian economy is based on the principle of kinship. as its manifestation is the cooperative economic movement in the community. according to sukidjo (2008) cooperatives are seen as the pillars of the indonesian economy because of the basis of economic democracy, production is done by all for the benefit of all under the leadership or ownership of community members. cooperative according to cooperative law number 25 of 1992 article 1 has been defined as "business entity consisting of persons or legal entities by basing its activities on cooperative principles as well as the people's economic movement based on the principle of kinship". according to majee & hoyt (2011) cooperatives are not only profit-oriented but also oriented to the benefits of improving the welfare of members and society. cooperative capital formation consists of two components: internal capital (principal savings, mandatory savings, voluntary savings and reserve) and external capital (loan from members, banks, and other financial institutions) (ruben & heras, 2012). does turnover mediate the relationship between cooperative capital and surplus (shu)? istiqomah1, lilis siti badriah2 1,2,3 faculty of economics and business universitas jenderal soedirman abstract previous studies have indicated that the direct influence of cooperative capital on surplus (shu) is linear and positive.however, how the capital can increase surplus has not been formally explained.therefore, in this article the authors try to explain the mechanism of the influence of cooperative capital on surplus (shu) by including turnover as an intervening variable in the relationship between cooperative capital and surplus.this study used secondary data which consist of cooperative capital, surplus, and business turnover from 43 cooperatives in indonesia recorded in the annual report of the ministry of cooperatives and msmes 2016. cooperative capital, surplus, and trunover are measured in rupiah. path analysis was employed to analyze the data. the effect of mediation was tested by the causal method developed by baron & kenny and the product of coefficient method developed by sobel. the results indicate that turnover perfectly mediates the relationship between cooperative capital and surplus. this research contributes to the lacking formal logical explanation of the relationship between cooperative capital and surplus, that is, cooperative capital encourages business turnover which eventually increases surplus. therefore, cooperatives in indonesia should be able to increase cooperative capital, especially internal capital or supporting external capital. in addition, the government should also encourage efforts to develop and promote cooperatives in indonesia by making policies to facilitate financial access for cooperatives. keywords cooperative, capital, turnover, surplus, mediating variable, path analysis jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.36-41 cooperatives are economic units where members mobilize their financial resources through savings or deposits by active members and used as business capital (nuwagaba, 2012). cooperative capital is used to finance its operational activities. the more production it is expected to be able to increase the surplus (shu). surplus according to law number 25 of 1992 article 45 is defined as "the difference from all total revenues or receipts with total costs in one financial year". according to utama (2011), the surplus obtained by cooperatives will affect their survival. the greater the capacity of the cooperative business entity to finance the expenses and activities carried out by its businesses, the greater the added value obtained by the cooperative which will further increase the cooperative surplus (ariesta & yolamalinda, 2014). the studies by ananiadis, notta, & oustapassidis (2003), fulton & hueth (2009), chibanda, ortmann, & lyne (2009), barton, boland, chaddad, & eversull (2011), (ruben & heras, 2012) , king, adler, & grieves (2013), grau, hockmann, & levkovych (2015), li, jacobs, & artz (2015), suputra, susila, & cipta (2016), alho (2016), and ariningsih (2017 ) show that the direct influence of cooperative capital on surplus (shu) is linear and positive. this means that the larger the cooperative capital, the greater the surplus will be generated. however, how the capital can increase surplus has not been formally explained. therefore, in this article the authors try to explain the mechanism of the influence of cooperative capital on surplus (shu) by including turnover as an intervening variable in the relationship between cooperative capital and surplus. the choice of turnover as an intervening variable is based on the findings of ortmann & king (2007) and king, adler, & grieves (2013) that turnover is positively influenced by cooperative capital; greater capital will be able to increase the business turnover. method this study is a causal associative study between independent variables on the dependent variable by entering intervening variable. in this study there is one dependent variable (surplus/shu) and independent variable (cooperative capital) and one intervening variable (turnover). this study used secondary data which consist of cooperative capital, surplus, and business turnover from 43 cooperatives in indonesia recorded in the annual report of the ministry of cooperatives and msmes 2016. cooperative capital, surplus, and trunover are measured in rupiah. path analysis was employed to analyze the data. the mediating or intervening variable is the intermediate variable that is located between the independent variable and the dependent variable, so that the independent variable does not directly affect the change of the dependent variable. the pattern of direct relationship between the independent and dependent variables can be seen at figure 1. jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.36-41 figure 1. regression model without mediating variable the pattern of relationship between variables through mediation can be seen at figure source: suliyanto, 2011 figure 2. path analysis model of the effect of cooperative capital on surplus through turnover testing for the mediating effect is carried out by the causal method developed by baron & kenny (1986). the steps in using the causal method are: regressing the independent variable on the dependent variable, regressing the independent variable on the mediating variable, regressing the independent variable on the dependent variable by entering the intervening variable, and drawing conclusion whether the intervening variable perfectly or partially mediates the relationship between the independent and dependent variables. the steps can be written in the following equations: structure i : s= 𝛽0 + 𝛽1𝐶 + e where : s = surplus 𝛽0,1 = parameters of regression model c = capital e = error term structure ii : t = 𝛽0 + 𝛽1𝐶1 + e where : t = turnover 𝛽0,1 = parameters of regression model 𝐶 = capital e = error term structure iii : s = 𝛽0 + 𝛽1 𝐶+ 𝛽2 𝑇+ e where : s = surplus 𝛽0,1,2 = parameters of regression model 𝐶 = capital 𝑇 =turnover e = error term turnover performs as a mediating variable when it meets the following criteria: 1) if in structure i, the independent variable (c) has a significant effect on the dependent variable (s), 2) if in structure ii, the independent variable (c) has a significant effect on the expected mediating variable (t), 3) if in structure iii, the variable expected as a mediating variable (t) has a significant effect on the dependent variable (s). capital (c) surplus (shu) c turnover (t) capital (c) surplus a b c jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.36-41 turnover (t) is expressed as perfect mediator if after entering turnover, the influence of capital on surplus which was significant (before entering turnover) becomes insignificant after entering turnover into the regression equation. turnover is expressed as partial mediator if after entering turnover, the effect of capital on surplus that was significant (before entering turnover) remains significant after entering the turnover in the regression model. results and discussion the regression estimation in structure i which shows the effect of capitalon surplus, can be seen at table 1. table 1. regression estimation of capital on surplus parameters regression coefficients p-value constant 4.9465 0.0005 capital 0.3613 0.0000 r-squared 0.8231 regression structure i shows that the error probability of capital is 0.0000 smaller than α = 0.05. this result indicates that in regression structure i,capital has a significant effect on surplus. the r square value in regression model i is 0.82. the path diagram of regression structure i is presented at figure 3. figure 3. path diagram of structure i the estimation result of regression structure ii which shows the effect of capital on turnover can be seen at table 2. table 2. regression estimation of capital on turnover parameters regression coefficient p-value constant 6.3391 0.0000 capital 0.3941 0.0000 r-squared 0.8857 regression structure ii shows that the error probability of capital is 0.0000 smaller than alpha 0.05. these result indicates that capital has a significant effect on turnover. the r square value in model ii regression is 0.88. thus the path diagram of structure ii model is obtained as follows. figure 4. path diagram of structure ii the estimation result of regression in structure iii which shows the relationship of the capitalon surplus by including the mediating variable (turnover) can be seen at table 3. table 3. regression estimation of capital and turnover on surplus parameters regression coefficients p-value constant 0.2730 0.8295 capital 0.0367 0.5093 turnover 0.8233 0.0000 r-squared 0.9119 capital (c) surplus (s) 0.3 61 capital (c) turnov er (t) 0.3941 jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.37-42 model iii regression shows that the error probability of capital is 0.5093 greater than alpha 0.05, meaning that capital has no significant effect on surplus. the error probability of turnover of 0.000 is smaller than alpha 0.05, indicating that turnover has a significant effect on surplus. the r square in model iii regression is 0.91. the path diagram of the structure iii model is obtained from the combination of structure i and ii as presented at figure 4. figure 4. path diagram of structure iii based on the hypothesis testing criteria, if before entering the mediating variable (turnover), the effect of cooperative capital on surplus is significant and after the mediation variable is entered into the model turns to be insignificant, it can be concluded that turnover perfectly mediates the relationship between cooperative capital and surplus. this research supports the findings of artmann & king (2007), ruben & heras (2012), and king, adler, & grieves (2013) which explain that turnover is influenced by cooperative capital. capital will increasecooperative business turnover and will eventually increase the surplus. according to ruben & heras (2012) the formation of cooperative capital includes internal capital (principal saving, mandatory saving, voluntary saving, and reserve) and external capital (loan from members, banks, and other financial institutions). thus, if the cooperative capital formation is greater, it will have an impact on business turnover and will affect the surplus. king, adler, & grieves (2013), and grau, hockmann, & levkovych (2015) conclude that surplus is influenced by the cooperative capital. capital also plays an important role in the sustainability of cooperatives, this is because the larger the capital will be able to influence the cooperative production capacity. conclusion based on the results of the study, it can be concluded that turnover perfectly mediates the relationship between cooperative capital and surplus. this research contributes to the lacking formal logical explanation of the relationship between cooperative capital and surplus, that is, cooperative capital encourages business turnover which eventually causes an increase in surplus. therefore, cooperatives in indonesia should be able to increase cooperative capital, especially internal capital or supporting external capital. in addition, the government should also encourage efforts to develop and promote cooperatives in indonesia by making policies to facilitate financial access for cooperatives. references alho, e. (2016). survey evidence of members’ willingness to invest in agricultural hybrid cooperatives. journal on chain and network science, 16 (1), 41 58. ananiadis, y., notta, o., & oustapassidis, k. (2003). cooperative competitiveness and capital structure in the greek dairy industry. journal of rural cooperation, 31 (2), 95 109. capital (c) surplus (s) turnover (t) 0.394 0.361 0.82 3 jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.37-42 ariesta, f., & yolamalinda. (2014). pengaruh jumlah anggota dan simpanan anggota terhadap peningkatan sisa hasil usaha ( shu ) pada pkp-ri propinsi sumatera barat. economica, 2 (2), 116 125. ariningsih, e. (2017). factors affecting net surplus of sugarcane cooperatives in east java povince. jurnal sepa (social economic and agribusiness journal), 10 (1), 132 139. baron, r. m., & kenny, d. a. (1986). the moderator-mediator variable distinction in social psychological research. conceptual, strategic, and statistical considerations. journal of personality and social psychology, 51 (6), 1173 1182. barton, d., boland, m., chaddad, f., & eversull, e. (2011). current challenges in financing agricultural cooperatives. choices, 26 (3). chibanda, m., ortmann, g. f., & lyne, m. c. (2009). institutional and governance factors influencing the performance of selected smallholder agricultural cooperatives in kwazulu-natal. agrekon, 48 (3), 293 306. fulton, m., & hueth, b. (2009). cooperative conversions, failures and restructurings: an overview. journal of cooperatives, 23 (12), 1 11. grau, a., hockmann, h., & levkovych, i. (2015). dairy cooperatives at the crossroads. british food journal, 117 (10), 2515 2531. king, r., adler, m. a., & grieves, m. (2013). cooperatives as sustainable livelihood strategies in rural mexico. bulletin of latin american research, 32 (2), 163 177. li, z., jacobs, k. l., & artz, g. m. (2015). the cooperative capital constraint revisited. agricultural finance review. majee, w., & hoyt, a. (2011). cooperatives and community development: a perspective on the use of cooperatives in development. journal of community practice, 19 (1), 48 61. nuwagaba, a. (2012). savings and credit cooperative societies (saccos) as a source of financing agriculture. challenges and lessons learnt. journal of environment and earth science, 2 (11), 109 114. ortmann, g. f., & king, r. p. (2007). agricultural cooperatives ii: can they facilitate access of small-scale farmers in south africa to input and product markets? agrekon, 46 (2), 219 244. ruben, r., & heras, j. (2012). social capital, governance and performance of ethiopian coffee cooperatives. annals of public and cooperative economics, 83 (4), 463 484. sukidjo. (2008). membangun citra koperasi indonesia. jurnal ekonomi & pendidikan, 5 (2), 193 203. suputra, i. g., susila, g. p. a. j., & cipta, w. (2016). pengaruh modal sendiri, modal pinjaman, dan volume usaha terhadap selisih hasil usaha (shu) pada koperasi simpan pinjam. e-journal bisma universitas pendidikan ganesha jurusan manajemen. todaro, m. p., & smith, s. c. (2006). pembangunan ekonomi (edisi kesembilan). diterjemahkan oleh drs haris munandar, ma dan puji al, se dari buku economic development ninth edition. jakarta: erlangga. utama, i. m. s. (2011). pengaruh jumlah anggota, jumlah simpanan, jumlah pinjaman dan jumlah modal kerja terhadap sisa hasil usaha (shu) koperasi simpan pinjam (ksp) di kabupaten badung provinsi bali. fakultas ekonomi universitas udayana (unud), bali, indonesia. correspondence to : ngurahpradnya96@gmail.com received: march, 12, 2020 accepted: march, 21, 2020 published: march, 30, 2020 jurnal akuntansi, manajemen dan ekonomi vol 22, no 1, pp 44-49. published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the hospital is an important element for the community in the needs of health services. hospitals as a health service have a strategic role in efforts to prevent, cure, and recover from disease. indonesian government regulation no. 49 of 2013 defines hospitals as service institutions that conduct individual health services in a complete manner by providing inpatient, outpatient and emergency services. hospitals as health service facilities play an important role in health development. the hospital's role is to be able to provide quality and affordable health services to the community in order to improve community health status. the main task of the hospital as a social organization is to seek efficient health by prioritizing integrated healing and recovery. the role of hospitals in providing health services to the community, encouraging hospital managers to be able to clean up and optimize their resources in order to maintain the quality of services provided. the importance of maintaining the quality of health services can have a positive impact on people who use hospital services so that people will come back when they need health services in the future. nowadays, hospital growth has increased. increase in government hospitals and private hospitals. the increase in hospital construction was triggered by the influx of foreign investors, an increase in the upper class population, improved income in the percapita community, a critical attitude in maintaining health and choosing where to seek treatment (azhary, 2009) dkt dr. soetarto hospital in yogyakarta is a type c government hospital managed by the indonesian ministry of defense through the army health center. hospitals with buildings and nuances typical of the military are included in the cultural heritage, currently not only serving military members and their families, but benefited the general public who need health services. efforts to develop and improve health services, the hospital has prepared a strategic plan for 2016-2020. the strategic plan that is designed is a basic guideline for hospitals in making activity programs. based on the planned strategy, the hospital plans a number of diversification and integration strategies development of the strategic hospital of dkt dr. soetarto yogyakarta nugrah pradnya dharma putra1, sabihaini2, tri mardiana3 1,2,3 faculty of economics and business, universitas pembangunan nasional “veteran” yogyakarta abstract this study aims to develop the strategy hospital dkt dr soetarto yogyakarta to know the condition of the external and internal environment, alternative strategies, and priority strategies that can be done. this research is qualitative descriptive survey method. the development strategy is based on the concept of strategic management by using three stages: an input stage, using efe matrix, ife matrix, phase matching: using swot matrix, ie matrix, and the last stage is the stage of the decision to use a matrix qspm. the data used is primary data obtained through observation, interviews and questionnaires, and secondary data from the archive documentation and medical records hospital. the results using ie matrix indicates the position of the hospital in a position to grow and build, so alternative strategies generated is incentive strategy and integration strategy, the swot matrix generates seven alternative strategies, and in the matrix qspm, strategic priorities generated by the score allure total (stas) is the highest obtained by the strategy of building partnerships with other bodies concerned with the improvement of health services keywords development of strategies, management strategies, efe, ife, swot, ie,qspm jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 44-49 such as providing hemodialysis units, developing hospital management information systems, and collaborating with third parties on the needs of medical, non-medical, and hospital solid waste treatment. the results of in-depth interviews with hospital managers and observations made, the hospital still has several obstacles including not fulfilling human resources to fill positions in hospital organizational structure, lack of renewal of polyclinic renewal, renewal of hospital buildings and medical devices, as well as the percentage of bed use hospitalization at the hospital (bed occupancy ratio-bor) below the standard of efficient use. this condition shows that the hospital's strategic plan has not been compiled in a comprehensive manner. , external threats and strengths, internal weaknesses of each factor. so the hospital's efforts in developing and improving health services have not been optimal. with these conditions, the hospital needs to respond by designing a more comprehensive strategy by involving all components of the hospital so that the strategic plan prepared can anticipate changing conditions (karmawan, 2016) literature review strategy management strategy management is a series of decisions and steps that can produce formulation and implementation of plans to achieve goals for the company (pearce and robinson, 2013) whereas according to david and david (2016) strategy management is an art and science in formulating, implementing, and evacuating functional decisions which makes a company or organization can achieve its objectives. strategy strategy is an action that requires decisions in top management and company resources are quite large. the strategy has various multifunctional or multidimensional consequences and requires every consideration of internal and external factors faced by the company (david and david, 2016). according to pearce ii and robinson (2013) strategy is a large-scale design with a long-term orientation to be able to interact with a competitive environment in order to achieve company goals. types of strategies according to david and david (2016) the type of strategy is divided into 4 groups of strategies consisting of 11 alternative strategic actions that can be carried out by a company or organization including: integration strategy; forward integration, backward integration, horizontal integration, intensive strategy; market penetration, market development, product development, diversification strategies; related diversification, diversification not related, defensive strategy; reduction, divestment, liquidation vision and mission vision is a statement that outlines a company's strategy that is focused on the company's energy and resources in achieving the desired future while the mission is a broad and eternal statement about a company, the mission includes the philosophy of making corporate strategy decisions, indicating the image that the company wants to determine, reflects company concepts, and indicate key product or service areas (pearce ii and robinson, 2013) environmental identification according to david and david (2016) environmental identification consists of the external and internal environment. identification of the external environment is carried out to determine trends and events beyond the control of the company which consists of the main opportunities and threats affecting the company while identification of the internal environment is a process undertaken to find out information relating to the strengths and weaknesses of the company. identification of the external environment identifies various factors including: economic, social, cultural, demographic and environmental factors, political, governance and legal factors, technological factors, and competing factors. identification of the internal environment identifies various factors including: management factors, marketing factors, financial factors, production and operating factors, research and development factors, and management information system factors. strategy formulation stage strategy formulation is the process of developing the vision and mission of a company or organization by identifying and analyzing the external and internal environment. the strategy formulation stage is integrated into the conceptual framework of strategic decisions that can help plan the strategy, identify, implement, and evaluate. menueur david and david (2016) the stage of strategic planning is carried out through three jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 44-49 stages consisting of the input stage using the efe matrix, cpm matrix, ife matrix, matching stages using the swot matrix, space matrix, bcg matrix, ie matrix, and the grand strategy matrix, and the decision stage uses the qspm matrix. research methods this study aims to develop the strategy of dkt hospital dr. soetarto yogyakarta. the research is a descriptive qualitative research with survey method. respondents or informants consisted of 10 respondents with 7 respondents as internal stakeholders and 3 respondents as external stakeholders. the study uses primary data through observation, interviews, and questionnaires, and secondary data through archival documentation and medical records. external variables consist of economic, social, demographic culture, geography, law, technology, and competition, and internal variables consist of management, marketing, finance, operations, research and development, and management information systems. data analysis was performed using a strategy management approach through the input stage with efe matrix, ife matrix, matching stage using the ie matrix swot matrix, and the decision stage using the qspm matrix. results and discussion the results of the identification of the environment there are several external factors that become opportunities and threats and internal factors that become strengths and weaknesses that affect the sustainability of the hospital. input phase information obtained from the results of environmental identification is evaluated using the efe matrix and the ife matrix by giving weights and ratings for each of the main factors to get a weighted score for each factor. the results of the efe matrix analysis, and the ife matrix are presented in table 1 and table 2 table 1. efe matrix no external factors weight ranking weighted score opportunities 1 public purchasing power for high health needs 0.053 3 0.159 2 periodic mass treatment in korem 072 0.053 3 0.159 3 habits of the public go to the hospital 0.056 3 0.168 4 increasing the population growth of yogyakarta every year 0.059 3 0.177 5 availability of vacant land for hospital area development 0.063 4 0.252 6 regionalization of a tiered referral system 0.063 3 0.189 7 collaborate with health insurance companies 0.061 4 0.244 8 development of facilities for special infection services such as hiv / aids 0.056 3 0.168 9 permanent patients from members and families of the army 0.061 4 0.244 total opportuni ty score 1.760 threats (t) 1 changes in disease patterns in the community 0.056 3 0.168 2 is one of the cultural heritage buildings 0.051 3 0.153 3 hospital geographical location 0.053 3 0.159 4 increase bpjs health contributions 0.054 3 0.162 5 hospital accreditation regulations 0.064 3 0.192 6 use of the latest medical technology 0.061 3 0.183 7 facilities and services at other hospitals are more complete 0.054 2 0.108 8 capital strength of private hospitals 0.044 2 0.088 9 the establishment of a new hospital 0.039 3 0.117 total weight 1,0 total threat score 1.330 weighted total scores of opportunities and threats 3.090 source: data processed table 2. ife matrix no internal factors weight ranki ng weighte d score strenghts (s) 1 have standard operational procedures for each unit 0.032 4 0.128 2 monitoring and evaluating each unit regularly 0.031 4 0.124 3 the speed of handling and service to patients 0.031 4 0.124 4 medical and non-medical workers of productive age 0.03 4 0.12 5 discipline of medical and non medical personnel is high 0.032 4 0.128 6 having a specialist in internal medicine professionals and seniors 0.031 4 0.124 7 disseminating information on ppk 1 / fktp in the yogyakarta area 0.029 4 0.116 8 provides patient complaint services via telephone / sms 0.028 3 0.084 9 having social media as a promotional media 0.025 3 0.075 10 patient outpatient visits are quite high 0.032 4 0.128 jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 44-49 11 recording and financial management are well structured 0.028 4 0.112 12 have an internal financial audit team 0.032 4 0.128 13 provides bpjs health services 0.031 4 0.124 14 providing homecare services 0.026 3 0.078 15 in collaboration with the department of population in making the certificate of a child born in the hospital for free 0.03 3 0.09 16 in collaboration with pt environmental direction in hospital solid waste treatment 0.032 4 0.128 17 having a hemodialysis unit with high patient visits 0.027 3 0.081 18 has a 4-dimensional ultrasound tool that has been used 0.029 4 0.116 19 provides online patient registration services through the hospital website 0.028 4 0.112 2 20 hospital information system integrated 0.03 4 0.12 total strengt h score 2.24 source: data processed weaknesses (w) 1 lack of personnel in filling hospital organizational structures 0.024 2 0.048 2 lack of human resources focused on hospital marketing units 0.028 2 0.056 3 lack of human resources focused on it units 0.028 2 0.056 4 lack of customer service at the hospital 0.025 2 0.05 5 brand image as a military hospital 0.024 2 0.048 6 general patient visits are low 0.027 2 0.054 7 the use of inpatient units is not optimal 0.027 2 0.054 8 the lack of operational funds from the ministry of defense 0.028 2 0.056 9 sub-satker financial management of pnbp 0.027 2 0.054 10 maintenance of facilities and infrastructure is not optimal 0.032 1 0.032 11 limited use of the latest medical devices 0.032 1 0.032 12 the lack of updates on the physical building 0.028 1 0.028 13 limited polyclinic / examination room for patients 0.029 1 0.029 14 the lack of research / research in the field of health 0.025 2 0.05 15 some features are not available on the hospital website 0.027 2 0.054 total weight 1,0 weakn ess total score 0.701 weighted total score strength and weaknesses 2.941 source: data processed matching stage based on the results obtained in the previous stage, the total weighted score of the efe matrix was 3.090 and the ife matrix was 2.941. the results of the analysis using the ie matrix showed that the hospital was in cell ii which indicated being in a growing and developing condition. the resulting alternative strategies are incentive strategies (market penetration, market development, and product development) and integration strategies (forward integration, backward integration, and horizontal integration). based on the analysis using the swot matrix obtained 7 alternative strategies that can be done by the hospital including: so strategy: increase patient visits through marketing efforts by utilizing a tiered referral system, building partnerships with other institutions related to improving health services, and developing hospital areas to adjust needs community supported by professional specialist doctors, wo strategy: increase patient loyalty by maximizing the use of medical devices and polyclinics in hospitals, st strategy: improve service quality oriented to patient satisfaction with competitive service prices, improve the quality of human resources with the latest disease training or seminar in the community, wt strategy: maintenance of hospital facilities by optimizing hospital operational funds decision stage the decision phase is carried out with cdgm with the hospital leadership to determine strategic priorities that can be taken from various alternative strategies obtained from the previous stage. in the decision stage, only 4 alternative strategies are evaluated using the qspm matrix by combining strategies that theoretically have the same goal. the results of the qspm matrix, the priority order of the strategy is to build partnerships with other institutions related to improving health services with a total attractiveness score of 3,881, increasing patient loyalty by maximizing the use of medical devices and polyclinics in hospitals with a total attractiveness score of 3,741 , maintenance of hospital facilities by optimizing hospital operational funds with a total attractiveness score of 3,289, and improving the quality of human resources owned by training or seminar handling the latest diseases in the community with a total attractiveness score of 2,608 conclusions based on the analysis conducted, it can be seen that the external condition of the hospital is quite good, based on a weighted score the odds are greater than the threat and the total jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 44-49 weighted score of the efe matrix is 3.090, so it can be said the hospital can optimize the existing opportunities to face and anticipate external threats. faced by the hospital. while the internal condition of the hospital is quite good based on a weighted score of strength greater than the weakness and the total weighted score of the ife matrix is 2.941, so it can be concluded that the hospital has an internal strength enough to overcome the internal weaknesses. alternative strategies that can be implemented by hospitals are to increase patient visits through marketing efforts by utilizing a tiered referral system, building partnerships with other institutions related to improving health services, and developing hospital areas to adjust community needs supported by professional specialists, increase patient loyalty by maximizing the use of medical devices and polyclinics in hospitals, improving the quality of services oriented to patient satisfaction with competitive service prices, improving the quality of human resources owned by training or seminar handling the latest disease in the community, maintenance of hospital facilities by optimizing operational funds hospitals, and priority strategies that can be taken by hospitals based on the analysis conducted is to build partnerships with other institutions related to improving health services. references achmadi, 2008. perencanaan strategi rumah sakit port medical center tahun 2009-2013 dengan pendekatan balanced scorecard, fakultas kesehatan masyarakat, universitas indonesia, depok. aji purwita andika, 2016. pemahaman implementasi rencana strategi bisnis rs pku muhammadiyah pertanahan, medicoeticoilegal dan manajemen rumah sakit. 5(2) assauri, s, 2004. tantangan pimpinan rumah sakit menghadai paradigma baru. manajemen usahawan. 9.(33). 50-55. azhary, m emil, 2009. potret bisnis rumah sakit indonesia. economic review. 218. david, f.r and david, f.r. 2016. strategic management: a competitive advantage approach, concepts, and cases. 15th ed. pearson education, inc. new jersey. terjemahan n. pusparidan l. n. puspitasari. 2016 manajemen strategik: suatu pendekatan keunggulan bersaingkonsep, salemba empat, jakarta. hunger, j. david, and wheelen, thomas l, 2003. manajemen strategis. andi, yogyakarta. jauch, lawewnce r & william f. g, 2004. strategic management and businees policy. ninth edition, mcfraw-hill, new york. karmawan, budi, 2016. penyusunan rencana strategis rumah sakit pertamina jaya tahun 2017-2022. asri. 2(2). lasyera efio, yuli hendri yeni, and busuddin hadril, 2018. analisis rencana strategi rumah sakit umum daerah arosuka kabupaten solok. kesehatan andalas, 7(2). peraturan pemerintah republik indonesia nomor 49 tahun 2013 tentang badan pengawas rumah sakit. 8 juli 2013. permana, dodi, and lukviarman, niki, 2012. analisis lingkungan industri dan formulasi strategi: studi pengembangan institusi rumah sakit. siasat bisnis. 16(1), 1-12. pearce ii, john a, and robinson jr, richard b, 2013. manajemen strategis: formulasi, implementasi, dan pengendalian, edisi 12, salemba empat, jakarta. ristrini, 2005. perubahan paradigma jasa pelayanan kesehatan rumah sakit dan rekomendasi kebijakan strategis bagi pimpinan. jmpk. 8(1), 5-6. sekaran, uma, and roger bougie. 2017. metode penelitian untuk bisnis, edisi 6, salemba empat, jakarta. sugiyono, 2016. metode penelitian kuantitatif, kualitatif dan r&d. alfabeta, bandung. sulastini, gini permana. 2012. analisis penetapan strategi bisnis unggulan rumah sakit jati sampurna tahun 2012-2017, fakultas kesehatan masyarakat, universitas indonesia, depok, surachman, sudarma, nimran. 2011. knowledge management dan peran strategic partner sdm: pengaruhnya terhadap perencanaan strategik dan kinerja organisasi studi pada rumah sakit di bali, jurnal manajemen dan kewirausahaan,13(1). susanto, aminudin, 2013. analisis faktor-faktor yang mempengaruhi perilaku pasien dalam memanfaatkan rawat inap di rumah sakit pku muhammadiyah nanggulan, jmmr. 2(2). jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 44-49 umniyatun, yuyun, 2018. penyusunan rencana strategis bisnis pada rumah sakit swasta di jakarta. arkesma. 3(1). undang-undang republik indonesia nomer 44 tahun 2009 tentang rumah sakit  correspondence to :rikaaprily@gmail.com received: dec, 12, 2019 revised: dec, 22, 2019 accepted: dec, 30, 2019 jurnal akuntansi, manajemen dan ekonomi vol.21, no. 4, pp. 19 26 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the service industry is a type of industry that produces end products in the form of services or services that can be utilized to support other industrial activities or directly utilized by consumers, divided into two categories, namely finance and non financial. the financial services industry is an industry consisting of various formal and informal organizations that provide financial services. it generally focuses on two markets, namely the capital market and the money market. examples of the financial services industry are banks, insurance companies, pension funds, mutual funds, financing institutions, etc (www.ojk.co.id). banking is anything related about banks. gathering funds from the public bank through deposits or savings and channeling funds made through credit or lending to the public. the bank is mentioned as a business entity that raises funds from the community in the form of deposits and channel it to the community in the form of credit and or other forms to improve the living standards of the community (law number 10 year 1998 about banking). a private owned bank or bums is a business entity that was established and funded by a certain person or group of people. bums is a business entity that is all capital from private parties owned by one or several people (sattar, 2017:60). the number of bums in indonesia is increasing quite large, currently there are 43 bums foreign exchange (www.sahamok.com). similar to the company in general, bums aims to find profits to reach the objectives that have been targeted. however, over the past few years this profit earned bums not maximally even some banks suffered losses and a decline in net profit compared to net profit obtained by state-owned enterprises. financial performance is the determination of certain measures that can measure the success of an organization or company in generating profits. according to cashmere (2016:196) there are several types of profitability ratios, including profit margin ratio (net profit margin), equity return (return on equity) ratio and return on assets ratio. this research used the ratio of profitability to return on assets as a ratio to measure the ability of the company in contribution of intellectual capital and loan to deposit ratio on financial performance of private public bank foreign exchange rika aprilyani1, leny suzan2 1 accounting faculty of economic and bussines, telkom university, indonesia abstract the population and data source in this study focuses on the financial sector which is one of the sectors contained in the service industry, namely the banking sub-sector company of the private public bank of foreign exchange. this research is based on an increase in total assets each year during the year 2014-2018 but the profit generated is volatile. the population of the company's financial report bums devisa listed on the indonesia stock exchange in 2014-2018 with 20 companies. the research methods used are descriptive statistics and analysis of the data regression panel of common effect models. this research aims to analyze how the influence of value added capital employee (vaca), value added human capital (vahu), structural capital value added (stva) and loan to deposit ratio (ldr) against return on assets (roa) both simultaneously or partially. the results of the study showed that the variables of vaca, vahu, stva, and ldr simultaneously significantly affect roa with a probability value of 0.00000. partials of vaca, vahu and ldr variables have no effect on roa. stva has a positive effect on roa. keywords value added capital employee (vaca), value added human capital (vahu) , structural capital value added (stva), loan to deposit ratio (ldr) dan return on assets (roa). jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1926 generating profit from the use of existing assets in the company. based on data obtained from the annual report of the foreign private owned public bank (bums) company in the indonesia stock exchange (idx), the year 2014-2015 reflects the profit of each year and continues to increase as presented in the table below: tabel 1. total aset bums tahun total assets 2014 1.011.641.966.326.600 2015 1.063.182.385.768.940 2016 1.073.545.361.993.940 2017 1.210.947.922.989.610 2018 1.217.531.937.396.260 as for the return on assets (roa), private owned banks (bums) are volatile as presented in the following table: tabel 1. net income bums tahun net profit roa 2014 19.011.595.203.329 0,01879 2015 7.473.426.119.920 0,00703 2016 3.392.083.399.169 0,00316 2017 11.513.157.822.470 0,00951 2018 13.414.414353488 0,01102 in the middle of the asset increased stable but from the figure 1.2 above can be concluded that net profit bums decreased in 2015 of rp 11.538.169 million and again decreased but not too significant in the year 2016 of rp 4.081.342 million. this indicates that the total increase in assets is not accompanied by a profit increase as it should. in 2017 net profit increased rp 8.121.074 million and in 2018 increased back by rp 1.901.256 million. while return on assets (roa) bums in 2014-2018 is volatile, in 2014 showed the next 1.87% figure in 2015 was dropped to 0.70% because the year's profit declined. the year 2016 decreased back to 0.31% while in 2017 and 2018 had an increase of 0.95% and 1.10% respectively. according to tandelilin (2003), roa describes the extent to which the capabilities of the company's assets can generate profit. the higher the roa, the greater the level of profit achieved by the bank and the better the position of the bank in terms of asset use (syamsudin, 2011). based on the background that has been displayed, the authors use the public bank object of private foreign exchange and return on assets (roa) to measure the financial performance of public foreign exchange banks in 20142018. microcredit is said to be a decrease in profit reduction at bank danamon. satinder ahluwalia, finance director of bank danamon said, it deliberately brake the distribution of microcredit because it wants to enlarge the segment of the non-mass market such as small and medium enterprises (smes), homeownership loans (kpr) and motor vehicle credit (kkb). "net profit is not down but stable. this is because the micro portfolio dropped, "he said, wednesday (25/7). the banks of the bdmn share code in the indonesia stock exchange recorded a reduction in micro portfolios ranging from rp 3 trillion to rp 4 trillion. consequently, the total micro-distribution is only rp 4.5 trillion in the first semester of 2018, or lower than the achievement of rp 7 trillion-rp 8 trillion in the past year. meanwhile, bank panin still records the increase in the credit distribution amid the profit slowdown. the credit flow grew 6.52% to rp 147 trillion. the majority of the credits or 58.7% flow to the credit retail and commercial sectors. from the explanation above, researchers use the ratio of loan to deposit ratio (ldr) to measure the health level of private public banks. the best standard of ldr is above 85%. some researchers have stated that the loan to deposit ratio (ldr) has a positive effect on financial performance (priyanto et al. 2015; usman harun 2014) because the high ldr will generate high returns as well as influential roa. however, andy setiawan et al. (2017) proved the ldr to have a significant and negative effect on roa. this shows that the lower ldr then the smaller the credits are channeled and will lower the profit. literature review stakeholder theory this theory considers that organizational accountability is not confined to economic or financial performance only, so companies need to make disclosures about intellectual capital more than required by the competent body. organizational management should be maximally concerned with the creation of value added that can promote the improvement of the organization's financial jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1926 performance, by utilizing all potential organizations, human capital, physical capital, and structural capital. resource based view theory rbv states that the company's resources and capabilities are critical to the company, as it is the foundation of the competitiveness and performance of the company. the knowledge-based theory considers knowledge as a resource that is very important to the company because knowledge is an asset that if managed properly will improve the company's performance. bank indonesia regulation on general bank health assessment 13/1/pbi/2011 the bank is obliged to conduct an assessment of the bank's health either individually or in consolidation using a risk approach. the bank's health level assessment is consolidated for the bank that conducts control of the subsidiaries. the bank's health valuation factors consist of risk profile, good corporate governance, rentability (earnings), and capital). the attachment of bank indonesia circular letter no. 9/24/dpbs states the general bank health assessment based on sharia principles is done by taking into account the camels factor through quantitative and or qualitative approaches to various aspects that affect the condition or performance of the bank by conducting assessments of financial factors and management factors. return on assets roa represents a good measure of the company's profitability as it shows the company's efficiency levels in using the assets to earn profit. the measurement of roa safitry (cashmere, 2016) as follows: roa = intellectual capital intellectual capital is generally identified as three components including human capital (hc), structural capital (sc) and customer capital (cc). intellectual capital can be measured with value added intellectual coefficient (vaic) model developed by pulic in 2005. the vaictm model has the following phases of calculation (pulic, 1999 in anggraeni et al. 2016). the first stage of value added (va), calculated with the difference between the output and input. the second phase of value added capital employed (vaca), is an indicator for va created by one unit of physical capital. this ratio shows the contribution of each ce unit to the company's value-added. vaca = the third phase of value added human capital (vahu), shows how much va is generated with the funds spent on labor. this ratio reflects the contribution of each rupiah invested in the hc against the company's value-added. vahu = the fourth stage of the structural capital value added (stva), measures the amount of sc needed to generate 1 rupiah from the va and is indicative of how sc's success is in the creation of value. stva = the fifth stage of value added intellectual coefficient (vaictm), indicating the intellectual ability of the company which is the sum of the three components of the previous, namely: vaca, vahu, and stva. vaictm = loan to deposit ratio the loan to deposit ratio is a ratio for measuring the bank's ability to meet the financial obligations that must be met. ldr is calculated from a comparison between the total credits with third-party funding. the best standard of ldr ratio is above 85%. ldr jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1926 methods the purpose of research in this research is a descriptive purpose. according to sugiyono (2014) "a descriptive method is a method used to describe or analyze a research result but is not used to make a broader conclusion" using quantitative research methods. population, sample, techniques the population in this research is a subsector company of public owned foreign exchange bank, registered in idx period 2014-2018, which reports its financial statements and annual reports, and is open to the public by 20 companies. the sample of this study is 16 companies with a 5 year research period that reports on its financial statements periodically and is open to the public and based on psak. in this research, the data used is secondary data. thus 16 x 5 years = 80 data. the data analysis technique in this research is a regression model of panel data. descriptive statistics are statistical methods used to analyze the data by describing or describing existing data and accumulating as it should be without intent to make any generalized and general conclusions (sugiyono, 2014). before testing the panel data regression model conducted a classical assumption test in this study using two tests namely multicollinearity test and heteroskedasticity test. next, you choose the appropriate and appropriate models for this study whether it is a comment effect, fixed effect or random effect. hypothesis testing the simultaneous hypothesis testing or so-called test-f is a test involving all free variables against a variable bound to test whether or not a significant effect is simultaneously or jointly (sunyoto, 2011:54). with probability significant value of > 0.05, then ho accepted. if probability a significant value of < 0.05, then ho is rejected. results and discussion table 1 multicollinearity test table 1 is the results of multicollinearity test, based on the data on the test results indicates that the correlation value between all the free variables tested < 0.9. it can be concluded that in this study there was no multicollinearity. heteroskedasticity test: breuschpagan-godfrey f-statistic 0.28608 prob. f(4,75) 0.8861 obs*r-squared 1.202301 prob. chi-square(4) 0.8777 scaled explained ss 5.319925 prob. chi-square(4) 0.2560 based on the data above the test results heteroskedasticity using the breusch pagan test method, indicating that the value of prob. chi-square (4) amounted to 0.8777 > 0.05 based on the data on the test results can be concluded that h0 is accepted or can be stated that there is no heteroskedastisity on the spread of data. redundant fixed effects tests equation: untitled test cross-section fixed effects effects test statistic d.f. prob. cross-section f 0.908316 (15,60) 0.5593 cross-section chi-square 16.370922 15 0.3578 jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1926 tabel 2. fixed effect model (uji chow) table above shows chow test result with chi-square cross-section probability value of 0.3578 > 0.05. based on the data on the test results can be concluded that h0 was received so that on this research model regression data panel with common effect model better than fixed-effect model. after testing chow then the next step is to test between common effect method with random effect using lagrange multiplier test. table 3 random effect model (lagrange multiplier) in table below is the result of the lagrange multiplier test, obtained the probability value of breusch-pagan (bp) by 0.7318 > 0.05. based on such data, it can be concluded that the h0 is received so that on this research the data regression panel is used which is a common effect model better than using a regression model data panel with a random effect model. from the test results of the three models that have been done, the common effect model is the right model in this study. table 4 model common effect based on the results of the testing significance common effect model in table 4.11 can be formulated that the equation of data regression panel, as follows: roa =154.3452 + 2.372512 vaca + 0.621582 vahu + 68.62236 stva + 141.0098 ldr + ε. from table above, it can be known that the adjusted r-square value of this research model is 0.430976 or 43.09%. thereby, it can be concluded that the independent variables value added capital employee, value added human capital, structural capital value added and loan to deposit ratio are able to explain the dependent variable that is return on assets in the company public bank of foreign exchange amounted to 43.09%, while the remaining of 56.91% is explained by other variables outside of this research. then shows that the value of prob (f-statistic) is 0.000000 < 0.05 and then h01ditolak and ha1 accepted can be interpreted that valueadded capital employee, value-added human capital, structural capital value added and loan to deposit ratio have a significant effect on the simultaneous impact on return on assets. according to table 2.4, the test results stated that value added capital employee (vaca) probability value of 0.4195. the value shows that 0.4195 > 0.05, it can be concluded that h02 was accepted and ha2 rejected, so value added capital employee has not partially had a significant effect on return on assets. value added human capital probability value of 0.9290. the value shows that 0.9290 > vaca vahu stva ldr vaca 1.000000 0.047632 0.087183 -0.126386 vahu 0.047632 1.000000 -0.027189 -0.020650 stva 0.087183 -0.027189 1.000000 0.041143 ldr -0.126386 -0.020650 0.041143 1.000000 vaca vahu stva ldr vaca 1.000000 0.047632 0.087183 -0.126386 vahu 0.047632 1.000000 -0.027189 -0.020650 stva 0.087183 -0.027189 1.000000 0.041143 ldr -0.126386 -0.020650 0.041143 1.000000 lagrange multiplier tests for random effects null hypotheses: no effects alternative hypotheses: two-sided (breusch-pagan) and one-sided (all others) alternatives test hypothesis crosssection time both breusch-pagan 0.117472 7.273603 7.391075 (0.7318) (0.0070) (0.0066) dependent variable: roa method: panel least squares date: 12/19/19 time: 20:07 sample: 2014 2018 periods included: 5 cross-sections included: 16 total panel (balanced) observations: 80 variable coefficient std. error t-statistic prob. c -154.3452 105.2143 -1.466961 0.1466 vaca 2.372512 2.922380 0.811842 0.4195 vahu 0.621582 6.950942 0.089424 0.9290 stva 68.62236 9.043278 7.588217 0.0000 ldr 141.0098 80.71682 1.746970 0.0847 r-squared 0.459787 mean dependent var 181.5871 adjusted r-squared 0.430976 s.d. dependent var 241.9066 s.e. of regression 182.4791 akaike info criterion 13.31161 sum squared resid 2497396. schwarz criterion 13.46049 log likelihood -527.4644 hannan-quinn criter. 13.37130 f-statistic 15.95855 durbin-watson stat 1.876252 prob(f-statistic) 0.000000 jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1926 0.05, it can be concluded that h03 is accepted and ha3 rejected, so value added human capital partially has no significant effect on return on assets. the probability value of structural capital value added is 0.0000. the value shows that 0.0000 < 0.05, then it can be concluded that h04 rejected and ha4 received so that the structural capital value added has been a partially significant influence on return on assets. a probability value of loan to deposit ratio of 0.0847. the value indicates that 0.0847 > 0.05, it can be concluded that h04 received and ha4 rejected so that the loan to deposit ratio has not partially against return on assets. effect of value added capital employee on return on assets partial test results in table 4.15, the probability value of value added capital employee is 0.4195 > 0.05, it can be concluded that h02 received and ha2 rejected so that the value-added capital employee partially did not have a significant influence on return on assets (roa) on the company of private-owned public bank foreign exchange 2014-2018. the regression coefficient of vaca is 2.372512 in the positive direction, indicating that there is a direct connection between vaca and roa. if, the value of vaca has increased sebesar1satuandengan assuming another variable is worth 0 or constant then it will increase roa value by 2.372512. vaca is a value-added efficiency indicator of the physical/financial capital used by the company. the results showed that vaca had no effect on roa because the company that manages its equity capital effectively would generate maximum profit for the company and increase the stable roa. effect of value added human capital on return on assets the results of a partial test probability value added human capital variable is 0.9290 > 0.05, it can be concluded that h02 received and ha2 rejected so that the value-added human capital partially did not have a significant influence on return on assets (roa) on the company of private owned public bank foreign exchange 2014-2018. the regression coefficient of vahu is 0.621582 in the positive direction, indicating that there is a direct connection between vahu and roa. if, the value of the vahu increased by 1 unit assuming another variable is 0 or constant, then it will increase roa value by 0.621582. vahu is an indicator of the efficiency of value-added human capital. hce is the ratio of value added (va) to human capital (hc). this relationship illustrates the ability of human capital within the company to provide added value to a company. the results showed that vahu has no effect on roa because human capital in bums devisa is managed effectively according to the profit earned in those years so that the mean human capital is much more under mean return on assets. effect of structural capital value added on return on assets the results of the partial test table 4.15 the probability value of the variable's structural capital value added is 0.0000 < 0.05, then it can be concluded that h02 rejected and ha2 received so that a partial structural capital value-added has a significant influence on return on assets (roa) on the company's public bank, foreign exchange 2014-2018. the regression coefficient of stva is 68.62236 in a positive direction, indicating that there is a direct connection between stva and roa. if the value of stva increases by 1 unit assuming another variable is 0 or constant, then it will increase roa value by 68.62236. stva is an indicator of efficiency valueadded structural capital. sce is the ratio of sc to va. this ratio measures the amount of sc needed to generate 1 rupiah from the va and is an overview of how sc's success is in creating value. the results showed that stva had a positive effect on roa in accordance with the hypotheses that had been presented because the sc produced could raise the va in the private bank of foreign exchange. effect of loan to deposit ratio on return on assets in table 2.4 variable probability value of the loan to deposit ratio is 0.0847 > 0.05, it can be concluded that h02 received and ha2 rejected so that partial loan to deposit ratio has no significant influence on return on assets (roa) on the company public owned jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1926 commercial foreign exchange 2014-2018. the regression coefficient of ldr is 141.0098 in a positive direction, indicating that there is a direct link between ldr and roa. if, the ldr value has increased by 1 unit assuming another variable is 0 or constant, then it will increase roa value by 141.0098. the loan to deposit ratio is a ratio for measuring the bank's ability to meet the financial obligations that must be met. ldr is calculated from a comparison between the total credits with third party funding. the results showed that ldr does not have any effect on roa is not in accordance with the hypotheses that have been presented because the ldr owned by the public private bank of foreign exchange above 86% on average stipulated in accordance with the provisions of bank indonesia means that the better ldr can not affect roa on the public bank of private foreign exchange. conclusion the purpose of this research is to know the influence of independent variables consisting of a value-added capital employee, value-added human capital, structural capital value-added and loan to deposit ratio of dependent variables i.e. return on assets on private bank sector companies listed on the indonesia stock exchange period 2014-2018. samples on this study as much as 80 consisting of 16 companies with a research period of 5 years. based on the results of descriptive analysis and discussion, it can be concluded a few things as follows based on the results of the descriptive analysis test. first, variable value-added capital employee during the year 2014-2018 has a maximum value of 5.563428 owned by qnb indonesia and a minimum value of0.4078 is owned by bank jtrust indonesia. so that in this research, data varies or fluctuation. second, variable value-added human capital during the year 2014-2018 has a maximum value of 20.7496 owned by bank bukopin tbk and a minimum value of-2.852 owned by bank permata. so that in this research the data is not varied or relatively homogeneous.third, variable structural capital value-added has been in the year 2014-2018 has a maximum value of 9.493 by bank mnc international tbk. and a minimum value of-4.590 owned by bumi arta. so in this research, the data is not varied or relatively homogeneous (varies). forth, variable loan to deposit ratio during the year 2014-2018 has a maximum value of 1.684 owned by bank danamon indonesia tbk and a minimum value of 0.502 owned by bank capital indonesia. so that in this research the data is not varied or relatively homogeneous. fifth, based on the test of simultaneous significance (test statistical f) value added capital employee (vaca), value added human capital (vahu), structural capital value added (stva) and loan to deposit ratio (ldr) simultaneously significant effect on the tax avoidance on the private bank company of foreign exchange listed on the indonesia stock exchange on 2014-2018. based on partial hypothesis testing. first, value-added capital employee has no influence on return on assets in private bank companies listed on the indonesian stock exchange in the year 2014-2018. second, value-added human capital has no effect on return on assets in private bank companies listed on the indonesian stock exchange in 2014-2018. third, structural capital value-added has a positive influence on return on assets in the privately owned foreign exchange company registered on the indonesian stock exchange in the year 2014-2018. forth, loan to deposit ratio has no influence on return on assets in private bank companies listed on the indonesian stock exchange in the year 20142018. references agus tri basuki, n. p. (2016). analisis regresi dalam penelitian ekonomi dan bisnis. jakarta: pt. rajagrafindo persada. banjarnahor, e. (2019). analysis of value added intellectual capital to the financial performance listed banking companies in indonesia. international journal of contemporary accounting volume 1 , 6167. bougie, u. s. (2016). research methods for business. catur sasongko, q. a. (2018). akuntansi pengantar 1. jakarta: salemba empat. fahmi, i. (2016). analisis laporan keuangan . bandung: alfabeta. hermanto, a. s. (2017). comparative study determinant on banking profitability between buku 4 and buku 3 bank in indonesia. benefit jurnal manajemen dan bisnis issn: 1410-4571 e-issn: 25412604 . hery, s. (2015). analisis kinerja manajemen menilai kinerja manajemen berdasarkan rasio keuangan. grasindo. ikatan akuntan indonesia. (2015). pernyataan standar akuntansi keuangan no. 19. jakarta: salemba empat. jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1926 ikatan akuntansi indonesia. (2014). standar akuntansi keuangan nomor 1 per efektif 1 januari 2015. jakarta: salemba empat. kasmir. (2014). analisis laporan keuangan. jakarta: pt raja grafindo persada. kasmir se, m. (2018). dasardasar perbankan. raja grafindo persada. kieso, d. e. (2016). intermediate accounting. ifrs edition 2nd. munawir. (2014). analisa laporan keuangan. yogyakarta: liberty. otoritas jasa keuangan. (2018). https://www.ojk.go.id/id/kanal/perbankan/ pages/bank-umum.aspx. dipetik 2019, dari www.ojk.go.id: rosadi, d. (2012). analisis ekonomika dan runtun waktu terapan dengan eviews. yogyakarta: andi offset. sanusi, a. (2019). metodologi penelitian bisnis. jakarta: salemba empat. sitanggang, l. m. (2018). kredit mikro disebutsebut sebagai biang kerok penurunan laba. kontan.co.id. sugiyono. (2016). metode penelitian kuantitatif, kualitatif, dan r&d. bandung: pt alfabet. sugiyono. (2014). metodologi penelitian. bandung: alfabeta. sunyoto, s. (2011). analisis regresi untuk uji hipotesis. yogyakarta: caps. ulum, i. (2015). intellectual capital disclosure: suatu analisis dengan four way numerical coding system. doi.org volume 19 no. 1 . yuliadi, b. d. (2015). ekonometrika teori& aplikasi . yogyakarta: mitra pustaka nurani. jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 4, 2022, pp. 1-20 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to: fatimahzahranasution@unsil.ac.id received: 16 oct 2022 accepted: 27 oct 2022 published: 1 dec 2022 introduction there are always two policy options in economics: policies that support economic growth and development. economic growth is an increase in output from year to year due to a rise in productivity. meanwhile, economic development means an increase in output from year to year accompanied by improvements in production to gain welfare. these two concepts provide a paradigm that growth only looks at the point of view of increasing material output and does not consider whether high growth will also increase the level of welfare or even harm society. economic growth is seen and measured by comparing components representing the current state of a country's economy and the previous period. the element used to measure economic growth is gross national product (gnp) or gross domestic product (gdp). expressed in percentage units, gross domestic product (gdp) calculates economic growth in terms of physical output. on the other hand, development economics sees an increase in production and an improvement in welfare. this improvement mainly solves economic problems such as poverty, unemployment, health insurance, alleviating malnutrition, high inflation, etc. in analyzing economic development, experts use various indicators such as the human development index (hdi) for measuring the human resource aspect. besides that, other indexes, like the indonesia democracy index, gender development index, and anti-corruption behavior survey (spak), are relevant in analyzing economic development according to the research field. data on economic growth in indonesia shows sharp fluctuations from year to year. many factors can cause this. factors like population, sociocultural aspects, amount of capital goods, land area and natural resources, innovation, and technology can affect economic growth and development. figure 1 shows indonesia's economic growth from 2005 to 2018. how do innovation and technology trade affect economic growth performance in indonesia? fatimah zahra nasution1, muhamad ferdy firmansyah2 1,2department of economics development, faculty of economics, siliwangi university, indonesia abstract innovation is a driving factor for a country's economic growth. it can provide carrying capacity for productivity, efficiency, and performance effectiveness in each industry. to improve production, we need research and innovation. this study empirically estimates the impact of technological innovation and trade on economic growth. the data used is time series data with a quantitative method using autoregressive distributed lag (ardl) for long-term analysis and error correction model (ecm) for short-term study. this current study empirically found that in the long-term research, the innovation stated in the number of patents will significantly affect economic growth when technology imports occur. meanwhile, innovation will significantly and negatively affect grant financing in the event of an increase in the technology trade. this result indicates that reducing grants by increasing the quality of research through the efficiency of research grants will promote economic growth. on the other hand, in the short-term analysis, innovation does not affect economic growth, whereas only information and communication technology (ict) export can support economic growth. another empirical study found that institutions and population growth do not affect economic growth regarding innovation and technology. the government must increase technology transfer abroad for domestic research purposes and increase demand for technology exports to become an incentive for the more effective and efficient use of grant funds. keywords economic growth; innovation; patent; grant; technology mailto:fatimahzahranasution@unsil.ac.id jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 4, 2022, pp. 1-20 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to: fatimahzahranasution@unsil.ac.id received: 16 oct 2022 accepted: 27 oct 2022 published: 1 dec 2022 figure 1. indonesia's economic growth period 2005-2018 4.4 4.8 5.2 5.6 6.0 6.4 05 06 07 08 09 10 11 12 13 14 15 16 17 18 source: central bureau of statistics, republic of indonesia innovation has an impact on economic growth. in kenya, financial innovation has significantly impacted economic growth through broader market options for customers to shop, resulting in increased demand and, thus, productivity (mwinzi, 2014). in a middleincome country (or a country with a more advanced economic level but still categorized as a developing country) such as malaysia, the total grants calculated through the quality of innovation are significant to the performance of economic growth. (law, sarmidi, & goh, 2020). innovation has an impact on productivity and increases human resources. in portugal, innovation in improving human capital (expertise, performance efficiency) had more impact than the innovation capacity of patents and grants (teixeira & fortuna, 2003). petrariu, bumbac, & ciobanu (2013) found that innovation impacts economic growth and contributes to countries in central and eastern europe. in smes in pakistan, innovation works if smes least participate in alliances for innovative projects. therefore, the current study's findings suggest upgrading their dynamic knowledge management capability by building their structural, technological, and entrepreneurial capabilities (hassan & iqbal, 2020). discussing the micro sector affected by innovation from an economic perspective, firmansyah (2018) analyzes the characteristic of politics to technology and political entertainment. he found that the technology approach (using innovation such as tv, radio, smartphone, e-news, etc.) does not directly affect political polarization. so sectors such as politics received indirect effects from innovation in economics. however, its characteristics show that high economic growth is not a direct impact of innovation but an additional industrial output caused by the implementation of innovation. innovation enhances human capital's capacity and promotes economic production performance. it can also drive economic growth. to reach such conditions, the government should provide patents for industry and fulfilling sufficient grants for research and development. understanding the relationship between innovation and technology trade to economic growth performance, we must build the assumption to trust the applicable model framework. the assumption for innovation is that society will adopt it immediately right after the provision of the innovation. on the other hand, the assumption for technology trade is the countries that made the trade relation for information and communication technology (ict) is to adopt it for national technology development. this research aims to see the effect of innovation and technology trade on economic growth performance in indonesia, assuming that innovation and technology support all economic growth sectors. the model proposed by law, sarmidi, & goh (2020) implemented research based on the indonesia case. these are the research objectives: (a) to find out the relationship and the effect of innovation and technology trade on economic growth performance in indonesia; (b) to explore the role of innovation by differentiating it with total patent and total grants and also to find the result interaction mailto:fatimahzahranasution@unsil.ac.id jurnal akuntansi, manajemen dan ekonomi , vol.24, no. 4, 2022, pp. 1-20 both of variables to economic growth performance by assumption to adopt research and innovation on the economic sector; (c) to explore the role of technology trade by different it with ict import and ict export and also to discover how the impact of both variables to economic growth performance by assumption adopted technology development; and (d) to identify and test the relationship between innovation and technology trade to economic growth performance. literature review 2.1 basic theory of economic growth economic growth is a national economic phenomenon and a dynamic regional change in output. we use the gross domestic product to analyse economic growth and development. economic growth is broadly defined as additional output, which is more prominent now than in the previous year, or technically, the real grdp one year with the real grdp the last year. (sukirno, 2004). the main objectives of developing countries are economic growth and economic development, in which a growing economy does not necessarily have improvements in economic development (nafziger, 2005). 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝐺𝑟𝑜𝑤𝑡ℎ → 𝐸𝐺 = 𝐺𝐷𝑃𝑡 − 𝐺𝐷𝑃𝑡−1 𝐺𝐷𝑃𝑡−1 (1) mourad and trabulsi (2019) stated that from an economic perspective, the gross domestic product has a positive impact on household final consumption expenditure (𝐻𝐹𝐶𝐸𝑡 ), money supply (𝑀𝑙𝑡 ), inflation measured by the consumer price index (𝐶𝑃𝐼𝑡 ), interest rates (𝑟𝑖𝑟𝑡 ) and other variables. the specific relationship between gdp, expenditure, and gross domestic savings (𝐺𝐷𝑆𝑡 ) is as follows: 𝑖𝑛𝑐𝑜𝑚𝑒 𝑖𝑑𝑒𝑛𝑡𝑖𝑡𝑦 → 𝐺𝐷𝑃𝑡 = 𝐺𝐷𝑆𝑡 + 𝐻𝐹𝐶𝐸𝑡 + 𝐺𝐹𝐶𝐸𝑡 (2) 𝐺𝐷𝑃𝑡 𝑝𝑟𝑖𝑐𝑒 𝑖𝑠 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡 → 𝐺𝐷𝑃𝑡 = 𝐺𝐷𝑃0(1 + 𝑟) 𝑡 economic development is categorized as a scientific study that includes broad economics in the efficiency of allocating scarce productive resources, the sustainability of economic growth, and paying attention to social mechanisms that exist in both public and private sphere (todaro & smith, 2003). economic development refers to economic growth accompanied by changes in the distribution and structure of the economy (nafziger, 2005). economic growth provides an analytical and technical picture of the economic development of a region which can then be further analysed whether economic development occurs after economic growth occurs. economic development is a combination of growth and changes in the economic structure towards a better stage so that it also looks at the socio-economic aspects of society. thus, economic development cannot be separated from economic growth, and vice versa. 2.2 economy of innovation innovation is creating new things, new ease, and something new (hussain, afzal, asif, ahmad, & bilal, 2011). generally, several parameters used in analysing innovation are r&d expenditures, r&d personnel, patents, scopus-indexed journals, google scholarindexed journals, and so on that focus on the knowledge-based economic context (korres & drakopoulos, 2009). hulya ulku (2004) found that innovation and research were positively correlated in oecd and non-oecd countries in 1981-1997. the development of a country's competitive level is reflected, among others, by spending on r&d and innovation so that if a country has high productivity in innovation and research, it is always indicated as a country with good competitiveness. (ildirar, ozmen, & iscan, 2016). therefore, a government that is incompetent to meet its research and innovation targets will not promote contribution toward people's welfare significantly. jurnal akuntansi, manajemen dan ekonomi , vol.24, no. 4, 2022, pp. 1-20 figure 2. total patents and total grants of indonesia for the period 2005-2018 4,000 5,000 6,000 7,000 8,000 9,000 10,000 05 06 07 08 09 10 11 12 13 14 15 16 17 18 totalpatent 700,000,000 800,000,000 900,000,000 1,000,000,000 1,100,000,000 1,200,000,000 1,300,000,000 1,400,000,000 1,500,000,000 1,600,000,000 05 06 07 08 09 10 11 12 13 14 15 16 17 18 totalgrants source: world development indicator research is generally considered to be able to support economic growth, both in the short and long term. in the short term, more abundant and productive research receives sufficient grants, and problem-solving innovations can be directly implemented for the welfare of humankind (such as research on agriculture to be applied directly to increase production and efficiency). its direct implementation is supported by government and community institutions that understand the performance of innovation and research. although research is indicated to increase economic growth in the short term, on the other hand, research, grants, and innovations that are not yet optimal will not give meaning to economic growth. examples of short-term research are innovations to develop, recycle, reduce and complement existing technology (supporting technology). in the short term, research and innovation tend to find conditions for higher efficiency, effectiveness, and productivity. the increase in output for economic growth is strongly supported by sectoral performance. thus, the role of production households (business, entrepreneurship, and trade) plays an essential part. business innovation dramatically affects the level of output. economic growth represents an increase in output and business productivity. hussain, afzal, asif, ahmad, & bilal (2011) found a significant relationship between economic growth and entrepreneurship and a significant positive relationship between innovation and entrepreneurship. innovations in increasing productivity and economic efficiency were also found to have an impact in ildirar, ozmen, & iscan (2016), qamruzzaman (2017), and maradana, pradhan, dash, gaurav, jayakumar, & chatterjee (2017). however, innovation does not yet have a reliable measure in analyzing tourism economics. the orientation of measuring innovation is more toward its impact on information technology and research rather than tourism. tourism focuses more on customer satisfaction, so the study focuses more on a social approach (firmansyah & nasution, 2020). in its development, we can see innovation in economic growth in two broad lines; influencing technical aspects and influencing data. technically influencing, it can be measured micro-into the production activities in each factory, or each company is various. tend to show research with small objects (company, factory). on the other hand, in general, researchers often use data influence as a technical basis for research, making data behavior part of the research hypothesis. this research tends to show research with large objects (macroeconomic variables). 2.3 schumpeter concept of innovation regarding the definition of the economy of innovation, schumpeter in lazzarotti, dafovo & hoffmann (2011) create a lot of criteria support for covering innovation cases output from an economic perspective. it should cover five cases or areas from the perspective of creating new combinations: (a) introduction of new goods, (b) introduction of a new method or production process, (c) opening a new market, (d) acquiring a new source of raw materials or semi-manufactured goods, and (e) establishing a new organization of any industry, this case generally involves creating a new business or a new market structure which is characterized by a certain uniqueness of the firm a monopoly given the position it may occupy with the new organization. schumpeter's (1934) original theory of innovative profits emphasized the role of jurnal akuntansi, manajemen dan ekonomi , vol.24, no. 4, 2022, pp. 1-20 entrepreneurship (his term was entrepreneurial profits) and the seeking out of opportunities for novel value-generating activities which would expand (and transform) the circular flow of income. still, it concerns a distinction between invention or discovery on the one hand and innovation, commercialization, and entrepreneurship on the other. growth in this area appears as a typical disruptive process, not an uninterrupted process, which schumpeter (1943) later called "creative destruction." although this term is also often misunderstood, as the deviation refers to circular flows; well-established market structures, the creative process tends to be cumulative growth. the central aspect of schumpeterian "creative destruction," a process strongly related to the nature of the market mechanism, is the discussion of the forms of competition that can ultimately improve the economy in both quantitative and qualitative terms. the entrepreneurial process makes up this explosive force that can disrupt the existing order because of its true creativity. it stands on the technological advantage, mainly from the company's internal potential and the potential to carry out research activities. that's why, according to schumpeter, large companies, monopolies, and companies with more significant innovation potential are among the companies that have the potential to innovate. 2.4 research and technology in economics in indonesia, research and grants are commonly driven by intensive activities in tertiary institutions (universities, colleges) led by professors, lecturers, and others. higher education can be a forum for students, researchers, professors, and development activities to increase quality research outcomes (bouhajeb, mefteh, & ammar, 2018). bara (2016) in qamruzzaman (2017) found that innovation can increase economic productivity in developing countries by adopting technology and information. furthermore, updating appropriate models and systems. in mitra & jha (2015), looking at absolute times, it is indicated that innovation and technology can improve productivity through research and development results implemented in the industry. on the other hand, research and development spending significantly impacts economic growth but only for developed countries (baneliene, melnikas, strazdas, & tolocka, 2018). figure 3. number of scopus indexed and google scholar indexed journal outputs 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 05 06 07 08 09 10 11 12 13 14 15 16 17 18 scopus 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 05 06 07 08 09 10 11 12 13 14 15 16 17 18 googlescholar source: science and technology affiliation (sinta), ministry of research and technology of the republic of indonesia in a neoclassical economic growth, fiscal policy undertaken by the government can be assumed as an expenditure that impacts short-term demand accompanied by long-term economic growth. (deledi, mazzucato, agnolucci, lipsis, & ryan-collins, 2019). this theory places the role of the government in the provision of grants and encourages patents to innovate in both the short and long-term impacts to promote economic growth. the government plays an essential role in fostering good competition and innovation for development. furthermore, government support through providing a capable innovation environment for business innovation, technology-based entrepreneurship, and the provision of public goods that support sustainable research and research. (navarro, benavente, & crespi, 2016). implementing these innovations after government support tends to have a long-term jurnal akuntansi, manajemen dan ekonomi , vol.24, no. 4, 2022, pp. 1-20 and insignificant short-term impact on production. on the other hand, production determines the increase in output for economic growth (blanco, 2013). technical innovations can be divided into two that affect the short and long term. what can distinguish is that from its implementation, such as road innovation, the economic impact will be in the long term, in contrast to innovations in onlinebased finance that will be felt immediately when individuals try to use it for the first time. the connection with technology variables is that some patents and grants are used to find new technologies for sectoral productivity. this phenomenon occurs in indonesia's ict imports and ict exports. ict imports sees that sectors in indonesia need technology and send it from abroad. in contrast, ict exports sees that technological advances in indonesia (one of which is supported by patents and grants) have been able to be traded on the international market. the link between innovation (number of patents and grants) and technology (ict imports and ict exports) is an indication that innovation and technology can support economic growth. in various production function models, technology is often included as one of the supporters of productivity. in the long term, research supports a sustainability agenda, including local, national, and global plans. in the long term, innovation supported by good human resources will help economic growth (diebolt & hippe, 2016). policy to support research sustainability includes fiscal policy support for financing and research funding (including subsidies, assistance, and research facilities as public goods for particular purposes). the implementation of planning in sustainability research refers to the protection of innovative thinking and can support economic growth over a long period. examples of long-term research are renewable energy, green urban planning, electric transportation, and industrial robots. the agenda is industrialization, globalization, political unity, and economic unity. innovation is transformed as a production factor. innovation is an effort to increase efficiency and output productivity in economic activities (abeltina, 2007). efficiency and increased productivity can be achieved through various innovations and research. companies always consider minimum costs and optimal revenue (mankiw, quah, & wilson, 2014; amaliawaiati & murni, 2019). joseph schumpeter in dmitriev, drigo, kalinicheva, shadoba, ozherelieva, & matyushkina (2016) formulates "creative destruction," which sees innovations that create new versions in production and aggregate output with a formula approach, namely as follows: 𝑌 = 𝐿1−𝛼 ∫ 𝐴(𝑖)1−±𝑥(𝑖)±𝑑𝑖 1 0 (3) where l is the labor cost, x (i) is the ith input financing, and a is the characteristic parameter of the resource used. the relationship with the potential impact of innovation is when sector i consists of innovations in a (i) which can be higher than before on the fixed factor𝛾 > 1 (dmitriev, drigo, kalinicheva, shadoba, ozherelieva, & matyushkina, 2016). if it is assumed that the probability of innovation in sector i occurs for the short term at time dt, which is the same as µ ∗ 𝑑𝑡. so that the parameters are: 𝑑𝐴(𝑖) 𝐴(𝑖) ∗ 1 𝑑𝑡 = { (𝑦 − 1) ∗ 1 𝑑𝑡 𝑤𝑖𝑡ℎ 𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 ∝∗ 𝑑𝑡 0 𝑤𝑖𝑡ℎ 𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 1−∝∗ 𝑑𝑡 (4 ) according to equation (4), to estimate growth in a (i) is as follows: 𝐸(𝑔) = µ(𝛾 − 1) (5) the probability of innovation in each sector will be proportional to the performance of the research and development costs incurred, namely: µ µ = λr/a (6) where r is the total amount of research and development costs, with this assumption, there is theoretical support that economic growth can be supported by innovation and human resources through capital modeling as a provision for research and development of innovation and utilization of human resources. jurnal akuntansi, manajemen dan ekonomi , vol.24, no. 4, 2022, pp. 1-20 research methods 3.1 type of data this research uses a hybrid approach, combining proportionally quantitative and qualitative methods so that a more comprehensive approach is found in factfinding and empirical evidence from the case studies used (sugiyono, 2013). data was sourced from the central bureau of statistics of the republic of indonesia, world development indicators (wdi), and the international country risk guide (icrg). the data used in this study are data on indonesia's economic growth (gross domestic product according to constant prices) for 2005-2018, the ict imports sector in% of total goods imports, ict exports in% of real goods exports, the number of scientific journals indexed by scopus indonesia in 20052018 in publication units, scientific journals indexed by google scholar for 2005-2018 in publication units, the predicate for indonesian icrg institution for 2005-2018, indonesian human development index for 2005-2018 and population growth rate for 2005-2018. the data comes from the central bureau of statistics, sinta (science and technology index), ministry of research and technology / national research and innovation agency, and world development indicators. in table 1, data is available in descriptive statistics and table 2 shows the correlation number between the data used. research using the autoregressive distributed lag (ardl) method and the error correction model has long been used simultaneously in economic research. ardl is often used as a research analysis tool based on short-run and long-run dynamic coefficient interaction developed by pesar et al. (2001), while ecm is often used as a research analysis tool based on the long-run dynamic coefficient. the use of these two methods is seemingly multipurpose to analyze the phenomenon of economic research. fauzel uses examples from a multitude of research (2017) and baig, khan, gilal, & qayyum (2018) who analyze macroeconomic variables, economic growth on environmental issues with ardl bound, and cointegration tests. ardl and ecm can be used in inflation analysis as in pahlavani & mohammad (2009), the determination of interest rates by bhasin & nisa (2019), and research on financial reform and credit growth by adeleye, osabuohien, & bowale (2018). in addition, research on economic growth, macroeconomics, and its impact using the ardl and ecm approaches was used by mohapatra, giri, & sehrawat (2016) and iheanacho (2017). this proves that the use of both proportional and structured methods can be used in analyzing the phenomenon of economic research. the following is a research framework that uses this study's ardl and ecm approaches. figure 4. research framework 1, model a: innovation (total patent) with ict import source: author's documents figure 5. research framework 2, model b: innovation (total patent) with ict export source: author's documents jurnal akuntansi, manajemen dan ekonomi , vol.24, no. 4, 2022, pp. 1-20 figure 6. research framework 3, model c: innovation (total grants) with ict import source: author's documents figure 7. research framework 4, model d: innovation (total grants) with ict export source: author's documents where (y) is the dependent variable and (x) is the independent variable. this study focuses on finding the impact of innovation and technology trade on economic growth, while other variables outside technology innovation and trade are supporting variables. in the research framework used for the ardl approach in finding the short-run and long-run dynamic coefficient, the variables of indonesia's gdp (y), innovation (x1), technology trade (x2), institutions (x3) and population (x4) were used. whereas for the ecm approach in finding the long-run dynamic coefficient, the variables of indonesia's gdp (y), innovation (x1), technology trade (x2), institutions (x3), population (x4) were used, in addition to analyzed in the long run we add research articles variable (x5) including total research article publish which indexing by google scholar and scopus. table 1. descriptive statistics mean median std dev. min max indonesia's gdp 5.508571 5.53 5.53 4.63 6.35 total patent * 6755.5 5962 5962 4304 9754 total grant ** 1278021 1379610 1552870 773090 252726.7 hdi 69.54643 69,83500 1.636542 66.53 71.76 ict imports 7.025555 7,518669 1.776976 3,499214 9.061360 ict exports 4,494176 3.956987 1.470317 2.881949 8.106271 institution 3.334416 3,342803 3,342803 3.018939 3.636364 population growth 0.013033 0.013354 0.013354 0.011402 0.013611 jurnal akuntansi, manajemen dan ekonomi , vol.24, no. 4, 2022, pp. 1-20 table 2. correlation gdp patent grant hdi ict-i ict-e ins pg gdp 1 patent * -0.552 1 grant ** 0.142 0.007 1 hdi -0.521 0.120 -0.135 1 ict-i -0.241 0.387 0.645 0.020 1 ict-e 0.266 -0,839 -0,368 0.078 -0,592 1 institution -0.448 0.502 0.131 -0.236 0.098 -0.363 1 pg 0.547 -0,806 0.284 -0.511 -0.263 0.558 -0.100 1 information: * = patents including residents and non-residents, ** = grants including technical cooperation grants, ict-i = ict imports, ict-e = ict exports, hdi = human development index, ins = institution, pg = population growth. 3.2 model and data processing in finding the impact of innovation and technology on economic growth, mankiw, romer, and well (1992), knight, loayza, and villaneura (1993), law and azman-saini (2013) and law, sarmidi, and goh (2020) use the function formula. cobb-douglas production is as follows: 𝑌𝑡 = 𝐾𝑡 𝛼 𝐻𝑡 𝛽 (𝑃𝑡 𝐿𝑡 ) 1−𝛼−𝛽 (7) whereas yt is gdp per capita, k is physical capital stock, h is human development, and l is labor. p is the labor-augmenting factor converted into technological progress (innovation), and research performance (institutional quality) in the contribution of research and economic studies and t is time (law, sarmidi, & goh, 2020). it is assumed that this indicates a diminishing return in capital flows 𝛼 + 𝛽 < 1 (law, sarmidi, & goh, 2020). this model suggests that additional labor can be replaced through a capital increase. suppose we assume that labor is the rate of population growth, and capital is the purchase of technology. in that case, the per capita gdp estimation model is a function of innovation and the use of human resources. the causal relationship between innovation and human resources will be in two parts: encouraging or not encouraging economic growth. 3.3 autoregressive distributed lagged (ardl) a time-series data estimation models often give rise to regression models that include the current independent variable (present) and past independent variables (lagged, past, or according to time of 𝑡 − 1, 𝑡 − 2, … , 𝑡 − 𝑠). this model is called a distributed lag model because of the influence of one independent variable (x) on the dependent variable (y). spread over several times (aqibah, suciptawati, & sumarjaya, 2020). estimates that cause this lag can use autoregressive distributed lagged (ardl), which is to find short and long-term forecasts using different stationary data applications, and there is cointegration between variables 𝑡 − 1, 𝑡 − 2, … , 𝑡 − 𝑠) (widarjono, 2018). if the model represents two or more independent variables (with one previous year), the formulas described by gujarati (2006) in aqibah, suciptawati, & sumarjaya (2020) and rangkuti (2007) are as follows: 𝑌𝑡 = 𝛽1 + 𝛽2𝛽 𝑋𝑡 + 𝛽3𝑍𝑡 + 𝛽4𝑌𝑡−1 + 𝑢𝑡 (8) where 𝑌𝑡 is the dependent variable in the tobservation; 𝑋𝑡 𝑍𝑡, is an independent variable; 𝑌𝑡−1 is the dependent variable in the t-1 observation, 𝛽1, 𝛽2, 𝛽3 is the coefficient of the variable, and 𝑢𝑡 is the error term. in ardl, the dependent economic form of variable y (dependent variable) is often carried out on other variables x (independent variable), where y usually responds to x with a specific deadline (ghozali, 2014). in pesar (2001) and law, sarmidi and goh (2020) with the lag length (p, p, p, p, p,) which are as follows: jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 4, 2022, pp. 1-20 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to: fatimahzahranasution@unsil.ac.id received: 16 oct 2022 accepted: 27 oct 2022 published: 1 dec 2022 𝑅𝐺𝐷𝑃𝐶𝑡 = 𝛽0 + ∑ 𝛽𝑖 𝑅𝐺𝐷𝑃𝐶𝑡−𝑖 + ∑ 𝛾𝑗 ∆𝐼𝑁𝑁𝑂𝑡−𝑗 𝑝 𝑗=0 𝑝 𝑖=1 + ∑ 𝛿𝑘 ∆𝐼𝑁𝑆𝑡−𝑘 + 𝑝 𝑘=0 (9) ∑ λ𝐼 ∆𝐾𝑡−𝐼 𝑝 𝐼=0 + ∑ 𝜑𝑚 ∆𝐻𝐶𝑡−𝑚 𝑝 𝑚=0 + ∑ 𝜂𝑛∆𝑃𝐺𝑡−𝑛 𝑝 𝑛=0 + 𝜃0𝑅𝐺𝐷𝑃𝐶𝑡−1 + 𝜃1𝐼𝑁𝑁𝑂𝑡−1 + 𝜃2𝐼𝑁𝑆𝑡−1 + 𝜃3𝐾𝑡−1 + 𝜃3𝐻𝐶𝑡−1 + 𝜃3𝑃𝐺𝑡−1 + 𝑒𝑡 in equation (1), law, sarmidi, and goh (2020) estimate the influence of innovation, institution, physical capital, human capital, and population growth on economic growth in malaysia. autoregressive distributed lagged (ardl) model by taking ardl (1,1,1,1,1,1) and changes in variables, the effect of the long-term coefficient is formulated as follows (law, sarmidi, & goh, 2020): 𝑅𝐺𝐷𝑃𝐶𝑡 = µ𝑖 + 𝛽𝑅𝐺𝐷𝑃𝐶𝑡−1 + 𝛿1𝐼𝑁𝑁𝑂𝑡 + 𝛿2𝐼𝑁𝑁𝑂𝑡−1 + 𝛿3𝐼𝑁𝑆𝑡 (10) +𝛿4𝐼𝑁𝑆𝑡−1 + 𝛿5𝐾𝑡 + 𝛿6𝐾𝑡−1 + 𝛿7𝐻𝐶𝑡 + 𝛿8𝐻𝐶𝑡−1 + 𝛿8𝑃𝐺𝑡 +𝛿8𝑃𝐺𝑡−1 + εt referring to the law, sarmidi, & goh (2020) model, t-1 (the previous first year) is used, which is the reference for the ardl model. in equation (10) which is simpler to estimate in this study, the equation becomes as follows (by taking ardl (1,1,1,1,1) in model a, model c and model d and ardl (1,1,1,0,1) in model b): 𝑅𝐺𝐷𝑃𝐶𝑡 = µ𝑖 + 𝛽𝑅𝐺𝐷𝑃𝐶𝑡−1 + 𝛿1𝐼𝑁𝑁𝑂𝑡 + 𝛿2𝐼𝑁𝑁𝑂𝑡−1 + 𝛿3𝐼𝐶𝑇𝑡 (11) +𝛿4𝐼𝐶𝑇𝑡−1 + 𝛿5𝐼𝑁𝑆𝑡 + 𝛿6𝐼𝑁𝑆𝑡−1 + 𝛿7𝑃𝐺𝑡 + 𝛿8𝑃𝐺𝑡−1 + εt where rgdp is indonesia's gdp, inno is total patents (in model a and model c) and total grants (in model b and model d), ict is ict imports (in model a and model c) and ict exports (in model b and model d), ins is institution and pg is population growth. in this study, a simpler ardl model was used to see the long-term impact comprehensively. based on equation (3), we use the following equation to determine the effect of long-run coefficients: 𝜑𝐼𝑁𝑁𝑂 = 𝑦1 + 𝑦2 1 − 𝛽𝑖 ; 𝜑𝐼𝐶𝑇 = 𝛿4 + 𝛿4 1 − 𝛽𝑖 ; 𝜑𝐼𝑁𝑆 = 𝜂1 + 𝜂2 1 − 𝛽𝑖 ; 𝜑𝑃𝐺 = 𝜃1 + 𝜃2 1 − 𝛽𝑖 (12) 3.4 error correction model (ecm) an error correction model (ecm) is used to find a long-term impact, which corrects short-term imbalances toward long-term equilibrium. based on the equation law, sarmidi, and goh (2020), the ecm equation used is as follows: ∆𝑅𝐺𝐷𝑃𝐶𝑡 = 𝛽0 + ∑ 𝛽1∆𝑅𝐺𝐷𝑃𝐶𝑡−𝑖 𝑝 𝑖=1 + ∑ 𝛾1∆𝐼𝑁𝑁𝑂𝑡−𝑗 𝑞 𝑗=0 + ∑ 𝛿1∆𝐼𝐶𝑇𝑡−𝑘 𝑟 𝑘=0 + (13) ∑ 𝜂𝑚∆𝐻𝐷𝐼𝑡−𝑚 𝑠 𝑚=0 + ∑ 𝜃𝑛∆𝐼𝑁𝑆𝑡−𝑛 𝑣 𝑛=0 + ∑ 𝜏1∆𝑃𝐺𝑡−0 𝑤 𝑜=1 + φ𝑍𝑡−1 + 𝑒𝑡 mailto:fatimahzahranasution@unsil.ac.id jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 4, 2022, pp. 1-20 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to: fatimahzahranasution@unsil.ac.id received: 16 oct 2022 accepted: 27 oct 2022 published: 1 dec 2022 in equation (13), the variables inscopus and ingooglescholar are added so that the model is simplified by adding the test variables to equation (14). the ecm model requires a stationary test and the results after performing a stationary test found all stationary variables at the 2nd difference. the ecm model is used because it is a dynamic model that can correct short-term imbalances towards long-term equilibrium (silasa, 2016). on the other hand, this model can overcome the slope regression that often occurs in time series data regression analysis (silasa, 2016). in this study the formula is simplified by using the following model: ∆𝑌 − 𝑡 = 𝛼 + 𝛽1∆𝑋1 + 𝛽2∆𝑋2 + 𝛽3∆𝑋3 + 𝛽4∆𝑋4 + 𝛽5∆𝑋5 + 𝛽6∆𝑋6 (14) +λet − 1 + εt where: ∆𝑌 − 𝑡 = ln (y) form ∆𝑋1 = form ln (𝑋1) ∆𝑋2 = form ln (𝑋2) ∆𝑋3 = form ln (𝑋3) ∆𝑋4 = form ln (𝑋4) ∆𝑋5 = form ln (𝑋5) ∆𝑋6 = form ln (𝑋6) 𝛼 = constant 𝛽1, 𝛽2, 𝛽3, 𝛽4, 𝛽5, 𝛽6 = coefficients for each variable λ = coefficient et − 1 et − 1 = confounding variable = error term where ln (y) is indonesia's gdp, ln (𝑋1) is innovation, ln (𝑋2) is the number of scopusindexed journals, ln (𝑋3) is the number of journals indexed by google scholar, ln (𝑋4) is the human development index, ln (𝑋5) is the institution, and ln (𝑋6) is population growth. the classical assumption test must be fulfilled in econometric estimation using ordinary least squares (ols). this classical assumption test aims to produce parameter estimates that are blue (best linear unbiased estimator) or have unbiased, consistent, and efficient characteristics. the classical assumption test used is the normality test, heteroscedasticity test, autocorrelation test, and multicollinearity test. result and discussion 4.1. estimates autoregressive distributed lagged (ardl) in the ardl model, a stationarity test is required. this study used augmented dickeyfuller (adf) and philip perron (pp). it was found that the test variable was stationary in the 2nd difference. the adp and pp unit root test results are as follows: table 3. adf and pp unit root test (individual) variable level 2nd difference adf pp adf pp indonesia's gdp -2,353 (0.17) -2.313 (0.18) -4.474 (0.01) -11.449 (0.00) total patent -0.074 (0.93) 0.016 (0.94) -4.310 (0.01) -9.857 (0.00) total grant -4,762 (0.00) -2.417 (0.15) -3.951 (0.02) -7.854 (0.00) institution -1.969 (0.29) -9.913 (0.00) -7.690 (0.00) -8.219 (0.00) ict imports -12.52 (0.00) -3,026 (0.06) -3,955 (0.01) -4,983 (0.00) ict exports -3.131 (0.04) -3.335 (0.03) -6.883 (0.00) -7.773 (0.00) hdi -1.635 (0.43) -1.635 (0.43) -5.172 (0.00) -10.302 (0.00) scopus 3,251 (1.00) 3,292 (1.00) -5.386 (0.00) -5.564 (0.00) google scholar 2,812 (0.99) 3,246 (1.00) -4,526 (0.00) 0.913 (0.99) population growth 3,791 (1.00) 1,687 (0.99) -3.575 (0.03) -1.293 (0.59) information: level of confidence 5% = 0.05 mailto:fatimahzahranasution@unsil.ac.id jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 4, 2022, pp. 1-20 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to: fatimahzahranasution@unsil.ac.id received: 16 oct 2022 accepted: 27 oct 2022 published: 1 dec 2022 in estimating the effect of innovation on economic growth, four models are formed as a comparison. model a and model b uses total patents as the innovation variable, while models c and d use total grants as the innovation variable. model a and model c use the ict imports variable, and model b and d use the ict exports variable. table 4. linear ardl estimation results and diagnostic checks variable innovation = total patent innovation = total grants model a model b model c model d panel a: coefficient estimates of linear ardl selected model (1,1,1,1,1) (1,1,1,0,1) (1,1,1,1,1) (1,1,1,1,1) constant -6.05 (0.10) 5.94 (0.31) -56.1 (0.32) 24.86 (0.04) ln indonesia's gdp ln innovationt 0.32 (0.02) -0.60 (0.18) 0.68 (0.27) -0.22 (0.17) ln institution -0.26 (0.48) 0.84 (0.44) 0.72 (0.64) -2.39 (0.04) ln ict importst 0.01 (0.70) -1.25 (0.31) ln ict exportst -0.73 (0.09) 0.53 (0.15) ln population growtht 21.12 (0.00) -2.13 (0.25) 17.32 (0.13) 10.07 (0.01) indonesia's gdp-1 -0.73 (0.02) 0.21 (0.64) -0.08 (0.81) -0.79 (0.05) innovationt-1 0.66 (0.02) -1.27 (0.06) 1.11 (0.36) -0.38 (0.01) institutiont-1 0.68 (0.06) 2.61 (0.06) 2.72 (0.04) 3.39 (0.03) ict importst-1 -0.44 (0.00) -0.28 (0.33) ict exportst-1 -0.37 (0.21) -0.81 (0.07) population growtht-1 -21.3 (0.00) -24.6 (0.18) -6.88 (0.05) panel b: diagnostic results f-statistic 83.01555 6.427767 4.926326 14.46589 prob (f-statistic) 0.001946 0.044870 0.108249 0.025018 r2 0.996001 0.927827 0.936625 0.977476 adjusted r2 0.984003 0.783480 0.746498 0.909905 lm (2) 0.2662 0.2032 0.3276 0.1148 reset test 0.2986 0.5037 0.2784 0.7555 f-bounds test 104.5525 8.562584 8.830209 23,18599 cusum (cusum2) s (s) s (s) s (s) s (s) table 4 describes the empirical results of the ardl estimation and diagnostic checks. by using the ordinary least square (ols) estimation, the estimation in table 4 has met the classic assumption requirements, including the normality test (jarque-bera test) and linearity test (ramsey reset test). in addition, the model stability test has been carried out using the cusum of square test, which shows the four models are stable. the results show that in model a, where the number of patents and technology explains the innovation variable by ict imports, innovation affects economic growth, but technology does not affect economic growth. in model b, the innovation variable is defined by the number of patents and technology by ict exports, and that innovation does not affect economic growth. in contrast, technology affect economic growth. furthermore, in model c, where the innovation variable is explained by the total cost of grants and technology by ict imports, it is found that innovation has no effect on economic growth and technology has no effect on economic growth. the last model is model d, where the innovation variable is explained by the number of grant costs and technology by ict exports, it is found that innovation has no effect on economic growth and technology has no effect on economic growth. table 5. impact of the mix of innovation and technology on short-term economic growth (ardl model) variable innovation = total patent application innovation = total grants model a model b model c model d ln innovation take effect no effect no effect no effect ln technology no effect take effect no effect no effect mailto:fatimahzahranasution@unsil.ac.id jurnal akuntansi, manajemen dan ekonomi , vol.24, no. 4, 2022, pp. 1-20 table 6. impact of the mix of innovation and technology on long-term economic growth (ardl model) variable innovation = total patent application innovation = total grants model a model b model c model d ln innovation 0.56 (0.00) -2.39 (0.26) 1.67 (0.36) -0.34 (0.02) ln ict imports -0.24 (0.00) -1.42 (0.34) ln ict exports -1.41 (0.23) -0.15 (0.04) ln institution 0.24 (0.46) 4.41 (0.36) 3.18 (0.30) 0.55 (0.34) ln population growth -0.12 (0.72) -2.72 (0.46) -6.74 (0.37) 1.78 (0.02) by doing long-term estimation, table 6 shows that the relationship between economic growth and innovation (patents) is significantly positive (model a) is not significantly negative (model b). in contrast, the relationship between economic growth and innovation (grants) is not significantly positive (model c) and negative significance (model d). meanwhile, the other test variables supporting the model, namely institution, are not significant in all models and population growth is only significant in model d. in the results of other supporting variables, it is found that the institution variable does not affect economic growth. the population growth variable only has an effect at the time of innovation in grant financing and the significant effect of ict exports on economic growth. this indicates that the bureaucracy does not influence promoting economic growth, and population growth will encourage economic growth if there is an increase in exports and a decrease in grants simultaneously. figure 8. cusum line on the ardl model stability test -0.4 0.0 0.4 0.8 1.2 1.6 2016 2017 2018 cusum of squares 5% significance -0.4 0.0 0.4 0.8 1.2 1.6 2015 2016 2017 2018 cusum of squares 5% significance -0.4 0.0 0.4 0.8 1.2 1.6 2016 2017 2018 cusum of squares 5% significance -0.4 0.0 0.4 0.8 1.2 1.6 2016 2017 2018 cusum of squares 5% significance source: author processing results jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 4, 2022, pp. 1-20 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to: fatimahzahranasution@unsil.ac.id received: 16 oct 2022 accepted: 27 oct 2022 published: 1 dec 2022 4.1. estimated error correction model (ecm) in time series data analysis, especially using an error correction model, it is necessary to test the stationarity of the data, which can be measured through the level, 1st difference and 2nd difference. this is useful for forming stationary data. table 6 shows the results of the stationarity test of the data with the seven variables used in the study. the result was that in the 2nd difference. the results of the cointegration test using the augmented dickey-fuller test are as follows: table 7. augmented dickey-fuller cointegration test results t-statistic prob. * augmented dickey-fuller test statistic -6.480109 0.0004 test critical values 1% -4.200056 5% -3.175352 10% -2.728985 information: level of confidence 95% = 0.05 there is a long-term relationship between test variables that can be used to correct short-term imbalances. in this study, we used the augmented dickey-fuller cointegration test and the residual approach with long-term residuals to meet the stationary test. in table 7, the results show that all the variables used have passed the cointegration test and can be used in further estimation. after going through the stationary test and cointegration test, it can be estimated through ecm multiple linear regression as follows: table 8. estimation result of error correction model (ecm) variable innovation = total patent innovation = total grants model a model b model c model d panel a: coefficient estimates of error correction model constant 0.215 (0.12) 0.070 (0.41) 0.059 (0.64) -0.049 (0.68) ln innovationt -0.341 (0.42) -0.492 (0.21) 0.172 (0.35) 0.160 (0.35) ln scopust -9.018 (0.04) -6.774 (0.02) -4.658 (0.17) -2.659 (0.35) ln google scholar 0.145 (0.70) 0.324 (0.35) 0.231 (0.56) 0.319 (0.40) ln hdi -5.463 (0.00) -5.415 (0.00) -4.833 (0.00) -4.553 (0.00) ln ict importst -0.241 (0.17) -0.182 (0.21) ln ict exportst -0.453 (0.06) -0.298 (0.13) ln institution -2.114 (0.03) -1.011 (0.07) -1.575 (0.04) -0.750 (0.20) ln population growtht -3.330 (0.09) -4.217 (0.03) -2.592 (0.09) -2,944 (0.05) panel b: diagnostic results f-statistic 5.480621 8.012963 5,798219 6.800548 prob (f-statistic) 0.039618 0.017922 0.035342 0.025407 r2 0.884698 0.918155 0.890321 0.904950 adjusted r2 0.723275 0.803571 0.737670 0.771880 description: has met the classical assumption test table 8 shows that the long-term estimation results show that innovation in models a, b, c, and d is insignificant to economic growth. besides, in the short term, technology is not significant in models a, c, and d, but only in model b in the form of ict exports, which influences economic growth. in models a, b, c, and d, all variables are significant in economic growth. the results showed that the increase in total patents through increasing quality journals indexed by scopus tends to be able to drive economic growth in the long term. in addition, it is found that in the long term, grants have not been able to contribute to driving economic growth. conclusion innovation is one way to increase the output capacity of each sector. innovation can create new technologies and methods that can be implemented directly for the effectiveness and efficiency of production. with the mailto:fatimahzahranasution@unsil.ac.id jurnal akuntansi, manajemen dan ekonomi , vol.24, no. 4, 2022, pp. 1-20 relationship between innovation and productivity, in theory, there is hope for innovation to boost the quality of economic growth. this study examines the impact of innovation on the performance of economic growth in indonesia from 2005-2018. using time series data through short-term (autoregressive distributed lag) and longterm (error correction model) analysis, a pattern has been found with unique characteristics of the effect of innovation and technology on economic growth in indonesia. current research findings have implications for scientists, researchers, other economic sector managers who apply ict in their activity, and government/policymakers of high education institutions. notably scientists/researchers and economic sector managers. scientists/researchers may need to know if they want to start a research project with grants and if the output is patented. this must contribute to economic growth by creating relevant research and giving innovation to enter the market incrementally. it is also to develop straightforward economic offerings by achieving and sustaining competitive advantage in the economic sector; they need to use internal and external ideas to promote their innovative activities. on the other hand, economic sector managers (managers in any sector of economic growth parameter such as the company in agriculture, mining, etc.) need to open their borders and place more confidence in ict to support their productivity. using innovation could discover and search for new collaborations and business connections, contributing to economic growth. therefore, economic sector managers should take the ict and innovation result as critical for the innovation that can be radical, transformative, proportionate, and disruptive to existing ways of the business cycle thing to do. the position of government/policymakers is to be a supporting system that supports the scientist, researchers, and other economic sector managers to implement and grow productivity by themselves with legal and other interventions in the government sector. the number of patents can affect economic growth because they get a large portion of the contribution to the implementation of these sectors. patents are the results of research (either funded by grants or independently financed) that provide increased productivity, efficiency, and performance effectiveness. this causes the number of patents to boost indonesia's economic growth. meanwhile, the amount of grant financing cannot stimulate economic growth. this assumption is valid given that grants are costs incurred by researchers to find valuable discoveries. however, not all grant funding will provide satisfactory research results and encourage sectoral performance. in contrast, research on the influence pattern of economic growth in other countries shows the effect of good innovation. in the ardl model, in the short-term analysis, it is found that innovation does not affect economic growth. this is due to the characteristics in indonesia that are not quick to respond to research results, as evidenced by the highest number of scopus and google scholarindexed journals in southeast asia. still, at the same time, indonesia's economic growth is stagnant at 5.0% -5.3%. in addition, in the short-term technology, only exports have significance for economic growth with the innovation variable assumed by grants. this indicates that the need for grants that encourage technology exports will be able to boost economic growth. then export-oriented innovation will be able to promote short-term economic growth in indonesia. in the ecm model, in the long-term analysis, it is found that innovation affects economic growth only if it is supported by technology transfer from abroad. on the other hand, innovation in grants will also be a driver of economic growth in the event of a surge in technology exports abroad. this indicates the characteristics of innovation and technology in indonesia, namely that domestic innovation will increase in line with the increasing export demand for technology. in addition, the existence of technology transfer from abroad will respond with increased research and the number of domestic patents in the long term. in the long-term model of the ecm, it is found that in the long-term analysis, the increase in total patents through the improvement of quality journals indexed by scopus tends to be able to drive economic growth in the long term. in addition, it was found that grants had not been able to contribute to stimulating economic growth. in the long-term ardl and long-term ecm models, it is found that technology trade has a phenomenon where technology exports and imports have different characteristics in driving economic growth. on the one hand, exports driven by grants can encourage economic growth, and imports are used as an increase in rights research. patents are also able to promote economic growth. besides the phenomena and jurnal akuntansi, manajemen dan ekonomi , vol.24, no. 4, 2022, pp. 1-20 scenarios in both cases, technology trade has not played enough role in driving economic growth in developing countries. the current research, its suggestions, its findings, and empirical evidence tend by a literature review to be of great importance in the literature and practice due to their theoretical and practical implications. the current study and its findings will contribute to the literature and research by overcoming the existing gap in the literature with mediating roles of interaction between innovation to economic growth and technology trade to economic growth with an economic model. the proposed theoretical model is tested using an econometric technique focusing on an autoregressive distributed lag and error correction model. the empirical evidence supports the proposed theory explaining the mechanism of improving economic growth with implemented of innovation and the adoption of ict technology with a trading approach. the model presented in this study will help policymakers, researchers, and practitioners understand innovation and technology trade's effect on economic growth performance. furthermore, these current findings will enhance the literature about the economy of innovation, technology trade, and economic growth. practically, the study's results will help scientists, researchers, and other economic sector managers who apply ict to their activity. the government as policymakers can use this study as a consideration in making policy regarding high education institutions; to understand how they can improve economic growth by implementing innovation and adopting technology trade in the economy. developing and executing an effective business cycle and policies will be another requirement to support economic growth performance in future research. references abeltina, a. 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(2013) joseph a. schumpeter and innovation. in: carayannis e.g. (eds) encyclopedia of creativity, invention, innovation and entrepreneurship. springer, new york, ny. https://doi.org/10.1007/978-1-46143858-8_476 correspondence to : hibatun.naeem@widyatama.ac.id received: feb, 25, 2020 revised: april, 2, 2020 accepted: sep, 17, 2020 jurnal akuntansi, manajemen dan ekonomi vol.22, no. 3, pp. 8 15 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction along with the times, demands from stakeholders on environmental and social issues make companies to start to pay attention to long-term development. now, the company no longer rests on the single bottom line concept but has switched to the concept introduced by john elkington (1998), the triple bottom line which focuses on 3p, namely profit, people, and planet. this concept tells that the company does not only focus on profit, but the company must also play a role and participate in the welfare of the surrounding community (people) as well as actively contribute to the preservation of the environment (planet). (almilia, 2008). awareness to pay attention to environmental and social aspects began in 1983 when the united nations formed the brundtland committee, where one of the recommendations was sustainable development to be carried out consistently. sustainable development aims to meet the needs of the current generation without disrupting the ability of future generations to fulfil their lives by paying attention to environmental and social aspects. (luthfia, 2012). weber, koellner, habegger, h, & ohnemus (2008) said that companies that disclose sustainability reports want to show the company's commitment towards social and environmental issues to stakeholders as well as show transparency and get feedback on company performance in responding to information demands from stakeholders. disclosure of sustainability reports can increase company value and financial performance because through this report, stakeholders can get a clearer and more open depiction of all sustainable activities that have been carried out by the company (oktaviani, 2018). performance is the achievement of what is planned, both by individuals and organizations. if the achievement is as planned, the performance will be carried out well. if the achievement exceeds what is planned, it can be said that the performance is good. if the achievement is not following what was planned or less than what was planned, then the performance is poor. financial performance is a performance measure that uses financial indicators (silviana, 2014). sra jury team chairman, sarwono kusumaatmadja, said "although the sustainability report is still voluntary, up to the end of 2016 there were 120 companies that have published sustainable reports in indonesia. hopefully, more and more companies are aware that sustainability reports are very important in building and developing business with stakeholders". in this year's award, perusahaan gas negara the effect of financial performance and company size on the disclosure of sustainability report hibatun naeem1, ignatius oki dewa brata2 1,2,3,4department of accounting, faculty of economics, universitas prima indonesia, indonesia abstract trends regarding sustainability reporting in indonesia are experiencing positive developments. it can be concluded that the company already has an awareness that the company's survival depends on the company's relationship with the environment. this follows the legitimacy theory which states that the company has a contract with the community to carry out its activities based on the values of justice and how the company responds to various interest groups to legitimizing company actions. in this research, researchers aspire to analyze which was more effectively trigger an effect on the development of an upward trend in sustainability reporting. from several samples taken, researchers obtained data that represent financial performance and company size. after being processed using logistic regression, it was found that the size of the company had the most effect in the disclosure of sustainability report. keywords sustainability reporting; financial performance; company size mailto:hibatun.naeem@widyatama.ac.id jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 8 15 (pgn) tbk managed to become the overall champion (media indonesia, 2016). the trend regarding sustainability reporting in indonesia is experiencing positive developments. from only two companies that published sustainability reports in 2005, to many companies that have published sustainability reports in 2016. according to the national center for sustainability reporting (ncsr), until the end of 2016, there were a total of 120 companies that have published sustainability reports in indonesia, both public and private companies (media indonesia, 2016). however, this number is still very small when compared to the number of companies in indonesia, as stated in the following online news site, "the central statistics agency (bps) has conducted the economic census 2016. from the results of the census, the number of companies in indonesia is recorded as many as 26.7 million. this figure increased compared to the results of the 2006 economic census of 22.7 million companies. as such, there are 3.98 million new companies in the last 10 years. the development of the population and the growth of modern businesses such as online businesses contribute to the increasing economic activity in indonesia (detikfinance, 2017). companies must have an awareness that the survival of the company depends on the company's relationship with the environment. this follows the legitimacy theory which states that the company has a contract with the community to carry out its activities based on the values of justice and how the company responds to various interest groups to legitimize the company's actions (ludovicus, 2006). if there is any inconsistency between the company's value system and the community's value system, the company will lose its legitimacy which will further threaten the company's survival (rima rachmawati, 2007). the practice of disclosure of social responsibility for companies in indonesia is still voluntary disclosure, it hasnt’t gotten into mandatory disclosure. even though it is still voluntary, companies increasingly realize that disclosing social activities will further describe the company's role in carrying out its social functions. so, the company can build, maintain and legitimize the company's contribution (rima rachmawati, 2007). ncsr executive director ali darwin added that the financial services authority (ojk) should emulate the singapore stock market which requires listed companies to issue sustainability reports. "mainly, companies that have many contacts with the environment and society, such as mining, plantations, and financial institutions," said ali. (media indonesia, 2016). in various developed countries in the european region such as sweden, finland, the netherlands, and germany as well as asian countries such as japan, they all have required every company, both state-owned and publicly listed companies, to make a sustainability report. not surprisingly, those countries received high scores and ratings in the environmental performance index (epi). even according to a survey from japan's value champion, it was one of the most environmentally friendly countries in 2018. this is inversely proportional to indonesia, which ranks 133th out of 180 countries in epi (news unika, 2019). at least 36 people, most of them minors, have died in mining pits former coal mines in various areas of east kalimantan since 2011. environmental activists say that currently 1,735 mining pits are left open by the company. although they are legally obliged to reclaim the former excavation after exploration, the government claims it only found about 500 mining pits in the province which will host the new capital (bbc.com, 2019). in the mining advocacy network (jatam) notes since 2011, the death toll in the mine pits is spread in samarinda (21 people), kutai kartanegara (13), west kutai (1) and north penajam paser (1). "the figures are not small. this is a gross human rights violation, even though komnas ham has not dared to declare it," said east kalimantan regional coordinator jatam, pradarma rupang (bbc.com, 2019). mining companies are an example of companies directly related to natural resources as mentioned in article 74 paragraph 1 of law number 40 of 2007 concerning limited liability companies (pt). but in reality, not all mining companies in indonesia publish disclosure on sustainability reporting. mining industry areas are the regions with the highest poverty rates. population economic geography expert abdur rofi said based on data from the central statistics agency in 2018, regions that are rich in natural resources are precisely the poorest in indonesia. these areas include papua, west jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 8 15 papua occupying the poorest regions in indonesia, which ranks first at 27.74%, followed by west papua at 23.01%. whereas the director-general of mineral and coal, bambang gatot ariyono, in the indonesian mining experts association (perhapi) forum said, "since the beginning of the year until now the mining sector's revenue has reached rp. 39 trillion. the target in the 2018 apbn is only rp 32.1 trillion. "the mineral sector is still a contributor to the state budget." (unika news, 2019). stakeholder theory the term stakeholder was first put forward by the stanford research institute (sri) and influenced by a process of achieving an organization's goals. this stakeholder theory is a theory that describes which parties an organization or company is responsible for (freeman, 1984). freeman defines stakeholders as "any group or individual who can affect or be affected by the achievement of an organization's objective", i.e. stakeholders are groups or individuals who can influence. stakeholders can control or influence the use of economic resources used for company operations. therefore, the strength of these stakeholders is determined by the size of the power possessed by stakeholders over these economic resources. in the concept of stakeholder theory, a company is not only an entity that operates for the interests of the company itself but must also provide benefits for its stakeholders such as shareholders, creditors, consumers, suppliers, governments, communities, analysts and other parties. thus, it can be said that the existence of a company or organization is greatly influenced by the support given by stakeholders to the company (ghozali & chariri, accounting theory, 2007). legitimacy theory legitimacy is a recognition of the legality of something. an organization's legitimacy can be said as a benefit or potential source for the company to survive (ghozali & chariri, 2007). according to this theory, a company operates with permission from the community, where this permit can be withdrawn if the community considers that the company does not do the things that are required to it. legitimacy is very important for the company, given the company's presence in the social environment or social community that must interact with the community in the company environment. this also relates to the survival of the company itself. legitimacy theory is very useful in analyzing organizational behaviour. they say: "because legitimacy is important to the organization, boundaries are emphasized by social norms and values, and the reaction to these limits drives the importance of analyzing behaviour organizational concerning the environment". financial performance financial performance is the result of decisions based on an assessment of the company's ability, both in terms of liquidity, activities, leverage and profitability made by parties interested in the company. financial performance is used by management as one of the guidelines for managing the resources entrusted to it. reports on financial performance are made to describe the company's financial condition in the past and are used to predict the financial future (soeslistyoningrum, 2011). according to fahmi (2010: 142), the definition of financial performance is as follows: "financial performance is an analysis conducted to see the extent to which a company has carried out by using the rules of financial implementation properly and correctly." performance appraisal of a company is different because it depends on the scope of the business it runs. company size company size is a scale or value in which companies can be classified based on total assets, sales and market capitalization. market capitalization itself is a business term that refers to the overall price of a company's stock, that is, the price a person must pay to buy an entire company. if the greater the total assets, sales and market capitalization, the greater the size of the company. these three indicators can be used to determine the size of the company because it can represent how large the size of the company is. for example, the greater the assets, the more capital is invested, the more sales, the more money turnover and the greater the market capitalization, and thus the greater the company will be known in the community (triana, 2017). sustainability report according to effendi (2009: 109), the sustainability report is: jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 8 15 leverage liquidity company size profitability sustainability report h1 h2 h3 h4 "sustainability report is a non-financial report that can be used as a reference by companies to view reporting from the social dimension, economy and environment." according to khomsiyah (2009: 24), she states that: "sustainability reporting is a report of all aspects that affects the continuity of company operations, namely financial aspects, social aspects, and environmental aspects that occur in the company." according to gri (2013), it states that: "sustainability reports is the practice of measurement, disclosure and accountability of organizational performance in achieving goals development sustainable to both internal and external stakeholders. a sustainability report is a general term that is considered synonymous with other terms to describe reports on economic, environmental and social impacts (e.g. triple bottom line, corporate accountability reports, etc.).” a sustainability report must provide a balanced and reasonable picture from the performance of sustainability in an organization, both positive and negative contributions to the environment, society and economy. sustainability reporting is a process that helps organizations set goals, measure performance and manage changes to a sustainable global economy. sustainability reporting is one that combines profitability long-term and social responsibility and stewardship environmental. research hypothesis figure 1. model test based on the concept, previous research and the framework of the framework above, the hypotheses in this study are: h1 : liquidity affects the disclosure of sustainability reports. h2 : leverage affects the disclosure of sustainability reports. h3 : profitability affects the disclosure of sustainability reports. h4 : firm size affects the disclosure of sustainability reports. methods the research method is a technique or way to find, obtain, collect or record data, both in the form of primary data and secondary data used to compile a scientific work and then analyzing the factors related to the main issues so that there will be a truth data obtained. according to sugiyono (2014: 5), the research method is a scientific way to obtain data with specific purposes and uses. the methodology used in this research is explanatory research. explanatory research is research that highlights the causal relationships between research variables and tests the hypotheses that have been formulated previously. the purpose of the causal study is to be able to state that variable x causes variable y. the purpose of the study is to determine the effect of liquidity, leverage, profitability and size company on the disclosure of sustainability reports. research variables variables are anything that can distinguish or change a value. value can be different at the same time with different objects and people or anything for the same object or person (sekaran and bougie, 2017: 77). independent variable liquidity liquidity ratio is the ratio used to measure a company's ability to pay its short-term debts. in this study, the liquidity ratio that will be used is the current ratio. cr = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 leverage leverage ratios are ratios used to measure the extent to which a company's assets are financed by debt. in this study, the leverage ratio that will be used is the debt to equity ratio. der = 𝐷𝑒𝑏𝑡 𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 8 15 profitability profitability is used to measure how much profit the company makes. in this study, the profitability ratio that will be used is return on assets. roa = 𝑁𝑒𝑡𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 company size company size is a value that indicates the size of the company. various proxies can be used to represent company size, namely the number of employees, total assets, log size, the market value of shares, and others. in this study, company size is measured by natural logarithms (ln) of the average total assets of the company. firm size = 𝐿𝑜𝑔 𝑜𝑓 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 dependent variable according to uma sekaran and roger bougie (2017: 77), the dependent variable is the variable that is the main concern of researchers. meanwhile, according to sugiyono (2017: 39), the dependent variable is the variable that is affected or which is due, because of the independent variables. the dependent variable in this study is the disclosure of sustainability reports. this variable uses a dummy. a dummy variable is a variable used to make data categories that are qualitative (nominal) (santoso, 2010: 185). the measurement is done by giving a value of 1 for companies that do sustainability reports and 0 for companies that do not disclose sustainability reports. logistic regression analysis test logistic regression is used to predict the magnitude of the dependent variable in the form of a variable binary (nominal type data with two criteria) using free variable data of known magnitude (santoso, 2010: 174). logistic regression was chosen because this study has variables dependent which are binary/categorical variables and variables independent that are metric. this test is used to determine the effect of variables of company characteristics on the disclosure of a company's sustainability report. the dependent variable used in the model is a nominal variable, the two criteria determined are whether the company discloses the sustainability report or does not disclose the sustainability report. while the independent variables used in this study are the level of liquidity, leverage, profitability and the size of the company obtained. the model proposed in this study is based on the formulation of problems and theoretical frameworks that have existed before, namely: y = 𝛼 + 𝛽1𝑋1 + 𝛽2𝑋2 + 𝛽3𝑥3 + 𝛽4𝑥4 information: y =variables binary, the value determined 1 = the company made a sustainability report disclosure 0 = the company did not disclose the sustainability report α = constant β = coefficient x1 = liquidity x2 = leverage x3 = profitability x4 = company size results and discussion logistic regression test the description in table 1 is a prediction of a logistic regression model with observational data, it can be shown by a classification table between the predictions of the logistic regression model and the results of observations. in the table above, the percentage of classification truths for companies that do not disclose sustainability reports is 82.2% where 37 observations can be predicted correctly and 8 observations have errors. the percentage of truth for companies that make disclosures in sustainability report is 75.6% where 34 observations can be predicted correctly and 11 observations that have errors. overall, classification results for logistic regression showed the percentage of classification accuracy was 78.9%. hypothesis testing the logistic regression model can be formed by looking at the estimated value of the parameters in variables in the equation in the logistic regression model table that is formed based on the estimated value of the parameters in the variables in the equation, as follows jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 8 15 sr = -63,214 + 1,582 cr 0,254 der 3,737 roa + 2,119 ta conlusion drawn on hypothesis testing are based on a significance level of 0.05. if the level of significance is greater than 0.05, it can be said that ho is accepted, which means that the variable does not affect the disclosure sustainability report. if the significance value is less than 0.05, it means that the variable influences the disclosure of sustainability report. furthermore, positive or negative effects are indicated by the regression coefficient. if the regression coefficient is positive then it shows a positive effect and if the coefficient is negative then it shows a negative effect. hypothesis testing results are as follows: first hypothesis testing (h1) table 2. effects of liquidity on sustainability report significance benchmark significance calculate value β conclusion 0.05 0.011 1.582 ho rejected source: data processed 2019 the first hypothesis states that liquidity has a positive effect on the disclosure of sustainability reports. the test results shown in the table above show the liquidity variable which is proxied by current ratio and has a positive regression coefficient of 1.582 with a level significance of 0.011 which is smaller than α (5%). based on this it can be concluded that ho is rejected which means that the liquidity variable influences the disclosure of sustainability reports. the effect of the variable liquidity moves in the same direction as the disclosure sustainability report, if liquidity is greater then the level of disclosure on sustainability report also higher, and if liquidity is lower then the level of disclosure on sustainability report will also be lower. second hypothesis testing (h2) table 3. effects of leverage on sustainability report significance benchmark significance calculate value β conclusion 0.05 0.160 -0.254 ho accepted source: data processed 2019 the second hypothesis states that leverage has a negative effect on disclosure of sustainability reports. the test results shown in table 5.19 show the variable leverage proxied by debt to equity ratio has a negative regression coefficient of 0.254 with a significance level of 0.160 which is greater than α (5%). based on this, it can be concluded that ho is accepted which means the variable leverage does not affect the disclosure sustainability report. third hypothesis testing (h3) table 4. profitability influence on sustainability report significance benchmark significance calculate value β conclusion 0.05 0.158 -3.737 ho accepted source: data processed 2019 the third hypothesis states that profitability has a negative effect on the disclosure sustainability report. the test results shown in the table above show the profitability variable which is proxied by return on assets has a negative regression table 1. logistic regression test classification table observed predicted company category percentag e correct not publish sustainability report publish sustainability report step 1 company category not publish sustainability report 37 8 82.2 publish sustainability report 11 34 75.6 overall percentage 78.9 a. the cut value is .500 source: data processed 2019 jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 8 15 coefficient of 3.737 with a significance level of 0.158 which is greater than α (5%). based on this it can be concluded that ho is accepted which means profitability variable does not affect the disclosure sustainability report. fourth hypothesis testing (h4) table 5. effect of company size on sustainability report significance benchmark significance calculate value β conclusion 0.05 0,000 2,119 ho rejected source: data processed 2019 the fourth hypothesis states that company size has a positive effect on disclosure sustainability reports. the test results shown in the table above shows that the company size variable that is proxied by total assets has a positive regression coefficient of 2.119 with a level significance of 0.000 that is smaller than α (5%). based on this it can be concluded that ho is rejected, which means the company size variable influences the disclosure of sustainability reports. the effect of company size variables moves in the same direction as the disclosure sustainability report, if the size of the company gets bigger then the level of disclosure on sustainability report also higher, and if the size of the company gets lower then the level of disclosure on sustainability report will also be lower. discussion table 6. hypothesis testing results with logistic regression summary information sig. benchmark sig. calcu late value β conclusion liquidity 0.05 0.011 1.582 influential positive leverage 0.05 0.160 -0.254 no influential profitability 0.05 0.158 -3.737 no influential company size 0.05 0.000 2.119 influential positive source: data processed 2019 conclusion based on theoretical description and the analysis that has been done, the researchers conclude that liquidity has a positive effect on the disclosure of sustainability reports. leverage does not affect the sustainability report disclosure. profitability does not affect the sustainability report disclosure. company size has a positive effect on sustainability report disclosure. references almilia, l.s. (2008), faktor-faktor yang mempengaruhi pengungkapan sukarela “internet financial and sustainability reporting”. jurnal akuntansi dan auditing indonesia, vol. 12, no. 2. elkington, john. (1998). cannibals with forks: the triple bottom line in 21st century business. gabriola island, bc: new society publishers. fahmi, irham. (2010). pengantar manajemen keuangan teori dan soal jawab. bandung: alfabeta. freeman, r. edward. (1984). strategic management: a stakeholder approach. university of minnesota: pitman publishing. ghozali, imam & chariri, anis. (2007). teori akuntansi. semarang: badan penerbit universitas diponegoro. global reporting initiative. (2013). sustainability reporting guidelines. luthfia, khaula. (2012). pengaruh kinerja keuangan, ukuran perusahaan, struktur modal dan corporate governance terhadap publikasi sustainability report (studi empris terhadap perusahaan-perusahaan yang listed (go public) di bursa efek indonesia (bei) periode 2007-2010). universitas diponegoro. rachmawati, rima. (2007). tinjauan teoritis: penerapan pengungkapan tanggungjawab sosial dalam laporan tahunan. jurnal bisnis, manajemen dan ekonomi. vol. 8, no. 4 republik indonesia. (2007). undang-undang no. 40 tahun 2007 tentang perseroan terbatas. lembaga negara ri tahun 2007, nomor 40. sekretariat negara. jakarta. santoso, singgih. (2010). statistik parametrik: konsep dan aplikasi dengan spss. jakarta: pt. elex media komputindo. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 8 15 sekaran, uma & bougie, roger. (2017). metode penelitian untuk bisnis. jakarta: salemba empat. silviana & melisa. (2014). analisis kinerja keuangan pemerintah kota bandung. profita, komunikasi ilmiah akuntansi dan perpajakan, vol. 6, no. 3. soelistyoningrum, j. n. (2011). pengaruh sustainability report terhadap kinerja keuangan (studi empiris pada perusahaan yang terdaftar dalam bursa efek indonesia). universitas diponegoro. sugiyono. (2014). metode penelitian kuantitatif, kualitatif, dan kombinasi (mixed methods). bandung: alfabeta. triana, devi. (2017). pengaruh ukuran perusahaan dan profitabilitas terhadap manajemen laba. universitas widyatama. weber, o., koellner, t., habegger, d., steffensen, h. and ohnemus, p. (2008). the relation between the gri indicators and the financial performance of firms, progress in industrial ecology. an international journal, vol. 5, no. 3, pp.236–254. correspondence to : nurul.nurwulan@sampoernauniversity.ac.id received: june, 21, 2020 revised: sep, 1, 2020 accepted: sep, 10, 2020 jurnal akuntansi, manajemen dan ekonomi vol.22, no. 3, pp. 16 20 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction high productivity is one of the goals of the company to survive in the competition and to grow the business. high productivity could increase revenue and profit that could be used to develop and expand the company. an effective and efficient production system is important to increase productivity. it can be achieved by establishing an appropriate measurement (nachiappan & anantharam, 2006). overall equipment effectiveness (oee) is a quantitative measure to identify indirect and hidden productivity and quality costs, in the form of production losses. these losses are formulated as a function of the mutually exclusive factors availability, performance, and quality (huang et al. 2003, nayak, 2013). pt xyz is one of the biggest coal mining companies in east kalimantan. in a coal mining company, heavy equipment is an important factor in the productivity of coal mining overburden. good management to control heavy equipment is very crucial (kicki & dyczko, 2010; stefaniak et al., 2015). based on the historical data, the overburden target in one of the coal mining areas handled by one of the contractors did not reach the target of 21,580,000 bcm (billions cubic meter), the overburden could only reach 20,604,452 bcm. this study aimed to analyze the problem mentioned above by using oee. the oee can be used as a tool to measure and evaluate the productivity of the machine. the oee investigation can improve productivity, reduce cost, raise awareness, increase machine productivity, and lengthen equipment life span (esmaeel et al., 2018). by identifying the oee, the company could come up with solutions to increase productivity. overall equipment effectiveness (oee) is a combination of metrics or equipment performance measure. the oee can be used to help the company to figure out how to make the production process more effective and efficient. it is a metric to measure the percentage of time that follows the production plan (yazdi et al., 2018). the percentage that near to 100% represents high productivity and it follows the targets set by the company (singh & narwal, 2017). in manufacturing systems, the oee is not just limited to the evaluation of time but also arranged a structured process to identify the source of losses in productivity. thus, companies could apply the oee approach to improve the performance of machine utilization. the oee in the mining industry is different from the one in the manufacturing industry. thus, a framework to classify the losses of equipment overall equipment effectiveness in coal mining company: a case study nurul retno nurwulan1, daviq kemal fikri2 1,2,3,4department of industrial engineering, faculty of engineering and technology, sampoerna university, indonesia abstract an increase in productivity is one of the measures of development in a company. high productivity could increase revenue and profit that can be used to further develop the company. this study was conducted in pt xyz, one of the biggest coal mining companies in east kalimantan. the aim of this study was to analyze the productivity of excavators and dump trucks using overall equipment effectiveness (oee). based on the calculation, the actual availability and quality of both loading and hauling equipment exceed the targeted values. however, the actual performance is lower than the target. as for the oee values, all of the equipment have lower actual oee except hitachi ex-2500. the lowe oee values might happen because of bad weather, machine breakdown, and a long queue in the mining area. based on the analysis results, it is recommended that the company increase the availability, performance, and quality of equipment with the high deviation between actual and targeted values. keywords productivity; coal mining; oee; availability; performance; quality jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2020, pp. 16 20 related to availability, performance, and quality components (bamber et al., 2003; dindarloo et al., 2016) is required. waqas et al. (2013) proposed the oee parameters by measuring time loss. the parameters are downtime (availability), speed (performance), and quality (loss). the loss of equipment availability contributes to the production losses, either due to equipment failure, technical damage, or minor stoppage of equipment during the process. 𝐴𝐿 = 𝑁𝐴𝑇−𝐷𝑇𝐿 𝑁𝐴𝑇 × 100% (1) al = availability loss nat = net available time dtl = down time losses loss in the performance of equipment, including losses in equipment speed during operation as a result of substandard materials, road situation, operator inefficiencies, work situations, and inclined conditions is calculated as follows. 𝑃𝐿 = 𝑂𝑇−𝑆𝐿 𝑂𝑇 × 100% (2) p = performance loss ot = operating time sl = speed losses quality defects because of equipment efficiency contribute to production losses. fill factor is one of the determinants for a digging tool quality such as a shovel, which means that the material is loaded based on its capacity. 𝑄𝐿 = 𝐿𝑃𝐶 𝐹𝑃𝐶 × 100% (3) ql = quality loss lpc = loaded payload capacity fpc = full payload capacity methods direct observation was conducted in the smd mining area of pt xyz in east kalimantan from july to september 2019. this direct observation was done to get a better understanding of the workflow of overburden mining. in addition, historical data were also collected for further analysis. excavators and highway dump trucks are the two types of heavy equipment that were being analyzed using oee in this study. the oee is calculated by multiplying availability (a), performance efficiency (p), and rate of quality (q). 𝑂𝐸𝐸 = 𝐴 × 𝑃 × 𝑄 (4) where 𝐴 = 𝐿𝑜𝑎𝑑𝑖𝑛𝑔 𝑡𝑖𝑚𝑒 𝐿𝑜𝑎𝑑𝑖𝑛𝑔 𝑡𝑖𝑚𝑒−𝐷𝑜𝑤𝑛 𝑡𝑖𝑚𝑒 𝑃 = 𝑃𝑟𝑜𝑐𝑒𝑠𝑠𝑒𝑑 𝐴𝑚𝑜𝑢𝑛𝑡 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑡𝑖𝑚𝑒 𝑄 = 𝑃𝑟𝑜𝑐𝑒𝑠𝑠𝑒𝑑 𝑎𝑚𝑜𝑢𝑛𝑡−𝐷𝑒𝑓𝑒𝑐𝑡𝑠 𝑃𝑟𝑜𝑐𝑒𝑠𝑠𝑒𝑑 𝑎𝑚𝑜𝑢𝑛𝑡 availability is influenced by downtime. utilization is affected by working hours and loss time, while the productivity index is affected by bucket fill and work efficiency (waqas et al., 2013). the hypotheses in this study are: h1: the calculated availability is higher than targeted availability h2: the calculated performance efficiency is higher than targeted performance efficiency h3: the calculated rate of quality is higher than the targeted rate of quality results and discussion pt xyz has 13 excavators and 123 highway dump trucks for loading and hauling processes. there are several types of excavators: hitachi ex-2500 with the capacity of 15 m3, hitachi ex-2600 with the capacity of 17 m3, komatsu pc-2000 with the capacity of 15 m3, and liebherr ex-9350 with the capacity of 20 m3. as for the highway dump trucks, there are 3 types: caterpillar 777d, caterpillar 777e, and komatsu 785 with the capacity of 43 m3. targeted oee calculation based on the targeted availability, performance efficiency, and quality set by the company. the oee can be calculated as shown in table 1. the company did not set a high target for both loading and hauling equipment because of the weather condition in the mining area. all mining activities are halted when it is raining. as a tropical country, rain is very common in indonesia. from the calculation, the targeted oee for loading equipment is quite low with only hitachi ex-2600 has an oee of 50%. whereas the targeted oee for hauling equipment is all set to 56%. jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2020, pp. 16 20 actual oee calculation using the historical data, the current oee can be calculated by multiplying availability, performance efficiency, and quality can be seen in table 2. for the loading equipment, the highest availability is komatsu pc-2000 with an availability of 91%, the highest performance is liebherr ex-9350 with a performance of 53%, and the highest quality is hitachi ex2500 with quality of 95.45%. however, the loading equipment with the highest oee is hitachi ex-2600. the equipment with the highest performance is not necessarily to be the one with the highest oee (yazdi et al., 2018). this is because the oee does not only consider the performance of the equipment. as for the hauling equipment, the highest availability is 98% for komatsu 785, the highest performance is caterpillar 777e with a performance of 55%, and the highest quality is komatsu 785 with the quality of 100%. the hauling equipment with the highest oee value is komatsu 785 with an oee of 53%. comparison of targeted and actual oee based on the calculation of the targeted and actual oee, it can be seen that the actual oee for both loading and hauling equipment generally did not reach the target, except for hitachi ex-2500 that exceeded the target. figure 1 shows the oee deviation of the loading equipment. from figure 1, we can see that although hitachi ex-2600 has the highest oee, the deviation between target and actual oee for hitachi ex-2600 is not the lowest. in here, liebherr ex-9350 has the smallest oee deviation from the target value. the deviation between targeted and actual oee can be seen in figure 2. since the targeted value set to be the same for all dump trucks, the komatsu 785 has the highest actual oee and the lowest deviation from the targeted value. using the oee deviation value, the company could see which equipment needs to be increased in terms of availability, performance, and quality in order to reach the targeted values that have been set by the company. the company should increase the performance of the equipment with a high deviation first. in general, the actual availability and quality are higher than the targeted value. thus, hypotheses 1 and 3 are true. however, hypothesis 2 is not true because the actual performance is lower than the targeted value. this could happen because of the bad weather, machine breakdown, and the long queue in the mining area. as mentioned earlier, all mining activities are stopped during raining. this is a very difficult situation to control because it is a natural phenomenon. other than delaying the operation, rain could also affect road access. bumpy road in mining area influences the performance of the equipment and it could contribute to machine breakdown. when the machine breakdown happens, it usually needs some time to fix the machine. this is the reason why pt xyz has 13 excavators and 123 highway dump trucks but low availability. conclusion this study has presented a productivity evaluation of loading and hauling equipment in overburden mining in pt xyz. based on the analysis, it is evident that only hypotheses 1 and 3 are true. from the calculation, the actual availability and quality are higher than the targeted value. however, the actual performance of the equipment is lower than the target. overall equipment effectiveness (oee) can help the company to see which equipment has low effective and efficient levels. thus, the company could take necessary actions to increase the availability, performance, and quality of the equipment to increase the productivity of the process. references bamber, c.j., castka, p., sharp, j.m., & motara, y. (2003) crossfunctional team working for overall equipment effectiveness (oee). journal of quality in maintenance engineering, 9(3), 223238. dindarloo, s. r., osanloo, m., frimpong, s. (2015) a stochastic simulation framework for truck and shovel selection and sizing in open pit mines. journal of the southern african institute of mining and metallurgy, 115(3), 209-219. esmaeel, r. i., zakuan, n., jamal, n. m., taherdoost, h. (2018) understanding of business performance from the perspective of manufacturing strategies: fit manufacturing and jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2020, pp. 16 20 overall equipment effectiveness. procedia manufacturing, 22, 998-1006. huang, s. h., dismukes, j. p., shi, j., su, q., razzak, m. a., bodhale, b., robinson, d. e. (2003) manufacturing productivity improvement using effectiveness metrics and simulation analysis. international journal of production research, 41(3), 513-527. kicki, j., & dyczko, a. (2010) the concept of automation and monitoring of the production process in an underground mine. in: new techniques and technologies in mining proceedings of the school of underground mining, r. dychkovskyy (eds.), taylor & francis, london, 245-253. nachiappan, r. m., & anantharam, n. (2006) evaluation of overall line effectiveness (ole) in a continuous product line manufacturing system. journal of manufacturing technology management, 17(7), 987–1008. nayak, e. a. (2013) evaluation of oee in a continuous process industry on an insulation line in a cable manufacturing unit. international journal of innovative research in science, engineering and technology, 2(5). singh, m., & narwal, m. s. (2017) measurement of overall equipment efficiency (oee) of a manufacturing industry: an effective lean tool. international journal of recent trends in engineering and research, 3(5), 268-275. stefaniak, p.k., zimroz, r., sliwinski, p., andrzejewski, m., wylomanska, a. (2015) multidimensional signal analysis for technical condition, operation and performance understanding of heavy duty mining machines, proceedings of 4th international conference on condition monitoring of machinery in non-stationary operations (cmmno 2014), 15-16 december 2014 lyon. waqas, m. (2013) measuring performance of mining equipment used in cement industry by using overall equipment effectiveness (oee) (doctoral dissertation, msc. thesis, department of mining engineering, university of engineering & technology, lahore, pakistan). yazdi, p. g., azizi, a., hashemipour, m. (2018) an empirical investigation of the relationship between overall equipment efficiency (oee) and manufacturing sustainability in industry 4.0 with time study approach. sustainability, 10(9), 3031. jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2020, pp. 16 20 list of tables table 1. targeted oee calculation table 2. actual oee calculation table 2. actual oee calculation figure 1. comparison of targeted and actual oee of loading equipment equipment unit availability performance quality oee loading liebherr 9350 5 77% 84% 62% 40% hitachi ex-2500 1 61% 73% 57% 25% komatsu pc-2000 1 82% 88% 64% 46% hitachi ex-2600 6 86% 90% 65% 50% hauling caterpillar 777d 72 87% 90% 71% 56% caterpillar 777e 8 87% 90% 71% 56% komatsu 785 43 87% 90% 71% 56% equipment unit availability performance quality oee loading liebherr 9350 5 78% 53% 90.91% 37% hitachi ex-2500 1 80% 46% 95.45% 36% komatsu pc-2000 1 91% 44% 90.91% 36% hitachi ex-2600 6 87% 50% 91.87% 40% hauling caterpillar 777d 72 74% 52% 97% 37% caterpillar 777e 8 93% 55% 98% 50% komatsu 785 43 98% 54% 100% 53% jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2020, pp. 16 20 figure 2. comparison of targeted and actual oee of hauling equipment correspondence to : leoelfire619@gmail.com received: nov, 22, 2019 revised: dec, 19, 2019 accepted: dec, 30, 2019 jurnal akuntansi, manajemen dan ekonomi vol.21, no. 4, pp. 1 8 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction becoming a sophisticated trend in society especially the young generation, the capital market has been considered to have not only a highly prominent role in the perspective of economic growth but also a promising investment platform. one of the most worth-investing instruments which have been the center of attention in indonesia is stock. in the last consecutive years, consumer goods sector of industry's shares have gotten the public spotlight, a few from plethora of them are ggrm, hmsp, unvr, icbp, and indf shares has utterly become the main attraction for the consumer goods industry because they are believed to be the most liquid securities among the 50 companies with the largest market capitalization that are the most preferred by traders. the shares of this sector are considered to have resilience effects on various economic conditions because they are related to the fundamental and primary needs of the community. subsequently, there are fluctuations which depict from the data of the consumer confidence index (cci) survey results, this survey was conducted on a number of respondents consisting of ± 4600 households in 18 major cities in indonesia that are published on the official website of bank indonesia, this data can indirectly reflect the country's economic conditions because of this survey involves the most basic element of a country itself, namely society, the stable tendency of stock movements presented in the sectoral stock index statistics data from which information stems from a reliable source: idx. the data of the consumer confidence index is relatively constant and slowly increasing which is directly proportional to the movement of the consumer expectation index (cei) and the economic condition index (eci). an eye-catching phenomenon occurred in 2015, when all share movements of all sectors simultaneously weakened, the stock of the consumer goods sector was indiscriminately included, but the movement of consumer goods industry stocks was still at a level that was not too severe compared with other sectors which amounted to -5.19% and this seems to be influenced by optimism as a result of economic conditions reflected in the consumer survey index which also weakened to 94.0 in 2015; meanwhile, in 2016 the movement of stock prices experienced a very significant increase at the moderating impact of dividend policy and corporate social responsibility on profitability towards firm value widya sari1, leo indra pratama2, david3, claudie4 1,2,3,4management department, faculty of economy, universitas prima indonesia, indonesia abstract this research targets are to identify and analyze not only the influence of profitability towards firm value but also the ability of both dividend policy and corporate social responsibility disclosure to moderate them on companies which are listed in the consumer goods industry on indonesian stock exchange (idx) from 2013 to 2017. there are precisely 39 and 14 enterprises that are utilized as population and sample respectively. this study applies the purposive sampling method to generate samples from the population which had been eliminated by the devoted criteria. data has been analyzed by using multiple regression and moderation regression analysis. the result delineates that profitability and dividend policy have an insignificant positive effect on firm value, while corporate social responsibility does not affect firm value. keywords return on assets; stock price; dividend payout ratio; corporate social responsibility jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1-8 31.96%, this is directly proportional to the strengthening consumer confidence index. based on that phenomenon, every company, especially the go-public companies must be able to strengthen the appeal of their shares through information that can encourage positive assumptions or paradigms to the public to be able to maintain their share position, a fairly efficient way is through information disclosures. the important thing needed by external parties in this case investors gets a positive signal, one of which is to publish activities of corporate social responsibility which are very clearly regulated in 2007 indonesian incorporated corporation law number 40. furthermore, the disclosure of information about the level of dividend payments is also very crucial and important for investors who use passive investment strategies which naturally expect dividends to be distributed annually by the issuer or the company in question where they invest their share capital. therefore, this study aims to find out how could return on assets affects atock prices with the dpr and csr as moderating variables of consumer goods industry sector companies listed on the indonesia stock exchange in the 2013-2017 period both partially and simultaneously. return on asset (roa) wira (2015) determines that roa is a variable used in measuring the level of profit generated by a company in comparison with the efficiency and utilization of assets. indicator : 𝑅𝑂𝐴 = 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 according to husnan (2015), roa has a positive relationship to the true value of a stock, the greater the acquisition of assets, the greater the stock price. from the expert statements above, it can obviously be seen that roa can be legitimately used to assess the company's ability to maximize all of its assets to generate profits. furthermore, the maximum profit generated can positively affect the price of a stock and is significant (sitorus & elinarty, 2016) dividend payout ratio (dpr) gumanti (2013) states that dividend policy is a step taken to make a profit distribution which is generally done in the form of cash dividends to shareholders. this policy could estimate future profits and prices (signaling theory). the shareholders tend to like dividends, the distribution of shares can signal the company in good condition. indicator: 𝐷𝑃𝑅 = 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 initiation of the company in making dividend payments will be welcomed relatively well by the market, which can be a trigger for rising share prices (asmirantho and yuliawati, 2015); corporate social responsibility (csr) solihin (2015) writes that social responsibility is an activity that has values and morals carried out by companies to meet social obligations to both internal and external stakeholders, this can affect the increase in corporate value in the form of an increase in share prices. indicator: 𝐶𝑆𝐷𝐼 = σ𝑋𝑖𝑝 𝑛𝑝 description: csdi: corporate corporate responsibility disclosure index p xij: 1 = if item i was disclosed; 0 = if item i was not disclosed np: number of item disclosure criteria for companies p; ni = 91. corporate csr disclosure can be measured using the global reporting initiative (gri), where the assessment is divided into several categories and sub-categories which are criteria of social responsibility undertaken by the company. (darmawati and wahyuni, 2018); stock price darmadji and fakhruddin (2015) stated that share price is a representation of corporate performance; which uses a closing price as an indicator, that is the closing price of a company's stock in the year of a period. jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1-8 conceptual framework h2 h1 h3 chart 1. conceptual framework regarded on the conceptual framework described above, this research hypothesis is: h1: return on assets (roa) affects the stock prices of consumer goods industry companies listed on the indonesia stock exchange 2013-2017. h2: dividend payout ratio (dpr) can moderate the effect of return on assets (roa) on the share prices of consumer goods industry companies listed on the 2013-2017 bei. h3: corporate social responsibility (csr) can moderate the influence of the effect of return on assets (roa) on the share prices of consumer goods industry companies listed on the indonesia stock exchange 2013-2017. research methods approach, types, and nature of research the research approach undertaken in this study is a quantitative approach which is a research method based on the philosophy of positivism; the type of research conducted is descriptive quantitative visualizing specific details, and the nature of this systematic and scientific research is explanatory which is a with the aim of describing the relationships and relationships and the inequality of phenomena that occur. population and sample the population in this study is all companies in the consumer goods industry sector which are listed on the indonesia stock exchange, amounting to 39 companies. in this study using purposive sampling method with the above criteria and after the company's data was eliminated in accordance with predetermined criteria, namely: 1. industrial consumer goods companies listed on the indonesia stock exchange from 2013-2017 2. consumer goods industry sector companies that did not distribute dividends during 2013-2017 3. consumer goods industry sector companies that received negative profits in the period 2013-2017 the samples used were precisely 14 companies, so the total observations in this study were 14 companies x 5 years = 70 observations in the consumer goods industry sector companies listed on the indonesia stock exchange with the research period 2013-2017. data analysis technique multiple linear regression analysis & moderation (mra) the analysis is performed after the classic assumption test: normality, multicollinearity, autocorrelation, and heteroscedasticity, then the model can already be used in testing linear regression and moderation, by the following equation: y1 =α + ε + β1x1 ..................................... (1) y2 = α + β1x1 + β2x1.z1 + β2x1.z2 + ε (2) information : y = the share price, x1 = return on assets, z1 = dividend payout ratio, z2 = corporate social responsibility, α = constant, β1-β2 = coefficient of correlation, ε = error coefficient of determination the coefficient of determination (r2) was used to measure the ability of the model to explain the dependent variable. a value close to 1 (one) means the independent variable (x) is great on the dependent variable (y). hypothesis in this study hypothesis test to determine the corresponding relationships or influence of the variables studied, the researchers statistically use simultaneous test (f-test) and partial test (ttest). roa (x) dpr (z1) stock price (y) csr (z2) jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1-8 results and discussion (x); roa of 70 observational data, it can be seen that the minimum value of 0.0001 is located at. ultrajaya milk industry and trading company, tbk. in 2015, which means the level of the company's efficiency in using assets to generate earnings amounted to only 0.01% and a maximum value of 0.38 on pt. unilever indonesia, tbk. in 2013 which means that the level of efficiency of the company in maximizing its assets to generate earnings by 38%. dpr (z1); 70 observation data dpr has a minimum value 0.0010 is located at. ultrajaya milk industry and trading company, tbk., this means that companies only pay a dividend of 0.1% on the profit generated in 2015 and a maximum value of 1.18 on pt. handjaya mandala sampoerna tbk., indicating that the company had paid a dividend of 118% in the same year. csr (z2); 70 csr observation data has a minimum value 0.0330 is located at. sekar laut, tbk. in 2013 and a maximum value of 0.45 on pt. indofood sukses makmur, tbk. in 2017. this indicates that the value of csr in the study sample is around 3.3% which reflects the value of 45% minimum to a maximum value above which illustrates the proportion disclosure of social responsibility to corporate social disclosure index (g4). the average value of which is owned by 0.1741. stock price (y); 70 stock price observation data has a minimum value of 180 at. sekar laut, tbk. in 2013 and a maximum value of 94000 on pt. handjaya mandala sampoerna tbk. in 2015 and the average value of 14867.0857. table 2. data analysis results linear regression analysis and t-test y1 = α + ε + β1x1 ..................................... (1) lnhs = 9.397 + 0,304lnroa lnroa variable regression coefficient (x) of 0.304, this means that if there is a change lnroa rise by 1%, it will increase the stock price of 30.4%. table 3. test analysis coefficient of determination regression model model summaryb model r r square adjusted r square std. error of the estimate durbinwatson 1 .31 5a .099 .086 1.66204 1.797 a. predictors: (constant), lnroa b. dependent variable: lnhs test results obtained by the value of the coefficient of determination adjusted r square of 0.086 or 8.6%, which means that the size variable stock price can be explained by the independent variables roa in consumer goods industry sector companies listed on the indonesia stock exchange 2013-2017 period. while the rest (100% 8.6%) = 92.4% explained by other variable outside this research model. table 4. simultaneous analysis hypothesis (f-test) anovab model sum of squares df mean square f sig. 1 regres sion 20.751 1 20.751 7.512 .008a residu al 187.841 68 2.762 total 208.592 69 a. predictors: (constant), lnroa b. dependent variable: lnhs table 1. descriptive statistics n min max mean std. deviation roa (x) 7 0 .0001 .38 .0792 .11168 dpr (z1) 7 0 .0010 1.18 .4445 .30245 csr (z2) 7 0 .0330 .45 .1741 .11357 stock price (y) 7 0 180.0 0 94000. 00 14867.08 57 22614.207 51 valid n (listwis e) 7 0 model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (consta nt) 9.397 .435 21. 593 .000 lnro a .304 .111 .315 2.7 41 .008 a. dependent variable: lnhs jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1-8 arithmetic-f amounted to 7.512 and f-table of 3.08 for arithmetic-f 7.512> 3.98 f-table with a significance level of 0.008 for the amount of the 0.05 significance level means roa simultaneously significant effect on stock prices industry consumer goods sector companies listed on the stock exchange in 2013 -2017. partial analysis hypothesis (t-test) spss calculation results with the level of the provision of freedom (df) with the provisions of (nk) or 70-2 = 68, the obtained values: return on assets: 2.741 t> t table at a significance level of 0.008 1.99547 <0.05 then h0 is rejected and h1 accepted. that is roa effect is insignificant and positive on the stock price industry consumer goods sector companies listed on the stock exchange from 2013 to 2017. , table 5. moderate regression analysis (mra) and t-test model unstandardize d coefficients standardize d coefficients t sig. b std. error beta 1 (constant) 10.83 9 .600 18.05 0 .00 0 lnroa .981 .264 1.016 3.718 .00 0 lnroa_lndp r .057 .018 .622 3.141 .00 3 lnroa_lncs r .074 .078 .207 .940 .35 0 a. dependent variable: lnhs y2 = α + β1x1 + β2x1.z1 + β2x1.z2 + ε ..(2) lnhs = 10.839 + 0,981lnroa + 0,057lnroa.lndpr + 0,074lnroa.lncsr lnroa variable regression coefficient (x) of 0,981. this means that if there is a change roa rise by 1 time, it will increase the stock price by 98.1%. lnroa.lndpr variable regression coefficient of 0.057. this means that if there is an increase of 1% lndpr, it will moderate and increase lnroa's influence on stock price by 5.7%. lnroa.lncsr variable regression coefficient of 0.074. this means that if there is an increase of 1% lncsr, it will moderate and increase lnroa's influence on stock price by 7.4%. table 6. test analysis coefficient of determination regression model moderation test results obtained by the value of the coefficient of determination adjusted r square of 0.192 or 19.2%, which means that the size variable stock price can be explained by the independent variables and their roa moderating variables dpr and csr on consumer goods industry sector companies listed on the indonesia stock exchange period 20132017. while the rest (100% 19.2%) = 81.8% explained by other variable outside this research model. table 7. simultaneous analysis hypothesis (f-test) arithmetic-f amounted to 2,583 and f-table of 3.08 for arithmetic-f 2.583 <f table of 3.13 with a significance level of 0.001 for the amount of the 0.05 significance level means roa, dpr, and csr simultaneously no significant effect on the company's stock price consumer goods sector industry listed on the stock exchange from 2013 to 2017. partial analysis hypothesis testing (ttest) spss calculation results with the level of the provision of freedom (df) with the provisions of (nk) or 70-3 = 67, the obtained values: return on assets: 3,718 t> t table at a significance level 0 1.99601 <0.05 then h0 is rejected and h1 accepted. that is roa effect is not a significant and positive impact on model summaryb model r r square adjusted r square std. error of the estimate durbinwatson 1 .476a .227 .192 1.56336 1.964 a. predictors: (constant), lnroa_lncsr, lnroa_lndpr, lnroa b. dependent variable: lnhs anovab model sum of squares df mean square f sig. 1 regres sion 47.282 3 15.761 6.448 .001a residu al 161.311 66 2.444 total 208.592 69 a. predictors: (constant), lnroa_lncsr, lnroa_lndpr, lnroa b. dependent variable: lnhs jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1-8 stock prices. this is consistent with other research that's done before (sidiq, et al., 2018). return on assets with dividend payout ratio: 3.141 t> t table at a significance level of 0.03 1.99601 <0.05 then h0 is rejected and h1 accepted. that is roa with dpr no significant effect and positive impact on stock prices. this shows that dpr can moderate and strengthen the influence of roa and stock price but not significant. this shows that dpr has consistently moderated the influence of roa on stock prices with previous studies (bulutoding, et al., 2018). return on assets, corporate social responsibility: 0,940 t <t table at a significance level of 0.35 1.99601 <0.05 then h0 rejected and h1 accepted. that is roa with csr not significant and positive impact on stock prices. this proves that csr can not moderate significantly and strengthen the influence of roa with stock price. hali is not in line with previous studies (raningsih and artini. 2018), stating that csr can weaken roa's relationship with stock price. conclusion in partial, return on assets has an insignificant positive effect on stock prices. this means that an increase in return on assets will have a positive influence on stock prices. additionally, if a company can both utilize all of its assets efficiently to generate profits that will give a mild good effect on the price of a stock. partially, the dividend payout ratio effect is insignificant and positive on stock prices. this means dpr was able to moderate the increase in roa is not significant to the stock price. besides, the cash dividend policy conducted by the company on the profits generated will give employees a positive impact on the stock price. partially, corporate social responsibility does not affect stock prices significantly and positive. this means that csr can not moderate an increase in roa significantly to the stock price. disclosure of social responsibility by companies does not have a significant impact on the company's stock price. simultaneously return on assets, dividend payout ratio and corporate social responsibility does not affect stock prices significantly and positive. this means that the level of stock price changes is not affected by return on assets, dividend payout ratio and corporate social responsibility simultaneously. both dpr and csr can not moderate profitability to the firm value simultaneously. references husnan, suad. 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(2015). pengaruh dividen per share (dps), dividen payout ratio (dpr), price to book value (pbv), debt to equity ratio (der), net profit margin (npm) dan return on asset (roa) terhadap harga saham pada perusahaan manufaktur sub sektor makanan dan minuman dalam kemasan yang terdaftar di bei. jurnal ilmiah akuntansi fakultas ekonomi. vol.1. no.2. hal.95-117. zuliarni, sri. (2012). pengaruh kinerja keuangan terhadap harga saham pada perusahaan mining and mining service di bursa efek indonesia (bei). jurnal aplikasi bisnis. vol.3. no.1. hal: 36-48. pribadi dan sampurno. (2012). analisis pengaruh cash position, firm size, growth opportunity, ownership, dan return on asset terhadap dividend payout ratio. diponegoro journal of management. vol.1. no.1. hal: 212211. lioew,et al. (2014). roa,roe,npm pengaruhnya terhadap dividen payout ratio pada perusahaan perbankan dan financial institusi yang terdaftar di bei periode 20102012. jurnal emba. vol.2. no.2. hal: 1406-1416. hanif dan bustamam. (2017). pengaruh debt to equity ratio, return on asset, firm size, dan earning per share terhadap dividend payout ratio (studi pada perusahaan manufaktur yang terdaftar di bursa efek indonesia tahun 2011-2015). jurnal ilmiah mahasiswa ekonomi akuntansi (jimeka). vol.2. no.1. hal: 73-81. sitorus dan elinarty. (2016). the influence of liquidity and profitability toward the growth at stock price mediated by the dividends paid out (case in banks listed in indonesia stock exchange). journal of economics, business, and accounting ventura.vol.19. no.3. pages 377-392. mi, et al. (2018). the relevance of social responsibility and financial performance of listed companies. journal of management and sustainability. vol.8. no.2. pages 4050. thi thuy ta, hang. (2018). effect of corporate social responsibility disclosure on financial performance. asian journal of finance & accounting. vol.10. no.1. pages: 4058. jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 1-8 global reporting initiative.(2016) pedoman pelaporan keberlanjutan & prinsipprinsip pelaporan dan pengungkapan standar. otoritas jasa keuangan. (2016). undangundang no. 40 tahun 2007 tentang perseroan terbatas bank indonesia. (2013). indeks suvery keyakinan konsumen tahunan. bank indonesia. (2014). indeks suvery keyakinan konsumen tahunan. bank indonesia. (2015). indeks suvery keyakinan konsumen tahunan. bank indonesia. (2016). indeks suvery keyakinan konsumen tahunan. bank indonesia. (2017). indeks suvery keyakinan konsumen tahunan. bursa efek indonesia (2013). annual report statistics. bursa efek indonesia (2014). annual report bursa efek indonesia (2013). annual report statistics. bursa efek indonesia (2015). annual report statistics. bursa efek indonesia (2016). annual report statistics. bursa efek indonesia (2017). annual report statistics. correspondence to : received:june, 12, 2020 accepted: june, 21, 2020 published:june, 30, 2020 jurnal akuntansi, manajemen dan ekonomi vol 23, no 2, pp.20-27 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction micro, small, and medium enterprises (msmes) have a vital and strategic role in improving the indonesian economy. besides, to play a role in national economic growth, msmes also play a role as employment. besides, the advantage of msme is that it is not affected by the crisis. it evidences by msmes in indonesia still standing strong, despite the crisis in 1997-1998. based on data from the coordinating ministry for economic affairs, it stated that after the economic crisis, the number of msmes in indonesia has not decreased; instead, it has continued to increase, even now reaching 99.9% and can absorb 97% of the workforce. besides, msmes have also contributed to gdp (gross domestic product) by 60.34%. the data proves that msmes in indonesia is very potential in improving the indonesian economy. msmes contribute a vital role in national economic growth. it is an opportunity as well as a challenge for msmes in banyumas regency because it demanded to continue to make improvements and developments continuously. also, msme actors must increase managerial and financial knowledge to develop msmes. the current condition of msmes in banyumas was reported from the radar banyumas.com, stating that msmes in banyumas have not been able to compete in the global arena. that is because msmes still constrained by classic problems, namely the limited raw materials and labor and many msmes that are not ready to produce large quantities—coupled with capital problems, which are classic in business. msmes still have limitations to access assistance from the government, both in the form of revolving funds, as well as funds from banks (www. radarbanyumas.com). it can conclude that the level of understanding of msme actors towards finance is still shallow. financial literacy is currently driving business growth. msme players who know about financial literacy will easily access capital assistance. also, financial literacy will help msmes in managerial and financial decisions. financial literacy will help business actors related to business management from the budget, planning to save business funds, as well as basic knowledge of finance to achieve business financial goals (greenspan, 2002). according to the ojk (financial services authority), the level of financial literacy in the banyumas regency is still very low. the results of a survey conducted by the ojk stated that out of 100 people surveyed, only 30% understood the financial services industry products. with in-depth financial knowledge, msmes will find it challenging to access capital, whereas access to capital here is a gateway to improve the performance of msmes. also, a low level of literacy will cause problems in terms of business management, financial literation and its effect on the performnce and sustainability of micro small and medium enterprises in banyumas retno kurniasih1, siti zulaikha wulandari2, tiladela luhita3 1,2,3 management department, faculty of economics and business, universitas jenderal soedirman: indonesia abstract the purpose of this study was to analyze the effect of financial literacy on the performance and sustainability of msmes in the banyumas regency. this research is descriptive and quantitative, using the method of regression analysis and using spss 16.0 software for windows. the number of samples in this study was 100 msmes in banyumas regency. the sampling technique in this study will determine by the nonprobability sampling technique. the results of this study indicate that financial literacy influences the performance and sustainability of msmes. keywords financial literacy, performance, sustainability, msme jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.20.-27 starting from the budget, planning to save business funds, as well as basic knowledge of finance. the low ability of financial management possessed by msmes will hamper msme sustainability. research conducted by adiningsih (2001) also states that msmes in indonesia is still very limited, especially in terms of business management capability, quality of human resources (hr), and msme access to financial institutions. various other unresolved msme problems include ownership, financing, marketing, and various issues related to business management. these problems make it difficult for msmes to develop and compete with large companies (abor and quartey, 2010). therefore, strategic efforts are needed to improve the performance and sustainability of msmes. one effort that can do to overcome these problems is by increasing the knowledge of msme actors in financial matters so that they can manage finances well and develop their business (aribawa, 2016). there is a lot of research and literature that discusses the company's ability to recognize and access financial impact on the company's sustainability rate. research conducted by aribawa (2016) states that financial literacy influences performance. the results of research conducted by rahayu (2017) support previous research that financial literacy affects the performance of msmes. in line with this research, dahmen and rodriguez (2014) concluded that an understanding of financial literacy for business people is essential for the preparation of financial statements and can support company performance. research conducted by dahmen and ronriguez (2014) states that financial literacy has a positive influence on business success and company performance. therefore an understanding of financial literacy is essential for business continuity. however, research conducted by eke and raath (2013) has different results. research conducted in africa found that financial literacy did not affect msme sustainability and msme performance. further research needs to do on financial literacy and its effect on the performance of msmes and the sustainability of msmes. this research will conduct at umkm in banyumas regency. the purpose of this study is to analyze the effect of financial literacy on performance and msme's sustainability. financial literacy and msme performance lusardi (2012) states that financial literacy is a life skill that everyone needs to have to be able to improve their standard of living and survive in today's complex economic environment. the financial services authority institute (2016) states that financial literacy is needed for first, the development of an increasingly complex financial services industry. chen and volpe (1998) categorize financial literacy into three groups. namely group 1 which is <60% which means this individual has in-depth financial knowledge), for group 2 that is 60% 79% means individuals know about moderate finance), as well as for group 3 namely> 80% which shows that individuals have a high level of financial knowledge. based on pisa 2012: financial literacy assessment framework (oecd infe, 2012), it formulates that financial literacy is a fundamental factor for economic growth and financial stability. from consumers, good financial literacy will lead to spending decisions that prioritize quality. it will result in competition in a healthy industry, and competition will prioritize innovation in goods and services offered to consumers. it is also can minimize the occurrence of wrong decisions on economic and financial issues that arise. from the perspective of financial service providers, good financial literacy will provide adequate information about the product, understanding the risk to customers and cost-efficiency. meanwhile, from the perspective of the government, with the existence of functional financial literacy in the community, the government can obtain maximum tax revenue for the development of infrastructure and public service facilities. mutegi et al. (2015) define the performance of msmes is the work achieved by individuals. it adjusts to the role or task of the individual within a company in a certain period, which is associated with a specific value or standard size of the individual company the company works. success or failure of an organization can be seen with the achievement of organizational goals that have been set. msme players who know about financial literacy will easily access capital assistance. also, financial literacy will help smes in managerial and financial decisions. financial literacy will help business actors in managing jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.20.-27 a business from budgets, planning for saving business funds, and basic knowledge of finance to achieve business financial goals, according to greenspan (2002). based on research conducted by anggraini (2016) states that financial literacy can affect one's way of thinking about financial conditions and influence strategic decision making in terms of finances and better management for business owners. so it can be concluded that the importance of the financial literacy of msme actors can raise the performance of msmes. there is research that links the financial literacy of msme performance. research conducted by aribawa (2016) states that financial literacy influences performance. the results of research conducted by rahayu (2017) support previous research that financial literacy affects the performance of msmes. in line with this research, dahmen and rodriguez (2014) concluded that an understanding of financial literacy for business people is essential for the preparation of financial statements and can support company performance. therefore the hypothesis built in this study is: h1: there is an influence of financial literacy on the performance of msmes. financial literacy and msme sustainability msmes, as the largest informal sector mover in indonesia with the highest absorption of workers, have an essential role in the economic system. according to cole, sampson, and zia (2010), the fastest way to move the economy in emerging markets is to focus on the development of the informal sector (msmes). the level of financial literacy from the perspective of an individual or family can have an impact on the ability to have long-term savings that use to own assets (such as land or houses), the fulfillment of tertiary education, and pension funds. ineffective money management will have an impact on the family's financial crisis (braunstein and welch, 2002). these findings can also be adapted for companies. in this case, msmes that have functional financial literacy will be able to achieve their company goals, have a business development orientation, and be able to survive in challenging economic conditions. in the business and entrepreneurship literature, lack of knowledge and access to financial resources has been linked to the company's inability to achieve goals (beck, demirguckunt, and maksimovic, 2005; hutchinson and xavier, 2006; malo and norus, 2009; and coad and tamvada, 2012), and manager's discretion in taking strategic actions (wiklund and shepherd, 2003). other literature also confirms that financial literacy and inclusion will be able to increase company sustainability (cooper, gimeno-gascon, and woo, 1994; storey, 1994; forbes insights, 2011). business sustainability at smes is seen from the company's success in innovating, managing employees and customers, and returning their initial capital. the sustainability of msmes is also closely related to business growth. adamoko et al. (2015) state that business growth is the company's ability to increase the size of a company. fatoki (2014), in his research, said that business growth and how to measure it is usually defined and measured using absolute or relative changes in sales, assets, work, productivity, profits. in each stage of development, different factors are crucial for the continuity of company growth and the success of msmes. research conducted by dahmen and ronriguez (2014) states that financial literacy has a positive influence on business success and company performance. therefore an understanding of financial literacy is essential for business continuity. however, research conducted by eke and raath (2013) has different results. research conducted in africa found that financial literacy did not affect msme sustainability. therefore the hypothesis built in this study is: h2: there is an influence of financial literacy on the sustainability of msmes. research methods this research is a descriptive and quantitative study, which aims to analyze the effect of financial literacy on the performance and sustainability of msmes. the method used in this study is a survey method. data collection is done by several methods, namely by using questionnaires, interviews, and observations. data obtained through several questions submitted to respondents in the form of questionnaires in the form of open and closed questions, supplemented by interviews with jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.20.-27 several respondents and informants who are considered relevant and by direct observation of the object under study. this research conducted in banyumas regency. the target population in the study was msmes in purwokerto. the sample in this study determined by a non-probability sampling technique. namely, the purposive sampling method, where the research sample was selected subjectively based on certain criteria and considerations relevant to the study. the considerations used in this study were respondents of smes, who were in banyumas regency, who had been running msmes for at least 3 (three) years. results and discussion test instrument before analyzing each variable, it is necessary to test the previous research instrument. the research instrument used in this study was a questionnaire containing opinions representing indicators of each variable. the instrument test is done by testing the validity and reliability of the instrument. this test is run with spss 16.0 for windows. a validity test is done with the aim to get the right measurements, which can measure what will be measured in this study. the validity test in this study uses the product-moment testing technique. the results of the validity test of sustainability can be seen in the following table: table 1. test results of the validity of financial literacy variable instruments. item r r table 1 0,561 0,196 valid 2 0,701 0,196 valid 3 0,401 0,196 valid 4 0,784 0,196 valid 5 0,694 0,196 valid 6 0,787 0,196 valid 7 0,637 0,196 valid source: processed data table 2. test results of the validity of msmes performance variable instruments. item r r table 1 0,613 0,196 valid 2 0,600 0,196 valid 3 0,799 0,196 valid 4 0,783 0,196 valid 5 0,723 0,196 valid source: processed data table 3. test results of the validity of msmes sustainability variable instruments. item r r table 1 0,650 0,196 valid 2 0,573 0,196 valid 3 0,784 0,196 valid 4 0,782 0,196 valid source: processed data from the above table, it can be concluded that the research instrument of financial literacy variables, msme performance, and msme sustainability, is declared valid because all r count> r table (0.196). after testing the validity of the instrument, the instrument that has been declared valid is tested for reliability. the reliability test is carried out with the aim of measuring measurement tools that are consistent and reliable for further research. the instrument test was carried out using the cronbach alpha formula. the following are the results of the reliability test calculations for each research variable: table 4. reliability test results variable cronbach’s alpha n of items financial literacy 0,753 7 msme performance 0,692 5 msme sustainability 0,722 4 source: processed based on table 4 above, it can be seen that all research instruments are declared reliable because they have a cronbach alpha value higher than 0.60. it can be concluded that all research instruments of each variable can be used in this study. so that all instruments used to obtain information can be trusted to reveal information in the field as a data collection tool. classic assumption test after the research instrument is declared valid and reliable, the next step is testing the classical assumptions in this study, using the classic assumption test in the form of normality test and heteroscedasticity test. the traditional assumption test is performed using the help of the spps 16.0 program for windows. the following are the results of the normality of research data calculation: jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.20.-27 table 5. kolmogrov-smirnov normality test results (financial literacy-msme performance) one-sample kolmogorovsmirnov test unstandardized residual kolmogorov-smirnov z .988 asymp. sig. (2-tailed) .283 source: data processed table 6. kolmogrov-smirnov normality test results (financial literacy-msme sustainability) one-sample kolmogorovsmirnov test unstandardized residual kolmogorov-smirnov z .997 asymp. sig. (2-tailed) .272 source: data processed based on tables 5 and 6 above, it is known that the results of the spss normality test have a sig of 0.283 and 0.272, which is greater than alpha of 0.05. therefore it can be concluded that the residual value is normally distributed. next is heteroskedasticity testing, which aims to test the occurrence of differences in variance from residual values in one observation period to another observation period. here are the results of the calculation of heteroskedasticity test using the scatterplot image pattern: figure 1. heteroskedasticity test (financial literacy-msmesperformance) figure 2. heteroskedasticity test (financial literacy-msmes sustinability) based on the scatterplot above, it can be concluded that there is no heteroscedasticity problem because the spread of data points is not patterned. therefore the regression model in the research is said to be good and can be fulfilled. hypothesis test the relationship between financial literacy and msme performance hypothesis testing is done using a simple regression analysis. hypothesis testing is done by comparing the significance value with 0.05. the hypothesis is accepted if the sig value <0.05. regression results can be seen in the following table: table 7. msmes performance regression analysis results source: data processed based on the spss output above, it can be seen the regression equation between financial literacy variables and msme performance in the study, which is as follows: y = 12,838 + 0,284x the regression equation above can also explain that financial literacy has a positive influence on msme performance. this means that if the financial literacy variable increases by 1 unit, the level of msme performance will also increase by 0.284. it can be concluded that if the higher the financial literacy level of msme actors, the higher the msme performance will be. jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.20.-27 based on the data in table 7 above, it can be seen that financial literacy has an influence on the performance of msmes because the value of sig> 0.05 is sig 0.00> 0.05. therefore, hypothesis 1, which states that financial literacy affects the performance of msmes, is accepted. financial literacy is related to the understanding of business actors, namely msmes on account ownership in banks, savings, bank interest, and deposits. while the performance of msmes relates to msme sales activities that have increased, as well as the ability to serve consumer orders by maintaining quality and quantity. the results of this study indicate that the existence of financial literacy for smes will increase the access of msme actors to get their capital. msmes can consider in terms of adding capital or credit to msme businesses that are most profitable for them. umkm players can fulfill all the needs and orders of consumers, which causes the umkm sales level to increase. in addition, with functional financial literacy, smes will be able to manage finances well. so that it can help smes related to business management from the budget, planning to save business funds, as well as basic knowledge of finance to achieve business financial goals. the results of this study are consistent with research conducted by baby and candra (2019) that financial literacy has a significant effect on msme performance. the results of this study also support rahayu's (2017) study that financial literacy influences the performance of msmes. in addition, this study also strengthens the research conducted by dahmen and rodriguez (2014), which concluded that an understanding of financial literacy for businesses is essential for the preparation of financial statements and can support company performance. relationship of financial literacy with umkm sustainability hypothesis testing is done using a simple regression analysis. hypothesis testing is done by comparing the significance value with 0.05. the hypothesis is accepted if the sig value <0.05. regression results can be seen in the following table: table 8. msmes sustainability regression analysis results source: data processed based on the spss output above, it can be seen the regression equation between financial literacy variables and msme performance in the study, which is as follows: y = 10.447 + 0.224x the regression equation explains that financial literacy has a positive influence on msme performance. this means that if the financial literacy variable increases by 1 unit, the level of msme performance will also increase by 0.224. it can be concluded that if the higher the financial literacy level of msme actors, the higher the sustainability of msmes will be. based on the data in table 7 above it can be seen that financial literacy has an influence on the sustainability of msmes because the value of sig> 0.05 is sig 0.00> 0.05. therefore, hypothesis 2 which states that financial literacy affects the sustainability of msmes, is accepted. financial literacy is related to the understanding of business actors, namely msmes on account ownership in banks, savings, bank interest, and deposits. while the sustainability of msmes is related to business revenue which always exceeds expenditure and the growth of loyalty from consumers and employees towards the organization. with an understanding of financial literacy, business actors are able to manage finances well, are able to plan the use of finances, as well as the search for sources of funds to be used from various parties, both from banks or other financial institutions that determine the interest on the proposed loan or credit offered. msme players who have good financial literacy will help msmes to achieve company goals and can increase company growth. msmes with good financial understanding will be able to carry out business development and be able to survive in challenging economic conditions. therefore, msme will have excellent business sustainability. jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.20.-27 these results are consistent with research conducted by (aribawa, 2016) that there is a significant influence of financial literacy on the sustainability of creative msmes in central java. however, this study is not in line with eke and raath (2013), who found that financial literacy did not affect msme sustainability. conclusion financial literacy can affect msme performance. this can be seen from the ability of msmes to manage their finances so that msme sales always increase every year. good financial management is also able to organize msmes in the effort to achieve work programs that have been made by maximizing the planned budget so that it can improve the performance of msmes. in relation to the sustainability of msmes, the financial literacy of msme actors influences the sustainability of msmes. smes who have understood financial literacy are able to maintain financial stability, namely by earning an income that always exceeds planned expenses. msme experiences good business growth and will impact msme sustainability. in this study, there are several things that become limitations for researchers, such as limitations in one sector, namely only msmes. future studies can examine in a broader sector, for example, the sme sector. in addition, future research can examine the broader scope of the area not only in banyumas regency. further research can also add variables that have not been examined in this study, for example, financial management variables. references abor, j., dan quartey, p. 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(2015). financial literacy and its impact on loan repayment by small and medium entreprenurs. international journal of economics, commerce and management, vol. 3( issue 3), 1-28. oecd infe. (2012). pisa 2012 literacy assessment framework. [report paper] rahayu, apristi yani dan musdholifah. (2017). pengaruh literasi keuangan terhadap kinerja dan keberlanjutan umkm di kota surabaya. jurnal ilmu manajemen. 5 (3) : 17 https://radarbanyumas.co.id/umkm-di-banyumasbelum-mampu-bersaing/ https://ideas.repec.org/a/fip/fedgrb/y2002inovp445-457nv.88no.11.html https://ideas.repec.org/a/fip/fedgrb/y2002inovp445-457nv.88no.11.html https://ideas.repec.org/a/fip/fedgrb/y2002inovp445-457nv.88no.11.html https://ideas.repec.org/s/fip/fedgrb.html https://ideas.repec.org/s/fip/fedgrb.html https://radarbanyumas.co.id/umkm-di-banyumas-belum-mampu-bersaing/ https://radarbanyumas.co.id/umkm-di-banyumas-belum-mampu-bersaing/ jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.20.-27 https://www.suaramerdeka.com/smcetak/baca/444 07/umkm-terkendala-pemasaran-danpermodalan http://www.bankpundi.co.id/news/mendukungprogram-keuangan-inklusif-melaluipemberdayaansektor-umkm. diakses, sabtu, 6 nopember 2018 https://www.liputan6.com/bisnis/read/3581067/um km-sumbang-60-persen-ke-pertumbuhanekonomi-nasional https://www.suaramerdeka.com/smcetak/baca/44407/umkm-terkendala-pemasaran-dan-permodalan https://www.suaramerdeka.com/smcetak/baca/44407/umkm-terkendala-pemasaran-dan-permodalan https://www.suaramerdeka.com/smcetak/baca/44407/umkm-terkendala-pemasaran-dan-permodalan  correspondence to :kendriklm@gmail.com received: dec, 12, 2019 revised: dec, 21, 2019 accepted: dec, 30, 2019 jurnal akuntansi, manajemen dan ekonomi vol.21, no. 4, pp. 9 18 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the economic development of a country can be done in various ways, wrong only by understanding capital market developments and developments various types of industries in the country including one industry in the sector property. stretching investment in the property sector at this time is still not sufficiently developed because people's purchasing power is not good because it depends on the investment sector property. this is convincing from the indeks keyakinan konsumen (ikk) in june 2017 of 122.4 while the ikk in the previous month reached 125.9. it is a decrease of 3.5 points that replace the community do not need to be optimistic about the conditions the economy in indonesia, and rising property sales that did not rise significant in the last few years. this is the same as the indonesian stock exchange data, which announces 2017 property, real estate and building construction sector indexes it fell 4.31% when the ihsg (indeks harga saham gabungan) jumped 19.99%. meanwhile, this condition is further exacerbated by expensive property prices and the difficulty of people chasing property prices soaring each year. in the midst of the industry which is still negative, the majority of investors, especially foreign investors, many are releasing their shares in the property sector and diverting their investment in shares in other sectors, while the ihsg (indeks harga saham gabungan) in this sector is quite good, indicating that investment in this sector is still attractive and is expected to provide the profit in the coming years. one technique that can be used in analyzing financial statements is to use financial ratios. financial ratios can be grouped into 5 types based on their scope, namely liquidity ratios, solvency ratios, activity ratios, profitability ratios, and market ratios. in this study, the authors measure the level of liquidity using current ratio, which is the most common measure of a company's ability to pay debts in the short term, because the ratio shows how far the bills of short-term creditors are able to be met by assets that can quickly turn into immediate cash (in the short term). in previous studies valintino & sularto (2013) current ratio significantly influence stock price. whereas, in his research, sari & hakim (2017) states that, the current ratio has no significantly on stock price. the effect of current ratio, debt to equity ratio and earning per share on stock price kendrik1, aldi mukti2, verent3, hendriyo4, billy wiyogo5, jamaluddin6 1,2,3,4,5,6universitas prima indonesia, indonesia abstract the purpose of this research is to determine the current ratio, debt to equity ratio, earning per share has a effect on stock price of the sub sector property and real estate on the indonesian stock exchange partially or simultaneously. this type of research was quantitative research. the data used in this research are secondary data in the form of financial statements from 2015-2018 period. the research method used in this reseach was the purposive sampling method and the sample used was 32 companies in the research period for 4 years, so that 128 sample data were obtained. the method used is multiple linear regression analysis using the help of microsoft excel 2010 and spss (statistical package for social sciences) version 23.0 with the stepwise method. the results of this research are: (a) current ratio partially has no effect on stock price, (b) debt to equity ratio partially has no effect on stock price, (c) earning per share partially has a effect on stock price, (d) current ratio, debt to equity ratio and earning per share simultaneously effect on stock price. keywords current ratio, debt to equity ratio, earning per share, stock price jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 8 18 next, to measure the solvency ratio in this study using debt to equity ratio which illustrates the ratio between total debt with total equity of the company. empirical evidence that shows that debt to equity ratio has a positive effect on stock price comes from research by bahri & darmayanti (2017). but the results of research from sari & hakim (2017) show that debt to equity ratio has no significantly influence stock price. then earning per share is the ratio obtained from profits obtained from shareholders, where the level of earnings shows that the company generates the profits needed by the market. from research conducted by panuntas, etc (2018) states that earning per share has a significant effect on stock price. according to hery (2015) in theory, if the value of earning per share is large, it will provide a large profit for investors, so that it can make investors interested in buying shares. stock price stock price is a measure of a company's performance index, which is how far management manages the company on behalf of shareholders. the measurement of this stock price variable is the average closing price of each company obtained from the share price at the end of the month period (murdhaningih, mulyadi and adi wiratno, 2018). current ratio (cr) according to (supriyadi and sunarmi 2018), the current ratio is the ratio used to measure the current assets of a company in paying off its short-term liabilities. if a company is liquid, the prospects for doing business in the future are better. that way, investors will be interested to invest their capital in the company. this of course can also affect the increase in stock prices. current ratio can be measured by the formula: urr nt ss t urr nt l t s debt to equity ratio (der) according to nugraha and sudaryanto (2016), der is a ratio that can consider the debt and equity requirements of a company to investors. a high der indicates that the company has high debt, so investors will reconsider the company's shares. the higher the der from the company, the higher the demand. this can happen because, der can provide complete information about the company's debt and equity, making investors avoid and not interested in companies that have high der values. der itself can be measured by the following formula: ot l ot l qu t earning per share (eps) according to watung and ilat (2016), in stock trading, investors always prioritize to see the development or growth of earning per share of a company so that earning per share can affect the rise and fall of stock price. earning per share can be measured by the following formula: rn n t r um r o r s utst n n earnings per share is the ratio used to measure the success of management in achieving profits for shareholders. when the value of this ratio is low, it means that management has still not succeeded in achieving profits for shareholders, instead opposing the high ratio value, the shareholders' wealth will continue to increase (kasmir, 2012: 207). conceptual framework this is the conceptual framework in this research : h1 h2 h3 h4 figure 1. conceptual framework research hypothesis this is the hypothesis in this research : h1: current ratio significant effect on stock price h2: debt to equity ratio significant effect on stock price earning per share debt to equity ratio current ratio stock price jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 8 18 h3: earning per share significant effect on stock price h4: current ratio, debt to equity ratio and earnings per share simultaneously effect on stock price research methods this type of research method is quantitative research. the type of data used in this study is secondary data. according to (sugiyono, 2014: 225), secondary data is a source of data that is not directly given to researchers. secondary data comes from the financial statements of sub sector property and real estate companies listed on the indonesian stock exchange (website: www.idx.co.id). the sampling technique used in this research was purposive sampling. according to (sugiyono, 2013: 85), purposive sampling is a technique in determining samples with certain criteria. in this research, the criteria set are companies listed on the indonesian stock exchange from 2015-2018 period. companies that publish consecutive financial statements from 2015-2018 period. companies that received an earning after tax from 2015-2018 period. based on the above criteria, the number of sample in this research were 32 companies in the last 4 years period 2015-2018, so the total sample selection of this research was 128 samples. data analysis technique normality test data normality test aims to test whether in the regression model, the dependent variable and independent variables both have normal data distribution or not. a more reliable method is to look at the normality probability plot which compares the cumulative distribution from the normal distribution. if the data spreads around the diagonal line and follows the direction of the diagonal line or the histogram graph shows a normal distribution pattern, then the regression model meets the normality assumption. according to (ghozali, 2016: 156-158), other than that the normality test can be seen in the kolmogorov-smirnov test, where the guidelines used in making this decision are if the significant value > 0.05 then the normal distribution and if the significant value < 0.05 then the distribution is not normal. multicollinearity test according to (ghozali, 2016: 103-104), if there are independent variables that have a tolerance value of more than 0.10, the vif value is less than 10, it can be concluded that there is no multicollinearity between the independent variables in the regression model. heteroscedasticity test this test aims to test whether the regression model occurs variance inequality from the residuals of one observation to another. the method used in this research is the scatterplot diagram method. if there are no clear patterns, such as the points spread above and below the number 0 on the y axis, then there is no heteroscedasticity. to detect the presence or absence of heteroscedasticity can also use the park test method. this test is carried out by regressing the independent variable with the lnu2i value. if the significance value between the independent variable and the residual square is more than 0.05, then there is no hetedoscedasticity problem. autocorrelation test according to ghozali (2013: 107), the autocorrelation test aims to test whether in a linear regression model there is a correlation between the error in the period t (being) with an error in the period t 1 (previous). to test it using the durbin watson test with the provisions. if du <d <4 du, then there is no positive and negative autocorrelation. multiple linear regression analysis to determine the effect of the independent variables with the variables used the multiple linear analysis formula as follows: y α + β1x1 + β2x2 + β3x3 + ε the statement as follows: y : stock price α : constanta β1. β2. β3 : regression coefficient x1 : current ratio x1 : debt to equity ratio x1 : earning per share ε : standard error coefficient of determination (r2) according to (ghozali, 2013: 95) the coefficient of determination essentially measures how far the model's ability to explain the variation of the dependent jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 8 18 variable. the coefficient of determination is between zero and one. a small r 2 value means that the ability of independent variables to explain variable variations is very limited. values close to one indicate the independent variables provide almost all the information needed to predict the variation of the dependent variable. simultaneous hypothesis testing (ftest) according to (ghozali, 2013: 171), this test is used to find out whether the independent variables simultaneously has a effect on dependent variable. according (ghozali, 2013: 96) to find out whether the proposed hypothesis is accepted or rejected is done by comparing the calculated fcount with ftable with the provisions of the testing criteria, if fcount ≤ ftable then h0 is accepted and h1 is rejected at α 0.05 n fcount ≥ ftable then h0 is rejected and h1 s cc pt t α 0.05. partial hypothesis testing (t-test) according to (ghozali, 2013: 171) this test is used to determine the effect of each independent variable partially on the dependent variable. according to (ghozali, 2013: 97) this test is done by comparing tcount with ttable, with the provisions of the test criteria, if tcount ≤ ttable or -tcount ≤ ttable then h0 is accepted and h1 s r j ct t α 0.05 n tcount ≥ ttable or -tcount ≥ ttable then h0 is rejected and h1 s cc pt t α 0.05. results and discussion normality test this is the result of graph analysis in the normality test: figure 2. p-plot normality graph figure 2 shows that it can be concluded that the residual data is normally distributed because the points spread in the diagonal line, and follow the direction of the diagonal line, both above and below the diagonal line. based on the table below, it can be seen that the variable shows a significance value of 0.200 > 0.05 which means the data is normally distributed. this can be seen in the asymp.sig value. (2-tailed) 0.200 is greater than 0.05. table 1. kolmogorov-smirnov test one-sample kolmogorov-smirnov test unstandardized residual n 128 normal parameters a,b mean .0000000 std. deviation .50152027 most extreme differences absolute .054 positive .026 negative -.054 test statistic .054 asymp. sig. (2-tailed) .200 c,d a. test distribution is normal. b. calculated from data. c. lilliefors significance correction. d. this is a lower bound of the true significance. multicollinearity test table 2 shows the tolerance value obtained for the variable current ratio is 0.875, the debt to equity ratio variable is 0.868 and the earning per share variable is 0.991. the vif value for the current ratio variable is 1,143, the debt to equity ratio variable is 1,152 and the earnings per share variable is 1,009. it can be concluded that there is no multicollinearity. jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 8 18 table 2. multicollinearity test coefficients a model collinearity statistics tolerance vif 1 (constant) current ratio .875 1.143 debt to equity .868 1.152 earning per share .991 1.009 a. dependent variable: stock price heteroscedasticity test this is the result of graph analysis in the heteroscedasticity test using scatterplot diagram: figure 3. scatterplot graph figure 3 shows that there is no clear pattern, and the points spread above and below the number o on the y axis, then there is no heteroscedasticity. table 3 shows that the significant value of the current ratio variable is 0.138; debt to equity ratio of 0.881; and earnings per share of 0.220. that means that the value of the variable current ratio, debt to equity ratio and earnings per share is greater than 0.05 so it can be concluded that there is no heteroscedasticity problem. table 3. heteroscedasticity test with park test coefficients a model t sig. 1 (constant) -3.696 .000 current ratio -1.505 .138 debt to equity -.150 .881 earning per share 1.239 .220 a. dependent variable: lnu2i autocorrelation test table 4 shows the value of dw = 2,192, du = 1.7596 (where n = 128 samples, k = 3 independent variables), 4-du = 2.2404, then 1.7596 <2.192 <2.2404 (du <d < 4-du). with this it can be concluded that the regression equation model does not contain autocorrelation. table 4. autocorrelation test model summary b model durbin-watson 1 2.192 a. predictors: (constant), earning per share, current ratio, debt to equity b. dependent variable: stock price multiple linear regression analysis the results of multiple linear regression analysis: table 5. results of multiple linear regression analysis coefficients a model unstandardi zed coefficients standardize d coefficients t sig. b std. error beta 1 (constant) 2.63 2 .115 22.95 8 .00 0 current ratio -.053 .022 -.183 -2.422 .01 7 debt to equity .112 .088 .096 1.275 .20 5 earning per share .001 .000 .590 8.336 .00 0 a. dependent variable: stock price jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 8 18 based on table 5, we get the following multiple linear equations: y = 2,632 – 0,053cr + 0,112der + 0,001eps the constant value is 2,632. this constant value indicates that the independent variables, the current ratio, debt to equity ratio, and earnings per share are considered constant or equal to 0, then the value of the stock price increased by 2.632. the current ratio coefficient value is 0,053. this shows that for every one percent increase in the current ratio, the stock price will decrease by -0,053. the debt to equity ratio coefficient value is 0.112. this shows that each increase in debt to equity ratio of one percent, the share price will increase by 0.112. the earning per share coefficient value is 0.001. this shows that each increase in earning per share of one percent, the stock price will increase by 0.112. coefficient of determination (r2) the coefficient of determination results: table 6. results coefficient of determination model summary b model r r square adjusted r square std. error of the estimate 1 .620 a .384 .369 .5075508 a. predictors: (constant), earning per share, current ratio, debt to equity b. dependent variable: stock price based on table 6, the adjusted r square value of 0.369 or 36.9% means that changes in stock price variables can be explained by variations in the current ratio, debt to equity ratio and earnings per share, while the remaining 63.1% is influenced by other factors outside this variable. simultaneous hypothesis testing (ftest) based on the results of data processing with the spss program, the f test results can be obtained as follows: table 7. results of f-test anova a model f sig. 1 regression 25.800 .000 b residual total a. dependent variable: stock price b. predictors: (constant), earning per share, current ratio, debt to equity based on table 7, it can be seen that the fcount result is 25,800 with a significant value of 0,000, while the ftabel value is 2.68 (where n2 (n-k) = 124, n1 (k-1) = 3) with a significant value of 0.05. then the result is fcount> ftable which is 25.800> 2.68 which means that simultaneous current assets, debt to equity ratio and earning per share has a effect on stock price in property and real estate companies for the 2015-2018 period. partial hypothesis testing (t-test) based on the results of data processing with the spss program, the t-test results can be obtained as follows: table 8. results of t-test coefficients a model unstandardi zed coefficients standardize d coefficients t sig. b std. error beta 1 (constant) 2.63 2 .115 22.95 8 .00 0 current ratio -.053 .022 -.183 -2.422 .01 7 debt to equity .112 .088 .096 1.275 .20 5 earning per share .001 .000 .590 8.336 .00 0 a. dependent variable: stock price current ratio variable has a tcount of -2.422 with a significant value of 0.017. while the table is 1.97928 with a significant value of 0.05. thus the ttable> tcount is -2.422 <1.97928, so that the partial current ratio has no effect on stock price of the property and real estate jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 8 18 sub sector in the indonesian stock exchange for the 2015-2018 period. the debt to equity ratio variable has a tcount of 1.275 with a significant value of 0.205. while the ttable is 1.97928 with a significant value of 0.05. thus the ttable> tcount is 1.275 <1.97928, so that the partial debt to equity ratio has no effect on stock price of the property and real estate sub sector in the indonesian stock exchange for the 20152018 period. earning per share variable has a tcount of 8.336 with a significant value of 0.000, while a ttable is 1.97928 with a significant value of 0.05. thus the ttable> tcount is 8.336> 1.97928, so that the partial earning per share has a positive and significant effect on stock price of the property and real estate sub sector in the indonesian stock exchange for the 20152018 period. effect of current ratio on stock price current ratio partially has an insignificant negative effect on the stock prices of the property and real estate sub sector in the indonesian stock exchange for the 20152018 period. (rusli, and friends 2011), stated that the current ratio as a measure of the company's liquid level has limitations. one of them is the management can take a certain step to make the statement of its financial position looks good so as to produce a good current ratio value. given this possibility, of course, investors will be very careful in choosing this ratio. that way, the current ratio has no effect on stock price. the results of this study are consistent with the research of murdhaningsih, and friends (2018) which states that the current ratio partially has a negative and significant effect on stock price. however, the results of this study are not in accordance with the research of (supriyadi and sunarmi, 2018) which states that the current ratio has a significant effect on stock price. this means the company has a high level of liquidity. then the company is able to pay off its short-term debt. if from the beginning the company has been liquid, the company will likely continue to run its business bigger and better prospects for the future. if the company has good prospects, this will certainly affect rising stock price. the effect of debt to equity ratio on stock price debt to equity ratio partially has no significant effect on stock price of the property and real estate sub sector in the indonesian stock exchange for the 20152018 period. the results of this study are in accordance with research by wangarry and friends (2015), which states that high debt will cause the company to have a high risk as well. so this will make investors become not interested in the company. high debt will reduce stock price. but the results of this study are not in accordance with the research of tumandung, and friends (2017), which states that the debt to equity ratio has a significant effect on stock prices. this means that if der increases, it can increase stock prices. der is the ratio of the ratio of debt to equity. ratio one shows the amount of debt equal to equity. the higher this ratio the higher the risk of bankruptcy of a company. this ratio is widely used to see the prospects of the company so that the company's stock price is possible to be stable and can rise so that investors are interested in investing their capital in the company. effect of earning per share on stock price earning per share partially has a positive and significant effect on the stock prices of the property and real estate sub sector in the indonesian stock exchange for the 20152018 period. the results of this research are consistent with sari and hakim's research (2017), which states that earning per share has a significant on stock price. if the value of earning per share of a company is high, this will indicate that the company has a high level of net profit capability. so this will have a positive impact on the company because of course investors will be interested in the shares of the company. but the results of this research are not in accordance with the research of rahmadewi and abundanti (2018), which states that earnings per share has no significant effect on stock price. this means that not all investors see the value of earning per share as a consideration in buying shares. in this case it can be concluded that the value of earning per share does not always has an effect on stock price. so that earning per share has no significant effect. jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 8 18 conclusion based on research, the conclusion is as follows: (1) partially the current ratio does not has a significant negative effect on stock price of the property and real estate sub sector in the indonesian stock exchange period 2015 – 2018; (2) partially the debt to equity ratio does not significantly influence the stock price of the property and real estate sub sector in indonesia stock exchange period 2015 – 2018; (3) partially earning per share has a positive and significant effect on stock price of the property and real estate sub sector in the indonesian stock exchange period 2015 – 2018; (4) simultaneously current ratio, debt to equity ratio, and earning per share has a effect on stock price of the property and real estate sub sector on the indonesian stock exchange for the period 2015 2018. the results of the determination coefficient of 0.557 or 55.7%, it can be concluded that the stock price variable can be explained by the variable current ratio, debt to equity ratio, and earning per share and the remaining 44.3% is influenced by other variables t it was not explained in this study. references arifin, nita fitriani dan silviana agustami. 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(2011). pengaruh likuiditas dan profitabilitas terhadap harga saham perusahaan manufaktur yang terdaftar di bursa efek indonesia. jurnal bisnis manajemen dan ekonomi, volume 10, no. 2, mei 2011, hal. 2671-2684 issn: 16938305. safitri, (2016). pengaruh per, roa, dan der terhadap harga saham pada perusahaan sub sektor lembaga pembiayaan di bursa efek indonesia. ejournal administrasi bisnis, 2016, 4 (2): 535-549 issn 2355-5408. sanusi, anwar. (2012). metodologi penelitian bisnis. jakarta: salemba empat. sari, h., z., & astrid dita m., h. (2017). pengaruh current ratio (cr), return on equity (roe), debt to equity ratio (der), dan earning per share (eps) terhadap harga saham (pada perusahaan sub sektor property dan real estate di bursa efek indonesia (bei) periode 2011-2015). jurnal ekonomika dan manajemen vol. 6 no. 2 oktober 2017. issn: 2252-6226. sondakh, f., parengkuan t., & marjam m. (2015). current ratio, debt to equity ratio, return on asset, return on equity pengaruhnya terhadap harga saham pada indeks lq 45 di bei periode 20102014. jurnal emba 749 vol.3 no.2 juni 2015, hal. 749-756. issn 2303-1174. sputra, puput rarindra adi. (2015). pengaruh per eps roa dan der terhadap harga saham lq45 di bursa efek indonesia. ejournal administrasi bisnis, 2015, 3 (1): 4054. issn 2355-5408. sugiyono. (2014). metode penelitian pendidikan pendekatan kuantitatif, kualitatif dan r&d. bandung: alfabeta. supriyadi, stevanus gatot dan sunarmi. (2018). pengaruh current ratio (cr), debt to assets ratio (dar), earning per share (eps), dividen payout ratio (dpr) terhadap harga saham pada perusahaan manufaktur sektor barang konsumsi yang terdaftar di bursa efek indonesia periode 2010-2014. jurnal education and economics (jee), vol.01, no.04, hal 450 – 463, issn: 2654-9808. universitas kahuripan kediri, jawa timur. tumandung, c., o., sri m. & dedy n. b. (2017). analisis pengaruh kinerja keuangan terhadap harga saham pada perusahaan makanan dan minuman yang terdaftar di bei periode 2011 – 2015. jurnal emba vol.5 no.2 juni 2017, hal. 1728–1737. issn 2303-1174. valintino, reynald dan lana sularto. (2013). pengaruh return on asset (roa), current ratio (cr), return on equity (roe), debt to equity ratio (der), dan earning per share (eps) terhadap harga saham perusahaan manufaktur sektor industri barang konsumsi di bei. proceeding pesat (psikologi, ekonomi, sastra, arsitektur & teknik sipil). vol.5, oktober 2013. wangarry, a., r., agus t. p., treesje r. (2015). pengaruh tingkat return on investment (roi), net profit margin (npm), dan debt to equity ratio (der) terhadap harga saham perbankan di bursa efek indonesia (bei). jurnal emba 470 vol.3 no.4 desember 2015, hal. 470-477. issn 23031174. watung, rosdian w., & ventje ilat. (2016). pengaruh return on asset (roa), net profit margin (npm), dan earning per share (eps) terhadap harga saham pada perusahaan perbankan di bursa efek indonesia periode 2011-2015. jurnal emba vol.4 no.2 juni 2016, hal. 518-529. issn 2303-1174. wulandari, anis, f., k., & siti l., kamalia. (2015). pengaruh net profit margin, return on assets, return on equity, earning pershare, debt to equity ratio, price earning ratio terhadap harga saham jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 8 18 pada perusahaan sektor property dan real estate di bursa efek indonesia (bei) tahun 2009-2013. jurnal kompilek vol. 7 no. 2 desember 2015. issn 2088-6268. correspondence to : wita.ramadhanti@unsoed.ac.id received: march, 12, 2020 accepted: march, 21, 2020 published: march, 30, 2020 jurnal akuntansi, manajemen dan ekonomi vol 22, no 1, pp 21-27 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction agency theory stated that there will be a problem between shareholder and debt holder as principal and top management as agent (jensen and meckling, 1976; myers, 1977). this conditions perhaps will be differences in the stated owned enterprises where government acts as the majorities shareholder as well as creditor. there are many problems in indonesian bumn. astami et al., (2010) study shows that private sector ownership having higher level performance than government owned. second, apriliyani and cristiansen (2019) interview concluded that there are practice of collective conservatism, reciprocal opportunism, and corruption in bumn. overall musallam (2020) concludes that the higher government ownership, the higher agency cost in the companies. although there are some problem in indonesian government owned enterprises, there are still some good points in it. fu et al. (2017) empirical results shows that the higher government ownership, the easier for a company to get loan from government banks. liem (2019) stated that government bank in indonesia are efficient. this conditions can maintain bumn good financial conditions. duygun et al. (2018) research conclude that state owned enterprises pay more dividend than the private ones. this condition is important for investor to consider bumn in their portfolio. there are many research that government ownership have impact on earnings management. doan et al. (2019) stated that the higher government ownership will leads to higher income smoothing behavior. the higher government ownership means the higher political connection that makes the higher income smoothing (tee, 2020). positive accounting theory is best to explaining the determinant factors that have impact in earnings management using its bonus plan, debt covenant, and political cost hypothesis (watts and zimmerman, 1986). based on this theory, this research intended to test three things. first, whether stock values have effect on income smoothing (bonus plan hypothesis). second, testing for the effect of bond value on income smoothing (debt covenant hypothesis). third, finding empirical evidence for income smoothing affected by companies’ size (political cost hypothesis). difference from previous research is as follows. previous research were mostly using ordinary least square regression, while this research is using using logistic regression. debt variable in other research usually using leverage (lee and choi, 2016; and tee, 2020) or loan (vasilakopoulos et al., 2018, osma et al., 2019, and ozili, 2019), but this research is used bond returns. income smoothing in indonesian state owned enterprises wita ramadhanti faculty of economics and business , universitas jenderal soedirman , abstract this research is intended to know whether indonesian state owned enterprises (bumn or badan usaha milik negara) having income smoothing pattern. this study also testing the determinant factors for income smoothing behavior. positive accounting theory is used with its three hypothesis: bonus plan, debt covenant, and political cost. the samples are bumn that listed in indonesian stock exchange in 2018 which issued completed audited financial statements from 2010-2018. data then analyzed using logistic regression. the results shows that stock values, bond values, and company size have positive effect on income smoothing practice. the results is consistent with positive accounting theory’s hypothesis of bonus plan, debt covenant, and political costs hypothesis. keywords bumn, income smoothing, positive accounting theory jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 21-27 theory and hypothesis development agency theory stated that there are parties in corporation, owner as principal and director as agent. there always be conflict of interest between agent’s utility maximization behavior and principal’s needs for increasing firm value, and there are mitigated by a good compensation schemes for manager (jensen and meckling, 1976). agency relationship developed further, not only between owner and top executive but also between debt holder and directors (myers, 1977). in order to solve this problems, there will be debt covenant to force manager for creating a good company’s performance (defond and jiambalvo, 1994). top executives try to fulfill owner and debt holder expectation using earnings management in financial reports. earnings management are the action of management through financial statement in form of income increasing, income smoothing, income decreasing, and taking a bath according to impression that they want to achieve for external users (scott, 2015). there are several method to predict earnings management behavior. first, income smoothing (eckel, 1981). this method is try to see whether company want to gave impression of stable growth from time to time. a stable companies’ income is seen to be a good company rather than fluctuated ones. second, discretionary accruals method (jones, 1991). financial statements using accruals method have element that depend on management’s accounting policy that called as discretionary accruals. this is consistent with element such as choice of accounting method, other accounting estimation and judgement favoured by directors. third, real earnings management. this method try to prove that top management not only manage expectation of principal from accounting numbers, but also with the real action. the three elements of real earnings management are operating cash flows abnormal, discretionary expenses abnormal, also production expenses as sum of cost of goods sold and inventories changes (roychowdury, 2006; and cohen and zarowin, 2010). according to eckel (1981), income smoothing not only coming from manager intention but also can be natural ones. hence, if it is intentionally happen it can be artificial or real smoothing. artificial means that agent only manage it through accounting numbers, but for real smoothing management really using firms real activities to creates that (shubita, 2015). positive accounting theory proposed the motivation for directors for doing earnings management behavior. it has three hypothesis, that is bonus plan hypothesis, debt covenant violation, and political costs hypothesis (watts and zimmerman, 1986). bonus plan hypothesis stated that agent tend to do earnings management behavior to optimizing their compensation (watts and zimmerman, 1986). empirical research by meek et al. (2007) shows that equity compensation in the bonus plan having effect on earnings management behavior. this is consistent with henry (2010) statement that stock option equity compensation in the bonus plan induce manager to do income smoothing. stock option will increase managerial ownership, hence managerial ownership have effect in income smoothing (habib & jiang, 2012). the stock price in the market having effect in income smoothing behavior in african banks (ozili, 2017). stock returns also having effect in earnings management in china (madjeed et al., 2018). based on theory and previous research, the first hypothesis in this research is: h1: stock value have effects on income smoothing debt covenant violation hypothesis stated that managers tend to manage earnings to attain credit contract ratio (defond and jiambalvo, 1994). lee and choi (2016) stated that debt structure having effect on earnings management. in the case of bank, loan structure have impact on income smoothing (vasilakopoulos et al., 2018; osma et al., 2019; ozili, 2019; ). tee (2020) study resulted that debt structure have impact on income smoothing. in this research bond value is used as debt structures proxies, hence the second hypothesis of this research is: h2: bond value have effect on income smoothing political cost hypothesis stated that the bigger companies’ size, the higher their political cost (watts and zimmerman, 1986). political cost come from companies’ stakeholders such as government taking higher taxes and more regulations, labor union asking for higher wages, and society asking for more donation. hence, the bigger company jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 21-27 size also means that it has more credibility than smaller ones. bigger companies having incentives for doing income smoothing to maintain their credibility. previous research stated that size is an important income smoothing determinant factor (lee and choi, 2016; safdar and yan, 2016; doan et al., 2019; ozili, 2019; and tee, 2020). based on that, the third hypothesis of this study is: h3: size have effect on income smoothing research method this is a quantitative research using archival study. the secondary data are taken from financial and annual reports of bumn that listed in indonesian stock exchange. the purposive sampling procedure are as follows. first, bumns are listed in indonesian stock exchange during 2018. the bumns published completed audited financial statements during 2010-2018. there are dependent and independent variables as follows. dependent variable is income smoothing using eckel index (eckel, 1979; shubita, 2015) with formula cvδi/cvδs. cv formula is standard deviation per mean. δi is net income year t deducted with income year t-1. δs is the differences between sales year t and t-1. the eckel index then converted into dummy, “0” for non income smoothing (eckel index <1) and “1” for income smoothing (eckel index ≥ 1). there are 3 independent variables. first, share returns. share returns is measured using earnings per share (ep). the formula for ep is primary eps before extraordinary items per share closing price (goel, 2016). second, bond returns as representation of the debt in capital structure. bond returns is calculated with formula bond returns this year less with bond returns previous year plus bond coupon that year inflated by bond price previous year (modified from aboody et al., 2014). third, company size. size is calculated using natural logarithm of total assets (goel 2016). data then analyzed using logistics regression. the logistics regression model is: ln(is/1-is) = α + β1ep + β2br + β3size + ξ notes: ln(is/1-is) : income smoothing (dummy “1” for is, “0” for non is) α : constant β1-3 : regression coefficients ep : earnings per share br : bond return size : natural logarithm of total asset ξ : error. results & discussions sample descriptions there are 20 government companies that listed in indonesian stock exchange during 2018. based on analysis, 12 firms matches with income smoothing patterns. using data from 2011-2018 make the total pooling data for analysis 160 firm years. the sample categorical process can be seen in table 1. table 1. income smoothing categories categories firm year pooling data income smoothing 12 8 96 non income smoothing 8 8 64 total 20 160 sources: data analysis there are 4 variables, 1 dependent variable and 3 independents variables. dependent variable is dummy eckel index (ei). eckel index before converted into dummy categories (1 for income smoother and 0 for non) having minimum value -172.10, maximum value 1.84, mean -7.70, and standard deviation 37.85. independent variables are price earnings (pe), bond return (br), and natural logarithm of total assets (lna). pe values are minimum -0.05, maximum 4.86, mean 0.22, and sd 0.43. br having mean 0.11 with sd 0.13, and ranges between 0.00 0.79. lna values ranges between 27.74 up to 32.19 with 31.02 mean and 1.02 sd. the complete results of descriptive statistics are in table 2. table 2. descriptive statistics min max mean st. deviation pe -0.05 4.86 0.22 0.43 br 0.00 0.79 0.11 0.13 lna 27.74 32.19 31.02 1.02 ei -172.10 1.84 -7.70 37.85 n = 160 sources: data analysis jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 21-27 multicollinearity test multicollinearity test results can be seen in table. price earning (pe) and bond return (br) correlation is 0.135 (<0.5). price earning (pe) and natural logarithm of total asset (lna) correlation is 0.267 (<0.5). bond return and natural logarithm of total asset is 0.172 (<0.5). since all correllation are less than 0.5 (0.5), it means that is no multicollinearity problem in the model (hair et al., 2019). table 3. multicollinearity test results variables pe br lna pe 1.000 0.135 0.267 br 0.135 1.000 0.172 lna 0.267 0.172 1.000 *correlation between variables <0.5 sources: data analysis logistics regression analysis logistics regression analysis is consist of assessing overall model fit and hypothesis testing. the results is as follows. model fit three step for assessing model fit are by checking statistical measure goodness of fit, pseudo r2 measures, and classification accuracy (hair et al., 2019). the complete testing research will be discussed below. goodness of fit model the goodness of fit model can be seen by the difference between -2 log likelihood initial and ending and hosmer and lemeshow test.first, -2 log likelihood is increased 64.253 from beginning to ending. it means that model fit. table 4 shows the differences of -2 log likelihood. table 4. difference of -2 log likelihood -2 log likelihood initial 215.364 -2 log likelihood ending 151.111 64.253 sources: data analysis the second step of model fit test is using hosmer and lemeshow χ2 tests are used the see the significance of actual and predicted results of the model. hair et al. (2019). the results in table 5 shows that hosmer and lemeshow χ2 value is 7.922 with df = 8 and significance 0.441 (>0.05), it means that this model is fit (hosmer and lemeshow, 2013). table 5. hosmer and lemeshow tests results value df significance hosmer and lemeshow χ2 7.922 8 0.441* *accepted (significance > 0.05) sources: data analysis pseudo r2 pseudo r2 are tested using cox & snell r2 and also nagelkerke r2. cox & snell r2 value is 0.331. nagelkerke r2 value is 0.447. overall the independent variables in this model can explain 33.1% up to 44.7% income smoothing motivations. the results can be seen in table 6. table 6. pseudo r2 results pseudo r2 value cox & snell r2 0.331 nagelkerke r2 0.447 sources: data analysis classification accuracy classification accuracy results shows that the model can accurately income smoothing companies 80.2 % comparing to non income smoothing 60.9%. hence, the total percentage correct for the model 72.5% more than 50% cut off point can be seen as a good model. table 7. classification accuracy results observ ed predicted percent age correct non income smooth ing (0) income smooth ing (1) non income smooth ing (0) 39 25 60.9 income smooth ing (1) 19 77 80.2 overall percentage 72.5 sources: data analysis hypothesis testing hypothesis testing result can be seen in table 8. the results show as follows. table 8. hypothesis testing results jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 21-27 variables beta p value notes constant 58.324 0.000 pe 1.296 0.011 h1 accepted br 6.038 0.003 h2 accepted lna 1.858 0.000 h3 accepted sources: data analysis first, price earning (pe) having beta 1.296 and p value 0.011 (<0.05 two tails), it means that hypothesis 1 is accepted. price earning have influence on the likelihood of income smoothing. second, bond return (br) beta is 6.038 with p value 0.003 (<0.05 two tails) accepting hypothesis 2. bond returns can be use to predicted the income smoothing probability. third, lna value is 1.858 and p value 0.000 (<0.05 two tails) explain that hypothesis 3 is accepted. thus, size have effect on income smoothing probability. discussion based on statistical testing shows that price earnings as shareholder value has positive effect on income smoothing. this is consistent with bonus plan hypothesis (watts and zimmerman, 1986). this is also inline with research by ozili (2017) and (madjid et al., 2018). debt have effect on income smoothing. the higher bond return, the more income increasing likely to be happened. debt covenant hypothesis (defond and jiambalvo, 1994) is applied in this situation. this is consistent with previous study (lee and choi, 2016; vasilakopoulos et al., 2018; osma et al., 2019; ozili, 2019; also tee, 2020). the higher company size the more probability of income smoothing happened. the higher the companies size, manager have incentive to maintain its credibility. this is consistent with political cost hypothesis (watts and zimmerman, 1986), but there still open to discussion. if political cost hypothesis strongly suggest that the higher company size, the higher chance for the company to do income decreasing behavior. hence this positive effect of company size to income increasing pattern means the results is more consistent with bonus plan hypothesis. since the true owner of state owned enterprise more dependent of their business on political condition than its true performance, the bumn executive try to maximize their bonus. overall results shows that majority of the bumn is doing income smoothing by continuously reported income increasing pattern in their financial reports. overall results shows that most of the results consistent with positive accounting theory. among this theory three hypothesis, bonus plan is the best one to explain income smoothing behavior in indonesia state owned enterprises. conclusions conclusion from this research is as follows. first, the higher stock value of a bumn company, the more likely they will engage on income smoothing. second, bond value have positive effect on income smoothing. third, the bigger bumn size the more likely income smoothing happen. the accurate level of prediction from the model is 72,5%. this model are using only 20 bumn and 3 independent variables to predict income smoothing behavior. further research can use more entity and more independent variables in order to increased the accuracy of the model. further research may have to examine whether there are executive stock option on bumn, if it is unclear then regulator have to make mandatory disclosure in annual reports for this parts. this to be clear the details how mechanism that makes bonus plan hypothesis in state owned enterprises in order to increase bumn good corporate governance. references aboody, david, john s. hughes, and n. bugra ozel. 2014, corporate bond returns and the financial crisis. journal of banking & finance 40, pp. 42–53. http://dx.doi.org/10.1016/j.jbankfin.201 3.11.012 apriliyani, indri dwi and stein oluf cristiansen. 2019. the logics of political business in state owned enterprises: the case of indonesia. international journal of emerging markets. jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 21-27 https://doi.org/10.1108/ijoem-082018-0433 astami, emita w., greg tower, rusmin rusmin, and john neilson. 2010. the effect of privatisation on performance of state-owned-enterprises in indonesia. asian review of accounting, vol. 18 iss 1, pp. 5-19. http://dx.doi.org/10.1108/13217341011 045971 cohen, d. a. dan p. zarowin. 2010. accrualbased and real earnings management activities around seasoned equity offerings. journal of accounting and economics 50, pp. 2-19. defond, m. l. dan j. jiambalvo. 1994. debt covenant violation and manipulation of accruals. journal of accounting and economics 17, pp. 145-176. doan, anh-tuan, kun-li lin, and shuh-chyi doong. 2019. state-controlled banks and income smoothing. do politics matter? the north american journal of economics and finance. https://doi.org/10.1016/j.najef.2019.10 1057 duygun, meryem, yilmaz guney, and abdul moin. 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pp.12-19 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction change has happened to be a customary event in organizations because of the quick general public and economic changes. organizational change in public sector is usually termed as reform. pollitt and bouckaert (2004) described public management reform as “deliberate changes to the structures and processes of public sector organizations with the objective of getting them to run better.” due to the new challenges in improving quality of education, higher education institutes in ethiopia are under pressure for restructuring and reforming (daryush, mehran & heydar, 2008). in order to make these efforts fruitful, different change initiatives (e.g. active learning, modularization, change army, kaizen) and performance management tools like balanced scorecard have been on implementation in higher education institutions. however, prior study has generally recognized that considerable number of organizational change initiatives neither brought about their planned objectives nor advance persistent change due to an execution failure (kotter, 1995 as cited in choi, 2011). research suggests that the failure of organizational change initiatives can generally be attributed to negative employee attitudes towards the change during implementation process (bellou, 2007; coetsee 1999; durmaz 2007 as cited in visagie &steyn, 2011). studies have also indicated the failure during change implementation attempt due to undervaluing of the crucial position of individuals in the change practices (choi, 2011). to make a change to happen in varies organizational contexts, in higher education in particular, individuals must change. this is because individuals, i.e., employees as the target of change, their perceptions, expertise, drives and basic understanding form a considerable element of the workplaces where changes are going to take place (smith, 2005 as cited in alfonsus, 2008). in this regard, beside change initiative implementation attempt, identification of employees’ attitude toward change initiatives and conditions that are commitment and job satisfaction affect attitude of employees towards change initiatives? an examination of higher education institutions in ethiopia megersa wedajo motuma 1, belay chekole 2 1,2management, college of business and economics, jimma university ethiopia abstract this study aimed at examining the influence of organizational commitment and job satisfaction on attitudes of employees toward change initiatives in selected public universities in ethiopia. self-administered questionnaires were prepared and distributed to 200 randomly selected teachers in selected universities via e-mail addresses. by using the average score of three scales, correlation and regression analysis was made to see the relationship and influences of commitment and job satisfaction. the findings revealed that employees` general attitude towards change initiatives is influenced by job satisfaction (p<0.05). however, it did not indicate the significant influence of employees` commitment to the attitude of employees regarding change initiatives (p>0.05). these imply that job satisfaction may play a greater role in shaping the attitude of employees to change initiatives than organizational commitment. from the results, we recommend that leaders focus on things that can enhance job satisfaction during the implementation of change initiatives. keywords change initiatives, attitude towards change, organizational commitment, job satisfaction, higher education institutions journal of accounting management and economics , vol. 23., no. 02, year 2020, pp. 12.-19 indicate employees’ support for organizational change are very important. studies have demonstrated various antecedents to particular organizational change programs (deloitte &touche, 1996 as cited in vakola and nikolaou, 2005). the basic reason of failure in change program is due to unconstructive perception of employees towards change. as part of public reform evaluation , study has been conducted by civil service transformation research center in 2012.it has indicated a limited success mainly because of the attitudes of the people in general and the civil servant in particular. besides, it is less exhaustive in nature, this study did not indicate the reason why the attitudes` of people toward those change initiatives is negative. research scholars had confirmed challenges in executing and leading organizational change endeavors usually result in organizational catastrophes (probst & raisch, 2005). because of this, great consideration has been given to investigating the determinant that increases the probability of effectively realizing organizational change endeavors. studies on organizational change have examined attitude toward change in connection to stage of commitment and job satisfaction under different public organizations` context (roderick, 2006; alireza, 2014; alfonsus, 2008; vakola and nikolaou, 2005. committed employees are voluntary to exert more energy in change initiatives and, hence there will be high likelihood of developing constructive attitudes towards change (iverson, 1996). in addition to commitment, level of job satisfaction has been considered the most important factor that influences employees’ acceptance of organizational change. according to spector (1997), employees stay or leave their organization depending on how much they are satisfied with their job. however, limited studies have examined those variables in public higher education setting in ethiopia. thus, by framing our inquiry in to organizational management perspective, the aims of this research are to investigate the role of organization commitment and job satisfaction in shaping the attitude of employees in selected public universities. theoretical review kanter (1992) described change as “the crystallization of new possibilities (new policies, new behaviors, new patterns, new methodologies, new products or new market ideas) based on the reconceptalized patterns in the institution”. attitudes toward organizational change elias (2009) defined attitudes toward organizational change as “an employee’s overall positive or negative evaluative judgment of a change initiative implemented by their organization.” though change is a common agenda for today’s modern organization, its success can be affected by different factors. according to damanpour (1991), leaders’ outlook to change governs worker involvement and the successful advancement of programs of change. further,, one causes for the lack of success in majority of change initiatives are people`s struggle against change (bovey & hede, 2001). these information alone rationalize the need for examination of individual`s cognitive development as an element of organizational change. the relationship of attitude towards organizational change and organizational commitment in his study iverson (1996) revealed that employee getting in to change process is grown by organizational commitment. lau and woodman (1995) also demonstrated that a well dedicated individual is more agreeable to acknowledge organizational change when it seems to be advantageous. however, studies are also shown that a well devoted employees may refuse to accept change if perceived the change as a threat for their personal gain. these indicate the possibility of organizational commitment effect on attitudes to organizational change initiatives. furthermore, employees committed to their organizations are more voluntary to engage in a change processes and, consequently, there is a high likelihood to develop positive attitudes (iverson, 1996). job satisfaction and attitude towards organizational change locke (1976) defined job satisfaction as “the extent to which an employee feels positively or negatively toward his/her jobs”. many researchers have identified the association of job satisfaction and attitudes to change. yousef (2000a) confirmed that journal of accounting management and economics , vol. 23., no. 02, year 2020, pp. 12.-19 positive perception toward change in general rose with the boost of satisfaction due to compensation. there is more acceptance of change if employees satisfied with diverse aspects of their job and absence of extrinsic job satisfaction were linked with poor attitudes toward change (darwish, 1999). empirical review this study is aimed at examining the influence of organizational commitment and job satisfaction on general attitudes of employees towards change initiatives. to achieve these purposes we critically reviewed some related empirical studies hereunder. carlo (2012) has conducted a study to identify how employees perceived the change process affects them. the findings indicated that employees were not pleased with the change course of actions being executed. the study also presented the solutions suggested by employee including introduction of the urgency and requirement of the change in straightforward terms; set up a change leadership management team consists of truthful workforces with good technical and interpersonal relationships skills; with managerial position; and best strategies. study conducted by kleanthis (2014) and his friends explored the perceptions of employee about suitability of change at the time of intended change under hospital setting. the results indicated a considerable raise in attitudes of employees towards aptness of change once the deliberate change realization. this result also indicated that variations in the above attitudes are moderated by job satisfaction. conceptual frame-work despite positive contributions, the studies reviewed above have some limitations. first, the inconsistencies of the findings with regard to which factors affect employee attitudes and the role of leaders during implementation of change. second, regarding the effect of employees commitment and job satisfaction on employees’ attitude studies were very limited. moreover, almost all studies were conducted out of higher education setting. therefore, the current study filled the gap in literature by examining the attitude of employees toward change initiatives in general, and the role commitment and jobs satisfaction playing in shaping the attitudes using the following conceptual framework. figure 1. conceptual model of the research methods target population the target population for this research was employees who were engaged in teaching duties at least for one year in three public universities. sampling method and sample size from those three universities, 200 employees were randomly selected from the lists of about 3000 academic staffs and were distributed with self-administered questionnaire. about 121 questionnaires were returned resulting in 60% response rate. the number of samples was determined based on the guideline proposed by carvalho (1984). he proposed 200 samples for the study population in the range of 1201-3200 people. instrument development and data collection three self-administered instruments were distributed to collect cross-sectional data. online survey was sent to participants` e-mail through google form. respondents were requested to show the degree to which they agree with every statements (items) on a five point likert scale. the average of the items was used for further analysis. attitude towards change (atc): attitude towards change was measured with instrument of attitude toward change developed by dunham et al. (1989). atc measures employees’ attitude in relation to recent organizational change initiatives. the scale consists of 18 items that are measured using a five point likert-type scale where strongly disagree (1) to strongly agree (5) and reversed if the item is stated negatively. organizational commitment (oc): to measure oc, nine general commitment scales were adopted from the three-component model of meyer and natalie (2004). the scales were measured using a five point likert-type scale where strongly disagree (1) to strongly agree (5) and reversed if the item is stated negatively. organizational commitment job satisfaction attitude towards change initiatives journal of accounting management and economics , vol. 23., no. 02, year 2020, pp. 12.-19 job satisfaction (js): three items were taken from michigan organizational assessment package. these items are measured using a likert scale categorized as highly dissatisfied to highly satisfied. model specification since the purposes of the study is to identify if two independents variables (i.e. organizational commitment and job satisfaction) shape dependent variable (i.e. general attitude of employees towards change).so to create the linear relationship between the dependent and independent variables, multiple linear regression model were used as follows. yi= β0+ βixi+ ei (1) where, yi=is the value of the dependent scale variable. β0 =the intercept of regression equation βi =the coefficient of each independent variables xi= the values of the predictors ei=the error term hence, it follows, atc= β0+ β1oc+ β2 js (2) where, β0= the value when the value of predictor is equal to 0. β1,2 = the coefficient of oc &js atc=employees` attitude towards change (dependent variable) oc=organizational commitment (independent variable) js=job satisfaction (independent variable) data analysis descriptive analysis was performed using the average of attitudes towards change scale to determine if the attitude is favorable or unfavorable towards change. pearson’s correlation coefficients between all variables were conducted to see the strength of correlations. in order to identify the effect of independent variables on dependent variable, multiple linear regressions will be used. result and discussion data description to give few descriptions about the data based on mean and standard deviation, table i is constructed for the variables. the mean and std. deviation of attitude towards change is 3.48, the highest mean of all and 0.329 respectively. the next highest mean is 2.865 for organizational commitment with 0.348 std. deviation. the smallest mean recorded was for job satisfaction (i.e. 2.929) with std. deviation of 0.424. table 1. descriptive statistics of the variables in order to identify strict internal consistency of scales, cranach’s coefficient was calculated (table i). cranach’s coefficient in all cases was over 0.7 with employees` attitudes scale (0.806), employees’ commitment scale (0.764) and job satisfaction scale (0.810). since the acceptable limits of cronbach’s alpha according to nunnally & bernstein (1994) ranges from 0.60 to 0.80, the items are considered reliable. the influence of commitment and job satisfaction on employees` attitude towards change to see if employees` level of organizational commitment and job satisfaction have a role in shaping attitudes towards change, linear regression analysis was conducted. meanwhile, the second research question of this study is answered. under this topic, statistics that are related to linear regression will be discussed. correlation analysis was made to establish the association among the variables of the study. pearson correlation coefficient was used for this purpose. table 2. correlations *correlation is significant at p value =0.05 as it can be seen in table 2, employees attitude towards change and job satisfaction attitude towards change commit ment job satisfa. pearson correlation attitude towards change 1.000 commitment 0.051 1.000 job satisfa. 0.457 -0.109 1.000 sig. (1tailed) attitude towards change 0.418 0.024 commitment 0.418 0.328 job satisfa. 0.024* 0.328 variables mean std. deviation cronbach 's alpha n attitude towards change 3.488 0.329 0.806 121 commitment 2.865 0.348 0.764 121 job satisfaction 2.929 0.424 0.810 121 valid n (list wise) 121 journal of accounting management and economics , vol. 23., no. 02, year 2020, pp. 12.-19 are significantly related (r=0.457; p<0.05) while statistically insignificant relationships have been found between employees attitude towards change and commitment (r=0.051; p>0.05). next to correlation analysis, multiple linear regression analysis was run to identify if two variables, organizational commitment and job satisfaction affect the current employees` attitude and to model this relationship. before starting regression analysis, collinearity, was tested. as depicted in table 3, collinearity diagnostics were made using tolerance and variance inflation factor. tolerance values that are close to zero and below are showing the possibility of multi-collinearity of the variables. table 3. multi-collinearity test with respect to tolerance, the values are not close to zero. regarding the vif standards, if the value is greater than two, the possibility of multi-collinearity would be evident. the lower these values implied that the predictors are free of multi-collinearity problems. table 4 shows the coefficients of the regression line. as it can be seen, the expected attitude scale value is equal to 2.145+0.097commitmentvalue+0.364jobs satisfaction values. this implies that a unit variation in commitment value causes 0.097 times increase in variation of attitudes values and the value of attitude to change varies by 0.364 times the unit variation of job satisfaction value. this entails that the unit variations of the predictors cause very little variation in employees’ attitude scale. table 4. regression coefficientsa a dependent variable: attitude towards change table 4 shows also the significance levels of coefficients. even though not strong, the significant value of t-test for job satisfaction (p<0.05) shows the contribution of job satisfaction which is substantial in employees` attitude variation. the implication is that the increase in employees’ job satisfaction to their organization increases their attitudes towards change initiatives and vice-versa. this finding is in agreement with lau and woodman (1995) who argued that high satisfaction level of employee on the job they were engaged can enables to predict the acceptance of organizational change. similar to this, darwish (1999) demonstrated the association between lower stages of extrinsic job satisfaction and negative attitudes toward change. cordery et al, (1993) reported the same result that they observed significance interaction between satisfaction and change. thus, to bring effective change, employees' job satisfaction must be assessed initially. further, the insignificant test result is the indication that organizational commitment variable does not contribute much to the model. the implication is that any variation in employee`s job commitment does not result in positive/negative attitudes of employees regarding change initiatives. this finding is inconsistent with the findings of iverson (1996) and guest (1987) who argued that highly committed employees to their organization are most likely develop favorable attitudes for change. iverson (1996) found that employees who are highly attached to their organization most probably accept organizational change. regarding the significance of commitment, lau and woodman (1995) confirmed that the more commitment, the more willingness to shoulder organizational change when it is believed to be beneficial. this finding is inconsistent also with the findings of iverson (1996). he put commitment as a dominant contributing factor of attitudes towards change next to union membership. to check the model fit or its acceptability, analysis of variance was run (table 5).the f statistic shown in the table revealed that the variation explained by the model is due to significant variation in at least one predictor variable not by chance. table 5. anovaab collinearity statistics toleranc e vif commitment 0.988 1.012 job satisfaction 0.988 1.012 model 1 unstand. coeff. std.c oeff. t sig. b std. error (constant) 2.145 0.830 2.584 0.020 commitment 0.097 0.210 0.102 0.461 0.651 job satisfaction 0.364 0.173 0.469 2.109 0.045 journal of accounting management and economics , vol. 23., no. 02, year 2020, pp. 12.-19 a. predictors: (constant), job satisfaction, commitment b. dependent variable: attitude towards change analysis of variance also shows the variations that are explained and that are not explained by the model. in the table above, regression sums of square, 1.738 shows the variation accounted for by the model, which is by far less than residual sums of square,19.492. this implied that little variation in employees’ attitude towards change is due to variation in independent variables. this means variables other than commitment and job satisfaction might have large contribution. according to shah (2011), employee attitudes could be affected by other socio-economic and cultural variables. in addition, yosef (2011) demonstrated that civil service reforms impeded by lack of structural set up that is amenable to reforms execution, lack of proper control, absence of clearly defined management system and procedure of effective and efficient utilization of human resource and lack of managerial know how. conclusion the major purposes of this study were to provide empirical support on the employees` general attitude towards change initiatives as influenced by commitment and job satisfaction. in the surveyed higher education institutions, the following conclusions were made based on the findings. employees’ attitude towards change initiatives and employees’ job satisfaction found to be significantly related while no relationship exists between organization commitment and employees’ attitude. this means any variation in employee`s commitment does not result in positive or negative attitudes of employees regarding change initiatives. moreover, the contribution of job satisfaction for current employees` attitude found to be substantial and can be deduced that the variation in job satisfaction scale will cause the variation in employees’ attitude scale. future research direction like any other study, this is also with some limitations. the second is related to the focuses of this study to mandatory changes. many scholars demonstrated that attitude towards change is a good predictor of future behavior (ajzen & fishbein, 1980) if it is nonmandatory change. scholars argued that the more mandatory the change is the more an attitude towards change couldn`t predicts real change behavior (kijsanayotin et al., 2009).the other limitation is its focuses to general attitudes towards change not to specific change. it is recommended that real behavior is more correctly predicted by distinctive attitudes than general attitude (choi, 2011). a third limitation is related to target population of this study. to get the full picture of challenges and employees attitude towards change, both academic and administration would have been more appropriate. in this study however, the latter staffs were used as a target population to avoid the variation. hence, we put suggestions for future research that both mandatory and voluntary changes; both general attitudes towards change and specific change be studied by using both academic and administrative of higher education to get a comprehensive findings in the area. references ajzen, i., & fishbein, m. 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(2000a). organizational commitment and job satisfaction as predictors of attitudes toward organizational change in a nonwestern setting. personnel review, 29, 567–592. yosef, t. (2011).study of the civil service reform in adama city administration (unpublished) ethiopia. a.a.u, ethiopia. correspondence to : monicarosiana@unsoed.ac.id received:june, 12, 2020 accepted: june, 21, 2020 published:june, 30, 2020 jurnal akuntansi, manajemen dan ekonomi vol 23, no 2, pp.28-35 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction nowadays, the development of technology in indonesia is very fast. one of them is the payment instrument which is now digitally based, so the public does not need to pocket banknotes because it has turned into digital or electronic money. of course this situation has an impact on the financial services sector. before the technology grew rapidly, people used banking services to conduct various activities. the enforcement and application of this electronic money is valid after bank indonesia (bi) issued the regulation. the bank indonesia (bi) report on the growth of electronic money usage is recorded very significantly. as of february 2019, the use of electronic money grew by 77.6 percent. for the overall growth of non-cash payments grew by 17.1 percent. electronic money is divided into two, i.e., cip-based electronic money usually in the form of applications, such as go-pay, ovo, and linkaja. the advantages of electronic money or electronic based payment (e-pay), among others, better prioritize speed, ease and efficiency when compared with cash payments and also the benefits gained by the public if using electronic-based payments is very large. although the payment of electronic-based (e-pay) has a positive benefit for the community, but the payment of electronic (epay) is still less desirable, it is because the knowledge of technology owned by the community is still lacking, the understanding of the benefits and ease of electronic transactions are still less known by the public. factors of perception of usability and ease of use in researched can affect e-repurchase use of e-pay, besides the perceived of risk factor also affects e-repurchase e-pay usage. although technology currently provides benefits and convenience in transactions, there are still a handful of people who consider and reject electronic-based payment systems due to lack of security and uncertainty (lee, 2009). even though the main target of bank indonesia in issuing electronic money is to minimize the use of cash among the people in everyday transactions. current consumer of electronic money users generally dominated by middle to middle class people and the people who are technology literate. so that it is evenly distributed the use of electronic money in indonesia is still lacking. program less cash society which is promoted by the government itself is part of the preparation of the indonesian people in facing competition globally, especially the approved asean economic community (aec) since january 2016. therefore, minimize the use of cash is one way that the value of the currency does not fall and remain stable. the security and uncertainty perceived by the community is the risk of electronic-based payment systems (e-pay) perceived by a handful of people. the risk of security is a public concern for those who publish how to increase e-repurchase of e-pay consumers in purwokerto monica rosiana1, dwita aprillia floresti2 1management department, faculty of economic and business, universitas jenderal soedirman, indonesia 2economics and development studies department, faculty of economic and business, universitas jenderal soedirman, indonesia abstract the purpose of this study is to explain the effect of perceived usefulness, perceived ease of use, perceived risk on e-repurchase using e-pay. structural equation modeling (sem) was used to test the empirical model. the number of samples in this study was 114 e-pay users in purwokerto. the results indicate that perceived usefulness and perceived ease of use have a positive effect on e-repurchase. in addition, researchers can also prove that perceived risk has a negative effect on e-repurchase. keywords perceived usefulness, perceived ease of use, perceived of risk, e-repurchase jurnal akuntansi, manajemen dan ekonomi, vol. 23., no. 02, year 2020, pp.28.-35 electronic money in the form of cards issued by banks and in the form of applications, while the risk of uncertainty is that people still feel hesitant to between "yes" or "no" for electronic-based transactions. to solve the phenomenon what happens can be used theory technology acceptance model (tam) used as a basis of variety study of information technology systems that are can be used to answer phenomena that occur (marangunić & granić, 2015). davis (1989) explains that tam is information systems theory that makes a model of how users want receive and use technology. this model proposes that when users offered to using a new system, a number of factors influence behavior them about how and when will use system, especially in terms of perceived usefulness and perceived ease of use. the ease of use and attitude held by the community is a strong determinant of one's intention to conduct electronic-based transactions. (han & kim, 2017). the perceived of risk of online consumers influenced their belief in one of the ecommerce and the intention of purchasing society against the e-commerce (haruna & kassim, 2019). in addition to these risks, other risks are found, among others, financial, product, security, social/ psychological and time. there are different results from previous studies. researchers that say variable ease of use has positive effect on the re-purchase intent is sidharta & sidh (2014) different result by jain et al. (2014). they declared a usability variable that could affect the buying intention, suresh & shashikala (2011) in his research stating that perceived of risk has an effect on consumer re-buying intentions, but fuad (2018) in his research stated that the risk perception variable has no influence on consumer re-buying intentions. based on this, this research will be done knowing the influence of perceived usefulness, perceived ease of use and perceive of risk to increase repurchase of epay consumers in purwokerto. literature review and hypotheses electronic payment (e-pay) electronic payment is a payment model that makes it easy and offers convenience to users in conducting transactions payment. users only need to make transactions using it internet that is online, without having to meet or come all the way to meet the seller. electronic payment is representative of all non-cash payments, which is also interpreted as an electronic payment transaction between buyers and sellers of business use savings accounts through the network internet or electronic network (teoh et al., 2013). electronic payment is used at this time for long distance transactions such as online shoping, along with the growing use of the internet and increasingly the number of e-commerce, electronic payment is a solution that is present for replace the old payment transaction tool. which is included in electronic payments are atm, e-money, internet banking, credit cards, debit, mobile payment, mobile banking (teoh et al., 2013). electronic money is money in electronics form that used in payment transactions on the internet through methods electronics, like using a smartphone. electronic money is prepaid, which is the value of money from someone who is stored on a media electronic. electronic money is also an electronic payment transaction tool that can do transactions with electronics also by using intermediaries i.e. internet, computer network, also digital store value system. electronic money consists of elements such as, electronic money issued with currency values money previously transferred from the customer or user to the issuer. money is stored in a chip or electronic media a server. the money is used for payment between business people, not as the issuer of the electronic money. and electronic money from accounts which has been moved from the owner or customer and then managed by the issuer which is not a form of savings. benefits and advantages when using emoney compared to using cash value or noncash payment instruments are: first, transactions only require a little time to do, easy and convenient inside. its use compared to the old way of payment, namely money cash, making it easy to do small value transactions without having to prepare exact change and change from change. or we can say that we get minimal error when we do payment transaction. second, with electronic money you don't need much time to make payment transactions. if you use cash money, it will require careful calculation so that the time needed is longer. another case, if we use electronic money, we only enter numbers into jurnal akuntansi, manajemen dan ekonomi, vol. 23., no. 02, year 2020, pp.28.-35 the system and do not have to counting the money. as well as recipients of money, it will be easier to calculate the number of transactions. third, the value of money can be refilled easily. it means we can fill anytime and anywhere. when we use cash, we have limitations because if our money runs out, we have to take it to the bank. and sometimes it takes a long time. forth, electronic payment generate more sales. this system allows consumers to pay for products and services online without having to meet with the seller. therefore, you can reach more potential customers in various regions so that you can generate more sales. if we use cash money, we are not efficient and effective because we spend a lot of energy and time to meet our customers. fifth, transactions become more effective and efficient. this payment system is more effective and efficient than cash payments. only by using a smartphone or internet banking application, consumers can pay for the items which they buy quickly and easily. in addition, consumers can pay for products purchased from e-commerce sites anytime and anywhere as long as the their device is connected to the internet connection. sixth, control expenses for customers. users can check virtual accounts and see all expenses and transaction history. this can make it easier for users to control the amount of expenditure made each month. it will also help consumers to planning their purchases. seventh, e-payment makes our spending more saving than cash money. using epayment will certainly provide benefits that are not necessarily obtained when payment is made in cash. the biggest advantage is the number of discounts and promos which which is beneficial for its users. indonesian people can enjoy discounts on cash back when making payments using e-payment services from online motorcycle taxi services such as gojek (go-pay) and grab (ovo) and other e-payment services from 20% to 50% discounted prices. eighth, electronic payment is saver than cash payment. the use of cash money is very prone to theft, even more if cash payments are made in large quantities. as for e-payment transactions, users must enter a password and pin that is only known by the account owner. payments made electronically use a highly secure security mechanism so that users, both merchants and consumers, trust the e-payment system. ninth, electronic payment is reducing circulation of counterfeit money. we can say that the less use of cash, the less the circulation of counterfeit money in indonesia. the choice of non-cash transactions has indeed become an appeal of bi (bank indonesia) to the indonesian people since a few years ago because the currency cannot be forged. technology acceptance model (tam) the technology acceptance model (tam) was adopted and developed from the theory of reasoned action (tra) model, a reasonable theory of action developed by hill et al. (1977) with one premise that a person's reaction and perception of something, will determine the attitude and behavior of the person (adhiputra, 2015). aulianita & santoso (2013) stated that tam is an improvement of the tra (theory of reasoned action) model, tam adopted fixed components of the general tra model and applied them as specific domains of computer technology and others for information technology. but what distinguishes both of them (tra and tam) is the placement of attitude factors from tra, where tam introduces two key variables, namely perceived ease of use and perceived usefulness, which have central relevance for predicting user acceptance of technology. according to adhiputra (2015), technology acceptance model (tam) developed by davis (1989) explains the two main concepts that are trusted in user acceptance (ie, perceived ease of use), namely the level of someone's trust that use information technology will be easy and does not require a lot of effort and perceived usefulness (perceived usefulness), which is a person's level of trust that information system users increase performance in their work. technology users will have a positive perception of the technology provided. negative perceptions will emerge as a result of the use of the technology so that the tam model can be used as a basis for determining the efforts needed to encourage the willingness to use technology (ahmad & pambudi, 2014). jogiyanto (2007) in ahmad & pambudi (2014) explained the advantages possessed by the technology acceptance model (tam) are: first, technology acceptance model jurnal akuntansi, manajemen dan ekonomi, vol. 23., no. 02, year 2020, pp.28.-35 (tam) is a behavior model that is useful to answer the question why many information technology systems which fails to be applied because the wearer has no interest (intention) to use it. second, technology acceptance model (tam) is built with a very strong theory. third, technology acceptance model (tam) has been tested by many studies and the results largely support and conclude that technology acceptance the model (tam) is a good model. forth, the technology acceptance model (tam) is a parsimonius model, which is a simple but valid model. there are several weaknesses of the tam theory, such as: first, tam does not accommodate or does not involve the role of the environment around someone's attitudes and behaviors. second, there is a different person or individual who comes from one's personal nature, and value in that person. third, tam also does not consider the role of people's ability to realize their desires. perceived usefulness and e-repurchase the perceived benefits (perceived usefulness) in this study are the benefits obtained by consumers when making a purchase, meaning that consumers send the agreed simply amount of money via transfer. that will make it easier for consumers to save their time. oly ndubisi et al., (2011) states that when consumers believe that online shopping will improve their transaction performance, the perceived benefits will increase. an individual is more likely to make further use when the use is considered useful. thus it can be said that the perceived benefits can be obtained when a consumer find it easy to interact with the website, to find product information and pay online. they will consider that shopping online will be more useful. nowadays, technology must have the value of use that can be felt by the user to be acceptable in the community. this technology is expected to relieve the burden of human work. users will prefer the technology that is easy to learn because to minimize their time and energy. included in the use of e-pay, the purpose of community use is to facilitate transactions. when it feels so easy, it will be prompted to re-purchase. this statement is in line with cho & sagynov (2015); triatma & akmila (2012). for that, we can make hypotheses: h1: perceived usefulness positive effect on e-repurchase. perceived ease of use dan erepurchase according to kwon & wen (2010), perceived ease of use is where consumers feel that shopping at web-based stores will increase spending and the extent to which consumers feel the ease of interaction with the website and can receive product information he needs. when consumers feel the ease of interaction with e-commerce websites, to find product information and pay online, they will consider shopping more useful. ease of use is a very important variable for receiving information systems because it is the basis of using the system. a system that is difficult to use will be considered less useful by the user and may be abandoned by the user. the ease of use can be interpreted as a person's conviction that if he/she wears a product does not require a hard effort. although an indicator of someone with another is different about the ease or absence of use, but generally one must avoid using a system that is difficult to learn. when consumers feel that a product is easy to use, they will try to repeat the purchase. because they hope that with the same product they will get the same convenience. this statement is supported by the research of aren et al., (2013); cho & sagynov (2015). so, we can make formulated hypotheses: h2: perceived ease of use affects positively to e-repurchase. perceived of risk dan e-repurchase in making payments online, there must be various perceptions about the risks that will be accepted by consumers. this is because there is no direct meeting. this concern is what makes them feel hesitant to re-purchase. the higher the perception of consumers to the risks that will be received, will make it reluctant to make repurchase. likewise, when their perception of the risk received is low, consumers will be more confident to repurchase. this declaration is in line with the research results of suresh & shashikala (2011). it also supported by tho et al. (2017), based on their research, it suggests that the mobile service providers in vietnam need to prevent any cause that may lead to an increase selling because high risk perception makes customers switch to other products. so, we can make formulated hypotheses: h3: perceived of risk affects negatively to e-repurchase. jurnal akuntansi, manajemen dan ekonomi, vol. 23., no. 02, year 2020, pp.28.-35 conceptual framework figure 1. conceptual framework methods hair et al. (2010) suggested that by using the structural equation model (sem), the appropriate sample size between 100-200 respondents. furthermore, the minimum sample size is 5 observations for each estimated parameter (indicator). in this study a model with 19 parameters is used, so the minimum number of respondents for this study sample is 19 x 6 = 114 respondents. its population is all e-pay users in purwokerto. data collection is done by spreading the online questionnaire. the sampling method is random sampling. this is because each sample has the same opportunity. structural equation modeling (sem) is used to test empirical models. results and discussion characteristics of respondents the number of respondents surveyed was 114 people used as a sample in this study. research respondents are described by presenting their characteristics based on demographic variables, namely gender, age, and income or pocket money. the majority of respondents in this study were female with a percentage of 56.2 percent. based on age, the majority in this study was 17-25 years old, amounting to 41 percent. based on income or pocket money, the majority are respondents with income or pocket money of ≤ 1,500,000 per month of 69.8 percent. validity and reliability test validity test is based on the factor t value and if the value is greater than the critical value of 1.96 then it is declared valid (hooper et al., 2008). all indicators of each variable have a cut off> 1.96 so that it can be stated that the whole indicator is valid. reliability tests for each latent variable were measured using constructs reliability (cr) and average variance extracted (ave). cr has a cut-off limit of 0.6 so that it can be declared reliable and ave with values> 0.5 (ghozali, 2018). based on the results of the validity and reliability test it can be concluded that all indicators can be used at the next stage of analysis. model conformance test the model conformance test results can be seen in the following table 1. hair et al. (2010) stated that goodness of fit test can be accepted or the model is categorized “fit” if minimally 5 criteria are met. based on these results, the model in the study is categorized as a very good model, because seven criteria were obtained in good category. table 1. goodness of fit test index of fit model cut-off value result of analysis note χ2 – chi square <χ2 77,93052 (p 0,05; df 59) 63,747 good probability > 0,05 0,313 good cmin/df < 2,00 1,080 good rmsea < 0,08 0,029 good gfi > 0,90 0,914 good agfi > 0,90 0,867 marginal tli > 0,95 0,983 good cfi > 0,95 0,987 good figure 2. full model hypothesis test table 2. result hypothesis value of c.r. value of c.r. p result perceived usefulness perceived ease of use perceived of risk e-repurchase jurnal akuntansi, manajemen dan ekonomi, vol. 23., no. 02, year 2020, pp.28.-35 perceived usefulness erepurchase 2.228 2.001 0.026 accepted perceived ease of use erepurchase 7.740 2.001 0.000 accepted perceived risk erepurchase -2.284 2.001 0.022 accepted hypothesis discussion perceived usefulness relationship with erepurchase h1: perceived usefulness positively influential to e-repurchase when a technology is easy to use, one tends to use the application again. based on research results, e-pay can be categorized as user-friendly applications. they realize that with the existence of e-pay helps them to be able to transact anywhere and anytime. electronic payment make it more flexible to make purchases when compared to using cash that is limited by time. irmadhani & nugroho (2014) states that usability is a person's belief that the technology he uses is able to improve their performance. this research is in line with the research results of cho & sagynov (2015); kwon & wen (2010); triatma & akmila, (2012). relationship perceived ease of use with erepurchase h2: perceived ease of use affects positively to e-repurchase in this research, the perception of ease of use is evident in the speed when someone using e-pay transactions. for example: ease of access and search for the required e-pay services, clarity the instructions that contained in the application, consumers feel flexibile when using the e-pay service. ease of use will affect a person to use the service again or switch to another product. if they are confident with the e-pay application that it has done helps their effectiveness in transaction, they are more likely to wear it again. respondents who were above 40 years also agreed with this statement because they were facilitated in conducting transactions. the research was in line with the results of aren et al., (2013) ; cho & sagynov (2015). relationship perceived of risk with erepurchase h3: perceived of risk affects positively to e-repurchase in making online payments, consumers are sure to have concerns about the risks that will be received. the high risk perception will have an effect on declining consumers desire to repurchase. a low risk perception will make consumers confident about re-purchasing. in the context of this research, because the perception of consumers to the risk of e-pay is minimal, consumers are still encouraged to make repurchase. one of the efforts to improve security is the provision of strong passwords, and confirmation not only once but many times, for example by email and telephone number so that it can make risk perception decrease and increase repurchase. the research was in line with the research results of suresh & shashikala (2011). conclusion this research shows that there are three factors that affect the re-purchase of e-pay usage. these factors are perceived usefulness, perceived ease of use, and perceive of risk. perceived usefulness and perceived ease of use give a positive influence on re-purchase of e-pay usage. while perceived of risk can decrease the intention of re-buying consumers of e-pay users in purwokerto. the limitations of this study are only focused on one area of purwokerto. therefore, the future research should not only be focused on one region but some areas. if viewed from the variable calculation results of benefits perception, the company should be able to provide attractive offers to consumers. such discounted rates in hopes that they can increase their desire to re-buy. in addition, the company must also monitor and improve the quality of services in order to avoid interference when conducting e-pay transactions. and especially in this research, for the bank indonesia as a regulation bank, should have begun to be regulated about electronic data capture tool. as well as for the government in banyumas district, especially in purwokerto, it is expected to continue to provide socialization of the use of cashless transactions among the people, in order to support the cashless movement. jurnal akuntansi, manajemen dan ekonomi, vol. 23., no. 02, year 2020, pp.28.-35 references adhiputra, m. w. 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(1977). belief, attitude, intention and behavior: an introduction to theory and research. contemporary sociology. https://doi.org/10.2307/2065853 hooper, d., coughlan, j., & mullen, m. r. (2008). structural equation modelling: guidelines for determining model fit. electronic journal of business research methods. https://doi.org/10.21427/d79b73 irmadhani, & nugroho, m. a. (2014). pengaruh persepsi kebermanfaatan, persepsi kemudahan penggunaan dan. pengaruh persepsi kebermanfaatan, keamanan, kepercayaan dan persepsi kemudahan penggunaan terhadap penggunaan online banking pada mahasiswa s1 fakultas ekonomi universitas negeri yogyakarta. jain, m. d., goswami, m. s., & bhutani, m. s. (2014). consumer behavior towards online shopping: an empirical study from delhi. iosr journal of business and management. https://doi.org/10.9790/487x-16946572 kwon, o., & wen, y. (2010). an empirical study of the factors affecting social network service use. computers in human behavior. https://doi.org/10.1016/j.chb.2009.04.01 1 lee, m. c. (2009). factors influencing the adoption of internet banking: an integration of tam and tpb with perceived risk and perceived benefit. electronic commerce research and applications. jurnal akuntansi, manajemen dan ekonomi, vol. 23., no. 02, year 2020, pp.28.-35 https://doi.org/10.1016/j.elerap.2008.11. 006 marangunić, n., & granić, a. (2015). technology acceptance model: a literature review from 1986 to 2013. universal access in the information society. https://doi.org/10.1007/s10209014-0348-1 oly ndubisi, n., har lee, c., cyril eze, u., & oly ndubisi, n. (2011). analyzing key determinants of online repurchase intentions. asia pacific journal of marketing and logistics. https://doi.org/10.1108/1355585111112 0498 sidharta, i., & sidh, r. (2014). pengukuran persepsi manfaat dan persepsi kemudahan terhadap sikap serta dampaknya atas penggunaan ulang online shopphing pada e-commerce. jurnal computech & bisnis. suresh, a. m., & shashikala, r. (2011). identifying factors of consumer perceived risk towards online shopping in india. 2011 3rd international conference on information and financial engineering. teoh, w. m. y., chong, s. c., lin, b., & chua, j. w. (2013). factors affecting consumers’ perception of electronic payment: an empirical analysis. internet research. https://doi.org/10.1108/intr09-2012-0199 tho, n. x., lai, m.-t., & yan, h. (2017). the effect of perceived risk on repurchase intention and word – of – mouth in the mobile telecommunication market: a case study from vietnam. international business research. https://doi.org/10.5539/ibr.v10n3p8 triatma, a., & akmila, f. (2012). pengaruh trust dan penerimaan teknologi terhadap minat konsumen dalam pembelian online (studi kasus www.kaskus.us). sinergi. https://doi.org/10.20885/sinergi.vol13.is s1.art7 correspondence to : rezi.office@gmail.com received: aug, 11, 2020 revised: sep, 1, 2020 accepted: sep, 17, 2020 jurnal akuntansi, manajemen dan ekonomi vol.22, no. 3, pp. 30 36 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction investors generally have the hopes and goals of investment activities carried out in the capital market, namely to seek income or return on investment, both in the form of income (dividend) and income from the difference in the selling price of shares to the purchase price (capital gain). companies that choose to distribute profits as dividends will reduce the total source of internal funds or internal financing. meanwhile, in general, investors do not want to take more risks, so they prefer high dividends to capital gains. the importance of maintaining a balance between the interests of the company and the interests of shareholders, so it is necessary to analyze the factors that affect dividend payments. this is because the income expected by shareholders is the income generated from dividend distribution, in which the business entity gives up a portion of its profit, for the benefit of shareholders' welfare. several factors that can affect dividend payout ratio include cash position, debt to asset ratio and firm size. the cash position of a company is an important factor that must be considered before the company makes a decision to determine the amount of dividends to be distributed to holding shares. because dividends are cash outflows, the stronger the company's cash position means the greater its ability to pay dividends. the lower the debt to asset ratio, the higher the company's ability to pay its debts. an increase in debt can affect company profits because the company will prioritize paying debt rather than distributing dividends to investors. so that the debt to asset ratio to the dividend payout ratio will have a negative effect. if a company wants to achieve growth, it must be large and wellestablished. in this way the company has more flexibility and can seek larger dividend payments than smaller companies and is able to raise funds in the short term. the positive influence means that the larger the the influence of cash position, debt to asset ratio and firm size on dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the 2014-2018 period vina1, jesslyn kosasih2, kevin susanto3, fuji astuty4 1,2,3,4department of accounting, faculty of economics, universitas prima indonesia, indonesia abstract the purpose of this study is to determine and test the effect of cash position, debt to asset ratio and firmsize on the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2014-2018. this research is a quantitative research and the deductive approach is descriptive. the total population is 52 property & real estate companies on the idx for the period 2014-2018. the sample technique uses purposive sampling so that the research sample that meets the criteria is as many as 13 companies. the data collection method used secondary data from financial reports, while the data analysis model was multiple regression. the results of the f test, namely cash position, debt to asset ratio and firm size have an effect on the dividend payout ratio. as individuals, cash position has a positive effect on the dividend payout ratio, dar has no effect on the dividend payout ratio and firm size has a negative effect on the dividend payout ratio. the value of determination coefficient as seen from adjusted r2 is 0.435, which shows that the dividend payout rate can be influenced by cash position, debt to asset ratio and firm size of 43.5%, and 56.5% are other factors that are not shown in this research report. keywords cash position, debt to asset ratio, firm size and dividend payout ratio mailto:rezi.office@gmail.com jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 30 36 size of a company has an impact on the amount of dividends distributed. this research was conducted in the property and real estate sector because in an unstable sales condition it can affect the company's cash position due to the large number of bad debts, in addition, investors will also urge the company to pay dividends. the company also has a high level of debt to support its activities so that it will reduce the profit to be obtained and thus affect the distribution of dividends. based on the description and phenomena above, the researchers are interested in conducting research with the title: "the effect of cash position, debt to asset ratio and firm size on dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the 2014-2018 period". based on the description of the phenomenon and the background of the problem above, the identification of the problems in this study consist four aspects. an increase in cash position is not always followed by an increase in the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2014-2018. the increase in debt to asset ratio is not always followed by a decrease in the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the 2014-2018 period. the increase in firm size is not always followed by an increase in the dividend payout ratio for property and real estate companies listed on the indonesia stock exchange for the period 2014-2018. increase in cash position, debt to asset ratio and firm size is not always followed by a decrease or increase in the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2014-2018. the formulation of the problem in this study consist four aspects. how is the influence of cash position on the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2014-2018? how is the effect of the debt to asset ratio on the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2014-2018? how is the influence of firm size on the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2014-2018? how are the effects of cash position, debt to asset ratio and firm size on the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2014-2018. the aim of this research is to determine and test the effect of cash position, debt to asset ratio and firm size on dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2014-2018. cash position according to (haryatih, 2015) cash position is a comparison of the amount of cash at the end of the year to earnings after tax. cash out flow is the cash disbursement required for the procurement (purchase) of assets. according to (saputra & yunita, 2017) cash position is calculated based on the comparison between the year-end cash balance and net profit after tax. mathematically it can be formulated as follows: 𝐶𝑎𝑠ℎ 𝑃𝑜𝑠𝑖𝑡𝑖𝑜𝑛 = 𝐸𝑛𝑑 𝑜𝑓 𝑦𝑒𝑎𝑟 𝑐𝑎𝑠ℎ 𝑏𝑎𝑙𝑎𝑛𝑐𝑒 𝑝𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥 debt to asset ratio according to (sugiono & untung, 2016) the debt to asset ratio compares between total debt and total assets. creditors want a low debt to asset ratio because the higher this ratio, the greater the risk of creditors. according to (sinaga, 2014) this ratio is a comparison between total liabilities and total assets. this ratio shows the extent to which liabilities can be covered by assets. the formula used is as follows: 𝐷𝑒𝑏𝑡 𝑡𝑜 𝐴𝑠𝑠𝑒𝑡 𝑅𝑎𝑡𝑖𝑜 = 𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡 firm size according to (pribadi & sampurno, 2012) firm size is the size of a company that is considered mature and capable of having good access to the capital market in order to obtain the best information. according to (saputra & yunita, 2017) size is a symbol of company size. company size is a scale which can be classified as the size of the company in various ways, including the company's total assets, log size, stock market value, and others. systematically the firm size can be formulated as follows: jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 30 36 firm size = ln of total asset dividend payout ratio according to (sinaga, 2014) dividends are the distribution of profits to shareholders based on the number of shares owned. this division will reduce the retained earnings and cash available to the company, but the distribution of profits to the owners is the goal of a business. dividend policy is basically a determination of how much profit portion will be given to shareholders and which will be retained as retained earnings. the ratio between dividends and profits is the dividend payout ratio. according to (haryatih, 2015) the dividend payout ratio is a comparison between dividends per common share and the profit available to ordinary shareholders. the amount of the calculation of the dividend payout ratio shows the proportion of the allocation of the profits of each share to the dividends of each share. 𝐷𝑃𝑅 = 𝐷𝑃𝑆 𝐸𝑃𝑆 the effect of cash position on the dividend payout ratio according to (kasmir, 2010), cash position is a ratio that describes the company's ability to meet short-term obligations, so that the level of the company's cash position can affect a company's dividend policy. according to (riyanto, 2010), because dividends are cash outflows, the stronger the company's cash position means the greater its ability to pay dividends. the effect of debt to asset ratio on the dividend payout ratio according to (gumanti, 2011), companies with high financial leverage will tend to have low dividends, because if the dividends paid are high, then this condition can be considered that the company has promised new commitments which financially will greatly disturb the company's financial stability, in particular. fixed costs. the effect of firm size on the dividend payout ratio according to (saputra & yunita, 2017), opportunities in the capital market in the company can be illustrated by the firm size. firm size is a ratio that measures the size of a company. companies with a larger size are estimated to have the ability to generate greater earnings so that they can pay larger dividends than smaller companies. according to (hery, 2013), company size is an important factor to explain cash dividends. companies that have a large size will tend to have the ease of entering the capital market. this reduces dependence on funds generated from within the company and allows for higher dividend payments. hypothesis h1 : cash position affects dividend payout ratio h2 : debt to asset ratio affects dividend payout ratio h3 : firm size affects dividend payout ratio methods this research was conducted at property and real estate companies listed on the indonesia stock exchange through the website www.idx.co.id. research time is from march 2019 to december 2019. the research approach used is deductive research. according to (sujarweni, 2014), deductive research is research that has a general nature to be specific, meaning that this research must begin with an existing theory, then conduct research to prove the existing theory. this type of research is quantitative research. according to (sujarweni, 2014), quantitative research is a type of research that produces discoveries that can be achieved using statistical procedures or other means of quantification (measurement). the nature of the research used is descriptive research. according to (sujarweni, 2014), descriptive research is research conducted to determine the value of each variable, whether one or more variables are independent without making relationships or comparisons with other variables. the population used in this study were all property and real estate companies listed on the indonesia stock exchange from 2014 to 2018. the total population in this study was 52 companies. the sampling technique in this study was based on purposive sampling. according to (sugiyono, 2017), purposive sampling is a sampling technique with certain considerations. the considerations in selecting samples in the study consist four aspects.property and real estate companies listed on the indonesia stock exchange. property and real estate companies that obtained net income during 2014-2018 jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 30 36 respectively. property and real estate companies that paid dividends for the years 2014-2018 respectively. of the 52 property and real estate companies, there were 11 companies that suffered losses and 28 companies that did not distribute dividends, so the number of samples in this study was 13 companies with a 5 year period so that the total data in this study were 65 data. data collection technique the data collection method in this research is carried out by studying documentation by collecting and studying company data sourced from financial reports and documents related to property and real estate companies published by the official website of the indonesia stock exchange (idx) since 2014. until 2018. types and sources of research data the type of data used in this study is secondary data. the secondary data was obtained from the website.idx.co.id in the form of financial reports for property and real estate companies for the years 2014-2018. classic assumption test classic assumption testing is needed to determine whether the regression estimation results carried out are truly free of heteroscedasticity symptoms, multicollinearity symptoms, and autocorrelation symptoms. the regression model can be used as an unbiased estimation tool if it meets the blue (best linear unbiased estimator) requirements, namely, there is no heteroscedasticity, no multicollinearity, and no autocorrelation. if there is heteroscedasticity, then the variance is not constant so that it can cause the bias standard error. if there is multicollinearity, it will be difficult to isolate individual effects from the variable, so that the significance level of the regression coefficient is low. with the presence of autocorrelation, the estimator is still biased and consistent, but it becomes inefficient. the classical assumption test in this study consisted of 4 test instruments, namely the normality test, multicollinearity test, autocorrelation test and heteroscedasticity test. research model hypothesis testing in this study is to test whether the independent variable has a partial or simultaneous effect on the dependent variable using the f test and t test. the regression model used is multiple regression analysis with the formula: y = a + b1x1 + b2x2 + b3x3 + e information: y = dividend payout ratio a = constant x1 = cash position x2 = debt to asset ratio x3 = firm size b1, b2, b3 = regression coefficient e = confounding variable. results and discussion descriptive statistics the sample that met the criteria in this study amounted to 13 companies with a research period of 5 years (2014-2018) so that the data amounted to 65 data. table 1 the minimum value on the cash position variable is 0.150 which is obtained by pt. gowa makassar tourism development, tbk in 2015 while the maximum cash position value of 621,085 was obtained by pt. pikko land development, tbk in 2018. the average cash position value of property and real estate companies listed on the indonesia stock exchange for the period 2014-2018 is 11,08006. the minimum value in the debt to asset ratio variable is 0.084 which is obtained by pt. roda vivatex, tbk in 2018 while the maximum value of debt to asset ratio of 0.643 was obtained by pt. agung podomoro land, tbk in 2014. the average value of debt to asset for property and real estate companies listed on the indonesia stock exchange for the period 2014-2018 is 0.39795. the minimum value of firm size variable is 27.837 which is obtained by pt. gowa makassar tourism development, tbk in 2016 with an asset value of rp. 1,229,172,450,340, while the maximum firm size value of 31,166 was obtained by pt. ciputra development, tbk in 2018 with an asset value of idr 34,289,017,000,000, -. the average firm value for property and real estate companies listed on the indonesia stock exchange for the period 2014-2018 was 29.51794 with an average asset value of idr 10,670,528,823,394. the minimum value of the dividend payout ratio variable is 0.026 which is obtained by pt. gowa makassar tourism development, tbk in 2018, while the maximum dividend payout ratio value of jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 30 36 85.504 was obtained by pt. roda vivatex, tbk in 2018. the average dividend payout value for property and real estate companies listed on the indonesia stock exchange for the period 2014-2018 is 1.54035. discussion the effect of cash position on the dividend payout ratio the results of the study prove that there is a significant positive effect of cash position on the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2016-2018. the results of this study are also in line with (haryatih, 2015) that cash position has a positive and significant effect on the dividend payout ratio. the greater the cash owned by the company shows a positive cash position, which means that the company has good financial performance and is able to distribute dividends to shareholders. the effect of debt to asset ratio on the dividend payout ratio the results of the research cannot prove the effect of the debt to asset ratio on the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2014-2018. the results of this study are also in line with (maulidah & azhari, 2015), namely that dar has no effect on the dividend payout ratio. the use of debt has no effect on dividend distribution decisions, this is because property and real estate companies are very unlikely if they do not use loan capital from outside parties in carrying out / maintaining the smooth running of their operational activities. thus, investors' perceptions of the use of debt in the property and real estate sector are still considered reasonable, so that it does not affect dividend payments. the effect of firm size on the dividend payout ratio the results of this study prove that firm sizeter has a significant negative effect on the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2014-2018. the results of this study are also in line with (ayuningthias, 2019), namely company size has a negative and significant effect on the dividend payout ratio. the larger the size of a company indicates that the company is experiencing sales growth, in this condition the company will prioritize opportunities for company growth rather than distributing dividends to shareholders, thus the larger the size of the company, the smaller the dividend distribution to shareholders because the company must set aside funds for investment purposes. conclusion partially cash position has a positive and significant effect on the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2016-2018. partially the debt to asset ratio has no effect on the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2016-2018. partially firm size has a negative and significant effect on the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2016-2018. simultaneously cash position, debt to asset ratio and firm size have a significant effect on the dividend payout ratio in property and real estate companies listed on the indonesia stock exchange for the period 2016-2018 references ayuningthias, b. (2019). analysis the effect of leverage, liquidity, profitability, company growth and firm size towards dividend policy. eproceedings of management . gumanti, t. a. (2011). investment management concepts, theory and application. jakarta: mitra wacana media. haryatih, h. (2015). pengaruh growth, cash position, liquidity, solvability and profitability towards dividend payout ratio (empirical study on manufacturing companies listed on indonesian stock exchange for the period 2008-2011). accounting and finance , 161-180. hery. (2013). the secret of dividend distribution and corporate governance. yogyakarta: gava media. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 30 36 kasmir. (2010). analysis of financial statement. jakarta: raja grafindo persada. maulidah, f., & azhari, m. (2015). the influence of return on asset, current ratio, debt to total asset ratio, growth and firm size towards dividend payout ratio (study on bumn company listed in bei for the year 2009-2013 . eproceedings of management . pribadi, a. s., & sampurno, r. d. (2012). analysis the effect of cash position, firm size, growth opportunity and return on asset towards dividend payout ratio . dipenogoro journal of management , 201-211. riyanto, b. (2010). the basics of company financing. yogyakarta: bpfe. saputra, a., & yunita, i. (2017). analysis the effect of cash position, return on asset, debt to equity ratio, firm size and growth towards dividend payout ratio at cigarette company listed in indonesian stock exchange for the period 2012-2016. eproceedings of management , 2252-2260. sinaga, p. (2014). porthofolio theory and investment analysis theori and apllication. medan: mitra. sugiono, a., & untung, e. (2016). analysis of financial statement. jakarta: grasindo. sugiyono. (2017). quantitative qualitative method research and r&d. bandung: alfabeta. sujarweni, v. w. (2014). complete research methodology, practical and easy to understand. yogyakarta: pustaka baru press. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 30 36 h1 h2 h3 h4 list of tables table 1. hypotheses t test table 2. hypotheses f test table 3. r square list of figures figure 1. model test coefficientsa model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 29,935 13,243 2,260 ,027 ln_cash_position ,771 ,107 ,753 7,180 ,000 ln_dar ,488 ,282 ,192 1,729 ,089 ln_firm_size -9,311 3,871 -,286 -2,405 ,019 a. dependent variable: ln_dpr anovaa model sum of squares df mean square f sig. 1 regression 39,135 3 13,045 17,425 ,000b residual 45,667 61 ,749 total 84,802 64 a. dependent variable: ln_dpr b. predictors: (constant), ln_firm_size, ln_cash_position, ln_dar model summary model r r square adjusted r square std. error of the estimate 1 ,679a ,461 ,435 ,86524 a. predictors: (constant), ln_firm_size, ln_cash_position, ln_dar growth opportunity (x1) cash holding (y) leverage (x2) firm size (x3) correspondence to : nurselafiea@gmail.com received:june, 12, 2020 accepted: june, 21, 2020 published:june, 30, 2020 jurnal akuntansi, manajemen dan ekonomi vol 23, no 2, pp.42-49 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the current economic situation has a characteristic that is high volatility, and causes uncertainty in the situation and strategies for business people due to rapid changes in trends, accelerated technological development, and tight regulation. (brown, hatiwanger and lane, 2006). in the business world, the current situation or phenomenon is known as vuca. vuca is an abbreviation of volatility, uncertainty, complexity, ambiguity. this phenomenon confirms that in this era, uncertainty is a problem that must be faced and handled by implementing certain strategies. companies begin competing to find the right approach or strategy in accordance with this phenomenon in order to minimize its impact (santoso, 2018). company operations can be affected by this phenomenona, so companies can continue to operate and survive in business competition by determine the right strategy. this step is useful to help companies to be ready to face various situations that will occur. the management can be in the form of implementing strategies in the search for human resources to be employed (santoso, 2018).the approach that is suitable for facing the era of high volatility is a bottom-up approach. the bottom-up approach makes a proactive employee as key of business competition. the bottom-up approach takes several forms, one of which is job crafting. job crafting is a mechanism for employees to foster positive thoughts from the meaning and identity of their work. the essence of job crafting is the desire of employees to find and build positive self-identity within the company (dutton, roberts & bednar, 2010). trims, bakker and derks (2012) use the jd-r (job demands-resources) concept to study job crafting. in this concept job crafting is defined as proactive employee efforts to balance job demands and job resources that are tailored to their preferences or abilities and needs of employees.job crafting is assumed that have a positive relationship with job performance. the allegation arises because employees who make certain changes or make adjustments to aspects of the job with aspects in him will cause employees to be more meaningful to their work. in addition, job crafting by employees will have an impact on reducing job burnout. in addition, to deal with the vuca phenomenon, perceived organizational support also plays an important role in creating well-being for their employees. according to hur, et al (2013) perceived organizational support (pos) plays a contingent role in determining employee attitudes and behavior. when employees understand organizational support, it can strengthen their cognitive and emotional evaluation of their work. based on the phenomenon of job crafting in hospitality industry fiea nursela pusponegoro1, ade irma anggraeni2, dwita darmawati3 1,2,3faculty of economics and business, jenderal soedirman university, purwokerto, indonesia abstract this study aims to determine the effect of job burnout in the relationship between job crafting, perceived organizational support and job performance. this research was conducted by involving 282 hotel’s frontliners in purwokerto banyumas. sem analisys was carried out to test the hypothesis. according to the data accomplished in the research, it was found out that: (1) the respondents showed that they did job crafting during their works and it made the job performance's level increased. the relationship of the job crafting and job performance was positively significant because the value of c.r is greater than the value of the t table, c.r> t table (2.333> 1.960). (2) meanwhile, the job burnout in this study mediates the relationship between pos and job performance. this fact was proven by the value of the t value that was higher than the t table, it was 2.148 > 1,960 by using  = 0,05. after all, it can be summed up that job burnout mediates the effect between pos and job performance. keywords job crafting, job burnout, perceived organizational support, job performance jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.42-49 the principle of reciprocity, employees with pos not only help coworkers, but also increase their own job satisfaction and organizational commitment, while reducing resignations and absenteeism, thus stimulating employee job performance (rhoades and eisenberger, 2002; aselage and eisenberger, 2003). according to riggel, et al(2009), the high perceived organizational support (pos) will negatively affect job burnout. this study will focus on frontline employees from the hospitality industry. frontliner is a job category in a company, usually banking and other services. in general, front liners are tasked with serving customers directly. therefore employees who work in the frontline category have important functions and roles in the operation of a hotel due to the intense interaction that occurs. difficult work is a problem for employees, but even difficult hotel guests can complicate the work. frontline positions in hotels can create excessive workloads and cause stress to the work, and then will also result in job burnout (karatepe et al., 2012). therefore reducing job burnout and increasing job performance for employees is crucial or important for the hotel industry. literature review and hypotheses job crafting job crafting is a proactive process of employees in an effort to change mental boundaries to define the physical, emotional, cognitive, and relational scope of a job (wrzesniewski and dutton, 2001). in line with the research, tims, et al (2012) and kanten (2014) see job crafting in the perspective of work behavior that is proactive and emphasizes the efforts of employees in making adjustments to work components in such a way as to be more aligned with their needs, skills and their preferences. this proactive work behavior can be seen from the existence of employee initiatives in the form of activeness and independence in the management of work even to the extent that it actually exceeds what is needed (frese, et al, 1996). perceived organizational support perceived organizational support (pos) is the employee's perception of how organizations value their contributions and care about their well-being (eisenberger: paille, bourdeau, & galois, 2010). treatment carried out by the organization is made as a stimulus that is captured by employees which is interpreted as a perception of the support of the organization (eisenberger, huntington, hutchison, & sowa, 1986). pos is organizational support that convinces someone that the workplace organization has valued its contribution and cares for its wellbeing (rhoades & eisenberger, 2002). perceived organizational support is an organization's support that is valued globally by employees funding the extent to which the organization values contributions, pays attention to welfare, hears complaints, pays attention to life and considers the objectives to be achieved and can be trusted to treat employees fairly formed based on employee experience of organizational policies and procedures, interactions with organizational agents and assessments of the organization's concern for welfare. job performance performance can be interpreted as a person's skill level in carrying out tasks that are part of his work (byars & rue, 1985). this shows how far the individual is able to meet the provisions in his work. performance is defined as behavior or action that is relevant to the goals of the organization to be achieved (mccloy, campbell & cudeck in mukti: 2009).job performance relates to the act of doing a job. job performance is a means to reach a goal or set of goals within a job, role, or organization (campbell, 1990), but not the actual consequences of the acts performed within a job. campbell (1990) affirms that job performance is not a single action but rather a “complex activity”. performance in a job is strictly a behavior and a separate entity from the outcomes of a particular job which relate to success and productivity. job performance is defined as the total expected value to the organization of the discrete behavioral episodes that an individual carries out over a standard period of time. job crafting and job performance job crafting can change the meaning of a job by changing tasks and relationships so that employees can redesign work goals in a broader context (wrzesniewski and dutton, jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.42-49 2001). based on the job demands-resources (jd-r) model, the motivational process explains that job resources have motivational potential. employees who have work resources will mobilize these resources to get more other resources. one aspect of job crafting that distinguishes construction from being related is the fact that job crafting includes not only the limits of physical tasks and the limits of work, but also the cognitive meaning of the task and work more generally. the job crafting process has deep consequences for individuals. job crafting changes the meaning of work changing tasks and relationships in the workplace in a way that allows people to reframe their work goals in broader terms (wrzesniewski & dutton, 2001). tims et al. (2012) found that crafting job resources was positively correlated with peerrated performance. job crafting may be positively related to performance, possibly because employees craft their work environment such that it provides them with the resources needed to perform their job tasks. given that job resources are functional tools with which work goals can be achieved (demerouti et al., 2001), a positive relationship between resources and performance would be assumed. thus, the first proposed hypothesis is: h1. job crafting has a positive effect on job performance. pos and job performance employees with a sense of pos feel that in circumstances where they need work or life support, the organization is willing to lend a helping hand; employees personally feel respected, cared for, and recognized, and in turn display increased cooperation, identification, diligent performance, appreciation, and reciprocity among workers. based on the principle of reciprocity, employees with pos notonly help coworkers, but also increase their own job satisfaction and organizational commitment, while reducing resignations and absenteeism, thus stimulating employee job performance (rhoadesand eisenberger,2002;aselage and eisenberger,2003). lynchetal (1999) state that job performance and pos have a significant relationship. thus, the second proposed hypothesis is: h2. perceived organizational support has a positive effect on job performance. mediating role job burnout the concept of burnout was first introduced in 1974 by a clinical psychologist named herbert freudenberger. the researchers defined burnout as a condition of extreme stress and fatigue experienced by volunteers at the free clinic in new york managed by herbert (lailani et al., 2005). then in 1981, maslach and jackson explained the concept of burnout. the definition of job burnout according to them is the negative psychological experience felt by individuals as a result or consequence of prolonged work stress. leats and stolar in (lailani et al., 2005) define burnout as emotional and mental fatigue caused by situations that are full of involvement and stressful demands, which are combined with high expectations for achieving good performance. based on the jd-r model, individuals who increase their work resources will result in more involvement in their work and show lower burnout rates (bakker and demerouti, 2016). tim et al. (2013) found that job crafting can reduce the level of burnout caused by work demands and job resources. furthermore, when employees increase their work resources, they can provide better performance. individuals who do job crafting can increase their resources, prevent erosion or the lack of available work resources, which can result in lower levels of fatigue. based on perspective of cor theory, individuals actively invest in resources for protection against situational demands or negative experiences (hobfoll, 2002). hence, the individual resourcefulness of job crafting will decrease burnout through the coping mechanism of balancing job demands and resources. recent evidences also indicate that job crafting improves task performance through reducing exhaustion of employees (demerouti et al., 2015; petrou et al., 2015). therefore job crafting is negatively related to job burnout. job crafting will be instrument in improving job performance by proactively coping burnout. thus, the third and fourth proposed hypothesis are: h3. job crafting has a negative effect on job burnout. jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.42-49 h4. job burnout will mediate the relationship between job crafting and job performance. work-related burnout and low pos have many of the same behavioural consequences and it is the relationship between these two phenomena that the current research aimed to explore. according to tabacchi et al. (1990), high levels of pos, mainly the aspects relating to supervisory support, function as a crucial antecedent to the prevention of burnout. for instance, bakker, demerouti and verbeke (2004) found that burnout fully mediates the effects of job resources (or lack of resources) on job performance, and schaufeli and bakker (2004) showed that burnout fully mediates the effects of both job demands and job resources on turnover intentions. thus, the fifth and sixth proposed hypothesis is: h5. perceived organizational support has a negative effect on job burnout. h6. job burnout will mediate the relationship between pos and job performance. research methods sampling the data was collected from employees at hotel (3 and 4 stars) in purwokerto, banyumas. questionnaire were given frontliner employees in this area include front office, food and beverage (waiter and cashier) and house keeping. human resource managers returned the completed questionnaires directly to the researcher. out of 282 distributed questionnaire, 282 usable rensponses were collected and representing a respone rate of 100%. measures each variable was measure with a previously developed scale. job crafting was measured using 12 items proposed by leana et al. (2009) while individual crafting and collaborative crafting were each measured with six items. individual crafting was measured with item such as, “introduced new approaches on your own to improve your work”. collaborative crafting was measured with item such as, “work together with your cowokers to introduce new approaches to improve your work”. pos was measured by 5 instruments used by researchers einsenberger et al.,1997), including “my organization cares about my opinion” and “my organization takes pride in my accomplishments at work”. job performance in this study was measured by 5 instruments used by researchers williams and anderson (1991), including “i adequately complete assigned duties” and “i fail to perfome essential duties”. job burnout in this study was defined as physical and emotional exhaustion from employees due to prolonged work stress. the measurement of this variable uses mbi (maslach et al, 1996) consisting of 15 instrument items divided into three dimensions, namely emotional exhaustion with 5 instrument items, depersonalization with 4 instrument items, and reduced personal accomplishment with 6 instrument items. some item include “i feel emotionally drained from my work” and “i feel exhilarated after working closely with my recipients”. the mbi is an indicator commonly used to measure job burnout and has been validated by researchers prentice et al, (2013). all constrcts were measured using fivepoint likert scale ranging from “strongly disagree” to “strongly agree”. question relating to demographic data such as gender, age, last education, work period amnd position were also included in questionnaire. results and discussion sample characteristic the valid sample of 282 questionnaire revealed that 49% of the hotel employees were male (n=137) and 51% were female (n=145). their ages ranged from 19 to 51 years and their work period range from 115years and their last education 37% was graduated from senior high school or vocational (n=102), 27% was d1 (n=77), 31% was d3 (n=88) and 5% was s1 (n=15) psychometric properties of the measure confirmatory analysis is intended to identify the feasibility of each indicator for structural equation modeling (sem) analysis. the measurement model for confirmatory factor analysis includes all research indicators. this can be seen from the estimate value for each indicator, if the results are significant (p < 0.05), then the indicator can support the factors / variables. the results of jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.42-49 this analysis can be seen in the following table 1. ----------------------------------------- table 1. regression weight confirmatory analysis validity test consists of two types, namely convergent validity (is the result of factor loading, composite reliability, ave) and discriminant validity (is the result of a comparison between the square root values of ave with correlations between constructs). based on factor loading value of all indicators, which is owned by each latent variable is very good because it has a factor loading value of ≥ 0.70. so, all latent variables are considered suitable for use in the model. furthermore ave value is used to assess the feasibility of discriminant validity. discriminant validity test is used to measure a construct different from other constructs. the way to test it is to compare the square root values of average variance extracted (ave) with correlations between composites (constructs). table 2. discriminant validity test results. based on table 3. it can be concluded that ave constructs job crafting (0.740), perceived organizational support (0.709), job burnout (0.676), and job performance (0.744). this shows that all ave values for each variable are greater than the square correlation between constructs (good convergent validity requirements). test of hypothesis to find out the effect of job crafting and perceived organizational support on job burnout, and the effect of job crafting and perceived organizational support on job performance is done using structural equation modeling analysis, the results of structural equation modeling analysis can be seen in the following table: table 3. standardized regression weight c.r t table job performa nce <- job crafti ng 2,331 1,960 positif significa nt job performa nce <- pos 2,400 1,960 positif significa nt job burnout <- job crafti ng -2,008 1,960 negatif significa nt job burnout <- pos -4,068 1,960 negatif significa nt from the table 4. displays result that h1. job crafting was positively related to job performance with t table, c.r> t table (2.333> 1.960). h2. pos was positively related to job performance with t table, c.r> t table (2,400> 1,960). h3. job crafting was negatively related to job burnout with c.r> t table (-2.008> -1,960) and h5. pos was negatively related to job burnout with t table, c.r> t table (-4.068> -1.960) to verify the mediating role of job burnout was carried out using the sobel test. sobel test results can be seen in the following table: table 4. mediation testing results variabel t value t table description job crafting pos 1,586 2,193 1,960 1,960 not mediate mediate from these results it can be seen that the calculated t value < t table, it can be concluded that the job burnout variable does not mediate the relationship between job crafting and job performance, so h4 which states that job burnout will mediate the relationship between job crafting and job performance is rejected . job burnout variable mediates the relationship between perceived organizational support and job performance, so h6. which states that job burnout will mediate the relationship between pos and job performance is accepted. conclusion estima te s.e. c.r. p job_burnout <-- job_craftin g -,104 ,052 2,008 0,045 job_burnout <--pos -,203 ,050 4,068 0,000 job_performan ce <-- job_burno ut -,245 ,094 2,618 0,009 job_performan ce <-- job_craftin g ,181 ,078 2,331 0,020 job_performan ce <--pos ,180 ,075 2,400 0,016 job crafting pos job burnout job perfor mance job crafting 0,740 pos 0,003 0,709 job burnout 0,018 0,068 0,676 job performanc e 0,030 0,042 0,051 0,744 jurnal akuntansi, manajemen dan ekonomi , vol. 23., no. 02, year 2020, pp.42-49 this study examined the relationship between job crafting, pos, and job performance in hospitality industry, specially considering mediating role of job burnout. findings support job crafting has a significant positive effect on job performance; pos has a significant positive effect on job performance; job crafting has a significant negative effect on job burnout; pos has a significant negative effect on job burnout; job burnout does not mediate the relationship between job crafting and job performance; and job burnout mediates the relationship between pos and job performance. there are several theoretical implications in this study. first this study contributed to the development of literature on job crafting by measuring the relationship between job crafting and pos with job performance in the context of the hospitality industry. second, this study also included the job burnout variable as a mediating relationship. the results of this study can be seen that job burnout is a mediator in the relationship between pos and job performance. based on jd-r theory (bakker and demerouti, 2016) and cor theory (hobfoll, 1989), the results of this study are in line with these two theories. the findings in this study contribute to the development and strengthening of knowledge by revealing the role of job burnout variables in the relationship between job crafting, pos and employee job performance. thus, this study shows that job burnout is a mediating variable or can be said as a bridge that is quite important and will determine how the influence of pos on job performance. result in goodness of fit index in this research determain has several marginal evaluation model. the result of probability value is 0,000 so the model is marginally. this indicates that there is no significant difference between the data covarience matrix and estimated covariance matrix. the result of gfi and agfi also show marginally evaluation model because the result is less than ≥0.90. the futher research should be noted about the goodness of fit index and the model tested must have a better suitability. the futher research also can explore more these topics in other parts of industry and can explore such relationship by expanding and considering related variables that may influence outcomes or even be specific to some service sectors. references babakus, emin., ugur yavas., nicholas j. ashill. 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(2013). job crafting and cultivating positive meaning and identity in work. dalam a. b. bakker (eds), advances in positive organizational psychology vol. 1, p. 281-302. london: emerald. . correspondence to : febriwidianto22@gmail.com received: march, 12, 2020 accepted: march, 21, 2020 published: march, 30, 2020 jurnal akuntansi, manajemen dan ekonomi vol 22, no 1, pp.12-20 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction along with the rapid development of science and technology in indonesia, many new creative industries are emerging. one of them is the application-based or online transportation industry. according to comscore data as of december 2017, there were 15.73 million people using online transportation applications in indonesia. indonesia has several companies engaged in the field of application-based or online transportation, both car, and motorcyclebased. in purwokerto, the online transportation industry only began to develop in 2017, marked by the entry of one of the online transportation companies, namely pt aplikasi karya anak bangsa, or better known as gojek indonesia. in purwokerto itself online transportation is still very new. in receiving a new information technology-based service, not all people are able to easily understand and accept the new service. therefore it is necessary to measure the level of acceptance and understanding in using services by measuring the behavior of its users (jogiyanto, 2007). in behavioral information systems, there are several theories that can be used to study and measure user behavior in receiving information systems. and one of the most frequently used theories is the technology acceptance model (jogiyanto, 2007). technology acceptance model (tam) is a theory that was first introduced by fred d. davis, jr. in 1986. according to davis (1986), this theory has two main constructs, that construct is perceived usefulness and perceived ease of use (perceived ease of use). this model argues that the acceptance of information technology systems is determined by these two constructs (davis, 1986). the perception of usefulness and perceived convenience is a belief about the decision making process. thus if someone feels that the information system is useful and easy to use, he will use it. conversely, if someone feels that the information system is less useful and difficult to do so he will not use it. perceived usefulness and perceived ease of use both have an influence on behavioral intention. technology users will have an interest in using technology if they find the technology system useful and easy to use. perceived ease of use also affects perceived usefulness but not vice versa. system users will use the system if the system is useful whether the system is easy to use or difficult to use. systems that are difficult to use will still be used if the user feels that the system is still useful (jogiyanto, 2007). while the quality variable is one of the external variables that was first proposed by venkatesh & davis (2000). technology acceptance model on gojek applications in purwokerto yohanes febri widianto1, haryadi2, devani laksmi indyastuti3 1,2,3 fakultas ekonomi dan bisnis, universitas jenderal soedirman abstract this research is a quantitative study on the application of gojek in purwokerto. the purpose of this study was to analyze the acceptance of gojek applications in purwokerto using the technology acceptance model. this study uses the structural equation modeling analysis method using the smartpls3 application. the results of the analysis show that (1) perceived ease of use has a positive effect on perceived usefulness, (2) perceive usefulness is not significant and has a negative effect user attitudes, (3) perceived ease of use has a positive effect on user attitudes, (4) quality has a positive effect on user attitudes,(5) perceived usefulness is not significant and has a negative effect on behavior to use, (6) user attitude positively effect behavior to use. keywords technology acceptance model, structural equation modeling, smartpls, gojek jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 12-20 pada penelitian yang diterbitkan suhud, wibowo, khairi, dan wilson (2019) dan normalini (2019). sementara pada penelitian yang dilakukan adhiputra (2015) dan salloum (2018) menunjukkan pengaruh positif antara persepsi kegunaan terhadap sikap pengguna. dari hasil penelitian yang dilakukan li & zhang (2002) dan chotimah (2017) menunjukkan kualitas yang positif terhadap sikap pengguna. penelitian sebelumnya maharidho, haryono, dan wahyono (2018) dan normalini (2019) menyatakan bahwa persepsi mengenai penggunaan positif terhadap penggunaan teknologi. penelitian ini juga untuk mempelajari kembali penelitian mulyani & kurniadi (2015) dan suhud et, al. (2019) dan juga penelitian yang dilakukan oleh mulyani & kurniadi (2015) dan rahayu, budiyanto, dan palyama (2017). hasil penelitian mulyadi & kurniadi (2015) menyatakan bahwa persepsi tersebut mengenai negatif terhadap sikap pengguna, sedangkan dalam penelitian suhud et, al. (2019) menunjukkan perbedaan positif antara persepsi positif terhadap sikap pengguna. hasil penelitian yang dilakukan oleh mulyadi & kurniadi (2015) menunjukkan tidak adanya perbedaan antara sikap terhadap penggunaan dalam teknologi, sedangkan dalam penelitian rahayu et, al. (2017) menunjukkan pengaruh positif antara sikap terhadap hubungan dalam menggunakan teknologi. literature review classical growth theory behavior is an action carried out by someone. in the context of the use of information technology systems, behavior (use) is a reality (actual use) of technology (jogiyanto, 2007). factors that influence the purchase, use, of goods and services through theories that affect consumers, lifestyles, consumer personalities, consumer knowledge, consumer attitudes, demographics, and consumer environment (sumarwan, 2004). according to peter & olson (2014) in the consumption process, consumers consider the environment, affection, cognition, consumer knowledge, and consumer attitudes in deciding the purchase and use of goods or services. applications are types of software both on the computer or on the smartphone. software is a program that contains a line of instructions (commands) sent in computer language that is understood by computer hardware (sutarman, 2009). an application is a program that is commonly used by users to perform specific tasks; for example to make documents, manipulate photos, or make financial reports (kadir & triwahyuni, 2013). the technology acceptance model or tam is an acceptance model developed by fred d. davis, jr. in 1986 which was adapted from the reasoned action theory or tra proposed by ajzen and feishbein in 1980. this technology acceptance model is the most commonly used theory used if you want to measure the level of user acceptance (jogiyanto, 2007). davis (1986) states that the technology acceptance model (tam) places the attitude factor of each user relationship with two variables namely; usability (usability), and ease of use (ease of use). empirically this model has been shown to provide an overview of aspects of computer use that can easily accept information technology that is in accordance with what it wants (jogiyanto, 2007). in the technology acceptance model (tam) there are 2 construct variables that can influence user behavior, namely perceived ease of use and perceived usefulness. both of these variables can explain aspects of user behavior. so that by seeing the ease and usability, the use of information technology can be used as a reason for someone to behave or act as a benchmark in accepting an information technology (davis, 1986). the easier use of information technology indicates that less effort must be done to improve its performance using information technology. similarly, the more benefits felt by users, will have a greater influence in using information technology. (jogiyanto, 2007). zarmpou (2012) in maharidho et al. (2015) said that the most influential variable on user acceptance of technology especially mobile-based technology was perceived usefulness and perceived ease of use, trustworthiness, innovation, functionality, and behavioral interest. davis (1986) argues, the definition of perceived usefulness as the extent to which an individual believes using a technology will improve his work performance. if the individual finds the information media useful then he will use it. conversely, if the individual thinks the media information is less useful then he will not use it. according to aditya & wardhana (2016) percieved usefulness is defined as the usefulness of a technology so that if the usefulness of a technology is doubtful, the intention of people to use it will decrease or not even appear. jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 12-20 according to davis (1986), the definition of perceived ease is the extent to which individuals believe that the technology used can be used without requiring great effort. if the individual considers the information media easy to use then he will use it. conversely, if an individual considers the media information is not easy to use then he will not use it. perceived ease is defined as the extent to which a person believes that using a particular technology can be free from both physical and mental effort (falode, 2018). attitudes toward use are defined by davis et al. (1989) in jogiyanto (2007) as positive or negative feelings from someone if they have to do the behavior that will be determined. attitudes toward use are also defined by mathieson (1991) as the user's evaluation of his interest in using the system. according to tubalawony (2015) attitudes towards use in the technology acceptance model (tam) are conceptualized as attitudes towards the use of systems in the form of acceptance or rejection as an impact when someone uses a technology in work. quality is a dynamic condition related to products, services, human resources, processes, and the environment that meets or exceeds expectations (tjiptono, 2005). according to venkatesh & davis (2000) information quality is a perception of how well the system works to achieve the goals desired by users. according to normalini (2019) the quality of information systems focuses on the performance of information system components, namely how well the capabilities of hardware, software, human, procedures, databases, communication networks, data, activities, networks, and technology of information systems in producing information for the the user. the usefulness or benefits of a technology will not be separated from the ease of use. to maximize the benefits provided by a technology, the technology must be able to be operated without too much effort both physically and mentally. previous studies have shown that the construct of ease of use affects perceptions of usability, attitudes, interests, and actual use (jogiyanto 2007). suhud et al. (2019) conducted research on the technology acceptance model in online transportation applications by using variables of perceived convenience, perceived usefulness, attitudes, and behavior. the study concluded that the perception of ease has a positive influence on perceived usefulness. similar results were obtained by normalini (2019) who conducted research with a similar model. h1: perceived ease has a positive effect on perceived usefulness. previous studies have shown that the construct of perceived usefulness positively and significantly influences the use of information systems. previous studies have also shown that perceived usefulness is the most significant and important construct that influences attitudes in using technology compared to other constructs (jogiyanto, 2007). in a study conducted by adhiputra (2015) shows that perceived usefulness has a positive and significant effect on user attitudes. the research was conducted using the technology acceptance model on bank customers using internet banking. the same result was obtained by salloum (2018) who conducted research using the technology acceptance model on e-learning in dubai. h2: usability perception has a positive effect on user attitude. ease of operation of a technology is how much the user spends effort to get what he wants from the technology. if the technology is too complex and difficult for the user to use, the user's intention will tend to reject the technology. jogiyanto (2007) states that previous studies show that the construct of perceived ease influences user attitudes. mulyani & kurniadi (2015) conducted a study on the student information terminal at amik arrowroot using a technology acceptance model and found that ease of perception variables were not proven to significantly influence user attitudes. different results obtained by suhud et al. (2019) which states that perceived ease has a positive effect on user attitudes. h3: perceived ease has a positive effect on user attitudes. zhang & dran (2000) evaluate software quality from the perspective of user satisfaction and dissatisfaction. their study shows that software design features can be considered cleanliness and motivating factors that contribute to dissatisfaction and user satisfaction with software. according to li & zhang (2002) motivational factors in using an information technology are: enjoyment, results, user empowerment, credibility, visual appearance, and the content of the information provided. li & zhang (2002) get results that web quality has a positive and significant effect on user attitudes. the better the quality offered by the website, it will help consumers to complete transactions smoothly jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 12-20 and make them want to use it again. similar results were also found by chotimah (2017) who conducted research on mobile applications that website quality has a positive effect on user attitudes. h4: quality has a positive effect on user attitude users may not have a strong motivation to adopt a technology unless the service offered by the technology creates a new choice where the service actually provides more benefits than conventional methods. according jogiyanto (2007) previous studies showed that the construct of perceived usefulness positively and significantly affected the use of information systems. in research conducted by maharidho et al. (2018) there is a positive influence between perceived usefulness of behavior to use a technology. the research was conducted using a technology acceptance model in streaming music applications. similar results were obtained by normalini (2019) using the technology acceptance model. h5: perceived utility has a positive effect on behavior to use technology. attitudes affect user behavior based on an individual's belief in a particular technology and also the evaluation of that individual. user behavior will depend on the attitude of the user. the results of previous studies indicate that attitude has a positive effect on behavior. however, some research also shows that this attitude does not have a significant influence on behavioral interest. (jogiyanto, 2007). fathema et al. (2015) got results after conducting research on learning management systems at tertiary institutions that attitudes had a positive effect on behavior in using technology. the same results were obtained by rahayu et al. (2019) after conducting research using the technology acceptance model on e-learning systems at atma jaya university yogyakarta. whereas different results were found mulyani & kurniadi (2015) which said that user attitudes had a negative effect on behavior. h6: user attitude positively influences behavior in using technology. research methods this type of research is a quantitative study, which is based on philosophy, positivism, used to examine populations or certain samples. data collection using research instruments, analysis, statistical data with the aim of testing the hypothesis set (sugiyono, 2005). the method used is the survey method using a questionnaire distributed to respondents as a means of collecting data for analysis. the location of this research will be conducted in the city of purwokerto, kab. banyumas, central java. the object of this research is the effect of perceived convenience variables on perceived usefulness, the effect of perceived convenience variables, perceived usefulness, and the quality of attitudes to use technology, as well as its influence on behavior in using technology. the subjects of this study are online transportation users who have used the gojek application in the city of purwokerto. the population in this study are application-based or online transportation users in purwokerto city. indicators in this study amounted to 23 indicators, so that at least require 23 x 5 or 115 samples. to avoid mistakes like answers not being filled properly, as many as 15 questionnaires will be added. the sampling method in this study was carried out by the convenience sampling method, which is a sample technique based on the availability of elements and the ease of getting it. the sample was taken because the sample is in the right place and time and suitable as a source of data (sugiyono, 2015). in this study the sample criteria used were respondents who had used the gojek application in purwokerto. the data used in this study are primary data in the form of a questionnaire about perceived ease of use, perceived usefulness, quality, attitude toward use, and behavior in using technology. data collection is done by distributing questionnaires conducted by providing a google form link to the intended respondent to be filled out through the respondent's equipment. this research uses structural equation modeling with the help of smartpls3 application. the first thing to test is factor analysis, then tests of convergent and discriminant validity and reliability testing will be conducted. then after conducting a validity and reliability test a path analysis will be conducted, then after that a goodness of fit test will be conducted, then a hypothesis test will be conducted. discussion the total number of questionnaires from respondents to be processed amounted to 115. respondents were dominated by respondents aged 17-30 years as many as 62 people or 53.9%. followed by respondents aged 31-55 years as many as 47 people or 40.9%. the rest are respondents aged <17 jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 12-20 years with a total of 6 people or 5.2%. this shows that most gojek application users are young respondents who often use existing technologies to support their activities and always follow the development of existing technology, especially in the city of purwokerto. followed by respondents who were older, namely between 31-55 years who did not really follow the development of technology and rarely use it in everyday life. factor analysis is part of the structural equation modeling (sem) stage which aims to test whether the factors used are able to describe or represent a variable. a factor or indicator is said to be able to describe a variable if the loading factor value (λ)> 0.5 or> 0.7 (sugiyono, 2015). following are the results of calculation of factor analysis using the smartpls application: loading factor att behavior peu pu quality att1 0,881 att2 0,896 att3 0,742 att4 0,864 bv1 0,902 bv2 0,883 bv3 0,904 bv4 0,883 bv5 0,792 peu1 0,779 peu2 0,850 peu3 0,837 peu4 0,792 peu5 0,872 pu1 0,820 pu2 0,853 pu3 0,833 pu4 0,769 pu5 0,747 q1 0,724 q2 0,737 q3 0,818 q4 0,737 from the calculation of the table above, it can be seen that each factor or indicator used is able to describe each variable that is formed properly because each loading factor value generated is above 0.7. the indicator that has the largest loading factor value is the bv3 indicator or the indicator that forms the third behavior variable of 0.904. so the bv3 indicator can describe the behavior variable of 90.4%. while the indicator with the smallest loading factor value is the q1 indicator or the indicator that forms the first quality variable of 0.724. so the indicator q1 can describe the quality variable of 72.4%. convergent validity is related to the principle that the meters of a construct should be highly correlated. convergent validity test parameters seen from the average variance extracted (ave) value must be above 0.5. convergent validity test results are as follows: average variance extracted (ave) att 0,719 behavior 0,763 peu 0,684 pu 0,649 quality 0,570 from the calculation results in the above table it can be concluded if the perceived of usefulness variable has a ave value of 0.649 where this value is above 0.5, so the convergent validity can be said to be valid. furthermore, the perceived ease of use variable has a ave value of 0.684 where this value is above 0.5, so convergent validity can be said to be valid. quality variable which has a ave value of 0.570 where this value has also exceeded 0.5, convergent validity can be said to be valid. the four variables attitude user (attitude) which has a ave value of 0.719 which is already above 0.5, so the convergent validity can be said to be valid. the last variable, behavior, has a ave value of 0.763 where this value has also exceeded 0.5, so convergent validity can be said to be valid. it can be concluded that each construct has good convergent validity because each construct has an average variance extracted (ave) value above 0.5. discriminant validity can be seen from the higher cross loading values for the constructs it measures compared to the cross loading values in other constructs. cross loading att behavior peu pu quality att1 0,881 0,777 0,779 0,606 0,560 att2 0,896 0,737 0,758 0,637 0,663 att3 0,742 0,694 0,528 0,346 0,432 att4 0,864 0,731 0,715 0,538 0,638 bv1 0,769 0,902 0,745 0,526 0,525 bv2 0,788 0,883 0,781 0,550 0,558 bv3 0,773 0,904 0,750 0,452 0,514 bv4 0,771 0,883 0,697 0,475 0,559 bv5 0,675 0,792 0,616 0,521 0,581 peu1 0,624 0,580 0,779 0,610 0,519 peu2 0,705 0,746 0,850 0,451 0,470 peu3 0,673 0,752 0,837 0,443 0,442 jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 12-20 peu4 0,677 0,640 0,792 0,603 0,598 peu5 0,733 0,695 0,872 0,614 0,650 pu1 0,580 0,485 0,625 0,820 0,558 pu2 0,561 0,532 0,598 0,853 0,583 pu3 0,507 0,417 0,487 0,833 0,615 pu4 0,448 0,418 0,413 0,769 0,547 pu5 0,444 0,456 0,514 0,747 0,591 q1 0,440 0,475 0,477 0,468 0,724 q2 0,456 0,474 0,433 0,399 0,737 q3 0,526 0,467 0,470 0,447 0,818 q4 0,603 0,472 0,573 0,784 0,737 from the calculation results in the above table, it can be concluded that each cross loading value for the construct that is measured is higher than the cross loading value for other constructs. then the discriminatory validity is said to be good. for the reliability test the parameter is the cronbach’s alpha value must be higher than 0.6 and composite reliability must be above 0.7. the results of the reliability test are as follows: reliability test cronbach's alpha composite reliability att 0,868 0,911 behavior 0,922 0,941 peu 0,884 0,915 pu 0,864 0,902 quality 0,750 0,841 from the reliability test results in table 4.7, each construct has a cronbach's alpha value above 0.6 and a composite reliability value above 0.7. then it can be concluded that each construct tested is reliable. the results of the path analysis or path analysis using smartpls get results as shown below: the effect of peu variable on pu was 0.663. the effect of pu variable on att was 0.043. the effect of peu variables on att was 0.651. the effect of the q variable on att is 0.224. the influence of pu variable on behavior is 0.044. the influence of att variable on behavior is 0.838. the biggest loading factor value on the pu variable is on the pu2 indicator of 0.853. the smallest loading factor value on the pu variable is on the pu5 indicator of 0.747. the largest loading factor value on the peu variable is on the peu5 indicator of 0.872. the smallest loading factor value on the peu variable is on the peu1 indicator of 0.779. the biggest loading factor value on the quality variable is in the q3 indicator of 0.818. the smallest loading factor value on the quality variable is in the q1 indicator of 0.724. the biggest loading factor value on the att variable is on the att2 indicator of 0.896. the smallest loading factor value on the att variable is on the att3 indicator of 0.742. the biggest loading factor value on the behavior variable is on the bv3 indicator of 0.904. the smallest loading factor value on the behavior variable is on the bv5 indicator of 0.792. the biggest loading factor value of the whole model is in the bv3 indicator of 0.904. the smallest loading factor value of the entire model is in the q1 indicator of 0.724. goodness of fit criteria value information srmr ≤ 0,100 0,100 fit d_ul s > ci (1,5) 2,734 fit d_g > ci (0,8) 1,299 fit chisqua re < chisquare tabel (135,5) 706,146 not fit nfi between 0 and 1 0,701 fit goodness of fit test results above indicate that all criteria have met the criteria except chi-square. modifications to the model have been made but the results of chi-square still do not meet the criteria, so results that do not fit these criteria are tolerated. gof test results for chi-square are tolerated because all indicators used have met the cfa criteria which must be above 0.7, so deletion of indicators is not possible because the whole has fulfilled the existing criteria. from the results of the construct validity test both convergent and discriminant and the reliability test has met the existing criteria so that the jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 12-20 model is said to be valid and reliable. for these reasons, gof test results for chi-square that are not fit are tolerated. to conduct a hypothesis test, a hypothesis is accepted if the t-statistics value from the calculation results is greater than 1.64. here are the results of calculations to test the hypothesis: hypothesis test results t statistics p values information att -> behavior 19,965 0,000 accepted peu -> att 9,343 0,000 accepted peu -> pu 12,822 0,000 accepted pu -> att 0,653 0,257 rejected pu -> behavior 0,829 0,204 rejected quality > att 3,100 0,001 accepted h1 perceived ease of use has a positive effect on perceived of use based on the results of hypothesis testing, the t-statistics value in the table above is 12.822 and the p value is 0.000. the results of these two values conclude that perception of ease is significant and has a positive effect on perception of usability, because it meets the t-statistic requirements above 1.64 and p below 0.05. thus it can be said that the results of hypothesis 1 in this study were accepted. h2 perceived of use has a positive effect on user's attitude based on the results of hypothesis testing, the t-statistics value in the table above is 0.653 and the p value is 0.257. the results of these two values conclude that the perception of usability is not significant and negatively affects the user's attitude, because it does not meet the t-statistic requirements above 1.64 and p below 0.05. thus it can be said that the results of the hypothesis 2 test in this study were rejected. h3 perceived ease of use has a positive effect on user's attitude based on the results of hypothesis testing, the t-statistics value in the table above is 9,343 and the p value is 0,000. the results of these two values conclude that perceived ease is significant and has a positive effect on user attitudes because it meets the t-statistic requirements above 1.64 and p below 0.05. thus it can be said that the results of hypothesis 3 in this study were accepted. h4 quality has a positive effect on user attitude based on the results of hypothesis testing, the t-statistics value in the table above is 3.100 and the p value is 0.001. the results of these two values conclude that quality is significant and has a positive effect on user attitudes, because it meets the t-statistic requirements above 1.64 and p below 0.05. thus it can be said that the results of hypothesis 4 test in this study were accepted. h5 perceived usefulness has a positive effect on behavior based on the results of hypothesis testing, the t-statistics value in the above table is 0.829 and the p value is 0.204. the results of these two values conclude that the perception of usability is not significant and has a negative effect on behavior to use, because it does not meet the t-statistic requirements above 1.64 and p below 0.05. thus it can be said that the results of the hypothesis 5 test in this study were rejected. h6 the user's attitude has a positive effect on behavior in using (behavior) based on the results of hypothesis testing, the t-statistics value in the table above is 19,965 and the p value is 0,000. the results of these two values conclude that the user's attitude is significant and has a positive effect on behavior in using, because it meets the tstatistic requirements above 1.64 and p below 0.05. thus it can be said that the results of the hypothesis 6 test in this study were accepted. conclusions based on the results of the analysis and discussion of the technology acceptance model on the gojek application in purwokerto, the conclusion is the ease in operating the gojek application also influences the results obtained from the use of the application. the ease of use of the gojek application affects the benefits of the application to be more effective, faster, easier, and minimize the level of error in using the application. users of the gojek application in purwokerto feel that the use of the application does not provide effectiveness and efficiency to them. this is because users prefer to use a personal vehicle rather than using a motorcycle taxi because it is considered faster and more efficient. users of the gojek application use more of the additional facilities offered by the application such as gofood. gofood is an additional facility offered by the gojek application for delivery orders for food or drinks ordered by users. so users tend not to accept the gojek application when viewed in terms of the benefits provided to them. jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 12-20 when gojek application users in purwokerto feel that the application is not too difficult to use and easy to learn they will have an accepting attitude towards the gojek application. when users feel that the technology is easy to use they will feel comfortable so the attitude they give towards the technology will tend not to reject the use of the gojek application. when the application or technology offered is of good quality in terms of the information offered and the system provided, users of the gojek application will tend to accept the technology. when users in purwokerto feel that the application is of good quality and not made improperly, users will feel happy and comfortable when using it so they will accept the application. lack of interest in gojek application users in purwokerto to use the gojek application to order ojeg online. users prefer to use a private vehicle rather than order a motorcycle taxi on the gojek application. this is considered more effective and efficient for them to carry out their activities. behavior in using the gojek application in purwokerto is more influenced by his attitude, ie the user feels comfortable and happy using it, regardless of whether the application provides benefits or not. users of the gojek application in purwokerto use the gojek application on the basis of their pleasure, comfort, and love for the application. if the user feels comfortable and happy using the application, then the user will tend to use the gojek application for other things. in addition, the gojek application users in purwokerto will motivate others both friends and family who may have never used the gojek application to try to use it.. references adhiputra, m. w. 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(2005). prinsip-prinsip total quality services. yogyakarta: andi. tubalawony, j. (2018). kajian dukungan teknologi berdasarkan konsep technology acceptance model dan dampaknya terhadap kinerja perusahaan …. jurnal soso-q, 4, 53–62. https://ojs.unpatti.ac.id/index.php/sosoq/artic le/view/693 venkatesh, v., & davis, f. d. (2000). theoretical extension of the technology acceptance model: four longitudinal field studies. management science, 46(2), 186–204. https://doi.org/10.1287/mnsc.46.2.186.11926 zhang, p., & dran, g. v. (2000). satisfiers and dissatisfiers: a two-factor model for website design and evaluation. journal of the american society for information science , 1253-1268. correspondence to : fanny.rezkiya@gmail.com received: sep 19, 2020 revised: oct, 20, 2020 accepted: nov, 17, 2020 jurnal akuntansi, manajemen dan ekonomi vol.22, no. 4, pp. 9 15 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction firm value is the investor's perception of the company's success rate, which is often associated with stock prices. the high share price certainly makes the company value increase. the main objective of the company is to maximize the company's wealth or value. debt to equity ratio analysis is often used to determine each rupiah of own capital that is used as collateral for debt. an increase in der means an increase in the interest expense borne by the company. with the increase in der, the company's profit has decreased. therefore, the higher the der of a company, it will make investors very careful in considering their investments, thus lowering the company's value. the higher the return on equity, the higher the rate of return on investment from the results of the company's equity in gaining profits from the equity owned by the company. on the other hand, the existence of company efficiency in using company profits or profits can be a positive signal for investors, in order to accrue company value through its share price. price earning ratio can be used to measure how investors assess future growth prospects which are reflected in the stock price that investors are willing to pay for every rupiah of profit the company receives. so that the higher the per, the better the prospect of the company as seen from the earnings generated so that the higher the company value. this research was conducted in the mining sector because this sector has to incur increasingly expensive rents for mining land. the land used for mining is state-owned land and the government has also set export regulations for mining products which are intended to prevent illegal transactions so that mineral supplies in indonesia do not run out quickly. in other words, on the one hand the company has a large amount of costs to be paid so that the company has to increase its sales, but the products to be sold are limited by the government. the mining sector on the idx are 44 issuers. the idx is a means of bringing together share sale and purchase offers that companies can use to obtain additional funds as capital. this study aims to analyze and determine the effect of the debt to equity ratio, return on equity and price earning ratio on company value at mining companies listed on the indonesia stock exchange for the period 2014-2018. the influence of debt to equity ratio, return on equity and price earning ratio towards mining company value listed in indonesian stock exchange for the period 2014-2018 sri wahyuni1, evi irwan sari br sianturi2, dina ria restu uli p3, fuji astuty4 1,2,3,4department of accounting, faculty of economics, universitas prima indonesia, indonesia abstract the purpose of this research is to analyze and determine the effect of the effect of debt to equity ratio, roe and price earning ratio on firm value in mining companies listed on the indonesia stock exchange 2014-2018 period. this study uses a quantitative approach, this type of research is causal and deductive in nature. the sampling technique used a purposive sampling method. the study population was 44 companies and the sample used was 17 mining companies listed on the indonesia stock exchange for the period 2014-2018. the data analysis technique used multiple regression tests and classical assumptions. the test results show roe and per have a significant positive effect on firm value, der has no effect on firm value. der, roe and per affect the value of the company in mining companies listed on the indonesia stock exchange for the period 2014-2018 only 16.5%. keywords der; roe; per; company value jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 9 15 debt to equity ratio according to (utami & welas, 2019) der is used to find out the amount of funds provided by the borrower (creditor) and the company owner. according to (jusuf, 2016), in general it can be said that the higher this ratio, the greater the risk of creditors (including banks). der greater than 1 (one) indicates that the source of company asset financing comes more from debt than equity. according to (anggriawan, topowijono, & sudjana, 2017) der can be calculated using the formula: 𝐷𝐸𝑅 = 𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡 𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 return on equity according to (hidayat, 2019) roe is a measure of a company's earnings (profits) relative to the invested capital. according to (setiawanta, 2016), the higher the roe, the higher the rate of return on investment from the results of the company's equity in gaining profits from the equity owned by the company. according to (hidayat, 2019) roe can be calculated by the formula: 𝑅𝑂𝐸 = 𝐸𝐴𝑇 𝐸𝑞𝑢𝑖𝑡𝑦 price earning ratio according to (prasetyorini & fitri, 2013) per shows how much investors are willing to pay for every one rupiah of reported profits. according to (prasetyorini & fitri, 2013) companies with a high growth rate opportunity usually have a high price earning ratio as well, and this shows that the market expects profit growth in the future. according to (lebelaha & saerang, 2016) per can be calculated by the formula: 𝑃𝐸𝑅 = 𝑃𝑟𝑖𝑐𝑒 𝐸𝑃𝑆 company value according to (setiawanta, 2016), company value can be interpreted as market value in the capital market. meanwhile, according to (utami & welas, 2019), company value is the value needed by investors to make investment decisions, which is reflected in the company's market price. selling value of the company or growing value for shareholders, the value of the company will be reflected in the market price of its shares. firm value is the investor's perception of the company's success rate which is often associated with stock prices. the high share price makes the company value also high. the high company value will make the market believe not only the company's current performance but also the company's future prospects. according to (anggriawan, topowijono, & sudjana, 2017) company value can be calculated by the formula: 𝑃𝐵𝑉 = 𝑃𝑟𝑖𝑐𝑒 𝐵𝑜𝑜𝑘 𝑉𝑎𝑙𝑢𝑒 the effect of debt to equity ratio on firm value according to (hidayat, 2019) company assets financed with debt must be utilized optimally, so that the company value will increase, and vice versa. according to (musthafa, 2017), if debt increases, it will increase the level of risk, namely paying higher loan interest, expecting a higher rate of return. if the level of risk is high, it will lower the stock price so that the company's value will decrease so that confidence in the company will also decrease. according to (utami & prasetono, 2016) an increase in der means an increase in the interest expense borne by the company. with the increase in der, the company's profitability has decreased. the decline in profitability will have an impact on the decline in the company's share price. h1 : der affect firm value the effect of return on equity on firm value according to (languju, mangantar, & tasik, 2016), the higher the roe the better the position of the owner of the company so that it will lead to better investors' assessment of the company which causes an increase in stock prices and company value. according to (ayuningsih, sunarya, & norisanti, 2019), roe decreases, the possibility that investors tend to avoid buying their shares because they are worried if they do not receive the expected return along with a decline in company value. according to (panggabean, lie, jubi, & astuti, 2018) high profitability generally has a positive correlation with high stock prices which will also have a positive effect on increasing company value. h2 : roe affect firm value jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 9 15 the effect of price earning value on firm value according to (lebelaha & saerang, 2016) price earning ratio is an approach that is more popular among stock analysts and practitioners. the importance of investment for companies because to achieve a company goal through investments made by the company to add value to the company. (innafisah, afifudin, & mawardi, 2019) the higher the per, the higher the price per share of a company and indicates a good company value, so that the company's shares are blue chip in the capital market. h3 : per affect firm value methods this research conducted is a deductive research, according to (sugiyono, 2017) where to answer the problem formulation a concept or theory is used so that a hypothesis can be formulated. the hypothesis is then tested through data collection. the collected data were then analyzed quantitatively by using descriptive statistics. population and sample the population used in this study were all mining companies on the indonesia stock exchange from 2014 to 2018. the total population in this study was 44 companies. samples that are fit to the criteria are 17 companies. data analysis technique the data in this study must first meet the requirements of the classical assumptions before testing the hypothesis to get the best regression model. the data analysis technique in this research is using multiple linear regression results and discussion classic assumption test normality test the significant value of the kolmogorov smirnov test results is 0.055> 0.05 so that the research data fit to assumption of normality. multikolinearity test the multicollinearity test results show that the data in this study does not occur multicollinearity because the tolerance value of all independent variables (der, roe and per)> 0.10 and the vif value of all independent variables (der, roe and per) <10 which means that there is no correlation. among the independent variables used. autocorrelation test research data does not occur autocorrelation because of the large value du <dw <4 du or 1.7210 <2.049 <2.279 heteroskedastisity test the data in this study did not occur heteroscedasticity because the glejser test results showed a significant value of three independent variables (debt to equity ratio, return on equity and price earning ratio) greater than the significant value limit of 0.05. multiple linear regression analysis firm value = 1.019 0.167 der + 0.002 roe + 3.200 per a constant of 1.019 states that if the debt to equity ratio, return on equity, and price earning ratio are constant or have a value of 0, the company value is 1.019 units. the debt to equity ratio regression coefficient of -0.167 states that each 1 unit increase in debt to equity ratio will cause a decrease in company value by 0.167 units the return on equity regression coefficient of 0.002 states that each 1 unit increase in return on equity will lead to an increase in the value of the company by 0.002 units price earning ratio regression coefficient of 3,200 states that each 1 unit increase in price earning ratio will cause an increase in firm value by 3,200 units. coefficient of determination the value of adjusted r square shows the number 0.165 which is equal to 16.5%, which means the magnitude of the influence of debt to equity ratio, return on equity and price earning ratio on company value in mining companies listed on the indonesia stock exchange for the period 2014-2018 while the remaining 83 , 5% is influenced by other variables. f-test f count (6,513)> f table 2.72 and a significant value of 0.001 <0.05, then ha can be accepted, which means that simultaneously the debt to equity ratio, return on equity and price earning ratio jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 9 15 have a significant effect on company value in mining companies listed in indonesia stock exchange for the period 2014-2018. t-test debt to equity ratio has a value of thitung> -ttable or -1.842> -1.98969 and a significant value of 0.069> 0.05, so ho is accepted, which means that the debt to equity ratio has no effect on company value in mining companies listed on the stock exchange indonesian securities for the period 2014-2018. return on equity has a value of tcount> ttable or 3.495> 1.98969 and a significant value of 0.001 <0.05, then ha is accepted, which means that return on equity has a positive effect on company value in mining companies listed on the indonesia stock exchange in 20142018. price earning ratio has a value of tcount> ttable or 2.876>1.98969 and a significant value of 0.005<0.05, then ha is accepted, which means that price earning ratio has a positive effect on company value in mining companies listed on the indonesia stock exchange in 20142018. discussion the effect of debt to equity ratio on firm value the results of the research prove that the debt to equity ratio has no effect on company value at mining companies listed on the indonesia stock exchange for the 20142018 period. the results of this study are also in line with rahmantio, et al. (2018), namely that der has no effect on firm value. however, it is different from the research results of (utami & welas, 2019) which state that der has a negative / significant effect on firm value. according to sitanggang (2013: 73), using large amounts of debt will increase the risk borne by shareholders and tend to lower share prices. the results of this study indicate that the use of debt will not affect the value of the company, this is because mining companies in managing mining resources require a large amount of funds so that investors in deciding their investment decisions have also considered the risks that will occur. the effect of return on equity on firm value the research results prove that return on equity has a partially positive effect on company value in mining companies listed on the indonesia stock exchange for the period 2014-2018. the results of this study are also in line with the results of (setiawanta, 2016) study, namely that roe has a significant effect in a positive direction on firm value. according to (languju, mangantar, & tasik, 2016), the higher the roe the better the position of the owner of the company so that it will lead to better investors' assessment of the company which causes an increase in stock prices and company value. from the results of this study indicate that roe can be used as an indicator in increasing firm value. investors before deciding on their investment decisions must first observe the ability of a company to generate profits, if the company is able to get profits from year to year, investors are sure that the company can grow and develop well. thus, the higher the roe the mining company can obtain, the higher the company value. the effect of price earning value on firm value the results of the research prove that price earning ratio has a partial effect in a positive direction on company value at mining companies listed on the indonesia stock exchange for the period 2014-2018. the results of this study are also in line with (lebelaha & saerang, 2016), namely the price earning ratio has a significant effect in a positive direction on firm value. however, it is different from the research results of (languju, mangantar, & tasik, 2016) which state that per has no significant effect on firm value. according to (lebelaha & saerang, 2016) price earning ratio is an approach that is more popular among stock analysts and practitioners. the importance of investment for companies because to achieve a company's goals through investments made by companies to add value to the company. price earning ratio can be used as an indicator to assess how good the value of the company is because for investors if the higher the price earning ratio, the expected profit growth rate will also increase. this is a positive signal for investors which ultimately affects the increase in company value. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 9 15 conclusions partially the debt to equity ratio has no effect on firm value at mining companies listed on the indonesia stock exchange for the period 2014-2018 partially return on equity has a positive effect on company value in mining companies listed on the indonesia stock exchange for the 2014-2018 period partially price earning ratio has a positive effect on firm value at mining companies listed on the indonesia stock exchange for the period 2014-2018 simultaneously the debt to equity ratio, return on equity and price earning ratio have an effect on company value in mining companies listed on the indonesia stock exchange for the period 2014-2018 references anggriawan, f., topowijono, t., & sudjana, n. 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(2016). analysis of the effect of tato, wcto and der on firm value with roa as an intervening variable (study of manufacturing companies listed on the indonesia stock exchange 2009-2013 period. dipenogoro journal of management , 105-118. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 9 15 list of tables table 1. normality test (arial 9 bold, sentence case) one-sample kolmogorov-smirnov test unstandardi zed residual n 85 normal parametersa,b mean ,0000000 std. deviation ,84746819 most extreme differences absolute ,146 positive ,146 negative -,099 kolmogorov-smirnov z 1,342 asymp. sig. (2-tailed) ,055 a. test distribution is normal. b. calculated from data. table 2. multikolinearity test coefficientsa model collinearity statistics tolerance vif 1 inversx1 ,989 1,011 inversx2 ,858 1,166 inversx3 ,865 1,156 a. dependent variable: inversy table 3. autocorrelation test model summaryb mo del r r squa re adjusted r square std. error of the estimate durbinwatson 1 ,441 a ,194 ,165 ,86302 2,049 a. predictors: (constant), inversx3, inversx1, inversx2 b. dependent variable: inversy table 4. heteroskedastisity test coefficientsa model unstandardized coefficients standardiz ed coefficient s t sig. b std. error beta 1 (constant) ,552 ,146 3,768 ,000 inversx1 -,068 ,057 -,128 -1,194 ,236 inversx2 ,001 ,000 ,220 1,911 ,060 inversx3 1,274 ,701 ,209 1,817 ,073 a. dependent variable: absut table 5. multiple linear regresion coefficientsa model unstandardized coefficients b std. error 1 (constant) 1,019 ,232 inversx1 -,167 ,091 inversx2 ,002 ,001 inversx3 3,200 1,113 a. dependent variable: inversy table 6. coefficient determination model summary model r r square adjusted r square std. error of the estimate 1 ,441 a ,194 ,165 ,86302 a. predictors: (constant), inversx3, inversx1, inversx2 table 7. f test anovaa model sum of squares df mean square f sig. 1 regress ion 14,553 3 4,851 6,513 ,001b residua l 60,329 81 ,745 total 74,882 84 a. dependent variable: inversy b. predictors: (constant), inversx3, inversx1, inversx2 jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 9 15 h1 h2 h3 h4 tabel 8. t-test coefficientsa model t sig. 1 (constant) 4,383 ,000 inversx1 -1,842 ,069 inversx2 3,495 ,001 inversx3 2,876 ,005 a. dependent variable: inversy list of figures figure 1. model test firm value (y) debt to equity ratio (x1) return on equity (x2) price earning ratio (x3) correspondence to : ade.anggraeni@unsoed.ac.id received: 22 september 2019 accepted: 10 november2019 published: 16 desember, 2019 jurnal akuntansi, manajemen dan ekonomi vol.21, no. 3, pp. 81 86 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction personal initiative is a concept that is often in exploration in the study of the character of an entrepreneur. hirsch (1990) states that personal initiative is an essential component in entrepreneurship. personal initiative is a positive consequence of individual efforts to address challenges and obstacles in their goal pursuit. there are two things a character basis in the personal initiative that is self-starting and attitude proactive (fay and frese, 2001). personal initiative become important, especially in understanding aspects of the individual who becomes the reason an attempt has sustainability. however, in research hahn, frese, binnewies and smith (2012) against the entrepreneur in found that goal pursuit is not entirely an effect on the personal initiative. goal pursuit is higher than the meaningfulness in life and the development of self. the second aspect is the component base in eudaimonic wellbeing. the argument is in strengthened by research kiaei and reio (2014) that there is influence between goal pursuit against eudaimonic wellbeing. research by fowers (2010) explains that the eudaimonic wellbeing component has an impact on personal initiative. based on the review of the literature on the above, the research is to test the effect of goal pursuit and eudaimonic wellbeing to personal initiative. entrepreneurship in the indonesian context entrepreneurship is a significant component of the economy in indonesia. products featured are in developed by entrepreneurs in indonesia comes from the diversity of nature and culture. each region in indonesia has a product featured specialities. products featured are in produce an initiative of entrepreneurs of each region to maintain the preservation of the cultural areas at once produce a product unique are worth the high. own a business that is engaged in the field of industrial handicraft, traditional indonesia's character is typical that togetherness (anggraeni, 2019). this character is in line with the interpersonal orientation in the eudaimonic wellbeing study developed by bartels (2019). entrepreneurship in indonesia when it requires development in the aspect of entrepreneurial competencies. studies that did by suroso, anggraeni and andriyansah (2017) proved that the performance of entrepreneurs in indonesia determined by human capital and managerial competence. personal initiative personal initiative is an act of active individuals are aligned with the mission of the organisation, focusing on the purpose of term length, oriented actions, persevering in the face of challenges, in the start of the self itself and be proactive ( glaub, frese, fischerand hoppe, 2014). personal initiative becomes essential because of its impact on the understanding entrepreneur’s personal initiative ade irma anggraeni1 1management department, faculty of economy, universitas prima indonesia, indonesia abstract studies on the personal initiative in the context of entrepreneurship have been in understood better with a variety of perspectives and strategy development. this study aims to examine the effect of goal pursuit and eudaimonic wellbeing on the personal initiative of business owners. self-regulation perspective in the concept of eudaimonic wellbeing and assimilative mode in concept goal pursuit in use to explore the influence of the two constructs are on the personal initiative of the entrepreneur. this research contributes to clarifying the mechanism for the personal development of entrepreneurs, based on the main characteristics of entrepreneurship in the indonesian context. keywords assimilative mode entrepreneur, eudaimonic wellbeing, goal pursuit, , personal initiative, self-regulatory jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 3, 2019, pp. 81 86 effectiveness of the organisation. this concept is the leading study in entrepreneurship due to its suitability to character, including initiative, creative thinking, resource and situation management, action-oriented and risk-taking ( hisrich, 1990). in specific, shane and venkataraman (2000) describe the personal initiative into three characteristics, namely the self-starting behaviour, proactive behaviour and overcoming barriers. in the context of entrepreneurial behaviour, an entrepreneur needs to designing a product, take advantage of opportunities, completing the job without instruction from the other, establishing the purpose of personal, design a plan strategic and always exploring environmental businesses. an entrepreneur needs to proactively build focus -term long without waiting for the presence of a request from the outside. proactivity in need, in particular, to build chances term length and prepare the resource development to respond to the request immediately. entrepreneurs also need to face various challenges and obstacles to diligently. characters this requires managing emotions and various costs that incur in developing and distributing products. eudaimonic wellbeing the eudaimonic perspective on the wellbeing concept emphasises the importance of self-actualisation. however, the focus is long-term, striving for the development of personal and knowledge about the world environment around. ryff (1989) develops six dimensions of eudaimonic wellbeing, namely autonomy, self-acceptance, purpose in life, positive relations with others, personal growth and environmental mastery. in general, eudaimonic wellbeing involves the development of a holistic about the self itself and all things in the outer self. eudaimonic wellbeing is a person's feeling that he has meaning in his life. the eudaimonic model emphasises that positive emotions come from a person's condition when he finds the meaning of life. the model is in explaining the theory of determination themselves which aspects of psychological need include autonomy, competence and relatedness (ryan and deci, 1985). eudaimonic wellbeing is also described as a behavioural expression of self are balanced and in harmony with the values, autonomy and intention of a person (steger et al., 2013). goal pursuit the concept of goal pursuit is a multidimensional construct approach. fowers, mollica and procacci ( 2010) present two main approaches in explaining goal pursuit, namely instrumental and constitutive. interest instrumental encourage individuals in efforts to achieve progress sustained through the activity is consistent and of separate from the condition of the end of the achievement. the instrumental mode is explained through the concept of efficacy and fun focus. interest constitutive emphasise the identity of individual efforts to achieve the goal. the constitutive model presents an inseparable process between meaning and the result in achieving goals. goal pursuit explains the two main components of a coping strategy, namely, assimilative and accommodative mode ( brandtstadter & renner, 1990). the assimilative o of coping strategy describes the behaviour of individuals to change the situation to be in tune with the preferences of personal. at the same time, fashion accommodative explain the behaviour individually to adjust preferences personal and orientation of interest in the face of a condition (inge, fleer, van sonderen, smink, sanderman and ranchor, 2011). this research uses an assimilative approach to measure the concept of goal pursuit. this statement is in line with the opinion of gallagher and lewis (2000), in explaining the hope dimension in the goal pursuit concept is in line with the assimilative mode. the impact of goal pursuit on personal initiative and eudaimonic wellbeing research by speier and frese (1997) explains the effect of goal pursuit on personal initiative using the concept of self-efficacy, which is an instrumental approach to goal pursuit. waterman's research (2008) examined the effect of two approaches in goal pursuit on wellbeing. the result of personal expressiveness effect on flow experience, selfrealisation. both concepts have a dimension eudaimonic wellbeing. research is in supported by research kiaei and reio (2014), which explains that there is a relationship between goal pursuit and eudaimonic wellbeing. research by hahet al (2012) explains that there is a relationship between self-regulatory and personal initiative. self-regulatory measured using the vigour dimension is a mechanism in wellbeing. this study also examines the effect of two wellbeing perspectives on the personal jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 3, 2019, pp. 81 86 initiative of business owners. as a result, this study provides empirical evidence of the effect of eudaimonic wellbeing on two dimensions of personal initiative, namely task-oriented and relationship-oriented. figure 1. research model methods the population in this study are a business owner in jaw a middle. determination of the sample that is used in research this is a nonprobability sampling using technique purposive sampling. hair, anderson, tatham and black (1995) suggest that the size of the sample minimum in research that using sem is five times the number of parameters in the model research. the total sample in this study amounted to 250. retrieval of data is done with a questionnaire that has been prepared. questionnaires were used in the research is contains two parts of the main. portions were first on the profile of social respondents, shows the data of respondents are associated with the identity of the respondent and state social such as age, gender, education last and long-run business. while part of the concerns of goal pursuit, eudaimonic wellbeing and personal initiative. research is also using interviews with the owners of businesses. methods of collecting primary data in the study are performed by using the method of the survey, which aims to collect information from respondents by using a questionnaire containing a list of statements were delivered directly to the respondent. the questionnaire in the research is to use the format of a questionnaire to the statement enclosed, powered by questions open, which require answers brief of the respondent to obtain a more profound answer. grain questions in the questionnaire were made by using a scale of 1-10 which depict assessment of respondents on a scale of 1 to criteria very not agree to the scale ten on criteria highly disagree. data analysis was performed using structural equation modeling (sem), especially amos, which can test complex models with a single analysis. in the model, studies have used three constructs that goal pursuit, eudaimonic wellbeing and personal initiative. constructs are constructed differentiated into two categories, namely constructs exogenous and construct endogenous. the study is in the carry on business in the field of industry creative artisans of products locally in jawa tengah. determination of the sample of the population of employees who work in this field using a purposive sampling approach. there are 25 parameters in the model when using the structural equation modelling approach. determination of 10 samples for each parameter, then the number of samples in research is as much as 250 samples. testing the relationship of causality in the model of research use approach of structural equation modelling. results and discussion questionnaires were returned amounted to 231 copies and then in doing screening and obtained 219 questionnaires that meet the criteria for in the analysis. the profile of respondents is categorised by gender, education and long work. based on the results of the analysis, the majority of respondents are male (75%), with the level of education bachelor (37%) and long-run business six up to 10 years at 44%. validity and reliability test measurement of validity and reliability using the calculation of the corrected item-total correlation and cronbach's alpha values. the test results show that all questions meet the validity and reliability criteria when referring to the criteria for the corrected item-total correlation and cronbach's alpha values. the calculation of the df value 217 shows the number 0.1114 on the rtable with a significance value of 0.05. values corrected item-total correlation indicates that the whole item is located at the top of the value of 0.1114, so it can be said that the indicators of each variable used in the study are valid. measurement reliability in a study using the value of cronbach's alpha. the results of the testing showed that the value cronbach alpha for each construct is in the top 0.7 so it can be in say has the reliability high. goal pursuit personal initiative eudaimonic wellbeing jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 3, 2019, pp. 81 86 table 1. validity and reliability test composite index indicator corrected item correlation cronbach’s alpha gp1 0.601 0.726 gp2 0.731 gp3 0.629 gp4 0.743 gp5 0.779 gp6 0.761 pi1 0.705 0.782 pi2 0.591 pi3 0.597 pi4 0.734 pi5 0.715 pi6 0.590 pi7 0.524 pi8 0.614 ewb1 0.685 0.747 ewb2 0.543 ewb3 0.611 ewb4 0.515 ewb5 0.637 ewb6 0.649 ewb7 0.733 ewb8 0.524 analysis of the structural equation model the subsequent analysis is structural equation modelling testing using three variables with five indicators for each variable. the test results show that the value for each index is in the right criteria. table 2. result of feasibility model goodness of fit index result analysi s cut-off value result chisquared (χ2) 48,17 3 low score good sig. probability 0.107 ≥0.05 good cmin/df 1.132 ≤2.00 good gfi 0.924 ≥0.90 good agfi 0.917 ≥0.90 good tli 0.948 ≥0.90 good cfi 0.931 ≥0.90 good rmsea 0.028 ≤0.08 good hypothesis testing testing the hypothesis first use criteria ttest and critical ratio obtained values each individual for the critical ratio and probability value. the first hypothesis regarding the effect of goal pursuit on eudaimonic wellbeing is proven to be accepted. testing the hypothesis both gain value each individual's critical ratio and for a probability value. the second hypothesis regarding the effect of personal initiative on eudaimonic wellbeing is proven to be accepted. testing the hypothesis third gain value of each individual for the critical ratio and probability value. the third hypothesis regarding goal pursuit of eudaimonic wellbeing is proven to be accepted. table 3. hypothesis test hypothesis c.r p evaluation gp → ewb 2.146 0.012 accepted gp → pi 2.229 0.000 accepted ewb → pi 2.454 0.004 accepted discussion goal pursuit is the concept that in the wake using two modes in a coping strategy that is assimilative and accommodative. the results of testing the effect of the goal pursuit construct on eudaimonic wellbeing in the first hypothesis are proven in this study. the results of testing the first hypothesis confirm gallagher's (2018) argument, which states that the meaning of hope in goal pursuit is in line with the concept of eudaimonic wellbeing. testing the first hypothesis also confirms waterman's (2008) research on the effect of personal goals on the eudaimonic wellbeing dimension. this study is also in line with the findings of kiaei and reio (2014) regarding the effect of goal pursuit on eudaimonic wellbeing. the second hypothesis statement regarding the effect of goal pursuit on the personal initiative is proven to be accepted. the results of this hypothesis testing confirm the study of hahn, frese, binnewies and schmitt (201 1 ) which explains that there is a relationship between self-regulatory and personal initiative. the vigour dimension in self-regulatory is a significant component jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 3, 2019, pp. 81 86 which is proven to have an effect on the personal initiative of business owners in germany. testing the third hypothesis in this study using intrapersonal and interpersonal dimensions in measuring the concept of eudaimonic wellbeing. the test results prove that there is a relationship between eudaimonic wellbeing and personal initiative. evidence empirical is confirmed research hahn et al. (2011) about the influence of the two perspectives wellbeing that is taskoriented and relationship-oriented towards the personal initiative of the owners of the business. conclusion this study provides empirical evidence on the effect of goal pursuit and eudaimonic wellbeing on personal initiative. assimilative mode as a coping strategy is explanatory in terms of goal-related performance and goalrelated coping. eudaimonic wellbeing is a concept that evolved in the perspective of selfregulation. the personal initiative of an entrepreneur requires persistence in selfregulatory matters and setting goals to achieve business goals. this study contributes to explaining the mechanism of personal initiative development using two approaches, namely the self-regulation perspective as a motivational element and assimilative mode as a form of coping strategy that focuses on achieving personal goals. model development of personal initiative, it is practically in use for program development themselves for the owners of the business to explore the dimensions of forming the construct. research the need, in particular, to document the process of determination of the purpose of the owners of the business and use mechanise coping strategy. references anggraeni, a. i. (2019). managing entrepreneurship: an indonesian context. journal of research in management, 2(1). bartels, a. l., peterson, s. j., & reina, c. s. (2019). understanding well-being at work: development and validation of the eudaimonic workplace well-being scale. plos one, 14(4), e0215957. brandtstädter, j., & renner, g. (1990). tenacious goal pursuit and flexible goal adjustment: explication and age-related analysis of assimilative and accommodative strategies of coping. psychology and aging, 5(1), 58. frese, m., fay, d., hilburger, t., leng, k., & tag, a. (1997). the concept of personal initiative: operationalization, reliability and validity in two german samples. journal of occupational and organizational psychology, 70(2), 139-161. frese, m., & fay, d. (2001). 4. personal initiative: an active performance concept for work in the 21st century. research in organizational behavior, 23, 133-187. fowers, b. j., mollica, c. o., & procacci, e. n. (2010). constitutive and instrumental goal orientations and their relations with eudaimonic and hedonic well-being. the journal of positive psychology, 5(2), 139153. gallagher, m. w., lopez, s. j., & preacher, k. j. (2009). the hierarchical structure of well‐ being. journal of personality, 77(4), 10251050. gallagher, m. w., & lopez, s. j. (2009). positive expectancies and mental health: identifying the unique contributions of hope and optimism. the journal of positive psychology, 4(6), 548-556. gallagher, m. w., & lopez, s. j. (eds.). (2018). the oxford handbook of hope. oxford university press. glaub, m. e., frese, m., fischer, s., & hoppe, m. (2014). increasing personal initiative in small business managers or owners leads to entrepreneurial success: a theory-based controlled randomized field intervention for evidence-based management. academy of management learning & education, 13(3), 354-379. hahn, v. c., frese, m., binnewies, c., & schmitt, a. (2012). happy and proactive? the role of hedonic and eudaimonic well–being in business owners’ personal initiative. entrepreneurship theory and practice, 36(1), 97-114. henselmans, i., fleer, j., van sonderen, e., smink, a., sanderman, r., & ranchor, a. v. (2011). the tenacious goal pursuit and flexible goal adjustment scales: a validation study. psychology and aging, 26(1), 174. hisrich, r. d. (1990). entrepreneurship/intrapreneurship. american psychologist, 45(2), 209. kiaei, y. a., & reio jr, t. g. (2014). goal pursuit and eudaimonic well-being among university students: metacognition as the mediator. behavioral development bulletin, 19(4), 91. deci, e. l., & ryan, r. m. (1985). the general causality orientations scale: selfdetermination in personality. journal of research in personality, 19(2), 109-134. ryff, c. d. (1989). happiness is everything, or is it? explorations on the meaning of psychological well-being. journal of jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 3, 2019, pp. 81 86 personality and social psychology, 57(6), 1069. steger, m. f., shin, j. y., shim, y., & fitch-martin, a. (2013). is meaning in life a flagship indicator of well-being?. speier, c., & frese, m. (1997). generalized self efficacy as a mediator and moderator between control and complexity at work and personal initiative: a longitudinal field study in east germany. human performance, 10(2), 171-192. venkataraman, s., & shane, s. (2000). the promise of entrepreneurship as a field of research. academy of management review, 25(1), 217-226. waterman, a. s. (2008). reconsidering happiness: a eudaimonist's perspective. the journal of positive psychology, 3(4), 234-252. correspondence to : dermawan,nugroho.dn@gmail.com received: march, 12, 2020 accepted: march, 21, 2020 published: march, 30, 2020 jurnal akuntansi, manajemen dan ekonomi vol 22, no 1, pp.01-11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction turnover is a workforce rotation that may be common in all organizations. this rotation occurs due to various factors. starting from employees who complain about work, work environment to complain about policies made by the organization or even organizations that complain about the work of their employees. turnover has a positive and negative impact. the positive is that in the work environment new ideas will emerge from new employees, and the organization can replace employees who have a poor performance by including more competent employees. but there are negative things to remember. the negative impact that can occur in the form of expenses such as recruitment costs, training costs, and even reduced income, this transition period which causes production in the organization to be reduced. another negative impact is that sometimes organizations can lose the employees they want to retain (robbins and judge: 2007). the existence of employees that is in accordance with the wishes of the organization is certainly very beneficial, but the opposite occurs when the required employees actually leave the organization. the collaboration that may have been fully developed can sometimes collapse because of the loss of just one person. organizational commitment becomes very important to overcome the work rotation of employees. some researchers such as clugston (2000), mehmood et al. (2015), and yasmin and najib (2015) revealed that increased organizational commitment can reduce the level of desire to leave employees. although turnover has positive impacts, negative impacts can also occur if turnover rates in an organization are high. increasing organizational commitment is one way to reduce the desire to move, turnover intentions. meyer and allen (1991), suggested that there are 3 components in organizational commitment. the 3 components are affective commitment, normative commitment, and continuance commitment. and all three commitments have a negative relationship with turnover. analysis of effect work satisfaction on turnover intentions with organizational commitments as a mediation variable dermawan nugroho1, haryadi2, m. arifin mukti3, ade irma anggraeni4 1,2,3 fakultas ekonomi dan bisnis, universitas jenderal soedirman abstract this study aims to analyze the effect of job satisfaction on turnover intentions mediated by organizational commitment in employees of the java heritage hotel purwokerto. the population in this study are all employees who work at the java heritage hotel purwokerto. the sampling technique in this study uses a cluster proportional random sampling method. the sample used was 94 samples and the data obtained were analyzed using the causal step method in mediation regression analysis. the results of this study indicate that job satisfaction directly has a significant negative effect on turnover intentions, job satisfaction has a significant positive effect on affective commitment, job satisfaction has a significant positive effect on continuance commitment, job satisfaction has a significant positive effect on normative commitment. all three commitments have a significant negative effect on turnover intentions. continuance commitments and normative commitments each partially mediate the effect of job satisfaction on turnover intentions, while affective commitments cannot mediate the effect of job satisfaction on turnover intentions because most employees of the java heritage hotel are still low on the length of work. keywords job satisfaction, organizational commitment, turnover intentions jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 01-11 to increase organizational commitment requires a policy from the organization. clugston (2000) and purnomo & zulaikha (2007) state that job satisfaction has a positive effect on organizational commitment. this provides information that increasing employee job satisfaction will have an impact on increasing organizational commitment. increasing organizational commitment will reduce the level of employee turnover intentions in an organization. according to hasibuan (2012), the employee turnover rate can be calculated with the following formula: to = (number of incoming employees number of outgoing employees) / number of initial employees – (number of end employees) x 100% a number of employees entering means the amount of the number of employees entering or new workers during the month. while employees who leave are employees who stop working both voluntary and involuntary. the number of initial employees is the number of employees at the beginning of the month and the number of final employees is the number of employees who are still working at the end of the month. the following are the data of employees entering and leaving the java heritage hotel in 2018. employees in this data are middle-end employees. table 1. java heritage hotel employee data for the period january december 2018. month number of employees leaving number of employees entering number of employees percentage of to january 0 0 113 0 % february 3 0 110 2,7 % march 1 0 109 0,9 % april 4 0 105 3,7 % may 2 0 103 1,9 % june 0 2 105 1,9 % july 1 0 104 0,9 % august 0 7 111 6,5 % september 0 0 111 0 % october 1 1 111 0 % november 0 0 111 0 % december 1 1 111 0 % january– december 2018 13 10 111 18,5 % from the data above, the results show that the turnover ratio that occurred was 18.5%. according to gillies (1989) the normal rate at a company's employee turnover rate is 5-10% per year. gillies (1989) and sakinah (2008) suggest that if the turnover rate is above 10% then the level can be said to be high. then the turnover rate obtained by the java heritage hotel during the 2018 period is high. in the case of the java heritage hotel, there are indications that job satisfaction affects the desire to move from employees. decreased satisfaction will increase the desire to move employees. then employee satisfaction needs to be considered in order to reduce the level of desire to move employees. organizational commitment is also an important factor to reduce the desire to move. employees who leave one organization and then move to another must-have low commitment. this needs to be considered if the organization wants to reduce the level of desire to move employees. organizational commitment is used as a mediating variable because organizational commitment can indirectly affect the relationship between job satisfaction and turnover intentions. clugston (2000) in his research also places organizational commitment on mediating variables for the relationship of influence between job satisfaction and turnover intentions. to prove the phenomenon that has been explained, the researcher intends to conduct research on the effect of job satisfaction on turnover intentions with organizational commitment as a mediating variable. this study aims to analyze the effect of job satisfaction on turnover intentions mediated by organizational commitment. this research can be used as a reference for future research and can be used as literature in learning. formulation of hypotheses job satisfaction is a positive feeling about one's work that is the result of evaluating the characteristics of the work (robbinss and judge: 2007). the above opinion explains that the attitude of a worker will be based on feeling happy or unhappy with his work. this is usually based on the fulfillment or nonfulfillment of the needs of a worker from his job. according to the theory of the fulfillment of needs shows that a worker will feel satisfied with his work if his needs are met, and vice versa. robbins and judge (2009) suggest that dissatisfaction leads to negative attitudes. one of them is an action to leave the organization. the higher the satisfaction of a worker will certainly reduce the level of intention to leave. as in the research conducted by. mobley (1978) states that there is a negative relationship between job satisfaction with intense exit. and andini (2006), pawesti and rindanita (2016) show jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 01-11 job satisfaction has a negative influence on the intention to leave the company. so, job satisfaction will affect the level of intense turnover. increasing job satisfaction of employees will reduce the level of turnover intentions. so the employment rate will decrease. then the hypothesis to be made is: h1: job satisfaction has a negative effect on turnover intentions job satisfaction has an impact on one's personal feelings of employees. if an employee is satisfied with his job, then the employee will be more attached to his feelings with his organization and do his work with a happy feeling. the opposite also happens if an employee has low job satisfaction, the attachment to a job and his organization is also low. this suggests that increasing job satisfaction from an employee increases the employee's affective commitment. as in research conducted by clugston (2000) proves that job satisfaction has a positive effect on affective commitment. the same thing in the study of purnomo & zulaikha (2007) also revealed that a positive influence occurred on the relationship between job satisfaction and affective commitment. so increasing employee job satisfaction will also increase affective commitment to employees. this is because of the positive relationship between the two. then the hypothesis that will be made is h2: job satisfaction has a positive impact on affective commitments contingency commitments have a materialistic relationship with money or position. in a company, the employee is certainly associated with salary payments that are paid daily, weekly, or even monthly. and this can affect the level of employee satisfaction on payments. the same thing in the position or career path of an employee at his company. companies that provide opportunities for employees regarding their career paths will certainly be able to increase job satisfaction. job satisfaction obtained from things like this can certainly increase an employee's commitment continuation. the higher job satisfaction for an employee on this matter will certainly increase an employee's commitment commitment. many studies have been conducted to examine the effect of job satisfaction on continuous commitment. clugston (2000) suggests that job satisfaction has a negative effect on commitment commitment. which means that increasing job satisfaction will decrease one's level of commitment commitment. however, different things were revealed in research conducted by munir (2014) and purnomo & zulaikha (2007) which stated that job satisfaction has a positive effect on continuous commitment. previous studies have explained that increasing job satisfaction with an employee will reinforce his continuous commitment. then the hypothesis to be made is: h3: job satisfaction has a positive influence on continuous commitment clugston (2000) proved in his research that job satisfaction has a positive influence on normative commitment. job satisfaction is obtained from several things while working. one of them is the work environment. a good work environment fosters the work spirit among employees. so that employees feel comfortable when working and achieving satisfaction at work. research from munir et al. (2014) provides an explanation of job satisfaction which has a positive influence on normative commitment. the same thing from purnomo & zulaikha's research (2007) revealed the positive effect of job satisfaction on normative commitment. the thing about the relationship of job satisfaction with normative commitment implies that job satisfaction with employees has an influence on normative commitment. so with job satisfaction, an employee will commit to something that is normative. then the hypothesis to be made is: h4: job satisfaction has a positive impact on normative commitments an employee who has an affective commitment to the organization must have felt bound to the organization. this affective commitment is shown by feeling happy about his work. a person who has been effectively committed will maintain membership in the organization where he works. then this will reduce the level of desire to move from an employee, becker (1960) states that effective commitment is one predictor of several variables, and one of them is turnover. clugston (2000) proves that affective commitment negatively influences intense turnover. research conducted by mehmood et al. (2015) stated the same thing, affective commitment, which had a negative effect on intense turnover. the discussion that has been discussed above states that the higher the affective commitment of a person, the level jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 01-11 of intense turnover decreases. then the hypothesis to be made is: h5: affective commitments have negative effects on turnover intentions clugston's (2000) research proves that continuous commitment has a negative effect on intense turnover. this explains that the higher the level of commitment to an employee, the level of employee's intense turnover will decrease. continuous commitment is a commitment that persists in someone's self because of several considerations. this is a consideration made by comparing what he gets when he lives with what he releases when he leaves his organization. someone who is quite comfortable and satisfied with what they get while in the organization then he will remain in the organization and will reduce the level of desire to leave the organization. then the hypothesis to be made is: h6: continuous commitment has a negative impact on turnover intentions the normative commitment that has been created from the work environment has its own strength in maintaining its membership in the organization. an employee who has been trusted by superiors or coworkers certainly has a feeling of excitement as well as not feeling good in rejecting a request or responsibility given. things like this that will make an employee will stay in the organization by looking at existing norms. which of course will reduce the level of intense turnover of an employee from his organization. normative commitment negatively influences intense turnover (clugston: 2000). the same thing started by zopiatis (2014) has a negative influence on intense turnover. normative commitment is also evidenced by research yasmin and najib (2015), in their research saying that increased normative commitment will reduce the level of desire to move. this proves that increasing normative commitment will reduce one's level of intense turnover. then the hypothesis to be made is: h7: normative commitments have negative effects on turnover intentions research conducted by clugston (2000) through several research models found that organizational commitment can be a variable that mediates fully between job satisfaction and intense employee exit. but clugston (2000) also proved in other research models that organizational commitment partially moderates. in this study clugston, using affective, normative, and contingent commitment as a mediation. organizational commitment has been widely used as a mediator of various relationships. research conducted by clugston (2000) places the organizational community as a mediation between job satisfaction and intense exit. whereas kebriaei et. al (2016) who places organizational commitment as a mediation between psychological empowerment and turnover intention. and research conducted by purnomo & zulaikha (2007) makes commitment a mediating relationship between job satisfaction and performance. organizational commitment becomes the path between job satisfaction and intense exit. increased job satisfaction will also increase organizational commitment, whereby increasing organizational commitment, a person will be more loyal to the organization, and this will certainly reduce the level of turnover in an organization. then the hypothesis to be made is: h8: affective commitment mediates the relationship of job satisfaction to turnover intentions h9: continuous commitment mediates the relationship of job satisfaction to turnover intentions h10: normative commitment mediates the relationship of job satisfaction to turnover intentions research methods figure 1: research model types of research this type of research is quantitative research using survey methods where information is obtained from employees who work in the hotel sector in the purwokerto area. this survey has the aim to collect information factually and be able to describe the phenomena that exist. jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 01-11 research sites sampling for this study was conducted at employees of the java heritage hotel purwokerto. this sample is determined based on the chosen study limitations. research objectives the objectives of this study are job satisfaction, organizational commitment, and turnover intentions for workers / employees working at java heritage hotels method of collecting data questionnaire the research data was obtained by means of a survey through a questionnaire. this questionnaire will be distributed to employees who work at the java heritage hotel. this questionnaire contains questions relating to research variables namely job satisfaction, organizational commitment, and turnover intentions. the job satisfaction questionnaire adopted the question instrument from robbinss and judge's research (2007) while the organizational commitment adopted from mayer and allen (1993) as well as the questionnaire of the turnover variable adopted from the study of mobley, horner, & hollingsworth (1978). literature review collecting data obtained by reading and studying references or similar research results that have been carried out by other researchers. this reference is found in the library, agency documents, or web pages that provide articles and related journals. research time. timing of the study will be carried out in september 2019. data source this data source is primary data obtained from respondents' answers through questionnaires regarding job satisfaction in its effect on turnover intentions mediated by organizational commitment to employees of the java heritage hotel. population and sample determination of the number of research samples using a formula developed by slovin in 1960 (suliyanto, 2018). in a population of 122 employees with a fault tolerance of 5%, a sample of 94 employees was obtained. the sampling method used is proportional rdanom sampling cluster. this is done because the organizational structure of the java heritage hotel has employees who are placed in 9 divisions. this division includes front office, hrd, sales & marketing, housekeeping, engineering, administration and general, food and baverage service, food and product leverage and accounting. each division will take a sample of 77% of the total population in each division. whose response will be obtained through a questionnaire. data analysis technique several data analysis tests will be conducted: validity test, validity test is used to see the extent of the accuracy and accuracy of a measuring instrument in carrying out its measurement function (suliyanto, 2006). reliability test, the reliability of an instrument shows that the measuring instrument is capable of producing reliable measurement results (suliyanto, 2018). classical assumption test normality test, normality test aims to test whether the residual value that has been standardized in the regression model is normally distributed or not (suliyanto, 2011). the normality test in this study uses the kolmogorov-smirnov test. heterokedastisitas test, heterokedastisitas test aims to determine whether the residual value has a relatively constant variation or not (suliyanto, 2011). linearity test, linearity testing needs to be done to find out which model is proved to be a linear model or not (suliyanto, 2011). linearity test in this study using the ramsey method. regression analysis test, simple regression analysis is used to analyze the causal relationship of one dependent variable to one dependent variable (suliyanto, 2011). determination coefficient test (r2), the coefficient of determination is the amount of contribution of the independent variable to the dependent variable. the higher the coefficient of determination, the higher the independent variable in explaining changes in the dependent variable (suliyanto, 2011). f test, the calculated f value is used to test the accuracy of the model (suliyanto, 2011). jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 01-11 t test, the calculated t value is used to test whether the variable significantly influences the dependent variable or not (suliyanto, 2011). regression analysis of mediation variables with the causal step method, mediation variables are intermediate or mediating variables, which function to mediate the relationship between predictor variables and predictive variables (suliyanto, 2011). the analysis used is the causal step method developed by baron and kenny (1986 in suliyanto, 2011). vaf test, vaf test is carried out to see the mediating effect results and analysis validity test : job satisfaction variable table 2: test results for job satisfaction validity no. job statisfaction r calculate r table information 1. kk1 0,719 0,202 valid 2. kk2 0,650 0,202 valid 3. kk3 0,593 0,202 valid 4. kk4 0,620 0,202 valid 5. kk5 0,485 0,202 valid 6. kk6 0,556 0,202 valid 7. kk7 0,621 0,202 valid 8. kk8 0,113 0,202 invalid based on the table above shows that the calculated value of product-moment correlation or pearson for question items 1-7 questionnaire is greater than rtable = 0.202. whereas for item question number 8 it is declared invalid because of r count <r table. therefore, item question number 8 will not be included in the data processing. affective commitment variable table 3: test results for affective commitment validity no. affective commitment r calculate r table information 1. ac1 0,499 0,202 valid 2. ac2 0,601 0,202 valid 3. ac3 0,734 0,202 valid 4. ac4 0567 0,202 valid 5. ac5 0,681 0,202 valid 6. ac6 0,719 0,202 valid 7. ac7 0,804 0,202 valid 8. ac8 0,696 0,202 valid from the table above, the results show that all items for affective commitments are declared valid because the calculated value of each question item is greater than the rtable value of 0.202. so that all data from the affective commitment question items will be included in data processing. variable commitment variables table 4: test results for continuous commitment validity no. continuous commitment r calculate r table information 1. kc1 0,725 0,202 valid 2. kc2 0,685 0,202 valid 3. kc3 0,713 0,202 valid 4. kc4 0,717 0,202 valid 5. kc5 0,513 0,202 valid 6. kc6 0,630 0,202 valid 7. kc7 0,597 0,202 valid 8. kc8 0,615 0,202 valid based on the table above shows that the value of the product moment correlation pearson for all questionnaire questions is greater than rtable = 0.202. therefore, the contingency commitment variable questionnaire items in this study proved to be valid and all data from these items will be included in the data processing. normative commitment variable table 5: test results for normative commitment validity no. normative commitment r calculate r table information 1. nc1 0,254 0,202 valid 2. nc2 0,569 0,202 valid 3. nc3 0,498 0,202 valid 4. nc4 0,589 0,202 valid 5. nc5 0,637 0,202 valid 6. nc6 0,695 0,202 valid 7. nc7 0,634 0,202 valid 8. nc8 0,394 0,202 valid from the table above we get the results that all the questions for normative commitments are declared valid because the calculated value of each question item is greater than the jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 01-11 rtable value of 0.202. so that all data from the normative commitment question items will be included in data processing. turnover intentions variable table 6: turnover intentions validity test results no. turnover intentions r calculate r table information 1. toi1 0,874 0,202 valid 2. toi2 0,887 0,202 valid 3. toi3 0,851 0,202 valid from the table above, the results show that all items for turnover intentions are declared valid because the calculated value of each question item is greater than the rtable value of 0.202. so that all data from the normative commitment question items will be included in data processing. reliability test table 7: reliability test results no. reliability r calculate r table information 1. job satisfaction 0,674 0,600 realibel 2. affective commitment 0,816 0,600 realibel 3. continuous commitment 0,807 0,600 realibel 4. normative commitment 0,639 0,600 realibel 5. turnover intentions 0,839 0,600 realibel based on the data in the table above, it can be seen that the cronbach alpha coefficient values of job satisfaction, affective commitment, continuous commitment, normative commitment, and turnover intentions are each greater than the cut of value (0.600) so that all question items for each variable in this study can be declared reliable. classic assumption test normality test table 8: normality test results information asymp. sig. (2tailed) sig 0,05 results affective commitments as mediation 0,934 0,05 normal continuous commitment as mediation 0,773 0,05 normal normative commitments as mediation 0,697 0,05 normal based on the output generated from the data analysis process using the kolmogorovsmirnov method, it was found that the standardized residual value of asymp. sig. (2tailed) is greater than the value of α (0.05). then it can be concluded that the data used in this study are normally distributed. heteroscedasticity test table 9: heteroscedasticity test results information sig. satisfacti on sig, commitme nt sig 0,0 5 results affective commitme nts as mediation 0,916 0,328 0,0 5 heteroscedasti city does not occur continuous commitme nt as mediation 0,710 0,683 0,0 5 heteroscedasti city does not occur normative commitme nts as mediation 0,161 0,08 0,0 5 heteroscedasti city does not occur each of these variables has a significance value greater than α 0.05. then it can be concluded that the regression model does not occur symptoms of heterokedasticity linearity test table 10: linearity test results information f count f tabel results affective commitments as mediation 335,158 3,098 linier continuous commitment as mediation 103,887 3,098 linier normative commitments as mediation 213,624 3,098 linier jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 01-11 the manual calculation result f arithmetic shows that the value of f arithmetic> f table (3.098), it can be concluded that this regression equation is linear. determination coefficient test (r2) table 11: determination coefficient test results (r2) information r2 affective commitments as mediation 0,143 continuous commitment as mediation 0,259 normative commitments as mediation 0,528 the determinant coefficient or r2 in the summary table model of substructure analysis in a simple regression test with mediation is 0.143. this value explains that 14.3% of the variation of turnover intentions is explained by the variables of job satisfaction and affective commitment, while the remaining 85.7% is explained by other variables not included in the study. whereas for r2 in the contingency commitment model as mediation, the result is 0.259, which means that 25.9% of the variation in turnover intentions is explained by work satisfaction and commitment variables, while the remaining 74.1% is explained by other variables not included in the study. and r2 in the contingency commitment model as mediation obtained 0.528 results, which means 52.8% of the variation in turnover intentions explained by the variable job satisfaction and commitment commitment, while the remaining 47.2% is explained by other variables not included in the study. f test (goodness of fit) table 11: f (goodness of fit) test results information f count f tabel sig result affective commitments as mediation 7,573 3,100 0,001 fit continuous commitment as mediation 15,915 3,100 0,000 fit normative commitments as mediation 50,905 3,100 0,000 fit based on the output of simple regression analysis with causal step mediation, the f count value of the three models is greater than f table with df (k-1) and (n-k) which is 3,100. these results indicate that the three models of job satisfaction and organizational commitment simultaneously explain the variable turnover intentions. with this result also the regression model formed can be stated precisely or in accordance with the research data. t test the t test on the simple regression model of mediating variables causal step method is done by finding the t table values compared to the t count, with the condition α = 0.05 with degrees of freedom n k in the 1-tailed test, the t table value is 1,662. in the data processing output, it is obtained t arithmetic on the affective commitment as mediation of job satisfaction variables of 2.889 and t arithmetic of the affective commitment variable of 1.218. only t counts job satisfaction received and rejects t counts from affective commitments. in the contingency commitment as mediation obtained t count on the variable work satisfaction of 2.471 and t count the variable commitment on the basis of 4.002. in this model all t arithmetic for each variable exceeds t table then all t arithmetic variables in this model are accepted. in normative commitments as mediation obtained t count on the variable job satisfaction of 2.328 and t count normative commitment variable of 8.774. in this model all t arithmetic for each variable exceeds t table then all t arithmetic variables in this model are accepted. analysis of variable regression with the causal step method the following are the results of mediating regression data processing with the causal step method for the three models. figure 2: research model in hypothesis 1 job satisfaction has a significant negative effect on turnover intentions, in hypotheses 2-4 it is found that job satisfaction has a significant positive effect on each dimension of organizational commitment. in hypotheses 5-7, the results of each dimension of organizational commitment jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 01-11 have a significant negative effect on the direct relationship to turnover intentions. in hypothesis 8 it is seen that c1 shows a negative result between the effect of satisfaction on turnover intentions. this result is seen from the unstandardized coefficient of -0,250 with a significance of 0,000. and after entering the affective commitment variable it turns out that the result of b1 is declared insignificant because the significance is greater than 0.05 while c1 'remains significant. then it can be concluded that affective commitment cannot mediate the effect of job satisfaction on turnover intentions or in other words the affective commitment hypothesis mediates the effect of job satisfaction on turnover intentions is rejected. in hypothesis 9, it is seen that c2 shows a negative result between the effect of satisfaction on turnover intentions. this result is seen from the unstandardized coefficient of -0,250 with a significance of 0,000. and after entering the variable commitment, the results of b2 are declared significant because the significance is less than 0.05 while c2 'remains significant but the significant value decreases from the previous to 0.015. then it can be concluded that the contingency commitment can partially mediate the effect of job satisfaction on turnover intentions or in other words the hypothesis of the contingency commitment mediates the effect of job satisfaction on turnover intentions received. in hypothesis 10 it is seen that c3 shows a negative result between the effect of satisfaction on turnover intentions. this result is seen from the unstandardized coefficient of -0,250 with a significance of 0,000. and after entering the normative commitment variable, the result of b3 is declared significant because the significance is less than 0.05 while c3 'remains significant but the significant value decreases from the previous to 0.022. then it can be concluded that normative commitment can partially mediate the effect of job satisfaction on turnover intentions or in other words the normative commitment hypothesis mediates the effect of job satisfaction on turnover intentions received. vaf test (variance accounted for) to get the percentage of the vaf test the following formula is used: 𝑉𝐴𝐹 = 𝐼𝑛𝑑𝑖𝑟𝑒𝑐𝑡 𝑖𝑛𝑓𝑙𝑢𝑒𝑛𝑐𝑒 𝐷𝑖𝑟𝑒𝑐𝑡 𝑖𝑛𝑓𝑙𝑢𝑒𝑛𝑐𝑒 + 𝐼𝑛𝑑𝑖𝑟𝑒𝑐𝑡 𝑖𝑛𝑓𝑙𝑢𝑒𝑛𝑐𝑒 𝑥100% table 12: vaf (variance accounted for) test results information direct influence indirect influence perce ntage of vaf mediated by affective commitments -0,250 -0,0364 12,7% mediated by continuous commitments -0,250 -0,0858 25,5% mediated by normative commitments -0,250 -0,1284 33,9% from the calculation above it can be concluded that for the eighth hypothesis namely affective commitment mediating the effect of job satisfaction on turnover intentions is rejected or cannot mediate. this is seen from the percentage of vaf that is under 20% which means that affective commitment does not mediate. from the results of the above calculations it can be concluded that for the ninth hypothesis, that is, the commitment of the continuous commitment mediates the effect of job satisfaction on turnover intentions received or can mediate. this can be seen from the percentage of vaf that is at intervals of 20% 80% which means that the partial commitment mediates partially. from the results of the above calculations it can be concluded that for the tenth hypothesis namely normative commitment commitment mediates the effect of job satisfaction on turnover intentions accepted or can mediate. this can be seen from the percentage of vaf at intervals of 20% 80% which means that normative commitments mediate partially. conclusion table 13: hypothesis testing results no information result 1. hipotesis 1 accepted 2. hipotesis 2 accepted 3. hipotesis 3 accepted 4. hipotesis 4 accepted 5. hipotesis 5 accepted 6. hipotesis 6 accepted 7. hipotesis 7 accepted 8. hipotesis 8 rejected 9. hipotesis 9 accepted 10. hipotesis 10 accepted based on the results of the research described in the previous chapter, it can be concluded that; (1) job satisfaction has a negative influence on the desire to move from jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 01-11 employees. increased employee satisfaction results in a reduced level of desire to switch employees; (2) employee job satisfaction has a positive effect on organizational commitment. with the increase in employee job satisfaction, organizational commitment of employees has also increased; (3) affective commitment negatively affects the level of desire to move from employees. increased affective commitment reduces the level of desire to move. although affective commitment has the least influence in reducing desire to move than other organizational commitments; (4) continuous commitment negatively influences the desire to move. with increasing commitment, this will reduce the desire to move. continuous commitment has the strongest influence on the desire to move. this is seen from the coefficient of the influence of continuous commitment on the level of desire to move; (5) normative commitment negatively influences the desire to move. increased normative commitment will result in decreased employee desire to change; (6) affective commitment cannot mediate the effect of job satisfaction on turnover intentions. job satisfaction can reduce the desire to move but it cannot be strengthened by affective commitment; (7) continuous commitment can mediate in the effect of job satisfaction on turnover intenions. the effect of job satisfaction on moving desires can also be strengthened by increasing continuous commitment; (8) normative commitment can mediate the effect of job satisfaction on turnover intentions. normative commitment is the variable that mediates the most among other organizational commitments in the effect of job satisfaction on turnover intentions. so normative commitment can be used to further reduce the level of desire to move together with job satisfaction. the limitations of this study are only limited by turnover intentions, organizational commitment and job satisfaction. in future studies, it is expected to be able to use other independent variables that influence turnover intentions such as work stress, workload or other related variables because these variables can potentially greatly influence the desirability of employees working in the service sector. the subjects in this study did not focus on specific work hours such as morning, afternoon, or night shifts. future studies are suggested to be able to focus again on certain working hours to see which hours cause the greatest desire to move because each shift has a different workload from one another. limitations in this study only focus on hotel service sector employees who work at the java heritage hotel purwokerto. future studies are recommended to conduct research in the hotel sector in other organizations or choose other service sectors such as hospitals or other service sectors. this is intended because the service sector should minimize work turnover, employees in the service sector are required to have special expertise and good socializing ethics and that is what sometimes is not owned by 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(2014). job involvement, commitment, satisfaction and turnover: evidence from hotel employees in cyprus. tourism management. 41, 129-140. correspondence to : jublinaoktora86@gmail.com received: sep, 13, 2020 revised:nov, 16, 2020 accepted: dec, 10, 2020 jurnal akuntansi, manajemen dan ekonomi vol.21, no. 4, pp. 30 36 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction currently, many cosmetic products are sold in indonesia. the materials and types offered also vary. one company that sells cosmetic products in indonesia is oriflame. oriflame was first founded in 1967 by two brothers and their friends. this company is an international beauty company that sells with a direct sales system that has grown in more than 60 countries around the world (oriflame; enjela, 2017). oriflame has been operating in indonesia since 1986 and is headquartered at jl. bulungan no. 16, jakarta. at that time, oriflame was the pioneer of mlm in indonesia. oriflame is a cosmetics company that offers cosmetic products and high-quality natural skin offerings through a network of independent sales forces that is different from the retail system in general (kamawo, 2016). despite its rapid development, oriflame has never forgotten its original business concept, namely swedish natural cosmetics that are sold from friends to friends. the in-person sales system allows customers to get advice and inspiration from people they know and trust. purchasing in person is also reliable and a lot of fun. but sometimes, there is a lack of confidence in oriflame members when offering oriflame products to new people or new people around them (kurnialis, 2019). shame and prestige that makes orifame members unable to have extraordinary career paths and income. the decline in the performance of oriflame members can be seen through the sales data of shampoo products, which are as follows: table 1. recapitulation of oriflame shampoo product sales data no. product name years (in %) 2017 2018 1 milk and honey 50,23% 49,19% 2 eleo 54,21% 50,12% 3 hair x advanced 60,20% 50,11% source: sales data (2019) a work environment that does not need to meet face to face every day because the online buying and selling system results in many members who do not know each other intimately. therefore sometimes members also feel lazy to pursue a level or career path at oriflame. the influence of work environment and motivation on the performance oriflame indonesia's members jublina oktora1, rahmi andini syamsuddin2 1,2,3,4department of accounting, faculty of economic, universitas pamulang, indonesia abstract the object of this study is to determine the impact of the work environment and motivation on the performance of members of oriflame indonesia. in this study, using proportional random sampling technique, namely by using a sample of 91 respondents. methods of data analysis using regression analysis, correlation coefficient analysis, analysis of the coefficient of determination and hypothesis testing. based on the partial test results for work environment variables obtained t = 2.756 with a significance value of 0.007 then ho is rejected and ha is accepted. this shows that partially h1 which states that there is an influence of the work environment on performance is accepted. based on the partial test results for the motivation variable, it was obtained t = 3.405 with a significance value of 0.001 because the significant probability is much smaller than 0.05 then ho is rejected and ha is accepted. this shows that partially h2 which states that there is an effect of motivation on performance is accepted. based on the test results on the f test, it is obtained that the value of f count> f table or (21.255 > 2,720), this is also reinforced by ρ value < sig. 0.05 or (0,000 < 0.05). thus, h0 is rejected and h3 is accepted, this indicates that there is a positive and significant influence simultaneously between work environment and motivation on the performance of oriflame members keywords work environment; motivation; performance oriflame members mailto:jublinaoktora86@gmail.com jurnal akuntansi, manajemen dan ekonomi,vol. 22 no. 4, 2020, pp. 30 36 the level drop in oriflame is seen through the following data: table 2. recapitulation of oriflame member derivation data no. members level years (in %) 2017 2018 1 consultant 20% 17% 2 manager 18% 15% 3 senior manager 21% 18% source: sales data (2019) the price of oriflame products, which is quite expensive when compared to other cosmetic products, also affects the percentage of sales of oriflame members. oriflame gives the motivation sometimes does not match the wishes of the oriflame members. the following is data for members who are not actively working on oriflame: table 3. recapitulation of oriflame indonesia member data in 2018 month number of members number of inactive members percentage (%) february 1000 100 10% march 1000 105 10,5% october 1000 110 11% source: sales data (2019) based on this background, several problems can be formulated. first, does the work environment affect the performance of oriflame indonesia's members? second, does motivation affect the performance of oriflame indonesia's members? third, does the work environment and motivation together influence the performance of oriflame indonesia's members? research objectives based on the formulation of the problem above, the objectives of this study is to analyze and determine the effect of the work environment and motivation on the performance of members of oriflame indonesia. human resource management human resource management (hrm) can be defined as the science and art that regulates the relationship and role of the workforce to be effective and efficient in using human capabilities to achieve goals in each company (mathis & jackson, 2012, pp. 5). human resource management (hrm) is a science that studies how to empower employees in companies, create jobs, workgroups, develop employees who have the ability, identify an approach to be able to build employee performance and reward them for their efforts at work (snell & bohlander, 2010, hal. 4). in the implementation of human resource management, four complementary measures are used, namely the humanitarian approach, management ties, systems approach, and proactive approach. theere are several reasons for each of these approaches. the humanitarian approach refers to the consideration that human dignity should not be sacrificed only for the sake of the organization. careful treatment of human needs will benefit the organization more. this approach is to make us realize that the handling of human resource management must be distinguished from other management of resources that cannot object or complain. the management approach refers to the consideration that human resource management is the responsibility of all managers. the function of the personnel or human resources department following their expertise is only to support the managers so that they can better utilize their personnel or members. systems approach refers to the consideration that, in essence, human resource management is only a part (subsystem) of the organization's overall management system. therefore the success of human resource management is measured by the extent to which it contributes to the success of the comprehensive organizational structure. a proactive approach refers to the consideration that human resource management will be more successful in contributing to individuals, managers, and organizations if they can anticipate in advance what challenges and obstacles the organization will face (widowo, 2014, hal. 5). performance performance is the output produced by the functions or dimensions of the job or profession carried out by human resources or employees within a particular time. account means the achievement of someone pleased with the task given to him (wirawan, 2013, pp. 732). performance, that is, with this approach, the analysis does the work it is reviewing to obtain first-hand information about a job, such as job size, work standards, error rates, and other aspects (widowo, 2014, hal. 70). performance can be defined as a description of the level of achievement of the implementation of an activity/program/policy in realizing the goals, jurnal akuntansi, manajemen dan ekonomi,vol. 22 no. 4, 2020, pp. 30 36 objectives, mission, and vision of the organization, as stated in the strategic planning of an organization. the term performance is often used to describe the achievement or level of success of an individual or group of individuals (mahsun, 2013, pp. 25). performance can be known only if the individual or group of individuals has predetermined success criteria. these success criteria are in the form of specific goals or targets to be achieved. without a target goal, the performance of a person or organization cannot be known because there are no benchmarks. work environment the work environment is everything that is around the workers and can affect him in carrying out assigned tasks (nitisemito, 2001, pp. 25). the work environment is everything that is around the worker and can affect him in carrying out the duties assigned to him (sedarmayanti, 2018, pp. 21). the work environment is all aspects of physical work, work psychology, and work regulations that can affect job satisfaction and productivity achievement (mangkunegara, 2017, pp. 105). increasing individual productivity that simultaneously increase organizational or company productivity, we need to design organizations, design jobs, and also design work environments, all to provide comfort to the people who work in them so that they feel excited, excited, and get satisfaction at work (tohardi, 2008, pp. 128). motivation motivation comes from the latin word movere, which means encouragement or giving a driving force that creates a person's work enthusiasm so that they are willing to cooperate, work effectively, and be integrated with all their efforts to achieve satisfaction. motivation in management is only aimed at human resources in general and subordinates in particular (hasibuan, 2017, hal. 143). the importance of motivation because an explanation is what causes, channels, and supports human behavior so that they are willing to work hard and enthusiastically to achieve optimal results. motivation is the desire to do as a willingness to spend a high level of effort on organizational goals conditioned by the ability of that effort to meet individual needs (robbins & coulter, 2016, hal. 55). the business element is a measure of intensity. steps that are directed toward and consistent with the goals of the organization are the type of action that should be sought, and motivation is the process of meeting needs. the notion of motivation is the power that is in a person, which drives his behavior to take action. the magnitude of the intensity of the strength within a person to do a task or achieve a goal shows the level of motivation (widowo, 2014, pp. 83). in general, everyone wants to have the right cause. no one chooses to be frustrated over motivated. work and work environments that stimulate motivation are loved and appreciated by everyone. prior research and conceptual framework the results of several previous studies include: (1) oriflame mlm has fundamental values, namely togetherness, spirit, passion (tsp), one of which values the environment and focuses on customers, which makes the ability of an oriflame consultant to stay in business (kamawo, 2016). (2) research on employee's organizational member performance (eomp) at pt. pos indonesia branch of wates, kulon progo, as many as 50 permanent employees, with the findings that work discipline, has a direct effect on eomp and can mediate the impact of servant leadership to the eomp (siswanti & anjasasi, 2017). (3) research on the oriflame funbiz club surabaya network as many as 60 respondents to analyze the effect of incentive systems and training on consultant performance through work motivation, with the findings that exercise has an indirect impact on consultant performance through work motivation (septiana & azzuhri, 2018). (4) research on 70 employees of hypermart beside and 90 in palangkaraya who have at least one year worked to determine employee performance with findings that prove that the work environment has a significant effect on performance (irawan & kristinae, 2019). the research findings above conclude that work environment and work discipline factors have a very important influence in determining the level of employee performance. thus, the alternative research hypothesis can be stated as follows: h1: there is a positive influence viz. work environment to the performance oriflame indonesia's members h2: there is a positive influence viz. work motivation to the performance oriflame indonesia's members jurnal akuntansi, manajemen dan ekonomi,vol. 22 no. 4, 2020, pp. 30 36 h3: there is a simultaneously influence viz. work environment and work discipline to the performance oriflame indonesia's members methods this research is a type of quantitative analysis using a survey method. in this case, the researcher surveyed members of oriflame indonesia by giving questions in the form of a questionnaire given to each oriflame member. the analytical method used is multiple linear regression analysis. the research instrument used was a questionnaire. the population in this study were 91 members of oriflame, so the sample size was 91 people. the use of questionnaires to obtain data from each research variable was used. in this study, there are 3 (three) variables consisting of 2 (two) independent variables, namely, work environment i.e. seven indicators, motivation i.e. six indicators, and 1 (one) dependent variable, namely the performance of indonesian oriflame members i.e. twelve indicators. research data were collected through a set of questionnaires consisting of the work environment (x1), motivation (x2), and performance (y) questionnaires. all of these questionnaires are arranged in the form of five-scale question items that are built on the indicators for each variable that have been obtained in a written study. results and discussion results the validity test is intended to test the statement on each item of the question on the evaluative questionnaire or not. to process the test of equivalence, researchers used spps version 24 with the following criteria: 1. if chronbach alpha > 0.214, then the instrument is valid, or 2. if chronbach alpha < 0.214, the instrument is invalid. the results of the overall variable equivalence test are as follows: table 4. validity test results variables indicators scoring r-stats r-table conclusions work environment 1. the light in the room is comfortable 2. air circulation according to standards 3. the goods distribution room is appropriate 4. storage space is suitable 5. good communication between people 6. able to cooperate well 7. leader and subordinates are on good terms 0.791 0.785 0.788 0.787 0.787 0.787 0.785 0.2146 valid valid valid valid valid valid valid motivation 1. salaries and bonuses are awarded on time 2. members have a career path 3.the product has an mui certificate 4. office conditions are safe and comfortable 5. noted recognition by the leadership 6. additional bonus at senior level 0.797 0.794 0.792 0.792 0.792 0.794 0.2146 valid valid valid valid valid valid performance oriflame indonesia's members 1. sales on target 2. ability to monitor members 3. mastery of it 4. mastery of foreign languages 5. reliable human resources and mold 6. upline can train downline 7. achievement of targets for point 8. the achievement of rewards according to the target 9. upline readiness helps downlines 10. convenience of cooperation 11. work is carried out according to procedure 12. awards for achievements 0.771 0.771 0.771 0.771 0.772 0.771 0.772 0.771 0.771 0.771 0.772 0.771 0.2146 valid valid valid valid valid valid valid valid valid valid valid valid source: spss ver24.00 (2019) correspondence to : jublinaoktora86@gmail.com received: sep, 13, 2020 revised:nov, 16, 2020 accepted: dec, 10, 2020 jurnal akuntansi, manajemen dan ekonomi vol.21, no. 4, pp. 30 36 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 from the data table 4 above, the overall of research variables viz. work environment (x1) motivation (x2) and performance oriflame indonesia's members obtained the value of r statistics is more significant than 0.214, so all questionnaire items are declared valid. for this reason, the questionnaire used is feasible to be processed as research data. reliability testing is intended to test whether a questionnaire is reliable or not. a questionnaire is said to be reliable or dependable if a person's answer to a statement is consistent or stable over time. if chronbach alpha > 0.60, then the instrument is declared trustworthy. if chronbach alpha < 0.60, the instrument is declared unreliable. the results of the reliability test are as follows: table 2. reliability test results variables cronbach's alpha score std.cronbach's alpha conclusions work environment (x1) 0.816 0.60 reliable motivation (x2) 0.826 0.60 reliable performance oriflame indonesia's member (y) 0.790 0.60 reliable source: spss ver24.00 (2019) based on the test results in the table above, it shows that the work environment (x1), motivation (x2), and performance (y) variables are declared reliable. this is evidenced by each variable having an alpha coefficient value more significant than chronbach's alpha 0.60. hypothesis testing table 5. regression coefficients: test results model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 20.540 4. 185 5.864 .000 work environment .297 .108 .259 2.756 .007 motivation .225 .066 .322 3.405 .001 a. dependent variable: performance oriflame indonesia's member source: spss ver24.00 (2019) based on the results of the calculation of the regression coefficient equation that the linear regression coefficient y = 20.540 + 0.297x1 + 0.225x2 means that if the performance oriflame indonesia's members simultaneously increases one squad, the work environment will increase by 0.297 and motivation will increase by 0.225 too. based on the results of the calculation of the significance of individual parameters (table 5), the t-value of the variable work environment (x1) is 2.756 (more generous than t-table = 1.9873) with a significant probability of 0,007 less than alpha (0,05), then the t-value of the variable motivation (x2) is 3.405 (more generous than t-table = 1.9873) with a significant probability of 0,001 less than alpha (0,05), so h1 and h2 are acceptable. there is a positive and considerable influence on each of work environment (x1) and motivation (x2) on the performance oriflame indonesia's members (y) table 6. anova: simultaneos test results (f-test) model summaryb model df1 df2 f-stats sig. test results 1 3 88 21.255 .000b ha acceptable source: spss ver24.00 (2019 mailto:jublinaoktora86@gmail.com jurnal akuntansi, manajemen dan ekonomi,vol. 22 no. 4, 2020, pp. 37 43 based on the results of the simultaneous test calculations (table 6), the score of fstatistics of 21.255 is greater than the f-table (2.708187) at a significant probability of 0,000 (< 5%), then rejects h0 and accepts ha. this means that this test provides a positive and significant impact on the work environment and motivation simultaneously on the performance oriflame indonesia's member. discussion the results of the analysis of the partial test of the work environment variable (x1) on the performance of oriflame indonesia's member resulted in t-statistics (2.756) more significant than the t-table value (1.9873) and significance value (0.007) smaller than the alpha level of 5%. thus rejecting h0 and accepting h1, meaning that there is a positive and significant influence on the work environment on oriflame indonesia's member performance. research findings confirm the importance of environmental factors and customer focus for an oriflame consultant (kamawo, 2016), and the work environment has a significant effect on performance (irawan & kristinae, 2019). increase organizational or company productivity, we need to design organizations, design jobs, and also design work environments, all to provide comfort to the people who work in them so that they feel excited, excited, and get satisfaction at work (tohardi, 2008, hal. 128). the results of the analysis of the partial test of the motivation variable (x2) on the performance of oriflame indonesia's member resulted in t-statistics (3.405) more significant than the t-table value (1.9873) and significance value (0.007) smaller than the alpha level of 5%. thus rejecting h0 and accepting h2, meaning that there is a positive and significant influence on the motivation on oriflame indonesia's member performance. research findings confirm the importance of togetherness, spirit, and passion for staying in business (kamawo, 2016), as well as the influence of work motivation, which functions as a mediator and has a direct effect on the performance of the oriflame funbiz club surabaya network (septiana & azzuhri, 2018). the importance of motivation is the power that is in a person, which drives his behavior to take action. the magnitude of the intensity of the strength within a person to do a task or achieve a goal shows the level of motivation (widowo, 2014). the results of the analysis of the simultaneous test of the work environment and motivation for the performance of oriflame indonesia's member, yielding in an f-statistics score (21.255) is greater than the f-table score (2.708187) and significance value (0.000) smaller than the alpha 5%, thus rejecting h0 and accepting h3, which means that there is a positive influence work environment and motivation to the performance of oriflame indonesia's member simultaneously. performance can be known only if the individual or group of individuals has predetermined success criteria. these success criteria are in the form of specific goals or targets to be achieved. without a target goal, the performance of a person or organization cannot be known because there are no benchmarks. conclusion this research was conducted to analyze the influence of the work environment and motivation to the performance of oriflame indonesia's members and to prove it empirically. the results showed that both partially and simultaneously the work environment and motivation had a positive and significant effect on the performance of oriflame indonesia's members. oriflame indonesia should maintain and, if possible, improve what has been achieved in the work environment and motivation variables with the hope that employee performance will also get better. for other researchers or furthermore, it can deepen by adding other variables that can affect employee performance, such as job conditions, leadership, and a broader population, to prove further that there is a significant influence between motivation and work environment on employee performance. references enjela, s. (2017). pengaruh kualitas produk, citra merek dan harga terhadap keputusan pembelian konsumen pada produk oriflame cabang pekanbaru. pekanbaru: fakultas ekonomi dan ilmu sosial uin suska riau. hasibuan, m. s. (2017). manajemen sumber daya manusia (cetakan ke-18) (revisi ed.). jakarta: pt bumi aksara. irawan, & kristinae, v. (2019). pengaruh lingkungan kerja dan kompensasi jurnal akuntansi, manajemen dan ekonomi , vol. 21, no. 4, 2019, pp. 42 47 terhadap kinerja pegawai di hypermart sampit dan palangka raya. jurnal aplikasi manajemen, ekonomi dan bisnis, 4(1), 8-17. kamawo, d. s. (2016). bisnis oriflame, bisnis konsultan itu sendiri’: budaya organisasi multilevel marketing untuk mewujudkan mimpi. etnosia: jurnal etnografi indonesia, 1(2), 37-53. kurnialis. (2019). perilaku penemuan informasi pada kalangan pelaku bisnis multilevel marketing di pt. herbalife. surabaya: universitas airlangga. mahsun. (2013). metode penelitian bahasa: tahapan, strategi, metode dan tekniknya. jakarta: rajagrafindo persada. mangkunegara, a. a. (2017). manajemen sumber daya manusia. bandung: remaja rosdakarya. mathis, r. l., & jackson, j. h. (2012). manajemen sumber daya manusia (buku 1). (j. sadeli, & b. p. hie, penerj.) jakarta: salemba empat. nitisemito, a. (2001). manajemen personalia dan manajemen sumber daya manusia. jakarta: ghalia indonesia. oriflame. (t.thn.). sebuah perusahaan yang unik. dipetik juni 6, 2020, dari oriflame: our history: https://id.oriflame.com/about/ourhistory robbins, s. p., & coulter, m. (2016). manajemen (jilid 1 dan 2) (13 ed.). (b. sabran, & w. hardani, penerj.) jakarta: erlangga. sedarmayanti. (2018). manajemen sumber daya manusia: reformasi birokrasi, dan manajemen pegawai negeri sipil. bandung: reflika aditama. septiana, h., & azzuhri, m. (2018). pengaruh sistem insentif dan pelatihan terhadap kinerja dimediasi motivasi kerja (studi pada konsultan independen oriflame funbiz club surabaya). jurnal ilmiah mahasiswa fakultas ekonomi dan bisnis, 6(2). correspondence to : rezi.office@gmail.com received: aug, 18, 2020 revised: sep, 1, 2020 accepted: sep, 10, 2020 jurnal akuntansi, manajemen dan ekonomi vol.22, no. 3, pp. 37 43 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the phenomenon that is developing at this time in the industrial world and organizations is that professionals tend to be more committed to the profession than to work in the company where they work. employees who are committed to the profession do not always refer to an organization, so employees like this always move to another job (fineman et al, 2005). one of the phenomena is caused by the gap between employees who work in one company and employees who work in other places, even though they have the same job function. some people who are affected in the end make the decision to move to another company, but not a few of them decide to continue working in the related company (erika, 2011). organizational commitment is one important factor for the integrity of an organization. without a strong organizational commitment in individuals, organizational performance cannot be achieved to the full. organizational commitment is defined as trust and strong acceptance of organizational values, willingness to work hard, and maintaining membership in the organization concerned. this means that there is a strong desire for members to remain in the organization or psychological ties to the organization. there are 3 components of organizational commitment stated by meyer and allen (1991), namely: affective commitment occurs when employees want to be a part of because of an emotional bond. continuance commitment appears when an employee stays in an organization because he needs salary and other benefits, or because the employee does not find another job. organizational commitment becomes an important part of creating a conducive work environment and maximum employee productivity. it is proven when employees who are dissatisfied with their work or less committed to the organization will be seen withdrawing from the organization through absence and turnover (mathis and jackson, 2001). employee commitment can be influenced by many factors and one of them is organizational culture. an understanding of organizational culture is proven when most organizations acknowledge the fact that organizational culture can also contribute to organizational achievement in every aspect of performance in the economic, growth, and financial fields (maloney and federle, 1990 in flamholtz and randle, 1998). the organizational culture will initially be influenced by the surrounding culture of the members of the organization. organizational culture is a characteristic of an organization, impact organizational culture on organizational commitment study of banking company in indonesia rezi muhamad taufik permana1 1department faculty of economics and business, universitas bandung, indonesia abstract organizational culture is no longer seen as a legacy of the past is seen as a mere, but also must be designed and deployed as a strategic tool to achieve corporate objectives. culture is also an indicator to see how committed an employee of the company. using a questionnaire survey, this paper examined effected of corporate culture on organizational commitment. specifically, this paper examines four dimensions of corporate cultures, the teamwork, communication, rewards and recognition, and training and development of employee commitment to the organization. one hundred and fifty-six respondents from banking companies to be a part of this survey. the research hypothesis was tested using multiple hierarchical regression analysis. the results showed that all dimensions of corporate culture that are selected in this study can use as a determinant/indicator of organizational commitment. keywords organizational culture, organizational commitment, reward and recognition, training and development, teamwork, communication, banking jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 37 43 not an individual from any part of it. organizational culture is defined as a shared value system in an organization that determines the level of employees who can carry out all activities to achieve organizational goals (robins, 1999). conceptual framework conceptual frameworks are boundaries that will be used to find business solutions to problems encountered in organizational commitment. organizational commitment is a very vital issue for industries today where the cost of recruiting to employee training is not a challenge for companies to form a strong organizational culture. the approach used by the authors in this study through questionnaire method and for quantitative methods using secondary data sourced from internal company data. using a literature review source from, journals, books and others studies that are similar to the problem approaches that occur in this study, as well as to find best solution. at the deepening stage of the study, the type of research used is causal explanatory. the causal explanation explains the effect of the independent variable and the dependent variable because this study is intended to determine the effect of organizational learning as the independent variable (x) and organizational commitment as the dependent variable (y). organizational culture organizational culture has a significant effect on employee attitudes towards commitment and retaining employees to remain in the organization (ghina, 2012). organizational culture means a value refers to everything in an organization that is considered highly valued, while the norm of organizational culture behavior refers to how elements of the organization must behave (xenikou and fernham, 1996 in mariam, 2009). organizational culture is formed when the original culture of the founding philosophy of the organization, then this culture greatly influences the criteria used in employee work. top management actions determine the general climate of acceptable and unacceptable behavior. the success of socialization to employees will depend on the level of success achieved in matching the new employee's values with the organization's values in the selection and preferences of top management. organizational commitment organizational commitment is defined as a strong desire to maintain the organization and the desire to fight in accordance with the wishes and beliefs of the organization, and organizational goals. in other words, this is an attitude that reflects workers' loyalty to the organization and the ongoing process with organizational members expressing their concern for the organization and its continued success (luthan, 2005). according to kunjoro (2000), organizational commitment relates to employees who are active with the company or organization. employees who have a big commitment have implications for the desire to provide more energy and responsibility in supporting the success of the organization in the workplace. methods this research is intended to determine the effect of organizational culture as an independent variable (x) and organizational commitment as a dependent variable (y). the testing method uses some statistical tests to determine the magnitude of the influence of each of these hypotheses, while for example, the tests conducted are: reliability test, validity test, multiple regression correlation test. the study was conducted on two companies engaged in banking which were conducted using a questionnaire technique. results and discussion respondent characteristics respondent characteristics are important to analyze because data about respondent characteristics are easily obtained data and can show certain behavioral traits. the characteristics of respondents analyzed in this study include age, sex, education, marital status, and years of service. the results of the descriptive analysis of the age of the respondents are presented in table 1 below. table 1. respondent characteristics age frequency percentage ≤ 25 years old 46 29.5% 26–33 years old 54 34.6% 34–45 years old 37 23.7% > 46 years old 19 12.2% total 156 100% jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 37 43 based on the table above, it can be seen that the majority of respondents ≤ 25 years to the age category 26-33 years dominate in this study. according to robbins (2006) in witasari (2009), young employees are more likely to quit than younger employees. thus it can be said that the age category can be said to be vulnerable to leaving the company where they work. the work period shows the experience possessed by individuals in their respective fields of work. the results of the descriptive analysis of the age of the respondents are presented in table 2. table 2. working period age frequency percentage ≤ 1 years 42 26.9% 2 – 5 years 50 32.1% 6 – 9 years 18 11.5% > 10 years 46 29.5% total 156 100% based on table 2 above, respondents with 2-5 years of service are the largest, 32.1% of the total respondents who participated in this study. employees who have a longer working period tend to have a better mastery of work, so they have more effective behavior than less experienced employees. validity test calculation of validity using pearson product moment correlation. the significance test is done by comparing the value of r count with rtable for a degree of freedom (df) = n 2. if the correlated item correlation> rtable (p = 0.05) and positive values it can be concluded that all indicators are valid (ghozali, 2011: 53). in this study, the calculation (df) = 156 2 = 154 with df = 154 (p = 0.05) rtable = 0.157. so, if r count> 0.157, the indicator is said to be valid. however, if r count <0.157, the indicator is said to be invalid. the validity test results are presented in appendix . reliability test the reliability test is carried out to determine the extent to which the measurement results remain consistent, if measurements are made twice or more of symptoms with the same symptoms using the same measuring instrument. on the detail in appendix 2, the cronbach's alpha coefficient (α) research variable shows that training and development (α = 0.876), appreciation and recognition (α = 0.881), teamwork (α = 0.737), communication (α = 0.834), organizational commitment (α = 0.920) meets the reliability testing criteria. correlation test the correlation test aims to examine the relationship between two variables that do not show a functional relationship (related does not mean caused). the following correlation test results are presented, to test and prove statistically the influence of organizational culture on organizational commitment, researchers used multiple hierarchical regression analysis / hierarchical multiple linear regression between organizational culture as an independent variable (x) and organizational commitment as the dependent variable (y). the analysis shows the relationship between variables in two steps. in the first stage, the characteristics of respondents are included as control variables. in the second stage, the dimensions of corporate culture are included as variable responses (main effects). the results of the hierarchical multiple linear regression analysis test are presented in appendix 3. hierarchical multiple linear regression analysis to test and prove statistically the influence of organizational culture on organizational commitment, researchers used multiple hierarchical regression analysis / hierarchical multiple linear regression between organizational culture as an independent variable (x) and organizational commitment as the dependent variable (y). the analysis shows the relationship between variables in two steps. in the first stage, the characteristics of respondents are included as control variables. in the second stage, the dimensions of corporate culture are included as variable responses (main effects). the results of the hierarchical multiple linear regression analysis test are presented in table 3. below. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 37 43 based on the results of the hierarchical multiple linear regression test in the table above, it can be seen that the five control variables are 14.7% of the variation in organizational commitment (f = 5.171, p = <0.01). of the five dimensions of organizational culture (step 1), age (β = 0.049, p = 0.01), marital status (β = -0.224, p = 0.01) and years of service (β = 0.078, p = 0.01) has a significant impact on organizational commitment. conclusions based on the results of tests that have been carried out, it can be concluded that overall dimensions of the organizational culture where the four organizational dimensions, namely training and development, appreciation and recognition, teamwork, and communication have a positive effect on organizational commitment. here are some conclusions based on the results of this study. first, where training and development has a positive effect on organizational commitment. training and development become a very important part of increasing organizational commitment. from the top management's point of view, training is seen as a means of engaging employees' commitment to the company (bartlett, 2001). of the two companies that were the objects of the research, the organizational culture that was built had supported the occurrence of good training and development and became an advantage of the company. this is in line with research conducted by karia, (1999) in boon and arumugam, (2006) stating that providing employees with the right training and proper employee development can increase employee productivity and efficiency will be in line with the increased commitment. second, the results of the study show that appreciation and recognition have a positive effect on organizational commitment. tabel 3 hierarchical multiple linear regression analysis panel a independent variable dependent variable step 1 step 2 beta t sig. beta t sig. controlling variables age work period 0.049 0,078 -0,346 0,562 0,729 0,575 0,050 -0,019 0,548 -0,211 0,585 0,833 respon variables training and development reward and recognition team work communication 0,083 0,406 0,218 0,174 1,134 5,289 3,339 2,214 0,259 0,000** 0,001** 0,028** r. squared adjusted r² sig. f change r² change f change dw= 1,925 0,147 0,119 0,000 0,147 5,171 0,670 0,650 0,000 0,523 57,852 panel b independent variable collinearity statistics tolerance vif step 1 step 2 step 1 step 2 controlling variables age work period 0,280 0,295 0,275 0,290 3,567 3,395 3,634 3,451 respon variables training and development reward and recognition team work communication 0,420 0,384 0,531 0,366 2,380 2,604 1,833 2,729 jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 37 43 appreciation and recognition are not just motivations for employees in increasing productivity. however, the results of this study can be seen that appreciation and recognition have become part of the dimensions of organizational culture in increasing organizational commitment. this result is supported by research by chew and chan, (2008) which states that rumors and recognition have a positive effect in predicting organizational commitment and the desire to remain in the organization. third, the results of the study show that teamwork has a positive effect on organizational commitment. building an organizational culture based on good teamwork will lead to maximum results. evident from the two companies that are the object of research, from exposure to its vision and mission emphasizes working in a team that proves these companies to be a strong company both capital and structurally. research also says the same thing were ere working together in production units/divisions causes better employee attitudes which ultimately increases employee productivity (osland, 1997 in boon and arumugam, 2006). fourth, the results of the study show that communication has a positive effect on organizational commitment. to build a strong organizational culture requires good communication between all people involved in an organization. it is proven that the communication that was built in the two companies that were the object of this study was built with active communication from all stakeholders in the organization. the results of this study are in line with research conducted by boon and arumugam, (2006) where communication as one of the dimensions of organizational culture can increase organizational commitment. recommendation for future research on the basis of the results of the analysis in the study of the influence of organizational culture on organizational commitment, the researcher suggests. research should use other dimensions of organizational culture, apart from the four dimensions that have been tested in this study, and research should use other analysis methods by comparing dimensions of organizational culture with dimensions of organizational commitment namely affective commitment, continuance commitment, normative commitment. references bartlett, k.r. (2001). the relationship between training and organizational commitment: a study in the health care field. human resource development quarterly, vol. 12 no. 4, pp. 335-52. chew, j. and chan, c. (2008) human resource practices, organizational commitment and intention to stay. international journal of manpower. fineman, s., sims, d., and gabriel, y. 2005. organizing and organizations third edition. british : sage publication, ltd. ghina a, (2012), the influence of corporate culture on organizational commitment; case study of civil government organizations in indonesia, international journal of basic and applied science. ghozali, imam. 2011. application of multivariate analysis with spss program. semarang: diponegoro university publisher agency mariam, r. (2009). the effect of leadership style and organizational culture on employee performance as an intervening variable. diponegoro university master's thesis in management. semarang. mathis.l.robert and jackson.h.john. 2001, human resource management, jakarta: second book. meyer, j.p. & allen, n.j. (1997). commitment in the workplace. theory, research and application. thousand oaks: sage. ooi, k.b dan arumugam, v. (2006). the influence of corporate culture on organisational commitment: case study of semiconductor organisations in malaysia. sunway academic journal witasari, l. (2009). analysis of the effect of job satisfaction and organizational commitment on turnover intentions. diponegoro university master's thesis in management. semarang. zain z, ishak r, dan ghani e.(2009). the influence of corporate culture on organisational commitment: a study on a malaysian listed company. european journal of economics, finance and administrative sciences. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 37 43 appendix source: primary data processed, 2019 note: td = training and development; rd = reward and recognition; tm = teamwork; cm = communication; ct = organizational commitment. variabel dimensions variabel corrected item correlation rtabel explanation td td 1 td 2 td 3 td 4 0,856 0,879 0,887 0,810 0,157 0,157 0,157 0,157 valid valid valid valid rd rd 1 rd 2 rd 3 rd 4 rd 5 rd 6 rd 7 0,754 0,775 0,805 0,750 0,818 0,783 0,680 0,157 0,157 0,157 0,157 0,157 0,157 0,157 valid valid valid valid valid valid valid tm tm 1 tm 2 tm 3 tm 4 tm 5 0,686 0,751 0,710 0,634 0,716 0,157 0,157 0,157 0,157 0,157 valid valid valid valid valid cm cm 1 cm 2 cm 3 cm 4 0,798 0,816 0,844 0,823 0,157 0,157 0,157 0,157 valid valid valid valid ct ct 1 ct 2 ct 3 ct 4 ct 5 ct 6 ct 7 ct 8 0,748 0,827 0,726 0,852 0,829 0,857 0,806 0,784 0,157 0,157 0,157 0,157 0,157 0,157 0,157 0,157 valid valid valid valid valid valid valid valid jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 37 43 source: primary data processed, 2019 note: td = training and development; rdr = reward and recognition; tw = teamwork; com = communication; cmt = organizational commitment. description ** p <0.01 (2-tailed) source: primary data processed, 2019 variable dimensions corrected item correlation rtabel explanation result td td 1 td 2 td 3 td 4 0,838 0,824 0,820 0,885 0,876 4 reliable rd rd 1 rd 2 rd 3 rd 4 rd 5 rd 6 rd 7 0,865 0,862 0,857 0,872 0,855 0,861 0,876 0,881 7 reliable tw tm 1 tm 2 tm 3 tm 4 tm 5 0,706 0,660 0,685 0,724 0,680 0,737 5 reliable cm cm 1 cm 2 cm 3 cm 4 0,803 0,784 0,766 0,807 0,834 4 reliable ct ct 1 ct 2 ct 3 ct 4 ct 5 ct 6 cmt 7 cmt 8 0,914 0,907 0,920 0,905 0,904 0,909 0,912 0,920 8 reliable mean sd training and development reward and recognition teamwork communication training and development 16,56 2,58 1 reward and recognition 27,02 4,39 0,681** 1 teamwork 19,31 2,56 0,476** 0,592** 1 communication 16,19 2,21 0,660** 0,705** 0,657** 1 commitment 33,22 4,45 0,618** 0,751** 0,638 0,688** correspondence to : received:june, 12, 2020 accepted: june, 21, 2020 published:june, 30, 2020 jurnal akuntansi, manajemen dan ekonomi vol 23, no , pp.01-11 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction one element that contributes to the success of a company is marketing (luturlean, hurriyati, wibowo, and anggadwita, 2018). marketing is one of the most important parts in the company's survival. in the process of carrying out marketing strategies, companies are required to be able to provide a value for consumers to build a good relationship between the company and consumers and create satisfaction for consumers so as to increase product sales to the maximum (widjajanta and haekal, 2016). marketing is an integrated communication process that provides information about products or services related to meeting the needs of the community. the concept of holistic marketing is based on the development, design, and implementation of marketing programs, processes, and activities that recognize breadth and interdependence (kotler, keller, brady, goodman, & hansen 2012). in the modern business world, the focus of marketing reflects the changing movement from transactional marketing to relationship marketing. according to gronroos (2000), relationship marketing is the activity of establishing, maintaining, and strengthening relationships with consumers and other partners, the benefits are, so that the objectives of the groups involved are met. according to kotler and armstrong (2001: 357): a brand is a name, term, sign, symbol, or design, or a combination of these that is intended to identify a product or service from one or a group of sellers and distinguish it from competing products. the brand is an added value for the company's products, especially if consumers compare it with competing products, the brand can provide positive value so that consumers can easily recognize the quality of the product through the listed brands. brand equity in a general sense, brand equity is defined as the unique marketing effects that appear on a brand. that is, brand equity is related to the fact that differences in results from the marketing activities of a product or service are due to brand elements, compared to the results obtained if the same product or service does not have brand identification. although there are a number of different views of brand equity, in general and consistently a basic idea of brand equity is the "added value" given to a product or service as a result of past investments in brand marketing. brand equity is a number of assets and liabilities related to the brand, its name and symbol, which increase or decrease the value of the product or service for the company or for its customers. brand equity is the value of analysis of brand equity dimensions, relationship marketing, brand equity on panin bonanza program rina purnama1, ari giantika chandra2, ropidin3, siti nurmaliki4 1234master of management, postgraduate, mercu buana university, jakarta indonesia abstract this study aims to determine the effect of brand equity dimensions on brand equity, to determine brand equity dimensions on relationship marketing, and to determine the effect of relationship marketing on brand equity in the formation of panin bonanza brand equity at pt bank panin kcu senayan. the data analysis technique used is the structural equational modeling (sem) method, the method of collecting data using a questionnaire to the customers of pt bank panin kcu senayan who participated in the panin bonanza program. sampling technique using purposive sampling method with a sample size of 110 respondents. based on the results of the study it can be concluded that the equty brand dimension, relationship marketing has a positive influence on brand equity, the brand equity dimension also has a positive influence on relationship marketing. keywords brand equity, brand equity dimensions, relationship marketing jurnal akuntansi, manajemen dan ekonomi , vol. 23 no. 02., year 2020, pp. 01.-11 overall brand strength in the market (cannon, et al, 2008: 302). another understanding of brand equity is the positive differential effect that if consumers know brand names, consumers will respond to products or services (kotler and armstrong, 2008: 282). according to kotler and keller (2009: 263), brand equity is the added value given to products and services. also according to tjiptono (2011: 142), brand equity is a differential effect (different) from the combination of brand awareness and brand meaning to consumer responses to brand marketing. the meaning of the brand refers to the dominant perception of consumers of the company's brand. aaker (2013: 204 defines brand equity as a set of assets and liabilities related to a brand or a series of brand assets and liabilities associated with a brand, name and symbol, which increase or decrease the value that a product or service provides to the company and/or consumers of the company. brand equity contains five important considerations, namely: relating to consumer perceptions rather than objective indicators, is a global impression of the value associated with brand names, grown from brand names and not just physical attributes, must be compared with competing brands, and influence financial brand equity positively. brand equity dimensions brand awareness brand awareness is the ability of a prospective buyer to recognize, recall a brand that a brand is differentiated from other brands through its dimensions (aaker, 2013: 204). brand awareness is the ability of a prospective buyer to recognize or recall that a brand is part of a particular product category (humdiana; chamid et al, 2015). consumers will tend to buy a brand that is already known because they feel safe with something that is already known (humdiana; chamid et al, 2015). a brand that is remembered by consumers has reliable benefits and quality that is accounted for and guaranteed so that the appearance of the brand is realized by consumers. according to durianto et al. (2004: p.55) brand awareness has several levels from the highest level to the lowest level (unaware of the brand), namely: (1) top of mind is a brand that is first mentioned by consumers or that first appears in the minds of consumers, or the brand is the main brand of various brands that exist in the minds of consumers. at this level the customer really understands and recognizes the elements of a brand. (2) brand recall is an unaided recall. at this level it reflects brands that can be remembered well without assistance. (3) brand recognition is a minimum level of brand awareness, where brand recognition reappears after an aided recall. at this level the customer will remember the brand after being given assistance by showing certain images or features. (4) unaware of brand is the lowest level in the brand awareness pyramid where consumers are not aware of a brand. at this level the customer does not recognize the brand at all even though through aids, such as showing pictures or brand names. the forms of marketing communication include: personal selling, advertising, sales promotion, sponsorship marketing, publicity, communication at the place of purchase. brand associations brand association is everything related in the consumer's memory about a brand (aaker, 1991). brand associations can be seen in all forms and reflect product features or independent aspects of the product itself (chen, 2001). established brand name associations can influence purchasing behavior and affect user satisfaction. even when such associations are not important for brand choice, they can be convincing, reducing incentives to try other brands (aaker, 1991). there are many possible associations, and a variety of associations can provide value. aaker (1991) suggests eleven types of associations, namely: product attributes, intangible goods, customer benefits, relative prices, use or applications, users or customers, famous people, lifestyle or personality, product classes, competitors and countries or regions geographical. brand equity is largely supported by customer associations with brands, which contribute to a particular brand image. the association component usually includes an image dimension that gives uniqueness to a product class or to a brand. measurement of brand associations is arranged in three perspectives (aaker, 1996), namely: brand as product / value (brand as product / value), brand as person (the brand as person), and brand as organization (the brand as organization). brand associations according to keller (1993) are distinguished based on the level of abstraction, meaning based on how much information is included in the association. in this case, the types of jurnal akuntansi, manajemen dan ekonomi , vol. 23 no. 02., year 2020, pp. 01.-11 brand associations can be grouped into three namely: 1) attributes, 2) benefits, and 3) attitudes. referring to sadat (2009: 140) strategies for developing brand associations are as follows: (a) utilizing the image of the country of origin, that is by utilizing the country of origin which has a strong tradition of certain products. (b) utilizing the name of the company making the product, keller in sadat (2009: 147) suggests that utilizing the name of the company making the product as an association can be done in 3 (three) ways: creating a new brand, modifying an existing brand, and combination. (c) using avangelist brand that is using credible sources that are usually obtained from well-known figures, including celebrities. (d) using a network of well-known retailers using a network of wellknown retailers to develop brand associations. (e) co-branding by doing joint marketing or joint products. (f) licence. in connection with a specific contract between two or several parties who agree to use the brand, logo and all other forms of ownership so that it can be used by other parties. (g) perform various events. this can be done by becoming a sponsorship for social activities, sports, and entertainment. brand loyalty brand loyalty can be defined as the level of consumer loyalty to a particular brand. this loyalty is expressed through repeated purchases and other positive behaviors such as word of mouth promotion, regardless of the marketing pressure generated by other competing brands (kotler, et al., 2008). brand loyalty is a measure of the customer's relationship with a brand. (aaker, 2013: 206). the concept of loyalty helps companies better manage customer relationship management to create long-term investment and profitability (samiadi; mohsina et al, 2013). brand loyalty is related to the user's buying behavior over time (jumiati sasmita, 2014). brand loyalty is defined as a repeat purchase of a product or service based on their satisfaction thereby resulting in the purchase of the same brand or brand set (deng, lu, wei, and zhang 2010). durianto et al. (2004, pp.132-133) explained that brand loyalty can be measured through: (1) behavior measures; is a way to determine loyalty especially for the level of habitual behavior through the calculation of actual purchase patterns. here are some sizes that can be used: (a) repurchase rate; the percentage of customers who bought back the same brand in that type of product. (b) percentage of purchase; the percentage of customers for each brand purchased from the last few purchases. (c) the number of brands purchased; the percentage of customers of a product to only buy one brand, two brands, and so on. (2) measuring switch costs; in general, if the cost of changing brands is very expensive, consumers will be reluctant to change brands so that the product switching rate is low. (3) measuring satisfaction; if consumer dissatisfaction with a brand is low, then, in general there is not enough reason for customers to switch to another brand unless there are other strong pull factors. (4) measuring liking brand; liking the brand, trustworthiness, respect, or friendship with a brand will provide closeness and warm feelings to consumers. it will be difficult for other brands to attract customers who are in this stage. the measure of liking is the willingness to pay a higher price to get the product. (5) measuring commitment; take into account the number of interactions and consumer commitments associated with the product. consumers' favor of a brand will encourage them to talk about the brand to others both at the level of telling or to the recommending stage. perceived quality perceived quality is defined as the customer's perception of the overall relative quality or superiority of a product or service against the choice. the impression of quality cannot be determined objectively, because the impression of quality itself is a summary of the construct (aaker, 1991). the perceived quality is very important in several respects. in many contexts, the perceived quality or perceived quality of the brand provides an important reason for buying. this affects which brands are included and not included in the consideration of the brand to be chosen. the advantage of quality impressions gives you the option to set a premium price. bruck and zeithmal in monirul and jang hui han (2012: 100) explained that there are several strategies to improve perceived quality, namely: ease of use of products, functionality, service ability, durability, performance, prestige. the various dimensions that underlie the assessment of quality impressions will depend on the context. to study dimensions that are relevant in a particular context, it is usually useful to conduct some research. aaker (1991) summarizes the jurnal akuntansi, manajemen dan ekonomi , vol. 23 no. 02., year 2020, pp. 01.-11 dimensions of product quality and service quality proposed by david a. garvin and parasuraman, zeithaml and berry. the dimensions of product quality according to david a. garvin (1984) in aaker (1991) include: 1) performance, how effective a washing machine is in cleaning clothes. 2) product characteristics, does a toothpaste have a practical tube. 3) conformity with specifications, in the event of any specification deviation. 4) reliability, can a lawn mower work properly every time it is used. 5) durability, how long can this lawn mower last. 6) service, is the service system efficient, competent, and comfortable. 7) the final result, does the product look and feel like a quality product. while the dimensions of service quality according to parasuraman, zeithaml and berry (1985) in aaker (1991) include: form, reliability, competence, responsibility, empathy. the impression of quality is different from satisfaction. a customer can be satisfied because he has low expectations of performance. however, the impression of high quality is not synonymous with low customer expectations. in many cases, the impression of the quality of a brand will provide a strong reason for buyers to influence which brands need to be considered and ultimately influence what brand to choose. relationship marketing relationship marketing is one of the contemporary marketing strategies for all companies to meet the needs and desires of customers. building, maintaining, and always improving customer relationships is an important aspect of business. relationship marketing develops in the business world because business people realize that to develop and maintain a business, not only by getting a lot of customers but also how to get customers, maintain and retain these customers. according to kotler (1997, p.11) states that relationship marketing is a practice of building satisfying long-term relationships with key parties including customers, suppliers, and suppliers to maintain long-term preferences and business. sin et al. (2005), considered relationship marketing as one dimensional structure with six key factors namely: trust, trust is a key component of the business relationship, and determine to what extent each side of relationship the can count on promises of other side of the relationship. trust is a central variable in long-term transactions. trust is studied as a key structure in relationship marketing model. trust between buyer and seller leads to greater efficiency and long-term relationships (sin et al., 2005). bonding, the other component is a commercial communication which is built between the buyer and seller and in the status plays a role to achieve the desired goal. existence of this component in relationship marketing leads to develop and increase customer loyalty and create the sense of belonging to the association directly and a sense of belonging to the organization indirectly. studies show that a stronger link between buyers and sellers make a commitment to maintain the relationship (sin et al., 2005). relationshop, consists of formal and informal interactions that cause significant and timely exchange of information between the buyer and seller. communication plays an important role in building trust. morgan and hunt (1994) have done the research to create positive impact and informal communication between the retailer and vendor commitment expressed in the automobile industry (sin et al., 2005). in relationship marketing, communication is often overlooked. this is unfortunate, because all the other elements are experienced through communication. communication, especially timely communication, strengthen trust by helping to resolve disputes and expectations (rashid, 2003). shared values, shared values is the common beliefs of the sides about behavior, policy objectives, including the: the important or unimportant, appropriate or inappropriate and right or wrong. goals and shared values make a greater commitment to the relationship (sin et al., 2005). empathy, this relationship marketing component allows each of the sides to examine the situation from the perspective of the other side. in fact, empathy is to understand the needs and goals of the other side of the relationship. to strengthen relations between the sides in the transaction, empathy is a necessary issue (sin et al., 2005). reciprocity, another component of relationship marketing is reciprocity that jurnal akuntansi, manajemen dan ekonomi , vol. 23 no. 02., year 2020, pp. 01.-11 makes each side provides special accommodations for other side in return to the received interest or benefits. as ellis (1993) stated: relationship marketing is characterized by interactions and longterm commitments. the chinese believe that the interaction can be based on characteristics of individual so that the service provider (supplier) provide the interests of the service and specialty services to customers to compete with the rest of the market (competitors) (yau et al., 2000). the law of reciprocity with regard to social norms focuses on client behavior huang says that if you receive a drop of a sense of the person you must give fountain of feeling in return (samiee and walter, 2003). research methods the population in this study were all customers at pt bank panin, tbk kcu senayan jakarta. the sample of this study is that customers join the panin bonanza program at pt bank panin, tbk kcu senayan jakarta. the sampling method in this study is purposive sampling, which is sampling based on certain criteria, where the authors limit sampling to 110 people with the criteria being respondents who have used and are currently taking the panin bonanza program. this research uses primary data and secondary data. primary data were obtained from questionnaires distributed to customers who had participated in the panin bonanza program at pt bank panin, tbk kcu senayan jakarta, and secondary data from other sources such as journals and books. the data analysis method used is the structural equational modeling (sem) method. the hypothesis in this study are: h1: brand equity dimensions has a positive effect on brand equity. h2: brand equity dimensions has a positive effect on relationship marketing. h3: relationship maketing has a positive effect on brand equity. hypothesis testing criteria: the hypothesis is accepted if c.r (critical ratio) = t-table. the hypothesis is rejected if the c.r (critical ratio) < t-table. results and discussion the study was conducted to 110 respondents who are customers of pt panin bank kcu senayan who participated in the panin bonanza program, as many as 43.8% of male respondents, and 56.3% of female respondents with age and old age distribution of pt panin bank kcu senayan customers are as follows: table 1. age range age total percentage 20 – 30 year 9 8,3 % 31 – 40 year 41 37,5 % 41 – 50 year 39 35,4 % 51 60 year 21 18,8 % total 110 100 % source: primary data from table 1 it can be seen that the majority of customers who participated in the panin bonaza program at pt bank panin kcu senayan are in the age range of 31-40 years, which is as much as 37%. table 2. period of time being a customer of pt bank panin kcu senayan year total percentage 1 3 year 25 22,9% 3 – 5 year 67 60,4 % >5 year 18 16,7% total 110 100 % source: primary data in table 2 shows the majority of customers who joined the panin bonanza program in the period of 3.1 -5 years which is equal to 60.4%. it can be seen that the panin bonanza program has been running since 2015, and is effectively carried out annually with a format that is always being developed. judging from the objectives of the bonanza panin program (annual report, 2018), it has the aim of increasing the current account saving account (casa) ratio of customers' low-cost funds. low-cost funds are a source of bank funds derived from low interest products such as savings and current accounts. by using the structural equational modeling (sem) data analysis method, the evaluation of data normality is carried out using the criterion value of the normality skewness ratio of ± 2.58 at the 0.01 level. data can be concluded to have a normal distribution if the value of the critical ratio skewness is below the absolute value of 2.58 (suliyanto,2011). based on the data from it can be seen that the critical value of the skewness ratio of all jurnal akuntansi, manajemen dan ekonomi , vol. 23 no. 02., year 2020, pp. 01.-11 indicators shows the normal distribution because each critical value is less than the absolute value of 2.58 at a significant level of 0.01. therefore, it can be concluded that the observed variable data are proven in a normal distribution. evaluation of outliers outliers outliers based on the data obtained z-score (on each indicator smaller than ± 3, so that research data states that are free from univariate outliers. while the analysis results on the multivariate outliers evaluation obtained the highest value of mahalanobis distance of 54,048. the farthest mahalanobis distance divided by the indicator 45,528:19 = 2,3962 is smaller than 2.50. this shows that there are no multivariate outliers (hair et al., 2010). after conducting confirmatory analysis and structural equation modeling, the model testing is then performed by looking at the value of the goodness-of-fit index. table 3. goodness of fit test goodness of fit index cut of value result category x2 -chi square2 152,471 good fit probability ≥ 0,05 0,406 good fit cmin/df ≤ 2,00 1,023 good fit gfi ≥ 0,90 0,874 marginal fit agfi ≥ 0,90 0,840 marginal fit rmsea ≤ 0,08 0,015 good fit tli ≥ 0,95 0,995 good fit cfi ≥ 0,95 0,996 good fit source: primary data x2 chi-square statistic the greater the sample size, the statistics (x2) obtained tend to be even greater with the smaller p-count value. so for large sample sizes, statistics (x2) tend to reject the model. the model is accepted if the cut off value is p ≤ 0.05 or p ≥ 0.10 (hair et al., 2010). then it can be concluded that the model in this study goof fit. cmin/df the cmin/df value result in this study was 1,023. the model in this study is good fit because the value of cmin/df = 1,023 ≤ 2,0. gfi goodness of fit index the gfi value result in this study was 0,874. the model in this study is marginal fit because the value of gfi = 0,874 ≤ 0,90. agfi – adjusted goodness of fit index the agfi value result in this study was 0,840. the model in this study is marginal fit because the value of agfi = 0,840 ≤ 0,90. rmsea – the root mean square error of approximation the rmsea value result in this study was 0,015. the model in this study is good fit because the value of rmsea = 0,015 ≤ 0,080. tli – tucker lewis index the tli value result in this study was 0,995. the model in this study is good fit because the value of tli = 0,995 ≥ 0,95. cfi – comparative fit index the cli value result in this study was 0,996. the model in this study is good fit because the value of cfi = 0,996 ≥ 0,95. based on the results of sem analysis statistics in the suitability test of the goodness of fit test model in table 3, obtained 6 criteria included in the good fit category, and 2 criteria included in the marginal fit category. so overall this research model can be categorized as a very good model. h1: brand equity dimensions has a positive effect on brand equity. based on table 4 it is known that the critical ratio or c.r (3,984)> t table (1,287) and p (0,000) <0.05. then the hypothesis stating the brand equity dimension has a positive effect on brand equity is accepted. brand equity can provide value for the company (durianto, et al 2004) including: strong brand equity can help companies in efforts to attract potential customers and efforts to establish good relationships with customers and can eliminate consumer doubts about the quality of the brand, all elements brand equity can influence consumer purchasing decisions because strong brand equity will reduce the desire of consumers to move to other brands. consumers who have high loyalty to a brand will not be easy to move to competing brands, jurnal akuntansi, manajemen dan ekonomi , vol. 23 no. 02., year 2020, pp. 01.-11 even if competitors have innovated products, brand associations will be useful for companies to evaluate the decision of brand expansion strategies, companies that have strong brand equity can determine premium prices and reduce the company's dependence on promotions, companies that have strong brand equity can save on expenses at the moment, the company decides to expand its brand, strong brand equity will create distribution channel loyalty that will increase the company's sales, and the four core elements of brand equity (brand awareness, brand association, perceived quality, and brand loyalty) that can increase the strength of the equity element other brands such as consumer trust, and others. from the data of 4 (four) dimensions of brand equity, customer assessment is included in the sufficient category. so that in the decision stage the marketing strategy is considered through items from each dimension of brand equity. through this data, panin bank is able to provide status to several customer groups. so, if there is a target to expand panin bonanza marketing program, it can be seen at the level of customer impressions on the brand loyalty dimension. brand equity from the respondent's point of view, that is, the customer rate is quite good. in addition, panin bank can provide prize programs, by conducting customer surveys in the future. this is to get information about customer satisfaction in joining the bonanza program. so, the marketing program can be used in the long run.this research is in line with hayan dib and abdullah alhaddad (2014) who have proven in research that all dimensions of brand equty have a positive and significant effect on brand equity itself, all dimensions are interrelated in building good brand equity. h2: brand equity dimensions has a positive effect on relationship marketing. based on table 4 it is known that the critical ratio or c.r (5,193)> t table (1,287) and p (0,000) <0.05. then the hypothesis stating the brand equity dimension has a positive effect on relatinship marketing is accepted. the brand equity dimension is one that influences the relationship marketing of pt bank panin tbk kcu senayan's panin bonanza program. on the brand awareness dimension of panin bonanza ads this is the biggest indicator in brand awarwness, where when customers see panin bonanza ads, the advertisements immediately remind them of products from pt bank panin. the brand association of this program shows the features of the panin bonanza program that have advantages compared to other programs so that many customers are interested in joining the panin bonanza program. according to astuti and cahyadi (2007), if customers are not interested in a brand and buy because of the characteristics of the product, price, comfort, and with little concern for the brand, the possibility of brand equity is low. whereas if customers tend to buy a brand even though faced with competitors who offer superior products, for example in terms of price and practicality, then the brand has a high equity value (astuti and cahyadi, 2007). if it is related to the brand loyalty dimension, the customers who follow the panin bonanza program are always faithful to participate in the program because the preceived quality from the panin bonanza program itself, namely panin bonanza, gives a varied and luxurious prize. according to kotler (1997, p.11) states that relationship marketing is a practice of building satisfying long-term relationships with key parties including customers, suppliers, and suppliers to maintain preferences and business in the long run. according to qalby, jusni, munir (2018: 16), that during the twentieth century period relationship marketing became a major trend in marketing and certainly was large (and arguably the most controversial). therefore, brand awareness is the main factor because with consumers knowing about the brand, they are interested in using the brand because consumers trust our brand. in the end consumers have a bond and relationship to the brand that makes consumers loyal to the brand from it. h3 : relationship maketing has a positive effect on brand equity. based on table 4 it is known that the critical ratio or c.r (3,400)> t table (1,287) and p (0,000) <0.05. then the hypothesis that relationship marketing has a positive effect on brand equity is accepted. the results of a survey of 110 respondents through a questionnaire showed that known information about panin bonanza was obtained from bank panin employees directly as much as 39.6%, meaning that there were almost 44 respondents who knew panin bonanza through bank employees. this is done with the relationship marketing approach built by panin bank employees and customers through the one to one marketing concept. jurnal akuntansi, manajemen dan ekonomi , vol. 23 no. 02., year 2020, pp. 01.-11 according to gronroos (2000), relationship marketing is the activity of establishing, maintaining, and strengthening relationships with consumers and other partners, its benefits, so that the objectives of the groups involved are met. the rest of the information sources are obtained by customers from friends, family, to social media. it can be concluded that sources of information through bank employees dominate customers to find out about the bonanza panin program. this is done by direct communication. direct communication is aimed at targeting all panin bank customers to follow panin bonanza. the brand equity dimension from the customer's perspective is quite good. panin bank can provide a prize program, by conducting customer surveys in the future. this is to get information about customer satisfaction in joining the bonanza program. so, the marketing program can be used in the long term. aaker (1996) in a study investigating the impact of relationship marketing orientation on brand equity in sri lankan banks, concluded that relationship marketing orientation had a significant and positive impact on brand equity in banks. these findings indicate that the relationship between marketing orientation in banks to keep their brand name adding value. also, the relationship marketing approach adopted by banks helps in the formation of an identity for their brand names in the minds of customers, as a result, banks can maintain their competitive position in the banking industry. in addition, relationship-oriented marketing helps attract customers with optimal brand experience that reduces the possibility of using rival banks. in short, marketing relationship orientation has a significant influence on brand equity in banks. specifically, trust in the main dimensions affects brand equity, while communication, shared values, and cooperation and progress have a positive effect on increasing brand equity in banks. connecting and interacting with customers has no significant effect on brand equity. conclusion brand equity contributes significantly to sales and long-term profits for a product. formation of brand equity through a product program becomes important. panin bonanza program is one of the programs created by pt bank panin in building the company's equty brand. based on the results of the study it can be concluded that the brand equity dimension has a positive influence on brand equity, the brand equity dimension has a positive influence on relationship marketing, and relationship marketing has a positive influence on brand equity. thus it can be concluded that all variables have a positive influence on the formation of brand equity at pt bank panin kcu senayan. as an empirical study, the results of this study can be used by pt panin bank kcu senayan to maintain its brand equity, even though the brand equty is good, panin can consider using current marketing strategies through digital marketing such as social media in the form of the whatsapp group community (wag), instagram or facebook. the limitation of this research is that the writer only measures two variables that affect brand equity in a panin bank program. so that future research can be done by adding other variables that might affect brand equity, or it could be by adding mediation between independent variables and dependent variables in the study. in addition, future research can be done by applying the model to other products, both goods and services. references (tahoma 10 bold, uppercase) aaker david a. 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(2000). relationship marketing the chinese way. business horizons, 43, 16-24. jurnal akuntansi, manajemen dan ekonomi , vol. 23 no. 02., year 2020, pp. 01.-11 list of tables table 4. the results of the evaluation of data normality variable min max skew c.r. kurtosis c.r. x13 1,000 5,000 -,074 -,316 -1,059 -2,267 x19 1,000 5,000 -,455 -1,950 -,247 -,529 x18 1,000 5,000 -,015 -,066 -,353 -,755 x17 1,000 5,000 -,418 -1,789 -,495 -1,059 x16 2,000 5,000 -,134 -,573 -,249 -,534 x15 1,000 5,000 -,596 -2,551 ,465 ,995 x14 2,000 5,000 -,063 -,271 -,924 -1,977 x7 1,000 5,000 -,342 -1,466 -,700 -1,498 x8 2,000 5,000 -,124 -,530 -,984 -2,106 x9 1,000 5,000 -,364 -1,558 -,488 -1,045 x10 4,000 5,000 ,332 1,420 -1,890 -4,046 x11 1,000 5,000 -,367 -1,570 ,154 ,330 x12 1,000 5,000 -,301 -1,290 -,569 -1,218 x1 1,000 5,000 -,451 -1,931 -,070 -,150 x2 1,000 5,000 -,252 -1,079 -,797 -1,707 x3 1,000 5,000 -,307 -1,312 -,281 -,601 x4 1,000 5,000 -,586 -2,509 -,057 -,121 x5 1,000 5,000 -,364 -1,558 -,541 -1,158 x6 1,000 5,000 -,543 -2,325 -,397 -,850 multivariate 15,517 2,881 table 5. hypotheses test (arial 9 bold, sentence case) hypothesis c.r value t table value p result dimensi brand equity → brand equity 3,984 1,287 0,000 accepted dimensi brand equity → relatinship marketing 5,193 1,287 0,000 accepted relationship marketing → brand equity 3,400 1,287 0,000 accepted jurnal akuntansi, manajemen dan ekonomi , vol. 23 no. 02., year 2020, pp. 01.-11 list of figures figure 1. model test correspondence to : rhaninas@gmail.com received: aug, 8, 2020 revised: oct, 1, 2020 accepted: oct, 17, 2020 jurnal akuntansi, manajemen dan ekonomi vol.22, no. 4, pp. 1 8 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction along with the times, humans have undergone many drastic changes starting from ancient civilizations to become more modern. this can be seen from the presence of a variety of technologies that are increasingly developing, the field of technology has an important role in taking over the advances that occur in human life. one of them is in information technology which in its application is related to internet networks. this condition makes the growth of internet users more rapidly throughout the world. this makes sense because of the use of the internet which can easily access various kinds of information from around the world. some people see this as something that has potential with great opportunities to reap profits in starting a business. therefore, now businesses have experienced a shift in methods caused by the positive impact of the internet. previously, buying and selling activities started from conventional transactions to become more modern transactions. this activity is called ecommerce, namely electronic trading activities carried out online. many platforms that create e-commerce include amazon, alibaba, ebay, and others. do not miss indonesia also began to follow the development and changing times that occur in the world of trade through ecommerce companies. shopee, tokopedia, bukalapak, and others are the names of the platforms available in indonesia. shopee was first launched in singapore in 2015 and began entering indonesia in the same year. shopee is the most popular platform for indonesian people, it can be said that shopee is successful in running her business, especially in indonesia. it can be seen that shopee is an ecommerce platform that applies the consumer to consumer (c2c) and business to consumer (b2c) business models. c2c is a communication system and business transactions between one consumer and another to be able to meet certain needs at a certain time anggiani (2018), while b2c is a business communication system between business people and consumers to be able to meet certain needs at certain times anggiani (2018). therefore, intense competition may occur and requires sellers to have good knowledge and skills to be able to attract the attention of potential buyers in this modern business. talking about modern business, of course this is closely related to modern society as well. according to brusdal and lavik (2005) in juliastuti et al. (2016) stated that as people's shopping habits increase, this is also supported by the advancement of the banking system that issues credit cards, debit cards, etc., so that consumers change to become increasingly hedonistic and impulsive. there is also semuel (2009) in the effect of flash sale and discount towards impulsive buying (study on shopee users) rhani nastiti1, edi suswardji nugroho2 1,2department of management, faculty of economics, universitas singaperbangsa karawang, indonesia abstract the purpose of this study is to explain the effect of flash sale and discount towards impulsive buying on shopee users. this study used path analysis to determine the description of the variables studied and their effects, either directly, indirectly, partially or simultaneously on endogenous variables. based on the results of the study indicate that there is the partial effect of flash sale and discount towards impulsive buying. based on the the results of the study also showed that there is a positive effect simultaneously of flash sale and price discount towards impulsive buying in amount of 0,513 or 51,3%. then the rest has amount of 0,487 so that the effect of variables not used in this variable has amount of 48,7% such as for example service quality, marketing costs, personal selling, and others. keywords e-commerce, shopee, flash sale, discount, impulsive buying mailto:rhaninas@gmail.com jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 1 8 zakiyyah (2018) who argues that unplanned buying behavior or impulsive buying is something that is attractive to producers and retailers, because it is the largest market share in the modern market. impulsive buying decisions usually use emotion rather than logic. emotionally attracted consumers no longer care to involve rationality in the purchasing decision-making process. consumer behavior in making sudden decisions is a golden opportunity for actors or sellers in e-commerce. business people can act quickly to take advantage of this opportunity, one of which is a sales promotion strategy. sales promotion is a short-term stimulant that is planned to stimulate the consumer, trade, and sales force markets (suyanto, 2013) in reza (2016). shopee has a sales promotion feature which it calls flash sale, sellers can offer their products in this feature. flash sale is a concept of product promotion to consumers by way of big discounts, in a very limited time. based on a study conducted by agrawal & sareen (2016) in zakiyyah (2018), it shows that flash sales have helped companies to attract the attention of the masses or potential consumers, but the company was unable to take advantage of the attention generated to turn it into revenue for the company. the part of the sentence "helping companies to attract the masses" of the study could be interpreted to entice consumers to make impulsive buying. the second strategy is that sellers can provide discounts for a longer time than flash sales that are only a few hours apart. based on the results of research by nasib (2017), it is revealed that there is a positive and significant effect on price discounts on impulsive buying. based on this, this research will be done knowing as the effect of flash sale and discount towards impulsive buying (study on shopee users). flash sale based on the classification of promotional tools, the sales promotion provided by the shopee platform, namely the dimensions of the trade promotion tool, is more specifically the category of price off deals in the form of flash sales. lee and lee (2012) in sujata et al. (2017), argues that flash sales as electronic distribution channels that are used for limited time heavy discounts for the advance purchase of products or services. dholakia (2011) in yogiswara (2018) , deal of the day (flash sale) is an e-commerce business model where a website offers one product to sell in a period of 24 to 36 hours. the dimensions used to measure the flash sale variable were developed by belch & belch (2009) in yogiswara (2018), namely big discount or discount during promo, frequency of flash sale promo, duration of flash sale promo, number of products available at flash sale promo, attractive flash sale promo. discount discounts are a sales promotion tool. kotler and keller (2012) define that discount is a price reduction to buyers who pay bills promptly. kasimin et al. (2014) in wahyudi (2017), the price discount is a discount if the payment is made earlier than the credit period. peter and olson (2014) in ginting (2019), discounted prices are pricing strategies that involve a long-term plan to systematically reduce prices after introducing high-priced products. kotler (2009) in ginting (2019) states that discount is a basic price adjustment to reward customers for certain reactions, such as early bill payments, purchase volume and offseason purchases. brian (2016) in ginting (2019), the objectives of holding price discounts are: 1. encourage buyers to buy in large quantities so that sales volumes are expected to increase. discounted prices will have an impact on consumers, especially in the pattern of consumer purchases which ultimately also have an impact on the sales volume obtained by the company. 2. purchases can be focused on the seller, so that it can add or maintain subscriptions of the seller in question. 3. is a sales service that can attract purchase transactions. mariana (2009) in ginting (2019), argues that price discounts are given due to several factors namely : 1. the item will be replaced by a newer model, 2. something is wrong with this product, so it is having trouble selling it, 3. the company is experiencing serious financial problems, 4. the price will drop even further if you have to wait longer, 5. the quality of the products by the company is lowered. according to astuti (2011) in ginting (2019), to measure the price discount can be seen from the following things, namely the attractiveness of the price discount program, the stipulation of the discount program in jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 1 8 influencing purchases, the frequency of the discount program. impulsive buying impulsive buying is a buying decision made by a customer at a place after seeing an item or product. kharis (2011) in fernanda (2019) defines that impulsive buying is a person's behavior where the person does not plan something in shopping. then, utami (2010) in ompi et al. (2018) states that impulsive buying is an act of buying that is made without being planned beforehand, or a purchase decision is made while in the store. according to rook in yessica (2015) in his thesis ginting (2019), impulsive buying consists of the following characteristics: 1. spontanity, impulsive buying happens unexpectedly and motivates consumers to buy right away, often in response to point-ofsale visual stimuli. 2. power, compulsion, and insensity, the motivation to put other things aside and act quickly. 3. excitement and stimulation, this sudden desire to buy is often followed by emotions such as exciting, thrilling, or wild. 4. disregard for concequences, the desire to buy can become irresistible until the possible consequences are ignored. according to ma'ruf (2006) in ginting (2019) states that there are three types of impulsive purchases, namely : completely unplanned, namely consumers do not intend to buy a product or service category before coming to the store, partially unplanned, that is, if the consumer intends to buy a product or service category, but has not yet determined the brand of the product to be purchased before visiting the store, unplanned substitution, that is, if the consumer has decided what brand to buy but changes his choice when visiting the store. winatha (2013) putra and santika (2018) classify impulsive buying into four indicators which are used as dimensions, namely: 1. spontaneous buying, a condition where customers often buy something without being planned in advance. 2. purchasing without thinking about consequences, is a situation where customers often make purchases without thinking about the consequences of the purchases made. 3. rush purchases, is a situation where customers often feel that they are too hasty in buying something. 4. purchasing is influenced by emotional states, is a customer assessment where customers do shopping activities influenced by the emotional state they feel. correlation of flash sale with discount according to kotler and keller (2012) , it is known that flash sales and discounted prices are tools of sales promotion, flash sale is a tool of trade promotion namely price off deals where discounts are made at certain periods. meanwhile, discount is a consumer promotion tool in the price package category (cent-off-deals), which means offering consumers savings from the regular price of a product. so with this flash sales and price discounts have an effect, because in flash sales there are also discounts, it's just that flash sales have a limited time span and are relatively fast than general discounts. sujata et al. (2017) in an international journal entitled "impact of flash sales on consumers & e-commerce industry in india" concludes that flash sales help the e-retail industry to increase sales revenue, and large discounts (price discounts) are its backbone. researchers interpret that, flash sales that provide a significant discount. h1 : there is correlation of flash sale with discount the effect of flash sale towards impulsive buying nowadays sales promotions in the form of flash sales are being loved by many business people. flash sale, which is a promotion by means of a limited time price reduction, can affect consumer behavior by playing on the psychology, consumers will assume that they will run out of products being offered, so consumers tend to buy more unplanned beforehand or in other words spontaneity. which is known as impulsive buying. zakiyyah (2018) states that impulsive purchases occur during flash sale offers. it is proven that flash sales have a positive effect on impulsive purchases. h2 : flash sale affects positively to impulsive buying the effect of discount towards impulsive buying goulla et al. (2017) argue that producers offer trade discounts that expect wholesale retailers to provide price reductions to consumers, resulting in larger purchases. so with this theory it is expected that discounts can have a positive effect on impulsive buying. this is supported by the opinion of nasib (2017) concluding that price discounts have a positive and significant effect on impulsive buying decisions at pt. toyota auto 2000 jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 1 8 sisingamangraja medan branch that he researched. h3 : discount affects positively to impulsive buying the effect of flash sale and price discount towards impulsive buying flash sale and discounts are two things that are included in a sales promotion. the tendency of consumers to buy products at discounted prices, making consumers will be in a hurry if the discount is given a short time limit such as flash sale so that the volume of business sales increases due to impulsive buying behavior of consumers during the flash sale time. solenski (2017) in the title "influence of price discount and sales promotion on impulsive buying azwa perfume pekanbaru". stating that the price discount and sales promotion simultaneously have a significant effect on impulsive buying. because flash sale is included in sales promotion, it is considered as flash sale and price discount simultaneously affecting impulsive purchases. h4 : flash sale and price discount affect simultaneously to impulsive buying conceptual framework figure 1. conceptual framework methods the population in this study were shopee users in karawang. the sampling technique in this research uses area sampling, which is a technique used to determine the sample if the object to be studied or the data source is very broad, for example the population of a country, province or district sugiyono (2017). the number of samples taken in this study used general guidelines from various sources such as hair et al. (2003) in ferdinand (2014) to determine the size of the study sample, as follows : sample = 5 x variable parameters (indicators). in this study using 28 indicators. so the sample needed is 5 x 28 = 140 respondents. data collection is done by questionnaire. results and discussion characteristics of respondents the number of respondents surveyed was 140 people. in this study characteristics are used based on gender, age, last education, type of work, monthly income, level of shopping activity, and types of products that are often purchased. the majority of respondents in this study were women at 83.6%, based on the age of the majority in this study was 21-30 years old at 74.2%, based on the latest education, the majority in this study was senior high school at 85%, based on the type of work, the majority in this study was students at 85%, based on the monthly income, the majority in this study was rp 500.000 rp 1.000.000, at 73.6%, based on the level of shopping activity, the majority in this study was quite often at 60%, and based on the type of product that is often purchased, the majority in this study was clothes at 34.3%. validity and reliability test the data is considered valid if the value of r count > r table. r table for 140 respondents with a 5% significance level is 0.1660. then, from the data obtained there are 28 indicators, all of which have the result of r that is greater than the r table. data is considered reliable if cronbach alpha> 0.6. then, from the data obtained, namely the three variables, all of which have a cronbach alpha result greater than 0.6. normality test table 1. normality test the normality test is used to determine whether a data follows a normal or abnormal distribution using the kolmogrov simonov method designed by spss. with the provisions if asymp. sig. (2-tailed) > alpha 0.05 then the variable follows a normal distribution. vari able interpretation calcula tion the effect x2 direct effect to y (0,447)2 0,20 20% indirect effect to y through x1 0,447 x 0,807 x 0,305 0,11 11% total 0,31 31% discount flash sale impulsive buying jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 1 8 then from the data obtained, it shows that all variables follow the distribution data distribution because the three variables have asymp values. sig. (2-tailed) > alpha 0.05. path analysis this path analysis is used to determine the direct and indirect effect of the independent variables on the dependent variable. the following is an explanation of the path analysis of the independent variables (flash sale and discount) on the dependent variable (impulsive buying), namely : table 2. the result of path analysis table 3. the interpretation of path analysis 1 table 4. the interpretation of path analysis 2 table 4. the interpretation of path analysis 3 variable path coefficient direct effect indirect effect sub total effect x1 x2 % x1 0,305 0,093 0,1 1 20,3 % x2 0,447 0,200 0,1 1 31,0 % total effect (simultaneous) 51,3 % discussion comprehend flash sale with discount h1 : there is correlation of flash sale with discount based on table 1, it can be seen that the display of flash sale (x1) at a discount (x2) produces a value of 0.807 or 80.7%. after this value is interpreted into the correlation coefficient criteria table, 0.807 is located between (0.800 1,000) which means it has a very strong correlation with the level of relationship or it can be said that flash sales (x1) and discounted prices (x2) have a very strong correlation. strong that is equal to 80,7%. there are actually discounted flash sales offers, it's just that the difference is the time period. the duration of flash sales is generally short whereas discounted prices may have a longer discount period. so naturally, if these two variables have a very strong correlation. comprehend effect of flash sale towards impulsive buying h2 : flash sale affects positively to impulsive buying based on table 2, the direct effect of flash sale on impulsive buying is 9.3% and the indirect effect is 11%, so that the partial effect of flash sale on impulsive purchases is as much as flash sale on impulsive purchases by 20.3%, meaning that it is less influential or the effect is less strong. this can be supported or strengthened by research conducted by yogiswara (2018) in the thesis that shopee id customers state that flash sales and bonus packs have a significant effect partially on impulsive purchases. this implies that flash sales have an effect on impulsive buying. there is also zakiyyah (2018) in a journal which states that impulsive purchases occur during flash sale offers. it is proven that flash sales have a positive effect on impulsive purchases. in explana tion pearson correlation standaized coefficent s beta r2 correlation x1 with x2 0,807 the effect x1 to y 0,305 the effect x2 to y 0,447 coefficient determinat ion y 0,513 variable interpretation calcula -tion the effect x1 direct effect to y (0,305)2 0,093 9,3 % indirect effect to y through x2 0,305 x 0,807 x 0,447 0,11 11% total 0,203 20,3% vari able interpretation calcula tion the effect x2 direct effect to y (0,447)2 0,20 20% indirect effect to y through x1 0,447 x 0,807 x 0,305 0,11 11% total 0,31 31% jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 1 8 addition, syastra and wangdra (2018) state in their journals that the factors that cause impulsive buying are (1) promotions/ discounts; (2) flash sale; (3) popular items this week; (4) hot product list; (5) payment installment facility. this means that flash sales have an effect on impulsive buying. comprehend effect of discount towards impulsive buying h2 : discount affects positively to impulsive buying based on table 3, the direct effect of price discounts on impulsive purchases by 20% and the indirect effect of 11%, so that the partial effect of price cuts on impulsive purchases by 31%, meaning less influence or less powerful effect. this can be supported or strengthened by research conducted by nasib (2017) in the journal concluding that price discounts have a positive and significant effect on impulsive buying decisions at pt. toyota auto 2000 sisingamangraja medan branch that he researched. there is also putri (2014) in the journal by sari and faisal (2018) with the title "the effect of price discounts, bonus packs, and in-store display on impulsive buying decisions at giant extra banjar, states that there is a significant influence between price discounts and impulsive buying. in addition, baskara (2015) in his journal entitled "the effect of discounts on impulsive buying (study on visitors to the matahari department store johar plaza jember)" concluded that price discounts have a positive or significant effect on unplanned purchases (impulsive buying). comprehed effect of flash sale and price discount towards impulsive buying h4 : flash sale and price discount affect simultaneously to impulsive buying based on table 4, the total influence or effect of simultaneous flash sales and discounts on impulsive purchases is 51.3%, meaning that simultaneously flash sales and price discounts on impulsive purchases are at a fairly strong level, while the remaining 48.7% is influenced by other factors. which is not researched. figure 2. the result of path analysis conclusions in this study, it shows that the correlation between flash sales and discounted prices has a very strong level of relationship that is equal to 80.7%. there are actually discounted flash sales offers, it's just that the difference is the time period. the duration of flash sales is generally short whereas discounted prices may have a longer discount period. so naturally, if these two variables have a very strong correlation. the partial effect of flash sale on impulsive purchases produces a value of 20.3%. there is also a partial effect of a discount on impulsive purchases which results in a value of 31%. discounts have a higher partial effect because the time period provided when the promo lasts is longer than the flash sale. the simultaneous effect of flash sale and price discount on impulsive purchases results in a value of 51.3%. then the rest is the influence of variables that are not used in this study has a value of 48.7%, such as for example the quality of service, marketing costs, personal selling, and others. suggestions for sellers who open online stalls on the shopee platform should provide attractive promos with new strategies or innovations in flash sales such as a bonus if shopee users shop for a product offered. sellers who open online stalls on the shopee platform should provide or provide sales promotions in the form of large discounts or attract the attention of shopee users, namely for a longer period of time than the time offered for flash sale products, for being able to increase impulsive buying. suggestions for further researchers based on the experience that the researcher has gone through in conducting this research, the jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 1 8 suggestions given to further researchers are that further researchers can make this research and be carried out in a different or more developed year in the form of variables or indicators. future studies are expected to be able to examine other research objects, namely online and offline stores. references baskara, i. b. (2015). pengaruh potongan harga (discount) terhadap pembelian tidak terencana (impulsive buying) (studi pada pengunjung matahari departement store johar plaza jember). departement of management feb umm. fernanda, m. (2019, september 5). pengaruh promosi pengaruh, daya tarik iklan internet, dan kualitas website terhadap pembelian impulsif. program studi magister manajemen, universitas tarumanagara. pages. 07-12. ginting, s. s. (2019). pengaruh diskon harga terhadap keputusan pembelian impulsif secara online (studi pada pengguna aplikasi lazada di kecamatan pancur batu). program studi ilmu administrasi bisnis, fakultas ilmu sosial dan ilmu politik, universitas sumatera utara. juliastuti, a. d., n. h., & faizah. (2016). kepemilikan kartu pembayaran elektronik tidak memoderasi gaya hidup hedonis terhadap perilaku impulse buying. nasib. (2017, december 2). pengaruh price discount dan bonus pack terhadap keputusan impulsive buying pada pt.toyota auto 2000 cabang sisingamangraja medan. journal of business studies. issn : 2443-3837. ompi, a. p., j. l., & wenas, r. s. (2018). analisis faktor-faktor yang menyebabkan terjadinya pembelian impulsif produk fashion di outlet cardinal mega mall manado. fakultas ekonomi dan bisnis jurusan manajemen, universitas sam ratulangi manado. putra, i. m., & santika, i. w. (2018). pengaruh gender, daya tarik, kepemilikan kartu kredit terhadap perilaku pembelian impulsif online produk lifestyle. fakultas ekonomi dan bisnis, universitas udayana, bali, indonesia. reza, f. (2016, june 1). strategi promosi penjualan online lazada.co.id. sari, d. r., & faisal, i. (2018, march 1). pengaruh price discount, bonus pack, dan in-store display terhadap keputusan impulsive buying pada giant ekstra banjar. fakultas ekonomi dan bisnis, universitas lambung mangkurat, banjarmasin. issn : 2597-467x. pages. 51-60. solenski, v. (2017, october 2). influence of price discount and sales promotion on impulsive buying azwa perfume pekanbaru. fakultas ilmu sosial dan ilmu politik, universitas riau. sujata, j., d. m., p. a., & t. v. (2017). impact of flash sales on consumers & ecommerce industry in india. symbiosis institute of telecom management, constituent of symbiosis international university, india. doi : 10.5176122512012-qqe17.9. syastra, m. t., & wangdra, y. (2018, october 12). analisis online impulsive buying dengan menggunakan framework sor. universitas putera batam. doi : 10.21456/vol8iss2pp133-140. wahyudi, s. (2017, october 2). pengaruh price discount terhadap impulsive buying. departement of administration business studies program. faculty of social and political science. issn : 2502-1419. yogiswara, f. d. (2018). pengaruh flash sale, bonus pack dan coupons terhadap impluse buying pada pelanggan shopee id. zakiyyah, a. m. (2018, june 1). pengaruh flash sale terhadap pembelian impulsif online pada toko online "pulchra gallery". jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 1 8 anggiani, sarfilianty. (2018). kewirausahaan pola pikir pengetahuan keterampilan. jakarta: prenamedia group. ferdinand, a. (2014). metode penelitian manajemen pedoman penelitian untuk penulisan skripsi tesis dan disertasi ilmu manajemen edisi 5. diponegoro: badan penerbit universitas diponegoro. guolla, m. a., g. e., & m. a. (2017). advertising & promotion an integrated marketing communications perspective. canada: mc graw hill education. kotler, p., & keller, k. l. (2012). marketing management 14. new jersey: pearson. sugiyono. (2017). statistika untuk penelitian. bandung : cv. alfabeta correspondence to : helenaduamea@gmail.com received: nov, 13, 2020 revised: dec, 2, 2020 accepted: dec, 17, 2020 jurnal akuntansi, manajemen dan ekonomi vol.21, no. 4, pp. 37 41 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction nagekeo regency is one of the nine regencies in flores island, east nusa tenggara province that has quite a good potential for agriculture where the yield of these commodities increases the income per capita but most of the land has not been used optimally. those commodities are cocoa, cloves, coffee, candlenut, and others. mauponggo subdistrict, especially in woewolo village, has fertile land that suits clove plantation, but the whole process from plantation to harvesting process is done in traditional ways. the cloves production for the year 2019 is declining due to reduced capital, traditional labor, and very small land area, besides, there are also other types of plants that are planted together on a field, causing cloves production to decrease. three hamlets are the main communities of cloves farmers: puunage, natasule, and lendo. based on the survey, almost each cloves field is owned by the farmers themselves, however, they plant the cloves with other plants closely together, therefore the way they plant may be one of the factors causing lower cloves harvesting. the productivity of cloves in mauponggo district, woewolo village in 2019-2020 is nine tons or 9000 kilograms and valued at rp 50,000 per kilo. therefore to plant cloves is very promising for the farmers in woewolo. the cloves plantation in woewolo village, mauponggo district is an effort to obtain added value for economic life. based on the results of listiani's research, capital is an important element for a business, because without capital the operational activities of a plantation business cannot be carried out, that is, there are often farmers who lack the capital to buy seeds, and lack of capital causes farmers not to use fertilizers and pesticides as it should be (listiani et al., 2019). factors affecting cloves production in woewolo village, nagekeo district, east nusa tenggara province, indonesia helena wea bay1, maria helena carolinda dua mea2 1,2department of management, faculty of economics, flores university, indonesia abstract to plant cloves is very promising for the farmers in woewolo. the cloves plantation in woewolo village, mauponggo district is an effort to obtain added value for economic life. the purpose of this study was to determine whether capital, labor, and land area affect the production income of clove farmers in woewolo village, nagekeo regency. this research is a type of quantitative research. the population determined in this study were all clove farmers in woewolo village with 75 samples. primary data collection was carried out by distributing questionnaires to respondents. based on the multiple linear regression test the variables capital (x1), labor (x2), and land area (x3) have a positive regression coefficient direction on clove production in woewolo village, mauponggo district. the statistical test results prove that capital affects clove production as indicated by the acquisition of t-test results, namely the t-count value of 2.452 with a significance of 0.017 at the 5% significance level where 0.017 <0.05. the results of statistical tests prove that labor affects clove production as indicated by the acquisition of t-test results, namely the t-count value of 2.489 with a significance of 0.015 at the 5% significance level where 0.015 <0.05. the results of statistical tests prove that land area affects clove production as indicated by the acquisition of t-test results, namely the t-count value of 5.347 with a significance of 0.000 at the 5% significance level where 0.000 <0.05. the percentage of the contribution of the influence of the independent variables including the capital, labor, and land area on the clove production variable is 35.8%. keywords cloves production, capital, labor, land area, woewolo, flores mailto:helenaduamea@gmail.com jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 37 41 the results of akbar's research found that workers who work as clove farmers come from members of the clove farmer household, although some come from outside the clove farmer household members. those who come from outside the clove farmer's household members earn income by working on other people's land because they do not have clove land. workers who work as clove farmers do not need special education, with the capital "being able to know the types of cloves that are ready to be harvested" they can and can work as clove farmers (akbar et al., 2018). the land area has a positive effect on income. clove farming income will increase is followed by the addition of land area in clove farming. this means that the area of land needs intensive attention because the addition of land areas can increase farmers' income. land can be said to be economically feasible if the results obtained exceed the total variable capital and decrease the value of fixed capital (sukayat & rumna, 2018). based on the phenomenon and facts above, the purpose of this study was to determine whether capital, labor, and land area affect the production income of clove farmers in woewolo village, nagekeo regency. capital according to (tnius, 2018) capital is a revolving fund, which was initially issued to finance daily operational activities so that the production process can run. the results of the production are then sold and from the sale, the company will get a profit which is expected to always increase. part of the profit that has been generated will return as working capital to the company. this working capital turnover will continue to occur as long as the company is still running so that the company is also required to compete in managing its working capital. according to (listiani et al., 2019) capital can be divided into.two criteria. capital to improve farming consisting of depreciation costs of building, cashable wealth (seeds, fertilizers, etc.) wealth consisting of agricultural tools (machine tools for maintenance of the farm) and costs used for maintenance (caring for or replacing agricultural tools. capital which consists of agricultural machinery and equipment including depreciation, maintenance, or replacement when there are damaged costs, food, and others. labor according to dwiyatmo (akbar et al., 2018), labor in farming is one of the determining elements. the agricultural labor force generally consists of several farm laborers, either family or outside workers who all play a role in agricultural business activities. the use of labor in agriculture is used to produce maximum agricultural production, labor must carry out an intensive work process in its working time. according to (kumaat et al., 2016), clove farming labor is usually used for maintenance, harvesting or picking, transportation, and drying activities. clove production results from the garden to the farmer's house using traditional cow-wheeled transportation or motorbike taxi, depending on the road access that must be taken. land area according to mubyarto (harini et al., 2019), land area is one of the production factors, namely the place where agricultural products are produced which contribute to farming, where the amount of production from farming, one of which is influenced by the size of the land used. according to (listiani et al., 2019), land area is a very important factor in the production of cloves, therefore the land is a very valuable asset for farmers. this means that land area has a positive effect on income. the income of clove farming will increase if it is followed by the addition of land area in clove farming. this means that the area of land needs intensive attention because the addition of land areas can increase farmers' income. land can be said to be economically feasible if the yield obtained exceeds the total variable capital and decreases the value of fixed capital. based on the explanation of the concepts above, the hypothesizes are as follows: capital has a positive effect on the production income of clove farmers. labor has a positive effect on the production income of clove farmers. land area has a positive effect on the production income of clove farmers. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 37 41 figure 1. research model methods this research is a type of quantitative research, where the research data is in the form of quantitative data obtained from the respondents' answers scores. the research location is in woewolo village, mauponggo district, nagekeo regency. sampling method the population determined in this study were all clove farmers in woewolo village, mauponggo district, nagekeo regency that distributed in three hamlets, namely: pu'unage hamlet as many as 100 farmers, natasule hamlet as many as 150 farmers, and lendo as many as 50 farmers. the total population is 300 farmers. to determine the number of samples, the slovin formula is used with an allowance percentage used is 10% to obtain a total sample of 75 samples. data collection method primary data collection was carried out by distributing questionnaires to respondents, and secondary data collection was carried out by informal interviews with clove farmers and observations of clove farming activities. data analysis method data analysis was performed using spss version 27 software. first of all, analysis of validity and reliability was carried out, then performed multiple regression analysis, hypothesis testing, and f test. results and discussion respondent description 56% of respondents who were sampled in this study were male and most of them were aged 41-45 years, as much as 29%. validity and reliability based on analysis, each variable is declared valid because the r count of each variable is greater than the r table (rcount> 0.27272). thus the validity requirements of the measuring instrument can be met and can be used for further testing. the cronbach's alpha value of each variable is greater than 0.60. so, it can be concluded that the instrument is declared reliable or can be trusted as a variable measuring tool. multiple linear regression analysis based on analyis, the regression line equation is as follows: y = 1.288 + 0.205x1 + 0.203x2 + 0.411x3 based on the multiple linear regression test table and the equation it can be seen that the variables capital (x1), labor (x2), and land area (x3) have a positive regression coefficient direction on clove production in woewolo village, mauponggo district. hypothesis test each of the variables of capital, labor, and land area has a positive and significant effect on clove production in woewolo village. this is indicated by the t-test which has a significance value of x1 0.017, x2 0.015, x3 0.000 which is smaller than 0.005 which is the standard of significance used in this study. it can be explained that capital, labor, and land area have a positive and significant effect on clove production, which is also strengthened by the t count value of each independent variable which is greater than t table (t count> t table), and the t table value is 1.994. the effect of capital on clove production the statistical test results prove that capital affects clove production as indicated by the acquisition of t-test results, namely the t-count value of 2.452 with a significance of 0.017 at the 5% significance level where 0.017 <0.05. a sufficient amount of capital can push the level of production. this means that the more the amount of capital, the production level will also increase. research model h1 h2 h3 capital (x1) labor (x2) land area (x3) clove production (y) jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 37 41 the effect of labor on clove production the results of statistical tests prove that labor affects clove production as indicated by the acquisition of t-test results, namely the t count value of 2.489 with a significance of 0.015 at the 5% significance level where 0.015 <0.05. labor in farming is one of the determining elements. many laborers in clove farming are more familiar with the traditional farming technique that is handed for generations, and also they cannot afford to pay additional workers to help them. effect of land area on clove production the results of statistical tests prove that land area affects clove production as indicated by the acquisition of t-test results, namely the t-count value of 5.347 with a significance of 0.000 at the 5% significance level where 0.000 <0.05. land area is one of the factors of production, namely the place where agricultural products are produced which contribute to farming, where the amount of production from farming is influenced by the size of the land used. land area is a very important factor in the production of agricultural products as a means of planting crops for farmers in farming, therefore the land is an asset very valuable for the farmers. the size of the land and the intensification of clove plantation will help farmers to increase production. farmers need to focus on the most profitable commodity instead of others that have a low price. f statistical test the f statistical test shows whether all the independent variables included in the model have a joint influence on the dependent variable. the f-count value is obtained of 14.779 with a significance level of 0.000 <0.05. this explains that the independent variables, including capital (x1), labor (x2), and land area (x3) simultaneously or collectively have a positive and significant effect on the dependent variable, namely clove production (y). based on table 6 above, the adjusted r2 value is 0.358 (35.8%). this shows that the percentage of the contribution of the influence of the independent variables including the capital, labor, and land area on the clove production variable is 35.8%. while the rest is influenced by other variables that are not included in this research model. conclusion farmers' capital influences clove production in woewolo village, mauponggo district, nagekeo district. clove plantation workers influence clove production in woewolo village, mauponggo district, nagekeo regency. area of clove plantation land influences clove production in woewolo village, mauponggo district, nagekeo regency. references akbar, i., budiraharjo, k., & mukson, m. (2018). analisis faktor-faktor yang mempengaruhi produktivitas padi di kecamatan kesesi, kabupaten pekalongan. agrisocionomics: jurnal sosial ekonomi pertanian. https://doi.org/10.14710/agrisocionomic s.v1i2.1820 harini, r., ariani, r. d., supriyati, s., & satriagasa, m. c. (2019). analisis luas lahan pertanian terhadap produksi padi di kalimantan utara. jurnal kawistara. https://doi.org/10.22146/kawistara.3875 5 kumaat, g. k. n., katiandagho, t. m., & sondakh,m. l. (2016). kontribusi usahatani cengkeh terhadap pendapatan rumah tangga petani di desa raanan baru 2, kecamatan motoling barat. agri-sosioekonomi. https://doi.org/10.35791/agrsosek.11.3a .2015.10538 listiani, r., setiadi, a., & santoso, s. i. (2019). analisis pendapatan usahatani pada petani padi di kecamatan mlonggo kabupaten jepara. agrisocionomics: jurnal sosial ekonomi pertanian. https://doi.org/10.14710/agrisocionomic s.v3i1.4018 sukayat, h., & rumna, r. (2018). analisis pendapatan dan faktor-faktor sosial ekonomi yang mempengaruhi hasil produktivitas pengelola usahatani padi sawah kabupaten cianjur. jimfe (jurnal ilmiah manajemen fakultas ekonomi). https://doi.org/10.34203/jimfe.v3i2.645 jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 37 41 tnius, n. (2018). pengaruh modal kerja terhadap profitabilitas pada pt. hanjaya mandala sampoerna tbk. jurnal sekuritas (saham, ekonomi, keuangan dan investasi). https://doi.org/10.32493/skt.v1i4.1380 correspondence to: rizazizy706@gmail.com received: 22 march 2021 accepted: 27 march, 2021 published: 30 march, 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 1, pp. 37 41 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction in a company, employee competency improvement is something that is continuously conduct to develop employees' abilities. competence means that the characteristics that underlie berhaviour describe the motives, personal characteristics, self-concept, values, knowlegde, or skills bring by a person who is superior in the workplace (spencer and spencer, 1993). during the current pandemic, it is very difficult for employees to conduct training because of health protocols that require all activities to do from home and must maintain a distance. this limitation has triggered the emergence of virtual training or online training, even though doing work from home increasing work competence can still be done. competency improvement through virtual training is used as a solution for employees to develop their potential skills. the company has goals and objectives for the company to be able to obtain the maximum profit they want to achieve even though there are big challenges that must be faced, but with the challenges of the current pandemic the company is trying to continue to develop its human resources to achieve the company's targets. the definition of training as defined by pramudyo (2007: 16) is a learning process designed to change the performance of people in doing their jobs. what is meant in this case is that there are four things that must be considered, namely the training process, performance, training participants, and work. it must be understood that the training process refers to a change that must occur in the training participants. in the training process, poor performance is corrected in such a way as to get better. so that a set of tasks that have been waiting for can be done properly by workers who have attended the training. . since the pandemic the employess should carry out their work and doing form home. the problem came up when company can not conduct the training while the company need to increase their performance and the employees need to improve their abilities, update their knowledge, update their information. it should be done in the interest and to achieve company’s goal. the restrictions because of pandemic that makes vritual training become a solution for the company to still be able to conduct training virtual training on competency improvement bank mandiri employees in covid pandemic 19 riza azizy1 dedi rianto rahadi2 1management department, faculty of economic and business, president university, bekasi indonesia abstract training is a company strategy to improve employee performance competencies. however, in the current covid 19 pandemic, companies cannot conduct training directly because of the government's rules to cdo work and study activities from home. during the covid 19 pandemic, companies tried to develop employee performance skills, virtual training is one of the methods used to improve employee performance during the covid-19 pandemic. bank mandiri use virtual training solutions to provide training for employees to maintain employee performance so that the company's goals could be achieved even in difficult circumstances such as the current covid 19 pandemic. the study aims to determine whether virtual training has an effect on improving the performance of bank mandiri employees by using qualitative research to describe facts about an incident at bank mandiri and a situation that occurred during the covid-19 pandemic. data was collected using a survey method by distributing questionnaires to employee respondents. the results showed that the virtual training conducted by bank mandiri had a very good effect on improving the performance of bank mandiri employees. keywords virtual training, employee performance, pandemic covid 19 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 37 41 from home for the employees, so that the employees still can make improvement for their performance. literature review definition of virtual based on virtual communication theory or so-called hyperpersonal communication (walter: 1996: 5), namely communication with internet media which according to society social is more attractive when compared to direct communication. with the presence of virtual communication that is developing in human life, it is possible to produce a new environment which he calls a "global village". this can be interpreted, "when the world shrinks the world, the involvement of people in the lives of others will be higher". virtual communication itself is part of the innovations that continue to be developed in new media (new media). the use of old media is felt to have many shortcomings so that humans innovate to make new media that can be used without any distance and time restrictions and at the same time can be an ineractive medium. through virtual communication, users can provide feedback on what they see. definition of training companies have an responsibility to make a training program for employees to improve their abilities and competencies needed in the workplace (jie and roger, 2006). training can be provided through different methods such as coaching and monitoring, peer cooperation and participation by subordinates. the objective of raining programs not only develop employees also help organizations to use their best skills of them and support their competitive advantage. sims (2006) emphasizes that training focuses on the current job while development focuses on employee preparation for the future of the company. definition of performance the results of a process that refer to and measured over a certain period of time based on the provisions or agreements that have been predetermined. according to muhammad zainur roziqin (2010:41) performance is as the whole process works from individuals whose results can be used the foundation to whether the individual's work is good or otherwise. from some of the above understandings can be concluded that the performance is the result of quality work and the quantity achieved by the employee as a whole which can be used as a the foundation to determine whether the individual work either or instead. indicators for measuring the performance of mangkunegara (2011:75): leather work, quantity work, productivity, initiatives, cooperation, responsibility. the covid pandemic 19 in wuhan, hubei province the outbreak of a new pneumonia has started then spread widely and rapidly more than 190 countries and territories until now. this virus outbreak named as coronavirus disease 2019 (covid-19) which is caused by severe acute respiratory syndrome coronavirus-2 (sarscov-19). commonly indications of covid-19 are fever, fatigue, and dry cough. some patients may feel aches and pains, nasal congestion, colds, sore throats or diarrhea. the indications are mild and occur gradually. there are people who are infected they do not feel any symptoms and do not feel unhealthy. most 80% people recover from this disease without the need for special treatment. 1 of every 6 people who exposed by covid19 are seriously ill and have difficulty breathing. older people, and those with health problems such a high blood pressure, heart disease, or diabetes likely more to get a serious fatal covid 19. people who feel unhealthy with fever, cough and breathing difficulties should get medical attention immediately. who explained that covid-19 virus spreads people through small droplets from the nose or mouth that spread when a person coughs or exhalesand and then fall into objects touched by other people and they touches the eyes, nose, or mouth so they become infected covid-19. the current studies said that covid-19 spread through free air has not been found. methods this research is a qualitative survey research. sources of data from this study are bank mandiri employees who have conducted virtual training during the pandemic. the characteristics of the companies that are the subject are banking companies that continue to carry out work activities with a shift and work from home system. data were collected in jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 37 41 august 2020 and processed in september 2020. the data collection technique used a questionnaire technique where the respondents were 38 bank mandiri employees from various regions throughout indonesia who participated in virtual training during the pandemic period held by bank mandiri. research instrument this study uses a questionnaire instrument for virtual training variables as a training and development medium and employee performance . determine the effect of virtual training on employee performance during the covid 19 period, it was carried out using a likert scale. likert scale is a scale used to measure perceptions, opinion, attitudes of a person or group of people about social incident. each instrument answer item on the likert scale has a gradient from very positive to very negative, for example, can be seen in the table below: table 1. likert scale sangat baik sekali sangat baik baik sedang buruk buru k sekal i sbs sb b s b bs 6 5 4 3 2 1 collecting data method obtaining research results requires data and information that can support research. the researcher carried out several data collection steps, namely (1) observation; (2)interview; (3)questionnaires; (4)and literature. population and research sample in this study the population were the employees of bank mandiri throughout indonesia who joined a virtual expertise training for industrial business fast moving consumer goods which was held on 5-6 august 2020 with a total of 38 employees. referring to 38 people who meet the requirements, the questionnaires distributed are 38 questionnaires. results the objective of this study is to assess whether implementation of virtual training in the covid-19 pandemic period can be implemented properly and to know the advantages and disadvantages of the implementation of virtual training to improve the performance of bank mandiri employees analysis of the application of virtual training in improving the competence of bank mandiri employees in order to make it easier to analyze, the respondent's responses to virtual training were presented by researchers in the form of a table as a whole as follows: table 2. analysis of respondents' responses regarding the implementation of virtual training in improving bank mandiri employee performance: table 2. average result of quesionnare achievement of training objectives 5.7 very good benefits of training for smooth assignments 5.7 very good additional knowledge acquired 5.7 very good training method 5.5 very good content of the material / module 5,6 very good duration of training 5,4 very good internet network 5.1 very good completeness of training 5.3 very good presentation aids facilities 5.3 very good committee service 5.7 very good information and services during training 5.7 very good time management 5.7 very good total 66.3 average 5,53 very good source: pt praba cipta daya so, seen from table 2 it is known that virtual training as a training medium in a pandemic period carried out by bank mandiri for its employees can be said to be very good, because the average of all statements is 5.7 in the interval 5.1 5, 9 = very good jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 37 41 discussion permatasari and hardiyan conclude that application of e-learning make a positive effect to employees performance (2018:07). the implementation of virtual training to increase competency resulting a very good work. the implementation of virtual training have a very good relationship to improve employees competency. virtual training program can conduct in effective and effisien ways so that the company’s goal can achieved even in a pandemic covid 19 situation. “it’s a good move to conduct a training program using virtual learning method in pandemic covid 19 situation” choiriyah and riyanto (2020:2). conclusion based on the results of research on the effect of virtual training on employee performance during the pandemic by distributing questionnaires to bank mandiri employees, the following conclusions can be drawn: 1. overall, the results obtained are that virtual training as a solution during the covid 19 pandemic has doing well. this can be proven from the results of the questionnaire data processing, which shows that the basis for consideration of the application of virtual training all produces very good criteria. evidenced by the results of the calculation of the analysis of respondents' statements regarding virtual training. respondents' answers to each statement submitted as a whole produce very good criteria, namely with an average of 5.5 and it means that the qualifications on which the application of virtual training is very good in accordance with its value which is in the interval 5.1-5.9. 2. virtual training design can adapt in pandemic covid 19 situation where all the activity have to be done from home. it become a solution for the company to conduct a training and supporting the prevention of covid 19 at the same time. so that the company still can create a superior and competitive employee. references anwar prabu mangkunegara, (2011). manajemen sumber daya manusia perusahaan, remaja rosdakarya, bandung choiriyah, siti and riyanto, setyo, desain pelatihan pada masa pandemi covid-19 (studi kasus constructive learning pada penyampaian pembelajaran virtual learning) vol.2, no.8, universitas mercubuana:2020 daryanto. 2010. media pembelajaran peranannya sangat penting dalam mencapai tujuan pembelajaran. yogyakarta: gava media, pp.168. devito, joseph , a. 1997. human communication. new york: harper collinc colege publisher hasan, iqbal. 2002. metodelogi penelitian dan aplikasinya. jakarta: ghallia indonesia. who(2020) q&a on coronaviruses (covid-19). coronavirus disease 2019 permata sari, indah and hardiyan, pengaruh elearning sebagai media pelatihan dan pengembangan terhadap kinerja karywan bca kcu tangerang vol.07, no.01, sisfokom:2018 mangkuprawira, safri. 2007. manajemen sumber daya manusia. bogor: cetakan pertama, ghalia indonesia miles, matthew & huberman, a. michael. 1992. analisis data kualitatif: buku sumber tantang metodemetode baru. jakarta:universitas indonesia press, pp.153. muhamad zainur roziqin, (2010). kepuasan kerja, malang: averroes press noe, raymond a. 2010. employe training and development fifth edition. new york: mcgraw hill, pp.55 sinambela, poltak, lijan. 2012. kinerja pegawai. yogyakarta: geraha ilmu, pp.6. stanley j. baran, pengantar komunikasi massa melek media dan budaya (jakarta: erlangga, 2008), hlm.386 sulaefi, pengaruh pelatihan dan pengembangan terhadap displin kerja dan kinerja karyawan vol.5, no, 1, universitas muhammadiah yogyakarta: 2017 jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 1, 2021, pp. 37 41 list of tables table 2. average result of quesionnare achievement of training objectives 5.7 very good benefits of training for smooth assignments 5.7 very good additional knowledge acquired 5.7 very good training method 5.5 very good content of the material / module 5,6 very good duration of training 5,4 very good internet network 5.1 very good completeness of training 5.3 very good presentation aids facilities 5.3 very good committee service 5.7 very good information and services during training 5.7 very good time management 5.7 very good total 66.3 average 5,53 very good correspondence to : purnamarina71@gmail.com received: july, 20, 2020 revised: sep, 2, 2020 accepted: sep, 10, 2020 jurnal akuntansi, manajemen dan ekonomi vol.22, no. 3, pp. 21 29 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction dynamic capabilities enable companies to adapt to a rapidly changing and risky environment by responding swiftly and nimbly. this is because dynamic capabilities create the ability to innovate and adapt to changing environments (teece & leih, 2016). considering the rapid development in the automotive sector, companies must have good dynamic capabilities, and this must be supported by the company's resources, human resources and other resources owned by the company. it is difficult for companies to be able to survive in situations of intense competition in the traditional way. many physical assets, the amount of investment can no longer guarantee the success of the company. where the company's ability to manage intangible assets is far more important than just managing the physical assets they have. founded in 1956, jinan general auto works plant, the predecessor of china national heavy duty truck group co., ltd. (sinotruk), is the cradle of china’s heavyduty truck industry. the works manufactured china’s first heavy-duty truck – huanghe jn150 8t truck in 1960, and introduced a heavy-duty truck project from steyr in 1983 as china’s first enterprise that introduced heavy truck manufacturing technologies from abroad in an all-round manner. sinotruk was established following the reform and restructuring in 2001, and has become a domestic and overseas famous heavy-duty truck r & d and manufacturing conglomerate after a dozen years of development. we have initially built an international platform through the red-chip listing in hong kong in 2007; in 2009, we forged a strategic partnership with man which holding a 25%+1 stake in sinotruk (hong kong) limited, and introduced d08, d20 and d26 engine technologies, medium & heavy-duty truck axle technologies and corresponding vehicle technologies, laying a solid foundation for our long-term development. to date, we have become china’s largest heavy truck manufacturing base that has made a remarkable contribution to the development of china’s heavy-duty truck industry and economic construction. the dynamic capability approach seeks to analyze the sources of wealth creation and capture by companies. the dynamic approach to capability is very relevant in the world of schumpeterian, where company competition is based on innovation, price competition or performance competition, increasing profits, and creative destruction of existing competencies. in principle, every organization must carry out knowledge management consciously or not. the problem will arise when knowledge management is managed unplanned, organized and fully integrated with general analysis of the effect of dynamic capabilty, knowledge management on employee performance rina purnama1, setyo riyanto2 1,2mercu buana university, indonesia abstract this study aims to analyze the effect of dynamic capability on knowledge management, analyze the effect of dynamic capability on employee performance, and to analyze the effect of knowledge management on employee performance in sinotruk companies. the data analysis technique used is the structural equational modeling (sem) method, the method of collecting data using a questionnaire to employee sinotruk. sampling technique using purposive sampling method with a sample size of 120 respondents. based on the results of the study it can be concluded that dynamic capability has on positive effect on knowledge management, dynamic capability has a positive effect on employee performance, and knowledge management also has a positive effect on employee performance. keywords dynamic capabilty, knowledge management, employee performance mailto:purnamarina71@gmail.com jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 21 29 business strategies (such as hr, it, rm, tqm, sm, production, etc.) then ineffectiveness and inefficiency will arise in all lines. in this condition, it is faced with high global competition, while corporations that do not really care about knowledge management will tend to be limped and left behind in the competition. knowledge management is not something better, but to know how to do things better. one of the objectives of knowledge management is to increase the intagible asset of the company. knowledge management is a series of activities used by organizations/companies to identify, create, explain and distribute knowledge for reuse, knowing and learning within the organization. this activity is usually associated with organizational objectives and is intended to achieve a certain result. knowledge management which involves 3 main factors namely people, process and technology. considering sinotruk is a large company that already has branches in asia pacific, africa, and america, so the language used in its business is english and mandarin, of course, the knowledge of everyone who works there must at least be able to master one of the two languages. ownership of knowledge or skills of people who are in the company is very important in the effort to achieve business goals. because employee performance is one of the most important factors in achieving company goals. good employee performance can be seen from the quality, quantity and time constraints if the employee's performance is in accordance with the standards set, it will make it easier for the company to achieve the company's goals. excellence work also depends on the creation of work culture that has superior learning characteristics, the culture of learning possessed by employees will make employees feel free to have initiatives in working and providing superior work results. the culture of learning can be monitored in terms of knowledge sharing activities that are supported by the knowledge and resources of knowledge as a learning material for employees. sinotruk is well aware of the importance of a consistent and continuous learning process, knowledge management as a management system acts as a learning tool for employees by providing sources of knowledge, knowledge transfer activities, and use of knowledge based on sinotruk's intellectuals. based on the description above, the purpose of this study is to determine the effect of dynamic capability on knowledge management, analyze the effect of dynamic capability on employee performance, and to analyze the effect of knowledge management on employee performance in sinotruk companies. then the study entitled the analysis of the influence of dynamic capabilities, knowledge management on employee performance. dynamic capability strategic management discussion, there are two major currents to understand the competitiveness of companies. first, the approach (porter, 1979) which focuses on analyzing the company's external environment where the industrial structure is a determining factor in the company's competitiveness. second, the approach and wernerfelt (1984) and barney (1991) which focus on the company's internal environment. the second approach is known as resourcebased view (rbv). in his paper entitled "a resource-based view of the firm", wernerfelt put forward the term rbv which is the basis for understanding the theory of resourcebased companies. the rbv considers that an important factor to excel from competitors is resources and the company which consists of tangible and intangible resources that can be managed by the company for survival (barney, 1991). intangible assets are competence, technology, knowledge, skills, experience, and capabilities. as barney (1991) points out, not all resources have the potential to be unique and are not easily imitated and profitable for the company. so, only the knowledge that barney mentioned has the potential to become this unique resource. companies are always trying to expand, modify, reconfigure, or even really change what they normally do to create value in dynamic environmental changes (katkalo et al., 2010). in this case, dynamic capabilities play an important role as a company's ability to adjust its structural organization to create value in a rapidly changing environment (teece et al, 1994). the concept of dynamic capabilities according to teece et al. (1994) are part of competencies that enable companies to create new products or processes and respond to changing market conditions. then it was revised to the company's ability to integrate, build, and reconfigure its internal and external jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 21 29 competencies to cope with rapid environmental changes (teece, pisano, and shuen, 2000). when a company has valuable resources, rare, inimitable, and nonsubstitutable, also known as vrin, then the company can gain a competitive advantage by implementing a new value creation strategy that is not easily duplicated by competing companies. finally, when these resources and related system activities have complemented one another, the potential for creating competitive advantage can be increased (eisenhardt & martin, 2000). the development of dynamic capabilities is very dependent on learning, while organizational knowledge sticks to capabilities that accumulate over the long term. the level of learning at a particular point in time depends on how much knowledge has been accumulated (cohen & levinthal,1990). experimental, learning-bydoing, learning-by-using and other forms of experimental learning based on trial-anderror tend to be local. knowledge from the local learning process is only in the company concerned (levinthal & march, 2008). consequently, because learning is unique in an organizational context, the capability development process is also unique. if the accumulation process includes characteristics such as time-compression diseconomies, ambiguity of causal relationships, or mutual interconnection between assets (assets interconnectedness), then it is likely that the resulting outcome will also be idiosyncratic. because dynamic capabilities are inherent in the organizational context, the path of capability development may depend on the availability of resources and capabilities that are interconnected within the organizational system (pan et al. 2007). dynamic capability indicators including those derived from the teece and barreto definitions above include several aspects. the company systematically seeks new concepts / modes of production / manufacturing through observation outside the company.the company systematically conducts discussion forums to identify new opportunities.the company actively works with new partners to develop employee competencies.employee relations are an important source of information for developing company virtual capital. for each new business opportunity, company management has conducted a good employee transfer process. the company already has a database system that maps employee competency levels fairly accurately. knowledge management the term knowledge management was first introduced in 1986, at the european management conference (american productivity and quality center, 1996). there is no one definition that is generally recognized so that the understanding of knowledge management is diverse, ambiguous, and abstract (maier and hädrich, 2006). however, the concept of knowledge management then developed quickly and attracted the attention of many parties. some general patterns about the meaning of knowledge management (tjakraatmadja and kristinawati, 2017). knowledge management is an individual, team, and ultimately disciplined discipline. knowledge management is a management tool to produce knowledge-based innovation correctly and quickly, through a process of integration between people (knowledge workers), a process that includes policies, regulations, work procedure systems, and work procedures and technology that are synergistically able to facilitate knowledge management process. knowledge management is a management tool to facilitate the process of sharing knowledge (as the essence of the knowledge management process). knowledge management is a management tool to enrich or replicate the use of the best knowledge/experience that an organization has, to expand its use in every related business unit, and certainly to achieve organizational goals in a more efficient and effective way. essential knowledge management about how an organization manages knowledge workers, identifies the knowledge they have, documents and disseminates knowledge to other work units. knowledge management facilitates creative, imaginative and/or inventive processes through the process of transforming tasit knowledge into explicit knowledge or rejuvenating knowledge to carry out new knowledge-based innovations. knowledge management has a simple cycle. the first stage, capturing, can include one or more of the following: data entry, scanning, interviewing, and brainstorming. the organizing stage can include one or several of the following: cataloging, indexing, filtering, linking, and coding. the refining jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 21 29 stage can include one or several of the following: contextualization, collaboration, compression, and making projections. the transfer phase can include one or several of the following: distribution and warnings. the cognitive pyramid of knowledge management consists of four elements. data is the most basic, discrete, and unprocessed element, so it has no meaning. example: numbers, words, codes, tables, and databases. information is an interconnected element and is the result of processing of data, so it has a meaning. example: sentences, paragraphs, equations, concepts, ideas, questions, and simple stories. knowledge is an organized collection of information about a field that is already understood. examples: theory, axioms, conceptual frameworks, complicated stories and facts. wisdom is the result of applying knowledge that can be the basis for decision making. example: books, paradigms, systems, philosophies, poetry, belief systems, traditions, principles, and truths. in general, knowledge can be classified into 2 categories, namely tacit (know-how) and explicit (know-what). tacit knowledge is knowledge that is still in the form of thoughts in the human head. this knowledge is rather difficult to communicate, understand and translate into other forms that are more structured because it is based on personal experience or intuition and is context dependent. explicit knowledge is knowledge that has been represented in certain media. this knowledge is easy to communicate, understand, and translate into other forms that are more structured, so that it can be managed by the knowledge management system (kms). the need in organizations to always adapt to a dynamic environment requires the knowledge creation in the organization. the process of knowledge creation as described by li and gao (2003) requires continuous innovation in organizations to achieve competitive advantage. nonaka popularized the concept of knowledge creation in the late 90s (nonaka and takeuchi, 1995). knowledge creation is the process of improving existing knowledge through the process of discovering new knowledge, or through a process of reflection on experiences that have been experienced. usually this process occurs if the employee has an open attitude when he detects work errors and tries to make improvements. nonaka and takeuchi (1995) explained that there are four basic patterns of knowledge creation, or conversion between individual knowledge and organizational knowledge, which might occur within an organization, which is well known for the seci concept, short for socialization, externalization, combination and internalization. employee perfermance according to robbins (2015), employee performance is a function of the interaction between ability and motivation, if it is not adequate, performance will be negatively affected. besides motivation, intelligence and skills must also be considered. performance is influenced by variables associated with the work includes a role-conflict stress and work/non-work (riyanto, 2002; jayaweera, 2015). a person’s performance is a combination of capabilities, businesses and opportunities that can be judged from their work (handayani, 2015). performance of individuals affected by the effort, ability and the environmental situation (riyanto, 2016). four factors that affect performance. effectiveness and efficiency if a certain goal can finally be achieved, we may say that the activity is effective but if the consequences that are not sought the activity assesses the importance of the results achieved so as to result in satisfaction even though it is called inefficient. conversely, if the results sought are not important or trivial then the activity is efficient (prawirosentono, 1999: 27). authority according to authority is the nature of a communication or order in a formal organization owned by a member of the organization to other members to carry out a work activity in accordance with its contribution (prawirosentono, 1999: 27). the order says what can and isn't in the organization. discipline discipline is obeying the applicable laws and regulations (prawirosentono, 1999: 27). thus, employee discipline is the activity of the employee concerned in respecting work agreements with the organization where he works. initiative initiative that is related to the power of thought and creativity in forming ideas to plan something related to organizational goals. according to mangkunegara (2002) the characteristics of people who have high performance are : have high personal jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 21 29 responsibility; dare to take and bear the risks faced; have realistic goals; have a comprehensive work plan and strive to realize its objectives; utilizing concrete feedback in all work activities he does; looking for opportunities to realize plans that have been programmed. there are six indicators to measure individual employee performance according to robbins (2006). quality. work quality is measured by employee perceptions of the quality of work produced and the perfection of the task of the skills and abilities of employees. quantity. represents the amount generated expressed in terms such as the number of units, the number of activity cycles completed. timeliness. is the level of activity completed at the beginning of the stated time, viewed from the point of coordination with the outputs and maximizing the time available for other activities. effectiveness. represents the level of use of organizational resources (energy, money, technology, raw materials) maximized with the intention of increasing the yield of each unit in the use of resources. independence. is the level of an employee who will be able to carry out their work functions work commitment. is a level where employees have a commitment to work with the agency and employee responsibilities to the office. methods this type of research is a case study research using a survey method with the location of the research conducted at the sinotruk asia branch company. the subjects of this study were sinotruk employees. the sampling method in this study is purposive sampling, which is sampling based on certain criteria. the population in this study were sinotruk employees. samples based on hair, et al. (in ferdinand, 2005) who advocate that by using the structural equational model (sem) the minimum sample size is 100 and the maximum is 200, and then using a comparison with five observations for each estimated parameter. the number of samples to be used in this study is 120 samples. the hypothesis in this study are: h1: dynamic capability has a positive effect on knowledge management. h2: dynamic capability has a positive effect on employee performance. h3: knowledge management a positive effect on employee performance. hypothesis testing criteria: the hypothesis is accepted if c.r (critical ratio) = t-table. the hypothesis is rejected if the c.r (critical ratio) < t-table. result and discussion total of respondents in this study were 120 respondents who were employees of sinotruck. from the results of the questionnaire collection it is known the characteristics of respondents based on gender, age and education, as can be seen in the following table. table 1. characteristic of respondents based on the gender of sinotruk employees gender total percentage (%) female male 37 83 30,83 69,17 total 120 100,00 source: primary data from table 1 above it can be seen that of the 120 respondents, the majority were male respondents namely 67 respondents and 37 respondents female. the majority of respondents who are male can also prove that because the company is engaged in automotive and heavy equipment. table 2. characteristic of respondents based on the age of sinotruk employees age (year) total percentage (%) ≤ 20 20 – 30 30 – 40 > 40 4 33 51 32 3,33 27,50 42,50 26,67 total 120 100,00 source: primary data from table 2 above it can be seen that of the 120 respondents, the majority were at the age of 30-40 years, namely as many as 51 respondents. this shows that respondents at the age of 30-40 who, on average, had sufficient prior work experience. considering that sinotruk is a large company and there are automotive and heavy equipment sales, here is the need for people who are experienced in their fields. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 21 29 table 3. characteristic of respondents based on sinotruk employees education education total percentage (%) high school/diploma bachelor graduate 4 92 24 14,05 44,33 41,62 total 120 100,00 source: primary data from table 3 above it can be seen that from 120 respondents, there were 92 respondents with the last education being bachelor. this is because sinotruk attaches great importance to the quality criteria of the education of its employees, in addition to that sinotruk is a multinational company so it requires quite good foreign language skills especially english and mandarin as everyday language at sinotruk. from that level of education they not only have abilities in their fields but also have quite good foreign language skills. based on the results of data analysis using the structural equational modeling (sem) data analysis method, the evaluation of data normality is performed using the criterion value of the normality skewness ratio of ± 2.58 at the 0.01 level. data can be concluded having a normal distribution if the value of critical ratio skewness is below the absolute value of 2.58 (suliyanto, 2011). based on the data from table 4 it can be seen that the critical value of the skewness ratio of all indicators shows the normal distribution because each critical value is less than the absolute value of 2.58 at a significant level of 0.01. therefore, it can be concluded that the observed variable data are proven in a normal distribution. evaluation of outliers outliers outliers based on the data obtained z-score (on each indicator smaller than ± 3, so that research data states that are free from univariate outliers. while the analysis results on the multivariate outliers evaluation obtained the highest value of mahalanobis distance of 47,372. the farthest mahalanobis distance divided by the indicator 47,372:19 = 2,493 is smaller than 2.50. this shows that there are no multivariate outliers (hair et al., 2010). after conducting confirmatory analysis and structural equation modeling, the model testing is then performed by looking at the value of the goodness-of-fit index. table 5. goodness of fit test goodness of fit index cut of value result category x2 -chi square2 155,464 good fit probability ≥ 0,05 0,342 good fit cmin/df ≤ 2,00 1,043 good fit gfi ≥ 0,90 0,882 marginal fit agfi ≥ 0,90 0,849 marginal fit rmsea ≤ 0,08 0,019 good fit tli ≥ 0,95 0,992 good fit cfi ≥ 0,95 0,993 good fit source: primary data x2 chi-square statistic the greater the sample size, the statistics (x2) obtained tend to be even greater with the smaller p-count value. so for large sample sizes, statistics (x2) tend to reject the model. the model is accepted if the cut off value is p ≤ 0.05 or p ≥ 0.10 (hair et al., 2010). then it can be concluded that the model in this study goof fit. cmin/df the cmin/df value result in this study was 1,043. the model in this study is good fit because the value of cmin/df=1,043 ≤ 2,0. gfi goodness of fit index the gfi value result in this study was 0,882. the model in this study is marginal fit because the value of gfi=0,882≤ 0,90. agfi – adjusted goodness of fit index the agfi value result in this study was 0,849. the model in this study is marginal fit because the value of agfi = 0,849 ≤ 0,90. rmsea – the root mean square error of approximation the rmsea value result in this study was 0,019. the model in this study is good fit because the value of rmsea = 0,019 ≤ 0,080. tli – tucker lewis index the tli value result in this study was 0,992. the model in this study is good fit because the value of tli = 0,992 ≥ 0,95. cfi – comparative fit index the cli value result in this study was 0,993. the model in this study is good fit because the value of cfi = 0,993 ≥ 0,95. based on the results of sem analysis statistics in the suitability test of the goodness of fit test model in table 5, obtained 6 criteria included in the good fit category, and 2 criteria included in the marginal fit category. so overall this research model can be categorized as a very good model. on the results of testing the hypothesis as can be jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 21 29 seen in table 6, the test results can be explained as follows: h1: dynamic capability has a positive effect on knowledge management (dc→km). based on table 6 it is known that the critical ratio or c.r (5,613)> t table (1,288) and p (0,000) <0.05. so, the hypothesis that dynamic capability has a positive effect on knowledge management is accepted. this study is in accordance with previous research conducted by teguh sriwidadi (2014) which states that dynamic capability has a positive influence on knowledge management. dynamic capability in the sinotruck company itself is pretty good. the existing resources are all adjusted or updated according to the needs so that they can be a source of competitive advantage for the company. of course, a good company dynamic capability in sinotruk company is not immune from the knowledge management owned by the company, because to compete and be able to maintain its competitive advantage the company requires knowledge must also have good knowledge in it. zollo and winter (2002) propose a cycle of knowledge evolution that includes accumulation of experience, articulation of knowledge and codification of knowledge as a dynamic capability process. so, that dynamic capabilities will be generated by collective activities to learn and share knowledge to achieve company goals or increase performance. based on this, it can be concluded that dynamic capability must be based on an effective knowledge management process. h2: dynamic capability has a positive effect on employee performance (dc→ep). based on table 6 it is known that the critical ratio or c.r (4,051)> t table (1,288) and p (0,000) <0.05. so, the hypothesis that dynamic capability has a positive effect on employee performance is accepted. dynamic capabilities enable companies to adapt to a rapidly changing and risky environment by responding swiftly and nimbly. this is because dynamic capabilities create the ability to innovate and adapt to changing environments (teece & leih, 2016). as barney (1991) points out, not all resources have the potential to be unique and are not easily imitated and profitable for the company. so only the knowledge that barney mentioned has the potential to become this unique resource. dynamic capabilty is also one of the determinants in employee performance because after all employees are movers in the company that can bring the company to achieve its goals. dynamic capability in sinotruk companies is also related to employee performance because employees are one of the important assets of the company to support the company in achieving its competitive advantage. h3 : knowledge management a positive effect on employee performance (km→ep). based on table 6 it is known that the critical ratio or c.r (3,669)> t table (1,288) and p (0,000) <0.05. so, the hypothesis that knowledge management has a positive effect on employee performance is accepted. this research supports the research carried out by ahmad sahas nur falah management knowledge variably with management, which will have a significant positive effect on the performance of employees, this means that the higher the level of employee knowledge, it will also increase the number of employees. and shofa (2013) in which management knowledge has a significant influence on employee performance. sangkala (2007) in mardhotillah (2011) states that knowledge management is information that is required to perform business, capture, capture, transfer, transfer, and take account of the knowledge needed for the purposes of making, capture, capture, transfer, and recovery of information that is good for the purposes of making, capturing, processing, and making use of the data. because now the ability to manage knowledge has become the most important factor in encouraging a competitive business. knowledge management in the sinotruk company is already classified as good because it can run programs to support the performance of its employees. so that it shows that knowledge management has a significant effect on the performance of employees can be accept. conclusion brand equity contributes significantly to sales and long-term profits for a product. formation of brand equity through a product program becomes important. panin bonanza program is one of the programs created by pt bank panin in building the company's equty brand. based on the results of the study it can be concluded that the brand equity dimension has a positive influence on jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 21 29 brand equity, the brand equity dimension has a positive influence on relationship marketing, and relationship marketing has a positive influence on brand equity. thus it can be concluded that all variables have a positive influence on the formation of brand equity at pt bank panin kcu senayan. as an empirical study, the results of this research can be used by sinotruk companies to be able to further improve the performance of their employees, dynamic capabilities and knowledge management of their companies because given the developments in the business world so rapidly that requires entrepreneurs to be able to maintain the best possible company in order to achieve competitive advantage in the company. future research can be done by adding other variables that can affect the dynamic capability, knowledge management and employee performance variables as well as adding variables that can mediate between the independent and dependent variables in this study. in addition, future research can be carried out by applying it to other companies as well as government or educational institutions. references barney, j. b. 1991. firm resources and sustained competitive advantage. journal of management. 17, 99-120. porter, m. e. 1979. how competitive forces shape strategy. harvard business review. cohen, w. m., and levinthal, d. a. 1989. innovation and learning: the two faces of r&d. the economic journal. 99, 569-596 eisenhardt, k. m., & martin, j. e. 2000. dynamic capabilities: what are they? strategic management journal. https://doi.org/10.1002/smj.233. hair, j.f., black, w.c., babin, b.j., anderson, r.e. and tatham, r.l. (2010). multivariate data analysis. upper saddle river. pearson. new jersey. halim, stevani. 2018. knowledge management. diakses tanggal 10 juni 2020 melalui https://medium.com/@stevanihalim/ma najemen-pengetahuan-d69851468a23. katkalo, v. s., pitelis, c. n., & teecey, d. j. 2010. introduction: on the nature and scope of dynamic capabilities. industrial and corporate change. https://doi.org/10.1093/icc/dtq026 mangkunegara, anwar prabu. 2002. manajemen sumber daya manusia. remaja rosdakarya. bandung. nonaka, i., & takeuchi, h. 1995. knowledge creating company. knowledgecreating company. https://doi.org/10.1016/s09694765(04)00066-9 riyanto, setyo., et.,all. (2017). the impact of working motivation and working environment on employees performance in indonesia stock exchange. international review of management and marketing journal: econjournal, 7(3), 342-348. suliyanto. (2011). ekonometrika terapan: teori & aplikasi dengan spss. cv andi offset. yogyakarta. teece, d. j., rumelt, r., dosi, g., & winter, s. 1994. teece, d. j., pisano, g., shuen. a. 1997 dynamic capabilities and strategic management, smj 18(7) 509-533.pdf. journal of economic behavior & organization. https://doi.org/10.1016/01672681(94)90094-9 tjakraatmadja, j., & kristinawati, d. 2017. strategi implementasi knowledge management (1st ed.). bandung: penerbit itb wernerfelt. 1984. a resource-based view of the firm. wernerfelt, b. (1984). a resourcebased view of the firm. strategic management journal. https://doi.org/10.1002/smj.425005020 7 zollo, m., & winter, s. g. (2002). deliberate learning and the evolution of dynamic capabilities. organizational science. https://doi.org/10.1287/orsc.13.3.339.2 780. https://doi.org/10.1002/smj.233 https://medium.com/@stevanihalim/manajemen-pengetahuan-d69851468a23 https://medium.com/@stevanihalim/manajemen-pengetahuan-d69851468a23 https://doi.org/10.1093/icc/dtq026 https://doi.org/10.1016/s0969-4765(04)00066-9 https://doi.org/10.1016/s0969-4765(04)00066-9 https://doi.org/10.1016/0167-2681(94)90094-9 https://doi.org/10.1016/0167-2681(94)90094-9 https://doi.org/10.1287/orsc.13.3.339.2780 https://doi.org/10.1287/orsc.13.3.339.2780 jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 3, 2020, pp. 21 29 list of tables table 4. the results of the evaluation of data normality table 5. hypotheses test hypothesis c.r value t table value dc → km 5,613 1,288 0,000 accepted dc → ep 4,051 1,288 0,000 accepted km → ep 3,669 1,288 0,000 accepted list of figures figure 1. model test variable min max skew c.r. kurtosis c.r. x13 1,000 5,000 -,163 -,731 -1,008 -2,253 x19 1,000 5,000 -,450 -2,013 -,208 -,464 x18 1,000 5,000 -,066 -,296 -,341 -,763 x17 1,000 5,000 -,419 -1,875 -,507 -1,134 x16 2,000 5,000 -,137 -,614 -,300 -,672 x15 1,000 5,000 -,595 -2,661 ,481 1,075 x14 2,000 5,000 -,125 -,559 -,901 -2,015 x7 1,000 5,000 -,386 -1,728 -,606 -1,355 x8 2,000 5,000 -,177 -,790 -,917 -2,051 x9 1,000 5,000 -,376 -1,680 -,427 -,955 x10 2,000 5,000 -,454 -2,029 1,090 2,437 x11 1,000 5,000 -,386 -1,724 ,160 ,357 x12 1,000 5,000 -,351 -1,572 -,491 -1,098 x1 1,000 5,000 -,452 -2,020 -,078 -,173 x2 1,000 5,000 -,274 -1,224 -,827 -1,848 x3 1,000 5,000 -,379 -1,697 -,243 -,544 x4 1,000 5,000 -,610 -2,726 ,002 ,005 x5 1,000 5,000 -,403 -1,802 -,452 -1,011 x6 1,000 5,000 -,614 -2,744 -,251 -,561 multivariate 19,581 3,797 correspondence to : nflhkm21@gmail.com received: march, 12, 2020 accepted: march, 21, 2020 published: march, 30, 2020 jurnal akuntansi, manajemen dan ekonomi vol 22, no 1, pp.28-38 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction at this time the economic development grew so rapidly that these developments led to the emergence of many new companies into the business world. the emergence of several new companies has had an increasingly tighter effect and high competition in the business world. this situation makes the company try to maintain the company's survival, expand market share, and continue to innovate in creating unique and creative products to face competitors. maintaining a company so that it can compete in the business world is not easy. companies are required to be able to choose and implement effective and selective marketing strategies. in addition, the company must also be able to retain its customers and find new customers. but in keeping customers loyal to the company it is quite difficult to do, because loyalty does not come just like that but through strategies and processes to get it. at this time, the era of globalization is very influencing the life and patterns of people in living their daily lives, including in people's consumption patterns. people at this time are more inclined to consume and buy food and drinks that are practical and fast food. consumers also do not need to wait too long to order food and drinks, and can be consumed quickly and easily. according to the ministry of industry, the food and beverage industry in indonesia in the first quarter of 2018 increased by 12.70% and in the beverage industry by 8.41% in semester 1 of 2018. then, the ministry of industry predicts that, soft drink products will continue to grow in line with the needs of modern people who want practical, safe or hygienic beverage products, affordable prices, and added value. the soft drink industry includes producers of bottled water, carbonated drinks, ready-to-drink tea, juice and fruit drinks, coffee and milk drinks, and isotonic (sports and energy) drinks (industri.kontan.co.id, 2018) then, based on the development of the beverage industry, the tea beverage industry takes up about 5.7% of the total second soft drink industry after the drinking water industry which accounts for 70%. according to the the influence of quality perception, price fairness, brand experience, and accessibility to repurchase interest (study on consumer chatime in purwokerto) naufal hakim1, lusi suwandari2, alisa tri nawarini3 1,2,3 fakultas ekonomi dan bisnis, universitas jenderal soedirman abstract the purpose of this study is to identify and analyze the effect of perceived quality, price fairness, brand experience, and accessibility towards repurchase intention. the sample in this study is 107 respondents who are the customer of chatime purwokerto. the determination of the sample used purposive sampling method. the data was analyze using multiple regression analysis. the result of this study indicates that perceived quality, price fairness, and brand experience affects on repurchase intention partially. while, price fairness have no affect on repurchase intention. the adjusted coefficient of determination r square is 0,407, which means that perceived quality, price fairness, brand experience, and accessibility are affects on repurchase intention by 44,7%, while remaining 59,3% is affected by other variables that not examined in this study. the most dominant influence variable in this study is brand experience.. keywords perceived quality, price fairness, brand experience, accessibility, repurchase intention jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 28-38 indonesian soft drink association in the period 2005-2017, sales of rtd (ready to drink) tea (in million liters) were able to reach an average of 13% and always grow double digits except in 2010, 2012, 2016, and 2017. and according to the chairperson asrim, triyono pridjosoesilo, said that the ready to drink tea industry or large growth is in line with the growth of the soft drink industry. this shows that the packaged tea beverage industry is an attractive category for investors (wartaekonomi.co.id, 2017). the rapid growth of the ready to drink tea industry in indonesia has led to many variations of new tea flavors, where in the past few years variations of tea called bubble tea emerged. bubble tea originated from taiwan and has been around since the 1980s. and bubble tea in taiwan is claimed by two brands as the pioneers namely chun sui tang and hanlin tea (travel.kompas.com, 2018). in indonesia bubble tea has the basic ingredients of tea with a variety of toppings such as pearls from tapioca flour, jelly, pudding, and others. the positive response of the people in indonesia to the bubble tea led to the emergence of many new brands of the same type and made bubble tea competition even tougher. in the competition, the company must set a strategy to be able to survive against its competitors. the competition also makes companies must be able to attract as many consumers as possible to buy their products and make consumers interested in making purchases of their products continuously. making consumers interested in repurchasing is also important where consumers will become loyal to the brand in the future. repurchase interest is a planned decision of a consumer to buy the same product that was previously purchased by weighing the situation, preferences, and product performance with consumer expectations (hellier et al., 2003). in indonesia, the existence of bubble tea was introduced by the chatime brand. chatime is operated by the kawan lama sejahtera group and has opened 230 outlets in indonesia in 2018 (www.id.wikipedia.org, 2018). chatime was first available in indonesia in 2011, located in the living world alam sutera city of tangerang and the beginning of chatime's presence was actually intended to support the convenience of ace hardware and informa stores so that there are places to drink for consumers who are shopping (endeus.tv, 2019) over time, chatime continued to build its business and get a positive response from the people of indonesia and became a very wellknown outlet among the community, especially teenagers. chatime also became the first position in the top brand indonesia in the teens category in the last 4 years (in 2016-2019). table 1. top brand for teens index 20162019. 2016 brand tbi top chatime 37.2% top hop-hop 23.1% top lup-lup 6.2% calais 3.5% 2017 brand tbi top chatime 46.6% top hop-hop 22.5% top lup-lup 5.8% quickly 3.2% 2018 brand tbi top chatime 44.88% top hop-hop 30.74% top lup-lup 6.31% quickly 2.01% 2019 brand tbi top chatime 56% top hop-hop 12.5% top lup-lup 11.9% chill bubel tea 4.5% quickly 3.2% chatime's achievement in becoming the first rank in top brand indonesia is the result of chatime's efforts in building its brand by always maintaining the quality of its products and also providing the best quality products for its consumers, and can provide a brand experience to consumers that makes chatime different from the others. the process of making chatime is carried out with a special standard where chatime uses fresh tea from natural tea leaves brewed every 4 hours to maintain its freshness. each fruit aroma is produced from 100% authentic fruit, and other selected compositions are imported directly from taiwan. the topping used by chatime is also cooked directly in the store and without preservatives (tekno.kompas.com, 2012). the strategy to provide special qualities of chatime is carried out in order to provide consumer satisfaction with chatime products. consumers who are satisfied with the quality jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 28-38 of chatime are expected to later create a perception of good quality in chatime products. quality perception can be defined as the customer's perception of the overall quality or superiority of a product or service with respect to the intended purpose, relative to alternatives (alhaddad, 2015). the higher the consumer's perceived quality of a brand, consumers will prefer the brand. brands that have good quality perceptions impact the value of a brand to be good in the eyes of consumers. the perception of quality will be very useful for a brand that competes in a similar product market, such as the chatime company if it wants to be able to attract consumers and make its brand the first choice in consumers' minds. in setting a price must be in accordance with the quality that will be offered by consumers, if the price given is high but not in accordance with the quality offered or low then the consumer will consider the price of the product to be unnatural. fairness of price refers to consumers' judgments about whether prices for products or services of certain brands are reasonable, satisfying or in accordance with the prices offered (xia, monroe, & cox, 2004). chatime in providing prices is relatively high, but with the price fixing, consumers feel no objection to buying the product, because chatime can provide high quality products to its consumers. the willingness of consumers to buy chatime products at high prices can be seen from the chatime outlets which are always crowded with visitors. therefore, creating the perception of a fair price is important to make consumers interested in repurchasing and allowing consumers not to switch to other brands. creating brand experience can also be a factor in gaining market competitive advantage (ismail et al., 2011). brand experience occurs if there is a direct or indirect interaction of consumers with the brand. a direct interaction occurs when a consumer consumes a product or service offered by a brand, and indirectly is when a consumer sees an ad or marketing strategy carried out by that brand (brakus et al., 2009). giving consumers a deep impression of a brand can make the brand memorable for consumers and has a distinctive and memorable characteristic to consumers' memories. chatime in distinguishing itself with other brands can be seen starting from the color of the chatime brand in purple with the type of writing that is familiar to consumers. not only from the logo but there is also a distinctive impression in the chatime outlets, beverage packaging and menus by giving a purple accent. this makes consumers' image when they see all kinds of promotions for purple bubble tea products referring to the chatime brand. then, chatime flavor variants that have more than 30 kinds with 9 kinds of toppings, and the ability of consumers when ordering can customize their drinks according to their wishes where consumers can order chatime with one or two toppings, ice cubes and sugar that is small, ordinary, or many, as well as medium or large sizes. and the concept of a cafe at chatime outlets where consumers can relax, socialize with family, friends, or business partners and a place to learn. the quality and experience cannot be found in other brands such as hophop which ranked second in the top brand index in the last 4 years, where hop-hop has only about 26 variations of tea and hop-hop in the marketing of its products that are not good. then, careful marketing strategy planning will not succeed if it is not conveyed to consumers. choosing the right location and easy access will make it easier for companies to be able to reach consumers. location has an important role in consumers' preferences when choosing where to eat (azim et al., 2014). strategic location and the company's ability to differentiate itself from competitors, allows the company to be able to survive in the long run (parsa et al., 2005). chatime's chosen location is in a shopping center and near or in the ace hardware and informa store. and in purwokerto itself, chatime's location is in rita supermall purwokerto and the ace hardware and informa store purwokerto, which has only been in existence since 2018. the location chosen by chatime in purwokerto actually has easy access where the location can be traversed by a variety of private and public land transportation. this research is the development of research conducted by kusuma et al. (2018) concerning the influence of perceived quality, price, and product knowledge on repurchase intention. in this study, researchers will add / combine perceived quality / perceived quality, fairness of price, brand experience, and accessibility variables as independent variables due to the phenomenon where chatime is always crowded with visitors even though prices are relatively high, especially in the city of purwokerto. chatime also provides a process with special standards in its products and the existence of special characteristics in the chatime branding and jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 28-38 the establishment of the concept of a cafe in chatime outlets and chatime locations that are easily accessible. literature review repurchase interest according to hellier et al. (2003) the definition of repurchase interest is a planned decision of a consumer to buy the same product that was previously purchased by weighing the situation, preferences, and product performance with consumer expectations. according to peter and olson (in widyanata and setyono, 2017) consumers make repeat purchases because of an impetus and repetitive buying behavior that can foster a loyalty to what is felt appropriate for him. thus, repurchase interest is a tendency to repurchase and obtain a positive response to past actions. ferdinand (2002) identifies repurchase interest through indicators as follows: (1) transactional interest, is a person's tendency to buy the product he has consumed; (2) referential interest, is a person's tendency to reference a product that has been bought, so that it can also be purchased by another person, with reference to his consumption experience; (3) preferential interest, is an interest that describes the behavior of someone who has a primary preference on the product. this preference can only be replaced if something happens with the product of his preference; (4) explorative interest, is an interest that describes the behavior of someone who is always looking for information about the product of interest and looking for information to support the positive qualities of the product being prioritized. quality perception according to hellier et al. (2003), quality perception is the overall consumer assessment of the standard process of services received. consumer quality perception determines the value of a brand and has an impact on customer satisfaction and loyalty to the brand. if consumers' perceived quality of a brand is low or negative, the brand will not be liked by consumers and will not last long in market competition. therefore, the main key to get high consumer quality perception is to provide consumers with high quality products and in accordance with consumer expectations. quality perceptions are valued relatively by consumers according to what consumers want and need. according to sweeney (in musapat and armia, 2018), states several indicators of perceived quality as follows: (1) has consistent quality; (2) is well made; (3) has an acceptable standard of quality; (4) product defects are rare; (4) would perform consistently. fair price according to consuegra et al. (2007), price reasonableness as a price assessment involves the comparison of price procedures related to standards, processes, values, references, and norms, thus creating acceptable and reasonable results. research conducted by hanaysha (2016), says consumers tend to make comparisons between one brand and another regarding price and quality offered. consumers will decide to buy a product after they carefully evaluate the value they will get after buying the product or service. consumers will prefer brands that provide high value to them and therefore a company if you want to succeed and can increase their brand equity, give consumers a fair price. according to consuegra et al. (2007), the reasonableness of the price can be measured by the following attributes: (1) consumers feel they are paying for the product at a fair price for each purchase transaction; (2) consumers find it natural that a product of the same type from different brands is set at a different price; (3) a price can be said to be reasonable if the price policy set by the company is acceptable to consumers; (4) the price set is an ethic, provided that consumers are always informed of price changes to be made by the company before setting a new price. according to dhurup et al. (2014), there are four indicators to measure the reasonableness of prices, namely: (1) affordability of prices, consumers feel that the prices listed on products are in accordance with their purchasing power; (2) price conformity with product quality, consumers feel that the quality they get is in accordance with the price they pay; (3) price conformity with brand, consumers feel that the price they pay is in accordance with the brand of the product; (4) price satisfaction, consumers are satisfied with product prices after consuming and evaluating products. brand experience brand experience is defined by brakus et al. (2009), as sensations, feelings, cognition, and consumer responses caused by brands, jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 28-38 related to stimuli caused by brand design, brand identity, marketing communications, people and brand environment are marketed. and brakus et al. (2009) also said that brand experience can occur if there is a direct or indirect interaction. direct interaction occurs when consumers have consumed the product or service offered by a brand, and indirectly is when consumers see advertisements or marketing strategies carried out by the brand. according to brakus et al. (2009), there are three indicators of brand experience, namely: (1) sensory: creating experiences through sight, sound, touch, smell, and taste; (2) affection: a feeling approach by influencing moods, feelings, and emotions; (3) behavior: creating physical experience, behavior patterns, lifestyle. accessibility the choice of strategic location and the company's ability to distinguish itself among competitors can make the company survive longer (parsa et al., 2005). according to hanaysha's research (2016) the success of a business location depends on several factors such as physical location and surrounding demographics. convenient location is a very important factor that can influence consumer preferences in choosing restaurants. according to leksono (2010), accessibility is a measure of the comfort and ease of achieving a location and its relationship with each other, easily or difficult the location is achieved through transportation. tjiptono (2014) also said that accessibility is a location that is traversed or easily reached by public transportation. accessibility indicators (audistiana et al., 2017) can be identified as follows: (1) distance; (2) access to locations; (3) transportation and (4) traffic flow. the formulation of hypotheses effect of perceived quality on repurchase interest the results of the study of ariffin et al. (2016) revealed that perceived quality has a significant positive relationship to repurchase interest, where when consumers perceive higher product quality, it will trigger strong repurchase interest. then febiyanti n.'s research (2018) found that perceived quality was positively related to repurchase interest, where the higher the value of the product felt by consumers, the higher the availability of consumers to finally buy. h1: perception of quality has a positive effect on repurchase interest. effect of fairness on price on repurchase interest in the results of research studied by pratama and ardhy (2017), the reasonableness of price has a positive influence on repurchase interest, where as more consumers give a good assessment of the price information obtained and a comparison between the cost and the value received, the consumer's interest to do higher transactions. likewise, the results of research from resti and devi (2017) that if a fair price or costs incurred in accordance with the value obtained by consumers, it will create a good price perception and refers to consumer interest to make a repeat purchase. h2: price fairness has a positive effect on repurchase interest. effect of brand experience on repurchase interests the results of a study conducted by setyaningrum (2018) found that brand experience has a positive influence on ulag purchase interest, where the better the consumer experience, the greater the consumer interest to make a repeat purchase. the results of research conducted by widyanata and setyono (2017), brand experience has a positive influence on repurchase interest, where a company that creates elements of marketing experiences or experiential marketing will influence consumer interest to repurchase. h3: brand experience has a positive effect on interests effect of accessibility on repurchase interest in a study conducted by marpaung and sahla (2017), accessibility influences one's interest in visiting a location. therefore, if access to the business location is not difficult for consumers, consumers will not be burdened if they want to go to the business location for the second time. h4: accessibility has a positive effect on repurchase interests. research methods types of research jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 28-38 this research is a quantitative study and uses survey methods as a data collection tool. research sites this research was conducted in the city of purwokerto. research time this research was conducted in november december 2019. research subject the subject of this research is chatime consumers in purwokerto. object of research the object of this research is consumer behavior, specifically the repurchase interest by chatime consumers in purwokerto which is influenced by variables of perceived quality, fairness of price, brand experience, and accessibility. population and sample population population is the whole object whose characteristics are to be studied (suliyanto, 2006). the population used by researchers is consumers of chatime drinks in purwokerto. sample determination of sample size in this study uses estimated intervals by estimating parameters because the population size in this study is not known with certainty, with the following formula (suliyanto, 2006): 𝑛 = ( 𝑍2𝑎/2 4𝑒 2 ) information: n = minimum number of samples za / 2 = area under the normal curve value taken from the normal table above the level of confidence e = level of error that might occur if the confidence level is 90% then the coefficient value at that level is 1.96. and if the probability of error is set at 10%, then the minimum sample size can be calculated as follows: 𝑛 = ( 1,962 4(0.10)2 ) = 96,04 based on the calculation results the minimum sample size is 96.04. because the researcher believes that the level of returned and filled questionnaires is 90%, 11 questionnaires will be added to avoid the questionnaires. the addition of 11 questionnaires was based on the calculation of the minimum number of samples (100: 90) x96 = 106.7. so that the addition is rounded up to 11 questionnaires. thus the questionnaire that will be distributed in this research is 107 questionnaires to make the research more representative. sampling method sampling in this study was conducted using non-probability sampling. the sampling method used is the purposive sampling method which is a technique for determining research samples with certain considerations aimed at making the data obtained later more representative (sugiyono, 2010). sample criteria in this study were respondents who were at least 16 years old and had consumed dum dum thai tea for at least 2 times. data source the type of data used in this study is primary data. in this study, primary data sources were obtained directly from researchers' statements distributed through questionnaires. data collection technique the data collection technique used in this study is a questionnaire or questionnaire technique which is a method of collecting data by dividing the list of questions to the respondent so that the respondent provides the answer (suliyanto, 2006). for primary data collection researchers distributed questionnaires face to face or through the internet via google forms. data analysis technique variable measurement measurement of variables in this study using a likert scale. on a likert scale, variables are translated into indicator variables. then the indicator is used as a starting point for compiling instrument items which can be statements or questions. the answers of each instrument item that uses a likert scale has a gradation from very positive to negative consisting of (suliyanto, 2011). validity test the formula used is the product moment correlation as follows (suliyanto, 2011): rxy = 𝑛 ∑ 𝑥𝑦 − (∑ 𝑥)(∑ 𝑦) √{𝑛 ∑ 𝑥 2 − (∑ 𝑥)2} √{𝑛 ∑ 𝑦 2 − (∑ 𝑦)2} jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 28-38 with the degree of freedom (n-2) and the level of significant = 95%, then: if r_count> r_tabel, then the question item is said to be valid. if r_count ≤ r_tabel, then the question item is said to be invalid. reliability test the reliability test can be measured by the cronbach alpha (α) statistical test with the following formula: 𝑟 = ( 𝑘 𝑘 − 1 ) (1 − ∑ 𝜎𝑏 2 𝜎𝑡 2 ) with degrees of freedom (n-2) and α = 0.05 then: if r_count> r_tabel, then the question item is said to be reliable. if r_count ≤ r_tabel, the question item is said to be unreliable. multiple regression analysis in this research, multiple regression analysis is used to determine the effect of perceived quality, fairness of price, brand experience, and accessibility to repurchase interests. the formula used is as follows: 𝑌 = 𝑎 + 𝑏1𝑋1 + 𝑏2𝑋2 + 𝑏3𝑋3 + 𝑏4𝑋4 + 𝜀 classic assumption test normality test the normality test aims to test whether in the regression model, confounding or residual variables have a normal distribution. one way to test normality is to use the kolmogorov smirnov test for residual standard values against the residual standard values resulting from the regression equation. standardized residual values are normally distributed if k counts <k table or sig. > alpha (suliyanto, 2011). multicollinearity test multicollinearity test aims to test whether the regression model found a correlation between independent variables (independent variables). to find out whether there is multicollinearity between variables, one way can be seen by the value of tolerance (tol) and variance inflastion factor (vif). if the tolerance value> 0.1 and vif value <10, then the model is declared to have no symptoms of multicollinearity (suliyanto, 2011). heteroscedasticity test heteroscedasticity test aims to test whether the regression model occurs variance inequality from residuals to one observation to another. if the variance from one residual to another observation is still called homoscedasticity, a good regression model is one that is homoscedasticity or one that does not occur heteroscedasticity. heteroscedasticity test is performed by the glejser method. using this method, the symptoms of heteroscedasticity will be shown by the regression coefficients of each independent variable to the absolute value of the residual (e). if the probability value> alpha value (sig> α), then it can be ascertained that the model does not contain symptoms of heteroscedasticity or said heteroscedasticity does not occur if t arithmetic <t table (suliyanto, 2011). determination coefficient test (r2) to calculate the magnitude of the coefficient of determination, the following formula is used (suliyanto, 2011 :): 𝑅2 = 1 ∑(𝑌 − �̂�) 2 ∑(𝑌 − �̅�)2 simultaneous significant test (statistical test f) f table is obtained with degrees of freedom (df) = (k-1), (n-k) and 95% confidence level (α = 0.05), while f arithmetic is obtained by the following formula (suliyanto, 2011): 𝐹 = 𝑅2/(𝑘 − 1) (1 − 𝑅2 )(𝑛 − 𝑘) ha accepted: if f arithmetic> f table. ha rejected: if f arithmetic ≤ f table. partial test variables (statistical test t) partial test is the result of testing the level of regression coefficient values divided by their default errors. automatically the value of t can be stated in the formula: 𝑡 = 𝑏𝑗 𝑠𝑒 (𝑏𝑗) hypothesis testing criteria: ho: bi ≤ 0, meaning that partially the independent variable has no effect on the dependent variable. ha: bi> 0, meaning that partially the independent variable influences the dependent variable. research model jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 28-38 figure 1. research model results and discussion hypothesis test first hypothesis based on the results of multiple regression analysis shows the t-value of the variable perceived quality (x1) is 2.332 greater than the value of the table (1.660) with a significance value of 0.022. the results of these statistical tests prove that perceived quality has a positive and significant influence on repurchase interests. thus, the first hypothesis which states that perceived quality has a positive effect on repurchase interest, is accepted. second hypothesis based on the results of multiple regression analysis, it can be seen that the value of the t-count of the price fairness variable (x2) is 2.639, greater than the table value (1.660) with a significance value of 0.010. the statistical test results also show evidence that price fairness has a positive and significant effect on repurchase interests. thus, the second hypothesis which states that the price reasonableness has a positive influence on repurchase interest, is accepted. third hypothesis based on the results of multiple regression analysis, the tcount value of the brand experience variable (x3) is 4.905, greater than the ttable value (1.660) with a significance value of 0.000. the test results show evidence that brand experience variables have a positive and significant influence on repurchase interests. thus, the third hypothesis which states that brand experience has a positive influence on repurchase interest, is accepted. fourth hypothesis summary of the results of the multiple regression analysis shows the value of the tvariable of accessibility variable (x4) is 0.385 smaller than the value of table (1.660) with a significance value of 0.701. the test results show that accessibility has a positive but not significant effect on repurchase interests. thus, the fourth hypothesis which states that accessibility has a positive effect on repurchase interest, is rejected. discussion the influence of quality perception on repurchase interest the results of this study prove that perceived quality has a positive effect on consumer interest in repurchasing chatime products in purwokerto. the findings of this study show evidence that the better the consumer's perception of the quality of chatime products, the higher the consumer's interest in repurchasing chatime products in purwokerto. survey conducted by researchers of 107 respondents who have at least bought chatime products in purwokerto for the most time, most of them stated that, chatime products in purwokerto have been made with good quality materials, good processes and have met good quality standards according to respondents . then, respondents rarely find the damage that occurs in the packaging of chatime products and chatime products have a consistent or unchanging taste. and in the open question, most respondents stated that the quality owned by chatime was good, but there were some respondents who stated that the consistency of the flavor that was served sometimes changed when respondents visited other chatime locations. empirically, the results of this study are consistent with the findings of previous studies conducted by ariffin et al. (2016) and febiyanti n. (2018) who also found evidence that perceived quality had a positive and significant effect on repurchase interest. effect of fairness on prices against interest in repurchases the results of this study found evidence that price reasonableness had a positive influence on consumer interest in repurchasing chatime products in purwokerto. the causal relationship proves that the better the consumer's perception of the fairness of the price of chatime products, the higher the consumer's interest in repurchasing chatime products in purwokerto. the results of a survey conducted to 107 respondents, stated that respondents agreed the price given chatime products were affordable for respondents, and were satisfied quality perception fairness of price brand experienc accessibi lity (x4) repurcha se jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 28-38 with the prices given the chatime brand. respondents also stated that the price of chatime products was in accordance with the quality provided and did not feel cheated at the price set. and the open question given stated that respondents felt the price given by chatime was reasonable because the quality given by chatime to consumers was also good or the price was directly proportional to quality. the findings of this study are consistent with the results of previous studies conducted by pratama and ardhy (2017) and resti and devi (2017) which also prove that price fairness has a positive and significant effect on repurchase interest. effect of brand experience on repurchase interest this research also proves that brand experience has a positive influence on consumer interest in repurchasing chatime products in purwokerto. the causal relationship shows evidence that the higher the experience of the consumers associated with the chatime brand, the higher the consumer's interest in repurchasing chatime products in purwokerto. from the results of a survey of 107 respondents, most respondents stated that chatime has a distinctive brand symbol, an outlet design that has characteristics, outlets that have a calm atmosphere, a product atmosphere that feels thick and easy to carry, and has a delicious drink composition and fit. then some respondents also stated that respondents felt happy and proud when buying chatime products, and also often told chatime products to friends. in an open-ended question, some respondents stated that respondents had experiences like they felt happy, satisfied, and felt they wanted to buy when they saw, heard or bought and consumed chatime products. the results of this study are consistent with the findings of previous studies conducted by widyanata and setyono (2017) and setyaningrum (2018) who also found evidence that brand experience has a positive and significant influence on repurchase interest. effect of accessibility on repurchase interests the results of this study indicate that accessibility does not affect consumer interest in repurchasing chatime products in purwokerto. the meaning of the causal relationship is that the better the consumer's perception of accessibility is not always followed by the increasing interest of consumers to repurchase chatime products in purwokerto. thus, the results of a survey conducted to 107 respondents where the distance of the chatime outlet from the respondent's location is located, the location of the outlet that is easy to pass, the many types of transportation that can go to the location of the outlet and the traffic flow to the outlet that rarely occurs, will not affect the respondent to repurchase chatime products in purwokerto. some respondents stated that respondents felt unable to reach chatime outlets because they had to enter the mall building first, and the distance traveled by respondents was less close to the respondent's location given that not all of the respondents' residence or location was close to the chatime outlet. empirically, the findings of this study differ from the results of previous studies conducted by marpaung and sahla (2017) that accessibility influences one's interest in visiting a location. conclusion based on the results of testing the hypothesis in this study, it can be concluded as follows: (1) quality perception has a positive influence on repurchase interest; (2) price fairness has a positive influence on repurchase interests; (3) brand experience has a positive influence on repurchase interests; (4) accessibility has no effect on repurchase interests. implications theoretical implications this research can be used for further research as a literature on the influence of perceived quality, fairness of price and brand experience on repurchase interest. the accessibility variable does not affect the repurchase interest in this study. suggestions for further research are to add other variables such as brand trust and store atmosphere because the researcher considers that these variables might influence repurchase interest. managerial implications the results of this study can be utilized by chatime managers in purwokerto and chatime in other cities as considerations in order to increase consumer interest in repurchasing chatime products. chatime product marketing managers in purwokerto need to prioritize policies related to perceived quality, fairness of price and brand experience and ways that can be done include: (1) chatime parties are advised to offer chatime jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 28-38 products that are of higher quality compared to other brands supported by the ideal distinctive taste and innovative service; (2) determine the price level of chatime products in accordance with the quality and benefits offered; (3) continue to improve the experience of consumers to experience chatime products directly through various promotional programs; (4) maintaining strategic location and chatime outlets that are easily accessible and traversed. research limitations this research uses the method of distributing questionnaires directly and indirectly (through google forms) so as to enable the occurrence of bias in its filling, as well as the lack of control in filling out the questionnaire through google forms which can result in the limited information obtained, because researchers do not face to face. researchers are also aware of the limitations of knowledge possessed and also the limitations of literature. this study also found that the coefficient of determination (r2) showed a figure of 40.70 percent, which means there are still many other variables that can be examined in this study that can affect repurchase interest. references alhaddad, a. 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(2007). an integrated model of price, satisfaction and loyalty: an empirical analysis in service sector. journal of product & brand management. dhurup, m., mafini, c., & dumasi, t. (2014). the impact of packaging, price, and brand awareness on brand loyalty: evidence from the paint retailing industry. acta commercii, 14(1). febiyanti, n. (2018). analisis faktor-faktor persepsi kualitas, harga dan keputusan pelanggan terhadap minat beli ulang pada tasya cake. jurnal simki-economic, 2(2), 1-10. hanaysha, j. (2016). restaurant location and price fairness as key determinants of brand equity: a study on fast food restaurant industry. business and economic research, 6(1), 310-323. hellier, p.k., geursen, g.m., carr, r.a. & rickard, j.a. (2003). customer repurchase intention. a general structural equation model. european journal of marketing, 37(11/12), 1762-1800. hidayat, k. 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(2018). pengaruh persepsi kualitas dan kesadaran merek terhadap loyalitas merek dengan citra merek sebagai variabel mediasi pada pengguna lampu led hannochs di jurnal akuntansi, manajemen dan ekonomi, vol 22, n0 1, 2020, 28-38 banda aceh. jurnal ilmiah mahasiswa ekonomi manajemen, 3(2). 96-110. pratama a., ardhy, j. (2017). analisa persepsi harga terhadap minat beli ulang melalui perceived value pada hotel x surabaya. jurnal hospitality dan manajemen jasa, 5(2), 278-286. resti, d., soesanto, h. (2016). pengaruh persepsi harga, kualitas pelayanan melalui kepuasan pelanggan terhadap minat beli ulang pada rumah kecantikan sifra di pati. diponegoro journal of management, 5(1), 1-12. setyaningrum, a. (2017). pengaruh brand experience, brand knowledge dan advertising terhadap repurchase intention. skripsi. fakultas ekonomi program studi manajemen. universitas muhammadiyah purworejo. setyono, d., widyanata, o.y., siaputra, h, & jokom, r. (2017). analisa pengaruh experiential marketing terhadap minat beli ulang konsumen konig coffee & bar. jurnal hospitality dan manajemen jasa, 5(1). lion haloho (2019). 7 fakta menarik chatime indonesia. accessed november 26, 2019, accessed from https://endeus.tv/artikel/7fakta-menarik-tentang-chatime-indonesia. wikipedia.org (2019). chatime. accessed november 26, 2019, accessed from id. wikipedia . org/wiki/chatime kemenperin.go.id (2019). analisis perkembangan industri at www.kemenperin.go.id/ download/19418/laporan-analisisperkembangan-industri-edisi-ii(triwulan-i)-2018 kompas.com (2019). bubble tea yang populer lagi. accessed november 26, 2019, accessed from https:// tekno.kompas.com/read/2012/02/09/1325 4185/bubble.tea.yang.populer.lagi. correspondence to : nilta.alfi16198@student.unsika.ac.id received: sep, 29, 2020 revised: oct, 17, 2020 accepted: dec, 18, 2020 jurnal akuntansi, manajemen dan ekonomi vol.22, no. 4, pp. 16 25 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction in the current era of globalization, it is the most important role of financial institutions, namely banks. the main function of banks in general is to collect funds from the public and distribute them back to the public for various purposes, therefore public trust is a major factor in running the banking business. in today's global era, the banking industry is one of the fastest growing industries. based on data from the bank. in indonesia, through its official account, it can be seen that the growth of loans extended by banks reached 11.7% (year on year), higher than the realization of credit growth in the previous year of 8.2% (year on year). currently, the banking sector has faced various problems, one of which is bank indonesia raising interest rates. the increase in interest rates will affect the banking business and also affect economic growth. in fact, economic growth greatly affects demand for credit. when economic growth is weak, demand for credit will weaken. the increase in credit interest caused banks to face an increase in the ratio of non-performing loans (npl). another problem, liquidity management. if you look at the loan to deposit ratio (ldr), almost all banks face tight liquidity. an increase in interest rates will increase deposit rates, so that people are willing to deposit their funds in banks. the financial services authority (ojk) said that the profitability ratio of assets (return on assets / roa) in the banking industry during 2016 decreased slightly. according to the director of finance, the decrease in roa was due to slow credit growth coupled with an increase in npl, with an increase in npl that required banks to pay more reserves for losses. it is important for management to pay attention to the amount of roa that is owned in order to measure the effectiveness of the company in generating profits by utilizing its assets. roa is the ratio between profit after tax to total assets. the greater the roa, the better the financial performance, because the rate of return (return) is getting bigger. if roa increases, it means that the company's profitability increases so that the final impact is an increase in profitability enjoyed by shareholders. the standard reference for determining roa in banks in indonesia is at least 1.5% as stipulated in se bi no.13 / 24 / dpnp / 2011. non performing loans (npl) and loan to deposits ratio (ldr) are ratios that are often used to measure profitability, which are financial ratios related to credit risk. the effect of non performing loan (npl) and loan to deposit ratio (ldr) on return on assets () nilta alfi rizqi1, nasution2 1,2 universitas singaperbangsa karawang, indonesia abstract this study aims to determine whether there is an effect of non performing loans and loan to deposit ratio on return on assets partially or simultaneously. the method used in this research is descriptive verification method with a quantitative approach which is sourced from the annual financial statements of state-owned banks and private banks and literature studies. the sampling technique was using purposive sampling technique. the data used are secondary data analyzed through descriptive analysis and verification of the validity of multiple linear regression test data and hypotheses using the t test and f test coefficient of determination. this study uses the spss version 22 software program to process data. the results of this study indicate that partially non-performing loans have a significant negative effect on return on assets and the loan to deposit ratio has no effect on return on assets. meanwhile, simultaneously the non performing loan and the loan to deposit ratio simultaneously have a significant effect on return on assets keywords non performing loan, loan to deposit ratio, return on asset mailto:nilta.alfi16198@student.unsika.ac.id jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 16 25 100. 00% 90.0 0% 80.0 0% 70.0 0% 60.0 0% 50.0 0% 40.0 0% 30.0 0% 20.0 0% 10.0 0% npl ldr roa non performing loan (npl) is the level of credit risk in a bank, where this ratio shows the ratio of the number of non-performing loans to total credit. in this regard, npl is credit extended by banks, and customers cannot make installments or payments according to the agreement agreed between the customer and the bank. the amount of npl allowed by bank indonesia is currently a maximum of 5%. in this study, the liquidity ratio used is the loan to deposit ratio (ldr). loan to deposits ratio (ldr) is an indicator to measure the ability of a bank to pay back withdrawals made by customers using credit as a source of liquidity, where this ratio shows the ratio between total loans and total third party funds. it is important for management to pay attention to the percentage of the ldr ratio in order to remain within the safe limit set by bank indonesia. the current loan to deposits ratio (ldr) is 94%, which is a fairly healthy bank in terms of ldr. the higher the ldr ratio, the higher the profit, with the increase in bank profit, the performance in a bank will also increase. thus it can be concluded that the size of the ldr ratio will affect performance in banking. in this study, the authors chose the banking industry, especially state-owned banks and private banks listed on the indonesia stock exchange for the 2014-2018 period. the following is a table listing the average npl, ldr and roa developments in banking companies listed on the indonesian stock exchange for the period 2014-2018. figure 1. average development of npl, ldr and roa of banking companies listed on the indonesia stock exchange for the period 2014-2018 based on the data above, it is known that every year from 2014 to 2018 the average return on assets (roa) in indonesia for banking companies tends to decline. the roa value in 2014 was 2.85% and decreased in 2015 by 2.32%. then there was a decline again in 2016 of 2.23%, but in 2017 it increased by 2.45%. then there was an increase again in 2018 of 2.55%. the asset quality ratio used in this study is the non performing loan (npl). the npl was chosen because the amount of this npl can show the level of risk in a bank. it can be seen from the average value of development above, indicating that npl moves in the opposite direction to return on assets (roa), where when npl increased in 2017, this was not followed by a decrease in roa in the same year. this contradicts the theory, if the npl goes up, the roa will decrease, because the higher the npl value, the worse the credit quality, and there is a fear that it will experience bad credit. according to bank indonesia standards, npls are said to be healthy as having a percentage of <5%, while npls with a percentage of> 5% are said to be unhealthy. this npl will affect the level of credit to be extended by the bank. meanwhile, the liquidity ratio used by the authors in this study is the loan to deposit ratio (ldr). ldr was chosen because it is based on a theory which states that the higher the ldr level, the higher the bank's profit, meaning that the amount of ldr channeled by a bank indicates that the bank's management has the ability to market its funds. as can be seen above, the average loan to deposit ratio value tends to increase. 2017 shows that ldr moves against roa, where when ldr increases, this is not followed by an increase in roa in the same year. this contradicts the theory, if the ldr increases, the roa will increase. from the data above, it shows that the ldr has increased and decreased fluctuating every year. according to bank indonesia standards, the lower limit for ldr is 80% and the upper limit for ldr is 94%. based on research conducted by septiani and lestari (2016), it shows that nonperforming loans (npl) have a significant and negative effect on return on assets (roa). the results of this study are in accordance with research conducted by sudiarta and putri (2015) which shows that non-performing loans (npl) have a significant effect on return on assets (roa). however, it is different from ali and laksono's jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 16 25 research (2017) which shows that nonperforming loans (npl) have no effect on return on assets (roa). then research on loan to deposit ratio (ldr) to return on assets (roa) also shows various results including, the results of research conducted by sudiarta and putri (2015) show that ldr has a positive effect on profitability (roa). the results of this study are in accordance with research conducted by septiani and lestari (2016) that the ldr has a significant and positive effect on roa. however, it is different from the research conducted by edwar (2016) which shows that ldr has no effect on roa. return on asset (roa) according to kasmir (2014) roa is a ratio that shows the results (return) on the total assets used in the company. in addition, roa provides a better measure of the company's profitability because it shows the effectiveness of management in using assets to generate revenue. high profits make the bank gain the trust of the public which allows the bank to raise more capital so that the bank has a wider opportunity to lend funds. the return on asset (roa) formula is: roa= (profit after tax)/(total assets) x 100% non performing loan (npl) non performing loans (npl) is the ratio of credit risk which shows the ratio of the number of non-performing loans to total loans. according to ismail (2014), nonperforming loans are loans that have been disbursed by banks, and customers cannot make payments or make installments in accordance with the agreements signed by the bank and the customer. the non performing loan (npl) formula is: npl= (total non performing loans )/(total credits) x 100% loan to deposit ratio (ldr) according to kasmir (2014) states that "loan to deposit ratio is a ratio to measure the composition of the amount of credit given compared to the amount of public funds and capital used". liquidity is a ratio to measure a bank's ability to meet its short-term obligations when they are collected. in other words, it can pay back the disbursement of depositors' funds when they are collected and can meet the credit requests that have been submitted (kasmir, 2014). the loan to deposit ratio formula is: ldr=(total credits )/(total dpk) x 100% conceptual framework this is the conceptual framework in this research : figure 2. conceptual framework research hypothesis this is the hypothesis in this research h1: there is an effect of non performing loan (npl) on return on assets (roa). h2: there is an effect of non performing loan (npl) on return on assets (roa) h3: there is an effect of non performing loan (npl) and loan to deposits ratio (ldr) on return on asset (roa) methods this type of research method is quantitative research. the type of data used in this study is secondary data. according to (sugiyono, 2017), secondary data is a source of data that is not directly given to researchers. secondary data comes from the financial statements of sub sector banking and real estate companies listed on the indonesian stock exchange (website: www.idx.co.id). the sampling technique used in this research was purposive sampling. according to (sugiyono, 2017), purposive sampling is a technique in determining samples with certain criteria. in this research, the criteria set are companies listed on the indonesian stock exchange from 2015-2018 period. companies that publish consecutive financial statements from 2014-2018 period. commercial banks that have gone public and have been listed on the indonesia stock exchange and have consistently operated for 2014 2018 period, commercial banks that publish audited annual financial reports and jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 16 25 do not have complete data related to the variables studied during research period 2014 2018. commercial banks that experience losses in succession participated during the 2014 2018 research period. so the total sample selection in this study is 67 samples data analysis technique normality test the purpose of the normality test is to determine whether the data in the resulting regression equation is normally distributed or not. the regression equation can be said to be good if it has data on the independent variables and the dependent variable is distributed close to normal or not at all normal (ghozali, 2016). according to (ghozali, 2016: 156-158), other than that the normality test can be seen in the kolmogorov-smirnov test, where the guidelines used in making this decision are if the significant value > 0.05 then the normal distribution and if the significant value < 0.05 then the distribution is not normal. multicollinearity test the purpose of the multicollinearity test is to test whether the regression model finds a correlation between independent variables (independent), a good regression model should not have a correlation between the independent variables, if the dependent variables are correlated, then the variable is not orgonal. the orgonal variable is an independent variable whose correlation value between independent variables is equal to 0 (zero) (ghozali, 2016) the basis for the decision making for the multicollinearity test is: looking at the tolerance value, if the tolerance value is> 0.10 then multicollinearity does not occur looking at the vif value, if the vif value is <10.00 then multicollinearity does not occur. heteroscedasticity test the heteroscedasticity test aims to test whether in the regression model there is an inequality of variance from the residuals of one observation to another. if the residual variance from one observation to another is constant, it is called homoscedasticity and if it is different it is called heteroscedasticity. the basis for the decision to be tested for heteroscedasticity by using the scattler plot test. the scattler plot test uses the following criteria: the data points spread over and below or around the 0 data points do not collect only above or below. the distribution of data points should not form a wavy pattern that widens then narrows and widened again. the distribution of data points is not patterned. autocorrelation test autocorrelation test appears in regressions that use scaled data or time series. a good model must be free from autocorrelation. the autocorrelation test that is widely used is the durbin-watson vvvvmodel. if there is a correlation, it is called an autocorrelation problem. decision making whether there is autocorrelation or not (sujarweni, 2016), namely: d-w numbers below -2 means there is positive autocorrelation. the d-w number between -2 and +2 means there is no autocorrelation figures d-w above +2 have negative autocorrelation multiple linear regression analysis to determine the effect of the independent variables with the variables used the multiple linear analysis formula as follows: y = β + β1x1 + β2x2 + ε the statement as follows: y : return on asset (roa) β : constanta β1. β2. : regression x1 : non performing loan (npl) x2 : loan to deposit ratio (ldr) ε : standard error coefficient of determination (r2) the coefficient of determination (r2) basically measures how far the model's ability to explain the dependent variables. the coefficient of determination is between zero and one (0 <r² <1). small r² value means that the ability of the independent variables to explain the variation in the dependent variable is very limited. a value close to one means that the independent variables provide almost all the information needed to predict the dependent variation. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 16 25 simultaneous hypothesis testing (f test) the purpose of this simultaneous significant test or f statistical test is to show whether all the independent variables in the model have a joint influence on the dependent variable. the hypothesis that will be used in this study relates to the presence or absence of the influence of the independent variable on the dependent variable. the criteria for acceptance or rejection of the hypothesis are as follows: if f count> f table, then ho is rejected and ha is accepted, which means that all independent variables have an effect on the value of the dependent variable. if f count <f table, then ho is accepted and ha is rejected, which means that all independent variables have no effect on the value of the dependent variable. partial hypothesis testing (t-test) the t statistical test is used to determine how much influence each independent variable has on the dependent variable. the hypothesis that will be used in this study relates to the presence or absence of the influence of the independent variable on the dependent variable. the criteria for acceptance or rejection of the hypothesis are as follows: comparing the significance level (sig.) of the study with the significance level (α) of 5%: sig. > 0.05 then h0 is accepted and ha is rejected sig. <0.05, then h0 is rejected and ha is accepted criteria for decision making if t count> t table then h0 is rejected and ha is accepted if t <t table then h0 is accepted and ha is rejected the table value is obtained from: df = n-1; 0.025 results and discussion normality test this is the result of graph analysis in the normality test: figure 3. p-plot normality graph figure 3 shows that the dots spread around the line and follow the diagonal line. this shows the normality assumption is fulfilled or the residual data is normally distributed. table 1. kolmogorov-smirnov test onesample kolmogorov-smirnov test unstand ardized residual n 67 normal parametersa,b mean ,0000000 std. deviation ,88862213 most extreme differences absolute ,104 positive ,104 negative -,068 test statistic ,104 asymp. sig. (2-tailed) ,070c based on the results of the one sample kolmogorov smirnov test above, the asymphotic significance value shows a number of 0.070. then it can be interpreted that the data is normally distributed because the significance value is above 0.05. multicollinearity test table 1 it is known that the vif value for variables x1 and x2 is around 1.001, which means that this value is less than 10. so it can be concluded that the regression model does not have multicollinearity between independent variables jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 16 25 table 2. multicollinearity test model collinearity statistics tolerance vif 1 (constant) npl ,999 1,001 ldr ,999 1,001 heteroscedasticity test this is the result of graph analysis in the heteroscedasticity test using scatterplot diagram figure 4. scatterplot graph from the test results in figure 4 it can be seen that the dots spread above and below the number 0 on the y axis and there is no clear pattern, so it can be concluded that the regression model in this study is free from heteroscedasticit autocorrelation test based on table 3 above shows that the durbin-watson value is 1.873 so that the dw value is between -2 and 2, it means that there is no autocorrelation in the variables in this study. table 3. autocorrelation test model model durbin-watson 1 1,873 multiple linear regression analysis the results of multiple linear regression analysis: table 4. results of multiple linear regression analysis model unstandard-i zed coefficients standardized coefficients t sig. b std. error beta 1(constant) 4,714 1,348 3,497 .001 npl -,476 ,109 -,476 -4,367 .000 ldr -,015 ,015 -,108 -,991 ,325 based on table 4, we get the following multiple linear equations: roa (y) = 4,714 0,476 0,015 + e the constant value is 4.714. this constant value indicates that the independent nonperforming loan (npl) and liquidity (ldr) are considered constant or equal to 0, so the return on assets value increases by 4,714. the non-performing loan coefficient value is 0.476. this shows that for every 1 percent increase in non performing loans, the return on assets will decrease by -0.476. the value of the loan to deposit ratio coefficient is 0.015. this shows that every one percent increase in the loan to deposit ratio, the return on assets will increase by 0.015. coefficient of determination (r2) the coefficient of determination results: table 5. results coefficient of determination model r r square adjusted r square std. error of the estimate 1 ,491a ,241 ,217 . ,90240 based on table 5, the value of adjusted r square is 0.241 or 24.1%, which means that the change in the return on asset variable can be explained by non-performing loans and loan to deposit ratio. while the remaining 75.9% is influenced by other variables not examined in this study. jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 16 25 simultaneous hypothesis testing (f test) based on the results of data processing with the spss program, the f test results can be obtained as follows: table 6. results of f-test anovaa model f sig. regression 10,165 ,000b residual total based on table 6, it can be seen that the result of fcount is 10,165 with a significant value of 0,000, while the value of the table is 3.14 (where n2 (nk) = 67, n1 (k-1) = 3) with a significant value of 0.05. then the fcount> ftable is obtained, namely 10.165> 3.14, which means that the non-performing loan and the loan to deposit ratio simultaneously affect the return on assets of state-owned banks and private banks listed on the indonesia stock exchange for the 2015-2018 period. partial hypothesis testing (t-test) based on the results of data processing with the spss program, the t-test results can be obtained as follows: table 7. results of t-test model unstand ardized coefficients standard ized coefficients t sig. b std. error beta 1(const ant) 4,714 . 1,348 3,497 .001 npl -,476 ,109 -,476 -4,367 .000 ldr -,015 ,015 -,108 -,991 .325 non performing loan variable has a tcount 4.367 with a significant value of 0.000. while the table is 1.99773 with a significant value 0.05. thus t table> tcount is -4.376 <1.99773, so that partially non-performing loans have a negative effect on return on assets at stateowned banks and private banks listed on the indonesia stock exchange for the 2015-2018 period. the variable loan to deposit ratio has a tcount of -0.991 with a significant value of 0.325. while t table is 1.99773 with a significant value of 0.05. thus, t table <tcount is -0.991 <1.99773, so that partially the loan to deposit ratio has no effect on return on assets at state-owned banks and private banks on the indonesia stock exchange for the 2015-2018 period. effect of current non performing loan on return on asset there is a partial effect of non performing loan (npl) on return on assets (roa). this result is in line with research conducted by nyoman tri and i gde kajeng baskara (2019) which states that non-performing loans (npl) have a negative and significant effect on return on assets (roa), but these results are not in line with research conducted by luh putu sukma (2015). which states that the non performing loan (npl) has a positive but insignificant effect on return on assets (roa). the results of this study indicate that the increase in non-performing loans (npl) means that the bank has a loss, this is due to the increase in non-performing loans owned by the bank, so it can have a negative impact on the bank and the return on assets decreases due to the profit or profit it has. companies are used to cover problem loans faced by the bank. the effect of loan to deposit ratio on return on asset . there is no partial effect of the loan to deposit ratio (ldr) variable on return on assets (roa). these results are in line with research conducted by deden edwar (2016) which shows that the loan to deposit ratio (ldr) has no effect on return on assets (roa), but these results are not in line with research conducted by rita septiani and putu vivi lestari (2016). ) shows that the loan to deposit ratio (ldr) has a positive effect on return on assets (roa). the results of this study indicate that the effect of the loan to deposit ratio on return on assets is relatively small, so that the loan to deposit ratio does not necessarily increase the profit analyzed. using return on assets and from the results of this study the effect is not significant in the sense that the effect is insignificant, this is possible because the relatively always decreases the level of the loan to deposit ratio even though it is still in the healthy category for the loan to jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 16 25 deposit ratio, but it cannot simultaneously increase profit. using the return on assets analysis. and by becoming a national bank, the bank has not yet gained full national confidence in investing in the bank and there is a lack of maximum return on funds that have been spread with all forms of credit to the public, thus creating less pressure to increase profits by using return on assets conclusions based on the research results, the following conclusions are obtained: (1) partially non-performing loans have a significant negative effect on return on assets at state-owned banks and private banks listed on the indonesia stock exchange for the period 2015 2018; (2) partially the loan to deposit ratio has no effect on return on assets at state-owned banks and private banks listed on the indonesia stock exchange for the period 2015 2018; (3) simultaneously the non performing loan and the loan t deposit ratio have an effect on the return on assets of state-owned banks and private banks listed on the indonesia stock exchange for the period 2015-2018. the coefficient of determination is 0.241 or 24.1%, it can be concluded that the variable return on asset can be explained by the variable non performing loan and loan to deposit ratio 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(2009). manajemen sumber daya manusia edisi pertama. jakarta: kencana prenada media group, jakarta bambang, r. 2008. dasar-dasar pembelanjaan perusahaan. yogyakarta: bpfe. rita septiani dan putu vivi lestari. (2016). pengaruh npl dan ldr terhadap profiabilitas dengan car sebagai variable mediasi pada pt bpr pasar raya kuta. jurnal manajemen unud vol. 5 no.1. issn 2302-8912 luh putu sukma. (2015). pengaruh car, bopo, npl dan ldr terhadap profitabilitas pada perusahaan perbankan yang terdaftar di bursa efek. jurnal manajemen unud, vol.5, no.4. issn 2302-8912 deden edwar (2016). pengaruh car dan ldr terhadap return on asset (roa) pada bank bjb yang terdaftar di bei. ecodemica, vol.4, no.2. issn 2355-025 wayan suardita dan asri dwija putri (2015). pengaruh kecukupan modal dan penyaluran kredit pada profitabilitas dengan pemoderasi resiko kredit. jurnal akuntansi unud 11.2. issn 2302-8556 muhammad ali dan roosaleh laksono (2017). pengaruh net interest margin jurnal akuntansi, manajemen dan ekonomi , vol. 22, no. 4, 2020, pp. 16 25 (nim), biaya operasional pendapatan operasional (bopo), loan to deposit ratio (ldr), dan non performing loan (npl) terhadap return on asset (roa) pada bumn. jurnal akuntansi dan keuangan vol.5 no.2. issn 1377-1392 nyoman tri dan i gde kajeng baskara. 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(2018) .the influence of loan to deposit ratio, loan operational of income operational and non permorming loan toward profitability of banj perkreditan rakyat in sidoarjo regency. international journal of scientific and research publications, vol 8, issue 11. issn 2250-3153 hening widi oetomo, v. ratna i, lusy .(2018). effect of loan to deposit ratio (ldr), non permorming loan (npl), net interest margin (nim) on return on asset (roa) with atm as moderation variabel. f.x. soegeng et al., saudi j. econ. fin., vol 2, issue 5. issn 2523-9414 octa artarina dan gregorius (2013). faktorfaktor yang mempengaruhi rentabilitas pada bpr di kabupaten blora. dinamika akuntansi keuangan dan perbankan vol.2, no.1. issn 1979-4878 dwi indah putrianingsih dan arief yulianto (2016). pengaruh npl dan car terhadap profitabilitas. analisis jurnal manajemen vol.5 no.2. issn 22526552 achmad choerudin, (2016). pengaruh non performing loan (npl) dan loan to deposit ratio (ldr) terhadap return on asset (roa) 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daftar nama bank umum yang go public di indonesia www.idx.co.id tentang bursa efek indonesia www.ojk.go.id tentang otoritas jasa keuangan journal of accounting, management, and economics vol. 20, no. 1, 2018, pp. 1-4 published by faculty of economics and business, universitas jenderal soedirman published online on january 8, 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 online issn: 2620-8482  correspondence to: 1universitas jenderal soedirman, indonesia. e-mail: toktianti@gmail.com 2universitas jenderal soedirman, indonesia. e-mail: ade.anggraeni.gardjito@gmail.com 3universitas jenderal soedirman, indonesia. e-mail: adiindrayanto@gmail.com received: november 28, 2017 revised: december 12, 2017 accepted: december 26, 2017 introduction every organization or company whether private or public organizations have human resources (hr) as the main element of the existing system. human factors have a very important role in achieving organizational goals (robbins and judge, 2008). organizations that have good human resources are the main capital in facing competition with other organizations. the success of an organization can be seen from one of its indicators that is optimal performance. organizational citizenship behavior (ocb) is a set of behavioral forms outside of formal job requirements that benefits organizations. employees who demonstrate these behaviors are able to provide positive contribution significantly to the organization through behavior beyond the job description, in addition to the employees still carrying out the responsibilities in accordance with the work they carry. the organization must know the factors that can affect the level of ocb of the employees, one of them through perceived organizational support (pos). perceived organizational support is the employees’ perception of the organization of how organization values their contribution and care for their well-being. in general, organizations provide various forms of positive support for employees. such support can lead to employee perceptions of the organization. the higher the pos of an employee, the higher the desire to reply by applying beyond his/her job description. in addition to ocb, pos also affects the employee's positive attitude or psychological capital. etebarian (2015) showed a significant positive relationship between pos and ocb. muhammad (2014) pointed out that pos is positively associated with ocb in nine business organizations in the state of kuwait. psychological capital is a condition of positive development of a person characterized by selfefficacy, optimism about the future, there is always a new hope in reaching the goal, and resilient. psychological capital can encourage positive attitudes of employees in the workplace that ultimately can improve the extra role attitude shown by employees. employees with strong psychological capital will have a good working relationship, are willing to take risks in a group, engage with the organization, and ultimately employees can assist the organization in achieving its goals. these resources include self-efficacy, optimism, hope, and resilience. gupta, et al. (2017) stated that psychological capital is positively associated with ocb. the results are in line with the research results of pradhan, jena, and bhattacharya (2016). urgency of this research is expected to provide further analysis on the effect of pos and psychological capital on ocb. research on ocb of the influence of perceived organizational support (pos) and psychological capital on organizational citizenship behavior (ocb) tri oktianti indrawiani1, ade irma anggraeni2, adi indrayanto3 faculty of economics and business, universitas jenderal soedirman, indonesia abstract the purpose of this research is to analyze and to know the influence of perceived organizational support (pos) and psychological capital toward organizational citizenship behavior (ocb) in the context of semimilitary based public organization of civil service police unit (satpol-pp) of banyumas regency. the results of this study are expected to provide recommendations on important elements in the management of human resources in the context of public organizations, especially regarding organizational support and psychological capital. quantitative approach was used in this research. respondents were numbered 136 employees of the total population of 206 employees of satpol-pp of banyumas regency. method of probability sampling with simple random sampling technique was used in sampling method in this research. testing of the relationship between variables used simple linear regression analysis method. the results showed that perceived organizational support is positively and significantly related to ocb and psychological capital is positively related to ocb. this provides input for semi-military based organizations to improve employee welfare and development as well as increase their psychological capital to increase employee's extra role behavior, thereby increasing organizational productivity. keywords perceived organizational support; psychological capital; organizational citizenship behavior journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 1-4 2 employees is majority done in various manufacturing companies, service companies, or public organizations. nevertheless, study examining the mediating effect of psychological capital on the effect of pos on ocb is not enough. therefore, it is necessary to study the role of mediating of psychological capital conducted on organizations with semi-military characteristics such as satpol-pp. based on social exchange theory (set), interaction between individuals is in the form of resource exchange. thus, the researchers linked the pos relationship to ocb through psychological capital. this theory suggests that employees who feel supported, noticed, and awarded by companies (e.g. percieved organizational support) are assumed to reciprocate more by showing positive behaviors such as psychological capital thereby building a higher ocb level. the civil service police unit of banyumas regency as a regional government organization which has semi-military character has the duty to enforce local regulations, organize public order and peace, and organize the protection of society (regent of banyumas regulation number 42 year 2011). the important and strategic role to create peaceful conditions is the spearhead of local government in order to improve the authority of local government through its consistency in enforcement of local regulations and the implementation of trantibum. in addition to the job description, satpol-pp employees also serve public service to the society in the form of complaints from the society and administrative services. satpol-pp employees must have information disclosure, socialization to the society, and other activities directly related to the society. in order to achieve maximum organizational goals, it requires optimal performance from its employees. various factors can affect employee performance. in this study, researchers interested in conducting research with antecedent variable of performance that is perceived organizational support (pos) and psychological capital as a mediator. this model is expected to contribute to the satpol-pp organization for efforts to improve employee performance in order to achieve organizational goals. literature review and hypothesis development social exchange theory (set) social exchange theory (set) is the interaction between individuals in the form of resource exchange. based on this theory of social exchange, employees will tend to reciprocate the opportunities and benefits provided by the organization through effective and sustainable performance when they find that the organization supports them by engaging with various human resource practices. employees contribute in accordance with the responsibilities of the role for the achievement of organizational goals, while the organization provides useful support for the welfare of employees such as salaries, benefits, work facilities, clear access to information, attention from superiors, and so on thereby both sides mutually beneficial. perceived organization support (pos) perceived organization support is an employees’ perception of the extent to which organization values their contribution and well-being (robbins and judge, 2008). positive support is often given by organizations such as fair treatment, salary, promotion, voice right, and other forms of assistance that can support the implementation of work and can improve employee welfare. employees feel responsible for replying to what has been given by the company by providing optimal performance. in this study, the pos indicators include four indicators taken by eisenberg, namely: (a) award; (b) working condition; (c) development; and (d) welfare. psychological capital psychological capital is a positive psychological development condition that has several characteristics, namely: self-efficacy, optimism, hope, resilience. employees with strong psychological capital will have a good working relationship, are willing to take risks in a group, engage with the organization, and ultimately employees can assist the organization in achieving its goals. the dimensions of psychological capital are self-efficacy, optimism, hope, and resilience. organizational citizenship behavior (ocb) organizational citizenship behavior (ocb) is a voluntary behavior that arises from individuals, is not related to formal reward systems and aggregately increases organizational effectiveness. ocb is required for time, cost, and energy savings as well as organizational excellence in realizing organizational goals, missions, and visions. organ divided the ocb into 5 dimensions: altruism, courtesy, sportsmanship, civic virtue, and conscientiousness. perceived organizational support (pos) relationship with ocb supportive conditions for employees will provide a positive response made by employees to the organization to reply. research of azim and dora (2016) conducted on multimedia employees in malaysia has results indicating a significant relationship between pos to ocb. jebeli and etebarian (2015) conducted a study of regency-level government employees with results that pos is relating significantly to the three dimensions of ocb namely altruism, civic virtue, and courtesy. similar journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 1-4 3 results are in research conducted by chiang and hsieh (2012) to hotel employees in taiwan stating that pos and psychological empowerment both have a positive impact on ocb. based on the various research results, it can be put forward hypothesis as follows: h1: percieved organization support (pos) has a positive effect on ocb. psychological capital relationship with ocb strong psychological conditions make the employees strongly committed to their work. this commitment is characterized by a willingness to work hard and not give in to difficulties, involvement, enthusiasm, and full concentration in work. employees who are committed to their work will be very engrossed and eager to work, even as if they do not think about the work time and rewards they receive. they work earnestly, diligently, persistently, and seriously. pradhan, jena, and bhattacharya (2016) stated that psychological capital is positively related to ocb. golestaneh (2014) in his research on education officials at bushehr showed that all dimensions of psychological capital are positively related to ocb. based on the various research results, it can be put forward hypothesis as follows: h2: psychological capital has a positive effect on performance. h3: perceived organizational support (pos) and psychological capital have a positive effect on ocb. methods sample the population of this study is the employees or members of the organization of civil service police unit (satpol-pp) in banyumas regency. to be able to meet the purpose of the research then this research used the method of probability random sampling in determining the respondents. the questionnaires were distributed directly to 136 members or staffs of satpol-pp according to the sampling frame. from the total distributed questionnaires, it is known that 111 questionnaires returned completely so that the response rate is 81.6%. procedure the main data collected from the questionnaires consists of responses from members or staffs assessing organizational support, psychological capital, and ocb. determination of respondents was done by selecting the members or staffs in each organization in accordance with the existing sampling frame and then adjusted to the proportion of the number of members in each organization. measurement the hypotheses in this study were tested using multi item questionnaire which was adopted and adjusted from previous research. the instrument has been tested for its validity and reliability. questions about the perception of organizational support is 15 questions, psychological capital 24 questions, and ocb 12 questions. result and discussion based on the primary data obtained from the results of questionnaires spread then the validity and reliability were tested. the result of the validity test is valid because the correlation coefficient value of the three valibel is more than 0.3. the result of reliability test on the three variables yields cronbach’s alpha > 0.6 then it can be concluded that the the variable is reliable. in the classical assumption test which includes normality, multicollinearity, heteroscedasticity, and linearity test shows that in the regression model has a normal distribution, no multicollinearity, no heteroscedasticity, and the data is linear. based on the output of spss 20 then obtained the following result: tabel 1 multiple linear regression (x1 and x2 on y) model unstd. coef. std. coef. b std. err. beta t sig. 1 (constant) 2.256 2.524 0.892 0.372 x1 0.840 0.146 0.566 5.701 0.000 x2 0.391 0.117 0.327 3.302 0.000 y = 2.256 + 0.840 + 0.391 influence of pos (x1) on ocb (y) based on the t test onpos then obtained t count value of 5.701 > t table value, then hypothesis 1 which states that there is a significant influence between pos on ocb in the organization of satpolpp of banyumas regency is accepted. these results are in line with study of azim and dora (2016) which suggests that pos is significantly related to ocb. influence of psychological capital (x2) on ocb (y) based on the t test of the psychological capital variable then obtained t count value of 3.302 > t table, this means the hypothesis 2 (h2) which states there is a positive influence between the psychological capital to ocb on satpol-pp organization of banyumas regency is accepted. this result is in line with study of pradhan, jena, and journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 1-4 4 bhattacharya (2016) stating that psychological capital is positively related to ocb. pengaruh pos and psychological capital on ocb based on the f test, pos and psychological capital to ocb have f count of 81.965 > f table of 3.1359, then hypothesis 3 (h3) stating that there is a significant influence between pos and psychological capital toward ocb in satpol-pp organization of banyumas regency is proven. this study is in line with research conducted by sidra, et al. (2016) which states that there is a positive relationship between pos and psychological capital on ocb. conclusion based on the results of research conducted on satpol-pp organization of banyumas regency regarding the influence of pos and psychological capital on ocb, the writers can draw conclusion that is (1) there is significant influence between pos to ocb on satpol-pp organization of banyumas regency. this means high organizational support from the organization increases the extra role attitude of its employees. (2) there is a significant influence between the psychological capital to ocb on satpol-pp organization of banyumas regency, this gives an illustration that the positive attitude or high psychological capital of the employee improves the extra role attitude of the employee. (3) there is a significant influence between pos and psychological capital on ocb, this indicates that good organizational support and psychological capital of employees will improve the extra role behavior of employee such as willingness to help coworkers and working more than job description where extra role behavior will help the organization achieve its goals. reference azim and dora. (2016). perceived organization support and organizational citizenship behavior: the mediating role of psychological capital. chiang, c. f. and hsieh, t. s. (2012). the impacts of perceived organizational support and psychological empowerment on job performance: the mediating effects of organizational citizenship behavior. international journal of hospitality management, 31(1), 180–190. golestaneh, s. m. (2014). the relationship between psychological capital and organizational citizenship behavior. management and administrative sciences review, 3(7), 1165-1173. gupta, et al. (2017). impact of psychological capital on organizational citizenship behavior: mediation by work engagement. journal of management development. jebeli, m. j. and etebarian, a. (2015). perceived organizational support and organizational citizenship behavior. magnt research report, 3(4), 153-158. muhammad, a. h. (2014). perceived organizational support and organizational citizenship behavior: the case of kuwait. international journal of business administration, 5(3), 59-72. pradhan, r. k., l. k. jena, and p. bhattacharya. (2016). impact of psychological capital on organizational citizenship behavior: moderating role of emotional intelligence. cogent business & management, 3(1), 1-16. robbins, s. p. and judge. (2008). perilaku organisasi book 2, jakarta: salemba empat. correspondence to :hantikosahid@gmail.com received: 29 juli 2021 accepted: 11 august 2021 published: 30 september 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 3, 2021, pp. 10 23 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the concept of religiosity has been of interest to social scientists for over a century because religion appears to influence one’s behavior, wellbeing, and life in general. all religions teach people what is the best for the followers. the religions teach people what they believe in and use the religion as the way of life on their daily basis. as of today, religiosity becomes an important factor in doing any kind of activity. moschis and ong (2011) state that religiosity is often used as an explanatory variable to account for differences in the consumption habits of consumers in different parts of the globe. until now religiosity remains an important variable to determine one of consumer behaviors which is purchase intention. in islam there are two words that define what a person can do and don’t, however the boundary is not only about that. halal is a quranic word which means lawful or permitted, which is the dietary standard prescribed in the quran, while haram that is also a quranic word which means prohibited or unlawful (jallad, 2008; alam and sayuti, 2011). the halal word is not only for food or beverages but also into other aspects, such as: finance, travel, fashion, media and recreation, pharmaceuticals, and cosmetics (jallad, 2008; state of the global islamic economy, 2018). the concept of halal covers many aspects, however in this research the halal concept is focused on food and beverage. the general understanding of halal food and beverage should not be contaminated with pork or alcohol and that livestock should be slaughtered in accordance with the islamic shariah law in order to be suitable for consumption or usage. the procedure is as follows: the animal must be slaughtered by a muslim, and it should be put down on the ground (or held it if it is small) and the throat should be slit with a very sharp knife to make sure that the three main blood vessels are cut. while cutting the throat of the animal, the person must pronounce the name of god or recite a blessing which contains the name of god, such as “bismillah, allahu akbar”(jallad, 2008). halal knowledge is one of important factors to determine young consumer purchase intention. previous studies show that halal knowledge and purchase intention has positive significant relationship (see for antecedents of halal food purchase intention on young muslim consumers hantiko syahid faruqi subechan1, siti zulaikha wulandari2, lusy suwandari3 1management, economics and business, jenderal soedirman university, indonesia abstract this research is conducted to analyze the antecedents of halal food purchase intention on young muslim consumers in purwokerto. the research aims to see whether halal knowledge, attitude, subjective norm, perceived behavioral control, and religiosity has positive effect on purchase intention. 96 respondents became the samples of this research using purposive sampling. the regression analysis is used as analytical tools to analyze the data. based on the result of this research, by using the value of t-statistic of regression analysis it can be concluded that: 1) halal knowledge has no effect on purchase intention with t-statistic value of 0.914, 2) attitude has positive effect on purchase with t-statistic value of 3.812, 3) subjective norm has positive effect on purchase intention with t-statistic value of 2.072, 4) perceived behavioral control has no effect on purchase intention with t-statistic value of 1.916, 5) religiosity has positive effect on purchase intention with t-statistic value of 3.037. keywords halal, food products; young muslim consumers; islam; theory of planned behavior; attitude; subjective norm; perceived behavioral control; knowledge; religion; purchase intention; jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 10-23 example azis and chok, 2013; kordnaeij, et al., 2013; sadeeqa, et al., 2013; hamdan, et al., 2014; mohtar, et al., 2014; maichum, et al., 2017). azis and chok (2013) and hamdan et al. (2014) found that halal knowledge has direct positive effect on halal food products. kordnaeij et al. (2013), mohtar et al. (2014), maichum et al. (2017) found that halal knowledge has indirect effect towards purchase intention on halal food products. however, wan et al. (2014), khalek (2014) and pratiwi (2018) found that muslims did not necessarily react accordingly to what they believe in purchasing halal food products. due to that, it would be easy for companies to disregard their needs and demands. this is due to their weak power when they failed to demonstrate how important it is for them to consume halal food products. it correlates with the finding of helmyati et al. (2019) who research on 3 universities that the level of knowledge about halal food in all subjects was relatively the same even though the background is different and that the attitude of the respondents toward halal food was significantly influenced their behavior of halal food consumption. most respondents consumed halal food as they concern of religious obedience; it was reassuring, safe, healthy, and could affect their good behavior. nevertheless, many respondents have shown less positive feeling toward certified halal logo adhered in the packaging of the food. most of them paid little attention to logos and ignored them. although religion has been a significant force in the lives of many individuals, its exact role in consumer food choice is unclear (delener, 1990; bonne, et al., 2008). a highly religious individuals are likely to be more dogmatic and more conservative than less religious individuals (delener, 1994). therefore, the more religious person is more likely to align their behavior to their religious laws. those who are strongly committed to religion are both attitudinally and behaviorally able to take decisions consistent with religion (sood and nasu, 1995). individual differences in religiosity are related to stable differences in perception that may guide the individual in the process of selecting solutions to a particular need (gorsuch and smith, 1983). bonne and verbeke (2006) stated that halal food is considered as a special food prescribed by islamic nutrition rules. in their studies, it is emphasized that muslims consume halal meals in order to respect their religious teachings. bonne et al. (2007) showed that religion is one of the most important motivators to consume halal food. furthermore, a number of studies shows that religiosity has significant positive impact towards purchase intention (bonne, et al., 2007; bonne, et al., 2008; mukhtar and butt, 2012; newaz, 2014). aside from both factors, a person might not have a positive attitude towards halal food products, thus makes the consumer put mind into decision making whether to have positive attitude such as purchase intention towards halal food product. several studies that research the relationship between attitude towards purchase intention shows relatively significant positive influence (e.g. bonne et al., 2007; bonne et al., 2008; lada et al., 2009; alam and sayuti, 2011; mukhtar and butt, 2012; kordnaiej et al., 2013; khalek, 2014; mohtar et al., 2014; haque et al., 2015; maichum et al., 2017; pratiwi et al., 2018). the incompatibility between the consumer attitude and family and friends’ expectations may determine the consumer intention to choose halal food products, this phenomenon also known as the term subjective norm. furthermore, few studies support the findings of relationship between subjective norm towards purchase intention (bonne et al., 2007; bonne et al., 2008; lada et al., 2009; alam and sayuti, 2011; mukhtar and butt, 2012; khalek, 2014; haque et al., 2015). several past studies found that perceived behavioral control of consumer on how much opportunities or resources they think they have on determining certain behavior such as purchase intention shows significant positive effect towards purchase intention (bonne et al., 2007; bonne et al., 2008, alam and sayuti, 2011; khalek, 2014; haque et al., 2015; pratiwi, 2018). thus, the attitude, subjective norm and perceived behavioral control are also the variables from the theory of planned behavior indicating that those variables have a significant positive effect in predicting certain human behavior such as purchase intention (ajzen, 1991). from the explanation above, the researcher takes the research with topic “antecedents of halal food purchase intention on young muslim consumers”. literature review and hypotheses theory of reasoned action the theory of reasoned action was developed to explain how a consumer leads to a certain buying behavior (fishbein, 1980). the theory of reasoned action (ajzen, et al., 1975; ajzen jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 10-23 and fishbein, 1980) has been widely used as a model for predicting behavioral intentions and or behavior. the theory of reasoned action posits that behavioral intentions, which are the immediate antecedents to behavior, are a function of salient information or beliefs about the likelihood performing a particular behavior will lead to a specific outcome. in tra, the behavior is determined by the attitude and subjective norm through the behavioral intention of the individual, while in tpb there is a third antecedent which is the perceived behavioral control of the individual. theory of planned behavior the theory of planned behavior (ajzen, 1985) extends the boundary condition of pure desire control specified by the theory of reasoned action. this is accomplished by including beliefs regarding the possession of requisite resources and opportunities for performing a given behavior. the more resources and opportunities individuals think they possess, the greater should be their perceived behavioral control over the behavior. as in the case of behavioral and normative beliefs, it is also possible to separate these beliefs and treat them as partly independent determinants of behavior. attitude attitude is the first component of theory of planned behavior. attitude is considered to be a person’s degree of favorableness or unfavorableness with respect to a psychological object (ajzen and fishbein, 2000). attitude is defined as psychological tendency that is expressed by evaluating a particular identity with some degree of favor or disfavor (ajzen and fishbein, 1980). consumers have the intention to compare the perceived service with the expected service. if consumers felt that service under expectation, they would be dissatisfied. however, if consumers feelings were equal to or exceeds their own expectations, they will be satisfied (kotler and keller, 2006). subjective norm subjective norm is the second component of theory of planned behavior. results from how the person perceives the pressure put on him to perform or not to perform the behavior. attitude of others influences the purchase intention and purchase decision. ajzen and fishbein (1980) mentioned that subjective norm is a function of normative beliefs. a person’s normative belief represents the perceived behavioral expectations from the persons’ important referent individuals or groups. these normative beliefs or the motivations to comply with the perceived expectations from each referent can result in perceived social pressure or “subjective norm” (ajzen, 2002; lada, et al., 2009) (e.g. consuming halal food products). perceived behavioral control perceived behavioral control is the third component in theory of planned behavior. in fact, the theory of planned behavior differs from the theory of reasoned action in its addition of perceived behavioral control (ajzen, 1991). perceived behavior control is defined as the extent to which the person has control over internal and external factors that facilitate or constrain the behavior performance. halal halal is anything that is allowed based on islamic law. according to jallad (2008) the word halal, as used by arabs and muslims, refers to anything that is considered permissible and lawful under religion according to islamic law. the word halal is derived from the verb “halla“ to be or become lawful, legal, licit, legitimate, permissible, permitted, allowable, allowed, admissible, unprohibited, unforbidden.” it may also mean “to untie, unfasten, unbind, undo, unravel, loosen, unloose, unfix, unwind, unscrew, untangle, disentangle, disengage, free.” in addition, the verb “halla” may be used to mean “solve” or “resolve” (e.g., halla the problem or the riddle). in chemistry, it means “to dissolve, melt, liquefy, break down.” (baalbaki, 1993). for a non-speaker of arabic, the word halal usually refers to food that is permissible according to islam. however, in arabic, it refers to permissible behavior, speech, dress, conduct, manner and dietary. in western countries, the term is usually used in the context of just muslim food laws, especially where meat and poultry are concerned. the following are some halal categories: milk (from cows, sheep, camels, and goats), honey, fish, plants which are not intoxicant, fresh or naturally frozen vegetables, fresh or dried fruits, legumes and jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 10-23 nuts like peanuts, cashew nuts, hazel nuts, walnuts, etc., and grains such as wheat, rice, rye, barley, oat, etc. moreover, animals such as cows, sheep, goats, deer, moose, chickens, ducks, game birds, etc., are halal, but they must be slaughtered according to islamic law in order to be suitable for consumption. to sum up, halal govern every aspect of a person’s life such as consumption behavior according to islamic law, to put it simply, it is the islamic dichotomy of rights and do’s what a muslim should be doing. halal knowledge knowledge is one major factor that influence consumers purchase intention especially towards halal food products (ahmad, et al., 2015). according to sinclair (2010) stated that knowledge is an expertise and skills acquired by a person or a group of people through theoretical or practical understanding of a subject. knowledgeable consumers have a more developed cognitive whereby they can efficiently encode, interpret new information, and recall (ofir, et al., 2008). in other words, halal knowledge is an expertise, skills, and information acquired by the consumer that based on islamic law in determining their behavior (sinclair, 2010). religiosity religion refers to one’s beliefs about the absolute definitiveness and inherent truth qualities of a religion’s teachings and scriptures (moschis and ong, 2011). religiosity is defined as the extent to which an individual is committed to his religion and to which that religion is reflected in the individual’s attitudes and behavior (jang and johnson, 2001). in other words, religiosity is the degree to which one is religious (de run, et al., 2010). it is a fundamental variable that determines people’s attitudes and behavior (wilkes, et al., 1986; delener, 1990; mullen, et al., 2000; alam and sayuti, 2011; schneider, et al., 2011; mukhtar and butt, 2012). this influence also plays a dominant role in shaping individual’s attitude and behavior towards material goods and services (fam, et al., 2004). religion also influence in shaping food choice in many societies (musaiger, 1993; dindyal and dindyal, 2003). its impact on food consumption depends on the religion itself and on the extent to which individuals interpret and follow its teachings (bonne, et al., 2008; lada, et al., 2009). therefore, religion in general and islam in particular, being the integral part of culture influences market researchers, to explore its role in the consumption world (de run, et al., 2010). thus, it is important for organization to understand the role of religion in purchasing decision of its intended segment. muslims are not allowed to eat pork, alcohol, or any food that is haram according to islamic law. in alquran surah albaqarah verse 168 allah swt delivers order, “o mankind, eat from whatever is on earth (that is) lawful and good and do not follow the footsteps of satan. indeed, he is to you a clear enemy”. moreover, albaqarah verse 173 also stated, “he has only forbidden to you dead animals, blood, the flesh of swine, and that which has been dedicated to other than allah. but whoever is forced (by necessity), neither desiring (it) nor transgressing (its limit), there is no sin upon him. indeed, allah is forgiving and merciful”. the verse explains that the mankind is allowed to eat anything on the earth that is lawful and good except foods that are forbidden or categorized as haram, which are dead animals, blood, flesh of swine, and animals that are dedicated to other than allah swt. muslims religiosity can be represented by taqwa as a 5 multidimensional concept based on quran and sunnah, and other islamic studies (maududi, 1960; ahmad, 1977). the five dimensions of taqwa are identified as belief (aqi’dah), practice (amal), knowledge (ma’rifah), experience (ihsan) and consequence (natijah). therefore, the proposed model operationalizes young muslims religiosity in accordance with those five dimensions. a) religious belief (aqi’dah) dimension includes the overall beliefs associated with the religion, such as beliefs about god, the prophet, fate, etc. b) religious practice (amal) includes the actions prescribed by religion such as: prayer, fasting, pilgrimage, etc. c) religious knowledge (ma’rifah) refers to an individual’s knowledge about religion. d) religious experience (ihsan) describes the practicality of the religion e) religious consequence (natijah) refers to the importance of religion (rehman and shabbir, 2010). jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 10-23 purchase intention according to kotler and keller (2012) the buying process is all their experience in learning, choosing, using, even disposing of a product, that is their experience in understand, choose, use, or even dispose of the product. the definition of purchase intention is consumer behavior when the consumer is stimulated by external factors and comes along to decide on purchase based on their personal characteristics and processes decision making (kotler and armstrong, 2016). thus, the purchase intention is the consumer behavior in buying process to understand, choose, and use products of their own personal characteristic and process decision making. based on previous studies have shown that purchase intention is affected by halal knowledge, religiosity, attitude, subjective norm, and perceived behavioral control (bonne et al., 2007; bonne et al., 2008; alam and sayuti, 2011; mukhtar and butt, 2012; aziz and chok, 2013; newaz, 2014; ahmad et al., 2015; haque et al, 2015; maichum et al., 2017; pratiwi, 2018). the effect of halal knowledge towards young muslim consumers purchase intention sadeeqa et al. (2013) and mohtar et al. (2014) suggested that the consumers’ knowledge influences their attitude towards the product. sadeeqa et al. (2013) stated that consumer that has good knowledge found out to have positive attitude towards halal medicines. while, the study by mohtar et al. (2014) found 3 out of 5 antecedents of halal knowledge that turns out to be significant positive towards purchase intention on halal product. however, there are few studies (e.g. aziz and chok, 2013; hamdan et al., 2013) have investigated the effect of knowledge on attitudes towards halal food leading into purchase intention. aziz and chok (2013) find that knowledge about halal food positively relates to purchase intentions for non-muslim consumers. aziz and chok (2013) measure the variables including the halal knowledge towards purchase intention using 7point likert scale while the religiosity variable is asked with 1 question on demographic profile of the respondent with 6 point of scale on nonmuslim consumer. in contrast, hamdan, et al. (2013) findings show that there is a weak relationship between knowledge of halal foods and purchasing decision. hamdan, et al. (2013) also measure the variables using 7point likert scale, however, religiosity variable is not included to determine the purchase intention of muslim consumers. based on previous research and explanation stated above, then the following hypothesis is proposed: h1: halal knowledge has a positive effect towards young muslim consumers purchase intention the effect of religiosity towards young muslim consumers purchase intention abundant empirical evidence supports that one’s religion influences consumer attitude and behavior in general related to consumption of halal food (musaiger, 1993; dindyal and dindyal 2003; bonne, et al., 2007; bonne, et al., 2008; mukhtar and butt, 2012; newaz, 2014). bonne et al. (2007) and bonne et al. (2008) found that the muslim consumption of halal meat is quite different from the consumption of “regular” meat for nonmuslims and shows a significant positive relationship between religiosity and purchase intention. in study by newaz (2014) found that religiosity has a significant positive relationship towards purchase intention on islamic financial products (ifps). therefore, the researcher would like to examine the relationship between religiosity and purchase intention of young muslim consumer on halal food product. thus, it is hypothesized that: h2: religiosity has a positive effect towards young muslim consumers purchase intention the effect of attitude towards young muslim consumers purchase intention among the studies that research the relationship between attitude and purchase intention for halal food products is khalek (2014) and pratiwi (2018) who found that there is a positive relationship between attitude and intention to choose halal food products on young muslim consumer, and it supports the studies conducted by (bonne, et al., 2007; bonne, et al., 2008; lada, et al., 2009; alam and sayuti, 2011; kordnaeij, et al., 2013; mohtar, et al., 2014; maichum, et al., jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 10-23 2017) who found that there is a positive relationship between attitude and intention to choose halal food product. based on above statements and from previous research, the hypothesis is stated: h3: attitude has a positive effect towards young muslim consumers purchase intention the effect of subjective norm towards young muslim consumers purchase intention there are few studies that claim subjective norm as an important factor related to attitude and toward intention behavior such as purchase intention (lada et al., 2009; alam and sayuti, 2011; khalek, 2014). lada et al. (2009) and alam and sayuti (2011) found that subjective norm has positive effect towards purchase intention on halal food products. in study by khalek (2014) also found that subjective norm has positive effect towards purchase intention especially on young muslim consumer, however, the family play a less role in choosing halal food products. thus, based on past research, as well as surrounding expectation with regards to consumers’ society can also be seen as an important factor that may influence consumers’ attitude towards halal food products. therefore, the following hypothesis is proposed: h4: subjective norm has a positive effect towards young muslim consumers purchase intention the effect of perceived behavioral control towards young muslim consumers purchase intention a few studies found that perceived behavioral control has positive effect towards attitude of the consumers to perform certain behavior such as purchase intention (bonne et al., 2007; bonne et al., 2008; alam and sayuti, 2011; khalek, 2014; haque et al., 2015; pratiwi, 2018). the study conducted by khalek (2014) and pratiwi (2018) found that perceived behavioral control has positive effect towards purchase intention on halal food products of young muslim consumer. thus, the following hypothesis is stated: h5: perceived behavioral control has a positive effect towards young muslim consumers purchase intention methods the type of research conducted in this research is quantitative research. the method used in this research is survey method using questionnaires as a tool to collect the data. this research was conducted in purwokerto, central java. the subject of this research focus on young adult people. young adults usually refer to individuals between the approximate ages of 16 and 35 (khalek, 2014). the object of this research are halal knowledge, religiosity, attitude, subjective norm, and perceived behavioral control. the data were collected from questionnaire by distributing list of questions and statements that related to the research variables and were filled by respondents. the questionnaire was directly distributed to respondents and through online survey. this research was conducted in september 2019. the type source of data that conducted in this research is primary data that were obtained by distributing the questionnaires to the young consumers regarding to halal food products to explain the relationship between halal knowledge, religiosity, attitude, subjective norm, and perceived behavioral control towards purchase intention. sampling technique the population in this research is the young muslims who lived in purwokerto, central java. because the number of populations in this study is not known in exact number, the method used to determine the minimum representative sample size with the population using intervals estimation method with the following formulations (suliyanto, 2011): 𝑛 = 𝑝. 𝑞. ( 𝑧2 𝑎 𝑒 ) 2 𝑛 = 0.5 × 0.5 ( 1.96 0.1 ) 2 𝑛 = 96.04 𝑛 = 96 the measurement of variable research jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 10-23 likert scale the measurement of the variables in this research are using likert scale that gradations score from strongly disagree to strongly agree. using this measurement scale, the value of the variable is measured by specific instruments can be expressed in the form of numbers, so it will be more accurate, efficient and communicative (sugiyono, 2009). the measurement of attitudes of individuals based on the answers given by the respondents used a likert scale level (suliyanto, 2011). each item scales have 5 categories, ranging from “strongly disagree” up to “strongly agree”. validity testing validity testing is used to measure how valid or not the questionnaire is. the validity of this study will be measured using the product moment correlation formula (suliyanto, 2011), which is as follows: 𝑟𝑥𝑦 = 𝑁 ∑ 𝑋𝑌 − (∑ 𝑋)(∑ 𝑌) (𝑁 ∑ 𝑥 2 − (∑ 𝑥)2)(𝑁 ∑ 𝑦 2) − (∑ 𝑦)2 reliability testing reliability testing is used to measure a questionnaire which is an indicator of a variable or construct. the reliability test of the questionnaire in this study will use the cronbach alpha statistical test (sugiyono, 2009) with the following formula: 𝑟𝑖 = [ 𝑘 𝑘−1 ] [1 − ∑ 𝜎𝑏2 𝜎2𝑡 ] multimple linear regression analysis testing multiple linear regression test is used to predict the behavior of the dependent variable by using more than two independent variables. the factors that are thought to influence the young consumer purchase intention towards halal food products based on this research variable are halal knowledge, religiosity, attitude, subjective norm, and perceived behavioral control which are formulated as follows: 𝑌1 = 𝛼 + 𝛽1𝑋1 + 𝛽2𝑋2 + 𝛽3𝑋3 + 𝛽4𝑋4 + 𝛽5𝑋5 + 𝑒 classical assumption test normality test the normality test is done to find out whether the residual variable has a normal distribution or not. normality testis done by using kolmogrovsmirnov analysis by comparing the distribution of data to be tested for normality (suliyanto, 2011). if the value of kolmogrovsmirnov z < z table, or asymptotic significance > α, then the model is declared to meet the assumption of normality. multicollinearity test multicollinearity occurs when linear correlation that is close to perfect between more than two free variables. the multicollinearity test aims to test whether in the regression model formed there is a high or perfect correlation between the free variables or not. if in the regression model formed there is a high or perfect correlation between the independent variables, then the regression model is stated to contain symptoms of multicollinearity (suliyanto, 2011). to test for the existence of multicollinearity is to see the value of tolerance and the value of variance inflation factor (vif) of each independent variable on the bound variable. if the value of tolerance is more than 0.1 and vif value is not more than 10, then the model does not have multicollinearity (suliyanto, 2011). heteroscedasticity test heteroscedasticity means that there are variants of variables in the same (constant) regression model. conversely, if the variant of the variable in the regression model has the same value, then the regression model occurs inequality of variance from the residual, an observation with other observations. the heteroscedasticity test in this study used the glejser method. if there is a significant effect of independent variables on absolute values, there is a problem with heteroscedasticity in the model. but if the value of t > α (0.05), the model is stated to have no heteroscedasticity (suliyanto, 2011). jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 10-23 linearity test the linearity test is used to find out whether the specifications of the model used are correct or not. with this test, information will be obtained on whether the reverse model is linear, squared or cubic (suliyanto, 2011). ramsey’s method is one method that can be used to test linearity. this method assumes that the correct method is linear equation so the null hypothesis states that the model is linear. instead the alternative hypothesis states that the model is not linear. the principle of this method is to compare the value of f calculated with f table df = (α, m, n – k) (suliyanto, 2011). hypothesis testing coefficient of determination (𝑹𝟐) determinant coefficient is the amount of the contribution of the independent variable to the dependent variable (suliyanto, 2011). the coefficient of determination aims to measure how far the ability of the model in explaining how far the variation of the dependent variable. this shows, the higher the coefficient of determination, the higher the ability of the independent variable to explain variations in the dependent variable. the adjusted coefficient of determination can be calculated using the following formula (suliyanto, 2011): 𝑅2 𝑎𝑑𝑗 = 𝑅 2 − (1 − 𝑝2) 𝑁 − 𝑃 − 1 significant simultaneous test (f test) according to suliyanto (2011), in testing the significance level of the effect of simultaneous independent variables on the dependent variable can be carried out by the f test formula: 𝐹 = 𝑅2/(𝑘 − 1) 1 − 𝑅2(𝑛 − 𝑘) t test t test is used to test whether the independent variables significantly influence the dependent variable (suliyanto, 2011). the value of t statistic can be calculated using the following formula: 𝑡𝑖 = 𝑏𝑗 𝑠𝑏𝑗 results and discussion table 1 provides the demographic profile of the respondents. this research uses 96 respondents as sample. the primary data were collected through direct as well as online distribution of questionnaire to respondents in purwokerto. table 1. demographic profile of respondents characteristics details frequency percentage (%) gender male 52 52 female 48 48 religion islam 97 97 christian 2 2 other 1 1 level of education sma/ smk 38 38 d3 6 6 s1 55 55 other 1 1 age (years) 15 – 19 28 28 20 24 60 60 25 – 29 9 9 30 35 3 3 validity test the validity test result shows all the value of the indicators of the variables are valid because all of the value of r statistic is higher than the value of r table and the value of significance of all indicators of the variables is lower than 0.05. reliability test reliability testing is to measure questionnaire items as indicators of a variable or construct. table 2 shows the reliability test result. table 2. reliability test result variable cronbach’s alpha halal knowledge 0.764 attitude 0.876 subjective norm 0.635 perceived behavioral control 0.647 religiosity 0.609 purchase intention 0.865 table 2 shows that all values of cronbach’s alpha of each variable are reliable because all values of the variables cronbach’s alpha are higher than 0.60. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 10-23 classical assumption test normality test normality test is to determine the distribution of the data. this method defines whether the data is normally distributed or not. table 3 shows the result of normality test using one sample kolmogorovsmirnov test. table 3. onesample kolmogorovsmirnov test asymp. sig. unstandardized residual 0.08 according to table 3, the value of asymp. sig. is 0.08 that is higher than 0.05 which means that the data are normally distributed. heteroscedasticity test the heteroscedasticity test is to determine the variance differences from residual in an observation with other observations. table 4 provides the result of heteroscedasticity test. table 4. heteroscedasticity test result variable significance halal knowledge 0.526 attitude 0.070 subjective norm 0.613 perceived behavioral control 0.442 religiosity 0.467 a. dependent variable: abs res table 4 shows that all significance values of each variable are higher than 0.05, which means that there is no heteroscedasticity problem on the data. multicollinearity test multicollinearity testing is to examine whether there is an existence of a high correlation between the independent variables. table 5 shows the result of multicollinearity test. table 5. multicollinearity test result variable tolerance vif halal knowledge 0.734 1.362 attitude 0.561 1.782 subjective norm 0.579 1.726 perceived behavioral control 0.612 1.634 religiosity 0.638 1.567 table 5 shows that each collinearity tolerance values of each variable are higher than 0.1 and the vif values of each variable are lower than 10 which means that there is no multicollinearity problem on the data. linearity test the linearity test is to examine whether the specifications of the model used are correct or not. with this test, information will be obtained on whether the model is linear, squared or cubic. table 6 shows the linearity test result. table 6. linearity test result variable significance purchase intention * halal knowledge 0.738 purchase intention * attitude 0.166 purchase intention * subjective norm 0.122 purchase intention * perceived behavioral control 0.416 purchase intention * religiosity 0.945 table 6 provides the result that each significance values of each variable is higher than 0.05 which means that there is a linear relationship among halal knowledge, attitude, subjective norm, perceived behavioral control, and religiosity towards young muslim consumers in purchasing halal food products. hypothesis testing coefficient of determination (r2) the coefficient of determination (r2) test is to analyze the regression line to describe the relationship between the independent variables and dependent variable. table 7 shows the coefficient of determination (r2) result. table 7. coefficient of determination (r2) test result model r r square adjusted r square std. error of the estimate 1 .687 .472 .442 1.612 from table 7 it can be concluded that the variable of halal knowledge, attitude, subjective norm, perceived behavioral jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 10-23 control, and religiosity explain the purchase intention of young muslim consumer towards halal food products by 0.472 or 47.2%, while 0.528 or 52.8% are explained by other variables not included in the model. f test the f test is used to examine the simultaneous effect of halal knowledge, attitude, subjective norm, perceived behavioral control, and religiosity towards purchase intention of young muslim consumer on halal food products. table 8 provides the result of f test. table 8. f test result model sum of squares df mean square f sig. 1 regression 208.774 5 41.755 16.068 .000 residual 233.882 90 2.599 total 442.656 95 a. dependent variable: purchase intention (y) b. predictors: (constant), religiosity (x5), halal knowledge (x1), perceived behavioral control (x4), subjective norm (x3), attitude (x2) according to table 8, the value of f statistic is 16.068, which is higher than the value of f table of 2.32 and significance value is 0.000 lower than 0.05. therefore, it can be concluded that the variables of halal knowledge, attitude, subjective norm, perceived behavioral control, and religiosity simultaneously affect purchase intention of young muslim consumers towards halal food products. t test the t test is the type of statistical test that is used to compare the means of two groups. this test is performed to examine the partial effect of each independent variables including halal knowledge, attitude, subjective norm, perceived behavioral control, and religiosity towards purchase intention of young muslim consumers on halal food products. table 9 shows the result of t test. table 9. t – test result hypotheses t t table significance result halal knowledge → purchase intention 0.914 1.99 0.363 rejected attitude → purchase intention 3.812 1.99 0.000 accepted subjective norm → purchase intention 2.072 1.99 0.041 accepted perceived behavioral control → purchase intention 1.916 1.99 0.059 rejected religiosity → purchase intention 3.037 1.99 0.003 accepted ρ = level of confidence 0.95, α = error probability 0.05 table 9 shows that the t statistic of halal knowledge (0.914) towards purchase intention is lower than the value of t – table (1.99) and the value of error probability (0.363) is higher than 0.05, which makes h0 hypothesis rejected. the t – statistic of attitude (3.812) towards purchase intention is higher than the value of t – table (1.99) and the value of error probability (0.00) is lower than 0.05, which makes h0 hypothesis accepted. the t statistic of subjective norm (2.072) towards purchase intention is higher than the value of t – table (1.99) and the value of error probability (0.041) is lower than 0.05, which makes h0 hypothesis accepted. the t statistic of perceived behavioral control (1.916) towards purchase intention is lower than the value of t – table (1.99) and the value of error probability (0.059) is higher than 0.05, which makes the h0 hypothesis rejected. the t statistic of religiosity (3.037) towards purchase intention is higher than the value of t – table (1.99) and the value of error probability (0.003) is lower than 0.05, which makes h0 hypothesis accepted. discussion the focus of this research is to analyze the young muslim consumers purchase intention towards halal food products. using the theory of planned of behavior in understanding their attitude and behavior, the study develops a structural model using variables of halal jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 10-23 knowledge, religiosity, attitude, subjective norm, and perceived behavioral control. the relationship between all variables in the study were tested using the data obtained from questionnaire by asking the respondent directly and through online survey in purwokerto using spss 25. the result provides a number of insights into predicting consumer purchase intention in term of halal concept. out of 5 hypotheses, 3 were fully supported: 1) this research found halal knowledge has no effect towards young muslim consumer purchase intention on halal food products. even though the finding of this study found that the respondents have the knowledge about halal, haram, halal logo, halal certificate of a product and the knowledge that muslim are not allowed to consume a product from a livestock slaughtered without saying “bismillah” and specific ingredients such as: pork, blood, and alcohol, it has no effect towards purchase intention on young muslim consumer because the respondents neither make sure nor pay attention to halal logo or halal certificate when they purchase halal food product. this happened because the respondents already felt at ease when consumed food or beverage product because they believe the product is already categorized as halal food product and it is not harming their body. this result does not support the findings of aziz and chok (2013) who surveyed non muslims and found that halal knowledge has a positive effect towards purchase intention on halal food products since it provides guarantee and quality assurance on nonmuslim consumers. their finding correlates with the study by hamdan et al. (2014) who surveyed muslims and found that the relatively low relationship between halal knowledge towards purchase intention on halal food products. moreover, the results from kordnaeij et al. (2013), mohtar et al. (2014), maichum et al. (2017) show that halal knowledge has indirect positive effect towards purchase intention. this happened because halal knowledge does not directly affect the consumer purchase intention. instead, the consumer purchase intention is indirectly affected through attitude. in fact, this research correlates with the study conducted by ahmad, et al. (2015) who found that halal knowledge has no effect towards purchase intention of the consumer on halal cosmetic products. this is also supported by pratiwi (2018) who have found that halal knowledge has no effect towards purchase intention of young muslims consumer on halal food products in papua province. 2) this study provides the result that the respondents have a positive attitude towards halal food products as they prefer to choose halal food product over non halal food products, because it has good quality such as: cleanliness, healthy, gives safety assurance and it is approved by mui. it makes the consumers trust to consume halal food product as it is important to them and it is in accordance with islamic way of life. this is due to the fact that halal food product that has halal logo or halal certificate has the quality as stated above. this finding correlates with the theory of planned behavior which says that attitude has positive effect towards behavioral intention such as purchase intention. that also correlates with the study by khalek (2014) and pratiwi, (2018) who found that attitude has positive effect towards purchase intention of young muslims towards halal food products. this finding is also supported by the studies by bonne et al. (2007), bonne et al. (2008), lada et al. (2009), alam and sayuti (2011), kordnaeij et al. (2013), mohtar et al. (2014), and maichum et al. (2017) that found that attitude has positive effect towards halal food products. 3) the result from this research indicates that the respondents are affected by their family, relatives, friends, religious figures, neighborhood, teachers, and those that are close to them and muslims in choosing halal food products that have halal logo or halal certificate. this shows that the theory of planned behavior is fully supported the hypothesis in this research that also correlates with the study conducted by lada et al. (2009) and alam and sayuti (2011) that found subjective norm has positive effect towards halal products. although the study by khalek (2014) also correlates with this research result, surprisingly the subjective norms jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 10-23 play less role especially from the family because the young muslims in her study live in urban areas who are more independent in choosing halal food products. while it is the opposite finding with the study by pratiwi (2018) in papua province that found that subjective norm has no effect towards purchase intention of young muslims consumer on halal food, because there are no influence from people close to them to buy halal food products which makes the young muslim consumer to have their own decision to buy halal food product. 4) this research found that the variable of perceived behavioral control has no effect on young muslim consumer towards halal food product. although the availability and the halal food product choices in purwokerto is enough, it shows that the price of halal food product that has halal logo or halal certificate are a bit high that makes it not affordable to them.this shows the opposite finding from theory of planned of behavior stating that perceived behavioral control has positive effect on behavioral intention such as purchase intention. this finding correlates with khalek (2014) and pratiwi (2018) who found that perceived behavioral control has positive effect towards purchase intention of young muslims consumer towards halal food products. it also supports alam and sayuti (2011) and haque et al. (2015) who also found the positive relationship between perceived behavioral control and purchase intention towards halal food products. 5) this research result shows that variable of religiosity has positive effect on young muslim consumer towards halal food product, because the respondents on this research are devoted to their religion as they believe there is no god other than allah swt and prophet muhammad saw is his messenger and they tend to follow the islamic way of life because they know the basic knowledge of islam such as “rukun islam” while in practice to pray at least 5 times a day to show that they are devoted to their religion. moreover, the al quran also plays an important role for the respondents as they believe that it guides them to consume halal food products and they are not allowed to consume food that is prohibited by allah swt. in addition, if they do something that is prohibited by allah swt such as consuming a nonhalal food product, they feel guilty. as stated above, a young muslims that has high religiosity prefers to choose halal food product that has a halal logo or halal certificate on the product to follow the islamic way of life. this finding correlates with the study by newaz (2014) that religiosity has a positive effect towards purchase intention on islamic financial products (ifps) with 5 multidimensions of religiosity. it also supports mukhtar and butt (2012) who found that religiosity has positive effect towards purchase intention. however, the study used only 2 dimensions of intrapersonal and interpersonal religiosity. the interpersonal religiosity fails to influence the purchase intention towards halal food product. furthermore, the study conducted by bonne et al. (2007), bonne et al. (2008), and ahmad et al. (2015) also used the variable of religiosity towards purchase intention on halal food product. however, the variable of religiosity was used as a mediating variable. conclusion based on the result on this research and discussion, this research is summarized as follows: 1) halal knowledge has no effect on young muslim consumer towards halal food product. 2) attitude has positive effect on young muslim consumer towards halal food product. 3) subjective norm has positive effect on young muslim consumer towards halal food product. 4) perceived behavioral control has no effect on young muslim consumer towards halal food product. 5) religiosity has positive effect on young muslim consumer towards halal food product. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 10-23 references abdullah, a. n. 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(1986). on the meaning and measurement of religiosity in consumer research. journal of the academy of marketing science, 14(1), 47-56. correspondence to : sarisurya@eb.unand.ac.id received: 14 august, 2021 accepted: 7 september 2021 published: 30 september 2021 jurnal akuntansi, manajemen dan ekonomi vol.23, no. 3, 2021, pp. 46 55 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction business disruptions are unexpected events that affect business continuity. research conducted by bartik, et al (2020) in the us regarding business disruptions that occur due to covid-19 shows that 43% of msmes are forced to close temporarily. this number was much higher than the influenza epidemic that occurred in 1918 (garret, 2008). msmes that are closed are due to reduced demand from consumers due to low purchasing power and the sake of maintaining the health of their employees. according to bartik, many msmes have reduced the number of employees by 40% since january 2020. in addition to business disruptions, many msmes are experiencing financial fragility; namely, unstable company financial conditions, do not have sufficient funds in hand, or savings (cash on hand) cannot pay costs, and in the end, the company cannot survive the crisis (gutter & salem, 2005). the trigger for financial fragility is if debt exceeds income, uncertain income every month, and financial difficulties during the last 12 months, which is unlikely to improve (poh & sabri, 2017). according to daud, et al (2018), the financial condition experiences fragility if the company is unable to meet its operational needs, is unable to cope with unexpected costs, and is unable to survive in the event of a financial crisis. if the covid-19 pandemic occurs in the long term, it is predicted that there will be many financial fragility in msmes in indonesia. business disruptions, financial fragility and resilience strategy: exploration of impact of the covid-19 on micro, small and medium entreprises sari surya1, ma’ruf2 1,2 department of management, faculty of economics, universitas andalas, indonesia abstract the covid-19 pandemic has impacted the world economy, including micro, small, and medium enterprises (msmes). this study aims to find out how the conditions of msmes during the covid-19 pandemic, which led to business disruptions and financial fragility in most of the msmes in indonesia. are msmes able to survive in an uncertain economic situation, or will they give up by closing their business forever or looking for new business strategies? this research was conducted with a qualitative approach and data obtained from semistructured interviews with msmes in padang city, indonesia. data was analyzed with content analysis. the findings reveal several main themes related to business disruptions, financial fragility, and resilience strategy. the central theme related to business disruption is the creation of obstacles resulting from the covid-19 pandemic. meanwhile, the central theme of financial fragility is about the adequacy of cash to run a business. finally, a theme related to the resilience strategy is the importance of adaptation. although most of these msme businesses experienced a decline in business, several sectors experienced increased demand and sales, especially those related to necessities, health and hygiene products. keywords business disruptions; financial fragility; resilience strategy; covid-19; msmes jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 45-55 amid a business disruption situation and the threat of financial fragility to msmes, not all msmes are affected. msmes engaged in the health sector experienced less disruption, as did msmes that produced consumer goods and services that were close to the community's needs. the drastic decrease in income from the community does not affect the demand for goods and services at these msmes. msmes can even absorb labor, although the numbers are limited. business adjustment (adaptation) can occur because, in general, msmes utilize local resources, both human, capital, raw materials to equipment. also, most of the needs of msmes do not rely on imported goods. and also, in general, the msme business is mostly financed by own capital (saputri, 2020) in indonesia, the number of msme business actors affected by the covid-19 pandemic is around 37,000 msmes. it is estimated that it will continue to grow if the covid-19 outbreak does not stop soon. of the 37,000 msmes, 87 percent were affected at the micro-level, with 54.2 percent having no business savings. as many as 56 percent of msmes reported a decrease in sales, 22 percent admitted that they had difficulty in the capital, 15 percent reported that distribution was delayed, and 4 percent reported difficulties in raw materials. if these business disruptions occur continuously without sufficient money in hand, it can be predicted that financial fragility will occur, which will lead to the cessation of company operations, either temporarily or permanently. although some msmes have implemented a survival strategy to adjust (business adjusting) to current business conditions, it is hard to predict whether it will last in the long term or only in the short term. this study explores business disruptions in msmes, their impact on financial fragility, and how msmes strategies can survive or adapt to the current economic situation. the exploration is focused on the owner/ manager's point of view. literature review and propositions business disruptions the covid-19 pandemic has created disruption or to the sustainability of msme businesses. as described by netz, svensson, and brundin (2019), business disruptions is an unexpected event that affects business sustainability. the covid-19 pandemic impact on small and medium-sized businesses is quite diverse, from temporarily closing their businesses, laying off their employees, and the most extreme is closing them forever (bartik et al. 2020). the risk of business closure occurs because of the decline in daily income from these small and medium-sized businesses (amindoni, 2020). meanwhile, according to masduki (2020), in general, the disturbances experienced by msmes in indonesia due to the covid-19 pandemic are: (a) decreased sales, (a) difficulty in obtaining raw materials, (c) obstruction of distribution, (d) difficulty in capital and (e) production bottlenecks. the current disruption to the msme business is different from the previous economic crisis, such as in 1998. at that time, msmes were the savior of the country's economy because some of their products could still be exported abroad. however, currently, msmes are getting different or can be said more severe disruptions because globally, all countries’ economies have experienced a decline in performance (rezkisari, 2020). in more detail, the covid-19 pandemic does not necessarily create deadly disruption to all msme sectors. msmes that experience severe disruption are those that require daily interactions. this business group is like retail, except for groceries, entertainment, restaurants, cafes, and tourism (bartik, et al., 2020). this group is very seriously disturbed because of restrictions on human movement, whether voluntary or due to lockdown/quarantine regulations. as stated by masduki (2020), there are msme sectors that have increased during a pandemic, such as outdoor and indoor hobbies that have increased by up to 60%, health products increased by 90% and herbal food products increased by 200%, and raw materials up 300%. based on the description above, proposition 1 is formulated as follows: in jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 45-55 general, the covid-19 pandemic will have a negative impact in the form of disruptions on the performance of msmes and create opportunities and increase sales in several business sectors. the further question is, how many have experienced disruption and how many get new opportunities and experience increased sales? then do businesses that depend on daily interactions with consumers not get any opportunities at all? financial fragility one of msmes' main characteristics is that there is no separation between business financial management and household finances (haynes and avery 1996). it often becomes a source of problems at certain times, such as a business financial crisis, and creates a greater risk for business continuity (coleman & cohn, 2001). the mixing of family and household financial management is believed to cause both businesses and households' financial fragility. it means that the vulnerability of household finances can be regarded as the fragility of a business. the fragility of household finances as described by brunetti et al. (2016) is a situation of households that are able to pay expected expenditures (planned annual expenditures, i.e., annual perishable consumption, payments for rent and/or debt, maintenance payments, and insurance) but do not have sufficient liquidity to cover expenses. unexpected (i.e., restoration of their capital stock, such as cars, housing, and other household items, unexpected medical expenses, or temporary loss of income). the last point in the definition of financial fragility above is the loss of income, while this is relevant if it is related to the impact of decreased sales as a result of the covid-19 pandemic. one of the effects of the loss of income experienced by msmes at this time is the inability to pay creditors, so that the government has to intervene in calling for a loosening of credit payments (setiawan 2020). yusof, rokis, and jusoh (2015) stated that in countries with quite developed economies, one-fifth of households living in large cities such as kuala lumpur is included in the financially fragile group because they are unable to fulfill their obligations and expenses during three months in the event of an unexpected event such as a disaster or loss of work. based on the characteristics possessed by small businesses, inseparable financial management, and the high potential for financial vulnerability, it is suspected that the covid-19 pandemic will impact the increase in small businesses that are categorized as financially fragile. meanwhile, studies conducted in developed countries show that the small size considered vulnerable to crises is not always correct. a study conducted by bartz and winkler (2016) shows that small businesses are no more vulnerable to medium enterprises. small firms show a relative growth advantage over large firms during times of stability and crisis, and this shows the advantage of flexibility with small size. on the other hand, young firms, which show more robust growth in stable times, have been negatively affected by the crisis. based on this discussion of financial fragility, proposition 2 is formulated as follows: the covid-19 pandemic crisis can cause companies to experience financial fragility. the next question is whether the msmes in the city of padang experience financially fragile during the covid-19 pandemic? resilience strategy business disruptions and financial fragility, as discussed previously, are thought to cause the death of msmes due to the covid-19 pandemic. these affected businesses still have hope for survival with a resilience strategy. in general, de waal and mollema (2010) suggested to do the following to face the crisis, namely: (a) focus on cost reduction, (b) focus on core operations, (c) downsize, (d) strengthen the internal organization, (e) focus on increasing turnover and margin and (f) exploit opportunities. meanwhile, the first thing to do for small businesses is to identify the existing and remaining capital. capital is not just about cash but also buildings, equipment, networks, brands, and ideas. businesses affected by the crisis invest in the remaining and functioning jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 45-55 capital and identify the potential and opportunity attached to this capital. as naidoo (naidoo, 2010) explained, small businesses that can survive a crisis are businesses that can manage internal capital. apart from the ability to carry out internal consolidation, the second key to surviving the crisis is a market orientation (naidoo, 2010). in this era of globalization, a business's small activity in the corner of another country can be known by the whole world. business people can get ideas from various parts of the world on how to survive a crisis to still run even by diverting. observe and follow the world's best companies in the face of the current crisis. benchmarking can also strengthen an optimistic mindset. it turns out that this crisis is not the end of everything. company can use an unusual strategy in marketing its products. the strategy is to attract donations and not even sell this product to the public, only to hospitals. for example, a confectionery company that produces ppe mobilizes donations from people who intend to help medical personnel but in the form of ppe. some restaurants make programs for every pack of online orders; one pack will also be given for the online motorcycle taxi driver. there are grocery sellers who have switched to the online system and open donations to distribute basic foodstuffs to low-income families around or in their neighborhood. then what about the accountability. in this era of connectedness and social media, accountability can be done quickly and instantly, for example, by only posting on social media. the third key is market innovation. small businesses affected by the covid-19 pandemic can contain simple plans of what can be done with capital that still has potential and market opportunities that still exist and the adoption of ideas from businesses that remain in crisis conditions (siakas, naaranoja, and siakas, 2014). some businesses that do divert include a convection company, which is currently turning from producing clothing to a company that produces personal protective equipment (ppe) and masks. there are also cosmetic companies that currently produce sanitizers. diverting carried out by several companies, as exemplified above, does not only ensure business continuity. an equally important point is the investment in brand image. here we can see that the business principle is to make a better life and save, even in a crisis. the key is diverting. actually, the methods above are not new ideas or knowledge. this method of donation has been used for a long time. for example, a bottled water company that used to campaign that every purchase of one bottle of drinking water would donate rp. 100 to make clean water wells in areas that do not yet have access to clean water. there are also cosmetic companies that use raw food from large non-plantation farmers or women farmers. consumers are charged premium prices to compensate for the higher price of raw materials and the mission to empower the community. often such methods are called sustainable or responsible strategy or cause marketing. based on the discussion about this survival strategy, proposition 3 can be developed as follows: theoretically and practically, msme businesses can survive the crisis if they carry out a survival and recovery strategy. how do msmes in padang carry out this strategy to face the covid-19 pandemic crisis? methods this type of research is exploratory research. exploratory research aims to provide a little definition or explanation of the concepts or patterns used in research. in this study, the researcher did not yet have a description of the research concept or definition. researchers will ask questions to explore further information. this research's nature is creative, flexible, open, and all sources are considered important sources of information. the purpose of this exploratory research is to make new topics more familiar to the wider community, provide a basic overview of the topics discussed, generalize ideas and develop tentative theories, open the possibility of further research on the topics discussed, and determine the techniques and direction that will be used in subsequent studies. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 45-55 this study aims to identify business disruption, financial fragility, and msme survival strategies during the covid 19 pandemic based on the owner/manager's perspective. the analysis unit is the owner/manager of micro, small, and medium enterprises (umkm). msmes that become participants must be at least one year old (established before the pandemic). there are 32 umkm who participated in this research. this research data is primary data obtained from the results of interviews with participants to obtain the information needed. the interview is a semi-structured interview, where the interviewer is armed with a set of core questions that can later be developed according to the interview process's development. these questions are designed to guide the conversation activities in the interview and lead to data collection that a researcher is expected to get to answer the questions in his research. interviews were conducted by telephone, considering that the application of social distancing was still in effect and recorded in the form of voice audio. interviews were also conducted in person if the participants wanted a direct interview. however, this face-to-face interview was only conducted with a few participants. interviews are conducted for 40 minutes 1 hour. after the interview is conducted, the voice data results are processed into text data or what is called the transcript process. the interview transcripts were then analyzed using the content analyst method according to berelson & kerlinger (ahmad, 2018), content analysis is a method for studying and analyzing communication systematically, objective, and quantitatively to visible messages. in qualitative research, content analysis is emphasized on how the researcher interprets the contents of the communication, reads the symbols, and interprets the content of the symbolic interactions that occur in the communication. results and discussion characteristics of the msmes this study completed thirty-two semistructured interviews with owners, managers, owners, and managers of msmes in padang city. the characteristics of these participants are displayed in table 1. table 1. characteristic of participants steps in content analysis a typical starting point for qualitative content analysis is started with transcribed interview texts. the qualitative content analysis aims to systematically transform a large amount of text into a highly organized and concise summary of key results. analysis of the raw data from verbatim transcribed interviews to form categories or themes is a process of further abstraction of data at each step of the analysis. the initial step is to read and re-read the interviews to get a sense of the whole, i.e., to gain a general understanding of what participants are talking about. at this point, ideas about what the main points or participants expression is already identified. then the process continues to divide up the text into smaller parts, namely, into meaning units. the further process is to condenses these meaning units. while doing this, the core meaning is retained. the next step is to label condensed meaning units by formulating jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 45-55 codes and then grouping these codes into categories. business disruption the results of the analysis of the transcript of the interview revealed a theme, namely obstacles. this obstacle is a trigger for business disruption experienced by msmes during the covid 19 pandemic. these obstacles can be categorized into five categories, namely: consumers, supply, government regulation, risk and transportation. the obstacle related to consumers is the occurrence of panic buying which causes disruption of services carried out by msmes. many consumers also get untrue information (hoax) which creates fear and delays or even cancels the desire to carry out transactions. furthermore, consumers also experience a decrease in purchasing power as a result of the cessation of economic activity in their place of work. consumers during this pandemic are also more selective in consuming and more focused on consuming products that can increase immunity. further resistance is caused by interruptions in supply. at the beginning of the pendemic period, panic buying and the implementation of lockdowns caused disruption in the inventory of merchandise and raw materials. this causes the disruption of the ability of msme players in most sectors to serve their consumers. the categorizing results also revealed that government regulations also caused obstacles to msmes, although this was intended to prevent wider transmission of the covid 19 virus. government regulations such as restrictions on operating hours, health protocols, work from home and basic food supplies from the government cause disruption to the business operations of msmes the risks posed by the covid 19 virus are also a source of obstacles to normal business operations. this happens because consumers are afraid of contracting this disease during transactions or receiving services from msmes. for example, as stated by one of the participants of umkm players. p6_"yang pasti kebanyakan customer xxxxxxx itu dine-in. waktu pandemic itu tanpa adonyo larangan dari pemerintah, itu masyarakat pun alah takuik juo untuk datang ka coffee shop atau tampek makan. jadi yoo ooo imbasnyo sangat terasalah untuk usaho wak ko”. apart from the fear that comes from consumers, the risk of contracting this infection is also feared by the businessmen and their employees. for example for a laundry business where dirty clothes are a medium that can spread the covid 19 virus. this is certainly an obstacle for laundry entrepreneurs to be able to continue running their business, as conveyed by one of the participants: p29_”....paling hambatanya yaitu yaa saya takut juga kan menerima pakaian kotor gitu kan rata rata kan kita nggak tau kan orang itu terkena atau otg atau gimana gitukan. ya biar safety saya mewajibkan dengan setiap cuci baju konter itu mencuci tangan tiap sebentar, jadi pembersihan area konter itu tiap sebentar” the final category of barriers relates to transportation. businesses experience obstacles due to the disruption of transportation services. for businesses that depend on supplies from other regions such as java, the covid 19 pandemic has delayed the delivery of goods. this is related to the lockdown, flight service cessation, and many roads being closed. financial fragility based on the theoretical discussion, business disruption has a relationship with financial fragility, especially in the context of msmes. the covid 19 pandemic has had a real impact on business disruption and then financial fragility. the content analysis conducted found four categories related to the jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 45-55 theme of cash adequacy as the central theme in the financial fragility variable. there are three categories of findings related to cash adequacy. covid 19 has an impact on the working capital of msmes. the covid 19 pandemic has caused msme to experience financial fragility, forcing them to look for alternative working capital sources, such as finding inventory sources from nature and forests or using savings or reserves. the next finding is a category related to retained earnings that affect cash adequacy. among these participants, some businesses have set aside a portion of their operating profits as retained earnings. as a result, at the time of the covid 19 pandemic, they used retained earnings or reserves to ensure sufficient cash. however, under the original purpose of retained earnings, it should be used for business development. however, at this time, it had to be used to help provide cash adequacy. the findings of the next category are about financial planning. the findings show that there is a lack of financial planning in these msmes. this can be understood because, for msmes, financial planning or budgeting has not become a concern. as a result, they do not have a contingency plan for dealing with emergencies like this. this certainly has the opportunity to increase the risk of financial fragility. resilience strategy the discussion on resilience strategies resulted in findings on the theme of adaptation as the primary strategy for surviving the covid 19 pandemic. under this adaptation theme, there are five categories presented by the participants. the first choice for adaptation of msmes is to follow health protocols. health protocol is believed to be a way to sustain the business. this is quite reasonable because business actors and customers' perceptions of covid 19 are the same, which is risky. as a result, adherence to health protocols is one category of strategy, although there are still varying standards and levels of implementation in practice. at least this will psychologically impact the feeling of safety. as stated by one participant: p23”adaptasi yang pertama yaitu pendekatan secara individual jadi lebih banyak kita ibaratnya jemput bola, meyakinkan customer bahwasanya xx barber shop dalam keadaan safety, dalam keadaan aman untuk didatangi. dan tetap mengikuti protokol kesehatan pemerintah sehingga customer tidak perlu cemas untuk datang ke barber shop itu”. the next category of adaptation strategies is service, either by adopting a delivery order system, adjusting to consumers' tastes or desires, or by visiting consumers and adjusting service hours. during the covid 19 pandemic, in several business sectors, this service's adaptation was needed. for example, in the food business, consumers will avoid leaving the house, and here delivery services are needed because of the lockdown. the most widely discussed adaptation during this pandemic, namely the use of technology, was also found in this study. msmes who were participants explained that they had adopted technology by selling products online and using social media as a forum for promotion. an interesting finding from this study is the existence of an expansion strategy during the covid 19 pandemic. some businesses choose to add product variations, find new customers, and offer new products. of course, this strategy cannot be applied to all types of businesses. the last category of adaptation strategies is survival, in which smes try to retain old customers and adapt services to the current situation. one of the consequences of this strategy is a decrease in profit margins to maintain business operations. this is a tradeoff that must be accepted, but with the belief that the effort can be sustained. apart from the strategy category, this study also found that the adaptation carried out by msmes has several characteristics. these characteristics are divided into three categories. the first category is attitude. the jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 45-55 adaptations carried out by msme actors are related to the attitudes of msme actors. adaptable actors tend to have an optimistic attitude, while others have a skeptical attitude. the adaptation strategy is also related to the orientation that the msmes have. most of the findings indicate that currently, the adaptation strategy carried out by msmes is still shortterm oriented, where the goal is to survive. also, their motivation is still based on adherence to health protocols required by the government. conclusion and recommedation this research is an in-depth exploration of the conditions of msmes during the covid 19 pandemic, which began to impact business operations since the implementation of the psbb policy in the city of padang. the research context at msmes provides an opportunity for this research to conduct indepth discussions on a specific scope, according to exploratory research characteristics. based on the semi-structured interviews' findings analyzed using the content analysis method, several prominent themes related to business disruption, financial fragility, and resilience strategy were found. the central theme related to business disruption is the creation of obstacles resulting from the covid 19 pandemic. meanwhile, the central theme of financial fragility is about the adequacy of cash to run a business. finally, a theme related to the resilience strategy is the importance of adaptation. although most of these msme businesses experienced a decline, several sectors experienced an increase in demand and sales, especially those related to necessities and health and hygiene products. this study's findings can be addressed by various parties related to and with interest in msmes. for example, consumers, business actors themselves, suppliers, and the government. for consumers, this finding can provide an idea that msme actors themselves relatively pay attention to health protocols to demonstrate and build security from the risk of being exposed to the virus. meanwhile, for msme actors themselves, this study's results can be a reference that survival strategies can be carried out with various adaptation categories. for suppliers, this study's results can be a guide for making decisions to maintain business relationships with msme players. finally, the government, especially those that issue policies on health protocols and policymakers in the economic sector, can formulate various policies that accommodate the covid 19 virus's spread prevention and control. however, at the same time, they can still encourage economic 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(2014). family businesses in the new economy: how to survive and develop in times of financial crisis. procedia economics and finance, 9(14), 331-341.” procedia economics and finance 9(14):331–41. sukmana, yoga. 2020. “corona buat laju pertumbuhan ekonomi indonesia kian berat.” home money whats new. retrieved may 15, 2020 (https://money.kompas.com/read/2020/02/2 8/223000126/corona-buat-lajupertumbuhan-ekonomi-indonesia-kianberat?page=all). de waal, andré, and esther mollema. 2010. “six courses of action to survive and thrive in a nal academy of sciences 105, 1259312598. jurnal akuntansi, manajemen dan ekonomi , vol. 23, no. 3, 2021, pp. 45-55 404 not found not found the requested url was not found on this server. apache/2.4.18 (ubuntu) server at jos.unsoed.ac.id port 80 journal of accounting, management, and economics vol. 20, no. 1, 2018, pp. 11-15 published by faculty of economics and business, universitas jenderal soedirman published online on january 8, 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 online issn: 2620-8482  correspondence to: universitas jenderal soedirman, indonesia. e-mail: tiladela.luhita@gmail.com received: november 30, 2017 revised: december 14, 2017 accepted: december 28, 2017 introduction retail business is a type of business which is directly in contact with consumers. many companies are very reliant towards retailers because the companies do not have any direct distribution channel to reach the customers. therefore they utilize the retailers to reach out their customer. in general, retail business does not produce the products nor sell them to retailers, but directly to consumers for personal and non-business use. the organization or someone who runs the retail business is called a reseller. in practice, retailers purchase large quantities of goods or products from producers, either directly or through wholesalers, and then resell them in small amounts. in indonesia, the first retail business was sarinah department store which is born in the 1960s. the market was growing slowly at that time until the 1990s which was the starting point of rapid retail industry growth in indonesia. today, the retail industry in indonesia is significantly declining, with retail companies such as hero, ramayana, 7eleven, and hypermart are closing down in 2017 as a result of the retail industry's downfall. purwokerto, as one of the developing cities in central java, has several places that crowded with consumers. one of the biggest is rita supermall. rita supermall is the first mall in purwokerto, the opening was held on 22nd december 2016. located in the downtown right in front of the city square and the local government headquarters. so it lies precisely in the center of the crowd. referring to the decline of business retail, it is advisable to rita supermall to pay attention to some things in order not to face the same thing as other retail stores. to face the downturn of the retail industry that has been experienced by several big companies in various cities, a strategy to retain the customer in necessarily needed. when a consumer visits a store, service environment is the first aspect perceived, and at this stage, the consumer will form the first impression of service that may later be accepted. when consumers feel positive service environment, it will form a good impression about the service to be received from the retail. consumers, therefore, see the importance of service environment to form a good impression in the minds of consumers (hooper, coughlan, & mullen, 2013). one way to provide a good service environment is through servicescape. servicescape is a physical environment that plays a role in creating a purchasing experience (fernandes & neves, 2014). it is said that servicescape has an essential role in influencing consumer perceptions and behavior and can also be used as a trigger of behavior in the future (pareigis, 2012). various researchers have proven the importance of quality service in forming a customer satisfaction. it is because customer satisfaction has long been described as the essential role for success. many pieces of research showed that quality and satisfaction had been linked to customer behavioral intentions like loyalty intention, reducing complaints, willing to referral and spread word of mouth. therefore, it is clear how important is customer satisfaction. the roles of servicescape in the retail business tiladela luhita faculty of economics and business, universitas jenderal soedirman, indonesia abstract retail business is a type of business which is directly in contact with consumers. currently, the retail industry in indonesia is significantly declining, with retail companies are closing down in 2017 as a result of the retail industry's downfall. referring to the decline of business retail, it rita supermall, the first mall in purwokerto, have to pay attention to some things in order not to face the same thing as other retail stores. one way to retain customers is by providing an excellent service environment through servicescape to achieve customer satisfaction. this research conducted in banyumas regency, with limited area selection that is around purwokerto. the sample in this research is determined by nonprobability sampling technique as much as 100 respondents that are by purposive sampling method, and multiple regression is employed to analyze the data. the results show that all of the hypotheses are accepted, it means all of the dimensions of the servicescape positively influence customer satisfaction. keywords ambient; space and function; signage; servicescape; customers satisfaction journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 11-15 12 literature review servicescape zeithaml, et al. (2009) defined servicescape as “the environment in which a service is delivered and in which the firm and the customer interact, and any tangible commodities that facilitate performance or communication of the service. booms, et al. defined servicescape as “the environment in which the service is assembled and in which seller and consumer interact, combined with tangible commodities that facilitate performance or communication of the service." both definitions disclose that servicescape is a combination that is formed by several service dimensions which play as a intermediaries service performance and the customers. three critical aspects of servicescape are suggested by bitner, they are: ambient conditions is the characteristics of the environment on our five senses (e.g., temperature, air quality, noise, music, odor). for example, how music affects customers, in a restaurant people tend to eat faster when there is a fast tempo music played in the background. the same goes for retail business, music will affect customers pace of shopping. another five senses that are affected by this ambient condition is for example smell. people will feel uncomfortable when they notice some unpleasant smell around. space/ function is the arrangement, size, and shape of furnishings, counters, machinery, equipment and those abilities to facilitate performance. customers are likely to favor a layout that designed to minimize discomfort when they cannot rely on the employees to assist. for example, the cashier desk better to be placed at easily accessible and spacious spot to speed up the transaction process. signs, symbols, and artifacts are the explicit or implicit signals to communicate firm's image, help consumers find their way or convey rules of behavior (e.g., signage, personal artifacts, style of décor). signage also plays some important roles in communicating company's image, for example, a company that likely put "non-smoking" signage is appeared to be family-friendly. customer satisfaction customer satisfaction is a “post consumption” experience which compares perceived quality with expected quality (kwong, 2016). it is stated that the customer tends to value the physical environment from as the essential determinant of customer satisfaction when services are consumed primarily for hedonic purposes, and customers spend moderately to long periods of time in the physical surroundings. it was also suggested that there is a definite effect of consumers' perceptions of the servicescape on the level of satisfaction with a service provider. when a company wants a business effectiveness, they have to aim at least customer satisfaction because it helps not only for the business sustainability but also customer retention (kwong, wong, and chan, 2009). as customer satisfaction plays a huge role and has a special connection with servicescapes, so we have use customer satisfaction as one of the variables in our conceptual framework in studying the role of servicescape in the context of retail business. h1 : the ambient condition will have a positive effect on customer satisfaction. h2 : space and function will have a positive effect on customer satisfaction. h3 : signage will have a positive effect on customer satisfaction. methods this research is descriptive and quantitative with survey method. data collection was done by using questionnaire. data obtained through several questions asked to respondents in the form of a questionnaire in the form of open and closed questions. the data used in this research is sourced from primary data and secondary data. primary data, i.e., data obtained in the field through questionnaires from selected respondents. secondary data, i.e., data obtained from other sources relevant to the topic of research, such as from literature studies, in the form of journals, newspapers and internet articles. this research was conducted in banyumas regency, with limited area selection that is around purwokerto. the sample in this research is determined by non-probability sampling technique as much as 100 respondents that are by purposive sampling method, where the research sample is chosen subjectively based on specific criteria and considerations relevant to the research. the consideration used in this research is the respondent is the visitor of rita supermall purwokerto, has visited rita supermall at least once and able to make decisions independently (aged 15 years and above). tools employed in this research is multiple linear regression analysis. before the questionnaire is distributed to the respondents, validity and reliability were conducted to test out the questionnaire. validity is the level of accuracy of the use of the tool against a symptom, indicating the extent to which a measuring device measures something to be measured. reliability is an index that indicates the extent to which a measuring device can be trusted or relied upon. when a measuring device is used twice to measure the same symptoms, and the measured results are relatively consistent, then the gauge is reliable. journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 11-15 13 results and discussion the table above is the characteristic of respondent based on demography condition. most of the respondents are women (67%), this is because most women enjoy shopping activities to fill their spare time, either alone or together with colleagues and their families. while most male respondents stated that they visited retail stores just to buy the goods that are needed. male respondents also stated that they prefer to spend leisure time with other activities compared to visiting retail stores. the most dominant age group was in the 21-25year age group (35%). the reason is that respondents in this age group have more spare time because most of them are still students. students likely to spend their time hanging out with friends after school hour. unlike the age group > 25 years, most of them are busy enough to frequently visits rita supermall due to family and work. most respondents spend 2-3 hours when visiting rita supermall. respondents state that after buying what they need, they usually spend the time by looking around. there is just a small number of people who spend more than 4 hours. this group expressed that they visit rita supermall in relatively long duration because they don't visit rita supermall that often. they usually allocate specific time to visit and carry out some activities at once, e.g. watching a movie, shopping, and culinary activity. the test results using multiple linear regression states that hypothesis 1, namely ambient condition has a positive effect on customer satisfaction is accepted. the ambient condition is made up of background music, lighting, temperature, air quality, and overall ambient. respondents state that overall ambient in rita supermall is reasonably good and it is one of the points that cause them to stay longer. the background music, rita supermall often plays some modern and current favorite songs. moreover, it is said that rita supermall also plays music based on the occasion, for example, christmas or another holiday. some customers express that the lighting and temperature are quite nice inside the store. there is an adequate brightness inside the store that helps the customers look around. here the respondents state that the parking area needs a little bit adjustment about the air circulation because it feels slightly hot. however, overall ambient makes the customer adequately satisfied with the service performance. hypothesis 2, namely space and function have a positive effect on customer satisfaction is accepted. space and function nowadays become one of the considerations for the customer when they decide to visit a store, for example, they tend to avoid a store which has no parking area. parking area nowadays becomes one of the most necessary facility to be expected from a store because fewer people use public transportation. although it is expressed that the parking area is somewhat hot, the respondents do not mind because they do not spend much time in the parking area. besides, the parking area is quite spacious, and they do not have to be afraid of running out parking slot. respondents state that some facility in rita supermall performs appropriately. it has a decent restroom that always kept clean and has some janitor standby. a good appreciation is delivered for rita supermall for providing restrooms in every story of the building. this overall condition of space and function in rita supermall satisfied the customers. hypothesis 3 namely signage has a positive effect on customer satisfaction is accepted. signage in a massive place like a supermall is critical. people tend to experience the confusion when they do not know where they should head to. sign zoning in rita supermall stated to be excellent. every zone has their own sign written in a big and broad enough to see clearly or even the arrow that shows the direction. people will easily find where the restroom or other section they look for. for example, in the grocery section, they find so many signage that shows where is meat, snack, or toiletries section. rita supermall always puts some special efforts in every special holiday. they decorate the store with unique ornament based on the holiday. for example, they put a huge christmas tree around december, or they decorate the store with red and gold as dominant color at chinese new year. this overall signage and decoration successfully please the customers. all of the hypotheses in this are accepted and this current findings are also support the argument of raza (2011) which is excecuted on restaurant industry in pakistan. is is stated that three dimensions of servicescape have significant effect on increasing customer satisfaction. conclusion rita supermall, one of the highly visited place in purwokerto, successfully satisfy the customer by providing some useful service performance. based on the data analysis, three dimensions of servicescape in rita supermall manage to fascinate the customer. they are the ambient condition, space and function, and signage. all of them positively affect the customer satisfaction. by this results, the company should improve the service performance by using servicescape as one of the guidelines. it is highly recommended for rita supermall to adopt servicescape as their organization's strategy, for example, they have to pay attention to the music they play while the customer proceeds the shopping activity. if they want the customer to stay a little longer to motivate them to buy more, it is suggested they better choose the favorable music for the customers. the company also have to keep it in mind that the space they provide is adequate and facilitate the customer with some well-performed equipment. the last servicescape dimension that journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 11-15 14 has to be paid attention to is signage. placing vital sign in a suitable spot is critical because it does not only guide the customer's way but also communicate the firm's image. reference fernandes, t. and neves, s. (2014). the role of servicescape as a driver of customer value in experience-centric service organizations: the dragon football stadium case. journal of strategic marketing. hooper, d., coughlan, j., and mullen, m. (2013). the servicescape as an antecedent to service quality and behavioral intentions. journal of services marketing, 27(4). kwong, c. k., wong, t. c., and chan, k. y. (2009). a methodology of generating customer satisfaction models for new product development using a neuro-fuzzy approach. expert systems with applications, 36(8), 11262-11270. kwong, l. (2016). the role of servicescape in hotel buffet restaurant. journal of hotel & business management, 6(1). pareigis, j. e. (2012). exploring internal mechanisms forming customer servicescape experiences. journal of service management. 23, 677-695. raza, k. impact of servicescape on customer satisfaction. internasional journal of. economics, business, and social sciences, 1(1), 47-66. zeithaml, v. a., bitner, m.j., and gremler, d. d. (2009). services marketing: integrating customer focus across the firm. boston: mcgraw-hill/irwin. journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 11-15 15 list of table table 1 characteristics of respondents based on the gender sex % male 33 female 67 total 100 table 2 characteristics of respondents based on the age age group % 15 20 y.o. 15 15 20 y.o. 35 26 30 y.o. 25 31 -3 5 y.o. 20 < 35 y.o. 5 total 100 table 3 characteristics of respondents based on the visit duration visit duration % < 1 hr 17 1 2 hrs 20 2 3 hrs 45 3 4 hrs 12 > 4 hrs 6 total 100 list of figures figure 1 research model ambient condition space and function signage customer satisfaction correspondence to : alisatrinawarini.unsoed@gmail.com received: march, 2019 accepted: march, 2019 published: march, 2019 jurnal akuntansi, manajemen dan ekonomi vol. 21, no. 1, 2019, pp. 8-12 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the study of public sector motivation starts with the concept of the new public management (psm) that has not holistically explained the mechanism for improving the performance of public organizations (lapsey, 2009). this statement agrees with the meek’s opinion (2010) about the challenges in improving the quality of public services due to the strong tradition of bureaucracy. this condition causes minimal attention to motivational aspects that influence the individual behavior in public sector. through an in-depth literature review, grimmelikhuijsen (2017) concluded that psychological and behavioral aspects need to be integrated in public administration studies. the development of psm concept could be found in various research results regarding its influence on the attitudes and behavior of public sector employees. kim‘s research (2006) in the public sector in korea proved that psm influenced on organizational commitment, job satisfaction and organizational citizenship behavior (ocb). this finding was confirmed by the results of the cun’s study (2012), which concluded that psm had an effect on job satisfaction and ocb of public employees in korea. this study explained that jsm's influence on job satisfaction and ocb was primarily determined by rational motives. they were career choice and professional readiness. however, a study conducted by liu et al (2008) explained that the aspect of commitment to the public interest in psm had no effect on job satisfaction. the results of this research were confirmed by the study of de juana-espinosa & rakowska (2017) which explained that psm did not significantly influence job satisfaction. the research that was carried out on public employees in spain and poland explained that the component of intrinsic motivation in psm did not encourage the enhancement of job satisfaction so that it was mainly viewed by the perception of justice. according to the various studies above, this study aims to examine the public influence of the motivation sector on job satisfaction and ocb of public employees. public sector motivation the concept of public sector motivation explained the individual's orientation in providing services to the public in order to achieve prosperity (perry & hondgehem, 2008). previously, perry & wise (1990) provided the construction of public sector motivation (psm) using three main components. they were rational, normsbased and affective. this concept was deepened by kim & vandenabeele (2010) in three categories. they were instrumental, value-based and identification. regarding the behavioral approach on public sector management alisa tri nawarini1 1management department, faculty of economics and business, universitas jenderal soedirman, indonesia abstract the concept of public administration evolved along with the increasing demands of improving public services, especially the quality of public employees. this condition requires a behavioral approach in managing the motivation of public employees who are able to encourage job satisfaction and extra-role behavior. however, research on the concept of public sector motivation (psm) on the attitudes and behavior of public employees provides inconsistent results. this study aims to examine the effect of psm on job satisfaction and organizational citizenship behavior (ocb) on public sector’s employees in central java. using survey-based quantitative analysis, this study provides empirical evidence about the effect of psm on job satisfaction and ocb. the findings of this study contribute to the public administration literature by providing guidance in encouraging employees behavior and positive behavior in the context of public organizations keywords organizational citizenship behaviour; public sector motivation; job satisfaction jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 8-12 measurement of psm, perry (1996) developed the instrument including a component of interest in the formulation of public policy, commitment to the public interest, concern and self-sacrifice. this instrument was then refined by kim and vandernabeele (2010) including content of public participation (app), commitment to public value (cpv), concern (com) and selfsacrifice (ss). job satisfaction job satisfaction was related to a positive statement that came from assessing an individual's work experiences or the work itself (locke, 1976). borgaza and depedri’'s research (2005) stated that employees felt a higher job satisfaction in the public sector. this was due to the fulfillment of intrinsic motivation that was greater than salary (benz, 2005) and the fulfillment of the need for social aspects (babin & boles, 1996). job satisfaction categorization included payroll, promotion of colleagues, supervisors and the work itself. judge and church (2000) concluded that the characteristics of work itself were the main determinant of job satisfaction from the various studies of it. this statement agrees with the opinion of houston (2006) which explained that managers in the public sector needed to focus in providing opportunities for employees to demonstrate the quality public services organizational citizenship behaviour the construct of organizational citizenship behavior (ocb) referred to employees behavior in contributing to the whole effectiveness of the organization (organ, 1997). related to the employees behavior, organizational effectiveness was influenced by components related to formal and informal roles within the organization (anggraeni, 2014). ocb's behavior was not limited to the responsibilities according to the job descriptions, however it exceeded what was required in the formal role of employees in the organization. through a literature review of the research results from 1993-1999, podsakoff et al. (2000) explained the concept of ocb in various types, such as helpful behavior, sportsmanship, organizational loyalty, organizational compliance, individual initiative, civic virtue, and self-development. the effect of psm on job satisfaction and organizational citizenship behaviour the effect of psm on job satisfaction was tested in taylor (2007) research. the analysis of each psm dimensions on the various attitudes of public employees concluded that job satisfaction was the most significant value attitude in public services. the explanation in this study referred to the opinion of schneider and vault (1993) that public employees had gained job satisfaction from intrinsic motivation in their work. in a wider context, intrinsic motivation had a significant effect on job satisfaction to public sector employees (bullock et al., 2015). psm influenced the job satisfaction on public employees at low and high level positions (cun, 2012). the research results concluded that for employees with low and high level positions, job satisfaction tended to be high. for employees at the middle level, job satisfaction was not as high as low and high levels employees of office. it was due to its divided role and prioritizing the altruistic component (ocb). this dimension referred to the individual's desire to build coworkers in solving the work problems (anggraeni, 2018). according to the review of the effect of psm on job satisfaction and ocb, the research hypotheses include: h1. public sector motivation has a positive effect on job satisfaction h2. public sector motivation has a positive effect on organizational citizenship behavior based on the description of the results of empirical research and the formulation of hypotheses, the research framework is presented as follows: figure 1. research framework jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 8-12 research methods this study examined two hypotheses, related to the effect of psm on job satisfaction and ocb using a quantitative approach with survey methods and purposive sampling. the data was obtained through questionnaires. they were distributed to 240 government employees in banyumas regency, central java. the item questions included the dimensions of the psm construct, job satisfaction and ocb with closed and open questions. the measurement of the psm construct used an instrument developed by kim & vandenabeele (2010). job satisfaction used the instrument formulation of bono & judge (2003). ocb measurements adopted the organ’s instrument (1998). the instrument in the questionnaires used a likert scale 1 to 7 and the data analysis design used regression techniques. results and discussion there were 240 respondents in this study, dominated by men (67, 5%). they were between 31-40 years (30.4%). most of them had a bachelor's level of education (82.9%) with the length of work 11 -15 years (42.1%). the characteristics of the respondents were presented as follows: table 1. respondents characteristic charact. category number of resp percent. gender man woman 162 78 67,50% 32,50% age <20 21 – 30 31 – 40 41 – 50 >50 9 71 73 69 18 3,75% 29,58% 30,42% 28,75% 7,50% education levels senior high school undergraduate postgraduate 37 199 4 15,42% 82,92% 1,67% length of work 1 – 10 11 – 20 21 – 30 92 101 47 38,33% 42,08% 19,58% the next stage was related to the analysis of data validity and reliability. based on alpha coefficient and r value (r table 0.1267), it could be concluded that the instruments in the study were valid and reliable. the test results were presented in the following table. table 2. validity test result and instrument reliability construct cron. alpha indicators r val. psm 0.771 attraction to public participation 0.337 commitment to public values 0.392 compassion 0.413 self-sacrifice 0.375 job sat. 0.725 progress in promotion satisfaction 0.388 career success satisfaction 0.425 interesting work satisfaction 0.362 chance to learn new skill satisfaction 0.372 ocb 0.712 helping behaviour 0.377 sportsmanship 0.312 organizational loyalty 0.384 organizational compliance 0.352 individual initiative 0.399 civic virtue 0.326 self-development 0.427 after testing the validity and reliability of the instrument, the next stage was testing the hypotheses. based on the results of the regression analysis, it can be concluded that hypothesis 1 and 2 were accepted. the description of the test results was presented as follows: table 3. hypotheses testing results hypotheses β sig results psm on job satisfaction 0.468 0.000 accepted psm on ocb 0.534 0.006 accepted based on the results of hypotheses testing, psm had a positive and significant effect on job satisfaction. the psm components were the attraction to public participation and commitment to public values. they were fundamental needs for public sector employees. it could be explained in the concept of person-organization fit which stated that the existence of value congruence with work and values in the organization encouraged employees job satisfaction. the test results also concluded that psm had an effect on ocb. the psm dimensions included compassion and self-sacrifice. they were a form of affective commitment from public sector employees. within the social jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 8-12 exchange framework, it was explained that employees would respond to organizational efforts in providing the fulfillment of affective needs with contributions exceeding formal roles. conclusion this study focuses on behavioral approaches in explaining the public sector management. the results of hypotheses testing indicate that psm has a positive and significant effect on job satisfaction and ocb of public sector employees. the psm components, which are the attraction to public participation and compassion to public value, are the components of intrinsic motivation. the efforts of increasing the employees satisfaction need to focus on the practice of human resources related to education as this program can internalize public mission, goals and norms to the employees. the managers in the public sector also need to provide opportunities for employees to experience and achieve in completing public service tasks. it will make the employees feel that the work done is meaningful. theoretically, this study explains the mechanism of the relationship between psm and job satisfaction using a framework of value conformity and the relationship of psm and ocb in the social exchange framework social. the future research needs to consider other variables that can be explained using these two theoretical frameworks to enrich the study of psm with behavioral approaches references anggraeni, a.i. (2014). creating good citizen through company ethical value. jurnal pengurusan, (42), 43-50. anggraeni, a.i. (2018). the effect of psychological contract, perceived organizational support and value congruence on organizational citizenship behavior: social exchange perspectives. quality access to success, 19(162), 67-72. babin, b.j., & boles, j.s. (1996). the effects of perceived co-worker involvement and supervisor support on service provider role stress, performance and job satisfaction. journal of retailing, 72(1), 57-75. benz, m. (2005). not for the profit, but for satisfaction? evidence on worker wellbeing in non profit firms. kyklos, 2(2), 155-176. bono, j.e. & judge, t.a. (2003), self-concordance at work: toward understanding the motivational effects of transformational leaders, academy of management journal, 46(3), 554-71. cun, x. (2012). public sector motivation and job satisfaction, organizational citizenship behavior. chinese management studies, 6(2), 330-340. de juana espinosa, s & rawoska, a. (2018). public sector motivational practices and their effect on job satisfaction: country differences. european journal of management and business economics, 27(2), 141-154. grimmelikhuijsen, s., jilke, s., olsen, a. l. & tummers, l. (2017). behavioral public administration: combining insights from public administration and psychology. public administration review, 77(1), 45-56. houston, d.j. (2006), walking the walk of public service motivation: public employees and charitable gifts of time, blood, and money. journal of public administration research and theory, (16), 67-86. kim, s. (2009). public service motivation and organizational citizenship behavior in korea. international journal of manpower, 27(8), 722-740. kim, s. & vandenabeele, w. (2009). a strategy for building public sector motivation research internationality. international public service motivation research conference, indiana university. lapsley, i. (2009). new public management: the cruelest invention of the human spirit? abacus, 45(1), 1-21. locke, e.a. (1976). the nature and causes of job satsifaction. in dunnette m.d (eds.), handbook of industrial and organizational psychology (pp. 1297-1343). chicago, il: rand mcnally. meek, j. w. (2010). complexity theory for public administration and policy. emergence: complexity and organization, 12(1), 1-4. organ, d.w. (1997), organizational citizenship behavior: it’s construct clean-up time, human performance, (10), 85-97. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 8-12 podsakoff, p.m., mackenzie, s.b., paine, j.b. & bachrach, d.g. (2000), organizational citizenship behaviors: a critical review of the theoretical and empirical literature and suggestions for future research, journal of management, (26), 513-63. tomo, a. 2018. advancing a behavioral approach for studying public adminsitration. international. journal of business and management, 13(6), 25-42. correspondence to meutiakaruniadewi.unsoed@gmail.com received: march, 2019 accepted: march, 2019 published: march, 2019 jurnal akuntansi, manajemen dan ekonomi vol. 21, no. 1, 2019, pp. 46-50 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction in the context of human resource management, organizations must realize the component that can increase the employee motivation so they can dedicate their best effort to achieve organization’s ultimate purpose (anggraeni, 2014). a study by castaing (2006) started the urgency of behavioral aspects in the public sector regarding the demands of service users on the quality of service from public employees. there is a literature review, grimmelikhuijsen (2017) concluded that psychological and behavioral aspects need to be integrated in the study of public administration. it has been relevant especially in an era of scarcity of resources and demands for higher public sector performance. in public administration studies, the concept of public sector motivation (psm) is a concept that needs a development considering the ability of public organizations to encourage the employees work motivation. it is a strategic step in increasing the employees job satisfaction and achieving the organizational goals. psm is defined as the individual orientation to provide the public services according to the purpose of goodness and well-being (perry & hondeghem 2008). this orientation is based on various factors. in the behavioral framework of the public sector, huse (2007) and camilleri (2005) explained that one of the important components in the management of public organizations is related to organizational characteristics. they are leadership and employees perceptions on the organization. the study of leadership in promoting the motivation of pro-social employees has provided various empirical findings. in order to improve the quality of public sector services, organizations need to focus in encouraging employees to be creative, initiative and build personal interactions (paarlberg & lavigna, 2010). the kind of leadership that can realize this agenda is explained in the type of transformative leadership. karp and helgo (2008) argued that in the context of transformation, the public managers are able to influence as the effective leaders when their presence is able to influence the patterns of individual interaction. however, this opinion is not in line with the research of jensen & bro (2017) which has proved that transformational leadership does not affect psm. regarding to the individual perceptions of the organization, cook & wall's research (1980) on measuring the employees work attitudes provides some findings that the employees perceptions of the organization negatively influence the employees motivation. this study also proves that the dimensions of employees perceptions of the organization. it’s called trust. it has a positive psychological mechanism on public organization meutia karunia dewi1 1management department, faculty of economics and business, universitas jenderal soedirman, indonesia abstract public sector motivation (psm) becomes a strategic issue along with the decadence of the classic bureaucracy era. this concept focuses on components that can psychologically encourage positive attitudes and behavior of public employees. in order to find the main values and motivations, public employees need to consider organizational characteristics related to leadership and employees perceptions of the organization. this study aims to analyze the influence of transformational leadership and employees positive perceptions on the organization to psm. the study was conducted on government employees in central java using survey methods. using regression analysis, the results of this study contribute to give empirical findings regarding the relationship of organizational characteristics to psm keywords transformational leadership, employees perception on organization, public sector motivation jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 46-50 effect on the intrinsic motivation. however, this opinion has been completely confirmed in the study of jensen & bro (2017) who found that the employees perceptions on organization only has a strong influence on the dimension of attraction to policy making, moderate to the commitment to public interest and it does not affect to the compassion. this study aims to examine the effect of employees positive perceptions on the organization and the transformational leadership to psm. transformational leadership transformational leadership motivates employees to be responsible and independent (bass & riggio, 2006). this leadership style provides the basis for longterm organizational change and achieving higher goals. the components of transformational leadership include idealized influence, intellectual stimulation, inspirational motivation and individual consideration (bass & avolio, 1997). leaders can influence psm through several mechanisms including efforts to encourage employees engagement, show values, provide meaningfulness in work and give appreciation and emphasis to the value of public services. the main challenges in transformational leadership are related to the efforts that emphasize the importance of identity and collective value in the selfconcept of public employees, link the organizational mission to the employees and public identity, and link the employees behaviour to their values and the identities (perry & hondeghem, 2008). positive employees perceptions on the organization employees perceptions on the organization are multidimensional approaches that can be used in the public sector. the measurement dimension of employees perceptions on the organization was developed by sharma et al (1990) to operationalize the attribute of excellence built by peters & waterman (1982). these dimensions include bias for action, autonomy and entrepreneurship, productivity through people, and loose-tight properties. moynihan & pandey (2007) explained that in a sociohistorical context, organizations have an important role in forming psm. perry (2000) argued that institutions form the logic of propriety in the minds of individuals. based on these thoughts, work norms and rules are formed by institutions, both the administrative behavior and the value of public services. public sector motivation public sector motivation (psm) is a concept based on altruistic values and prosocial motivation (dur & zoutenbier, 2014). this concept has a different logic with traditional motivational concepts, especially in the public principle as the main focus, the basic principle of incentives and an emphasis on individual independence (perry, hondeghem & wise, 2010). christensen, paarlberg and perry (2017) argued that referring to the management paradigm and public leadership, the researchers in the field of public administration emphasize some crucial insights in the practice of the public sector. first, psm needs to be effectively used as a selective component. second, the supportive work environment needs to guide and manage the values of public services in order to improve the employees performance. third, the work environment and public parties can facilitate to present the significance at work. fourth, new employees need opportunities to learn the value of public services. fifth, leaders need to communicate and model the value of public services. the effect of transformational leadership and employees positive perception on the organization to the public sector a research on the concept of transformational leadership in the public sector was conducted by park & rainet (2008) proves the influence of transformational leadership on employees performance. the results of this study are supported by the findings of oberfield (2012) which explains the relationship between the transformational leadership within improving the quality of work, collaboration and employees satisfaction. transformational leadership also has a major influence in motivating employees through the articulation of organizational goals. furthermore, transformational leadership influences public sector motivation (wright, pandey & moynihan, 2012). this argument agrees with shamir's (1991) research, which emphasizes that in order to show identity and value, public sector employees involve the goals and ideological meanings, then emphasize the collectivist norms in carrying out work. the influence of employees perceptions of the organization on psm is proven by a research moynihan & pandey ((2007). this jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 46-50 study examines the education, membership, organizational cultures, employees experiences (about hierarchical culture, strict norms of compliance, flexible organizational reformations), level numbers in organizational hierarchy, and the distance of organizational membership to psm. the results of this study explain that the organizational aspects are related to psm. the important element of this study is an argument that discusses to reduce the strict norms compliance and apply the reformations with clear purposes and some efforts to empower the employees. h1. transformational leadership has a positive effect on public sector motivation h2. positive employees perceptions of the organization have a positive effect on public sector motivation based on the review of empirical findings and the formulation of hypotheses, the research framework is presented as follows: image 1. research framework research methods this study examined two formulations of hypotheses regarding the effect of transformational leadership and employees positive perceptions of the organization on public sector motivation, using a quantitative approach with survey methods and purposive sampling determination. the data was obtained through the distribution of questionnaires to 548 government employees in purwokerto city, central java. the question items included the dimensions of the construct of transformational leadership, employees perceptions on the organization and psm through closed and open questions. the measurement of transformational leadership constructs used an instrument developed by bass and avolio (1997), positive perceptions of employees of the organization used the sharma instrument formula (1990) and measurement of psm adopting the perry (1990) instrument. the instruments in the questionnaire used a 1 to 7 likert scale and the data analysis design used regression techniques. results and discussion there were 548 respondents in this study, dominated by men (61.50%), the majority were between 21-30 years old (%), most of them had bachelor's level of education (61.68%) with length of work between 1-10 years (48.54%). the characteristics of the respondents are presented as follows table 1. respondents characteristics charact. category numbers of resp. percent gender man woman 337 213 61,50% 38,50% age <20 21 – 30 31 – 40 41 – 50 >50 29 207 149 111 52 5,30% 37,78% 27,19% 20,26% 9,49% education levels senior high school undergraduate postgraduate 163 338 47 29,74% 61,68% 8.58% length of work 1 – 10 11 – 20 21 – 30 266 232 50 48,54% 42,34% 9,12% the next stage was related to the analysis of data validity and reliability. based on alpha coefficient and r value (with r table0.0383) it could be concluded that the instrument in the study was valid and reliable. the validity and reliability test results were presented in the following table. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 46-50 table 2. validity test result and instrument reliability constructs cronbach alpha indicator r value psm 0.749 attraction to public participat ion 0.231 commitm ent to public values 0.218 compass ion 0.242 selfsacrifice 0.236 transform. leadership 0.788 idealized influence 0.269 intellectu al stimulatio n 0.214 inspiratio nal motivatio n 0.232 individual consider ation 0.173 positive perceptions of employees 0.792 close to public 0.165 on organization autonom y 0.279 productiv ity through people 0.245 after testing the validity and reliability of the instrument, the next stage was testing the hypotheses. the results of the regression analysis concluded that hypothesis 1 and 2 were accepted. the description of the test results was presented as follows: table 3. hypotheses testing results hypotheses β sig results transformational leadership on psm 0.497 0.003 accepted positive perceptions of employees of the organization on psm 0.436 0.000 accepted the results of hypothesis testing explained that transformational leadership had a positive and significant effect on psm. the components of ideal influence, intellectual stimulation and inspirational motivation in the form of vision communication built strong emotions for employees, followed by the efforts of leaders as role models in serving with the high public service values. transformational leadership created a link between the ideology of public organizations and the personal value of employees which were committed to the value of public services. through the informal activities, the transformational leaders shared some stories about organizations that inspire the employees. the results of hypotheses testing also concluded the positive influence of employees positive perceptions on the organization to psm. employees perceptions of the organization's efforts to build quality public services proactively encouraged the employees to participate in the process. it agrees with the concept of a personorganization fit. when employees perceived organizational management practices met the value of personal work, the employees tended to join, stay and perform within the organization. conclusion this study reviews the value-based management practices in the public sector by testing the effect of transformational leadership and employees positive perceptions on the organization to psm. transformative leaders increase the employees awareness of ideal goals and encourage employees to bring the value of personal work to the highest degree in order to achieve greater goals. this study uses the dimensions developed by bass & avolio (1997) at the conceptual level. the future research needs to adopt the core components of public organizations which can be interpreted to be tactics and strategies more deterministically in the concept of transformational leadership in the public sector. this study provides empirical evidence about positive perceptions on the organization to psm. the instruments of this study refer to sharma (1990). the research conducted by moynihan & pandey (2007) has examined the organization components completely on psm. the future research needs to examine the correlation of both concepts to explain the employees perceptions on the organization more holistically. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 46-50 references anggraeni, a.i. (2014). creating good citizen through company ethical values. jurnal pengurusan, 2014(42), 43-50. bass, b.m., & avolio, b.j. (1990). the implications of transactional and transformational leadership for individual, team and organizational development. in woodman, r.w & passmore, w.a (eds), research in organizational change and development (231–72). greenwich, ct: jai. bass, b.m., & riggio, r.e. (2006). transformational leadership (2 nd ed). mahwah, nj: lawrence erlbaum associates. camilleri, e. (2005). antecedents affecting public service motivation, personnel review, 36 (2), 356-77. castaing, s. (2006). the effects of psychological contract fulfilment and public service motivation on organizational commitment in the french civil service. public policy and administration, (21) 1, 84-99. christensen, r.k., paarlberg, l., & perry, j. 2017. public service motivation research: lesson for practice. public administrative review, 77(4)529-542. cook, j.d. & wall, t.d. (1980). new work attitude measures of trust, organizational commitment and personal need nonfulfilment, journal of occupational psychology, (53), 39-52. dur , r. dan zoutenbier, r. (2014). working for a good cause. public administration review 74 (2), 144 – 55. grimmelikhuijsen, s., jilke, s., olsen, a. l. & tummers, l. (2017). behavioral public administration: combining insights from public administration and psychology. public administration review, 77(1), 45-56. . huse, m. (2007). boards, governance and value creation, cambridge: cambridge university press. jensen, u.t., & bro, l.l., (2017). how transformational leadership supports intrinsic motivation and public service motivation: the mediating role of basic need satisfaction. american review of public administration, 1-15. karp, t. & helgø, t. (2008), the future of leadership: the art of leading people in a ‘post-managerial’ environment. foresight, (10) 2, 30-37. moynihan, d. p. & pandey. s.k. (2007). the role of organizations in fostering public service motivation. public administration review, 67(1), 40-53. oberfield, z.w., (2012). public management in time: a longitudinal examination of the full range of leadership theory. journal of public administration research and theory. 24(2), 407-429. paarlberg, l. e., dan lavigna, b. (2010). transformational leadership and public service motivation: driving individual and organizational performance. public administration review, 70, 710-718. perry, j. l., hondeghem, a. dan wise, l.r., (2010). revisiting the motivational bases of public service: twenty years of research and an agenda for the future. public administration review 70 (5), 681 – 90 . perry, j. l., & hondeghem, a. (2008). motivation in public management: the call of public service. oxford: oxford university press. perry, james l., & wise, l.r., (1990). the motivational bases of public service. public administration review, 50(3), 367-73. peters, t. & waterman, r. (1982), in search of excellence. harper & row, new york, ny. . perry, j.l., (2000) . bringing society in: toward a theory of public-service motivation. journal of public administration research and theory 10 (2), 471 – 48 . shamir, b. (1991), meaning, self and motivation in organizations. organization studies, 12 (3), 405-24. sharma, s., netemeyer, r.g. & mahajan, v. (1990), in search of excellence revisited: an empirical evaluation of peters and waterman’s attributes of excellence. in bearden, w.o. & parasuraman, a. (eds), enhancing knowledge development in marketing (pp. 322-328). american marketing association, chicago, wright , b.e., moynihan, d.p. and. pandey, s.k., (2012). pulling the levers: transformation leadership, public service motivation, and mission valence . public administration review, 72 (2) 206 –215. journal of accounting management and economics vol. 20, no. 2, 2018, pp. 1-6 published by faculty of economics and business, universitas jenderal soedirman published online on july, 9 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 onlineissn: 2620-8482  correspondence to : hadiyantiutami@gmail.com received: may 14, 2018 revised: may 28, 2018 accepted: june 11, 2018 introduction vocational high school is a form of formal education unit that provides vocational education at secondary education level as a continuation of junior high school / madrasah tsanawiyah or other equivalent or advanced forms of recognized learning outcomes equivalent to junior high school / madrasah tsanawiyah. as a secondary education level, vocational high school has the specialty of preparing the graduates ready to work. public vocational high school 1 banyumas which was established on january 1, 1968 originally had three majors namely accounting, office administration, and commerce. based on the revised curriculum of 2017, the names of these majors changed into accounting and institutional finance, automation and office governance, and online business and marketing. in 2012, opened computer and informatics engineering skills program that is major of computer network technology and in 2016 opened major of multimedia. based on the report of acceptance of new students, fluctuation in the number of prospective new students in 3 majors in business expertise and management field shows that for the last 5 years, applicants of new students in the field of online business and marketing is lower than other majors that are accounting and institutional finance and automation and office governance. these data indicate that there is still doubt in the society, especially prospective new students to the decision to choose the major of online business and marketing. anticipating these facts then the decision-making process of new students in choosing is very important to be known by the manager of public vocational high school 1 banyumas through the study. the society, especially the elderly, now has a high interest in education for their children. most of the society has a perception that someone who graduates from a particular major will have a greater chance of getting a better job, so parents will choose an alternate major that suits their expectations. the prospective students will pay attention to the quality of a particular school education and what about the job prospects that will be obtained after graduating from the education. therefore, schools need to develop one marketing strategy that is promotion. promotional activities can inform or communicate about the activities and advantages of a product so that it will be able factors considered by prospective students in choosing major of online business and marketing study at junior high school in banyumas sub-district utami hadiyanti1, agus suroso2, refius pradifta setyanto3 1,2,3 faculty of economics, jenderal soedirman university, indonesia abstract the purpose of this study is to analyze the factors that become the consideration of prospective students in the decision to choose the major of online business and marketing. the type of research used is exploratory. this study used a sample of 76 prospective students. data analysis used factor analysis. results of the analysis show that the factor considered by the prospective students in choosing the major of online business and marketing is the student’s perception factor. while, the factors considered by prospective students who do not choose the major of online business and marketing is due to perception factors that include family perception and perception of friends. the conclusion of this study is that the student perception becomes factor considered by the prospective students in choosing and not choosing the major of online business and marketing at public vocational high school 1 banyumas. keywords factors considered by student; perception; promotion; job consideration journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 1-6 2 to persuade potential customers to buy a product. effective marketing can form the image of the school as a product. marketing in the world of education may still seem strange, but as it develops, marketing is something that is needed by the school. school as a product will continue to compete in the market, and always improve product quality and increase the number of consumers, in this case that is improving the school image and the number of students who register and enter in each year. muhaimin, suti’ah, and prabowo (2009) stated that the function of marketing in educational institutions is to establish a good image of the institution and attract a number of prospective students. there have been studies of factors influencing students in decision making of choosing majors in vocational high school (turina, 2015; hilda, 2014) and factors influencing students of public junior high school in choosing vocational high school (jarot, 2014), but no research has been done yet of factors considered by prospective students in choosing the major of online business and marketing. referring to the above, the purpose of this study is to analyze the factors considered by prospective students in the decision to choose the major of online business and marketing and to know the factors considered by the prospective students who do not choose the major of online business and marketing at public vocational high school 1 banyumas. literature review & hypothesis decision in choosing major decision making is the process of selecting one of the best alternatives among the many alternatives available to solve the problem (raihan, 2016). helping the realization of conditions of maximizing expectations is the goal of decision making in the selection of majors using purchasing decision theory. based on the theory of kotler and keller (2011), consumer behavior in the buying decision process begins from the introduction of needs, then followed by the process of searching information about the goods or services needed, evaluation of existing alternative, then the purchase decision or selection. behavior after purchase is the last process after purchase decision. motivation motivation is the driving force within a person who forces him/her to perform an action (shiffman and kanuk, 2010). other terms of motivation, such as needs, wants, drives, spirits, or impulses. theory of motivation according to robbins (2008) is that a process that produces an intensity, direction, and persistence of individuals in an attempt to achieve a goal. according to setiadi (2010), consumer motivation aims to improve satisfaction, maintain loyalty, efficiency, effectiveness, and create a harmonious relationship between producers or sellers and buyers or consumers. promotion according to kotler and keller (2011), promotion is an effort made by marketers to communicate with the target market. in the promotion mix according to lupiyoadi and hamdani (2006), there are several components of promotion that can be described as follows: advertising, personal selling, sales promotion, publicity and public relations, word of mouth, and direct marketing. perception perception by shiffman and kanuk (2010) is a process whereby a person chooses, organizes, and interprets stimuli into information that can provide a picture of something meaningful. daft (2010) mentioned that perception is a cognitive process that a person uses to understand his/her environment by selecting, organizing, and interpreting information from his/her environment. robbins (2008) stated that perception is as a process by individuals to organize and interpret their sense impression to give meaning to their environment. image of major kotler (2008) defined the brand image as a set of beliefs, ideas, and impressions that a person has for a brand, therefore the attitude and action of consumers towards a brand are determined by the brand image. brand image represents the overall consumer perception of the brand formed by the information and the consumer’s experience of a brand (suryani, 2008). journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 1-6 3 research method method of this research is exploratory where researchers did not nor had no knowledge or theory or a hypothesis that make up the structure of the factors that will be formed. this study used a sample of 76 prospective students. this study used random sampling to take sample of prospective students, sampling quota was used to take sample of prospective students and purposive sampling for prospective students who do not choose the major of online business and marketing. analysis of this research data used factor analysis. result and discussion result of research analysis of prospective students data data analysis used spss from 76 prospective students with 71 variables obtained the following output. table 1. component transformation matrix component 1 2 3 4 5 6 7 8 1 .552 .366 .346 .350 .326 .278 .298 .217 2 -.577 -.169 .691 .339 .140 -.103 -.062 .110 3 .222 -.644 .008 -.089 .628 .124 -.084 -.335 4 -.217 .327 .183 -.778 .404 .024 .111 .176 5 -.148 -.208 .021 -.108 -.252 .898 -.087 .214 6 .348 -.291 .114 -.143 -.075 -.261 -.439 .703 7 -.298 .264 -.508 .334 .492 .103 -.394 .253 8 .185 .345 .312 -.075 -.080 .106 -.730 -.440 source: data processing result, 2018 in table 1, it can be seen the numbers that exist on the diagonal from the top left to the bottom right, the three factors that are formed and have a high correlation are between component 1 with 1 of 0.552 that is above 0.5. while, factor 2, 3, 4, 5, 6, 7, and 8 are not formed because it has small correlation value below 0.5. based on these results, one factor is formed and has a high correlation that is factor 1 called the factor of student’s perception. result of in-depth interview the data of this study were obtained through in-depth interviews conducted by researchers conducted with an individual approach. based on interviews with 5 prospective students, researchers can describe that the factor considered by prospective students who do not choose the major of online business and marketing is a family that is from parents and relatives. discussion from the results of this study, it can be seen that the factor of perception is a factor that plays an important role as consideration of prospective students in choosing the major of online business and marketing at public vocational high school 1 banyumas. factor of student perception gives big influence because of way of thinking, opinion, or assumption in choosing the major of online business and marketing department at public vocational high school 1 banyumas. where students interpret and provide responses and impressions of information that they heard especially from the environment, family, and friends. the results of this study indicate that student perception is the factor considered in choosing the major of online business and marketing in line with the results of the study of fracture (2016) which states that parents and students have their own perceptions and expectations in determining the school. based on the results of in-depth interview, obtained data that there are several reasons that ultimately become factors considered by prospective students who do not choose the major of online business and marketing. the first factor is the family that is parents and relatives. job consideration they will gain or future job expectation are the reasons parents recommend and advise and choose major for prospective students who do not choose the major of online business and marketing. the results of this study are in accordance with the results of previous studies. al-rfou (2013) stated that family is considered as a factor that students consider when choosing a school or major. siblings are considered as an important source in choosing major. in addition, the results of the study of patah and zakaria (2016) mention that parents and journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 1-6 4 students have their own perceptions and expectations in choosing the type of school. another study notes that the influence of parents is a decisive factor in the student decision making process (maniu, 2014). the results of this study also support that close family relationship is one of the important factors that affect students (ayiah, 2014). further research also notes that factor of parents influence student career choice (okinyi, 2016). factor of family determination as a determinant factor of students in choosing a school or major is also supported by research which concludes that factor family is an important criterion after the personal factor of the student in choosing the major (shen, 2017). the next factor of consideration is friends. recommendation or input of family especially parents and relatives and invitation of friends to enter certain majors become the reason of prospective students in choosing a certain major in vocational high school. the wishes of parents in prospective students to choose in a particular major and information and invitation from relatives and friends will affect the way of thinking, opinion, or assumption that the major that will be the student’s choice is the most appropriate. so the greater the desire of parents and the invitation of relatives and friends will strengthen their consideration to enter certain majors. daft (2010) mentioned that perception is a cognitive process that a person uses to understand his/her environment by selecting, organizing, and interpreting information from his/her environment. prospective students interpret and provide responses and impressions of information that they heard especially from family, relatives, and friends that eventually form a perception of one of the majors to be selected. prospective students get information about the major of online business and marketing from junior high school teachers, vocational high school teachers, junior high school friends, vocational high school seniors, junior high school graduates, and vocational high school graduates, but the information obtained is not sufficient to provide an overview of the majors at public vocational high school 1 banyumas. this is what makes prospective students do not know clearly and ultimately not interested in choosing the major of online business and marketing. the main purpose of promotion is to modify the behavior of consumers, inform, influence, and persuade and remind the target consumers about the company and the products or services it sells (sawsta and irawan, 2005). not only major of online business and marketing, but prospective students also have not get enough information about other majors at public vocational high school 1 banyumas. it is also what makes prospective students confused to determine what direction that will be chosen. lack of interest or even disinterest in prospective students to the major of online business and marketing becomes a determinant of prospective students to do not choose the major. this is in accordance with the results of research of shen (2017) which shows that personal factor that is interest is one of the keys for students when choosing a major. based on the discussion of the factors considered by the prospective students who choose and do not choose the major of online business and marketing, the results of previous research that states the distance of school with residence is a factor considered in the selection of schools as proposed by jain (2013), residence is a factor considered in the selection of schools as proposed by ahmad (2014), and location is a factor that determines the place for student to learn as stated in research of maniu (2014) are not dominant factors considered by students and prospective students in choosing majors. the research results of ahmad (2014) state that school quality is a factor that students consider in the selection of schools or majors, and the research results of renate (2010) state that the quality of education is also one of the major aspects that are taken into account that determines students in choosing schools, are not dominant factors of students and prospective students in choosing the major of online business and marketing and not factors considered by prospective students who do not choose the major of online business and marketing. conclusion based on the results of research and discussion of the factors considered by the students and prospective students, through the questionnaires to student and prospective student respondents who choose the major of online business and marketing at public vocational high school 1 banyumas and journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 1-6 5 from the in-depth interview for prospective students who do not choose the major of online business and marketing, the following conclusions can be taken: (1) the factor considered by the prospective students in choosing the major of online business and marketing at public vocational high school 1 banyumas is student perception; (2) the factors considered by the prospective students who do not choose the major of online business and marketing at public vocational high school 1 banyumas is student perception which includes the perception of family and friends. based on these conclusions, the implication of the research result is to increase the interest of new prospective students to choose the major of online business and marketing, so that need to be considered carefully by the public vocational high school 1 banyumas is to always pay attention to the image of the major of online business and marketing by improving the quality and service for students and prospective students so that raises a good perception on students and prospective students, and schools need to increase promotion to the society and prospective students. in addition to the above, the results of this study cannot be generalized to other vocational majors. this is because the purpose of this study is to analyze the factors that become consideration of prospective students in the decision to choose the major of online business and marketing and know the reasons why prospective students do not choose the major of online business and marketing. references ahmad, lodhi raees, ahmed rizwan raheem and ahmad nawaz. 2014. factors affecting in selection of school for upcoming generation: a case study of karachi urban areas, pakistan. research 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(eds) © 2016 taylor & francis group, london, isbn 978-1-138-02920-0 raihan. 2016. pengambilan keputusan dalam kepemimpinan manajemen dakwah. jurnal al-bayan/vol. 22 no. 34 juli desember 2016 renate, inga lapina dan peeter muursepp. 2016. quality of higher education: international students’ satisfaction and learning experience. emerald insight. international journal of quality and service sciences, vol. 8 iss 3 pp. robbins, p, stephen. 2008. organizational behaviour, tenth edition (perilaku organisasi edisi ke sepuluh), alih bahasa drs. benyamin molan. jakarta : salemba empat sagung seto. p. robbins, stephen. 2008. organizational behaviour, tenth edition (perilaku organisasi. edisi ke sepuluh), alih bahasa drs. benyamin molan. santoso, jarot tri bowo. 2014. faktor-faktor yang mempengaruhi siswa smp n di kota semarang memilih smk. jurnal pendidikan ekonomi dinamika pendidikan vol. ix, no. 1, juni 2014. hal. 1-20 setiadi, n.j. 2010. perilaku konsumen edisi revisi perspektif kontemporer pada motif, tujuan, dan keinginan konsumen. jakarta: kencana shen, yi-hsueh. 2017. study on the factors affecting senior middle school students' selection of majors of hospitality and catering. international journal of humanities social sciences and education (ijhsse) volume 4, issue 6, june 2017. suryani, tatik. 2008. perilaku konsumen; implikasi pada strategi pemasaran. yogyakarta : graha ilmu. turina lasriza hayurika, 2015. analisis faktorfaktor yang mempengaruhi minat siswa dalam pengambilan keputusan memilih jurusan akuntansi kelas x di smk n 1 demak. jurnal pendidikan ekonomi dinamika pendidikan. yahya subchan. 2010. analisis faktor-faktor yang memmpengaruhi keputusan nasabah untuk menggunakan jasa bank syariah (studi kasus pt. bank syariah mandiri tbk. cabang pembantu lebak). skripsi tidak diterbitkan. jakarta: jurusan manajemen fakultas ekonomi dan bisnis universitas islam negeri syarif hidayatullah. journal of accounting, management, and economics vol. 20, no. 1, 2018, pp. 5-10 published by faculty of economics and business, universitas jenderal soedirman published online on january 8, 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 online issn: 2620-8482  correspondence to: universitas jenderal soedirman, indonesia. e-mail: kikysrirejeki@gmail.com received: november 27, 2017 revised: december 13, 2017 accepted: december 27, 2017 introduction sustainable development is the design of the sustainable development, up to the small scale, including in the village. according to djohan, regional autonomy policy is the entrance to the distribution of development, from big cities to the smallest unit of government at the village level1. regional autonomy also becomes an effective policy to reduce the rate of increasing urbanization. research data by soegijoko and bulkin proved that in 1920, the proportion of the urban population is only 5.8 percent of the entire population. supas 1995 showed that in thatat year, the level of urbanization in indonesia has reached 35.91 percent2. citing from the projections of tjiptohertono toward society urbanization, up to 2025 urban population in indonesia in that year will reach 57.39 1djohermansyah djohan, teori dan praktek pemerintahan daerah, pp 7-10, grasindo, 2009. 2urban population growth rate in the 1980-1990 period is two and a half times more than the growth rate of the population's overall, the magnitude of only 1.97 percent per year. un reported that the urban population growth in indonesia about 65 percent are caused by migration and reclassification. the rest is just 35 per cent due to natural population growth in the city itself. quoted from tjiptoherijanto. 1999. urbanization in indonesia. london: university of indonesia, pp 55-62. percent (table 1). furthermore, the urban population is expected to be twice the number that existed at this time in the next 69 years (calculated since 1990). research conducted by rustiadi, et al. (2010) about the increased urbanization in major cities shows that urbanization occurred because of the desire of each individual/group of people who want change in their life. urban destination area usually have good economic conditions and supported by more developed cultures and governance. furthermore, this research shows that rural-urban inequality development becomes the major cause in the increasing of urbanization in java island3. economic factor is the main cause of urbanization. according to knox and mccharty (2011), the main cause of urbanization is due to economic changes that drive and driven by human factors, natural resources, and technology. all these factors, according to them, create different output in particular economic condition, social and physical in the deserted village as well as in the destination town. 3research erman rustiadi shows, urban population growth in indonesia about 65 percent are caused by migration and reclassification. the rest is just 35 per cent due to natural city population growth. empowering the role of village owned enterprises (bumdes) for rural development: case of indonesia kiky srirejeki faculty of economics and business, universitas jenderal soedirman, indonesia abstract poor economic condition, unemployement, quality education and lack of other basic infrastructures are the common problems of rurals in indonesia and in many other countries. the rural potentials have not been optimally explored, hence a place to birth it becomes instead of to live. the government has actually tried several programs for rural economic development, for example by providing more facilities and infrastructure, even creating project pnpm (program nasional pemberdayaan masyarakat/national program for community empowerment). however, the implementation and effect of these programs have been put into question. in indonesia, this economic institution is bumdes (badan usaha milik desa/ village owned enterprise), the pillars of rural economic activity, serves as a social and commercial institution. this paper aims to explain how to strengthen the role of village owned enterprise for its role in rural development. using qualitative approach, this study indicates that village owned enterprise is projected to be new economic strength in rural development in indonesia and that the rural government can improve the role of village owned enterprise not only as a government’s fund mediator but also as a facilitator to promote the rural economic activity properly through value addition. the paper aims to generate new insight of the role of village owned enterprise in indonesia and its consequence to rural development. keywords village owned enterprise; rural economic development; community development journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 5-10 6 inequality in the development of village was corroborated by the findings of indonesia rural empowerment (ire). ire research shows that there are 38,232 (54.14 percent) developed village category, which consists of 36,793 (52.03 percent) advanced category and 1,493 (2.11 percent) category is very advanced. meanwhile, undeveloped villages totaling 32,379 (45.86), consists of 29,634 (41.97 percent) undevelopned category and 2,745 (3.89 percent) very undeveloped4. table 1 projection of urbanization growth year number of city population (in thousand) urbanization growth (%) 2000 87,577.1 41.80 2005 102,534.1 46.01 2010 116,481.0 49.55 2015 129,245.3 52.60 2020 140,309.9 55.19 2025 150,052.0 57.39 according ire, this inequality cannot be separated from not shifted development paradigm. the development program is focused only on the achievement of economic growth and neglected the programs of social equity and welfare of the villages. the effect was the development programs do not support the resource distribution in village community empowerment, but only focused on figures of economic growth. according to sudjito, rural poverty due to the inequality development was the main cause of the mobility of the villagers moved to cities in search of new economic resources5. the government has actually tried several programs for rural economic development, for example by providing more facilities and infrastructure, developing systems for agribusiness and small business, even creating project pnpm (program nasional pemberdayaan masyarakat / national program for community empowerment). however, the implementation and effect of these programs have been put into question. some programs create more dependency of rural communities on a variety form of grants and assistances from outside parties. one instance is a group of villagers form a cooperative solely to be able to obtain grants from various local government agencies such as ministry of cooperatives and smes, ministry of social services (handono, 2012). furthermore the obtained grants are distributed equally to all members of the cooperatives. even though government has urge the policy to offered 4ire research. 5arie sudjito, politik ketimpangan dan pembangunan, ire yogya press, 2011, pp 34-45. cheap credit (small loans) by various financial institutions, villagers generally are not interest to take credit offered. they prefer to propose the grants. therefore the main activity of the cooperative seems to focus only on creating proposal to obtain grants rather than doing productive works. by this point, economic institutional mechanism is not effective enough, it implicates the dependence on government assistance and in turn weaken the spirit of economic independence. another issue obstacle to the success of the implementation is the dominance of government intervention hampering creativity and innovation of rural society in managing and running the rural economy. research conducted in several countries about rural development programs by gerard mcclwee, finds that the fundamental problem of rural development was the limited authority. gerard research shows that the main problem of unsuccessful rural development policy is a matter of authority. most rural development method puts the villagers merely as objects of development and not as subject who have the decisive and strategic authority to manage village assets. in order to overcome the problem, the village should have clear authority, legally recognized, as the spirit of the constitution and implementable practice in resource governance and economics. based on these experiences, indonesia needs a new approach expected to stimulate and to drive the rural economy through the establishment of economic institutions managed entirely by the rural community. the emerging of this economic institution should be based on the desires of rural communities by considering the potential of the village. in indonesia, this economic institution is bumdes (badan usaha milik desa/ village owned enterprise), the pillars of rural economic activity, serves as a social and commercial institution. this paper aims to explain how to strengthen the role of village owned enterprise for its role in rural development. using qualitative approach, this study indicates that village owned enterprise is projected to be new economic strength in rural development in indonesia and that the rural government can improve the role of village owned enterprise not only as a government’s fund mediator but also as a facilitator to promote the rural economic activity properly through value addition. the paper aims to generate new insight of the role of village owned enterprise in indonesia and its consequence to rural development. literature review and hypotheses village owned enterprise (bumdes) is projected to be a new economic power in rural areas. act no. 6 of 2014 about village, provides legal protection on village owned enterprise as economic actor who manage the village collective potential to improve journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 5-10 7 the welfare of the villagers. the existence of the village law no. 6 of 2014 is also expected to be a turning point in the emergence of the more powerful role of village owned enterprises, especially to revive the economy of the villagers. village owned enterprise is a pillar of economic activity in the village that serves as a social institution and commercial institution. village owned enterprise as social institutions favor the interests of the community through its contribution in the provision of social services. meanwhile, as the commercial institution, its aim to make profit by offering local resources (goods and services) to the market6. the logic of village owned enterprise’s establishment are based on the needs and potential of the village and as an effort to improve the welfare of the community. the plan and the establishment of village owned enterprise is built based on the community initiative, as well as on the principles of participatory cooperative, (user-owned, userbenefited, and user-controlled), transparency, emancipatory, accountability, and sustainability with the member-based and self-help mechanism. the most important of all is that the management of it should be done professionally and independently. in his research on the empowerment of rural communities in china, sigurdson defined the roles and functions of village owned enterprise. some of these functions are encourage the development of economic activities in rural communities, iincrease creativity and productive economic business opportunities (entrepreneurship) of the low income members and eencourage the development of the informal sector micro enterprise to create employment, which is free from the influence of the moneylenders. economic empowerment through village owned enterprise have goals to serve rural communities in developing productive business, and to support economic activities accordance with the potential of the village and community needs. internal affair minister regulation number 39/2010 about village owned enterprise (bumdes) stated that village owned enterprise is rural enterprise established by the village government which capital ownership and management is arranged by the village government and society. village owned enterprise is intended to accommodate all activities regarding social income improvement. the activities include economic 6law no. 32 of 2004 on local government in article 213 paragraph (1) states that "the village can establish villageowned enterprises in accordance with the needs and potential of the village". the substance of this law confirms the promise of fulfilling the request (demand compliance scenario) in the context of the village level development. the logic of village owned enterprise establishment is based on the needs and potential of the village and as an effort to improve the welfare of the community. activity evolves according to the customs / local culture as well as economic activityy manages by the community through the central government and local government project and program. in conducting its business the principle of efficiency and effectiveness should always be emphasized. village owned enterprise as a legal entity established based on legislation, and in accordance with the agreement of rural communities. thus, the village owned enterprise forms can vary in every village in indonesia. variety of this form is in accordance with local characteristics, potential and resources of each village7. village owned enterprise also may play a role in contributing revenue to village. this condition may encourage every village government provides goodwill in response to the establishment village owned enterprise8. as one of the economic institution that operates in the village, it should have difference with the other economic institution in general. the purpose of that is to make the presence of village owned enterprise be able to contribute to the welfare of the villagers. there are seven characteristics which differ village owned enterprise to other economic institutions: (1) village owned enterprise owned by the village and manage together by village government and village community. (2) the capital source is from village budget (aproximately for 51 %) and from villagers (49%) through equity (stock or share). (3) use business philosophy based on local wisdom in running the activity. (4) field of business carried on based on the potential and the results of market information. (5) gains intended to improve the welfare of members (accompanying capital) and communities through village policy. (6) facilitated by government, provincial government, local government, and village government. (7) implementation is controlled jointly among village government, village consultative assembly (badan permusyawaratan desa), and villagers. those characteristics above show that village owned enterprise differ in the way it established, managed and controlled. village owned enterprise also more inclusive than cooperative. cooperative only served its member, while village owned 7internal affair minister. 2010. internal affair minister regulation number 39/2010 about village owned enterprise (bumdes). 8nevertheless, it is possible for village owned enterprise to gain loan from outside parties, such as from the village government or other parties, even though a third party. this is in accordance with the regulations by laws and regulations (act 32 of 2004 on local government article 213, paragraph 3). this explanation is very important to prepare the establishment village owned enterprise, because the implications would be in contact with the setting in regulation (regulation) and village regulation (perdes). journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 5-10 8 enterprise (bumdes) served villagers in general. besides that, village owned enterprise (bumdes) also given the responsibility to report its activity open to public. villagers as well as other village community can access the performance report. this condition support villagers as the shareholders and stakeholders to control village owned enterprise (bumdes) activities and also as form of transparency and accountability of village owned enterprise (bumdes). based on law no. 32 of 2004 on local government article 213 paragraph 3 stated that the establishment and management of village-owned enterprises (bumdes) is the embodiment of the village productive economic management based on cooperative, participative, emancipative, transparence, accountable, and sustainable9. in addition, the law also stated that village-owned enterprises (bumdes) can be established in accordance with the needs and potential of the village. the needs and potentials of the village are vary differ from one village to another. villageowned enterprises can fulfil the main needs of the villagers like providing the cheap rice or other basic needs. they can also in the form of education institutions to provide free education to the villagers specially those who have low income level. they can also be the marketers of farm or village products to promote the local product outside the village. therefore, village owned enterprise can run various businesses, ranging from services, microfinance, trade, and other economic development. village owned enterprise as business enterprise needs to be profitable, while still maintaining its social aims. sometimes, the forces of profit and social aims will pull in opposite directions, causing tension and in the worst cases, failure. based on discussions with the village government and officers of village owned enterprise, several bariers faced by village owned enterprise that hampers its effective activity include accessibility and lack of innovation. many village owned enterprise officers lack of network. this is due to the fact that village owned enterprise usually driven by one or two people. these officers could not meet the needs to build a network with other parties outside the village. they rely on the allocation budget from village budget and hard to find sponsors from third parties. it is problematic because these small officers have to engage over a large geographical area. they also find difficulty to promote village owned enterprise to its own community, only several villagers who concern about the development of it, since they think it does not belong to them. since community 9law no 32 of 2004 about local governance. involvement is relatively small, these problems leave village owned enterprise with little capital and therefore hard to innovate. to overcome those problems, we need cooperation from village government as well as community empowerement. the management of village owned enterprise within village officers often rest with a handful of small individual. the energy and perseverance of these people is of immense value, but is rarely underpinned by corporately owned strategy or policy. leadership that promotes a common understanding and policy towards village owned enterprise is now essential. in doing so, leader,in this context is village leader (kepala desa), should avoid the impression that village owned enterprise is seen as formality institution and instead convey realistic expectations and emphasise the need for it as part of publiccommunity institution. the action plans incorporated actions on leadership could be putting on workshop for village owned enterprise officers, joining village consulation attended by village representatives, ensuring officers take responsibility for communicating vision and set target for growth. the growth and sustainability of village owned enterprise is also dependent on the opportunity and capacity of collaboration. therefore, support from community as well as improved links with other sector (third parties or even private sector) were on the list of priorities. village owned enterprise require support to develop the technical skills, such as legal structures and non technical skills, like relationship building, required to build and work with more parties. conducting business with the private sector is also another part of collaboration that should be considered. sustainability in the village owned enterprise requires access to markets beyond the public sector, either through business to business products or services, or through sub-contracting. the development of formal network can be the catalyst for collaboration with the private sector. developing these networks requires support from local authorities, particularly around administration and logistics. real actions to support this idea can start by supporting village owned enterprise officers to develop skills they need for deeper collaborative working, encouraging private companies to fulfil corporate social responsibility by providing business support services to village owned enterprises and reinvigorating a network of village owned enterprises through the provision of administrative and logistical support. collaboration among village owned enterprises from various villages could also be strategy to be considered. more ideas and innovations happen when there is a resource combination. each village owned enterprise could contribute in experience, finances and even infrastructure. sharing and leveraging those resources put village owned journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 5-10 9 enterprise into different level. there could be an opportunity for new markets and even new networks. this strategy enable village owned enterprise as catalyst for the cooperatives among villages. one more important thing on strengthening the role of village owned enterprise is enhancing participation from society. successful village owned enterprises are often rooted in a particular locality, with operations built upon a deep understanding of local need and strong local wisdom. enhancing villagers community through village forum could be a way to promote sense of belonging from villagers to the village owned enterprise. village forum could be a media to share thought, ideas and informations. village forum designed to bring together villagers from different backgrounds to discuss real and relevant issue that they deal in their communities. it gives villagers a platform for safe, open discussion to reflect and express what they face in their every day lives. beside that, village forum could be a media to control over the government budget allocated in village owned enterprise. village forum keeping the villagers informed on the state of the use of funds of village owned enterprise. through these insight, village owned enterprises are well placed to deliver efficient and innovative solutions that address local needs. it is important that local authorities help communities to identify needs, opportunities and entrepreneurs and ensure assets are available for new village owned enterprise. actions developed included develop a local ideas and clearly promote ways that local people can support local village owned enterprise. where markets exist, village owned enterprises can help communities relying less on the private sector for services and creating surpluses which can be reinvested into the community. methods the method used relies on qualitative anaysis method. moreover, in order to answer the research objectives, multiple methods were applied. multiple means more than one methods. in this sense, method corresponds with the type of data that used in the research. there are two methods used, the first is discourse analysis, the second is focus group discussion (fgd). the first method is discourse analysis. this method is preferable to answer questions that need data that are mostly based on the text. at first, discourse analysis has been used widely in the field of linguistic and psychology. but recently, it is also used by other social fields such as sociology, politics, anthropology, communication studies and management and organization studies (tonkiss, 2001). literally, discourse analysis rest upon text and document but then develops further to social context as what tonkiss argues that it is not only interesting about language that seems to be understood in more transparent and in a direct interpretation, but also relevant to understood on how social reality is constructed and reproduced. thus, it is useful using discourse analysis to understand how the role of village owned enterprises so far and to know what the local government’s perception is toward village owned enterprise in particular. by understanding how the problem of village owned enterprise is constructed and reproduced, propositions on how to strengthen the role of village owned enterprise is made. in doing discourse analysis, the types of data vary, from books, articles, journals, research papers and institutional websites. all the information and data collected were critically examined and described in order to answer the research objectives. the second method is focus group discussion (fgd). the fgd is more or less about perceptions of particular group on issues or events. in this method, people are encouraged to share their beliefs, norms and value informally (parker and tritter, 2006). the fgd is used in this research to cover information about village owned enterprise from different perspectives. the fgd was exploring information on village owned enterprise implementation among bureacrats and villagers. conclusion it seems that the role of village owned enterprises has not been optimally explored so far. but the new village law no. 6 of 2014 could be a turning point to revive the role of village owned enterprise, especially in village development. it could be an important stimulus for the development of the village owned enterprise. realizing its potentials for rural development, then strategy to strengthen the role of village owned enterprise is really important. the research show that the problem to the efficiency and effectiveness of village owned enterprise is the lack of network and participation from villagers. to this extent, suggestions to solve the problem vary from leadership style of village leader to promote the existance of village owned enterprise, doing collaborative actions with the third parties, such as company, or other village owned enterprises which shared the same spirit. another important issue that should not be neglected is how to improve villagers participation. enhancing villagers community through village forum could be a way to promote sense of belonging from villagers to the village owned enterprise. village forum could be a media to share thought, ideas and informations. reference djohan, dhohermansayah. (2009). teori dan praktek pemerintahan daerah. jakarta: grasindo. journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 5-10 10 handono, eko prabowo t. (2012). the role of credit unions/cu in national development, paper national seminar on "youth together building the nation economy", economic faculty, sanata dharma university. internal affair minister regulation number 39/2010 about village owned enterprise (bumdes). jakarta: ministry of internal affair. ire. (2013). jalan panjang mengawal ruu desa. yogyakarta: flamma. knox, paul and mccarthy, linda m. (2011). urbanization: an introduction to urban geography. kindle press. rustiadi, eman. (2010). perencanaan dan pengembangan wilayah jakarta. jakarta: crespent press. sudjito, arie. (2011). politik ketimpangan dan pembangunan. yogyakarta: ire yogya press. journal of accounting management and economics vol. 19, no. 2, 2017 year, pp. 53-60 published by faculty of economics and business, universitas jenderal soedirman published online on july 11, 2017 in http://jos.unsoed.ac.id/index.php/jame  correspondence to : rahayuutaminingsih@yahoo.com received: may 29, 2017 revised: june 5, 2017 accepted: june 19, 2017 introduction recently, firms are harder to compete with other firms especially in this highly competitive business environment. in facing this environment, they need to enhance their strategy to attain the sustainable competitive advantage for further growth and sustainment for the firm. human resources is one of the factors that becomes important source in gaining the competitive advantage (luthans and peterson, 2002). as a part of the growing and developing business service sector that needed a special attention regarding their competitiveness in the business is in this case is the hospitality industry. the hospitality industry around the world are concerns on the issue of human resource as the number one item of for hotel and restaurant operators (enz, 2004; enz, 2001). hospitality employees is very important in delivering the service given from the company to their customers. the work performed by hospitality employees obliges them to provide excellent service for their customers (jung and yoon, 2015), which later would bring the good performance for the company and end up with positive business outcome. this indicates the study of human resource management (hrm) in hospitality is so crucial where service organization’s human resources are its potential for competitive advantage. through their needs for competiting in the business sector however also has been challenging for the firm itself. mostly the challenge is comes from the human capital that works in the hospitality industry. the employee is often untrained and unskilled. also, the demand of long working hours, low payment and unclear career path makes the employees only seen their jobs in the hospitality as a stepping stone to other careers which make high rate of turnover, antecedents and consequences of employee engagement sample on generation y hospitality employees r. utaminingsih1, r. purnomo2 1,2,3 department of management, faculty of economics and business, jenderal soedirman university, indonesia abstract this research is a study of the antecedents and consequences of employee engagement that is focused on the sample which is a generation y. this study was conducted on operational employees working in the field of hospitality. this study takes the title: "antecedents and consequences of employee engagement (sample on generation y hospitality employees)". this research is an associative modeled study that investigates the causal relationship with quantitative approach. the population in this study is all hotel employees who work on five hotels listed. the number of respondents taken in this research is 130 respondents. and using questionnaires to obtained the data. respondents from this study are workers who work in the operational section who have jobs to serve hotel visitors directly. purposive sampling method is used in the determination of respondents. based on the results of research and data analysis using multiple regression analysis and simple regression analysis showed that: (1) perceived organizational support has a positive effect on employee engagement, (2) organizational justice has a positive effect on employee engagement, (3) employee engagement has a positive effect on job satisfaction , (4) employee engagement has a positive effect on job performance. keywords employee engagement; perceived organizational support; organizational justice; job satisfaction; job performance; generation y journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 53-60 stress , and also low job performance (pornmit, 2016). a very significant aspect to be taken into consideration when discussing present human resources management challenges is the existence of three differents generational workforce that are currently active (mihaela and cristina, 2016). they are baby boomers (1946-1964), generation x (1965-1979) and generation y (1980-1999) (crampton and hodge, 2011). within the difference era of these generations they have different perception and values. in an organizational context, generational characteristics may lead to formulating distinct generational perceptions and values which are chellenging for the managers. individuals of each generation are influenced by the political, economic or cultural context in which they evolve and the historic events that shape their values (mannheim, 1952). this present study focus on the generation y as a sample because right now they began to fill up the workforce and also the baby boomers are beginning to leave the workforce. consistently, milne and ateljevic (2001) argued that the timing of gen y’s entrance is combined with the rise of tourism as the world’s largest and fastest growing industry. generation y brings a unique values and needs that are differs from their former generation and expectations that employers have not had experience hiring and managing (fernandes et al., 2011 ). the generation y in the literature often identified to have a cultural clash with older generations which make it challenges to understand their work-related behaviour in organizations. generation y are thought to be very demanding that they have certain work value, attitudes and perception that are very different with the previous generation and they are doubted about how engaged they are to the organization (the society for human resources management, 2015). infact, the performance is determine by many factors, and one variable that has been increasingly receiving attention as the key determinant of performance is employee engagement (macey et al., 2009). employee engagement is an emerging and evolving concept in the business, management, industrial and organizational psychology, and human resource fields (wollard and shuck, 2011). an engaged employee will perform better than the others who aren’t engaged. an engaged employees often experience positive emotions, and the positive emotions such as joy and interest that will urge the capacity to expand people's thought (fredrickson, 2003). from the research, it clearly seems that employee engagement matters. literature review employee engagement engagement is the harnessing of organization members’ selves to their work roles. in engagement, people employ and express themselves physically, cognitively, and emotionally during role performances (kahn, 1990). employee engagement also developed from positive psychology that emphasizes human strengths and optimal functioning rather than malfunctioning and weaknesses (seligman and csikszentmihalyi, 2000). according to saks (2006), employee engagement itself is a distinct and unique construct consists of cognitive, emotional, and behavioral components associated with individual role performance. engagement is not an attitude whether it is the degree to which an individual is attentive and absorbed in the performance of their roles. engagement has to do with how individuals employ themselves in the performance of their job. perceived organizational support pos refers to an employee’s perception that the organization values their work contributions and cares about the their wellbeing, which is important benefits for employees and employers (eisenberger et al., 1986). perceived organizational support reflects the organization’s overall expectations of its members and recognition of personal value and their contribution in a subjective perception way. pos provides employees with a simple way to understand their valuation by the organization and may vary from the view that the organization regards them very positively (rhoades and eisenberger, 2002). organizational justice organizational justice is a term developed by organizational psychologists refers to the just, fair and ethical manner in which organizations treat their employees (cropanzano, 1993). where, justice refers to perceptions of employees about fair treatment received from an organization and their behavioral reaction to such perceptions (james, k 1993). journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 53-60 job satisfaction job satisfaction as a pleasurable or positive emotional state resulting from the appraisal of someone’s job or job experiences, or could be explained as the extent to which employees like their jobs (locke, 1969). robbins (2005) defined job satisfaction as a collection of feelings that an individual holds towards their job. job performance viswesvaran and ones (2000) defined job performance as an outcomes that employees undertake which contribute to organizational goals. behaviours. sarmiento et al. (2007) stated job performance as the result of two elements, which consist of the abilities and skills (natural or acquired) that an employee possesses, and their motivation to use them in order to perform a better job. job performance is typically conceptualized as an actions and behaviors that are under the control of the individual that contribute to the goals of the organization (rotundo and sackett, 2002, p. 66). generation y generation is a group of individuals of a similar age who share historical experience history from the perspective of the same phase of life (bickel and brown, 2005). there is no general consensus within the academic and literature regarding the age span of the different generations (ringer and sharma 2006). different studies identified different time periods and characteristics, depends on the source. while differences exist among studies in the precise years of birth that define the different generations, it is generally agreed that there are four generations (anantatmula and shrivastav, 2012). these classifications are the veterans, baby boomer generation, generation x and generation y. this study uses the theory from crampton and hodge (2011) as the divided time periods as follows: a. veterans (also known as traditionalists or silent generation); (1925-1945). b. baby boomers (1946-1964). c. generation x (also known as baby busters) (1965-1979). d. generation y (also known as nexters, millenials, or trophy generation) (1980 to 1999). diversities among generations that has the relevance of identifying different managerial solutions for different groups of workers as well as organizational architectures that enable integrating (and hopefully making full use of) their diverse preferences and behaviours (eisner, 2005). hypothesis development developed from the study by kahn (2006) karatepe (2013) the hypothesis can be formulated as follows: h1: perceived organizational support will effect positively to employee engagement. h2: organizational justice will effect positively to employee engagement. h3: employee engagement will effect positively to job satisfaction. h4: employee engagement will effect positively to job performance figure 1. research model methods type of research type of research is a associative model which investigate the causal relationships with quantitative approach. location of the study held in five hotels in banyumas residency namely: java heritage hotel, hotel santika purwokerto, queen garden hotel baturaden, meotel purwokerto, atrium hotel & resort. research object the research objects are generation y hospitality employee staff from operational job (e.g frontline, food and beverage service, food and beverage product, etc). journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 53-60 population and sample population in this present study is a generation y hotel employees. the sample that are needed to be taken are those generation y where according to crampton and hodge (2011) generation y are those who were born from 1980 to 1999. in this research the sample are generation y with age range from 22-37 years old and also the sample taken to an operational staff hotel employee. because they plays an important role for the organization. means, that they will give service given from the company directly to the customer. the representative for regression analysis techniques is the appropriate sample size between 100 – 200 (suliyanto, 2006). in this research, uses 130 respondents to anticipate the questionnaire which is not valid. type and resource data this research will be using primary data which obtained from questionnaire that directly come from respondents results and discussion this present study uses a multiple regression analysis and simple regression analysis. the first and second hypothesis analyzed with the multiple regression analysi, then the third and fourth hypothesis was analyze with simple regression analysis. measurement results will reported on table 1 in the summary of regression results. table 1. summary of regression results variable employee job job engagement satisfaction performance pos 0.613 * organizational 0.168 * justice 0.349 * 0.347 * employee engagement *p < 0.05 first hypothesis testing from the results summary of regression results in table 4.13, it has got the .(0.000) < (0.05). thus, the ho is rejected and ha is accepted, it can be seen that perceived organizational support has a positive and significant effect on employee engagement. therefore, the first hypothesis which states that perceived organizational support has a positive effect on employee engagement is accepted. second hypothesis testing from the results summary of regression results in table 4.13, it has got the .(0.000) < (0.05). thus, the ho is rejected and ha is accepted, it can be seen that organizational justice has a positive and significant effect on employee engagement. therefore, the second hypothesis which states that organizational justice has a positive effect on employee engagement is accepted. third hypothesis testing from the results summary of regression results in table 4.13, it has got the .(0.000) < (0.05). thus, the ho is rejected and ha is accepted, it can be seen that employee engagement has a positive and significant effect on job satisfaction.therefore, the third hypothesis which states that employee engagement has a positive effect on job satisfaction is accepted. fourth hypothesis from the results summary of regression results in table 4.13, it has got the .(0.000) < (0.05). thus, the ho is rejected and ha is accepted, it can be seen that employee engagement has a positive and significant effect on job performance. therefore, the fourth hypothesis which states that employee engagement has a positive effect on job performance is accepted. conclusion based on the result of multiple regression analysis and simple regression analysis, it can be concluded as follows: 1. perceived organizational support has a significant influence on generation y hospitality employee. it means that, journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 53-60 for the generation y hospitality employee the higher level of perceived organizational support will make the employee engagement getting stonger. in other words, the relation of both perceived organizational and employee engagement are positive. 2. organizational justice had a significant influence on generation y hospitality employee. it means that, for the generation y hospitality employee the higher level of organizational justice will make the employee engagement getting stonger. in other words, the relation of both organizational justice and employee engagement are positive. 3. employee engagement had a significant influence on generation y job satisfaction. it means that, for the generation y hospitality employee the higher level of employee engagement will make the employee’s job satisfactrion getting stonger. in other words, the relation of both employee engagement and job satisfaction are positive. 4. employee engagement had a significant influence on generation y job performance. it means that, for the generation y hospitality employee the higher level of employee engagement will make the employee’s job satisfactrion getting stonger. in other words, the relation of both employee engagement and job satisfaction are positive. references ahmadi , s. a., tavakoli , s., & heidary, p. p. 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(2012). relationships between self-efficacy and work engagement and the effects on job satisfaction: a survey on certified public accountants. procedia social and behavioral sciences, volume 58, 370-378. journal of accounting management and economics vol. 20, no. 2, 2018, pp. 7-17 published by faculty of economics and business, universitas jenderal soedirman published online on july, 9 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 onlineissn: 2620-8482  correspondence to : linafitri23@yahoo.com received: may 16, 2018 revised: may 32, 2018 accepted: may 14, 2018 introduction social media instagram became one of the most familiar social medias in indonesia. indonesia has topped asia pacific's list of instagram's biggest markets with 45 million active users per month, according to the social media platform's internal data. the number of users more than doubled from the 22 million in early 2016. by the end of 2017's first quarter, indonesia accounted for over 6 percent of instagram's 700 million monthly active users (the jakarta post, 2017). related with the use of instagram as powerful platform for marketers, and the number of instagram users in indonesia, it can be opportunity for marketers to promote their products. to get attention of potential customers, marketers use people with thousands followers on their instagram account, which called celebgram (celebrity instagram). the concept of celebgram is basically come from the concept of celebrity endorsement, who is known by the public for his or her achievements in areas other than that of the product class endorse (friedman & friedman, 1979). to develop previous researches, this research will analyze the effect of celebrity endorsement related attitude towards brand & brand image and the influence to purchase intention on rubylicious store. rubylicious store utilizes instagram in every single activity such as posting new collections, giving informations, and also as a media to showing up its celebrity endorser; ayudia bing slamet. based on interview result with rubylicious management, one of factors that influence customers attractiveness is by celebrity endorsement, especially for ayudia bing slamet as celebrity endorser proved by increasing followers number on rubylicious instagram account and amount of likes on ayudia photos is bigger compared with noncelebrity photos. this research will analyze the effect of celebrity endorsement characteristics related attitude towards brand & brand image and the influence to purchase intention on the influence of celebrity endorsement in social media instagram on attitude towards brand and brand image to customer purchase intention study on ayudia bing slamet for rubylicious brand fatiha rahmalina fitri1 1department of management, faculty of economics and business, jenderal soedirman university, indonesia abstract social media instagram become a platform that give chance for business actors, because instagram is the most popular social media used in indonesia. one of fashion industries in indonesia, rubylicious, take this opportunity to market the products through social media instagram. rubylicious embrace one of influencers in instagram; ayudia bing slamet as its endorser for rubylicious brand. this research was conducted to analyze the indicators of celebrity endorsement (credibility, attractiveness, familiarity, & match-up congruence), attitude towards brand, brand image, to purchase intention. the research methodology used for this study is a case study with survey research method. convenience sampling technique derived from non-probability sampling techniques are used for sample selection. the sample of this research is 175, from people who know the existance of rubylicious and ayudia bing slamet. statistical software spss and amos is used to analyze the data. the research has implications for rubylicious and other marketers; they can consider some factors needed of celebrity to endorsement strategy. the limitation of this research is some of answers less contributed to explain respondents’ perception clearly. keywords celebrity endorsement; attitude towards brand; brand image; purchase intention journal of accounting management and economics , vol. 20, no.2, 2018, pp. 7-17 12 rubylicious through social media instagram with ayudia bing slamet as its celebrity endorser using four indicators of celebrity (credibility, attractiveness, familiarity, & match-up congruence). purpose a. analyze of celebrity endorser’s credibility influence on attitude towards brand b. analyze of celebrity endorser’s attractiveness influence on attitude towards brand c. analyze of celebrity endorser’s familiarity influence on attitude towards brand d. analyze of celebrity endorser’s match-up congruence influence on attitude towards brand e. analyze of celebrity endorser’s credibility influence on brand image f. analyze of celebrity endorser’s attractiveness influence on brand image g. analyze of celebrity endorser’s familiarity influence on brand image h. analyze of celebrity endorser’s match-up congruence influence on brand image i. analyze of attitude towards brand influence on purchase intention j. analyze brand image influence on purchase intention literature review and hypotheses celebrity endorsement celebrity endorser is an individual who is known by the public for his or her achievements in areas other than that of the product class endorsed (friedman & friedman, 1979). endorsement is a channel of brand communication in which a celebrity acts as the brand’s spokesperson and certifies the brand’s claim and position by extending his/her personality, popularity, stature in the society or expertise in the field to the brand (lomboan, 2013). according to shimp (2007), extensive research has demonstrated that two general attributes, credibility and attractiveness, contribute to an endorser’s effectiveness, and that each consists of more distinct subattributes. to facilitate the student’s memory with respect to endorser characteristics, we use the acronym tears to represent five discrete attributes: a. trustworthiness, refers to the honesty, integrity, and believability of a source. b. expertise, refers to the knowledge, experience, or skills possessed by anendorser as they relate to the endorsed brand. c. attractiveness, means more than simply physical attractiveness— includes any number of virtuous characteristics that consumers may perceive in an endorser: intellectual skills, personality properties, lifestyle characteristics, athletic prowess, and so on. d. respect, represents the quality of being admired or even esteemed due to one’s personal qualities and accomplishments. e. similarity, represents the degree to which an endorser matches an audience in terms of characteristics pertinent to the endorsement relationship—age, gender, ethnicity, and so on. previous study conducted by miguel (2012) explain, selecting the perfect celebrity to endorse a product or brand is not an easy task. many researches have been done in order to help on the construction of a guideline model to select the endorser. some models improved that will discuss in this paper are: celebrity credibility credibility is the extent to which the recipient sees the source as having relevant knowledge, skills, or experience and trusts the source to give unbiased, objective information (belch & belch, 2008). ing & furuoka (2007) already classified source of credibility into (1) expertise: qualified, knowledgeable, skilled, experience, expertise, dependabe; and (2) trustworthiness: honest, reliable, sincere, trustworthy. celebrity attractiveness according to kahle & homer (1985), physical attractiveness is an informational cue which involves effects that are subtle, pervasive, and inescapable; produces a definite pattern of verifiable differences; and transcends culture in its effects. according to previous research by ing & furuoka (2007), indocators of source attractiveness could be covered by: classy; beautiful; elegant; and eye-catching. journal of accounting management and economics , vol. 20, no.2, 2018, pp. 7-17 13 celebrity familiarity according to belch and belch (2001), familiarity is the presumed resemblance as knowledge that a celebrity endorser possesses through exposure. according to previous research by minh ha & hung lam (2017), familiarity of celebrity endorsement can be indicated by several factors below: frequency to see celebrity on advertisements; frequency to see celebrity at events or festivals; and frequency to see celebrity on internet celebrity match-up congruence celebrity matchup principle with product is as important as all other attributes pertains to celebrity for high social acceptability and strengthening the credibility of celebrity (kotler, 1997). the match-up consists of two central terms: the perceived fit and the image of the celebrity (hoekman, 2011). hassan & jamil (2014), also mentioned two factors in match-up hypothesis, (1) people desire to identify the product with source and so congruity of source with product is much important, (2) people consume those brands which have some association with personalities e.g. relates the brand with own personality, colleagues, fellows, family members or celebrity. attitude towards brand attitude is considered as key concept on consumer behavior that was defined as set of beliefs, experience and feelings forming a predisposition to act in a given direction (chandon, 2011). according to sallam & algammas (2016), attitude is an individual’s internal evaluation of an object such as a branded product. an attitude is a permanent, general assessment of people’s objects, advertisements or issues (hoekman, 2011). attitudes are often considered relatively stable and are enduring predisposition for consumer to behave in particular way (hoyer and macinnis in adyatami & krisjanti, 2015). brand image brand image represents the associations that are activated in memory when people think about a particular brand (shimp & andrews, 2013). according to kotler (2001), brand image also defined as a person’s beliefs, ideas, and impression regarding to an object. brand image is similar to self-image of consumers as consumers associate themselves with brands (graeff, 1997). the american marketing association (ama) in mirzai et al. (2016), defines a brand image as: the perception of a brand in the minds of persons. the brand image is a mirror reflection (though perhaps inaccurate) of the brand personality or product being. it is what people believe about a brand their thoughts, feelings, expectations. purchase intention when intention is someone’s desire to do something in the future, hassan & jamil (2014) stated purchase intention refers to plan to buy something in future for use but prior to this a cognitive process works behind where several factors consumer perception about product or source person really matters. purchase intention usually is related to the behavior, perceptions and attitudes of consumers (mirabi et al., 2015). methods type of research is causal quantitative research with survey method using questionnaires for 175 respondents who know the existance of rubylicious and ayudia bing slamet. the measurement scale used in this study is likert scale type. the answer of each instrument using likert scale with 7 scales have gradations from strongly positive to strongly negative. figure 1. research model h1: celebrity endorser’s credibility has positive influence on attitude towards brand h2: celebrity endorser’s attractiveness has positive influence on attitude towards brand h3: celebrity endorser’s familiarity has positive influence on attitude towards brand h4: celebrity endorser’s match-up has positive influence on attitude towards brand h5: celebrity endorser’s credibility has positive influence on brand image h6: celebrity endorser’s attractiveness has positive influence on brand image journal of accounting management and economics , vol. 20, no.2, 2018, pp. 7-17 14 h7: celebrity endorser’s familiarity has positive influence on brand image h8: celebrity endorser’s match-up has positive influence on brand image h9: attitude towards the brand has positive influence on purchase intention h10: brand image has positive influence on purchase intention results and discussion characteristics of respondents from 175 respondents mostly came from purwokerto with percentage 57.71%, the age of respondents in average 20-22 years old with percentage 81.14%, for the occupation is mostly students with percentage 85.72%, the range of using instagram mostly spend 4-7 hours with percentage 39.43%, people follow celebrity’s instagram account have percentage 49.71%, and for who follow rubylicious’s instagram account have percentage 65.14%, the source of information mostly came from friend with percentage 49.14%, mostly respondents with percentage 79.43% had purchased product with most product purchased was shirt with percentage 61.87%. development of path diagram refers to the model development that has a strong theoretical justification, it can be determined that research model of this study is divided into 3 (three) substructures, where each structure has dependent and its independent variables are as follows: causal relationship of first substructure dependent varable : attitude towards brand (attb) independent varables : celebrity credibility (ccr), celebrity attractiveness (catr), and celebrity familiarity (cfm), and celebrity match-up (cmu). structural equation : attb = 0.122ccr + 0.154 catr + 0.427cfm + 0.313cmu causal relationship of second substructure dependent varable : brand image (bim) independent varable : celebrity credibility (ccr), celebrity attractiveness (catr), and celebrity familiarity (cfm), and celebrity match-up (cmu). structural equation : bim = 0.170ccr + 0.213catr + 0.325 cfm + 0.250cmu causal relationship of third substructure dependent variable : purchase intention (pint) independent varable : attitude towards brand (attb) and brand image (bim). structural equation : pint = 0.411attb + 0.509bim equation of research model exogenous endogenous x1_1 = 0.882ccr + 0.055 y1_1 = 0.919attb + 0.028 x1_2 = 0.910ccr + 0.043 y1_2 = 0.912attb + 0.028 x1_3 = 0.859ccr + 0.049 y1_3 = 0.830attb + 0.044 x1_4 = 0.910ccr + 0.041 y1_4 = 0.870attb + 0.035 x2_1 = 0.777catr + 0.059 y2_1 = 0.844bim + 0.045 x2_2 = 0.859catr + 0.048 y2_2 = 0.890bim + 0.054 x2_3 = 0.857catr + 0.056 y2_3 = 0.911bim + 0.048 x2_4 = 0.847catr + 0.055 y3_1 = 0.860pint + 0.086 x3_1 = 0.856cfm + 0.054 y3_2 = 0.724pint + 0.099 x3_2 = 0.825cfm + 0.059 y3_3 = 0.788pint + 0.097 x3_3 = 0.786cfm + 0.061 x4_1 = 0.921cmu + 0.026 x4_2 = 0.918cmu + 0.027 x4_3 = 0.938cmu + 0.023 x4_4 = 0.876cmu + 0.037 confirmatory factor analysis (cfa) causal relationship estimate s.e. c.r. x1 <--celebrity_credibility 1.000 x2 <--celebrity_credibility .968 .056 17.306 x3 <--celebrity_credibility .868 .057 15.189 journal of accounting management and economics , vol. 20, no.2, 2018, pp. 7-17 15 causal relationship estimate s.e. c.r. x9 <--celebrity_familiarity 1.000 x10 <--celebrity_familiarity 1.009 .086 11.738 x4 <--celebrity_credibility .936 .055 17.011 x5 <--celebrity_attractiveness 1.000 x6 <--celebrity_attractiveness 1.095 .085 12.916 x8 <--celebrity_attractiveness 1.118 .090 12.361 x11 <--celebrity_familiarity 1.037 .085 12.140 x23 <--purchase_intention 1.000 x25 <--purchase_intention .986 .086 11.466 x24 <--purchase_intention .889 .088 10.087 x12 <--celebrity_matchup 1.000 x14 <--celebrity_matchup 1.000 .047 21.417 x13 <--celebrity_matchup 1.006 .050 20.233 x15 <--celebrity_matchup .997 .054 18.311 x7 <--celebrity_attractiveness 1.146 .092 12.423 x17 <--attitude_towards_brand 1.010 .059 16.984 x18 <--attitude_towards_brand .983 .068 14.514 x19 <--attitude_towards_brand 1.000 x22 <--brand_image 1.165 .074 15.741 x21 <--brand_image 1.197 .078 15.273 x20 <--brand_image 1.000 x16 <--attitude_towards_brand 1.043 .059 17.600 based on table, it can be seen that the critical ratio values of each indicator in confirmatory factor analysis (cfa) model is greater than 2.0. it shows that each indicator is significant as dimension of the latent factors formed. thus, it can be stated that each indicator or dimension forming the latent variables of research model have shown undimensionality. full model analysis after analyzing the measurement model through confirmatory factor analysis (cfa) where each variable indicator can be used to prove define latent constructs, then the next step is to conduct a full model sem analysis with the model result is as follows: journal of accounting management and economics , vol. 20, no.2, 2018, pp. 7-17 16 figure 2. full model sem normality evaluation of data variable min max skew c.r. kurosis c.r. x16 3.000 7.000 -.388 -2.096 -.022 -.060 x20 3.000 7.000 -.421 -2.273 -.354 -.957 x21 2.000 7.000 -.459 -2.479 -.269 -.726 x22 2.000 7.000 -.282 -1.522 -.537 -1.449 x19 3.000 7.000 -.419 -2.261 -.286 -.772 x18 3.000 7.000 -.436 -2.357 -.479 -1.292 x17 3.000 7.000 -.392 -2.115 -.332 -.897 x7 2.000 7.000 -.240 -1.296 -.671 -1.812 x15 3.000 7.000 -.447 -2.411 -.426 -1.149 x14 3.000 7.000 -.403 -2.178 -.267 -.720 x13 3.000 7.000 -.383 -2.065 -.441 -1.192 x12 3.000 7.000 -.402 -2.171 -.310 -.836 x25 2.000 7.000 -.381 -2.058 -.521 -1.406 x24 2.000 7.000 -.419 -2.261 -.339 -.915 x23 3.000 7.000 -.385 -2.078 -.531 -1.433 x6 3.000 7.000 -.417 -2.254 -.638 -1.723 x5 3.000 7.000 -.385 -2.079 -.584 -1.577 journal of accounting management and economics , vol. 20, no.2, 2018, pp. 7-17 17 variable min max skew c.r. kurosis c.r. x8 3.000 7.000 -.322 -1.737 -.709 -1.914 x10 3.000 7.000 -.418 -2.258 -.524 -1.416 x4 2.000 7.000 -.168 -.907 -.792 -2.138 x3 2.000 7.000 -.121 -.653 -.658 -1.778 x2 3.000 7.000 -.307 -1.659 -.876 -2.366 x1 3.000 7.000 -.436 -2.357 -.765 -2.067 x9 3.000 7.000 -.411 -2.219 -.477 -1.289 x11 3.000 7.000 -.296 -1.597 .153 .413 multivariate 13.421 2.416 based on the data in table, it can be seen that value of critical ratio skewness value all indicators point to a normal distribution, because each critical ratio value is less than the absolute value of ±2.58 at the significant level of 0.01. therefore, it can be concluded that data of observed variable is proved in normally distributed. test result of univariate outliers evaluation z-score n minimum maximum mean std. deviation zscore: x1 175 -1.82868 1.16215 .00000 1.00000 zscore: x2 175 -1.85869 1.32244 .00000 1.00000 zscore: x3 175 -2.64002 1.52969 .00000 1.00000 zscore: x4 175 -2.60616 1.47325 .00000 1.00000 zscore: x5 175 -2.24272 1.44250 .00000 1.00000 zscore: x6 175 -2.32891 1.35108 .00000 1.00000 zscore: x7 175 -2.70801 1.55370 .00000 1.00000 zscore: x8 175 -2.04391 1.43721 .00000 1.00000 zscore: x9 175 -2.62960 1.38068 .00000 1.00000 zscore: x10 zscore: x11 175 175 -2.36498 -2.79956 1.46716 1.02797 .00000 .00000 1.00000 1.00000 zscore: x12 175 -2.34027 1.34105 .00000 1.00000 zscore: x13 175 -2.27961 1.36360 .00000 1.00000 zscore: x14 175 -2.34685 1.38677 .00000 1.00000 zscore: x15 175 -2.41948 1.13112 .00000 1.00000 zscore: x16 175 -2.80838 1.08443 .00000 1.00000 zscore: x17 175 -2.72943 1.22626 .00000 1.00000 zscore: x18 175 -2.39913 1.35789 .00000 1.00000 zscore: x19 175 -2.67006 1.19959 .00000 1.00000 zscore: x20 175 -2.39531 1.41541 .00000 1.00000 zscore: x21 175 -2.55664 1.57078 .00000 1.00000 zscore: x22 175 -2.91436 1.40779 .00000 1.00000 zscore: x23 175 -2.14923 1.31727 .00000 1.00000 zscore: x24 175 -2.51751 1.54673 .00000 1.00000 zscore: x25 175 -2.71273 1.33095 .00000 1.00000 based on data in table, it can be seen that the z-score of each indicator is less than ±3, it can be stated that there is no univariate outlier in this research data. goodness of fit index of full model analysis goodness of fit index cut of value results category x 2 -chi-square < 221.438 528.943 marginal probability > 0.05 0.000 marginal cmin/df < 2.00 2.042 marginal gfi > 0.90 0.811 marginal agfi > 0.90 0.763 marginal tli > 0.95 0.926 marginal journal of accounting management and economics , vol. 20, no.2, 2018, pp. 7-17 18 cfi > 0.95 0.936 marginal rmsea < 0.08 0.077 good further explanations of data in table are as follows: 1) chi-square and probability based on results of sem analysis is obtained the chi-square value of 528.943 is greater than chi-square table value of 221.438. the chi-square statistic value is accepted in marginal category, because of it produces a probability value of 0.000 is less than α (0.05). thus, the null hypothesis which states that there is no difference between the population covariance matrix and the sample covariance matrix estimated is accepted. 2) the minimum sample of discrepancy function with degree of freedom (cmin/df) based on the result of sem analysis is obtained the cmin/df value of 2.042 is greater than 2.00. the cmin/df value indicated that acceptable fit between model and data, so it can be accepted in a marginal category. 3) goodness-of-fit index (gfi) based on the sem analysis result is obtained the gfi value of 0.811 is less than cut of value is 0.90. the gfi value is accepted in marginal category. 4) adjusted goodness of fit index (agfi) based on the result of sem analysis is obtained the agfi value of 0.763 is less than cut of value is 0.900. accordingly, agfi value is still accepted in marginal category, because the statistic value is greater than 0.6 but it less than 0.9. 5) tucker lewis index (tli) result of sem analysis obtained the tli value of 0.926 is less than cut of value (0.950), so the tucker lewis index (tli) test can be accepted in marginal category. 6) comparative fit index (cfi) result of sem analysis is obtained the cfi value of 0.936 is less than cut of value (0.950), so the comparative fit index (cfi) test can be accepted in marginal category. 7) rmsea (the root mean square error of approximation) finally, sem analysis result shows that rmsea value of 0.077 is less than cut of value of 0.080. accordingly, the rmsea value is accepted in a good category. hypotheses testing summary results of the critical ratio (cr) values and its value of ttable can be seen in table 1. causal relationship c.r. t table (one tiled) attitude_towards_brand <celebrity_credibility 2.125 1.660 attitude_towards_brand <celebrity_attractiveness 2.053 1.660 attitude_towards_brand <celebrity_familiarity 5.094 1.660 attitude_towards_brand <celebrity_matchup 3.823 1.660 brand_image <celebrity_credibility 2.496 1.660 brand_image <celebrity_attractiveness 2.388 1.660 brand_image <celebrity_familiarity 3.421 1.660 brand_image <celebrity_matchup 2.607 1.660 purchase_intention <attitude_towards_brand 4.809 1.660 purchase_intention <brand_image 5.803 1.660 refers to the critical ratio of each causal relationship in table 1 above, further explanations of research hypotheses are as follows: first hypothesis testing based on the confidence level of 95% (α = 0.05) and degree of freedom (n k) with one tiled test, the t table value of this causal relationship is 1.660. from the result of structural equation modeling (sem) analysis, it is obtianed the cr value of celebrity credibility on attitude towards brand of 2.125 is greater than value of ttable. thus, ho is rejected and ha is accepted, it means that celebrity endorser’s credibility has a positive and significant effect on attitude towards brand. therefore, first hypothesis which states that celebrity endorser’s credibility has journal of accounting management and economics , vol. 20, no.2, 2018, pp. 7-17 19 positive influence on attitude towards brand is accepted. second hypothesis testing sem analysis result shows that the cr value of celebrity attractiveness on attitude towards brand of 2.053 is greater than value of ttable. thus, ho is rejected and ha is accepted, it means that celebrity endorser’s attractiveness has a positive and significant effect on attitude towards brand. therefore, second hypothesis which states that celebrity endorser’s attractiveness has positive influence on attitude towards brand is accepted. third hypothesis testing refers to the result of structural equation modeling analysis, it is obtianed the cr value of celebrity familiarity on attitude towards brand of 5.094 is greater than ttable value. thus, the ho is rejected and ha is accepted, it means that celebrity endorser’s familiarity has a positive significantly effect on attitude towards brand. therefore, third hypothesis which states that celebrity endorser’s familiarity has positive influence on attitude towards brand is accepted. fourth hypothesis testing furthermore, based on the sem result, it is obtianed the cr value of credibility match-up on attitude towards brand of 3.823 is also greater than value of ttable. thus, ho is rejected and ha is accepted, it means that celebrity endorser’s match-up has a positive and significant effect on attitude towards brand. therefore, fourth hypothesis which states that celebrity endorser’s match-up has positive influence on attitude towards brand is accepted. fifth hypothesis testing based on the result of sem analysis, it known that cr value of celebrity credibility on brand image of 2.496 is greater than value of ttable. thus, ho is rejected and ha is accepted, it means that celebrity endorser’s credibility has a positive and significant effect on brand image. therefore, fifth hypothesis which states that celebrity endorser’s credibility has positive influence on brand image is accepted. sixth hypothesis testing from sem analysis result, it known that the cr value of celebrity attractiveness on brand image of 2.388 is greater than value of ttable. thus, ho is rejected and ha is accepted, it means that celebrity endorser’s attractiveness has a positive and significant effect on brand image. therefore, sixth hypothesis which states that celebrity endorser’s attractiveness has positive influence on brand image is accepted. seventh hypothesis testing refers to the result of sem analysis, it can be seen that the cr value of celebrity familiarity on brand image of 3.421 is greater than ttable value. thus, the ho is rejected and ha is accepted, it means that celebrity endorser’s familiarity has a positive significantly effect on brand image. therefore, seventh hypothesis which states that celebrity endorser’s familiarity has positive influence on brand image is accepted. eighth hypothesis testing sem analysis result shows that cr value of the causal relationship between credibility match-up and brand image of 2.607 is also greater than value of ttable. thus, ho is rejected and ha is accepted, it means that celebrity endorser’s match-up has a positive and significant effect on brand image. therefore, eighth hypothesis which states that celebrity endorser’s match-up has positive influence on brand image is accepted. ninth hypothesis testing sem analysis result shows that the cr value of attitude towards brand on purchase intention of 4.809 is greater than value of ttable. thus, ho is rejected and ha is accepted, it means that attitude towards brand has a positive and significant effect on purchase intention. therefore, ninth hypothesis which states that attitude towards brand has positive influence on purchase intention is accepted. tenth hypothesis testing based on the result of structural equation modeling (sem) analysis, it is obtianed the cr value of brand image on purchase intention of 5.803 is greater than ttable value. thus, the ho is rejected and ha is accepted, it means that brand image has a positive significantly effect on purchase intention. therefore, tenth hypothesis which states that brand image has positive influence on purchase intention is accepted. journal of accounting management and economics , vol. 20, no.2, 2018, pp. 7-17 20 conclusion celebrity endorser has powerful influence on attitude towards brand and brand image, then occured customers’ purchase intention than non-celebrity. according to rubylicious experience, the latest celebrity endorser which is ayudia bing slamet, successful to bring positive influence to rubylicious in terms of customers’ brand attitude, perceived image of rubylicous brand, and its purchase intention towards the product. for further business activity using celebrity as endorser, there are several ways that rubylicious should consider, like credibility, atrractiveness, familiarity, and match-up congruence of celebrity. recommendation for further marketing strategy using celebrity as endorser, there are several ways that rubylicious should consider, as folows: a. embrace celebrity that has good credibility in terms of qualified, skilled, honesty, and trustworthy. inspite ayudia bing slamet is credible enough to be endorser of rubylicious because her skills in photography, fashion style, and persuade people, for the next endorsement rubylicious may embrace celebrity in spesific skill in the field like fashion blogger. b. embrace attractive celebrity in terms of classy, beautiful, elegant, and eyecatching. it was not a mistake to embrace ayudia bing slamet for rubylicious’s endorser, eventhough her age does not young anymore but for the soul and style, ayudia bing slamet still proper to represents some products from rubylicious. for the next, rubylicious may embrace celebrity in range age 20 – 22 years old to be representative of customers in that age. c. embrace celebrity who familiar and popular. rubylicous can see from the frequency celebrity on advertisement, frequency celebrity at events or festivals, and frequency celebrity on internet. for the latest endorser, rubylicious embraced celebrity who now popular in social media, for the next endorsement rubylicious may embrace celebrity who popular in television or can embrace celebrity that popular both in television and social media. d. embrace celebrity that match with product endorsed and able to represent brand well. the indicators are congruity, personality, fitness, and image. ayudia bing slamet successful represents rubylicious product for hijabers, because she wears hijab in daily life. for the next, rubylicious may looking for another celebrity who do not wear hijab in order to customer have different role model by celebrity that wears hijab and do not. refers to the limitations of this study, further research need to add the number of respondents, such as ideal number of respondents that proper with the analysis technique in order to obtain results that more accurate. further research also can extend the studies to incorporate the other independent, mediator or moderator variables like brand credibility and other indicators of celebrity like expertise, and develop wider object to produce the better result, more generally and objectively. additionally, also can looking for other social medias where celebrity endorsement is exist. the research is suitable not only for fashion product, but also another industry like food and even service industry. references adyatami, s., & krisjanti, m. (2015). the effects of celebrity endorsement on consumers’ attitude towards the brand and purchasing intention. international business management program, faculty of economics, atma jaya yogyakarta university. belch, g.e., & belch, m.a. (2001). advertising and promotion: an integrated marketing communications perspective (5th ed.). boston: irwin/mcgraw hill. belch, g. e., & belch, m. a. (2008). advertising and promotion: an integrated marketing communication perspective (6th ed.). new york. chandon jean-louis. (2011). consumer choice of private label brands in the french market: propostion and test of a partial mediation model. university paul cezanne. friedman, h. h., & friedman, l. (1979). endorser effectiveness by product type. journal of advertising research, 19(5), 63-71. graeff, t. r. (1997). consumption situations and the effects of brand image on consumers' brand evaluations. psychology & marketing, 14(1), 49-70. hassan, s. & jamil, a. 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(2016). the effect of attitude towards advertisement on attitude towards brand and purchase intention. international journal of economics, commerce and management, vol. 4. shimp, terence. a., (2007). advertising, promotion, and other aspects of integrated marketing communication. seventh edition. usa: cengage learning. shimp, terence. a., & andrews, craig, j. (2013). advertising, promotion, and other aspects of integrated marketing communication. ninth edition. usa: cengage learning. yosephine, l. (2017). indonesia instagram’s biggest market in asia pasific. the jakarta post, (online), (http://www.thejakartapost.com/, accessed on november 18, 2017). journal of accounting management and economics vol. 20, no. 2, 2018, pp.30-37 published by faculty of economics and business, universitas jenderal soedirman published online on july, 9 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 onlineissn: 2620-8482  correspondence to : unggulsatrio@gmail.com received: may 5, 2018 revised: may 22, 2018 accepted: 19 juni, 2018 introduction transformation is one of the organizational agenda whose success can be reviewed from organizational ability to adapt and encourage workers behavior to achieve a standard of behavior that is in line with company strategy (bouzouita, chaari, and tagina, 2017). organizational change is not only the interests of profit-oriented organizations to win business competition, but organizational change is also increasingly important to be understood by organizations that carry out public service missions, one of which is the banking sector. one of the commercial bank companies that are massively transformed in the field of financial technology is pt. bank rakyat indonesia (persero) tbk (bri). however, in the face of change, of course, it requires a readiness to adapt to the change for all members of an organization both leaders and subordinates (armenakis, harris, and mossholder, 1993). the synergy of the whole organization becomes an important factor in the development of preparedness for change (smith, 2005). the effect of a change will lead to two kinds of behavior: resistance or readiness in the form of a high support attitude toward change (abdel-ghany, 2014). the readiness of employees to face change is the most fundamental concept and determinant factor for the process of acceptance and adaptation to change (kelly, hegarty, barry, dyer, and horgan, 2017). this research will empirically test the role of perception of the quality of supervisorssubordinates interaction in leader-member exchange (lmx) to dimensions of readiness for change (rfc) that are understanding of the change need for change, personal valence, appropriateness for the change and principal support. literature review and hypotheses organizational change change is defined as moving from current state to future state or responding to threats and opportunities coming from outside the organization (george and jones, 1996; rashid, murali, and rahman, 2004). much of the failure factor of a change is by the exclusion of the human factor (evans r., 1994). therefore, human factor is very the effect of leader member exchange to dimension of readiness for change unggul satrio banguntopo1 1bank rakyat indonesia, central java abstract organizational change has been a must for companies in preserving their sustainability. pt. bank rakyat indonesia is one of state-owned companies which is now transforming massively both in its human resource sector and business process. the objective of this research is to explore deeper understanding about to what extent the influence of internal interaction between leader and member in organization structure towards employee’s readiness for change. the employee readiness for change itself are viewed from five perception employee’s personal dimensions; appropriateness of the change, need for change, personal valence, principal support and understanding of the change. the result using logistic regression test shows that leader-member interaction (lmx) has significance impact appropriateness of the change, need for change, and understanding of the change. the study can infer that, for organisation, the most important thing to create employee’s readiness for change is to provide adequate support “climate” from top-down to create readiness for change holistically. keywords organizational change; leader-member exchange; readiness for change; appropriateness of the change; need for change; understanding of the change. journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 30-37 34 important to be really prepared to be able to adapt the changes that occur. the success of change driven by factor of organization members’ readiness begins with adaptability to change. adaptability is defined as the ability to adapt, integrate, and reconfigure resources and competencies in order to achieve conformity with changing environments (evans j. s., 1991). conceptually, adaptability can be functioned as an individual attribute from a perspective that builds change belief or belief toward change (holt, armenakis, feild, and harris, 2007). perspective of individual attribute serves as an individual’s level of confidence approach to change because each individual has a different level of confidence with each other. readiness for change readiness is a cognitive indication that is reflected through cooperative support for a change (abdel-ghany, 2014). as long as a worker cognitively accepts, believes, and adopts certain plans that the company decides to move from the status quo is called readiness for change (rafferty, jimmieson, and armenakis, 2012). therefore, on the basis of perception or belief, an attitude that reflects support is a key indicator of a readiness for change. in principle, there are two pillars that contribute to the development of readiness for change that are rooted in self-efficacy, namely; workplace contribution and individual contribution. there are several dimensions of readiness for change that originate in self-efficacy. first, appropriateness is a dimension that indicates the level of confidence or belief of workers about feasibility that change will benefit the organization (holt, armenakis, feild, and harris, 2007). second, personal valence is a dimension that indicates the level of worker’s belief that change will bring benefits to the worker personally (armenakis and harris, 2002; holt, armenakis, feild, and harris, 2007; shah, irani, and sharif, 2017). third, the understanding of the change or understanding of overall change is gained through optimal organizational communication to the workers so that workers can validate the relevance of the goals of change to their work goals (van tonder, 2004). fourth, need for change. basically, workers need to be convinced and generated a sense of need to change. this sense can be generated in three ways: creating urgency that changes are a necessity, describing the current and postchange conditions, and expressing a positive expectation of change. leader-member exchange leader-member exchange (lmx) is a form of dyadic relations defined as the role-making process between leader and subordinate through a relationship of exchange of needs (generally related to interpersonal competence) in a continuous period (dansereau, graen, & haga, 1975; yukl, 2013). the basic theory of lmx is social exchange theory. the role of leaders in the process of organizational transformation is to communicate the message of change to their subordinates by realizing a strong vision, empowering existing resources, and providing confidence motivation during the adaptation of change aimed at achieving change success (mangundjaya, utoyo , and wulandari, 2015). when these aspects are successfully established by the leader then in the subordinate will build a high trust on the organization and positive perceptions as has been assumed in the process of role-making. at the trust stage reaching the domain of dyad (leader-subordinate) reciprocally will create mutual trust which becomes the most substantial factor in creating quality lmx (sue-chan, au, and hackett, 2012). hypothesis development lmx also has a correlation with mutual trust, empowerment (graen and uhl-bien, 1991), and motivation that indicate a link to the development of readiness for change in general. readiness for change is a construct variable consisting of dimensions. it is possible to test lmx on readiness for change partially per-dimension to find out which dimension is influenced by lmx most strongly on readiness for change variable. previous research conducted by kapoor, et al. (2017) indicates that lmx plays a role in increasing the intensity and effectiveness of communication between leader-subordinate that can have implications for employee understanding. the role of leaders is very influential in translating the message of change so that the role of leaders can affect the level of understanding of members of the organization so that the following hypothesis can be proposed: journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 30-37 35 h1: leader-member exchange has a positive effect on understanding of the change dimensions. capacity that a leader possesses in generating interaction in lmx tends to be more dominant. then the leader can use communication methods to improve the sense of urgency so that changes can be accepted as a need for members of the organization. previous research conducted by ochurub, et al. (2012) suggests that there is a relationship between the success of a change management with employee perceptions of change as a necessity. thus, the following hypothesis can be proposed: h2: leader-member exchange has a positive effect on need for change dimensions. previous research conducted by foks (2015) suggests that there is a relationship between organizational communication to employees regarding message of changes that has a significant positive effect on the perception of appropriateness for the change. perception is defined as the perception of individuals who see that organizational change can bring a positive impact on the company or organization as a whole. h3: leader-member exchange has a positive effect appropriateness for the change dimensions. here is presented a research framework that contains the relationship between lmx and readiness for change. figure 1. research framework methods the type of research to be conducted is quantitative. the type allows to obtain information about causal relationships between variables that are reliable and valid by using survey method. the subject of this research is the bri workers in one of the branch offices in central java as many as 253 active workers spread in the region of 21 work units. the sampling used in this study was calculation developed by slovin (ferdinand, 2013) so that as many as 155 subjects were researched by filling out the questionnaire. the method of dividing the proportion of the sample used stratified random sampling. while the data analysis used simple linear regression. results and discussion validity test based on the test results on 7 items of questions about lmx, 5 items of questions about appropriateness of the change, 5 items of questions about understanding of the change, and 4 items of questions about need for change, the value of cronbach’s alpha if item deleted indicates the total correlation of all items in the questionnaire (all variable) shows the result of each item of ≥ 0.2 means that all question items in the questionnaire have been eligible. the corrected item value indicating the validity of the content (internal validity) has also been eligible for each item of ≥ 0.2. this means that the questionnaire has been valid to perform a measurement. reliability test in the reliability test, the result of cronbach’s alpha for independent variable of lmx shows the results of 0.808 or > 0.6. similarly for the dimensions on the dependent variable of readiness for change: appropriateness of change of 0.884; need for change of 0.876; and understanding of the change of 0.869. this means the entire question items in the questionnaire used on all variables are reliable because it qualifies > 0.6. hypothesis testing lm need for change appropriateness for the change understanding of the change journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 30-37 36 the effect of leader-member exchange on understanding of the change there is an effect of leader-member exchange on the understanding of the change and is statistically significant. subjects with high quality perception of leader-member exchange increase the likelihood of higher understanding of the change than subjects with low quality perception of leader-member exchange (b = 5.59; ci (95%) = 3.10-10.08; p < 0.001). the effect of leader-member exchange on need for change there is an effect of leader-member exchange on need for change and is statistically significant. subjects with high quality perception of leader-member exchange increase the likelihood of higher need for change than subjects with low quality perception of leader-member exchange (b = 1.85; ci (95%) = 1.06-3.22; p = 0.030). the effect of leader-member exchange on appropriateness for the change there is an effect of leader-member exchange on appropriateness for the change and is statistically significant. subjects with high leader-member exchange increase the likelihood of high appropriateness for the change rather than subjects with low leadermember exchange (b = 8.63; ci (95%) = 4.63-16.06; p < 0.001). the effect of leader-member exchange on understanding of the change the results of this study are in line with research conducted by kapoor, et al. (2017) which in his study used lmx as a predictor variable (independent) to predict readiness to change. the level of employee understanding of change is one of the key factors to achieve change readiness. this is as stated in the research of shinwon, et al. (2015). the activities and effectiveness of individual communication within the organization increase the understanding of the change so that the change project can proceed as expected (shinwon, sunguk, mihyun, namgyu, and sunguk, 2015). the effect of leader-member exchange on need for change the results of this study are in line with the research conducted by ochurub, et al. (2012) in his empirical research shows that the success of a change management can be achieved when the employee feels that change is a necessity and this perception is built through communication (ochurub, bussin, and goosen, 2012). the results of another study conducted by berg, et al. (2017) show the influence of lmx on employee creativity mediated by employee willingness to take risks. the risks in this case can be aligned in the context of the uncertainty that is subject to change (berg, grimstad, skerlavaj, and cerne, 2017). the effect of leader-member exchange on appropriateness for the change the results of this study are in line with research conducted by tierney (1999) that examines the effect of social interaction (lmx) with climate perception. the findings of this study indicate that the strongest climate perception is when employees have the opportunity to foster relationships with their leaders favorably and the leaders have the perception of the organization that the organization has been change-conducive or feasible to make changes (tierney 1999). other research results that support is a study conducted by saragih, et al. (2014). transformational leadership behavior is a leadership behavior that is able to inspire and provide motivation to the subordinate in the face of change. this process can occur because of the interaction of leadersubordinate. conclusion improved lmx quality between leadersubordinate within an organization can be a factor in establishing employee perceptions that they have adequate support from the management to be ready for change. the sense of getting adequate support from leaders should be well preserved so that resistance to change does not dominate most employees. the organization may adopt a formulation of quality improvement of work interaction within each division, section, or work unit between leaders and subordinates or peer co-workers by reducing the gap between leader-subordinate in the context of the interaction of the working relationship. in order to suppress resistance to change, the organization may use the communication medium that follows the needs of employees and technologies that contain organizational change. the method can be a method for improving understanding, stimulating perception of need for change, increasing journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 30-37 37 confidence in change, and realizing support for organizational change processes. references abdel-ghany, m. m. 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(2013). leadership in organization (eighth ed.). university of albany, new york, usa: pearson education, inc. correspondence to : hariadipramono17@gmail.com received: january, 2019 accepted: march, 2019 published: march, 2019 jurnal akuntansi, manajemen dan ekonomi vol. 21, no. 1, 2019, pp. 13-22 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction one of many factors that causing the high number of internet users in indonesia is the ease of accessing the internet. people can access the internet anywhere using their mobile devices without having to use a computer. according to a survey held by apjii (asosiasi penyelenggara jasa internet indonesia) in 2016, 65% of internet user in indonesia came from java, followed by 15.7% from sumatera, 6.3% from sulawesi, 5.8% from borneo, 4.7% from bali, and 2.5% from maluku and papua. this makes java a quite promising market for internet service provider to look for potential customers. there are some internet service providers that dominate the indonesian market such as telkom, firstmedia, biznet, mnc play media and innovate. in purwokerto, there are two isp companies that already well known nationwide which are telkom who were established prior to biznet. beside those two isp, there are also another purwokerto based isp companies such as hostnet, citranet, mentarisatria and centro, and they can be competitors that should be considered by telkom. amid the increasingly tight competition of internet service providers in purwokerto, telkom must be able to maintain and reach new consumers by improving the quality of service, and competitive price so that customer satisfaction will be achieved and will eventually become a loyal customer. internet product from pt telkom is indihome (indonesia digital home). indihome is a package of communication and data services such as home phone (voice), internet (internet on fiber or high speed internet), and interactive television service (usee tv cable, ip tv). indihome was launched to replace telkom speedy which has been operating since 2004 until closed in 2015. although the number of indihome users in purwokerto is increasing every month (gumilar 2018), telkom also experiencing a problem, which is decreasing customer satisfaction as the moderating variable of customer loyalty pramono hari adi1, moch iqbal dhiaulhaq2, weni novandari3 123 management department, faculty of economic and business, universitas jenderal soedirman, indonesia abstract the internet is an aspect that become one in the daily activities of indonesian society, even in purwokerto, almost all activities involve the help of the internet. pt telkom as the largest internet service provider in indonesia has facilitate the society to get internet access with its products, indihome. lately, a competitor is emerging which threatens the existence of pt telkom as an internet service provider in purwokerto, which is biznet. therefore, pt telkom needs to examine what factors that make indihome's customers loyal. based on the problems above, this study was conducted to analyze the components of perceived product quality, perceived service quality, perceived value, and perceived price to the customer loyalty, mediated by customer satisfaction. the research methodology used for this study is a case study with survey research methods. the sample for this study were 155 people selected through convenience sampling technique derived from non-probability sampling technique. the sample comes from indihome internet users in purwokerto. the software used to analyze data is spss and amos statistical software. the research conclude that perceived product quality, perceived value, perceived price has a positive effect on customer satisfaction. perceived service quality has no effect on customer satisfaction. customer satisfaction, perceived service quality has a positive effect on customer loyalty. perceived product quality, perceived value, perceived price has no effect on customer loyalty. keywords perceived product quality, perceived service quality, perceived value, perceived price, customer satisfaction, customer loyalty jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 13-22 in selling quantity. this phenomenon can cause a problem to company because it can indicate the decrease of loyalty in the customer. it’s suitable with a research conducted by danny and chandra (2001) that states that increase in loyal customers will lead to increase in company’s sales and profit. consider that total number of internet users in purwokerto is just 49,000 from 249,000, the market is still very potential and decreased selling quantity should have been avoided. the decrease of selling quantity of indihome product can occurs because of many factors, such as the product and service quality offered by telkom, pricing and also value that offered for the customer. based from data obtained from several sources, there are some problems related to product quality, service quality, perceived price, and perceived value of indihome. telkom has fair usage policy (fup) which limits indihome users to use internet excessively. this causes users who use internet more frequently can experience the decrease of internet speed (maulana, 2016). according to viva.co.id, aside from fup, the customers sometimes experience a sudden drop of internet connection speed with no reason. when customers want to complaint to telkom’s call center number 147, the customer service can’t give exact solution to the problem (asrul, 2018). beside that, the price offered by telkom is quite expensive if compared to their closest competitor, biznet. telkom offers a 30mbps internet and tv cable package for rp575.000,00 while biznet for the same internet speed and tv cable package just priced for only rp400.000,00. with those problems from service quality and perceived price, indihome product become perceived giving less value for the consumers. previous researches show that service quality, perceived price and perceived value have positive effect towards customer satisfaction (agbor, 2011; soegoto, 2013; tampi, 2013). another study also found that perceived service quality, perceived price and perceived value directly affecting customer loyalty (lin et al., 2017; rahi and ghani, 2016; asma et al., 2018). customer loyalty customer loyalty is a deeply held commitment from a customer to re-buy a product or a service from a specific company in the future, even though there are factors that may cause a switching behavior (kotler and keller, 2016). the concept of customer loyalty is more related to behavior rather than attitude. when someone is already become a loyal customer, he represents a buying behavior defined as a nonrandom purchase expressed over time by some decisionmaking unit (griffin 2009). a customer can be a loyal customer is affected by several factors. company should pay attention to these factors in order to make them loyal to the company. according to several studies, those factors are service quality, price, and customer’s perception of value (hasan et al., 2014; hermawan et al., 2017). according to tjiptono (2006) customer loyalty is a customer's commitment to a brand, store or supplier based on a very positive nature in long-term purchases. tjiptono states four loyalty situation, no loyalty, spurious loyalty, latent loyalty and loyalty.no loyalty occurs when both attitude and repurchase behavior are weak, so no loyalty formed. spurious loyalty occurs when repurchase are made on the basis of situational considerations, such as familiarity. customer have seemingly positive attitudes towards a specific vendor, yet they are just as likely to purchase similar products from competitors. latent loyalty occurs when ustomer have a very positive attitude towards a specific vendor, but a weak repurchase behavior. loyalty is the most ideal situation wanted by marketers, where customer have positive attitude towards a product or company, followed by consistent repurchase behavior. according to griffin (2005), there are some indicators to measure customer loyalty which are makes regular repeat purchases, purchases across product and service lines, refers other and demonstrates an immunity to the full of the competition customer satisfaction satisfaction is feelings of pleasure and disappointment from a customer that result from comparing the product or service outcome to their expectations (kotler & keller, 2016). customer will feel dissatisfied if the outcome falls short of expectation, satisfied if it matches the expectation, and delighted if it exceeds the expectation. satisfied customer will eventually become a loyal customer which can lead to the increase of selling volume (hasan, 2008). company should do researches to find out whether the customer is satisfied or not. according to loureiro, et al. (2012) and irawan (2008) jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 13-22 there are some indicators to measure customer satisfaction that are: suitability of product specifications received with expected., suitability of performance and service received with expected and generally feel satisfied (with the product or the service) perceived price price is one of the customer’s consideration when deciding which product they will use. in most cases people will not buy a product if the price they have to sacrifice is too high than what they will get. price is the amount of payment that should be paid by one party to another in the return of goods or services (schindler, 2012). perceived price is the perception from a customer’s mind about a product or service price, including sacrificed money, time cost, search cost, effort and psychic cost. customer only interpret the price as cheap or expensive, and do not always remember the actual price (wang and chen, 2016). from company’s point of view, price is a component that has direct effect to the profit of the company. but from customer’s point of view, price is an indicator to compare the benefit they get and what the customer must sacrifice. according to machfoedz (2005) pricing is influenced by various factors, both internal and external factors. internal factors include the company's marketing goals, marketing mix strategies, costs, and pricing methods. external factors include market and demand traits, competition, and other environmental elements. according to tjiptono (2006) there are some indicators to measure perceived price that are price suitability with product’s quality, price suitability with product’s benefit and price competitiveness. perceived value customer perceived value is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives (kotler and keller, 2016). meanwhile schiffman and kanuk (2008) states that the perception of value is based on monetary and non-monetary costs combined with perceptions of quality. customer is influenced by perceived value when they are deciding to buy a product or service (wu, 2014). according to kanzu and soesanto (2016), there are four factors that indicate the customer perceived value, which are quality value, value of money, emotional state and social value. quality value is a benefit the customer gains from a product because of long-term and short-term reduction. value of money is a benefit gained from the perception of the expected performance of a product or service. emotional value is a benefit derived from the feelings or affective/positive emotions that result from consuming the product. social value is a benefit gained from the ability of the product to improve the social self-concept of consumers. perceived service quality service is any act of performance given from a party to another which is intangible and doesn’t resulting in any ownership of anything (kotler and keller, 2016). service can be related with physical product or not. meanwhile quality is everything that needed and wanted by the customers (yamit, 2010). thus perceived service quality can be defined as overall judgement from the customers about the excellence of service offering (ishaq, 2012). meanwhile according to wardhani (2011) perceived service quality is is a process of customer's overall evaluation of service performance opportunities. service quality is closely related to the customer’s perception of the business’ quality. lovelock and wright (2008) states that service quality should starts from customer’s needs and ends at customer’s perception. it’s mean that good service quality is not from the service provider’s point of view, but from the viewpoint of the customers. customer’s expectation formed from their past experience, word of mouth done by other people, and then compared them. according to lupiyoadi (2006) there are some indicators used known as servqual to measure service quality, which are tangibles (such as buildings, warehouse, and the physical appearance of the employees) reliability (the performance of the company must be in accordance with consumer expectations, such as timeliness, the same service for all consumers), responsiveness (provide prompt and precise service to the consumers), assurance (knowledge, courtessy and the ability of employees to grow consumer confidence in the company) and empathy (giving genuine, individualized attention to the customers by trying to understand the customer’s desire). jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 13-22 perceived product quality generally, product can be defined as something offered to the market to fulfill customer’s needs. according to kotler and keller (2016), product is anything such as physical objects, services, personalities, place, organizations or ideas that can be offered to a market for attention, acquisition, use or consumption. product is not limited to tangible goods but the intangible ones also included as product. product quality itself can be defined as consumer's assessment of the superiority or privilege of a product (tjiptono, 2008). in order to make a good perception of the product, company should make their product have advantages or superior if compared to their competitors. company should improve their product’s quality from time to time because increase in product’s quality can make consumer’s satisfied and can lead to them to make another purchase. when planning the market offer, marketers should consider about the levels of product. according to tjiptono (2008), there are some dimensions that can be used to measure perceived product quality, which are performance ( operational characteristic of the core product used by the customers), features (additional privileges in the form of complementary characteristics on the product), reliability (how strong the product is or free from any kind of damage), conformance to specification (the extent to which design and operation characteristics meet predetermined standards) and durability (related with how long the product can be used before have to be replaced with the new one). methods the type of this research is causal quantitative research with survey method using questionnaires for 155 respondents of customers of indihome product in purwokerto. the measurement scale used in this study is likert scale type. the answer of each instrument using likert scale with 7 scales have gradations from strongly positive to strongly negative. figure 1. research model results and discussion as shown in the table 1, the result of validity and reliability test is done using discriminate analysis factor. table 1 shows that loading factor value of each indicator of perceived product quality, perceived service quality, perceived value, perceived price, customer satisfaction and customer loyalty variable are greater than the critical value (0.500). therefore, all indicators of these variables are valid and it can be used as data collection instrument of this research. perceived product quality perceived service quality perceived value perceived price customer satisfaction customer loyalty jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 13-22 table 1. validity and reliability test variables indicators loading factor result perceived product quality x1 0.869 valid x2 0.813 valid x3 0.749 valid x4 0.866 valid x5 0.836 valid perceived service quality x6 0.811 valid x7 0.885 valid x8 0.906 valid x9 0.904 valid x10 0.907 valid perceived value x11 0.885 valid x12 0.755 valid x13 0.899 valid x14 0.730 valid perceived price x15 0.943 valid x16 0.938 valid x17 0.781 valid customer satisfaction x18 0.930 valid x19 0.865 valid x20 0.920 valid customer loyalty x21 0.898 valid x22 0.786 valid x23 0.869 valid x24 0.898 valid the goodness of fit test the adequacy of the model fit is determined by several goodness of fit statistic, including chi-square, the minimum sample of discrepancy function with degree of freedom (cmin/df), root mean square error of approximation (rmsea), adjusted goodness of fit index (agfi), goodness offit index (gfi) and comparative fit index (cfi), with the result summary can be seen in table 2. table 2. goodness of fit test result gof index cut of value results category x 2 -chi-square < 198.874 364.203 marginal probability > 0.05 0.000 marginal cmin/df < 2.00 1.537 good gfi > 0.90 0.844 marginal agfi > 0.90 0.802 marginal tli > 0.95 0.962 good cfi > 0.95 0.968 good rmsea < 0.08 0.059 good based on results of sem analysis is obtained the chi-square value of 364.203 is greater than chi-square table value of 198.874. the chi-square statistic value is accepted in marginal category, because of it produces a probability value of 0.000 is less than α (0.05). cmin/df value of 1.537 is less than 2.00. the cmin/df value indicated that acceptable fit between model and data, so it can be accepted in a good category. gfi value of 0.844 is less than cut of value is 0.90. the gfi value is accepted in marginal category. agfi value of 0.802 is less than cut of value is 0.900. accordingly, agfi value is still accepted in marginal category, because the statistic value is greater than 0.6 but it less than 0.9. tli value of 0.962 is greater than cut of value (0.950), so the tucker lewis index (tli) test can be accepted in a good category. cfi value of 0.968 is greater than cut of value (0.950), so the comparative fit index (cfi) test can be accepted in a good category. rmsea value of 0.059 is less than cut of value of 0.080. accordingly, the rmsea value is accepted in a good category. hypotheses testing the result of hypothesis testing is provided in table3. table 3. hypothesis testing result causal relationship c.r. t table (one tailed) conlusion cs <ppq 2.653 1.660 accepted cs <pp 2.398 1.660 accepted cs <psq 0.104 1.660 rejected cs <pv 2.105 1.660 accepted cl <ppq 0.186 1.660 rejected cl <psq 2.100 1.660 accepted cl <pp 0.163 1.660 rejected cl <cs 3.127 1.660 accepted cl <pv 0.160 1.660 rejected first hypothesis testing based on confidence level of 95% (α = 0.05) and degree of freedom (n k) with one tailed test, it known the ttable value within study is 1.660. from the result of structural equation modeling (sem) analysis, it is obtianed the cr value of perceived product quality on customer satisfaction of 2.653 is greater than the value of ttable. thus, ho is rejected and ha is accepted, it means that perceived product quality has a positive effect on customer satisfaction. therefore, first hypothesis which states that perceived product quality has a positive effect on customer satisfaction is accepted. second hypothesis testing sem analysis result shows that the cr value of perceived service quality on customer satisfaction of 0.104 is less than value of ttable. thus, ho is accepted and ha is jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 13-22 rejected, it means that perceived service quality has no effect on customer satisfaction. therefore, second hypothesis which states that perceived service quality has a positive effect on customer satisfaction is rejected. third hypothesis testing refers to the result of structural equation modeling analysis, it is obtianed the cr value of perceived value on customer satisfaction of 2.105 is greater than ttable value. thus, ho is rejected and ha is accepted, it means that perceived value has a positive effect on customer satisfaction. therefore, third hypothesis which states that perceived value has a positive effect on customer satisfaction is accepted. fourth hypothesis testing furthermore, based on the sem result, it is obtianed the cr value of perceived price on customer satisfaction of 2.398 is also greater than the value of ttable. thus, ho is rejected and ha is accepted, it means that perceived price has a positive effect on customer satisfaction. therefore, fourth hypothesis which states that perceived price has a positive effect on customer satisfaction is accepted. fifth hypothesis testing sem analysis result shows that the cr value of customer satisfaction on customer loyalty of 3.127 is greater than the ttable value. thus, ho is rejected and ha is accepted, it means that customer satisfaction has a positive effect on customer loyalty. therefore, fifth hypothesis which states that customer satisfaction has a positive effect on customer loyalty is accepted. sixth hypothesis testing from the result of structural equation modeling (sem) analysis in table 13, it can be seen that cr value of perceived product quality on customer loyalty of 0.186 is less than the value of ttable. thus, ho is accepted and ha is rejected, it means that perceived product quality has no effect on customer loyalty. therefore, sixth hypothesis which states that perceived product quality has a positive effect on customer loyalty is rejected. seventh hypothesis testing sem analysis result shows that the cr value of perceived service quality on customer loyalty of 2.100 is greater than value of ttable. thus, ho is rejected and ha is accepted, it means that perceived service quality has a positive effect on customer loyalty. therefore, seventh hypothesis which states that perceived service quality has a positive effect on customer loyalty is accepted. eighth hypothesis testing refers to the result of structural equation modeling analysis, it is obtianed the cr value of perceived value on customer loyalty of 0.160 is less than ttable value. thus, ho is accepted and ha is rejected, it means that perceived value has no effect on customer loyalty. therefore, eighth hypothesis which states that perceived value has a positive effect on customer loyalty is rejected. ninth hypothesis testing furthermore, based on the sem result, it can be seen that cr value of perceived price on customer loyalty of 0.163 is also less than value of ttable. thus, ho is accepted and ha is rejected, it means that perceived price has no effect on customer loyalty. therefore, ninth hypothesis which states that perceived price has a positive effect on customer loyalty is rejected. conclusion as an effort to increase the customer satisfaction, marketing manager of indihome in purwokerto needs to make priority on perceived product quality, perceived value and perceived price. furthermore, as an effort to increase the customer loyalty, marketing manager of indihome in purwokerto needs to make priority on perceived product quality, perceived price and perceived value. the ways can be done by offering and selling the products and services with the high quality based on the customers’ needs and preference, improve the consumers’ experience with products and services of indihome. even though indihome product is already good, but sometimes there’s still troubles on their internet connection such as the internet suddenly unstable, or the decrease on the internet speed in certain time even though the customer hasn’t reach their fair usage policy limit. even this problem is not always occurred, but telkom should consider about this problem because when customer experienced the bad internet quality, they will have a bad image about indihome. set the price of products and services that the affordable, suitability and favorable price. when compared to their closest competitor jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 13-22 which is biznet, telkom is putting their price considerably expensive for a product that similar. even telkom has already a good image in customers’ mind, but with the problem that often occurred to the customers and the customer service that sometimes can’t give solution to the customers, this will make the value received by the customers decreasing because the customers feel that what they already paid is not suitable with what they receive. so telkom should consider to make their product more affordable. the last is always increase the perceived service quality based on customers’ needs and wants, always follow up the consumer complaints quickly and accurately. telkom already has many way to reach their customer service such as facebook, twitter, live chat from their website and by telephone. this is good and telkom should keep it up because it make the customers easily reach telkom and tell their problem or suggestion. but sometimes, when the customers contact the customer service for help, the customer service only give random answers just to make the customers calm such as, “please be patient” or “we will fix it immediately” but it reality, their problem didn’t solved for days. this problem also should be considered by telkom because the customers won’t trust a company that can’t even give exact answer for their question and problem. the last is set the price of products and services that the affordable, suitability and favorable price. when compared to their closest competitor which is biznet, telkom is putting their price considerably expensive for a product that similar. even telkom has already a good image in customers’ mind, but with the problem that often occurred to the customers and the customer service that sometimes can’t give solution to the customers, this will make the value received by the customers decreasing because the customers feel that what they already paid is not suitable with what they receive. so telkom should consider to make their product more affordable. refers to the limitations of this study, further research need to develop the research model by using the mediator or moderator variable. reduce marginal result by increasing the respondent or distribute the data in more variative ways. further research also need to choose and add the number of respondents that in practically can be implemented the probability sampling method and using the other methods of data collection, such as interview and observation. references agbor, j. 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(2005). customer loyalty: menumbuhkan dan mempertahankan kesetiaan pelanggan. jakarta: erlangga. hair, j. f. jr., black, b., b., anderson, r. & tatham, r., (2006). multivariate data analysis. upper saddle river, nj: prenticehall. hasan, ali. (2008). marketing. media utama, yogyakarta. hasan, h., kiong, t. p., & ainuddin, r. a. (2014). effects of perceived value and trust on customer loyalty towards foreign banks in sabah, malaysia. global journal of emerging trends in e-business, marketing and consumer psychology, (1), 137-153 hermawan, b., basalamah, s., djamereng, a., & plyriadi, a. (2017). effect of service quality and price perception on corporate image, customer satisfaction and customer loyalty among mobile telecommunication service provider. international journal of management and social sciences, (8), 62-73. irawan, handi. (2009). 10 prinsip kepuasaan pelanggan. jakarta: elex media komputindo. ishaq, m. i. 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(2016). internet banking, customer perceived value and loyalty: the role of switching costs. journal of accounting and marketing, (5) schiffman, l.g & kanuk, l. (2008). perilaku konsumen, cetakan keempat. jakarta : pt. macanan jaya cemerlang. soegoto, a. s. (2013). persepsi nilai dan kepercayaan terhadap kepuasan dan dampaknya terhadap loyalitas konsumen. jurnal emba vol. 1 no. 3, 1271-1283 tabachnick, b.g. & l.s. fidell, 2001. using multivariate statistics, allyn & bacon, boston. tjiptono, f. (2006). manajemen jasa. edisi pertama. yogyakarta : andi wang, y. h., & chen, l. y. (2016). an empirical study of the effect of perceived price on purchase intention evidence from low-cost carriers. international journal of business and social science, 97-107. wardhani, e. 2010. analisis pengaruh kualitas produk, kualitas pelayanan dan nilai pelanggan terhadap kepuasan pelanggan (studi pada pelanggan kedai digital 23 semarang). yamit, z.(2010). manajemen kualitas produk dan jasa. yogyakarta: ekonisia journal of accounting, management, and economics vol. 19, no.1, 2017, pp. 28-33 published by faculty of economics and business universitas jenderal soedirman published online on january 9, 2017 in http://jos.unsoed.ac.id/index.php/jame  correspondence to: 1universiti malaysia perlis, e-mail: dweehastutihasan@yahoo.co.id 2universiti malaysia perlis, e-mail: idris@unimap.edu.my 3kolej universiti insaniah, malaysia, e-mail: abdullahosman@insaniah.edu.my received: november 14, 2016 revised: november 28, 2016 accepted: december 19, 2016 introduction the workplace deviant behaviour (wdb) is not a new phenomenon in the organization, researches on workplace deviant behavior has been increasing throughout the last three decades (nielsen, glaso, & einarsen, 2017; farhadi, omar, nasir, zarnaghash & salehi, 2015; colbert, mount, harter, witt & barrick, 2004). workplace deviant behavior is a voluntary behavior that violates organizational norms significantly and can threaten the well-being of an organization, its members, or both (robinson & bennett, 1995). deviant behaviors are the negative behaviors such as taking company property without permission, insulting colleagues at workplace, or falsify work related matters in return for financial gain. studies in the united states have quantified the losses caused by these behaviours to incur a losses up to $50 million (dineen, lewicki, & tomlinson, 2006). understanding the magnitude of losses caused by deviant behaviors has triggered continues research in the area of industrial psychology in an effort to understand the causes of these behaviours. from the previous study there is evidence of some of the factors that may contribute to the occurrence of workplace deviant behavior, these factors of which came from individual factors and situational factors (colbert, et. al; 2004; farhadi, fatimah, nasir & shahrazad, 2012 & diefendorff & mehta, 2007). individual factors are factors that are within the individual person as a person's personality differences, age, sex and so forth while situational factors include organizational factors, social factors and interpersonal relationships (robinson & greenberg, 1998). several studies was also conducted to look at the relationship between personality factors against workplace deviant behavior (salgado, 2002; bodankin & tziner, 2009; lima, teha & fah, 2016; bowling & eschleman, 2010). salgado (2002) conducted a meta-analysis which examined the relationship of the big five personality factors (extraversion, agreeableness, conscientiousness, emotional stability and openness to experience) towards counterproductive work behaviour/cwb (a form of deviant behavior of employees in the workplace). in this study the big five factors of personality has managed to become a predictor for absenteeism among counterproductive work behaviour, to deviant behavior and turnover. results of the study found that conscientiousness has managed to be a predictor of turnover and deviant relationship between openness to experience and perception to political organizations to workplace deviant behavior dwi hastuti1, idris mohd noor2, abdullah osman3 1)2)universiti malaysia perlis, malaysia 3universiti insaniah malaysia, malaysia abstract this study aims to determine the relationship that exists between openness to experience (one of the personality traits) and perceptions of organizational politics to workplace deviant behavior. research was conducted by collecting 263 responses from the civil servants in pekanbaru, riau. applying the latest pls 3.0 analysis tools the results of this research identified positive correlation between openness to experience and perception of the political organization to workplace deviant behavior. the perception of the organization politics has managed to moderate the relationship between openness to experience deviant behavior in the workplace. keywords workplace deviant behavior (wdb); personality traits; political organization; pls-sem analysis mailto:dweehastutihasan@yahoo.co.id journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 28-33 29 behavior, while extraversion, agreeableness, emotional stability and openness to experience has managed to be a predictor of the turnover. according to john and srivastava (1999) identified individuals with high openness to experience an individual likes to imagine, are more creative and interested to new experiences and also arousing their curiosity. furthermore deary, watson and hogston, (2003) said that employees who are more openness to experience are the individuals who are more likely exposed to emotional exhaustion that may lead to cwb. also asserted by bolton, becker and barber (2010) that individuals who have high openness to experience that will be connected to cwb. in addition to using personality factors as predictors of wdb, some studies have also included factors such as the perception of organizational politics to counterproductive work behavior (zettler & hilbig, 2010). the high perceptions of organizational politics may give a negative impact to decrease of organizational commitment and lead to greater job stress (miller, rutherford, & kolodinsky, 2008) so they concluded that the perception of political organizations may increase the occurrence wdb. however, research on wdb has been done in western context, but very little study of wdb is related to asian context (farhadi,et, al., 2012), leaving avenue for further exploration especially in the public sector context of indonesia. so the objective of the research in this study is: a) to examine the relationship between personality of openness to experience and the perception of organizational politics to wdb. to test moderating impact of the perception the political organization for a relationship between openness to experience and wdb. methods this study using three variables which is workplace deviance behaviour, personality trait and perception of organizational politics and before distributed to the respondent of all variables in this study done back to back translation process, and below will explain in detail: wdb measurement: workplace deviant behaviour is measured using bennett and robinson’s (2000) workplace deviant behavior scale, which consists of 19 items question and measure using a likert scale of value from 1 to 7. item questions will shows how often respondents who engage in wdb. the higher score obtained showed the higher rate of occurrence frequency wdb. in contrast the lower the score obtained indicate the low frequency of occurrence of workplace of deviant behaviour. examples of workplace deviant item: ‘ being racist”, “ drug use in working time” personality traits measurement: the construct was measured using big five personality (bfi) was adapted from john and srivistava (1999). the 10 item question with 5 point likert scale was used , respondent were asked to answer 1 to 5 from extremely inaccurate to extremely accurate. and the last measurement is perception of organizational politics adapted from vigoda and kapun (2005) consisting of 9 item question by using likert scale. the respondent were asked to answer 1 to 5 from strongly disagree to strongly agree. in line to the objective of this study; to examine the influence of openness to experience and perception of organizational politics to workplace deviant behavior and also to examine moderating impact from the perception of organizational politics to the relationship openness to experience and workplace deviant behavior. the process of collecting data in this research is done by using proportionate random sampling by distributing questionnaires to 263 civil servants in pekanbaru, riau. data were collected and analyzed using smart pls 3.0. in the pls analysis, the first step is to perform testing of the measurement model to get the reliability and validity of the data and the next step is to perform testing of structural models in order to test this hypothesis. results and discussion using pls sem analysis techniques, the first step is to develop the measurement model where the results of data analysis are shown in the table 1. journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 28-33 30 table 1 measurement model construct item cra ave workplace deviant behavior (wdb) openness to experience perception of organizational politics ( pops) wdb1 wdb 2 wdb 3 wdb 4 wdb 5 wdb 6 wdb 7 wdb 8 wdb 9 wdb 10 o2 o3 o4 o6 o7 o8 o9 o10 pops1 pops2 pops3 pops4 0.693 0.561 0.683 0.817 0.816 0.764 0.761 0.748 0.643 0.778 0.757 0.762 0.677 0.655 0.725 0.734 0.721 0.751 0.902 0.728 0.736 0.415 0.919 0.898 0.796 0.533 0.524 0.511 measurement model in the analysis using pls-sem testing measurement models is important because for the purpose of measuring model is to ensure that the items measure a construct is valid , and so proves the instrument is reliable. besides purpose of testing the measurement model is analyze the relationship between the items to the constructs. this measurement model testing is essential to ensure the use of indicators that can be ascertained is suitable a construct to run well (churchill, 1979). based on the table for model measurement found that reliability indicator shows the loading of each item is between 0.415 and 0.902, while the loading number did not reach 0.4 is aborted in question items (hair, ringle & sarstedt., 2013). meanwhile the value of the average variance extracted (ave) of each items should exceed the number 0.50 (bagozzi & yi, 1988). so is the value of the composite reliability (cr) are above 0.70 (hair, babin and black, 2010). stuctural model after measurement model of pls analysis is done, next step is calculating the structural model. in this study, applied standard bootstrapping method to obtain significant levels of any relationship between the construct. in the structural model is an important thing to determine the significant of path coefficients, evaluating the level of r2, then determine the effect size (f2), determining the predictive relevance and last examine the moderating effect ( henseler, ringle & sinkovics, 2009). and the table below will shows the results of structural model. table 2. structural model hypothesis beta t value p value result r 2 f2 q2 open ->wdb 0.136 2.372 0.009 support 0.156 0.029 0.068 pops -> wdb 0.345 7.422 0.000 support 0.02 open*pops->wdb -0.195 1.804 0.036 support 0.175 0.032 from the table it can be seen that there is a significant relationship between openness to experience and wbd (β=0.136, t= 2.372 , p <0.009), supporting h1. result also journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 28-33 31 suggest that there is a relationship between perception of organizational politics and wdb (β=0.345, t= 7.422 , p <0.000), and thus h2 was supported. result also shows in the table that indicate the interaction effect perception of organizational politics and openness to experience to wdb (β=-0.195, t= 1.804, p <0.036) and h3 also was supported. furthermore other criteria that are important in looking at structural model is seeing the value of r2 which is coefficients of determination ( hair, sarstedt, ringle & mena., 2012, henseler et,al., 2009). the r2 value is symbolizes the proportion of variation in dependent variables(s) that can be explained by independent variable(s) (hair et al., 2010). although an acceptable value of r2 depends on the context of study (cohen, 1998) shows the value of 0.26, 0.13, 0.09 represent high, moderate and weak sequentially, but in this study r2 is considered moderate for 0,156 that mean as much as 15,6% explained the variance of wdb. relative effects of openness to experience and perception of organisational politics on wdb were evaluated using cohen’s (1988) effect size (f2). effect size f2 is the impact given by variable exogenous (independent) specific to the variable endogenous (dependent) to see how big the contribution of variable exogenous specific to variable endogenous (chin, 1998). effect size values of 0.02, 0.15 and 0.35 that suggest small, medium and large effect, respectively (henseler et al, 2009). the table shows effect size 0.02 for openness to experience to wdb and 0.029 for perception of organizational politics to wdb, and both effect size were medium (cohen, 1988). with applied stone geisser’s q2 (geisser, 1974) blindfolding procedure is used to determine the predictive relevance of the research model. a value greater than zero indicates relevant model ( henseler at al.,2009). the table shows q2 to wdb is 0.068, indicating models is accepted the final aspect is looking at the strength of moderating using cohen’s (1988) effect size formula. the power of moderation is assessed by comparing proportion of variance explained ( as expressed by coefficient of determination r2) from the main effect model (i.e., the model without moderating effect) and r2 from full model (i.e., model with moderating effect) ( henseler and fassott, 2010). effect size (f2) from 0.02, 0.015, and 0.35 suggest small, moderate, and large effect, respectively (cohen, 1988). the table show f2 effect size of 0.032, a weak finding. discussion from the result there are two hypothesis found to have direct relationship to workplace deviant behavior. openness to experience and workplace deviant behavior have positive relationship to workplace deviant behavior, h1 is supported, the result of this study for openness to experience was similar with previous study made by kozoko, safin, and rahim (2013) and deary, et.al., (2003). and for h2 the result perception of organizational politics is positive relationship to workplace deviant behavior, h2 also is supported. the result of this study for perception of organizational politics was similar with previous study made by zettler and hilbig (2010). this study has focused on the importance of understanding workplace deviant behavior. although perception of organizational politics has been tested to cwb (zettler and hilbig, 2010) and personality trait and workplace deviant behavior (o’neill, lee, radan, law, lewis and carswell, 2013) but research has not examined the joint effect of personality and perception of organizational politics on workplace deviant behavior. this model proposes to test interaction effect perception of organizational politics and openness to experience to workplace deviant behavior because that negative perception about organization will lead to deviant behavior in the workplace. from the developing h3 that expected interaction between perceptions of organizational politics and openness to experience to workplace deviant behavior, that perceptions of organizational politics can moderate the relationship between openness to experience and workplace deviant behavior, meaning that it shows that the strengthen relationship openness to experience to workplace deviant behavior is getting stronger when high perceptions of organizational politics among employees and vice versa, but this situation happens the opposite, where the influence of this has negative beta coefficient (β = -0195, t = 1,804, p <0.036), it can probably be explained to the individual who has a personality that is high in openness to experience where the individual tendency to easily adapt to change and creative in solving complex problems (lepine, colquitt, & erez, journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 28-33 32 2000). additionally, they are described as individuals who like to imagine, very tolerant of ambiguity and amenable new ideas. furthermore, their desire to solve complex problems creatively will increase when they find themselves in political situation in which the presence of perceptions of organizational politics among workers, makes this situation as a challenge and opportunity to those who will open their curiosity so that higher openness to experience and the higher perception of organizational politics they will reduce to engage deviant behavior in the workplace. conclusion there are several limitations to this study. firstly, there is limitation in terms of time and the presence of financial constraints during data collection in the field the data has limited the external validity of these results. furthermore, the study was restricted to three variables openness to experience, perceptions of organizational politics and workplace deviant behavior providing avenue for more variables to be studied towards reducing workplace deviant behavior. the 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(2005). perceptions of politics and perceived performance in public and private organisations: a test of one model across two sectors. policy & politics, 33(2), 251276. correspondence to : nurbanikamelia@gmail.com received: april, 2019 accepted: may, 2019 published: may, 2019 jurnal akuntansi, manajemen dan ekonomi vol. 21, no. 2, 2019, pp. 1-9 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction competition in the business world will inevitably become increasingly complex due to the globalization process in the international economy, and companies compete to improve excellence in various ways. the development and use of information technology play an important role in existing business processes (olalla, 2000). today almost all business sectors involve technology as an intermediary and the core of economic transactions that occur. technology provides a variety of more benefits to support the survival of the company. one of the technological products is the information system. even in some fields of industry, the use of information systems is a must. information systems and information technology are fundamental structures that must be owned by a company to carry out operational activities. information technology is a combination of computer technology and telecommunications with other technologies such as hardware, software, databases, network technology, and other telecommunications equipment. for information technology companies in managing their daily business is "breath" to remain survived, and will not be able if the management base is still dependent on conventional systems. at this time information technology can help create better business planning and strategies, can understand the complex business implications, be able to increase the competitive advantage of business globally, and speed in the data processing process. therefore, many companies are now starting to develop and pay special attention to information systems as a source that facilitates the collection and use of information effectively (maharsi, 2000). one form of attention is accounting information systems that have developed into computerbased accounting information systems. a computerized accounting information system allows users of financial statements to view financial statements at any time more quickly and accurately. however, along with the many uses of the information system, a new problem arises, namely the increase in the amount of data that must be handled from the start of the inputting and processing of data starting from ordering goods, inventory, production, distribution, and finance or accounting. to overcome the problems caused by different information systems in an organization, companies must implement a system that the impact of system quality and information quality on user satisfaction and user performance kamelia nurbani1 , asep kurniawan2 , indah umiyati3 1,2,3accounting department, sekolah tinggi ilmu ekonomi sutaatmadja, indonesia abstract this study aims to analyze the effect of system quality and information quality on user satisfaction and its impact on user performance.the sample selection technique uses purposive sampling is a technique of determining the sample based on specific considerations, which are based on certain characteristics that are considered to have a close relationship with the characteristics of the population that have been previously known in other words the sample units contacted are adjusted to specific criteria applied — based on research objectives. the testing of the hypothesis used is the structural equation modeling (sem) approach with variance-based structural equation testing, better known as partial least square (pls) v.3.0.the results of this study indicate that system quality has a significant positive effect on user satisfaction, information quality has a significant positive effect on user satisfaction, and user satisfaction has a significant positive effect on system user performance. keywords system quality, information quality, user satisfaction, user performance jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 1-9 can integrate all their operating systems into a single system (roni kurniawan, 2013). one accounting information system that is interrelated and connected that raises accounting information can ultimately be optimized for its use and is beneficial for all lines of companies, namely enterprise resources planning (erp) systems that can solve the problem as a whole and in one integrated system. enterprise resources planning (erp) is an integrated computerized information system technology that is used by world-class companies to improve their performance. erp has evolved as an integration tool, with the aim of integrating all company applications or company core activities which include sales and marketing, maintenance, production / manufacturing, procurement / logistics, warehouse, human resources, general and financial to the data storage center (server) and can easily accessed by all work units in need (velcu, 2010). however, to be able to adopt enterprise resource planning erp technology, a company often has to provide funds from hundreds of millions to billions of rupiah. such funds must be available for investment in erp application software packages, hardware in the form of servers and desktops, database and operating system software, high-performance networks, and consulting costs for implementation. even though it is facing significant investment costs, many companies in the world and indonesia are no exception as they are competing to adopt this information system. this condition is because an erp application software package that will generate a "return" to investment that is feasible and fast. examples of well-known erp products are sap, oracle, jd edwards, microsoft dynamics, open bravo. however, from the many erp products, sap has become the leader of the erp product market (bryan septian 2014). sap (system application and product in data processing) as part of an erp system has an essential role because sap software is part of a system that is directly related to the user who plays a role in the success or failure of an information system implemented in an organization or company. the delay in updating the data can affect the top management of decision making and determine the company's future strategies. however, for the process of fixing it, it takes all day. it did not rent from outside because of pt. dahana has it at the office. based on the background of the problem above, the purpose of this study is to determine the effect of system quality and information quality on user satisfaction and its impact on user performance of sap (system application and product in data processing). the success of a company's information system depends on the company in running the system. the ease of information systems for users and the use of technology used also affects the success of information systems (goodhue, 1995). according to edberg and bowman in mcgill et al. (2003) said that the system quality in the delone and mclean information system success model contains two elements, namely subjective and objective. the measure used by delone and mclean to measure system quality is ease of use, functionality, reliability, flexibility, data quality, possibilities, integration, and importance. based on several previous studies proving that user information system satisfaction comes from the quality of the system and the quality of information. besides, user satisfaction will affect the performance of information system users based on the description of the research on the effect of system quality and information quality on user satisfaction and its impact on the performance of users of sap systems (system applications products in data processing), a framework as shown in figure 1.1. figure 1. research framework effect of system quality on system user satisfaction system quality is one of the first dimensions in delone and mclean's information system success model. "the quality of the system shows the quality of its production and is used to measure the quality of its information technology system" (jogiyanto, 2007). system quality is a desirable characteristic of the quality qualities of the information system jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 1-9 itself. (delone & mclean, 1992 in saleh, et al. (2012). the results of the study of indriani & reza (2009); istianingsih & wijayanto (2008); wirahutama (2011) indicate that the quality of information systems affects user satisfaction. delone & mclean (1992) in wirahutama (2011) assume that system quality comes from the user's perception. use and user satisfaction have reciprocal relationships that can have an impact on the individual in the organization. in other words, quality information systems that meet reliability will be able to satisfy users of information systems and optimize user performance. arreski (2014) states that system quality research has a positive and significant effect on system user satisfaction. iranto (2012) system quality has a positive effect on user satisfaction of information systems, luqman habieb prasojo, and dudi pratomo (2014) stated that the quality of the system has a significant and positive effect on user satisfaction and the research results of karnita (2016) state that the quality of the system has a positive and significant effect on user satisfaction. based on the description above, the researcher wants to examine the relationship between system quality and user satisfaction. then the first hypothesis is proposed: h1: system quality has a significant positive effect on system user satisfaction effect of information quality on system user satisfaction the information system is a set of related resources to achieve specific goals. all interrelated resources in an organization will form a system within the organization (bodnar & hopwood, 2006: 3). quality of information is the quality of output in the form of information generated by information systems and used in decision making. the quality of information has several characteristics, namely, relevant, timely, accurate, complete, and concise (rai, lang, welker 2002, irianto, 2012). fendini et al. (2013), in his study, concluded that the quality of information has a dominant influence on system user satisfaction. this statement means that the higher or, the better the quality of information produced by the system, the higher the level of satisfaction of system users. measurement of the quality of information produced and its impact on user satisfaction needs to be done and evaluated. the success of the application of information systems and the effectiveness of the use of information systems will increase user satisfaction (saleh et al. 2012). saleh, et al. (2012); istianingsih & wijayanto (2008); wirahutama (2011) states that the quality of information influences user satisfaction, luqman habieb prasojo, and dudi pratomo (2014) states that the quality of information has a significant and positive effect on user satisfaction, but in karnita's research (2016) the quality of information has no effect on user satisfaction. information system users certainly hope that by using the system, they will get the information they need. characteristics of information produced by a particular information system can be different from information from other information systems. information systems that can produce information that is timely, accurate, as needed, and essential as well as fulfilling creativity and other measures of the quality of information, will affect the wearer's satisfaction. the results of the istiningsih and utami (2009) study provide empirical evidence that information quality has a positive and significant effect on user satisfaction. the higher the quality of information produced by an information system is predicted to affect the higher satisfaction of end-user information systems. the higher the quality of information, and following the needs, the satisfaction of users of information systems will increase. based on the description above, the researcher wants to examine the relationship between information quality and user satisfaction. then the second hypothesis is proposed: h2: information quality has a significant positive effect on system user satisfaction effect of user satisfaction on system user performance seddon (1997) states that the use of information systems is a behavior that arises due to the benefits of using the information system. the behavior generated from the use of this information system in the next process is expected to have an impact on individual performance (istianingsih & utami, 2009). evaluation of the quality of information and quality of information systems must always be done to ensure that the information system used has been successful. the success of the application of information systems will increase user satisfaction, which jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 1-9 will ultimately improve employee performance (saleh et al. 2012). the relationship between end-user satisfaction of information systems and individual performance has been tested by delone and mclean (1992) in the model of the success of the information system they make. they stated that between the impact of the use of information systems on individual performance with the level of user satisfaction (user satisfaction) has a reciprocal relationship. seddon (1997) states that the impact of the use of information systems in the form of increasing individual performance will affect the level of user satisfaction. rai et al. (2002) examined the relationship between improving the performance of end-users of information systems and user satisfaction, and the results of their research showed that the benefits or effects of using this information system affect user satisfaction. livari (2005), also researched the success of new information systems applied to users of information systems in a mandatory organization. the results of his research for the relationship of individual impact variables with user satisfaction indicate a positive influence of the two variables. research irianto (2012); istianingsih & utami (2009) prove that user satisfaction can improve the performance of information system users. if the user of the information system believes in the quality of the information system used and feels that using the information system is very easy, then the user will be sure that the use of the system is useful. the benefits felt by users will improve the performance of users of saleh et al. (2012). this research focuses on seeing the extent of the impact of satisfaction of information system users on their performance. if someone is satisfied with the information system used, then they will tend to feel comfortable and safe while working by using the system so that they will feel helped in completing work. it means that the higher the level of user satisfaction for an information system, the higher their performance will be. based on the description above, the researcher wants to examine the relationship between user satisfaction and user performance. then the third hypothesis is proposed h3: user satisfaction has a significant positive effect on system user performance research methods the research method used is a descriptive study with a case study approach. descriptive research with a case study approach was carried out in order to obtain a more in-depth picture of the characteristics of the problems related to the background and current conditions of the subject under study, as well as their interactions with the environment (inayah: 2010). the type of data used in this study is quantitative data. data sources used in this study are primary data. primary data in this study are information collected based on respondents' answers to the questionnaire primary data in this study obtained from the opinions or perceptions of sap system users (system application products in data processing) at the head office of pt.dahana (persero) subang. the population of this research is active employees using the sap system at the head office of pt.dahana (persero) subang. b the sample of this research is sap system users as many as 60 people at pt. dahana (persero) subang. the sampling technique used in this study is non-probability sampling using the purposive sampling method. purposive sampling is a technique of determining samples with specific considerations or criteria (sugiyono: 2015: 126). the criteria used in determining the sample in this study are as follows. first, employees who are still bound by a contract. second, active employees use the sap (system application product in data processing) system in carrying out their duties. the quality of the system is a measure of the processing of the information system itself chen (2010: 310). measured using 1-5 interval scales with indicators. first, ease of use, the information system can be said to be of quality if the system is designed to meet user satisfaction through ease in using the information system. second, response time access speed is one indicator of the quality of information systems. if access to information systems has an optimal speed, it is appropriate to say that the information system applied is of good quality. third, reliability of the system, a quality information system is a reliable information system. fourth, the flexibility of an information system jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 1-9 shows that the applied information system has good quality. fifth, security. an information system can be said to be good if the security of the system is reliable. quality of information is a function that concerns the value of output information generated by the system. negash et al. (2003: 758). measured using 1-5 interval scales with indicators. first, accuracy, information must be free from errors and not biased or misleading. the information must have absolute accuracy so that the truth is not doubtful. second, timeliness, the information that comes to the recipient may not come too late, because the information that comes not on time is no longer valuable, because of the information in the decisionmaking process. third, relevancy, existing information has a useful value following what is needed by the wearer. the information has a different level of relativity, depending on the level of user. fourth, informativeness, information produced by an information system is very informative. information as needed. user satisfaction is an overall evaluation of user experience in using information systems and the potential impact of information systems. seddon & kiew (1994). measured using interval 1-5 with the overall satisfaction indicator (overall satisfaction), overall user satisfaction. user performance is the result of work that can be achieved by an employee in an organization by using information system technology following their respective authority and responsibilities in order to achieve muhammad's organizational goals (2015). measured using 1-5 interval scales with indicators. first, effectivity shows success in terms of achieving the goals that have been set or not. second, efficiency, a measure of success that is assessed in terms of the size of the source/cost to achieve the results of the activities carried out. third, creativity a mental process that involves the emergence of new ideas or concepts (concepts), or new relationships between ideas and existing ones. results and discussion in this study, researchers used data obtained by distributing questionnaires to respondents. data collection obtain by visiting directly to the head office of pt. dahana (persero) in subang regency. the number of questionnaires distributed was 60 questionnaires, 50 questionnaires were filled in and returned. the number of non-returned questionnaires was ten questionnaires. then the response rate is 50/60 * 100 = 83.33%. verification analysis results the measurement model is a combination of latent variables with indicators, variables in this study following the effect of quality system, information quality on user satisfaction and its impact on user performance of sap systems (system application product in data processing). the number of variables is 4 (four) with a total indicator of 13 (thirteen) and consists of 25 (twenty-five) statements. system quality variables consist of 5 (five) indicators of 10 (ten) statements, information quality variables consist of 4 (four) indicators 5 (five) statements, user satisfaction variables consist of 1 (one) indicator 2 (two) statements, performance variables users consist of 3 (three) indicators 9 (nine) statements. the calculation results of all variables using smartpls v.3 are in figure 1.2. figure 2. calculation result effect of system quality on user satisfaction the results of the descriptive analysis of system quality have respondents' responses of 84.76% in the first category which means that the quality of the sap system has been considered good enough for users at the head office of pt. dahana (persero) subang as the respondent. however, when viewed from the calculation of the correlation jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 1-9 coefficient, this first hypothesis testing produces a correlation coefficient between latent variables of 0.368 (36.8%), so the category is in the low criteria, with a positive direction. the direction of this positive relationship indicates that if the quality of the system rises / high, user satisfaction will also increase / high and vice versa if the quality of the system drops / lows, user satisfaction will also decrease. with a contribution of 36.8% of the quality of the system, the remaining 63.2% of user satisfaction comes other factors not examined by the researcher. if seen from the results of t count, the first hypothesis testing shows the value of t count of 4.048 higher than t table (1.67866) and the coefficient of 0.368. it states that the system quality variable has a positive and statistically significant effect on user satisfaction with a moderate /coefficient value. the reason for system quality has a significant positive effect on user satisfaction because employees who use the sap system at the headquarters of pt.dahana (persero) subang as respondents are satisfied with the quality of the sap system, and it comes from the ease of use, speed of access, reliability, flexibility, and system security is pretty good. indicators that significantly affect the quality of the system in this study amounted to 36.8% regarding the ease of use of x1.1.1 (0.913), x1.1.2 (0.631), x1.1.3 (0.638), access speed x1.2 (0.666), reliability x1 .3.1 (0.533), x1.3.2 (0.609), x1.3.3 (0.534), flexibility x.1.4.1 (0.707), x.1.4.2 (0.832), and security x.1.5 (0.664). the results of this study are in line with previous research conducted by karnita (2016) that the quality of the system has a significant positive effect on user satisfaction. research by prasojo and pratomo (2014) on system quality has a positive and significant effect on user satisfaction, dwi fitra arreski (2014) stated that system quality research has a significant influence on system user satisfaction, and iranto (2012) system quality has a positive effect on user satisfaction of information systems. by knowing that the quality of the system affects user satisfaction, it is clear that the quality of the sap system provided by pt. dahana (persero) subang as a system provider to employees using the sap system as a user continues to be improved so that both dahana and employees using the sap system feel the level of satisfaction that is following the needs through the sap system. however, there are still other factors beyond the indicators of the system quality variable towards user satisfaction in this study of 63.2%. effect of quality information on user satisfaction the results of the descriptive analysis of the quality of information have respondents' responses of 81.6% in the first category, which means the quality of information the sap system has been considered good enough for users at the head office of pt. dahana (persero) subang as the respondent. however, when viewed from the calculation of the correlation coefficient, testing the second hypothesis produces the results of the correlation coefficient between latent variables of 0.626 (62.6%) so it is in the criteria of moderate, with a positive direction. the direction of this positive relationship indicates that if the quality of information rises / high, user satisfaction will also increase / high and vice versa if the quality of the system drops / lows, user satisfaction will also decrease. with a contribution of 62.6% of the quality of information, the remaining 37.4% of user satisfaction comes from other factors not examined by researchers. if seen from the results of t count, testing the second hypothesis shows the value of t count of 7.381 higher than t table (1.67866) and the coefficient of 0.626. it states that the information quality variable has a statistically significant positive effect on user satisfaction with a moderate coefficient value. the reason for the quality of information has a significant effect on user satisfaction because employees who use the sap system at the head office of pt.dahana (persero) subang as respondents are satisfied with the quality of the sap system information, and it comes from information accuracy, timeliness, relevance, and information it is good enough. indicators that significantly affect the quality of the information in this study amounted to 62.6% regarding the accuracy of information x2.1. (0.933), timeliness of x2.2 (0.652), relevant x2.3 (0.939), and informal x2.4.1 (0.684), x2.4.2 (0.833). after the analysis, it is clear that the results of this study are not in line with the research conducted by karnita (2016), which states that the quality of information does not affect user satisfaction. however, this research is in line with the research of habieb prasojo and dudi pratomo (2014) that the quality of information has a positive and significant effect on user satisfaction. it means that the jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 1-9 higher or better the quality of information produced by the system, the higher the level of system user satisfaction. the istiningsih and utami study (2009), provides empirical evidence that information quality has a positive and significant effect on user satisfaction. by knowing that the quality of information affects user satisfaction, it is clear that the quality of information from the sap system provided by pt. dahana (persero) subang as a system provider to employees using the sap system as a user continues to be improved so that both dahana and employees using the sap system feel the level of satisfaction that is following the needs through the sap system. however, there are still other factors beyond the indicators of the system quality variable towards user satisfaction in this study of 37.4%. effect of user satisfaction on user performance the results of the descriptive analysis of the quality of information have respondents' responses of 81.6% in the first category, which means the quality of information the sap system has been considered good enough for users at the head office of pt. dahana (persero) subang as the respondent. however, when viewed from the calculation of the correlation coefficient, testing the third hypothesis produces the results of the correlation coefficient between latent variables of 0.749 (74.9%), so it is in the criteria of high, with a positive direction. the direction of this positive relationship shows that if user satisfaction rises / high, the user performance will also increase / high and vice versa if user satisfaction falls / lows, the user performance will also decrease / low. with a contribution of 74.9% of user satisfaction, the remaining 25.1% of user performance comes from other factors not examined by the researcher. if seen from the results of t count, testing the third hypothesis shows the value of t count equal to 10.648 greater than t table (1.67866) and the coefficient value is 0.749. it states that the user satisfaction variable has a statistical effect on user performance with a "high" coefficient value. the reason for user satisfaction has a significant effect on user performance because users feel satisfied with the quality of the system and the quality of the information in the sap system that is very helpful for their work so that their performance is getting better using the sap system. indicators that significantly affect user satisfaction in this study amounted to 74.9% regarding overall user satisfaction y1.1.1 (0.905), y1.1.2. (0,738). conclusion after analysis, it is clear that the relationship between end-user satisfaction of information systems with individual performance has been tested by delone and mclean (1992) in the model of the success of the information system they make. they stated that between the impact of the use of information systems on individual performance with the level of user satisfaction (user satisfaction) has a reciprocal relationship. the results of this study are in line with irianto's research (2012); istianingsih & utami (2009) prove that user satisfaction can improve user performance. the success of the application of information systems will increase user satisfaction, which will ultimately improve employee performance (saleh et al. 2012). the results of this study are also following the findings of doll and torkzadeh, (1998) which states that the end user information system has benefited as a benchmark for the success or failure of the use of information systems. by knowing that user satisfaction is very influential on user performance, it is clear that the quality of the system, the quality of information, and the sap system will continue to be improved. so that both the dahana and the employees as sap system users both get the benefits that match their needs. however, there are still other factors beyond the indicators of the variable user satisfaction with net benefits in this study of 25.1%. next, by the fourth indicator (flexibility) in the second statement, then the second indicator (access speed), then the fifth indicator (system security), then the third indicator (system reliability) in the second statement. 2. quality of information influences user satisfaction of the four indicators the most substantial results that affect the quality of information with the value of loading factor> 0.5 is the third indicator (relevant), then followed by the first indicator (information accuracy), then the fourth indicator (informative) on second and final statement the second indicator (timeliness of information). 3. user satisfaction affects user performance. from these indicators the most jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 1-9 substantial results that affect user satisfaction with the value of loading factor> 0.5 is the first statement that the overall user is satisfied with the sap system used, then followed by the second statement that the sap system can meet the need to obtain information used in carrying out work. the limitations of this study are that the research conducted only involves one company, namely the head office of pt. dahana (persero) subang so that the conclusions described only apply to pt. dahana (persero) only and cannot be generalized for all of indonesia with different objects. references bondan dwi iranto, indira januarti, 2012, pengaruh kepuasan pengguna sistem informasi terhadap kinerja individu (studi pada pt. pln (persero) distribusi jawa tengah dan diy). bejjar mohamed ali, boujelbene younes, 2013, the impact of erp system on user performance, asstt., department of management, fsegn, tunisia assoc. prof., department of economic, fsegs, tunisi. delone , w.h., dan mclean, e.r. information systems success: the quest for the dependent variable, information system research, (3:1), 1992, pp. 60-95. dian septiayu fendini, kertahadi, riyadi, pengaruh kualitas sistem dan kualitas informasi terhadap kepuasan pengguna pada karyawan pengguna aplikasi pelayanan pelanggan terpusat (ap2t). di pt. pln (persero) area malang. dwi fitria arreski, 2014. pengaruh kualitas sistem dan kualitas informasi terhadap kepuasan pemakai sistem erp pada pt.telkom divre vii makasar doll dan torkzadeh. 1988. information systems success in the public sector: stakeholders’ perspectives and emerging alignment model. issues in informing science and information technology (volume 3). pp. 219-231. fendini, d.s., kertahadi, dan riyadi. ,pengaruh kualitas sistem dan kualitas informasi terhadap kepuasan pengguna”. jurnal administrasi bisnis vol 4 no. 1 (2013). ghozali, imam prof dr m.com akt. 2013. aplikasi analisis multivariate dengan program ibm spss 21. semarang: universitas diponegoro. goodhue,d.l; thompson, r.l, (1995) tasktechnology fit and individualperformance, mis quarterly 19 (2): 213-236. istianingsih & utami (2009) pengaruh kepuasan pengguna sistem informasi terhadap kinerja individu pada pengguna sistem informasi akuntansi di indonesia, sna xii, palembang. istianingsih, wiwik utami. pengaruh kepuasan pengguna sistem informasi terhadap kinerja individu (studi empiris pada pengguna paket program aplikasi sistem informasi akuntansi di indonesia), fakultas ekonomi universitas mercubuana. istianingsih dan s.h. wijanto. 2008. “pengaruh kualitas sistem informasi, perceived usefulness, dan kualiyas informasi terhadap kepuasan pengguna akhir software akuntansi”. jurnal simposium nasional akuntansi xi. jogiyanto, h.m. 2007. model kesuksesan sistem teknologi informasi: yogyakarta: andi. karnita, 2016, analisis kesuksesan sistem aplikasi bphtb online menggunakan information system success model delone and mclean “ (studi kasus pada dinas pendapatan, pengelolaan keuangan, dan aset daerah kabupaten subang), skripsi stiesa subang. krismiaji, sistem informasi akuntansi (2010). luqman habieb prasojo1, dudi pratomo, set., m.ak. 2014, pengaruh kualitas informasi, kualitas sistem, dan kualitas layanan aplikasi rail ticket system (rts) terhadap kepuasan pengguna sistem (studi kasus pada pt. kereta api indonesia (persero) daop 2 bandung), universitas telkom. marshal b.romney, paul john steinbart, sistem informasi akuntansi (2014) negash, s., ryan, t., and igbaria, m. 2003. quality and effectiveness in web based customer support systems. information & mangement, 40(8): 757-768. o’brien, j.a. 2005. pengantar sistem informasi. jakarta: salemba empat. purwaningsih, s. 2010. analisis kesuksesan penerapan sistem informasi pada sistem informasi pelayanan terpadu (sipt) online (studi pada pt jamsostek jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 1-9 (persero). jurnal ilmu ekonomi aset vol.12 no.2. sufenny wijaya oei, 2016. pengaruh kesesuaian tugasteknologi, kualitas informasi, dan kualitas sistem terhadap kinerja individu pengguna sistem erp. universitas hasanudin makasar. sugiyono. 2003. metode penelitian bisnis. alfabeta. bandung. wirahutama, gomar (2011) ambiguitas peran sebagai variabel moderasi terhadap hubungan antara kualitas sistem informasi dan kepuasan pengguna software akuntansi pada dpkad kota semarang, skripsi, undip, semarang correspondence to dijan_rahajuni11@gmail.com received: may, 2019 accepted: june, 2019 published: june, 2019 jurnal akuntansi, manajemen dan ekonomi vol. 21, no. 2, 2019, pp. 34-41 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the employment structure consists of formal and informal sector workers (yustika & erani, 2000), informal sector absorbs more workers than formal sector. this is not only due to the limitations of formal sector in absorbing workers, but also the limited ability of the productive age population to enter formal sector job. formal sector requires formal education as the main requirement to be able to enter employment, while informal sector does not require formal education requirement. based on data from the central bureau of statistics (bps) in 2017, during 2015, 2016 and 2017 the indonesian population aged 15 years and over who work by status of main employment, the formal sector absorbed an average of 42% of the workforce, while the informal sector absorbed an average of 58% of the workforce. table 1. percentage of working population aged 15 years and over by status of main employment in indonesia in 2015-1017 employ ment year aver age 2015 2016 2017 formal sector 42.15 42.05 42.30 42.17 informal sector 57.85 57.95 57.70 57.83 total 100.00 100.00 100.00 source: bps 2017, processed data the same condition occurs in central java province where the absorption of formal workers only reaches 39.71 percent and the absorption of informal workers reaches 60.29 percent, as well as in banyumas regency as one of the 35 regencies in central java province, the absorption of formal workers reaches 30.81% (213,650 people) and the absorption of informal workers reaches 69.19% (479,690 people). the development of informal employment in the economic development of a country is not a bad thing, but rather is an alternative for the working age population to be able to empower themselves to carry out productive contribution of income, equitable income and welfare of street vendors’ family at sunmor gor satria market purwokerto by gender dijan rahajuni1, abdul aziz ahmad2, muhammad ammar allam3 1,2,3economic development department, faculty of economics and business, universitas jenderal soedirman, indonesia abstract the existence of the sunmor gor satria market is able to increase economic activity as indicated by the large number of street vendors (pedagang kaki lima/pkl). what motivates the street vendors to run their business is certainly to increase their income to improve their welfare. the more the number of street vendors with identical goods will certainly increase competition among them. this study aims to find out and analyze the contribution of income, distribution of income and welfare of the street vendors as a whole and based on gender. the results of the study state that the overall street vendor income in the sunmor gor satria market contributes to the moderate level of household income, the level of income distribution among the street vendors is in the very uneven category and most of their lives have not been prosperous. based on gender, the contribution of female street vendors’ income to household income is higher, but the level of income distribution is more uneven compared to male street vendors, and the majority of both of them have not been prosperous. for this reason, it is necessary to improve the management of street vendors, especially in location layout and organization keywords sunmor, gor satria, pkl, street vendors, gender jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 34-41 economic activities in order to meet the needs of life and the welfare of themselves and their families. the percentage of amount of labor absorption in indonesia is seen from its employment, the trade sector ranked first with labor absorption of 23.28 percent of the working population aged 15 years and over a week ago, as shown in table 2. agriculture sector absorbs labor more than any other sector of 29.69 percent. this condition is possible because geographically, indonesia is an agricultural country with an area of 1,913,578.68 square kilometers (bps, 2017) table 2. percentage of working population aged 15 and over during the past week by main employment no business sector percentage of labor absorption 1. agriculture 29.69 2. trade 23.28 3. community service 16.92 4. industry 14.05 5. construction 6.73 6. transportation 4.76 7. financial 3.10 8. mining 1.15 9. electricity, gas and water 0.32 total 100.00 banyumas regency consists of 27 subdistricts, where 23 sub-districts are included in the category of rural sub-district and the remaining 4 sub-districts are included in the category of urban sub-district. it has 1,351 traders in the category of street vendors or those selling the merchandise in front of stores or sidewalks (kbbi, https://kbbi.kata.web.id/pedagang-kaki-lima/). based on table 3, it can be seen that the number of street vendors on the main road sections in purwokerto is 604 street vendors or 48.28 percent of the total street vendors in purwokerto. the average number of street vendors on the main road sections is 50 street vendors. this is in line with the city development, which brings new economic activities to be managed well to serve the needs of population who do activities, work and live in the area (mudrajat kuncoro, 2010) table 3. percentage of amount of informal sector workers in street vendors section in purwokerto by main road section, in 2018 no road section number of traders percent age 1. gerilya street 70 5.59 2. hr. bunyamin street 61 4.87 3. kampus street 59 4.71 4. prof. dr. suharso street (daily street vendor)* 56 4.48 5. jend. sudirman street (middle) 52 4.16 6. gereja street 49 3.92 7. per kemerdekaan street 47 3.76 8. wahid hasyim street 46 3.67 9. adipati mersi street 44 3.52 10. jend. sudirman street (west) 40 3.2 11. pahlawan street 40 3.2 12. kom. bb. suprapto street 40 3.2 13. others 647 51.72 total 1.251 100 source: disperindagkop data, 2018 *daily street vendors street vendors on sidewalks along prof. dr. suharso street, purwokerto emerge because it is a government service center area. in addition, the area has a sport arena complex managed by the banyumas regency government, namely gelora olahraga satria (gor satria). as a center for sport activities, the area is crowded with people for sport activities. along with the high number of visitors, street vendors emerge to sell the merchandise in the area, so that gor satria area is known as sunday morning (sunmor) gor satria market on every sunday. the number of street vendors who sell their merchandise is 759 traders consisting of 233 food traders (30.70 percent) and 526 nonfood traders (69.30 percent). the area has been used as sunmor market for street vendors to sell merchandise in an effort to increase family income in order to meet their needs and improve family welfare. this study analyzes: 1). contribution of street vendor income to family income at sunmor gor satria market; 2). the level of equal income distribution of street vendors at sunmor gor https://kbbi.kata.web.id/pedagang-kaki-lima/ jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 34-41 satria market; and 3). the level of welfare of street vendor families at sunmor gor satria market. according to law number 13 of 2003 concerning manpower, a wage is the right of the worker/labourer that is received and expressed in the form of money as remuneration from the entrepreneur or the employer to workers/ labourer, whose amount is determined and paid according to a work agreement, a deal, or laws and regulations. street vendors do not recognize the term wage in an effort to earn income. income is obtained from net income of merchandise sales after deducting the costs. costs incurred by street vendors include fixed cost and variable cost. this income is the main factor that encourages a person to carry out trading activities to add and fulfill family needs (darman, 2015). in an effort to fulfill life needs, the government through the regulation of the minister of manpower and transmigration (pemanertrans) no. 13/viii/2012 concerning components and implementation of phases of achievement for decent living needs set standard for fulfilling decent living needs (khl). khl is a measure of feasible, reasonable or appropriate standard of living (gilarso, 2004). this measure is expressed by the average individual income or per capita income earned by an individual in family. the ability of each person in the effort to fulfill khl varies depending on the competence and access to the resources realized in the form of income earned. didit purnomo’s study (2000) states that there is income inequality in indonesia, especially in western and eastern parts of indonesia. the level of income inequality in indonesia can be determined by using gini ratio (bps, 2019). according to mudrajat kuncoro (2015), gini coefficient of indonesia is 0.384, meaning that the level of income inequality in indonesia is in the low category. street vending activities are commonly carried out to increase family income due to the inability of traders to provide business location for trading activities. according to lani farida’s study (2011) on the contribution of income of women working in the informal sector of trade, where 55 percent to 68 percent of respondents work as traders at sukaramai and cik puan markets, the study found that the contribution of female traders income to family income reaches 65-82 percent. dijan rahajuni’s study (2017) on disparity of income distribution in the poor as beneficiaries of the national program for community empowerment-independent in rural and urban areas is measured by gini index (gi), the average gi in indonesia during 2014-2017 was 0.41. this means that the level of income inequality was in the high category. however, the level of income inequality in central java during 2014-2017 was in the moderate category because the gini coefficient was 0.39. the gini coefficient of central java province has a difference of 0.02 from the average gini coefficient of indonesia. the gini coefficient of central java province is lower than average gini coefficient of indonesia, meaning that unequal income distribution in central java province is relatively lower than the average unequal income distribution in indonesia. in rural and urban poor community groups, a case study on former beneficiaries of a national program of community empowerment-independent in banyumas regency found that the average gini coefficient of income distribution in the respondent groups and areas was in moderate category. however, income distribution in rural areas is more uneven than in urban areas. the opposite condition occurs in columbia, united states, there is a difference in the pattern of unequal income distribution between rural and urban community, but income inequality in rural community is lower than that of urban community (ballard et al, 2013). the economic goal of the indonesian government as stated in the fourth paragraph of the 1945 constitution is “to improve public welfare”. the existence of income inequality can result in differences in people’s ability to meet their needs and welfare. this is supported by the finding of wasilatur rohmah, any suryantin, and slamet hartono’s study (2014) on income and welfare of sugar cane farmer households in bantul regency that the income of sugar cane farming has a high contribution to total household income and farming income can reduce unequal income distribution of farmer households and improve household welfare. maulana firdaus and cornelia mirwantini witomo’s study (2014) on the level of welfare and income inequality of fishermen in sendang biru, malang, east java found that the lives of fishermen are categorized as poor/not prosperous with gini coefficient of jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 34-41 0.42, this means that fishermen income inequality in sendang biru is high. based on the results of previous studies, it can be formulated the hypotheses as follows: 1). contribution of street vendors income to family income is high; 2). there is unequal income distribution of street vendors at sunmor gor satria market as a whole and based on gender; 3). the street vendors at sunmor gor satria market as a whole and based on gender have not been prosperous. research methods this study is a survey research conducted on traders at sunmor gor satria market, prof. dr. suharso street, purwokerto. sampling used slovin formula (riduwan & engkos, 2012: 44) as follows: ( ) description: n : number of population n : number of samples d : confidence level (10%) from a total population of 759 people, 90 people were taken as a sample consisting of 45 female street vendors and 45 male street vendors. the method of analysis to determine the contribution of street vendors’ income to family income is performed by comparing between trader income and family income. if the contribution of street vendors income is below 33.32 percent, it means that the contribution of income is low, 33.33-66.65 percent is categorized as moderate contribution and above 66.66 percent is categorized as high contribution. income distribution is calculated using the gini index (mudrajat kuncoro, 2015): n-1 ig= ∑ (ƞ t+1∏t) (ƞ t ∏t +1) t-1 where ƞt is the cummulative share of income and ∏t is the cummulative share of population. the gini coefficient falls between 0 and 1. if the income contribution is below 0.4 percent, then the inequality of income distribution is low, and if the income contribution is above 0.4 percent, then the inequality of income distribution is high. the welfare level is calculated by comparing between per capita income of family members of street vendors and income to meet the decent living needs (khl) in banyumas regency in 2019 of rp 1,750,000/month (central java governor decree number 560/68 in 2018 about minimum wages in 35 regencies/ municipalities in central java province in 2019). per capita income is calculated by dividing family income by the number of family members (wauran, 2012). results and discussion characteristics of respondents characteristics of respondents seen from the age as a whole are in the productive age or between the ages of 15-65 years (bps, 2016), with the distribution as shown in table 4. based on age grouping by gender at the young productive age, the number of male street vendors is higher than the number of female street vendors, likewise in the older productive age group, but in the middle productive age, the number of female street vendors is higher than the number of male street vendors. table 4. age distribution of respondents by gender age (years) male (%) female (%) 21-34 (young productive age) 48.89 46.67 35-48 (middle productive age) 31.11 40.00 49-62 (older productive age) 20.00 13.33 total 100.00 100.00 the average total trading capital of street vendors is rp.2,799,889 with the lowest capital of rp.30,000 and the highest capital of rp.20,000,000. based on gender, the average capital of male street vendors is rp. 3,038,667 with the lowest capital of rp.30,000 and the highest capital of rp.20,000,000. whereas the average capital of female street vendors is rp.2,561,111 with the lowest capital of rp.100,000 and the highest capital of rp.15,000,000. the average capital of male street vendors is higher than those of female street vendors. when it is grouped into low, medium and high capital groups as seen in table 5, the number or low capital street vendors ranks first, this means that most of street vendors in the sunmor gor satria market have low capital. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 34-41 table 5. distribution of street vendors capital at sunmor gor satria market by gender capital (rp) male (%) female (%) low 30,000 – 6,686,666 88.89 91 medium 6,686,666 – 113,343,332 6.67 4.44 high 13,343,333 – 20,000,000 4.44 4.56 total 100 100 most street vendors sell non-food items category, such as clothing, kitchen utensils, women accessories, phone credit voucher, children’s toys, sandals and shoes at sunmor gor satria market by 63 street vendors (70 percent), consisting of 32 male street vendors (36 percent) and 31 female street vendors (34 percent). 27 street vendors (30 percent) consisting of 13 male street vendors (14%) and 14 female street vendors (27 percent) sell food category, such as chicken porridge, tahu aci, iced drinks, meatballs, empal, leker, spring rolls, pizza, etc. most female street vendors sell foods, while most male street vendors sell non-food items. table 6. distribution of merchandise types of street vendor respondents at sunmor gor satria market purwokerto type of mercha ndise male female amount people % people % people % food 13 14 14 16 27 30 nonfood 32 36 31 34 63 70 total 45 50 45 50 90 100 contribution of respondents’ income to family income the income of respondent’s family consists of income earned from street vending and other incomes, such as income earned from selling merchandise at home, wages or salaries from odd jobs, and income earned from street vending at sunmor gor satria market. the average street vendors income is rp.3,065,778 a month with the lowest income of rp.40,000 and the highest income of rp.24,750,000 a month. 63 street vendors or 70 percent have below-average income. of the 63 street vendors, 31 people or 49 percent are male street vendors and 51 percent are female street vendors. the average family income of street vendors a month is rp.7,841,778 with the lowest family income of rp.120,000 and the highest family income of rp. 56,680,000. the number of street vendors whose family income is below average is 70 people or 77.78 percent. of the 70 people, 35 people are male street vendors and 35 people are female street vendors. the contribution of the average total income earned from street vending is 41.37 percent. the contribution of street vendors income to family income by gender is based on grouping the contribution of female street vendors income to family income and the contribution of male street vendors income to family income. the average female street vendors income is rp. 3,595,111 a month, the number of street vendors with below average income is 32 people or 71 percent. the average family income of female street vendors is rp.9,131,822, the number of female street vendors with below average income is 37 people or 82 percent. the contribution of average female street vendors income to family income is 42%. the average income of male street vendors from selling goods is rp.2,527,111 a month, the number of male street vendors with below average income is 31 people or 69 percent. the average family income of male street vendors is rp.6,511,733, the number of male street vendors with below average family income is 31 people or 69 percent. the contribution of average male street vendors income to family income is 40.70 percent. level of respondents income distribution to find out the extent of level of equal income distribution of respondents, it is measured using the gini index (gi). gi calculation for the respondents’ family as a whole and based on gender can be seen in table 7 as follows: table 7. gini index of respondents’ family as a whole and based on gender respon dent of street vendor gi of street vendor family income income distributi on category gi of street vendor income income distributi on category female 0.52 high inequality 0.47 high inequality male 0.44 high inequality 0.39 moderate inequality overall 0.48 high inequality 0.44 high inequality it can be seen that the income inequality of the respondents’ family as a whole and based on gender is in high category. income inequality of male street vendor is in a jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 34-41 moderate category, but it is likely to lead to high category. welfare level of respondents’ family the welfare level of respondents’ family as a whole and based on gender can be seen through a comparison between respondents’ per capita income as a whole and based on gender and income to meet the decent living needs (khl) in banyumas regency in 2019 of rp.1.750.000,-/month (central java governor decree number 560/68 of 2018 concerning minimum wages in 35 regencies/municipalities in central java province in 2019). per capita income is measured by dividing respondents’ family income and the number of family members. per capita income is an indicator to show the level of a person’s ability to fulfill his or her needs. currently, a person’s standard of living is measured by decent living needs (khl), if a person’s per capita income has fulfilled khl, then he has meet the level of adequacy of physical and non-physical needs. this means that the level of his living needs has been adequate, thus the minimum level of adequacy and wellbeing of his life has been fulfilled. in this study, the average number of respondents’ family members is 3 (three) people. the average total per capita income of respondents’ family is rp.2,629,326 per month, but the respondent’s family with below average per capita income reaches 64 respondents or 71.11 percent. the average per capita income by gender for female street vendors family is rp.2,704,800, the number of female street vendor family with below average per capita income is 32 respondents or 71.11 percent. whereas the average per capita income of male street vendor family reaches rp.2,553,852; the number of male street vendor families with below average per capita income is 32 respondents or 71.11 percent. level of welfare of the respondents’ family is measured by comparing between per capita income of the respondents’ family and income equivalent to khl of rp.1,750,000. overall, the number of respondents whose income level had fulfilled khl only reaches 48 respondents or 53.33 percent, while per capita family income of remaining 42 respondents or 46.67 percent does not fulfill khl. the number of male street vendor families who meet per capita income equivalent to khl is 25 respondents or 55.56 percent, while the number of female street vendor families who meet per capita income equivalent to khl is 23 respondents or 51.11 percent. the contribution of average street vendor income at sunmor gor satria market is in the moderate category or between 33.3366.67 percent by 41.37 percent of respondents. the number of street vendors whose contribution of income is in low category of less than 33.33 percent is 20 respondents or 0.22. the contribution of average female street vendors income to family income is in moderate category of 42 percent, 10 female street vendors (22.22 percent) have a contribution of below average income to family income. the contribution of average male street vendors income to family income is in moderate category (40.70 percent) and 10 male street vendors (22.22 percent) have a contribution of low income to family income. thus, the first hypothesis stating that the contribution of street vendors income to family income is high, is rejected. this result is different with lani farida’s study (2011) stating that the contribution of income of women working in the informal sector (trade) at market is high, this is possible because the pattern of selling at market is carried out every day, while street vendors at sunmor gor satria market do not carry out their activities every day, but once a week. similarly, the results of wasilatur rohmah, any suryantin, and slamet hartono’s study (2014) examining the contribution of the agricultural sector to family income found that the contribution of the agricultural sector to family income is high, this means that the efforts of street vendors to increase income through incidentally selling goods are not reliable to have high contribution to family income. the second hypothesis stating that there is income inequality at sunmor gor satria market as a whole and by gender is accepted. the level of income inequality is relatively high because the gini coefficient is above 0.40. this means that unequal income distribution occurs anywhere between cities and between villages in indonesia (dijan rahajuni, 2017) or abroad (ballard et al, 2013). firdaus and cornelia mirwantini witomo’s study (2014) found that in the fisheries sector, there is unequal income distribution on fishermen. moreover, wasilatur rohmah, any suryantin, and slamet hartono’s study (2014) found that there is income inequality in the agricultural sector. income inequality occurs at sunmor jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 34-41 gor satria market purwokerto due to differences in business capital, types of merchandise, the distance between trading location and the center of crowd at gor satria, education level and selling skills. although the average income of street vendors as a whole or by gender is above khl of rp.2,629,326, the average income of female street vendors is rp.2,704,800 and the average income of male street vendors is rp.2,553,852 with the amount of income equivalent to khl of rp.1,750,000. however, the income of 71.11 percent of respondents as a whole or based on gender is below khl. thus, the third hypothesis stating that street vendors at sunmor gor satria market have not been prosperous is accepted. the finding of this study is consistent with the finding of firdaus and cornelia mirwantini witomo’s study (2014) stating that the informal sector workers, in this case the fishermen live in poverty or have not been prosperous. conclusion from the discussion of research findings, it can be concluded that: 1. contribution of street vendor income from selling goods at sunmor gor satria market as a whole and based on gender is in moderate category; 2. level of income inequality of street vendors at sunmor gor satria market as a whole and based on gender is in high category; 3. most street vendors at sunmor gor satria market as a whole and based on gender have not been prosperous. to improve distribution of income and welfare of street vendors at sunmor market gor satria, it is necessary to improve the management of street vendors in terms of location and organization. improvement of street vendors management in terms of location can be carried out by grouping street vendors according to the types of merchandise. improvement of street vendors management in terms of organization can be carried out by registering street vendors according to the continuity of their trading patterns at sunmor gor satria market purwokerto, the government should provide socialization to street vendors who continuously sell merchandise at sunmor gor satria market in order to improve their services and business. references arrisa trimaya, (2014). implementation of minimum wages in national system wage to improve work force’s welfare. journal of aspiration. vol. 5 no. 1, june 2014, pp. 11-20 bps. (2017). statistik keadaan angkatan kerja indonesia. bpd indonesia, jakarta biro pusat statistik (bps), (2018) https://www.bps.go.id/istilah/index.html?istil ah_page=4) accessed on april 21, 2019. ballard, l.c., menchik, l.p., and tan, l. (2013). the state(s) of inequality: changes in income distribution in the us states and the district of columbia. journal of income distribution, 22(2), 25-59. darman, (2015). kehidupan sosial pedagang kaki lima di kota samarinda studi kasus penjual jagung rebus ditepian. e-journal of sociology concentration. sos.fisipunmul.ac.id, 2015, 1 (3): 41-59 didit purnomo, (2000). distribusi pendapatan di indonesia, proses pemertaan dan pemiskinan. journal of development economics: study and problem no. 1 vol. 1 year 2000 pp. 47 59. dijan rahajuni, 2017. inequality of income distribution in rural and urban poor communities a case study on former beneficiaries of pnpm-m program in banyumas regency. journal of ekoregional, vol. 12, no. 2, september 2017, pp. 50-56 firdaus and cornelia mirwantini witomo, (2014_). analysis of welfare and household income inequality of large pelagicfishers in sendang biru, malang district, east java. journal of socio economy kp vol. 9 no. 2 year 2014 pp. 155-168 gilarso. (2004). gilarso, t. (2004). pengantar ilmu ekonomi makro. yogyakarta: kanisius. kbbi, (2019). https://kbbi.kata.web.id/pedagangkaki-lima/, accessed on april 21, 2019 lani farida, (2011). kontribusi pendapatan perempuan bekerja sektor informal pada ekonomi keluarga di kota pekanbaru. journal of business application no.1 vo. 2 year 2011, pp. 103-112 mudrajat kuncoro, (2010). masalah, kebijakan dan politik ekonomika pembangunan. erlangga, jakarta https://www.bps.go.id/istilah/index.html?istilah_page=4 https://www.bps.go.id/istilah/index.html?istilah_page=4 https://kbbi.kata.web.id/pedagang-kaki-lima/ https://kbbi.kata.web.id/pedagang-kaki-lima/ jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 34-41 mudrajat kuncoro, (2015). indikator ekonomi. upp stim ykpn yogyakarta. riduwan, & engkos, a. (2012). cara menggunakan dan memaknai path analysis (analisis jalur). bandung: alfabeta. wasilatur rohmah, any suryantin , and slamet hartono (2014). analisys of income and walfare of planting cane and ratoon cane farm household in bantul district. journal of agricultural economics vol. 24/no. june 1, 2014, pp. 54 -65 wauran, p. (2012). strategi pemberdayaan sektor informal perkotaan di kota manado. journal of development economics and regional finance, vol. 7 no. 3. pp. 131149. yustika & erani, 2000., yustika, & erani. (2000). industrialisasi pinggiran. yogyakarta: pustaka pelajar correspondence to : tonasalaode@gmail.com received: january, 2019 accepted: march, 2019 published: march, 2019 jurnal akuntansi, manajemen dan ekonomi vol. 21, no. 1, 2019, pp. 23-31 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction academic fraud or dishonesty in higher education is a global phenomenon that occurs in almost every country tadesse and getachew (2010). the findings of their study at the university of ethiopia showed that 96.4% of students reported being involved in dishonesty related to assignments. in pakistan, almost 90 percent of the students surveyed were involved in at least one form of academic fraud nazir et al. (2011). in their study involving 655 students, taradi et al. (2012) found that 97% of respondents reported at least 1 of the cheating behaviors surveyed. even 78% of them regularly do at least one form of academic dishonesty. fraud has become one of the phenomena that often appear in every academic activity, this action is done in an illegal way to get success and avoid failure in academic activities. research by rangkuti and deasyanti (2010) conducted a survey of 298 students who showed that academic dishonesty is still often done by students. the results of the survey showed that in the past year students did academic dishonesty during the exam in the form of copying the answers from students during the exam (16.8%), bringing and using cheats to the exam room (14.1%), communicating answers between students during the exam (24.5%) ) the survey results also show that this academic dishonesty also appears in the form of task completion, namely presenting false data (2.7%), allowing his work to be copied by another person (10.1%), copying material from books or other publications without mentioning the source (10.4%), even to change or manipulate research data (4%). prayoga and qudsyi's (2015) study of 253 students showed that academic dishonesty occurs in many forms in students. this form of dishonesty can be seen from using notes to work on tests without the supervisor's permission (6%), copying the results of other students' work during the exam (7.1%), cheating to find out what will be tested in the exam (7.1%), copying student work others during the exam (8.3%), helping others to commit fraud during the exam (12.3%), reasons for accounting students to commit academic fraud: qualitative interview studies muhamad tonasa1, christina tri setyorini 2 1 ,2 accounting department, faculty of economics and business, jenderal soedirman university, indonesia abstract this article focuses on the reasons for accounting students to conduct academic fraud and how the influence of religiosity and culture on academic fraud. a qualitative study was conducted on students and lecturers from a university in central java and southeast sulawesi which consisted of six in-depth interviews. analysis of qualitative inductive content is used to analyze data. document analysis has been carried out to provide a comparative view of how various accounting students at the university conduct academic fraud. the result is using the triangle fraud approach (pressure, opportunity, and rationalization) to show that the elements of pressure and rationalization are the main or general reasons in their observations so that students commit academic fraud. only one student said there was an influence on opportunities in academic fraud. religiosity and culture also have an interest in students to do or avoid compatibility motivation. this study shows the need for universities and accounting study programs to develop their strategies in dealing with academic fraud and improve academic integrity through accommodating religious and cultural values. keywords academic fraud, triangle fraud, religiosity, culture jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 23-31 committing fraud during the exam in various ways (5.9%), copying other people's work and acknowledging it as the result of their own work (7.1%) , falsifying references (13.9%). it doesn't stop there, academic dishonesty is also done by students in the form of asking other people to do the assignments (9.9%), receiving assistance while doing individual assignments when it is not permitted (17.4%), working on tasks with the help of others (19.4 %), copying other people's sentences without including the author's name (18.6%) prayoga and qudsyi (2015). the data above has shown, that dishonesty or lack of integrity is still prevalent among academics, those who should uphold the prevailing ethics and norms. the low level of integrity leads to the implementation of corruption in the world of education. if this is allowed, it is very possible that this dishonesty behavior will continue, even though it is not in the education system. seeing this, it certainly becomes very important to find a solution to minimize the occurrence of dishonesty behavior, especially in the academic context of qudsyi et al. (2018). this study examines accounting students where graduates will work in the financial sector so that the university is responsible for producing graduates who have integrity and honesty and uphold professional ethics. the study presented in this article is a qualitative case analysis that tries to explore the main factors that cause academic fraud and solutions to overcome it and understand academic fraud among students. fraud definition albrecht et al. (2012) stated that fraud is a fraud committed intentionally by a person or group, without any element of coercion so that it is often unconscious, which results in losses for the victim and provides benefits to the perpetrators of fraud. purnamasari (2013) also explained that academic cheating is dishonest behavior by students in academic settings to benefit unfairly in terms of obtaining academic success. in this article, academic fraud is considered as a series of inappropriate or unintentional behaviors issued by students regarding assignments, tests, designated examinations or requirements that must be met in the academic world. behavior that is considered fraud, has been expanded by using advances in information and communication technology from time to time. the fraud triangle theory in 1950, donald cressey, a criminologist, began a study of fraud by stating that there must be a reason behind everything people do. questions such as why do people commit fraud direct them to focus their research on what drives people to violate trust? he interviewed 250 criminals within a period of 5 months whose behavior met two criteria: (i) initially, people accepted the responsibility of trust in good faith, and (ii) circumstances made them violate their beliefs. he tells us that three factors (pressure, opportunity, and rationalization) must be present for violations that occur. cressey further states as follows: "believing in offenders, when they consider themselves to have financial problems that cannot be understood and have the knowledge or awareness that these problems can be resolved secretly by violating the position of financial trust. also they can apply to behavior they themselves are in situations that allow them to adjust their concept of themselves as people who are trusted with their concept of themselves as users of the funds or property entrusted by crassey (1953: 742). effect of pressure on academic fraudulent behavior academic pressure arises because of the insistence on students both from themselves and from the environment to achieve the desired goals caused by the quantity of tasks that must be completed. according to fitriana and baridwan (2012: 244), "the biggest pressures felt by students include the necessity or coercion to graduate, student competition for grades that are very high, so much workload, and insufficient study time" . the necessity or coercion of graduation imposed on students becomes an insistence on students who feel themselves unable to understand the subject matter. the weight of the assignments given in terms of too much and the high level of difficulty can burden students and urge students to look for ways that tend to be instant. learning time that is not enough can hinder students in understanding the subject matter and the speed and accuracy in the collection of tasks jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 23-31 given. this can encourage students to carry out academic fraudulent actions both during tests and assignments. fitriana and baridwan (2012) and nursanti and irianto (2013) in their study showed that pressure has a positive and significant effect on academic cheating behavior. effect of opportunities for academic fraudulent behavior opportunities are opportunities that arise both intentionally and unintentionally in situations that make someone feel they have to commit a fraud like cheating. some things are indicators of cheating opportunities. mufakkir and listiadi (2016: 4) state that lack of controls to prevent and detect violations, inability to assess the quality of a result, failure to discipline fraud perpetrators, lack of access to information; ignorance, apathy or indifference, and inadequate ability of the injured party and lack of examination. fitriana and baridwan (2012), nursanti and irianto (2013) and pamungkas (2015) in their research show that opportunities have a positive and significant effect on academic fraudulent behavior. effect of rationalization on academic fraudulent behavior cheat rationalization is a process carried out by students by giving reasonable reasons to justify wrong cheating behavior so that it is socially acceptable and not blamed. muffakir and listiadi (2016) mention that rationalization that is often used is not why it breaks the rules (cheating) because everyone does it too. fitriana and baridwan (2012), nursanti and irianto (2013), pamungkas (2015) in their study showed that rationalization had a positive and significant effect on academic fraudulent behavior. theory of attitudes and behavior the attitude and behavior theory (theory of attitudes and behavior) was developed by triandis (1971). according to triandis (1971), attitudes concerning cognitive, affective and behavioral components. the cognitive component concerns beliefs, while the affective attitude component has connotations of likes or dislikes. triandis (1980) presents a more comprehensive model of interpersonal behavior by stating social factors, feelings and consequences that are felt to influence behavioral goals and vice versa will affect behavior. based on the objectives and theoretical framework, the authors compiled two categories of research questions consisting of: first, individual questions and second, religiosity and cultural questions. research methods this research is qualitative research. a qualitative research approach is a research and understanding based on methodologies that investigate social phenomena and human problems. in this approach, the researcher makes a complex picture, examines the words, detailed reports from the respondents' views, and conducts studies on the natural situation creswell (1998: 15). this study was conducted at two universities, namely one university in central java and one university in southeast sulawesi. the selection of universities and students interviewed is based on convenience samples. this is a sampling technique in which subjects are chosen because of their easy accessibility to researchers. the most obvious limitation of convenience sampling is sampling bias and the sample does not represent the entire population, the results of the study cannot be accurate for the entire student population. at the same time, this sampling technique is useful in documenting that certain qualities of a substance or phenomenon occur in a given sample. the ethical aspects of this research method were considered throughout the entire study period. overall five interviews were carried out as follows: 2 in universities in central java and 2 at universities in southeast sulawesi with their respective codes, namely: jw1 and jw2 for resource persons from central java, sl1 and sl2 for resource persons from southeast sulawesi, sl3 for resource persons from among sharia accounting lecturers. the speakers in this study were lecturers and students majoring in accounting who had various cultural backgrounds. the researcher selects the speakers with the consideration that they will provide the data needed to support the research activities, namely (1) their perceptions as prospective accountants, resource persons (students) have taken the course of business ethics, (2) understand their original culture, (3) resource persons (lecturers) as teaching staff for accounting or jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 23-31 tax subjects. the number of informants in this study were five people who were divided into three male informants and two female informants. in collecting data, researchers use data collection techniques in the form of: 1. semistructured interviews, with 6 questions. these questions are prepared based on academic fraud theoretical background. 2. in-depth interviews (depth interviews), namely holding questions and answers directly with competent parties and have a close relationship with the object of research in order to obtain complete information. 3. techniques refer to note that the technique is done to obtain data by paying attention, then record the conversation or information from the informant as data in the study. data analysis techniques, techniques used in analyzing data using qualitative inductiv content analysis. this research activity is descriptive qualitative, namely data collected in the form of interviews, and note notes. next is to do the transcript to be moved by copying oral data into written data using latin letters. the researcher collected this feedback in an interview where the exploration question was mapped in table 2.1 which is attached to this article. results and discussion individual questions apart from the definition of academic fraud, the speakers were asked questions about their own behavior and experience about fraud academics. generally they interpret academic fraud as dishonesty in academic activities. the results of these questions will be discussed in the following sections. almost everyone interviewed did not commit academic fraud at the university level, but they saw various forms of academic fraud in their academic environment. only one resource person claimed to have conducted academic fraud. following were interview quotes from accounting students (jw1, jw2, sul1, and sul2) and sharia accounting lecturers (sul3) about the forms of academic fraud they saw: sul 1: student fraud occurs in various forms, one of which is things related to the value obtained. which is where almost most students want good grades instantly. i have never cheated, this is because of my awareness that education is a place to change oneself for the better. sul 2: forms of student cheating include: cheating on friends 'work during exams, opening books during exams, copying friends' assignments, opening internet via handphone, during exams, copy pasting from the internet. i have cheated jw1: what i know is the form of student cheating which is cheating on exams such as uts and uas. alhamdulillah, i have so far tried not to cheat on friends' answers during the exam. jw2: the ones i often see are skipping class. i have never done academic fraud because i did not want to make a problem and it has become my habit since i was in elementary school until high school not to do that sul 3: see copies during mid test and final test & also cheat on friends. speakers were also asked about the reasons why they did academic fraud. the answer varies from individual to individual, starting from wanting to get good grades, lazy people, not understanding the purpose of schooling, lack of self-awareness of students as conveyed by speakers of sharia accounting lecturers, to various forms of rationalization or improvement. this informant's answer can be explained by the theory of triangle fraud, so that you can understand why this is reasonable. the following excerpts from the interview: jw1: the basic reason for students cheating, most of them want to get good grades, or indeed do not understand the material and the problem becomes unable to answer. because students may also be required to get good grades, if they want to graduate the best. so maybe it's one way to get his wish jw2: because students sometimes need freedom, and don't really like a rule that applies. the character of lazy students is one reason they like to skip skipping. sul1: students cheat because of a lack of understanding of the nature of education. which in the education world should be a container that is used to proceed to be even better sul2: because of the difficulty in doing the assignments from the lecturer, because the task requires real answers, is affected by the presence of other students cheating, the time provided is very short, students do not understand the material being tested, because others are learned, other questions jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 23-31 arise , doubtful with your own answers, there is no punishment given for cheating and the most important thing is getting good grades. sul3: lack of self-awareness that cheating is an element that inhibits the development of personal knowledge so that in the context of the exam students do not prepare for learning & ultimately hope for other friends by cheating. the speakers were also asked about which factors in the triangle fraud theory include pressure, opportunity or opportunity, and rationalization which are the reasons students conduct academic fraud. their answers vary as the following interview quotes: sul1: factors that influence students in cheating are pressure and compulsion. where compulsion and pressure arises because the tuition fees are too high so that students always want good grades so that they do not dissolve in the world of lectures and are not too expensive. sul2: yes, in my opinion all three (pressure, opportunity, rationalization) jw1: maybe it's more about the factor of wanting to get good grades, because they also have aspirations or hopes of getting gpa 4 or cumlaude, and graduating with satisfying grades. jw2: it could be because of the pressure factor, because you want to get good grades, because in the current era, everyone is competing to get good grades. because value is the benchmark of students not the process. sul3: mushrooming pragmatism makes some students ignore their ideals. from the interview quotations above from the three elements contained in triangle fraud theory, the elements of pressure and rationalization are the main or general reasons in their observations so that students commit fraud. only one student said there was an influence on opportunities in academic fraud. rationalization, as expressed by sul3 lecturers, namely pragmatism, reinforces the researchers' arguments for the reduction in student idealism. finally, the interviewees were also asked about how to reduce or overcome academic fraud, their answers varied, according to their experience in conducting academic activities on campus, such as the following interview excerpt: sul1: in my opinion, students must be given an understanding of the world of campus, religion, cultural values and so on. sul2: how to deal with academic fraud, namely: giving questions that are easy to understand, and in accordance with what is taught in class, giving time to complete tasks, giving punishments for students who are proven to commit fraud by not passing the student to the relevant subject . jw1: by paying more attention to the learning contract, where the weight of the test scores is not too high. because sometimes students during exam days, there are those who lack body fit, or also too much subject matter that is released during the exam, and stress due to a lot of learning to schedule the exam at that time. jw2: in my opinion, you must recall the struggles of parents who have been funding while studying at school, so that they are selfconscious not to do so. sul3: build self awareness & group awareness by presenting divine values in each of our activities. questions of religiosity and culture the second category of questions interviewed was asked regarding the issues of religiosity and culture regarding academic fraud. when asked about why other students were involved in academic fraud, the reasons were somewhat different. regarding socialreligious questions, accounting students and sharia accounting lecturers answer as follows: jw1: yes, that is because if we believe that allah is the seer, we are not brave or afraid, that what we do (cheating) is bad deeds. because what we will do / do in this world, will later be held accountable in the hereafter. jw2: not necessarily, what i see sometimes wants to be free and dislike a rule not because of religion in daily life sul1: it could be, if if students understand and practice religious values then the possibility of fraud will not occur. sul2: yes, it could be, but other factors must also be considered and considered such as the pressures as mentioned above. sul3: divinity values are eroded by the emergence of the development of civilization so awareness of a value or value is ignored by students & cheating is also considered normal. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 23-31 regarding questions with culture, accounting students and sharia accounting lecturers answer as follows: jw1: cultural values can also be done, because from childhood they are also educated to be honest and if to get what they want they must also try in a good way. jw2: it could be, because culture is taught about ethics and cultural values have been lost. sul1: yes, one of the causes of fraud occurs is cultural values. that is because every culture forbids bad behavior. sul2: not only because of that, it is the situation that sometimes makes us cheat, this is caused by the pressures mentioned above. sul3: the values of local wisdom are in line with the values of godhead, so when this is ignored, it is certain that the personality that upholds honesty & other noble attitudes will be ruled out. overview of triangle fraud theory at academic fraud the most popular reason or important point for getting involved in academic fraud is not getting better grades. based on the results of this study, each resource person has a different view, about the reasons for the occurrence of academic fraud. specifically, they said that academic fraud occurred because they did not understand the material or questions at the time of the exam making it difficult to complete the task correctly in a limited time, hesitating with their own answers, laziness following rules that apply in the environment or in academic activities, not having awareness of the importance of education so that it becomes a quality human resource so that this action hinders the development of personal knowledge, and there is no punishment or sanction given if caught cheating is a common reason when rationalizing academic fraud. the reason for the occurrence of academic fraud generally can be reinforced by findings and explanations by taking into account every element in the triangle fraud theory. in triangle fraud's theory the first element is the pressure that is felt personally to be the trigger for unethical actions. as in the results of the pressure research, wanting to get good, good or high grades is the reason they commit fraud. this finding is similar to the findings of rasha and andrew (2012) who believe that personal and corporate pressures are the main motive for committing fraud. the difference with this research is the place of research, namely the corporate environment, while in this study it is located in the campus environment. pressure (pressure / pressure) is a situation where someone feels the need to commit fraud. the higher the pressure, the greater the likelihood that academic fraudulent behavior will occur. the pressure in the research that will be carried out is the pressure experienced by students as a driving factor for students to conduct academic fraud. so the pressure in the context of academic cheating is the motivation and motivation faced by students in their daily lives that have links with academic problems and cause them to have strong pressure to get the best academic results in any way albrecht (2012). the second element is opportunity or opportunity, in this study the second element of theory triangle fraud has statement strengthening as expressed by sul speakers. 2 speakers said that there was an opportunity or opportunity that caused the academic fraud to occur. opportunity is a situation where a person feels that he has a combination of situations and conditions that allow him to commit academic fraud and not be detected. the increasing opportunity obtained, the greater the likelihood of academic fraudulent behavior. opportunities usually arise because of a lack of good systems. so that basically the opportunity is the easiest factor to be minimized and anticipated, when a good system has been created and the control is good, there is less chance for people to commit fraudulent acts albrecht (2012). becker et al. in his research found that opportunity is a factor that drives academic fraud. opportunities will positively influence fraudulent behavior, where the greater the opportunity available for someone to commit fraud, the greater the likelihood that the person will commit fraud. the third element rationalization or justification has a close relationship with the findings in this study. generally the resource persons rationalize the reasons for academic fraud. rationalization is self-justification or a wrong reason for a wrong behavior. with the rationalization of accounting students cheating, the more likely academic cheating behavior will occur. rationalization can be jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 23-31 interpreted as an attitude or personal assumption that cheating is an act that is not wrong. as a process or a way to make something that is not rational to be rational (acceptable to common sense) or to be something good. based on the above understanding, rationalization in academic fraudulent acts is a self-justification behavior carried out by students to reduce guilt arising from having committed dishonest acts in an academic context. rationalize one of the things that concerns each individual's feelings. this factor is a little more difficult than the two previous factors. mccabe and trevino (1997) suggest that when students will rationalize, they will feel that they are being treated unfairly. becker et al. in his research successfully proved that rationalization was an influential factor in fraud committed by students. the researcher concludes from the reduction of data that by using the theory of triangle fraud, the constituent elements can support, match, match and can explain why academic fraud occurs, so that findings in the field can be verified credibly. furthermore, a lot of research is needed to find out the reasons for students doing academic fraud, as a development of this research. the view of religiosity towards academic customer friendliness according to the big indonesian dictionary of religion is trust in god. whereas religiosity is the level of religion of human nature, so that it can be interpreted as religiosity is the level of trust in god in religion. according to aziz (2016) states that religiosity has a negative effect on student academic fraud. this is because with high religiosity, he will fear his god. so he will believe in what is called a reply or torment from his lord with all his actions that are not good. because religiosity has a negative influence on student academic fraud, the results also mean explaining that the higher the religiosity of a person, the lower academic cheating done by students. and vice versa, the lower the religiosity will be the higher the academic fraud that occurs. students with high levels of religiosity will certainly show that they believe in actions (karma) what they do according to their respective religions and they are afraid of sin with negative actions taken. students with a high level of religiosity show that they believe in revenge from their god from each religion they seek. based on the results of this study, as revealed by the speakers jw1 and sul1 that submission to the values of reliability will prevent fraud and if you believe that allah sees all that is done by humans, then we do not dare or feel afraid, that we do (cheating ) that is not good. because what we will do / do in this world, will later be held accountable in the hereafter. as explained in the qur'an, surat al muthaffifin verses 1-6 contain cheating as follows: "it's a big accident for people who cheat, that is, people who if they receive a dose from someone else they ask to be fulfilled and if they measure or weigh for others they reduce. don't those people think that they will be resurrected on a big day, that is the day when people stand before the lord of hosts? " this is one of the attitudes of god (allah) in the book of the qur'an regarding cheating. this verse of the qur'an explicitly explains that allah will punish those who cheat with a major accident (doom). religion also teaches what is right and what is wrong so that it can be said that students who have high religiosity will not commit fraud. academic because what they do will conflict with the teachings of the religion they embrace. cultural view of academic fraud culture refers to the norms, values, and beliefs of a particular group or community in a particular area or geographical location, and is shared by its members hofstede (1980). this means that beliefs, norms and value systems can influence community members to behave and act in certain ways deemed acceptable by other members in the group. norms in behaving are also influenced by ethical values that are believed by every person or group. this research is in accordance with the research of ferrell and gresham (1985), where individual ethical decision making can be influenced by many factors such as individual, social, and cultural environment. it seems that cultural values have an influence on academic fraud actions, as expressed by the informant that cultural values can also influence fraud, because education since an early age is educated to be honest and if you want to get what you want you must also try in a good way . in jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 23-31 culture it is taught about ethics which regulates ethical social norms to do. the values of local wisdom are in line with the values of godhead, so when this is ignored, it is certain that the personality that upholds honesty & the noble attitude of others will be ruled out. conclusion interesting findings from this study, using the triangle fraud approach (pressure, opportunity, and rationalization) indicate that elements of pressure and rationalization are the main or general reasons for their observations so that students commit academic fraud. only one student said there was an influence on opportunities in academic fraud. this study shows the need for universities and accounting study programs to develop their strategies in dealing with academic fraud and improve academic integrity through accommodating the values of religiosity and culture. suggestions that can be given are lecturers and leaders in universities can provide reinforcement to students so that they are not depressed. because the pressure factor greatly affects students in committing fraud. the researcher can further examine the influence of culture or culture of each individual, to obtain more comprehensive findings because in this study the elements of individual culture influence students to do or avoid cheating behavior. references albrecht, w.s., albrecht, c.o., albretch, c.c.,zimbelman, mark f. (2012). fraud examination (4 th ed). usa: southwestern.cengage learning. aziz, m.r. (2016). analisis pengaruh fraud diamond, integritas, religiusitas terhadap perilaku kecurangan akademik mahasiswa. skripsi. universitas brawijaya: malang. albrecht, w.steve. (2012). fraud examination, fourth edition. south-western. usa. cressey, d. r. (1953). other people’s money. montclair, nj: patterson smith. fitriana, a. & baridwan, z. (2012). perilaku kecurangan akademik mahasiswa akuntansi: dimensi fraud triangle. jurnal akuntansi multiparadigma, 3(2), 242-254. ferrell, o. c. & gresham l. g. (1985). a contingency framework for understanding ethical decision making in marketing. journal of marketing 49(summer), 87–96. qudsy, h., sholeh, a. & , afsari, n. (2018). upaya untuk mengurangi ketidakjujuran akademik pada mahasiswa melalui peer education. integritas, 4(1), 82-88. hofstede, g. 1980. culture’s consequences: international differences in work related values. beverly hills, ca: sage publications mufakkir, m.f. & listiadi, a. (2016). pengaruh faktor yang terdapat dalam dimensi fraud triangle terhadap perilaku kecurangan akademik. jurnal pendidikan akuntansi. 1 (1), 1-9. mccabe, d. i., & trevino. 1997. individual and contextual influences on academic dishonesty: a multicampus investigation. research in higher education, (38), 379 396. nursanti, r & irianto, i. (2013). perilaku kecurangan akademik mahasiswa: dimensi fraud diamond. jurnal ilmiah mahasiswa feb universitas brawijaya. 2 (2), 1-21. nazir, m.s., aslam, m.s. & m.m. nawas, (2011). can demography predict academic dishonest behaviors of students? a case of pakistan. international education studies, 4(2), 208-217. prayoga, a.g., & qudsyi, h. (2015). hubungan antara konformitas terhadap teman sebaya dan kecurangan akademik pada mahasiswa perguruan tinggi. naskah publikasi. program studi psikologi fakultas psikologi dan ilmu sosial budaya universitas islam indonesia. pamungkas, d.m. (2015). pengaruh faktor-faktor dalam dimensi fraud triangle terhadap perilaku kecurangan akademik siswa kelas xi akuntansi smk negeri 1 tempel tahun ajaran 2014/2015. skripsi. (unpublished). program studi pendidikan akuntansi jurusan pendidikan akuntansi fakultas ekonomi universitas negeri yogyakarta. purnamasari, d. (2013). faktor-faktor yang mempegaruhi kecurangan akademik pada mahasiswa. educational psychology journal, 2(1), 13-21. rangkuti, a.a., & deasyanti. (2010). sikap anti intelektual, self efficacy akademik, dan perilaku cheating akademik pada jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 23-31 mahasiswa kependidikan. naskah publikasi. temu ilmiah nasional dan kongres xi himpsi solo, jawa tengah. rasha, k., & andrew, h. (2012). the new fraud triangle, journal of emerging trends in economics and management sciences, 3(3) smith, m., omar, n., sayed, i. s. i. & baharuddin, i. (2005). auditors' perception of fraud risk indicators: malaysian evidence. managerial auditing journal , 20(1), 73-85. tadesse, t. & getachew, k. (2010). an exploration of undergraduate students’ selfreported academic dishonesty at addis ababa and jimma universities. ethiopian journal of education and science, 5(2), 7999. triandis, h.c. (1971). attitudes and attitudes change. jhon weley and sons, inc, new york. triandis, h.c.(1980). value, attitudes and interpersonal behavior. university of nabraska. taradi, s.k., taradi, m., dogas, m.(2012). croatian medical students see academic dishonesty as an acceptable behaviour: a cross-sectional multicampus study. journal medical ethics, 38(6), 376-379. wolfe, d., & hermanson, d. r. (2004). the fraud diamond: considering four elements of fraud. the cpa journal, 74 (12), 38-42. journal of accounting management and economics vol. 20, no. 1, 2018, pp. 37-47 published by faculty of economics and business, universitas jenderal soedirman published online on january, 8 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 onlineissn: 2620-8482  correspondence to : intan.praditya@yahoo.com received: december 5, 2017 revised: december 19, 2017 accepted: january 2, 2018 introduction the varied and increasing needs of consumers requires business people to meet the needs and desires of consumers more effectively than their competitors. consumer behavior becomes very important basis in marketing and advertising. consumer behavior study focuses on how individual decides to utilize their available resources (time, money, effort) in order to buy things related to consumption. this includes what, why, when, and where they buy, how often they buy, and how often they use them (schiffman and kanuk, 2008:6). according to engel, blackwell, and miniard (1995:201) purchase of products or services made by the consumer can be classified into three kinds, namely: (1) fully planned purchases, (2) half planned purchase, (3) impulse buying. impulse buying is the behavior of a purchase in a store, where purchases are different from what have been planned by the consumer at the time they get into the store. impulse buying is an act of purchase made without planning, or purchasing decisions are made at the time in the store. impulse buying may occur when a consumer is not familiar with the store, under the pressure of time, or someone who is reminded of the need to buy a unit when they look at the rack in the store (utami, 2010:50). setiadi and warmika (2015) in their research revealed that the involvement of fashion has a positive influence on impulse buying of fashion consumers in denpasar, the involvement of fashion has a positive effect toward the positive emotion of fashion consumers in denpasar, positive emotionhas a positive effect on impulse buying of fashion consumers in denpasar, and positive emotion positivelymediatesthe effect of fashion involvement on impulse buying of fashion consumers in denpasar. the results of the research conducted by dhurup (2014) indicates that the behavior of hedonism, the involvement of fashion, and emotional satisfaction have positive effect on impulsebuying behavior. dewiet.al (2015) in her research suggests that the trend of hedonism consumption has positive effect on impulse the influence of fashion involvement, hedonic consumption, and visual merchandising on impulse buying with positive emotion as mediation variables sri murni setyawati1, sumarsono2, intan praditya3 1,2,3 faculty of economics and business, jenderal soedirman university, indonesia abstract this research aims to analyze the influence of fashion involvement, hedonic consumptions, and virtual merchandising on impulse buying with positive emotion as mediator variable at popies girls shop. the population of this study was the female students of economics and business faculty, jenderal soedirman university. the researcher used 145 samples. sampling technique used in this research was random sampling. data were analyzed using structural equation modeling (sem). the result of this research analysis shows that: (1) the involvement of fashion had a positive effect on positive emotion, (2) the trend of hedonic consumption did not have effect on positive emotion, (3) visual merchandising had positive effect on positive emotion, (4) positive emotion had positive effect on impulse buying, (5) positive emotion mediates the relationship between involvement fashion and impulse buying, (6) positive emotion does not mediate the relationship between trends in hedonic consumption and impulse buying, (7) positive emotion mediates the relationship between the visual merchandising and impulse buying. keywords fashion involvement; hedonic consumption; trends; visual merchandising; positive emotions; impulse buying journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 37-47 38 buying and positive emotion. the higher the hedonic consumption experienced by consumers when shopping directly increase positive emotion of consumers when shopping and increase impulsebuying. in variabel of visual merchandising studied by sari et al (2015) suggests that visual merchandisinghas positive effect on impulse buying. meanwhile, the research conducted by yanthi and japarianto (2014) suggests that visual merchandising has positive effect on positive emotion, and impulse buying. it means that visual merchandising affects buyer‟s emotional condition that make them perform buying. emotional condition will create two dominant feelings i.e. pleasure and raising desire. according to rachmawati (2009: 195), there are two influencing factors in impulse buying, one of them is positive emotion. as an individual, consumers have deep feeling and emotion that affect purchase and ownership of certain products (utami, 2010:291). according to donovan and rossiter in peter and olson (2000:251) consumer‟s positive emotion consists of pleasant feeling, passionate, and dominating feeling that are felt when shopping. in the competition of fashion product, consumers will buy current trend fashion products. popies girl shop purwokerto provides variouus female fashion especially for students such as clothes, shoes, sandals, bags, and accesories with up to date models and affordable price. visual merchandising served by popies girl shopfor consumers is attractive enough. popies girl shopis located strategically at jl. hr. bunyamin no. 489 and near college. based on the explanation above, the effect of fashion involvement, trend of hedonic consumption, and visual merchandising on impulse buying with positive emotion as interverning variable is interesting to be studied. problem formulation 1. does fashion involevement have positive effect on positive emotion? 2. does trend of hedonic consumption have positive effect on positive emotion? 3. does visual merchandising have positive effect on positive emotion? 4. does positive emotion have positive effect on impulse buying? 5. does positive emotion mediate the effect of fashion involvement on impulse buying? 6. does positive emotion mediate the effect of visual merchandising on impulse buying? aims of the research 1. to analyze the effect of fashion involevement on positive emotion. 2. to analyze the effect of trend of hedonic consumption on positive emotion. 3. to analyze the effect of visual merchandising on positive emotion. 4. to analyze the effect of positive emotion on impulse buying. 5. to analyze the effect of mediation of positive emotion on causal relationship between fashion involvement and impulse buying. 6. to analyze the effect of mediation of positive emotion on causal relationship between trend of hedonic consumption and impulse buying. 7. to analyze the effect of mediation of positive emotion on causal relationship between visual merchandising and impulse buying. research model figure 1. research model hypothesis h1 : fashion involvement has positive effect on positive emotion. h2 : trend of hedonic consumption has positive effect on positive emotion. h3 : visual merchandisinghas positive effect on positive emotion. h4 : positive emotion has positive effect on impulse buying. h5 : positive emotion mediates the effect of fashion involvement on impulse buying. h6 : positive emotion mediates the effect of trend of hedonic consumption on impulse buying. journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 37-47 39 h7 : positive emotion mediates the effect of visual merchandisingon impulse buying. methods population and sample of the research this is descriptive research wiht observation and survey method. the population of this research was female students of s1 program, business and economy faculty jenderal soedirman university that have performed impulse buying at popies girl shop purwokerto as many as 721 people. the samples of this research were female students of s1 program, business and economy faculty jenderal soedirman that were still active for the class of 2012, 2013, 2014, and 2015 that have performed impulse buying at popies girl shop purwokerto. the appropriate sample size for sem is 100-200, and using comparison with five observations for each parameter estimation (hair et.al, 2010). in this research, there were 22 indicators and 7 line coefficients so that total estimated parameterwere 29 parameters. thus, the total samples of this research were 145 respondents. the samples were taken using probability samplingtechnique with simple random samplingtechnique i.e. a sampling technique that gives equal opportunity to the population to be a sample (suliyanto, 2006:113). the sources of data were primary taken from observation and survey, and secondary data taken from theoretical review, scientific articles, scientific journals, and other sources related to research taken from internet. conceptual and operational definition dependent variable dependent variable used in this research was impulse buying. conceptual definition: impulse buying is buying behavior based on impulse or sudden desire without considering the consuequence, or being emotionally encouraged (schiffman and kanuk, 2008:489) operational definition: buying behavior that is not planned due to impulse or sudden desire without considering consequence when customers are at popies girl shop. indicators: spontanous buying; not considering consequence; and emotional impulse (schiffman and kanuk, 2008:489) intervening variable the dependent variable used in this research was positive emotion. conceptual definition: consumer‟s positive emotion consists of pleasant feeling, passionate, and dominating feeling that are felt when shopping. (donovan and rossiter in peter and olson, 2000:251) operational definition: individual‟s moodfelt as positive response against environment and situation at popies girl shop. indicators: pleasant feeling; passionate feeling; and dominating feeling (donovan and rossiter in peter and olson, 2000:251) independent variable a. fashion involvement (x1) conceptual definition: fashioninvolvement is level of interest in fashion product (for example: clothes) (park, 2006:436) operational definition: is level of consumer‟s interest in fashion products at popies girl shop. indicators: having one fashion product or more with up to date model; fashion is an important thing that supports activities; and more interested in shopping at fashion store than in di department store to meet need for fashion (park, 2006:439) b. trend of hedonic consumption (x2) conceptual definition: hedonic consumption is shopping behavior that is related to feeling, imagination, and other aspects related to feeling of someone experience against a product (utami, 2010:49) operational definition: is shopping behavior related to feeling, imagination, and pleasure felt by consumer when shopping at popies girl shop indicators: shopping is an experience; spending time to shop with family or friends is a pleasing thing; shopping gives positive feeling; shopping makes someone know the latet fashion trend; shopping is special pleasure when buying something for other people; and looking for cheap price or discount when shopping (utami, 2010:49-50) c. visual merchandising conceptual definition:visual merchandisingis a basic element in creating shopping atmosphere in the store since such store performancesas view, voice, touching, taste, and smell are components that can create representative form of merchandise in the store (dale m. lewison& m. wayne delozier, 1989:647) journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 37-47 40 operational definition: visual merchandising is an element that creates shopping atmosphere at popies girl shop, such as appearance, display, color selection, the music played, lighting, perfume, and assortment of the products. indicators: display is attractive product layout that enables consumer to find easily; color is selection, combination, and display of color that creates identity and attraction for consumers; lighting is appropriate beam of light against a product so that it is clealy seen and can create buying interest of consumers; hear is relaxing music that gives exciting shopping experience to consumers; smell is aroma that makes shopping comfortable; assortment is variety of product that offers more options to consumers to choose. data analysis technique 1. measurement of research variables variable measurement is done using scale measure. measurement scale is used as the reference standard to determine the length of the interval in order to produce quantitative data. with this measurement scale, the value of variables is measured by certain instrument that can be stated in numbers, so that it will be more accurate, efficient, and communicative (sugiyono, 2003:127). this research used likert scale i.e. scale to measure individual‟s response to social object, there are five levels of likert scale (suliyanto, 2011:10): a. sa: strongly agree with score = 5 b. a : agree with score = 4 c. n : neutral with score = 3 d. d: disagree with score = 2 e. sd : strongly disagree with score = 1 2. structural equational modelling (sem) model and hypothesis are tested using sem analysis through the following steps (ferdinand in suliyanto (2011:273-275)): 1) development of a model based theory what should be done is perform a set of scientific exploration through theoretical review in order to obtain theoretical justification on the model developed. 2) development of path diagram. theoretical model that has been built will be presented in a path diagram to be estimated. 3) conversion of path diagram into equation. in this step, model is presented in path diagram which then is converted into series. 4) assess identification problem. identification problem is basically an ignorance problem from the model developed in order to generate unique estimation. 5) evaluation of goodness-of-fitcriteria. suitability of model is evaluated through review of various goodness-of-fit criteria with three kinds of evaluation, they are: a) evaluation of sem assumption normality, using critical value criteris ±2.58 at significance level 0,01. if zvalue is higher than the critical value, it can be assumed that the data are not normally distributed. outliers, is an observation or data that has unique characteristic which seems to be very much different from observations, either for single variable or combination of variables. using critical value criteria ±3, data will be stated outlierif it has z-score value >3 or <-3 multicollinearity and singularity, what to observe is the determinant of covariant matrix of its sample. lower determinant or close to zero indicates the existence of multicollinearity and singularity, thus the data can be used for research. b) compliance test and statistic test here are several compliance indexes and cut-off valueused to test whether a model is accepted or rejected: x2 chi-square statistic, the lower the value of x2, the better the model and is accepted based on the probability with cut-off value at p > 0,05 or p > 0,010. rmsea (the root mean square error of approximation), is an index used to compensate chi-squarein big sample. the lower value of rmsea or equal to 0,08 is an index in order for the model to be accepted based on degree of freedom. gfi (goodness of fit index), is nonstatistical measure that has interval from 0 to 1. higher value in this index shows better fit. agfi (adjusted goodness of fit index), is a criterion that estimates weighted proportion from variant in a covariant matrix of samples. the recommended level is when agfi is equal to or higher than 0,90. journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 37-47 41 cmin/df (the minimum sample discrepancy function devided with degree of freedom), is a statistic of chi-square x2 divided its degree of freedomso that it is called x2 relative. value of x2 relative < 2,0 or 3,0 is an indication of acceptable fitbetween model and data tli (tucker lewis index), is incremental index that compares a tested model against a baseline model, where the recommended value as a reference of the acceptance of a model is ≥0,95 and close to 1 value shows a very good fit. cfi (comparative fit index), interval between 0-1, where the closer to 1 indicates the highest fit level. table 1: goodness of fit index and cut of value goodness of fit index cut of value -chi square expected to be lower significance probability ≥ 0,05 rmsea ≤ 0,08 gfi ≥ 0,90 agfi ≥ 0,90 cmin/df ≤ 2,00 tli ≥ 0,95 cfi ≥ 0,95 c) validity test in sem (ghozali, 2008:134) consists of: convergent validity items or indicators of a latent construct should harus convergeor sharethe highest variant proportion and it is called convergent validity. therefore, standardized loading estimateshould be equal to 0,50 or more. discriminant validity discriminant validitymeasures how far a construct is really different from other constructs. it is done by comparing the square root of ave ( ) and the correlation value among constructs. d) reliability test and variance extract reliability test, where the reliability value that is accepted is ≥ 0.70.reliability test in sem can be obtained from the following formula construct reliability = ( ) ( ) where: standard loading is obtained from standardized loadingfor each indicator that is obtained from the result of computer calculation. ε.j is measurement error of each indicator variance extract, where the value that can be accepted is ≥0,50. here is the formula: variance extract = where: standar loadingis obtained from standardized loading for each indicator that can be obtained from the result of computer calculation. ε.j is measurement errorof each indicators (1std.loading) 2 6) interpretation and modification of model. the final step is, interpret model and modify models for those that do not meet the testing requirement. cut-offat 2,58 can be used to assess the significance of residual generated by model. residual value that is higher than or equal to 2.58 is interpreted to be statistically significant at 5%. 7) criteria of hypothesis testing hypothesis is accepted if cr (critical ratio): cr ≥ t table hypothesis is rejected if cr (critical ratio) : cr < t table journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 37-47 42 results and discussion validity test convergent validity summary of convergent validity test result variable indicator loading factor cut of value kf x1 0,720 0,500 x2 0,747 0,500 x3 0,525 0,500 kkh x4 0,756 0,500 x5 0,763 0,500 x6 0,653 0,500 x7 0,668 0,500 x8 0,802 0,500 x9 0,601 0,500 vm x10 0,673 0,500 x11 0,849 0,500 x12 0,662 0,500 x13 0,777 0,500 x14 0,846 0,500 x15 0,596 0,500 x16 0,591 0,500 ep x17 0,804 0,500 x18 0,699 0,500 x19 0,585 0,500 ptt x20 0,545 0,500 x21 0,506 0,500 x22 0,748 0,500 the value of loading factorfor the indicator of fashion involvement, trend of hedonic consumption, visual merchandising, positive emotion,and impulse buying was each higher than 0,500. thus, all indicators of each variable were proven to meet convergent validity so it could be used as data collection instrument of this research. discriminant validity table 2. value of square root of ave variable ave kf 0,786 0,887 kkh 0,848 0,920 at 0,853 0,924 ep 0,706 0,841 ptt 0,683 0,826 table 3. correlation among constructs and square root of ave construct kf kkh vm ep ptt kf 0,887 kkh 0,213 0,920 vm 0,066 0,335 0,924 ep 0,397 0,250 0,409 0,841 ptt 0,473 0,494 0,462 0,628 0,826 it can be clearly seen from the table that each latent construct has good discriminant validity. it can be seen from the value of square root of ave of each latent construct is higher than the correlation coefficient among its constructs (ghozali, 2008:235) journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 37-47 43 reliability test based on the calculation result of reliability test, the reliability coefficient of fashion involvement, trend of hedonic consumption, visual merchandising, positive emotion,and impulse buying was each higher than 0,700.thus, the construct of each variable in this research was reliable and could be used as data collection instrument. variance extract test the result of variance extract test shows the value of variance extractfor the indicators of fashion involvement, trend of hedonic consumption, visual merchandising, positive emotion,and impulse buyingwas higher than 0,500. thus, construct of each variable in this research was proper to test causal relationship in this research. hypothesis testing the significance of causal relationship in sem analysis was tested through null hypothesis which showed that the coefficient of causal relationship among variables was equal to zero using t test commonly used in regression.here is the result summary of causal relationship among variables: table 4. standarized regression weight for hypothesis testing variable c.r. t table ep <-kkh 0,954 1,660 ep <-vm 3,748 1,660 ep <-kf 3,275 1,660 ptt <-ep 2,773 1,660 the value of critical ratio (cr) for the effect of fashion involvement variable on positive emotion was 3,275 higher than that of t table (1,660). thus, it can be concluded that the first hypothesis which states that fashion involvement had positive effect on positive emotion, was accepted. the value of critical ratio (cr) for the effect of trend of hedonic consumption variable on positive emotion was 0,954 smaller than that of t table (1,660). thus, it can be concluded that the second hypothesis which states that trend of hedonic consumption had positive effect on positive emotion, was rejected. the value of critical ratio (cr) for the effect of visual merchandising variable on positive emotion was 3,748 higher than that of t table (1,660). thus, it can be concluded that the third hypothesis which states that visual merchandising had positive effect on positive emotion, was accepted. the value of critical ratio (cr) for the effect of positive emotion variable on impulse buying was 2,773 higher than that of t table (1,660). thus, it can be concluded that the fourth hypothesis which states that positive emotion had positive effect on impulse buying, was accepted. for hypothesis testing with intervening variable, this research used sobel test; a method of significance testing of mediation effect. the result is as follows: table 5. the result of sobel test for hypothesis testing of mediation effect variable tsobel ttable ptt  ep  kf 2,068 1,984 ptt  ep  kkh 0,850 1,984 ptt  ep  vm 2,187 1,984 the result of sobeltest for fashion involvement variable on impulse buying through positive emotion was 2,068 higher than that of ttable (1,984). thus, it can be concluded that the fifth hypothesis which states that positive emotion mediated the effect of fashion involvement on impulse buying, was accepted. trend of hedonic consumption variable on impulse buying through positive emotion was 0,850 smaller than that of t table (1,984). thus, it can be concluded that the sixth hypothesis which states that positive emotion mediated the effect of trend of hedonic consumption on impulse buying, was rejected. visual merchandising variable on impulse buying through positive emotion was journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 37-47 44 2,187 higher than that of t table (1,984). thus, it can be concluded that the seventh hypothesis which states that positive emotion mediated the effect of visual merchandising on impulse buying, was accepted. discussion the direct effect of fashion involvement on positive emotion based on the hypothesis testing, it has been proven that there was positive effect fashion involvement variable. it means the higher the fashion involvement felt by consumers, the more increase the positive emotion felt by consumers when shopping. from the result of survey based on respondents‟ perception conducted using three indicators, it can be assumed that most of respondents feel that fashionis an important thing that supports their activities. therefore, respondents are very happy and enthusiastic when they are shopping at popies girl shopbecause the products offered at popies girl shopare up to date. wearing up to datefashion products can increase respondents‟ self-confidence during their activities. this result is relevant with the previous research conducted by setiadi and warmika (2015) which states that fashioninvolvement had positive and significant effect on positive emotion. the result is also consistent with the research conducted by pattipeilohy et al., (2013) which also proves that fashion involvement has positive effect on positive emotion. the direct effect of trend of hedonic consumption on positive emotion the result of hypothesis testing shows that trend of hedonic consumption does have any effect on positive emotion. the causal effect shows that the higher the level of trend of hedonic consumption is not always followed by the increase in positive emotion. from the result of survey by research that has been done using six indicators, respondents think that shopping is an experience and when they are shopping they tend to look for products with cheap price or discount. however, it is not the reason why they feel happy, passionate, or have dominating feeling when shopping at popies girl shop. trend of hedonic consumption does not have positive effect on positive emotion because not every person who has high hedonic personality will increase their positive emotion. the respondents of this researchare female students with limited pocket money especially for those who come from other towns. thus, when they are shopping with high hedonic consumption personality, it is not always followed by pleasure, passionate nor dominating feeling at popies girl shop. when they see the products they like and compare the price and the money they have, they might not buy and it makes them sad. thus, it does not always increase consumers‟ positive feeling. it may happen because some products have higher price than the other products sold by popies girl shop such as dress, high heels,and bags. this result is not relevant with the research conducted by dewi et al., (2015) that trend of hedonic consumption has positive effect on positive emotion. this research does not support the previous research conducted by pattipeilohy et.al (2013) which suggests that trend of hedonic consumption has positive effect on positive emotion. direct effect of visual merchandising on positive emotion based on the result of hypothesis testing, visual merchandisinghas positive effect on positive emotion. the causal relationship shows that the stronger the effect of visual merchandising, the stronger the positive emotion of consumers. visual merchandisingfelt by consumers at popies girl shopmakes them excited and gives pleasure shopping experience so that it increases consumer‟s positive emotion. visual merchandising variable has the biggest effect on consumers‟ positive emotion seen from the result of hypothesis testing. from the result of survey by research that was done using six indicators to evaluate visual merchandising based on respondents‟ perception, it can be assumed that most of respondents think that visual merchandising at popies girl shopis good because the products are set very well so that it makes them easy to choose. this result is consistent with the research conducted by sari et al (2015). direct effect of positive emotion on impulse buying based on the result of hypothesis testing, positive emotion has positive effect on impulse buying. the stronger the positive emotion is, the bigger the possibility of impulse buying done by consumers will be. journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 37-47 45 this result supports mowen and minor (2002) who states that impulse buying can be explained as a choice made at that moment due to strong positive feeling against a product. from the result of survey by research conducted using three indicators, it can be known that most of respondents will buy products that attract them, without considering the consequence due to being motivated by their passionate feeling when shopping at popies girl shop. it is supported by donovan and rossiter (in peter and olson, 2000:251) which states that enthusiasm caused by shop can lengthen the stay in the shop and willingness to interact with the shopkeepers that will influence consumers to shop more and more beyond what is previously planned. this result is consistent with the study conducted by naentiana and setiawan (2014) that positive emotion has significant positive effect on impulse buying and the research conducted by amiri et.al (2012) which states that establishing consumer‟s positive emotion against products or shop environment can increase consumers‟ motivation to perform impulse buying. indirect effect of fashion involvement on impulse buying through positive emotion the result of hypothesis testing shows that positive emotion mediates the effect of fashion involvement on impulse buying. the causal relationship shows that the higher the fashion involvement encourage by strong positive emotion will make consumers perform impulse buying “positive emotion mediates” means that there is indirect relationship between fashion involvement and impulse buying. the higher the fashion involvement will increase positive emotion, and consumers with positive emotion when shopping at popies girl shopfinally will trigger impulse buying. based on the survey, respondents believe and are confident that fashion is an important thing that supports their activities. by wearing up to datefashion product, they will feel more confident in their activities. they are also more interested in shopping at such fashion store as popies girl shopthat at department store to meet their fashion need. through positive emotion variable, many respondents fairly agree that they feel happy and enthusiastic shopping at popies girl shopsince the products offered by popies girl shopare up to date. it encourages respondents to perform buying even though they do not plan and consider the consequence. this result is consistent with the findings of the research conducted by beatty et al., (in park et al., 2006) that positive emotion during shopping can be a significant mediator in encouraging impulse buying. this result is also consistent with the research conducted by amiri et al., (2012) that the higher the fashion involvement of consumers will show more positive emotion during shopping and can increase involvement in impulsive buying. indirect effect of trend of hedonic consumption on impulse buying through positive emotion the result of hypothesis testing shows that positive emotion does not mediate the effect of trend of hedonic consumption on impulse buying. the causal relationship shows that in impulse buying performed by consumers with high trend of hedonic consumption is not always caused by strong positive emotion. it means that trend of hedonic consumption has direct effect on impulse buying. this result is supported by dewi et.al (2015) who suggests that trend of hedonic consumption has positive direct effect on impulse buying. such behaviors of hedonic consumption as willingness to satisfy curiosity, willingness to obtain new experience, and looking for cheap product or discount can influence their behavior to perform impulse buying. according to the result of survey, respondents think that shopping is an experience because they can compare prices and products sold in other shops. they also admit that when they are shopping, they will look for product with cheap price or discount especially for those who come from other towns. it can make consumers perform buying for products they want, even though it is not previously planned. this result is supported by the research by kusuma (2014) which states that trend for hedonic consumption has positive effect on impulse buying. the higher the trend of hedonic consumption felt by consumers, the higher the impulse buying will be. it is because when someone shops hedonically, s/he will not consider usefulness of the products, so that the possibility of impulse buying will get higher journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 37-47 46 indirect effect of visual merchandising on impulse buying through positive emotion the result of hypothesis testing shows that positive emotion mediates the relationship between visual merchandising on impulse buying. the causal relationship shows that the stronger the visual merchandising supported by positive emotion will make consumers perform impulse buying at popies girl shop. „positive emotion is mediating‟ means that there is indirect relationship between visual merchandising and impulse buying. the increase in impulse buying is caused by a good visual merchandising through positive emotion. respondents who feel a good visual merchandising will have increasing positive emotion. consumers with high positive emotion when shopping at popies girl shop will finally trigger impulse buying. this result is consistent with the research conducted by amiri et al., (2012) which suggests that the establishment of consumers‟ positive emotion on products or shop environment can increase consumers‟ motivation to perform impulse buying.this result is also consistent with the research by donovan and rossiter (in peter dan olson, 2000) that environment stimulus affects the status of consumer‟s emotion, where in turn it will affect consumer‟s behavior. in addition, this result also supports the previous research performed by kurniawan and kunto (2012) that visual merchandising has positive effect on consumer‟s positive emotion, where visual merchandising affects buyer‟s emotion which finally influences buying. conclusion based on the result of the research, it can be concluded that: 1. fashion involvement has positive effect on positive emotion, it means that the higher the fashion involvement, the higher the consumer‟s positive emotion during shopping. 2. trend of hedonic consumption does not have effect on positive emotion. it means that the higher the trend of hedonic consumption is not always followed by the higher the positive emotion. 3. visual merchandising has positive effect on positive emotion, meaning that the higher the effect of popiesgirl shop, the higher the positive emotion felt by consumers during shopping. 4. positive emotion has positive effect on impulse buying. it means that the higher the positive emotion felt by consumers during shopping will increase impulse buying at popies girl shop. 5. positive emotion mediates the effect of fashion involvement on impulse buying. it means that there is indirect correlation between fashion involvement and impulse buying through positive emotion. 6. positive emotion mediates the effect of trend of hedonic consumption on impulse buying. it means that trend of hedonic consumption has direct effect on impulse buying. the higher the trend of hedonic consumption felt by consumers does not affect the positive emotion level of consumers to perform impulse buying at popies girl shop. 7. positive emotion mediate the effect of visual merchandising on impulse buying. it means that there is indirect relationship between visual merchandising and impulse buying through positive emotion. implication managerial implication management of popies girl shop should encourage impulse buying and consumer‟s positive emotion by selling up to date fashion product. to establish trend of consumer‟s hedonic consumption in order to make them perform impulse buying is by using such marketing strategies as giving discount and buy 1 get 1 free. management should increase visual merchandising by giving attention to room design, layout, information boards, lighting, coloring, music, and aroma of popies girl shop in order to give comfort to consumers that can encourage positive emotion and stimulate impulse buying at popies girl shop. limitations meanwhile, the limitatons of this research is in data collection such as respondents answer dishonestly and carelessly. limited time and power were problems for the researcher to perform deeper study. journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 37-47 47 references amiri, farhad, jalal jasour, mohsein shirpour, and tohid alizadeh. 2012. evaluation of effective fashionism involvement factors on impulse buying of costumers and condition of interrelation between these factor. journal of 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kualitatif dan r&d. jakarta:alfabeta utami, christina whidya. 2010. manajemen ritel :strategi dan implementasi operasional bisnis ritel modern di indonesia.jakarta : salemba empat yanthi, devi dan edwin japarianto. 2014. analisis pengaruh hedonic shopping tendency dan visual merchandising terhadap impulse buying dengan positive emotion sebagai variabel intervening pada area ladies matahari department store tunjungan plaza surabaya. jurnal manajemen pemasaran petra vol. 2, no. 2, (2014). journal of accounting, management, and economics vol. 19, no. 1, 2017, pp. 11-18 published by faculty of economics and business universitas jenderal soedirman published online on january 9, 2017 in http://jos.unsoed.ac.id/index.php/jame  correspondence to : 1faculty of economics and business, universitas gajah mada, indonesia. e-mail: audita@ugm.ac.id 2department of marketing, university of strathclyde, united kingdom. e-mail: m.marck@strath.ac.uk received: november 8, 2016 revised: november 22, 2016 accepted: december 19, 2016 introduction the issue of country-of-origin image is a very important issue because it has a strong indirect impact on purchase intention (diamantopoulus, schlegelmilch, and palihawadana, 2011). although several researchers have previously investigated the issue of country-of-origin and brands (aiello et al., 2009; kotler and gertner, 2002; chen et al., 2011), adding the issue of luxury brands to the topic has remained unique. this is due to the uniqueness and exclusivity of luxury brands which will tend to engage in relatively different consumer behavior compared to other ordinary brands (chevalier, and mazzalovo, 2008, p.2). the issue in which today’s globalization plays a “dual role as driver of luxury” (kapferer and bastien, 2009, p.13), has added to the interest to this research. the intrigue in issues related to brands and their country-of-origin rise due to the fact that several luxury high-end brands have expanded their production factory to less developed countries/areas, in order to fulfill an increase in demand and to better satisfy their shareholders with greater equity. european luxury fashion brands such as prada are currently manufacturing 20% of their range of the men and women fashion goods in china (passariello, 2011). the practice of expanding their factory locations provoked debates among several fashion and marketing experts (armoudom, 2012 ; carreon, 2011). some customers might argue that having the luxury brand products produced outside the home country of the luxury brand will fade the pride and exclusiveness of the brand itself (binlot, 2011). with the explanation given, combining the concept of coo and luxury brands to analyze the cross-cultural consumers’ perception makes it a very interesting subject to research. the aim of this research is to investigate how the perception of the country-of-origin cross cultural consumers perceptions of country-oforigin and luxury brands handini audita1, michael marck2 1faculty of economics and business, universitas gadjah mada, indonesia 2department of marketing, university of strathclyde, united kingdom abstract understanding consumer behavior in the luxury industry is important. the extant literature suggests that cross-cultural conditions reflect the existence of differences in behavior and perceptions of consumers. this research investigated the way consumers in different countries and cultures perceive the country-of-origin concept in the luxury sector and also their perception about luxury brands itself. the purpose of this research was to investigate how the perception of the country-of-origin concept and the concept of luxury brands differs across nations. the value of this research is to provide empirical evidence describing how the different perceptions of country-of-origin issues and luxury brands contribute in the development of the fashion luxury brands industry. this quantitative research utilized online questionnaires attended by 190 respondents distributed from june 2012 to july 2012. questionnaires were distributed online to different nation groups. the findings of the research indicate two interesting outcomes. first, for the case of fashion luxury brands, there were no significant differences of perceptions among the nation group perceptions regarding the country-of-origin concept. second, there were significant differences of perceptions among the different nation group perceptions regarding to the luxury brand concept. keywords luxury brand, brand, fashion marketing, country-of-origin, cross culture, international consumers, consumer behavior journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 11-18 12 concept and the concept of luxury brands differs across nations. the first objective of this research is to determine the crosscultural perspective of the country-of-origin (coo) concept. the second objective of this research is to determine the cross-cultural perception on the luxury brand concept. cross-nation samples were formulated in order to better understand the cross-cultural phenomenon of the issue on coo and luxury brands. some networks of luxury consumers from 9 different nation groups (indonesia, thailand, united kingdom, united states of america, india, china, italy, france, and germany) were generated in order to address the aim of the research. this research paper defines the final quantitative results and the exploration of the analysis of the research. literature review and hypotheses country-of-origin (coo) and its linkage to brands globalization today has led businesses to operate without limits and geographical borders which have resulted in the issue of country-of-origin (coo) to become a forefront issue for many researchers. “the coo concept evolved into a more complex notion as global production operations became increasingly diverse, and new market opportunities continue to emerge in both developed and developing countries” (aiello et al, 2009, p.324). business efficiencies and effectiveness today have made the luxury producers expand their production activities. for example, one brand might design their product in france, ordered the materials in italy, then manufacture the product counterparts in china, and in the final end the product is resembled again in paris. in the past, the perception of coo was simply more likely to be perceived as the ‘made-in country’ in discussions regarding the brands (nebenzahl, jaffe, and lampert, 1997). the ‘made-in country’ is also defined as the ‘country-of-manufacture’ (com) (samiee, 1994). thus, in the early stages, the country in which a certain product is completely assembled was perceived as the country of origin of the product. the ‘country-of-design’ (cod), which is associated to the location where the product is designed and developed, also plays an important role in building the coo image (kotler and gertner, 2002). however, the topic of coo becomes even more complex taking into account the fact that, to enhance creativity and productivity, many businesses will have different combinations of com and cod in producing a product which sits under the umbrella of their well-known brand. because of that matter, the concept of ‘country-of-brand’ rises, which refers to the specific country in which a certain brand is highly attached to: usually it will refer to the central headquarters location of the brand (aiello et al, 2009). “the coo is commonly considered the country that consumers typically associate with a product or brand, regardless of where it was manufactured” (aiello et al, 2009, p.325). as coo becomes one of the subjects of great interest to many researchers, several researchers had been able to identify the interaction of brand with the coo. nebenzahl, jaffe, and lampert (1997) stress the fact that the country image associated with the coo will play a major role in building the perception of the product and brand. this assumes that when consumers have no previous experience with a certain brand, consumers will view the product or brand based on the country image attached to the particular product or brand. because of that matter, it is interesting to investigate how the luxury consumers perceived about the coo concept in order to confirm the significance to the brand image. diamantopoulus, schlegelmilch, and palihawadana (2011) noted that the coo image of a brand delivers an indirect impact towards the purchase intention of the consumers, the brand image playing a role as the mediator. this indicates the importance of the coo perception of the consumers in building the brand image. the luxury brands the definition of luxury has remained debatable, resulting in no single definitive meaning to clarify the parameters of luxury (atwal and williams, 2009). luxury brands themselves are very democratic, meaning that defining luxury depended highly on the perception of the potential clients or consumers (kapferer and bastien, 2009). however, several researchers have suggested numerous alternative opinions to capture the parameters of luxury brands. chevalier and mazzalovo (2008, p.vii) mentioned that “luxury brand is a selective and exclusive one; that is, it is almost the only brand in its product category, giving it the desirable attributes of being scarce, journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 11-18 13 sophisticated and in good taste”. luxury brand should have performed the elements of artistic contents, craftsmanship, and being able to be valued equally in an international perspective (chevalier and mazzalovo, 2008, p.xi). beverland (2004, p.446) also mention that “luxury brands are complex combination of dedication to product quality, strong set of values, tacit understanding of marketing, a focus on detail, and strategic emergence”. the consumption of luxury brands is considered as a conspicuous consumption, in which different groups of consumers have different perceptions in regards to luxury brands (phau and prendergast, 2000). extant literature indicates the country-of-origin of the luxury brand contributed positively in the purchase decision process, although there is an indication that there is a difference in the perception of the importance level across different nations (godey et al, 2012). due to the contribution of the country-of-origin in the purchase decision process, it indicates the needs to conduct further investigation on the cross-cultural perception of this issue. building luxury brands studies have indicated that in order to achieve success for luxury brands, there is a need to create a “quality craftsmanship, heritage and history” (roberts, 2012). french-based brands like hermes, which has been known as the “world’s most elegant business” have highly maintained the quality of their products by giving attention to every single detail in their manufacturing process and their “uncompromising quality”, that are represented in the brand credo “que l’utile soit beau” or “that the useful be beautiful” (derdak and pederson, 1998). the product is produced in such sophisticated ways in order to produce quality and exclusivity. as an example, authentic hermes bags all have an authentic code, which ensures the consumers are aware of the quality that the product delivers (yusuf and dewi, 2011, p.147). this action reflects that the trusted value of the brand is highly important in delivering the luxury brand. some brands associates their luxury brand to an influential individual that represents sophistication, elegance, and power (richard, 1995, p.750). in some radical cases, there is a need of the luxury brands to reposition itself in the luxury market after years of establishment by associating their brands to a specific influential individual (moore and birtwistle, 2005). this leads to the opinion that brand identity is a very important element in the luxury business, which will define the strength of the luxury brands (chevalier and mazzalovo, 2008, p.81). in countries like china, which is currently home to one of the largest groups of luxury consumers, people will buy the latest item of luxury fashion to represent to the rest of society that they are wealthy and should be respected accordingly (carreon, 2011). this creates an impression that the consumption of the luxury brands would represent the enhancement of “quality of life” for individuals. one might agree that the reason some groups of consumers treat luxury goods as a means to express their quality of life is due to the strong historical attachment of desired identity stemming from the brand associations. this has led to developing the aim of this paper to investigate how consumers perceive luxury methods this research is a quantitative research using a descriptive analysis. descriptive research will generally provide answers to the “who, what, where, how, and when” of the research (wilson, 2012, p.35). in this manner, descriptive research is the best way to describe the current trend of the luxury industry and how the consumers perceive coo and luxury brands. this also means that the information that will be defined by the descriptive research will be likely to be a “precursor to explanation” (saunders et al, 2012, pp.171). online questionnaires were utilized in order to generate responses from respondents from many parts of the world which is an efficient data collection mechanism when the researcher knows exactly what is required and how to measure the variables of interest (sekaran and bougie, 2010, p.197). open ended and closed ended questions were developed in order to answer the research objectives of this research. journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 11-18 14 table 1 respondents characteristics nation groups male female total indonesia 38 38 76 thailand 4 13 17 united kingdom 14 19 33 united state of america 4 9 13 india 2 8 10 china 4 16 20 italy 5 4 9 france 2 7 9 germany 1 2 3 total 74 116 190 online questionnaires were distributed from june 2012 to july 2012. the population of interest in this research was males and females ranging in age from 18 to 65, who have experience of buying and using luxury brands products. through a judgmental sampling method, 190 valid respondents from 9 different nations participated in the research. in the table 1 is determine the characteristics of the sample participated in this research. results and discussion objective 1: the perception of the country-of-origin (coo) for objective 1, consumers were asked to define if country-of-manufacture (com) or country-of-design (cod) were the most appealing factors in perceiving the country-oforigin (coo) of the luxury brands. one-way anova analysis was performed to indicate the potential differences of preference between each national group. table 2 the level of importance of cod and com among nations no. nation groups importance of cod mean score* importance of com mean score* 1. indonesia 3.28 3.47 2. thailand 3.76 3.47 3. united kingdom 3.39 3.27 4. united states of america 3.46 4.00 5. india 3.80 3.60 6. china 3.85 3.30 7. italy 4.33 3.89 8. france 3.44 3.78 9. germany 3.67 4.00 international perspective 3.66 3.64 *minimum score = 1, maximum score = 5 table 2 represents the comparison of the level of importance between country-ofdesign (cod) and country-of-manufacture (com) with the different nationality of respondents. looking at the average result, in an international perspective, the cod were perceived slightly more important than com. however, comparing the result among the nation groups, for cod, there is no major statistical difference between groups (f=1.397 with p=0.200). the same result occurs for the com where there is no large statistical difference between groups (f=1.129 with p=0.346). this indicates that between each nation, there are not many differences in the way the respondents perceived the level of importance of the cod and com in purchasing the luxury brand. the result shown in this research can be an indication of the aggressiveness of globalization in which borders of nations becomes to fade. consumers in different nation groups are able to access similar information which resulted in the similarity of priority perceptions when choosing a luxury brand. the next analysis to be conducted is to evaluate how strongly the element of cod and com represents the country-of-origin (coo) of a luxury brand. the analysis is done by conducting a crosstab analysis to compare how much these two elements (cod and com) represent the coo of a luxury brand among different national groups. the chi-square test for independence indicated no significant association between the national groups with cod and com, with p=0.179 (p>0.05) and phi=0.245. this means journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 11-18 15 that the proportion of each national group that considers cod to be a representative of coo is not significantly different from the proportion of other national groups that also consider a link to exist between the two. table 3 the coo concept according to respondents (in per cent) no. nation groups cod com coo 1. indonesia 59.2 40.8 100 2. thailand 64.7 35.3 100 3. united kingdom 72.7 27.3 100 4. united states of america (usa) 61.5 38.5 100 5. india 80.0 20.0 100 6. china 45 55 100 7. italy 100 0 100 8. france 55.5 44.5 100 9. germany 66.7 33.3 100 total average score 67.25 32.75 100 table 3 shows that the majority of respondents value cod to represent coo more compared to the com. this indicate that most people within all national groups chose cod to be better in representing the coo of a luxury brand, as 63.7% of the respondents perceived cod to be better at representing coo. meanwhile only 36.3% of the respondents value com to be better at representing coo. unique results were shown in the usa and china nation groups. the usa nation group, for instance, when they were asked to evaluate the level of importance of cod and com in evaluating the luxury brands, the usa nation group considered the location where the product is being physically manufactured (com) to be more important than the location where the product is being designed (cod). however, when the usa nation group were asked for their opinion of the coo concept, it is surprising that the majority of the usa respondents (61.5%) perceived coo more as the location where the product is being designed (cod) compared to the location where the product is being manufactured (com). the difference of results in the level of importance regarding the perception of the coo creates the assumption that these elements cannot be viewed in the same way. consumers might perceive the manufacturing location (com) to be highly important in evaluating their likeness to a certain luxury brand. however, this does not always mean that the same condition applies when they perceive the coo of the brand. for example, when an american consumer purchases a prada bag, they will make sure that the prada bag was not manufactured in the location that they preferred less. however, when he or she is being offered a prada bag, the individual will consider italy to be the country-of-origin of the brand due to the awareness that the brand has being designed in milan, italy. objective 2: consumers perception of luxury brand purchase decision in order to investigate the reason which best describes the process that stimulates the purchase decision of a luxury brand, using a likert scale, the respondents were asked to evaluate statements which define different purchase decision reasons. using descriptive analysis, the mean score of each element determines the average reason for the purchase decision made by the luxury brand consumers. using a one-way anova, the differences of the average reason for the purchase decision made by each national group were determined. table 4 determines the differences of mean scores among nation groups allocated to every purchase decision element. journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 11-18 16 table 4 cross culture ratings on luxury brand purchase decision elements no. nation groups trusted value unique represent personality relates to other desired individuals 1. indonesia 4.22 4.06 3.66 3.31 2. thailand 3.70 4.35 3.76 3.70 3. uk 3.88 3.84 3.36 2.97 4. usa 4.77 4.61 4.23 3.54 5. india 4.10 4.50 4.20 3.50 6. china 4.80 3.85 3.80 3.35 7. italy 4.00 3.45 3.33 3.22 8. france 3.44 3.56 3.22 3.11 9. germany 4.33 3.33 3.00 2.33 the one-way anova analysis showed that there was a statistically significant difference at the p<0.05 level in the reason for buying luxury products where consumers perceived the trusted value of the brand to be important (f (8, 181)= 2.89, p = 0.005). this also applies to other reasons such as the ability to provide a unique identity (f (8, 181)= 2.47, p = 0.14) and the ability to represent the consumer’s personality (f (8, 181)= 2.06, p = 0.42). this indicates that there is a slight difference in the opinion given to these three reasons by the nine national groups participating in this research. for the element of “buying luxury brands because of the trusted value given”, for example, the chinese group of respondents’ response to this statement was extremely strong, to the extent that they almost completely agreed (mean score = 4.80). on the other hand, the french groups of respondents responded to the statement in an almost neutral manner, in which sense they are close to neither agreeing nor disagreeing with the reason (mean score = 3.44). aside from the significant differences in the mean score of the three purchasing decision reasons among the nine nation groups, the reason of “buying luxury brands because of the relatedness of the brand to an individual that the consumer desires” appears to result in no significant differences among the national groups (f (8, 181)= 1.058, p = 0.395). this means that there is a similarity on the perception among the national groups towards this particular purchasing decision reason. this makes sense if we refer to table 4. the numbers in table 4 reveal that every national group participating in this research had rated the reason of “purchasing luxury product because of the ability of the brand to relate to an individual that respondents desire” to be the least agreed reason for purchase. table 5 top 6 most common key words of luxury brands no. keywords amount 1. quality 50 2. expensive 38 3. association to a brand 34 4. lifestyle/identity 28 5. famous designer/design 22 6 prestige 21 journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 11-18 17 after observing the reasons of purchasing luxury brands, respondents were asked to define their definition of luxury using an openended question. table 5 shows the top six most mentioned keywords by the respondents that define their perception of what a luxury brand is. from the results of this research, it is revealed that within an international perspective, a luxury brand is a brand designed magnificently by great designers, which defines quality offered at a high price, which is able to create a special identity status or lifestyle. interestingly, there were 34 responses that directly associate luxury to a specific brand such as louis vuitton, prada, or hermes. this creates the assumption that some consumers perceive a brand to be luxury, simply because other consumers generally believe the brand is luxury. conclusion this research has been conducted by collecting online questionnaire responses from 190 luxury consumers of nine different national groups (indonesia, united kingdom, thailand, china, united states of america, india, italy, france and germany). it was observed from the analysis that there were no significant differences of perceptions among the nation groups’ perceptions regarding the country-of-origin concept. this shows that the respondents perception in the concept of country-of-origin reflect the influence of globalization in the market. the increase in globalization, such as the lack of restrictions on national borders (individuals are able to move from one part of the world to another more easily) and the borderless nature of information technology (through the existence of the internet and social media), seem to have a large influence in creating similar knowledge and perceptions throughout the global luxury market. in contrary, there were significant differences of perceptions among the different nation groups’ perceptions regarding to the luxury brand concept. this indicates that there should be an adaptation of marketing approaches given to different national groups because of the differences in their attitudes. in defining the luxury brands, consumers described a brand that is designed magnificently by great designers, which defines quality, which is offered at a high price, which is able to create a special identity status or lifestyle. this supports the definition of luxury brands proposed by previous researchers where the elements of quality, exclusivity, craftsmanship and others formulate the luxury brand definitions. the results of this research deliver contributions to several aspects. first, this research delivers contributions to the academic literature, having the luxury brand definition being defined. second, the crosscultural phenomenon performed in this research could be guidelines for strategic actions performed by luxury brand firms in conducting internationalization of their luxury brands. this research is also beneficial for new entrants to luxury brands market. a significant limit of this research is the distribution of the respondents, meaning the sample of 190 respondents was from nine different countries that are not distributed equally among the nation groups. thus, for future research, using a cluster analysis with a larger sample size will be able to formulate equally distributed numbers of respondents in each nation groups, and thus cross-cultural studies could be better conducted on a similar research. also, having the crosscultural perception of luxury brand being defined, it is interesting to investigate factors that influences the differences in the way consumers perceived luxury brands. references aiello, g., donvito, r., godey, b., pederzoli, d., wiedmann, k. p., hennigs, n., siebels, a., chan, p., tsuchiya, j., rabino, s., ivanovna, s. i., weitz, b., oh, h., and singh, r., 2009. an international perspective on luxury brand and countryof-origin effect. journal of brand management, 16 (5/6), pp.323-337. armoudom, p. luxury goods: made in china. at kearney, [online] may. available at: http://www.atkearney.com/en_gb/paper//asset_publisher/dvxv4hz2h8bs/ content/luxury-goods-made-inchina/10192> atwal, g., and williams, a., 2009. luxury brand marketing: the experience is everything. journal of brand management, 16 (5/6), 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sekaran, u., and bougie, r., 2010. research methods for business: a skill building approach. 5th ed. west sussex: john wiley & sons ltd. wilson, a., 2012. marketing research: an integrated approach. 3rd ed. essex: pearson education limited. yusuf, f., and dewi, a., 2011. hermes temptation. jakarta: gramedia pustaka. journal of accounting management and economics vol. 20, no. 1, 2018, pp. 48-55 published by faculty of economics and business, universitas jenderal soedirman published online on january, 8 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 onlineissn: 2620-8482  correspondence to : fatihalitaawesome@gmail.com received: december 02, 2017 revised: december 17, 2017 accepted: january 03, 2018 introduction shopping activity is part of the way to fulfil wants and needs of consumers. in this globalization era, shopping activity is mostly conducted by internet as result of the improvement and innovations in the information technology that successful crate store basic in internet as we called ecommerce. in the whole world, e-commerce applied many companies to sale their product and increased the sale of product easily. in indonesia itself, indonesia as the world’s fourth most populous country is currently the last of asia’s top five e-commerce markets by sales (quartz media, april 2 2014). oftentimes, the expenses of shopping exceed from the plan itself. they cannot control what they should spend and what the unimportant things to buy. for those conditions, people possibly create impulse buying behaviour. consumer sometimes unconsciously conduct a product purchases, it causes from the sudden encouragement condition from impulse buying. impulse buying behaviour is composed of sudden and unplanned purchases (srivastava and joshi, 2014). impulse buying behaviour is prevalent in the market. this is why impulse buying behaviour has become a phenomenon worthy of attention in marketing activities (afjeh and bakhshi-zadeh, 2010). it is essential to identify factors influencing impulse buying behaviour, recognize informed customers who purchase certain products (saeednia and goudarzi, 2014). impulse buying behaviour happened when there are stimuli and factors that encourage of it. factors can be influencing impulse buying have been the subject of many discussions in recent years. the results of previous research show that there are internal and external factors that effective to create the tendency of consumer to buy a product (ling & yazdanifard, 2015). the influence of web quality and sales promotion toward impulse buying behavior with openness personality as moderating variable study on consumer of shopee indonesia online store fatiha rahmalita fitri1 1department of management, faculty of economics and business, jenderal soedirman university, indonesia abstract to meet daily wants and needs, consumer conducted shopping. the development and innovation of technology in this era resulted shopping no longer only done in supermarket, shopping centre, etc. nowadays, shopping also can be done by online via internet. there are so many online shopping website in indonesia, one of them is shopee. shopee entered market in indonesia on may 2015 and started operated on june 2015. the purpose of this research to analysis the component of web quality and sales promotion influenced impulse buying behaviour with openness personality as moderating variable. research methodology used for this research is a case study with survey research method. convenience sampling techniques that come from non probability sampling techniques are used for the selection of sample. the research sample is 130, comes from consumers of shopee around indonesia. method of processing data using sem with amos used to analysis the data. this research implicated for start-up company based in online; because the company could be develop, improved the quality, and create new innovation related to the result of research. the limitation of this research is the result of goodness index of fit in all variables are still in the marginal category. keywords web quality; sales promotion; openness personality; impulse buying behavior journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 48-55 49 the quality of a website can also be an external factor in making impulse buying. the better quality of website will invite many consumers to shop on the website. consumers will have a reaction or response when interacting with a website (parboteeah et al., 2009). the important of web quality can create creativity of company develop website. website should has good quality to attract consumer interest (law and bai, 2008). the company should consider about good quality of website to always attract consumer to visit the website. continuing those, impulse buying will be created. in broader context it is expected that website quality will also has an effect on impulse buying because website quality depends on the presence of these various characteristics (wolfinbarger & gilly, 2003). sales promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase. sales promotion is key ingredient in marketing campaign, consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or great purchase of particular products or services by consumers or the trade (kotler at el., 2013). according to lamb et al. (2009) there are different devices of online sales promotion that companies can use; coupon, refund/rebate, premium, loyalty program, discount, free shipping, point-of-purchase, samples, bonus packs, cross-promotion, contest/sweep takes, and advertising specialties. consumers will be more influenced to create impulse buying when there is sales promotion especially when company offering discount (zinkweg et al., 2008). on other hand, another factor could create impulse buying was internal factors. for internal factor always refer as psychological factors, situational factors, demographic factors and socio-economic factors (tinne, 2010). internal stimuli are related to the different personality related factors which characterises an individual rather than stimuli. internal factors of impulse buying denote the individual’s internal cues and characteristics that make him / her engage in impulse buying (bhakat and bangalore, 2003). personality traits see to its impact on impulse buying behaviour which is measured by using big-five personality dimensions which includes five different dimensions with several sub dimensions; extraversion, agreeableness, conscientiousness, neuroticism, and openness to experience (mccrae & costa’s, 1990). because of each dimensions have to describe one by one, for this research only using one dimension of those five, openness to experience would be the dimension to moderating variable because more suitable for case on impulse buying. openness to experience is one of the domains which are used to describe human personality in the five factor model. openness can be viewed as a global personality trait consisting of a set of specific traits, habits, and tendencies that individual more explore about new things around (costa & mcrae., 1990). bujisic et al., (2015) argued that the specific personality type of the individual moderated variable with the specifically considering definition of different experience dimensions, it is expected that person with a higher level of openness to experience will has higher preference for experiences that require higher levels of immersion. from those factors that can influence impulse buying behaviour, the research will take shopee online store as main focused in impulse buying behaviour. shopee entered indonesia market on may 2015 and started to operate on june 2015. shopee offers various products such as fashion, cosmetic, electronic, until food and beverages. this mobile application offers ease-use for anyone to access the transaction of online shopping. product category that offer is tends to fashion product and cosmetic. purpose: a. to analyze positive influence of web quality on impulse buying behavior. b. to analyze positive influence of sales promotion on impulse buying behavior. c. to analyze moderating influence of openness personality between web quality toward impulse buying behavior. d. to analyze moderating influence of openness personality between sales promotion toward impulse buying behavior. literature review and hypotheses impulse buying behavior impulse buying is a sudden, hedonically complex purchase behavior in which the rapidity of the impulse purchase precludes any thoughtful, deliberate consideration of alternative or future implications (sharma et al., 2010). impulse buying as a situation journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 48-55 50 when consumer has strongly sudden desire to buy product at that time and usually there’s a specific stimuli along the purchase activity (chiu et al., 2016). an impulse buying is an unplanned decision to buy a product or service, made just before a purchase as the result of stimuli force. as defined by consumer buying decision without plan or intention to buy before (piron, 1991). it means that impulse buying behavior will create if there are stimuli that really helpful for storeowners generate more profit from their business not only in offline store but also in online store. according to indicators of previous research, for this variable of impulse buying of this study will be take statements indicators from cho, ching, & luong (2014). a. often buy things spontaneously. b. it is irresistible to buy a seductive product. c. i do not think much when making purchases. d. when something is very attractive, i buy without concerning consequences. e. i often buy things which i did not intend. f. i often end up spending more money than i initially set out to spend. impulse buying contributed to the existing variable model and overall understanding of consumer’s impulse buying response in shopping context. web quality website quality is perceived as an important contributor for systems success (delone and mclean, 2003). quality is total features and product characteristics or services that depend on capability to fulfill and satisfy need of consumer (kotler and keller, 2013). website is a critical component of the rapidly growing phenomenon of e-commerce. according to sorum (2014) quality of website is all aspects relating to information and online services, technical features and design aspects that have to be carried to the consumer during interaction between online and website. quality of website based on the consumer perception showed on the features on the website and gave an eligibility impression from website itself (mona et al., 2013). the quality of website can been as an attribute of a website that usefulness to consumer (gregg and walczak, 2010). website quality as environment factors stimuli consumer to buy impulsively, which means the environment can influence impulse buying decision making of consumer. this research of web quality variable would be take indicators from loiacono et al., (2002) using webqual’s development that can affect consumer to visit and create buying impulsiveness by looking at quality of website. a. ease of use are ease of understanding and intuitive operation b. usefulness are information quality, functional fit-to-task, interactivity, trust, response time c. entertainment are visual appeal, innovativeness, flow d. complementary relationship are online completeness, better than alternative channels, consistent image e. customer service sales promotion sales promotion is short-term incentive to encourage the sale of product or service purchases. it means that sales promotion is a tool to encourage consumer to do purchases of product or services (kotler and keller (2007). according to altsiel (2006) sales promotion is activity where the value of shortterm added to product or service to stimuli consumer. company use sales promotion to attract consumer in order to consume their product or service or persuade consumer to make purchases their product. sales promotion is one of the four aspects of a promotional mix, which itself is incorporated in the core marketing mix; product, price, place, and promotion. sales promotion further identifies as one of the marketing tools that are used in attracting the attention of the customer (bhandari, 2012). so it means that where there’s sales promotion offer then consumer will be more influenced to conduct unplanned purchase or impulse buying. this research tends to use indicators from lamb et al. (2009) for this variable with five indicators to measure; 1) discount 2) free shipping 3) contests 4) coupons 5) refunds and rebates sales promotion tools have had the greatest breakthrough, would benefit from increasing the usage of online sales promotion. according to berter et al.,(2010). sales promotion tools if used in the correct way, consumer sales promotion online create a value for the customers and increase sales and can be the indicator variable that influenced consumer in impulse buying. journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 48-55 51 openness personality personality is the dynamic structure within the person of those psychophysical arrangements that indicate his distinctive adjustments to surroundings. it was way of behavior, thought, and feelings that are depicted in diverse situations (tasneem et al., 2016). according to ajzen (2005) a trait is a temporally stable, cross-situational individual difference. it represents individuals’ characteristics that can be used to distinguish between two individuals. personality trait is defined as a person who performs in consistent behavior and thinking patterns. people who have tendency of impulsive buying are prone to be unreflective, emotional and impulsive (chen, 2011). personality is significantly related with impulsive buying behaviour (sofi and nika, 2017). openness to experience in personality traits is one of the domains which are used to describe human personality in the five factor model. openness involves six facets, or dimensions, ideas (curious), fantasy (imaginative), aesthetics (artistic), actions (wide interests), feelings (excitable), and values (unconventional) (costa & mcrae, 1992). this is related with other variable so personality traits especially openness personality being an important thing related with consumers to create impulsiveness buying. with the indicators of openness to experience are (costa & mcrae, 1992); 1) ideas (curious) 2) fantasy (imaginative) 3) aesthetics (artistic) 4) actions (wide interests) 5) feelings (excitable) 6) values (unconventional) individuals who score high on openness to experience are active imagination (fantasy), aesthetic sensitivity, tend to be unconventional, preference for variety, creative, and intellectual curiosity. they seek experiences and like to explore new ideas. study personality traits by using big-five personality create important contribution affect online impulse buying. the specific personality type (openness) more suitable for online impulse buying behavior will moderate variables toward impulse buying. individual that have high openness to experience would be more explore website in internet easily, would like to know what the new things in internet, interest with the visual appearance that they see, it can create the buying methods type of research is causal quantitative research with survey method using questionnaires for 130 respondents who ever purchased in shopee. the measurement scale used in this study is likert scale type. the answer of each instrument using likert scale with 7 scales have gradations from strongly positive to strongly negative. h1: web quality has positive influence on impulse buying behaviour h2: sales promotion has positive influence on impulse buying behaviour h3: openness has moderating influence between web quality and impulse buying behaviour h4: openness has moderating influence between sales promotion and impulse buying behavior journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 48-55 52 results and discussion research hypotheses are as follows: first hypothesis testing based on the confidence level of 95% (α = 0.05) and degree of freedom (n k) with one tailed test, it known the ttable value is 1.660. from the result of structural equation modeling (sem) analysis, it is obtained the cr value of web quality on impulse buying behavior of 3.224 is greater than value of ttable. thus, ho is rejected and ha is accepted. therefore, first hypothesis which states that web quality has positive influence on impulse buying behavior is accepted. second hypothesis testing sem analysis result shows that the cr value of sales promotion on impulse buying behavior of 3.340 is also greater than ttable value (1.660). thus, ho is rejected and ha is accepted. therefore, second hypothesis which states that sales promotion has positive influence on impulse buying behavior is accepted. third hypothesis testing refers to the result of structural equation modeling analysis, it is obtained the cr value of first interaction (wq*op) on impulse buying behavior of 2.064 is greater than the ttable value (1.660). thus, the ho is rejected and ha is accepted. therefore, third hypothesis which states openness personality has moderating influence between web quality and impulse buying behaviour is accepted. fourth hypothesis testing furthermore, sem analysis result shows that the cr value of second interaction (sp*op) on impulse buying behavior of 2.010 is also greater than the ttable value (1.660). thus, ho is rejected and ha is accepted. therefore, fourth hypothesis which states that openness personality has moderating influence between sales promotion and impulse buying behaviour is accepted. discussion the effect of on web quality on impulse buying behavior result within study proves that web quality has positive influence on impulse buying behaviour. it means that the higher level of web quality, so the higher level of impulse buying behaviour. this result is in line with the opinion by loiacono et al., (2007) who stated that website characteristics represent the many facets of the website quality. a well quality website will increase the likelihood of impulse purchases at the website. empirically, this result is consistent with the study was conducted by magdalena et. al., (2016) who conclude that web quality has journal of accounting management and economics , vol. 20, no. 1, 2018, pp. 48-55 53 positive influence on impulse buying behavior. the effect of sales promotion on impulse buying behavior current study found that sales promotion has positive influence on impulse buying behaviour. this causal relationship means that the better level of sales promotion, so the higher level of impulse buying behaviour. result of this study is in line with the opinion nagadeepa et al., (2015) who suggested sales promotion influences buying decisions of customers and simply exists to have a direct impact on consumer buying behavior. additionally, this result is consistent with the previous study was conducted by pathmini (2015) who found that sales promotion tools have a positive influence on consumer impulse buying behavior especially in price discounts, free sample, buy get one and loyalty programs as most commonly used promotional techniques to attract impulse buying behavior. the moderating role of openness personality on the causal relationship between web quality and impulse buying behavior result of this study shows that openness personality moderate the influence of web quality on impulse buying behavior. it means that the higher level of openness personality is always strengthens the influence of web quality on impulse buying behaviour. result of this study is in line with the previous study finding was conducted by husnain et al., (2016) that openness has the high result on moderating in interaction to impulse buying. the moderating role of openness personality on the causal relationship between sales promotion and impulse buying behavior finally, this study proves that openness personality moderate the influence of sales promotion on impulse buying behavior. it means that the higher level of openness personality is always strengthens the influence of sales promotion on impulse buying behavior. result of current study is also in line with the previous study was conducted by husnain et al., (2016) who conclude that openness has the high result on moderating in interaction to impulse buying limitation there are several limitations of this study, such as all value of goodness of fit index of sem analysis result within study are only accepted in a marginal category, and result of current study may have lack of generalizability to the shopee consumers as the disadvantage of non-probability sampling (convenience sampling method), because of data about number and details of population is difficult to be obtained formally. conclusion 1. web quality has a positive influence on impulse buying behavior. 2. sales promotion has a positive influence on impulse buying behavior. 3. openness personality has moderating influence between web quality and impulse buying behavior. 4. openness personality has moderating influence between sales promotion and impulse buying behaviour implication to increase the consumers’ impulse buying behavior, shopee online store needs to make priority on the marketing policies related to increasing web quality 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(2013), ―antecedents and effect of commitment on the impulse buying by internet‖, journal of internet banking and commerce, 18(1), 1-22. journal of accounting, management, and economics vol. 19, no.1, 2017, pp 19-27 published by faculty of economics and business universitas jenderal soedirman published online on january 9, 2017 in http://jos.unsoed.ac.id/index.php/jame  correspondence to : agung praptapa, faculty of economics and business, universitas jenderal soedirman, indonesia. address: building g feb, kampus unsoed grendeng , purwokerto 53121, indonesia. email: agung.praptapa@unsoed.ac.id received: november 10, 2016 revised: november 24, 2016 accepted: december 15, 2016 introduction there are some typical companies owned by local government in indonesia. typically, local government in indonesia has local government owned companies such as regional bank, rural bank/rural credit firm, hospital, and water supply company. this research focuses on water supply company for several reasons. first, most of local government in indonesia owns this type of company. since political and cultural conditions in indonesia are varied from one local government to other local government, this enhances the uniqueness of the research. second, there is a similar method of performance measurement of water supply company in indonesia. thus, the case being researched is comparable to other water supply companies in indonesia. this will be beneficial to the researchers to do further research in the same type of companies but in wider scope. third, water supply company has very strategic position in business since water is a human basic needs and water supply companies in indonesia have social mission as well as profit generation mission. the company should be managed professionally like public firms in general, but with an addition to obey the regional rules. regional rules differ from one region with the other regions, in accordance with the social and politic conditions of specific region. local government owned companies receive a burden to achieve certain number of profit as a contribution to the regional income but the social mission should be the priority. thus, management control systems and its effect on performance: a case of water supply companies in indonesia agung praptapa1, mohd. azlan b yahya2, norfaiezah binti sawandi3 1department of accounting, faculty of economics and business, universitas jenderal soedirman, indonesia 2)3)school of accountancy, universiti utara malaysia, malaysia abstract this paper discusses how management control systems is used to control performance in local government owned companies in indonesia. performance becomes important and unique in local government owned companies since those companies are not only targeted by profit but they also have responsibilities for social function. this study focuses on performance control in water supply companies as typical local government owned company in indonesia. balance scorecard is chosen as the performance measurement tool in all water supply companies in indonesia. this research applies quantitative research in order to analyze cause effect relationship between variables by using multiple regression analysis. data is collected through survey by using questionnaires. the respondents were the managerial team and employees of local government owned companies in indonesia. the results show that four perspectives of balance scorecard are modified into four types of performance i.e. financial, service, operational, and human resource performance. this performance measurement is used to control people in achieving targeted performance. moreover, this performance measurement becomes an important part of management control systems. this research also discovers that management control systems is effective to influence performance, even when some interventions exist. keywords management control system, performance, balance scorecard, intervention, performance control journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 17-27 20 the water supply company is a unique business. fourth, in some local government there are some indications that local government owned companies are operated with some interventions from the local government officers, political parties, and other parties. this make the research becomes important to be conducted. as the company that have social and profit generation mission, water supply companies should have performance measurement systems that accommodate these two missions. in the past, each water supply companies in indonesia can choose their own method in performance evaluation. since 2007 balance scorecard is adopted by all water supply companies in indonesia as performance measurement systems. all water supply companies have an obligation to report their performance to the national body that assist the development of water supply systems in indonesia. hence, the performance of water supply companies in indonesia is evaluated at least once a year and that evaluation produces a score for each water supply company. based on that score, water supply companies can be categorized as a healthy company, less healthy company, or not healthy company. the performance score of the companies is published publicly and used to evaluate the success level of the management. thus, controlling performance becomes important in a water supply company. management control systems applied in the company generally is used to ensure that the targeted performance can be achieved. management control system is a mechanism and an organizational device to ensure that strategies being planned by the organization are set to achieve the organizational goals. this control could be in the form of formal and informal control (anthony & govindarajan, 2007) and can be in the form of result, action, and personnel control (merchant & van der stede, 2012). this research would use an approach that had been developed by merchant & van der stede (2012) stating that a good controlling should cover three types of control, which is result control, action control, and personnel control. these three control systems complete each other with a variation that is in harmony with the management philosophy (praptapa, 2009). the other uniqueness from a management control system on a local government owned water supply company is on the existence of local government interventions that differs from one regional firm with the other regional firm. interventions would become positive if it supports the achievements of the organizational goals and motivates performance, whereas interventions would become negative if it does not support the achievement of the organization goals and hampering performance. thus, result control, action control, and personnel control depends heavily on the type of interventions happening in that regional firm. in other words, control interventions moderate between the three control elements and the firm achievements. the types and intensity of control interventions differs between one water supply company with the other water supply companies. issues of how the effect of those interventions in the relationship between result control, action control, and personnel control with the firm performance should be further analyzed. this research will oversee and analyzed how the effect of result control, action control, and personnel control towards the firm performance in the condition where the firm is using multiple performance measures with interventions as the moderating variables. it is expected with this research, that regional firms would receive suggested solutions on the issues of the right regional firm management, and thus the presence of the regional firms would help the regional economics and also gives an optimal benefit for the societies. literature review and hypotheses this research could not be separated with the previous similar research that has been conducted by many scholars. research that relates management control system with performance had been conducted at least by hartman and victor (2010), bryant, jones, and widener (2004), ferreira and outley (2009). those researches connect management control system with performance and other aspects like changes, culture, and strategies. in this research some organization behavior theories would be synthesized with theories in accounting, especially those that relates to accounting management. it could be mentioned that this research is a behavioral accounting research. the variables involved in this research is journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 17-27 21 developed from merchant and van der stede (2012), that relates the three elements of control, which is result control, action control, and personnel control with the firm performance. performance would always be connected with strategies that are applied, hence the success of performance achievements highly depends on the accuracy of strategies applied (jänkälä, 2007). process in which managers influences the organization members to implement the strategies are expected to be recognized as management control (anthony and govindarajan, 2007). thus, the firm performance depends on how the control system is applied in the firm (anthony and govindarajan, 2007; merchant and van der stede, 2012). this concept is the base of this research to analyse the relationship between management control systems with the firm performance. merchant and van der stede (2012) purposes the concept of control into three form of control, which is result control, action control, and personnel control. in addition, merchant and van der stede (2012) develop personnel control becoming self-control and control among individuals in the organization which are further mentioned as cultural control. firm performance firm performance is defined differently on the point of view of accounting and other areas, but in general firm performance is the result from firm activities in a certain time period (mackey, mackey, and barney, 2007). firm performance is not limited to financial performance, but also to non-financial performance (anthony and govindarajan, 2007). thus, the importance of performance for firms leads the firm to have a right performance measurement system. kaplan and norton (1992) provide solution for the needs of financial and non-financial performance measures. performance measurement concept that is purposed by kaplan and norton (1992 and 1993) is called balanced scorecard that measures performance in an integrative manner through four perspectives, which is financial perspective, customer perspective, internal business perspective, and also innovation and learning perspective. agostino and arnaboldi (2012) suggest the use of balance scorecard to control performance. result control and firm performance result control is a system of control to ensure that people within the organization will get result as expected (merchant and van der stede, 2012). in result control, it should be clearly defined what type of result is the organization expected on the organization unit or individuals within the organization. for that reason, performance dimensions should be defined clearly. the clearness of performance dimensions would become a direction for the employees to see what is considered to be important by the firm. clear performance definition would eliminate the confusions of the employees because it has been clear what performance that should be performed by neither an organization unit nor individuals inside the organization. besides performance dimensions, it is also needed a clear performance evaluation, thus every individual has the same point of view of whether the performance of an individual is satisfying enough or not. the research conducted by bryant, jones, and widener (2004) shows that a clear performance evaluation would persuade individuals in the organization to work better. after the performance dimensions and performance measurements are defined, the next role of management control system is to define a target. target must be specific in accordance to the performance dimensions performance. performance target would influence the employees’ behavior in two alternatives. first, performance target would stimulate actions and increase the motivations because performance target guide directions for the employees and organization unit about what they should perform and prioritized in a certain firm. second, performance target make it possible for employees to understand by nature the performance that they have performed. they could differentiate performance that they receive with the performance that has been targeted. reward and punishments is another important element on result control. reward is a positive reinforcement to encourage employees to have an achievement, and punishment is a negative reinforcement that is expected to persuade employees to behave in a certain manner that will avoid them from not being an achiever (siegel and marconi, 1989). clear definitions about performance dimensions, right performance journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 17-27 22 measurements, right target definitions, and the right application of rewards and punishments would encourage employees and organization unit to perform. the effectiveness of result control will influence performance.then, the hypothesis is formulated as follow: h1: effectiveness of result control influence positively toward performance. action control and firm performance action control is a form of control to ensure that employees perform actions that are advantageous for the firm and avoid actions that is disadvantageous for the firm. this control has preventive characteristic, which is to protect unexpected things not to be performed and known in the end of the process. fixing actions is done as soon as possible when unexpected actions are happened. action control could be done at least by doing four actions, which is behavioral constraints, pre-action reviews, action accountability, and redundancy (merchant and van der stede, 2012). giving behavioral constraints is a negative form of action control. this behavioral constraint is expected that it would be impossible, or not easy for employees to perform actions that should not be performed. this constraint could be conducted physically nor administratively, through a clear authority system. pre-action reviews are a form of control through actions before an individual or an organization unit conducts a certain action. this review could be in the form of formal or informal actions. formal action could be in the form of defining action plan, verbally as well as written, to those who have an authority to make decisions. action accountability is one of a control system to ensure that employees is evaluated based on the performance being performed. to conduct controlling through action accountability, actions that have to be conducted and actions that should not be conducted must be clearly stated. in addition, this action should be communicated to all the layers of employees, and afterwards conducts observation or control about the actions conducted by employees. good actions should be given rewards and bad actions should be given punishments. redundancy is to position people or equipment more than the minimal needs, thus it could receive certainty that when there are employees that cannot conduct their task available or there are dysfunction equipment, there would be a substitute of employees or equipment so that the firm operational would not be disturb. this form of control should always protect the firm efficiency, thus it is unexpected to perform extravagance. the explanations above show that if actions conducted by employees are controlled in a good manner, thus the performance achievement could be expected. the effectiveness of action control influences performance and the hypothesis is formulated as follow: h2: the effectiveness of action control influence performance. personnel control and firmperformance personnel control is a form of control that makes it possible for an individual to control themselves. this is built from a perspective that basically human have the tendency to control themselves and motivate themselves. personnel control is conducted to ensure that employees understand what is expected by the firm. this could be conducted if the firm has a quality of human resource with an expected quality. personnel control is conducted since the recruitment process, job placement, training for employees, and also a good job design (merchant and van der stede, 2012). to ensure that firm performance is achieved, thus employee needs, level of expertise, and expected personality should be planned carefully. employee recruitment process and employee placement have to be opened with a clear and right system. right training should be prepared for current employees. training has an objective to increase the possibility that employees could give a performance as expected and also to prepare themselves to changes in organization. the training program does not have to be in the form of formal training, but it could also be in the form of informal training. to motivate employees to perform as expected, employees had to have a certainty of the future in the firm. for that matter, thus job design and career path design for employees is needed to be formulated correctly and open. good and open employee recruitment system, accurate and open employee placement, enough and qualified training, and also job design and good career design would persuade employees to perform. the effectiveness of personnel control influences performance and the hypothesis is as follow: journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 17-27 23 h3: the effectiveness of personnel control influences performance. cultural control and firm performance cultural control is designed to persuade employees to control one another to give directions and group pressure towards individual that acts not in harmony with the norms and values applied in the firm. cultural control could be conducted through the availability of agreements and understanding of the codes of conduct, through codes of ethics or through motto or values that is committed in the firm that should be obeyed and believed by every employee. another form of cultural control is through group-based rewards, intraorganizational transfers, physical and social arrangements, and tone at the top (merchant and van der stede, 2012). agreements and understandings of what to perform through code of ethics, firm motto, firm vision and mission, or firm philosophy has an objective to make the employees feel that they are connected to each other in performing the firm mission. agreements and understanding that is clear, simple, and motivating, will persuade every employee to unite and conduct their performance according to what it should be to achieve the company mission. group-based rewards will persuade members of the organization to persuade peers in their group to conduct the task together that are best for their group and also for the firm. research conducted by kruse (1992) shows that group-based rewards influence positively towards motivation and performance. job rotation has an objective to spread positive culture to other employees. research conducted by praptapa & rokhayati (2012) shows that job rotation will increase the feel of belongingness for employees and will increase the firm performance as a whole. besides that, job rotation will also decrease the possibility of cheating conducted by employees (kpmg llp, 1999). room management, term management, clothing rules and management in socializing is also an effective way in conducting cultural control. rooms that make the employees possible to work productively would persuade the firm performance. rooms that are designed in such way thus between one employee with the others could learn and control each other will also persuade performance. firm culture highly depends on how the leaders behave. leaders have to show good examples because a leader is usually used as a model by the employees. research shows that firm success is usually starts from the top and fraud that occurs in a firm also starts from the top (jenkins, 2002, in merchant and van der stede, 2012). h4: the effectiveness of cultural control influences performance. interventions and firm performance interventions happens when there are certain parties available outside the organization take parts in intervening the management control system that has been developed by the firm. interventions could be in the form of encouraging actions and could also be in the form of discouraging actions. interventions are included in one of the research variables in this research because in practice, local government owned companies often face intervention. interventions could persuade the result control in the connection of achieving performance of firms. target created that is challenging but achievable that are designed by the decision makers would persuade employees and firms to achieve the expected target. but it is also possible of control interventions that might disturb the firm to achieve the performance being expected. in the research language, this means that control intervention moderates the relationship between result control and firm performance (sekaran, 2003). in action control, interventions could also happen when there are parties outside the organization being involved in the mechanism of action control. from that intervention, there are possibilities occur where employees could conduct actions that are better and persuade performance, even though there are possibilities where employees becoming unsure with the action they have conduct, thus it would impact negatively to the achievement of performance. interventions often occur in personnel control and cultural control. interventions in employee recruitment and employee placements could persuade performance but will also the other way around. this factor also occurs in cultural control. then, the hypothesis formulated is: journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 17-27 24 h5: intervention moderates the relationship between management control systems with performance. methods this research is a quantitative research that analyses cause effect relationship between variables by using multiple regression analysis. data is collected through survey by using questionnaires. the respondents were managerial team of water supply companies in indonesia. the number of water supply companies in indonesia in 2013 data was 350 companies and to gather this data, 200 questionnaires were distributed. returned questionnaires were 147 so the response rate is 73,5%. there were 6 questionnaires that cannot be processed because the respondents did not answer the questions completely. the data processed are based on 141 questionnaires. results and discussion water supply companies in indonesia commit to adopt balance scorecard as a tool to measure and to control performance. the four perspectives of balance scorecard are modified into four aspects of performance, i.e. financial, services, operation, and human resource performance. table 1 describes the adoption of balance scorecard in water supply companies in indonesia. table 1: adoption of balance scorecard in water supply company four perspectives of balance scorecard four aspects of performance performance measured financial perspective financial performance return on equity (roe) operation ratio cash ratio collection effectiveness solvency ratio customer perspective services performance service coverage customer growth complaint responded water quality domestic water consumption internal business perspective operation performance production efficiency non-revenue water (water loss) services operation hours/day water pressure water meter replacement learning and innovation perspective human resources performance number of employees/1000 customers training and education of employees ratio cost for training and education/total employees costs the modified balance scorecard is use by all local government owned water supply companies in indonesia. this performance measurement systems is applied nationally and all water supply company is obligated to send performance audit report to the national body that assist the development of water supply systems in indonesia called badan pendukung pengembangan sistem penyediaan air minum (bppspam). every year bppspam produces a performance evaluation report. this report is a compilation of performance report of all water supply companies in indonesia that generally are audited by a national body called development and finance controller board or in indonesian language is called badan pengawasan keuangan dan pembangunan (bpkp), which is a state controller agency that one of its functions is to conduct an audit, including performance audit. in this performance measure, each element of performance is scored from 1 to 5 where 1 is the worst and 5 is the best. performance elements are weighted so the 1 to 5 scores are multiplied by the weight to get weighted score. the total weighted score is used to categorise the company into 3 level of company healthiness, i.e. healthy company if the total weighted score is more than 2,8, less healthy if the total weighted score is more than 2.2 to 2.8, and unhealthy is the total weighted score is less or equal to 2.2. the performance of water supply companies in indonesia is presented in table 2. journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 17-27 25 table 2: performance of water supply companies in indonesia 2009 to 2013 year / category 2009 2010 2011 2012 2013 σ % σ % σ % σ % σ % healthy 103 31 142 41 144 41 171 52 176 50 less healthy 115 34 129 38 105 38 101 31 104 30 not healthy 119 35 70 21 86 21 56 17 70 20 total 337 100 341 100 335 100 328 100 350 100 source: bppspam, 2014 since the purpose of this research is to explore how balance scorecard is used in performance measurement system, respondents were asked whether the existing system, which is based on balance scorecard, satisfy them or not. respondents were also asked whether the performance they make is as expected or not. the results show that 74% of respondents were satisfied with the existing performance measurement system. the rest of respondents were satisfied with some notes such as the need of individual performance measurement, more details indicators, and integration of balance scorecard with other measurements. to know how the company and people in the company control their performance, the respondents were asked about the effectiveness of the management control systems in their company. the descriptive statistic shows that respondent agree that the performance they achieved is as their expectation (score 3.2 of 4). the respondents were also agree that they have good result control (score 3 of 4), good action control (score 3 of 4), good personnel control (score 3.3 of 4), and good cultural control (score 3.2 of 4). respondents were also asked whether they got intervention from external parties in doing their job to achieve their performance. they were asked to score the level of intervention, which range from 0 for no intervention to 4 for strong intervention. respondents agree that intervention exist in their company with score 3 out of 4. intervention can be positive intervention and negative intervention. to know the effect of management control systems to performance, multiple regression analysis is used. table 3 shows the result of multiple regression analysis. table 3: output of multiple regression analysis description t sign constant 8.674 .000 result control 2.343 .021 action control .480 .632 personnel control 4.298 .000 cultural control 5.262 .000 table 3 shows that all variables except action control have probability value less than alpha .05. it means that result control, personnel control, and cultural control effect positively to performance. action control does not affect performance. it can be because action control in the company is more technical day to-day works that does not affect performance directly. the next analysis is to know how intervention affects the relationship between management control systems and performance.table 4 shows the output of spss for moderating effect of intervention by using moderated regression analysis. journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp. 17-27 26 table 4: output of moderating effect of intervention description coefficient t sign constant 24.731 5.661 .000 result control -.181 -.688 .492 action control .121 .369 .713 personnel control 2.043 3.081 .003 cultural control -.851 -4.677 .000 intervention .012 .818 .415 moderating1 (result performance) -.008 -.432 .666 moderating2 (action – performance) -.103 -2.699 .008 moderating3 (personnel – performance) .119 5.277 .000 moderating4 (cultural – performance) -.789 -3.109 .002 the result in table 4 shows that intervention has moderation effect only to action control, personnel control and cultural control since their probability value is less than 0.05. intervention does not moderate the result control. it means that when intervention exists, result control will be best used in the company because it is not influenced by intervention. conclusion in the local government owned water supply companies the four perspectives of balance scorecard are modified into four types of performance i.e. financial, service, operational, and human resource performance. this performance measurement system is suitable to be applied 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(2003). research methods for business. fourth edition. john wiley & sons. siegel, gary and h.r. marconi.(1989). behavioral accounting. south-western publishing, cincinnati. correspondence to meutiakaruniadewi.unsoed@gmail.com received: may, 2019 accepted: june, 2019 published: june, 2019 jurnal akuntansi, manajemen dan ekonomi vol. 21, no. 1, 2019, pp. 42-49 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction idea to connect the concept of emotion and morality has been largely studied since two decades ago. however, notion about the relationship of emotional intelligence and morality has never been popular in organizational behaviour domain, even though those variables has been separately discussed in a huge amount of textbooks. that fact implies certain organizational behaviour areas that are still interesting to be connected in a research. kohlberg’s theory of moral development have added a great contribution in the work ethics domain. though his theory does not mention emotion in its morality concept, a number of researchers has proven that emotion has a significant role in moral judgment. one of the researhers is green, et al. (2001) who used fmri (functional magnetic resonance imaging) to investigate human brain. they found that emotional areas inside volunteers’ brains became active when they faced certain moral dilemma cases. likewise, eisenberg (2000) dan pizzaro dan salovey (2002) stated that there are particular emotions which are able to affect one’s morality (e.g. anger, shame, gulty and empathy). those emotions may stimulate someone to conduct moral behaviors (e.g. aggression, admiting and mending mistakes, protecting, and giving help). moral emotion refers to emotions that may trigger moral behaviors (behaviors which are allied with moral values). haidt (2003) divided moral emotion into three categories, which are the other-condemning family (contempt, anger, and disgust), the self-conscious family (shame, embarrassment, and guilt), the other-suffering family (compassion), and the other-praising family (gratitude and elevation). this idea has clearly related the concept of morality and emotion in the field of behavoral science. the affective even theory (weiss & cropanzano, 1996), explains that emotions, aroused by emotional events, can shape behaviour whether good or bad. in more specific statement, robbins dan judge (2013) explained that negative emotions (e.g. envy, anger and hatred) might lead to deviant behaviour. relationship between emotional condition and morality has been well-defined. thus, the question: “is people ability in recognizing, managing and expressing emotion (emotional intelligence) related to their morality?” appears more appealing to be discussed, due to lack of research about it. however, an ongoing debate on the dark side of emotional intelligence has been sounded since many years ago. on one perspective, emotional intelligence is considered good, because it enables a person to understand his own and other feelings and express empathy (salovey & mayer, 1989). pizarro dan salovey (2002) asserted that emotion is an important aspect in moral development and judgment; in the other word, emotional intelligence can facilitate someone to be a moral person. a how ethical are emotionally intelligence people? meutia karunia dewi1 , novita puspasari2 , kiky srirejeki3 1,2,3management department, faculty of economics and business, universitas jenderal soedirman, indonesia abstract emotional intelligence has become an interesting discussion in organizational behavior field since it was introduced in 1989. a lot of researches have proven that this type of ability is important in shaping someone’s attitudes and behaviors. nevertheless, only few studies have inquired the effect of emotional intelligence on how good or bad people’s attitudes and behavior. thus, this research tried to find out the connection between emotional intelligence and morality. the participants of this research are 149 management and accounting program students of economics and business faculty in jenderal soedirman university. more explanation about our result and implications are followed at the end of this article. keywords emotional intelligence, morality, moral reasoning, machiavellianism jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 42-49 research by athota, o’cornor dan jackson (2009) has proven that emotional intelligence influence moral reasoning through personality variable. on the opposite viewpoint, grant (2014) argue that emotionally intelligence people are able to manipulate others’ feeling. similarly, kilduff, chiaburu, dan menges (2010) believe that high-emotional intelligence persons are capable of pretending and manipulating emotions in implementing their strategy for selfish purposes. regarding to the reseach background above, this research was intended to investigate the correlation between emotional intelligence and morality. we used machiavellianism and moral reasoning as proxies of morality to grasp the relationship. 149 business students are involved as participants of this organizational behavior resaerch. we consider classrooms as “micro” organizations because they consist of multiple individual, have structure, and work toward their learning goals. morality moral reasoning this research refers to kolberg’s moral development theory which is inspired by piaget’s conception of moral reasoning in 1932. kolberg (1977) defined moral reasoning as judgement to determine whether something is right or wrong. he devided human’s moral development into three levels, which are pre-conventional, conventional and post-conventional. preconvetional level comprises two stages. first, the punishment-and-obedience orientation (stage 1), where people in this stage tend to consider physical or material consequences in making moral judgment (e.g. a student does not cheat because he wants to avoid penalty of doing so from the faculty). second, the instrumental-relativist orientation (stage 2), where an action is considered right if it can be utilized for achieving someones’s needs and goals (e.g. a student cheat to get an xbox for a good mark from his father) at conventional level, conformity and loyalty to family, group or nation expectation is highly-valued. this level consists of two stages. first, the interpersonal concordance orientation (stage 3), where good behaviors are the ones which satisfy others (e.g. someone does not cheat to be considered as a good student). second, law-and-order orientation (stage 4), where right behaviors is consistent with fixed rules and laws (e.g. a student does not cheat because the rules said so) people with postconventional moral reasoning tend not to relate their moral judgement to rules, law, authority, and others’ expectation. this level of moral reasoning has two stages. first, the social-contract orientation (stage 5), where an action is believed as a good deed if it is congruent with standards which are constructed by the society (e.g. a student cheats to make sure no one’s right is violated). second, universalethical-principle orientation (stage 6), where people in this stage link his decisions about right or wrong to moral principles which are rational, consistent and universal (e.g. a student does not cheat because the behavior does not meet his moral principles). morality should be manifested into behaviour, unfortunately, research that connect morality and behaviour have never been resulting consistent conclutions. a number of researches found a relationship between moral reasoning and ethical behaviors cohn, bucolo, rebellon, & van gundy, 2010) and citizenship behavior (ryan, 2001). meanwhile, other research showed more complex result because the relasionship seems unlikely to be significant without being mediated (west, ravenscroft, & shrader, 2004) and moderated (leming, 1978) by other variables, such as threat and supervision. machiavellianism in their writing, jones dan paulhus (2009) explained that the word “machiavellianism” is derived from nicollo machiavelli’s name. he was a politic advisor of medici dynasty in florence, italy. in 1513, he released his book entitled “the prince” about how to achieve and maintain political power. the principles that he explained in the book encompass manipulation tactics, for instance, ingratiating and deceiving. eventhough this concept has been introduced since hundred years ago, the phenomenon remains existing in modern society. therefore, christie et al. (1970) developed a measurement of machiavellians’ characteristics and define them as persons who view and manipulate others for their own interest. daft (2008) considered that principles held by machiavellians are the opposite of ethical principles. that statement is in line with christie’s description of machiavellians’ characteristics. first, machiavellians view others as objects that jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 42-49 can be manipulated for their own advantages. thus, they tend not to involve emotion in interpersonal relationship. second, machiavellians override morality. they use techniques that may disregard values which are respected by the society, such as lying and cheating. a number of research have proven the relationship between machiavellianism and attitude toward cheating (elias, 2015; bloodgood, tumley, & mudrack, 2010); and between machiavellianism and unethical behavior (hegarty & sims, 1978). therefore, in this research machiavellianism is regarded as the proxy of morality. emotional intelligence in their article, salovey dan mayer (1990) defined emotional intelligence (ei) as an ability to monitor self and others’ emotions, to distinguish them and to use the emotional information as a guidance in thinking and behaving. on the other word, ei is an ability to accurately and efficiently use emotional information, including the capability of recognizing, assessing, managing and using the information to resolve various problems in life. goleman (2001) developed ei dimensions (self-awareness, self-management, social awareness, and relationship management) which he claimed as requirements to be success at work. bar-on (2002) devided ei into 5 parts (intrapersonal ability, interpersonal ability, stress management, adaptability, and general mood). meanwhile, schutte et al. (1998) and wong & law (2002) established ei measurements grounded from the instrument that had been constructed by salovey & meyer (1990), which consists of 5 aspects: appraisal and expression of emotions in self, appraisal of others’ emotions, regulation of emotions in self, regulation of emotions in others, utilization of emotions. appraisal and expression of emotion ability in accurately assessing emotions helps us to be able to determine the right emotional expression. two components of this dimension are explained below. self. emotionally intelligent individuals can respon and express their own feeling appropriately. it is because they are capable of assessing their feeling accurately. on the other words, people who understand their own emotions tend to be better in responding and expressing emotions if they are compared to others who do not have such ability. this component seems parallel with intrapersonal ability aspect of emotional intelligence developed by bar-on (2002). other. an ability in recognizing others emotional reactions and empathetic response to those reactions are a component of ei. the ability facilitate someone to accurately assess others emotional reactions and decide the right behavioural response. persons with this ability are usually viewed as warm and decent individual. otherwise, people who are unable to express appropriate respons of others emotional reactions use to be considered impolite and rude. regulation of emotion this ability enables someone to strengthen and adapt his mood appropriately. emotionally intelligent people are capable of managing emotions in two perspectives: in self. emotionally intelligence persons tend to be able to maintain positive moods and avoid the negative ones. for instance, when someone experience bad mood, he relates his bad moment to his prior pleasant experiences, or uses informations about others’ triumphs, or tries to be grateful. nevertheless, they are also able to enhace and express negative moods in an appropriate way in certain situations. for instance, someone uses mood-regulation to show empathy and help others (altruism behaviours). in other. emotional intelligence contains capacity to regulate and change other’s affective reactions; for example, an orator who are able to stimulate emotional reaction of his audience and a job applicant who realise that punctuality and apparel may create positive impression. however, the ability to regulate others’ emotion is also regarded as the darkside of emotional intelligence. it is claimed that this ability enables people (e.g. hitler) to influence others by manipulating their emotions for their own interests (grant, 2014). utilization of emotion. everyone has various techniques in utilising their emotions to resolve life problems. it is important to remember that moods and emotions may influence humans’ strategies of problem solving. first, emotional change is helpful in making flexible plans for the future. people who experience positive moods tend to perceive that positive events or outcomes will occure and become reluctant to anticipate negative possibilities, and vice versa. mood change allow human to take various possible jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 42-49 events or outcomes into account. second, positif emotions may generate a good memory organization, thus, humans’ cognitive system can be integrated well. this advantage is beneficial when we strive to dig creative ideas. third, emotions enable human to concentrate and make priority. certain emotions assist us to redirect our attention from mixed up feelings and thoughts, and to emphazise significant matters. hipothesis emotional intelligence and morality the concept of moral emotions makes us realize that there are particular emotions (e.g. anger, guity, compassion and shame) which may trigger humans to conduct moral behaviour (haidt, 2003). those emotions contribute to the manifestation of believed moral standard into behaviors (tangney, stuewig, & mashek, 2007). related to moral emotions, someone’s capability to empathize is a part of appraisal and expression of emotions ability, which is encompassed by emotional intelligence (salovey & mayer, 1989). besides, emotionally intelligence persons is also able to handle their feeling; hence they can muffle negative emotions (mauss, cook, & gross, 2007), such as anger and hostility, and forbear from conducting behaviors related to them, such as aggression. accordingly, those abilities signify the relationship between emotional intelligence and morality. in fact, most of related research proved that moral emotions affect moral behavior better than moral reasoning (haidt, 1995). at a glance, cognitive process seems unrelated to emotions, but nevertheless, the significant roles of emotions in the process can not be denied. salovey and mayer (1989) stated that the ability of recognizing, managing and utilizing emotions, which are comprised in emotional intelligence, support humans’ thinking process in problem solving. we can learn from a well-known research of damasio et al. (1994) about a person, named pineas gage, a railway project leader who suffered brain injury that made him loosing his emotional ability. in general, his cognitive ability was not disturbed. he was capable of solving mathematical cases as he used to be. nonetheless, his friends and relatives asserted that he had changed to be a hotheaded and apathetic person who was really terrible in making decision. therfore, hypothesis of this research was built as follow: h1: emotional intelligence is related to moral reasoning. h2: emotional intelligence is related to machiavellianism. research methods respondents in this research are 149 students of accounting and management in universitas jenderal soedirman, indonesia. 72 students have completed their business ethics class, while the rest of them have never take the class. data are collected using questionnaires distributed into 4 classrooms. in examining the relationship between emotional intelligence and morality (moral reasoning and machivellianism), we used correlation analysis, instead of regression method. it is because variables in this research do not imply causal relationship. in other words, one variable can not be counted as a predictor of other variables. measurements three instruments used in this research are as follow: wong-law emotional intelligence scale (wleis) students’ emotional intelligence is measured by 16-items scale in wleis which was developed by wong and law (2002). the scale has four aspects, ei. self-emotion appraisal (sea), uses of emotion (uoe), regulation of emotion (roe), and others’ emotion appraisal (oea). those aspects’ reliability was examined and results of coefficient alpha are 0.79, 0.85, 0.88 and 0.91, respectively. furthermore, this instrument has 7-point likert-type scale from 1 (totally disagree) up to 7 (totally agree). defining issues test 2.0 (dit-2) independent variable in this research is individuals’ morality which is represented by moral reasoning and machiavellianism. moral reasoning was measured using dit-2 developed by rest (1979). this measurement is grounded from kolberg’s moral development theory. the instrument contains five case scenarios of ethical dilemmas. each scenario is followed by 12 statements which embody kohlberg’s moral development stage 2 – 6. after rating the statements, respondents were asked to rank four most important statement in making moral decision on each case. we employed n2 index in dit-2 which is derived from 5 items of questions. this is the newest index in the test and is claimed as a better index than p score because it is jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 42-49 proven to have higher construct validity (bebeau & thoma, 2003). this index take the items of p score (represents stage 2 and 3) and pi (represents stage 5 and 6) into account. besides, center for the study of ethical development also used ranking and rating data in calculating the index, while other indexes (pi, maintaining norms, and p score) only use rating data. coefficient alpha, obtained from reliability test of its 5 items, was 0.60. if we compare with other indexes, the highest coefficient alpha belongs to this index (pi = 0.43, maintaining norms = 0.19, p score = 0.57). apparently, the reliability of moral development instrument in this research is rather low. that reality is consistent with a research by simishu (2004) on brazilian respondents which coefficient alpha was 0.34. he rasionalized that the issue might be caused by respondents’ ability in understanding the stories, intructions and statements on the distributed questionnaires. eventhough they had been translated into portuguese, the respondents possibly found a problem in interpreting the expressions used in the questionnaires. tavakol dan dennick (2011) stated that alpha coefficient might be underestimated as a concequence of low inter-relatedness, which is related to poor internal concistency, and too small number of questions. furthermore, they also explained that the inter-relatedness problem can be detected through correlation analysis between items and total scores. corellation analysis results in table 1 shows that item scores are significantly correlated to total scores of each index. it indicates that the low alpha coefficient may be caused by issues other than poor internal consistency. mach-4 this research used the instrument developed by christie et al. (1970) to measure machiavellianism, named mach-4. questions in this instrument consist of 20 items classified into three domains, ei. nine questions about tactics, three questions about morality, and nine questions about views. this human characteristic was measured using 7 points likerttype scale (1=totally disagree, 7= totally agree). alpha coefficient from conducted reliability test was 0.68. table 1. items and total score corellation item personal interest main. norms post conv n2 item 1 0,655** 0,340** 0,623** 0,648** item 2 0,511** 0,530** 0,429** 0,578** item 3 0,316** 0,485** 0,679** 0,654** item 4 0,545** 0,566** 0,576** 0,559** item 5 0,653** 0,496** 0,684** 0,662** results and discussion corellation analysis results in table 2 indicates that emotional intelligence is not significantly correlated to moral reasoning (r = -0,110, spss p score = 0,182). therefore, we can conclude that high emotional intelligent people do not always have high level of morality, and vice versa. thus, our first hypothesis is rejected. however, correlation analysis result of machiavellianism and emotional intelligence presented in table 1 shows a significant negative relationship (r = -0,267, spss p score = 0,001). the fact indicates that someone who has high emotional intelligence tends to have low machiavellianism, and vice versa. this result supports our second hypothesis. table 2. emotional intelligence and morality corellations no proxies of morallity correlation coef 1 n2 score (moral reasoning) -0,110 2 machiavellianism -0,267** conclusion a result of this research points out that students’ emotional intelligence does not significantly relate to their moral reasoning. the result of statistical test indicates that high emotional intelligence people do not always be in the high stage of moral development (morally mature). goleman (2014) explained that emotional intelligence is an important aspect of human social life, yet it is not the only way out to be a good person. consistently, pizarro dan salovey (2002) stated that emotional intelligence is not one remedy for all kinds of moral disease, there are various abilities that are required to be a complete individual. emotional intelligence was founded has a significant inverse relationship with machiavellianism. it means that people who own high emotional intelligence tend to be far from machiavellianism. the result confirms a number of research (al aiin, carre, hauwel, baudouin, & richard, 2013; ali, amorim, & jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 42-49 premuzic, 2009; wai & tiliopoulos, 2012; loftus & glenwick, 2001) which found empathic deficit among machiavellians, whereas empathy is a substansial part of emotional intelligence. machiavelians have the heart to manipulate and exploit others for their interest, eventhough they possibly pretend to be sympathetic. the evidence of negative relationship between emotional intelligence and machiavellianism is in line with some previous research (austin, farrelly, black, & moore, 2007; barlow, qualter, & stylianou, 2010; petrides, vernon, schermer, & vaselka, 2011). aparently, these consistent foundings disprove the idea about the darkside of emotional intelligence. although people with high emotional intelligence have ability to regulate others’ emotion, they are far from insensitivity. it is because empathy is a quality which is closely attached to emotional intelligence. references arfaoui, f., ayadi, s. d., ghram, r., & bouchekoua, a. 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(2000). measuring the impact of a business ethics course and community service experience on students' values and opinions. teaching business ethics, 4(4), 341-358. weiss, h. m., & cropanzano, r. (1996). affective event theory: a theoretical discussion of the structure, causes and consequences of affective experience at work. research in organizational behavior, 18, 1-74. welton, r. e., lagrone, r. m., & davis, j. r. (1994). promoting the moral development of accounting graduate students: an jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 42-49 instructional design and assessment. accounting education, 3(1), 35-50. west, t., ravenscroft, s., & shrader, c. (2004). cheating and moral judgment in the college classroom: a natural experiment. journal of business ethics, 52(2), 173-183. correspondence to hadmiatun05@gmail.com received: may, 2019 accepted: june, 2019 published: june, 2019 jurnal akuntansi, manajemen dan ekonomi vol. 21, no. 2, 2019, pp. 26-33 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the teacher is one of the main factors in the education process. the definition of the teacher in law no. 14 of 2005 concerning teachers and lecturers is professional educators with the main task of educating, directing, training, evaluating, and evaluating students in early childhood education in formal education, primary education, and secondary education. samino (2011 in ahmadi, 2014) said that in order to advance and develop organizations, especially school/education organizations the element of human resources is the main element. apart from the resource elements in educational institutions, both schools and colleges, teachers, or lecturers are the main elements. in the process of education, teacher performance is very influential in the teaching and learning process itself. educational organizations, in this case, the scope of the school need to manage and maintain all aspects contained in it so that the school can continue to grow and experience a better direction (kusumadiari, 2017). improving the quality of human resources in educational organizations must be considered. one of the things that must be considered in the aspect of human resources itself is the commitment of the employee itself. the commitment needed by a teacher can be an essential factor in the success of the teaching and learning process. commitment is the essential thing in a job, where it can affect the performance of an employee itself. commitments also need to be instilled in each employee's vision, and mission can be achieved. commitment is a form of dedication or obligation that binds a person, to others, specific actions, or certain things. professional commitment can be defined as a commitment that refers to the type of work commitment, where the main focus is the importance of a career in one's life. (morrow, 1993). this also means the extent to which one's work performance influences selfesteem (lodal & kejner, 1965). a teacher is required to have professionalism principles which are contained in the republic of indonesia law chapter iii article 7 of 2005 where a teacher must commit to improving the quality of education, faith, piety, and noble character. according to somech & bogler (2002) asserts that in working as a teacher, teachers are required to have a high commitment beyond their desire to have money/material, and can require the adoption of specific values related to the job. carson and bedein (1994) also say that teachers the impact of work-family conflict, perceived organizational support, work engagement on professional commitment hadmiatun1 , sigit wibowo2 , ade irma anggraeni3 1,2,3management department, faculty of economics and business, universitas jenderal soedirman, indonesia abstract this study deals with discussions about work-family conflict, perceptions of organizational support, work attached to the professional commitment of istiqomaheducational institutions sambas purbalingga. this study took respondents consisting of school teachers who are under the auspices of sambas traditional educational institutions, namely mi, smp and ma teachers. the sample obtained in this study was collected by 88 people using probability sampling method with sampling techniques using proportional random sampling. this study uses data analysis using multiple regression analysis. from the results obtained can be concluded from the negative results between work-family conflict with professional commitment but not significantly. keywords work family conflict, perceived organizational support, work engagement, proffesional commitment jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 26-33 must be committed to careers, which can be assumed that teachers must think of focusing on the one profession that is currently being undertaken. this can help teachers to survive in the face of challenges and be able to improve the quality of themselves following the demands of the profession. the teacher must also have a high professional commitment to his work. professional commitment is noteworthy, considering there are negative impacts found when a teacher does not commit to his profession. teachers who do not have professional commitments tend to think and behave dually in terms of professions, such as thinking to change professions, acting fraudulently / justifying any means to gain maximum profit in working and having the low fighting capacity in facing challenges (ariani (2015) in pharisees, 2011). in this study, researchers took several variables that can influence professional commitment, including work-family conflicts, perceptions of organizational support, and work engagements. work conflict family, can be defined as a form of inter-role conflict in which the role pressures of work and family domain are not mutually contiguous so that participation from one role to another becomes more difficult. (greenhaus, 1985), because of the pressure of this role, this leads to the effectiveness of one role with the other being hampered. (bhutto, 2017). in this case, work-family conflict can emphasize a two-way relationship between work and family life, which means that work can interfere with family life or vice versa. (abendroth at al 2018). work-family can have both positive and negative influences. (barnet et al. 2001, in steber, 2009). family work conflicts can affect the lives of individuals, which must be emphasized in educational organizations and all organizations. if the input and output in an educational organization are human, then there is a possibility that work-family conflict will be experienced by teachers, which will affect the ability of teachers in terms of teaching and learning and also for students (ulucan, 2017). research in conflict work families are essential in educational organizations to see the qualifications of a teacher (keles, 2010). in research that has been done by (junwe zheng, 2018; okurame, 2012; kepakisan, 2018) shows that there is a significant negative influence between work conflict family and professional commitment. this result means that workers who cannot balance their roles in the family or at work will create a low professional commitment from the workers themselves, especially in this case related to the profession of a teacher. not only work conflicts the family influences professional commitment. this study also examined whether there was an influence on perceptions of organizational support for professional commitment. perceptions of organizational support are perceptions felt by employees relating to the extent to which organizations value and care about their contributions and the welfare of the employees themselves. perception of organizational support is essential for teachers to see and feel the beliefs and beliefs in their organizations so that they can be mutually beneficial between individuals and organizations (radiafilsan, 2015). perception of organizational support can also promote a sense of duty of employees to increase their commitment to the organization and achieve the goals of the organization. workers consider organizations to be more attractive because career motivation in themselves increases and displays higher levels of requirements and expectations of the organization as a place where they can build a relationship between workers and the organization. the perception of organizational support felt by the teacher can increase the level of professional commitment of the teacher itself. the research conducted by (junwei zheng, 2018; mohammed, 2013; hwansuk, 2017) explains that there is a positive influence between perceptions of organizational support and professional commitment. this result shows that if the employee's perception of the organization is high, then the professional commitment of the employee will also be high. in addition to work-family conflicts and perceptions of organizational support, work engagementalso influence professional commitment. directing optimal conditions for a teacher in the process of an educational institution must be done to the fullest. the optimal condition that is meant is when the teacher can have a feeling of enjoying his job as a teacher, proud of being a teacher, and still facing problems and trying to solve the problem well. this can be a contributing factor to whether or not performance is produced (soraya, 2015). the condition of enjoying work, feeling proud, and still trying to jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 26-33 overcome problems even though severe in this concept are called work engagements. work engagement is a condition of positive thinking, full of enthusiasm concerning work characterized by energetic conditions, full involvement, and high concentration during work (bakker, 2002). the research conducted by basikin (2007) writes that teachers in indonesia tend to make the teaching profession a lifelong profession and have a high level of work engagement. with these conditions, this makes the teacher able to work enthusiastically, give all his abilities, and not give up easily. in a study conducted by coetzee (2014), tasril (2017) shows that work engagement has a positive influence on professional commitment. this means that if the level of employee engagement is high, the professional commitment of the employee is high. teachers who have a high level of work involvement can increase professional commitment themselves. istiqomah sambas foundation as a foundation that operates in the field of community socialization has several business institutions, namely educational institutions, economic institutions, as well as da'wah institutions and social institutions. the istiqomah sambas foundation has carried out the function of formal education services which began in 2000. in this study, researchers will examine teachers who work in schools under the auspices of the istiqomah sambas educational institution, namely for the level of elementary school (sd), junior high school (junior high), and high school (sma). there are various reasons for teachers to resign, including continuing their careers, helping parents, looking for better jobs, and so on. according to (classification, 2011), a worker/teacher who has a high work commitment will have a low level of selfrelaxation. professional commitment professional commitment can be defined as a commitment that refers to the type of work commitment, which focuses on the importance of a career in one's life. (morrow, 1993). understanding of professional commitment is the same as career commitment and work commitment (carson et al., 1994). career commitment is the extent to which an individual is enthusiastic in working on a career chosen by the individual (okurame, 2012). in another definition, professional commitment is the level of individual loyalty to the profession as perceived by the individual (larkin, 1990). to increase professional commitment, the company needs to look at the side of workfamily conflicts, perceptions of organizational support, and work engagementof employees. work-family conflict work-family conflict can be defined as a form of inter-role conflict in which the role pressure from work and family domains do not co-exist side by side, making participation between one role and another more difficult. (greenhaus et al., 1985). according to soepatini (2008) explains that work conflict family can be defined as a form of role conflict were between the role of family and work are conflicting so participation in one role will be more complicated than participation with other roles. in a study conducted by zheng et al. (2018) on professional workers in china showed that there is a negative influence between workfamily conflict on the professional commitment of workers if the level of work conflict family at the employee is high this will reduce the level of professional commitment of the employee. perceived organizational support perceptions of organizational support are employees' beliefs about the extent to which organizations see their contributions and have concern for the welfare of their employees. (einsenberger et al., 1986). perception of organizational support also encourages a sense of duty of employees to increase their commitment to the organization and achieve the goals of the organization. research conducted by mohammed (2013) on nursing staff in mounsora and tanta's nursing faculty showed that there was a positive relationship between perceptions of organizational support and professional commitment of nursing staff. the study identified that if the level of perceived organizational support felt by employees is high then the level of professional commitment of these employees will also increase engagement engagement is one concept that addresses the side of human psychology, especially its relation to work. the concept of engagement was initially introduced by kahn in 1990 (man et al., 2013). work engagement is a person's jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 26-33 mental state, which is related to his positive work and is characterized by enthusiasm, dedication, and absorption (schaufeli, 2008). in a study conducted by coetzee et al. (2014) on employees in south african service companies showed that there was a positive influence between work engagement to employee career commitment. this means that if the level of employee engagement is high, then the professional commitment of the employee also increases h1: work-family conflict has a negative effect on professional commitment h2: perception of organizational support has a positive effect on professional commitment h3: work engagement has a positive effect on professional commitment research methods this type of research uses quantitative research with survey methods in data collection. this study conducted a survey of teachers at istiqomah sambas educational institutions. the objectives of this study include work-family conflict, perceptions of organizational support, work engagement, and professional commitment of teachers in istiqomah sambas educational institutions. this research uses a questionnaire as a data analysis tool whereby using the slovin formula with proportional random sampling technique obtained the number of teachers sampled at least 113 employees. the analysis technique used is multiple regression analysis. to test the instrument, the researcher used the validity test with product moment or pearson correlation technique and reliability test with cronbach alpha technique. the f test and t-test are also used to determine the accuracy of the regression model and the partial effect of each variable. results and discussion validity and reliability test validity test results using the product moment or pearson method show that the value of r for the product moment correlation or pearson for all items in the questionnaire question is higher than r table = 0.213 (df = n2) (0.05, 86). therefore, all items in the questionnaire variable work-family conflict variables, perceptions of organizational support, work engagement, and professional commitment in this study proved valid. reliability testing of the questionnaire in this study used the cronbach alpha formula. based on calculation of the cronbach alpha coefficient value of work-family conflict variables, perceptions of organizational support, work engagement and professional commitment are each higher than cut of value (0.600) so that all question items for each variable in this study are declared reliable. classic assumption test normality test based on the data normality test output, it can be seen that the asymp value. sig. (2tailed) from the kolmogorov-smirnov z test for standardized residual variables is 0.200 greater than the value of α (0.05), so it can be concluded that the data used are typically distributed. multicollinearity test variance inflation factor (vif) test output shows that the vif value of the variable workfamily conflict variables, perceptions of organizational support, and work engagement are each smaller than ten so that it can be concluded that there is no multicollinearity in the regression model. heteroscedasticity test based on heteroscedasticity test output, it can be seen that the significance value of the t-test of work-family conflict variables, perceptions of organizational support, and work engagement are each greater than the value of α (0.05). based on this evidence, it was concluded that there was no heteroscedasticity in the regression model. linearity test based on the output produced in the linearity test using the ramsey method, the value of sig deviation obtained from work-family conflict variables, the perception of organizational support and work engagement is higher than the sig deviation (0.05) value. thus it can be stated that the model of the relationship between the independent variables with the dependent variable in this study proved to be linear. model feasibility test in the output generated, it can be explained that the result of r square is 0.433. alternatively, the magnitude of the coefficient of determination (r square) is 43.3%. this means that the work-family conflict variable, perception of organizational support, and work engagement affect the professional commitment of 43.3% while the rest is influenced by other variables outside of this regression model. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 26-33 test f based on the regression output, the variable obtained f count of 21,354 is higher than f table that is with df = (k-1) and (n-k) which is 3,10. the results of the f test show that work-family conflict variables, organizational support perceptions, and work engagementtogether (simultaneous) have a significant influence on professional commitment, or it can be stated that the formed regression model is stated to be appropriate or compatible with the research data. (goodness of fit). hypothesis testing first hypothesis based on the results of the multiple regression analysis, the unstandardized coefficient was obtained at -0.027 and significance of 0.454, thus the resulting hypothesis was rejected, this means that work-family conflict has no significant effect on professional commitment. this is also based on the results of the lowest index value, namely in the component number 7, which is "because of stress at home, i am often busy with family problems at work" by 32.8%. although this is perceived by respondents as influencing, respondents have perceptions about managing their own time. in this case, the time used for the family and the time used for work are not contradictory, because respondents give a perception that between work and family time is different. respondents also do not connect between work and professional endeavors between family relationships and work. from the results of the lowest answer index, namely question number 7, questions number 4 and number 3, indicate that respondents have sharpened the management of good time between work and family where this can be seen from the lowest index number 3,4 and seven which has the same meaning about time-based conflict. from these results, it can be concluded that influencing work-family conflict is time-based conflict and strain-based conflict. second hypothesis based on the results of multiple linear regression analysis tests obtained the unstandardized coefficient value of 0.296 and significance 0.00. the results of these statistical tests show that perceptions of organizational support have a positive and significant influence on professional commitment. this means that the higher the level of perceptions of organizational support will increase the level of professional commitment of istiqomah sambas educational institution teachers. in this way, the second hypothesis that states that the perception of organizational support has a positive influence on the professional commitment of istiqomah sambas is accepted. third hypothesis based on the results of multiple linear regression analysis, the unstandardized coefficient is 0.139, and significance is 0.00. the results of these statistical tests show that work engagement has a positive and significant influence on professional commitment. this means that the higher the level of work engagement, the higher the level of professional commitment of the istiqomah sambas educational institution teacher. thus the third hypothesis which states that work engagement has a positive influence on the professional commitment of istiqomah educational institutions, sambas is accepted. t-test in order to assess whether work-family conflicts, perceptions of organizational support, and work engagementaffect professional commitment, the t-test is used. based on the confidence level of 95% (α = 0.05) and df = n-k, the t table value can be known 1.663. from the results of multiple linear regression analysis, it can be seen the results of t count for work-family conflict variables -0.753, perceptions of organizational support variables 4.795, and work engagement variables 4.242. conclusion in the first hypothesis that this study provides a negative direction between family conflict and work with professional commitment, but not significant future research needs to explore concerning the type of conflict, namely time-based conflict and strain-based conflict. the implication that can be done by the company is to consistently pay attention to the level of conflict felt by employees both in the family or work. the company can also hold a coaching program for the family of employees so that if a conflict occurs, it can overcome the problem of balance between work and family. organizations need to increase their support for employees both emotional support in the form of assistance, benefits and care for employees and instrumental jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 26-33 support in the form of special assistance to employees who need to be able to increase the level of employee confidence in the organization and the level of commitment of the employees themselves. the work culture of a company that carries the theme of religion also encourages employee morale and influences the employees' work engagementthemselves. in this study, the results of the influence of work-family conflict have a non-significant effect because more than 50% of the respondents involved are fresh graduated and unmarried, so the results obtained are not significant. for further research, it is better to examine employees who already have a family or get married, so that the results obtained are significant. the focus of this study only consists of work-family conflicts, perceptions of organizational support, and employee engagement. whereas many factors influence the employee's professional commitment. researchers hope that further research can use other variables that can affect 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(2014). perceived organizational support, job satisfaction, organizational citizenship behavior pada pt. bank maluku cabang utama kota ambon. agora. 2 (2). yulianto, r dhimas arief ( 2015 ). pengaruh orientasi etika, komitmen profrsional dan sensitivitas etis terhadap whistleblowing ( studi empiris pada badan pemeriksa keuangan perwakilan daerah istimewa yogyakarta ( skripsi). fakultas ekonomi, universitas negeri yogyakarta. yogyakarta . journal of accounting, management, and economics vol. 19, no. 2, 2017, pp.13-21 published by faculty of economics and business universitas jenderal soedirman published online on july 11, 2017 in http://jos.unsoed.ac.id/index.php/jame  correspondence to : pancasakti university, indonesia. e-mail: nikencahyaningtyas@gmail.com received: may 4, 2017 revised: may 18, 2017 accepted: june 8, 2017 introduction background batik and indonesia are already a unity. it is a characteristic that the indonesian nation is very famous for the production of batik cloth with various shades and colors and motifs that are very rich. batik is one of the unique archipelago heritages. its uniqueness is shown by various motifs that have its own meaning (asti and arini, 2011). currently, dressed batik is not like in ancient times that must follow the rules of use. batik becomes free in creation in any form. batik can be used as clothing that is used every day or on the go wherever. when we see batik in the present and then look at batik in the past, looks a lot of difference. the indonesian government must go through a long process and got results on october 2nd, 2009, unesco confirmed indonesian batik as global cultural heritage that took place in france. affirmed in the eyes of the world legitimize batik as one of indonesia’s cultural heritage. the development of tegalan batik is very dependent on the order that comes and sales around tegal. this becomes a classic problem that needs to solve the problem from various parties, especially tegal regency government. problem formulation 1. how is the effect of product innovation and competitive advantage on batik marketing performance in tegal regency? 2. which variable is greater the impact between product innovation and competitive advantage on batik marketing performance in tegal regency? research objective 1. to test and analyze empirically the influence of product innovation and competitive advantage on batik the influence of competitive advantage and product innovation on marketing performance on tegalan batik business in tegal regency niken wahyu c. economics faculty, pancasakti university, indonesia abstract this study aims to examine the influence of competitive advantage and product innovation on marketing performance on batik business in tegal regency and which variable is the greater the effect. the hypothesis to be tested is to analyze empirically the influence of competitive advantage and product innovation on marketing performance on batik tegalan business in tegal regency. the sample in this research was all tegalan batik craftsmen in bengle village of tegal regency. total population to be samples was 85 tegalan batik craftsmen. data analysis used spearman rank correlation formula and multiple linear regression. the result of statistical test showed that partially product innovation has a positive effect on marketing performance equal to 67.7% and competitive advantage has positive effectono marketing performance equal to 68.5%. then the test result simultaneously indicated that product innovation and competitive advantage variables have influence of 77.7% on marketing performance. however, the variable of competitive advantage was the most influencer on marketing performance equal to 68.5%. result of coefficient determination test showed the amount of marketing performance that can be explained by the variable of product innovation and competitive advantage of 60.4% and the remaining as much as 39.4% was influenced by other unexplainable factors. keywords product innovation; competitive advantage; marketing performance journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 13-21 14 marketing performance in tegal regency. 2. to test and analyze empirically the variable with greater impact between product innovation and competitive advantage on batik performance marketing in tegal regency. research function the result of this research is product innovation and competitive advantage which is expected on tegalan batik craftsmen performance in tegal regency in the future. the result of this study is expected to be useful: 1. for consumer society and tegal regency government, this research is expected to provide information about product innovation and competitive advantage related to marketing performance of tegalan batik craftsmen. 2. the researcher can provide additional references to further similar studies. literature review and hypotheses development etymology, history, and development of indonesian batik according to hanggopuro (2002, 1-2) in asa (2006) is in the book of bathik as the cloth of order and the guide contains about the earlier writers using the term batik which is not actually written with the word “batik” but it should be “bathik”. this refers to the javanese letter “tha” not “ta” and the use of batik as the sequence of points is less precise or said wrong. based on the etymology is actually batik identically is associated with a technique (process) from the start of the motive drawing to pelorodan. one of the characteristic of batik is how to draw the motif on the fabric is through the process of pemalaman that is scraping the wax fluid placed on a container named canting and stamp. both yamin and wirjosuparta argued that batik in indonesia has existed since the time of srivijaya, china in the time of the sung or t’ang dynasty (7th-9th centuries). the cities producing batik are: pekalongan, solo, yogyakarta, lasem, banyumas, purbalingga, surakarta, cirebon, tasikmalaya, tulungagung, ponorogo, jakarta, tegal, indramayu, ciamis, garut, kebumen, purworejo, klaten, boyolali, sidoarjo, mojokerto, gresik, kudus, and wonogiri (widodo, 1983: 2-3). in the process of batik there are generally three stages that include: 1. drawing motifs on mori cloth by closing unwanted portions of color with malam (wax), and by canting tool. 2. dyeing with cold dye according to the desired motif. 3. pelorodan that is removing the malam (wax) with boiling water, so it will look the motive and color as planned. based on these stages, often textile or batik design is defined as a physical form of the appearance of the motive and color alone. according to wulandari (2011: 113), motive is a design pattern of an image so that in it there is the meaning of the picture, the meaning of the sign or symbol can be revealed. product innovation the definition of product innovation by crawford & de benedetto (2000: 9) that product innovation is “innovation that is used in the overall operations of a company where a new product is created and marketed, including innovation in all functional processes/usability”. product innovation is defined as a breakthrough related to the creation of new products (wahyono, 2002: 28-29). there are three indicators used to measure product innovation in this research, namely: 1. culture of product innovation is a culture of innovation in the company to always create new products. 2. technical innovation is an innovation in the company’s process of producing new products. 3. product innovation is the company’s ability to produce new products according to customer’s wishes. competitive advantage competitive advantage is the result of strategy implementation utilizing various resources owned by company (bharadwaj, et al. in dewi, 2005: 133). while, according to porter (1994) in suparyadi (2003: 146) “competitive advantage cannot be understood by looking at a company as a whole, but must be from the origin of competitive advantage, that is different journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 13-21 15 activities done by the company in designing, producing, submitting, and supporting its products. according to barney and wright (1998) cited by harjanti (2004: 48), there are four conditions that must be met before a resource can be called a source of sustainable competitive advantage: 1. it is a valuable company resource, especially in relation to the ability to take advantage of opportunities or neutralize threats from the corporate environment. 2. relatively difficult to develop, so it becomes scarce in a competitive environment. 3. very difficult to imitate. 4. cannot be easily replaced or substituted by other significant products. marketing performance ferdinand (2000: 23) stated that marketing performance is a factor that is often used to measure the impact of a company’s strategy. the company’s strategy is always directed to produce good marketing performance (such as sales volume and sales growth rate) as well as good financial performance. furthermore, ferdinand also stated that good marketing performance is expressed in three major values, namely sales value, sales growth, and market share. attention to product quality has increased over the past few years. this happens because consumer complaints are increasingly focused on the poor quality of the product both on materials and workmanship. although the quality of the product must absolutely exist, in its implementation this factor is a characteristic of product image that is the most difficult to elaborate (sangadji & sopiah, 2013: 189). in research of voss and voss (2000: 69) suggested that marketing performance can be expressed by sales volume, sales growth rate, and customer growth rate. while, zhou, et al. (2005) used sales growth, profitability, return of investment, and market share to measure marketing performance. measures of marketing performance can be obtained through marketing function activity. this measurement is more rational than through accounting approach because it is directly related to the activity of the marketing function. the results of research conducted by li (2000: 313) found a positive influence between competitive advantage and performance measured through sales volume, profitability, market share, and return of investment. competitive advantage can be obtained from the ability of company to process and utilize resources and capital it has. companies that are able to create competitive advantage will have the power to compete with other companies because their products will remain in demand by customers. thus, competitive advantage has a positive effect on improving the company’s marketing performance. some of the indicators used in assessing marketing performance are sales volume, customer growth, and profitability. sales volume is the sales volume of the company’s products. customer growth is the growth rate of company’s customers. profitability is the amount of profits earned by the company. research methods data collection technique 1) research object the object of research was all batik craftsmen in tegal regency amounted to 85 craftsmen. 2) population and sample the population studied was all batik craftsmen in tegal regency which amounted to 85 people. sampling technique used saturated sampling technique means that all population becomes sample (arikunto 2013). 3) data source data used in this research was primary data that was data obtained directly from source and secondary data that was data obtained indirectly from research object. this data was data collected and published by other parties officially. 4) data collection performed by the method of documentation was by way of questionnaire, interview, and retrieving journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 13-21 16 necessary data from the records or reports of field survey results. research instrument testing technique data processing with quantitative analysis through several stages: 1. instrument validity test is used to test the validity of the instruments used. tested on 30 non sample respondents. the correlation between the items and the total score of items calculated by the product moment correlation formula, while the product moment formula is as follows (arikunto, 2013: 317): 𝑟𝑥𝑦 = n ∑ xy − (∑ x)(∑ y) √{n ∑ x2 − (∑ x)2}{n ∑ y2 − (∑ y)2} 2. reliability is the reliability level of the questionnaire. a reliable questionnaire is a questionnaire which, if tried repeatedly to the same group, will produce the same data with the assumption that there is no psychological change in the respondents. in this study, to find the reliability of the instrument used alpha formula as follows (arikunto, 2013: 239): 𝑟11 = [ k (k − 1) ] [1 − ∑ 𝜎𝑏2 𝜎2𝑡 ] to achieve the predetermined objectives, the analytical tool used as follows: 1) rank spearman correlation analysis rank spearman correlation is used to find relationships or to test the significance of associative hypotheses. the formula used is as follows (arikunto, 2010: 321): 𝑟𝑥𝑦 = 1 − 6 ∑ 𝐷2 𝑛(𝑛2 − 1) description: r xy = spearman correlation coeffecient n = amount of subject d = difference, is the level difference of each subject the correlation values that have been obtained were then interpreted by the correlation interpretation table as follows: table 1. correlation value interpretation coeffecient interval correlation level 0.000 – 0.199 very low 0.200 – 0.399 low 0.400 – 0.599 enough 0.600 – 0.799 strong 0.800 – 1.000 very strong 2) multiple linear regression analysis the regression equation used is as follows: eri = a + β1x1 + β2x2 + ei description: eri = marketing performance x1 = product innovation x2 = competitive advantage bi = regression coeffecient ei = residual error 3) regression coeffecient significance test to test the significance of the regression coefficients obtained, twoparty t test will be used with a significant level of 95% (or α = 5%). hypothesis testing criteria: ho is accepted if -t α/2 ≤ t ≤ t α/2 ho is rejected if t > α/2 or t < -t α/2 to test the effect of independent variables together on the dependent variable (first hypothesis) used f test. the formula is as follows (supranto, 2001): f = 𝑅2 (𝐾 − 1)⁄ 1 − 𝑅2 (𝑁 − 𝐾)⁄ description: r2 = coeffecient of determintation k = amount of independent variable n = amount of sample testing criteria: ho : bj = 0, there is no mutual influence between independent variables on the dependent variable. h1 : bj ≠ 0, there is mutual influence between independent variables on the dependent variable. ho is accepted if fcount ≤ ftable ho is rejected if fcount > ftable journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 13-21 17 coefficient of determination the coefficient of determination aims to determine the level of accuracy of the regression analysis also to determine the percentage of the changes of dependent variable (y) caused by the independent variable (x). adjusted-r2 is obtained by the following formula (gujarat, 2003 in ghozali, 2011: 97): d = r2 x 100 % description: d = coeffecient of determintation r = coeffecient of correlation if the coefficient of determination (r2) is closer to one, then the independent variable affects the dependent variable. discussion geographical location bengle village is located in talang sub district and is one part of tegal regency, central java province. the boundaries of bengle village include: north : dukuh malang village south : langgen village west : setu village bengle village is known as the village of batik craftsmen because of the many people who especially the mothers and teenage girls who livelihood as typical tegalan batik craftsmen. they learn batik from an early age. usually batik activities are conducted starting at 07.00 am until 04.00 pm, but not infrequently they continue to work until late at night. they work from monday-saturday, while on sunday they use to rest. table 2. frequency distribution based on education level education level frequency % not completed in primary school 3 3,53 graduated from primary school 12 14,12 graduated from junior high school 16 18,82 graduated from senior high school 39 45,88 graduated from college 15 17,65 total 85 table 3. frequency distribution of respondents by age age group frequency % 20-30 5 5,88 31-40 15 17,65 41-50 35 41,17 51-60 30 35,30 total 85 can be seen from the data that the highest level of education of respondents is high school graduates and most age range is 41-50 of 41.17%. instrument validity test it was tested to 30 people outside the respondents first. the results of this test used the significance level of 0.05 and n = 30 then obtained r table of 0.361. journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 13-21 18 table 4. validity test of marketing performance variable item r count r table definition 1 0,607 0,361 valid 2 0,553 0,361 valid 3 0,405 0,361 valid 4 0,481 0,361 valid 5 0,526 0,361 valid 6 0,447 0,361 valid 7 0,416 0,361 valid 8 0,423 0,361 valid table 5. validity test of product innovation variable item r count r table definition 1 0,504 0,361 valid 2 0,553 0,361 valid 3 0,446 0,361 valid 4 0,363 0,361 valid 5 0,581 0,361 valid 6 0,390 0,361 valid 7 0,454 0,361 valid 8 0,376 0,361 valid table 6. validity test of competitive advantage variable item r count r table definition 1 0,520 0,361 valid 2 0,533 0,361 valid 3 0,440 0,361 valid 4 0,365 0,361 valid 5 0,479 0,361 valid 6 0,514 0,361 valid 7 0,424 0,361 valid 8 0,381 0,361 valid reliability test table 7. reliability test of marketing performance variable reliability statistics cronbach’s alpha n of items .770 10 from the above spss calculation table, cronbach’s alpha value of 0.770. because the value of 0.770 > 0.60 then the instrument of performance marketing (y) is said to be reliable. table 8. reliability test of product innovation variable from the above spss calculation table, cronbach’s alpha value of 0.670. because the value of 0.670 > 0.60 then the instrument of product innovation (x1) is said to be reliable. reliability statistics cronbach’s alpha cronbach’s alpha based on standardized items n of items .670 .662 9 journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 13-21 19 table 9. reliability test of competitive advantage variable reliability statistics cronbach’s alpha cronbach’s alpha based on standardized items n of items .663 .666 9 from the above spss calculation table, cronbach’s alpha value of 0.663. because the value of 0.663 > 0.60 then the instrument of competitive advantage (x2) is said to be reliable. data analysis table 10. correlation analysis result of product innovation with marketing performance correlations productinnovation marketingperformance spearman’s rho productinnovation correlation coefficient 1.000 .677** sig. (2-tailed) . .000 n 85 85 marketingperformance correlation coefficient .677** 1.000 sig. (2-tailed) .000 . n 85 85 **. correlation is significant at the 0.01 level (2-tailed). based on rank spearman correlation calculation results obtained rs or rsxy value of 0.677. the value of rsxy of 0.677 then interpreted with r value interpretation table that is at the interval of 0.600 0.799. that means the relationship of product innovation with marketing performance is strong and positive. table 11. correlation analysis result of competitive advantage with marketing performance correlations competitiveadvantage marketingperformance spearman's rho competitiveadvantage correlation coefficient 1.000 .685** sig. (2-tailed) . .000 n 85 85 marketingperformance correlation coefficient .685** 1.000 sig. (2-tailed) .000 . n 85 85 **. correlation is significant at the 0.01 level (2-tailed). based on rank spearman correlation calculation results obtained rs or rsxy value of 0.685. the value of rsxy of 0.685 then interpreted with r value interpretation table that is at the interval of 0.600 0.799. that means the relationship of product innovation with marketing performance is strong and positive. journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 13-21 20 table 12. result of regression analysis model summary model r r square adjusted r square std. error of the estimate change statistics r square change f change df1 df2 sig. f change 1 .777a .604 .594 3.159 .604 62.555 2 82 .000 a. predictors: (constant), competitiveadvantage, productinnovation from the above calculation, obtained value of r = 0.777 or 77.7%. because it is in the coefficient interval of 0.600-0.779 thus shows a strong and positive relationship between variable of product innovation, competitive advantage, and marketing performance. it is provided coefficient of determination of variable of product innovation, competitive advantage together with marketing performance of 60.4% while 39.6% is influenced by other factors that cannot be explained. table 13. result of t test analysis from the above table, product innovation variable get t count partial significance value of 3.315 > t table 2.000 with significance value of 0.001 means ho is rejected that there is influence of product innovation on marketing performance. variable of competitive advantage get t count partial significance value of 5,337 > t table 2.000 with significance value of 0.000 means ho is rejected that there is influence of competitive advantage on marketing performance. table 14. result of f test analysis f test results obtained f count value of 62.555 with probability of 0.000. because the probability is much less than 0.05 then variable of product innovation, competitive advantage together are significantly related coefficientsa model unstandardized coefficients standardized coefficients t sig. 95.0% confidence interval for b b std. error beta lower bound upper bound 1 (constant) 2.970 2.948 1.007 .317 -2.896 8.835 productinnovation .352 .106 .322 3.315 .001 .141 .564 competitiveadvantage .561 .105 .518 5.337 .000 .352 .771 a. dependent variable: marketingperformance anovab model sum of squares df mean square f sig. 1 regression 1248.683 2 624.342 62.555 .000a residual 818.422 82 9.981 total 2067.106 84 a. predictors: (constant), competitiveadvantage, productinnovation b. dependent variable: marketingperformance journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 13-21 21 to marketing performance of batik products in bengle village, tegal regency. conclusion 1. there is a significant strong and positive relationship of product innovation with marketing performance, it is enough to prove that the innovation of batik products from classical and development motives have begun done by craftsmen in batik center of bengle village, tegal regency. increased product innovation and competitive advantage has a role in improving marketing performance required open access through existing social media where people often make purchases through online media. 2. competitive advantage currently owned by tegalan batik craftsmen is a motive that is always a large and wide patterned called big rengrengan. new motive is developed such as mushroom, keongan, galaran, ambringan, godong gedegede. this is the uniqueness and is not owned by batik from other regions. big style is impressed bold as the character of tegal people that are open and straightforward. references arikunto, s. (2013). research method: a practical approach. jakarta: rineka cipta. asa, k. (2006). pekalongan batik in history. yogyakarta: cahaya timur offset. asti, m., & arini b. a, (2011). adiluhung national heritage. yogyakarta: andi crawford & de benedetto. (2000). marketing. new york: mcgraw-hill. dewi, s. t. (2006). the analysis of the effect of market orientation and product innovation on competitive advantage to improve marketing performance (study on batik industry in pekalongan). diponogoro university, 1-80. ferdinand. (2014). research method of management (5th ed.). semarang: diponogoro university. ghozali, i. (2011). multivariate analaysis application with ibm spss 19 program (5th ed.). semarang: diponegoro university. harjanti, s. (2004). creating continuous competitive advantage through human resources. journal of economics and enterpreneur, 4(1), 41-55. sangadji, e. m., & sopiah. (2013). consumer behavior: practical approach. yogyakarta: andi publisher. suparyadi. (2003). building competitive advantage of small industry of red sugar: competitive method in export market. journal of business, 2(8), 131-154. voss, z. g., & voss, g. b. (2000). strategic orientation and firm performance in an artistic environment. journal of marketing, 64(1). wahyono. (2002). market orientation and innovation: the influence on market performance. journal of indonesian market science, 1. widodo. (1983). traditional art batik. jakarta: swadaya publisher. wulandari, a. (2011). national batik: philosophical meaning, making process, and batik industry. yogyakarta: andi publisher. journal of accounting management and economics vol. 20, no. 2, 2018, pp.42-54 published by faculty of economics and business, universitas jenderal soedirman published online on july, 9 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 onlineissn: 2620-8482  correspondence to : dziqryhkl@gmail.com received: may 28, 2018 revised: june 14, 2018 accepted: june 26, 2018 introduction indonesia known as the largest archipelagic country in the world with the area of 1,904,569 km 2 and the number of islands of 17,508. each island has a beautiful natural panorama from the bottom of the sea to the top of the mountain, it certainly attracts many local and foreign tourists to visit and explore the tourist destinations in indonesia. west java became the most visited destination by domestic tourists throughout the year 2016. visits of domestic tourists to the west java until november of 2016 are 78,036,327 visits (prodjo,w.a.2016). tourist visit and explore various destinations, especially natural destinations in the tasikmalaya city and other areas. visitors of mount galunggung located in tasikmalaya are mostly local tourists. average of domestic and foreign tourists who visit the mount galunggung is amounted to 213,382 people per year (andi 2014) number of domestic and foreign tourists visiting tasikmalaya brought social change to the inception of a new phenomenon for some people in tasikmalaya city, as samuel koenig (in kamanto and sunarto, 2000: 133) noted, “social change has an internal and external factor affecting human life”. it means that social change refers to the existence of modifications of external or internal factors in the patterns of people‟s lives. teenagers at the moment especially have a new hobby that is engaged in the outdoor or indoor activities. this phenomenon is called „back to nature‟ and has become a new lifestyle in society. activities in the wild are visiting to the natural places such as beaches, waterfalls, forests, and mountains. with difficult terrain and unpredictable weather, obviously activities in the wild have a high risk. because of that, need a good planning including in terms of equipment. outdoor the effect of consumer ethnocentrism, brand image, and perceived quality,on purchase decisions with purchase intention as intervening variable (study of eiger consumers in tasikmalaya) 1dziqry muhammad haikal 2suliyanto 1,2,3department of management, faculty of economics and business, jenderal soedirman university, indonesia abstract the purpose of this research is to know and analyze the effect of consumer ethnocentrism, brand image, and perceivedquality of eiger outdoor equipment product to consumer purchase decision, and to test purchase intention as intervening variable between consumer ethnocentrism ,brand image, and perceivedquality effect the purchase decision. the sample in this study there are 180 respondents who are users of eiger products in tasikmalaya region. convenience sampling method is used in the determination of this research sample. data were analyzed using structural equational modeling (sem) with spss and amos statistical software. the results of this study show that. consumer ethnocentrism has a positive but no significant effect on purchase decisions. brand image has a positive but no significant effect on purchase decisions. perceived quality have a positive effect on purchase decisions. purchases intention have a positive effect on purchase decisions. consumer ethnocentrism positively effects purchase decisions with purchase intention as intervening variable. brand image positively effects purchase decisions with purchase intention as intervening variable. perceived quality positively effect purchase decisions with purchase intention as intervening variable. keywords consumer ethnocentrism; brand image; perceived quality; purchase intention; purchase decisions. journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 42-54 equipment has become a necessity for some people. increasing of activity in the wild is directly proportional to the increasing of the demand of outdoor equipment products. in indonesia these days, many local and import brands are available for consumers who want to buy outdoor equipment products. brands of outdoor equipment in indonesian market today are from domestic and overseas countries that are demanded much by the people of indonesia. each product brand offers its own excellence and service to its customers as well as its competitive pricing according to its type and market segment. in tasikmalaya city, currently available many choices of brands both local and import for consumers who want to buy an outdoor equipment. one of the largest outdoor equipment manufacturers in indonesia and has a vast market share of 80% of the local market is pt. eigerindo multi produk industri or known as eiger (juliyanti, 2010). recently, in the context of consumer ethnocentrism local product, indonesia becomes relevant for the study, especially seen from the appearance of adventure products that are aligned with the development of tourist interest in indonesia. marketing management studies highlight the importance of engaging the customer ethnocentrism component. many imported products entering the domestic market and the tendency of domestic consumers prefer to buy imported products, making research on consumer ethnocentrism is necessary. in the previous research, there is controversy of difference research result (research gap) between consumer ethnocentrism and purchase decision. research problem 1. does consumer ethnocentrism have positive effect on purchase decision? 2. does brand image have positiveeffect on purchase decision? 3. does perceived quality have positiveeffect on purchase decision ? 4. does purchase intention have positive effect on purchase decision? 5. does consumer ethnocentrism have positive effect on purchase decision with purchase intention as intervening variable? 6. does brand image have positive effect on purchase decision with purchase intention as intervening variable? scope of research in this study, researcher determined the boundaries of the problem for the research to achieve the expected goal. this research is limited in five attributes ofvariable used that are consumer ethnocentrism, quality perception, brand image, purchase intention and purchase decision. research objectives 1. to analyze the positive effect of consumer ethnocentrism on purchasing decision. 2. to analyze the positive effect of brand image on purchase decision. 3. to analyze the positiveeffect of perceived qualityon purchase decision. 4. to analyze the positiveeffect of purchase intention on purchase decision. 5. to analyze the positive effect of consumer ethnocentrism on purchase decision with purchase intention as intervening variable. 6. to analyze the positiveeffect of brand image on purchase decision with purchase intention as intervening variable. 7. to analyze the positive effect of perceived qualition purchase decision with purchase intention as an intervening variable. literature review and hypotheses consumer ethnocentrism the term of ethnocentrism was first published by summer in 1906 who determined ethnocentrism as “the belief that one‟s culture is superior to others which is often accompanied by a tendency to make incompatible comparisons”. ethnocentrism refers to the pride, arrogance, and belief in the privilege of the group itself and is demeaning other groups (auruskevicience and vianelli, 2012). etnocentrismhas function to help the continuity of groups and cultures through increased solidarity, conformity, cooperation, loyalty, and effectiveness (sharma,et al., 1995). some specific behaviors that are characterizedas the attitude of etnocentrism have the tendency to: 1) differentiate between groups, 2) perceive events based on their own benefits to the groups themselves (economic, poliyic, and social), 3) see the group itself as the journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 42-54 center of the universe andthe environment of their group life is better than others, 4) suspect and criticize other groups, 5) contemplate their own group as superior, strong, and honest, 6) see other groups as inferior, weak, dishonest, and likes to make trouble (sharma,et al., 1995). shimp and sharma (1987) extended the ethnocentrism concept by linking to the marketing concept of consumer behavior to study consumer behavior and the marketing implications of ethnocentrism. the term of „consumer ethnocentrism‟ is used by shimp and sharma (1987) to represent the beliefs held by us consumers about the appropriateness and morality of purchases of foreign-made products. shimp and sharma (1987) defined consumer ethnocentrism as: “the believe held by american customers about oppropriateness and morality in purchasing foreign-made products”. consumer ethnocentrism can also be defined as a consumer perspective that tends to overestimate local and foreign product due to the assumption that the group is better than others. brand image american marketing association (ama) in kottler (2000: 404) defined brand as “a name, term, sign, symbol, or design, or combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from competitors”. according to kotler and amstrong (2012), brand is more than a name and symbol, brand represents consumer‟s perception and feelings about a product. based on these descriptions, can be concluded that brand is the perception of people to the company or product. consumers found a lot of different types of products and services, so brand image is primarily responsible for brand differentiation (sallam, 2014). according to associations that exist in the mind consumer, kotler in simamora (2004) defined brand image as a set of beliefs, ideas, and impressions of a person on a brand. this is similar to keller that stated brand image as the image of a brand considered as a group of associations that connect consumer thinking against a brand name (keller, 1998: 51). according to keller (2008), brand image is consumer perception as a reflection of brand. perceived quality zeintnmal (1990) suggested that quality in the consumer‟s view is a thing that has its own linguistic space that is different from the quality in the view of the manufacturer when issuing a product commonly known by its true quality. perceived quality can be defined as a customer‟s perception of the quality or superiority of a product or service. ferrinadewi (2008: 172) defined perceived quality as how overall product superiority is based on subjective evaluation of consumers. sethurahman and cole (1994) in hossain (2007) suggested that perceived quality of a product influences consumer buying behavior on national brands, perceived quality of a product becomes added value for consumers in doing purchase of a brand. from the description above, perceived quality can be interpreted as consumer perceptions about the quality or superiority of a product and how consumers perceive the advantages made by the company. perceived quality has an important role in building a brand. in many contexts, the perceived quality of a brand can be an important reason for purchases, decision of which brands that will be considered by customers, and consideration that will affect customers in purchasing decisions. purchase intention intention can be described as a tendency of a person to take action for the object. according to engel (2001:97), intention is a subjective assessment of what will be owned by consumers in the future and one form of intention is the purchase intention to the consumer that means a tendency for a person to buy his favorite brand (kotler and armstrong, 2007: 227). according to assael (2001:53), intentuion a condition that arises and formed after the consumer evaluate the brand and can provide the highest level of expected satisfaction. from the above understanding, purchase intention is the interest that will arise after the existence of an alternative evaluation process. in the evaluation process, a person will has a series of choices about the products to be purchased. purchase intention is consumers behavior where consumers have a desire in buying or choosing a product based on experience in choosing, using, and consuming or even wanting a product. purchase intention is part of consumer behavior before actually making the purchase process. the factors that influence buying journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 42-54 interest are related to feelings and emotions, when a person is happy and satisfied in buying goods or services then it will reinforce purchase intention. purchase decision kotler and armstrong (2008) explained that purchase decision is a step in the buyer‟s decision making process in which consumers actually purchase. meanwhile, peter and olson (2010) defined purchase decision as an integrated process which is being undertaken to combine knowledge in order to evaluate two or more alternatives and choose one of them, so that the purchase decision can be defined as the determination of the choice by the consumer toward two or more alternatives choice to fulfill their needs. from some of descriptions of the purchase decision, can be said that decision is the selection of an option from two or more alternative choices. at this stage, consumers really pay for products they need or desire after passing several alternative evaluation processes and other considerations. a very powerful driving factor in consumer purchase decision makers is influenced by a number of people having an involvement in purchasing decisions. hypothesis development the positive effect of consumer ethnocentrism on purchase decision shimp and sharma (1984) in wei (2008) found that consumers with high ethnocentrism tend to prefer domestic products rather than imported products, while those with low ethnocentrism tend to prefer imported products. li,et al., (2012) also argued that consumer ethnocentrism will influence purchasing decisions for local and overseas products. based on these research, it can be proposed the first hypothesis as follow: h1: consumer ethnocentrism has a positive effect on purchase decision. the positive effect of brand image on purchase decision mendrofa (2010) concluded that brand image has a positive influence on purchasing decisions. positive influence can be interpreted that the more positive the brand image the higher the consumer intensity on product purchases. saeed,et al. (2013) studied the factors influencing purchasing decisions in the apparel industry in sahiwal, pakistan, and stated that the brand image does not have a significant effect on consumer purchasing decisions and concluded that consumers in sahiwal do not pay attention to the brand image in purchasing the product of clothes. based on these two studies, there are differences in results about the dimensions of brand image that can influence purchasing decisions. based on these research, it can be proposed the second hypothesis as follows: h2 : brand image has a positive effect on purchase decision. the positive effect of perceived quality on purchase decision in essence, perception relates to a person‟s behavior in making decisions about what is desired. one way to know the consumer behavior is analyzing consumer perceptions of the product. with consumer perceptions, can be known things that become strength, weakness, opportunity, or threat for a product. richardson,et al. (1996) in choy,et al. (2011) has proven that perceived quality has an effect on purchasing decision. studies show that today the company has been successful in convincing consumers that the absolute level of quality is actually different or the variety of variations in the quality exposes consumers to risk. then, choy,et al (2011). confirmed that theperceived quality has a direct impact on purchasing decisions. based on these research, it can be proposed the third hypothesis as follows: h3 : perceived quality has a positive effect on purchase decision. the positive effect of purchase intention on purchase decision purchase intention scale has been developed from different studies since it is the most important variable in the consumer buying decision.attitudes perform an important role in consumer behaviour and decision-making, since they represent consumer likes and dislikes (engel et ai., 1995). that consumer decision process occurs as a result of consumers seeking and evaluating available information to make a purchase decision (nowlis, 1995).in the study conducted by agustin et al., (2015) found there is significant influence of purchase intention on purchase decisions, because the higher consumers intention towards products, so the higher purchase decisions made by consumers.based on these researchcanbe proposed the fourth hypothesis as follows: journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 42-54 h4 : purchase intention has a positive effect on purchase decision. the positive effect of consumer ethnocentrism on purchase decision with purchase intention as intervening variable shankarmahesh (2006) notes that ethnocentrism is one of the most important factors determining consumers‟ purchase intentions with respect to both foreign and local products. han (1988) and herche (1992) provide empirical evidence to indicate a strong and significant relationship between consumer ethnocentrism and purchase intention toward local products nulufi (2015) stated that purchase intention has a positive and significant influence on purchasing decisions. this means that the higher consumer purchase intention in the product, the consumer decision making is increasing in purchasing. researchers did not find previous research that states directly purchase intentions can be used as an intervening variable between consumer ethnocentrism and purchase decision. but researchers try to find things that have not been studied by other researchers is by adding purchase inteion as an intervening variable between consumer ethnocentrism and purchase decisionbased on these researchcan be proposed the fifth hypothesis as follows: h5 : consumer ethnocentrism has a positive effect on purchase decision with purchase intention as intervening variable. the positive effect of brand image on purchase decision with purchase intention as intervening variable the research about consumer ethnocentrism in indonesia was conducted by nulufi (2015), the finding is that brand image has a positive and significant influence on purchasing decisions mediated by purchase decision. this means that if the brand image is better then purchase intenrion and consumer purchasing decisions are also increasing. if the brand image is lower, purchase intention and purchasing decisions will also decrease. the total indirect effect of brand image on purchasing decisions through purchase intention is greater than the direct effect of brand image on purchasing decisions,.purchase intention can be a intervening variable between brand image and purchase decision. based on these research, it can be proposed the sixth hypothesis as follows: h6 : brand image has a positive effect on purchase decision with purchase intention as intervening variable. the positive effect of perceived quality on purchase decision with purchase intention as intervening variable consumers in developing countries tend to believe that products made by local producers have less quality than imported products from more advanced countries in the field of products (wang and chen, 2004 in nguyen,et al., 2008).(yee& san2011) indicate that perceived quality have positive association with purchase intention. this mean if customers‟ perceived quality on product is higher will have high intention to purchase. nulufi (2015) stated that purchase intention has a positive and significant influence on purchasing decisions. this means that the higher consumer purchase intention in the product, the consumer decision making is increasing in purchasing. researchers did not find previous research that states directly purchase intentions can be used as an intervening variable between perceived quality and purchase decision. but researchers try to find things that have not been studied by other researchers is by adding purchase inteion as an intervening variable between perceived quality and purchase decision. based on the discussion, it can be proposed the seventh hypothesis as follows: h7 : perceived quality has a positive effect on purchase decision with purchase intention as intervening variable. research framework methods type of research type of this research is quantitativecausalresearch with survey method by using questionnaires as tool of data collection. it means that the research collects the data and investigates the causal journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 42-54 relationships and hypothesis testing to give an overview of the research object. population the population in this study are consumers who have used eiger which appropriate with the criteria that has been determined by researcher. which has the criteria consumers of eiger product who are in tasikmalaya. sampling method sampling in this research conducted using non probability sampling. sampling method used in this study was convenience sampling to choose the sample among the population. higginbottom (2004), defined the convenience sample as consisting of participants who are readily available and easy to contact. source of data primary data primary data in this research is obtained directly in the field that is respondents who ever bought a product of eiger in order to explain the effect of consumer ethnocentrism, brand image, and perceived quality toward purchase decision with purchase intention as an intervening variable. secondary data secondary data in this research is written data from references, scientific articles, scientific journals, and other sources such as data obtained via the internet related to this research. measurement of variables to measure the variables, required measurement scale. the scale of measurement is used as a reference standard to determine the length of the interval that will produce quantitative data. with the scale of measurement, the value of the variable measured by a particular instrument can be expressed in the form of numbers, so it would be more accurate, efficient, and communicative (sugiyono, 2003: 127). measurement of individual attitudes on the answers given by the respondents uses the following seven-level likert scale (suliyanto, 2006). data analysis technique variable measurement to measure the variables required measurement scale. the scale of measurement is used as a reference standard to determine the length of the interval that will produce quantitative data. with the scale of this measurement, the value of the variable measured by a particular instrument can be expressed in the form of numbers, so it would be more accurate, efficient and communicative (sugiyono, 2003: 127). analysis technique this study used structural equation model for the data analysis technique. it is statistical technique that allow to testing a series of relative complex connections simultaneously. a complex relationship can be built between one or several dependent variables with one or more independent variables. perhaps there is also a variable that has double role as independent variable in a connection, but being dependent variable on another connection given the existence of tiered causality connection. each of the dependent variable and independent variable can be shaped to factor or construct built from some variable indicators. similarly among the variables that can be a form of a single variable that is directly observed or directly measured in research process. results and discussion confirmatory factor analysis (cfa) is used to estimate the adequacy of the measurement model for each construct. based on the output of confirmatory factor analysis model, it can be seen the regression weights as follows: table 1. regression weights of confirmatory factor analysis (cfa) causal relationship estimate s.e. c.r. x1 <--consumer_ethnocentrism 1.000 x2 <--consumer_ethnocentrism 1.017 .142 7.177 x3 <--consumer_ethnocentrism .979 .141 6.962 x8 <--brand_image 1.000 x9 <--brand_image 1.154 .104 11.139 x4 <--consumer_ethnocentrism 1.022 .133 7.696 journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 42-54 causal relationship estimate s.e. c.r. x5 <--consumer_ethnocentrism 1.330 .151 8.812 x12 <--perceived_quality 1.000 x13 <--perceived_quality 1.454 .142 10.249 x15 <--perceived_quality 1.210 .125 9.657 x11 <--brand_image 1.020 .097 10.508 x10 <--brand_image 1.160 .083 13.932 x14 <--perceived_quality 1.324 .130 10.218 x20 <--purchase_decision 1.000 x22 <--purchase_decision 1.106 .148 7.453 x21 <--purchase_decision .930 .145 6.410 x23 <--purchase_decision 1.099 .144 7.648 x16 <--purchase_intention 1.000 x18 <--purchase_intention 1.051 .093 11.314 x17 <--purchase_intention 1.101 .085 12.898 x19 <--purchase_intention 1.127 .098 11.544 x6 <--consumer_ethnocentrism .819 .126 6.497 x7 <--consumer_ethnocentrism 1.079 .142 7.591 based on table 1, it can be seen that the critical ratiovalues of each indicator in confirmatory factor analysis (cfa) model is greater than 2.0. it shows that each indicator is significant as dimension of the latent factors formed. thus, it can be stated that each indicator or dimension forming the latent variables of research model have shown unidimensionality. after analyzing the measurement model through confirmatory factor analysis (cfa) where each variable indicator can be used to prove define latent constructs, then the next step is to conduct a full model sem analysis with the model result is as follows: figure 1. full model sem analysis journal of accounting management and economics vol. 20, no. 2, 2018, pp.42-54 published by faculty of economics and business, universitas jenderal soedirman published online on july, 9 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 onlineissn: 2620-8482  correspondence to : dziqryhkl@gmail.com received: may 28, 2018 revised: june 14, 2018 accepted: june 26, 2018 hypotheses testing hypotheses testing of this research based on the null hypothesis that the regression coefficient between the relationships is equal to zero by the usual t-test in regression models (ferdinand, 2000). the summary results of the critical ratio (cr) values and its value of ttable can be seen in the table. table 2. standardized regression weight to hypotheses testing causal relationship c.r. t table (one tiled) purchase_intention <consumer_ethnocentrism 2.499 1.660 purchase_intention <perceived_quality 2.451 1.660 purchase_intention <brand_image 2.769 1.660 purchase_decision <consumer_ethnocentrism 0.243 1.660 purchase_decision <brand_image 0.296 1.660 purchase_decision <perceived_quality 2.826 1.660 purchase_decision <purchase_intention 4.080 1.660 refers to the critical ratio of each causal relationship in table above, further explanations of research hypotheses are as follows: first hypothesis testing based on the confidence level of 95% (α = 0.05) and degree of freedom (n k) with one tiled test, the t table value of this causal relationship is 1.660. from the result of structural equation modeling (sem) analysis, it is obtianed thecr value of consumer ethnocentrism on purchase decision of 0.243 is less than value of ttable. thus, ho is accepted and ha is rejected, it means that consumer ethnocentrism has no significant effect on purchase decision. therefore, first hypothesis which states that consumer ethnocentrism has a positive effect on purchase decisionis rejected. second hypothesis testing sem analysis result shows that thecr value of brand image on purchase decision of 0.296 is less than value of ttable. thus, ho is accepted and ha is rejected. therefore, second hypothesis which states that brand image has a positive effect on purchase decisionis rejected. third hypothesis testing refers to the result of structural equation modeling analysis, it is obtianed thecr value of perceived quality on purchase decision of 2.826 is greater than ttable value. thus, the ho is rejected and ha is accepted, it means that perceived quality has a positive significantly effect on purchase decision. therefore, third hypothesis which states that perceived quality has a positive effect on purchase decision is accepted. fourth hypothesis testing furthermore, based on the sem result, it is obtianed thecr value of purchase intention on purchase decision of 4.080 is greater than value of ttable. thus, ho is rejected and ha is accepted, it means that purchase intention has a positive and significant effect on purchase decision. therefore, fourth hypothesis which states that purchase intention has a positive effect on purchase decision is accepted. fifth hypothesis testing based on the result of sobel test in appendix 6, it is obtained the tstatistic value of consumer ethnocentrism on purchase decision with purchase intention of 2.090 is greater than the value of ttable (1.660). thus, the ho is rejected and ha is accepted, it known that purchase intention mediates significantly the effect of consumer ethnocentrism on purchase decision. therefore, fifth hypothesis which states that consumer ethnocentrism has a positive effect on purchase decision with purchase intention as intervening variable is accepted. sixth hypothesis testing sobel test result shows thattstatistic value of brand image on purchase decision with purchase intention of 2.243 is greater than the value of ttable. thus, ho is rejected and ha is accepted. therefore, sixth hypothesis which states that brand image has a positive effect on purchase decisionhas a positive effect on purchase decisionis accepted. journal of accounting management and economics , vol. 20, no. 2, 2018, pp. 42-54 seventh hypothesis testing furthermore, refers to the sobel test result in appendix 6 shows thattstatistic value of perceived quality on purchase decision with purchase intention of 2.052 is also greater than ttable value. thus, ho is rejected and ha is accepted. therefore, seventh hypothesis within study which states that perceived quality has a positive effect on purchase decision with purchase intention as intervening variable is accepted. conclusion 1. consumer ethnocentrism has no effect on purchase decision. 2. brand image has a no effect on purchase decision. 3. perceived quality has a positive effect on purchase decision. 4. purchase intention has a positive effect on purchase decision. 5. consumer ethnocentrism has a positive effect on purchase decision with purchase intention as intervening variable. 6. brand image has a positive effect on purchase decision with purchase intention as intervening variable. 7. perceived quality has a positive effect on purchase decision with purchase intention as intervening variable. implication empirical implication as empirical research, the results of this study can be used by the eiger management as a consideration to improve their marketing strategy by improve consumer ethocentrism, brand image, perceived quality, purchase intention so that it is expected to increase the purchase decision of eiger product . there are several ways that the company can do to increase the purchase decision, as follow : a. improve consumer ethnocetris eiger products, by campaigning to love local products and highlight that eiger is a product of indonesia with improving consumer ethnocentrsime,should be able to convince to the consumer that, only those product that are unavailable should be imported.purchase foreign product, it puts citizen out of job.true citizen of indonesia should always buy domestic products. we should purchase product manufactured in indonesia instead of letting other countries get rich of us.citizen of indonesia should not buy foreign products because this hurts the economy and causes the unemployment. we should buy the other countries only those product that we cannot obtain within our country. indonesia consumer who purchase from other country are responsible for putting their fellow citizens out of work . then consumers will be more aware of the importance of buying local products. b. improve brand image for easy recognition by consumers, things that need to be improved like brand has good quality. brand has better characteristics than competitors.brand is a good brand. brand is one of the best brands in the industry. when eiger products have the best and best impression among competitors so that consumers will be easily interested and decided to make a purchase. c. improve perceived quality, especially in terms of, overall quality, functionality reliability, durability. by improving the quality, it will be the best product among similar products so that consumers make purchase decision of eiger products. theoritical implication refers to the limitations of this study, further research need to choose and add the number of respondents that in practically can be implemented the probability sampling method, needs to consider using the other methods of data collection, such as interview and observation. further research also can extend the studies to incorporate the other independent, mediator or moderator variables and develop wider object to 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(1998). consumer perceptoion of price, quality and value means-end model and synthesis of evidence, journal of marketing journal of accounting, management, and economics vol. 19, no. 1, 2017, pp. 34-43 published by faculty of economics and business universitas jenderal soedirman published online on january 9, 2017 in http://jos.unsoed.ac.id/index.php/jame  correspondence to : 1universitas jenderal soedirman, indonesia. e-mail: dyike.adella.ramdhani-2017@feb.unair.ac.id received: november 16, 2016 revised: november 23, 2016 accepted: december 21, 2016 introduction definition of foreign exchange in relation to foreign trade transactions refers to regulation no. 16 in 1970 which is known two common types of foreign exchange, namely general foreign exchange and credit foreign exchange. the general foreign exchange, according to law no. 32/1964 means bank balances in foreign exchange and foreign banknotes (non-coin) that there is a note on the official exchange rate of bank indonesia. foreign exchange reserve will be used as the medium of payment between the countries. indonesia is a developing country where the state is doing a lot of development in all fields to achieve a just and prosperous society. to perform such development, it requires significant funding. funding is obtained from the foreign exchange reserves that can be obtained from trade activities among the countries where a country has its limitations and the scarcity of resources. if a country is not able to meet their needs then the country will import goods to meet their needs and the country that supplies of certain goods over the other country in need will tend to export the goods and will be written in the balance of payment balance of payments is a record of financial flows that shows the value of trade transactions and the flow of funds conducted among a country to another in a given year. in the balance of payment there is a deficit or surplus, so if there is a deficit in the balance of payment, one of the solutions to solve the problem is to increase the foreign exchange reserve of tourism. according to mill(2000), tourism contributes for the collection of foreign currency (foreign exchange), increases income and employment opportunities, improves the structure of the economy and encourages the development of small businesses. tourism development can improve state foreign exchange. the tourism sector provides an opportunity for movement of various economic activities, the tourists who visit the country bringing foreign exchange to the country of destination. with the exchange, the state will obtain development analysis of determinants the foreign exchange earnings of tourism sector in indonesia dyike adella ramdhani, dedi supriadi, barokatuminalloh universitas jenderal soedirman, indonesia abstract this research aims to analyze determinants of the number of foreign tourist, average foreign tourist expenditure, average length of stay foreign tourist, and dollar exchange rate against rupiah on foreign exchange earnings of tourism sector in indonesia 2009 – 2013 periods. the data is secondary from indonesia statistical agency, bank of indonesia, ministry of tourism and creative economy, articles, journal, and result of previous researches. this research uses panel data regression analysis. the result shows that the number of foreign tourist, average foreign tourist expenditure, average length of stay foreign tourist and dollar exchange rate against rupiah are giving positive effect on foreign exchange earnings of tourism sector in indonesia 2009 – 2013 periods. average length of stay foreign tourist is a variable that mostly affecting on open foreign exchange earnings in indonesia 2009 – 2013 periods. based on the result, the government is targeting foreign tourist arrivals to indonesia for foreign tourists bringing foreign currency so that the rupiah demand will rise and increase tourism foreign exchange. government, investors and communities leveraging existing infrastructure so that the average length of stay of foreign tourists continues to increase so enhancing tourism foreign exchange. stability of rupiah should always be maintained. keywords foreign exchange earnings of tourism; the number of foreign tourist; average foreign tourist expenditure; average length of stay foreign tourist; dollar exchange rate against rupiah journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 34-43 35 funds to boost the economy. but, on the other hand, it often appears the problem of the low tourism services, low investment, security and infrastructure unpreparedness. these issues must be anticipated early so as not to cause long term harm. indonesia is developing country that has the potential to advance the role of tourism sector in improving its economy. it can be proved that the contribution of tourism sector that is on number 4 can be seen in the following table. table 1 foreign exchange reserves indonesia (period 2009-2013) commodities foreign exchange earnings of tourism (million us dollar) 2009 2010 2011 2012 2013 oil & gas 19,018 28,039 41,447 36,977 32,633 coal 13,817 18,499 27,221 26,116 24,501 palm oil 10,367 13,468 17,261 18,845 15,839 tourism 6,289 7,602 8,554 9,180 10,054 source: ministry of tourism and creative economy indonesia is a country with abundant natural resources and cultural diversity that attract foreign tourists to visit, but compared with other asian countries, indonesia tourism foreign exchange are included in the low category that shown in table 2. table 2 comparison of asia tourism foreign exchange (in millions of us dollars) ranked country 2011 2012 2013 1 china 48,646 50,028 51,664 2 thailand 37,284 33,826 42,080 hong kong 38,455 33,047 38,940 3 malaysia 19,656 20,250 21,018 4 singapore 18,086 19,023 18,953 5 india 17,707 17,971 18,397 6 japan 10,966 14,576 14,934 7 south korea 12,476 13,429 14,272 8 taiwan 11,065 11,770 12,677 9 indonesia 8,554 9,121 10,545 10 vietnam 5,710 6,830 7,503 source:unwto,2014, the asean secretariat; january 2015 table 2 shows that indonesia is on the 9th after taiwan and can only exceed vietnam in the number of foreign tourism. when compared to other asian countries such as malaysia, singapore, taiwan and thailand that the natural resources and the richness of indonesian culture as well as the total areas of indonesia is much more but the large indonesia foreign exchange generated from tourism is lower than other asian countries. the tourism sector can grow more significant to the advancement of the indonesian economy. tourism can also be environmentally friendly sector leading to the development of innovative and interesting public and private capital to flow into the path of low carbon, resource efficient. more than just an important foreign exchange earner. but, in fact the developing tourism like infrastructure, transportation, investment are not enough to achieve the foreign exchange earning target of 2 trillion usd in 2016. problem formulation based on the existing problems, foreign exchange earnings of tourism in indonesia is very interesting to study. this is because indonesia, as one of the larger countries in asia with abundant of tourism resorts, but the number of foreign exchange earnings generated from tourism is lower than of other asian countries for only 10,054 billion us$ and the 9thin asia. therefore, indonesia must increase the number of foreign tourists visiting indonesia. as more tourists come, the more indonesia earns foreign exchange besides improving service quality and investments aimed to allow tourists having a longer traveling. this is because the longer the tourists to stay in the tourist areas, their continue spending will increase so as to increase foreign exchange. therefore, the aim of this study is to determine the role of journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 34-43 36 tourism to the state revenue in the form of foreign exchange used for the construction of the country's economy. indonesia foreign tourist in the period from 2009 to 2013 had passed because there were affecting factors hampered. so, the problems formulation is: simultaneously, number of foreign tourists, average foreign tourist spending, average length to stay of foreign tourists, and rupiah exchange rate against the dollar affecting the foreign exchange earnings of tourism? which is the sector that mostly affecting the foreign exchange earnings? research objective 1. to determine the effects of foreign tourists number, average foreign tourist spending, average length to stay of foreign tourists, rupiah exchange rate against dollar on tourism foreign exchange earnings in indonesia. 2. to find out what is the most influential variable among foreign tourists number, average foreign tourist spending, average length to stay of foreign tourists, rupiah exchange rate against dollar on tourism foreign exchange earnings. research benefit 1. for author as a means to apply the theories that have been obtained in the class, as a means to add insight and knowledge to develop an understanding, and a concrete manifestation of academic work in order to meet one of the requirements for a degree at faculty of economics and business university of jenderal soedirman. 2. for the faculty this study is expected to increase the completeness of the results of student researches and as information that can be used as a reference for other researchers. 3. for government to provide input in the development of the tourism sector in order to increase foreign exchange earnings. 4. for employers this study is expected to provide valuable input for entrepreneurs to improve their business performance. framework of thinking figure 1. scheme of framework thinking literature review and hypotheses hypotheses used in this study are: 1. number of foreign tourists, average foreign tourist spending, average length to stay of foreign tourists, rupiah exchange rate against the dollar affects foreign exchange earnings. 2. number of foreign tourist’s variable contributes the most significant influence on the tourism foreign exchange earnings. methods research methods the method used is descriptive analysis based on library research supported by quantitative analysis using secondary data. secondary data is data obtained directly through reports results of an investigation. research object research objects are four variables affecting the foreign exchange earnings of tourism sector in indonesia during 2009 – 2013 period. the four variables considerate are number of foreign tourists coming to indonesia, average expenditure of foreign tourists, average length to stay of foreign average expenditure of foreign tourst (x2) number of foreign tourist (x1) average length of stay of foreign tourist (x3) tourism foreign exchange earnings (y) rupiah exchange rate against us dollar (x4) journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 34-43 37 tourists, and the rupiah exchange rate against the us dollar. type and sources data this study uses secondary data in the forms of annual reports that include: the number of foreign tourists coming to indonesia, average expenditure of foreign tourists in indonesia, average length to stay of foreign tourists in indonesia, and the rupiah exchange rate against the us dollar. the data are time series in a period of 5 years, i.e. from 2009 to 2013, obtained from the ministry of tourism and creative economy, bank indonesia (bi) articles, journals and the results of previous researches. conceptual definition a. the number of tourists it is generally agreed that the definition for tourists according to the league of nations in 1937 is any person who visits a country, apart from the usual state he/she lived for a period of at least 24 hours (mill, 2000). b. the average expenditure tourists. the average tourist expenditure is amount of money spent by foreign tourists during they stay in indonesia in one day and in one visit (bps, 2015) . c. the average length of stay of tourists the average length of stay is the length of foreign tourists visiting indonesia in one visit, the average length to stay of foreign tourists in the country of residence is derived from the passenger exit survey (pes). for example, the average length of stay of foreign tourists in may 2010 was 2.66 days. it means that on average, any foreign tourists staying in indonesia is about 3 days(bps, 2015). d. exchange rate exchange rate is the number or the domestic currency price of foreign currency. the exchange rate is maintained the same in all markets through arbitration. foreign exchange arbitrage is purchasing the foreign currency when its price is low and selling when the price is high. an increase in the exchange rate is called depreciation or impairment of domestic currency against foreign currencies. a decrease in the so called exchange rate appreciation, or an increase in the value of domestic currency. because a country's currency can be depreciated against some foreign currencies and appreciation for others it can usually be counted an effective exchange rate. effective exchange rate is the weighted average of the exchange rates of a country (salvatore, 1994). operational definition a. number of tourists the number of tourists is the number of foreign tourists visiting indonesia during the period of 2009-2013. b. the average expenditure of tourists this variable measures the average of every foreign tourist spending per visit to indonesia, measured in usd. c. the average length to stay of tourists this variable is calculated based on the average length to stay of tourists, measured by day. d. exchange rate exchange rate in the study period of 20092013 was the price of the currency of a country assessed in the currency of another country. this study uses the exchange rate of the usd against the indonesian rupiah or idr. the data used is the average of the middle rate of the idr against the usd with idr unit per year. data analysis technique the method used in this research is panel data regression: 𝑌𝑖𝑡 = 𝛽0 + 𝛽1𝑋1𝑖𝑡 + 𝛽2𝑋2𝑖𝑡 + 𝛽3𝑋3𝑖𝑡 + 𝛽4𝑋4𝑖𝑡𝜀𝑖𝑡....................................................(2.1) y=dev(jwm,rpw,rlt,idr)...........................(1) panel data regression methods comprises of : a. common effects the common effects model is simplest version of panel data estimation, the period model, just pile up all the total observation to estimate a sizeable regression. in the panel data context, the population average model under the assumption that any hidden heterogeneity (individually or uniqueness) has been averaged out. b. fixed effects the term fixed effects given to the model is under the reason that different intercept of each subject does not change over time, called time invariant, with the assumption that coefficient (slope) of independent variable is the same for each individual. c. random effects random effects model provides a way to solve the matter through error terms called journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 34-43 38 error components model. this model could accommodate the differential intercept comprised in the fixed effects model by constructing an overall intercept to represent the average value of all intercepts (cross section). d. chow test chow test is a test model selection to choose a model common effect or fixed effect that is the most appropriately used to test the assumptions of classical and statistical tests. e. lagrange multiplier test (lm) lm test is used to determine whether the model of random effect is better than the model common effect. f. hausman test hausman test is used to choose between the models of fixed effect or random effect. g. classic assumption test 1. multicollinearity 2. heteroscedastisity and autocorrelation h. statistic test 1. f test 2. coefficient of determination 3. t test. i. elasticity test elasticity test is used to determine the effect of the most significant independent variable on the dependent variable. elasticity test is done by looking at the value of the coefficient of elasticity of each variable. results and discussion panel data regression common effect to make easy the estimation, this research used eviews 6 program with analysis panel data regression by combining these data without seeing the difference between the time and the individual. this data do not use panel data methods with common effect because this research does not show dimension between the time and the region, but combining these data without seeing the difference between the time and the individual. fixed effect the results of panel data regression model of fixed effect of the 36 countries that contribute to the foreign exchange earnings of tourism in indonesia with foreign tourist as the dependent variable and the number of foreign tourists, the average spending foreign tourists, the average length to stay of foreign tourists and the rupiah exchange rate against the dollar as the independent variables can be explained by the regression model output and the equation in table 3. table 3. output test panel data regression results fixed effect variable coefficient std.error t-statistic prob. ttable α =5% c -8244.809 1708.470 -4.825844 0.0000 1.97 rlt 0.635919 0.296178 2.147084 0.0335 jwm 0.080731 0.008374 9.640784 0.0000 idr 0.572950 0.149193 3.840315 0.0002 rpw 0.017472 0.002221 7.865748 0.0000 source : output eviews 6, data is processed f statistic = 666.08 f table = 2.42 r2 = 0.99 adj = 0.98 n = 180 α = 0.05 𝑌 = −8244.80 + 0.63𝑋1 − 0.08𝑋2 + 0.57𝑋3 − 0.02𝑋4 + 𝑒 (1708.47)(0.29)(0.008)(0.14)(0.002) where, y = dev (tourism exchange) x1 = rlt (average length of stay tourists) x2 = jwm (number of tourists) x3 = idr (the exchange rate against the dollar) x4 = rpw (average expenditure tourists) e = error random effect in this research, the estimation using random effect model could not be proceed as the program the eviews6 rejected the amount of panel data in journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 34-43 39 this research which comprise more times series data than cross section. the random effect result will not be presented as well. chow test in this study, test chow is done by the program eviews 6 with the results of the test chow is significant if the probability of chow <0.05. this means that the model fixed effect is better than the model random effect that are shown in table 4. table 4 output test panel data regression results chow effects test statistic d.f prob cross-section f 84.665910 (35,140) 0.000 source : output eviews 6, data is processed probability of chow test above is less than 0.05.meant, the selection of test models in this study uses a fixed effect to determine the classical assumption test and statistical test. classic assumption test multicollinearity in a panel data regression model, the factors affecting the foreign exchange earnings of tourism sector in indonesia can be explained relevance of each variable in the table 5. multicollinearity detection is to see r squared of no more than 0.8, and the variables in this study are declared free from multicollinearity. autocorrelation and heteroscedasticity test to avoid heteroscedasticity on panel data, it can be resolved by selecting a white heteroscedasticity consistent covariance method when making estimates or neweywest. this is the standard error correction method to avoid the necessity of heteroscedasticity test. to avoid autocorrelation, this uses autocorrelation consistent covariance matrix methods. this is a standard error correction method to avoid the necessity of autocorrelation test(widarjono,2009). table 5 output test panel data regression results multicollinearity variable independent r square explanation relationship of average length of stay of tourists with other variables 0.144203 free multicollinearity the number of tourists relationship with other varibales 0.102193 free multicollinearity relations rupiah exchange rate against the dollar with other variables 0.003143 free multicollinearity relations average tourists expenditure with other varibales 0.150171 free multicollinearity source : output eviews 6, data is processed statistical test f test based on calculations by eviews 6, it is obtained f statistic of 666.78 and f table with degrees of confidence of 95% (α = 5%) of 2,42. thus, the value of f statistic > f table. adjusted r square based on calculations by eviews 6, the value of coefficient determination (r2)is 0.99. and the value of adjusted is 0.98. t test t test is used to measure how far the influence of each variable partially/individually in explaining variations dependent and independent variables. by using 95% confidence level (α = 5%), it is obtained t table of 1.97 and – t table of -1.97. if using α = 5%and if the probability is less than 0.05 which means that there is no significant. journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 34-43 40 economic analysis the influence of number of tourists on foreign exchange earnings this research notes that the number of tourists has positive influence on the foreign exchange earnings of tourism from 36 countries that came to indonesia with a coefficient of 0:08.this shows that every 1 percent increase in the number of tourists, it will lead to increase foreign exchange earnings by 0:08 percent. the variable number of tourists has a 0.0000 probability value <0.05 by t statistic value of 9.64 and 1.96 t table. the t statistic> t table, so that the number of tourists can be summed up with positive and significant impact on foreign exchange earnings of tourism of indonesia in 2009-2013. the results are consistent with the findings of prasanna perera lalith welgamage (2015) and the titah jati pratitis (2013). because the research result shows that the number of tourists on an international scale affects the foreign exchange earnings in line with the hypothesis tested, then the research hypothesis is accepted. this means that the number of foreign tourists visiting lifts up foreign exchange earnings of tourism in indonesia. this is because tourists coming to indonesia to bring foreign exchange in the form of foreign currency used to purchase the rupiah. so, demand increases and the rupiah is strengthened. as the more tourists carrying foreign currencies, the more the foreign exchange earned. the influence of average length to stay on foreign exchange earnings this research notes that the tourist average length to stay gives positive effect on the foreign exchange earnings of tourism from 36 countries who came to indonesia with a coefficient of 0.63. this shows that every 1 percent increase in tourists’ average length of stay will lead to an increase in foreign exchange earnings for 0.63 percent. the average variable tourists having long stay 0.0000 probability value <0.05 by t statistic is 2.14 and t table is 1.96. the t statistic > t table. so, it can be concluded that the average length to tourist stay gives positive and significant impact on foreign exchange earnings from tourism in indonesia during 2009-2013. the result of the research is in line with of syamsul huda (2008), which showed the average length of tourist stay gives positive and significant impact on foreign exchange earnings of tourism in indonesia. because the research shows that the average length of tourist to stay has positive and significant impact on foreign exchange earnings of tourism and it is in accordance with the hypothesis tested, then the research hypothesis is accepted. this means that the average length to stay of foreign tourists lifts up foreign exchange earnings of tourism in indonesia. this is because the longer the tourists stay the more tourist expenditures for everyday purposes. the government of indonesia should establish supporting facilities and infrastructures such as hotels, transportation, places to shop in order that tourists will stay longer in indonesia. the influence of rupiah exchange rate against dollar on foreign exchange earning this research notes that the rupiah exchange rate against the dollar has positive effect on tourism foreign exchange earnings from 36 countries who come to indonesia with a coefficient of 0.57. this shows that every 1 percent increase in the exchange rate against the dollar will lead to an increase in foreign exchange earnings of 12.57 percent. rupiah exchange rate against the dollar has a 0.0000 probability value <0.05 by t statistic value of 3.84 and t table of 1.96. the t statistic > t table. so, it can be concluded that rupiah exchange rate against dollar gives positive and significant impact on foreign exchange earnings of tourism in indonesia during 20092013. this is consistent with researches conducted by nani martha (2014), muhammad afdi nizar (2012), and syamsul huda (2008) which showed the rupiah exchange rate against the dollar has a positive and significant impact on foreign exchange earnings of tourism. because this research shows that the rupiah exchange rate against the dollar has a positive and significant impact on foreign exchange earnings of tourism and it is in accordance with the hypothesis tested, then the research hypothesis is accepted. this means that the rupiah exchange rate against the dollar lifts up foreign exchange earnings of tourism in indonesia. if the rupiah demand rises because the tourists come to travel to indonesia, rupiah requires the value of the dollar to go down. so, the foreign tourism will rise as well. journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 34-43 41 the influence of tourist average expenditure on foreign exchange earnings this research notes that the average tourist expenditure has positive influence on the foreign exchange earnings of tourism from 36 countries who come to indonesia with a coefficient of 0.01. this shows that every 1 percent increase in the average tourist expenditure would result in an increase in revenue of 0.01 percent. average tourist expenditure has a 0.0000 probability value <0.05 by t statistic value is 7.86 and t table is 1.96. the t statistic > t table. so, it can be concluded the average tourist expenditure gives significant positive effect on the revenue of tourism in indonesia during 20092013. this is consistent with research conducted by syamsul huda (2008), which showed the level of the average tourist expenditure has significant and positive effect on tourism foreign exchange earnings. because this research shows that the average tourist expenditure has significant and positive effect on the revenue of tourism, and it is in accordance with the hypothesis tested, then the research hypothesis is accepted. this means that the average foreign tourist spending increases foreign exchange earnings of tourism in indonesia. this is because the higher the rating, the higher foreign exchange earnings generated from tourism sector. the completeness of goods and services required by the tourists had pretty good views of the contribution of manufacturing to gdp indonesia. this can be seen in the table 13 that tourist spending increased from 2009 to 2013. elasticity test based on the table 6, it can be viewed the independent variable that has the greatest value. the variable coefficient having the most elastic is the variable of average length of stay of foreign tourists (rlt). it has the greatest coefficient value of 0.63 which means rlt variable is the variable that most elastic. table 6 output test panel data regression results elasticity variable coefficient rlt 0.635919 jwm 0.080731 idr 0.572950 rpw 0.017472 source : output eviwes 6, data is processed this means that the average length to stay of tourists is the most affecting the improvement of the foreign exchange earnings from tourism ector. this is because the longer the tourists stay, then spending in all sectors related to tourism will continue to increase as spending on hotel, needs to eat and drink, transportation, shopping and others. this is because the average length to stay of tourists has the most influence on foreign exchange earnings. conclusion a. number of foreign tourists, average foreign tourist spending, average length to stay of foreign tourists and rupiah exchange rate against the dollar are simultaneously giving positive effect on revenue of the tourism sector in indonesia b. the average length to stay of foreign tourists is a variable that mostly affecting the revenue. implication a. the government is targeting foreign tourist arrivals to indonesia for foreign tourists bringing foreign currency in order that the rupiah demand will rise and increase foreign exchange. the government, investors and communities should leverage the existing infrastructures, so that the average length to stay of foreign tourists continues may increase. in turn, it will enhance the foreign exchange. stability of rupiah should always be maintained, then the dollar will go down. so, it will increase foreign exchange generated from tourism sector. governments, investors and the public work together should improve the completeness of goods and services required by the tourists in order that the average tourist expenditure will rise. as a result, it will increase the tourism income. b. government increases all tourism-related sectors including transportation, restaurant, hotel/lodging and shopping in order that the journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 34-43 42 average length to stay of foreign tourists in indonesia rises and boosts the foreign tourism. references aktar, m.a, sadekin, m.n, dan saha, s.k. 2014. relationship between tourist arrival and foreign exchange earnings : the case for bangladesh. mediterranean journal of social sciences. vol 5 no 16. amalia, lia. 2007. ekonomi internasional. yogyakarta: graha ilmu. arbi, 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sobri. 2001. ekonomi internasional. yogyakarta: bpfe uii. halaman 129-131. spillane, james. 1993. ekonomi pariwisata (sejarah dan prospeknya).yogyakarta: penerbit kanisius. halaman 20-34. subekti, dwi. 2012. perekonomian terbuka. www.dwisubektisaba.wordpress.com. 08 agustus. accesed on 04 june 2015. sukirno, 2004. makroekonomi teori pengantar. jakarta: rajagrafindo persada. halaman 390-391. sunaryo, bambang. 2013. kebijakan pembangunan destinasi pariwisata konsep dan aplikasinya di indonesia. yogyakarta: penerbit gava media. http://www.bi.go.id/ journal of accounting, management, and economics, vol. 19, no.1, 2017, pp. 34-43 43 wahyudi, heri. 2012. pariwisata pengetasan kemiskinan dan mdgs. jurnal upbjj ut denpasar.volume 01 nomor 1. welgamage, prasanna perera lalith. 2015. tourism economics in sri lanka. international journal of business and social research mir centre for socio-economic research, usa. volume 05, issue 01, 2015. widarjono, agus. 2009. ekonometrika pengantar dan aplikasinya. yogyakarta : ekonosia. wuryandani, dewi. 2015. strategi mengatasi penurunan kinerja ekspor indonesia. info singkat pengkajian ekonomi dan kebijakan publik, sekertariat jenderal dpr ri. volume 7 nomor 12. yoeti, oka a. 1990. pemasaran pariwisata. angkasa : jakarta. correspondence to doddy.primayudia@gmail.com received: may, 2019 accepted: may, 2019 published: june, 2019 jurnal akuntansi, manajemen dan ekonomi vol. 21, no. 2, 2019, pp. 10 18 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction in an organization, information plays an essential role in helping managers to make decisions. employees who act as agents in agency theory will be happy and proud when reporting their successes to their principals in achieving their predetermined performance. on the other hand, employees also often cover up their mistakes, primarily if the performance that has been set from the organization cannot be achieved. this condition is in line with the concept of agency theory, where agents and principals share personal interests or self-interests. many factors can influence the desire of employees to share information, especially when the information is a failure caused by himself or his group, and one of the factors is culture. certain ethnicities may have characteristics that tend to be more closed and seem careful in providing information. they may feel embarrassed and depressed if their coworkers, especially supervisors, know if they made a mistake or failed. at present, the population in pontianak city is dominated by various ethnic groups, including, malays, chinese, and dayaks. pontianak city government does not differentiate between residents living in pontianak city based on ethnicity, so that data on the number of ethnic chinese residents is not available. however, according to susanty (2013), through data from the pontianak city central bureau of statistics in 2012, stated that the population in pontianak city was 655,834 people, and 31.8% were chinese. on the contrary, according to the data available in the regional development planning board of pontianak city (pontianak city bappeda), that the ethnic chinese who inhabited pontianak city was 18.81%. another on the wikipedia site (2015) which states that the population of ethnic chinese descent in the city of pontianak is as many as 190,485 people or around 33.20%. meanwhile, the tionghoa.info site which contained information about the development of the traditions and culture of chinese people in indonesia stated that the total ethnic chinese population in west kalimantan as a whole in 2010 was 358,451 people. this data comes from bps center in 2010, but the data did not specify the number of ethnic chinese descendants in pontianak city. apart from the limited data regarding the number of ethnic chinese in pontianak city, ethnic chinese descent can be said to be one of the ethnic groups that dominate the population in pontianak city. this condition is because, in the 18th century, the sultans of the kingdom in pontianak city brought in workers from china to mine gold and tin role of culture and acculturation on information sharing in aspect of behavioral accounting doddy primayudia1 1master of accounting, faculty of economics and business, universitas padjajaran, indonesia abstract information is a crucial point in order to helps managers in decision making. employees who acts as an agent on agency theory, will gladly report their achievement to their principal. on the other hand, employees tend to cover their faults, especially if the company’s targets are not achieved. there are many factors influencing the employees’ willingness to share the informations, prior to their faults or errors, and two of them are culture and the existence of the supervisor. this research uses experimental method and 2 × 2 factorial design to test the hypotheses. the sample in this research are low-acculturated tionghoa (tar) and highacculturated tionghoa (tar). after the research is done, it is come to conclusion that; employees’ cultural background and acculturation did affect their willingness in information sharing. this research also concluded that the presence of supervisor did not affect employees’ willingness in information sharing prior to their faults and errors.. keywords acculturation, behavioral accounting, culture, information sharing jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 10-18 (sutrisno, 2016). therefore, the role of cultural background will affect the behavior and mindset of employees. besides, the rich history of ethnic possessions that have coexisted with other ethnic groups such as malays and dayaks for three centuries in the city of pontianak will also affect the level of acculturation of employees. then, on the other hand, studies on the role of culture and acculturation on information sharing in behavioral accounting aspects of the dominant ethnic groups in pontianak have never been done. therefore, research on the role of culture and acculturation of employees on information sharing in behavioral accounting aspects needs to be done. why do employees tend to be reluctant to share information? in practice, organizations will find it challenging to convince their employees to be more open in sharing information. employees seem reluctant to share information. economic consequences, as well as profits and losses, seem to play a significant role in influencing employees' desire to share information. in the research conducted by chow (1999b) entitled "a case for extending management accounting coverage to managers" information acquisition process "states that although many participants care about the gap and adhere to ethics in their company, the feeling to protect themselves can still work has prevented them from sharing information about their mistakes. in agency science, employees feel no need to report failures or mistakes they did as long as they could cover up their mistakes, and their supervisors could not detect them. this behavior may be considered unethical and might be considered an act of fraud or fraud from an organizational point of view. however, if viewed from the perspective of the manager who acts in making decisions, the above actions might be considered rational when the reputation of the decision maker and organization is at stake. the existence of planning and control actions that are certain and absolute in an organization will hinder the process of information and information movement. in fact, on the other hand, the movement of this information is essential for organizations in the framework of benchmarking implementing value chain, networking, tqm, and organizational learning that will significantly help achieve organizational goals (belkaoui, 2002). therefore, to increase the willingness of employees to share information, one method is by eliminating the presence of supervisors. chow (1999a) recommends attracting or removing supervisors so that employees do not feel threatened, and will increase the desire of employees to share information. related literature in ethnic chinese descent following the results of previous studies, it is clear that employees in different countries will react differently in certain situations and conditions for sharing information. for example, residents in china tend to be reluctant to share information (chow, 1999a, and pillutla, 1998). employees in china will be more collective than anglo-australians and tend to be more willing to share information for the common good (hofstede, 1980). the attitude of employees in china is more likely to be carefully compared to the anglo-australian population because employees in china are ashamed to express failures in front of their coworkers. then, the conservative nature and the tendency to reject change also caused employees in hong kong to choose not to share information because they were afraid of the chaos that would occur if they helped their co-workers to hide their shame (pillutla, 1998). as explained in the previous paragraph, that people in different countries will react differently in their willingness to share information. in indonesia, various stereotypes and the negative and positive views of the ethnic chinese often arise. a stereotype about certain tribes arises due to the interaction of the experiences of individuals from other ethnicities (sandy, 2016). there is various literature that can provide information about stereotypes that are in ethnic chinese descent. in ethnic chinese, the community often considers them tenacious, diligent, diligent, intelligent, thrifty, timely, stingy (ariasih, 2016). then "stingy" stereotypes on ethnic chinese as described by javanese can be due to differences in values and habits in everyday life (ariasih, 2016). families of ethnic chinese descent may often teach their children to have frugality that causes them to take into account their expenses, and this is what javanese ethnic groups might describe in ariasih's (2016) study as stingy. following the results of a study conducted by juditha (2015) concerning the stereotypes jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 10-18 of ethnic chinese descendants and ethnic bugis makassar, it is clear that chinese citizens were closed and preserved the culture of their ancestors. furthermore, they tend to close themselves to avoid communication with unwanted people. one example of this form of avoidance is to build a residence that is closed, and as if it does not want to "come into contact" directly with the outside world, they even send their children to school their children at the ethnicspecific private school. chow (1999a) states that employees in china face various complicated factors in making decisions to disclose information. furthermore, employees in china faced three barriers in disclosing information, including the desire to avoid feelings of shame towards the group, the desire to avoid feeling ashamed of the supervisor, and finally the assumption that the supervisor had the power and the right to make decisions. chow's research proves that even though the supervisor's presence is absent, the fear of being humiliated by coworkers still exists. from the history we know, ethnic chinese came and settled in pontianak city from china. they have been in the city of pontianak for hundreds of years, and acculturation with indigenous pontianak ethnic groups such as malays and dayaks and immigrant ethnic groups such as javanese, bugis, and sundanese is possible. if connected with existing stereotypes about indigenous ethnicities in pontianak city such as malays and dayaks, who have interacted with ethnic chinese for a long time, there is a high probability that ethnic chinese will adopt or absorb the thoughts and behavior of ethnic malays and dayaks. for example, sandy (2016) stated that ethnic malays have lazy stereotypes and casual work; these stereotypes might unwittingly influence ethnic chinese ethnic behavior and mindset. acculturation and information sharing salter (2001) explained that although a migrant (immigrant) who had never interacted with other cultures at all, various literature in the field of marketing and social science stated that the behavior of an immigrant would change over time as they interacted with the surrounding environment, this process was called acculturation (salter, 2001). then it was also explained that immigrants held the norms and values of their culture and the culture of their new environment. chinese ethnicity has lived in pontianak city for hundreds of years and has become a legitimate resident of the republic of indonesia. they started from immigrants brought to the city of pontianak by sultan syarif abdurrahman who at that time was king in pontianak. the process of acculturation of ethnic chinese with other ethnicities has occurred quite well. for example, the chinese language education department appears on campus and schools, which are the media for ethnic chinese and ethnic malays (amanah, 2014). acculturation affects other cultural elements such as ornaments, paintings, use of chinese and malay names in chinese language education students, the use of hanzi or chinese characters in thesis and assignments, and extracurricular activities outside the classroom. from the research that has been conducted by amanah (2014), the authors believe that the work environment will influence one's mindset and influence the level of their acculturation. if someone works in an environment dominated by a particular ethnicity, the person will also absorb or adopt the mindset and behavior of the ethnic group that becomes dominant in his work environment. then, quoted from belkaoui's book behavioral management accounting in 2002, which states that the movement of information can be formal and informal. one formal form of information is through accounting information systems, which may not be significantly influenced by one's culture. while in informal forms such as personal communication during meetings and conventions, direct observation, and others will be very likely influenced by the level of acculturation and culture of a person. research conducted by chow (1999a), states that there is a high power distance in chinese culture, making information difficult to move. ethnic chinese descent from the plains of china may still hold the culture of power distance as the culture of their ancestors. meanwhile, interactions that have taken place between ethnic groups in the city of pontianak will also lead to acculturation in ethnic chinese descent. hypothesis based on the theories described above, the hypotheses of this study are: jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 10-18 h1. the level of acculturation significantly affects information sharing in behavioral accounting aspects of ethnic chinese. h2. the existence of supervisors has a significant effect on information sharing in behavioral accounting aspects of ethnic chinese in pontianak city. research methods research design the study was designed to focus on disclosing information about mistakes made by employees of ethnic pontianak chinese descent, as well as the effects of acculturation on employees of ethnic chinese descent. therefore, the research method used is an experimental method with a completely randomized design (crd). the design with a 2 × 2 factorial pattern applies in this study to test the existing hypotheses. then each treatment has three replications, and the repetition is a workplace (a private organization) in the city of pontianak. the first factor was the level of acculturation of ethnic chinese descent, which was divided into two categories, namely ethnic chinese with high acculturation (tat) and ethnic chinese with low acculturation (tar). the second factor is the existence of supervisors which are divided into two categories, namely; there is a supervisor (as) and no supervisor (ts). for more details, the treatment design used in this study can be seen in table 1 below. table 1. factorial design treatment aculturation chinese ethnic with low acculturation (tar) chinese ethnic with high acculturation (tat) s u p e rv is o r e x is te n c e supervisor (as) taras tatas no supervisor (ts) tarts tatts taras = chinese ethnicity with low acculturation when there is a supervisor, tarts = chinese ethnicity with low acculturation when there is no supervisor, tatas = chinese ethnic with high acculturation when there is a supervisor, tatts = chinese ethnic with high acculturation when there is no supervisor participant participants consisted of 60 employees in private organizations from ethnic chinese descent in the city of pontianak. employees are chosen as participants because they are more targeted, and are expected to describe the actual conditions, following the experimental material. while the city of pontianak was chosen because the city of pontianak is one of the cities that has the most ethnic chinese population in indonesia. dependent variable the variable is bound to measure the level of desire of each participant in expressing the mistakes they have made. participants also showed their level of desire to express their mistakes into five scales (scoring method), which can be seen in the data analysis subchapter. free variable the independent variable of this study is the level of acculturation and the presence or absence of a supervisor. the author distinguishes the sample into chinese based on their self-identification. this method has filtered other ethnic groups besides ethnic chinese. furthermore, ethnic chinese with low acculturation (tar), and ethnic chinese with high acculturation (tat). the supervisor's role in preventing and increasing participants' desire to share information is manipulated by eliminating the supervisor's presence in decision number two. for decision number one, participants are informed that the supervisor will also attend meetings with managers from other companies (the condition of the supervisor is present). while the decision number two supervisor did not attend the meeting (supervisor's condition was not present). stages of research this experimental research was conducted directly and was attended by all participants following the research criteria. in the initial stage, researchers spread a simple questionnaire to be able to categorize employees and measure the level of acculturation, namely tat (ethnic chinese with high acculturation) and tar (ethnic chinese with low acculturation). this questionnaire consists of three essential points, which are then broken down into four questions. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 10-18 tabel 2 rancangan kuesioner sederhana no. questionnaire item answer based on self-identification 1. do you admit that you are of ethnic chinese descent? = 60 poin based on workplace 2. are employees in your workplace dominated by ethnic chinese? = 20 poin based on residence 3. is your neighborhood dominated by ethnic chinese? = 15 poin 4. is your residence around jl. gajahmada and jl. tanjungpura? = 5 poin (1) the first question is given the highest score of 60 because self-identification is the essential point to determine the ethnicity of each. (2) the second question is given a value of 20 because the experimental material given later has a background in a work environment, where ethnicity that dominates the work environment gives a different response to each. (3) the third question is given a value of 15, and this is also because the background of the experimental material provided is in the work environment. so the residence factor does not significantly influence individual responses if their work environment is dominated by certain ethnic groups. (4) the last question is given the lowest value of 5 points. this is because, in pontianak city itself, there are many complexes or alleys which are dominated by ethnic chinese, although not as much as in gajahmada and tanjungpura roads. in order to maintain data validity, the sum of the values in table 2 will then be used to classify participants. tabel 3 questionnaire design point category 0-59 non chinese ethnic 60-79 chinese ethnic with high acculturation (tat) 80-100 chinese ethnic with low acculturation (tar) in the second stage, participants who were known and classified as the level of acculturation (tar and tat), were divided into two rooms. tables and chairs in the two rooms used by participants are arranged as if they were meeting. the difference is, in the first room (room a) the supervisor is present, while in the second room (room b), the supervisor is not present. this is done in the hope of giving mental stress and describing the actual situation as in the experimental material. the experimental material used in this study was adapted from the research conducted by chow et al. (1999a). participants were asked to read experimental material carefully and play their role as if they were a manager in a factory. this guidebook also contains an explanation that there are no "right" and "incorrect" answers, but rather which answers describe their true feelings and beliefs. experimental materials consist of problem questions and one question. for the problem, participants were given information about their promotion as department managers, and the decisions they had to make in order to procure new technology. then the participants were told that after the procurement of technology was approved, they only realized that they had been wrong in calculating the costs of the new technology. after reviewing and recalculating the costs, the best choice is to keep using the old technology. furthermore, participants were told that the company oversaw their performance extensively but did not record the actual costs and revenues of personal projects. this resulted in them being able to work harder in saving costs and reducing income from other projects so that the costs of the latest technology could be covered. participants were then informed that they had just been invited to attend a meeting with managers from other factories who were also considering using the latest technology. the latest technology to be used by other factories also has similarities with the technology that participants have just used at the factory, and it turns out that managers from other factories also made mistakes in calculating the cost of this new technology. from the problem problems above, participants were asked to make a decision that was different between room a (which was a supervisor), and room b (which there was no supervisor). for this decision, jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 10-18 participants must demonstrate the level of their desire to disclose the mistakes participants have made when calculating the cost of procuring the latest technology so that managers from other companies can make better decisions. in the decision of room a, participants will be informed that their supervisor will also be present at the meeting. then in the decision of room b, participants will be informed that their supervisor will not be present at the meeting, and there is only a little possibility for the supervisor to know what the participant has done wrong. hypothesis testing the dependent variable is made quantitatively by giving a score (scoring method) starting from: 1 = definitely will not be disclosed 2 = there is an intention to disclose but not disclosed 3 = doubt 4 = disclosed 5 = clearly and completely disclosed. internal validity internal validity in research with experimental methods is essential. validity must be maintained so that the data to be obtained is unbiased and reliable or reliable. in order to maintain internal validity, the authors did several things that were developed to fit the research carried out and some adapted from the rosdini and ritchi (2017) research. (1) samples were chosen randomly and were at the same level (employees). (2 ) prevention of maturity is done by shortening the duration of the experiment as quickly as possible so that participants are not bored. (3) experiments are carried out in the morning when new participants arrive at work, and this is done to prevent history. (4), participants are informed before conducting experiments on the duration of the experiment as well as what things will be done during the experiment, participants are also asked for their commitment to follow the established procedures, this is done to prevent the occurrence of mortality. (5) a simple questionnaire is given to participants so that participants can be categorized into tat (ethnic chinese with high acculturation) and tar (ethnic chinese with low acculturation). before the actual experiments were carried out, the authors also tested five employees outside the participants. in addition to maintaining internal validity, this serves to find out how long participants can understand and answer questions on the experimental material, and help the author to set the duration of the experiment. results and discussion overview of research sites in this study, the method of social experimentation was carried out in three private companies in west kalimantan province. tc company engaged in logistics and located at jalan teuku umar, komplek pontianak mall, kota pontianak. ta company, which is engaged in selling automotive products, is located at supadio arterial road, no.8. the m company is also engaged in the sale of automotive products, which are also located on supadio arterial road. the study was conducted in mid-march 2019 until the beginning of april 2019. tc companies were selected by the author as one of the research locations because the information was obtained that the number of employees from ethnic chinese descent, from 37 employees in tc companies, 36 employees from ethnic descendants chinese. this is considered very suitable for one of the criteria and needs of this research, which requires ethnic chinese domination in a work environment. next, the ta and m companies were chosen because they were considered right on target because, in these two companies, ethnic malays and dayaks were more dominant than ethnic chinese. in ta companies, out of 68 employees, 11 employees are of ethnic chinese descent. then at company m, 22 employees came from ethnic chinese descent from the total number of employees of 51 people. the number of participants who participated in this social experiment numbered 60 people regardless of sex. in company t, 30 tar participants participated. participants were screened using a simple questionnaire in the previous chapter to eliminate the mix of tat participants and those who were not ethnic chinese. while for ta and m companies, 30 participants were also categorized into tat. participants in the ta and m companies have also been screened using a simple questionnaire to eliminate tar participants and those who are not ethnic chinese. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 10-18 ethnic elimination as explained in the research method chapter, participants were first given a simple questionnaire containing several questions, which were then used to categorize participants into tar, tat, and non-ethnic chinese descendants. participants who scored 0-59 (not ethnic chinese) were eliminated because they did not reach the criteria for becoming participants. at the time of the field, there were no participants who scored below 59. then participants who scored 60-79 would be included in the tat category, and the tat participants were 30 people. meanwhile, participants who scored 80-100 were categorized into tar, which also numbered 30 people. calculation of scores to determine the category of participants does not use software (software) such as spss or the like that is usually used to process data. this ethnic determinant questionnaire is simple and is calculated only by using a calculator machine. this calculation is to determine ethnicity is also relatively easy, and only takes a few minutes and has been checked repeatedly to maintain the validity of the data. effect of level of acculturation and existence of supervisor according to the results of the liliefors normality test, it appears that the data is normally distributed (l hit <l tab). for more details, the results of the liliefors normality test can be seen on the appendix page. furthermore, according to the bartlett variance test results, it also appears that the data is homogeneous (x2hit <x2 tab). the level of acculturation of participants had a significant effect (p <0.05) in their desire to share information about the mistakes they made (information sharing) whereas the presence of supervisors did not have a significant effect (p> 0.05) on the participants' desire to share information. likewise, the interaction between the level of acculturation and the presence of supervisors had no significant effect (p> 0.05) on the participants' desire to share information. following the results of duncan's advanced test analysis, the treatment which is the interaction between low acculturation levels with the presence of supervisors (p1 = tar and as) was not significantly different (p> 0.05) with low acculturation interaction treatments that had no supervisor (p2 = tar and ts). however, the result significantly different (p, 0.05) with the interaction treatment between high acculturation levels with the presence of supervisors (p3 = tat and us). then between treatments which are interactions between high acculturation levels that have supervisors (p3 = tat and as) with high acculturation levels that no supervisors (p4 = tat and ts) are not significantly different (p> 0.05) in terms of information sharing ( table 4.1). tabel 4. duncan test treatment p1 (tar dan as) p2 (tar dan ts) p3 (tat dan as) p4 (tat dan ts) 3,67 ±0,62 a 3,73 ±0,46 a 4,60 ±0,51 b 4,73 ±0,46 b remarks: the numbers followed by the same letter on the same line show no significant differences between treatments (p> 0.05). after a descriptive analysis was carried out through data obtained from the questionnaire, ethnic acculturation of low chinese descent or tar tended to be more closed compared to ethnic chinese with high acculturation or tat. this is consistent with research conducted by salter (2001) which states that cla / chinese low acculturation (tar in this study) tends to be more closed compared to cha / chinese high acculturation (tat in this study). the tendency of tar to be more closed compared to tat may arise from the statement on experimental material which states the presence of managers from other companies. participants may assume that managers from other companies come from various ethnicities and backgrounds, which causes tar participants to appear closed compared to tat participants. this is in line with research in the field of communication conducted by juditha (2015), which states that ethnic chinese appear to be self-closing from other ethnic groups. meanwhile, the results of data analysis showed that the existence of supervisors did not significantly influence the level of acculturation of participants. this means that the desire of both tar and tat participants to share information about their mistakes is not affected by the presence of their supervisor. this contradicts what was stated by tinsley and pillutla (1998) and salter (2001), which states that the existence of supervisors influences the employee's desire to share information. to strengthen the evidence that the level of acculturation of participants did not affect jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 10-18 the existence of supervisors, the authors conducted interviews directly with each of the resource persons from tar and tat participants randomly selected. from the results of these interviews, participants from tar gave answers that they preferred to report the mistakes they made to their supervisors even though the supervisor did not attend the meeting according to what was in the experimental material. consequences in the form of punishment are the main factors that are worried by the resource person if the supervisor is late to find out what happened. according to the experience experienced by the interviewees, supervisors, especially those from ethnic chinese descent, will be far more thorough and will re-examine the details of the work done by their subordinates. the resource person also stated that following the experience he had experienced, his supervisor would appreciate honesty in mistakes, and would provide solutions and directions to correct mistakes that had occurred. the same thing was expressed by informants who came from participants in the tat group, and the informant revealed that he was more worried about the consequences that would occur if the supervisor was late in knowing his mistakes. the informant prefers to consult with his supervisor about how to be able to correct his mistakes and bring the company to be more advanced. he further said that it would be better for him to report his mistakes to the supervisor, rather than having to cover up the mistake of using his income, which would result in reduced income. from the two opinions above, it shows that there is a tendency of ethnic chinese descendants who have experienced both high and low acculturation to be collective or concerned with common interests. this condition is in line with the research conducted by hofsetede (1980), which states that chinese employees are more open and concerned with common interests. the primary characteristics of employees in the hofstede (1980) study have similarities to the participants in this study, and this was caused by ethnic chinese who still retained the culture of their ancestors from china (juditha, 2015). the results of the data analysis above show that acculturation does indeed influence someone's desire to share information. the longer ethnic migrants coexist and interact with ethnicity who are native to an area, and the migrant ethnicity will slowly absorb the local culture and change its original culture (chow, 1999a). in this study, ethnic chinese tend to be open in contrast to the research conducted by salter. the results of the interview also showed that ethnic chinese tended to be open in sharing information even though the information contained mistakes made by participants. whereas in the presence of supervisors, the results of data analysis and interviews above show that the small tendency to lose of face or someone embarrassed to reveal errors as described in the chow study (1999a). conclusion based on the results of the research in the previous chapter, it can be concluded that: culture and acculturation influence a person's behavior and mindset to make organizational decisions. for example, an employee who is of ethnic chinese descent will report to his supervisor that there has been an error or error caused by him, and cause his company to suffer a loss. collectivist culture and the importance of shared interests were found in the sample in this study. then, the results of the study also show that the existence of a supervisor does not influence someone's desire to share information. the presence or absence of a supervisor, which should be a barrier for employees to express their wishes, was not found in this study. collective nature and a feeling of fear of the consequences faced by employees even if the supervisor will not know the participant's mistakes will trigger the desire of employees to share information. for further research, it can provide more accurate data by adding the gender of the participants and adding other ethnicities around to be used as a comparison. this is expected to enrich the information that raises cultural issues in behavioral accounting aspects. in this study, it was difficult to determine the right technique in measuring the degree of acculturation of participants. ethnic chinese have lived for hundreds of years in indonesia, and have a valid indonesian state residence. for that reason, further research is recommended to find participants who are foreign workers or immigrants. thus the technique of measuring the level of acculturation will be felt more targeted. if this research is only focused on providing information about errors and jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 2, 2019, 10-18 failures, further research is recommended to add the provision of positive information such as someone's openness in giving salary and promotion. the rise of sara issues that have developed lately has become one of the essential points that must be considered for the next researcher. studying culture that is a sample of research in depth, increasing literature, and mutual respect between cultures is a must thing to do in similar research. references amanah, n., bahari, y., & fatmawati. 2014. akulturasi budaya tionghoa dengan budaya melayu pada mahasiswa pendidikan bahasa mandarin fkip untan pontianak. jurnal pendidikan dan pembelajaran, volume 3(issue 6). ariasih, l., p., & gazali, h. (2016). stereotip antara etnis tionghoa dan etnis jawa pada siswa sma santa theresia. at-turas, volume 3. badan perencanaan pembangunan daerah kota pontianak. sosial budaya. retrieved from http://bappeda.pontianakkota.go.id/page/ sosial-budaya. belkaoui, a., r. 2002. behavioral management accounting. london: quorum books. chow, c., harrison, g., mckinnon, j., & wu, a. 1999a. cultural influences on information sharing in chinese and anglo-american organizations: an exploratory study chow, c., schulz, a., & wu, a. 1999b. a case for extending management accounting coverage to managers' information acquisition process hofstede, g., lonner, w., j., & berry, j., w. 1980. culture's consequences: international differences in work-related values. juditha, c. 2015. stereotip dan prasangka dalam konflik etnis tionghoa dan bugis makassar. jurnal ilmu komunikasi, 12(1). rosdini, d., & ritchi, h. 2017. pengaruh informasi kompetisi kritikal terhadap motivasi kompetensi. proceedings profesionalisme akuntan menuju sustainable business practice. salter, b., s., & schulz, a., k., d. 2001. examining the role of culture and acculturation in information sharing. elsevier, volume 8, 24 pages. sandy, n. 2016. stereotip melayu malas dan pengaruhnya pada etos kerja (studi deskriptif mengenai masyarakat melayu di desa nenassiam kecamatan medang deras kabupaten batubara). universitas negeri medan. susanty, l. 2013. marga lim di kota pontianak: sejarah dan peranan yayasan halim pontianak. repository maranatha. sutrisno, l. 2016. tionghoa di kalimantan barat. tinsley, c., h. & pillutla, m., m. 1998. negotiating in the united states and hongkong. tionghoa.info. 2016. berapa jumlah populasi etnis tionghoa di indonesia?. retrieved from https://www.tionghoa.info/berapajumlah-populasi-etnis-tionghoa-diindonesia/. journal of accounting management and economics vol. 19, no. 1, 2017, pp. 44-55 published by faculty of economics and business, universitas jenderal soedirman published online june 2 2017 in http://jos.unsoed.ac.id/index.php/jame correspondence to : rh26rizky@outlook.com  received: 14 january 2017 revised: 4 february 2017 accepted: 4 march 2017  introduction employees, as individuals, possess differences in behavior and experience. this gives unique contribution to employee behavior within the organization and how they work hard to build and maintain their social capital, which may become the reason why they typically do not engage in behaviors that may weaken or severe these vital social ties. it is only natural that employees, as human being, maintain their life and prosperity to the extent that they could keep themselves secured especially in terms of finance and social relationship. milliken, morrison, and hewlin (2003) suggested that employees do not want to risk looking bad, as this will reflect on their identity, their role and their overall connection to the organization. similar to them, organizations too struggling to develop their strategy to recruit the right man for the right place. according to effendy (1982:52), it is not only the organization needing the employee; individuals join to an organization because they expect the organization to provide what they need. in other words, in order these needs to be fulfilled by the organization employees will expect that they are to be helpful and beneficial to the organization. despite the expectation, in reality, grievances and grudges can often be felt yet cannot be expressed. in the study carried out by ryan and oestreich (1991; quoted by morrison and milliken, 2000) on 260 employees in 22 organizations in the united states of america (usa), it has been stated that 70% of employees do not have the courage to openly speak about work related problems of issues. the issues are common, such as the process of decision-making, the effect of employee silence dimensions on affective commitment (study on employees of kpp pratama purwokerto) rizky rahmatari handayani1, haryadi2, ratno purnomo3 department of management, faculty of economics and business, jenderal soedirman university, indonesia abstract this research is a survey research at employees of kpp pratama (tax service office) purwokerto branch. this study takes the title: "the effect of employee silence dimensions to affective commitment". the purpose of this study was to determine the effect of employee silence dimensions (in indonesian silence means silence, silence, silence, silence, or silence) on employee affective commitment. the population in this study were employees of kpp pratama (tax service office) purwokerto branch. the number of respondents taken in this study was 54 respondents, then purposive sampling method was used as a means of capturing respondents in accordance with this study.based on the results of the study and data analysis using multiple regression analysis shows that: (1) acquiescent silence has no significant effect on affective commitment, (2) defensive silence has a negative effect on affective commitment, (3) diffident silence has no significant effect on affective commitment, and (4) deviant silence negatively affects the affective commitment.the implication of the above conclusions is that it is better for purwokerto primary kpp employees to maintain a loyal attitude and willingness to share opinions or input to the organization as a form of participation in order to build a solid and solid organization. in the process, there is a need for positive enthusiasm and healthy competition among employees to strengthen family values as fellow members of the organization. keywords employee silence; acquiescent silence; defensive silence; diffident silence; deviant silence; affective commitment. journal of accounting management and economics , vol. 19 no.1, 2017, pp. 44-55 inefficiency of the management, unjust sharing, organizational ineffectiveness and poor organizational performance were among issues emphasized as “indisputable areas” (aydin et al., 2016). furthermore, aydin et al. (2016) stated that the most two common reasons for the silence of employees are the belief that talking about these issues openly will not create a change and the fear of receiving a negative answer. milliken and morrison (2003) stated that employees remain silent with the fear of being punished by their superiors or being stamped as a person who is a complainer and a problem maker by their co-workers as well. due to the reason above, it indicates that employees are more into keeping their jobs secure than risk it in one way or another. research has indicated that employees often feel a sense of insecurity when asked by management to express opinions and ideas, as they believe that comments and recommendations for change may upset the current balance and organization or upset administrators (deniz, noyan, and ertosun, 2013). it is this feeling of insecurity by employees, which results in the subconscious or conscious decision by an employee to remain silent. penttila (2003) stated that this phenomenon is a sad fact of downturns: when employees stop speaking their minds because they fear losing their jobs, instead, they would stay to make peace of their current working life and perhaps avoid obstacles that may go in their way later. van dyne, ang, and botero (2003) defined the phenomenon of employee silence as intentionally withholding idea, information, and opinions with relevance to improvements in work and work organizations. although employee silence can some-times help decreasing managerial information overload, reduce interpersonal conflicts, and increase private informational privacy of co-workers (tangirala and ramanujam, 2008: 37), most of the time employee silence is a dysfunctional behavior. employee silence can be very destructive to the extent that it possibly affects organizational success (beheshtifar, borhani and moghadam, 2012). this is because employee is seen as one of the most critical organizational assets and recognized as fundamental for the effectiveness, competitiveness, and survival of organizations (saks, schmitt, and klimoski, 2000:11), which are critical factors to the success of organizations (beheshtifar, borhani and moghadam, 2012). however, if employees oppose to share their ideas and thoughts regarding problems within the organization, not only that it will reduce innovation in the workplace (argyris and schön, 1978), decrease employees’ positive job attitudes such as satisfaction and commitment (morrison and milliken, 2000; vakola and bouradas, 2005), it can even result in serious corruption in organizations (e.g. enron and worldcom; ashforth and anand, 2003). in fact, employee silence is inefficient process, which may take various forms, such as collective silence in meetings, low levels of participation in suggestion schemes, low levels of collective voice and so forth (liu, wu, and ma, 2009). another study by milliken, morrison, and hewlin (2003) also argue that silence behavior may also cause cognitive dissonance, perceived lack of control, and not being viewed value resulting to low commitment of the employees. from the studies above, it can be seen that silence gives many negative consequences to organizations, and one of the most critical factors to be concerned is level of commitment of employees (irefin and mechanic, 2014). as defined by meyer and herscovitch (2001:301) as well as meyer, becker and van dick (2006:666), commitment refers to a force that binds an individual to a target (social or non-social) and to a course of action of relevance to a particular target. when employees committed to organization, they have a serious urge to make a significant contribution to the workplace and go beyond the standard job obligations (eroglu et al., 2011). it is an important attitude in assessing employees’ intention to quit and the overall contribution of the employee to the organization. however according to becker (1960), employees never commit to the organization emotionally, but what they just do is to continue working because they do not want to lose its status and salary. senge (1999) added that one of the reasons why is because some employees have been familiar with environments where fear, intimidation, and silence are the norms, so they have to reconsider their way of working and behaving. this limits the capacity for openness and results in remaining silent, reinforcing the existing dissatisfying situation and creating ‘‘silent’’ norms and behaviors for the newcomers. particularly when they journal of accounting management and economics , vol. 19 no.1, 2017, pp. 44-55 withhold their ideas and opinions based on the motive to make the workplace atmosphere and relationship to each employee not being uncomfortable and awkward. thus, they can continue on their own pile of work since it seems safer to go along to get along (penttila, 2003). according to nikmaram et al. (2012), the association between employee commitment and employee silence can vary significantly within an organization. li hong et al. (2011) and nikolaou et al. (2011) also perused this relationship empirically, in which the studies confirm that there is a significant negative relationship between silence and commitment in organizations. furthermore, since affective commitment is the issue here, the damages caused by silence may not only harm the organization, but also the employee himself. one of many organizations in indonesia that requires high commitment yet provides great deal of responsibility and risk is djp (direktorat jenderal pajak). the tax organization is well known to be one of the vital organizations in indonesia, particularly because through djp the tax can be regulated and functional to use as source of the nation’s primary funding. therefore, it is understandable if djp have to search for competent and dedicated employees. this is because without them, the organization would likely to suffer from a weak sense of purpose and of the importance, function, contribution and significance of the work (evetts, 2014), which can be risky since djp is an official organization serving for public. according to its blogpost titled “6 alasan mengapa djp harus berubah” (6 reasons why djp should change), the service quality offered by djp has not been optimal towards taxpayers. said that this was because of the mutations, job promotions, and remunerations that have not been regulated well, which later cause employees to less engage to the organization. the lines were intended referring to some problems often happened within an organization, yet cannot be addressed well to their superiors, which can cause the individuals to take option of silencing themselves. according to morrison and milliken (2000) as well as hozouri, yaghmaei, and bordbar (2018), employees often feel that they are enforced to be silent in facing with concerns or difficulties. the reason maybe because they are expected to adapt to the work environment with less complaints since they were recruited through highly competitive job market and so expected to be highly skilled, able to cope with uncertainty, able to work under pressure, demonstrate self-confidence, management skills, and a willingness to learn (raybould and sheedy, 2005; daud et al., 2010). relevant to the study, those conditions may construct culture of silence among employees. the factors can be vary, such as the high tension within relations between manager and subordinate (particularly if the manager known as a difficult person), lack of confidence (working around chosen people can often cause individuals to feel that they are not good enough compared to their co-workers), high competition among employees, and fear of damaging relationship (employees have workloads to be done well and should adapt to organization’s environment in no time; if they cannot do it well, this can cause others to gossiping and talking about their incompetence, thus cause awkward communication among them). as a result, these actions may harm their commitment towards the organization as commitment is viewed as an important predictor of employee loyalty and the performance of an organization (hoek, 2016). literature review and hypotheses despite the discovery of negative relations and consequences of silence toward commitment of employees to organization mentioned earlier, it has not been widely studied (amah and okafor, 2008). therefore, there is the need for more studies aimed at understanding the association between employee silence and affective commitment under researched area as previous study has shown affective commitment as the core essence of commitment (mercurio, 2015). though a lot of research has been carried out on these two construct individually, very few studies explore how they both are related to each other (pinder and harlos, 2001) especially the current study including diffident and deviant silence, which have not been widely studied. yet, the current study will not carry the prosocial silence since it has been proven empirically to affect commitment positively (deniz, noyan, and ertosun, 2013; laeeque and bakhtawari, 2014; dedahanov and rhee, 2015). this is based on the focus of the study that is scrutinizing the negative relations between employee silence and journal of accounting management and economics , vol. 19 no.1, 2017, pp. 44-55 affective behavior of employee commitment. hence, the purpose of this study is to determine how employee silence dimensions influences affective commitment and extend these findings with different samples (meyer, 2007) to previous studies. based on the discussion above, the researcher is interested to do the study of under research area with title “the effect of employee silence dimensions on affective commitment (study on employees of kpp pratama purwokerto)” and propose hypotheses as indicated below: h1(a) : acquiescent silence has negative and significant effect on affective commitment h2(b) : acquiescent silence has the most negative and significant effect on affective commitment h3 : defensive silence has negative and significant effect on affective commitment h4 : diffident silence has negative and significant effect on affective commitment h4 : deviant silence has negative and significant effect on affective commitment methods figure 2.1. research framework population and research subject type of the current research is quantitative research using survey method, which aims to collect data through questionnaire to analyze the causal relationships and hypotheses testing to examine the research objects. population refers to the entire group of people, events, or things of interest that the researcher wishes to investigate (sekaran, 2003:265). the population to be studied is employees who currently working for kpp pratama purwokerto. while sample is defined as a subset of the population, which comprises some members selected from it (sekaran, 2003:266). the sampling technique within the current study is based on nonprobability sampling, which refers to technique that does not provide the opportunity or an equal opportunity for each element or members of the population for being selected as a sample (sugiyono, 2012). this implies the meaning that findings related to the current study cannot be generalized to population, which is due to the use of purposive sampling method. purposive sampling refers to sampling confined to specific types of people who can provide desired information, either because they are the only ones who have it or conform to some criteria set by the researcher (sekaran, 2003:277). thus, the criteria can be arranged as follows. 1) employee enlisted as fixed employee at kpp pratama purwokerto (not the temporary ones). 2) employee who currently and has minimum 1-year experience working for kpp pratama purwokerto conceptual and operational definitions of variables dependent variable affective commitment conceptual definition: affective commitment is an affective or emotional attachment to the organization (meyer and allen, 1997). operational definition: employees’ perceptions based on affective behavior to contribute towards and stay at the organization. indicators : feel happy to spend career with the organization, perceive the organization’s problem as if it is theirs, perceive a strong sense of belonging to the organization, feel emotionally attached to the organization, feel like part of family at the organization, and perceive a great deal of personal meaning towards the organization (meyer and allen, 1997) independent variable acquiescent silence conceptual definition : acquiescent silence is withholding relevant ideas, information, or opinions based on resignation (van dyne, ang, and botero, 2003). operational definition : behavior of which employees intended to silent themselves journal of accounting management and economics , vol. 19 no.1, 2017, pp. 44-55 because they think that speaking up is pointless and would not make any difference. indicators : unwilling to speak based on disengaged behavior, passively withholding ideas based on resignation, passively keeps ideas about solutions to problems to him/herself, keeps ideas for improvement to him/herself based on low self-efficacy to make difference, and withholds ideas of how to improve work based on being disengaged (van dyne, ang, and botero, 2003). defensive silence conceptual definition : defensive silence is withholding relevant ideas, information or opinions as a form of self-protection, based on fear (van dyne, ang, and botero, 2003). operational definition : behavior of which employees are silent to protect themselves from external threats. this type of silence is consciously held and intentional. indicators : neither speak up or suggest ideas for change based on fear, withholds relevant information due to fear, omits pertinent facts as self-protection, avoids expressing ideas for improvements due to self-protection, and withholds solutions to problems as he/she is motivated by fear (van dyne, ang, and botero, 2003). diffident silence conceptual definition : diffident silence refers to insecurities, self-doubt, and uncertainty in respect of a situation and what to say, which may result from the fear of suffering embarrassment or losing the job (brinsfield, 2013). operational definition : behavior of which employees are silent to avoid negative outcomes for themselves because they find difficulty to defend their interests, communicate thoughts, or show disagreement. indicators : not feel confident about speaking up, have high uncertainty and doubts about themselves (low self-esteem), avoid embarrassment, avoid to appear incompetent, and protect image reputation (brinsfield, 2013). deviant silence conceptual definition : deviant silence is intentionally withholding information or opinion in order to lead their superior or colleague to decide wrongly, based on evil intention (brinsfield, 2013). operational definition : behavior of which employees are silent to lead their superior or colleague to decide wrongly. indicators : have intention to get even with another employee, purposefully harm another employee, retaliate against the organization, purposefully harm the organization, and make management look bad (brinsfield, 2013). results and discussion this study aims to analyze the relationship between employee silence dimensions on affective commitment. to test the hypotheses, the study use multiple regression analysis using statistics software package namely ibm spss version 22. test of research instrument validity test validity indicates how well an instrument measures the construct it is intended to measure (sapp and jensen, 1997). the research done using 26 items from five scales consisting of six items of affective commitment, five items of acquiescent silence, five items of defensive silence, five items of diffident silence, and five items of deviant silence. the details are presented in the table 4.5. table 4.1 validity score of items used in the questionnaire item rxy rtable item rxy rtable ac1 0.644 0.268 ds3 0.780 0.268 ac2 0.826 0.268 ds4 0.854 0.268 ac3 0.784 0.268 ds5 0.778 0.268 ac4 0.830 0.268 df1 0.809 0.268 ac5 0.823 0.268 df2 0.834 0.268 ac6 0.816 0.268 df3 0.832 0.268 as1 0.938 0.268 df4 0.716 0.268 as2 0.930 0.268 df5 0.828 0.268 journal of accounting management and economics , vol. 19 no.1, 2017, pp. 44-55 as3 0.948 0.268 dv1 0.752 0.268 as4 0.940 0.268 dv2 0.941 0.268 as5 0.916 0.268 dv3 0.887 0.268 ds1 0.849 0.268 dv4 0.887 0.268 ds2 0.833 0.268 dv5 0.887 0.268 source: primary data 2018 based on table 4.5, the validity score of each item, which constructs affective commitment (ac1 – ac6) are valued more than the rtable (>0.268). thus, the total of six items are all valid. the validity score of each item constructing acquiescent silence (as1 – as5) are valued more than the rtable (>0.268). thus, the total of five items are all valid. the validity score of each item constructing defensive silence (ds1 – ds5) are valued more than the rtable (>0.268). thus, the total of five items are all valid. furthermore, the validity score of each item constructing diffident silence (df1 – df5) are valued more than the rtable (>0.268). thus, the total of five items are all valid. the validity score of each item constructing deviant silence (df1 – df5) are valued more than the rtable (>0.268). thus, the total of five items are all valid. reliability test reliability is the tendency towards consistency, which found in repeated measurements of the similar phenomenon (carmines and zeller, 1979). reliability score can be seen by the value of cronbach’s alpha, with values greater than 0.70 is considered as sufficiently reliable (dedahanov and rhee, 2015; deniz and alsaffar, 2013; nunnally and bernstein, 1994). the details are presented in the table 4.6. table 4.2 reliability score of variables used in the study variable cronbach’s alpha affective commitment 0.877 acquiescent silence 0.964 defensive silence 0.898 diffident silence 0.876 deviant silence 0.927 source: primary data 2018 from table 4.6, it can be seen that the reliability scores are considered high (α > 0.7) since affective commitment, acquiescent silence, defensive silence, diffident silence, and deviant silence scored 0.877, 0.964, 0.898, 0.876, and 0.927, respectively. this indicates that the instruments are all sufficiently reliable, which means they can be used as measurement tool for the research. multiple regression analysis multiple regression analysis is the extended form of simple regression analysis that is used to analyze the effect of two or more independent variables on a single dependent variable. there are three things to be considered when using regression analysis that are r square (to acknowledge to what extent independent variable(s) is able to explain dependent variable), p-value (to acknowledge whether independent variable(s), as a whole, has significant influence on dependent variable), and regression coefficient of each independent variable (to see whether the coefficient is significant). regression model analysis table 4.3 regression statistics component value r square 0.402 adjusted r square 0.353 f 8.243 significance value 0.000 journal of accounting management and economics vol. 19, no. 1, 2017, pp. 44-55 published by faculty of economics and business, universitas jenderal soedirman published online june 2 2017 in http://jos.unsoed.ac.id/index.php/jame correspondence to : rh26rizky@outlook.com  received: 14 january 2017 revised: 4 february 2017 accepted: 4 march 2017  source: primary data 2018 as presented in the table 4.13, coefficient of determination or r square values 0.402. r square is used to indicate to what extent the regression model fits the data. to simply put, it is used to determine how well the independent variables (acquiescent silence, defensive silence, diffident silence, as well as deviant silence) are able to explain or describe the dependent variable that is affective commitment. the value of 0.402 indicates that the independent variables can statistically explain or describe the variance of dependent variable by 40.2%. while the rest value of 59.8% (100% 40.2%) of the variance is caused by factors other than the proposed independent variables (unknown factors). furthermore, it can be seen that the f values 8.243 (>2.56), meaning that the regression model fulfills the goodness of fit. hypotheses examination table 4.4 summary of regression analysis variables β p value status acquiescent silence affective 0.161 0.190 not significant commitment defensive silence affective (-0.410) 0.021 significant commitment diffident silence affective (-0.076) 0.663 not significant commitment deviant silence affective (-0.341) 0.006 significant commitment source: primary data 2018 the p value used to indicate the significance of statistical hypothesis test that represents probability of an event occurrence. lower p value (typically ≤0.05) means stronger evidence to go against the null hypothesis. according to table 4.14, p value of four variables relationships are vary. starting from the lowest p value possessed by relationship between deviant silence and affective commitment, meaning that this relationship is statistically significant or has chance of being true by 99.4% (1 – 0.006) with regression coefficient (β) valued (0.341). it is then followed by the relationship between defensive silence and affective commitment with p value of 0.021 and β valued (-0.410). however, the other two relationships have p value of more than 0.05. between acquiescent silence and affective commitment has p value of 0.190 with β valued 0.161, followed by relationship between diffident silence and affective commitment that has p value of 0.663 with β valued (-0.076). this means that these two relationships are not significant or slightly have chance of being true. conclusion based on result of the study on employees of kpp pratama purwokerto, the conclusions are presented as follows. a. acquiescent silence does not have negative and significant effect on affective commitment, meaning that an increase on acquiescent silence will not be followed by a decrease on affective commitment. instead of silencing themselves, employees of kpp pratama purwokerto choose to share their ideas with their colleagues or managers in order to make difference when the situation needed as well as to improve the quality of their work performance since they are seriously attempt on accepting organizational aims and values, as well as achieving organizational goals. thus, it proves that the employees of kpp pratama purwokerto are disengaged from acquiescent silence. journal of accounting management and economics , vol. 19 no.1, 2017, pp. 44-55 b. acquiescent silence does not have the most negative and significant effect on affective commitment, instead defensive silence proves to have the most negative and significant effect on affective commitment. c. defensive silence has negative and significant effect on affective commitment, meaning that an increase on defensive silence will be followed by a decrease on affective commitment. when an employee actually has relevant ideas that might bring solution or improvement for change, he feels reluctant to speak based on fear. the fear can come from many directions such as fear that the ideas would cause him to perceive negative risks he is unable to handle and fear that his information might hurt or damage his relationship with other employees or managers. thus, it proves that employees of kpp pratama purwokerto are engaged to defensive silence. d. diffident silence does not have negative and significant effect on affective commitment, meaning that an increase on diffident silence will not be followed by a decrease on affective commitment. the occurrence can be explained by factors such as employees tend to speak up about what bothers them rather than keeping it only for themselves based on protecting image reputation or avoiding embarrassment. they feel less uncertain or doubt about themselves or what they can actually do, so speaking up about problems or concerns would likely be done than to have the uncertainties and worries left unspoken, which can add up anytime and affect their work performance. thus, it proves that employees of kpp pratama purwokerto are disengaged from diffident silence. e. deviant silence has negative and significant effect on affective commitment, meaning that an increase on deviant silence will be followed by a decrease on affective commitment. the occurrence can be explained by factor of employees leading their superior or colleagues to decide wrongly because they want to be even with other employees or to make the management look bad. this may be caused by a strong motivation to prove that they are worth and do deserve to stay at the organization. thus, it proves that employees of kpp pratama purwokerto are engaged to deviant silence. implications theoretical implications 1. despite the fact that previous study done by dedahanov and rhee (2015) concluded that acquiescent silence to be the main negative predictor of affective commitment, the current study contributes to the silence literatures that the main predictor, which in the current study is defensive silence, can be vary depending on the chosen organization structure and employee behaviors. 2. the study covers up the investigation of two dimensions of silence, which are still not widely known, namely diffident silence and deviant silence (brinsfield, 2013). 3. the study can be used as a guideline to do future studies on similar theme, namely employee silence and employee commitment. practical implications 1. result of the study demonstrated that acquiescent silence and diffident silence does not have negative and significant effect on affective commitment, meaning that employees of kpp pratama purwokerto shall maintain these acts since they might bring meaningful discussion, ideation, or groupthink that can be source of feedback and invite different perspective. 2. result of the study demonstrated that defensive silence has negative and significant effect on affective commitment, meaning that employees of kpp pratama purwokerto shall be given chance to actually realize expressing ideas or solutions to problems are the primary thing to consider in order to improve the organization as where they want to stay. 3. result of the study demonstrated that deviant silence has negative and significant effect on affective commitment, meaning that employees of kpp pratama purwokerto shall consider carefully about their behaviors in finding a way to remain at the organization. somehow, it is where they want to stay so acts such as harming another employee or even the organization could possibly bring negative impact on the organization as a whole. for instance, cause confrontation, journal of accounting management and economics , vol. 19 no.1, 2017, pp. 44-55 anger, and stress among organizational members. 4. the paper can assist management of kpp pratama purwokerto to be more aware of employees engaged to silence since it can be a culture, which might damage the organization, thus can take necessary steps to encourage employees voicing up their concerns and ideas. 5. hopefully, management of kpp pratama purwokerto will keep maintaining the employees to feel positive about the organizational aims, value, and goals in order to increase their emotional bonds and sense of belonging towards kpp pratama purwokerto as a whole organization. limitations and directions for future research based on result of the study on employees of kpp pratama purwokerto, the limitations and directions for future research are presented as follows. a. responses of the respondents are related to their perceptions at that moment. this can cause response bias since researcher did not have control over the time spent to respondents filling in questionnaires. b. the study investigated the link between four dimensions of silence and only one type of commitment. therefore, it is suggested to future studies conducting research on associations between the multidimensional construct of silence and other types of commitment, namely normative commitment and continuance commitment. c. even though the study has covered up four dimensions of silence, it did not take account on investigating other dimensions of silence namely relational, ineffectual, and disengaged (brinsfield, 2013). references amah, o.e. and okafor, c.a. 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(2013). enigma of silence in organizations. beykent university journal of social sciences. 6. 30-43. journal of accounting, management, and economics vol. 19, no. 2, 2017, pp.1-12 published by faculty of economics and business universitas jenderal soedirman published online on july 11, 2017 in http://jos.unsoed.ac.id/index.php/jame  correspondence to : 1siliwangi university, indonesia. e-mail: deasylestary@unsil.ac.id 2siliwangi university, indonesia. e-mail: luckyradi@unsil.ac.id received: may 2, 2017 revised: may 16, 2017 accepted: june 6, 2017 introduction background environmental and health problems that are directly and indirectly caused by human activities, whether in the fields of science and technology, agriculture, economics and business, have become central issues in all circles. concern and awareness of the environment and health, has changed the perspective of life and lifestyle of human and business actor. this is shown in the change of business approach pattern which starts to direct the business with the approach of business activity based on environmental sustainability. environmental or green marketing is a new focus in business ventures that is a strategic marketing approach that is beginning to emerge and become the attention of many parties from the late 20th century. this condition requires marketers to be more careful in making decisions that involve environment (byrne, 2003). in addition, companies use the term green marketing, in an effort to get a chance to achieve corporate goals. this is evident in the concerns of businesspeople on environmental and health issues with the increasingly environmentally concerned market (laroche, et al., 2000). if environmental issues (pollution, species protection, and recyclable products) have an important sense for consumers in choosing products, and if a company in the market is the only one to offer with an environmental marketing mix among its competitors, then the company must have a high strategic competitive advantage (cravens, 2000). one of companies that apply the concept of green marketing as its marketing strategy is tupperware. tupperware is a company of quality plastic products. tupperware products are made from top quality plastic materials, do not contain toxic chemicals and have meet the standards of some world agencies such as the us fda (food and drug administration), european food safety authority (europe), japan food safety commission (japan), so in addition to safe use repeatedly for food and beverage but also environmentally friendly (tupperware.co.id). tupperware products that are quite expensive does not discourage the public interest to buy healthy and environmentally friendly products. tupperware products are in great demand by various circles, both unmarried and married people. based on the phenomenon, the researcher wants to know whether the marketing mix based on green marketing concept includes product, price, distribution, and promotion has influence on purchasing decision of tupperware products for people in tasikmalaya. the effect of green marketing on purchase decision with brand image as mediating variable deasy lestary kusnandar, lucky radi rinandiyana economics faculty, siliwangi university, indonesia abstract the purpose of this study is to explain the influence of marketing strategy on purchase decision through brand image as mediation. to test the empirical model, this study used structural equation modeling (sem) analysis tool. other analysis tools used include amos 21.0, spss 16.0 and microsoft excel 2007. the number of samples in this study were 140 users of tupperware in tasikmalaya. the results of this study indicate that the dimensions of marketing strategy that are green product, green price, green place and green promotion have positive effect on purchase decision and brand image, and brand image mediate the influence of marketing strategy dimensions on purchase decision. keywords green product; green price; green place; green promotion; brand image; purchase decision journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 1-12 2 problem formulation based on the background of the problem described above, can be formulated research questions as follows: 1. does green marketing have an influence on purchase decision? 2. does brand image mediate the relationship between green marketing and purchase decision? research objective to find out and analyze: 1. does green product have an influence on purchase decision? 2. does green price have an influence on purchase decision? 3. does green place have an influence on purchase decision? 4. does green promotion have an influence on purchase decision? 5. does brand image mediate the relationship between green product and purchase decision? 6. does brand image mediate the relationship between green price and purchase decision? 7. does brand image mediate the relationship between green place and purchase decision? 8. does brand image mediate the relationship between green promotion and purchase decision? research function the results of this study are expected to provide benefits for the development of science, especially in the field of marketing management. and also this research is expected to be used as reference material for further research. the results of this study are expected to be inputs and development materials for the management of tupperware as a source of information and formulate appropriate marketing strategies in dealing with corporate problems, especially related to the formation of high consumer purchase decision. literature review and hypotheses development pride and farrel (1993) defined green marketing as an effort to design, promote, and distribute non-destructive products. charter (1992) defines green marketing as a holistic, strategic management process responsibility that identifies, anticipates, satisfies and meets the needs of stakeholders for a reasonable member of the prize, which does not cause harm to humans or the health of the natural environment. charter (1992) defined green marketing as a holistic, management process strategic responsibility that identifies, anticipates, satisfies, and meets the needs of stakeholders to give a reasonable appreciation, which does not cause disadvantage to humans or the health of the natural environment. the importance of green marketing by mc. taggart, findlay and parkin (1992) in polonsky (1994) refers to the economic principle, which states that the economy is a form of one’s expenditure in trying to satisfy unlimited desires by using limited resources. thus, according to polonsky (1994), it can mean that we have limited resources on earth, with an unlimited desire of the world, so if applied in the company, green marketing can be seen as a marketing activity by utilizing limited resources to meet the satisfaction of the consumer desire so as to achieve the company’s sales goals. the solution can ensure the company’s participation in understanding the needs of the society and as a company’s opportunity to achieve excellence in the industry (murray & montanari, 1986 in lozada, 2000). thus it can be assumed that companies that market their products with environmental characteristics will have a competitive advantage compared to companies that market without responsibility to the environment, this is an attempt to satisfy the needs of their customers as in mc. donalds by replacing shell packing with wax paper due to increased consumer concerns related to polystyrene and ozone reduction (gofford, 1991; hume 1991). several existing research have found that governments and organizations have already done an approach on environmental marketing from a number of perspective deviations, from responsibility of comfort to the pressure on emission level constraints, which all can encourage consumers to adopt items with various levels of green characteristics from various marketing mix approaches (hawken, et al., 1999 and kalafatis, et al., 1999). green product swastha and irawan (1996) said that product is a complex nature that can be touched or cannot be touched, including wrapping, color, price, company achievement, and retailers journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 1-12 3 received by the buyer to satisfy the desires and needs. increasing product variety in markets that support sustainable development can undertake the basics of product management as follows: 1. product can be made from recyclable materials. 2. product can be recycled or reused. 3. product is efficient, which conserves water, energy, or gasoline use, saves money, and minimizes the impact of product on the environment. 4. product packaging is responsible. 5. product does not contain substances that damage health in humans and animals. 6. use green labels that enhance product offerings. 7. product is organic, many consumers are willing to purchase organic products at premium prices that offer quality assurance. 8. service that rents or lends products, such as library. 9. product is certified that clearly meets the responsibility criteria on environment. labeling of products has a purpose in conveying information to consumers on product attributes (kotler, 2003). in a study in the united states, britain, australia, and south africa that consumers interpret the information of environmentally-friendly products on different packaging labels to what the marketers meant, for example in a case that the consumer means the product has been labeled environmentally friendly, other consumers are in doubt because the product that promotes environmentally friendly does not in detail inform the criteria of environmentally friendly quality. (polonsky, et al., 2002). green price price is the value of goods and services measured by the amount of money. based on that value, a person or company is willing to release goods or services owned to other parties. inside the firm, price of a good or service is a determination for market demand. price can affect the position of company competition. price decision should never be made by chance. on a common product, price reduction can increase sales, while on products that carry prestigious images, price increases will increase sales because high-priced products will show a person’s achievement. according to a survey taken by ghi along with the roper organization that 82% of americans said they were willing to pay more for products that could have a better environmental impact (voss, 1991). many retailers have put on more environmentallyfriendly products at a cost beyond the consumer’s ability (reitman, 1992). consumers’ desire to pay a certain amount of money for environmentally-friendly products is more due to their concern for environmental issues (laroche, et al., 2001). the conceptual model proposed by ottman (1992), voss (1991), reitman (1992) concerning consumers’ willingness to pay with premium prices for environmentallyfriendly products is contrary to research by capelins and strahan (1996) explaining that consumers desire to pay with premium prices on environmentally-friendly products is only ranging from 5% to 10% of the price for conventional products (capelins and strahan, 1996). furthermore, polls (2002) described that consumers generally believe that environmentally-friendly products have a high price. this is supported by the study of polls (2003) in the united kingdom who found that the premium price of an environmentallyfriendly product is negatively related to the consumer’s choice on environmentallyfriendly products. green place place reflects the company’s activities that make the product available to target consumers. part of the distribution task is to choose an intermediary to be used in a distribution channel that physically handles and lifts the product through the channel, meaning that the product can reach the intended market on time. location also consistently must be considered in accordance with the intended image. location must be different from competitors. this can be obtained by in-store promotions and creating attractive displays or using recyclable materials to emphasize environmental excellence and other advantages. green promotion promotion reflects activities that communicate product excellence and persuade consumers to buy it. so, this promotion is a component used to provide journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 1-12 4 and influence the market for the company’s products. promoting a product and service to gain market can be done with advertising, public relation, sales promotion, direct marketing, and on-site promotion. intelligent green product sellers will be able to emphasize the credibility of environmentally-friendly products by using sustainable marketing as well as communication tools and practices (queensland government, 2002). the key to success of green marketing is credibility. by not exaggerating the environmental excellence of the product or forming unrealistic expectations on the customer, the communication of environmental excellence can be done through credible figures (haryadi, 2009). purchase decision according to engel, et al. (1995), consumer behavior is activities that are directly involved in getting, consuming, and depleting products and services including processes that precede and follow the action. the process of decision-making by consumers is influenced by three factors: consumers as individuals, environmental influences, and marketing strategies conducted by the company. the influence of consumers as individuals in decision making includes consumer needs, consumer perceptions of product characteristics, demographic factors, lifestyle, and personal character. environmental influences include culture (social norm, religion, and ethnic group), social class, and kinship. the marketing strategy that affects consumers in decision making is the marketing mix of products evaluated by consumers (mursyid, 2003). assael (1992) divided the decision-making process conducted by consumers into five stages: the introduction of needs, information processing, assessing the existing brands, purchasing, and assessment after making a purchase. stages of decision making process of product purchase decision by consumers can be seen in figure 1. figure 1. consumer decision making process engel, et al. (1994) classified the factors affecting consumer purchase decisions into three, namely environmental influence, individual difference, and psychological process. psychological factors consist of motivation, perception, learning, and consumer attitude. motivation is an encouragement to perform an action. perception is how consumers interpret the stimulus that comes either in the form of image, place, or an object. the logical expansion of the process of motivation and perception is learning. learning is a process of exploring or extending knowledge based on past experience. according to engel, et al. (1995), attitude is an overall evaluation that enables people to respond to a given object. the purpose of marketing strategy is to meet the customer need and satisfaction. in order to meet the customer need and satisfaction then we must know the consumer preference first. a product can be acceptable depends on the response of and the way the consumer receives the product. marketing stimuli consists of primary stimuli caused by the product itself, secondary stimuli caused by symbol, image, and information about the product (assael, 1995). brand image brand is the name, term, sign, symbol, or design or combination of such matters, intended to identify the good and service of a person or group of sellers and to distinguish them from competitor products (kotler, 2009: 258). brand image is the overall consumer perception of the brand, judged by the understanding of information from the brand. therefore, brand image should be able to be identified by consumers and evaluate products and services, reduce risk cost, ensure whether the customer needs are met, and give consumers a satisfaction from product or service differentiation (he, et al. 2013: 2). further, kotler (2005: 215) defined brand searching information introduction of problem evaluating alternative purchase decision postpurchase behavior journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 1-12 5 image as a set of beliefs, ideas, and impressions that a person has for a brand, the attitude and action of the consumer towards a brand is determined by the brand image. previous research environmental pollution is increasing rapidly throughout the industrialization of products that is harmful to the environment. when the hazardous components of the product become one of the factors affecting consumer purchase decision, the business world starts to produce environmentallyfriendly products or green products and make green product policy (uydacı, 2002: 113). boztepe (2012) conducted a survey on 540 green consumers in 2012. targeted individuals include respondents aged between 18-65, who were aware of green products and who had purchased green products in the past. according to this study, consumers consider green products as people who minimize the impact on the environment (e.g., energy-efficient, recycled, natural, or organic). only 30% of consumers consider green practices on product labels and word of mouth is the main source of information about green products for consumers (ayzel, 2012). a lower price caused by cost saving will encourage consumers to buy environmentally-friendly products. when product demand is responsive, lower price will be a more successful strategy for the company. the positive nature of the product on the environment can be used as an element of competitive advantage. in the case of higher product price, it is very important to give a promotion that distinguishes green products and also there must be consumers who are ready to pay more for the green products. in this case, what matters is the price level (emgin and turk, 2004). ayzel conducted a survey on 540 green consumers in 2012. according to this study, consumers who have bought green product feel blocked because it is considered too expensive. price is the main reason consumers do not buy green products (boztepe, 2012). the choice of where and when to make the product is always available that can give a significant influence on the customer. very few customers only want to buy the product because of the environmentallyfriendly only. sellers who want to achieve success in selling environmentally-friendly product should position their products widely in the market so that it can be more recognizable (queensland goverment, 2002). location also consistently must be considered in accordance with the intended image. location must be different from competitors. this can be obtained by instore promotion and by creating attractive display or using recyclable material to emphasize environmental excellence and other advantages. song, et al. (2001) in ariawan (2005) stated that changes in the competitive environment and pressures faced by the organization, a synergy must be built by combining firms, distribution channels, and flexible engineering capabilities. some research has shown that the development of channel relationship quality is the results obtained from the synergy that is built among the company’s capabilities and resources and expertise rooted in the concept of product marketing channel success. a number of previous studies have analyzed the relationship between brand image and consumer attitude. almuarief (2016) conducted a study on 140 questionnaires in yogyakarta. according to this research, there is a positive and significant influence of brand image on purchase decision of ades packaged drinking water. this means that the better the brand image the better and many consumers who do purchase decision. research methods the research method used in this research is survey research method, according to sugima (2008: 135): “research by proposing statements to people or subjects and recording the answers to be analyzed critically”. this survey method is part of descriptive research and causal research. research object the object of research is green marketing, brand image, and purchase decision. research respondents are tupperware users in tasikmalaya. type and source of data the type of data in this study is divided into 2 parts, namely: journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 1-12 6 1) primary data that is data on green marketing, brand image, and purchase decision obtained directly from the field through interview and filling questionnaire by selected respondents. 2) secondary data that is data collected from other parties, existing or available data which are then reprocessed for a particular purpose, this data is in the form of history and condition of market, literature, articles, and scientific papers considered relevant to the topic of green marketing, brand image, and purchase decision. the data collection technique used in this study consists of: 1) field research that is the research conducted directly on the object of research, so it can be known the actual condition by the ways as follows: a. interview that is data collection activities and facts by holding direct questions and answers with respondents regarding green marketing, brand image, and purchase decision. b. questionnaire that is spreading questions on related issues to selected respondents to find out their response to green marketing, brand image, and purchase decision. 2) library research library research is a method of data collection conducted by studying the literature related to green marketing, brand image, and purchase decision so that it can be used as the basis of analysis. population and sample population in this research is users of tupperware product in tasikmalaya. the size of the population cannot be accurately known so it is infinite. sampling used judgment sampling/purposive sampling where the sampling is based on personal consideration of the researcher concerned (sugiama, 2008). in this way of sampling, the researcher attempted to find confidence fist that the individual chosen as the sample is the right individual. determination of the sample size is based on the opinion of hair (1995: 444) that is for the survey research, the minimum sample size is 100. to further ensure the accuracy in this study, the questionnaires were distributed to 200 respondents. analysis tool before conducting data analysis, it is necessary to conduct the validity and reliability test of the distributed questionnaires. the technique used is structural equation model analysis aiming to estimate some separate regression equations but each has a simultaneous or simultaneous relationship. in this analysis, there may be some dependent variables, and this variable is possible to be an independent variable for other dependent variables. discussion table 1 shows the indicators used in each of the variables, loading factor, reliability based on cronbach’s alpha value. the results of the analysis show that there are four indicators that have loading factor value < 0.60 that are x15, x20, x21, and x22. then the four indicators were excluded from the model. journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 1-12 7 table 1. results of convergent validity test construct item internal reliability loading factor construct reliability green product x1 0,708 0,74424 0,967 x2 0,76267 x3 0,86634 x4 0,82382 x5 0,89946 green price x6 0,722 0,74443 0,835 x7 0,67041 x8 0,64572 green place x9 0,862 0,82883 0,950 x10 0,81332 x11 0,82298 green promotion x12 0,805 0,83511 0,907 x13 0,78769 x14 0,67044 brand image x15 0,864 0,43567 0,991 x16 0,77867 x17 0,89235 x18 0,85551 x19 0,84173 x20 0,35782 x21 0,40987 purchase decision x22 0,914 0,43341 0,992 x23 0,79782 x24 0,86251 x25 0,91648 x26 0,83485 the results of the analysis in table 2 also show that all ave values are higher than the quadratic correlation between constructs on all relationships between variables. therefore, it can be concluded that the test results show that all constructs used have good validity and can be used in the next analysis phase. table 2. results of discriminant validity test price promotion place product brand image purchase decision price 0,705 promotion 0,020 0,906 place 0,000 0,004 0,926 product 0,006 0,001 0,151 0,952 brand image 0,003 0,067 0,089 0,251 0,919 purchase decision 0,067 0,064 0,227 0,245 0,121 0,816 journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 1-12 8 model fit test goodness of fit test shows that a model is fit to the data used in the research. this can be seen from the existing criteria of chi-square, probability, cmin/df, gfi, agfi, tli, cfi, and rmsea. according to hair, et al. (2010), goodness of fit test is acceptable or the model is categorized fit if at least 5 criteria are met. the result of goodness of fit test can be seen in table 3 below: table 3. results of discriminant validity test based on the statistical results of sem analysis in model-goodness-of-fit test, obtained six criteria included in good category, and two criteria are included in marginal category. based on these results, the model in this study as a whole can be categorized as a very good model or fit model category. figure 2. full model of structural equation goodness of fit chi-square = 213.201 agfi = 0.806 gfi = 0.808 probability = 0.214 tli = 1.009 rmsea = 0.000 cmin/df = 0.893 cfi = 1.000 df = 205 goodness of fit index cut-off value model analysis result description χ2 – chi square <χ2 250,207 (p 0,05; df 215) 213,591 good probability > 0,05 0,514 good cmin/df < 2,00 0,993 good rmsea < 0,08 0,000 good gfi > 0,90 0,888 marginal agfi > 0,90 0,856 marginal tli > 0,95 1,001 good cfi > 0,95 1,000 good journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 1-12 9 hypothesis testing hypothesis testing is done by looking at the critical value or ttable that is by comparing the value ttable with tcount in the study or comparing the p value with 0.05. the hypothesis is said to be accepted if the value of ttable < tcount or p < 0.05. based on the t distribution table, the value of ttable in this study is the number of sample of 125 and the significance level of 5% (0.05) is equal to 1.979. while, for the value of tcount on the relationship between variables of research can be seen in table 4. table 4. result of research hypothesis testing discussion of research result h1: green product has a positive effect on purchase decision based on table 4, it is known that the value of c.r. (2.39875) > ttable (1.977) and p (0.01494) < 0.05. therefore, the null hypothesis which states that regression weight is equal to zero can be rejected and this means the effect of green product on purchase decision is positively significant. thus, the hypothesis stating that green product positively affects purchase decision is accepted. according to respondents’ answers, they feel the product used in accordance with the desire and expectation of consumers that is to use environmentally friendly products. they feel comfortable and secure when using products that have been issued by tupperware. according to respondents’ answers, they greatly appreciate the products that have been provided or created by tupperware. thus, green product that has been created by the company can be felt directly by them. respondents also consider the green product in making purchase decision. thus, it affects them directly in making purchase decision. these findings also reinforce the notion that an environmentally friendly product strategy implemented by a company can lead to an overall perception to better benefit the brand, thereby supporting common green marketing approach (hartmann, 2005: 21). h2: green price has a positive effect on purchase decision based on table 4, it is known that the value of c.r. (2.39783) > ttable (1.977) and p (0.01186) < 0.05. therefore, the null hypothesis which states that regression weight is equal to zero can be rejected and this means the effect of green price on purchase decision is positively significant. thus, the hypothesis stating that green price positively affects purchase decision is accepted. in general, respondents said that they were satisfied with the price set by the company, because they could see and feel themselves better quality than other products they have purchased. respondents also said they did not feel hesitant in making purchase decision because with the same price tariff consumers could choose products that all use environmentally friendly concepts that suit their tastes. so that consumers felt the affordability of the price to buy tupperware products. this means that the green price predetermined by the company can directly influence the purchase decision. the results of this study are in line with the statement of emgin and turk (2004). c.r. ttable value p brand_image <--green_product 3.11517 1.9770 .00078 brand_image <--green_price 3.80716 1.9770 *** brand_image <--green_place 2.54119 1.9770 .01037 brand_image <--green_promotion 2.32534 1.9770 .02019 purchase_decision <--brand_image 3.51365 1.9770 *** purchase_decision <--green_product 2.39875 1.9770 .01494 purchase_decision <--green_price 2.39783 1.9770 .01186 purchase_decision <--green_place 2.26110 1.9770 .02079 purchase_decision <--green_promotion 2.29562 1.9770 .02171 journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 1-12 10 h3: green place has a positive effect on purchase decision based on table 4, it is known that the value of c.r. (2.26110) > ttable (1.977) and p (0.02079) < 0.05. therefore, the null hypothesis which states that regression weight is equal to zero can be rejected and this means the effect of green place on purchase decision is positively significant. thus, the hypothesis stating that green place positively affects purchase decision is accepted. in general, respondents said they felt a very memorable experience in purchasing tupperware products. according to respondents’ answers, they were easily aware of new tupperware products by many tupperware resellers in tasikmalaya. based on the results in this study, means that the green place that tupperware has done can directly affect the creation of purchase decision. the results of this study are in line with the statement of queensland government (2002), sellers who want to achieve success in selling environmentally friendly products should position their products widely in the market so that they can be more recognizable and can drive purchase decision. h4: green promotion has a positive effect on purchase decision based on table 4, it is known that the value of c.r. (2.29562) > ttable (1.977) and p (0.02171) < 0.05. therefore, the null hypothesis which states that regression weight is equal to zero can be rejected and this means the effect of green promotion on purchase decision is positively significant. thus, the hypothesis stating that green promotion positively affects purchase decision is accepted. according to respondents’ answers, they knew the promotions made by tupperware through the implied messages of every use of product material issued by tupperware. the results of this study are in line with shrum, et al. (1993) conducting a study on 3,690 people. according to the study, it is showed that women who tend to buy green products are more skeptical on the trust in advertising. h5: brand image has a positive effect on purchase decision based on table 4, it is known that the value of c.r. (3.51365) > ttable (1.977) and p (0.0000) < 0.05. therefore, the null hypothesis which states that regression weight is equal to zero can be rejected and this means the effect of green brand image on purchase decision is positively significant. thus, the hypothesis stating that brand image positively affects purchase decision is accepted. h6: brand image mediates the relationship between green product and purchase decision the test of the mediation influence between intervening variables and dependent variable was done by sobel’s formula calculation. based on the results of these calculations, the value of z count of 2.28 is greater than z table of 1.96 with significance of 0.05, so it can be concluded that the brand image mediates the causal relationship between green product and purchase decision. h7: brand image mediates the relationship between green price and purchase decision the test of the mediation influence between intervening variables and dependent variable was done by sobel’s formula calculation. based on the results of these calculations, the value of z count of 2.19 is greater than z table of 1.96 with significance of 0.05, so it can be concluded that the brand image mediates the causal relationship between green price and purchase decision. h8: brand image mediates the relationship between green place and purchase decision the test of the mediation influence between intervening variables and dependent variable was done by sobel’s formula calculation. based on the results of these calculations, the value of z count of 2.09 is greater than z table of 1.96 with significance of 0.05, so it can be concluded that the brand image mediates the causal relationship between green place and purchase decision. journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 1-12 11 h9: brand image mediates the relationship between green promotion and purchase decision the test of the mediation influence between intervening variables and dependent variable was done by sobel’s formula calculation. based on the results of these calculations, the value of z count of 2.28 is greater than z table of 1.96 with significance of 0.05, so it can be concluded that the brand image mediates the causal relationship between green promotion and purchase decision. conclusion and suggestion conclusion based on the results of the discussion in the previous above, it can be drawn some conclusions as follows: 1. green product has significant effect on purchase decision of tupperware consumers in tasikmalaya. 2. green price has significant effect on purchase decision of tupperware consumers in tasikmalaya. 3. green place has significant effect on purchase decision of tupperware consumers in tasikmalaya. 4. green promotion has significant effect on purchase decision of tupperware consumers in tasikmalaya. 5. brand image has significant effect on purchase decision of tupperware consumers in tasikmalaya. 6. brand image mediates the relationship between green product and purchase decision. 7. brand image mediates the relationship between green price and purchase decision. 8. brand image mediates the relationship between green place and purchase decision. 9. brand image mediates the relationship between green promotion and purchase decision. 10. overall the results of this study indicate the influence of green product, green price, green place, green promotion, and brand image on purchase decision. the existence of this significant influence explains the indication that the better the green product, green price, green place, green promotion, and brand image then tupperware purchase decision in tasikmalaya will be better too. suggestion the suggestions that can be given are as follows: 1. green product, green price, green place, and green promotion have strong influence on purchase decision. therefore, the products must be designed according to the needs of consumers, developed with the best, always follow the existing development, and given superior service to consumers. 2. the process of image development is not easy. one of the triggers that can quickly form an image is product quality, fast service, signage, and more. the company should always make continuous improvement on factors that can improve the company image. references ayzel, b. (2012). green marketing and its impact on costumer buying behavior. european journal of economic and political studies. byrne, m. (2003). understanding consumer preference across environmental/ marketing mix variations. oikus university of newscastle. engel, f. s., & blackwell r. d. (1995). consumer behavior, translated by fx. budiyanto. jakarta: binarupa aksara. kotler, p. (2004). marketing management: analysis, planning, implementation, and control, book i, translated by imam nurmawan (3rd ed.). jakarta: pt. prehalindo. kotler, p. (2005). marketing management. jakarta: erlangga. kotler, p., & keller. (2012). marketing management (14th ed.). new jersey: prentice hall. lozada, h. r. (2000). ecological sustainability and marketing strategy review and implication. seton hall university. ottman, j. (1998). developing green product learning from stakeholder. asian pasific journal or marketing and logistic, 10(1), 22-43. journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 1-12 12 shrum, l. j., & mccarty, j.a. (1995). buyer characteristic of the green consumer and their implication advertising strategy. xxiv, 71-82. sugiama, g. (2008). research method of business and management. (1st ed.). bandung: guardaya intimarta. journal of accounting management and economics vol. 20, no. 1, 2018, pp. 18-29 published by faculty of economics and business, universitas jenderal soedirman published online on july, 9 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 onlineissn: 2620-8482  correspondence to : jenderal soedirman university, indonesia. e-mail: putri020293@yahoo.com received: may 16, 2018 revised: may 29, 2018 accepted: june 6, 2018 introduction human resource is one of the most important resources to build a company. companies that have good human resource will manage other resources owned by the company well to produce profitable production (armstrong, 2006). good hr in a company can affect the level of success of the organization. the level of organizational success can be seen through the achievement of organizational goals supported by optimal employee performance. high performance requires motivation and organizational support in it. furthermore, armstrong (2012) argued that employees in an organization have an obligation to stakeholders to perform well. good performance depends on the quality, dedication, enthusiasm, expertise, and skills of employees at all levels. guest (1997) argued that in hr management, performance improvement can be achieved through people within the organization. employees’ performance quality in doing their work is the key to success in achieving company goals. performance that has quality, dedication, enthusiasm, expertise, and skill will give good contribution to the company. storey, et al. (2009) observed that hr policies have an effect on hr practices that affect employee attitude and behavior. as a result, employees will do their job well. this assumption means that good hr practices will improve performance. organizations achieve high performance through the work systems they adapt. therefore, optimal organizational performance can be achieved by improving the performance of its employees. this can be done through the development and implementation of a high performance culture (armstrong, 2012). this research used the expectation theory as its basic theory. robbins (2003), who took the basis of vroom's theory, argued that the drive for action is closely related to the expectation that individual actions will be followed by certain outcomes, and the appeal of those results motivates the individual to act. this theory explains that employees can be motivated to make more strenuous efforts if they believe the effort will provide a good performance appraisal. good appraisal will encourage an organization to provide rewards such as bonuses, salary increases, or promotions. the rewards will affect the employees’ personal goals. the influence of pos on employee performance with job satisfaction as a mediator kartika putri, haryadi, ade irma anggraeni faculty of economics and business, universitas jenderal soedirman, indonesia abstract this study conducted a research on variable of pos, and employee performance as well as job satisfaction as a mediation variable. this research is quantitative research. the subjects of this study are researchers at lipi center for oceanographic research. primary data in this study was obtained directly from the respondents through questionnaires. sample determination method used in this research is simple random sampling method with saturated sampling technique using slovin method. response rate in this study is 92.5%, so the questionnaires distributed were as much as 87 questionnaires. the analysis technique used is partial least square model estimation and the mediation test used sobel test. the results of this study indicate that pos has a significant positive effect on job satisfaction and employee performance, job satisfaction has a significant positive effect on employee performance, and job satisfaction mediates the influence of influence of pos on performance. keywords pos; employee performance; job satisfaction journal of accounting management and economics , vol. 20, no. 2, 2018, pp.18-29 23 there are three aspects to the theory of expectations, the first is the relationship between effort and performance that can be understood that the individual has a hope for the possibility of getting rewards so that they will give a certain amount of effort that will boost performance. second, the relationship between performance and reward that is the extent to which employees will believe that performing at some level will drive the desired outcomes. third, the relationship between reward and personal goal that is the extent to which the rewards of an organization meet individual personal goals or needs as well as the potential attractiveness benefits for individuals. the theory of expectations explains why so many employees are unmotivated in their work and simply do the least of their duties. the key to the theory of expectations is the understanding of individual goals and the attachment between effort and performance, between performance and reward, and between reward and satisfaction of each goal. performance is an important spotlight in public and private organizations. one of the public organizations whose performance is important for the development of science in indonesia is the indonesian institute of sciences or often called lipi. lipi as a government institution focuses on the development of knowledge and research has a big role in contributing to indonesia. one of the work units at lipi is the center for oceanographic research. the center for oceanographic research is under the deputy of earth sciences of lipi (ipk lipi). in accordance with regulation of head of lipi number 1 year 2014 dated may 9, 2014, lipi center for oceanographic research which is under the deputy of earth sciences of lipi has the duty to conduct research in oceanography and functions to develop technical policies, plans, and research programs in the field of oceanography such as research, monitoring, evaluation, and reporting on research and administrative matters implementation. in addition, the researchers working there are required to produce scientific papers each year as outlined in the work plans that were made. each grade has a number of different point credits to rise above the level. if within five years there is no promotion or performance rise, it can be called bad, then the employee may be expelled or the promotion will be terminated. researchers are required to improve their credibility through increasing competence, creativity, integrity, and communication through existing means of scientific activity. from the description above, lipi employees have direct responsibility to the president and the society. researchers have an obligation to conduct research processes that meet the scientific standards of research results that advance science as the foundation of human welfare, and to the scientific society that give recognition in the scientific field of the researcher. thus, good performance is a very decisive thing for the sustainable development of science produced by lipi. given the demands of work that require to perform well, then organizational support become important in influencing performance with the mediation of job satisfaction thereby affecting the performance directly. the phenomenon that can be a gap in this study is the existence of some performance indicators of researchers who need to be improved because the performance of researchers in this institution is important for the sustainability of knowledge development in indonesia. based on the performance report of lipi center for oceanographic research in 2015 and 2016, there are several performance indicators that require improvement. the first indicator is the number of publications published in the national journal in 2015 only reached 68% while in 2016 only reached 65.7%. the second indicator is the number of industries that carry out research cooperation in 2015 and 2016 that is 0%. the third indicator is the number of policy recommendations generated in 2015 and 2016 at 0%. the fourth indicator is the number of technologies, concepts, models, and product types with value added in 2015 that is 0%. the fifth indicator is the number of technologies, concepts, models, product types produced in 2015 that is 0%. employee performance as the main thing that determines the success of a company has a lot of understanding. armstrong (2012) stated that performance refers to results or achievements as well as good executions of work in achieving results. bernadin, et al. (1995) and kane (1996) describe performance as a result of work and history of one's achievement. journal of accounting management and economics , vol. 20, no. 2, 2018, pp.18-29 24 when performance is interpreted as a result, then of course the performance has components that make up the performance itself. performance components are in-job skills, off-the-job skills (extra behavior in the organization), skills in written and unwritten communication, demonstration of business, maintenance of personal discipline, facilities for performance, supervision or leadership, and management or administration (campbell, et al., 1993). in addition, other opinions say that there are three main things that affect the individual in work, among others the first is the ability of the individual to do the job, the second is the level of effort devoted, and the third is the organizational support (mathis and jackson, 2009). meanwhile, organizational support (pos) is the support of companies to improve performance by facilitating employees in the development and awarding of employees. rhoades and eisenberger (2002) argued organizational support or perceived organizational support (pos) is a form of employee trust about organizational commitment to them. eisenberger, et al. (1986) stated that employees demonstrate a consistent pattern of understanding that organization will appreciate employees' contributions and treat them well or badly in various situations. eisenberger, et al. (1986) stated that pos will be rewarded by employees if it meets socioemotional needs, awards for increased work effort, and help to help employees work effectively. meta-analysis by rhoades and eisenberger (2002) shows three major antecedents of pos that are organizational reward and job condition, support from supervisors, and procedural justice. one of the performance-enhancing predictors is job satisfaction. job satisfaction perceived by employees positively will make employees love their work and will devote performance to the job. spector (1997) described job satisfaction with a simple that is how much how much a person likes a job. some people who love it will make it the main one but some others hate it and do the job because of the necessity. davis (1995) stated employee are part of an organization, they have a set of desires, needs, desires, and past experiences that are one and forms work expectations. thus, job satisfaction can be seen from the appropriateness between a person's expectations and the rewards provided by the job. robin and jugde (2013) argued the higher the job satisfaction of an employee, the more positive he will perceive his work and vice versa. with the phenomenon that occurs in the organization and associated with the existing theory so that researchers were focused to discuss it and took the research topic “the influence of pos on employee performance with job satisfaction as a mediator”. literature review theory of expectations vroom in smith and hitt (2005) described the theory of expectations as having a basis that influences the power of individual motivation to do their work effectively: 1) expectancy: how likely it is that employees perform certain behaviors, they will get the expected work (high performance), 2) instrumentality: how much the relationship between job performance with higher work (income, salary or other things given by companies such as health insurance, transportation, etc.), and 3) valence: how important employees assess the income the company gave them. each of these points leads to a different type of intervention in improving performance. the first of these points can be improved by designing training interventions to increase employees' confidence in their abilities. the second can be improved by redesigning jobs such as creating reward systems related to employee performance. the third can be achieved by changing rewards or substituting awards with more meaningful things for employees. in addition, the theory of expectations suggests that there is an interaction between these components. for example, an increase in the individual's confidence that he or she is capable of achieving high performance with greater effort will have no effect if the individual does not feel the value or appreciation offered by the company for high performance or if the resulting performance has no intrinsic value to a person. robbin (2003) described vroom's theory that the strength of the tendency to act in particular depends on the power of expectation that the action will be followed journal of accounting management and economics , vol. 20, no. 2, 2018, pp.18-29 25 by a certain output and depends on the appeal of that output to the individual. this theory says that employees are motivated to make more strenuous efforts if they believe that the effort will result in a good performance appraisal. good appraisal will encourage organizational rewards such as bonuses, pay increases, or promotions. the rewards will affect the employee's personal goals. the theory of expectations helps explain why so many employees are not motivated at their jobs and simply do the minimum in performing their obligations. the key to the theory of expectations is the understanding of individual goals and the relationship between effort and performance, between performance and reward, and between reward and satisfaction of each goal. employee performance gibson (1997) identified performance as a result of work related to organizational goals such as quality, quantity, and work efficiency. performance is the result or level of success of a person as a whole in a certain period of time in carrying out the task then compared with the standard work results, targets that have been determined in advance and have been agreed together (rivai, 2004). rivai also stated that performance not only stands alone but also relates to job satisfaction and compensation, and is also influenced by factor of skills, abilities, and individual traits. in other words, performance is determined by one's ability and desire and environment. therefore, in order to have a good performance, a person must have a high desire to do and understand his or her work, and can be improved if there is a suitability between work and ability. according mangkunegara (2001), performance is the result of work seen from the quality and quantity achieved by employees in carrying out their duties in the responsibility given to them. the high or low performance of a worker is related to the reward system applied by an agency/organization where they work. giving an award from the company to employees inappropriately can affect a person's performance improvement. samsudin (2005) mentioned that the performance is the level of achievement of an assignment of an employee, unit, or division by using an existing capability also by paying attention to the limits that have been set to achieve the goals of an organization/company. performance is a benchmark of how much a company should reward its employees. mathis and jackson (2009) revealed that performance is simply what employees do or do not do. performance is the result of work that is a comparison between real work with a predetermined work standard (dessler, 2013). according prawirosentono (2012), performance is if a person or group of people in the organization can achieve the results of work in accordance with the authority and responsibility in order to attempt to achieve the objectives of the relevant organization lawfully and in accordance with the moral and ethical. kasmir (2016) defined briefly, performance can be interpreted as work results and attitudes of employees that have been achieved in a certain period that is usually 1 year to complete all the tasks and responsibilities given. performance measurement can be seen through the ability of an employee in completing all tasks and responsibilities provided. that is, in performance contains elements of achievement standards that must be met, so for those who reach the standards that have been set means to perform well or otherwise for those who are not achieved are categorized as underperforming or not good. job satisfaction job satisfaction based on davis (1995) is the overall feeling of employees about their likes or dislikes for their own work. employees become part of an organization, they can be believed to have a set of desires, needs, passions, and past experiences that become one and form the work expectations. thus, job satisfaction can be seen from the appropriateness between a person's expectations and the rewards provided by the job. from the explanation, it can be interpreted that job satisfaction refers to an employee's attitude towards his or her work. spector (1997) described job satisfaction simply is how much a person likes a job. some people love it to make it the main one, some people hate it and do the job because it has to. job satisfaction is related to how management concerns with the physical and mental well-being of its workers. journal of accounting management and economics , vol. 20, no. 2, 2018, pp.18-29 26 anoraga (1998) also explained that job satisfaction is an employees’ assessment of how far their job satisfies their needs. job satisfaction is related to attitudes of employees on their work, work situation, and cooperation between leaders and fellow employees. job satisfaction is a general attitude result of some special attitudes on aspects of work, self adjustment, and individual social relationships outside of work. job satisfaction actually includes security feeling and has aspects such as socioeconomic aspect (salary and social security), social psychology aspect (opportunity for progress and opportunity for reward), and so on. robin and jugde (2013) argued similarly with spector which stated that job satisfaction is reflected in positive feelings about a job resulting from the evaluation of its characteristics. the higher the job satisfaction of employees, the more positive they will look at they work and vice versa. aspects that affect a person's job satisfaction may vary depending on the background. if employees come from a poverty background, pay is a key aspect that affects job satisfaction, but if employees come from a good economic background, then pay is not a determinant of job satisfaction. job satisfaction is not always related to job condition. employee personality is also decisive, if employees have good core evaluations, they will feel job satisfaction because they feel challenged and fulfilled by their work. employees who have a poor core selfevaluation will give up when facing difficulties in the job so they will tend to be in a tedious and repetitive work. organizational support according to hutchinson (1997), perceived organizational support (pos) is the organization's commitment to its employees as individuals. organizational commitment to employees can be given in various forms, ranging from extrinsic (material) such as wages, bonuses, benefits, and others to extrinsic commitments (nonmaterial) such as praise, attention, acceptance, information, intimacy, selfdevelopment, and more. rhoades and eisenberger (2002) argued that perceptions of organizational support are employees' perceptions of the extent to which the organization assesses the contribution that employees provide to companies, lends support to employees while performing tasks, and cares about the well-being of employees. when organization provides high support to employees, employees will integrate themselves with the company, so they will assume with their membership in the organization then they will feel they have a responsibility to the company to contribute and perform optimally. employee's perception of organizational support is an assertion of employees that it is the policy and procedure of the organization. for employees, organization is an important source for their socio-emotional needs such as respect, caring, and tangible benefits such as salaries and medical benefits. feelings appreciated by an organization help meet employee needs for approval, esteem, and affiliation. according to robbins (2008), organizational support is a level up to where employees believe organization appreciates their contribution and cares about their well-being. when management is not supportive in the eyes of employees, employees can see all tasks that are given as something unpleasant and show work that has not been effective for the organization. hypothesis development and research model the influence of pos on job satisfaction robbins and coulter (2012) explained that if employees get support from the organization then they will have job satisfaction and lower turnover rates. babin and boles (1996) stated in their research that pos has a positive effect on job satisfaction. rhoades and eisenberger (2002) explained in their research that pos has a positive effect on job satisfaction. allen, shore, and griffeth (2003) stated in their research that pos positively affects as a mediation between hr support and job satisfaction. h1: pos has a positive effect on job satisfaction. the influence of job satisfaction on employee performance armstrong (2012) explained that if the organization meets the factors that lead to job satisfaction, then employees will journal of accounting management and economics , vol. 20, no. 2, 2018, pp.18-29 27 produce high performance. this happens due to the emergence of motivation that is formed after employee job satisfaction is achieved. job satisfaction encourages employees to perform well. wanous (1974) found that job satisfaction and employee performance affect each other positively. petty, mcgee, and cavender (1984) explained in their research that job satisfaction has a significant positive effect on employee performance. hussin (2011) in his thesis research showed that job satisfaction affects the employee performance positively. h2: job satisfaction has a positive effect on employee performance. the influence of pos on employee performance armstrong (2006) stateed that if an organization supports its employees, employees will be able to develop themselves and with increased capabilities, then employees will be able to perform better. rhoades and eisenberger (2002) stated that pos has a positive effect on employee performance. shanock and eisenbeger (2006) stated in their research that pos has a positive effect on employee performance. karatepe (2011) conducted a study explaining that pos has a positive effect on employee performance. h3: pos has a positive effect on employee performance. job satisfaction mediates the influence of pos on performance miao (2010) explained in his research that job satisfaction is a full mediator in the relationship between pos and performance. kartepe (2011) explained in his research that job satisfaction fully mediates the relationship between pos and performance. h4: job satisfaction mediates the relationship between pos and employee performance. figure 1. research model research method this research is quantitative research, because the data used to analyze the influence between variables are expressed by numbers. the objects of this research are the variable of employee performance, job satisfaction, and organizational support. while the location of the research is lipi center of oceanographic research which is a government-owned institution located in ancol, north jakarta. the subjects of this study are researchers at lipi center for oceanographic research. primary data in this study was obtained directly from the respondents through questionnaires about pos, job satisfaction, and employee performance. primary data in this study was obtained from the answers of the respondents that are the researchers of center of oceanographic research in north jakarta. data collection in this research was conducted by survey method that was using a questionnaire containing the items of the constructor or variable measurement used in the research model. the questionnaire model used was a closed questionnaire. sample determination method used in this research is simple random sampling method with saturated sampling technique using slovin method. population in this research is 101 researchers of lipi center of oceanographic research in north jakarta. with a 5% error rate, then the number of subjects in this study is 81 people. response rate in this study is 92.5% and the criteria could fit in the superior category. furthermore, the journal of accounting management and economics , vol. 20, no. 2, 2018, pp.18-29 28 questionnaires distributed were as much as 87 questionnaires. analysis technique variable measurement tool used in this research is interval data measurement. this research was conducted to test the model of multiple relationship between variables, involving many variables and information obtained that are simultaneous, so that quantitatively, the analysis technique used is partial least square model estimation. and the mediation test used sobel test. results testing of structural model (inner model) the structural model in the pls was evaluated by using r^2 for the dependent variable and the path coefficient value for the independent variables which are then the significance was assessed based on the t-statistic value of each path. the structural model of this research can be seen in the following figure: figure 2. display of pls bootstrapping structural model results, 2018 to assess the significance of the prediction model in structural model testing, it can be seen from the t-statistic value between the independent variables to the dependent variable in the path coefficient table in the smart pls output below: table 1. path coefficient (mean, stdev, t-value) original sample sample mean standard deviation t-statistics pos-> satisfaction 0.5495 0.5668 0.0622 8.8259 satisfaction-> performance 0.5682 0.5688 0.0626 9.0716 pos-> performance 0.3275 0.3333 0.0717 4.5672 journal of accounting management and economics , vol. 20, no. 2, 2018, pp.18-29 29 sobel test sobel test for pos → job satisfaction → performance the result of sobel test statistic (z statistic) test is 6.3263 bigger than z table at critical value of 0.05 (1.96), so it can be concluded that job satisfaction mediates the effect of pos on performance. table 2. path coefficient (mean, stdev, t-value) job satisfaction performance pos direct effect 0.5495 0.3275 indirect effect 0.3122 total effect correlation value 0.5495 0.5490 0.6398 0.6388 job satisfaction direct effect 0.5682 indirect effect total effect correlation value 0,5682 0.7475 direct, indirect, and total effect in table 2, it can be seen pos has a direct influence of 54.95% on job satisfaction and 32.75% on performance, then pos has an indirect effect on performance of 31.22% after passing the mediation variable. correlation value of pos to job satisfaction is 54.90% which means influental and correlation value of pos to performance is 63.88% which means strong. while job satisfaction as mediation variable has a direct relationship to performance of 56.82% and correlation value to performance of 74.75% which means strong. hypothesis testing first hypothesis testing the first hypothesis testing is intended to see the effect of pos on job satisfaction. based on test result, pos obtains original value sample estimate equal to 0.5495 with t-statistic value 8.8259 > 1.66388 (t-table) which means that pos variable has positive significant effect to job satisfaction with 5% significance level. from the result obtained, it can be concluded that the third hypothesis is accepted. second hypothesis testing the second hypothesis testing is intended to see the effect of job satisfaction on performance. based on test result, job satisfaction obtains original value sample estimate equal to 0.5682 with t-statistic value of 9.0716 > 1.66388 (t-table) which means that job satisfaction variable has significant positive effect to performance with 5% significance level. from the result obtained, it can be concluded that the fourth hypothesis is accepted. third hypothesis testing the third hypothesis testing is intended to see the effect of pos on performance. based on test result, pos obtains the original sample estimate value of 0.3275 with the value of t-statistics of 4.5672 > 1.66388 (t-table) which means that pos variable has a significant positive effect on performance with a significance level of 5%. from the result obtained, it can be concluded that the fifth hypothesis is accepted. fourth hypothesis testing the fourth hypothesis testing is intended to see job satisfaction as a mediator between the effect of pos on performance. the result of sobel test gives sobel test statistic (z statistic) value of 6.3263 which is bigger than z table at critical value 0.05 (1.96), so it can be concluded that job satisfaction mediates the influence of pos to performance. this result shows that the seventh hypothesis is accepted. discussion the influence of pos on job satisfaction the result of the third hypothesis test shows the positive and significant influence between pos on job satisfaction. in the perception index, the indicator with highest value of the pos variable is in the " organization assessing value", it can be journal of accounting management and economics , vol. 20, no. 2, 2018, pp.18-29 30 interpreted that pos has an effect on job satisfaction as the organization considers the value of the researchers of lipi center for oceanographic research. values here can be interpreted as a way researchers see a thing or problems that occur in the work. researchers will feel satisfied if the organization hears the value of the researchers as input to implement a policy or solve a problem. this is in line with the research of babin and boles (1996) who stated in their research that pos positively affect job satisfaction. the greater role of the organization will have a significant effect on employee performance and satisfaction. another study of rhoades and eisenberger (2002) also explains that pos has an effect on job satisfaction. organizational support will cause employees to get job satisfaction and a positive mood. allen, shore, and griffeth (2003) also stated in their research that pos influences as a mediation between hr support and job satisfaction. the study explains the greater support and offer either related to work or outside the work of the organization, then it will cause satisfaction on the employees. the influence of job satisfaction on employee performance based on the results of the fourth hypothesis testing can be drawn the conclusion that the variable of job satisfaction has a significant positive effect on employee performance. from the value of the perception index, job satisfaction earns the highest indicator value on “good communication with organization”. researchers of lipi center for oceanographic research can produce good performance supported by good communication with the organization. this causes a sense of satisfaction in the organization because it has supported the researchers with the communication so that the performance of the researchers will be good because the loss of wrong perception between two parties. this research result is in line with previous research which also explains that job satisfaction affects employee performance. wanous (1974) found that job satisfaction and employee performance affect each other. the study explains that extrinsic job satisfaction will result in performance and performance will result in intrinsic satisfaction. petty, mcgee, and cavender (1984) also explained in their research that job satisfaction affects employee performance. the research describes that the role of the organization is to meet employee job satisfaction in order to create performance improvement. in addition, hussin (2011) in his thesis research showed that job satisfaction affects employee performance. hussin explained that the components of job satisfaction such as promotion, work itself, supervision, and co-workers have a positive relationship with employee performance. the influence of pos on employee performance based on the results of the fifth hypothesis testing can be drawn the conclusion that the pos variable has a significant positive effect on employee performance. in the perception index, pos scores highest on the indicator “organizations considers values”. researchers working at lipi center for oceanographic research more easily improve their performance when organization considers their value. this will increase morale because of the sense of being respected and acknowledged by the organization, so that researchers can work without ignoring the values they believe in their work. the result of this study is consistent with the research of rhoades and eisenberger (2002) which suggests that positive organizational support can lead to additional roles of employees to take risks, provide inputs to build and explore capabilities, and talents for the benefit of the organization. organizational support will also make employees help other employees to achieve good performance. research of shanock and eisenbeger (2006) also states that pos has a positive effect on employee performance. the study explains that the impact of organizational support will create good in-role performance and extra-role performance in improving performance. in addition, karatepe (2011) conducted a study explaining that pos positively affects employee performance. karatepe explained in his research that organization provides support through the hospitality of managers who provide support and assistance on employee issues, then the employees will show the performance with high quality. journal of accounting management and economics , vol. 20, no. 2, 2018, pp.18-29 31 job satisfaction mediates the influence of pos on performance based on the results of sobel test calculation to see job satisfaction as a mediator between the effect of pos on performance, it can be concluded that job satisfaction mediates the relationship between pos and performance. thus, by increasing job satisfaction will improve employee performance. based on the perception index, job satisfaction can be improved by improving “good communication with organization” between researchers of lipi center of oceanographic research and lipi organization. with good communication, both parties will be able to avoid misunderstandings in work. the result of this study is in line with the research of miao (2010) who explained in his research that job satisfaction is a full mediator in the relationship between pos and performance. managers can improve pos through programs that provide value to employees' contributions such as rewards that link performance with rewards that will increase job satisfaction. to increase job satisfaction, managers must also suppress the possibility of conflict between work and family responsibilities of employees. if job satisfaction increases, then performance will also increase. kartepe (2011) also explained in his research that job satisfaction fully mediates the relationship between pos and performance. if organizational support has been perceived adequately by employees in various forms of appreciation and opportunity, then job satisfaction will increase because of the satisfaction felt by employees. thus, high job satisfaction will result in optimal performance. conclusion pos has a significant positive effect on job satisfaction this study shows that pos affects job satisfaction. researchers from lipi center of oceanographic research get satisfied when the organization supports them, this is due to the feeling of being recognized and appreciated. so this raises the feeling of satisfaction because they feel the organization gives something that is the rights of researchers. the greater the support and the good offer associated with the work or not from the organization, then it will cause employee satisfaction. support both in material and immaterial form will result in satisfaction for individuals working in the organization. job satisfaction has a significant positive effect on employee performance research that has been done shows job satisfaction affects employee performance. this can be concluded because when the researchers of lipi center of oceanographic research get job satisfaction, it is a sign that their needs and objectives both externally and internally met, so that the impetus to perform well will emerge. job satisfaction will give rise to the spirit to maintain the satisfaction or increase the satisfaction by providing optimal performance. pos has a significant positive effect on employee performance this study concludes that pos affects employee performance. this is because the support from the organization for researchers of lipi center of oceanographic research do work well. when researchers feel the organization has facilitated them to work well, then their performance will increase. organizational support can lead to additional roles of employees to take risks, provide inputs to build and explore capabilities, and talents for the benefit of the organization. this can happen because the organizational support will bridge and help researchers to produce good performance. job satisfaction mediates the influence of pos on performance this study concludes that job satisfaction mediates the influence of pos on performance. the influence of pos on performance will increase when through job satisfaction as a mediator. the relationship of pos to performance will be high when job satisfaction occurs in employees. the support given from the organization to the employee will facilitate the employees to grow and become a sign of organizational awareness of employees, so that job satisfaction will occur, and the higher job satisfaction perceived by employees, then the performance also increases in order to journal of accounting management and economics , vol. 20, no. 2, 2018, pp.18-29 32 maintain satisfaction or increase job satisfaction itself. implication theoretical this study adds to the literacy on the influence of organizational support on employee performance and is expected to expand the knowledge especially in the field of human resource management. practical this study provides practical implications for organizations, especially organizations that conduct research on natural knowledge in the application of organizational support for performance. thus, the organization can provide facilities and support to its employees to be able to increase its ability to take risks because the greater the risk the success will also get bigger. while the highest value of outer loading for the pos variable is “organization considering value”. organizations in making policies and decisions should make employee value judgment a major one because from the results, it is seen that employees appreciate organizational support that considers their values. pos serves as an organizational support that will facilitate employees to work to produce maximum performance. employees will also appreciate the organizational support that considers their values in work. both elements in the formation of this good performance, synergize each other so as to create satisfaction in the individual so that will produce the results expected by the organization. limitation the evaluation of the results of this study takes into account the limitations that may affect the results of this study, among others: 1) this research only focuses on public organization, and the result may different with the private organization. 2) this research needs others variabels, especially independent variabel to seek another source of impact for employee performance. suggestion evaluation of the results of this study is still lacking and not perfect, so for the next studies, need to consider several things as follows: 1) future research can use motivation as the intrinsic element that may have the possibility to increase the performance. 2) future research can use spesific motivation theory as the another independent variable such as, career motivation. references regulation of head of lipi number 1 year 2014 dated may 9, 2014 allen, d. g., l. m. shore, and r. w. griffeth. 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(1997). job satisfaction..usa: sage publication. storey, j., p. m. wright, and d. ulrich. (2009). the routledge companion to strategic human resource management. abingdon: routledge. wanous, p. j. (1974). a causal-correlational analysis of the job satisfaction and performance relationship. journal of applied psychology, 59(2): 139-144. correspondence to indriyana.iainska@gmail.com received: 30 august 2019 accepted: 29 november 2019 published: 16 december 2019 jurnal akuntansi, manajemen dan ekonomi vol.21, no.3, pp. 61-69 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction law no. 28 of 2007 article 1 paragraph 1 regarding taxes explains that taxes are mandatory shares to the state owed by individuals or entities that are forced based on statutory regulations and do not get direct returns that are used for the needs of the state in the prosperity of the people. tax has an important role for a country. one of them is a source of income for the country that can help the development of the country. as a source of state revenue, taxes are a major concern and efforts made to maximize their implementation. tax revenue is the main focus for the directorate general of taxes and the government. the directorate general of taxes seeks to optimize tax revenue and in its implementation still encounters various obstacles, both internal and external (rahayu & lingga, 2009). through law no. 11 of 2016 regarding tax amnesty or the tax amnesty act 28 june 2016 , the government enacted tax amnesty or tax amnesty from july 2016 to 2017 as an effort to increase tax revenue . in the website's finance ministry tax amnesty aimed at first enhancing economic growth through the repatriation of assets, which is characterized by an increase in domestic liquidity, improved exchange rate, a decrease in interest rate, and an increase in investment, and second scaling up of data bases of taxation more valid, comprehensive and integrated and third, increase tax revenue. quoted from www.kemenkeu.go.id, from the ransom target of rp 165 trillion, which reached rp 114.54 trillion. for the target of 2 million tax amnesty participants, only 973,426 taxpayers submit. domestic and foreign declaration targets that are able to exceed the specified target, namely rp 4,737.56 trillion. data from the world bank shows that illegal funds for indonesian citizens outside reach rp 4,000 trillion and this shows that tax amnesty has not been able to bring the funds home. tax amnesty itself is government’s efforts to increase tax compliance. tax compliance is a condition that taxpayers can fulfill all their tax obligations. this is known from the increasing amount of tax revenue in this country. the higher tax revenue, it can be inter determinant tax compliance by tax fiscus perception purwati harjayani1,indriyana puspitosari2 12sharia accounting departement, islamic economic and bussiness faculty, iain surakarta, indonesia abstract tax has an important role in the country, namely as one of the largest sources of revenue. the existence of obstacles in tax revenue makes the government or in this case the directorate general of tax implement several new policies aimed at increasing tax compliance. however, the target of tax revenue is still not realized in accordance with the planning that has been done.thus the study aims to determine the effect of the automatic exchange of information system, the modern tax administration system, and the tax audits of tax compliance. the object examined in this study is tax office in the area of soloraya. this type of research is quantitative research. the population in this study is a tax employee who is in the position of account representative (ar) and functional examiner in the tax office in the soloraya. the sample of this study was selected using a simple random sampling technique and obtained 75 respondents. this study uses primary data obtained from questionnaires that have been filled by respondents. the results of the study indicate that the automatic exchange of information system and tax audit have an effect on tax compliance, while the modern tax administration system has no effect on tax compliance . keywords automatic exchange of information systems, modern tax administration systems, tax audits, tax compliance. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 61-69 preted that tax compliance is also increasing. the need for tax compliance is now increasing rapidly with the country's debt crisis in the global economic environment. this means that all revenue authorities (or governments) throughout the world must strive to achieve the best possible tax compliance results, namely to maximize the overall level of compliance with tax laws (nkundabanyanga et al., 2017). after the tax amnesty ended, a new policy emerged as a follow-up to the government, the automatic exchange of information (aeoi). automatic exchange of information (aeoi) is a system of exchange of taxpayer account information between countries. (andiani, 2017). the existence of this aeoi is expected to increase taxpayer compliance, because this aeoi policy requires automatic exchange of information between countries. in addition to the aeoi, the government's efforts to increase tax compliance are by implementing a modern tax administration system. the existence of a modern tax administration system makes it easier for taxpayers in terms of reporting and paying taxes. in addition, with the modern tax administration system, taxpayers do not require a long time to report their taxes. with a modern tax administration system it is more efficient and time effective, as well as saving paper. p enelitian aryati and putritanti (2016), and ariesta and latifah (2017), shows that the modern tax administration system has an influence on tax compliance. the results of this study differ from rahayu's (2009) study which states that the modern tax administration system has no significant effect on taxpayer compliance. another effort to improve tax compliance in order to achieve the tax revenue target that can be done is to conduct tax audits. in pmk17 / pmk.03 / 2013, inspection is an activity to collect and process data, information, and evidence carried out objectively and professionally in accordance with the provisions of the audit which aims to test compliance with the fulfillment of tax obligations and for other purposes in implementing the provisions of the laws and regulations. existing laws. the results of setia's research (2015) show that the frequency of tax audits has a negative influence on corporate taxpayer compliance. the research of cahyonowati, ratmono, and faisal (2012), shows the results that the tax audit does not have a significant effect on tax compliance. whereas in prayatni and jati's (2016) research, tax audits have a positive effect on tax compliance. in this research, compliance in taxation will be seen from the perspective of tax authorities. the study was conducted at kpp pratama in solo raya which included kpp pratama boyolali, kpp pratama klaten, kpp pratama sukoharjo, kpp pratama karanganyar, and kpp pratama surakarta. the phenomenon of tax revenue on sto in solo raya same a case with national tax revenue. namely the realization of tax revenue does not meet planned targets. tax compliance tax compliance is defined as a condition where taxpayers can fulfill all their tax obligations and carry out their tax rights. (faithful, 2015: 18). from the fiscal point of view, tax compliance can be defined as a condition where tax revenue increases and decreasing deviation. a taxpayer is said to be compliant with taxes if they have fulfilled their obligations to report taxes without having to be covered and pay according to the amount of tax calculations performed. based on the decree of the minister of finance no. 544 / kmk.04 / 2000, tax compliance is identified from the timely submission of tax returns for all types of taxes in the last 2 years, does not have tax arrears for all types of taxes, except obtaining permission to repay or delay tax payments, has never been sentenced for committing a criminal offense in the field of taxation within the last 10 years, in the last 2 years carrying out accounting and in the case of taxpayers having been examined, correction at the last examination for each type of tax owed at most 5 %, taxpayers whose financial statements for the last 2 years have been audited by a public accountant with an unqualified opinion, or an opinion with an exception as long as it does not affect fiscal profit and loss. automatic exchange of information (aeoi) system automatic exchange of information or information exchange is an international collaboration in which the cooperation is related to the information disclosure system regarding taxpayer accounts from one country to another country (andiani, 2017). in another meaning, automatic exchange of information is international cooperation in the field of automatic exchange of financial information as an effort to overcome the world financial crisis based on international agreements and jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 61-69 every country involved must meet the requirements including having rules or regulations governing, conformity of reporting formats tax, and has a strong database (media keuangan, 2017). this policy involves the director general of taxes and designated financial institutions. aeoi is a policy to spy on taxpayers who have assets abroad and are not disclosed in their tax reporting. so this policy does not involve taxpayers directly. the director general of tax will later work closely with the banks to be able to peek at the taxpayer accounts that are staked out. of course this is legal because the government already has regulations governing it, namely perppu no. 1 of 2017 concerning access to information openness. besides being legal, this regulation can guarantee the financial data that is exchanged. to be more secure, the implementation must be adapted to international protocols. for countries that have implemented aeoi, they will get taxation authority channels for financial information and reporting standards and data exchange transmission systems. this policy has been followed by 100 countries. underlying this policy include the low level of tax compliance for cross-border transactions and the limited tax authority to oversee taxpayer compliance (media keuangan, 2017). with the implementation of this policy, it is expected to be able to bring home taxpayer funds abroad. another hope is to prevent non-compliance of taxpayers in the future. the aeoi policy is expected to have a deterrent effect on tax evaders. the data exchanged includes the identity of the account holder, account number, identity of the financial institution, account balance, and income derived from the account (interest). indicators to measure this variable are the rules that set, the suitability of the tax reporting system, and the suitability of a strong and standardized information technology database. (media keuangan, 2017). modern tax administration system modern tax administration system is closely related to tax reform. tax administration reform is the improvement or improvement of administrative performance, both individually, in groups, and institutions so that it is more efficient, economical, and faster (devano & rahayu, 2006) . modern tax administration system is defined as a renewal of the tax administration system by utilizing information technology systems namely software, hardware and human resources aimed at increasing the effectiveness of supervision (devano & rahayu, 2006). in another sense, the modern tax administration system is an update of the tax administration system from manual to technology based or in this case computer based. tax administration reform programs and activities are realized in the implementation of a modern tax administration system that has a special characteristic, namely service improvement for each taxpayer through the establishment of an account representative and complaint center to accommodate taxpayer objections, as well as embracing technological advances through the development of tax information systems (sip) become an integrated tax administration system (sapt) that is controlled by a case management system in a workflow system and various esystem based services such as espt, efilling, e-payment, taxpayer's account, eregistration, and e-counceling and are expected control mechanisms become effective (rahayu & lingga, 2009). according to saruan (2015), along with the development of it, the taxation system in indonesia has also evolved from an official assessment system to now a self assessment system. this system gives full trust to taxpayers in fulfilling their tax obligations while the tax authorities conduct full supervision through inspection procedures. in other words, the modern tax administration system is a form of administrative system in terms of tax payment and reporting using computer technology. the indicators used include the administration system, the effectiveness of supervision and professional human resources. (devano & rahayu, 2006) tax audits examination according to pmk-17 / pmk.03 / 2013 is an activity to collect and process data, information, and evidence conducted objectively and professionally in accordance with the provisions of the examination which aims to test compliance with the fulfillment of tax obligations and for other purposes in implementing the provisions of the laws and regulations. existing invitation. tax audits are divided into two types, namely field and office audits. field inspection is a tax audit carried out at the residence or position of the taxpayer, place of business or taxpayer work, and other places deemed necessary by the tax inspector. while the jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 61-69 office inspection is a tax audit conducted at the directorate general of taxes office. in the tax audit the process is quite long, especially in the verification process. in connection with a tax audit, there is a tax examiner or socalled tax examiner. tax audits are carried out as a tool to improve taxpayer compliance, besides that tax audits perform three functions, namely as an educational tool, a tool for detecting tax violations and a tool for the prevention of other taxpayers who intend to violate (fitriana, 2017). the examination is carried out to make taxpayers found to have deviated from fulfilling tax obligations in order to be more compliant in carrying out their tax obligations (prayatni & jati, 2016). taxpayers who have been examined and proven to have cheated in their tax payments are obliged to immediately correct or submit their tax returns correctly, completely and on time and are quite cooperative (fitriana, 2017). based on pmk-17 / pmk.03 / 2013, the tax audit aims to test compliance with the fulfillment of tax obligations and / or for other purposes in the context of implementing the provisions of tax legislation. as a tool to test tax compliance, tax audits can be a lesson for taxpayers. examination aimed at testing compliance will help detect violations committed by taxpayers. with the examination, the taxpayers will become more compliant (prayatni & jati, 2016). in addition to testing compliance, the examination also aims for other purposes. based on pmk-17 / pmk.03 / 2013 chapter iv examination for other purposes article 69 explained that the scope of the examination for other purposes in order to carry out the provisions of tax legislation may include the determination, matching, or collection of material related to the purpose of the examination. one of them is related to filing an objection for taxpayers. indicators used to measure this variable are education tools, violation detection, and prevention of violations (fitriana, 2017). automatic exchange of information (aeoi) and tax compliance system . the new policy of information exchange system between countries is able to increase taxpayer compliance. this is because the tax authority will track taxpayers' accounts abroad automatically. thus it can minimize tax avoidance. in andiani's research, et al (2017) it was mentioned that aeoi system knowledge has a positive influence on tax compliance. from this description, the following hypotheses can be drawn: h 1: system automatic exchange of information (aeoi) positive effect on tax compliance. modern tax administration and tax compliance system the modern tax administration system is closely related to tax reform, namely the renewal of tax both systems and regulations. the more modern the tax administration system, the increasing taxpayers who are willing to report and pay taxes. all that is caused by easy access and more effective and efficient. this is supported by research by aryati and putritanti (2016) and research by ariesta and latifah (2017) which states that the modern tax administration system has a positive effect on tax compliance. based on this description, the hypothesis can be drawn: h 2 : modern tax administration system has a positive effect on tax compliance. tax audit and tax compliance the tax audit aims to test the compliance of taxpayers in meeting their tax obligations. compliance itself is considered from the accuracy of reporting and data suitability. thus, the more frequently examined, the more taxpayers will be indicated non-compliance with taxes. in prayatni and jati's (2016) research, it is explained that tax audits have a positive effect on tax compliance. from this description, the hypothesis can be drawn: h 3 : tax audit has a positive effect on tax compliance. methods this study using quantitative methods that are presented with numbers. quantitative quantitative methods are used to test the effect of the aeoi system, modern taxation system and tax audits on tax compliance. population, samples, sampling techniques the population used in this study are employees of account representative (ar) and functional examiner at kpp pratama soloraya. ar was chosen as the population because since the end of the tax amnesty, account representatives have received additional duties as tax auditors. the sampling technique of this study use probability sampling. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 61-69 the number of samples used in this study was calculated using the formula (ferdinand, 2006): n = number of independent variables x 25 information: n = number of samples in this study, the number of independent variables used was 3 consisting of aeoi system, modern tax administration system, and tax audit. thus, the samples used in this study amounted to 75 samples obtained from: 3 x 25 = 75 variables and operational definitions of research variables the research variables used in this study are: independent variable in this study the independent variables consisted of: a. aeoi system (x1) automatic exchange of information is international cooperation in the field of automatic exchange of financial information in an effort to overcome the world financial crisis based on international agreements and every country involved must meet the requirements including having rules or regulations governing, conformity with the tax reporting format, and having strong database. (financial media, 2017) . the indicators used are: regulations that stipulate,, compliance of the tax reporting system, and compliance with strong and standardized database information technology b. modern taxation system (x2) modern tax administration system is defined as a renewal of the tax administration system by utilizing information technology systems namely software, hardware and human resources aimed at increasing the effectiveness of supervision (devano & rahayu, 2006). indicators of the modern taxation system are: administration system effectiveness of supervision professional human resources c. tax audit (x3) audit is an activity of collecting and processing data, information, and evidence objectively and professionally in accordance with the provisions of the examination is intended to test the compliance fulfillment of tax obligations and for other purposes in implementing the provisions of the legislation that is ( pmk-17 / pmk .03/2013 ) . the tax audit indicator in this study uses the fitriana indicator (2017): educational tools, detection of violations, and prevention of violations dependent variable the dependent variable in this study is tax compliance (y) . tax compliance is defined as a condition where taxpayers can fulfill all their tax obligations and carry out their tax rights. (faithful, 2015: 18). the indicators used in this study refer to setia's (2015) research, namely: reporting compliance payment compliance bookkeeping compliance compliance audits data analysis technique of this research use multiple liniear regression analysis. multiple linear regression analysis is usually used to find out how much influence more than one independent variable has on a dependent variable (ghozali, 201 6 ). this method connects one dependent variable with many independent variables. in this study the dependent variable is tax compliance and the independent variable is the knowledge of the aeoi system, the modernization of the tax administration system, and the tax audit. the model of the relationship of tax compliance with the independent variables is arranged in the following function or equation: y = a + β 1 x 1 + β 2 x 2 + β 3 x 3 + e information: y = tax compliance a = constant x 1 = aeoi system x 2 = modern tax administration system x 3 = tax audit β 1 = coefficient of system variable aeoi β 2 = coefficient of modern tax administration system variables β 3 = coefficient of tax audit variables e = standard error hypothesis test the statistical test t shows how far the influence of one explanatory or independent variable individually in explaining the variation of the dependent variable (ghozali, 2016). if the significance <0.05 then h1 is accepted, it means that there is a significant influence of the independent variables individually on the dependent variable. results and discussion this research was conducted at 5 tax service offices (kpp) in solo raya. each tax service office has a different number of employees, especially for the account representative and functional examiner. the jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 61-69 description of the respondents of this study contains gender, age, degree / stratum, educational background, and work position. the results of the respondent's description are presented in the following table : table 1. demographic of respondents information total gender man 43 woman 32 total 75 age 20-40 years old 35 40-60 years old 40 total 75 degree d3 9 s1 45 s2 20 s3 0 others 1 total 75 educational background accounting 26 management 30 others 19 total 75 work position account representative (ar) 67 functional examiner 8 total 75 source: questionnaire data, 2019 based on the table above, it is known that the total respondents in this study were 75 respondents with a male gender of 43 respondents, and the remaining 32 were women. based on age, respondents who were obtained with an age range of 20 to 40 years were 35 respondents, and the rest were in the range of 40 to 60 years, as many as 40 people. from the table 1 it is known that based on the degree or stratum, most respondents have a s1 degree of 45 respondents, then followed by s2 of 20 respondents and then d3 of 9 people. whereas for others there is 1 respondent and for s3 there is none. educational background of the most respondents is management, as many as 30 people. then accounting for 26 respondents and another 19 respondents. based on the table above, it is known that most of the respondents who filled out the research questionnaire were account representative (ar) positions . as for the functional examiner position, there were only 8 respondents. the result of research instrument test show that all variable are valid and reliable. then the data questionnaire testing with classical asumption test before analyse with multiple liniar regression. the result shown in the following table: the normality test in this test uses the onesample kolmogorov smirnov test contained in the spss 22 program. the data is normally distributed if the residuals are normally distributed, which has a significance level above 5% (ghozali, 2013). table 2 . normality test results information value asymp.sig. (2-tailed) 0.061 source: primary data processed, 2019 the above table shows that testing of the residual regression equation gives a significance value above 0.05 which is equal to 0.061. so it can be concluded that the data in this study were normally distributed. a good regression model is that there is no correlation between independent variables. the occurrence of multicollinearity can be detected in several ways. but in this study will be seen from the value of variance inflation factor (vif) and tolerance value . a variable is said to occur multicollinearity if the vif value is more than 10 or the tolerance value is less than 0.10. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 61-69 table 3. multicollinearity test results variable tolerance vif conclusion aeoi system 0.822 1,21 6 no multicollinearity modern tax administration system 0.598 1,67 2 no multicollinearity tax audits 0.633 1,57 9 no multicollinearity source: primary data processed, 2019 the heteroscedasticity test in this study uses the glejser test . if the significance level of the aeoi system variable, the modern tax administration system, and the tax audit are less than 0.05, then it can be said to contain heteroscedasticity. the following heteroscedasticity test results are shown in the table below: table 4. heteroscedasticity test results variable sig conclusion aeoi system .173 no heteroscedasticity modern tax administration system 0.462 no heteroscedasticity tax audits 0.095 no heteroscedasticity source: primary data processed, 2019 the goodness of fit model to see that the model is fit. we use coefficient of determination r2 and f statistic to see the goodness of fit. table 5. model assessment test results r r square adjusted r square 0.591 .349 .321 source: primary data processed, 2019 the results of the coefficient of determination between the variables aeoi system, modern tax administration system, and tax examination with an adjust r square value of 0.321. so it can be concluded that the aeoi system, modern tax administration system, and tax audit can be explained 32.1%. while the rest is explained by other variables outside the research model of 67.9%. the f test is a joint test of the independent variables conducted to see the overall independent variable on the dependent variable. by using a significance of 5%, the results of the f test can be seen in table 6 that the significance is 0,000 and below 0.05. in addition, it can also be seen from the calculated f value compared to f table . the calculated f value of 12.668 is greater than the f table of 2.74. so it can be said that the model used is correct. table 6. statistical test results f f change sig. f change 12,688 0,000 source: primary data processed, 2019 this regression test aims to find out how much influence the aeoi system (x1), the modern tax administration system (x2), and the tax audit (x3) on tax compliance (y). by obtaining the spss program, the following results are obtained: table 7. multiple linear regression test results variable t significance aeoi system 2,050 0.044 tax administration system 1,137 .259 tax audits 3,112 0.003 source: primary data processed, 2019 from the table above, it can be seen that the multiple linear regression model in this study is as follows: kp = 7,343 + 0,099 saeoi + 0,111 sapm + 0,177 pp + e based on the multiple linear regression equation above it is known that the regression coefficient values of the aeoi system, the modern tax administration system, and tax audits are as follows: 1. constants (α) the constant value is 7.343 which means that if the three independent variables are considered constant, the average value of tax compliance is 7.343. 2. system automatic exchange of information (saeoi) the saeoi coefficient value is 0.099, which means that every time there is an increase or increase in the value of the jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 61-69 aeoi system by 1, it will increase the value of tax compliance by 0.099. 3. modern tax administration system (sapm) sapm coefficient value of 0.111, which means that every time there is an increase in the value of the modern tax administration system by 1, it will increase the value of tax compliance by 0.111. 4. tax audits pp coefficient value of 0.177 which means that every time there is an increase in the value of tax audits of 1, it will increase the value of tax compliance by 0.177. effects of the aeoi system on tax compliance based on the results of the t test or hypothesis test it is known that the calculated t value on the aeoi system variable (x1) is 2.050, while the t table is 1.996 obtained from the t table with a df table 71. from this value it is known that the calculated t value (2,050)> t table (1.996) with a significance value of 0,044 where the value is less than 0.05 (0.044 <0.05), which means that h 0 is rejected and h a accepted so that it can be explained that the system aeoi positive effect on tax compliance. these results indicate that the implementation of the aeoi system can improve tax compliance. the implementation of the aeoi system will make it easier for tax authorities or tax officials to track or find out taxpayers who avoid tax evasion or other fraud. thus the tax officer can take action against taxpayers who commit such fraud, so that taxpayers will feel deterrent and afraid to commit fraud or avoidance of taxes. the result is increased tax compliance and accompanied by increased tax revenue as well. the results are consistent with h 1 ie systems aeoi positive effect on tax compliance and also support the research of andiani, yuniarta, and yasa (2017) which describes the knowledge system aeoi positive effect on tax compliance. the effect of modern tax administration systems on tax compliance based on t test or tests of hypotheses known modern tax administration system has the value t arithmetic amounted to 1.137. when compared with t table then 1.137 <1.996 with 0.259 significance value> 0.05, which means that h 0 is accepted and h a rejected. so it can be explained that the modern tax administration system has no effect on tax compliance. these results indicate that whether or not a modern tax administration system is applied can improve tax compliance. for tax officials whether or not the modern tax administration system has an effect that results in lowering the level of taxpayer compliance. this is because despite using a manual tax administration system such as filling out tax returns manually, taxpayers will still report and pay their taxes. the implementation of a modern tax administration system can be said to be still new after the tax reform in 2016. tax reform is a change in the overall taxation system, including reforming tax administration, improving regulations, and increasing the sales base. even though the implementation of the modern tax administration system will be more effective and efficient, in actual circumstances many tax officials have to serve and guide taxpayers in filling out tax returns and reporting. with the implementation of the modern tax administration system it is quite easy for taxpayers to report their tax returns. however, not all taxpayers are able to do it themselves. most of them chose to go to the nearest tax service office and ask tax officials to help them fill out and report tax returns with this modern tax administration system. the results of this study are not consistent with h 2 is a modern tax administration system positively affects tax compliance. however, these results support rahayu's (2009) study which states that the modern tax administration system has no significant effect on tax compliance. effects of tax examinations on tax compliance in the tax audit variable, the calculated t value is 3.112 while the t table value is 1.996. when compared to 3.112 (t arithmetic )> 1.996 (t table ) with a significance value of 0.003 <0.05, it means h 0 is rejected and h a accepted so that it can be explained that the tax audit has a positive influence on tax compliance. the results of this test indicate that tax compliance will increase when tax audits are carried out until taxpayers who commit fraud. the tax audit aims to test tax compliance. the tax officer or in this case the functional examiner will carry out a tax audit of the tax jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 3, 2019, 61-69 payer. the more frequent tax auditors carry out tax audits, the level of tax compliance will also increase due to a sense of deterrent taxpayers who commit fraud. tax audits relate to tax assessments whereby the taxpayer will pay as much as the tax examiner's findings as outlined in the tax assessment. the more tax auditors make tax detection mistakes, the more tax evasion will be. a tax examiner must master technical tax audits in order to reduce detection errors. thus, when conducting a tax audit, the tax examiner truly controls and can convince the audited taxpayer. the test results are in line with h 3 which states that the positive effect on tax audits tax compliance. in addition, these results also support the research of humala (2015) and prayatni and jati (2016) which states that tax audits have a positive effect on tax compliance. conclusion taxes are the main source of state revenue. the amount of state revenue derived from taxes indicates the compliance of taxpayers in fulfilling their tax obligations. fiscus tax as a taxation apparatus considers that tax compliance is seen from the amount of tax revenue and the suitability of tax data provided by taxpayers with their reality. this study proves that the automatic exchange of information (aeoi) and tax audit systems affect tax compliance. while the modern tax administration system has no influence on tax compliance. limitations in this study are the results of the study only come from questionnaire data, so it is not exhaustive in its discussion. in addition, this variable only uses three independent variables, namely the aeoi system, the modern tax administration system and the tax audit whereas when seen from the coefficient of determination test, the three variables are only able to explain 32.1%, which means 67.9% is explained by other variables outside the research variable. research related to the aeoi system, modern tax administration system, and tax audits of tax compliance still has some shortcomings. so for future research there needs to be some suggestions for improving future research, considering that research on tax compliance seen from the perspective of the tax authorities is still not much. in the future, interviews can also be added to data collection techniques other than questionnaires. so we can get a picture of compliance with taxpayers from the perspective of the tax authorities more concretely.it should illustrate brief and clear results of study, contributions to new theories, and new ideas for future researches. here, the theoretical and practical implications should be written in paragraphs references andiani, l. d., yuniarta, g. a., ak, s. e., si, m., & yasa, i. n. p. (2018). pengaruh pengetahuan sistem automatic exchange of information (aeoi) dan sanksi perpajakan terhadap kepatuhan wajib pajak dalam membayar dan melaporkan pajak (studi empiris wajib pajak orang pribadi di kpp pratama singaraja). jimat (jurnal ilmiah mahasiswa akuntansi) undiksha, 8(2),1-11. ariesta, p.r, & latifah, l. (2017). pengaruh kesadaran wajib pajak, sanksi perpajakan, sistem administrasi perpajakan modern, pengetahuan korupsi, dan tax amnesty terhadap kepatuhan wajib pajak di kpp pratama semarang. jurnal akuntansi dewantara, 1(1),1-7. aryati, t.. (2016). pengaruh pemanfaatan teknologi dan modernisasi sistem administrasi perpajakan terhadap kepatuhan wajib pajak orang pribadi. jurnal riset akuntansi dan keuangan, 4(3), 1155-1168. cahyonowati, ratmono, & faisal. (2017). peranan etika, pemeriksaan, dan denda pajak untuk meningkatkan kepatuhan wajib pajak orang pribadi. jurnal akuntansi dan keuangan indonesia, 9(1),1-8. devano, sony, & rahayu. 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(2018). awasi potensi pasca amnesti pajak dengan aeoi. accessed date 16 januari 2019. journal of accounting, management, and economics vol. 19, no. 2, 2017, pp. 47-52 published by faculty of economics and business universitas jenderal soedirman published online on july 11, 2017 in http://jos.unsoed.ac.id/index.php/jame  correspondence to : sebelas maret university, indonesia. received: may 23, 2017 revised: june 6, 2017 accepted: june 20, 2017 introduction indonesia consumer is one of consumers who make high impulse buying. the results of research conducted by the agency of frontier consulting shows that the process of impulse buying or purchases that are not planned in indonesia is relatively large compared with consumers in america (www.marketing.co.id, 2012). the relatively high impulse buying in indonesia are in the range of 15% to 20% (www.marketing.co.id, 2012). the increase in impulse buying in indonesia is caused by an increase in various retail businesses. based on data, from 2007 to 2012, retail business in indonesia has grown up to 17.57% per year. in 2007, the number of retail in indonesia as many as 10,365 outlets, then in 2011, retail outlets in indonesia reached 18,152 scattered throughout the city of indonesia (www.marketing.co.id, 2013). researcher conducted pre-research related to impulse buying in retail in surakarta. the activity was conducted from november 12th to 13th, 2015. the results of the previous study showed that 95% of retail consumers had made unplanned purchases, while the rest had never made unplanned purchases. these results indicate that the behavior of impulse buying is interesting to be studied further because almost all consumers have made a sudden purchase outside the product planned to be purchased. on the other hand, retail competition was increased since the issuance of presidential decree no. 118/2000 which contained the issuance of retail from the pma negative list then international retailers began to enter the indonesian market. the survey results showed that carrefour, hypermart, and lotte mart showed the highest sales growth (www.marketing.co.id, 2013). the results are not much changed for the year of 2016. carrefour is still the largest retail in indonesia. according to www.minimarkettrak.com (2016), 97% of the retail market share in indonesia is dominated by carrefour, hypermart, and giant. the field phenomenon shows that local players have to work hard to survive in retail business in indonesia. national retail competitiveness should always be reinforced by effective and efficient strategies. one such strategy is related to impulse buying behavior of retail consumers wiyono, haryanto, dwi hastjarja k. b. economics and business faculty, sebelas maret university, indonesia abstract retail competition in indonesia is increasingly competitive after an international retail policy can take place in indonesia directly. the real impact, international retail dominance over national (local) retail is increasingly seen, especially seen based on sales turnover. the competition requires the right strategy. this study aims to explore retail consumer behavior in surakarta. the result of exploration shows that the main factor of decision of retail selection is retail location (28%). further factor of price (21%) and merchandise (15%). in addition, consumer shopping behavior shows that consumers when in shopping is not alone. subsequent findings indicate that most consumers do not make written planning when shopping so often buy products that are outside the initial planning (impulse buying). this is further strengthened when there is promotion (41%) and product placement strategy (23%). while the results of sem-pls analysis, the relationship between the variables that are constructed indicated that the variable of merchandise and in-store promotion has an effect on impulse buying. product quality and price variable do not affect impulse buying. furthermore, money available variable is not a moderating variable between in-store promotion and impulse buying. keywords retail; impulse buying; price; in-store promotion journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 47-52 48 the concept of impulse buying. impulse buying is an unplanned shopping behavior where the decision-making process is done quickly and does not consider information first (bayley & nancarrow, 1998). impulse buying is influenced by consumer emotions while shopping. park (2006) stated that a marketer should pay attention to the positive emotional state of a consumer while in the store. positive emotions are emotions that can create positive feelings in a person. the emotional state of a consumer can be influenced by various variables, such as merchandise, instore promotion, and also store atmosphere (rusdian, 1999). emotional state will make the two dominant feelings that are happy feeling and arousing desire (sutisna and pawitra, 2001). in addition, product quality and price variable are a crucial part of purchase decision. therefore, the study of the retail realm is based on multiple perspectives. the completeness of the merchandise creates a positive feeling while shopping for many alternative choices. in addition, instore promotion also impacts the mood of consumers. furthermore, a good and elegant store atmosphere can give a positive impression to the visiting customers. if the positive impression lasts longer then the store will be the customer’s preferred choice to make subsequent purchases (baker, et al., 1994). therefore, this study focuses on the emotional-forming variable that affects impulse buying. theoretical review impulse buying the definition of impulse buying by bayley & nancarrow (1998) in park, kim, & forney (2006) is a suddenly complex buying behavior in making decision that ignores information processing and comparison processes. the meaning of the definition is clear, that is consumers ignore the various considerations in purchase decision as the impact of the decision process done spontaneously. in line with bayley & nancarrow, rook & gardner (1993) in foroughi, buang, senik, & hajmisadeghi (2013) stated that impulse buying is an unplanned purchase. this type of purchase is characterized by quick and subjective bias decision due to the suddenly emerged desire. impulse buying is a buying activity that is not a search when shopping, done by consumer outside the planning or shopping list. according to abdolvand, et al. (2011), variable of impulse buying is influenced by situational and internal factors. situational factors are factors outside the consumer and have an impact on emotions, such as sales promotion, product variety, price, store atmosphere, and so on. further factors are the internal side of consumers that is the situation in consumer such as consumer characteristic and mood. characteristic in this case includes consumer personality such as introvert or extrovert. in addition to the personality, that is included in the personal characteristic is the power of consumer innovation. mood includes feeling of comfort, feeling of being dominant, and arousal (abdolvand, et al. 2011). product quality, price and merchandise product quality is the overall characteristics and product features that refer to the product’s ability to meet the perceived standards (alex & thomas, 2004). this definition indicates that a product that is able to meet the standard, then the product is a good product that is the product that consumers expect. price is a sacrifice that consumers spend to get a product (zeithaml, 1988). based on the definition, then consumer has a perception of the ability to buy a product. this leads to the conclusion that the measurement of price cannot be directed to cheap or expensive terms. merchandise is defined as a variety of products sold in retail (utami, 2010). the diversity of these products can be based on large and or deep. the more complete the retail merchandise, the more likely impulse buying occurs. rohm & swaminathan (2004) in muruganantham & bhakat (2013) stated that consumers are motivated by the convenience when shopping for quality goods and also the right price. the study emphasizes that the quality of products sold and the price of products that are considered “fit” is a special attraction for consumers to make a purchase. according to wong & zhou (2003 in tinne (2010), impulse buying is also influenced by product characteristics including product quality, merchandise, and price. consumer perception of product quality as reflected by brand, display, journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 47-52 49 packaging, and son on are conditions that can lead consumer to buy spontaneously. as well as for the diversity of merchandise sold by retailers, the more retailers perceived to have deep and wide merchandise the greater the impulse buying. in-store promotion inman, mcalister, & hoyer (1990) stated that promotion is all signs or other indicators to attract the attention of consumers through various offers, such as discount, bundling, and so on. the definition clearly indicates that the company or retail establishes a price-related strategy through a special offer. sharma, raciti, o’hara, reinhard, & davies (2013) in their study stated effective promotion in increasing sales. therefore, in-store promotion becomes various retail strategies in increasing sales through impulse buying. money available money available in the context of a retail study is inclined to a loose consumer spending condition. according to beatty & ferrell (1998) in tinne (2010), money available is a facilitator in the impulse buying process related to consumer purchase power. so, money available allegedly strengthens impulse buying. methodology preliminary study a total of 50 respondents were participated in preliminary study to uncover variables that affect impulse buying. the results of this study indicate that most consumers do not make written planning when shopping so often buy products that are outside the initial planning (impulse buying). this is further strengthened when there is promotion (41%) and product placement strategy (23%). based on this study and literature review, then synthesis process is done with the result that independent variables include product quality, price, merchandise, and in-store promotion; dependent variable is impulse buying; moderating variable is money available. measurement variable of product quality, price, merchandise, in-store promotion, impulse buying, and money available are variables that cannot be measured directly. therefore, these variables require indicators. this research indicators are based on foroughi, dispose, senik, & hajmisadeghi (2013); alex & thomas, (2004); zeithaml (1988); muruganantham & bhakat (2013); sharma, raciti, o’hara, reinhard, & davies (2013); and tinne (2010). data collection population the population in this study was the people in surakarta who have made a purchase in retail (pt xx). members of the population can be known, but the exact number cannot be determined, therefore this study used a non-probability sampling approach. sampling method referring to non-probability sampling approach, sampling method of this research is purposive sampling. purposive sampling is sampling with certain criteria according to the purpose of research. these criteria were members of the population who have made unplanned purchases in retail pt xx. instrument testing the research instrument must meet the validity and reliability testing principles. validity refers to the ability of questionnaire items to measure variable that should be measured, while reliability focuses on the consistency of questionnaire items. the test results are shown in table 1. journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 47-52 50 table 1. validity original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) p value h2 <h 0.849 0.802 0.194 4.381 0.000 h4 <h 0.910 0.864 0.196 4.642 0.000 ib1 <ib 0.675 0.669 0.112 6.029 0.000 ib2 <ib 0.763 0.765 0.059 12.980 0.000 ib3 <ib 0.845 0.842 0.056 15.179 0.000 ib4 <ib 0.701 0.686 0.107 6.566 0.000 ib5 <ib 0.802 0.805 0.052 15.385 0.000 ib6 <ib 0.877 0.880 0.033 26.812 0.000 ib7 <ib 0.750 0.747 0.092 8.131 0.000 isp * ma <moderating effect 1 1.165 1.134 0.080 14.583 0.000 isp1 <isp 0.882 0.874 0.063 13.948 0.000 isp2 <isp 0.819 0.807 0.104 7.864 0.000 isp4 <isp 0.934 0.939 0.017 56.356 0.000 kp3 <kp 0.667 0.627 0.278 2.399 0.017 kp4 <kp 0.998 0.901 0.247 4.044 0.000 ma2 <ma 0.761 0.705 0.239 3.180 0.002 ma4 <ma 0.985 0.932 0.192 5.126 0.000 me1 <me 0.786 0.790 0.061 12.913 0.000 me2 <me 0.827 0.820 0.058 14.240 0.000 me3 <me 0.916 0.913 0.032 28.842 0.000 me5 <me 0.921 0.920 0.024 38.095 0.000 me6 <me 0.917 0.917 0.023 40.760 0.000 based on the results of validity test, there are some questionnaire items that are dropped because the loading factors are below 0.4 which means the item is not valid. table 1 showed that the questionnaire items passed the validity test. table 2. reliability original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) p value h 0.712 0.705 0.089 8.018 0.000 ib 0.889 0.887 0.029 30.764 0.000 isp 0.860 0.859 0.042 20.261 0.000 kp 0.760 0.736 0.101 7.517 0.000 ma 0.780 0.779 0.064 12.230 0.000 me 0.922 0.921 0.018 51.028 0.000 moderating effect 1 1.000 1.000 table 2 is the output of reliability test. the results indicate that the overall cronbach alpha score of the above variable is 0.6. thus, the observed variables of this study pass the reliability test. data analysis this study used sem-pls analysis refers to the complexity of the relationship between the variables tested. the results of sem-pls analysis are presented in table 3 and figure 1. journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 47-52 51 table 3. output path coefficients original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) p values h -> ib 0.069 0.101 0.148 0.468 0.640 isp -> ib 0.294 0.291 0.121 2.431 0.015 kp -> ib -0.032 -0.002 0.141 0.230 0.818 ma -> ib 0.208 0.205 0.141 1.472 0.142 me -> ib 0.359 0.321 0.150 2.398 0.017 moderating effect 1 -> ib -0.012 -0.007 0.095 0.128 0.898 table 3 explains that product quality variable does not affect impulse buying because statistically the value of t count (0.230) is below t table (1.96, confidence level of 95%). the same results appear in the relationship between price and impulse buying, which means price variable does not affect impulse buying, because the value of t count (0.468) is below t table (1.96). different things appear in the analysis of the relationship between in-store promotion and impulse buying. in-store promotion has an effect on impulse buying, with value of t count (2,431) above t table (1.96). while, the relationship between merchandise and impulse buying shows that merchandise variable has an effect on impulse buying (t count of 2,398). while, relating to the testing of the moderating effect of money available variable, the pls results indicate that money available variable is not a variable that reinforces or weakens the effect of in-store promotion on impulse buying. figure 1. research model figure 1 is the model output of this study. these results are not different from table 3. product and price quality does not affect impulse buying, while merchandise and in-store promotion variable are variables that influence impulse buying. discussion this study shows that impulse buying is a shopping activity influenced by internal variables, namely merchandise and in-store promotion. the more complete the product offered the higher the impulse buying. journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 47-52 52 similarly for in-store promotion, the more special price offering then the higher impulse buying. this study indicates that the lure of price below market price is really effective in influencing consumers to shop more and or buy something that is not really a priority or not a real need. while for merchandise, this variable affects impulse buying because the more attractive choices the more consumers are tempted to buy. related to this merchandise variable, then the retail should really be able to display interesting not just enough diverse. completeness of products sold must be accessible well by consumers to form impulse buying. on the other hand, this study shows that impulse buying is not influenced by product quality and price. this result implies that situational factor has a strong role in stimulating impulse buying. in addition, the ability to present and provide a wide variety of product choices becomes an important variable in creating impulse buying. related to money available variable that is not moderating variable, indicate that the habit of bringing in extra budget is plural. this is reinforced by pre-research results indicating that nearly 100% of consumers have done impulse buying. in summary, few consumers make good shopping plans. as a result, this variable does not strengthen in-store promotion relationship with impulse buying. conclusion impulse buying behavior is a behavior that is more influenced by situational factor. situational can be internal of personal, can also external of personal. this study shows that the role of external situational variable impacting the formation of impulse buying is merchandise and in-store promotion. money available variable has no significant impact. the results of this study still require continuation by basing various retails, not just one retail as research object. therefore, further studies are needed to generalize the results of this study. references foroughi, a., buang, n. a., senik, z. c., & hajmisadeghi, r. s. (2013). impulse buying behaviour and moderating role of gender among iranian shoppers. journal of basic and applied scientific research, 3(4), 760-769. nancarrow, g. b. c. (1998). impulse purchasing: a qualitative exploration of the phenomenon. qualitative market research: an international journal, 1(2). park, e. j., kim, e. y., & forney, j. c. (2006). a structural model of fashion-oriented impulse buying behavior. journal of fashion marketing and management, 10(4). journal of accounting, management, and economics vol. 19, no. 2, 2017, pp. 22-34 published by faculty of economics and business universitas jenderal soedirman published online on july 11, 2017 in http://jos.unsoed.ac.id/index.php/jame  correspondence to : 1yarsi university, indonesia. e-mail: muslikh@yarsi.ac.id 2yarsi university, indonesia. e-mail: zainal@yarsi.ac.id 3yarsi university, indonesia. e-mail: rini.hidayati@yarsi.ac.id received: may 15, 2017 revised: may 29, 2017 accepted: june 12, 2017 introduction internet is a media that can be used to conduct business transactions including making online purchases. the benefits of this online purchase include the convenience of operating for 24 hours and consumers do not need to visit the physical store. but with these advantages, some consumers are still reluctant to make online purchases. the main advantage of buying or shopping online is because of its convenience aspect. online sellers come to buyers, not just buyers that come to online sellers. customers can shop by online for 24 hours a day or 365 days per year. customers do not need to visit physical store by vehicle, no need to park vehicle, no need to worry about traffic jams in the street, because they will not happen if customers buy online. however, online purchases are also at risk of not meeting buyers with sellers directly. egger (2006), the number of consumers who buy online has grown but in sluggish condition so that trust is urgently needed in order to increase the growth of this online purchase. ahuja, et al. (2003) in his research on students showed that the issue of secrecy and security is the number one cause of the reluctance of individuals to buy online. some companies even use certain technologies called cookies to tap the activities that users do when shopping online. there are consumers who argue that shopping traditionally is better than shopping online, because of the factor of trust, satisfaction, and secrecy and security. therefore, it should be examined how the actual behavior of consumers on online purchase. data from media index wave-2, 2015, internet users in indonesia have reached 80 million people. but of the approximately 80 million people, online buying/shopping is not included in the categories of activities done by internet users in indonesia. research empirically proved that trust affects the individual’s attitude to purchase online. this study was conducted by lim, et al. (2006) which stated the effect of trust on attitude to purchase online is significant. these studies used a construct of trust on attitude to purchase online with the same question indicator referring to the study of jarvenpaa, et al. (2000). the results of research conducted by researcher in 2010 on the behavior of students in jakarta, products purchased online by students are usually related to fashion products such as clothing and shoes and students rarely buy textbooks online. the latest data in 2015, the number of internet users in indonesia has reached 88.1 million people. products purchased by consumers in indonesia most often are plane tickets (40 percent), followed by books (37 percent), clothing, accessories, and shoes and the influence of satisfaction and trust on online purchase decision (empirical study on students in jakarta) muslikh1, zainal2, rini hidayati3 1)2)3)economics faculty, yarsi university, indonesia abstract the purpose of this study is to determine the effect of consumer satisfaction and trust on buying attitude and its impact on online purchase decision. the study was conducted through survey by distributing questionnaires to 130 students in jakarta from various faculties. research sampling used non probability sampling with purposive sampling technique. the results showed that: consumer satisfaction and trust have positive and significant effect on online purchase attitude. consumer satisfaction and trust have positive and significant effect on online purchase decision, purchase attitude has significant effect on online purchase decision. keywords consumer satisfaction; trust; purchase attitude; purchase decision; online journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 22-34 23 electronic goods (21 percent). however, for consumers in asia pacific, books are the most frequently purchased item (46 percent), followed by clothing, accessories, and shoes (38 percent), cosmetics and supplements (27 percent), and wholesale goods (26 percent). the development of online purchase actually shows a significant increase in the world, especially in some developed countries. but in reality, this is not the case in indonesia where the level of online purchase progress is still in a slow stage to grow. factors that influence it are various starts from characteristic of indonesian society itself until individual problem such as lack of trust, satisfaction, or security problem. therefore, it is necessary to do in-depth research including other factors that inhibit the growth of online purchase in indonesia. based on the background of the problem, phenomenon gap above, it is necessary to examine how consumer behavior is mainly related to the product online purchase. research question 1. how the general picture: customer satisfaction, trust, purchase attitude, and online purchasing decision. 2. how the influence of consumer satisfaction on online purchase attitude. 3. how trust affects online purchase attitude. 4. how the influence of consumer satisfaction on online purchase decision. 5. how trust affects online purchase decision. 6. how purchase attitude affects online purchase decision. research objective 1. to find out how the general picture: customer satisfaction, trust, online purchase attitude and purchase decision. 2. to find out how the influence of consumer satisfaction on online purchase attitude. 3. to find out how the influence of trust on online purchase attitude. 4. to find out how the influence of consumer satisfaction on online purchase decision. 5. to find out how the influence of trust on online purchase decision. 6. to find out how the influence of online purchase attitude on online purchase decision. literature review consumer behavior consumer behavior is a process that a consumer passes through in seeking, buying, using, evaluating, and acting postconsumption of products, services, and ideas that are expected to meet the needs and desires of consumers (prasejito, 2005) .the study of consumer behavior is how the decision makers, whether individual, group, or organization in making purchase decision of a product to consume. while, according to mangkunegara (2004), consumer behavior is action conducted by individual, group, or organization that are related to decision process in getting or using goods that can be influenced by environment. with the development of information technology, will have an impact on consumer behavior in purchase decision. consumer behavior model in the online era is influenced by internal and external factors as follows: consumer behavior changes after the technology that we know as e-commerce. the concept of e-commerce is derived from e-business. definition of e-commerce is very diverse, depending on the perspective or glasses that use it. association for electroniccommerce simply defines e-commerce as “electronically business mechanism”. commerce net, an industry consortium, provides a more complete definition of “the use of computer networks (interconnected computers) as a media of business relation creation”. the model of consumer behavior in the digital era is as follows: journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 22-34 24 figure 1. consumer behavior model based on the above characteristics, it is clear that basically e-commerce is the impact of the development of information and telecommunication technology, thus significantly changes the way people interact with their environment, which in this case is related to the business mechanism. the growing business community that uses the internet in conducting its daily activities indirectly has created a new world domain which is often termed as “cyberspace”. unlike the real world, cyberspace has unique characteristic whereby a human can easily interact with anyone in this world as far as it is connected to the internet. the loss of the world’s boundaries that enable one to communicate with others efficiently and effectively directly changes the way companies do business with other companies or consumers. that in principle, e-commerce provides the infrastructure for companies to expand internal business processes to the external environment without facing the time and space barriers that have been the main issues. opportunities to build networks with other institutions must be utilized because today’s real competition lies in how a company can utilize e-commerce to improve performance in its core business. based on the core business, each company has its own core process sequence, where at various sub-process points there is an interaction between the company and one of the relationships above. if in the past most relationships can only be established “one-to-one relationship” for efficiency reasons, with e-commerce, corporate relationships with other external entities can be made “many-to-many relationship” faster, better, and cheaper. consumer satisfaction in the era of globalization, business competition becomes very sharp, both in the domestic (national) market and in international markets. to win the competition, a company should provide satisfaction to customers, for example by providing quality products, marketing systems that follow the development of the times such as online systems, competitive price, faster product distribution or delivery, and better service than its competitors. products with poor quality, high price, or slow product delivery can make customers dissatisfied, although with different levels. customers are to be satisfied, because if they are not satisfied they will leave the company and become competitor customers. this will lead to a decrease in sales and in turn will lower profits and even get losses. therefore, the marketing division measures the level of customer satisfaction to immediately know what attributes of a product that can make customers not satisfied. that customer satisfaction is as a result of customer research on what is expected by buying and consuming a product. that expectation is then compared to the perception of the performance received by consuming the product. if expectation is higher than product performance, consumer will feel dissatisfied. according to the above definition, there are two measures covered. the first measure is customer expectation that serves as a benchmark over the need and motivation personality psychographic perception learning attitude need choice of product attribution attitude perception lifestyle attitude internal consideration external consideration consumer seeking information purchase decision journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 22-34 25 second measure that is product criteria. the other definition uses only one measure of customer satisfaction after buying and using a product. in this case, product performance score serves as a customer satisfaction score. kotler (2012) defined “satisfaction” as a person’s happy feeling that comes after comparing perception or impression with the performance (or outcome) of a product and its expectations”. the above definition, satisfaction is a function of perception or impression of performance or expectation. if performance is below the expectation, customers will be dissatisfied and if performance exceeds expectation customers will be very satisfied and happy. many companies focus on high satisfaction because customers who are satisfied easily change their minds when they get a better offer. those who are very satisfied are more difficult to change their mind. high satisfaction or pleasure creates emotional attachment to a particular brand, not just rational likes/preferences. the result is if customer loyalty is high. for example, canon’s senior management believes that for a very satisfied or highly satisfied customer for company is worth 10 times more than a satisfied customer. a very satisfied customer will probably stay with canon for years and will buy more than a satisfied customer. tjiptono (2009) stated that customer satisfaction is formed from the perception of the value of supply and expectation. customers who are very satisfied or happy will have emotional ties and have a high loyalty to the brand. the creation of customer satisfaction can provide several benefits, including the relationship between the company and the customer to be harmonious, providing a good foundation for re-purchase. customer expectations over time evolve, as more as information received by customers, as well as everincreasing customer experience that will affect customer satisfaction level. companies that want to excel in today’s marketplace have to look at customer expectation, company performance, and customer satisfaction. if the performance is below expectation, the customer will be disappointed, if the performance as expected then the customer will be satisfied, and if the performance exceeds expectation then the customer will be very satisfied or happy. trust online purchase behavior is based on mutual trust between buyers and sellers. not infrequently, people who buy online are fooled by the qualifications of the goods offered. confidentiality of consumer data is an important factor in trust. consumers expect the data are not given to other parties who are not related. the five conditions of such system of secrecy and security include: validity that is ensuring that parties involved in transactions through electronic media are true to those parties. undeniable proof, including those parties involved in the transaction cannot refuse involvement after the transaction. secrecy guarantee that is limitation of any form of communication that occurs on the parties who transact against other parties involved. secrecy guarantee is very important in the scope of e-commerce due to the possibility of hackers can obtain personal data information that is sensitive. secrecy protection that is protection of personal data information about consumers transact through electronic media. personal data information cannot be provided without the consent of the customer. another approach used for transactions in e-commerce is secure electronic transaction (set). the core mechanism of set is the use of digital certification that enables preventing abuse caused by the prevailing system does not have the authority to own and provide data to credit cardholders and sellers as applicable in processing transactions with credit cards in general. purchase attitude attitude is a positive and negative evaluation that is realized through behavior. attitude is the implementation of individual behavior of an object. in relation to online purchase, customer attitude is strongly influenced by certain factors. there are four important factors in relation to online purchase attitude: product value, shopping experience, online service quality, and risk perception when buying online. li and zhang (2002) that the perceived risk related to buying products online include the problem of knowledge, cost, time, opportunity, and the product itself. while according to bhatnagar, et al. (2002), besides cost risk, the risk of the product itself, another very important matter is the issue of secrecy and security. this is supported also by the research of george journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 22-34 26 (2002) that proved that there is indeed a relationship between consumer secrecy and attitude that leads to purchase online. it further said that attitude is also influenced by the level of trust on the online store concerned so that the perception of risk will be reduced. koufaris, et al. (2002) found that the factors of control perceptions, pleasant perceptions, and the added value of online purchase are important dimensions of attitude related to online purchase activities. furthermore, the experience of online purchase that includes evaluation, compatibility, and fun is an important predictor of online purchase attitude. while, park and kim (2003) viewed online purchase attitude can be improved if online stores have attributes that include: product characteristic, customer service, promotion, navigation, and ease and importance of security. purchase decision purchase decision is determined by onlinebased satisfaction and trust. several studies on purchase decision within the scope of online purchase have been made including the deciding predictor. shopping or purchasing products online is generally a form of choice, where someone will do the activity or just avoid it. in practice, the process of online purchase is significantly different from offline purchase, even though the product purchased is the same. generally, convenience is the most important reason a person chooses to make a purchase online. that online purchase is based on time availability. and the most important thing in making an online purchase is the search for certain product information through the internet. bhatnagar, et al. (2000) stated that consumers turn to the internet with the intent to seek information about products that then make purchase of good and service. consumers decide to shop online because they have less time. furthermore, bhatnagar, et al. (2000) argued that lack of security, technical understanding, and convenience level according to the consumer’s view are the main reasons why consumers choose not to purchase online. bellman, et al. (1999) has finally concluded that people with high activity who certainly have a little more time tend to search for good or service online. therefore, several months or several hours each week online consumers access the internet to find information related to the product or service. related to decide on the purchase online, research results of ho and wu (1999) showed between online purchase with logistics support from the online store, product characteristic, website technology characteristic, information characteristic, and web appearance has a positive relationship. especially for web appearance, it can also show credibility from online store or seller. bellman, et al. (1999) has finally concluded that people with high activity who certainly have a little more time tend to search for good or service online. in this research, purchase decision is determined by trust. purchase decision within the scope of online purchase has been made including the deciding predictor. shopping or purchasing products online is generally a form of choice, where someone will do the activity or just avoid it. the process of shopping or buying online is significantly different from the shopping experience or buying offline even though the product purchased is the same product. bellman et al. (1999) argue that comfort is the most important reason a person chooses to make an online purchase. it is said further that online purchases are dependent on consumers' willingness to make these online purchases and the availability of time. the most important predictor of making purchases online is searching for specific product information over the internet. therefore, how many months once or how many hours per week online consumers access the internet to find information related to the product or service. while related to predictors in deciding to make purchases online, research of ho and wu (1999) shows between buying online with logistics support from online stores, product characteristics, website technology characteristics, information characteristics and web appearance has a positive relationship. theoretical framework that consumer satisfaction can generate trust. in addition, customer satisfaction also raises consumer attitude toward online purchase. that trust is the most important element in online purchase decision. trust that customers experience is the overall trust that involves all online purchasing activities. if consumers feel journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 22-34 27 satisfied and a sense of trust then they will determine the attitude to buy. attitude will drive online purchase decision. research methods type and design of research this research includes survey research conducted by qualitative and quantitative approach. this research is also causal, because it aims to test the hypothesis about the causality relationship of one variable with other variables. this research model is expected to explain the causal relationship between variables in the research as well as generate conclusions that can be used to develop science, especially marketing. therefore, this research is included in fundamental research. this research will be conducted in one stage, for one year. the research design is as follows: first mapping or descripting: customer satisfaction, trust, online purchase attitude, and purchase decision. then analyze the variables that influence the online purchase decision. population, sample, and sample size determination the study population set or targeted population is all undergraduate students in jakarta. while, the inaccessible population is all undergraduate students in central jakarta. based on the data obtained in kopertis 3 jakarta, there are 350,000 undergraduate students who study in central jakarta. in this case, the sample was set at 130 people. sampling technique sampling method is by using purposive sampling method. sampling method by purposive is sampling method where researcher has criteria or certain purpose to sample to be studied (indriantoro, 1999). the criteria used in this study is the students have bought online. while, the reason researcher used purposive sampling method in this study was that researcher to really get the required information from the right object. the subject of this research was students in jakarta. research variable and measurement variables in this research are: customer satisfaction, trust, purchase attitude, and online purchase decision. measurements of research variable and indicator used in this study were as follows: (1) satisfaction is the perception of the fulfillment of fun based on transactions conducted. satisfaction was measured by indicators: conformity with expected, online transaction experience, overall satisfaction. (2) trust is trustworthiness in online purchase measured by indicators: well-known site, commitment / keeping promise, no problem, trust with information (3) purchase attitude is the implementation of individual behavior in online purchase measured by indicators: fun, cheaper, safer, not found elsewhere. (4) purchase decision is the implementation of consumer behavior in deciding the purchase, measured by: repurchase, make payment, would recommend to others. data source and collection method data source in this research consists of primary data and secondary data. primary data is data obtained directly from respondents through questionnaire answers and through observation. primary data taken in this research is data about the responses of respondents related to the variables studied. secondary data is data obtained from literatures related to the problem under study. secondary data taken in this research is data about previous research related to this research and data about the object under study. methods of data collection conducted in this study were as follows: 1. questionnaire that is data collection through the provision of a list of questions filled by respondents. data obtained through the questionnaire is data about the responses of respondents related to the variables studied. 2. observation that is data collection through direct observation to the object of research. the data obtained through observation is data about field condition of the object under study. 3. library study that is collecting data obtained by reading the literature and previous research related to the problem under study. data analysis technique this research used descriptive and inferential statistical analysis techniques. descriptive analysis to describe all data from research variables in the form of tables, whereas inferential analysis was used to test the hypothesis. data analysis journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 22-34 28 tool used sem (structural equaling modeling). result and discussion respondent demography 1) respondent characteristic based on the faculty the number of questionnaires distributed was 150 copies. of these, the questionnaires returned of 150 copies. thus, the response rate is 100%. nevertheless, there were 20 questionnaires that cannot be analyzed, so the total questionnaires analyzed of 130 copies. in processing the data, respondents were grouped by faculty. to find out more detailed characteristics of respondents based on faculty, can be seen in the following figure: figure 2. number of respondents based on faculty based on the above table, it can be seen that the most respondents were from the economics faculty of 25%, then respondents from the law faculty of 20%, and the engineering faculty of 17%. 2) respondent characteristic based on money expended when buying products online respondent characteristic based on money expended when buying products online is grouped into four groups that are respondents who average spend money < rp 0.5 million of 12%, spend between 0.5 million to 1 of 85%, and spend 1 million to 1.5 million of 3%. based on the research results, can be seen that the amount of money that respondents spend when making online purchase is mostly between rp 0.5 million to rp 1 million per year. figure 3. average money spent per year 3) respondent characteristic based on consideration when making online purchase respondent characteristic based on consideration when making online purchase is grouped into four that are based on product/brand quality consideration, based on price consideration, based on security consideration, and based on friend recommendation consideration. based on the research results, can be seen that most respondents made online purchase on the basis of price consideration with the number of 80 respondents or 62%. the least is the consideration based on friend recommendation of 4%. to find out more detailed characteristics of respondents based on respondents consideration when making an online purchase, can be seen in the following picture: figure 4. considered fartors journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 22-34 29 4) respondent characteristic based on the length of being online store customer respondent characteristic based on the length of being online store customer is divided into four groups: < 1 year, > 1-1 year, > 2-3 years, > 3-4years. based on the research results, can be seen that the majority of respondents in being online store customers is ranged from 2-3 years. figure 5. length of being online customer 5) respondent characteristic based on online purchase intensity or frequency in one month based on purchase intensity or frequency, most respondents buy no fewer than once in a month. this is understandable considering the finance held by respondents (students) is still limited. figure 6. purchase intensity/frequency 6) respondent characteristic based on products that are often purchased online in buying products online, respondents often consider what products will be purchased. figure 7. purchased product based on the graph above, products that are often purchased by respondents online are fashion products such as clothes, shoes, and others. 7) respondent characteristic based on e-commerce frequently used for online purchase now, a lot of e-commerce products that sell online. each e-commerce offers specifically products sold such as hijab e-commerce, smes product-specific ecommerce, electronics e-commerce, fashion products e-commerce, and so on. the results showed that the most visited e-commerce in online purchase was lazada as shown in the graph below. figure 8. e-commerce in purchase 8) respondent characteristic based on interesting promotion in online store journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 22-34 30 figure 9. interesting promotion media based on the graph above, the most interesting promotion and has an effect in the online purchase is discount. 9) respondent characteristic based on payment methods of online purchase many ways are used to pay in online purchase. the results showed that the some respondents in paying online purchase use transfer through atm of 69%, then followed by cod method of 15%. figure 10. paying methods descriptive statistics of research data data description used index numbers. this is done to find out the description of the respondent’s perception level toward the research variables. based on the descriptive analysis, it shows that almost all variables have mean value of medium, meaning that the students in jakarta in buying online show: satisfaction in purchase medium, trust in purchase medium, attitude in purchase medium, and speed in purchase decision is pretty good. table 1. average descriptive of respondents answers variable average result description satisfaction 2.67 pretty good trust 2.74 pretty good purchase attitude 2.57 pretty good purchase decision 2.71 pretty good analysis research result data the result of confirmatory factor analysis shows that the critical ratio (cr) value of each indicator is greater than 2.0. therefore, it can be stated that each indicator is proven to meet unidimensionality so that it can be followed by full model sem analysis. therefore, the full model can then be analyzed. the results of model testing by looking at the value of absolute fit value indicate that in general the model has goodness of fit that is good. the values of the test of the structural equation can be seen in the figure below. journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 22-34 31 figure 11. full model goodness-of-fit test table 2. summary of goodness-of-fit test result based on goodness-of-fit test, the model is included in good category. chi square value of 186.664 is smaller than chi square table with probability of 0.109. the determinant value (gfi) of 0.876 or 87.6% indicates the purchase decision (y) can be explained by the variation of consumer satisfaction and consumer trust. the number of 13.4% is explained by other unresearched variables (citerus paribus assumption). hypothesis testing the significance of causal relationship in sem analysis was tested through the null hypothesis that shows that the coefficient of causal relationship between variables is equal to zero through the t-test commonly used in regression. based on the output of goodness-of-fit index cut-of-value analysis result model evaluation x2chi-square expected small (df = 166) 186,664 good probability > 0.05 0,109 good cmin/df < 3,00 1,138 marginal gfi > 0,90 0,877 marginal agfi > 0,90 0,843 good tli > 0,95 0,964 good cfi > 0,95 0,969 good rmsea < 0,08 0,033 good satisf action trust beha vior deci sion journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 22-34 32 full model sem analysis in the appendix, then can be made summary of the causal relationship between variables in this study as listed in table 3 below. table 3. standarized regression weight for hypothesis testing estimate cr p description z <--x1 .767 5,131 *** significantly influence z <--x2 .229 2,238 .250 significantly influence y <--x1 .421 2,578 .010 significantly influence y <--x2 .262 2,914 .004 significantly influence y <--z .379 2,455 .014 significantly influence description: x1 : satisfaction, x2 : trust, z : purchase attitude, y : purchase decision first hypothesis: the value of the critical ratio (cr) for the effect of satisfaction on trust is 4.242 greater than the value of ttable (1.960). so it can be concluded that the first hypothesis that express satisfaction has positive and significant effect on trust is accepted. second hypothesis: the value of the critical ratio (cr) for the effect of trust on purchase attitude is 4.777 greater than the value of ttable (1.960). so it can be concluded that the first hypothesis that express trust has positive and significant effect on purchase attitude is accepted. third hypothesis: the value of the critical ratio (cr) for the effect of trust on purchase decision is 3.058 greater than the value of ttable (1.960). so it can be concluded that the first hypothesis that express trust has positive and significant effect on purchase decision is accepted. fourth hypothesis: the value of the critical ratio (cr) for the effect of purchase attitude on purchase decision is 6.328 greater than the value of ttable (1.960). so it can be concluded that the first hypothesis that express purchase attitude has positive and significant effect on purchase decision is accepted. the influence of satisfaction on trust the results showed that satisfaction has positive and significant effect on trust directly of 0.4981. with probability value of 0.000 (p is smaller than 0.05). the one direction mark on the coefficient shows a positive change which means that if the consumer is satisfied then it will increase the trust of online purchase. online shop sellers strive to satisfy consumers by providing excellent service. this is shown so that consumers feel satisfied. the results of this study are in accordance with research of lim, et al. (2006) which stated that satisfaction has positive and significant effect on trust. in addition, this study supports the research of narver and slater (1994) which stated that consumer satisfaction has significant effect on increasing the trust. the influence of satisfaction on purchase attitude the results showed that satisfaction has positive and significant effect on purchase attitude directly of 0.643. with probability value of 0.000 (p is smaller than 0.05). the one direction mark on the coefficient shows a positive change which means that if the consumer is satisfied then it will increase purchase attitude. this purchase attitude will have an impact on purchase intention. online store sellers strive to increase consumer satisfaction by providing the best service. this is shown to make consumers feel satisfied. the results of this study are in accordance with the research of lim, et al. (2006) which stated that consumer satisfaction has positive influence on the improvement of purchase attitude. in addition, this research supports the research of narver and slater (1994) which stated that consumer satisfaction has significant effect on the improvement of online purchase attitude. the influence of trust on purchase attitude referring to the results showed that trust has positive and significant effect on purchase attitude directly of 0.310. with probability value of 0.002 (p is smaller than 0.05). the one direction mark on the coefficient shows a positive change which means that if the consumers have trust then it will increase purchase attitude. online store sellers strive to increase consumer journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 22-34 33 trust by passing valid information. this is shown to sell goods sold in the market. the results of this study are in accordance with research of lim, et al. (2006) which stated that trust has positive effect on the increase of online purchase attitude. in addition, this study supports the research of cooper, et al. (2004) which stated that trust has significant effect on the increase of online purchase attitude. the influence of purchase attitude on purchase decision the research results showed that purchase attitude has positive and significant effect on purchase decision directly of 0.904. with probability value of 0.000 (p is smaller than 0.05). the one direction mark on the coefficient shows a positive change which means that if the purchase attitude increases then it will improve the purchase decision. online store sellers strive to improve consumer purchase attitude by paying attention to technological development, especially information technology. this is shown to increase purchase decision. the results of this study are in accordance with the research of lim, et al. (2006) which stated that purchase attitude has positive effect on the increase of purchase decision. direct, indirect, and total influence to know the direct, indirect, and total influence of the variables, can be shown in table 4 below. table 3. direct, indirect, and total influence standardized direct effect standardized indirect effect standardized total effect x1 x2 z x1 x2 z x1 x2 y z 0.65 0.23 0.00 0.00 0.00 0.00 0.65 0.23 0.00 y 0.38 0.28 0.40 0.40 0.262 0.00 0.64 0.37 0.40 description: x1 = consumer satisfaction, x2 = trust, z = purchase attitude, and y = online purchase decision based on the analysis of direct, indirect, and total influence, can be explained as follows: the amount of the direct effect of consumer satisfaction (x1) on the purchase attitude (z) is 0.65, and the direct effect of trust on purchase attitude (z) is 0.38. while, the direct effect of satisfaction (x1) on purchase decision (y) is 0.38. the direct effect of trust (x2) on purchase decision (y) is 0.28. the amount of indirect effect of satisfaction (x1) on purchase decision (y) through purchase attitude (z) is 0.40. the amount of indirect effect of trust (x2) on purchase decision (y) through purchase attitude (z) is 0.26. the amount of total effect of satisfaction on purchase attitude is 0.65. while, the total effect of satisfaction on purchase decision is 0.64. the total effect of trust on purchase attitude is 0.23. while, the total effect of trust on purchase decision is 0.37. based on the results of the mediation test, it can be concluded that there is relationship mediation between satisfaction and trust on purchase decision mediated by purchase attitude, because the value is changed to be significant. conclusion based on the results of analysis and discussion that has been described can be drawn some conclusions on the hypothesis as follows: the test results of five hypotheses, all are accepted. consumer satisfaction and trust have positive and significant effect on purchase attitude. consumer satisfaction and trust have positive and significant effect on online purchase decision. purchase attitude has positive and significant effect on online purchase decision. purchase attitude mediates the relationship between consumer satisfaction and trust on online purchase decision. managerial implication this study provides a managerial implementation for online store managers in the form of strategies to increase online sales. to increase online sales, online store managers need to understand consumer purchase behavior. to improve purchase attitude or behavior of consumers, can be done by increasing customer satisfaction and trust in the management of online stores such as website that attracts and provides valid information. consumer journal of accounting management and economics , vol. 19, no. 2, 2017, pp. 22-34 34 satisfaction can be improved through: quality product, fast transaction, and excellent service. while, trust can be improved through quality information on the website, online store seller commitment to keep promise of both goods quality and delivery time, and providing valid information. references ahuja, m., gupta, b., & raman, p. (2003). an empirical investigation of online consumer purchasing behavior. communications of the acm, 46(12), 145-151. bellman, s., lohse, g. l., & johnson, e. j. (1999). predictors of online buying behavior. communications of the acm, 42(12), 32-38. bhatnagar, a., misra, s., & rao, h. r. (2000). online risk, convenience, and internet shopping behavior. communications of the acm, 43(11), 98-105. egger, a. (2006). intangibility and perceived risk in online environments. paper presented at the academy of marketing. university of middlesex. george, j. f. (2002). influences on the internet to make internet purchases. internet research, 12(2), 165-180. ho, c. f., and wu, w. h. (1999). antecedents of customer satisfaction on the internet: an empirical study of online shopping. proceedings of the 32nd annual hawaii international conference on systems sciences. maui. jarvenpaa, s. l. and todd, p. a. (1997). consumer reactions to electronic shopping on the world wide web. international journal of electronic commerce, 1(2), 59-88. kotler, p. (2012), marketing management, (mellinium ed.). new york: northwestern. koufaris, m., kambil, a., & labarbera, p. a. (2002). consumer behavior in web-based commerce and empirical study. international journal of electronic commerce, 6(2), 115-138. li, n., & zhang, p. (2002). consumer online shopping attitudes and behavior: an assessment of research. eight americas conference on information systems, 508-517. lim, k. h., sia, c. l., lee, m. k., & benbasat, i. (2006). do i trust you online, and if so, will i buy? an empirical study of two trustbuilding strategies. journal of management information systems, 23(2), 233–266. park, c. h., & kim, y. g. (2003). identifying key factors affecting consumer purchase behavior in an online shopping context. international journal of retail & distribution management, 31(1), 16-29. tjiptono. (2005) service, quality, satisfaction. yogyakarta: andi offset.  correspondence to : iwayansunarya@gmail.com received: february, 2019 accepted: march, 2019 published: march, 2019 jurnal akuntansi, manajemen dan ekonomi vol. 21, no. 1, 2019, pp. 32-45 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction banks as financial institutions are business entities that collect funds from the community in the form of deposits and then redistribute the funds to the public in the form of loans for a certain period of time. activities to raise funds greatly determine the amount of funds that can be developed by banks planting funds that generate income for the bank (nazrian and hidayat, 2012). according to faradila and cahyati (2013), the emergence of banks and financial institutions for conventional banks has been applied in indonesia. so that islamic experts form islamic banks which according to law no.10 of 1998 concerning islamic banks are banks that carry out their business activities based on syariah principles which in their activities provide services in payment traffic. syariah principles according to article 1 paragraph 13 of law no. 10 of 1998 concerning banking is an agreement based on islamic law between banks and other parties for depositing funds or financing business activities, or other activities declared in accordance with syariah, including financing based on the principle of profit sharing (mudharabah), financing based on equity principles (musyarakah ), the principle of buying and selling goods with profit (murabahah), or financing capital goods based on the principle of pure rent without choice (ijarah), or by the option of transferring ownership of goods leased from the bank by another party (ijarah wa iqtina). this islamic bank is one of the most sought after banks by indonesian people who are muslim because islamic banks adhere to islamic principles in islam. islamic banks do not apply the interest system but implement a profit-sharing system, namely a fund management system in the islamic economy. the calculation of profit sharing is based on the consensus of the bank and the customers who invest their funds in islamic banks. the amount of the customer's right to the bank in calculating the profit sharing is determined by a ratio number or the amount of the part called nisbah (sari, 2016). just like conventional banks, islamic banks must maintain the performance of their financial statements. analysis of the performance of financial statements can be seen from the level of financial statements between the the effect of capital adequacy ratio, efficiency and liquidity on rentability in syariah banks owned by the indonesia government from 2009 2017 i wayan sunarya1 1stimik stikom, indonesia abstract the ratio of financial statements to islamic banks is one of the determining factors in financial health within the bank itself. for this reason, it is necessary to analyze the influence of capital adequacy, efficiency and liquidity on profitability in indonesian government-owned islamic banks from 2009-2017. this study aims to model the effect of capital adequacy (car), efficiency (oeoi) and liquidity (fdr) on rentability (roa), then analyze the model, and provide forecasting and structural analysis of the model. therefore, the method used in this study is the analysis of vector error correction model which is applied to time series data from the level of car, oeoi, fdr to roa. based on the specification, estimation and examination of the model, the vecm(2) model was obtained as the best model. the results of the model analysis say that there is a long-term and short-term causality relationship between the levels of car, oeoi, fdr against roa. then, based on forecasting and structural analysis, it can be concluded that the results obtained are accurate. keywords capital adequacy ratio, return on asset, operational costs for operational income, finance to deposit ratio jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 32-45 level of capital adequacy (capital adequacy ratio), the level of profitability or return on assets (roa), efficiency or oeoi (operational costs against historical income) and the level of liquidity or finance to deposit ratio ( fdr). according to nur gilang giannini (2013) said that in addition to the available funds, the supply of bank credit was also influenced by bank perceptions of the debtor's business prospects and the condition of the banking system itself, such as capital (car), the amount of bad loans (npl), and loan to deposit ratio (ldr), besides that the profitability factor or the level of profit reflected in return on assets (roa) also affects bank credit. for data on roa of indonesian government islamic banks from 2009 to 2017, bank btn syariah has the highest rate in 2017 of 1.71% compared to other islamic banks. this means that the btn syariah bank in generating net profit after tax comes from assets owned by 1.71%. the next level of data is the level of capital adequacy. in maintaining this level of capital adequacy, bank indonesia issued regulation no.6/10/pbi/2004, about the commercial bank soundness rating system. provisions which one of them is regulating capital minimum bank (capital adequacy ratio) of 8% (eight percent). based on government regulations regarding bank soundness general, each bank strives to maintain the value of its capital adequacy ratio in order to maintain the soundness of the bank. in the implementation of the indonesian government syariah bank remains experiencing fluctuations in the development of capital adequacy. from the value of the indonesian government's capital adequacy ratio syariah period 2009-2017, bri syariah bank where in 2009, bri syariah bank had a car value of 17.04% then in 2017 bri syariah bank had a car value of 20.63%, this means there is an increase in bri syariah bank car value of 3.59%. the third level, which is the level of operational costs for historical income (oeoi), is the level of comparison of operational costs against historical income. this level is used to measure the level of efficiency and ability of banks to carry out their operations, especially credit. from the value of the level of operational costs against operational income (oeoi) of the indonesian government syariah banks from 2009-2017 observation period, the highest level of oeoi is bri syariah bank where the oeoi level in 2009 was 97.50% to 95.24%. the next level, which is finance to deposit ratio (fdr), states how far the bank is able to repay funds withdrawals made by depositors by relying on financing provided as a source of liquidity. based on the description above, the condition of the growth of islamic banks which is faster than conventional banks requires research on the health of banks, one of which is using indicators of capital adequacy. therefore, the objectives to be achieved in this study is analyzing the effect of capital adequacy, efficiency and liquidity on profitability of the syariah bank owned by the indonesian government from 2009-2017. this study also examine the relationship of capital adequacy, efficiency and liquidity in the run short and long term to the profitability of the indonesian government islamic banks from 2009-2017. bank based on law no. 7 of 1992 as amended by law no. 10 of 1998 concerning banking states: "banks are business entities that collect funds from the public in the form of deposits and distribute them to the public in order to improve the lives of many people". in terms of benefits or services for the use of funds, both bank deposits and loans can be divided into two, namely (wahyu, 2016) conventional bank and syariah bank. conventional banks, which are banks whose activities, both fund raising and fund distribution, provide and impose rewards in the form of interest or a number of rewards in the percentage of funds for a certain period. syariah bank, which is a bank that is in its activities, both collection funds and distribution of funds providing and imposing benefits on the basis of syariah principles, namely buying and selling and profit sharing. islamic banks are banks that operate without relying on interest. bank syariah can also be interpreted as an optimal financial / banking institution and its products are developed based on the al-quran and hadith. there are two meanings, namely islamic banks and banks operating under the principle of islamic law. islamic banks are banks that operate with islamic law and the procedure for its operation refers to the provisions of the koran and hadith (wibisono, 2017). jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 32-45 return on assets (roa) according to bilian and purwanto (2017), roa is a comparison between profit after tax and total assets in a period. this level can be considered as a measure of financial health. this level is very important and is related to the performance of the bank because we can see the level of business efficiency of a bank from the profits obtained by using its assets. in the framework of the bank's health assessment, bi will give a maximum value of 100 (healthy) if the bank has an roa of> 1.5%. so that from the statement, the formula in calculating return on assets is as follows: earning before tax roa = x 100% average of total asset capital adequacy ratio (car) according to bernardin (2016), the capital adequacy ratio is a level that shows how much the total bank assets that contain risk (credit, participation, securities, bills on other banks) are also financed from and bank's own capital in addition to obtaining funds dana from sources outside the bank, such as public funds, loans, and so on. according to the bank indonesia circular no. 6/23/dpnp dated may 31, 2004 car is formulated as follows: owner's equity car = x 100% weighted assets at risk operational costs for operational income the success of banks is based on a quantitative assessment of bank profitability can be measured using the level of operational costs against historical income. the level of operational costs is used to measure the level of efficiency and ability of banks to carry out their operational activities. the level of operational costs to operating income is often called the level of efficiency used to measure the ability of bank management to control operational costs against historical income. the smaller this level means the more efficient operational costs incurred by the bank concerned (fadjar, et. al., 2013). financing to deposit ratio (fdr) according to wibisono (2017) states financing to deposit ratio (fdr) is a tool to measure the extent of the ability of banks to pay depositors' withdrawals which direct funds have been channeled by the bank to the community by means of loans. fdr will show the bank's ability to channel third party funds collected by the bank concerned. the financing to deposit ratio formula (wahyu, 2016) is as follows: total financing fdr = x 100% total funds unit root test according to sinay (2014), the vecm model is based on data time series that are not stationary but are cointegrated. to check stationary data, a unit root test can be used, with the test statistic used is augmented dickey-fuller (adf). the formula used to analyze the unit root test using the augmented dickey-fuller formula (moroke, et. al., 2014) as follows: k t 0 t-1 i t-i t i=1 δy = α + β y + β δy + ε where δ is the first distinguishing operator; t is time; k presents the number of lags used and ε is the error rate; α and β are limiting models. for the augmented dickey-fuller test includes a constant trend and time. according to hamilton (1990) for the process of receiving and rejecting hypotheses in the unit root test using augmented dickey-fuller using the assumption that the series follows the autoregressive process by accepting and rejecting the null hypothesis (h0) based on regression analysis: p-1 t i t-1 j t-j t j=1 z = μ + (f -1)y + c z + ε where zt-j = yt-j yt-j-1 for j = 0, 1, 2, ..., p-1 and εt are white noise processes. so that the process of accepting and rejecting the null hypothesis in the augmented dickey-fuller analysis becomes: 1 1 ˆ 1 ˆ ˆ( ) adf se      1 ˆ( )se  is the standard error in  1. rejecting the null hypothesis in the unit root test h0 :  = 1 is rejected if ˆ adf  smaller than the value of α at a significant level. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 32-45 johansen co-integration test according to ikudayisi and salman (2018) and janzen sinay (2014: 10) states that for the cointegration test johansen's cointegration test is used as follows: yt = atyt-1 + ... + apyt-p + bxt + εt with yt is se is a vector with 𝑘 non stationary variables i (1), 𝑥𝑡 is a vector with 𝑑 deterministic variables, 𝜀𝑡 is an error vector. the equation 𝑉𝐴𝑅 (𝑝) can also be written as p-1 t t-1 i t-i t t i=1 δy = y + γ δy + bx + ε where p p i i j i = 1 j=i+1 = a -i, γ = a  for hypothesis testing, trace trace statistics can be used: lrtr(r|k) = k i i = r+1 -t log(1 λ ) and maximum eigen value test statistics lrmax(r|r + 1) = -t log(1 – λr+1) = lrtr(r|k) – lrtr(r + 1|k) for r = 0, 1, ..., k 1 with the hypothesis used is h0 : there are r cointegration equations. at the significance level (1 𝛼) 100%, 𝐻0 is accepted if the trace test statistics and maximum eigen value are smaller than the critical value at 𝛼, or 𝑝 𝑣𝑎𝑙𝑢𝑒 greater than the significance value 𝛼. model suitability test according to sinay (2014), the model compatibility test to see serial correlation on the residuals uses the portmanteau test statistic as follows: h ' 1 1 h 0 0 j = 1 ˆ ˆ ˆ ˆq = t tr(c ) j j c c c    or * 2 ' 1 1 0 0 1 1 ˆ ˆ ˆ ˆ(c ) h h j j j q t tr c c c t j       with t ' i t tt = i + 1 1ˆ ˆ ˆc = u u -i t  . this test statistic is distributed 2 * 2 ( ( )) x k h n , with n * state the number of coefficients other than constants in the estimated var (p) model. the hypothesis proposed in the model compatibility test is: h0: no serial correlation at the significance level (1 𝛼) 100%, 𝐻0 is accepted if p 𝑣𝑎𝑙𝑢𝑒 statistics 𝑄 for each lag besar is greater than the significance value 𝛼. thus, there is no serial correlation. information criteria according to sinay (2014), the selection of order lags can use the following methods: akaike information criterion (aic) aic(p) = log det   2 2 ( ) p u k p t  schwarz information criterion (𝑆𝐶) sc(p) = log det   2 u log(t)pk (p) + t  with -1 u (p) = t t t tt = 1 ˆ ˆu u is the size of the sample and k is the number of endogenous variables. the lag value p is chosen as the p* value which minimizes the information criteria in intervals 1, ..., pmax is observed. the optimum lag is based on the most 𝐴𝐼𝐶 and 𝑆𝐶 values small. causality analysis sinay (2014), in the modeling of the error error correction model (vecm) analysis of causality aims to see long-term causality and short-run causality. analysis of the long-term causality relationship between the independent variables to the dependent variable in vecm modeling can be seen in the coefficients of the error correction term (ect), which is based on the sign and results of the coefficient significance test using the 𝑡 test statistic on ^ ^ ^ ^ jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 32-45 the ordinary least square (ols) method . meanwhile, for analysis of shortterm causality for each variable can use the granger causality test. the granger causality test is based on the wald test statistic which has chi square distribution or test 𝐹 as an alternative. the hypothesis used is 𝐻0 ∶ there is no granger causality relationship forecasting and structural analysis according to sinay (2014: 11), the forecasting and structural analysis of vecm bears similarities to forecasting analysis and structural analysis of the var model. in var modeling the analysis can use impulse response analysis and variance decomposition. impulse response analysis aims to see the effect (influence) of each variable (endogenous) if given shock or impulse (shock). meanwhile, variance decomposition analysis aims to predict contribution of each variable (percentage variance of each variable) caused by changes in certain variables in a system. like forecasting analysis in general, to determine the accuracy of the forecast results of a model can use the mean absolute percentage error (𝑀𝐴𝑃𝐸): n t t t = 1 t ŷ -y y mape = x 100% n  research methods the research methods in this study formulated several hypotheses as follows: is there an influence of capital adequacy, efficiency and liquidity on rentability in syariah bank that owned by indonesia government from 2009 to 2017. based on the hypothesis formulation, three variables can be formed as follows: 1. capital adequacy: capital adequacy ratio (car) 2. efficiency: operational costs for operational income (ocoi) 3. liquidity: financing to deposit ratio (fdr) 4. rentability: return on assets (roa) so that from this study is a case study to analyze the effect of car, ocoi and fdr on roa in the syariah bank that owned by indonesia bank from 2009 2017. based on the variables that have been formed, then for data sourced from bank mandiri syariah financial statements, bank bni syariah , bri bank syariah and bank btn syariah from 2009-2017. the method used in this study is the vecm (vector error correction model) method which aims to determine the shape of the four variables above. according to lexy janzen sinay (2014: 12), the procedures in the vecm analysis are as follows: 1. specifications estimation, and model inspection (unit root test (sterilization check); johansen's cointegration test; model 2. estimation and examination 3. causality analysis 4. forecasting and structural analysis the results of data processing carried out in this study using eviews 9 software. results and discussion specifications estimation and model inspection the first step in conducting the unit root test of the four variables includes data from the government of indonesia roa, car, oeoi and fdr from 2009-2017. based on data processing using eviews 9, the output results are as follows: table 1. unit root test (augmented dickeyfuller (adf) test statistic) data cv level 1st difference (α) stat. adf p value stat. adf p value roa 2,312365 0,1744 10,99046 0,0000 5% 2,957110 2,957110 car 0,948478 0,7587 11,44974 0,0000 5% 2,960411 2,957110 oeoi 2,739522 0,0786 7,880309 0,0000 5% 2,957110 2,957110 fdr 1,153066 0,6821 13,22417 0,0000 5% 2,957110 2,957110 based on table1, an analysis can be made that the data on roa, car, oeoi and fdr in the indonesian government's syariah banks from 2009-2017 are data that contain unit roots at the level or not stationary at the level. this can be seen from the unit root test technique that is done, namely the level technique. it is seen that the adf statistic jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 32-45 value for each variable is greater than α = 5%. this means accepting the hypothesis h0, namely there is a unit root in data or data that is not stationary. meanwhile, from the results of the first differentiation, it can be seen in the adf statistic value of each variable smaller than α = 5%, this means rejecting the hypothesis yaitu0, ie data does not contain unit roots or is stationary. thus, the variables roa, car, oeoi and fdr are non variables first-order stationer. johansen cointegration test the cointegration test results using lag 2 (significant lag based on the var procedure) from the variables roa, car, oeoi and fdr using static trace and maximum eigen value statistics can be seen in table 6 and table 7. in table 6 it can be seen that the test results hypothesis by using trace statistics for the hypothesis: h0: there is no cointegration connection. p value is 0.0000 smaller than α = 5% (trace statistic value that is 89.93052 is greater than the value of 47.85613 tables at α = 5%). this means that the hypothesis h0 is rejected. thus, it can be concluded that there is a cointegration equation. for this reason, the next hypothesis is examined. table 2. johansen cointegration test h eigen value trace statistic cv α = 5% p value 0 0,776183 89,93052 47,85613 0,0000 1 0,546901 40,53195 42,79707 0,0620 2 0,311899 14,40770 15,49471 0,0724 3 0,060848 2,071675 3,841466 0,1501 based on table 2, the following hypothesis test results will be examined: h0: there is a cointegration equation h1: there is no cointegration equation in table 2, it can be seen that the p-value for each hypothesis is 0,000 smaller than the value of α = 5% (trace statistics greater than the critical value at α = 5% for each hypothesis). this means that h0 is accepted. thus, based on the analysis it can be concluded that the results of the cointegration test using trace statistics indicate that at least one cointegration equation can be formed. table 3. johansen cointegration test (maximum) h eigen value trace statistic cv α = 5% p value 0 0,776183 49,39857 27,58434 0,0000 1 0,546901 26,12425 28,13162 0,0791 2 0,311899 12,33603 14,26460 0,0987 3 0,060848 2,071675 3,841466 0,1501 from the data contained in table 3 it can be seen that the results of hypothesis testing using maximum eigen value statistics, namely p-value trace statistics for each hypothesis: h0: there is a cointegration equation and h1: there is no cointegration equation. the p-value in table 7 shows that there is one cointegration, that is, the p-value of 0.0000 is greater than the value of α = 0.05; this means that h0 is accepted. a. model estimation and examination after conducting a cointegration analysis, it is continued by analyzing the optimum lag selection. the optimum lag selection in vecm can use information criteria, namely akaike information criterion (aic) and schwarz information criterion (𝑆𝐶). the results of data processing using akaike information criterion (aic) and schwarz information criterion (𝑆𝐶) analysis for one to eight lags can be seen in table 8. please note that the use of lags one to eight is due to the principle of parsimony (simplicity of models) in statistical modeling, this is caused by the more lag used, the more the parameter parameters of the model. table 4. information criteria lag akaike information criterion (aic) schwarz information criterion (𝑆𝐶) 1 20,02776 20,91653 2 18,04871 19,29337* 3 16,29051* 19,66485 4 16,93523 19,40520 in table 4 it can be seen that lag 3 has the smallest aic value, while lag 2 has the smallest sc value. thus lag 2 and lag 3 will be used to process the parameter estimation vector error correction model (vecm). based on the results of the optimum lag analysis, the vecm equation forms that are estimated are vecm (2) and vecm (3), each with the number of cointegration equations is two. then the model is examined by selecting the best model between vecm (2) and jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 32-45 vecm (3). examination of the model is done by using a residual assumption test analysis of the two models, namely the residual serial correlation test as shown in the following table 5: table 5. portmanteau test on vecm (2) and vecm (3) lg vecm(2) vecm(3) stat. q p val db stat. q p val db 1 16,46283 na* na* 15,39711 na* na* 2 36,09632 na* na* 33,28613 na* na* 3 54,29685 0,1345 16 47,66786 na* na* 4 73,48157 0,1564 32 62,66859 0,0165 16 5 86,86297 0,2165 48 78,70373 0,0187 32 6 104,6527 0,2453 64 100,3596 0,0265 48 7 110,1408 0,2675 80 115,5666 0,0365 64 8 124,3054 0,3123 96 136,2712 0,0386 80 9 135,0840 0,3453 112 145,5644 0,0653 96 10 146,2771 0,3564 128 154,4738 0,0754 112 11 156,3912 0,3675 144 165,0873 0,0875 128 12 164,7442 0,3876 160 177,4790 0,0894 144 in table 5, it can be seen that the portmanteau test results for vecm (2) do not contain serial residual correlation at each lag. whereas for vecm (3) states that the model contains serial correlation residual in lag 4,5,6,7,8, where lag 3 p-value of q-statistic for lag is less than significance level α = 5% (meaning reject h0 : no serial correlation). thus, vecm (2) is better than vecm (3) because there are no residual serial correlations. this means that vecm (2) is the best model. δroat = –1,692(roat-1 – 0,075cart-1 + 0,092oeoi t-1 – 0,040fdr t-1 – 4,496) – 0,308δroat-1 – 0,127δroat-2 + 0,071δcart-1 + 0,095δcart-2 + 0,007δoeoit-1 + 0,020δoeoit-2 + 0,045δfdrt-1 + 0,064δfdrt-2 + 0,082 (1) δcart = –1,900(roa t-1 – 0,075cart-1 + 0,092oeoit-1 – 0,040fdrt-1 – 4,496) – 8,562δroat-1 – 4,909δroat-2 – 1,056δcart-1 – 0,318δcart-2 – 0,909δoeoit-1 – 0,436δoeoit-2 – 0,145δfdrt-1 – 0,149δfdrt-2 – 0,198 (2) δoeoit = –27,912(roat-1 – 0,075cart-1 + 0,092oeoit-1 – 0,040fdrt-1 – 4,496) + 1,357δroat-1 + 2,230δroat-2 – 0,905δcart-1 – 0,805δcart-2 – 0,237δoeoit-1 – 0,096δoeoit-2 – 0,776δfdrt-1 – 0,743δfdrt-2 – 1,077 (3) δfdrt = –33,288(roat-1 – 0,075cart-1 + 0,092oeoit-1 – 0,040fdrt-1 4,496) – 8,166δroat-1 + 7,830δroat-2 + 3,320δcart-1 + 2,288δcart-2 – 0,059δoeoit-1 + 0,834δoeoit-2 +0,726δfdrt-1 + 0,681δfdrt-2 + 0,836 (4) granger causality analysis for dependent variables aroat based on the form of equation (1) of the vecm model (2) above, it is known that the roa variable has a cointegration equation – 1.692, where the error correction term (ect) coefficient is negative. based on the results of data processing using eviews 9, it was found that for p-value f statistics of 0.000031 less than the significance level α = 5%, which means that the coefficient is significant. thus, the coefficient of ect in equation (1) is a significant coefficient and is negative. this means that there is a long-run causality from car, oeoi and fdr to the level of roa in islamic banks owned by the indonesian government from 2009-2017. this result is supported by research conducted by mawardi (2005) which states that car has a long-term causality relationship to roa. according to lexy janzen sinay (2014: 14) to see the relationship of short-run causality in a vecm equation, the granger causality test was used. the results of the granger causality test in the first equation of vecm (2) are as follows: table 6. granger causality test: dependent variable δroat excluded chi-sq db p value δcart 9,512895 2 0,0086 δoeoit 0,253455 2 0,8810 δfdrt 28,72819 2 0,0000 all 57,61088 6 0,0000 in table 9, an analysis can be made, that is wald's p-value statistical test. variable δcart is 0.0086 smaller than the significant level α = 5%. this means that, rejecting hypothesis h0: there is no shortterm causality relationship which means that there is a short-term causality relationship between the level of car and the level of jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 32-45 roa in syariah bank that owned by government of indonesia from 2009-2017. for the variable δoeoit has a p-value of 0.8810 greater than the significance level α = 5%. this means that, accepting hypothesis h0: there is no short-term causality relationship which means there is no shortterm causality relationship between the oeoi level and the level of roa in syariah bank that owned by government of indonesia from 2009-2017. next for the δfdrt variable has a p-value of 0.0000 less than the significant level α = 5%. this means that, rejecting hypothesis h0: there is no short-term causality relationship which means there is a short-term causality relationship between the fdr level to the level of roa in syariah bank that owned by government of indonesia from 2009-2017. however, if viewed as a whole in equation (1), then there is a short-term causality relationship from the level of car, oeoi and fdr to the level of roa in indonesian government-owned islamic banks from 20092017. this can be seen from the value of pvalue = 0.0000 smaller than the significant level α = 5%, which means rejecting the hypothesis h0 where this means there is a short-term causality relationship between the levels of car, oeoi and fdr to the level of roa in islamic banks owned by the indonesian government from 2009-2017. this is consistent with the research conducted by anita karisma mastika permatasari and dheasey amboningtyas (2017). granger causality analysis for dependent variables δcart based on the form of equation (2) of the vecm (2) model above, it is known that the car variable has a cointegration equation – 1,900; where the error correction term (ect) coefficient is negative. based on the results of data processing using eviews 9, it was found that for p-value f statistics of 0,000001 less than the significance level α = 5%, which means that the coefficient is significant. thus, the coefficient of ect in equation (2) is a significant coefficient and is negative. this means that there is a long-run causality of roa, oeoi and fdr against the level of car in the indonesian government-owned islamic banks from 2009-2017. this is in accordance with the research conducted by fenandi bilian and purwanto (2017). according to lexy janzen sinay (2014) to see the relationship of short-run causality in a vecm equation, the granger causality test was used. the results of the granger causality test in the first equation of vecm (2) are as follows: table 7. granger causality test: dependent variable δcart excluded chi-sq db p value δroat 18,23495 2 0,0001 δoeoit 18,09765 2 0,0001 δfdrt 6,079053 2 0,0479 all 39,01579 6 0,0000 in table 7, an analysis can be made, namely the wald p-value statistical test. variable δroat is 0,0001 smaller than significant level α = 5%. this means that, rejecting hypothesis h0: there is no shortterm causality relationship which means that there is a short-term causality relationship between the level of roa to the level of car in syariah bank that owned by government of indonesia from 2009-2017. for the variable δoeoit has a p-value of 0,0001 smaller than the significant level α = 5%. this means that, rejecting hypothesis h0: there is no short-term causality relationship which means there is a shortterm causality relationship between the oeoi level and the level of car in syariah bank that owned by government of indonesia from 2009-2017. next for the δfdrt variable has a p-value of 0.0479 smaller than the significant level α = 5%. this means that, rejecting hypothesis h0: there is no short-term causality relationship which means there is a shortterm causality relationship between the fdr level to the level of car in syariah bank that owned by government of indonesia from 2009-2017. however, if viewed as a whole in equation (2), then there is a short-term causality relationship from the level of roa, oeoi and fdr to the level of car in the indonesian government-owned islamic bank from 20092017. this can be seen from the value of pvalue = 0.0000 smaller than the significant level α = 5%, which means rejecting the hypothesis h0, which means that there is a short-term causality relationship between the level of roa, oeoi and fdr to the level of car in a sharia bank owned by the indonesian government from 2009-2017. this is supported by research conducted by rofikoh rokhim and jubilant arda harmidy (2013). jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 32-45 granger causality analysis for dependent variables δoeoit based on the form of equation (3) of the vecm (2) model above, it is known that the oeoi variable has a cointegration equation – 27,912; where the error correction term (ect) coefficient is negative. based on the results of data processing using eviews 9, it was found that for p-value f statistics of 0,000002 less than the significance level α = 5%, which means that the coefficient is significant. thus, the ect coefficient in equation (3) is a significant coefficient and is negative. this means that there is a long-run causality from roa, car and fdr to the level of oeoi in the indonesian government islamic banks from 2009-2017. this is in accordance with the research conducted by deden edwar yokeu bernardin (2016). according to lexy janzen sinay (2014) to see the relationship of short-run causality in a vecm equation, the granger causality test was used. the results of the granger causality test in the first equation of vecm (2) are as follows: table 8. granger causality test: dependent variable δoeoit excluded chi-sq db p value δroat 0,322428 2 0,8511 δcart 8,221816 2 0,0164 δfdrt 40,28180 2 0,0000 all 71,83938 6 0,0000 in table 8, an analysis can be made, namely wald's p-value statistical test. variable δroat is 0.8511 greater than the significance level α = 5%. this means that, accepting hypothesis h0: there is no shortterm causality relationship which means that there is no short-term causality relationship between the level of roa to the level of oeoi in syariah bank that owned by government of indonesia from 2009-2017. for the variable δcart has a p-value of 0.0164 smaller than the significant level α = 5%. this means that, rejecting hypothesis h0: there is no short-term causality relationship which means that there is a short-term causal relationship between the level of car and the level of oeoi in syariah bank that owned by government of indonesia from 2009-2017. next for the δfdrt variable has a p-value of 0,000 smaller than the significant level α = 5%. this means that, rejecting hypothesis h0: there is no short-term causality relationship which means there is a short-term causality relationship between the fdr level to the oeoi level in syariah bank that owned by government of indonesia from 2009-2017. however, if viewed as a whole in equation (3), then there is a short-term causality relationship from the level of roa, car and fdr to the oeoi level in syariah bank that owned by government of indonesia from 2009-2017. this can be seen from the value of p-value = 0,0000 smaller than the significant level α = 5%, which means rejecting the hypothesis h0, which means that there is a short-term causality relationship between the level of roa, car and fdr to the oeoi level in syariah bank that owned by government of indonesia from 2009-2017. granger causality analysis for dependent variables drfdrt based on the form of equation (4) of the vecm model (2) above, it is known that the fdr variable has a cointegration equation – 33,288; where the error correction term (ect) coefficient is negative. based on the results of data processing using eviews 9, it was found that for p-value f statistics of 0,000000 less than the significance level α = 5%, which means that the coefficient is significant. thus, the coefficient of ect in equation (4) is a significant coefficient and is negative. this means that there is a long-run causality from roa, car and oeoi to the level of fdr in islamic banks owned by the indonesian government from 2009-2017. this is in accordance with the research conducted by erma kurniasih (2016). according to lexy janzen sinay (2014) to see the relationship of short-run causality in a vecm equation, the granger causality test was used. the results of the granger causality test in the first equation of vecm (2) are as follows: table 9. granger causality test: dependent variable δfdrt excluded chi-sq db p value δroat 11,83162 2 0,0027 δcart 37,87209 2 0,0000 δoeoit 4,282536 2 0,1175 all 101,1076 6 0,0000 in table 9, an analysis can be made, that is wald's p-value statistical test. variable δroat is 0.0027 smaller than the significant level α = 5%. this means that, rejecting hypothesis h0: there is no shortterm causality relationship which means that there is a short-term causality relationship between the level of roa to the fdr level in jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 32-45 syariah bank that owned by government of indonesia from 2009-2017. for the variable δcart has a p-value of 0.0000 smaller than the significant level α = 5%. this means that, rejecting hypothesis h0: there is no short-term causality relationship which means there is a shortterm causality relationship between the level of car to the fdr level in syariah bank that owned by government of indonesia from 2009-2017. next for the variable opoeoit has a p-value of 0.1175 greater than the significant level α = 5%. this means that, accepting the hypothesis h0: there is no short-term causality relationship which means there is no short-term causality relationship between the oeoi level of the fdr level in syariah bank that owned by government of indonesia from 2009-2017. however, if we look at it as a whole in equation (4), there is a short-term causality relationship from the level of roa, car and oeoi to the fdr level in the governmentowned islamic bank from 2009-2017. this can be seen from the value of p-value = 0,0000 smaller than the significant level α = 5%, which means rejecting the hypothesis h0, which means that there is a short-term causality relationship between the level of roa, car and oeoi on the fdr level in islamic banks owned by the indonesian government from 2009-2017. this is consistent with the research conducted by kamalia sani and maftukhatusolikhah (2015). forecasting and structural analysis this section will explain about forecasting and structural analysis of forecasting from the vecm model (2). before discussing the analysis of forecasting results it will be explained in advance about structural analysis which includes the impulse response function (irf) analysis and variance decomposition. impulse response function (irf) analysis is the result of impulse-response (irf) plots where there are nine impulse response function (irf) plots for the next 10 periods, which explain visually the response (response) of a variable that arises due to shocks ( shock / impulse) of one standard deviation both from itself and from other variables. impulse response function (irf) analysis the impulse response function (irf) analysis can be seen from the following picture: from the data shown in figure 1, it can be seen that the average response to the shocks of each variable is stagnant both positive and negative. for those who have a positive stagnant pattern such as the roa response to itself which is in a positive area. and for the negative stagnant pattern as possessed by the oeoi level response to roa that has a negative stagnant pattern. figure 1. impulse response function (irf) analysis jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 32-45 forecast error decomposition variance (fedv) analysis of variance decomposition is often referred to as a forecast error decomposition variance (fedv) analysis. the results of the fedv analysis for the 10 periods of each variable are as follows table 10: table 10. forecast error decomposition variance (fedv) for variable roa period s.e. roa car oeoi fdr 1 0,558821 100,0000 0,000000 0,000000 0,000000 2 0,811845 84,65184 3,384199 9,065921 2,898036 3 0,955230 83,07784 4,692889 7,982179 4,247092 4 1,013536 81,77571 4,203757 8,308055 5,712473 5 1,117603 84,10387 3,497573 7,541955 4,856599 6 1,201076 83,38625 4,068939 7,508163 5,036644 7 1,308588 84,01748 3,816091 7,547739 4,618685 8 1,356675 84,19319 3,571419 7,586180 4,649215 9 1,434692 84,87481 3,288029 7,623153 4,214004 10 1,490787 84,75780 3,365720 7,440078 4,436406 table 10 is a summary of the results of the fedv analysis for the roa level of shocks given by each variable including itself. the fedv analysis that can be taken from table 14 states that in the short term, the third period: shocks to itself result in 83,08% fluctuations in the level of roa, and shocks to the level of car result in 4,69% fluctuations in the roa level, while the oeoi level results in 7,99% fluctuations in the level of roa and the fdr rate resulted in 4,25% of the fluctuations in the level of roa in syariah bank that owned by indonesia government from 2009-2017. on the other hand, in the long term, on the 10 th period; the fluctuations in themselves increased in the roa level, while the car level shock weakened by 3,37% in the roa level, while the oeoi level weakened by 7,4% in the roa level and the fdr rate increased by 4.4% in roa level. then for fedv analysis for the level of car can be seen in the following table 11 : table 11. forecast error decomposition variance (fedv) for variable car peroid s.e. roa car oeoi fdr 1 2,569470 0,216592 99,78341 0,000000 0,000000 2 3,265500 11,06809 61,77981 10,30841 16,84369 3 3,430043 10,58650 57,42224 10,13297 21,85829 4 3,543078 10,62545 55,18360 12,20149 21,98945 5 3,739761 9,555302 59,37204 10,98054 20,09211 6 3,965661 11,24582 55,34150 12,01947 21,39321 7 4,108551 10,53188 53,92738 11,19986 24,34088 8 4,229213 10,53545 52,02640 11,91639 25,52176 9 4,321707 10,11199 53,21140 11,44703 25,22958 10 4,457600 10,44308 52,69517 11,51112 25,35062 table 11 is a summary of the results of the fedv analysis for the level of car from shocks given by each variable including itself. the fedv analysis that can be taken from table 15 states that in the short term the third period: the shock to itself results in 10,59% fluctuations in the level of car, and shocks to itself result in 57,42% fluctuations in the level of car, while the oeoi level 10,13% fluctuations in the level of car and the fdr level resulted in 21,86% of the fluctuations in the level of car in syariah bank that owned by indonesia government from 2009-2017. on the other hand, in the long term, on the 10 th period; the shock to itself increased its fluctuation in the roa level of 10,44 in the car level, while the car level shock against itself weakened by 52,70% in the car level, while the oeoi level increased by 11,51% in the car level and the fdr rate rose by 25,35% in the car level. then for analysis of fedv for oeoi level can be seen in the following table 12 : jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 32-45 table 12. forecast error decomposition variance (fedv) for variable oeoi period s.e. roa car oeoi fdr 1 4,900021 90,65639 0,256969 9,086645 0,000000 2 8,543111 68,82259 12,25162 13,09900 5,826784 3 9,734143 73,24532 10,39652 11,46934 4,888820 4 10,33510 72,75164 9,542467 10,57479 7,131103 5 11,27413 75,99279 8,237227 9,144431 6,625551 6 12,21335 75,72465 8,966293 8,544613 6,764440 7 13,11041 78,03873 7,804636 8,281893 5,874737 8 13,62512 78,34765 7,481587 7,928540 6,242224 9 14,35411 79,53221 6,808952 7,645938 6,012897 10 14,97808 79,48568 6,961552 7,269908 6,282861 table 12 is a summary of the results of the fedv analysis for the oeoi level of shocks given by each variable including itself. the fedv analysis that can be taken from table 16 states that in the short term the third period: shocks to itself result in 11,47% fluctuations in the oeoi level, and shocks to roa result in 73,26% fluctuations in the roa level, while the car level results in 10,40% of fluctuations in the oeoi level and fdr rate resulted in 4.89% of the fluctuations in the oeoi level in bank syariah that owned by indonesia government from 2009-2017. on the other hand, in the long term, on the 10th period; self-shock has increased fluctuations in the roa level of 79,49 in the oeoi level, while the oeoi level shock against itself has weakened by 7,27% in the oeoi level, while the car level has weakened to 6,96% in the oeoi level and the fdr rate weakened to 6,28% at the oeoi level. then for fedv analysis for fdr levels can be seen in the following table 13 : table 13. forecast error decomposition variance (fedv) for variable fdr period s.e. roa car oeoi fdr 1 7,217440 25,40206 4,078983 0,049633 70,46932 2 8,914190 19,03179 3,518098 24,05266 53,39746 3 9,624438 17,04577 10,92353 20,66370 51,36700 4 10,04115 15,68744 15,23107 19,99362 49,08787 5 11,39334 21,15253 11,88123 16,33653 50,62972 6 11,94191 20,11164 10,84064 17,99694 51,05078 7 12,79217 19,17657 12,93247 16,78297 51,10799 8 12,88804 18,89356 13,74062 16,97900 50,38681 9 13,51641 21,38142 12,49306 16,61052 49,51499 10 13,82055 21,10662 12,24002 16,70587 49,94748 table 13 is a summary of the results of the fedv analysis for the fdr level of shocks given by each variable including itself. the fedv analysis that can be taken from table 17 states that in the short term the third period: shocks to itself result in 51,37% fluctuations in the fdr level, and shocks to roa result in 17,05% fluctuations in the fdr level, while the car level results in 10,92% of fluctuations in fdr and oeoi levels resulted in 20,66% of fluctuations in fdr levels in the indonesian government-owned islamic banks from 2009-2017. on the other hand, in the long term, on the 10th period; the shock to itself increased its fluctuation in the roa level to 21,11% in the fdr level, while the fdr level shock to itself weakened to 49,95% in the fdr level, while the car level increased to 12,24% at the level fdr and oeoi levels weakened to 16,71% in the fdr level. jurnal akuntansi, manajemen dan ekonomi, vol 21, n0 1, 2019, 32-45 forecast result the forecast results using vecm (2) for the next 10 periods can be seen in the following figure 2 : figure 2. prediction results for roa, car, oeoi and fdr from the figure above, it is known that it is predicted that there will be an increase in the level of roa while the one that experienced a decline is the level of oeoi, besides that it will experience stagnant growth, namely the level of car and fdr in the bank syariah owned by indonesia government from 20092017. based on figure 2, mape values can be obtained from each variable as shown in the following table 14 : table 14. accuracy of forecast results roa car oeoi fdr ma pe 99,98 % 100,9 1% 100,3 8% 3185,3 4% based on figure 17, mape values can be obtained from each variable as shown in table 18. in table 18 it can be seen that the smallest mape is the roa variable. this means that forecasting using the vecm model (2) is more accurate if applied to roa (return on asset). conclusion based on the results and discussion, conclusions can be made as follows. based on the model specifications (optimum lag analysis) and model checking (residual serial correlation test), the best model for data on car, oeoi and fdr to roa is obtained is vecm (2). based on vecm (2), the results of causality analysis are obtained as follows. there is a short-term and long-term causality relationship between the level of roa as the dependent variable and the level of car, oeoi and fdr as independent variables. there is no short-term causality relationship between the level of roa as the dependent variable with the level of car, oeoi and fdr, but conversely there is a long-term relationship between the level of roa to the level of car, oeoi and fdr. there is no relationship between short and long term causality between the level of roa as the dependent variable with the level of car, oeoi and fdr. based on the structural analysis of vecm (2), it can be concluded that the response of each variable to the shock that comes from itself is quite significant, due to fluctuations. the response of the level of roa to car, oeoi and fdr is very significant. in general, for future analysis both in the long and the short term, the level of roa on the levels of car, oeoi and fdr significantly influence each other. the forecast results obtained using vecm (2) are quite accurate, especially for forecasting roa levels. this can be seen from the mape of the level of roa which shows the smallest percentage number of the four variables. it is important to know that the level of roa in islamic banks owned by the government of indonesia shows the level of profits achieved by banks in a certain period that are sourced from the total assets they have. references bernardin, d.e.y. 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(2014). vector error correction model approach to analysis of the relationship of inflation, bi rate and us dollar. jurnal barekeng, 8(2):9-18. wahyu, d.r. 2016. financing to deposit ratio (fdr) sebagai salah satu penilaian kesehatan bank umum syariah (study kasus pada bank bjb syariah cabang serang). jurnal ekonomi keuangan dan bisnis islam, 7(1):19-36. wibisono, m.f. & wahyuni, s. (2017). pengaruh car, npf, bopo, fdr terhadap roa yang dimediasi oleh nom. journal of business and management, 17(1):41-62 wisnu, m. 2005. analisis faktor-faktor yang mempengaruhi kinerja keuangan bank umum di indonesia (studi kasus pada bank umum dengan total assets kurang dari 1 trilliun). jurnal bisnis strategi, 3(3):84-94 . correspondence to : suharno@unsoed.ac.id received: 18 november 2021 accepted: 7 january 2022 accepted: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 19 24 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the excavation sector is one of the most critical sectors of a country's economy, especially for developing countries, considering that the technology and equipment used are not yet sophisticated, so they still depend on natural resources. this makes the process of managing excavation materials significant (siregar, 2016). excavation is a business that has a high risk. first, the risk of the number of mineral reserves, namely the risk of the number of remaining reserves considering that minerals are natural resources that take a very long time to be renewed and even cannot be renewed. second, the technological risk is the capital that must be owned to buy the machines used to produce minerals. third, the risk of changes in policies issued by the government regarding mining and quarrying policies so that companies must keep pace with changes and implement the latest policies (idris, 2013). in the banyumas regency area, the types of group c minerals found include limestone, andesite, kaolin, sand, sand, granite, and soil. this rock type is commonly found in the kedungbanteng district, karanglewas district, jatilawang district, and wangon district (iqbal et al., 2019). then the type of sand type c excavation is found in patikraja district, jatilawang district, rawalo district, wangon district, gumelar district, karanglewas district, and somagede district. the sand excavation sites themselves are mostly carried out along the serayu river, logawa river, klawing river, tajum river, banjaran river, cangkok river, and krukut river (bilalodin & irayani, 2007). in general, the business of class c minerals with sand and stone types has constraints, including limited resource capabilities, the application of technology that has not been optimal, and the relatively large amount of capital used. in the mining business of class c, the type of sand generally has to have capital equipment such as boats, business land, and even a sand suction machine, but some only use simple tools operated by human power. not much different from the stone business, relatively large capital is used for business land and machinery and equipment used to dig stones, but some only use simple tools operated by human power. in connection with these conditions, it is necessary to find a way to carry out a strategy to maximize productivity and achieve production efficiency. socialization from the relevant service agencies is needed so that strategies to maximize production can be carried out to efficiency analysis sand and stone mining: production stochastic frontier modeling elya nurul amalia1, nunik kadarwati2, suharno3 1,2,3 economics development studies, faculty of economics and business, universitas jenderal soedirman, indonesia abstract this research aims to analyze the effect of capital, cost, working hours, labor, technology, analyze the most influential variables on the production of sand and stone and determine the level of technical efficiency, allocative efficiency, and economic efficiency. the analysis technique uses the stochastic frontier analysis mle method. the results showed that capital, cost, and technology variables have no significant effect, labor has a positive and significant effect. the most influential variable on sand and stone production in banyumas regency is labor. the level of technical efficiency in the production of sand is 0,829418, and stone is 0,743271. the level of allocative efficiency of sand production is 1,799976 and stone 1,997888. the level of economic efficiency of sand production is 1,492933 and stone 1,484972. the production of sand and stone has reached technical efficiency but has not yet reached allocative efficiency and economic efficiency. keywords capital; cost; labor; technology jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 19-24 technical problems (suharno & saraswati, 2019). the profits obtained are not a determinant that production activities have created efficiency but must also minimize the costs used, so producers must pay attention to the production factors used so that the number of products produced can be maximized and production efficiency is created (hata et al., 2020 ). in addition to business and business interests, the production of minerals must also be carried out most efficiently. this is because minerals are natural resources that require a long time to renew and are even nonrenewable. the availability of natural resources must be maintained to be used by the next generation, especially for these business actors who have an enormous responsibility for the sustainability of natural resources (suharno et al., 2019). technical efficiency can be achieved if the use of certain factors of production can produce maximum profit. allocative efficiency can be achieved if the input used is the same as the output produced. economic efficiency can be achieved if there has been technical efficiency and allocative efficiency. the purpose of this study is to analyze the effect of capital, cost, labor, and technology on the production of sand and stone in banyumas regency, analyze the variables that have the most influence on the production of sand and stone, and determine the level of technical efficiency, allocative efficiency, and economic efficiency. this research is expected to increase knowledge and as a reference for further research regarding production analysis on group c minerals types of sand and stone in banyumas regency. this research is also expected to be part of a reference source of thought in determining policies regarding business licensing in the mining and quarrying sector and can be a source of information to optimize production. research methods this research is a type of quantitative research, which is research conducted based on quantitative data. this research was conducted in march 2021. the location of this research was conducted in banyumas regency, central java province. the population in this study were all business units of class c minerals of sand and stone types located in banyumas regency as many as 42 sand business units and 40 stone business units. the sampling method used in this study using the random sampling technique is a sampling method by choosing randomly without regard to strata, and all members of the population have the same opportunity to be sampled (suliyanto, 2018:112). the sample size was taken based on a simple formula according to yamane 1967:99) using a sampling error of 5% as follows: n = 𝑁 1+𝑁𝑑2 information: n: number of samples n: total population d: the level of error (sampling error) that can be tolerated based on the above formula, the minimum sample results in the sand business unit are as follows: n = 42 1+42(0,05)2 n = 38 the results of the sample in the stone business unit are as follows: n = 40 1+40(0,05)2 n = 36 so the minimum number of samples that must be met in this study is 38 sand business units and 36 stone business units. the data collection method used is a questionnaire and direct interviews with respondents, namely the owner of a sand and stone business in banyumas regency. data analysis the method used is stochastic frontier analysis to analyze the level of technical efficiency, allocative efficiency, and economic efficiency. the stochastic frontier method is an analytical method used to estimate the magnitude of the efficiency coefficient of each independent variable (darmawan, 2016:30). in addition, using the stochastic frontier analysis method can simplify the estimation of the relationship between production inputs and outputs and at the same time estimate the level of efficiency, which is written in the following form: lny = β0+β1lnk+β2lnc+β3lnl+β4dt+vi-ui information: y : production quantity (m3/day) lnk : capital (rupiah) lnc : production cost (rupiah) lnl : manpower (person/business unit) dt : technology (dummy) 𝛽𝑜𝛽1𝛽2𝛽3𝛽4 : coefficient of independent variable jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 19-24 vi : random error ui : level of inefficiency the analytical method using the stochastic frontier can be used to analyze several types of efficiency, including the following: 1. technical efficiency technical efficiency has a value ranging from 0 to 1. according to research conducted by cordanis et al. (2020), a business can have achieved technical efficiency if the level of technical efficiency is more than or equal to 7.0. technical efficiency shows the efficiency of production output in the use of production inputs (darmawan, 2016: 53). the level of technical efficiency using the stochastic frontier method can be written with the following formula: te=exp(-u) information: te: technical efficiency exp: exponent -u: accommodation from inefficiency te > 7.0; means that it has reached technical efficiency 2. allocative efficiency allocative efficiency is part of economic efficiency along with technical efficiency (darmawan, 2016:56). in the stochastic frontier method, allocative efficiency is written as follows: ae=npmxi/pxi information: ae: allocative efficiency ae > 1; it means that the use of input xi is not efficient ae = 1; it means that the use of input xi is efficient ae < 1; it means that the use of input xi is not efficient 3. economic efficiency economic efficiency analysis presents the coefficient of the total cost used for production and the actual total cost. the formula for economic efficiency using the stochastic frontier method can be written in the following way (darmawan, 2016:56): ee=te×ae information: ee: economic efficiency te: technical efficiency ae: allocative efficiency ee > 1; means that economic efficiency is not achieved ee = 1; means that economic efficiency is achieved ee < 1; means that economic efficiency has not been achieved results and discussion 1. stochastic frontier analysis a. sand this study uses a frontier production function with five variables, namely capital (x1), production costs (x2), labor (x3), and technology (x4). the analytical tool used to analyze the frontier production function uses frontier 4.1 with the mle (maximum likelihood estimation) method which produces the following analysis estimates: lny = 1,31423 + 0,24669lnx1 – 0,53277lnx2 + 1,24241lnx3 + 0,03453lnx4 + vi ui based on the above equation, it can be seen the meaning of each coefficient as follows: a. the coefficient of the constant in the above equation is 1,31423. this value indicates that if all variables are zero, then the sand production is 1,31423 m3. b. the coefficient of capital variable (x1) of 0,24669 means that if capital (x1) is added by one percent, the sand production will increase by 0,24669 percent with the assumption that other variables are constant. c. the cost variable coefficient (x2) of 0,53277 means that if the cost (x2) is added by one percent, the sand production will decrease by 0,53277 percent, assuming other variables are constant. d. the labor variable coefficient (x3) of 1,24241 means that if labor (x3) is added by one percent, the sand production will increase by 1,24241 percent, assuming other variables are constant. e. the technology variable coefficient (x4) of -0,03453 means that if using technology (x4) instead of machines, the sand production will be 0,034530 percent less than if using machine technology (x4), assuming other variables are constant. b. stone based on the analysis of the stone business, the equation function of the estimation results is obtained as follows: lny = 2,63760 + 0,17865lnx1 – 0,22067lnx2 + 0,96739lnx3 – 0,64249dx4 + vi ui based on the above equation, it can be seen the meaning of each coefficient as follows: a. the coefficient of constant in the above equation is 2,63760. this value indicates that if all variables are zero, the producer can produce 2,63760 m3 of stone. b. the coefficient of capital variable (x1) of 0,17865 means that if capital (x1) is jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 19-24 added by one percent, then stone production will increase by 0,17865 percent with the assumption that other variables are constant. c. the cost variable coefficient (x2) of 0,22067 means that if the cost (x2) is added by one percent, the stone production will decrease by 0,22067 percent, assuming other variables are constant. d. the labor variable coefficient (x3) of 0,96739 means that if labor (x3) is added by one percent, the stone production will increase by 0,96739 percent with the assumption that other variables are constant. e. the technology variable coefficient (x4) of -0,64249 means that if using technology (x4) instead of machines, stone production will be 0,64249 percent more than if using machine technology (x4), assuming other variables are constant. 2. technical efficiency, allocative efficiency, and economic efficiency calculations of technical efficiency, allocative efficiency, and economic efficiency were carried out using the frontier 4.1 analysis tool with the mle (maximum likelihood estimation) method. the following is data regarding the results of the analysis of technical efficiency estimates, allocative efficiency, and economic efficiency: the average technical efficiency in the sand business is 0,829418. according to research conducted by cordanis et al. (2020), a business can have achieved technical efficiency if the level of technical efficiency is not less or equal to 0,70. on average, sand production can be said to have reached technical efficiency. producers can still take 0,170582 opportunities to increase sand production. meanwhile, the average technical efficiency in the stone business is 0,743812, so that, on average, stone production can be said to have reached technical efficiency. manufacturers can still take the opportunity 0,256729 to increase stone production. allocative efficiency is calculated by comparing the npm value of a variable with its price level. the variables used are only variables that have a positive and significant effect. in the sand and stone business, the positive effects variables include capital (x1) and labor (x3). however, in both the sand and stone business, the only significant variable is the labor variable (x3), so that only the labor variable (x3) is calculated. it is known that the allocative efficiency in the sand business is 1,799976 or more than one, then the allocative efficiency in the sand business has not yet reached allocative efficiency. the allocative efficiency in the stone business is 2,001999 or more than one, so the allocative efficiency in the stone business has not yet reached allocative efficiency. sand and stone producers must add other inputs to increase production to achieve allocative efficiency. economic efficiency can be achieved if technical and economic efficiency has been achieved. economic efficiency is calculated by multiplying the value of technical efficiency with the value of allocative efficiency. the economic efficiency obtained in the sand business is 1,492933 or more than one, meaning that economically the sand business has not experienced economic efficiency. likewise, the economic efficiency obtained in the stone business is 1,488028, meaning that economically the stone business has not experienced economic efficiency. sand and stone producers must add more inputs to increase production and achieve economic efficiency. conclusion based on the results of research conducted to find out the effect of capital, cost, labor, and technology on the production of class c minerals, sand, and stone types in banyumas regency and the level of technical efficiency, allocative efficiency, and economic efficiency of class c minerals, sand and stone types in banyumas regency. banyumas regency, it can be concluded as follows: 1. based on the results of the stochastic frontier analysis using the mle (maximum likelihood estimation) method with the frontier 4.1 application, the results of the study of the effect of the independent variable on the dependent variable are as follows: a. capital has no significant effect on the production of sand and stone in the banyumas regency. b. the cost has no significant effect on the production of sand and stone in the banyumas regency. c. labor has a positive and significant effect on the production of sand and stone in the banyumas regency. d. technology has no significant effect on sand production, and technology has a significant and negative effect jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 19-24 on stone production in banyumas regency. 2. the most influential variable on the production of sand and stone in banyumas regency is labor. 3. this study which analyzes technical efficiency, allocative efficiency, and economic efficiency, results that the production of sand and new in banyumas regency has achieved technical efficiency, but neither sand nor stone production has not achieved allocative efficiency and economic efficiency. references bilalodin, & irayani, z. 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(2020). pengaruh indikator keuangan terhadap pertumbuhan ekonomi sektor industri pengolahan di provinsi jawa tengah. ekonomis: journal of economics and business, 4, 404–410. https://doi.org/10.33087/ekonomis.v4i2.182 undang-undang nomor 20 tahun 2008 tentang usaha mikro, kecil, dan m. (2008). undangundang nomor 20 tahun 2008 tentang usaha mikro, kecil, dan menengah. 1. yamane, t. (1967). statistic an introductory analysis 2nd edition. herper publisher. list of tables table 1. results of business estimation analysis for group c types of sand using the method mle variable coefficient standard error t-ratio jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 19-24 constanta 1,31423 0,96248 1,36546 capital (x1) 0,24669 0,85078 0,28996 cost (x2) -0,53277 0,59688 -0,89259 labor (x3) 1,24241 0,68953 *1,80182 technology (x4) -0,03453 0,41707 -0,08279 sigma-squared 0,06509 0,07097 0,91716 gamma 0,97616 0,57014 1,71214 log likelihood function 20,76177 lr test one-side error 6,11514 remarks: *significant at 10% level table 2. results of business estimation analysis of group c types of minerals using the method mle variable coefficient standard error t-ratio constanta 2,63760 1,05857 2,49167 capital (x1) 0,17865 0,11044 1,61760 cost (x2) -0,22067 0,23602 -0,93496 labor (x3) 0,96739 0,02263 *42,75633 technology (x4) -0,64249 0,09262 -6,93652 sigma-squared 0,15096 0,01538 9,81534 gamma 0,99996 0,00002 40904,59 log likelihood function 7,03837 lr test one-side error 8,36497 remarks: *significant at 5% level table 3. results of the estimation of technical efficiency, allocative efficiency, and economic efficiency of class c minerals business types of sand and stone type of business technical efficiency allocative efficiency economic efficiency sand 0,829418 1,799976 1,492933 stone 0,743812 2,001999 1,488028 correspondence to : disnaalvitaa@gmail.com received: 21 december 2021 accepted: 6 february 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 18 23 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction bank indonesia issued monetary and macroprudential policies to fulfill the objectives of bank indonesia, namely to safeguard the financial system. macroprudential policy is useful to assist monetary policy, microprudential and fiscal policy in maintaining the financial system that occurred and preventing the monetary crisis in 2008. the main instruments of the monetary policy are open market operations, reverse repo rate, bank rate, statutory liquidity ratio, cash reserve ratio, and tight credit policies. the macroprudential policy has different types of risk, namely capital, liquidity, and creditrelated. systemic risk is the result of macroprudential policies. therefore, systemic risk is indicated by indicators of banking performance such as capital adequacy ratio (car), return on assets (roa), loan to deposit ratio (ldr), and net interest margin (nim). in 2012 ltv began to be enforced, causing bad credit that occurred in indonesia to decline. in 2018, the ltv value increased so that the coverage of the collateral was higher, thus increasing the car value, which means that the level of protection for depositors’ assets is improving. in the results of the research by yugita, anis, and satrianto (2017) the relationship between ltv and financial system stability is positive which is not following the implementation of macroprudential policies on ltv indicators. furthermore, the result of research from madi and ahmadi (2019) as well as campos (2019) stated that the relationship between roa and npl is significantly negative because when the roa value is high, there are skills in managing credit so that the npl value is low. this is different from the research by jusmansyah and sriyanto (2017) which results that roa is positively related to npl. financial system stability is a condition in which the national financial system functions effectively and efficiently and is capable of being used to withstand internal and external vulnerabilities. according to priyono (2017) that financial system stability is formed from variables that represent the banking, money market, and capital market groups. financial system stability can be demonstrated by nonperforming loan (npl). according to financial system stability affected by monetary, macroprudential policies and systemic risks disna alvita azaria1, nugroho sbm2 1,2 economics, faculty of economics and business, universitas diponegoro, indonesia abstract this study aims to analyze the effect of monetary and macroprudential policies issued by bank indonesia and systemic risk in banks on financial system stability in indonesia. the variables used in this study are non-performing loan, statutory reserves, bi rate, loan to value, capital adequacy ratio, and return on assets. the data is taken from the data provided by bank indonesia, ojk, etc. the data taken are monthly from 2012 to 2020. this study used the ordinary least square (ols) equation method which must fill up the best linear unbiased estimator (blue) assumption so that the results of the t-test and f-test are unbiased. the results of this study indicate that the relationship between reserve and ltv on npl is positive and not significant. then the relationship between bi rate and roa on npl is negative and not significant and then the relationship between car and npl is positive and significant. furthermore, the results of the study also show that together monetary policy, macroprudential policy, and systemic risk affect up to 95% of changes on npl in indonesia. keywords financial system stability; non-performing loan; statutory reserves; capital adequacy ratio; return on assets jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 18-23 syaputra and adry (2019), many researchers have used the npl as an indicator of financial system stability because it can identify future financial problems. if the value of the npl is high, then the non-performing loans that occur are also high so that the stability of the financial system is low. this study analyzes the effect of monetary policy, macroprudential policy, and systemic risk on financial system stability. this financial system stability uses indicators from nonperforming loans. non-performing loan theory according to hariyani (2010), non-performing loans are classified into several types of credit, namely current loans, doubtful loans, and bad loans. meanwhile, according to ismail (2010), non-performing loan is a condition of the debtor who is unable to pay his obligations to the bank. bank indonesia classifies non-performing loans into three groups, namely: (1) substandard, which has the criteria that principal and interest installments are not paid for more than 90 days and there are indications of financial problems with the debtors; (2) doubtful, which has the criteria that the principal and interest installments are not paid for more than 180 days and there is interest capitalization; (3) loss, which has the criteria that the principal and interest are not paid beyond 270 days and operating losses are covered with new loans. research methods this research uses quantitative descriptive methods that describe events factually, systematically, and accurately because it uses numbers. quantitative methods are used to test monetary policy, macroprudential policy, and systemic risk on financial system stability. the data used in this study uses times series data from 2012 to 2020 with monthly data. variables and operational definitions of research variables the research variables used in this study are: dependent variable the dependent variable in this is nonperforming loan (y). one of the risk indicators in the financial sector is non-performing loan. a non-performing loan can be used as an indicator of financial system stability because se non-performing loan can indicate the health of a bank. the non-performing loan value is obtained from the comparison between the number of bad loans and the total loans granted to debtors. independent variable in this study the independent variables consisted of: a. statutory reserves (x1) the statutory reserve is a general fund or general deposit that must be owned by banks at bank indonesia in the form of a current account balance. bank indonesia determines the number of statutory reserves based on the percentage of supreme audit institutions collected by the bank. statutory reserves are used to regulate the money supply and it directly affects inflations. b. bi rate (x2) bi rate is the reference interest rate determined by bank indonesia. this interest rate is issued by bank indonesia through the management of liquidity in the money market to achieve the operational targets of monetary policy. in 2016, bank indonesia strengthened the monetary operating framework by implementing the benchmark interest rate to become the bi-7 day reserve repo rate. c. loan to value (x3) loan to value is used to compare the ability of banks to provide credit loans to customers for homeownership. the policy to determine loan to value was issued by bank indonesia because the property sector is one of the sectors that people are interested. this policy starts with a ratio of 70% for houses of type over 70 and then developed according to the type of house. the loan to value issued by bank indonesia is the maximum limit for the loan to value policy for banks. in the circular letter of bank indonesia number 15/40/dkmp, the relationship between loan to value and non-performing loan is negative because this policy is used to assist the community in owning a property with credit assistance so that large expenditures are not required at one time. d. capital adequacy ratio (x4) the capital adequacy ratio will show the ability of the capital adequacy of a bank to be used to overcome potential losses. this ratio has a safe limit of at least 8%, which is less than that, the ability to face the risk of loss is bad. this ratio is obtained by comparing total capital to risk-weighted assets. e. return on assets (x5) return on assets is a type of profitability ratio that is used to assess a company’s ability jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 18-23 to earn a profit from the assets used. all company assets obtained from their capital are converted into several assets so that the company continues to operate properly. return on assets is obtained by comparing net income with total assets. data analysis this research uses ordinary least square (ols) method. the ordinary least square method is a method used to estimate a regression line by finding the minimum value for the sum of the squares of error between the predicted value and the actual value. this linear method must be the best linear unbiased estimator (blue) which means that decision making is through the f test and the t-test is unbiased. three assumptions must be fulfilled in blue assumptions, that’s it: (1) there is no autocorrelation; (2) no multicollinearity; and (3) no heteroscedasticity. if any of the three assumptions are not fulfilled, then the results of the regression equation can not be called blue, so that decision-making through the f test and t-test is biased. the model of the relationship between monetary policy, macroprudential policy, and systemic risk with the dependent variable is arranged in the following function or equation: y = β0 + β1x1 + β2x2 + β3x3 + β4x4 + β5x5 + e information: y = non-performing loan β0 = constant x1 = statutory reserves x2 = bi rate x3 = loan to value x4 = capital adequacy ratio x5 = return on assets βn = coefficient of xn e = standard error hypothesis test the statistical t-test is used to show how influential the independent variable individually has on the dependent variable. using the 5% significance level, the hypotheses are: a. for the variable of statutory reserves h0: β1 = 0, statutory reserves does not affect on non-performing loan h1: β1 > 0, statutory reserves has a positive effect on non-performing loan b. for the variable of bi rate h0: β2 = 0, bi rate does not affect nonperforming loan h1: β2 > 0, bi rate has a positive effect on non-performing loan c. for the variable of loan to value h0: β3 = 0, loan to value does not affect non-performing loan h1: β3 < 0, loan to value has a negative effect on non-performing loan d. for the variable of capital adequacy ratio h0: β4 = 0, capital adequacy ratio does not affect non-performing loan h1: β4 > 0, capital adequacy ratio has a positive effect on non-performing loan e. for the variable of return on assets h0: β5 = 0, return on assets does not affect non-performing loan h1: β5 < 0, return on assets has a negative effect on non-performing loan results and discussion 1. autocorrelation test the autocorrelation test is used to determine the correlation of variables in the function model with changes in time. this model must do this test if the data used is time series. the tool used for this test is the durbin watson test which the result is the durbin watson value of the model (0,363) is less than its dl (1,591). it means that the estimation is inefficient, the results of the f test and t-test are biased. therefore, it is necessary to improve the autocorrelation using the cochrane-orcutt method by obtaining an unknown ρ (rho) value. according to pindyck and rubinfeld (1998) that the cochrane-orcutt method uses the estimated residual value of equation (et) to obtain the value of ρ (rho). it is assumed that the residual (et) follows this autoregressive (ar) pattern: et = ρ et-1 + vt after re-regressing with ar(1) and ar(2) to eliminate the correlation between errors, the equation becomes; y = 0,252 + 0,010x1 0,073x2 + 0,010x3 + 0,098x4 0,050x5 + et where the et value is; et = 0,824et-1 + 0,094et-2 + v in the new equation, the durbin watson value is 1,998. according to the number of independent variables and samples in this equation are 5 variables and 108 samples, then the value of dl and du contained in the durbin watson table are 1,591 and 1,784. so in conclusion, in the new equation, there is no autocorrelation because the dw is above the du. 2. multicollinearity test jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 18-23 the multicollinearity test was used to see if there was a correlation between the independent variables in the multiple linear regression model. the tool that is usually used is the variance inflation factor (vif). if the vif value is less than 10 then there is no multicollinearity. table 1. multicollinearity test results variable vif conclusion statutory reserves 1,370 no multicollinearity bi rate 1,214 no multicollinearity ltv 1,391 no multicollinearity car 1,387 no multicollinearity roa 2,331 no multicollinearity source: secondary data processed, 2021 so it can be concluded that the equation does not have multicollinearity between the independent variables. 3. heteroscedasticity test the heteroscedasticity test is used to sess the variance inequality of the residuals of one model with another model. if the model has the same variance from one residual model and another, then the model can be used. the heteroskedasticity test was carried out using the breusch-godfrey test which got the results that can be seen in table 2 (using the 5% significance level). table 2. heteroscedasticity test results f-statistic 0,527 prob. f 0,755 obs*rsquared 2,720 prob. chisquare 0,743 scaled explained ss 3,748 prob. chisquare 0,586 source: secondary data processed, 2021 with the value of prob. chi-square in obs*rsquared is 0,743 which is above the significance value (0,05), which means that the estimation of the equation model does not contain heteroscedasticity. 4. f-test the f test was conducted to see whether the independent variables simultaneously had a significant effect on the dependent variable or not. by using a significance of 5%, the results of the f test can be seen in table 3 that the significantly lower than 0,05. table 3. statistical f test results f change f table sig. f change 245,49 2,19 0,0000 source: secondary data processed, 2021 the results of the f value (245,49) are in table 3 above the f table (2,19). so it can be concluded that the model used is correct. 5. r-squared r-squared is an indicator that shows how much the model’s ability to explain the effect of the independent variables on the dependent variable. the value of r-squared ranges from zero (0) to one (1). if the value of r-squared is close to one (1), it means that the model’s ability to explain changes in the dependent variable is strong and vice versa. table 4. model assessment test results r-squared adjusted r-square 0,952 0,948 source: secondary data processed, 2021 the coefficient of determination (r-squared) value in the equation is 0,952. so it can be concluded that the variables of statutory reserves, bi rate, loan to value, capital adequacy ratio and return on assets have an effect of 95,2% on non-performing loan while the remaining 4,8% is influenced by other variables not examined. since the value of r-squared is close to 1, the independent variables provide almost all the information needed to predict the dependent variable. 6. t-test if the value of t is above the t table, then the independent variable has a contribution to the dependent variable and vice versa. the value of t whose results are positive or negative shows the relationship of the dependent variable which is in the same direction or opposite to the independent variable. table 5. ols regression test results variable coeff. tstatistic sig. statutory reserves 0,010 0,2873 0,7745 bi rate -0,073 -1,0361 0,3027 ltv 0,010 1,2443 0,2163 car 0,098 3,4125 0,0009 roa -0,050 -0,4568 0,6488 source: secondary data processed, 2021 from table 5, it is known that the regression coefficient values of the statutory reserves, bi rate, loan to value, capital adequacy ratio, and return on assets are as follows: a. constants (β0) the constant value is 0,252 which means that if the five independent variables are considered constant, the non-performing loan is 2,52%. b. statutory reserves the statutory reserve coefficient value is 0,010 which means that every time there is an increase of the statutory reserves jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 18-23 by 1, it will increase the value of nonperforming loan by 0,010. c. bi rate bi rate coefficient value is -0,073 which means that every time there is an increase of bi rate by 1, it will decrease the value of non-performing loan by 0,073. d. loan to value the loan to value coefficient value is 0,010 which means that every time there is an increase of loan to value by 1, it will increase the value of non-performing loan by 0,010. e. capital adequacy ratio capital adequacy ratio coefficient value is 0,098 which means that every time there is an increase of capital adequacy ratio by 1, it will increase the value of non-performing loan by 0,098. f. return on assets return on assets coefficient value is 0,050 which means that every time there is an increase of return on assets by 1, it will decrease the value of nonperforming loan by 0,050. effect of the statutory reserves on nonperforming loan based on the results of the t-test, it is known that the calculated t value on statutory reserves (x1) is 0,2873 while the t table is 1,9826. from this value, it is known that the calculated t value (0,2873) < t table (1,9826) with significance value is 0,7745 which means that statutory reserves have no significant effect on non-performing loan. the relationship between statutory reserves and non-performing loan is positive, which is following the theory that if the statutory reserve decrease, liquidity increases and decreases the value of the non-performing loan. effect of bi rate on non-performing loan based on the results of the t-test, it is known that the calculated t value on bi rate (x2) is 1,0360 while the t table is 1,9826. from this value, it is known that the calculated t value (1,0360) < t table (1,9826) with significance value is 0,3027 which means that bi rate has no significant effect on non-performing loan. the relationship between bi rate and nonperforming loan as shown in the regression results is negative. bi rate should have a positive correlation with non-performing loan because the relationship between bi rate and statutory reserves is the same, which is inverse to liquidity. effect of loan to value on nonperforming loan based on the results of the t-test, it is known that the calculated t value on loan to value (x3) is 1,2442 while the t table is 1,9826. from this value, it is known that the calculated t value (1,2442) < t table (1,9826) with significance value is 0,3027 which means that loan to value has no significant effect on nonperforming loan. the relationship between loan to value and non-performing loan in the regression model results shows a positive relationship which is not following the circular letter of bank indonesia number 15/40/dkmp which is states that when loan to value increases, it can reduce the risk of bad loans. effect of capital adequacy ratio on nonperforming loan based on the results of the t-test, it is known that the calculated t value on capital adequacy ratio (x4) is 3,4124 while the t table is 1,9826. from this value, it is known that the calculated t value (3,4124) > t table (1,9826) with significance value is 0,0009 which means that capital adequacy ratio positive and significant effect on non-performing loan. the relationship between capital adequacy ratio and non-performing loan is positive, which is following the theory that when the capital adequacy ratio value is high, it indicates high risk, so the relationship between capital adequacy ratio and non-performing loan is positive. effect of return on assets on nonperforming loan based on the results of the t-test, it is known that the calculated t value on return on assets (x5) is 0,4567 while the t table is 1,9826. from this value, it is known that the calculated t value (0,4567) < t table (1,9826) with significance value is 0,6488 which means that return on assets has no significant effect on non-performing loan. the relationship between return on assets and nonperforming loan shows a negative result which is also following the theory because when return on assets value increases, the profit earned by banks also increases so that credit risk decreases. however, the relationship between return on assets and non-performing loan in this research was not significant. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 18-23 conclusion the effect of the monetary policy of the statutory reserves indicator on nonperforming loan is unidirectional. while the effect of monetary policy on bi rate indicator on non-performing loan is opposite and both have no significant effect. so it can be said that the effect of the statutory reserves is opposite to financial system stability and the effect of the bi rate is in line with financial system stability. the effect of macroprudential policy on the loan to value indicator on non-performing loan is in the same direction which is not following the theory and also its effect on nonperforming loan is not significant. so that the relationship between loan to value and financial system stability is in the opposite direction. the effect of systemic risk on the capital adequacy ratio indicator on non-performing loan has a positive and significant effect following the theory. while the effect of systemic risk indicator return on assets on non-performing loan has a negative and no significant effect. so that the relationship between capital adequacy ratio and financial system stability is in the same direction and return on assets is in the opposite direction. the r-squared value in the equation model is 95,2%, which is close to 100%, it means that the independent variables provide almost all the information needed to predict the dependent variable namely nonperforming loan which is an indicator of financial system stability. references campos, m. f. (2019). efektifitas kebijakan makroprudensial dan suku bunga sbi terhadap risiko kredit perbankan di indonesia. management and business review, vol. 3, no. 1, h. 23-32. hariyani, i. (2010). restrukturisasi dan penghapusan kredit macet: elex media komputindo. ismail, i. (2010). manajemen perbankan (dari teori menuju aplikasi ed.). jakarta: kencana. jusmansyah, m., & sriyanto, a. (2017). analisis pengaruh car, bopo dan roa terhadap non performance loan. jurnal akuntansi dan keuangan, 2(1), 46-65. madi, r. a., & ahmadi, k. a. (2019). pengaruh makro ekonomi dan fundamental bank terhadap non performing loan. pindyck, s., & rubinfeld, l. (1998). econometric models and economic forecasts. in: mcgraw-hill, new york. priyono, a. f. (2017). konstruksi indeks kestabilan sistem keuangan indonesia. quantitative economics journal, vol. 6, no. 1(h. 32-47). syaputra, r., & adry, m. r. (2019). pengaruh variabel makroekonomi terhadap stabilitas sistem keuangan di indonesia (melalui pendekatan moneter). jurnal kajian ekonomi dan pembangunan, vol. 1, no. 2, h. 473-486. yugita, t. u., anis, a., & satrianto, a. (2017). pengaruh kebijakan makroprudensial terhadap resiko kredit macet pada bpr konvensional di indonesia. ecosains: jurnal ilmiah ekonomi dan pembangunan, vol. 6(2), h. 161-174. correspondence to : asyidatur-rosmaniar@fe.um-surabaya.ac.id received: 28 january 2022 accepted: 16 february 2022 published: 1 june 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 2, 2022, pp. 9 13 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction for several months, 88.1 percent of indonesian internet users used e-commerce platforms to buy things in a variety of methods. according to the results of the we are social study conducted in april 2021, this proportion is the highest in the world. internet shopping now offers more information and possibilities to compare items with more options and lower prices, convenience, ease of ordering, speed while shopping, selecting, and paying for desired products online (syahdan, 2021). data release from tempo, in the first quarter of 2020, shopee ranked first in a statistical study on the top ten most frequented ecommerce data in indonesia, with 71.53 million clicks per month (nurhadi, 2021). with 69.8 million monthly clicks in the first quarter of 2020, tokopedia is in second place. bukalapak is in third place with 37.63 million monthly clicks, followed by lazada indonesia with 24.4 million monthly clicks and blibli with 17.6 million monthly clicks. during the first quarter of 2020, jd.id, orami, bhinneka, sociolla, and zalora indonesia received less than 7 million monthly clicks. according to populix research, 18-21 year olds had the highest level of online shopping intensity, with 35% of the vote, followed by 2228 year olds with 33% of the vote. the 29-38 year old age group is in third place, with an 18% increase(populix, 2021). according to mckinsey & company, 24% of generation z customers in indonesia are premium shopaholics who spend their time comparing products or services in order to make spontaneous or unexpected purchases (venia et al., 2021). generation z is the generation after millennials, it includes anyone born after 1997. the results of the 2020 badan pusat statistik show that generation z and millennials make up the majority of indonesia's population. generation z accounts for 27.94 percent of the population, whereas the millennial generation accounts for 25.87 percent. according to wibawanto, generation z has the following characteristics: (1) intense social interaction via social media; (2) fluent in technology; (3) expressive, with a tendency to be tolerant of cultural differences and deeply concerned about the environment; and (4) the ability to quickly switch from one thought/work to the next (ramadhan & simanjuntak, 2018). it's impossible to talk about generation z traits without mentioning their online habits. they are the only generation to have grown up entirely in a technological environment. they are at ease with technology, if not completely gen z’s gender, hedonic shopping motives and impulse buying asyidatur rosmaniar1, anang firmansyah2, didin fatihudin3, m. faisal4 1,2,3,4 faculty of economics and business, universitas muhammadiyah surabaya, indonesia abstract the usage of cheap internet access via cell phones, along with the fact that gen z is growing up in the era of globalization, has resulted in a generation that is completely reliant on the internet. the goal of this study was to see how hedonic shopping motives and gender influenced gen z's impulse internet purchases. the participants in this study were management study program students who made online purchases through shopee. the participants in this study are management students between the ages of 18 and 26. purposive sampling was utilized as the sample approach. multiple linear regression with dummy variables was used to determine the effect of hedonic shopping motives and gender on impulse buying at shopee. the t test and the test of the coefficient of determination are used to test hypotheses. multiple linear regression results with dummy variables show that the results indicating that the hedonic shopping motives have a favorable and significant effect on impulse buying, whereas gender has no effect on impulse buying keywords gen z, gender, hedonic shopping motives, impulse buying, dummy variable jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 9-13 reliant on it. generation z is always online; they shop, participate, and gather information via the internet. because they couldn't resist the temptation of the desired products, the majority of generation z shopped for fashion products without planning, spontaneously, and without careful consideration, ignoring the consequences, and because they couldn't resist the temptation of the desired products, they made rash purchases (purnomo & ramadania, 2021). verhagen and dolen stated that customers' hasty purchase behavior is frequently observed when they're going to do some online shopping. when compared to offline buying, customers regard online shopping to be more convenient. it is primarily due to the benefits they obtain from online buying. easy access to things, ease of purchase, and a lack of social interaction. there are a few of them (for example, pressure)(james et al., 2019). online impulse buying is influenced by a number of factors, involving situational variables such time and money availability, promotions, and credit card ownership, as well as person-related characteristics like gender, hedonic shopping motivation, internet addiction, and materialism (aqmarina & wahyuni, 2019). several studies reveal that impulsive buying can satisfy several hedonic needs, namely shopping for pleasure, surprise, and excitement. impulse buyers show feelings of being entertained, happy, and enthusiastic (ranasari, 2021). utami stated that consumers employ hedonic shopping motivation to make purchases that are made consciously or unconsciously (reflexes) and are usually motivated by subjective or emotional views to find pleasure (venia et al., 2021). according to erni and citra (brabo et al., 2021), consumers' hedonic purchasing motivation is the desire to shop for pleasure rather than the advantages of the object purchased. most consumers that are emotionally stimulated have a hedonic buying experience. mowen & minor (ariani et al., 2019) said hedonic consumer refers to the consumer's need to use products and services in creating fantasies, feeling new sensations and getting emotional impulses. purnomo conducted research and discovered that the majority of generation z frequently shopped for fashion products without planning, spontaneously, or carefully considering the consequences, and because they couldn't resist the temptation of the desired products, resulting in reckless purchases. the survey results also revealed that 93.3 percent of the 300 people who took part in the study bought fashion items without planning. this demonstrates that when it came to fashion purchases, generation z had the ability to make impulse purchases. research conducted by chandra and purnami (aqmarina & wahyuni, 2019) which said that gender had an influence on online impulse buying, where men more often engaged in impulse buying online than women because women are more careful about their purchasing plans contrary to research conducted by mulyono which says that women tend to shop on impulse compared to men. (ariani et al., 2019) said that women tend to do more online shopping compared to men, with a percentage of 51% and men with as much as 49%. the findings reveal by (wang et al., 2021), in a rising country like china, distinct hedonic shopping incentives and gender play a key role in obsessive online shopping. research methods quantitative research methodologies were applied in the study. the sample approach utilized is a non-probability strategy, meaning purposive sampling, based on the aims defined as conclusive research. students from umsurabaya's faculty of economics and business management study program class of 2017–2019 who have completed unplanned purchases on the shopee indonesia platform at least once a month and are between the ages of 19 and 25 years old were utilized to determine the sample. questionnaires were distributed to students in the university of muhammadiyah surabaya's faculty of economics and business management study program, with up to 100 respondents responding online via google docs. the analytical tool used to determine the effect of hedonic shopping motives on impulse online buying is multiple linier regression with gender as dummy variables. figure 1. model test results and discussion a statistical package for social science (spss) version 26 was used to analyze the data. the characteristics used in this study were gender, length of time using the shopee application, age, employment status, income/ gender (dummy variabel) hedonic shopping motives impulse buying jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 9-13 pocket money per month, spending per month, and marital status. according to table 1, the majority of the respondents in this study were women, accounting for 100 people or 71 percent, using the shopee apps 1-3 years with price of item purchased less than 750.000 rupiahs. table 1. profile of respondents profile description percentage gender male 29% female 71% using the shopee app less than 1 year 20% 1-3 years 66% 4-6 years 10% more than 6 years 4% occupations already working 62% not working yet 38% salary/month less than 1.500.000 rupiahs 40% 1.500.000-3.000.000 rupiahs 37% more than 3.000.000 rupiahs 23% price of item purchased less than 750.000 rupiah 49% 750.000-1.500.000 rupiahs 38% more than 1.500.000 rupiahs 13% marital status married 91% single 9% standard regression was conducted to examine the influence of gender and six broad categories of hedonic shopping motivations namely 1) adventure, 2) gratification, 3) role, 4) value, 5) social and 6) ide shopping on consumers’ impulse buying behavior. the results of the validity test and reliability test of the hedonic shopping motives and impulse buying variables show that all the hedonic shopping motives and impulse buying variable data instruments used are valid and reliable, and the classical assumption test consists of multicollinearity test, heteroscedasticity test, and normality test. which is carried out is free from classical assumptions and is feasible to perform multiple linear regression analysis. here are the results of multiple linear regression using dummy variable analysis: from the test results above, the regression equation is obtained as follows: y = 1,584 + 0,562x1 note: y = impulse buying x1= hedonic shopping motives α= constant β1= estimated coefficient gender variables were not included in the equation because, in this study, gender did not significantly affect impulse buying online. the interpretation of the regression model is: constant (α): without being influenced by the hedonic shopping motives, and gender variables, the impulse buying variable is equal to 1.584. coefficient (𝛽1): if the hedonic shopping motives (x1) increase with the assumption that other variables have a fixed value, then the impulse buying variable (y) will increase. hypothesis testing using the coefficient of determination shows that the value of the adjusted r square is 0.121 (12.1%), which means that the variables hedonic shopping motives (x1) and gender (d1) have an influence of 12.1% on impulse buying consumers of shopee apps. the remaining 77.9% were explained by other variables. it means this model was not too powerful to explain the relationship between hedonic shopping motives, gender, and impulse online buying. gender does not affect impulse buying, meaning that there is no difference between men and women when making impulse buying decisions. the findings of this study are also in line with the results of [13], which indicated that both males and females have compulsive buying inclinations. koran et al., for example, reported approximately identical percentages of males (5.5%) and females (6.0%) with obsessive buying, validating foundational studies that found females score slightly jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 9-13 higher in compulsive buying than men and have higher avoidance coping strategies. contrary to a survey conducted by opera software in 2017, indonesian women are more interested in purchasing online or finding things on the internet than males. according to the report, women are more interested in purchasing online or finding items on ecommerce than men, who are just 34% interested. (brabo et al., 2021). women have been characterized as the primary online shoppers in some studies, but other research reveals that men prefer to shop online using technology-mediated channels. technology is infused with masculinity: "computers represent power, and power in our world must be the domain of men." furthermore, since previous research has shown that males and females have different concerns about online shopping and exhibit different online shopping behaviors, examining gender differences in various hedonic shopping motivations in relation to compulsive online buying would be insightful. females, according to reports by bighiu et al., mueller, mitchell et al., are more prone to obsessive shopping [12]. the study found that in a rising country like china, distinct hedonic shopping incentives and gender play a key role in obsessive internet shopping. meanwhile, research stated that hedonic shopping motives influence impulse buying in gen 'z. generation-z can be classified as a "tech addict" as they have a thorough comprehension of internet technology and actively use it for leisure and socializing. they be using the internet to get information they require and are frequently online 24 hours a day, seven days a week. generation z is addicted to technology and social media, and they want to receive everything quickly and conveniently. they get information from the internet and share it frequently. they are also strong at multitasking, dislike working in groups, and are technologically proficient (simangunsong, 2018). christina (rahma & septrizola, 2019) claims that "someone will enjoy shopping because it brings them pleasure and makes them feel like they are doing something fascinating. as a result, because it encompasses emotional responses, physical pleasures, dreams, and aesthetic considerations, this motivation is based on subjective or emotional reasoning”. the high hedonic shopping value of generation z, as well as its major impact on impulse buying, necessitates the implementation of the appropriate strategy. some tactics that can be used include providing stores and concepts that can suit the needs for entertainment, interesting experiences, a sense of adventure, and the comfort of meeting/gathering and shopping with friends. when it comes to taking advantage of or increasing sales chances from generation z's impulse buying, which is fueled by hedonic shopping value, unique fashion products that adapt to trends should be a top priority for business owners (purnomo & ramadania, 2021). conclusion generation z's hedonistic attitude toward shopping as an adventure, shopping to keep up with trends, shopping to find deals and discounts, engaging and exchanging information, shopping to shift moods, and shopping for others is manifested through driving impulse buying behavior or accidental e-commerce transactions. in gender, there were no different on impulse buying between men and women. in terms of age, male students did not differ substantially from female students. references aqmarina, a., & wahyuni, z. i. w. (2019). pengaruh motivasi hedonic shopping dan adiksi internet terhadap online impulse buying. tazkiya: journal of psychology, 6(2), 153– 166. https://doi.org/10.15408/tazkiya.v6i2.10990 ariani, i., susandy, g., & apriandi, d. w. (2019). the effect of promotion and hedonic shopping motivation on customer impluse buying on zalora online shopping sites. journal of accounting and business issues (jabi), 1(1), 15–21. https://ojs.stiesa.ac.id/index.php/jabi%0ath e brabo, n. a., sari, n. e., iswati, h., & meidiyustiani, r. (2021). the influence of price , promotion and positive emotions on online impulse buying with hedonic shopping motivation as an intervening variable ( study : women fashion product in indonesia ). 11358– 11368. james, j., p, p., & b, l. (2019). factors affecting impulsive buying behavior of online shoppers across x , y & z generations. international journal of management, technology and engineering, ix(1), 1638– 1650. nurhadi. (2021, november). siapa e-commerce teratas di indonesia 2021 untuk belanja online? https://bisnis.tempo.co populix. (2021). menelusuri lebih jauh tren belanja online masyarakat indonesia. https://www.info.populix.co/post/tren jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 9-13 belanja-online-masyarakat-indonesia purnomo, b. b., & ramadania. (2021). the effect of hedonic shopping value on the impulse buying of fashion products of generation z. 16(1). rahma, w., & septrizola, w. (2019). pengaruh hedonic shopping motivation dan shopping lifestyle terhadap e-impulse buying mahasiswa universitas negeri padang pada lazada.co.id. jurnal kajian manajemen dan wirausaha, 1, 1. ejournal.unp.ac.id ramadhan, a. f., & simanjuntak, m. (2018). perilaku pembelian hedonis generasi z: promosi pemasaran, kelompok acuan, dan konsep diri. jurnal ilmu keluarga dan konsumen, 11(3), 243–254. https://doi.org/10.24156/jikk.2018.11.3.243 ranasari, d. (2021). buletin riset psikologi dan kesehatan mental pengaruh hedonic shopping motivations terhadap impulsive buying pada konsumen produk fashion. buletin riset psikologi dan kesehatan mental, 1(1), 460–469. simangunsong, e. (2018). generation-z buying behaviour in indonesia: opportunities for retail businesses. mix: jurnal ilmiah manajemen, 8(2), 243. https://doi.org/10.22441/mix.2018.v8i2.004 syahdan, r. (2021). factors influencing gen-z customer perception online shopping in indonesia. international journal of communication and society, 3(2), 99–111. https://pubs2.ascee.org/index.php/ijcs/article /view/316 venia, m., marzuki, f., & yuliniar. (2021). analisis faktor yang mempengaruhi perilaku impulse buying (studi kasus pada generasi z pengguna e-commerce ). korelasi riset nasional ekonomi, manajemen, dan akuntansi, 2, 929–941. wang, x., ali, f., tauni, m. z., zhang, q., & ahsan, t. (2021). effects of hedonic shopping motivations and gender differences on compulsive online buyers. journal of marketing theory and practice, 00(00), 1–16. https://doi.org/10.1080/10696679.2021.1894 949 correspondence to : meponzie@gmail.com received: 23 december 2021 accepted: 1 march 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 33 40 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction indonesia has two types in its banking system namely conventional and islamic banks. within each type lies two further catgeories of banks, commercial and rural banks. the majority of market share is still dominated by commercial banks whether it be conventional or islamic commercial banks. rural conventional and islamic banks share a small portion of banking industry. in light of conventional banking system, loan and third party fund still reside mostly within commercial banks. the figure below shows the comparation between commercial and rural banks in terms of the funds deposited. figure 1 third party fund source: ojk, 2021 the above figures show the amount of third party fund in natural logarithm form. there has been a very steady increase of deposits in commercial and rural banks. this shows than each of the type of the bank has its own market segment that is firmly established. in 2016, the amount of third party fund is rp. 4,826 trillion (36.12 in natural logarithmic term), while rural banks house rp. 75 trillion of third party fund (31.96 in natural logarithmic term). over the course of five years, commercial banks collects rp. 6,665 trillion deposits and rural banks have around rp. 102 trillion third party fund. customerwise, rural banks target lower income segment. this is in contrast to commercial banks that focus more on higher income segment, although it also serves lower income market. commercial banks focus more in urban areas, although some commercial banks also operate on rural areas. in light of supervision by central banks, profitability serves an important function. it is the early warning signal of financial distress that might be imminent on a bank. whenever a bank experience a loss, regulator will conduct assessment on the likelihood of bank failure and whether the failure could result in materialized systemic risk (van oordt & zhou, 2019). therefore, it is pivotal to investigate 28 30 32 34 36 38 2016 2017 2018 2019 2020 third party fund commercial banks rural banks internal and external determinants of rural banks’ profitability: a time-series analysis regi muzio ponziani sekolah tinggi ilmu ekonomi trisakti, jurusan akuntansi, indonesia abstract this research aims to investigate how internal and external factor influence the rate of profitability of rural banks in indonesia. internal factors are factors within the bank itself, namely core capital, loan to deposit ratio, and nonperforming loan ratio. external factors are macroeconomics variables uncontrollable to the rural banks, such as inflation and interest rate. vecm test proved the existence of cointegration function. any deviation from last period will be adjusted at the rate of 8.863%. in the long-run, core capital and inflation affect rural banks’ performance. impulse response function indicated that any shocks that occurred to core capital, inflation, loan to deposit ratio and nonperforming loan had the inhibiting effect on rural banks’ performance. on the other hand, interest rate was the only variable that provided positive stimulus on rural banks’ performance. this showed us that rural banks should have improved risk and capital management practice so that they will not have to depend on the interest rate to have a better performance. keywords profitability, cointegration, impulse response function, vector error correction model jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 33-40 predictors of banks profitability. the figure below provides the visual inspection of peofitability compatrison among rural and commercial banks in indonesia. figure 2 banks profitability source: ojk, 2021 the above figure shows that for the past 5 years, profitability rate has a declining trend for rural and commercial banks. this certainly raises concerns for regulator whether the banking industry is facing imminent distress. therefore, regulator will take steps to ensure that banks will remain healthy and sound and can function well in the economy. the purpose of this research is to investigate how internal (microeconomic) and external (macroeconomic) factors contribute to the profitability of rural banks. many research has been conducted in this realm. however, most research focus on commercial banks (fahrul & rusliati, 2016; herdhayinta & supriyono, 2019; octavio & soesetio, 2019; serly, 2021; sofie, manurung, usman, & trisakti, 2020; suryanto, 2017; usman, 2019; wardhani, 2020; widyastuti, dedi, & zulaihati, 2017; wulandari, anggraeni, & andati, 2016). some researches investigated the profitability of islamic rural banks (sanusi, 2019; warninda & hosen, 2015; widarjono, mifrahi, & perdana, 2020). one research in particular focused on conventional rural banks’ profitability (purnamawati, 2014). the marked difference between purnamawati (2014) and this reseach is that this research empoyed impulse response function (irf) generated by vector error correction model (vecm) as the intrument of analysis, while purnamawati (2014) use linear regression. irf allows for further analysis on whether a shock to the system will generate a negative or positive response from the endogenous variable and the periods in which the response persists. fahrul & rusliati (2016) investigated the profitability of commercial banks. they found that npl negatively affect profitability and ldr and interest rate positively affect profitability. however, no significant influence derived from net interest margin ratio. wulandari, anggraeni, & andati (2016) divided profitability into two proxies, roa and roe, and started examining the influence of certain factors on each of the ratio. roa was later ound out to be affected by npl, bopo, and gdp. roe was affected by more factors, i.e loan to micro and smes, bopo, inflation, gdp, and interest rate. here we can see that the researchers differentiated between microand macroeconomics factors. macroeconomics factors are inflation, gdp, and interest rate. those are factors uncontrollable to the banks. suryanto (2017) focused only on major banks in indonesia as his main sample. panel regression was the methodology employed to find what factors affect the roa. he found that loan to asset ratio and npl directly affect roa. while car had no influence. widyastuti, dedi, & zulaihati (2017) specifically explored the influence of internal determinants. ratios of nim, ldr, operating efficiency, npl and car were hypothesized to influence profitability. contrary to suryanto (2017), npl and car did not have influence on profitability. however, other variables affected profitability. similar to wulandari, anggraeni, & andati (2016), herdhayinta & supriyono (2019) also represented profitability by roa and roe. they further divided their independent variables into microand macroeconomics factors. macroeconomic variables were inflation, interest rate, and money supply. only inflation and interest rate that significanly influenced roa and roe. the microeconomic factors were car, npl, ldr, operating efficiency, nim, assets, and capital. all these variables affected both profitability ratios. octavio & soesetio (2019) included human capital as one of the variable that could influence profitability. they later found out that human capital indeed contributed to profitability along with total assets, loan loss provision, and gdp. usman (2019) did a cross country comparison of banking profitability. the samples extended across two asean countries. the independent variables used are those of capital ratios and ownership ratios. he found that none of ldr, der, and car that had effects on banking profitability in indonesia 0 0,005 0,01 0,015 0,02 0,025 0,03 2017 2018 2019 2020 2021 profitability rural banks commercial banks jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 33-40 and the phillipines. however, ownerships did influence profitability (managerial and institutional) in both countries. he posited that although banking environments are different, some fixed effects remained. wardhani (2020) used panel regression to investigate factors affecting profitability. ldr, interest rate, and inflation posited random effect on profitability. interestingly, intellectual capital had no significant effect on profitability. serly (2021) presented roa, roe, and nim as proxies for profitability. she found that npl really influenced all proxies of profitability. the same case also applies for operating efficiency that negatively affected profitability. prasanto et al (2020) used vecm method to research about banks profitability. they found cointegrating relationship in the model. this means a longrun realtionship exists in which profitability was affected by interest rate and inflation. this embodies cointegration among interest rate, inflation and profitability. they later found that shocks imminent to the independent varuables do not affect profitability. the sample used in prasanto (2020) was stateowned commercial banks. gaps still exist in which time-series model implemented on rural banks in indonesia has not been applied. research using rural banks focus more on islamic rural banks. therefore this research endeavor to fill in the gap in the literature by investigating profitability of conventional rural banks using vecm to arrive at irf analysis. research methods the variables involved in this research are roa, core capital (cap), inflation (inf), interest rate (int), loan to deposit ratio (ldr), and nonperforming loans ratio (npl). core capital will be the natural logarithm of the rural banks’ core capital (tier 1 capital). the research period extend from january 2010 until may 2021. the main analysis for this research is impulse response function (irf). irf can only be generated after vector error correction model (vecm) is implemented. before arriving at vecm, firstly stationerity test should be conducted. this step will allowus to see whether the data is stationary at level or at 1st difference. subsequently, we have to test for lag length criteria. this is because the current state of variable could be affected by previous period state. subsequent to lag length criteria, we conduct johansen cointegration test to investigate whether cointegrating relationship exists within the model, followed by vecm estimation. the financial step would be irf analysis. however, before irf, variance decomposition analysis will be presented to provide ideas about the variance conditions over time. results and discussion time-series econometrics require all variables included in the model to be stationary to prevent spurious regression from happening. stationarity test is also called unit root test. the result of stationarity test is as follows: tabel 1. stationarity test using augmented dickey-fuller (adf) and phillips-ferron (pf) variable level 1st difference adf pf adf pf roa 0.905 0.916 0.000 0.000 cap 0.004 0.569 0.016 0.000 inf 0.891 0.421 0.000 0.000 int 0.163 0.308 0.039 0.000 ldr 0.678 0.042 0.116 0.000 npl 0.093 0.691 0.537 0.000 the above table shows that at level form, only cap variable is stationary (bold indicates nonstationary). however, the stationarity for cap is not absolut. only adf supports the notion of stationarity, whereas pf rejects it. all other variables are not stationary at level. the corresponding p-value is greater than 0.05. according to adf, npl is stationary at 10% level. based on this result, the variables should be differenced once to achieve stationarity. after differencing the variables, pf test supports the stationarity of the variables. adf states that all the variables are stationary except for ldr and npl. therefore, we can be certain that first difference is enough to proceed to the next test, i.e. lag length criteria. lag length criteria will provide the lag required to investigate further with vecm. the result of lag length criteria is as follows: tabel 2. lag length criteria lag aic sc hq 0 -33.51571 -33.37995 -33.46056 1 -44.11826 -43.16795* -43.73220* 2 -44.32303 -42.55816 -43.60606 3 -44.25760 -41.67818 -43.20972 4 -44.32541 -40.93143 -42.94661 5 -44.00484 -39.79631 -42.29514 6 -43.82292 -38.79984 -41.78231 7 -43.61607 -37.77843 -41.24455 8 -43.40201 -36.74982 -40.69958 9 -43.49713 -36.03038 -40.46378 10 -43.75900 -35.47770 -40.39474 11 -43.95762 -34.86176 -40.26245 12 -44.77120* -34.86079 -40.74512 jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 33-40 the above table presents the result of lag lenth determination based on three methods, akaike information criterion (aic), schwarz criterion (sc), and hannan quinn (hq). aic determines that the vecm model should contain 12 lags. this means that any independent variables at lag 12 can still influence the current state of roa. (for example inft-12 can influence roat). however, sc and hq conted that lag length 1 is enough for the vecm model. therefore, this research will use lag length 1 to have a more parsimonious model. after determining the lag lenth, the nnext step would be cointegration analysis. below is the result of johansen cointegration test. tabel 3. johansen cointegration test the above table shows that there exists 1 cointegrating relationship. the test shows that the roa should occupy the position of a dependent variable. this is exactly what we concur. profitability should be the target variable that will be affected by other independent variables. the existing cointegrating relationship shows that there is a long-run effect from other variables. the effect is contrary to the coeeficient shown in the table because the cointegration relatioship have negative coefficient. the cointegration model is: roat = -0.08863𝛿t-1 (0.01801capt-1 + 0.35220 inft-1 – 0.22789 intt-1 + 0.064538ldrt-1 + 0.526624nplt-1) in the above model, 𝛿t-1 indicates the error correction term (ect). this means that any deviation from last period, will be corrected 8.863% in the current period. this is a rather slow adjustment process. so rural banking industry in indonesia has a very slow recovery process should a shock be imposed on it. therefore, direct intervention from central bank is required to bring stability to the rural banking industry. in the long run, cap has negative effect on profitability. this shows that rural banks still lack in the management of capital to provide for profits. human capital investment must be implemented so that the rural banks can better manage and allocate its capital to profitable sector. inflation also affects profitability negatively. this shows the vulnerability of the rural banks to the bad economic condition, although it will not happen instantly (in one period). interest rate can increase profitability in the long run. increase in interest rate will generate more interest revenue to the rural banks. jence, the monetary policy take by central banks will affect the performance of rural banks. ldr affects profitability negatively. in similar vein to cap, this indicates poor risk management within the rural banks. the credit officer and leaders of rural banks should be equipped with sound risk management knowledge, so that they can prevent credit risk from materializing. lastly, npl renders profitability worse. npl is a direct charge to the income recorded by rural banks. overall, the npl level is a reflection of risk management technique of the rural banks. regulators should facilitate improvement in risk management practive of rural banks. the table below shows the result of vecm: roa cap inf int ldr npl 1 0.0180 0.352 -0.227 0.064 0.526 (0.002) (0.078) (0.100) (0.039) (0.133) cointegration coefficient is -0.08863 jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 33-40 tabel 4. vecm result d(roa) d(cap) d(inf) d(int) d(ldr) d(npl) d(roa(-1)) -0.364151* -0.313118 0.223129 0.031328 0.663130 -0.063423 (0.07494) (1.87219) (0.23875) (0.18952) (0.60178) (0.12092) [-4.85923] [-0.16725] [ 0.93456] [ 0.16530] [ 1.10196] [-0.52451] d(cap(-1)) 0.001689 -0.403638* -0.007651 -0.000815 0.060324 0.005167 (0.00379) (0.09477) (0.01209) (0.00959) (0.03046) (0.00612) [ 0.44518] [-4.25915] [-0.63305] [-0.08499] [ 1.98033] [ 0.84423] d(inf(-1)) 0.006130 0.057821 0.361138* 0.041739 0.058186 0.019354 (0.02668) (0.66641) (0.08499) (0.06746) (0.21420) (0.04304) [ 0.22979] [ 0.08677] [ 4.24942] [ 0.61873] [ 0.27164] [ 0.44965] d(int(-1)) 0.006278 -0.027574 0.129294 -0.303073* 0.010359 0.034773 (0.03322) (0.82988) (0.10583) (0.08401) (0.26675) (0.05360) [ 0.18899] [-0.03323] [ 1.22169] [-3.60772] [ 0.03883] [ 0.64876] d(ldr(-1)) 0.027600 -0.831591 -0.012378 0.017352 0.069415 0.020936 (0.01267) (0.31653) (0.04037) (0.03204) (0.10174) (0.02044) [ 2.17834] [-2.62718] [-0.30664] [ 0.54154] [ 0.68226] [ 1.02406] d(npl(-1)) -0.139841 -4.551964* 0.251812 -0.058677 1.283044 -0.163477 (0.06148) (1.53605) (0.19589) (0.15549) (0.49373) (0.09921) [-2.27440] [-2.96343] [ 1.28550] [-0.37737] [ 2.59868] [-1.64781] c -0.000230 0.014120 4.47e-05 -0.000321 -0.000365 -2.08e-05 (0.00015) (0.00366) (0.00047) (0.00037) (0.00118) (0.00024) [-1.56676] [ 3.85630] [ 0.09583] [-0.86602] [-0.30981] [-0.08780] the above table shows the short-run relationship among variables. overall the relationship is more of an autoregressive nature. we can see that previous period state is a good predictor of the current period state. roa at previous period determines the value of roa at current period. the same applies to cap, inf, and int. however the previous period npl affects the current period cap. if npl is high in the last period, then cap will be lower in the next period. as indicated by the table the influence of last period npl to current period cap is positive. so the bad effect of npl will not be felt in the same period, but instead it will be felt in the next period. this shows that rural banks are vulnerable to nonperforming loan. any nonperforming loan will make capital deteriorates. therefore, sound risk management practice is urgently needed by the rural banks. as an additional analysis, vdc is performed next. the figure below shows the result of vdc: jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 33-40 figure 3 variance decomposition analysis source: processed data, 2021 the figure above shows how the variance of roa is explained by the other variabels over time. the maximum time shown in the figure is 20 periods. in the time 1, almost 100% of roa variance can only be explained by the autoregressive components (the roa itself). however as time progresses, other variables have more roles in explaining the variance of roa. this means the role of previous period roa will become smaller overtime. the variable cap has the least amounts of roa variance explained over period. only about 34% of roa variance can be explained by capital. inf, int, and npl have moderate effect on explaining roa variance. they strated small, but at the end of the period around 10-15% of roa variance can be explained by variance in inf, int, and npl, each. this shows that at the long run, inf, int, and npl will have most effect on roa compared to other variables. inf and int are two macroeconomic variables, uncontrollable by the rural banks. therefore rural banks can only anticipated the effect of both variables on profitability. system should be ready in place to mitigate the effect of macroeconomic conditions. npl is a microeconomic factor. it is controllable to the rural banks. again, this shows npl has significant effect on profitability and there is a pressing need for rural banks to have good risk management practice. ldr, just like cap, can explain modest variance of roa. the following figure shows the result of irf: 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 variance decomposition analysis roa cap inf int ldr npl jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 33-40 figure 4. irf source: processed data, 2021 the figure above shows the irf results. the first graph on the left, shows how roa reacts whenever a shock happens to cap, hence the stimulus. whenever there is a shock on the cap, the roa will react negatively. this means there is a declining trend on the roa. this proves that cap has an inhibiting effect on the roa. the negative effect will be felt instatntly from the period 1. until period 20, roa will always decline. the stabillity will be achieved in the period 5 onwards with little turbulence. therefore, we can expect declining profitability should a shock happen to capital. the second graph shows the stimulus given by inf to roa. the roa will respond negatively. the response is very drastic in the first period to the 6th period. shock that happens to inf will cause a deep decline in roa. the macroeconomic condition will affect profitability. the third graph shows that when a shock happens to int, roa will react positively. we can see that rural banks rely their profitability on the interest rate. the higher the interest rate, the higher rural banks profitability. therefore, interest rate targetted by central banks as part of its monetary policy will determine the level of rural banks’ profitability. the 4th graph is the graph of roa’s response on stimulus given by ldr. ldr does not induce bad negative influence on roa although the response lies in the negative area. until the period 20th, the response is just minimal below the 0 level. the last graph shows that npl will attract negative response from roa. any shock imminent that happens on npl will lower the profitability of the rural banks. in the long-run, the response remain negative. in the short-run, the negative response can be seen straight from period 1. this showcases the sensitivity of profitability tot the nonperforming loans. conclusion the results of the research shows that all the variables have long-run effect on rural banks proftability. microeconomic variable, capital and npl, have inhibiting effect on banks profitability. bad capital management and risk management practice will cause a decline in roa. this shows how sensitive the profitability to the miecroeconomic condition. in regard to this finding, regulator and owner of rural banks should ensure that rural banks management is equipped with good capital management and risk management knowledge. competence enhancement programs should be conducted so that the inhibiting effects of capital and nonperforming loan can be mitigated. ongoing supervision should also be committed by regulators to make sure rural banks carry out good capital management and risk management practice. on the other hand, macroeconomic factors (inflation and interest rate) affect rural banks profitability. inflation will affect profitability negatively, but interest rate positively. inflation is a parameter for bad economic condition. whenever indonesian economy is not very good, rural banks tend to have a declining performance. for the moment, they cannot avoid the effect of inflation. rural banks should have a system ready to anticipate bad ecoomic condition. loans should be allocated to productive smes that can withstand bad economic condition. lastly, interest rate is still the driving factor behind rural banks profitability. lacks of fee-based revenue resources force rural banks to depend on the level of interest rate targetted by central bank. rural banks should have the capability to read the monetary policy taken by central bank so that it can prepare whenever the interest rate is not favorable. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 33-40 references fahrul, m., & rusliati, e. 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(2016). modeling the profitability of commercial banks in indonesia. economic journal of emerging markets, 8(2). https://doi.org/10.20885/ejem.vol8.iss2. art3 journal of accounting, management, and economics vol. 19, no. 2, 2017, pp. 35-46 published by faculty of economics and business universitas jenderal soedirman published online on july 11, 2017 in http://jos.unsoed.ac.id/index.php/jame  correspondence to : widyatama university, indonesia. e-mail: annisa.lisdayanti@widyatama.ac.id received: may 17, 2017 revised: may 31, 2017 accepted: june 14, 2017 introduction the lifestyle of modern society is increasingly changing. this change is due to the economic and cultural globalization that ultimately affects homogeneous culture imaging which leads to uniformity of taste, consumption, lifestyle, value, identity, and individual interest. the culture of drinking milk was indirectly introduced during the dutch colonial period to indonesia. however, at that time we were as a colonized nation, only the colonial nation enjoyed the milk. in the early 1950s, prof. poorwo sudarmo (indonesian nutrition father) spawned empat sehat lima sempurna (four health five health) by placing milk in the last order. because there is word “perfect”, then it seems as if milk is the perfect food of indonesian society every day. in 2011, the consumption of milk in the world reached 558,983,380 tons per year. if averaged, it means about 108 kg per person per year. here are the data of five (5) countries that are the largest milk consumers in each year. table 1. data of milk consumption per year (survey in 2011) country total consumption finland 361,19 kg/capita per year sweden 355,86 kg/capita per year netherlands 320,15 kg/capita per year switzerland 315,78 kg/capita per year montenegro 305,87 kg/capita per year source: http://nationalgeographic.co.id while in indonesia, the level of milk consumption is only 11.48 kg/capita per year. it is still very much lower than other countries in asia. the amount of milk consumption of indonesia is less than malaysia, india, singapore, thailand, vietnam, and the philippines. although far outweighed by thailand and india, milk and the influence of location, store atmosphere, price, and crm on consumer purchase decision at the milk bar bandung annisa lisdayanti business and management faculty, widyatama university, indonesia abstract the level of milk consumption in indonesia is only 11.48 kg/capita per year, this is still very much lower compared to other countries in asia. the amount of milk consumption of indonesia is less than malaysia, indian, singapore, thailand, vietnam, and philippines. bandung is an area rich in culinary. one of the culinary places in bandung is the milk bar. to improve the consumer purchase decision, so the strategy of location, store atmosphere implementation, crm implementation, and price implementation need to be considered well by the company. this research is descriptive and verificative, with sample of 115 consumers of the milk bar obtained by 3 times iteration calculations. the results showed that from the four independent variables studied, the results obtained that the location has a greater influence in improving purchase decision. and together obtained a value of 77.4% and the remaining 22.6% influenced by other variables not examined in this study. keywords location; store atmosphere; pricing; customer relationship management; purchase decision journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 35-46 36 milky product consumption in indonesia is increasing rapidly. indonesia is one of two countries in asia that has increased milk consumption by 5 to 7 percent per year. bandung city is a city that presents many places with a variety of foods and beverages, ranging from traditional and modern foods and drinks. bandung city is also one of the areas that have great potential in the development of restaurant and cafe industries, the following is the data of the potency of restaurants in bandung from 2010 to 2014. table 2. data of the potential of authorized restaurant and cafe in bandung (2010-2014) year number of restaurant and cafe 2010 458 2011 561 2012 572 2013 591 2014 627 source: department of culture and tourism of bandung city based on the data above, can be seen that bandung city is a region that is rich in culinary. from that number, it can be seen that from year to year the number of restaurants registered in department of tourism of bandung city is increasing, estimated for the following years will continue to increase, this is caused by the tourism of bandung city that is getting better, so that it can make a lot of tourists either foreign and domestic tourists who come to bandung, which makes this industry has a very good potential. tourism supporting facilities cannot be separated from the business of food and beverage or known as restaurant and/or bar business, restaurant and/or bar is one of the driving force of tourism to develop, as has been known that bandung city other than known as shopping city also known as culinary tour city. food and beverage business cannot be separated with tourism because in addition to being a tourist attraction, food and beverage business can also provide a huge advantage for the business people. the many competitors in the culinary field make the owners of restaurants and/or bars to further enhance the strength that exist in the company by providing something new and different from other competitors in order to attract the attention of consumers. the number of entrepreneurs who open new restaurants and/or bars makes the competition more intense. the milk bar formerly located in sultan agung street with the concept of the shop and is currently located in sultan tirtayasa street no. 27. this location change was done at the beginning of 2017 and changed the concept of the shop into a cafe. strategic location selection can determine the viability of the business. people are more likely to choose to make a purchase in a place that has a strategic location and easy to reach. according to kotler and keller (2015: 31), decisions regarding the location of services to be used involve consideration of how the delivery of services to customers and where it will take place. location is also important as the environment in which and how services will be delivered, part of the value, and benefits of the services. in addition to the strategic location, the milk bar seeks to provide a change of atmosphere in place with good service to its customers, such as ease of service, speed in service, friendliness and courtesy of employees to customers, and well-groomed employees. the milk bar has also tried to provide an attractive store atmosphere with a strategic store location, good lighting, fragrant aroma of the room, a neat arrangement of goods, music that is pleasant to hear, and maintained cleanliness. according utami (2010: 279), store atmosphere is the design of the environment through visual communication, lighting, color, music, and perfume to design the emotional response and customer perception and to influence customer in buying goods. in running its business, in addition to the location and store atmosphere, other things that can affect consumers in buying is pricing policy provided by the company to customers. the price should be reviewed continuously in each period adjusted to people’s purchasing power. according to kotler (2009: 519), pricing is a decision on the prices to be followed by a certain time period (regarding market development). other things to note such as the relationship between management and consumer, therefore customer relationship management also participate in influencing consumer purchase decision. the milk bar needs to make a strategy to be able to journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 35-46 37 compete, not only based on the three things that have been discussed before, but also efforts in establishing relationship between consumer and company, strategy that is considered appropriate to compete is by providing a good experience coupled with a good relationship between consumer and company. according to lovelock and writz (2012: 386), customer relationship management signifies the whole process of what relationship that is maintained with customers that must be seen as a pioneer to build customer loyalty. the milk bar that was experiencing a strategic location change, implements a better store atmosphere, pricing, and customer relationship management in such a way as to have the goal of achieving its sales value target and attempting to influence consumer purchase decision to buy their products. however, although the milk bar bandung has set prices that are considered competitive, but the thing that happened was a decline in sales in three months. table 3. data of the milk bar sales (january march 2017) month sales january rp 25,720,000 february rp 26,128,000 march rp 19,328,000 source: the milk bar (2017) based on the above table, the results of sales data from february to march 2011 period experienced a substantial decrease in income. this can happen due to declining consumer purchase decision. according to kotler and keller (2016: 240), purchase decision is the consumer’s decision regarding preferences on the brands in the set of choices. in making purchase decision, there are many factors that can affect consumers. but in this research there are two factors that will be analyzed about its influence on purchasing decision that are store atmosphere and pricing policy. on the basis of the above, then the researcher was interested to conduct research with title “the influence of location, store atmosphere, price, and crm on consumer purchase decision at the milk bar bandung”. problem formulation based on the background of the research, furthermore can be identified problem of research that is location, store atmosphere, quality of product, and pricing is supporting factor to improve consumer purchase decision. it aims to see how consumer’s purchase decision on the milk bar bandung. therefore, this problem is viewed in terms of location, store atmosphere, customer relationship management, and pricing and its influence on purchase decision. based on the above identification, the author tried to identify the problem as follows: 1. how is the consumer’s response regarding location, store atmosphere, pricing, customer relationship management, and consumer purchase decision to the milk bar bandung? 2. how much influence of location, store atmosphere¸ pricing, and customer relationship management on consumer purchase decision at the milk bar bandung either partially or simultaneously? 3. which variable influences consumer purchase decision the most at the milk bar bandung? research objective based on the formulation of problems that have been disclosed before, the purpose of this research is: 1. to find out how consumers respond to the location, store atmosphere, pricing, customer relationship management, and consumer purchase decision at the milk bar bandung. 2. to find out how much the influence of location, store atmosphere¸ pricing, and customer relationship management on consumer purchase decision at the milk bar bandung either partially or simultaneously. 3. to find out which variable influences consumer purchase decision the most at the milk bar bandung. research function academic function this research is expected to add insight and knowledge as well as comparative and journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 35-46 38 developmental materials in the study of marketing management especially in relation to location, store atmosphere, customer relationship management, and pricing and its effect on purchase decision. practical function the results of this study are expected to provide input and ideas to the management of the milk bar bandung in developing and refining in improving consumer purchase decision, especially in the development of location, store atmosphere, customer relationship management, and pricing. literature review and hypotheses development location location is one factor that can influence consumer purchase decision. suwarman (2011: 280) suggested “location is a place of business that greatly affects the desire of a consumer to come and shop”. while, alma (2013: 105) stated that choosing the right business location will determine the success and failure of business in the future. based on the above, it can be concluded that location is where to operate a business to produce goods or services in which the selection of business location will determine the success of the business. location is considered by many things, some characteristics that can affect the sale of a store or cafe by levy (2007: 213) are: 1. traffic flow that is passing through the location and accessibility of that location. 2. characteristic of the location. 3. cost related to the location selection. these three characteristics have certain indicators that can describe the condition that can affect the sale of a store or cafe. indicators of the location characteristic can be seen in the table below: table 4. location characteristic traffic flow and accessibility prohibition/regulation road traffic ease of vehicular acces access to main road street congestion pedestrian path availability of public transport zoning signage restriction on tenant mix savety code restrictions location characteristic costs parking area access to enter and exit the shop or cafe visibility of store/cafe from the street access for delivery size of the store form condition of the building adjacent retailers rent cost maintenance cost tax advertising and promotion cost length of lease source: levy (2007:213) not all of the above characteristics can be applied to the milk bar research, this is due to the different characteristics in the industry. so, based on the above characteristics, can be made indicators as follows: 1. traffic flow and accessibility with indicator of strategic location/location accessibility and availability of public transport to reach the location. 2. location characteristic with indicator of parking area availability, access to and out of café, and visibility of cafe from street. store atmosphere store atmosphere definition by kotler (2016: 65) is the atmosphere of each store has a physical layout that makes it easy or difficult to go around in it. each store has a different appearance whether it is dirty, attractive, majestic, and gloomy. a store must establish a planned atmosphere that is in accordance with its target market and can attract consumers to buy in the store. journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 35-46 39 from the above definition, it can be concluded that store atmosphere is a physical characteristic that is important for every business, it serves as the creation of a comfortable atmosphere for consumers and make consumers want to linger within the company and indirectly stimulate consumers to make purchase. store atmosphere has elements that all affect the store atmosphere to be created, so as to create a comfortable shop atmosphere to stop by for long. according to berman and evan (2009: 545), elements of store atmosphere consist of exterior, general exterior, store layout, and interior display. price price is a flexible marketing mix element that can change at any time and place. price is not just the nominal value listed on the label, but price has many forms and functions such as rent, fee, wage, interest, tariff, storage fee, and salary. all are price to get goods and services. according to kotler and keller (2014: 67), price is one element of marketing mix that generates revenue, other elements generate costs. price is the easiest element in marketing program to be customize, product feature, channel, and even communication take a lot of time. according to stanton (rosvita, 2010: 24), there are four indicators that characterize the price, namely: (1) affordability of price, (2) price compliance with product quality, (3) price competitiveness, (4) price compliance with benefits. price will be important enough consideration for consumers in deciding the purchase. consumers will compare the price of the product of their choice and then evaluate the suitability of the price with the value of the product or service as well as the amount of money to be incurred. customer relationship management crm is an effort to manage relationship between company and customer to increase loyalty in the consumption of products produced by the company. according to lovelock and writz (2012: 386), customer relationship management signifies the whole process of what relationship that is maintained with customers that must be seen as a pioneer to build customer loyalty. lovelock and writz (2012: 386) stated that customer relationship management signifies the whole process of what relationship that is maintained with customers that must be seen as a pioneer to build repurchase intention so as to achieve customer loyalty to the company’s products. lukas (2001: 116) dividesd customer relationship management (crm) into 3 (three) main components, namely: (1) human, in this case is the employee as crm implementer. in human dimension, the key factors to be considered are organizational structure, role, and responsibility, corporate culture, and change management procedure and program as a whole. companies should not at all underestimate the importance of frontline staff involvement in building and running crm program. (2) process, system and procedure that help people to better recognize and maintain close customer relationship. (3) technology, introduced to further accelerate and optimize human factor and process in everyday crm activities. nevertheless, we still have to first look at the business structure, consumer behavior, employees, and work culture, because the technology cannot solve the problem just like that. be aware that technology is a support tool in completing crm added value. purchase decision according to kotler and keller (2016: 243), purchase decision is as follows: “purchase decision is the consumer’s decision regarding preference on the brand within the set of choices”. from the definition, it can be concluded that purchase decision is a process done by consumers to buy a product after having information and compare with other brand products. according to kotler (adriansyah, 2012: 36), the indicators of purchase decision are: (1) purpose of buying a product, (2) information processing to arrive at brand selection, (3) stability in a product, (4) giving recommendation to others, (5) repurchase. relationship between location and purchase decision purchase decision made by consumers can be caused due to the location factor. the growing people’s live pattern, the more factors in the consumer purchase decision. the existence of relationship between location and consumer purchase decision is journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 35-46 40 expressed by suwarman (2011: 280): “location is a place of business that greatly affects the desire of a consumer to come and shop”. based on the above definition, can be seen that there is a relationship between location and consumer purchase decision, which a good location selection will improve consumer purchase decision. relationship between store atmosphere and purchase decision consumers who shop for being driven by emotions, they have a mood that plays an important role in decision making. it affects when consumers are shopping and where they shop. their emotions also affect how they respond to the actual shopping environment. some retailers strive to create good emotions for consumers, even starting as consumers enter their stores. according to schiffman and kanuk (2007: 441): “research, suggest that a store’s image or atmosphere can effect shopper’s moods in turn, shoppers moods can influence how long they stay in (he store, as well as other behavior that retailer wish to encourage.” when consumers visit a store, layout of display shelves in the store will affect the behavior of visitors, making the alley or road will facilitate the flow of visitor traffic. placement of product items will also affect consumer behavior. relationship between pricing and purchase decision price is a flexible marketing mix element that can change at any time and place. price is the only element of the marketing mix that provides income for the company, while the other three elements cause costs. in order to succeed in marketing a good or service, every company must set its price appropriately. because, price is an important consideration for consumers who are making purchase decision. price is the value of an item declared by money (alma, 2013). this means the price is the amount of money spent by consumers to get the goods or services. relationship between customer relationship management and purchase decision the purpose of marketing is to influence consumers to buy goods or services offered by the company when they need it. according to swastha and handoko (2000: 11), there are factors influencing purchase decision, namely: (1) strategic location, (2) good service, (3) salesperson ability, (4) price level, (5) advertisement and promotion, and (6) classification of goods. strategic location will be chosen by consumers because it can reduce a lot of time, energy, and cost for consumers who make purchase. research hypothesis based on theoretical framework that has been proposed, it can be formulated research hypothesis as follows: hypothesis 1: location, store atmosphere, price, and crm have been considered good by consumers of the milk bar bandung. hypothesis 2: there is influence of location, store atmosphere, price, and crm on consumer purchase decision of the milk bar bandung either partially or simultaneously. research methods data analysis method used in this research is descriptive and verificative. descriptive research is a research whose main purpose is to describe something and usually characteristics or functions. researcher used descriptive research to achieve the first research objective until the third research objective that is to know how consumer responses regarding location, store atmosphere, price, crm, and consumer purchase decision on the milk bar bandung. while, verificative research is used to examine the relationship or influence of independent variables and dependent variable that is to know how much the influence of location (x1), store atmosphere (x2), price (x3), and crm (x4) in improving consumer purchase decision (y) on the milk bar bandung, either simultaneously or partially. to reinforce the above qualitative analysis, a quantitative/inferential analysis is needed, that is an analysis to test the hypothesis or know how much the influence of store atmosphere and price implementation in creating consumer purchase decision of the milk bar bandung. the research model used is regression with multiple linear regression formula is as follows: ɛ journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 35-46 41 figure 1. research paradigm while, in the determination of sample size that will be used for this research is calculated using iteration method. according to sitepu (1994: 108-110), the use of iteration method is in accordance with the analytical tool used in hypothesis testing, that is multiple regression analysis basically calculated from the correlation coefficient between variables. calculation used three times iteration calculations so that the minimum sample used in this research is 115 respondents. the sampling method used in this research is nonprobability sampling, in which each object in a homogeneous population has equal opportunity to be used as research sample. the sampling technique used is purposive sampling. as the name implies, the sample was taken with a specific purpose. someone or something was taken as a sample because the researcher assumed that the person had the necessary information in the research. the criteria specified for sampling in this study were consumers of the milk bar bandung. discussion in this section, the author will describe the results of research that have been obtained. the research data was collected by distributing questionnaires with statements regarding location, store atmosphere, pricing, customer relationship management, and purchase decision distributed to 115 consumers of the milk bar bandung. respondents’ response on location location variable consists of 2 indicators that are traffic flow and accessibility as well as location characteristic. based on the results of data processing, then obtained the results of recapitulation for each variable as follows: figure 2. recapitulation of respondents’ response on location (x1) source: processed primary data (2017) based on the graph above, it can be seen that from 2 (two) sub variables about location, which is considered to have the highest by consumers is location characteristic. this is related to the availability of parking space, access in and out of the cafe, and the visibility of the cafe to the street. while, the lowest value is location x1 store amosphere (x2) pricing (x3) crm (x4) consumer purchase decision (y) ε accessibility characteristic journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 35-46 42 traffic flow and accessibility, indicators for this sub variable is the ease of location coverage and availability to reach the location. ease and availability to reach the location become one of the important factors in the effort to attract consumers to visit, so it is necessary to pay close attention. respondents’ response on store atmosphere store atmosphere variable consists of 4 (four) indicators that are exterior, general interior, store layout, and interior display. based on the results of data processing, then obtained the results of recapitulation for each variable as follows: figure 3. recapitulation of respondents’ response on store atmosphere (x2) source: processed primary data (2017) based on the graph above, can be seen that from four (4) sub variables about store atmosphere, which considered to have the highest by the consumers is exterior in store atmosphere. this is related to the location that is considered strategic and easy to reach, the signage that looks clear and easy to see by consumers, the vehicle security parked around the location, and the entrance that aeases the in and out of consumers. while, the lowest value from store atmosphere is sub variable of interior display that includes image that is in accordance with the theme, toilet sign, and cashier that is clear and attracts attention. this assessment becomes a record for the future for the milk bar to be able to make the interior design more attractive so that this can make consumers more lingering and repeat order. while, the highest value is exterior design that must be maintained and improved because the nature that occurs in the consumers basically is changing as the times change and with this then the milk bar will be able to answer challenges in the future. respondents’ response on pricing location variable consists of 5 (five) indicators that are price affordability, price appropriateness with image, price competitiveness, price conformity with benefits, and discounts. based on the results of data processing, then obtained the results of recapitulation for each variable as follows: figure 4. recapitulation of respondents’ response on price (x3) source: processed primary data (2017) from the above data, it can be seen the average value of the five sub-variables of pricing made by the milk bar, it can be seen that the greatest value is in the price affordability. consumers have assumption that the price provided by the milk bar is affordable and the price is in line with the brand image of the milk bar itself. while, the lowest value of the price variable is price conformity with benefits. according to kotler and armstrong (2014: 345), price is the amount of money charged on a product or service or the sum of the value exchanged for the benefits of owning or using the product or service. these results indicate that consumers assume the price offered is still not in accordance with the benefits they felt. respondents’ response on customer relationship management customer relationship management variable consists of 3 (three) indicators that are people, process, and technology. based on the results of data processing, then obtained the results of recapitulation for each variable as follows: affordabi lity suitability compe titive conformity discount journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 35-46 43 figure 5. recapitulation of respondents’ response on crm (x4) source: processed primary data (2017) based on the graph above, can be seen that from three (3) indicators of customer relationship management, it can be seen that the indicators about technology has the highest value. the use of internet technology such as social media becomes one of the benefits for the milk bar bandung, utilizing technology as a promotion media that became one of the trends among young people today. however, the indicator of process has the lowest value, this is one of the things that should be considered by the management of the milk bar in the future. respondents’ response on purchase decision purchase decision variable consists of 6 (six) indicators that are product selection, brand selection, dealer selection, purchase amount, timing of visit, and payment method. based on the results of data processing, then obtained the results of recapitulation for each variable as follows: figure 6. recapitulation of respondents’ response on keputusan pembelian (y) source: processed primary data (2017) based on the above graph, it can be seen that the lowest value of the consumer purchase decision variable is in dealer selection, in this case, is the convenience of consumers in getting the milk bar products. this is because the product of the milk bar is still difficult to obtain by consumers because the milk bar itself still has no branch and also still do not have inter messaging service. while, the highest value is in the sub variable of payment method, this is because payments made by consumers can use the system of cash or debit. based on the results of data processing, the following is the explanation of the influence of each relationship in this study. table 5. correlations between variables x1 x2 x3 x4 y x1 0,546 0,658 0,759 0,809 x2 0,676 0,657 0,588 x3 0,768 x4 0,759 source: processed primary data (2017) location on consumer purchase decision the result of this research stated that location (x1) has positive and significant effect on purchase decision (y). with a relationship value of 0.809 then the interpretation of the amount of the relationship of both is quite strong. based on the value of the relationship, the value of the influence between location and purchase decision is 65.45%. store atmosphere on consumer purchase decision the result of this research stated that store atmosphere (x2) has positive and significant effect on purchase decision (y). with a relationship value of 0.588 then the interpretation of the amount of the relationship of both is quite strong. based on the value of the relationship, the value of the influence between store atmosphere and purchase decision is 34.57%. price implementation on consumer purchase decision the result of this research stated that pricing (x3) has positive and significant effect on purchase decision (y). with a relationship value of 0.768 then the interpretation of the amount of the relationship of both is quite strong. based product brand purchase time payment supplier journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 35-46 44 on the value of the relationship, the value of the influence between price and purchase decision is 58.98%. customer relationship management on consumer purchase decision table 6. model summary model r r square adjusted r square std. error of the estimate change statistics r square change f change df1 df2 sig. f change 1 .880a .774 .766 .29784 .774 94.403 4 110 .000 a. predictors: (constant), x4, x2, x1, x3 b. dependent variable: y source: processed primary data (2017) based on the result of data processing, can be known also the simultaneous influence between store atmosphere and price on consumer purchase decision of 0,774 with interpretation of strong relationship and influence between variables of 59.9%. by using the method of regression data processing, then obtained the following results: table 7. coefficients model unstandardized coefficients standardized coefficients t sig. correlations b std. error beta zeroorder partial part 1 (constant) .440 .312 1.411 .016 x1 .410 .067 .425 6.156 .000 .809 .506 .279 x2 .078 .119 .043 .654 .015 .588 .062 .030 x3 .336 .068 .354 4.973 .000 .768 .428 .225 x4 .212 .065 .243 3.250 .002 .759 .296 .147 a. dependent variable: y source: processed primary data (2017) based on the above table, it can be formulated the following structural equation: y = 0,440+0,410x1+0,078x2+0,336x3+0,212x4 that is, if the location, store atmosphere, customer relationship management, and pricing are considered constant or in other words that if all independent variables are considered zero, then the consumer purchase decision will have a value of 0.440 times. and consumer purchase decision can be increased by the free value of one or all of the location, store atmosphere, customer relationship management, and pricing policies experienced an increase assessed by consumers. while, the path diagram in the study can be explained as follows: journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 35-46 45 figure 7. research sub-structural based on the sub-structural above, can be seen that from the 4 (four) independent variables studied, the first independent variable that is the location becomes the largest variable that can influence consumer purchase decision at the milk bar bandung. conclusion based on the results of research conducted on the milk bar bandung regarding store atmosphere and pricing policy, then obtained the following conclusions: 1. based on the assessment of the location, store atmosphere, pricing, and customer relationship management as well as purchase decision, it can be concluded as follows:  in the location variable, which is considered to have the highest by the consumers is the characteristic of the location, such as parking area availability, access to and out of the café, and the visibility of the cafe to the street. and the lowest value is traffic and accessibility, the indicator for this sub variable is the ease of location to reach and availability to reach the location.  in the store atmosphere variable that is considered to have the highest by the consumers is the exterior design related to the location that is considered strategic and easy to reach, the signage that is clearly visible and easily seen by consumers, the security of vehicles parked around the location, and the entrance that eases the out and enter of the consumer. while, the lowest value of the store atmosphere is sub variable of interior display that includes image that is in accordance with the theme, toilet sign, and cashier that is clear and attracts attention.  in the customer relationship management variable, indicator of technology has the highest value, but the indicator of process has the lowest value, this becomes one of the things that must be considered well by the management of the milk bar in the future.  from the previous data, it can be seen the average value of the five subvariables of pricing made by the milk bar, it can be seen that the greatest value is in the price affordability. consumers have assumption that the price provided by the milk bar is affordable and the price is in line with the brand image of the milk bar itself. while, the lowest value of the price variable is the price conformity with the benefits.  based on the graph in the previous, can be seen that the lowest value of the consumer purchase decision variable is in the dealer selection, in this case, is the convenience of consumers in getting the milk bar products. while, the highest value is in the sub variable of payment method, this is because payments made by consumers can use the system of cash or debit. 2. to find out how big the influence of the variable of location, store atmosphere¸ price implementation. and customer reationship management on purchase decisions at the milk bar bandung either partially or simultaneously, based on research results show that: journal of accounting, management, and economics, vol. 19, no. 2, 2017, pp. 35-46 46  location variable influences purchase decision with influence value of 65,45%, result of research stated that store atmosphere has influence of 34,57%. pricing influences purchase decision with a value of 58.98%. and the result of research stated that customer relationship management on purchase decision with value of 57,61%.  the results showed that the four independent variables give a high simultaneous influence of 77.4%. 3. to see which effect is the biggest in improving consumer purchase decision, it can be concluded that location has greater influence compared with other independent variables. the location intended is traffic flow and accessibility as well as location characteristic. references alma, b. (2013). marketing management and service marketing. bandung: cv alfabeta. berman, b. & juel, r. e. (2009). retail management strategic. new jersey: pearson education. kotler, p. & keller, k. l. (2016). marketing management (15th ed.). new jersey: pearson pretice hall, inc. kotler, p. & armstrong, g. (2014). principle of marketing (15th ed.). new jersey: pearson pretice hall. rosvita, d. (2010). analysis of influence of product quaity, price, promotion, and weather on purchase of sosro bottled tea. thesis. diponegoro university. levy, m., & weitz, b. a. (2004). retailing management. usa: richard d irwin, inc. lovelock, c., wirtz, j., & mussry, j. (2012). marketing of human service, technology, and strategy, book i (7th ed.). jakarta: erlangga. lukas, a. (2001). crm slide presentation. jakarta: ciptamaya. sumarwan, u. (2011). consumer behavior: theory and its implementation in marketing, book i (2nd ed.). bogor: ghalia indonesia. jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 3, 2022, pp. 30-34 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : reyhancmng@gmail.com received: 7 june 2022 accepted: 1 july 2022 published: 1 sep 2022 introduction under the leadership of president joko widodo, the indonesian government has intensively carried out infrastructure development, such as building new toll roads, adding programming interface train lines, and building airports and ports. the central government assesses that indonesia's infrastructure development is still far behind compared to other countries (cabinet secretariat of the republic of indonesia, 2017). infrastructure development is designed to respond to changes occurring throughout the industrial world. one of the industrial sectors that is experiencing changes is tourism. tourism is currently seen as a very profitable industry for indonesia because of the large tourism potential that can be optimized (cholik, 2017; mariyono, 2017). one of them is that regional income also tends to increase in tourist destinations (incera and fernández, 2015). thus, tourism development in indonesia cannot be separated from tourism development at the regional level (oktavio, 2017; sutanto, 2016). in surabaya, the tourism sector has also not escaped the attention of the local city government. so far, the tourism development planning for the city of surabaya is stated in the regional medium-term development plan (rpjmd). one of the indicators used by the surabaya city government in assessing the success of its tourism sector development is the comparison of the number of tourist visits based on tourism objects compared to all out tourist visits to surabaya. in the 2016-2021 rpjmd, it is known that the achievement of the comparison of the number of tourist visits based on tourism objects compared to the total number of tourist visits to surabaya during 2010-2015 is still relatively small. this indicates that the attractiveness of tourism objects in surabaya as a whole has not been able to attract tourists ideally so that efforts are still needed to develop effective and attractive tourism destinations and marketing (surabaya city government, 2016). the rpjmd also mentions strategic priority issues for the surabaya city government, one of which is preserving local culture to prevent negative cultural influences. the surabaya city government is of the view that with the increasing intensity of cultural interaction in the current global time, it can pose a threat to the loss of the city's local cultural wisdom. the measurement of the local culture index is a reflection of the performance of several variables that are correlated with the local wisdom of the city, such as the preservation of local culture. one of the tourist destinations in surabaya that has the potential for cultural tourism but has not been managed and developed ideally is the chinatown area. the potential in question is that there is still a tourism destination development strategy using the swot analysis method dian sudiantini1, muhammad reyhan riyandito2 1,2management, economy business, bhayangkara university, indonesia abstract the kapasan chinatown area has considerable potential to become a tourist destination that can attract tourists to visit. however, in reality, the number of tourist visits, both domestic and foreign, to the kapasan chinatown area is still very low when compared to other tourist attractions in surabaya. for this reason, a tourism development strategy is needed to improve the quality of tourism destinations in the kapasan chinatown area. this study aims to find a strategic formulation for developing a tourist destination in the kapasan chinatown area by using a swot analysis tool. kapasan's strengths, weaknesses, opportunities and threats as a long-standing tourist destination in surabaya are analyzed comprehensively. from the results of the analysis, it can be seen that the kapasan chinatown area is seen as having low competitive power to face threats from tourist destinations keywords strategy, tourism development, swot analysis jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 30-34 preserved chinese cultural heritage, the open nature and hospitality of the local community, as well as other living societies that have a very close relationship with tradition and cultural heritage (prasetya and wibisono, 2015). so, if it is related to the strategic issue of the surabaya city government, the cultural and historical values possessed by the chinatown area should be preserved as well. one of the oldest chinatown areas in surabaya is the kapasan chinatown, which has been a settlement for the chinese community since the 19th century. it was named kapasan because this area used to be overgrown with cottonwood trees or cottonwood trees, so it was named kapasan. the kapasan chinatown area is still closely related to chinese culture, both physical and non-physical, such as the boen bio temple which was founded in 1883 (fitrianto, 2013) so that the kapasan area is also called kapasan boen bio or currently better known as kapasan dalam. (kartono, 2012). the settlement of chinese residents in the kapasan chinatown area is in the form of a small plot and there are still several houses that have a typical chinese architectural design. one of the kinship activities of chinese citizens in the kapasan chinatown area which is still running is the kung fu practice field. in addition, there is also an annual cultural event called alms earth to commemorate the birthday of the prophet confucius. the earth alms program features puppet shows and lion dances involving local residents seeing the picture of kapasan's potential, kapasan should be able to become a tourist destination that can attract tourists to visit. however, in reality, the number of tourist visits, both domestic and foreign, to the kapasan chinatown area is still lower than other tourist attractions in surabaya. tourists tend to visit tourist attractions that have a present day nuance such as malls or other entertainment centers (arifah, 2015). according to mr. widodo suryantoro, head of the culture and tourism office of the city of surabaya, there are many tourist destinations that are the main destinations for domestic and foreign tourists when visiting surabaya, namely shopping tourism such as shopping centers and sme centers culinary tourism and the third is park tourism, and the fourth is nature tourism (surya.co.id, 2017). based on the above conditions, kapasan must have a strategy to develop the quality of tourism destinations in the area. therefore, this research was written with the aim of providing the formulation of a tourism development strategy in the kapasan chinatown area of surabaya by using a swot analysis research methods this research is a descriptive study with a blended strategy approach (quantitative and qualitative). the type of research information is preliminary information and the instruments used for data collection are questionnaires, field surveys and interviews which were conducted for three months from september to november 2017. in the tourism industry, the tourist population is fluctuating. the number of tourist visits can be influenced by uncontrollable factors, such as economic conditions and natural disasters (louangrath and rewtrakunphaiboon, 2013). therefore, the number of populations in research in the field of tourism often cannot be known with certainty (limitless population). louangrath (2014) provides two new methods for calculating sample size for an unknown population. one of them is multistage nonfinite population (mnp) or n-omega (n ). the mnp method was introduced in 2014 which is the latest contribution to the field of research methodology in the social sciences. both methods provide an efficient way of determining the least sample size where the least sample size is 30 (n 30). louangrath (2014) assumes that using the standard blunder equation to determine the least sample size is an error. based on the theory of louangrath (2014), the number of samples in this study was set at 35 samples. the research sample determination technique is purposive testing which is included in nonlikelihood inspecting where the respondents who are used as research samples are tourists, both domestic and foreign, who have traveled to the kapasan chinatown area. this study uses swot analysis as an information analysis method. swot analysis is a very complex strategic planning method to describe a situation and evaluate a problem based on interior and external factors, namely strength (strength), weakness (weakness), opportunity (opportunity), and threat (threat). the variables and indicators used in this study are elements related to interior and external factors of tourist destinations adopted from butowski's (2010) research other components of information analysis are internal factors analysis summary (ifas) and external factors analysis summary jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 30-34 (efas). ifas consists of strengths and weaknesses while efas consists of opportunities and threats. ifas-efas is determined by evaluating all aspects of swot (interior and external factors) associated with the seven variables in table 1 and assigning a score between 0.00 and 1.00. the result of the complete score of each factor is 1. the next step is to multiply the scores of all factors with the criteria (rating) that have been designed previously. the criteria (ratings) in the ifasefas analysis for the tourism sector in the kapasan chinatown area are determined based on the following assumptions: a) criterion 1 is rated 1 (low), b) criterion 2 is rated 2 (enough), and c) criterion 3 is assigned a rating. rating 3 (high). the complete result of multiplication of scores and criteria (rating) will determine the value of factor x (strengthsweaknesses) and factor y (threats) which are then entered into the ifas-efas quadrant to describe the direction of the strategy that must be made. ifas-efas analysis ifas-efas analysis is an analysis of various strategic factors in the internal and external environment by giving weights and ratings to each of these strategic factors. strategic factors are the dominant factors of strengths, weaknesses, opportunities and threats that have an impact on existing situations and conditions and provide benefits when positive actions are taken (dyson, 2004). analyzing the internal and external environment is useful for monitoring problems that can affect tourism in the future (goranczewski & puciato, 2010; lawton & weaver, 2009). based on the ifas analysis as presented in table 3, it is known that the complete scores for strengths and weaknesses are 1.117 and 1.693, so the absolute weakness score is greater than the all-out score of strengths. therefore, the first step that can be taken in the tourism development program in the kapasan chinatown area is to identify the inner noise problem and find a solution in order to minimize weaknesses. the factors that become weaknesses have a significant influence on inhibiting tourism development in the kapasan chinatown area. internal factors analysis summary (ifas) based on the ifas-efas quadrant, the development of tourism in the chinatown area of surabaya is in quadrant iii, especially in the turn around strategy region. this quadrant describes a very unfavorable situation where one has to face various internal weaknesses and external threats (tranggono, dwiridhotjahjono, aryani, and rasyidah, 2015). the kapasan chinatown area is seen as having low competitive power to face threats from other tourist destinations. therefore, the strategy that needs to be developed is to reverse various kinds of negative trends that are currently happening, which are most commonly focused on more ideal management efforts (chang and huang, 2006). one strategy that can be adopted to avoid threats is to carry out a defensive strategy that focuses on the most preferred market. however, if the defensive strategy fails, then divestment or liquidation can be used as the next strategic option. another step that can be taken to respond to the results of the ifas-efas quadrant is to develop alternative strategies formulated from the results of the previous mapping of each swot aspect by combining each swot aspect (goranczewski and puciato, 2010) as follows: a. strategies that link strength and opportunity (so), namely exploring historical and cultural heritage and realizing it in the form of unique and different tourist attractions from existing tourist attractions; promote promotion; and establish more intensive cooperation with other tourism business players b. a strategy that connects strength and threat (st), namely conducting further exploration of tourist destinations so that they have a competitive advantage and are able to attract investors; echo the importance of preserving cultural heritage as a legacy for future generations; establish more intensive communication with the government as the main stakeholder in the tourism sector in order to make a policy that can arouse and encourage tourists to visit the kapasan chinatown area. c. strategies that link weakness and opportunity (wo), namely improving the quality and quantity of infrastructure and supporting facilities such as establishing a souvenir center; open a tourist information center; schedule an annual tourism program; and promote the participation of local communities, especially young people, through youth organizations. d. strategies that link weakness and threat (wt), namely increasing information and promotion about the kapasan chinatown area; take advantage of csr funds offered by large companies for the development of jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 30-34 historical and cultural tourism in the kapasan chinatown area; suggested that the chinatown area be included in the agenda of the surabaya city government's tourism program, for example during the commemoration of the anniversary of the city of surabaya. results and discussion from the various analyzes of strategy formulation that the author did above, in the end it is necessary to choose a strategy that can increase the greatest opportunities for the kapassan chinatown area to develop its tourism potential so that it is highly competitive. strategy formulation is often referred to as strategic planning and is an exposition of long-term planning, so the process uses more of an analytical process. strategy selection also needs to consider several factors such as responsiveness to the external environment, involving competitive advantage, and alignment with other stakeholder strategies conclusion this study aims to formulate a strategy for developing tourist destinations in the kapasan chinatown area by using a swot analysis tool. comprehensive analysis of the strengths, weaknesses, opportunities, and threats of kapasan as a historic tourist destination in surabaya. from the results of the analysis, it can be seen that the chinatown area of kapassan is seen as less competitive in facing threats from other tourist destinations. therefore, the strategy that can be applied is a defensive strategy against the most preferred market. steps that need to be taken include increasing information and promoting the kapasan chinatown area as a legacy tourism area; take advantage of corporate social responsibility funds provided by large companies; and recommended that the chinatown area be included in the surabaya city government's annual tourism plan. the plan, such as in commemoration of the anniversary of the city of surabaya. in addition, it is necessary to improve the quality and quantity of infrastructure and supporting facilities. the presence of stakeholders in the surabaya tourism industry has no effect in implementing the strategies recommended by the authors and conducting further evaluations. so if there are still shortcomings or weaknesses, this can be an interesting learning material for further studyarticle text here article text here article text here. article text article text article text article text article text here. 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(2000). strategic planning. equity, 4(2), 61–77.nonuniformity of the cerebral cortex. proceedings of the national academy of sciences 105, 12593-12598. journal operational research , manajemen and economics vol. 24, no. 3, 2022, pp. 15-21 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : sherennovv@gmail.com2 received: 7 june 2022 accepted: 8 aug 2022 published: 1 sep 2022 introduction the history of nata de coco, originally nata de coco was discovered in 1949 by a filipino chemist who worked for the national coconut corporation. production of nata de coco began in 1954, then optimized in 1970 through the efforts of a team of microbiologists. nata de coco in spanish means cream of coconut. in indonesia, nata de coco is often referred to as coconut juice. most of the processing of nata de coco in indonesia is a home industry with pineapple as raw material or often called nata de pina. nata de coco is a cellulose compound (dietary fiber) made from coconut water by a fermentation process using microbes, called nata seeds (lestari, 2015). in the industrial sector, nata de coco is a type of soft drink because it contains 98% water. in addition, nata de coco is made with the addition of a sweetener solution and then packaged in such a way. nata de coco is sold not only in the domestic market, but also in europe, japan, the united states, and middle eastern countries. domestic market demand for nata de coco usually increases dramatically during christmas, eid, new year, and other important events. pt shenovia is a business entity that oversees housewives in managing nata de coco according to company standards that have been set, then distributed to the market. pt shenovia is located in the ciasem area, subang. the nata de coco product produced by pt shenovia is not inferior to branded products already circulating in the market. nata de coco produced by pt shenovia has spread to several cities in west java and has begun to spread to several other provinces. pt shenovia continues to increase production and expand its marketing network. competition in the business world is increasing sharply and can lead to a decline in sales of nata de coco if the strategy is not managed properly. one of the important factors that must be the main focus is the availability of raw materials. in planning the amount of production there are several methods that can be used, one of which is using the forecasting method (panday, 2019). on this occasion, a study will be conducted on the sales volume of pt shenovia as a forecasting analysis of msme sales of nata de coco products in pt shenovia using least square, moving average, and semi average methods dian sudiantini1, sheren novita ara2 1,2management, faculty of economics and business, bhayangkara university, greater jakarta, indonesia abstract nata de coco is a processed product whose main component is coconut water, such as a transparent white jelly. the nata de coco company named pt shenovia is a business unit that oversees the management of nata de coco. pt shenovia is spread across several provinces in indonesia, one of which is in the province of west java. the purpose of this study was to determine the effect of sales forecasts on pt shenovia. the data used in this study is the actual data owned by the company. the data taken is pt shenovia's sales data from 2016 to 2021. the data is used to determine the sales forecast to be obtained in 2022. this company uses three methods in time series analysis and calculates forecasting errors using the mape (mean absolute percent error) method, the results obtained are the least square method of 67%, the moving average method of 2.91%, and the semi-average method of 2.27%. so it can be concluded that the best forecasting results are the moving average and semi-average methods, because they have an accuracy value of <10%, which means the ability of the forecasting model is very good. keywords forecasting; nata de coco; least square method; moving average method; semi average method mailto:sherennovv@gmail.com2 journal operational research , manajemen and economics , vol. 24, no. 3, 2022, pp. 15-21 distributor of nata de coco. forecasting is done using three methods in the time series analysis, namely the least square method, the moving average method, and the semiaverage method. these three methods are used to choose which forecasting model seems appropriate for forecasting pt shenovia's sales volume. in problem solving planning, it is necessary to pay attention to the root of the problem to think of ways to solve it (sudiantini & dewi shinta, 2018). the formulation of the problem in this study is whether there is an influence in sales forecasting on pt shenovia as a producer or company that produces nata de coco? based on the theoretical explanation above, pt shenovia really needs a forecasting method to predict sales and secure production, as well as planning guidance by management. good and accurate planning can minimize excessive costs and reduce costs. with a little effort, this will affect the profits to be achieved higher. too much inventory will cause an increase in inventory costs, while too little inventory will result in increased costs and excessive ordering frequency (panday et al., 2020). therefore, the authors are interested in conducting research related to sales forecasts of nata de coco with the title "forecasting analysis in sales of nata de coco products to pt shenovia using least square, moving average, and semi average methods". the results of this study can also be used by pt shenovia executives to improve performance and satisfaction, as well as create quality products. literature review nata de coco nata de coco is a processed product with the main content of coconut water which is fermented with acetobacter xylinum bacteria. nata de coco is a transparent white jelly which is a dessert with a chewy texture. nata de coco is a healthy food with high fiber but low in calories. nata de coco has health benefits such as lowering cholesterol, lowering blood sugar in diabetics, and controlling weight (preventing obesity). forecasting forecasting is an activity or business that uses empirical or historical data to find out what will happen (events) in the future for a particular object. to be able to predict, predict or predict something (the value of a variable) in the future, past data is needed (permatasari, 2019). while forecasting activity is a business function that predicts sales and use of a product so as to produce the right amount of product. time series analysis and forecasting are used by managers to predict events that are used to make decisions based on patterns that have occurred in the past, thus making the forecasts produced more accurate. the conclusion of sales forecasting according to (wijayanti & sc, 2003) is an estimate of future sales under certain circumstances and is based on data that has occurred in the previous year (sudiantini et al., 2019). the advantages of forecasting methods in the business world are accurate and professional results. in various businesses, such as the production of products and services, it is important to plan and monitor so that it will be easier for the business to move forward. according to (helmiah & dahriansah, 2020), there are two forecasting techniques. qualitatively, namely an evaluation method that emphasizes one's opinion (judgment).quantitatively, namely an evaluation method that emphasizes numerical calculations using various statistical methods. the approach used to generate forecasts has a significant impact on forecasting results. sales according to (muqtadiroh, 2015) sales is an integrated effort to develop a strategic plan that is directed at satisfying the needs and desires of buyers. therefore, it can be concluded that selling is an activity between the seller and the buyer in the form of a product or service in which the company seeks profit or profit and the buyer receives the appropriate price. there are also several factors that affect sales, such as product quality, consumer tastes, the ability of sellers, and market competition (saputra, 2022). high sales facilitate rapid business growth. the higher the number of sales, the higher the company's profit. with the high profit earned from sales, of course the business will benefit and also the costs for other operations. proper financial management is needed so that profits from sales can be allocated for business development appropriately (munawar & saputra, 2021). forecasting method the forecasting method is a method for planning and managing production. in journal operational research , manajemen and economics , vol. 24, no. 3, 2022, pp. 15-21 addition, forecasts are also defined as a tool to carry out an effective and efficient plan. there are several kinds of forecasting methods as follows : least square method the least squares method or least square is one method in the form of time series data that requires past sales data to forecast future sales in order to determine results (pamungkas, 2016). least square is a forecasting tool to detect trends in time series data (supriyanto & sutarman, 2017). so, it can be concluded that if the square of the deviation of the data value from the minimum or smallest trend line has been met, then the trend line will be located in the middle of the original data. equation 1: y = a + bx then to find out the coefficients a and b are sought by equations 2 and 3. a = ∑ y n b = ∑ t y ∑ t2 with : y = periodic data (time series) = estimated trend value. a = trend value in base year. b = average growth trend value each year. x = time variable (day, week, month or year). moving average method moving average forecasting uses a moving average as a mathematical forecasting process which is a combination of high and low values, which provides a stable forecast (paixão & silva, 2019). this moving average method is suitable for calculating stable data and data that does not fluctuate significantly (data that changes significantly up and down). mathematically simple moving average (predicting demand for future periods), using the formula: moving average =  demand n previous period n 1. semi-average method according to (budi septiawan & zuni astuti, 2016), the half-average method basically consists of dividing the data into two parts, namely the first group and the second group. then the two groups are used as the basis for calculating trends and forecasts. y’ = a + b(x) forecasting error calculation the selection of the forecasting method is done by comparing the error values, where the forecasting model with the smallest error value is chosen as the best and most suitable method for forecasting nata de coco sales reports at pt shenovia. calculations according to (hernadewita et al., 2020) : 1. mad (mean absolute deviation) this is the first way to measure the overall forecasting error. calculation of errors in general, namely the average error between forecasting and actual data. mad =  actual − forecast n 2. mse (mean square error) the second measure of overall forecasting error. error calculation by squaring the result of the error, both the smallest and the largest. good for data with small variance or distribution. mse =  (forecast error)2 n 3. mape (mean absolute percent error) it is calculated using the absolute error in each period divided by the actual value for that period. then, average the absolute percentage error. this method provides an indicator of the level of forecasting error relative to the true value. mape =  absolute percent error n mape (mean absolute percent error) is a relative error measurement that shows the percentage of forecasting error results compared to actual demand over a certain period of time and provides information about the journal operational research , manajemen and economics , vol. 24, no. 3, 2022, pp. 15-21 percentage of error that is too high or too low (astuti et al., 2019). methods this research is quantitative research conducted at pt shenovia by looking for forecast data from the sales results. this data collection was carried out from 2016 to 2021, using the least square, moving average, and semi-average methods. after data collection, the researcher can perform forecasting calculations for 2022 with these three methods. after getting the forecast value, the forecast error is calculated. the calculation contains mad (mean absolute deviation), mse (mean square error), and mape (mean absolute percent error). figure 1. research framework results and discussion the data used in this study is the actual data owned by the company. the data taken is pt shenovia's sales data from 2016 to 2021. this data will be used for forecasting sales for the following year. the following data is collected based on actual company data from 2016 to 2021. table 1. pt shenovia sales data 2016-2021 year (n) sales (y) 2016 15,000 2017 15,250 2018 15,125 2019 15,550 2020 15,725 2021 16,000 source: pt shenovia the analysis was carried out using the least square, moving average, and semiaverage methods to determine the best predictions to be used. table 2. preparation of calculation of sales data for nata de coco products least square method year (n) sales (y) x xy x2 2016 15,000 -5 -75,000 25 2017 15,250 -3 -45,750 9 2018 15,125 -1 -15,125 1 2019 15,550 1 15,125 1 2020 15,725 3 47,175 9 2021 16,000 5 80,000 25  92,650 0 6,850 70 source: data processed so that the value of the constant a and constant b is obtained with the following calculations. 𝑎 = ∑ 𝑌 𝑛 = 92,650 6 = 15,441.67 𝑏 = ∑ 𝑋𝑌 ∑ 𝑋2 = 6,850 70 = 97.86 thus, each value of the constant number is known, namely, a is 15,441.67 while b is 97.86. then calculate the forecast for the number of sales of nata de coco in the upcoming period, namely in 2022, with the linear equation of the line: y’ = 15,441.67 + 97.86 (x) by using this equation, it can be forecasted sales in 2022 with the value of x used is x = 7 so that it can be obtained: y’2022 = a + b (x) = 15,441.67 + 97.86 (7) = 16,126.69 thus, it can be estimated that sales of nata de coco in 2022 are 16,126.69 packs. table 3. analysis of sales forecasting errors of nata de coco products to pt shenovia year (n) sales (y) forecasting (yt) |𝐘𝟏 − 𝐘𝐭| 2016 15,000 16,126.69 1,126.69 journal operational research , manajemen and economics , vol. 24, no. 3, 2022, pp. 15-21 2017 15,250 16,126.69 876.69 2018 15,125 16,126.69 1,001.69 2019 15,550 16,126.69 576.69 2020 15,725 16,126.69 401.69 2021 16,000 16,126.69 126.69  92,650 4,110.14 source: data processed mad = ∑ | 𝑌1−𝑌𝑡 | 𝑛 = 4,110.14 6 = 685.02 mse = ∑( 𝑌1 − 𝑌𝑡)2 𝑛 = 16,893,250.82 6 = 2,815,541.80 mape = ∑ |( 𝑌1−𝑌𝑡 )| 𝑌1 𝑛 × 100% = ∑(4,110.14) 92,650 6 × 100% = 0.04 6 × 100% = 0.67 = 67% thus, the mad (mean absolute deviation) value is 685.02 and the mse (mean square error) is 2.815.541.80. meanwhile, mape (mean absolute percent error) in the least square method is 67%. in this data, the mape value is >50% which can be said to be inaccurate. table 4. calculation of sales forecasting products nata de coco moving average method 3 the table above is based on forecasting using the moving average method of nata de coco sales that will come in 2022 as many as 15,758.33 packs. and it can be seen that the mad (mean absolute deviation) value is 458.33 and the mse (mean square error) is 212.893.52. meanwhile, mape (mean absolute percent error) is 2.91%. in this data, the mape value is <10% which can be said to be very good or very accurate. table 5. total sales of nata de coco products to pt shenovia year (n) sales (y) x semi total trend semi average 2016 15,000 -3 k1 = 45,375 2017 15,250 -1 45,375 3 2018 15,125 1 = 15,125 2019 15,550 3 k2 = 47,275 2020 15,725 5 47,275 3 2021 16,000 7 = 15,758.34 2022 ? 9 source: data processed is known : n = 3 a = 15,125 b = (15,758.34 − 15,125) 3 = 211.12 then it can be calculated by the equation : y = a + bx the calculation is carried out with this equation in 2022, if it is known that the value of x is 9. y = a + bx = 15,125 + 211.12 (9) = 15,125 + 1,900.08 = 17,025.08 so, the estimated assets in 2022 using the semi-average method are 17,025.08 packs. then it is necessary to calculate the sales forecasting error of nata de coco products with the equation: y = 15,125 + 211.12 (x) journal operational research , manajemen and economics , vol. 24, no. 3, 2022, pp. 15-21 table 6. semi average trend data from table 6, the forecasting results have an error size of mad (mean absolute deviation) of 351.67 and mse (mean square error) of 146.981.67. meanwhile, mape (mean absolute percent error) is 2.27%. in this data, the mape value is <10% which can be said to be very good or very accurate. conclusion conclusion based on research conducted by the author who also acts as a researcher, the results of the comparison of the least square, moving average, and semi average methods are as follows: 1. least square method for forecasting sales of nata de coco products to pt shenovia in 2022 as many as 16,126.69 packs. with a forecast error value of mape (mean absolute percent error) of 67%. 2. the moving average method for forecasting sales of nata de coco products to pt shenovia in 2022 is 15,758.33 packs. with a forecast error value of mape (mean absolute percent error) of 2.91%. 3. the semi-average method for forecasting sales of nata de coco products to pt shenovia in 2022 is 17,025.08 packs. with a forecast error value of mape (mean absolute percent error) of 2.27%. 4. it can be concluded that the best forecasting results are the moving average and semi-average methods, because they have an accuracy value of <10%, which means the ability of the forecasting model is very good. suggestion management needs to consider using the moving average or semi-average method in making sales forecasts because this method is the most efficient in the 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(2017). penerapan metode least square untuk sistem peramalan penjualan barang berbasis ecommerce. doctoral dissertation, universitas teknologi yogyakarta, 1–12. wijayanti, m., & sc, m. (2003). produk susu kental manis carnation. 1–14. jurnal akuntansi, manajemen dan ekonomi vol. 25, no. 01, 2023, pp. 8 12 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : kusumaagdhi@unper.ac.id received: 12 des 2022 accepted: 1 jan 2023 published: 15 mar 2023 introduction commitment to the organization is a condition, in which hr sides with an organization and its goals, and intends to maintain membership in the organization. someone who has a high organizational commitment will give maximum effort voluntarily for the progress of the organization. creating organizational goals effectively and efficiently in the organization requires good cooperation between group members. farmer groups are actually only one of several forms of farmer institutions that exist in indonesia. farmer groups have many functions that are actually more directed at achieving farmer independence. but lately the farmer group is more identical as a means of getting government assistance and has lost its main role as a means of learning, a vehicle for cooperation and a production unit. group meetings which are a means of developing farmer groups have rarely been held, as a result many farmer groups have lost their function and role in agricultural development. karya gumilar farmer group and karya jaya dolphin livestock group located in karangjaladri village, parigi, pangandaran regency are groups that have great potential to create food estate innovation. the area managed by these two groups is quite extensive, including rice fields, farms, and livestock. however, the potential of natural resources managed has challenges, especially in managing tidal rice fields and processing livestock waste. it is recorded that 105 hectares of rice fields are often traversed by tidal water, which causes many farmers to experience crop failure so that the land is now abandoned/unused. as a result, farmers suffer losses and cannot maintain their commitment to managing their rice fields. this also has an impact on organizational commitment in the farmer group. farmers become lazy to farm and cannot implement the program that has been prepared by the farmer group management. several ways have been done by the administrators so that the land can be used optimally, such as bringing in extension workers, conducting training. however, not all farmers remain committed to land cultivation. this is thought to be due to the lack of motivation of farmers in managing land that is always flooded. in addition, the culture of fishing there makes farmers' priority as their livelihood. so managing land is less desirable. the purpose of this study was to determine and analyze the effect of work motivation and job satisfaction simultaneously and partially on organizational commitment of the karangjaladri village farmer group. then which variable is the most dominant in influencing organizational commitment. job satisfaction as a driver of organizational commitment kusuma agdhi rahwana1, evilia sri yuniar2 12universitas perjuangan tasikmalaya, indonesia abstract the purpose of this study was to determine and analyze the effect of work motivation and job satisfaction simultaneously or partially on the organizational commitment of the karangjaladri village farmer group. where farmers are lazy to farm and cannot carry out the program that has been prepared by the farmer group management, because it is recorded that an area of 105 hectares of rice fields is often traversed by tides which cause many farmers to experience crop failure. so that the land is now abandoned/unused and the farmers suffer losses and cannot keep their commitment to managing their fields. the number of population and samples that will be used as research objects are members of the karangjaladri village farmer group, which are 42 people. data collection techniques used in this study were questionnaires and interviews. hypothesis testing in this study using multiple regression analysis, correlation, and determination. the results showed that there was a significant effect either simultaneously or partially between work motivation and job satisfaction on organizational commitment in the karangjaladri village farmers group. the greatest influence is found in the variable job satisfaction on organizational commitment. keywords job satisfaction, organizational commitment, motivation jurnal akuntansi, manajemen dan ekonomi , vol. 25, no. 1, 2023, pp. 8-12 work motivation motivation is a drive or movement. in management, motivation is only shown to human resources. motivation questions how to direct the power and potential of employees to want to work well so that company goals can be achieved as expected. according to handoko (2012) work motivation is a condition in a person's personality that encourages individual desires to carry out certain activities to achieve goals". the dimensions of work motivation according to handoko (2012) can be described as intrinsic and extrinsic motivation.intrinsic motivation comes from within the individual. studied through process theory. the indicators consist of the need to achieve, he need to broaden one's social circle and the need to master something. the need to achieve success, which is measured by the standard of opportunity in a person is closely related to work and directs behavior in an effort to achieve certain achievements. the need of social circle the need for warmth and support in relation to others. this need directs behavior to establish intimate relationships with others. the need to master something related wih the need to control and influence situations and other people in order to be dominant and controlling. this need causes the person concerned to care less about the feelings of others. extrinsic motivation. comes from external factors. studied through content theory. the indicators consist of supervision, interpersonal relationships and working conditions. supervision need, is a motivation related to the duties and authority delegated by superiors to subordinates. inter-personal relationships is connection between fellow employees both in the work environment and outside of work. working conditions a situation that exists in the work environment that motivates employees to work. job satisfaction job satisfaction is basically an individual thing. each individual will have a different level of satisfaction according to the value system that applies to him. this is due to differences in each individual. according to luthans job satisfaction is a happy emotional state or a person's positive or pleasant emotions resulting from an assessment of a job or work experience. the dimensions of job satisfaction are also explained by hasibuan (2015) the dimensions of job satisfaction are loves his job, loves his job, work morale, discipline and work performance. organizational commitment organizational commitment is how the relationship between employees and work units creates an attitude that can be seen as a sense of attachment to the philosophy and work unit to achieve certain goals. according to sutrisno (2015) organizational commitment is the willingness of high effort for the organization and a certain belief in acceptance of organizational values. commitment to the organization also discusses employee closeness reflecting the strength of employee involvement and loyalty to the organization . sutrisno (2015) suggests that the dimensions of organizational commitment are affective, normative and continuance commitment. affective commitment is the strong desire of a person to work for an organization or company because he agrees with the goals of the organization and wants to do it. indicators are goals and objectives. employees share the same goals as the company in moving the organization forward. employee commitment to work because the company's goals are in accordance with the employee's goals at work continuance commitment is the strong desire of a person to continue his work for the organization because he needs the job and cannot do another job. indicators are loyalty and compliance. employees have loyalty to the organization. compliance is the strength of employees in complying with the rules that apply in the organization. normative commitment is the strong desire of a person to continue his work for the organization because he feels obliged by others to be maintained. the indicators are exemplary and sacrifice.exemplary is an important aspect for employees to set a good example in the organization. sacrifice is the willingness of employees to sacrifice for the progress of the organization. methods the research method used in this research is quantitative research. quantitative research methods, as stated by sugiyono (2018), are research methods based on the philosophy of positivism, used to research on certain populations or samples, data collection using research instruments, quantitative or statistical data analysis, with the aim of testing predetermined hypotheses, by formulating jurnal akuntansi, manajemen dan ekonomi , vol. 25, no. 1, 2023, pp. 8-12 hypotheses and answered using survey data collection methods in the form of distributing questionnaires to members of the karangjaladri village farmer group. the number of populations and samples that will be used as research objects are members of the karangjaladri village farmer group, namely 42 people. the data collection techniques used in this study were questionnaire and interview techniques. hypothesis testing in this study uses multiple regression analysis methods, correlation, and determination. results and discussion based on the results of statistical analysis with the spss version 21 program from table 1 of the spss output in the coefficients table, the following regression equation is obtained: y= 2.883 + 0.459x1 + 0.338x 2 where: y = organizational commitment x1 = work motivation x2 = job satisfaction a = 2,883 b1 = 0.459 b2 = 0.338 the regression equation states that the variables of work motivation (x1 ) and job satisfaction (x2 ) contribute to organizational commitment (y), which means that the contribution of work motivation and job satisfaction to organizational commitment in farmer group members of karangjaladri village has positive criteria (because it is marked +) which is 0.459 for each increase in work motivation and 0.338 for each increase in job satisfaction in farmer group members of karangjaladri village. table 1. reggresions analysis the positive regression coefficient shows that the better the work motivation and job satisfaction of the farmer group members of karangjaladri village, the organizational commitment will also increase. based on the results of these calculations, it can be seen that members of the karangjaladri village farmer group, job satisfaction has a smaller contribution than work motivation, this can be seen from the smaller regression coefficient. table 2. model summary the correlation coefficient (r) from the calculation results in the model summary table obtained a value of 0.925 which indicates that the relationship between the variables of work motivation (x1 ) and job satisfaction (x2 ) with the organizational commitment variable (y) has a very strong relationship. to find out how much influence work motivation and job satisfaction have on organizational commitment in farmer group members of karangjaladri village, it can be seen from the spss output in the summary model table. from the model summary table, the r square number is 0.855. r square can also be called the coefficient of determination which ranges from 0 to 1, noting that the greater the r square, the greater the effect on organizational commitment on members of the karangjaladri village farmer group. from the calculation, it is obtained that r square is 0.855 or 85.5%, which means that work motivation and job satisfaction have an influence on organizational commitment on members of the karangjaladri village farmer group. the better the work motivation and job satisfaction of the farmer group members of karangjaladri village, the organizational commitment tends to increase. while the remaining 100% 85.5% = 14.5% is influenced by other factors not examined such as job security, relationships with coworkers, and job characteristics, etc. table 3. the significant test to determine the significant level of influence of work motivation and job satisfaction on organizational commitment in farmer group members of karangjaladri village simultaneously, the f test was conducted. based on the results of the calculation of spss version 21 in the anova table, it is model unstand. coef stand. coef. t sig correlations b std. error beta so part. part const 2.883 1,712 1,684 ,102 mot. ,459 ,101 ,459 4,526 ,000 ,855 ,625 ,305 sat ,338 ,065 ,530 5,226 ,000 ,873 ,679 ,353 r r square adj. r square std. error of est .925 .855 .846 .98469 model sum of square df mean square f sig reg 183.143 .2 .91.572 94.441 ,000 res 31.028 32 .970 total 214.171 34 jurnal akuntansi, manajemen dan ekonomi , vol. 25, no. 1, 2023, pp. 8-12 known that the fcount is 94.441 while the ftabel is 3.27 or sig (.000a ) ≤ alpha (α) (0.05). based on the calculation results, it turns out that fcount is greater than ftabel (fcount> ftabel) or 94.41> 3.27, so the null hypothesis (h0 ) is rejected and the alternative hypothesis (ha) is accepted. the acceptance of the alternative hypothesis (ha) shows that at the 95% confidence level there is a significant effect on work motivation and job satisfaction simultaneously on organizational commitment in farmer group members of karangjaladri village. this means that if work motivation and job satisfaction increase, organizational commitment will increase, and vice versa if work motivation and job satisfaction decrease, organizational commitment will decrease. based on the value of the influence of work motivation and job satisfaction on organizational commitment, it is known that work motivation is the dominant variable affecting organizational commitment in farmer group members of karangjaladri village. this is because employees need work motivation more than job satisfaction. the results of this study indicate that this research is in line with previous research conducted by winda kusuma wardhani (2015) with the results showing that employee work motivation affects organizational commitment through job satisfaction. if work motivation is high, the level of job satisfaction will be high, and when job satisfaction is high, it increases organizational commitment. this is in accordance with the theory explained by hasibuan, (2006) which states that work motivation is the stimulation of desire and the provision of driving force that creates a person's work enthusiasm so that they want to work together, work effectively and integrate with all efforts to achieve satisfaction. that is why work motivation and job satisfaction are the reasons why employees really need motivation and satisfaction at work. table 4. hypothesis test based on the results of the calculation of the correlation coefficient in the coefficients table (table 4) above, the correlation coefficient value between the work motivation variable (x1 ) and organizational commitment (y) is 0.625 which indicates that there is a moderate relationship between work motivation (x1 ) and organizational commitment (y). the correlation coefficient value implies that an increase in work motivation (x1 ) increases organizational commitment (y). then the effect of work motivation (x1 ) on organizational commitment (y) partially is 39.06% [kd = (0.625)² × 100%]. the results of hypothesis testing prove that work motivation affects organizational commitment, this is evidenced based on the coefficients table. from the calculation results, it is known that tcount is 4.526> t table 1.692 or sig (0.000) ≥ alpha (α) (0.05) then ha is accepted and h0 is rejected. thus it can be interpreted that work motivation (x1 ) partially has a significant effect on organizational commitment (y). this means that work motivation helps achieve organizational commitment in farmer group members of karangjaladri village . the reason why work motivation affects organizational commitment of farmer group members in karangjaladri village is because work motivation is a driving force that exists for employees and can direct their behavior to carry out their duties and responsibilities. in addition, work motivation from the company becomes job satisfaction expected by employees for optimal results. from the results of this study, it shows that this research is in line with previous research conducted by anastasia tania (2013) entitled the effect of job satisfaction and work motivation on organizational commitment of employees of pt dai knife in surabaya. the results showed that work motivation has a positive and significant effect on employee organizational commitment. and also this research is in line with previous research conducted by steven gondokusumo (2020) entitled work motivation, job satisfaction, and employee organizational commitment. the results of this study indicate that work motivation has a positive and significant effect on organizational commitment. the results of the study can be a reference for companies to be able to increase employee work motivation so that high organizational commitment can be achieved. the next variable is job satisfaction. based on the results of the calculation of the correlation coefficient in the coefficients table (table 4), model unstand. coef stand. coef. t sig correlations b std. error beta so part. part const 2.883 1,712 1,684 ,102 mot. ,459 ,101 ,459 4,526 ,000 ,855 ,625 ,305 sat ,338 ,065 ,530 5,226 ,000 ,873 ,679 ,353 jurnal akuntansi, manajemen dan ekonomi , vol. 25, no. 1, 2023, pp. 8-12 the correlation coefficient value between job satisfaction (x2 ) and organizational commitment (y) is 0.679, which indicates that there is a strong relationship between job satisfaction (x2 ) and organizational commitment (y). the correlation coefficient value implies that an increase in job satisfaction (x2 ) will increase organizational commitment (y). then the effect of job satisfaction (x2 ) on organizational commitment (y) partially is 46.10% [kd = (0.679)² × 100%]. the results of hypothesis testing prove that job satisfaction affects organizational commitment, this is evidenced based on the coefficients table. from the calculation results it is known that the tcount is 5.226> ttable 1.692 or sig (0.000) ≤ alpha (α) (0.05) then ha is accepted and h0 is rejected. thus it can be interpreted that job satisfaction (x2 ) partially has a significant effect on organizational commitment (y). this means that job satisfaction is very helpful in achieving organizational commitment in farmer group members of karangjaladri village. the reason job satisfaction affects organizational commitment in farmer group members of karangjaladri village is because job satisfaction felt by employees is very influential in increasing organizational commitment. job satisfaction is a happy emotional state or a person's positive or pleasant emotions resulting from an assessment of a job or work experience. from the results of this study, it shows that this research is in line with previous research conducted by anastasia tania (2013) entitled the effect of job satisfaction and work motivation on organizational commitment of employees of pt dai knife in surabaya. the results showed that job satisfaction has a positive and significant effect on employee organizational commitment. and also this research is in line with previous research conducted by steven gondokusumo (2020) entitled work motivation, job satisfaction, and employee organizational commitment. the results of this study indicate that job satisfaction has a positive and significant effect on organizational commitment. the results of the study can be a reference for companies to be able to increase employee job satisfaction so that high organizational commitment can be achieved. this variable has a dominant influence compared to the motivation variable, so that organizational leaders must be able to maintain the job satisfaction of their members so that organizational activities can run smoothly. conclusion the conclusion of the results of this study is that there is a significant influence both simultaneously and partially between the variables of work motivation and job satisfaction on organizational commitment in the karangjaladri village farmer group. then the job satisfaction variable has a dominant or greater influence on organizational commitment than the work motivation variable. with this research, supervision from leaders on a regular basis is very necessary, so that members of the organization are more motivated to work. then the leadership must pay more attention to the completeness of facilities and infrastructure that support work in order to create significant satisfaction. to foster organizational commitment to an organization, employee sacrifice in advancing the organization is very important, so that organizational members will favor an organization and its goals, and intend to maintain membership in the organization. from the results of this study, the job satisfaction variable has a greater influence than other variables, so that leaders must be able to maintain job satisfaction so that organizational commitment is maintained. references dewi, m.a 2013. pengaruh motivasi kerja dan kepuasan kerja terhadap komitmen organisasi pada pt. bali marine walk. jurnal ekonomi dan bisnis universitas udayana (unud) bali. handoko, t.h. 2018. manajemen personalia dan sumber daya manusia. bpfe: yogyakarta. hariandja, m.t.e 2017, manajemen sumber daya manusia :pengadaan, pengembangan, pengkompensasian, dan peningkatan produktivitas pegawai, jakarta : grasindo. hasibuan, m. s.p. 2015. manajemen dasar, pengertian, dan masalah, edisi revisi. jakarta: bumi aksara. ibrahim, m. 2016.manajemen sumber daya manusia. makasar: fahmis pustaka masram. 2015. manajemen sumber daya manusia. sidoarjo: zifatama publishing. jurnal akuntansi, manajemen dan ekonomi , vol. 25, no. 1, 2023, pp. 8-12 mangkunegara, a.p. 2015. manajemen sumber daya manusia perusahaan, bandung: pt. remaja rosdakarya. martadiani, m. 2019. pengaruh motivasi kerja dan kepuasan kerja terhadap komitmen organisasional pada pt. indonesia natural laris di denpasar. jurnal ekonomi, bisnis dan akuntansi. vol 18 no. 2 issn: 19784007. marbawi, a. 2016. manajemen sumber daya manusia. lokhsmawe: unimal press. prabowo, a. 2013. pengaruh motivasi kerja dan kepuasan kerja terhadap komitmen organisasional perawat dan bidan kontrak di rs bhayangkara hasta brata batu malang. jurnal aplikasi manajemen. vol 14 no 1 issn: 1693-5241 sudibjo, b.s. 2017. pengantar metodologi penelitian. bandung: universitas nasional pasim. pratama, e.w 2016. pengaruh motivasi kerja dan kepuasan kerja terhadap komitmen organisasional (studi pada karyawan ksp sumber dana mandiri gresik). jurnal administrasi bisnis. vol 34 no. 1 robbins, s. p. & timothy a. j. 2018. perilaku organisasi edisi ke-12. jakarta: salemba empat. sinambela, l.p. 2016. manajemen sumber daya manusia. jakarta: bumi aksara. sopiah. 2013. perilaku organisasi. yogyakarta: andi. subekhi, a. and, jauhar, 2013, pengantar manajemen sumber daya manusia, jakarta: prestasi pustaka jakarta. sugiyono. 2016. statistika untuk penelitian. bandung: alfabetha. sutrisno. 2015. manajemen sumber daya manusia. yogyakarta: ekonisia. sutrisno, edy. 2016. manajemen sumber daya manusia. jakarta: kencana prenada media group. wijono, s. 2015. psikologi industri dan organisasi. jakarta: kencana. zurnali, c. 2015. learning organization. competency. organizational commitment. and customer orientation: knowledge worker kerangka riset manajemen sumber daya manusia masa depan, bandung: unpad press. correspondence to : iriani.ismail@yahoo.com received: 11 nov 2022 revised: 21 nov 2022 accepted: 2 dec 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 4, 2022, pp. 81 87 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction one of the centers of herbal medicine production is the island of madura, especially in bangkalan regency. madurese herbs are known as ingredients that have various benefits for health, both for care and treatment. madurese herbs are not only known in the madura region, but also known in the local area of east java, various regions and islands in indonesia, and even abroad such as brunei darussalam, saudi arabia, hong kong, malaysia, singapore, korea and japan. this madurese herbal medicine has its own uniqueness compared to other herbal medicines, namely its fresh bitter taste, the smell is typical of spices (mudjijono et al., 2014:1). the table above shows that the growth of the herbal medicine industry in bangkalan regency continues to increase every year. especially the largest is in bangkalan subdistrict, where there are 28 herbal medicine industries. although the growth of the herbal medicine industry in bangkalan district continues to increase, the facts on the ground show that the performance of the herbal medicine industry has decreased after the covid 19 pandemic. this declining performance is characterized by a decrease in sales, as shown in the following diagram. figure 1. sales performance most of the herbal medicine industry in bangkalan sub-district is still conventional, both the production process, marketing, operations and even recording still use conventional methods. so that the development of the industry is slower in keeping up with the times. this causes the herbal medicine industry to compete with other herbal medicine companies, due to different levels of efficiency and more sophisticated management and equipment. the success or 0 10.000 20.000 2018 2019 2020 2021 2022 percent percent the effect of training and leadership style on the performance of employees of herbal and spice businesses in bangkalan sub-district iriani ismail1 , afifatul khoiriyah2 1management, faculty of economics and business, tunojoyo university madura, indonesia 2management, faculty of economics and business, tunojoyo university madura, indonesia abstract the growth of the herbal medicine industry is increasing from year to year. the market opportunities for the herbal industry both at the national and international levels are getting bigger, but the facts on the ground are that the performance of the herbal industry is decreasing over time. the decline and improvement of an industry cannot be separated from the quality of its human resources. this study aims to determine the effect of training, leadership style on employee performance both simultaneously and partially. this research uses quantitative methods. the population of this study were 53 employees in the herbal medicine industry in bangkalan district. based on this population, the determination of the sample using saturated sampling technique. the results of this study indicate that: (1) partially training and leadership style have a positive and significant effect on employee performance (2) training and leadership style simultaneously or together have a positive and significant effect on employee performance. keywords training; leadership style; employee performance journal of accounting, management and economics, vol. 24, no. 4, year, pp. 81-87 decline of an organization is inseparable from the activities and quality of human resources, especially employees in this industry. therefore, improving the performance of human resources is necessary to overcome the problems that occur. performance is the ability of an organization to achieve its goals by utilizing resources effectively and efficiently. (bukit et al., 2017: 85). poor employee performance will directly affect company performance, thus disrupting company stability. in order for an organization to have good performance, it is very necessary to improve the quality of human resources. quality human resources can be realized by implementing human resource development that leads to training, coaching and education. (ismail, 2016). training can help overcome performance problems caused by a lack of adequate job knowledge on the part of employees. (bin othayman et al., 2022).. the training available in the herbal medicine industry is generally training by providing instructions to employees on how to carry out work or also called training with the on the job training method. there are also herbal medicine industries that carry out training both in the house and public training types. in the house training is training by inviting instructors from both internal and external organizations to provide training to employees. meanwhile, public training is training by sending selected employees to attend training organized by external parties, such as blk and so on. good human resource training will improve employee performance, and conversely inadequate resource training will reduce productivity and ultimately reduce company revenue. (yuniawati, 2022). in addition, the success of an organization in improving employee performance is none other than the success of the leadership style carried out by a leader. according to handoko (2013: 292) leadership is the ability a person has to influence other people to work towards achieving goals and objectives. leadership values are closely related to a person's ability to influence others to work in accordance with the expected goals. leadership is the style of a leader to direct, coordinate and foster subordinates to cooperate and work productively to achieve company goals. (ansory & indrasari, 2018: 82). the leadership style of a company is expected to provide the necessary approach and supervision of employee performance and reduce negative stress for employees (kurniawati & troena, 2013).kurniawati & troena, 2013). a leader must be able to understand the type of leadership style, and adjust his leadership style to the conditions of the organization he leads, so that the leadership style used can increase work motivation and employee performance. (hanafi, almy, & siregar, 2018). the research conducted by basuki, setyawan, & wajdi (2017) showed that leadership style has a positive effect on employee performance.) shows that leadership style has a positive and insignificant effect on employee performance, thus the superior's leadership style positively affects employee performance. in a direct interview conducted by researchers in the jamu and spice industry in bangkalan sub-district which still survives today, it shows that the communication between leaders and employees is quite good. employees are often considered as their own family so that they feel comfortable and at home working in this herbal medicine industry. in addition, leaders are also quick to respond to problems faced by employees, such as work accidents and personal problems. so that employee performance is not disturbed even though they have various problems, because leaders are responsive in helping employees to overcome these problems. based on the information obtained, this study aims to determine the effect of training and leadership style on employee performance both partially and simultaneously. research methods this research uses quantitative research. quantitative research is research that is structured and quantifies data to be generalized. (kurniawan & puspitaningtyas, 2016: 19). the location of this research is carried out at ikm jamu and spices in bangkalan district. the object of this research was conducted to employees of the jamu industry in bangkalan district. the data sources of this research are primary data sources and secondary data. the population in this study amounted to 53 employees of herbal and spice smis in bangkalan subdistrict. for sampling, researchers used saturated sampling technique, which is a sampling technique in which all members of the population are sampled (sugiyono, 2017: 85). (sugiyono, 2017: 85) this study uses three instruments used in measuring training, leadership style and employee performance. the training variable journal of accounting, management and economics, vol. 24, no. 4, year, pp. 81-87 is measured using a questionnaire with a total of 10 item statements with reference to the indicators put forward by mangkunegara (2014: 51) namely trainers, participants, materials, methods, goals and objectives. then the leadership style variable was measured using a questionnaire with a total of 9 statements. the indicators used in this study refer to hersey and blanchard in ansory & indrasari (2014: 51). ansory & indrasari (2018: 92) namely directing, consultative, participative and delegative. the performance variable is measured using a questionnaire with a total of 8 statements. the indicators used as a reference for this study refer to the indicators of mangkunegara (2015). mangkunegara (2015:75) namely quantity, quality, task execution and responsibility. all statement instruments are measured using a five likert scale, namely 1 = strongly disagree to 5 = strongly agree. the data collection technique used by researchers is in the form of a questionnaire or questionnaire method technique distributed to the sample and also in the form of direct interviews. the data analysis used is statistical analysis of validity and reliability tests to test the research instrument, classical assumption test, coefficient of determination and multiple linear regression analysis test to test the hypothesis. the multiple linear regression analysis model is formulated as follows: y = a +β1+x1+ β2x2+e description: y = employee performance a = constant β1, β2= regression coefficient x1 = training x2 = leadership style e = error in testing the hypothesis using simultaneous influence test with f test and partial influence test with t test. the research model is as follows: figure 2.research model from the research model, it can be seen that the independent variables or independent variables (x) are training and leadership style. while the dependent variable or dependent variable (y) is employee performance. with the hypothesis used is as follows h1: it is suspected that training partially affects employee performance. h2: it is suspected that leadership style partially affects employee performance. h3: it is suspected that training and leadership style simultaneously affect employee performance. results and discussion the questionnaire in this study was tested for validity and reliability. the validity test is a test to determine the validity of a question item used to measure the variable to be studied. (kurniawan & puspitaningtyas, 2016: 97). in testing the validity and reliability of each variable, using the spss 21.0 for windows program. validity is measured by comparing the correlation coefficient value with the r table value. the value of r product moment table at α = 0.05 and n = 51 (53-2) is 0.2706. from the data processing, it is known that all indicators have a positive correlation coefficient and are greater than r table and have a probability smaller than α = 5%. this means that there is a significant relationship between the scores of each indicator. a significant correlation indicates that the existing indicators can really be used to measure the variables to be measured because the instruments used are valid. thus it can be used in research. based on the calculation, it can be seen that 10 statement items on the training variable (x1) are declared valid because rcount> rtabel (rcount> 0.2706) with a range of 0.655 to 0.843 which means it exceeds the significant limit. furthermore, the leadership style variable (x2) is declared valid because rcount> rtabel (rcount> 0.2706) with a range of 0.520 to 0.733 which means it exceeds significant limits. and finally, based on calculations, it can be seen that 8 statement items on the employee performance variable (y) are declared valid because rcount> rtabel (rcount> 0.2706) with a range of 0.509 to 0.746 which means it exceeds significant limits. reliability testing is carried out on question items that are already valid. the instrument is said to be reliable if the cronbach's alpha value or reliability value is more than 0.6. the reliability test results in the table show that cronbach's alpha is greater than 0.6 so that training (x1) leadership style (x2) employee performance (y) journal of accounting, management and economics, vol. 24, no. 4, year, pp. 81-87 the instrument is declared reliable. the reliability test results obtained are as follows: next is the data normality test. a data that will be processed in a study can be known to be normal or not by doing a normality test. the kolmogorov smirnov test is used to test whether a data is normal or not. data is said to be normal if the probability is less than 0.05, while it is abnormal if the probability is more than 0.05 (sudarmanto in gunawan, 2017). gunawan, 2017). based on the table above the sig value. 0.473 ≥ 0.05, then the data is said to be normally distributed. in testing for a strong relationship between independent variables, a multicollinearity test is performed. if vif <0.10, multicollinearity occurs, otherwise multicollinearity does not occur if the vif value is> 0.10 (karim and hadi in gunawan, 2017: 103). the results of this research analysis show the vif (variance inflation factor) value <10 and tolerance> 0.1, thus explaining that there is no multicollinearity in the regression model used. to detect whether there is heteroscedasticity or not, a heteroscedasticity test is carried out using scatterplots. a model can be said to be free from the suspicion of heteroscedasticity if the points in the plot do not form a certain pattern. (gunawan, 2017). the heteroscedasticity test in this study shows that the data is spread randomly and does not form a certain pattern. so it can be concluded that heteroscedasticity does not occur. the following is the coefficient of determination test table to see the effect of leadership style on employee performance. table 1 determination coefficient test model r r square 1 .732a .535 source: data processed 2022 the r value (correlation coefficient) obtained from the table above is 0.732. thus it can be concluded that the relationship between training and employee employment has a high correlation with r2 (coefficient of determination) 0.535 (53.5%). from these results it can be concluded that the training and leadership style variables have an influence of 53.5% on employee performance. in contrast, the remaining 46.5% is caused by other variables not examined in this study. the training variable has a positive effect on performance with a regression coefficient of 0.260 and a tcount> ttable value (3.178> 2.008). this coefficient value is positive, meaning that h1 in this study is accepted. because there is a positive influence between training and employee performance. if training is improved, it can improve employee performance. conversely, if the training is not good, it will cause a decrease in employee performance. the results of this study are in accordance with research f. yusuf et al. (2020) with the title the influence of training on employee performance in pt pelni (persero) jakarta. from the results of the study it was concluded that training had an impact on employee performance at pt pelni (persero) jakarta. the correlation calculation result of 0.838 shows that training has a strong relationship with employee performance at pt pelni (persero) jakarta. the coefficient of determination is 0.702, meaning that the training variable (x) affects employee performance (y) by 70.2% and the remaining 29.8% is influenced by other variables. then the linear regression equation is known to be 0.816, indicating that training has a positive influence on employee performance. then the research sihotang, hermani, & wiiartanto (2014) showed that compensation, job training, and employee performance have a positive influence on employee performance.) shows that compensation, job training, and organizational culture have a strong, significant and also positive influence on the performance of marketing department employees both simultaneously and partially. based on these results, companies should increase the variety of types of compensation, increase the amount of compensation, organize job training more often, adjust training materials according to needs and support and encourage employees in decision making and work risks. the leadership style variable with a coefficient level of around 0.314 and a tcount level above the table (3.324> 2.008) has a positive effect on employee performance. the positive coefficient value indicates that the relationship between the leadership style variable and employee performance is good. h2 in this study is accepted. because there is an effect of leadership style on employee performance partially. a better leadership style will improve employee performance and a less good one will make employee performance decrease. this research is in accordance with research rindyantama & astuti (2017) . his research explains that the leadership style perceived by employees has a positive and journal of accounting, management and economics, vol. 24, no. 4, year, pp. 81-87 significant effect on employee performance. this leadership style prioritizes respect for individual goals, so that individuals are confident to meet their expectations. this means that if the manager's leadership style is good and accepted by teachers and employees, then employee performance will be good and able to achieve goals. the results of this study also confirm the research of utama (2015) that professional training, leadership and work environment have a significant effect on employee performance. f table is more than 3.18 when df1 = 2 and df2 = 50 are used. on the other hand, f count has a value of 28.779. fcount > ftable, so h0 is rejected and ha is accepted. sig. (p = 0.000) < sig. (p=0.05) means h0 is rejected. there is a simultaneous influence between training and leadership style on employee performance. this research is in accordance with research purba (2016) training and leadership style can simultaneously or partially affect employee performance, so that the 3rd hypothesis in this study can be accepted. conclusion based on the results of the study and the explanation above, the analysis of the study is that there is a positive and significant influence on employee performance in ikm herbs and spices in bangkalan district. thus, employee employment will increase along with the improvement of training quality. then, partially, leadership has a positive and significant effect on employee performance in herbal and spice smis in bangkalan district. the findings show that performance increases when the leadership style used is in accordance with company conditions. then training and leadership style together affect employee performance. this means that training plays an important role in improving employee performance and it should also be noted that the appropriate leadership style can also improve the performance of ikm jamu and spices employees in bangkalan district. based on these conclusions, researchers provide suggestions to the herbal medicine industry with the aim of improving performance, including for the herbal medicine industry, it is hoped that the training held later can be evenly distributed to all employees, not only employees who have less skills, but to all employees in order to improve skills so that employees can develop. then a leader needs to adjust his leadership style to the ongoing situation in order to form good working conditions, so that employee performance can improve because leadership style greatly affects subordinate performance. the limitations of this study on the number of samples of only 53 people so that it does not describe the actual situation and in the process of collecting data the information provided by the respondents does not show the actual situation of the respondents due to different assumption or understanding factors or due to honesty factors. suggestions for further researchers are to increase the number of samples so that the accuracy of the data is even better and it is hoped that researchers will add other variables that affect many things in this study. references ansory, al fadjar, & indrasari, meithiana. 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(2020). the influence of training on employee performance in pt. pelni (persero) jakarta. journal of reseacrh in business, economics, and education, 2(3). retrieved from http://e-journal.stiekusumanegara.ac.id journal of accounting, management and economics, vol. 24, no. 4, year, pp. 81-87 list of tables table 1. the t-test model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 10,298 2,868 3,590 ,001 training ,260 ,082 ,396 3,178 ,003 leadership style ,314 ,094 ,414 3,324 ,002 table 2. test f model sum of squares df mean square f sig. 1 regression 559,810 2 279,905 28,779 .000b residuals 486,303 50 9,726 total 1046,113 52 a. dependent variable: employee performance b. predictors: (constant), leadership style, training source: data processed 2022 jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 3, 2022, pp. 1-6 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to: amurjani@bps.go.id received: 6 june 2022 accepted: 6 aug 2022 published: 1 sep 2022 introduction to date, the energy subsidy reform in indonesia is still in progress. based on the indonesian ministry of finance (laporan keuangan pemerintah pusat tahun 2020 (audited)), the subsidized energy goods in indonesia comprise automotive diesel oil (ado), kerosene, liquid petroleum gas (lpg), and electricity. the subsidy for gasoline (research octane number/ron 88) has been dismantled in 2015 by taking the momentum of the declining trend of world oil prices (murjani, 2020). however, in march 2022, the distribution of the unsubsidizedgasoline ron 88 has been stopped and the government of indonesia started to subsidize the gasoline ron 90 (so-called pertalite). this is based on the decree of the indonesian ministerial of energy and mineral resources (2022) that replaces the assignment for gasoline ron 88 with gasoline ron 90. eventually, a new episode of the energy subsidy has been started. rising world oil prices as a result of the russia-ukraine conflict in 2022 have affected the fuel prices in indonesia. as a result, the government of indonesia has set the higher ron of gasoline prices higher and maintained the price of ron 90 gasoline by subsidization. the kerosene-to-lpg conversion process is also in progress. the government gradually reduces the subsidy for kerosene. from 2019 to 2020, the kerosene subsidy declined from around 2.9 trillion idr to 1.2 trillion idr. for electricity, the pricing scheme is according to the regulation of indonesian ministerial of energy and mineral resources number 3, 2020. in 2020, due to the covid-19 pandemic, the poor households received the free charge of electricity (for the 450va households) and a 50% discount for the 900va household (indonesian ministry of finance, 2021). it is evident that the government of indonesia on one side deals with the covid-19 pandemic, other shocks (i.e., geopolitical conflict), and the budgetary adjustments; on the other side, needs to continue the energy subsidy reform amidst this turmoil. the inputs for the further possible energy reform are necessary. this paper provides the research on the income and price elasticity of demand for the selected energy goods particularly the subsidized energy goods by taking the year 2021 in the locus of south kalimantan province of indonesia. this paper advances from others on the same topic in terms of the utilization of the most current data and econometrics modeling. the structure of this paper is the introduction, literature review, demand for energy goods in south kalimantan: the application of the censored quaids model ahmadi murjani1 1bps-statistics of south kalimantan province abstract the energy subsidy reform in indonesia is still being implemented amidst many obstacles. the policy that is taken by the government certainly needs many inputs to produce a wellplanned energy subsidy reform policy. one of the inputs is the elasticity of demand for the selected energy goods. income and price elasticity of demand are two common numbers utilized in the policy simulation. with a long timeline of the energy subsidy reform episodes, the values of such elasticities are needed to be recalculated to accommodate the dynamics of the policy. this paper aims to estimate the income and price elasticity of demand for some energy goods in indonesia such as electricity, gasoline, diesel oil, kerosene, and lpg. after employing the censored quaids model implemented in the south kalimantan province of indonesia, this paper arrived at conclusion. first, among all selected energy goods, gasoline, diesel oil, and kerosene are classified as luxury goods whereas electricity and lpg are necessity goods. second, only kerosene is found price elastic among other energy goods. keywords elasticity; energy goods; demand; quaidsce; south kalimantan jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 1-6 research method, result and discussion, and conclusion. literature review the studies for the calculation of the income and price elasticity of demand for energy goods in the world are available yet not too extensive; moreover, the study cases in indonesia are still limited. table 1 provides some studies available in indonesia. ----------------------------------------- insert table 1 in here table 1 shows the differences in the elasticities of demand, particularly in the price elasticity of demand. the utilizations of the duv, aids, and quaids models are very limited in indonesia, especially on the energy demand system; although some studies in the energy context are also available from another locus outside indonesia. this paper highlights its uniqueness compared to previous studies from two perspectives: (1) the process of the energy subsidy reform in indonesia is very dynamic, and chosen period of examination affects the result; hence, this paper utilizes the most recent data available. (2) the censoring issue was not fully accounted for; although renner et al. (2019) addressed it in their research, the chosen energy goods didn’t include diesel oil/ado, which is also subsidized by the government of indonesia. thus, this paper includes ado in the demand system. moreover, this paper accounts for censoring in the estimation stage to overcome the possible bias from occurrences of zero consumption in energy demand.1 this paper utilizes the data in the locus of south kalimantan province of indonesia from the 2021 household survey. research method data this paper utilizes the national socioeconomic survey (susenas) from the march 2021 wave survey. for the chosen locus, which is the south kalimantan province of indonesia, the total number of samples is 8,239 households. from susenas data, some variables are extracted such as total monthly expenditure (idr), monthly 1 the censored model hasn’t been addressed by poi (2012) and lecocq & robin (2015). this paper employs caro et al. (2021b) stata module. expenditure for energy goods (electricity, gasoline, ado, kerosene, and lpg), total quantity consumed for energy goods, household size, rural-urban areas, age, education, and gender. age, education, and gender refer to the household’s head. for the price, it will use the unit value approach, which is dividing total expenditure by total quantity. for the zero price, the price is assumed same for households living in the same neighborhood; thus, the median value of the price is used.2 econometrics modelling this paper utilizes the quaids model (banks et al., 1997) as a modification of the classical aids model developed by deaton and muellbauer (1980) to calculate the income and price elasticity of demand for energy goods. the quaids model can be written in the specification as follow (caro et al., 2021a): 𝑤𝑖 ℎ = 𝛼𝑖 + ∑ 𝛾𝑖𝑗 𝑙𝑛 𝑝𝑗 ℎ𝐽 𝑗=1 + 𝛽𝑖 {𝑙𝑛 𝑦 ℎ − 𝑙𝑛 𝑎(𝑝)} + λ𝑖 {ln 𝑦ℎ−ln 𝑎(𝑝)} 2 𝑏(𝑝) + ∑ 𝜂𝑖𝑘 𝑧ℎ𝑘 𝐾 𝑘=1 + 𝑢𝑖 ℎ ℎ = 1, … , 𝐻; 𝑖, 𝑗 = 1, … , 𝐽; 𝑘 = 1, … , 𝐾 (1) where, 𝑤𝑖 ℎ : budget share of the 𝑖th energy good obtained from the expenditure of the 𝑖th energy good divided by total energy goods expenditures. 𝛼𝑖 , 𝛽𝑖 , 𝛾𝑖𝑗 , 𝜂𝑖𝑘 , λ𝑖 : parameters in the demand system. 𝑝j ℎ : price of the 𝑗th energy good faced by household ℎ. 𝑦ℎ : total expenditure of energy goods of household ℎ in the demand system. 𝑎(𝑝), 𝑏(𝑝): price aggregators defined as 𝑙𝑛 𝑎(𝑝) = 𝛼0 + ∑ 𝛼𝑖𝑗 𝑙𝑛 𝑝𝑗 ℎ𝐽 𝑗=1 + ∑ ∑ 𝜂𝑖𝑘 𝑧ℎ𝑘𝑘𝑗 𝑙𝑛 𝑝𝑗 ℎ + 0.5 ∑ ∑ 𝜂𝑖𝑗 𝑙𝑛 𝑝𝑖 ℎ 𝑗𝑖 𝑙𝑛 𝑝𝑗 ℎ . 𝑏(𝑝) = exp (∑ 𝛽𝑖 𝑙𝑛 𝑝𝑗 ℎ ) 𝐽 𝑗=1 . 𝑢𝑖 ℎ : error terms. 𝐻, 𝐽, 𝐾 : number of households, categories, and shifters. some regressors are incorporated into equation (1) through 𝛼𝑖 which is: 2 murjani (2020) elaborated the determination of median price starting from census block, regency, and province. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 1-6 𝛼𝑖 = 𝛼𝑖 ∗ + ∑ 𝛼𝑖𝑘 ∗ 𝑑𝑘 𝑚 𝑘=1 (2) where, 𝛼𝑖 ∗ : the intercept of the 𝑖th energy good. 𝛼𝑖𝑘 ∗ : the coefficient of the 𝑖th energy good for 𝑘th demographic variable. 𝑑𝑘 :the value of 𝑘 th demographic variable. the demographic variables utilized in this paper comprise household size, urban or rural areas of the living place, income groups classification (bottom 40% and top 60%), age of household head, education of household head (holding a college degree and not), and gender of the household’s head (male and female). the quaids model in this paper imposes some restrictions in equation (1) such as: adding up: ∑ 𝛼𝑖 = 1, 𝐽 𝑖=1 ∑ 𝛽𝑖 = 0, 𝐽 𝑖=1 ∑ 𝜂𝑖𝑘 = 𝐽 𝑖=1 0, ∑ λ𝑖 = 0, 𝐽 𝑖=1 homogeneity: ∑ 𝛾𝑖𝑗 = 0, 𝐽 𝑗=1 and symmetry: 𝛾𝑖𝑗 = 𝛾𝑗𝑖 . for the censored observation, it follows shonkwiler and yen (1999) method, the latent budget share 𝑤𝑖 ∗ℎ is related to the observed budget share where 𝑤𝑖 ℎ = 𝑏𝑖 ℎ 𝑤𝑖 ∗ℎ . 𝑏𝑖 ℎ is a binary variable that has a value equal to 1 for non-zero expenditure and 0 otherwise. the unconditional expected value of the system from equation (1) can be expressed as 𝑤𝑖 ∗ℎ = φ(𝑧ℎ ′ 𝜃𝑖 )𝑤𝑖 ℎ + 𝛿𝑖𝜙(𝑧ℎ ′ 𝜃𝑖) + 𝑖 , where φ and 𝜙 are the standard normal variable of cumulative and density distribution function. the steps for estimating the censored observations are as follows. (1) estimating a univariate probit equation 𝑏𝑖 ℎ = 𝑧ℎ ′ 𝜃𝑖 ∀ 𝑖, where 𝑧ℎ is a vector of regressors containing prices and demographic variables. (2) φ(𝑧ℎ ′ �̂�𝑖 ) and 𝜙(𝑧ℎ ′ �̂�𝑖 ) are calculated and inserted in the second stage so that: 𝑤𝑖 ∗ℎ = φ(𝑧ℎ ′ �̂�𝑖 )𝑤𝑖 ℎ + 𝛿𝑖 𝜙(𝑧ℎ ′ �̂�𝑖 ) + 𝑖 (3) to obtain the income and price elasticity by incorporating equation (3) into equation (1), the differentiation of equation (1) w.r.t 𝑦 and 𝑝 produces: 𝜇𝑖 = 𝛽𝑖 + 2λ𝑖 {ln y−ln 𝑎(𝑝)} 𝑏(𝑝) (4) 𝜇𝑖𝑗 = 𝛾𝑖𝑗 − 𝜇𝑖 (𝛼𝑗 + ∑ 𝛾𝑖𝑗𝑗 𝑙𝑛 𝑝𝑗 ℎ)−λ𝑖 𝛽𝑗 {ln y−ln 𝑎(𝑝)}2 𝑏(𝑝) (5) the expenditure and uncompensated elasticities are expressed respectively as: 𝑒𝑖 = 1 + 1 𝑤𝑖 ∗ {φ𝑖 𝜇𝑖𝑗 + 𝜃𝑖,ln(𝑝𝑗)𝜙𝑖 [𝑤𝑖 − 𝛿𝑖 (𝑧 ′𝜃𝑖 )]} (6) 𝑒𝑖𝑗 𝑢 = −𝛿𝑖𝑗 + 1 𝑤𝑖 ∗ {φ𝑖 𝜇𝑖𝑗 + 𝜃𝑖,ln(𝑝𝑗)𝜙𝑖 [𝑤𝑖 − 𝛿𝑖(𝑧 ′𝜃𝑖 )]} (7) where, 𝛿𝑖𝑗 is kronecker delta that has a value equal to 1 when 𝑖 = 𝑗, otherwise the value is 0. it is important to note that when φ𝑖 → 1 and 𝜙𝑖 → 0, the elasticities from equations (6) and (7) converge into standard quaids. result and discussion energy expenditure elasticities (income elasticities of demand) expenditure elasticity of demand (or in other terms income elasticity of demand) exhibits the percentage changes of quantity goods demanded by a percent change in income. hence, the good is classified as a normal good if the income elasticity is positive and less than 1. further, the good is classified as a luxury good if it has a positive income elasticity and more than 1. for a negative income elasticity, the good is considered an inferior good. table 2 shows the energy expenditure elasticities for electricity, gasoline, ado, kerosene, and lpg. ----------------------------------------- insert table 2 in here table 2 exhibits some findings regarding the classification of the energy goods, and this is highly related to the dynamics in the energy subsidy reform in indonesia. murjani (2020) found that in 2012 the income elasticities of demand for subsidized energy goods in indonesia are positive and more than unity only for gasoline and ado (the rest was positive and less than 1). the result is similar to the result of table 2 except for kerosene being classified as a luxury good in 2021. the data from the indonesian ministry of finance shows that the kerosene subsidy keeps declining inferring that the unsubsidized kerosene is consumed more by households. moreover, the fuel for cooking now is dominated by lpg and as from table 2 classified as a normal good. for electricity, it is considered a normal good since the value of income elasticity is less than 1. uncompensated price elasticities of demand (ped) the good is considered price elastic if it has the ped (in an absolute value) more than 1. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 1-6 on the other hand, a good that has a ped of less than 1 is considered price inelastic. the estimation result for ped by using the censored quaids specification can be seen in table 3. ----------------------------------------- insert table 3 in here it is seen in table 3 that only kerosene has a ped of more than 1 whereas the other energy goods have a ped of less than 1. this finding can be elaborated in two ways. first, kerosene has a substitution good which is lpg, this makes the value of the price elasticity of demand for kerosene is price elastic. specifically, a 1% increase in kerosene price will make the quantity of demanded kerosene decrease by 1.198%, and vice versa. the possible substitution good for kerosene, which is lpg, is also important to highlight. based on the calculation in this research, the cross-price uncompensated ped for kerosene to lpg equals 0.001, meaning that a 1% increase in kerosene price will make the quantity demanded lpg increase by 0.001% inferring that lpg is a substitution good for kerosene. second, having that most the energy goods have inelastic peds, the energy subsidy reform (i.e., price increases of energy goods due to subsidy cuts) should be done carefully and gradually. for kerosene, on the other hand, the reform can be continued by keep reducing the subsidy and continuing the kerosene-to-lpg conversion program. the energy subsidy reform that is implemented in form of subsidy cuts resulting in an increased price of the energy goods should be done at a right time with precisely selected goods. this is to avoid unwanted inflationary impact and increasing poverty due to declining in real income as well as increasing poverty line. conclusion the energy subsidy reform in indonesia is still being implemented with various obstacles in its timeline. some research investigated the income and price elasticity of demand for energy goods in the world, but only a few have been done in indonesia. the price elasticity of demand is a common indicator to utilize in the policy reform simulation, and energy good is no exception. this paper investigates the price and income elasticity of demand for selected energy goods in the south kalimantan province of indonesia using the 2021 survey data to review the current situation of energy goods in indonesia. the issue of the censored observation in the household survey data, the situation when the household doesn’t consume the goods at the survey time, has been a concern in the demand system study. this paper aims to overcome the issue by utilizing a censored quaids model that is relatively new in the energy demand system, especially in indonesia. this paper found some finding as follow. first, the income (or expenditure) elasticities of demand for selected energy goods have a value of more than 1 for gasoline, ado, and kerosene. these goods are categorized as luxury goods. kerosene, that known for the goods for low-income households, has changed a lot since the lpg utilization dominates the source of cooking fuel. kerosene is now harder to find, and it is found normally at an unsubsidized price. for electricity and lpg, those have a value of the income elasticity of demand by less than 1; so, those are categorized as normal/necessity goods. second, the price elasticities of demand for all selected energy goods are negative and less than 1 (price inelastic) except for kerosene which has a negative value of more than 1 (price elastic). further, lpg is a substitution good for kerosene. for recommendation, this paper highlights the importance of examining the elasticities of the subsidized energy goods before implementing the subsidy reform. many of the energy goods have inelastic demand, meaning that the increasing prices due to the reform will make the households reduce their consumption by less than the percentage increase of the price. a well-planned energy subsidy reform will avoid a higher poverty rate as the possible effect of the subsidy cuts. lastly, the government should keep the supply of subsidized energy goods stable to avoid scarcity that can lead to inflation. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 1-6 references banks, j., blundell, r., & lewbel, a. 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(2019). the effects of energy price changes: heterogeneous welfare impacts and energy poverty in indonesia. environment and development economics, 24(2), 180–200. https://doi.org/10.1017/s1355770x18000402 shonkwiler, j. s., & yen, s. t. (1999). two-step estimation of a censored system of equations. american journal of agricultural economics, 81(4), 972. https://doi.org/10.2307/1244339 jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp. 1-6 list of tables table 1. previous studies of demand for energy goods in indonesia author region method year result olivia & gibson (2008) java deaton unit value (duv) 1999 electricity is the only price elastic energy goods bhakti (2011) java almost-ideal demand system (aids) 2007-2010 all the energy goods examined are price elastic murjani (2017) tabalong regency, south kalimantan aids and quadraticaids (quaids) 2016 all the energy goods examined are price inelastic renner et al. (2019) indonesia quaids 2009-2013 gasoline and lpg are the only price elastic energy goods for the lowest and highest decile of the income group murjani (2020) indonesia aids-ills 1999 and 2012 all the energy goods examined are price elastic source: murjani (2021). table 2. energy expenditure elasticities in south kalimantan using censored quaids model, 2021 energy goods 𝑒𝑖 standard error classification electricity 0.513 0.050 normal/necessity gasoline 2.070 0.030 luxury ado 1.400 0.017 luxury kerosene 1.031 0.030 luxury lpg 0.898 0.012 normal/necessity source: author’s estimation. table 3. own-priced uncompensated ped of energy goods in south kalimantan using censored quaids model, 2021 energy goods 𝑒𝑖𝑗 standard error classification electricity -0.803 0.079 price inelastic gasoline -0.910 0.059 price inelastic ado -0.934 0.017 price inelastic kerosene -1.198 0.021 price elastic lpg -0.843 0.008 price inelastic source: author’s estimation. jurnal akuntansi, manajemen dan ekonomi vol. 25, no. 01, 2023, pp. 1 7 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : marampa.adriana09gmail.com received: 12 des 2022 accepted: 1 jan 2023 published: 15 mar 2023 introduction the management of higher education requires leaders who can manage universities. in higher education there is often a conflict due to a lack of coordination between one person and another. to create a good coordination, a leadership is needed. one of the leadership that can be applied in higher education is servant leadership. russell & gregory stone, (2002) say, that service leaders focus on personal growth and development of followers to maintain the interests of followers. servant leaders show an attitude that can empower and develop people and show a humble, authentic, accepting people as they are, able to provide direction, and steward in working for the common good. (dierendonck & nuijten, 2011). servant leadership has attracted interest in research in the field of organizational studies in the last decade and has received particular attention to the leader's role as servant, and prioritizing the needs of others consequently drives positive organizational outcomes (lapointe & vandernberghe, 2018; liu, 2019; newman et al ., 2017). servant leaders believe they have a duty to steward. they are people-centered and value service to others in general and followers more specifically. servant leadership manifests itself in the care that is exercised by the servant first, to ensure that the highest priority needs of those of others are served. in an organizational setting, servant leaders believe in each employee being able to treat followers with respect and humility. every employee in the organization is the impact of serving leadership, team work on higher education performance adriana madya marampa1, elisabeth pali2, raden lestari3 12management department, universitas kristen toraja, indonesia 3management department, universitas pekanbaru riau, indonesia abstract the purpose of this study was to find out how servant leadership influences team work, how team work influences organizational performance and how servant leadership influences the performance of a tertiary institution. the population in this study are campuses in south sulawesi. the sample of this research is 54 lecturers in one of south sulawesi. the sampling technique was carried out by simple random sampling. data processing method using sem-pls. the novelty of this research is that research on team work with the dimensions of togetherness, trust, emotional closeness, empathy has not been studied much, especially in higher education. the results showed that the relationship between team work (x1) and performance (y) was significant with a t-statistic of 2,149 (> 1.96).). thus the h1 hypothesis is accepted. the results showed that the relationship between servant leadership (x2) and performance (y) was significant with a t-statistic of 2.145 (>1.96). thus the h2 hypothesis was accepted. the results showed that the relationship between servant leadership (x1) and team work (x2) was significant with a t-statistic of 52,645 (> 1.96). thus the h3 hypothesis is accepted. the results showed that there was a significant relationship between team work (x1) and performance (y) through leadership (x2) with a t-statistic of 2,027 (> 1.96). the relationship between variables can be considered significant if the p value is smaller than the predetermined significant value (0.000 <0.05). thus the h4 hypothesis is accepted. keywords team work, covenantal leadership, performance jurnal akuntansi, manajemen dan ekonomi , vol. 25, no. 1, 2023, pp. 1-7 given the opportunity to do meaningful work (saleem et al., 2020). in this study the dimensions used in serving leadership in the tertiary environment are responsibility, influence, empowerment, direction, integrity, treating everyone equally, having a humble attitude and clear vision. the servant leadership style has attracted a lot of attention in the last decade for leadership studies because it is basically focused on serving others first. building a team work within the higher education environment requires servant leadership. the attitude of a serving leader can support the development of team work in tertiary institutions so that they can improve the performance of a tertiary institution. in an organization, it takes a team work to complete a job efficiently and effectively. every company basically wants what has been planned and budgeted to be implemented properly. likewise, universities as one of the organizations engaged in the world of education want what is planned and planned in universities to be carried out properly. one way that can be done to achieve performance in tertiary institutions is to form a team work. in this study, the problem is that many work programs and budgets in tertiary institutions are not carried out properly, causing the performance of tertiary institutions to not be achieved effectively. team work is a very important thing to do to improve a performance. when an organization does team work, everyone in the organization can easily see and learn individual character well, so that what is planned in the organization can be achieved properly and can prevent conflict within the organization. the concept of teamwork is not new in the management literature, because the concept of teamwork forms the basis of the concept of organizational behavior. effective teamwork is an important topic of human resource management, about how top-level managers work effectively as a team and is very important in creating a successful business. (wei & lau, 2012). team work is defined and discussed by several researchers as a work skill that is necessary to achieve the vision, plans and goals of the organization to activate and improve the performance of the workers. teamwork has the ability to enable team members to have a higher level of emotional security, self-confidence and the ability to plan and decide positively on others. likewise, it can help in creating a healthy work environment with workable agendas, creative activities, strategies and positive values. (sanyal & hisam, 2018). teamwork is the collaborative effort of a team to achieve a common goal or complete a task in the most effective and efficient way. in the implications of the organization concerned, teamwork is the key to making the organization able to develop in organizational practice. teamwork is an organizational process in which many organizational and individual components revolve to complement the organizational philosophy (kassim & ramayah, 2015; benar, stewart, lampman, pelak , & solimeo, 2014). in recent decades teamwork has taken on a new meaning in companies, and the results are invaluable. teams have become a critical element in solving problems and helping businesses move forward into the future. advances in technology have made most organizational activities complex so that teamwork is needed. a team is an identifiable set of two or more individuals who interact within a larger organization to achieve a common goal through specific interdependent roles and tasks. the interdependent nature of the tasks in which teams are involved requires individual members to adapt their own inputs and efforts to their teammates to achieve a common goal. teamwork is the collaborative effort of a team to achieve a common goal or complete a task in the most effective and efficient way. when teams have clear goals in mind for completing their tasks, they share a common understanding of which team member must do what and when in the project cycle. the team also communicates more effectively with each other and puts synchronized efforts to complete the team's tasks, which, in turn, turn, serves the purpose of the team within a limited time frame (alice et al., n.d.). in this study the dimensions used in building team work in tertiary institutions are trust, togetherness, communication, skills, abilities, cohesiveness and emotional closeness and empathy. teamwork is defined in terms of the behaviors (eg, reserved behavior, closed communication), cognitions (shared mental models), and attitudes (cohesion, collective efficacy) that create performance. building a work team in a tertiary environment requires servant leadership. the attitude of a servant leader can support the development of team work in higher education so that it can improve the performance of a tertiary institution. analyzing organizational performance is jurnal akuntansi, manajemen dan ekonomi , vol. 25, no. 1, 2023, pp. 1-7 important because it shows whether the organization is going where it intends or not. the performance of a tertiary institution can be achieved with the involvement of a serving leader in forming a team work. team work ingram, (1996) said that teamwork is a disciplined way of working that can be described by the following characteristics: (1) relationships. teams work through face-toface relationships between people in specially formed groups. there is a relationship between relationship quality and team performance. (2) social. people like to gather in groups, and teams represent units of social interaction and potential sources of satisfaction at work. (3) purpose. team members interact with each other to achieve a common goal. in general a source of team failure is that team members interpret tasks in different ways, so results or methods are not clearly visible to the rest of the team. (4) culture. effective groups, including teams, produce their own rules, procedures, and cultures. the term groupthink describes shared values and opinions that can be a source of innovation or can act as a barrier to organizational change. performance ingram, (1996) said, that organizational performance is synonymous with economic results because profits are necessary for companies to continue business. organizational performance is defined as the result or output of an organization compared to its goals and objectives. (manzoor et al., 2011). organizational performance is a measure that shows, an organization's progress, shows how well an organization achieves a goal (hamon 2003). mickan & rodger, (2000) say, that organizational performance is mostly viewed in terms of "criteria such as productivity, net profit, mission achievement or organizational growth. service leadership greenleaf (1977) first proposed the concept of servant leadership, which can be defined as a leadership style in which leaders acknowledge their moral responsibility not only for organizational success but also for their subordinates, their customers, and other organizational stakeholders. according to spears (1996), servant leadership is a new type of leadership model, which places serving others as the number one priority. servant leadership emphasizes service to others. the main principles of the servant leadership framework are rendering service to others, a holistic approach to work, promoting a sense of community, and sharing power in decision making. servant leadership has been recognized as a leadership philosophy that addresses ethical issues (carter & baghurst, 2014). servant leadership has several elements, namely personal integrity, ethical behavior, altruism, and exemplary with an ethical leadership approach (liden et al., 2008) reed et al., 2011) as a developing research area, servant leadership links leadership with ethics, virtue , and morality (lanctot & irving, 2007 ; parris & peachey, 2013). servant leadership on performance jaramillo et al. (2015) found a significant positive relationship between servant leadership and performance. performance is potentially related to leadership when the leader's main focus is to serve followers (joseph & winston, 2005). likewise, the results of huang et al., (2016) show that there is a relationship between servant leadership and performance. based on the literature review above, the hypothesis in this study is: h2: there is a relationship between servant leadership and performance. servant leadership and team work irving, (2005); wong et al., (2018) research results show that there is a relationship between team work and servant leadership. likewise, the research results of moghimi & sadri, (2021) show that there is a relationship between servant leadership and team work. based on the literature review above, the hypothesis in this study is: h3 : there is a relationship between servant leadership and team work methods this study uses a quantitative research method. the population in this study were lecturers in south sulawesi. the sample in this study were 54 lecturers on a campus in south sulawesi. the data collection method in this study was using simple random sampling. the data processing method in this study was using sem pls. in processing pls sem data there are several stages, namely outer model analysis, analysis of the inner model, hypothesis testing. jurnal akuntansi, manajemen dan ekonomi , vol. 25, no. 1, 2023, pp. 1-7 outer model analysis is carried out to ensure that the measurement used is feasible to be used as a measurement (valid and reliable). outer model analysis can be seen from several indicators namely convergent validity and unidimensionality. meanwhile, an analysis of the inner model/structural analysis of the model is carried out to ensure that the structural model built is robust and accurate. evaluation of the inner model can be seen from several indicators which include the coefficient of determination (r2), predictive relevance, goodness of fit index (gof). hypothesis testing is done by looking at the probability value and the t-statistic. for probability values, the p-value with an alpha of 5% is less than 0.05. results and discussion outer model analysis this outer model analysis specifies the relationship between latent variables and their indicators. or it can be said that the outer model defines how each indicator relates to its latent variable. tests performed on the outer model: figure 1. outer model analysis convergent validity convergent validity is used to validate indicators of the variables in terms of the loading factor values. this value will be accepted if the loading factor value is above 0.7 with a minimum value of 0.5. the last check of convergent validity is to look at the ave value. an indicator is considered to have good convergent validity if it has an ave value of more than 0.5. table 1. convergent validity performance (y) servant leadership (x2) team work (x1) x1.1 0.939 x1.2 0.970 x1.3 0.966 x1.4 0.879 x1.5 0.935 x1.6 0.946 x1.7 0.908 x1.8 0.892 x1.9 0.940 x2.1 0.955 x2.2 0.960 x2.3 0.969 x2.4 0.973 x2.5 0.854 x2.6 0.943 x2.7 0.955 y1.1 0.929 y1.2 0.839 y1.3 0.934 y1.4 0.919 y1.5 0.943 y1.6 0.910 discriminant validity the discriminant validity of the measurement model with reflective indicators was assessed by comparing the average extracted (ave) square root value of each construct with the correlation between the construct and the other constructs in the model. if the ave square root value of each construct is greater than the correlation value between the construct and the other constructs in the model, it is said to have a good discriminant validity value (ghozali, 2011). table 2. composite variable ave ave square root performance (y) 0.833 0.913 servant leadership (x2) 0.893 0.945 team work (x1) 0.867 0.931 jurnal akuntansi, manajemen dan ekonomi , vol. 25, no. 1, 2023, pp. 1-7 composite reliability data that has composite reliability > 0.7 has high reliability. table 3. composite reliability composite reliability performance (y) 0.968 servant leadership (x2) 0.983 team work (x1) 0.983 the construct reliability test is carried out by measuring two criteria, namely composite reliability and cronbach alpha. the construct is declared reliable if the value of composite reliability and cronbach alpha is above 0.7. composite reliability test results and cronbach alpha are in the table. from the tables presented, it can be seen that all variables have a composite reliability above 0.7. the reliability test is strengthened by cronbach alpha. the reliability test is strengthened by cronbach alpha. expected value > 0.6 for all constructs. (ghozali, 2011). table 4. construct reliability ave cr perf (y) 0.833 0.913 reliable serv lead(x2) 0.893 0.945 reliable team work (x1) 0.867 0.931 reliable average variance extracted (ave). nilai ave yang diharapkan >0.5. table 5. ave result ave performance (y) 0.833 servant leadership (x2) 0.893 team work (x1) 0.867 inner model testing evaluation of the inner model can be done in three ways. the three ways are by looking at r2, q2 and gof. table 6. inner model result r square r square adjusted performance (y) 0.854 0.848 team work (x1) 0.939 0.938 q2 predictive relevance besides looking at the r-square size, evaluation of the pls model can also be done with q2 predictive relevance or predictive sample reuse to represent the synthetic crossvalidation and fitting functions with predictions from the observed variables and estimates from the construct parameters. the q2 value > 0 indicates that the model has predictive relevance, while the q2 value <0 indicates that the model lacks predictive relevance (ghozali and latan, 2015). q2 measures how well the observed values are generated by the model and also the parameter estimates. the following for testing the inner model can be done by looking at the value of q^2 (predictive relevance). 𝑄2 = 1 − (1 − 𝑅2)(1 − 𝑅2) 𝑄2 = 1 − (1 − 0.8542) (1 − 0.9392) 𝑄2 = 0,967 goodness of fit (gof) test the results of the gof test are obtained by multiplying the mean root value of the communailities with the r-square root mean value. from the results of the gof calculation above, a value of 0.967 is obtained for the team work (x1) servant leadership (x2) construct on performance (y) so that it can be concluded that the model has a large gof and the greater the gof value, the more suitable it is in describing the research sample. the last is to find the value of goodness of fit (gof). in contrast to cb-sem, the gof value in pls-sem must be searched manually. gof = √𝐴𝑉𝐸𝑥𝑅2 ........tenenhaus (2004) gof = √0.864 𝑥0.597 gof = 0.718 according to tenenhau (2004), it is used to validate the performance of the combined measurement model (outer model) and structural model (inner model) whose values range from 0-1 with an interpretation of 0-0.25 (small gof), 0.25-0 .36 (moderate gof), and above 0.36 (large gof). hypothesis test evaluation of the structural model (inner model). after testing the measurement model (outer model) the next step is testing the structural model (inner model) to find out jurnal akuntansi, manajemen dan ekonomi , vol. 25, no. 1, 2023, pp. 1-7 whether the hypothesis can be accepted or rejected. this study will use a significant value (α) of 0.05 or 5%. the relationship between variables can be considered significant if the p value is less than the predetermined significant value (p <0.05). basically this section describes how the research was conducted. the important things from this section are: (1) research design; (2) population and sample (research target); (3) data collection and instrument development techniques; (4) and data analysis techniques. for research using tools and materials, it is important to write down the specifications of the tools and materials. the tool specification describes the sophistication of the tool used while the material specification describes the type of material used. for qualitative research such as classroom action research, ethnography, phenomenology, case studies, etc., it is necessary to add the presence of researchers, research subjects, informants who help collect research data, location and duration of research and a description of the validity check of research results. the table above shows that there is a significant relationship between team work (x1) and performance (y) through leadership (x2) with a t-statistic of 2,027 (> 1.96). the original sample estimate value is 0.451 which indicates that the direction of the relationship is between servant leadership (x2) and performance (y) through team work (x1). the relationship between variables can be considered significant if the p value is smaller than the predetermined significant value (0.000 <0.05). thus the h4 hypothesis is accepted. table 7. hypothesis 1 test o m st dev o/ stdev p val x1 -> y 0.4 0.4 0.230 2.025 0.04 based on the table above, it shows that there is a significant relationship between team work (x1) and performance (y) with a tstatistic of 2,025 (> 1.96). the original sample estimate value is 0.466 which indicates that the direction of the relationship is between team work (x1) and performance (y). the relationship between variables can be considered significant if the p value is smaller than the predetermined significant value (0.000 <0.05). thus the h1 hypothesis is accepted. table 8. hypothesis 2 test o m stde v |o/std ev| p val x2 -> y 0.466 0.456 0.230 2.028 0.043 based on the table above, it shows that there is a significant relationship between servant leadership (x2) and performance (y) with a t-statistic of 2,028 (> 1.96). the original sample estimate value is 0.466 which indicates that the direction of the relationship is between servant leadership (x2) and performance (y). the relationship between variables can be considered significant if the p value is smaller than the predetermined significant value (0.000 <0.05). thus the h2 hypothesis is accepted. table 9. hypothesis 3 test o m stde v o/ stde v p val x2 -> x1 0.9 0.96 0.015 66.4 0.00 based on the table above, it shows that there is a significant relationship between servant leadership (x2) and team work (x1) with a t-statistic of 66,472 (> 1.96). the original sample estimate value is 0.969 which indicates that the direction of the relationship is between servant leadership (x2) and team work (x1). the relationship between variables can be considered significant if the p value is smaller than the predetermined significant value (0.000 <0.05). thus the h3 hypothesis is accepted. table 10. hypothesis 4 test o m stdev o/ stdev p val x2> x1> y 0.451 0.453 0.223 2.027 0.043 conclusion there is a significant relationship between team work (x1) and performance (y) with a t-statistic of 2,025 (> 1.96). this is consistent with the results of choudhary et al., (2013) which showed that there is a relationship between team work and organizational performance. there is a significant jurnal akuntansi, manajemen dan ekonomi , vol. 25, no. 1, 2023, pp. 1-7 relationship between servant leadership (x2) and performance (y) with a t-statistic of 2,028 (> 1.96). this is in accordance with the results of naconha's research, (2021), saleem et al., 2020) which states that there is a relationship between servant leadership and performance. there is a relationship between servant leadership (x2) and team work (x1). this is in accordance with the results of research by bilal et all., (2020) which says that there is a relationship between servant leadership and team work. there is a relationship between team work (x1) on performance (y) through leadership (x2). based on the analysis above, it is necessary to consider that there are many factors or constructs other than the construct in this study, it is necessary to add other variables for further research. references alice, e., bittner, c., & leimeister, j. m. 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(2011). the servant leadership survey : development and validation of a multidimensional measure. 249–267. https://doi.org/10.1007/s10869010-9194-1 huang, j., li, w., qiu, c., yim, f. h. kit, & wan, j. (2016). the impact of ceo servant leadership on firm performance in the hospitality industry. international journal of contemporary hospitality management, 28(5), 945–968. https://doi.org/10.1108/ijchm-08-2014-0388 ingram, h. (1996). team performance management : an international journal linking teamwork with performance. 2(4), 5– 10. irving, j. a. (2005). exploring the relationship between servant leadership and team effectiveness : august. lanctot, j. d., & irving, j. a. (2007). character and leadership : situating servant leadership in a proposed virtues framework. leadership, 6(2007), 26. liden, r. c., wayne, s. j., zhao, h., & henderson, d. (2008). servant leadership : development of a multidimensional measure and multi-level assessment ☆. 19(november 2005), 161– 177. https://doi.org/10.1016/j.leaqua.2008.01.006 manzoor, s. r., ullah, h., hussain, m., & ahmad, z. m. (2011). effect of teamwork on employee performance. international journal of learning and development, 1(1), 110. https://doi.org/10.5296/ijld.v1i1.1110 mickan, s., & rodger, s. (2000). the organisational context for teamwork : comparing health care. australian health review, 23(1), 179–192. moghimi, ; t, & sadri, r. (2021). organizational teamwork and the impact of charismatic management on organizational efficiency and health. journal of humanities insights, 5(1), 15–023. https://doi.org/10.22034/jhi.2021.122570. naconha, a. e. (2021). no 主観的健康感を中心とし た在宅高齢者における 健康関連指標に関す る共分散構造分析title. 4(1), 6. russell, r. f., & gregory stone, a. (2002). a review of servant leadership attributes: developing a practical model. leadership & organization development journal, 23(3), 145–157. https://doi.org/10.1108/01437730210424 saleem, f., zhang, y. z., gopinath, c., & adeel, a. (2020). impact of servant leadership on performance: the mediating role of affective and cognitive trust. sage open, 10(1). https://doi.org/10.1177/2158244019900562 sanyal, s., & hisam, m. w. (2018). the impact of teamwork on work performance of employees: a study of faculty members in dhofar university entrepreneurship in the middle east. iosr journal of business and management, 20(3), 15–22. https://doi.org/10.9790/487x-2003011522 wei, l. q., & lau, c. m. (2012). effective teamwork at the top: the evidence from china. international journal of human resource management, 23(9), 1853–1870. https://doi.org/10.1080/09585192.2011.6103 43 wong, a., liu, y., wang, x., & tjosvold, d. (2018). servant leadership for team conflict management, co-ordination, and customer relationships. asia pacific journal of human resources, 56(2), 238–259. https://doi.org/10.1111/1744-7941.12135 journal of accounting management and economics vol. 20, no. 2, 2018, pp. 50-69 published by faculty of economics and business, universitas jenderal soedirman published online on july, 9 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 onlineissn: 2620-8482  correspondence to : satrio.muntazeri@gmail.com received: may 29, 2018 revised: june 15, 2018 accepted: june 27, 2018 introduction management of human resources very important for any enterprise to manage, organize and utilize worker so that they can work productively to reach the goals of enterprises. nowadays, many organizations or enterprises realize that the element of human in their activity can give competitive advantage to them, this thing is consistent with the statement of porter (1985) that emphasized the role of human resources (hereinafter referred to as the hr) as creator of competitive advantages at any firm. they can make strategy and innovation to achieve the purpose of organization. besides that, human as one of component in organization is determinant‘s resource to achieve organization‘s vision and mission too. because of that, human resources must be managed in such way in order to be useful in achieving what organization want. in every enterprise, human resources usually called as employee in charge of running the activity of enterprise‘s production. employees are an important element in determining the advancement of company or organization, because, the successful of a company or organization can be influenced by human as factor who does all activity in company. to achieve the purpose of company or organization required employees that suitable to requirements within enterprise, and have capability to do job that has been decided by company or organization. capability of employees can be seen by their performance, according to deadrick and gardner's (1997), employee performance could be defined as the record of outcomes achieved, for each job function, during a specified period of time. if viewed in this way, performance is represented as a distribution of outcomes achieved, and performance could be measured by using a variety of parameters which describe an employee's paten of performance over time. on the other hand, darden and babin (1994) said employee's performance is a rating system used in many corporations to decide the abilities and output of an employee. good employee performance has been linked with increased consumer perception of service quality, while poor employee performance has been linked with increased customer complaints and brand switching. so that, every enterprise always tries to increase their employee performance, because, good improvement of employee performance will the impact of education, training and work experience on job satisfaction and job performance (study on bank bri purbalingga) satrio muntazeri1, adi indrayanto2 12department of management, faculty of economics and business, jenderal soedirman university, indonesia abstract the purpose of this research is to confirm and integrate the duggan & horton (2004) and robbins (2005) founding on the effect of career development on job satisfaction, and the impact of job satisfaction on employee performance. existing literatures and researches are only talking about the influence of both career development and job satisfaction as independent variables on employee performance. the sample of this research was 80 employees from bank rakyat indonesia (bri) in purbalingga. those samples are determined using the slovin method. data were calculated and analyzed using the ibm statistical package for social science (spss) version 25. the results of this research indicate that (1) education has a positive and significant influence on job satisfaction. (2) training has a positive and significant influence on job satisfaction. (3) work experience has a positive and significant influence on job satisfaction. (4) job satisfaction has a positive and significant influence on employee performance. keywords career development; education; training; work experience; job satisfaction; job performance journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 51 bring advancement for enterprise, so everything that they expect to become their goals can be achieved. according to maud (2001); performance helps firms, industries and nations to achieve sustainable competitive advantage. industry is a thrust area for countries in their quest for competitiveness. it must be noted that banks which have maintained the momentum of continuous growth, and profitability showed better ratio of manpower effectiveness. each element has crucial sub-components which serve as building blocks for productivity, (rao, 1994). to thrive or survive, banks need to continuously improve quality, attract more customers, and become more cost conscious. in other words, banks need to better increase employee performance. over the years, there are many practices, tools, techniques, systems, and philosophies that aim to help banks to gain the competitive advantage of higher performance. robbins, (2005) and lancaster and jobber, (1994) suggested that job satisfaction can have an effect on several work related results like job performance. the term ―job satisfaction‖ refers to an employee‘s general attitude towards his job. locke (1990) defines job satisfaction as a ―pleasurable or positive emotional state resulting from the appraisal of one‘s job or job experiences.‖ to the extent that a person‘s job fulfills his dominant need and is consistent with his expectations and values, the job will be satisfying. job satisfaction is an important factor in industrial environment. the satisfied workers produce more; the industrial climate is relatively smooth and conductive. the satisfied workers are creative and innovative. in the banking sectors, have witnessed significant changes over the past few years. these changes are supposed to affect their profitability greatly. in addition, banks have become increasingly concerned about controlling and analyzing their costs and revenues, as well as measuring the risks taken to produce acceptable returns. in order to do that highly satisfied work force is an absolutely necessity for achieving a high level of performance advancement. satisfied worker leads to extend more effort to job performance, then works harder and better. thus every bank tries to create a satisfied workforce to operate the wellbeing of the bank (alajlouni, 2015). however, the total performance depends on efficient and effective performance of individual employees. therefore, every bank places a considerable reliance on their individual employee performance to gain high productivity. employee effort is an important factor that determines an individual performance will be. when an employee feels satisfied about the job, he/she is motivated to do grater effort to the job performance. then it tends to increase the overall performance of the bank. in other words, a satisfied individual employee and his effort and commitment are crucial for the successfulness of the bank. job satisfaction also depended on an individual‘s ability to recognize and follow his or her interest. according to henderson, (1999-2000) when the popular literature began suggesting deeper meaning in work these traditional studies and assessments techniques began to have an empty ring for both individuals and career development professionals. career development is directly linked to the satisfaction of employee in a way that employees feel value from their supervisors and organization as their goals are being focused and achieved, they get recognition because along with their own goals organizational goals are also being satisfied. so employees become more satisfied with their job and would never want to leave the organization and also organization wants to retain its golden employees to achieve its objectives and long term corporate goals. that‘s why organization should have to invest in ongoing employee career development programs to make both employee as well as organization successful (duggan & horton, 2004). according to handoko in megita (2014) said that career development have three dimensions, there are education, training and work experience. first, education is one of the requirements to be able reach a position. education is an activity to increase the mastery of theory and skills to solve on issues concerning the job to achieve goals. second, training is a process of teaching certain knowledge, skills and attitudes so that employees are more skilled and be able to perform responsibilities better, and finally, training can helps employee to achieve the corporate goals. and the last, work experience is the level of mastery of knowledge and skills of a person that can be measured from one's lifetime. although there are many researches concludes that each dimensions of career development have positive relationship to job journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 52 satisfaction, such as, kim (2008) said that if employees are satisfied with the job, and if their personality traits are expressed and perceived by the organizations, the customer will perceive all this through the service received. it is obvious that customers very emphasize the treatment by employees during the consumption of certain services and the treatment is highly connected to the educational level of employees. beside that, elnaga & imran (2013: 139) states employees that perceive their training beneficial will be more satisfied than those who get no training or training of no value. furthermore, the result of jin & lee (2012)‘s research that conducted in public sector, concluded work experiences were positively related to job satisfaction. the study shows that the more the usage of their past work skills in their current job, the higher the level of job satisfaction. but also, there are many researches states that each career development‘s dimensions have no relationship to job satisfaction, such as, kardam and rangnekar (2012) reveals that there is no significant difference in different experience groups as to job satisfaction, because when employees get familiar with organization and got a plentiful experience his salary expectation must have increase. besides that, in the same research also discuss the difference at education level between under graduate & post graduate and found no significant differences in context to job satisfaction. furthermore, lu (2016) has established results that show training, as measured by types, does not have a statistically significant relationship with level of job satisfaction. this result consistent to schmidt (2010), some methods of job training are not effective in ensuring that an employee fully understands the components of his or her job. based on employee career development concept in banking sector above, bri is currently developing career-based career management program (annual report of the bri, 2014). this program is used as a form of implementation to increase human capital and achieve harmonious industrial relations. nevertheless, according to sukarno (2014), there‘s a survey conducted by tower watson in 2014 states that currently banking employees in indonesia opt out which is partly due to the lack of career development opportunities. in addition, sukarno (2014) informs that awaldi as director of talent & rewards towers watson indonesia said the factors that cause indonesian employees to survive in a company other than the salary factor are career development opportunities, comfortable working environment and long time travel to the office. many companies in indonesia fail to understand this, so that in the period time of 2 years, 66 percent of employees in indonesia tend to leave the company where they work, while only 34 percent expressed the intention to stay in the company where he works today. based on explanation above, the study is of great significance as it attempts to examine the effect of career development‘s dimensions towards employee satisfaction and its impacts to job performance in the bank bri. also, it would be beneficial for further researches; as it could be helpful for the researchers as a source of literature. problem statement therefore, the address research problem of this study is that: 1) does education affect job satisfaction in bank bri? 2) does training affect job satisfaction in bank bri? 3) does work experience affect job satisfaction in bank bri? 4) does job satisfaction affect job performance in bank bri? literature review and hypotheses job performance byars and rue (2008) point out that employee performance is referred to what extent an employee in a certain organization carries out his tasks as his responsibility according to what has been expected by the company. in the organizational context, performance is usually defined as the extent to which an organizational member contributes to achieving the goals of the organization. employees are a primary source of competitive advantage in serviceoriented organizations (luthans and stajkovic, 1999; pfeffer, 1994). in addition, a commitment performance approach views employees as resources or assets, and values their voice. employee performance plays an important role for organizational performance. employee performance is originally what an employee does or does not do. performance of employees could include: quantity of output, quality of output, journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 53 timeliness of output, presence at work, cooperativeness (güngör, 2011). macky and johnson (2000) pointed that improved individual employee performance could improve organizational performance as well. from deadrick and gardner's (1997) points, employee performance could be defined as the record of outcomes achieved, for each job function, during a specified period of time. if viewed in this way, performance is represented as a distribution of outcomes achieved, and performance could be measured by using a variety of parameters which describe an employee's paten of performance over time. on the other hand, darden and babin (1994) said employee's performance is a rating system used in many corporations to decide the abilities and output of an employee. good employee performance has been linked with increased consumer perception of service quality, while poor employee performance has been linked with increased customer complaints and brand switching. to conclude, employee performance could be simply understood as the related activities expected of a worker and how well those activities were executed. then, many business personnel directors assess the employee performance of each staff member on an annual or quarterly basis in order to help employees identify suggested areas for improvement. indicators of job performance the indicator of job performance refers to saragih et al. (2017) research, that is, work quality, work quantity, and determination of time. in addition, based on chao et al. (2013) research, job performance is measured by using efficiency and effectiveness, and quality as indicators. job satisfaction according to divyaranjani and rajasekar (2014) states the term ‗job satisfaction‘ refers to the attitudes and feelings that people have about their work. positive and favourable attitudes towards the job indicate job satisfaction whereas negative and unfavourable attitudes towards the job indicate job dissatisfaction. employee job satisfaction has been interconnected with how people think, feel and observe their jobs (spector, 1997). it is widely used in the field of human resources, who thought that the internal and external features are elements work satisfaction reports (chang, 1999). in other words, job satisfaction, it is satisfying emotional state as a result of damage assessment of the occupation or the experience of a job (locke, 1976). according to rainey (1997), is widely studied organizational job satisfaction survey, all which variable related to how people feel about their jobs and different aspects of their work. this really is the extent to which people like or dislike their work (spector, 1997). le´vygarboua and montmarquette (2004) defined employee satisfaction as ―a directory of inclination for the practiced career against outside chance provisional on information accessible at time‖. employee job satisfaction is known as assemble that has often been described, discussed and researched. there are many presumptions regarding the causal relationship between motives, behavior and proceeds. employee satisfaction is the measure that tells about employee‘s general emotion about its workplace and job. it measures his approach towards the job and the extent to which the job is gratifying the employee‘s needs. it is concluded by many researchers that, to measure the intentions of an employee towards their workplace the satisfaction level of employees is used (sweeney et al, 2002; cranny et al., 1992). numerous factors have been resolute by the researchers like enthusiastic behavior, hygiene factors, managerial responsibility and workplace environment by building on different theories, (darrow, 1971; igalens and roussel, 1999; brewer et al, 2008; ahsan et al, 2009; kuo et al, 2007;). indicators of job satisfaction according to saragih et al. (2017) research, indicators of job satisfaction are liking for a job, devoting to a job, employee morale, discipline, and job performance. in the other hand, tsui and huang (2008) states there are five factors were obtained for the five indicators of job satisfaction: (a) satisfaction with supervisors; (b) satisfaction with coworkers; (c) satisfaction with pay (d) satisfaction with promotions; and (e) satisfaction with the work itself. career development handoko (2006) highlighted that career is all jobs or positions that are handled or held during one's working life. thus career shows the development of the individual employees in a hierarchy or rank that can be achieved during the period of employment in an organization. dubrin (2002) defines career journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 54 development is employees‘ activities which help them plan their future career in a certain company so that both the employees and the company can develop maximally. besides that, melinda & zulkarnain (2004) states that career development is a process and activities to prepare workers for positions in the organization, which will be done in the future. career development one needs to be done because a worker not only wants to get what belongs but expect change, progress and opportunities to progress to higher. some of the things that encourage career development within a worker are: first, the desire to develop themselves according to their intellectual abilities; second, to obtain greater compensation than usual; the third to get freedom in the job; fourth, to guarantee safety at work and the last to pursue achievement in work. the importance of acknowledging career development over the lifespan is incorporated in the following definition: ―career development is the total constellation of psychological, sociological, educational, physical, economic and chance factors that combine to shape the career of an individual over the life span‖ (sears, 1982, p. 139). career development programs and services can assist to ―improve individual career awareness, exploration, choice, preparation, and management‖ (williams, bragg, & makela, 2008, p. 7; see also herr & cramer, 1996). career development dimensions according to handoko in megita (2014) said that career development have three dimensions, there are education, training and experience. 1. education martoyo (sikula, 2011: 64) explained that education is a process of human resources development, in which education development is more philosophical and theoretical compared to training. by means of education, someone is prepared to have provisions to be ready to know, to recognize, and to develop the thinking method systematically to solve the problems faced in the future. this will be shown in individual performances, which in the end will guarantee the increase of job productivity. based on afriska (2017) research, education is measured by using education level and mastery of theory as indicators. training rivai (2005: 226) said that a training is a part of skill education outside the education system applied an a relatively short time with a method that focused more on practice that theory. training is an activity to improve current and future performances. according to nawawi (2008: 319), training is a process of giving assistance to the workers or members of organizations to master skills and special expertise to fix flaws in working. training, a key component among common organizational practices, has been identified to have a direct and indirect effectiveness on employees‘ job satisfaction (kumari, 2011). according to manju & suresh (2011), training acts as an intervention to improve organization‘s goods and services quality in stiff the competition by improvements in technical skills of employees. in addition, forgacs (2009) defines training is as a planned activity aimed at improving employee‘s performance by helping them realize an obligatory level of understanding or skill through the impartation of information. based on afriska (2017) research, training is measured by using training‘s frequency and certain skill as indicators. work experience according to handoko in megita (2014) states that work experience is the level of mastery of knowledge and skills of a person that can be measured from one's lifetime. in addition, itafia et al. (2014) said that work experience is a knowledge or skill that has known and controlled by someone as a result of deed or work that has been done before for a certain period of time. based on afriska (2017) research, work experience is measured by using the length of work, mastery of knowledge and skills as indicators. hypothesis development the effect of education on job satisfaction research conducted by yohannes (2013) states that with the level of education owned by employees are low to lower the employee job satisfaction that should be obtained. this happens because with a low education an employee is not motivated or not eager to work. in his research, yohannes (2013) recommends that an employee with low education be trained formally and informally so that he can add insight to work and can motivate work activities in the hope of increasing productivity and job satisfaction. journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 55 besides that, research of teddy (2013) mentions that people who have higher education, formal or informal, will have a broader perspective especially in appreciation of work, so that it could be to increase employee satisfaction to the place where they work. according to kim (2008), if employees are satisfied with the job, and if their personality traits are expressed and perceived by the organizations, the customer will perceive all this through the service received. it is obvious that customers very emphasize the treatment by employees during the consumption of certain services and the treatment is highly connected to the educational level of employees. some proponents (larwood, 1984; saal and knight, 1988) maintain that the relationship between education and job satisfaction is positive in nature. in addition, novita et al. (2008), puspitadewi (2013) and zein (2016) reveal a positive relationship between job satisfaction and education. thus, the first proposed hypothesis is: h1: education has a positive impact on job satisfaction the effect of training on job satisfaction there are several studies that examine the effect of training on job satisfaction. one of them is a study by jaworski (2012) that states training has a significant effect on job satisfaction. another study was conducted by vasudevan (2013) in his journal concluded that training has a significant effect on job satisfaction. similarly, in a study by hardiana (2015) that conducted at pt. misaja mitra pati stated that training has a significant effect on job satisfaction. with newly-leaned skills and knowledge, employees can actively participate in the decision making process, substantially enhance job performance and greatly increase job satisfaction (byrne, miller, & pitts, 2010; rowden & conine, 2005; schmidt, 2007). kim and colleagues (2009) studied thai hotel workers and conclude that training is positively related to job satisfaction. costen and salazar (2011) surveyed employees with four american lodging companies and found employees are more likely to be satisfied with their jobs if they can develop new skills. despite there is a fundamental difference which motivates individuals to work as temporary employees, we argue that temporary employees, like their full-time counterparts, will achieve high job satisfaction level through training. following costen‘s thinking it would be safe to assume that, employees that perceive their training beneficial will be more satisfied than those who get no training or training of no value (elnaga & imran, 2013: 139). moreover, the study of lu (2016) has also established a conclusion that by comparing the level of job satisfaction and their training days, people with low level of job satisfaction had experienced more training days and people with higher level of job satisfaction might not because they had experienced more training than others. in addition, past research such as novita et al. (2008) and puspitadewi (2013) reveal a positive relationship between job satisfaction and training. based on the literature review discussed above we developed the following second hypotheses: h2: training has a positive impact on job satisfaction the effect of work experience on job satisfaction drafke and kossen (2002) postulated that many people experience satisfaction when they believe that their future job prospects are good. this suggests that employee attitudes toward current jobs in conjunction with future employment affect their job satisfaction. according to the result of jin & lee (2012)‘s research that conducted in public sector, concluded work experiences were positively related to job satisfaction. the study shows that the more the usage of their past work skills in their current job, the higher the level of job satisfaction. another research that conducted by itafia et al. (2014) found same result that states there is a positive and significant influence of work experience on employee job satisfaction in weaving industry in kalianget village. the results of researches above were consistent with virk (2012) and yudistira (2015) which indicates that employees with longer tenure have a greater propensity to be satisfied with their jobs than employees with shorter tenure. thus, the third proposed hypothesis is: h3: work experience has a positive impact on job satisfaction the effect of job satisfaction on job performance job satisfaction is a feeling that the level of positive / negative aspects of the job, the journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 56 work situation and relations with colleagues. this means the employee's performance is closely linked to employee satisfaction. an employee with a high level of job satisfaction showed a positive attitude towards the work itself, whereas if a person who is not satisfied with his work showed a negative attitude towards the job (wahyuni, 2016). moreover, if company can maintained the employee satisfaction it can impact in give greater effort to job performance (pushpakumari, 2008). employee performance is crucial factors in increasing the overall organization performance. when an employee is able to perform effectively and understand more the job that expected to meet, it means they have good job performance and know how to satisfied customers and give benefits to company (pushpakumari, 2008). nanda and brown (1977) have investigated the important employee‘s performance indicators at the hiring stage. they concluded that level of job satisfaction and motivation affects the employee‘s productivity. the high performer demand attractive packages from the employers. and now it becomes predicament for the human resource experts to retain the performer (sumita, 2004). the low level of job satisfaction adversely effects on the employee commitment and sequentially effect the achievement of organizational objectives and performance (meyer, 1999). similarly, according to the research of talasaz, saadoldin, & shakeri (2014) that conducted among midwives working in healthcare centers of mashhad, iran, they concluded that there was a positive correlation between job satisfaction and job performance of midwives. according to mowday, porter and steers (2013), most employees of today have a high degree of job dissatisfaction which create attitudes that are undesirable on the job and in turn degenerate their performance ability and that their working place as well. in addition, previous research such as puspitadewi (2013) and riana et al. (2017) reveal a positive relationship between job satisfaction and job performance. based on the literature review discussed above we developed the following fourth hypotheses: h4: job satisfaction has a positive impact on job performance research framework methods research type type of research was case study with survey method and questionnaires. means that collecting the data and investigate the causal journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 57 relationships and hypothesis testing to give an overview of the research object (okta, 2017). research location this research was conducted at bank bri in purbalingga. research period this research will be conducted in 2018. research subject subject of this research was the employees or workers at bank bri in purbalingga. research object the object of this research was career development (education, training and work experience), job satisfaction and job performance. population and sampling method to estimate the number of minimum sample, researcher uses slovin method. this method was chosen because the number of employees can be predicted. based on the data given by hrd in bank bri, the number of average employees there are 398, the slovin formulation to determine the amount of minimum sample is as follows: n = = size of samples n = size of population e = level of error from the formula can be calculated sample size as follows: based on slovin method, minimum sample should be take 83.333 respondents. type source of data primary data primary data in this study were obtained directly in the field of the respondents who bank employees or workers in order to explain the effect of career development (education, training, and work experience) towards job satisfaction and its impact to job performance in bank bri. secondary data secondary data in this research is data that is written sourced from literature references, scientific articles, scientific journals and other sources such as data obtained via the internet related to this research (okta, 2017). data collection procedures field research was conducted by distributing questionnaires to the respondent that contains a list of statements to determine the effect of career development towards employee satisfaction and its impact to job performance in the bank bri. the questionnaire distribution was separated into two different ways, first by online questionnaire and second by physical questionnaire directly to the respondent. researchers assisted respondents during filling the physical questionnaire, so that if respondents have difficulties in filling the questionnaire, it can be assist by the researcher. technique of data analysis the measurement of variable research the measurement scale used in this study is likert scale type. the answer of each instrument using likert scale have gradations from strongly positive to strongly negative. using this measurement scale, the value of the variable is measured by specific instruments can be expressed in the form of numbers, so it will be more accurate, efficient and communicative (sugiyono, 2003). the measurement of attitudes of individuals based on the answers given by the respondents used a likert scale level (suliyanto, 2005). each item scales have 7 categories, between ―strong disagrees‖ up to ―strongly agree‖. each statement is given a numerical score, there are: a. answer ― strongly disagree‖ scored 1 b. answer ―disagree‖ scored 2 c. answer ―somewhat disagree‖ scored 3 d. answer ―neutral‖ scored 4 e. answer ―middle agree‖ scored 5 f. answer ―agree‖ scored 6 g. answer ―strongly agree‖ scored 7 data analysis method validity and reliability test validity test validity test is meant to show how far the questionnaire is able to uncover the data so that it can answer the problem. a questionnaire will have high validity if it can perform its measuring function or provide a measuring result in accordance with the purpose of the measurement. according suliyanto (2011: 18) validity test can be calculated with the help of spss version 20.0 using the formula correlation product moment as follows: ∑ ∑ ∑ √( ∑ ∑ ∑ ∑ ) rxy = product moment correlation coefficient journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 58 y = number of total scores x = scores of empirical indicators of the study n = number of samples reliability test reliability is the term used to indicate the extent to which a measurement result is relatively consistent when the measurement is repeated two or more times. if the measurement results are repeated relatively similar then the measurement is considered to have a good level of reliability (suliyanto, 2009: 149). a construct or variable is said to be reliable if the value of significance value reaches >0.60 (ferdinand, 2006: 314). the formula of reliability in this study using the formula coefficient alpha cronbach with the formula, (umar, 2000: 207): ∑ rii = instrument reliability k = the number of questions ∑αb 2 = ∑ variance of questions αt 2 = total variance with the formula of variance is: ∑ ∑ ∑ n = number of samples x = score value selected classic assumption test to find out whether the regression estimation result is free from the result that the regression result is not valid and finally the regression result cannot be used as the basis to test the hypothesis and the conclusion, then use the classical assumption. according suliyanto (2011: 69), there are some classical assumption test that need to be considered are: normality data test the normality test is the first step that must be done for each multivariate analysis, especially if the goal is inference. the goal is to test whether in the regression model, the dependent variable with the independent variable has a normal distribution or not. a good regression model is the normal or nearnormal distribution of data. the test is done by looking at the spread of data (dots) on the diagonal axis of the scatter plot graphs, the basis of the decision is if the data spreads around the diagonal line and follows the diagonal line then the regression model meets the assumption of normality. if the data spreads far from the regression or does not follow the direction of the diagonal line, then the regression model does not meet the assumption of normality. multicollinearity test the main objective was to test whether the regression model found that the correlation between independent variables was used, to detect the presence or absence of multicollinearity in the study was to use variance inflation factor (vif) which is the opposite of tolerance, so the formula is as follows: where r 2 is the coefficient of determination. if a small correlation means that the vif value will be large. if vif >10 then it is assumed there is multicollinearity with other independent variables. in contrast vif <10 is considered to be non-multicollinearity. heteroscedasticity test heteroscedasticity testing in the regression model is done to determine whether in the regression model the variance and variance inequality is observed. a good regression model is no heteroscedasticity. this test is done by looking at a particular pattern on the graph where the y axis is predicted and the x axis is the residual (y predicted y actually) that has been standardized. the basic decision-making is: 1) if there is a certain pattern like the points that exist form a regular pattern (wavy widened and then narrowed) then there has been heteroscedasticity. 2) if there is no clear pattern and the spots spread above and below the number 0 (zero) on the y axis then no heteroscedasticity occurs. autocorrelation test autocorrelation test is a correlation or relationship between members of a series of observations arranged in the times series at different times. autocorrelation aims to test whether in a linear regression model there is a correlation between the confounding errors in period t. if so, there is autocorrelation. in this research the existence of autocorrelation is tested with durbin watson with the following formula: ∑ ∑ information: journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 59 (1) if the d w number below 2 means there is a positive autocorrelation. (2) if the d w number between 2 to 2 means there is no autocorrelation. (3) if d w above 2 means there is a negative autocorrelation. answer index analysis answer index analysis per variable is aimed at knowing descriptive description of respondents in this study. especially regarding the research variables used. this study uses an index analysis technique that describes the respondents on the items of questions asked. scoring technique used in this study is with a maximum score of 7 and at least 1, then the calculation of the index of respondents' answers with the following formula: value index = {(% f1 x 1) + (% f2 x 2) + (% f3 x 3) + (% f4 x 4) + (% f5 x 5) + (% f6 x 6) + (% f7 x 7)} / 7 where: f1: is the frequency of respondents who answered 1 of the scores used in the questionnaire. f2: is the frequency of respondents who answered 2 of the scores used in the questionnaire. f3: is the frequency of respondents who answered 3 of the scores used in the questionnaire. f4: is the frequency of respondents who answered 4 of the scores used in the questionnaire. f5: is the frequency of respondents who answered 5 of the scores used in the questionnaire. f6: is the frequency of respondents who answered 6 of the scores used in the questionnaire. f7: is the frequency of respondents who answered 7 of the scores used in the questionnaire. the number of respondents did not start from zero, but starting from 1 for minimum and maximum is 7. the number of questions in this study on the independent variables of each 2 questions of education and 2 questions of training and 3 questions of work experience, the dependent variable consists of 5 questions of job satisfaction and 3 employee performance questions. the total score for 7 questions is 49 while for the variable with 5 questions is 35. the total index value is 100 using the three-box method, then the range 100 (10-100) will result in a range of 30 to be used as the basis of the interpretation of the index value. the use of 3 boxes (three-box method) is divided as follows (ferdinand, 2006: 273): 10.00 40.00 = low 40.01 70.00 = medium 70.01 100 = height researchers determine the perception index of respondents to the variables used in this study. hypothesis test multiple regression analysis according to sunyoto (2011: 61), multiple regression analysis for knowing whether or not there is a significant influence of two or more independent variables (x1 education, x2 training and x3 work experience) to the variable bound (y1 job satisfaction and y2 job performance). equation formula for the regression is as following: where: y = job satisfaction/job performance α = constants x1 = education x2 = training x3 = work experience e = error t-test according to suliyanto (2011 in pramuja, 2015: 26), used to test the partial regression relationship, this test is done to measure the level of significance or significance of every independent variable to the dependent variable in a regression. the t-test tests whether a hypothesis is accepted or rejected, for the provision of the t-test is as follows. ho = 0: means there is no meaningful influence of the independent variable to the dependent variable. ha ≠ 0; means there is a meaningful influence of the independent variable to the dependent variable. to decide which hypothesis is accepted and what is rejected, the test is done by comparing the t-hit value with the t-table value, if:  t-test > t table; then ho is rejected and ha is accepted, which means that the partially independent variable positively affects the dependent variable is significant;  t-test < t table; then ho accepted and ha rejected, which means that the partially influence of independent variable on the dependent variable is not significant. f-test journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 60 according to suliyanto (2011 in pramuja, 2015: 27), this test is used to determine whether the independent variables 1, 2, and together significantly influence the dependent variable (y) at the 95% or α = 5% confidence level. with the following test criteria: ho = 0: means there is no meaningful influence of independent variable simultaneously to the dependent variable. ha ≠ 0: means there is a meaningful influence of independent variables simultaneously to the dependent variable. to decide which hypothesis is accepted and what is rejected, the test is done by comparing the t-count value with the t-table value if:  f-test > f-table, then ho is rejected and ha accepted, which means that the independent variable simultaneously have a positive effect on the dependent variable is significant;  f-test < f-table, then ho is accepted and ha is processed, meaning the influence of independent variable simultaneously to the dependent variable is not significant. coefficient of determination (r²) the coefficient of determination (r²) is used to determine the percentage of independent variables together can explain the dependent variable. suharyadi (2009: 216) states that the coefficient of determination is between zero and one. if the coefficient of determination (r²) = 1, it means that the independent variable provides the information needed to predict the dependent variables. results and discussion validity test result validity test of questionnaire within study uses product moment correlation formula. based on the output of validity test from research variables such as education (x1), training (x2), work experience (x3), job satisfaction (y1) and job performance (y2) in appendix 3, then it can be summarized as shown in table 9 to table 13. table 9. validity test of education variable (x1) refers to data in table 9, it known that rstatistic value of education variable each is greater than the value of rtable with degree of freedom (df) = n-2. therefore, all items of education variable are valid and these items can be used as data collection instrument of this research. table 10. validity test result of training variable (x2) based on table 10, it can be seen that the r statistic value of training variable each is greater than value of r table with df = n-2. therefore, all items of training variable are valid and these items can be used as data collection instrument of this research. table 11. validity test result of work experience variable (x3) items rstatistic rtable df = (n-2) and  = 0.05 judg ment 1 0.803 0.220 valid 2 0.802 0.220 valid 3 0.855 0.220 valid refers to the data in table 11, it can be seen that the r statistic value of work experience variable each is greater than value of r table with df = n-2. therefore, all items of work experience variable are valid and it can be used as data collection instrument of this research. table 12. validity test result of job satisfaction variable (y1) items rstatistic rtable df = (n judgment 1 0.834 0.220 valid 2 0.831 0.220 valid 3 0.788 0.220 valid 4 0.816 0.220 valid 5 0.857 0.220 valid data in table 12 shows that the r statistic value of job satisfaction variable each is greater than value of r table with degree of freedom (df) = n-2. therefore, all items of items rstatistic rtable df = (n-2) and  = 0.05 judg ment 1 0.935 0.220 valid 2 0.933 0.220 valid items rstatistic rtable df = (n-2) and  = 0.05 judg ment 1 0.833 0.220 valid 2 0.864 0.220 valid journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 61 job satisfaction variable are valid and these items can be used as data collection instrument of this research. table 13. validity test result of job performance variable (y2) based on data in table 13, it known that the rstatistic value of job performance variable each is greater than the value of rtable with degree of freedom (df) = n-2. therefore, all items of job performance variable are valid and these items can be used as data collection instrument of this research. reliability test result reliability test of questionnaire within study uses cronbach‘s alpha formula. based on the output of reliability test in appendix 4, it can be summarized in table 14. table 14. result summary of reliability test variables reliability refers to data in table 14, it can be seen that the reliability coefficient (rtotal) of education, training, work experience, job satisfaction and job performance variables are greater than the cut of value (0.60). therefore, all of the questions for each research variable are reliable and it can be used as data collection instrument. classical assumptions tests to obtain a regression model that produces the best linear unbiased estimator (blue), it is necessary to test the classical assumptions with the following results: normality test result based on normality test output of regression model by using scatter plot graphs in appendix 7, it can be seen that the data spreads around the diagonal line and follows the diagonal line. additionally, from the normality test output of by using kolmogorov smirnov test in appendix 7, it can be seen the result summary as shown in table 15. table 15.result summary of normality test n o variable kolmogo rov smirnov value asym p. sig. judgm ent 1 standardi zed residual 1.198 0.113 normal from the data in table 15, it is obtained the asymptotic significant value of 0.113 is greater than α (0.05). therefore, the data of regression model within study is revealed a normal distribution. multicollinearity test result refers to the output of multicollinearity test in appendix 7, it can be seen the result summary below: table 16. result summary of multicollinearity test according to the result summary of multicollinearity test, it obtained the vif value of education, training as well as work experience variable each is less than 10. hence, it can be stated that there is no multicollinearity in regression model. heteroscedasticity test result based on heteroscedasticity test output by using scatterplot in appendix 7, it can be seen that there is no clear pattern and the spots spread above and below the number 0 (zero) on the y axis. furthermore, refers to items rstatistic rtable df = (n-2) and  = 0.05 judg ment 1 0.932 0.220 valid 2 0.913 0.220 valid 3 0.883 0.220 valid varia bles reliabili ty coeffici ent cut of value judgme nt x1 0.853 > 0.60 reliable x2 0.609 > 0.60 reliable x2 0.705 > 0.60 reliable y1 0.882 > 0.60 reliable y2 0.893 > 0.60 reliable no variables vif valu e judgment 1 education (x1) 1.14 0 no multicollinearity 2 training (x2) 1.38 0 no multicollinearity 3 work experience (x3) 1.29 9 no multicollinearity journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 62 the heteroscedasticity test output by using glejser test in appendix 7, it can be seen the result summary as follows: table 17. result summary of heteroscedasticity test no variables sig. judgment 1 education (x1) 0.09 6 no heteroscedasti city 2 training (x2) 0.49 7 no heteroscedasti city 3 work experience (x3) 0.51 7 no heteroscedasti city related to the data in table 17, it known that the significant value of education, training as well as work experience variable each is it can be stated that there is no heteroscedasticity in regression model. d. autocorrelation test result refers to the autocorrelation test output of multiple regression model by using durbinwatson (dw) test in appendix 7, it can be summarized as shown in table 18. table 18. result summary of autocorrelation test no dwstatistic cut of value judgment 1 1.905 1.743 – 2.257 no autocorrelation based on data in table 18, it can be seen that value of durbin-watson (dw) test result of 1.905. this value is compared with dwtable by using number of data (80) and number of variable (4), so it known that value of du = 1.743 (appendix 11) and value of 4du = 2.257. it shows that dwstatistic value is between value of du and 4 du, so it can be stated there is no autocorrelation in multiple regression model within study. the impact of education, training and work experience on job satisfaction to test first, second and third hypotheses within study, it is necessary to do multiple regression analysis with the following results below: equation of multiple regression model based on the output of multiple regression analysis in appendix 8, it can be summarized as presented in table 19. table 19. result summary of multiple regression model based on data in table 19, so the multiple regression equation is as follows: y1 = 2.188 + 0.211x1 + 0.262x2 + 0.202x3 following the multiple regression equation above, it can be explained that: 1) constant value of 2.188, it means that if education, training and work experience variables are assumed have value of zero, so the employees‘ job satisfaction of bank rakyat indonesia (bri) in purbalingga is 2.188 score unit. 2) regression coefficient of education variable shows a positive value of 0.211. it means that education has a positive effect on job satisfaction, or it can be explained that if education increase one score unit, then it will be able to increase employees‘ job satisfaction of bank rakyat indonesia (bri) in purbalingga is 0.211 score unit. 3) regression coefficient of training variable shows a positive value of 0.262. it means that training has a positive impact on job satisfaction, or it can be explained that if training increase one score unit, then it will be able to increase employees‘ job satisfaction of bank rakyat indonesia (bri) in purbalingga is 0.262 score unit. 4) regression coefficient of work experience shows a positive value of 0.202. it means that work experience has a positive effect on job satisfaction, or functionally it can be explained that if work experience increase n o . variables regr essio n coeff icient tsta tisti c ttabe l (on e tail ed) 1 . education (x1) 0.21 1 3. 25 0 1.6 65 2 . training (x2) 0.26 2 2. 81 3 1.6 65 3 . work experience (x3) 0.20 2 2. 37 1 1.6 65 constant = 2.188 r square = 0.402 f statistic = 16.997 journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 63 one score unit, then it will be able to increase employees‘ job satisfaction of bank rakyat indonesia (bri) in purbalingga is 0.202 score unit. goodness of fit f-test based on the confidence level of 95% or freedom (df) = (k-1) and (n-k), it known that the ftable value is 2.76. from multiple regression analysis results, it is obtained the fstatistic value of 16.997 with p value of 0.000. because fstatistic value is greater than the ftable, or p value is less than α (0.05), so it known that education, training and work experience variables have a significant simultaneously effect on job satisfaction, or it can be stated that multiple regression model within study is fit with the research data (goodness of fit). coefficient of determination result of multiple regression analysis shows the coefficient of determination (r square) is 0.402. it means that job satisfaction within study can be explained by education, training and work experience variables of 40.20 percent, while the remaining of 59.80 percent can be explained by the other variables are not examined. significance partially effect testing by t-test to test the significant partially effect of education, training as well as work experience variable on job satisfaction is used t-test results. based on the confidence level of 95% (α = 0.05) and degree of freedom (df) = (n-k) with one tailed t-test, it known that the ttable value of 1.665. from the result summary of multiple regression analysis in table 19 above, it known that tstatistic value of education variable is 3.250, tstatistic value of training variable of 2.813 and tstatistic value of work experience variable is 2.371. the impact of job satisfaction on job performance to test the significant impact of job satisfaction on job performance (fourth hypothesis) within study, it is necessary to do simple regression model with the following results below: equation of simple regression model based on the result of simple regression analysis in appendix 9, it can be summarized as shown in table 20. refers to the data in table 20, it known the simple regression equation is as follows: statistically, simple regression equation above can be explained that: 1) constant value of 2.879, it means that if job satisfaction variable is assumed has value of zero, so employees‘ job performance of bank rakyat indonesia (bri) in purbalingga is 2.879 score unit. 2) regression coefficient of job satisfaction variable shows a positive value of 0.473. it means that job satisfaction has a positive effect on job performance, or it can be explained that if job satisfaction increase one score unit, then it will be able to increase employees‘ job performance of bank rakyat indonesia (bri) in purbalingga is 0.473 score unit. goodness of fit f-test based on the confidence level of 95% or freedom (df) = (k-1) and (n-k), it known that the ftable value is 4.00. from the simple regression analysis results, it is obtained the fstatistic value of 12.657 with p value of 0.001. because fstatistic value is greater than the ftable, or p value is less than α (0.05), so it can be stated that simple regression model within study is fit with the research data (goodness of fit). coefficient of determination result of simple regression analysis shows the coefficient of determination (r square) is 0.140. it means that job performance within study can be explained by job satisfaction variable of 14.00 percent, while the remaining of 86.00 percent can be explained by the other variables are not examined. significance partially impact testing by t-test n o . variable regres sion coeffici ent tstatisti c ttabel (one tailed ) 1 . job satisfaction (y1) 0.473 3.55 8 1.665 constant = 2.879 r square = 0.140 f statistic = 12.657 journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 64 to test the significant partially impact of job satisfaction on job performance is used t-test results. based on the confidence level of 95% (α = 0.05) and degree of freedom (df) = (n-k) with one tailed t-test, it known that the ttable value of 1.665. from the result summary of simple regression analysis in table 20 above, it known that tstatistic value of job satisfaction variable is 3.558. hypotheses testing first hypothesis based on result summary of multiple regression analysis in table 19, it known that tstatistic value of education on job satisfaction (3.250) is greater than ttable value (1.665). therefore, first hypothesis which states that education has a positive impact on job satisfaction is accepted. second hypothesis refers to the result summary of multiple regression analysis, it can be seen that tstatistic value of training on job satisfaction (2.813) is also greater than ttable value (1.665). therefore, second hypothesis which states that training has a positive impact on job satisfaction is accepted. third hypothesis furthermore, from the result summary of multiple regression analysis in table 19 above, it known that tstatistic value of work experience on job satisfaction (2.371) is greater than ttable value (1.665). therefore, third hypothesis which states that work experience has a positive impact on job satisfaction is accepted. fourth hypothesis based on result summary of simple regression analysis in table 20 above, it has got the tstatistic value of job satisfaction on job performance (3.558) is greater than ttable value (1.665). therefore, fourth hypothesis which states that job satisfaction has a positive impact on job performance is accepted. discussion the impact of education on job satisfaction result of this study found that education has a positive and significant impact on job satisfaction. this result means that the better level of employees‘ education, then the higher level of employees‘ job satisfaction of bank rakyat indonesia (bri) in purbalingga. it shows how the mastery of theory can make employee like their job and duty that has been given to them. result of this study is in line with the prior study by puspitadewi (2013) who found there is a positive relationship between job satisfaction and education. furthermore, result within study is consistent with the previous study conducted by zein (2016) who concludes that education has a positive relationship with job satisfaction. the impact of training on job satisfaction current study proves that training has a positive and significant impact on job satisfaction. it means that the better level of training, then the higher level of employees‘ job satisfaction of bank rakyat indonesia (bri) in purbalingga. it shows how training would give certain skills to employees and it can make employee like their job and duty that has been given to them. result of current study is consistent with the study conducted by jaworski (2012) who proves that training has a significant effect on job satisfaction. the impact of work experience on job satisfaction furthermore, this study result proves that work experience has a positive and significant impact on job satisfaction. it means that the better level of employees‘ work experience, then the higher level of employees‘ job satisfaction of bank rakyat indonesia (bri) in purbalingga. it shows how skills can make employee like their job and duty that has been given to them. empirically, result of this study is in line with the study conducted by jin & lee (2012) who found that work experience has a positive impact on job satisfaction. additionally, current study result is consistent with the previous study by itafia et al., (2014) who conclude there is a positive and significant influence of work experience on employee job satisfaction. the impact of job satisfaction on job performance result of this study is also found that job satisfaction has a positive and significant impact on job performance. this causal relationship means that the higher level of employees‘ job satisfaction, then the higher journal of accounting management and economics , vol. 20, no. 2, 2018, pp.50-69 65 level of employees‘ job performance of bank rakyat indonesia (bri) in purbalingga. it shows when employees like their job and duty that has been given to the, it can help them to finish their job on time. empirically, this study result is consistent with the study by talasaz, saadoldin, & shakeri (2014) who conclude that job satisfaction has a positive correlation with job performance. conclusion based on the results of research that have been discussed in previous chapter, some conclusions can be drawn such as education has a positive impact on job satisfaction. besides that, training has a positive impact on job satisfaction. then, work experience has a positive impact on job satisfaction. and the last, job satisfaction has a positive impact on job performance. implication practically, as an effort to increase employees‘ job satisfaction, management of bank rakyat indonesia (bri) in purbalingga need to maintain or increase their employees‘ education, training and work experience related to all items of each variable in answer index analysis that include on high category. the ways can be done by provide the nonformal education program for employee that combine the basic education with work skills, apply the effective training program and give the same opportunity for each employee to follow the training program periodically, offer the employees opportunities for growth at work and give opportunity for each employee to achieve the higher positions and guarantee the continuity of their work in order to achieve the organization goals. additionally, as an effort to increase employees‘ job performance, management of bank rakyat indonesia (bri) in purbalingga needs to pay attention on employees‘ job satisfaction, especially, their dedication for the job, because, its value in answer index analysis smaller than the other items. the ways can be done by meet the various needs and desires of employee related to their work activities and provide the interest, encouragement and the 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(2016). pengaruh usia, pendidikan dan jaminan sosial terhadap kepuasan kerja karyawan bagian operator di pt. cakrawala putra bersama. jurnal publikasi kesehatan masyarakat indonesia, vol. 3 no. 2, 38-44. correspondence to : dosen01855@unpam.ac.id received: 22 december 2021 accepted: 21 february 2022 published: 30 march 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 1, 2022, pp. 25 32 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction one of the defiances faced by countries in an area is developing standard strength to utilize a leading role in global competition. active collaboration is the mainly antecedent of forming a competitive community and achieving shared prosperity (anggraeni, 2019). the era of globalization has sueded that all information be entranced practically and quickly. however, with the design of the information system excellent, quality information acquired too will be nice (sani a. , rahman, subiyakto, & wiliani, 2019). furthermore, individuals or organizations were necessary a technique or method to process large-capacity computer data processed into information output, which is helpful for business decision-making as well as data used by government agencies or district/city offices. based on 2016-2021 from strategic plan review document, one of the focus goals is to realize mass transportation-based transportation (dishub kota tangerang selatan, 2020, hal. v-9); this is motivated by the speedy increase in the number of private cars in south tangerang city, which is forecasted to be in 2023 amounted to 500,000 with an increase of 20 percent. figure 1: private cars amount in south tangerang city source: processed data from samsat kota tangerang, 2018 based on figure 1, the number of private cars in 2012 amounted to 93,886, 2013 amounted to 119,097, 2014 amounted to 142,729, 2015 amounted to 169,254, 2016 amounted to 195,024, and 2017 amounted to 225,850 taken from historical data samsat tangerang city. understanding attitude to public transport and private vehicle: a qualitative study in south tangerang city syafieq fahlevi almassawa1 rissa hanny2 1,2management department, universitas pamulang, tangerang selatan, indonesia abstract this study presents the results of qualitative research on the use of public transportation with private cars to understand attitudes. some of the problems identified include: (1) an increase in the number of private vehicles in 2012-2015 by an average of 20 percent when compared to the number of existing roads and causing social problems so that it is necessary to reduce the use of private cars and increase the use of public transportation as a solution; (2) improve public transportation services following the expectations of users of transportation services; and (3) travel demand management is developed that public transport facilities are in line with demand. this study uses a qualitative approach with descriptive analysis with data collection methods using in-depth interviews and focuses on group discussions with parties related to this research. the study's conclusion shows that people want convenience in using public transportation, namely comfort, security, low cost, and integration. keywords attitudes, public transportation, private vehicles jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 25-32 figure 2: south tangerang city road source: processed data from (bps kota tangerang selatan, 2018) based on figure 2, the number of roads in 2015 was 227,138, around 227.2 km long. compared to the number of vehicles in 2015, 169,254, the existing roads are not adequate, how in the next five years the streets may not increase. to overcome this, it is necessary to reduce the use of private cars; understanding travel behavior and what causes people to choose modes of transport is an important issue, but behavior in traveling or selecting a mode of transportation is complex. in each trip, people will choose the transportation method to use; each preferred mode of transport has specific characteristics, advantages, disadvantages, and costs (sitinjak & sitindaon, 2019). any use private cars and public transportation, to reduce the use of personal vehicles we must understand the basic pattern of attitude. we know private cars are the most attractive, easy, fast, convenient and accessible mode of transport for individuals. on that basis, public transportation must adapt its services so that it is beautiful, which can make people change from using private cars to public transportation. transportation services in the city of south tangerang are still deficient, especially for city transportation; city transportation services in several areas of the city of south tangerang, both the car, the service, the crew. according to steward and simmons (2010, hal.14), many studies argue that creativity will drive future business (saragih & husain, 2012). therefore, the quality of service must be improved so that private car users will switch to public transportation. another thing that can enhance the quality of service is the implementation of government policies to promote a sustainable transportation system. these policies can be in the form of a policy of rejuvenating the public transportation fleet, especially city transportation, limiting the age of roadworthy vehicles, building terminals (the city of south tangerang does not have a public transportation terminal), adding bus stops or city transportation, making timely travel schedules, collaborating with the private sector in dealing with public transportation problems. according to jensen (1999), hagman (2003), and anbel (2005), in general, the car is the most attractive mode of transport, easy, fast, comfortable, and has individual freedom, which is a well-known argument. therefore, public transportation must adjust its services as attributes required by customers to be more attractive and can influence the shift from using private cars to public transit. hensher and reyes (2000) hensher and reyes (2000) add that service quality is considered an essential determinant of travel demand for users of transport modes (beirão & cabral, 2007). parasuraman et al. (1985) stated that in considering public transportation, both the operator and the competent authority must understand how customers evaluate service quality. still, customer evaluations of service quality are abstract and are concepts that are difficult to understand to measure (beirão & cabral, 2007). aside from the more aggressive level of business rivalry, the requirement for efficiency and effectiveness in company management necessitates that every firm is prepared for and accepts the usage of information technology (sani a. , rahman, pusparini, budiyantara, & wiliani, 2021). complications of developing the construct accuracy of good service quality. we will deal with something abstract and with non-measurable attributes, such as safety and comfort, which is not easy for transportation demand management (tdm), or travel demand management with effective measurement should: (1) reduce the attractiveness of car use; (2) active tdm measurement to reduce car use, and the relevant parties must facilitate the achievement of this tdm measurement (loukopoulos, 2007; broaddus, litman, & menon, 2009). this research aims to present the results of a qualitative study: (1) an increase in the number of private cars in 2012-2015 by an average of 20 percent, when compared to the number of existing roads, clearly creates social problems so that it is necessary to reduce the use of private cars and to increase the use of public transportation can be a solution; (2) improve public transportation services as expected by users of transportation services; and (3) travel jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 25-32 demand management or travel demand management is developed so that public transport facilities are in line with demand. literature review definition of attitude attitude is interpreted as a response or reaction from a person to an object or closed stimulus (notoatmodjo, 2012, hal. 124). furthermore, attitude can also be understood as a forming factor for healthy behavior from internal stimuli (based on reinforcing elements), which are part of people's behavior (azwar, 2017). in the context of human resource management, the attitude of the apparatus involved in organizational planning has an essential role in achieving the performance of public sector organizations and the influence of some other technical factors (irianto, 2011). in the context of entrepreneurs, a positive work attitude can often be characterized by good individuals and achieved entrepreneurial success; the survival of a business can't detach from the characteristics possessed by entrepreneurs who run the business (suroso, anggraeni, & andriyansah, 2017). in the context of consumers or customers, organizations with an online base must foster consumer/customer trust from their positive attitude (husain & sani, 2020). a positive attitude towards a value does not always manifest in a real action (gasparski & botham, 2017, hal. 152). this is based on the fact that matters in any society always apply the values that become the grip of everyone in carrying out social life. social identity theory explains that the sustainability of an organization has unique deals that can utilize as a signal for individuals to improve their engagement (anggraeni a. i., 2014). public transportation and private vehicles transportation uses specific tools to carry out the activity of moving goods/people or moving from an initial location to a destination location which requires the existence of an area (origin and destination), equipment (technology), and a destination location for purposes such as social, economic and others (miro, 2012, hal. 1). furthermore, public transportation is all means of transportation in which passengers do not travel using their vehicles. andreas schafer (1998) states that the existence of the transportation system functions in meeting the needs for socio-economic relations and the opportunities provided to the community in their activities and mobility. a sustainable public transportation system makes a positive contribution to the economic, socio-cultural, and environmental sustainability of the communities it serves (sutandi, 2015). private vehicles used as public transportation by the owners are very much in each location, especially in remote areas. the community tends to choose a chartered private vehicle rather than waiting for a public transport car (sjaifurrachman, 2014). the use of personal vehicles when it is not in line with the provision of transportation facilities and infrastructure such as road infrastructure will impact increasing transportation problems so that planning is needed in the management of public transportation (sriastuti, 2017). research framework this research framework is poured into a schema or research structure that has a plot. thus, the research structure becomes more specific: the few variables' outline, schema, and paradigm. this scheme will assist researchers in carrying out the operational completion of the designed research objectives (nugrahani, 2014, hal. 42). figure 3: flow scheme of research source: developed this research, 2021 methods this study uses qualitative analysis methods combined with descriptive analysis. although, according to cligton and handy (2001), the jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 25-32 qualitative approach is a potent tool to explore a complex, and it can improve understanding of the behavior and attitudes of individuals (beirão & cabral, 2007). in comparison, descriptive analysis is intended so that excavations can be made about the depiction of the object studied closely to be informed about the actual phenomena of the thing under study. this approach is directed at the background and individuals holistically (whole), not isolating individuals into variables or hypotheses but viewing them as part of the whole (nugrahani, 2014, hal. 8). the study of the behavior of transportation users towards travel using this qualitative approach requires a deep understanding of the attitudes and behaviors of transportation users. to obtain data that is trustworthy and relevant to the matter to be studied, including interviews with related parties, fgd (forum group discussion), and field observation. the final stage is data analysis to describe the research discussion and conclusions. results and discussion the object of research is public transportation users and private car users, the respondents of this study amounted to 10 people. characteristics of respondents the distribution of categories on the characteristics of respondents is summarized as follows: table 1. characteristics of respondents based on age and job occupation age vulnerable amount job classification amount 15 – 21 years old 2 student/ college student 2 22 – 30 years old 3 government/private employee 2 31 – 40 years old 3 mistress 2 > 40 years old 2 entrepreneurship 2 senior 2 source: data processing (2020) interview descriptive results script of interview results with a student respondent: (1) amir, 16 years old, is a student in senior high school. amir stated that the distance between his house and the sma negeri 2 muncul in the city of south tangerang (his school) was 4 km. every day, he took city transportation to go to school and went home, went to school at 7.00 and had to leave at 6.00, to go home was not in a hurry because it was not restricted time. however, amir had to go down and take public transportation in different directions to get to school because there was no direct city transportation from home to school. every time you take city transportation, the cost is idr3,000, so two trips are idr 12,000 per day. according to amir, city transportation sometimes takes a long time to wait, so amir is often late. besides, he has to go up and down public transportation twice, so amir sometimes takes an 'ojek online' using the application on his smartphone; just by pressing within 1 minute to 3 minutes, he already gets his online 'ojek online' at the cost of idr 9,000 to idr 12,000. using city transportation, the travel time to school is 45 minutes to 55 minutes by online motorcycle taxi, and it takes only 20 minutes to 25 minutes. amir hopes that there will be public transportation that goes directly from home to his school or a school bus from the government. (2) reza, 24 years old, is a college student studying in pamulang has been semester 6, residing in griyaloka, using a motorbike to go to college, and doing other activities. according to reza, public transportation is not reliable for daily activities because the cost is more expensive than using a motorbike, besides the travel time using public transport is very long. for example, utilizing a motorbike from bsd to pamulang only takes 25 minutes to 30 minutes. using public transportation takes 1 hour to 1 hour to 20 minutes at the cost of idr 10,000 to idr 15,000 with two times to 3 times up and down transportation general. moreover, the condition of public transportation is dirty. it takes too long to "hang" (waiting for passengers to be full of uncertain times). in addition, the driver smokes; according to reza, if public transportation has good, cheap, and fast facilities, he will use public transit. mr. kabul works at asabri (asuransi abri) in cawang; east jakarta has worked for more than 30 years, has lived in bsd for more than 25 years. public transportation is this father's jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 25-32 mainstay to get to cawang, east jakarta, even though he has a private car. pak kabul has to take city transportation and city buses to get to his office from home take city transportation to the front of cilenggang street which is 1 km away at idr 4,000, then take the patas ac bus to pulogadung at the cost of idr 25,000 and get off opposite his office, in cawang. according to mr. kabul, this method is the cheapest even though it is tiring, going to work at 7.30 am mr. kabul must leave at 6 am and arrive at the office at around 7.30, if leaving more than 6 am the trip can take 1.5 hours to 2 hours. according to mr. kabul, going to and from work by car will cost more than idr 50,000 plus a total petrol cost of around idr 75,000 to idr 80,000 (toll + gasoline), not to mention being tired because you have to drive yourself while on the bus you can rest. pak kabul hopes that public transportation services can be improved and can be reached cheaply to be more comfortable too and from work. irwan suhartono, 54 years old, a businessman who lives in the batan indah serpong complex, south tangerang, pak irwan used to often use public transportation back and forth from serpong to jakarta now prefers a private car because it is more comfortable and can predict the time. according to mr. irwan, if public transportation is well organized, the facilities are repaired or replaced, such as public transportation that is no longer feasible, dirty, reckless drivers, and more explicit routes and schedules. according to him, the most urgent thing is the control of urban transportation on the highway. the institutions that organize public transportation is managed following jakarta's city, which is already very good. the government must also be serious in dealing with this public transportation problem. moh. khoiri, 30 years old, is a teacher. although according to mr. khoiri, the poor service of public transportation makes the community's attitude not interested in using public transport, the district has an easy and affordable mode of transportation. in contrast, the public transportation routes are not adapted to the area's development, so that many changes have not been reached by public transport. instead, people choose online transportation that is easy, cheap, and fast. regarding the use of private cars, mr. khoiri believes that private cars determine one's social status, not just a necessity, so people tend to use personal vehicles even though they are jammed and tiring. mrs. ani, 38 years old, an entrepreneur living in ciater, a housewife, and a small shop entrepreneur, uses city transportation for shopping and daily activities. she goes to the ciputat market every day using city transportation to the bsd ciputat route. suppose you wait a long time because the fleet has decreased. in that case, the city transportation is ancient, cramped, and dirty, and the driver smokes in the city transportation, which is very uncomfortable. even though the fare is only idr 7,000, there is no other alternative because your groceries will not fit on the motorbike if you ride a motorbike. mrs. ani hopes that the city vehicle will be rejuvenated to be comfortable and has a schedule. ajeng is 26 years old, a private employee. south tangerang resident lives in nusa loka bsd. every day ajeng rides a motorbike to her office pick-up car in melati mas to go to karawang; if she takes an old 'angkot' to arrive and take public transportation twice, the fare becomes expensive. the distance from my house to melati mas is about 3 km, but there is no direct public transportation; you have to take public transportation twice, once the city transportation costs idr 4,000, twice to idr 8,000 and round trip, idr 16,000. the price became prohibitive; finally, ajeng decided to take a motorbike and park near the car he picked up at the cost of idr 5,000 a day. ajeng hopes that city transportation will be directly from her house to melati mas so that she doesn't have to ride a motorbike anymore. joni is 25 years old, a private employee working in a private company in the sudirman area of jakarta. living in serpong, you have to take public transportation to rawabuntu station every day, even though serpong station is closer to where he lives. still, because near serpong station, there is a market that is always jam, causing it to take a long time to arrive at the station, rawabuntu station is further away but not stopped. joni hopes that public transportation to the station can be faster and the fleet will be more comfortable. the problem is not on the commuter line, which is already excellent and fast and comfortable. mrs. sri is 40 years old, a housewife who never uses public transportation for her daily activities, whether shopping, dropping off school children, and other activities, because according to mrs. sri, the city transportation is uncomfortable, dirty, has no schedule, and is 'crazy' long. with a private car, quickly according to your plan, comfortable, and the cost is cheaper; going to the market with a distance of 3 km can be fast and on time, safe jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 25-32 and comfortable. ibu sri said that if the transportation were comfortable, clean, and on time, she would take public transit, and the fare was cheap. zulkarnaen, 32 years old, is a private employee who works as a marketing manager at a private company in jakarta living in lengkong gudang, serpong district, who uses a private car to work in jakarta. with a personal car as a salesperson with a working vehicle, it is easier to go to several offices, customers, meetings, and several locations in one day. this activity cannot carry out using public transportation because the time is unpredictable. according to mr. zulkarnaen, if there is a proper, safe and fast schedule for public transit, he will use it in his daily activities. fgd descriptive results the group discussion forum was conducted with relevant agencies, resource persons, public transport users, and actors. the fgd participants were: (1) mrs. martha lena ssi.t. m.t., head of the transportation development and service section of the south tangerang city transportation service. (2) mr. hendra kurniawan, amd., llaj, st, m.m, section head of public transportation development, facilities and infrastructure of the south tangerang city transportation service. (3) faturohman, 28 years old, the crew of the orchid bus vehicle and (4) mr. adnan, 38 years old, trans bsd bus crew. according to ms. martha, the increase in the number of vehicles usually coincides with population growth or the development of an area. for the city of south tangerang, population growth is also due to the growing number of residential housing or residential areas in south tangerang city. no research or study states that the increase in the number of private vehicles, primarily cars in the city of south tangerang, is caused by poor public transportation services, even though in reality, public transportation services in south tangerang city, especially urban transportation, have not been good or even evil. the problems faced in the city of south tangerang are that many of the city transportation (angkot) are no longer feasible but are still used, kier permits that are no longer valid, driving licenses from vehicle crews that are also no longer valid or even do not have a driving license, and most importantly is a route that has not been adapted to the development of city roads and housing developments in the city of south tangerang. according to mr. hendra, as stated by mrs. martha, public transportation services must be improved to overcome existing problems; for sure, the community is innovative in determining what mode of transportation is needed, namely public transportation that is comfortable, timely, and safe. with online transit, everything is done "door to door," and people are also lazy to walk, even though a good city is a city that has excellent and integrated public transportation instead of relying on online transit. the trans anggrek bus brt (bus rapi transit) program in south tangerang city has been running for three years, but the public's interest is still lacking due to a lack of socialization. the community must be invited to use public transportation and invite the public to reduce private cars, hoping that this will reduce congestion and air pollution. faturohman, as the crew of the bus anggrek, stated that he had served as a driver on the trans orchid bus for five years since 2016 until now. according to him, people's attitudes towards public transportation are still not good; they still prefer to use private cars or motorbikes; this happens because of unclear schedules, angkots are crazy, angkot drivers are reckless, smoking in angkots, and dirty angkots. the trans anggrek bus is provided to solve the public transportation problem; the anggrek bus is comfortable because it already uses a 'cooler,' there is a schedule, but information to the public is still lacking, and the fleet is only five buses. what faturohman has experienced during these three years is that passengers are still quiet, sometimes empty, even though the operating costs of this bus are pretty high. in addition to the local government, the private sector is also trying to overcome the problem of public transportation in the city of south tangerang. through csr (corporate social responsibility), sinar mas group provides 17 free buses called bsd link operating in the south tangerang area and the border with tangerang district around the bsd area. although, according to mr. zainal, the driver of the bsd link, this free bus has been operating for two years until now; the passengers are also quiet, there are still many people who don't know and or don't care because the bsd area has an excellent socioeconomic level. hence, people tend to use private cars. discussions jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 1, 2022, pp. 25-32 this study aims to understand the attitude of the people of south tangerang city towards public transportation and private cars, based on interviews and fgds with the user community, the government, and all stakeholders of the opinion that public transportation facilities and services in south tangerang city are still poor, things that need to be improved are facilities from urban public transportation or angkot which are still very concerning, such as an old and inadequate fleet, routes that must be evaluated, schedules, vehicle crews who have to improve their service as well as security in using the angkot itself. there are still many people who choose to use private vehicles, both cars and motorbikes. however, the government and the private sector have tried to facilitate free buses to help people use public transportation comfortably, especially 'angkot.' this study indicates that there is a desire for people to use public transportation and improve facilities and services so that people's attitudes that have been negative about public transit can change by trying to use it and start reducing the use of private vehicles. the south tangerang city government can also use the 'travel demand management' system to find out the community's travel attitude, and it can be predicted how much the community needs for public transportation, especially city transportation. an accurate survey must be carried out on all elements of the south tangerang city community. conclusion based on the results of the interviews, fgd and observation result above, the conclusions of this study are: (1) the public's attitude towards public transportation, especially city transportation is not good because the facilities are not excellent and inadequate, such as dirty, hot, cramped, reckless vehicle crew, extended stops, and routes that are still using the old road; (2) people still rely on private vehicles such as cars and motorbikes because they are more able to manage the time they want, are comfortable and safe; also public transportation has good facilities, people will want to use public transportation; (3) the growth of private vehicles is directly proportional to population growth in the city of south tangerang, this happens because the economic level of the city of south tangerang is relatively high and public transportation services, especially city transportation, are not yet good; (4) the government has made efforts to overcome public transportation problems in south tangerang, such as providing free trans orchid buses. however still, not many people know, and not many are willing to use this trans orchid bus. people's attitudes still assume that using a private car has a higher social status than using public transportation, and (5) the private sector also tries to solve the problem of public transportation by providing the bsd link bus for free. however, like the trans anggrek bsd link bus, it is still empty of passengers even though it has been operating for five years. the south tangerang city government's suggestions for regulators should make a new urban transportation plan, both from facilities, routes, and operating systems, so that people are interested in using public transportation. then, the south tangerang city government can see and imitate the city transportation system in jakarta, which is getting better now. the government must also conduct a survey on the needs of the people of south tangerang city for public transportation. the survey must be comprehensive, detailed, and involve all levels of society to make a modern, integrated, and affordable transportation system available. references anggraeni, a. i. 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(2014). keberadaan kendaraan bermotor (mobil) pribadi sebagai angkutan umum dalam perspektif undang-undang nomor 22 tahun 2009 tentang lalu lintas dan angkutan jalan di kabupaten sumenep. jendela hukum, 1(1), 37187. sriastuti, d. n. (2017). analisis potensi permintaan (demand) angkutan umum pada koridor jalan raya sesetan denpasar. paduraksa: jurnal teknik sipil, 6(1), 6675 doi: 10.22225/pd.6.1.460.66-75 stewart, d., & simmons, m. (2010). the business playground: where creativity and commerce collide (voices that matter) (1st ed.). (n. e. mcdonald, ed.) berkeley: new riders. suroso, a., anggraeni, a. i., & andriyansah. (2017). optimizing smes’ business performance through human capital management. european research studies journal, xx(4b), 588-599 doi: 10.35808/ersj/913. sutandi, a. c. (2015). pentingnya transportasi umum untuk kepentingan publik. jurnal administrasi publik, 12(1), 19-34. correspondence to : uswatunc@unpam.ac.id received: 30 december 2021 accepted: 8 february 2022 published: 1 june 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 2, 2022, pp. 1 8 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction problems in organizations that need to be resolved immediately in reducing the risk of low levels of security are required, especially in the intercourses of the transformation of essential corporate data (santoso, sani, husain, & hendri, 2021). the safety factor is the most crucial thing in providing solutions and responsibilities to maintain service quality from time to time and stick to commitments, just as with the gas entrepreneur who has the function to ensure that any gas appliance, installation pipe, or chimney installed in any workplace under his control to prevent the risk of injury. on the other hand, the need for efficiency and effectiveness in managing the company itself requires every company to be ready and adopt all of the technology (sani, et al., 2020); competition creates inconvenience and threatens the company. if they want to survive, they must face it to progress rapidly and find competitive advantages, one of which is the achievement of customer satisfaction, which marketing strategies can manage. product, price, promotion, place, people, and physical evidence are vital parts of product marketing strategy planning provide a basis for companies to take adequate steps to maintain customer satisfaction (kotler & armstrong, 2015). on the other hand, the organization must actively facilitate critical, creative ideas to improve quality and performance based on new technologies, techniques, and product concepts (jodi, sudjadi, & anggraeni, 2019). one of the critical marketing factors is the quality of service and the best product quality in this case per customer expectations. it is vital for marketers to know and pay attention to the factors that trigger customer satisfaction in creating customer satisfaction. factors that affect customer satisfaction include product quality, service quality, price, cost to get the product, emotions (rita, oliveira, & farisa, 2019). when the market has shifted from the sales era to the customer relationship era, the company's attention also focuses on service quality. service quality is something intangible which is an action or performance offered by one party to another and does not cause any transfer of ownership. it can be seen that in the service there is always an aspect of interaction between the customer and the producer, although the parties involved are not always aware of it. service is not an item but an intangible process or activity (claessens, 2015). competence antecedents is not always considered an important factor to the usage of such new adoption of technology, and not all the role of service and product quality on customer satisfaction at pt iwatani industrial gas indonesia, cikupa tangerang marketing area uswatun chasanah1, agus triyono2, feb amni hayati3 1,2,3management department, faculty of economics and business, universitas pamulang, tangerang selatan − indonesia abstract product, price, promotion, place, people, and physical evidence are vital parts of product marketing strategy planning provide a basis for companies to take adequate steps to maintain customer satisfaction. the research aims to specifically look at the role of service quality and product quality to increase customer satisfaction at pt iwatani industrial gas indonesia marketing area tangerang. the final sample was set at 111 company customers. analysis of the data using multiple linear regression analysis technique that begins with the instrument quality test and the classical assumption test. the conclusion of the research aims to specifically look at the role of service quality and product quality to increase customer satisfaction significantly impacts the test results simultaneously with a contribution of 75.7 percent. still, in partial testing, only product quality factors have a role in increasing customer satisfaction at pt iwatani industrial gas indonesia marketing area tangerang. keywords product quality; customer satisfaction jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 1-8 intention of all people to technology adoption resulted in regular usage behavior (permana, hidayat, & mahardiko, 2021) several factors determine customer satisfaction and any causes in determining the organization's success. the choice of service quality may vary depending on the assessment shape to the customer with few assessment indicators, such as quality, safety, delivery, service dan responsiveness. pt does this. iwatani industrial gas indonesia, which is the subject of this research in creating, satisfying, and retaining customers, strives to produce products by paying attention to the quality of the product such as gas content, purity content, appropriate pressure, cylinder quality, and the best service quality in delivering the desired goods and services. must be following customer expectations so that customers are not disappointed. the phenomenon that occurs at pt iwatani industrial gas indonesia in the cikupa tangerang marketing area needs an evaluation, input, or proposal for the company's management. the company's management must make a proposition to provide periodic inspections of tube and lgc products. in addition, it is necessary to add analytical tools including nitrogen impurity, co2 purity, and co2 moisture. the most common operational definition posits quality as the customer's perception of product and service excellence. in today's competitive environment, quality is the key to success and survival. intense global competition has highlighted the increasing importance of quality. superior quality no longer differentiates competitors; instead (hoe & mansori, 2018). good product quality is what customers want most, where customers want to get satisfaction with the performance of a selected product; there are several product benchmarks (takeuchi & quelch, 1983). several previous studies have concluded, such as improving customer satisfaction in the malaysian engineering industry, what customers highlight as an important area, namely product design that differentiates from others in terms of serviceability, perceived quality, durability, and aesthetics (hoe & mansori, 2018). product quality is the most dominant factor influencing customer satisfaction, compared to brand image and price factors. in addition, it is the link in forming customer loyalty to msme customers in the emping melinjo industrial sector, banten province – indonesia (khoironi, syah, & dongoran, 2018). service quality has a significant effect on customer satisfaction, product quality has a considerable impact on customer satisfaction, and customer satisfaction significantly affects consumer loyalty to restaurant consumers in the city of samarinda (mahsyar & surapati, 2020). however, the fulfillment of e-service quality is not especially related to customer service. still, it substantially impacts customer behavior in studying recent experiences using online retailer websites (rita, oliveira, & farisa, 2019). the research aims to specifically look at the role of service quality and product quality to increase customer satisfaction at pt iwatani industrial gas indonesia marketing area tangerang. the benefits of this research are supposed to be input for companies to identify factors that increase customer satisfaction. literature review service quality according to parasuraman. "service quality is an assessment of global attitudes regarding the superiority of a service (sudarsono, 2016, hal. 57). achievement of total quality requires ten main elements based on margono slamet (1999:75) as follows: (1) focus on customers, namely by providing satisfaction to customers in accordance with expectations; (2) obsession with quality as the final determinant of quality, where the organization must be obsessed with meeting or exceeding what is determined; (3) a scientific approach to the design of the work and in the decisionmaking and problem-solving processes related to the designed work; (4) long-term commitment, so that all employees also want to do the same thing by being fully involved in all existing processes; (5) teamwork, partnerships and relationships are established and fostered both among company employees and with suppliers, government institutions, and the surrounding community; (6) continuous improvement of the system by utilizing specific processes within a system or environment so that the resulting quality can be increased; (7) education and training so that everyone in the company can improve their technical skills and professional expertise; (8) controlled freedom with employee involvement and empowerment in decision making and problem solving so as to increase employee "sense of ownership" and responsibility for decisions made; (9) unity of jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 1-8 goals that can be directed to the same goal; and (10) there is employee involvement and empowerment that does not only involve employees but also involves them by giving a real meaningful impact (ibrahim & rusdiana, 2021, hal. 22-23). product quality product quality is as follows: product quality is the ability of a product to perform its function; this includes the whole durability, reliability, precision, ease of operation, and product repair as well other product attributes (kotler & keller, 2012, hal. 145). product quality is the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs (kotler & armstrong, 2015, hal. 253). product quality has dimensions that are used to analyze the characteristics of a product. according to david garvin, product quality has the following seven dimensions: (1) performance is the primary operating characteristic of the purchased core product; (2) durability, which means how long or the age of a product lasts before the product must be replaced. the greater the frequency of customer use of the product, the greater the durability of the product; (3) conformance to specifications which means the extent to which the essential operating characteristics of a product meet certain specifications of the customer or no defects are found in the product; (4) features in the form of additional products from a core product that can add value to a product and demand flexibility to adapt to market demands; (5) reliability, relates to the possibility of a product experiencing a non-functioning state in a period. the reliability of a product that indicates quality is significant for customers choosing a product to become increasingly important considering the large replacement and maintenance costs that incurred if a product that is assumed to be reliable is damaged; (6) serviceability, and namely service capability, can also be referred to as speed, competence, usability, and ease of product repair; and (7) perceived quality is the result of using indirect measurements because there is a possibility that customers do not understand or lack information on products obtained from price, brand, advertising, reputation and country of origin (tjiptono, 2019, hal. 134). customer satisfaction customer satisfaction is the level of one's feelings after comparing the perceived performance (performance or results) with their expectations (kotler & armstrong, 2015, hal. 180). customers can experience one of three general satisfaction levels, namely if the performance is below expectations, the customer will feel disappointed. still, if the performance matches the expectations, the customer will feel satisfied, and if the performance exceeds expectations, the customer will feel delighted, happy, or cheerfuls (angelova & zekiri, 2011). research model and statement of hypothesis this study uses ipo (input-process-output) logic, a combination of causal models, to formulate an alternative hypothesis (sani, et al., 2020). the model itself can be defined as a construction in the form of structure, form, meaning, and content with certain limitations (husain, 2019). the input of this research includes constructs (variables), namely service quality with tangible indicators, empathy, responsiveness, reliability, and certainty (tjiptono, 2019, hal. 284). product quality with performance indicators, durability, suitability, features, reliability, capability, and impression of quality (hal. 134). the subjects involved are customer perceptions in specific marketing areas, which are then processed using a statistical approach to produce output, namely customer satisfaction with performance indicators and expectations (tjiptono, 2019, hal. 104) at pt iwatani industrial gas indonesia. the hypothesis is a temporary answer to the research problem formulation (sugiyono, 2018, hal. 95). based on the subject matter and problem boundaries regarding service quality and product quality on customer satisfaction, the researcher can draw temporary conclusions or provide the following hypothesis: h1 is suspected of significantly rolling service quality partially on customer satisfaction at pt iwatani industrial gas indonesia marketing area tangerang. h2 is suspected of significantly rolling on product quality partially on customer satisfaction at pt iwatani industrial gas indonesia marketing area tangerang. h3 is suspected of substantially rolling service quality and product quality simultaneously on customer satisfaction at pt iwatani industrial gas indonesia marketing area tangerang. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 1-8 methods the research method is a scientific way (rational, empirical, and systematic) to obtain data with a specific purpose and use. the five human senses can observe rationality, which means the research activities carried out in the study. systematic, which means the process in the research uses logical steps (sugiyono, 2018, hal. 2). this research was implemented in pt iwatani industrial gas indonesia marketing area tangerang is located at bizlink 1 blok p5/21, sukamulya, cikupa district, tangerang, banten 15710. while the research period was carried out for six months, starting from may to october 2020. this research uses a quantitative research approach. the research population is taken from part of the number and characteristics possessed by the people and its aspects to be studied, which are declared as research samples (sugiyono, 2018, hal. 62). the final selection was 111 customers from 154 active customers or companies that made transactions within four months (december 2019 to march 2020). field studies consist of observation techniques, documentation, and questionnaires to collect data using the literature study method. all constructs used an ordinal scale for the ‘linkert’ category (kaptein, nass, & markopoulos, 2010; sani, wiliani, & husain, 2019). the likert scale is managed with a specific gradation from the lowest to the highest (sugiyono, 2018). the analytical method was developed from several stages, and it can make utilized with a structured approach, such as a multivariate model (husain, ardhiansyah, & fathudin, 2021). the data analysis technique used in this research is multiple regression analysis. this stage begins with testing the research instrument to determine the validity of the statement items through the validity test of the results (sugiyono, 2018, hal. 121), then continues with the instrument reliability test, which requires cronbach's alpha value of at least 0.6 to produce a reliable instrument. finally, hypothesis testing was carried out through multiple linear regression equation analysis, coefficient of determination test, ftest, and t statistical test. results and discussion brief history of pt iwatani industrial gas indonesia (igi) pt iwatani industrial gas indonesia is a subsidiary of iwatani corporation (japan) and iwatani corporation pte. ltd (singapore) to meet the needs of companies that use industrial gas in west java. pt iwatani industrial gas indonesia is an integrated gas provider that pays attention to the best service for supply stability, quality control, and safety. pt iwatani industrial gas indonesia provides all industrial, refrigerant, and specialty gases. products pt iwatani industrial gas indonesia is oxygen, nitrogen, argon, carbon dioxide, cooling gas, nh3, h2, he, c2h2, other special gases, and various other gas mixtures. other products supply facility lpg, nitrogen generator, robot (machinery), pipe bender, wire welding, jig and others. research instrument quality test the validity test is intended to test the statement on each item of the question on the evaluative questionnaire or not, while reliability testing is the pattern to try whether a questionnaire is reliable or not. a questionnaire is said to be reliable if a person's answer to a statement is consistent or stable over time. table 1. validity and reliability test results variable/ symbol items r-stats. conclusion of validity test yields conclusion of reliability test service quality ‘x1’ x1.1 0.416 valid, r-count (0.416) is greater than 0.1874 reliable, cronbach’s alpha score (0.899) is more than 0.6 x1.2 0.354 valid, r-count (0.354) is greater than 0.1874 x1.3 0.720 valid, r-count (0.720) is greater than 0.1874 x1.4 0.790 valid, r-count (0.790) is greater than 0.1874 x1.5 0.758 valid, r-count (0.758) is greater than 0.1874 x1.6 0.585 valid, r-count (0.585) is greater than 0.1874 x1.7 0.749 valid, r-count (0.749) is greater than 0.1874 x1.8 0.702 valid, r-count (0.702) is greater than 0.1874 x1.9 0.662 valid, r-count (0.662) is greater than 0.1874 x1.10 0.705 valid, r-count (0.705) is greater than 0.1874 product quality x2.1 0.781 valid, r-count (0.781) is greater than 0.1874 x2.2 0.427 valid, r-count (0.427) is greater than 0.1874 jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 1-8 variable/ symbol items r-stats. conclusion of validity test yields conclusion of reliability test ‘x2’ x2.3 0.733 valid, r-count (0.733) is greater than 0.1874 reliable, cronbach’s alpha score (0.946) is more than 0.6 x2.4 0.810 valid, r-count (0.810) is greater than 0.1874 x2.5 0.811 valid, r-count (0.811) is greater than 0.1874 x2.6 0.842 valid, r-count (0.842) is greater than 0.1874 x2.7 0.724 valid, r-count (0.724) is greater than 0.1874 x2.8 0.741 valid, r-count (0.741) is greater than 0.1874 x2.9 0.676 valid, r-count (0.676) is greater than 0.1874 x2.10 0.664 valid, r-count (0.664) is greater than 0.1874 x2.11 0.806 valid, r-count (0.806) is greater than 0.1874 x2.12 0.745 valid, r-count (0.745) is greater than 0.1874 x2.13 0.772 valid, r-count (0.772) is greater than 0.1874 x2.14 0.776 valid, r-count (0.776) is greater than 0.1874 customer satisfaction ‘y y.1 0.806 valid, r-count (0.806) is greater than 0.1874 reliable, cronbach’s alpha score (0.921) is more than 0.6 y.2 0.789 valid, r-count (0.789) is greater than 0.1874 y.3 0.782 valid, r-count (0.782) is greater than 0.1874 y.4 0.808 valid, r-count (0.808) is greater than 0.1874 y.5 0.771 valid, r-count (0.771) is greater than 0.1874 y.6 0.741 valid, r-count (0.741) is greater than 0.1874 source: data processing (2021) the data processing results shown in the table above indicate that overall the statement items on the research variables are service quality (x1), product quality (x2), and customer satisfaction pt iwatani industrial gas indonesia obtained a statistical r score significantly more significant than 0.1874 (rtable), so the questionnaire items compiled can be declared valid. in addition, the constructed variable also has excellent reliability because it has a cronbach's alpha value which is much greater than a score of 0.6. classical assumption test the classical assumption test is possessed with the stages of data normality test, multicollinearity test and autocorrelation test. table 2. summary of classical assumption test results testing type earning score term of criterion conclusion of test yields data normality kolmogorovsmirnov z 0.078 asymp. sig. (2-tailed) score must greater than 0.05 normal, significant score is greater than 0.05 multicollinearity variance inflation factors (vif) 3.107 vif score must less than 10 no multicollinearity, the vif value is less than a score of 10 and the tolerance value is greater than 0.1 tolerance 0.322 tolerance score must more than 0.1 autocorrelation durbin watson (dw) 1.925 the dw value must be between the du and (4-du) scores no autocorrelation, the du score is 1.723 and (4-du score is 2.277) is betwixt than both of range scores source: data processing (2021) the data processing results above show that residual scores have a significance level greater than 0.05 (0.078 > 0.05), so it is concluded that the research data is normally distributed. vif score less than 10 viz. 3.107 with a tolerance score greater than 0.1, there is no multicollinearity. furthermore, the dw score is between the provisions of du to 4-du, meaning that no autocorrelation is found in the regression model in this study. hypothesis test hypothesis testing was utilized to compute how much influence service quality and product quality have towards customer satisfaction at pt iwatani industrial gas indonesia marketing area tangerang. correspondence to : uswatunc@unpam.ac.id received: 30 december 2021 accepted: 8 february 2022 published: 1 june 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 2, 2022, pp. 1 8 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 table 3. summary of hypothesis results testing point yields earning | coefficient | f-scores significant score conclusion of test yields determination of coefficients r-square score 0.757 has a strong contribution in explaining predictive variables (greater than 0.6) t-tests constant x1 x2 0.668 0.109 0.336 0.630 0.059 0.000 h1 rejected h2 accepted f-tests df 1;2 (2; 108) 167.955 0.000 h3 accepted source: data processing (2021) the data processing results above that it produces an equation of the multiple linear regression model as follows: y = 0.668 + 0.109x1 + 0.336 x2 + e based on the regression model above, it concluded into several things, i.e.: (1) the constant value of 0.668 indicates that if the service quality (x1) and product quality (x2) is 0, then the customer satisfaction (y) value is 0.668; (2) the regression coefficient of the service quality variable (x1) of 0.109 is positive indicating that there is a unidirectional relationship between the customer satisfaction variable and service quality, meaning that if the value of the service quality variable increases by 1 unit, then the value of customer satisfaction increases by 0.109; and (3) the regression coefficient of the product quality variable (x2) of 0.336 is positive indicating that there is a unidirectional relationship between the variable customer satisfaction and product quality. it means that if the value of the product quality variable increases by 1 unit, customer satisfaction increases by 0.336. discussion the results of processing the t-statistical test data on service quality obtained a significance score of 0.059 (more than 0.05) which means that it has no significant role on customer satisfaction with a coefficient score of only 10.9 percent. the findings of these results are not in line with previous research conducted by (mahsyar & surapati, 2020) in the context of service quality to restaurant customers in samarinda, but in line with research (rita, oliveira, & farisa, 2019) which did not explain its relationship to customer service to online retailer sites. therefore, this condition is comprehended that the service quality does not necessarily directly impact increasing customer satisfaction at pt iwatani industrial gas indonesia marketing area tangerang to meet customer expectations, other factors including long-term mutually beneficial relationships with the corporate must also be considered considering that customer satisfaction is formed in a processor time that is not short. the results of processing the t-statistical test data on product quality obtained a significance score of 0.000 (less than 0.05), which has significant implications on customer satisfaction with a coefficient score of 33.6 percent. the findings of these results are in line with previous research conducted by (khoironi, syah, & dongoran, 2018) in product design that differentiates from others in terms of serviceability, perceived quality, durability, and aesthetics (hoe & mansori, 2018). therefore, this condition is comprehended that the product quality inevitably directly impacts increasing customer satisfaction at pt iwatani industrial gas indonesia marketing area tangerang specifically tends to describe durability, reliability, accuracy, ease of operation, product repair, and other product attributes. the results of processing the f-statistical test data on service and product quality obtained a significance score of 0.000 (less than 0.05), which has significant implications on customer satisfaction with a determination of coefficients score of 75.7 percent. the findings of these results mean that the contribution of both factors has substantial importance on customer satisfaction. conclusion the conclusion of the research aims to specifically look at the role of service quality and product quality to increase customer satisfaction at pt iwatani industrial gas indonesia marketing area tangerang significantly impacts the test results simultaneously with a contribution of 75.7 percent. still, in partial testing, only product jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 1-8 quality factors have a role in increasing customer satisfaction at pt iwatani industrial gas indonesia marketing area tangerang. suggestions for this research include: (1) product quality specifically on performance indicators gets a perception that is less perceived by the respondents so that the leadership of pt iwatani industrial gas indonesia marketing area cikupa tangerang must sell products according to the characteristics of the core product and diversification apart from the core product as expected. by the customer; 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(2018). metode penelitian evaluasi: pendekatan kuantitatif, kualitatif, dan kombinasi. bandung: cv. alfabeta. takeuchi, h., & quelch, j. (1983). quality is more than making a good product. harvard business review. harvard business publishing:. diambil kembali dari https://hbr.org/1983/07/quality-is-morethan-making-a-good-product tjiptono, f. (2019). pemasaran jasa: prinsip, penerapan, dan penelitian (cetakan 1) (ii ed.). yogyakarta: penerbit andi. journal of accounting, management, and economics vol. 19, no. 1, 2017, pp.1-10 published by faculty of economics and business universitas jenderal soedirman published online on january 9, 2017 in http://jos.unsoed.ac.id/index.php/jame  correspondence to : 1hebei university, china. e-mail: fatimazakiya@yahoo.com 2hebei university, china. e-mail: liu.xia@126.com received: november 4, 2016 revised: november 25, 2016 accepted: december 16, 2016 introduction in doing a business a company needs capital to keep the business operating. one of the method to get this capital is investing by listed their stock in capital market. after being listed in capital market and raise their capital in there, company’s management has a responsibility to the capital providers to provide a financial report. financial statement as primary source of independent verified information to capital providers about the performance of management, firm’s operation and financial position, has an important role for capital providers in making investment decision. since shareholders, creditors, and other financial statements users rely on the information reported in the financial statement to make a decision, therefore the credibility and the reliability of information reported is crucial. to evaluate their investment, capital providers focus on earnings information reported by management. earnings must have a good quality as one of important indicator of company’s financial health and the financial information that mostly use by investor. however the practice of earnings management can reduce the quality of earnings reported. earnings management practice resulting in the earnings information which does not portrays the true underlying performance of business. since they made a decision based on the information reported in financial statement which does not truly reflected the real financial condition of company, this kind of practice can mislead capital providers and other financial statement users in making decision. to maintain the quality of earnings reported in financial statement and protect shareholders from managerial opportunistic and reporting behavior, assurance from independent parties and public accountant are needed. the assurance from auditor can improve the quality of financial reported by management (arens and elder, 2010). the the influence of audit tenure and audit committee on earnings quality (empirical study on chinese a-shares manufacture companies listed in shenzhen stock exchange) fatima zakiya razani, liu xia hebei university, china abstract one of the auditor and audit committee role is to ensure the quality of corporate financial reporting process. this study aims to test the effect of the length of auditor tenure and audit committee on earning quality measured by the absolute value of discretionary accruals. a sample of 465 companies has been selected and data covering the period 2009-2014 has been collected from these firms, where 2325 observation were used in this analysis. the data collected form csmar and analyzed using gls regression analysis. this study found that the short audit tenure on chinese listed company in shenzhen stock exchange has a significance negative influence on earning quality, meanwhile this study found that audit committee which is measure by the size of the committee does not has a significance influence on earning quality. this study suggests that auditor should have a longer tenure to gain adequate knowledge of client’s business. moreover companies should strengthen the role of their audit committee in monitoring financial reporting process by improved their activity and financial knowledge of the member. keywords auditor tenure; audit committee; earning quality; discretionary accruals; china mailto:fatimazakiya@yahoo.com journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp.1-10 2 audit process doing by independent auditors designed to detemine whether the figures reported in financial statement present the firm’s operating results and financial postion in fair manner. in giving a good assurance to the capital providers, auditor must have a good qualification. one of the qualification is the knowledge of client bussiness industry and accounting system. this kind of qualification can be obtain from the time auditor working with the same client to have a better understanding about the client bussiness. however, if auditor has been audit the same client for a long time, it can impairs the independece and objectivity of auditor and lead to the development of economic and social bonds between the auditor and client due to the continuous involvement. one of the effect of long tenure is the auditors more likely to compromise on their client accounting and reporting choice in order to retain the client. meanwhile short time of audit tenure also resulting in higher risk of audit failures. new auditor with insufficient client-specific knowledge will have to rely more heavily on the estimation and representation made by client firm (gul et al., 2009). gul et al. (2009) also suggest that auditors with short tenure maybe more lax in the early years of auditor-client relationship so that they can retain their job long enough to recoup the initial losses, resulting in lower quality of earnings reported. until now, there have been some argue about the effect of auditor tenure on earnings quality whether it will enhance the quality of earnings reported or vice versa. another way to enhance the quality of earnings reported is by the establishment of audit committe. audit committe is one of corporate governance tools emphasis on audit quality and oversight financial reporting. audit committee make recommendations to the board on the selection of external auditors, liaison between senior financial managaers and external auditor on issues such as the financial statements, audit process and internal control as well as oversee internal auditors and the external auditors to ensure that they act on the best interest of shareholders. the external auditors and audit committee perform to ascertain the validity and reliability of corporate financial statements. however, regulators have questioned the effectiveness of audit committees and auditors in ensuring financial statement that are fairly stated and minus earnings management practice. dechow et al. (2010) mention there are six categories of determinants of earning quality: firm charcateristic, financial reporting practices, governance and controls, auditors, equity market incentives and external factors (e.g political process, tax regulation or capital requirements. this study will examine the effect from auditor factor and governance factor on the earning quality. as an emerging market, chinese stock market is in a high growth stage. consequently investor in chinese stock market must rely on reliable and consistent financial information to identify good companies and their investment evaluation in the market. the majority of investor in chinese stock market are individual investor who must use the publicly available information disclosed in financial report to evaluate their investment (sutthisit et al., 2012), therefore to protect this minority shareholders against managerial opportunistic from reported unreal condition in financial statement, independent and objective assurance from auditor and monitoring from audit committee is important. after the formation of audit committee, it won’t gives a guarantee that the audit committee will be effective in doing their roles especially for monitoring the financial reporting process and gives assurance that information reported in financial statement is free from earning management practice. this study will examine the effect of audit committe measure by the number of audit committee member. the unclear statement about the appropriate length of time of auditor to acquire an acceptable and reasonable level of client knowledge and gain the necessary acquintance with the client’s business and industry which improved the earning quality reported, encourage another research to be done. based on the description aboved, thereby the main research problems are as follows: 1. does the length of auditor-client relationship has a significant influence on earnings quality in chinese listed company? 2. does the audit committe has a significant influence on earnings quality in chinese listed company? journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp.1-10 3 literature review and hypotheses audit tenure and earnings quality some studies argue about the effect of audit tenure on earnings quality. previous audit tenure studies have predicted that audit tenure affect the financial reporting quality (chung and kallapur,2003; gates el al., 2007) these studies shows that early audit tenure decrease earnings quality. these results due to the lack of client-specific knowledge and/or lack of independence due to the external auditor’s incentive to maintain new client relationships (meyers et al.,.2003; fairchild, 2008 and davis et al., 2009). in addition other studies provide evidence of a positive link between audit tenure and earnings quality (carcello and nagy 2004; ghosh and moon, 2005), these findings are consistent with the theory that length of auditor-client relationship has a positive relation on earning quality since the length of tenure is used to achieve a specific knowledge of characteristic of the company resulting in higher quality audits. after specific number of years, excessive familiarity can result and serve as a deterrent to the quality of financial reports. long tenure is assumed lead to less objectivity in the auditor’s behavior, where a “learned confidence” in the client is developed (hoyle, 1987 on johnson et al., 2002). according to johnson et al., (2002) who divided tenure into three categories said the learning effect will diminish when the engagement exceeds eight years. they document higher unexpected accruals when auditor tenure is short than when its medium. moreover, they find no evidence that a longer audit tenure is associated with lower unexpected accruals compared to the medium auditor-client relationship. upon approaching the medium tenure category and extending beyond towards the long tenure, the independence of the auditor is jeopardized as a result of the auditor’s excessive familiarity with client and its industry. the auditor is no longer motivated to innovate or diversify in the audit procedures at this stage of engagement. davis et al., (2009) inferred that management gains additional reporting flexibility with the progress in auditor tenure. this was evident in the direct positive effect the auditor tenure had on discretionary accruals. in example, discretionary accruals increase with the progress in the audit tenure. similiarly chung and kallapur (2003) found that the audit tenure was inversely related to abnormal accruals. research have also used estimated discretionary accruals as proxy for audit quality (dechow and dicheve, 2002; and krishman, 2003) on (adeniyi and mieseigha, 2013). their studies assume that higher estimated discretionary accruals reflect lower earnings quality and thus lower audit quality. absolute discretionary accruals were found to decrease significantly through the passage of the audit firm tenure (chen et al., 2008). the researchers findings are consistent with the argument that audit firm rotation might have adverse effect on the quality of earnings, and accordingly the accruals reported (al thuneibat et al., 2011). from the effect of how investor perceived earning quality. wiemann (2015) using earning response coefficient in proxy earning quality, found that investor perceived the lower earning quality in the early years and later years of audit tenure, they found that the highest perceived of earnings quality is on the 8.5 year. this study is not far from johnson et al. (2002) who found that the optimal earning quality is reach on medium tenure of auditor. myers et al., (2003) examine the relation between auditor and earnings quality using both the signed and absolute value of discretionary accruals as proxies for earnings quality. their results suggest that higher earnings quality is associated with longer auditor tenure, which they interpret as evidence that longer auditor tenure enables auditors to constraints management opportunistic behavior. from several researches above this study draw a hypotheses that a short auditor tenure will reduce the chance of auditor to obtain better knowledge of client’s business and make them lack of capability to detect earnings misstatement and earning management practice in the client’s company resulting in lower earning quality reported by the company. h1: short audit tenure has a significant negative influence on earnings quality. audit committee and earnings quality baxter and cotter (2009) found that the formation of audit committee is associated with an increase in earnings quality. they found that the discretionary accruals decrease significantly in the following years of audit committee formation. the decreasing in the discretionary accruals indiciate that the journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp.1-10 4 formation of audit committee is the effective way to reduce earnings management, since earnings management has an inverse measure with earnings quality, therefore the lower number of earnings management indicate the higher earnings quality reported. lin et al., (2009) study the effect of audit characteristic such as independent directors, financial expertise and size on abnormal accruals in hongkong listed chinese company. they found that ownership concentration and present of government officials in independent directors is important determinants of negative association between audit committee characteristic and earnings management. bala and gugong (2015) found that audit committee size and financial expertise has an inverse relationship on earnings management. berdard et al. (2004) and jaggi et al. (2009) found a significantly negative relationship between earnings management and the existence of audit committee. lin and hwang (2010) using meta analysis shows that there is no significant relationship between the existence of an audit committee and earnings management based on either unweighted or weigthed stouffer combined tests. from several research above the study draw a hypotheses that the size of audit committee has a positive influence on earning quality, because the more member consist in the committee the more knowledge has by the committee to detect earning management practice by the management and it can make the monitoring activities over financial reporting process effective. thereby the hypothesis as a following : h2: audit committee size has a significant positive influence on earnings quality earnings management and earnings quality earnings quality and earnings management are two related concepts. earning quality is equivalent to financial reporting quality and is a function of both the management and auditors. the management is responsible for the (non) financial information that they provide to the auditors, but both management and auditor are responsible for the (non) financial information provided to outsiders. dechow et al.,(2010) define high quality earnings provide more information about the features of a firm’s financial performance that are relevant to a specific decision made by decision-maker. because this definition alone is meaningless can not gives a clear understanding of high earning quality, therefore they add three features. these feature are (1) earning quality is defined only in the context of a specific decision model, (2) the quality of earnings depends on wheter it is informative about firm’s financial performance, (3) earnings quality is jointly determined by the relevance of the underlying financial performance to the decision and by the ability of the accounting system to measure performance. healy and wahlen (1999) defined earnings management as the practice that occurs when managers use judgment in financial reporting and in structuring transaction to alter finanial reports to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported numbers. ball and shivakumar (2008) conclude that low quality earnings are earnings which are managed upwardly. however, low quality earnings could also be earnings that are managed downwardly to postpone earnings to the next year to receive bonuses (healy, 1985). regardless the direction of earning management, once firms engage in earnings managemenr practice their earning quality will be lower than when they do not engage in earnings management. earning management and earning quality concept can be related and generalized each other concept. methods the study’s variables independent variables the independent variables in this study are audit tenure and audit committee. the main research is to see the effect of the length of auditor-client relationship on earnings quality (johnson et al., 2002). audit tenure is measured by the number of years auditor audit the client, because auditor who audits the client usually in a partner form and sometimes one of the partner changes in a certain year, therefore this study only use one partner who has longer experience with the firm client. if the firm switch to a new auditors without any partner from the last partner then the counting start from the beginning. audit committee is measure by the size of audit committee member. the bigger size of the audit committee expected results in better monitoring practice and higher earning quality because the committee will have much more knowledge and more ability to detect and journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp.1-10 5 monitoring the financial reporting process, results in less earning management practice and higher earning quality. dependent variable the dependent variable in this study is earnings quality. because earnings quality is unobservable, proxy is used to determined the earning quality. discretionary accrual model is adopted to proxy earnings quality. because discretionary accruals are accruals that arise through the discretion of management, thus makes discretionary accruals a good indirect measure of earning quality. the jones (1991) and modified jones (dechow et al., 1995) is most widely used model to measure earnings management through discretionary accruals. however, kothari et al., (2005) argue that measure earnings management without controlling for firm performance will produce misspecification in the earnings management model. this study will used the modified jones model and controlled firms performance by lagged return on asset (aerts, 2012). the controlled has been put a place because performance-matched discretionary accruals measure enhance the reliability of the inferences from earnings management research. (kothari et al., 2005). follows are the equation to obtain the discretionary accruals : ))( ) 1 ( 14 1 3 1 2 1 1 ( roaa asset ppe a asset recsale a asset atada t t t t tt t tt        where, tat : total accruals in the year t (income before extraordinary income – cash flow operation) asset t-1 : total asset at end in the year t-1 ∆salet : change in sales in the year t from year t-1 ∆rect : change in accounts receivable year t from year t-1 ppe : gross property, plant and equipment at the end in the year roat-1 : return on asset at end of the year t-1 the coefficient a1, a2, a3, and a4 will be estimated per year and obtain from ols regression. the absolute value of discretionary accruals |da| represent earnings management because earnings management can be income-increasing or incomedecreasing accruals. bedard and johnstone(2004); klein (2002); and abdul rahman and ali (2006) suggest that absolute value of abnormal accruals is a good proxy for the combined effect of be incomeincreasing or income-decreasing earnings management. thus the high absolute value of the discretionary accruals indicate low earnings quality and vice versa. control variables 1) firm size lobo and zhou (2006) found that a large firm has a bigger chance to manage their earnings because of the business complexity and larger operation. the larger the firm the more complex system information in a company. thus makes a difficulty in detect earning manipulation resulting in a lower earning quality reported. 2) leverage defond and jiambalvo (1994) fund that a company with a high leverage of debt has an incentive to manage earning upwards to satisfy the debt covenant. 3) roe roe used as a proxy of profitability. listed firms with lower profitability tend to have a higher chance to manage earnings, thus increase in roe expected to have a negative influence on discretionary accruals and increase the earning quality. 4) loss loss reflected losses on firm’s financial condition which is one of the factor that encourage management to manage their earnings. a company experience loss in their net income has a much bigger incentive to manager their earnings by doing a big bath (kallapur, 2008). therefore resulting in higher level of journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp.1-10 6 earning management and lower earning quality. population and sample the population in this research is chinese a shared manufacture companies listed in shenzhen stock exchange during the period 2010-2014 and the annual report of the companies can be accessed in china securities market and accounting research database (gta/csmar). for the sample, this study use purposive sampling method. criteria for selecting samples as follows: a. the company should be listed on the shenzhen stock exchange on the period 2009-2014 b. the company that used in this study are specified into a share types, and a manufacture company. c. the company used in this study must have complete of information required over period 2009 -2014. research model regression model the study attempt to find the relationship of audit tenure and audit committee on earnings quality. in addition following previous research client firm size, leverage, roe and loss included as control variable.     lossroelevfsize acommitteatenureda 6543 21 || where : |da| : absolute value of discretionary accruals atenure : audit tenure measure by the number of years auditor audit the client acommitte : audit committee, measured based on the total number of audit committee members presented at the end of fiscal year fsize : firm size, measure by natural log of total assets lev : leverage measure by the ratio of total liablities to total assets roe : measured by net profit divided average shareholder’s equity loss : measured by dummy variable, 1 if a company experience a loss, and 0 otherwise. data analysis methodology this study used panel data therefore three tested will be used in analyzing the data. the first one is descriptive statistic to explain the variable of this study. the second is estimation method test, and the last is regression analysis. eviews 9 is used to analyze the data. results and discussion description of research object the population of this research manufacture company of a shares listed in shenzhen stock exchange, the number of population is 1236 companies. in accordance with the purposive sampling method used in this study, 465 companies selected as a sample with 5 years observation within the time period from 2010 until 2014. bringing the total observation of this study as many as 2325 observations. data analysis descriptive statistic descriptive statistic anlysis described the variable used in this study by the mean, median maximum, minimum and standard deviation number. results obtain in this study showed in table 4.1. in this study earning quality is proxied by the absolute value of discretionary accruals. the minimum value of discretionary accruals in this study is 0.0000293 and the maximum value is 4.199672. the average discretionary accruals value is 0.09362 and standard deviation is 0.167022. the audit tenure variable minimum value is 1 while the maximum value is 5. the mean of auditor tenure is 2.1 and the standard deviation is audit tenure (x1) audit committe (x2) earnings quality (y) control variables : firmsize (x3) leverage (x4) roe (x5) loss (x6) journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp.1-10 7 1.0566095, this result indicate the average auditor audit client in chinese listed company are around 2.1 years within 5 years observation. the audit committee minimum value is 0 and maximum is 7, the number zero hows because not all the sample company use in this study already established audit committee since 2010, so some of them still have zero audit committee size within 2010 until 2014. the average size of audit committee established by the chinese listed company in this study is 2.749677. the standard deviation for audit committee is 1.520133. table 4.1 descriptive statistic n mean maximum minimum std.dev da 2325 0.09362 4.199672 2.93e-05 0.167022 auditor tenure 2325 2.101505 5 1 1.0566095 audit committee 2325 2.749677 7 0 1.520133 firm size 2325 21.67621 25.86123 17.75689 1.167631 leverage 2325 0.706904 118.291 0.002865 3.058119 roe 2325 0.091791 25.1686 -5.286353 0.778529 loss 2325 0.110968 1 0 0.314160 regression analysis model the estimation method test aims to determine which model will be use in the regression analysis. selected the estimation method chow test table 4.2 chow test redundant fixed effects tests equation : feweighted test cross-section fixed effects effects test statistic d.f. prob. cross-section f 2.226974 (464,1854) 0.0000 this test use to determine whether the regression model will use fixed effect or common effect method. if the probability of cross-section f is more than 0.05 then common effect (pooled lesast square) will be used in this regression model, but if it is less than 0.05 then the fixed effect method will be used. based on the result obtain in this study, the probability of cross-section f is less than 0.05, therefore the fixed effect method use in this study. hausman specifiction test table 4.3 hausman test correlated random effects – hausman test equation : re test cross-section random effects test summary chi-sq. statistic chi-sq. d.f prob. cross-section random 73.109405 6 0.0000 to assure that fixed model is the right model to analyze the regression model in this study, we use hausman test to choose whether the model will use fixed effect or random effect. if the value of cross section random probability is more than 0.05 then the random effect method is choose but if otherwise the fixed effect method will be used. based on the result obtains (table 4.3) it is show that the probability value of cross section random is less than 0.05 therefore the fixed effect method is much suitable to use in this study rather than random effect. journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp.1-10 8 from the two test above we can coclude that the panel data regression in this study used fixed effect method. regression result table 4.5 regression result variable coefficient std. error t-statistic prob. auditor_tenure 0.004530 0.001084 4.179729 0.0000 audit_commitee -0.000790 0.000896 -0.882210 0.3778 firm_size 0.052889 0.004257 12.42401 0.0000 leverage 0.010198 0.001055 9.669923 0.0000 roe 0.012446 0.001801 6.911495 0.0000 loss 0.015805 0.003753 4.211397 0.0000 c -1.070259 0.091026 -11.75770 0.0000 influence of audit tenure on earning quality to test whether the auditor tenure significantly influence the earning quality, its obtain from pvalue-state. the regression result in table 4.5 show that auditor tenure probability value is 0.0000, with the significant level of 95%. the auditor p-value-stat in this study is less than 0.05, therefore the auditor tenure has a significant influence in earning quality. from coefficient results we can see whether the auditor tenure has a positive or negative influence towards earning quality. the results from table 4.5 shows that auditor tenure has a positive coefficient, the positive coefficient indicate that auditor tenure positively influence the discretionary accruals, which means decreasing the earning quality. based on descriptive statistic, the average year of auditor tenure use in this study is 2.7 years, it means the tenure is a short tenure (johnson et al., 2002) and we found that the short auditor tenure has a positive influence on discretionary accruals, in an inverse has a negative influence earning quality, so the first hypotheses is accepted. a short auditor tenure in chinese listed company reducing the earning quality reported. the conclusion can be draw form this result is a short tenure (under 3 years) is not enough time for auditor to obtain the knowledge of client characteristic, resulting in a lack of ability to detect misstatement or management practice in client company. this study support johnson et al. (2002) whose found that a short auditor tenure associated with lower financial reporting quality and myers et al. (2003) that a longer auditor tenure may have an ability to constraint earning management practice in a company due to better understanding of client’s business. influence of audit committee on earning quality the p-value-stat in table 4.5 shows that audit committee p value is 0.3788, with the significant level of 95%. this result show that audit committee which is measured by size does not significantly influence earning quality. however, the coefficient is – 0.00079, a small number and negative coefficient indicates that audit committee negatively influence the discretionary accruals means has a positive influence on earning quality but not significant. therefore the second hypotheses (h2) is rejected, audit committee size has a positive influence but not significant on earning quality. this means the bigger number of audit committee member doesn’t guarantee the effectiveness of committee in monitoring financial reporting process and higher ability to detect earning management practice. maybe this can be explained by the lack of financial expertise in the committee or the lack activity of audit committee, so they only become a decoration on the company without their effective roles in prevent earning management to produce a higher earning quality. this result support lin (2011) whose using chinese listed company sample found that audit committee size is not significantly related to earning management. lin suggest chinese regulator should strengthen the audit committee function. xie et al. (2003) using 282 firm observation in s&p 500 report that audit committee size is also not significantly related to discretionary accruals. conclusion conclusion of study first, this study found that the length of audit tenure influenced earning quality in chinese listed company. the average years of tenure in chinese listed company is around 2-3 years and this study found the engagement of audit tenure within 1-3 years has a negative journal of accounting, management, and economics, vol. 19, no. 1, 2017, pp.1-10 9 influence on earning quality. this length of time is not enough for auditor to obtain adequate knowledge and better understanding of client’s business thus makes it difficult for auditor to detect earning misstatement and earning management in chinese listed company, resulting in lower earning quality reported. second, this study found that the size of audit committee does not have a significant influence on earning quality in chinese listed company. this study suggests strengthening the role of audit committee in monitoring financial reporting process especially in the activity and financial knowledge of audit member. even if there is lot of audit committee member does not guarantee they provide better monitoring to prevent earning management, if the size is big but they have a less meeting and does not have an adequate member with financial knowledge it might be difficult to detect the earning management and resulting in lower quality of earning reported. recommendation for further research a. further research can use the bigger data than this study, such as use all industry or add another company from other china’s stock exchange to draw a more larger conclusion of the effect of audit tenure and audit committe in china. b. further research can extend the time of auditor tenure, to see the effect of long tenure in chinese listed company. further research can use another characteristic of audit committe, such as the financial expertise and audit committe meeting number to see if the audit committe practice in china is effective and have a significant influence in reducing earnings management practice and has a significance influence in enhancing earnings quality. references abdul rahman, r., & haneem mohamed ali, f. 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(2003). earnings management and corporate governance: the role of the board and the audit committee. journal of corporate finance, 9(3), 295-31. jurnal akuntansi, manajemen dan ekonomi vol. 25, no. 01, 2023, pp. 13-20 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to: ratu.ma@unsoed.ac.id revised: 20 dec 2023 accepted: 15 jan 2023 published: 20 mar 2023 introduction investment is a commitment of funds to one or more assets that would be held over some future time period (jones, 2014). investment involves financial management activity carried out by investors to obtain results or returns as desired (saputro & lestari 2019). according to number 8 of 1995, the islamic capital market is a capital market investment activity based on sharia principles. the sharia principles applied are sourced from the al-quran and hadith, which regulate muamalah activities, namely the relationship between humans and commerce. therefore, the entire mechanism in the islamic capital market is protected from uncertainty, the ribawi (interest rate) system, gambling, and injustice (setiawan, 2017). indonesia, as a country with a majority muslim population, the islamic capital market should have great potential to develop. however, data from the indonesian financial services authority (ojk) on december 2021 shows the opposite. based on single investor identification (sid), the number of investors who are members of the islamic capital market is only 98,870 (1,32%). in contrast, the total number of investors, both sharia and conventional, is 7,49 million (98.68%). this phenomenon is interesting to study in order to find out the factors that can influence the investment decisions of muslim investors in islamic capital market. several previous studies have identified that individual intentions and behavior in investment decisions are based on several variables as explained and predicted by the theory of planned behavior (phan & zhou, 2014; aren & zengin, 2016; putri & rahyuda, 2017; raut & kumar, 2018; aprayuda & misra, 2020). however, researches that predict the intention followed by the behavior of muslim investor in the indonesia islamic capital market are limited (irton, khairawati & murtadlo, 2021). therefore, it is essential to examine this issue to fill the gap. specifically, the purpose of this study is to explore the factors that influence individual investment decisions in the islamic capital market by factors affecting investment decisions by muslim investors in the indonesia islamic capital market: an application of theory of planned behavior ratu ayu sri wulandari ma1; irma harisha sani2; bambang agus pramuka3 1,2,3accounting department, faculty of economics and business, universitas jenderal soedirman, purwokerto abstract the islamic capital market is a capital market whose entire mechanism of activity has been adapted to sharia principles. indonesia, as a country with a majority muslim population, the islamic capital market should have great potential to develop. however, the number of investors in the sharia capital market is still low. this study examines the effect of financial literacy, subjective norms and technological advances on investment decisions using the theory of planned behavior (tpb). the study was conducted on 150 sharia stock investors who are members of the "sharia stock" community. the results of this study indicate that financial literacy has a positive effect on investment interest, subjective norms have a positive effect on investment interest, technological convenience has a positive effect on investment intention, and investment intention has a positive effect on investment decisions. meanwhile, investment intention can mediate the effect of financial literacy, subjective norms, and technological advances on investment decisions. keywords financial literacy; subjective norms; technological advance; investment intention; investment decisions; theory of planned behavior jurnal akuntansi, manajemen, dan ekonomi, vol.25, no.1, 2023, pp.13-20 examining the role of financial literacy, subjective norm, and technological advance. the biggest obstacle to the islamic capital market's growth rate in indonesia is the community's low financial literacy (kemu, 2016). financial literacy is the knowledge of a person who can influence his behavior in maximizing the quality of financial decisions taken to gain welfare. financial literacy is critical because a high level of financial knowledge will affect a person's expertise in optimizing the time value of money (rahman & arsyianti, 2021). several previous studies showed that financial literacy positively affects investment intention (darmawan, 2019; puspitasari, yetty, nugraheni, 2021; harahap et al., 2021) and investment decisions in the capital market (sabri, 2016; mishra, 2018; pranyoto et al., 2018; darmawan et al., 2019; fitria, 2019; wibowo, 2020; gumilar et al., 2020). yusuf (2019) argues that the low level of financial literacy has caused many people to have a short-term financial mindset (saving society) compared to a long-term financial mindset (investing society). the argument is in line with the results of the financial literacy index (figure 1) issued by the financial services authority (ojk) in 2020. literacy concerning investment in the capital market is in the lowest position compared to other sectors. figure 1. financial literacy data based on sectors figure 1. financial literacy data based on sectors source: ojk, 2020 the next factor that is considered to be able to affect the islamic capital market's growth rate is the influence of subjective norms arising from the muslim community in indonesia. subjective norms are a person's perception of social pressure that can influence a person's intention to perform a behavior (ajzen, 1991). most muslim communities in indonesia still consider investments in the capital market unlawful, just like gambling. meanwhile, investments made by muslim communities in indonesia must follow sharia principles. therefore, the islamic capital market was developed to facilitate the needs of the muslim population in indonesia in order to be able to invest under established sharia principles. previous research showed that subjective norms positively affecting investment decision in capital market (listyarti, 2018; prasetyo & manongga, 2019; rahadjeng & fiandari, 2020). even though it has a low growth rate, the islamic capital market continues to strive to increase investors' interest through the technological conveniences provided by its innovation, namely the sharia online trading system (sots) – an online-based trading facility developed under sharia principles to make it easier for investors to transact on the sharia capital market. this technological advance is expected to boost the intention and investment behavior of muslim investors in indonesia. previous research shown that technological advances affect investment intention (cahya, 2019; wibowo, 2020; aisa, 2021) and also affect investment decisions ((flor & hansen, 2013)solanki et al., 2019; amalia et al., 2020). based on the results of a survey of 150 individual investors who are members of the "syariah saham" community, this study provides evidence that financial literacy, subjective norms, and technological advance positively affect investment intentions. the investment intention directly influences the investment decision. in addition, the result prove that investment intention fully mediated the effect of financial literacy on investment decisions. meanwhile, investment intention partially mediated the effect of subjective norms and technological advance on investment decisions. this study makes several contributions. first, this study adds to the existing literature related to investment decision by muslim investor in indonesia islamic capital market. this result also supports the rationale theory of planned behavior. for practical standpoint, this imply that there is a big challenge for the government and the islamic capital market industry to formulate a socialization and education strategy that will be applied to 0 5 10 15 20 25 30 35 40 2016 2019 jurnal akuntansi, manajemen, dan ekonomi, vol.25, no.1, 2023, pp.13-20 increase literacy in the islamic capital market sector so that not only the number of investors increases, but also investor understanding regarding islamic capital market products literature review and hypotheses theory of planned behavior (tpb) theory of planned behavior (tpb) was developed from the theory of reasoned action (tra) in 1988 by fishbein and ajzen. tpb is widely used to understand a variety of behaviors a person possesses. the theory assumes that intention is the main reason that influences a person's behavior. the stronger the intention, the greater the chance for the behavior to occur (ajzen, 1991). a person's intention to perform a behavior is a combination of the attitude towards the behavior and the subjective norms surrounding it. however, in 1988, behavioral control was added as a factor influencing a person's intention to perform a behavior. with the addition of these factors, tra has difference from tpb in understanding a person's behavior. the theory of planned behavior states that three factors, namely influence a person's intention: (a) attitude toward behavioral, is a belief that someone owns towards a behavior. according to tpb, the attitude shown by a person is determined based on his belief in the consequences of carrying out a behavior, whether it will have a positive or negative impact (behavioral beliefs), (b) subjective norms, a person's perception of social pressure that can influence a person's intention to perform a behavior. these perceptions or beliefs are also known as normative beliefs. a person will tend to do a behavior if he feels social pressure around him to do that behavior, and (c) behavioral control (perceived behavioral control), a person's perception or belief that it will be easy or not to carry out a behavior through support from available opportunities or resources. a person will tend to have a solid intention to carry out a behavior if he is sure of the support of the available opportunities or resources. investment decision making a decision investment is an important thing to consider when investing. investment decisions are defined by budiarto (2017) as an action chosen over several investment alternatives to obtain future profits. likewise, pradikasari & isbanah (2018) define investment decisions as concluding a problem by deciding on several investment alternatives. however, pradhana (2018) defines an investment decision as buying, selling, or maintaining ownership of a stock instrument. based on this definition, an investment decision is a person's action to choose an available investment option from several alternative options to obtain profits in the future. investment intention ajzen (1991), in the theory of planned behavior (tpb), states that interest is a person's tendency to perform a behavior influenced by several factors, including attitudes toward behavior, subjective norms, and behavioral control. hurlock (1999) also stated that the interest possessed by a person could be increased through the opportunities available to learn the things he wants. in addition, wardani (2017) states that this feeling of interest arises not because of coercion but because of great interest. as ajzen (1991) stated, intention, or what is commonly known as interest, is a combination that arises from the influence of attitudes toward behavior, subjective norms, and behavioral control. tpb assumes that interest is the main reason that influences a person's behavior. therefore, the stronger the interest someone has to invest, the more excellent the opportunity for investment to occur. financial literacy and investment intention financial literacy is the knowledge of a person who can influence his behavior in maximizing the quality of financial decisions taken to gain welfare. financial literacy is critical because a high level of financial knowledge will affect a person's expertise in optimizing the time value of money (rahman & arsyianti, 2021). faidah (2019) and harahap et al., (2021) reveals that students with good financial literacy tend to have a higher interest in investing than those with poor financial literacy. research to nonstudent respondents also reveals that financial literacy has a positive effect on people's investment intention in the islamic capital market (malik, 2017; darmawan et al. 2019). meanwhile, research by gusni et al. (2020) and puspitasari, yetty, and nugraheni (2021) state otherwise that financial literacy does not affect investment intention. based on previous research's inconsistent results, re-examining the relationship between the two variables is necessary. thus, the hypothesis proposed in this study is: h1: financial literacy has a positive effect on investment intention jurnal akuntansi, manajemen, dan ekonomi, vol.25, no.1, 2023, pp.13-20 subjective norms and investment intention according to the financial services authority (ojk), another factor that is considered capable of influencing the growth rate of the islamic capital market is due to the influence of subjective norms arising from the muslim community in indonesia. subjective norms are a person's perception of social pressure that can influence a person's intention to perform a behavior (ajzen, 1991). according to tpb, a person will motivate to perform a behavior if he gets a referral or approval from his social environment (including religion). referrals or approval from their social environment will influence a person's understanding and intention before deciding. the more a person perceives that his social environment encourages investing in the islamic capital market, the higher the intention a person has in the islamic capital market. deviyanti et al. (2018) stated that subjective norms positively affect student investment interest in the capital market. the greater the influence of the social environment felt by a person, the greater the influence on one's interest in investing. this statement is also in line with the results of listryarti (2018), indrawan and raymonf (2020), and rahadjeng and fiandari (2020). which states a strong relationship exists between subjective norms and the public's investment interest. therefore, based on this argument, the hypothesis in this study is: h2: subjective norms has positive significantly effect on investment intentions technological advance and investment intention ease of technology is a person's perception of ease of access from available facilities to facilitate an activity (yusuf, 2019). the facility referred to sots (sharia online trading system) developed to make easier for investor to transact in the sharia capital market. various facilities provided by sots technology should be one of the driving factors in increasing interest and participation in investment activity because this is under the concept of perceived behavioral control proposed by ajzen (1991) in tpb. he also argues that a person will tend to have a solid intention to perform a behavior if he believes in supporting the available opportunities or resources. this perception can come from experience in the past, calculations for future situations, and attitudes towards the norms that surround an individual. therefore, the higher a person's perception of the facilities available in the islamic capital market, the more it will increase their interest in investing, and vice versa. cahya & kusuma (2019) state that technological advancements influence to investment intention of y-generation. specifically, wibowo (2020) reveals that technological advances have a positive effect on people's investment intention in the islamic capital market. while research by aisa (2021) shows that automatic investment technology affected students’ intention to invest in the capital market. thus, the third hypothesis proposed in this research is: h3: technological advance has a positive effect on investment intention. investment intention and investment decision investment intention is a person's encouragement or intention to take the time to find out and learn more about investing. this intention arises not because of coercion but because there is a great interest in investment that grows through the knowledge possessed by an individual. as ajzen (1991) stated, intention is a combination of attitude toward behavior, subjective norms and behavioral control. the theory of planned behavior assumes that intention is the main reason that influences a person's behavior. the stronger the intention, the greater the chance for the behavior to occur. in this study, intention is described through one's investment interest in the islamic capital market. the stronger the interest in investing in the islamic capital market, the greater the opportunity for investment in that capital market. therefore, the fourth hypothesis proposed in this study is: h4: investment intention has a positive effect on investment decision. investment intention mediate the relation between financial literacy, subjective norms, and technological advance and investment decisions in this study, attitudes towards behavior are described through financial literacy owned by a person; subjective norms are described through subjective norms that arise due to the influence of other people and the surrounding jurnal akuntansi, manajemen, dan ekonomi, vol.25, no.1, 2023, pp.13-20 h4 h5b h2 financial literacy (x1) h1 investment decision (y2) h3 technological advance (x3) subjective norm (x2) h5c investment intention (y1) environment, and behavior control is explained through the convenience of the sharia online trading system (sots) technology contained in islamic capital market. the theory of planned behaviors (tpb) assumes that intention is the main factor influencing a person's behavior and is influenced by several factors, such as attitudes toward behavior, subjective norms, and behavioral control. the stronger an individual has an intention towards behavior influenced by financial literacy, subjective norms, and technological advance, the stronger the decision to invest will be. thus, intentions can be the leading intermediary for a person to perform a behavior. therefore, hypothesis proposed in this study are: h5a: investment intention mediates the effect of financial literacy on investment decisions. h5b: investment intention mediates the effect of subjective norms on investment decisions. h5c: investment intention mediates the effect of technological advance on investment decisions. figure 2. research model methods this study uses a quantitative approach with a survey method. the research population is investors who invest in sharia stock instruments in the islamic capital market and join the "syariah saham" community on the telegram platform. the sampling method uses purposive sampling with the criteria are investors who have experience as investors for at least one year and are muslim. a total of 150 questionnaires were successfully collected and processed. even though the response rate is low (1.09%), referring to the slovin calculation, the minimal sample that can be used is 100 questionnaires. it means that the collected questionnaires are sufficient to be a research sample. partial least square (pls) is chosen as a data analysis technique used with the help of smartpls 3.0 software. the pls analysis technique can be carried out through the following stages: outer model analysis, analysis of the inner model, and hypothesis testing. results and discussion outer model analysis the model used in this study consists of 5 variables with 32 question indicators. the model will be evaluated using the validity and reliability tests in the pls outer model (measurement model). outer model analysis was carried out to confirm that the measurements used are appropriate as a measuring tool (valid and reliable). the result of the outer model test can be seen on figure 2 (out model analysis). figure 3. outer model analysis convergent validity ghozali and latan (2015) argue that an indicator with a value of loading factor above 0.60 is still considered to be valid indicators. the result of convergent validity test (table 1) shows that all indicators are valid. the remaining check for convergent validity is analyzing the ave (average variance extracted) value. an indicator is considered to have good convergent validity if it has an ave value of more than 0.5. the result of ave test shown at table 2. h5a jurnal akuntansi, manajemen, dan ekonomi, vol.25, no.1, 2023, pp.13-20 table 1. convergent validity source: data processed, 2022 table 2. ave value variabel average variance extracted (ave) x1 0,898 x2 0,847 x3 0,892 y1 0,836 y2 0,778 source: data processed, 2022 discriminant validity discriminant validity is evaluated using two assessment criteria; by comparing the ave root with the correlation between the variables and the cross-loading value of each indicator on a variable. the first assessment criterion can be accepted if the ratio of the ave roots owned by a variable is greater when compared to the correlation value between the variables. a comparison of ave roots with correlations between variables in this study is shown in table 3. ave root and correlated variables variabel x1 x2 x3 x4 y1 x1 0,948 x2 0,920 0,967 x3 0,853 0,921 0,945 y1 0,785 0,779 0,751 0,914 y2 0,847 0,882 0,874 0,778 0,898 source: data processed, 2022 composite reliability the research instrument can be said to have good reliability if cronbach's alpha and composite reliability scores are above 0.70. the value of cronbach's alpha and composite reliability in this study is shown at table 4. table 4. composite and construct reliability variabel cronbach’s alpa composite reliability x1 0,865 0,894 x2 0,860 0,891 x3 0,863 0,907 y1 0,838 0,882 y2 0,818 0,868 source: data processed, 2022 inner model (structural test) testing the inner model (structural model) is carried out after the model contained in the study is declared to have met all the assessment criteria for testing the outer model (measurement model). the inner model test was conducted to determine the relationship between research variables through their rsquare, f-square, and q-square values. table 5. inner model (r-square test) variable r2 investment intention (y1) 0,651 investment decision (y2) 0,622 source: data processed, 2022 table 6. f-square test variables y1 y2 financial literacy (x1) 0,073 0,001 subjective norms (x2) 0,186 0,111 technological advance (x3) 0,136 0,026 investment intention (y1) 0,119 investment decision (y2) source: data processed, 2022 the f-square value of the investment decision variable is 0.119, which indicates that the magnitude of the effect of the influence exerted by the independent variable on the dependent variable is moderate. table 7. q-square test variables q2 investment intention (y1) 0,346 investment decision (y2) 0,305 source: data processed, 2022 x1 x2 x3 y1 y2 x1.1 0,680 x1.2 0,790 x1.3 0,702 x1.4 0,636 x1.5 0,741 x1.6 0,703 x1.7 0,755 x1.8 0,711 x2.1 0,739 x2.2 0,667 x2.3 0,675 x2.4 0,690 x2.5 0,638 x2.6 0,757 x2.7 0,817 x2.8 0,693 x3.1 0,798 x3.2 0,875 x3.3 0,873 x4.4 0,821 y1.1 0,604 y1.2 0,806 y1.3 0,747 y1.4 0,819 y1.5 0,734 y1.6 0,744 y2.1 0,672 y2.2 0,715 y2.3 0,769 y2.4 0,696 y2.5 0,746 y2.6 0,736 jurnal akuntansi, manajemen, dan ekonomi, vol.25, no.1, 2023, pp.13-20 the q-square value of the investment interest variable is 0.346. meanwhile, the qsquare value of the investment decision variable is 0.305. the test result shows that the investment intention variable has strong predictive relevance compared to the combined decision variables with moderate predictive relevance. hypothesis testing after testing the inner and outer models, the next step is testing the hypothesis. the output of the path coefficient (table 8) shows that the p-value of the relation between x1→y1; x2→y1; and x3→y1 is all of 0,000 or less than 0,05. it can be concluded that financial literacy, subjective norms, and technological advance positively affect investment intention. thus, the proposed h1, h2, and h3 are accepted. the direct test of y1→y2 (the effect of investment intention on investment decisions), also shown in table 8, reveals that the p-value is 0,001 or less than 0,05, which means that h4 is accepted. table 8. path coefficient (direct effect) hypothesis original sample tstatistics (|o/stdev|) pvalues x1 →y1 0,222 3,786 0,000** x2 →y1 0,389 5,373 0,000** x3 → y1 0,307 4,411 0,000** y1 →y2 0,359 3,410 0,001** x1 →y2 0,033 0,521 0,603 x2 →y2 0,335 3,664 0,000** x3 →y2 0,151 2,539 0,011* *significant at 5%; **significant at 1% source: data processed, 2022 in order to prove the existence of the mediating effect, the first step is to test the direct influence of the independent variable (x1, x2, x3) on the dependent variable (y2). the result presented in table 8 shows that x1 has a p-value of 0,603 or greater than 0,05. it means that financial literacy does not affect the investment decision. meanwhile, the direct effect of subjective norms (x2) and technological advances (x3) show the p-value are less than 0,05, means that subjective norms, technological advance positively affects investment decisions. the third step to finding out whether there is a mediating effect in this study is executed by knowing the test results of the influence of the independent variable (x) and the effect of the mediating variable (y1) on the dependent variable (y2) simultaneously. following are the results of testing the model presented in table 9. table 9. indirect effect (mediation) hypothesis original sample t statistics (|o/stdev|) p values x1 →y1 → y2 0,079 2,575 0,010** x2 → y1 → y2 0,139 3,058 0,002* x3 → y1 →y2 0,110 2,493 0,013* *significant at 5%; **significant at 1% source: data processed, 2022 indirect test is executed to analyses the effect of investment decision through investment intention as a mediation variable. the result of the study shows the p-value of x1→y1→y2 (h5a) is 0,010 or less than 0,05, which means that investment intention mediates the effect of financial literacy on investment decisions (h5a is accepted). the indirect effect of the relation model of x2→y1→y2 (h5b) also has a p-value 0,002 and or less than 0,05 which means investment intention mediates the effect of subjective norms on investment decisions (h5b is accepted). the remaining model x2→y1→y2 (h5b) has a p-value 0,013 or less than 0,05 which means that investment intention mediates the effect of technological advance investment decisions (h5b is accepted) testing the mediation effect is called fully mediated if the effect of x→y2 is insignificant on t-statistics < 1.96 and the effect of x→y1→y2 shows significant results on tstatistics >1,96. however, if the test on the x→y2 model shows significant results and the effect of x→y1→y2 is also significant, this condition is called a partial mediation effect. conclusion this study examines the effect of financial literacy, subjective norms and technological advances on investment decisions using the theory of planned behavior (tpb). the results of this study indicate that financial literacy has a positive effect on investment interest, subjective norms have a positive effect on investment interest, technological convenience has a positive effect on investment intention, and investment intention has a positive effect on investment decisions. meanwhile, investment intention can mediate the effect of financial literacy, subjective norms, and technological advances on jurnal akuntansi, manajemen, dan ekonomi, vol.25, no.1, 2023, pp.13-20 investment decisions. the research was conducted online via a google form while the covid-19 pandemic was in progress, limiting the space for researchers to assist with questionnaires. the distribution of questionnaires is expected to use incentives that are even more attractive to produce a higher response rate and provide a better picture of investment decisions. references aini, nur. (2017). pasar modal syariah sulit berkembang, apa kendalanya?. diakses pada 20 desember 2020, dari https://www.republika.co.id/berita/eko mbang-apa-kendalanya ajzen, i. (1991). the theory of planned behavior. organizational behavior andhuman decision processes, 50, 179-211. amalia, n., malikah, a., & mahsuni, a. w. (2020). faktor-faktor yang mempengaruhi pengambilan keputusan pada investasi saham (studi kasus pada mahasiswa fakultas ekonomi dan bisnis universitas islam malang). jurnal ilmiah riset akuntansi, 9(01). anggraiawan, i., isynuwardhana, d., & mahardika, d. (2017). determinan perilaku investor individu dalam pengambilan keputusan investasi saham pada investor yang terdaftar di gi-bei telkom university. eproceedings of management, 4(1). cahya, b. t. (2019). pengaruh motivasi dan kemajuan teknologi terhadap minat investasi saham. al-masharif: jurnal ilmu ekonomi dan keislaman, 7(2), 192-207. cahya, a. d., & setyarini, e. (2020). menguji keputusan berinvestasi dari perspektif pembelajaran pasar modal, kemajuan teknologi, uang saku mahasiswa dan bauran pemasaran (galeri investasi bursa efek indonesiafakultas ekonomi ust). upajiwa dewantara: jurnal ekonomi, bisnis dan manajemen daulat rakyat, 4(1), 60-72. faidah, f. (2019). pengaruh literasi keuangan dan faktor demografi terhadap minat investasi mahasiswa. journal of applied business and economic, 5(3), 251-263. darmawan, t., nurwahidin, n., & anwar, s. (2019). analisis faktor-faktor yang memengaruhi keputusan investasi di pasar modal syariah (studi kasus pada investor saham syariah di indonesia). jurnal middle east and islamic studies, 6(2), 192-214. indrawan, m. g., & raymond, r. (2020). pengaruh norma subjektif dan return ekspektasian terhadap minat investasi saham pada calon investor pada program yuk nabung saham di kota batam. jurnal akrab juara, 5(3), 156166. ghozali, imam & hengky, latan. 2015. konsep, teknik, aplikasi menggunakan smart pls 3.0 untuk penelitian empiris. bp undip. semarang reilly, f. k., & brown, k. c. (2011). investment analysis and portfolio management (text only). cengage learning listyarti, i. (2018). pengambilan keputusan investasi investor di pasar modal indonesia ditinjau dari teori reasoned action. journal of business and banking, 7(2), 237-250 garman, e. thomas, and raymond e. forgue. 2010. personal finance. journal of chemical information and modeling. vol. 53. mason: joe sabatino yusuf, m. (2019). pengaruh kemajuan teknologi dan pengetahuan terhadap minat generasi milenial dalam berinvestasi di pasar modal. jurnal dinamika manajemen dan bisnis, 2(2), 86–94. https://doi.org/10.21009/jdmb.02.2.3 jurnal akuntansi, manajemen, dan ekonomi, vol.25, no.1, 2023, pp.13-22 correspondence to : dewiandriani.sda24@gmail.com received: 4 march 2022 accepted: 15 april 2022 published: 1 june 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 2, 2022, pp.38 45 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction every organization, in achieving its goals, is expected to be able to manage and develop its resources, and one of the resources is human resources (hr). humans are the principal capital contained in an organization. the success or failure of an organization in achieving its goals lies in the hands of humans in the organization. realizing the importance of human resource management in achieving organizational goals, companies and leaders need to increase their attention to employees to improve their work performance. the performance of these employees will determine the progress of a company. a leader must be able to create an atmosphere that can support the creation of high performance from employees. one that affects employee performance is work experience. a result is achieved by a person carrying out the tasks assigned to him based on skill, experience, sincerity, and time. supported by hasibuan (2012). every employee is expected to have high job satisfaction and be accompanied by discipline, which will increase productivity later. afandi (2016) said that job satisfaction occurs due to performance or work performance so that more productive workers will get satisfaction. in order to achieve organizational goals, an appropriate workforce placement is also needed for each division or department within the organization. meldona & siswanto (2011) says that placement allocates employees to certain work positions, assigning an employee to a job. one of the problems at pt. ramayana lestari sentosa tbk. is the discipline of employees that still low to meet the provisions of working hours. alternatively, in other words, a lot of employees enter the office after the specified time. as well as some absent employees, are marked by high levels of employee absenteeism, thus hindering the achievement of company goals, and this also results in employee performance. literature review and hypotheses human resource management is the science and art of managing the relationships and roles of the workforce to be effective and efficient in helping the realization of the goals of the company, employees, and society. thus, the focus studied by human resource management examines the characteristics and all ins and outs of the human workforce. from the previous research studies and the theories mentioned above, the following is an illustration that will prove the influence of the effect of work experience, job satisfaction and work discipline on working achievement with job placement as intervening variables on pt. ramayana lestari sentosa tbk. sidoarjo dewi andriani1*, dita listyana anggraeni1, joni johanda putra2, monica rosiana3 1 management, universitas muhammadiyah sidoarjo, indonesia 2 fisheries and marine science, universitas jenderal soedirman, indonesia 3 management, universitas jenderal soedirman, indonesia abstract this study aims to determine the effect of experience, satisfaction, and work discipline on job performance and the influence of experience, satisfaction, and work discipline on job performance with placement as an intervening variable at pt ramayana lestari sentosa tbk. the approach used in this research is quantitative. the population in this study was 250 employees. this research used non probability sampling especially purposive sampling. the sample in this study was 96 respondents—analyzed using smartpls 3.0 software. the results show that experience, satisfaction, and work discipline have a significant effect on work performance, experience has a significant effect on job performance, satisfaction has a significant effect on job performance, and discipline has a significant effect on job performance. in addition, the results show that experience, satisfaction, and work discipline significantly affect job performance through job placement as an intervening variable. keywords experience, job discipline satisfaction, job performance, job placement jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.38-45 work experience, job satisfaction and work discipline on work performance with work placement as an intervening variable. furthermore, to facilitate understanding of the concept description below, the conceptual model used in this study will be shown in figure 1. work experience work experience is the same work that has been experienced before and needs attention and consideration in work placements. the fact shows that there is a tendency that the longer they work, the more experience the workforce has. work experience gives a direction that the person concerned has relatively high expertise and skills. (ardana et al., 2012). the purpose of work experience is to get employees with more working hours who are expected to have various kinds of experience in solving various problems, according to each employee's individual. the skills possessed by employees are easier to do with efficiency using tools and thoughts, so it is hoped that they will be able to improve work abilities, both in the speed of work and in the quality of the results. (ardana et al., 2012) job satisfaction understanding states that job satisfaction is an employee's attitude towards work related to work situations, cooperation between employees, rewards received at work, and matters relating to physical and psychological factors. (sutrisno, 2016). work experience is obtained for employees with more working hours who are expected to have various kinds of experience in solving various problems, according to each employee's individual. the skills possessed by employees are easier to do with efficiency using tools and thoughts, so it is hoped that they will be able to improve work abilities, both in the speed of work and in the quality of the results. (ardana et al., 2012) work discipline sutrisno, (2016) in everyday life, wherever humans are, rules and regulations are needed to regulate and limit every activity and behavior. however, these regulations will be meaningless if sanctions for violators do not accompany them. afandi (2016) states that work discipline is a tool used to change behavior and increase awareness and willingness to obey all company regulations and applicable social norms. work performance a person achieves work performance in carrying out the tasks assigned to him based on skills, experience, sincerity, and time. hasibuan, (2012). according to some experts, according to sutrisno (2016), the definition of work performance is the result of work achieved by someone from his work behavior in activities. according to steers in sutrisno (2016), generally, people believe that individual work performance is a combined function of three factors, namely: ability, temperament, and interests of a worker, clarity, and acceptance of an explanation of a worker's role level of work motivation although each factor is individual can also have significant meanings, but the combination of the three greatly determines the level of output of each worker, which in turn helps the overall performance of the organization. job placement placement relates to adjusting one's abilities and talents with the work. a critical manager's job is to place people in the correct positions. a person is given a job according to the knowledge, skills, and abilities of the job requirements. (bangun, 2012). placements can also be reserved for existing employees, which means retaining their position or transferring them to another job. the order consists of two ways new employees from outside the company and assignment in a new place for old employees (also known as a replacement or internal arrangement. line managers mostly make placement decisions. usually, supervisors are consulted to determine the order of certain employees in the future (rivai in meldona & siswanto, (2011). methods the population in this study were permanent employees of pt. ramayana lestari sentosa tbk in sidoarjo. that is, as many as 250 employees, the research sample using the non-probability sampling technique used for this research is purposive sampling. the sample in this study was 96 respondents. in this research, the type of data used is quantitative data. data sources are divided into primary data from the research object, namely data from respondents and primary data from pt. ramayana lestari sentosa tbk. namely, organizational structure, attendance jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.38-45 data, vision-mission, company profile, and the number of employees. data collection techniques from questionnaires were then measured using a likert scale. in contrast, the data analysis technique uses structural equation analysis (sem) with partial least square (pls) 3.0 software, including descriptive analysis, an outer model which includes convergent validity, discriminant validity, composite reliability, and second-order confirmatory analysis, an outer model which includes (rsquare). hypothesis testing includes path coefficient tests and sem analysis with mediating effects. results and discussion in this chapter, the researcher will present the results of data analysis which is the result of observing several variables that have been used by regression models using the smartpls 3.0 application program, which has described in the previous chapter; this research involves three exogenous variables namely experience, satisfaction and discipline, then one endogenous variable is work performance, and one intervening variable is a work placement. convergent validity convergent validity of the measurement model with reflective indicators can be seen from the correlation between item/indicator scores and construct scores. individual indicators are valid if they have a correlation value above 0.50 (ghozali and latan, 2015). the results of loading items on the outer model can be seen in figure 2. based on the loading value, it can be concluded that at this testing stage, all items from the research variables are valid and have met convergent validity or were declared valid because all things have loading values above 0.5. from this test, it can be concluded that at this testing stage, all items from research variables are accurate) so it can be said that the statement item is the most representative (representative) to measure each construct). discriminant validity another method to assess discriminant validity is comparing the ave's square root. for each construct with a correlation between constructs with other constructs. the model of average variance extracted (ave) has good discriminant validity if the value (ave) is >0.5. based on the results, it can be explained that the fifth result has an ave value above 0.5, so it can be said that the data has good discriminant validity. test reliability with composite reliability in addition to seeing the value of the factor loading construct as a validity test, a reliability test is also carried out in the measurement model. a reliability test was conducted to prove the accuracy, consistency, and accuracy of the instrument in measuring a construct. the instrument will be said to be reliable if the cronbach alpha value is more significant than 0.6. based on the calculate, it can be seen that the value of all variables in reliability testing using cronbach's alpha> 0.6 or composite reliability value> 0.7. it can be concluded that the variables tested are valid and reliable. second order confirmatory to assess the effect between variables, a bootstrapping procedure was performed. the bootstrapping process uses i(all original samples to resampling. in the bootstrapping resampling method, the significance value used) t-value is 1.96 (significance level = 0.5). evaluation of the structural model (inner model) r-square evaluation of the value of r2 the interpretation of the value of r2 is the same as the interpretation of r2 for linear regression, namely the amount of variability of endogenous variables that can be explained by exogenous variables. the results of the pls bootstrapping process for the r-square value can be seen in table 1. based on the table 1, it can be seen that the r-square value for the work placement variable is 0.548. the acquisition value explains that the work placement is 54.8%. then the r-square value obtained from the work performance variable is 0.491. this value explains that work performance is 49.1%. hypothesis testingpath coefficient test based on the results, all items are significant to the construct with a t-statistic value > 1.96 and p-value <0.05, next is the result of testing the hypothesis indirectly or the indirect effect obtained from the specific indirect effect on smartpls 3.0 program in this study through the inner model. table 3 shows that the relationship between work experience and work performance mediated by job placement is still jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.38-45 significant, with a t-statistic value of 2.737, which is greater than 1.96. job satisfaction on job performance has a significant effect with a t-statistic value of 2,552, more than 1.96. and work discipline on work performance also has a substantial impact with a t-statistic value of 1,972, more than 1.96. in the final stage of testing, if the effect of exogenous variables on endogenous variables is significant and the impact of mediating variables on endogenous variables is substantial at t-statistic > 1.96, then mediation is proven to judge the effect of exogenous variables on endogenous variables. discussion h1: there is an effect of work experience on work performance based on the results of data analysis proves that work experience has an effect on work performance at pt. ramayana lestari sentosaa tbk in sidoarjo, and has a significant positive influence. empirical studies show the work experience of employees of pt. ramayana lestari sentosa tbk in sidoarjo is quite good; this is evidenced by employees who can clearly understand the tasks assigned by their superiors. the work that has been completed has a good impact on the outcome. in addition, to complete the job in his way, because according to the knowledge and skills possessed, master the equipment provided by the company and always know information about how well the work is done. h2: there is an effect of job satisfaction on job performance based on the results of data analysis proves that job satisfaction has an effect on job performance at pt. ramayana lestari sentosa tbk in sidoarjo, and has a significant positive influence. empirical studies show that employees at pt. ramayana lestari sentosa tbk. in sidoarjo is satisfied with their colleagues and the facilities provided by the company. this means that the job satisfaction of employees is quite good. this is evidenced by employees who have good relations with their co-workers and consistently support their fellow employees. in addition, it is proven by the security and comfort in the workplace with the facilities provided by the company, as well as being able to make employees work comfortably. h3: there is an effect of work discipline on work performance based on the results of data analysis proves that work discipline has an effect on work performance at pt. ramayana lestari sentosa tbk in sidoarjo, and has a significant positive influence. empirical studies show that employees at pt ramayana lestari sentosa tbk. we need to improve discipline, especially in terms of attendance or work attendance, and the completion of each task so that there are no delays. this means that the work discipline possessed by employees must comply with all company regulations, and it is emphasized that no employee is late to complete tasks and minimize errors in completing the studies. with work, discipline will determine the achievement of each employee in the organization. h4: there is an effect of work experience on work placement based on the results of data analysis proves that work experience has an effect on job placement at pt. ramayana lestari sentosaa tbk in sidoarjo, and has a significant positive influence. empirical studies say that employees at pt ramayana lestari sentosa tbk in sidoarjo. work experience is significant in placing employees in the correct position, with experience making it easier to understand the task, have the knowledge and skills and master the work and equipment provided by the company. this means that employees with work experience will get more consideration regarding work placement. because with experience, you will know how well the work is quickly completed in carrying out the assigned tasks. h5: there is an effect of job satisfaction on job placement based on the results of data analysis proves that job satisfaction has an effect on job placement at pt. ramayanah lestari sentosa tbk in sidoarjo, and has a significant positive influence. empirical studies show that at pt ramayana lestari sentosa tbk in sidoarjo, placing employees in the correct position or position can help increase work. promotion opportunities, make feel satisfied with the work environment and can improve working relationships with fellow employees in the interests of the organization and the employees themselves. . and can increase job satisfaction in carrying out work well because placement is a decisive process in getting competent employees, by assigning tasks according to their abilities. h6: there is an effect of work discipline on work placement based on the results of data analysis proves that work discipline has an effect on job placement at pt. ramayana lestari sentosa tbk in sidoarjo, and has a significant positive jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.38-45 influence. empirical studies show that employees at pt. ramayana lestari sentosa tbk in sidoarjo, it is very important to maintain discipline. because discipline will affect placing someone in the correct position, thus setting an example for other co-workers. discipline is a rule that must be obeyed to create an orderly state to provide comfort in work. h7: there is an effect of job placement on work performance based on the results of data analysis proves that job placement has an effect on job performance at pt. ramayana lestari sentosa tbk in sidoarjo, and has a significant positive influence. empirical studies show that the right arrangement at pt ramayana lestari sentosa tbk will lead to the enthusiasm and high employee morale in completing work. this means that the order of employees is a series of steps to decide whether or not an employee is placed in a particular position within the company to obtain optimal performance from each employee. h8: there is an effect of work experience on work performance through job placement as an intervening variable the data analysis results prove that work experience influences work performance through work placement as an intervening variable at pt. ramayana lestari sentosa tbk in sidoarjo. and have a positive effect. so that the work experience applied by employees is quite good, and can provide arrangements that are by work skills and have an impact on increasing employee work performance. this empirical study at pt ramayana lestari sentosa tbk with work experience helps increase knowledge with skills to improve performance at work and in placement is a series of steps carried out to decide whether or not an employee is placed in a specific position to obtain optimal work performance from every employee. h9: there is an effect of job satisfaction on job performance through job placement as an intervening variable the data analysis results prove that job satisfaction influences job performance through job placement as an intervening variable at pt. ramayana lestari sentosa tbk in sidoarjo. and has a significant positive effect. so that the job satisfaction applied by employees is quite good, and can provide work placements that are by the employee's position at work and have an impact on increasing employee performance. with job satisfaction helps add enthusiasm to work to improve work performance. as well as in the placement is a series of steps carried out to decide whether or not an employee is placed in a particular position to obtain optimal work performance from each employee. h10: there is an effect of work discipline on work performance through job placement as an intervening variable the data analysis results prove that work discipline influences work performance through job placement as an intervening variable at ipt. ramayana lestari sentosa tbk in sidoarjo. and has a significant positive effect. so that the work discipline applied by employees is quite good and can provide arrangements that are by work skills and have an impact on increasing employee performance, this empirical study at pt ramayana lestari sentosa tbk with work discipline helps to improve order and comfort at work to improve work performance, as well as in placement is a series of steps carried out to decide whether or not an employee is placed in the correct position to obtain work performance. optimal for each employee. conclusion based on the results, it can be concluded that the work experience variable has significantly positively affected work performance through work placement as an intervening variable, and job satisfaction has a significant positive effect on job performance as an intervening variable at pt. ramayana lestari sentosa tbk in siodoarjo and work discipline significantly positively affect job performance through job placement as an intervening variable. for further research, it is necessary to add studies by locus and focus, whereby the locus researches one company and compares it with several other companies. references afandi, p. (2016). concept dan indikator . edisi 1 cetakan 1. yogyakarta: cv budi utama, anggota ikapi. amirullah, h. &. (2016). metode penelitian bisnis pendekatan kuantitatif dan kualitatif. cetakan pertama, malang: media nusa creative. ghozali, i. (2015). aplikasi analisis multivariate . edisi 2. yogyakarta: undip. hasibuan, m. (2012). manajemen sumber daya manusia . edisi keenam belas, jakarta: bumi aksara. hayati, & widiana. (2015). pengaruh disiplin, prestasi kerja dan pengalaman terhadap penempatan kerja pada karyawan pt. inti jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.38-45 jawa teknik surabaya. jurnal manajemen. vol. 4, no. 3. jogiyanto, & willy. (2015). partial least square(pls). edisi 1, yogyakarta: cv. andi offset. lukiyana, & sriyanto. (2017). pengaruh rekrutmen dan pengalaman kerja terhadap prestasi kerja dengan penempatan kerja sebagai variabel intervening. media manajemen jasa, volume 4 nomor 1. maulana, k. (2019). pengaruh penempatan dan lingkungan kerja terhadap prestasi kerja karyawan pt. jelajah laut nusantara jakarta. jurnal ekonomi dan industri, volume 20, no 1. p-issn : 0853-5248. meldona, & siswanto. (2011). perencanaan tenaga kerja. cetakan ke-1. malang: uinmaliki press (anggota ikapi). sarkasih, & rahmansyah. (2017). pengaruh motivasi dan disiplin kerja terhadap prestasi kerja karyawan packaging pt. astra honda motor parts centre. jurnal manajemen bisnis krisnadwipayana, vol 5, no 2. sugiyono. (2017). metode penelitian manajemen. cetakan ke-4, bandung: alfabeta. sutrisno, e. (2016). manajemen sumber daya manusia . edisi pertama, cetakan ke-8 jakarta: prenada media group. wibawa, i. g., & sriathi, a. (2017). pengaruh kompensasi, motivasi dan disiplin kerja terhadap prestasi kerja karyawan. e-jurnal manajemen unud. vol. 6, no. 12, issn : 2302-8912. list of tables table 1. r2 value of endogenous variable no endogenous variables r-square r square adjusted 1. job placement (z) 0.548 0.533 2. working achievement (y) 0.491 0.469 table 2. path coefficient of significance measurement (t-statistics) constructi original sample (o) mean (m) standardt deviation (stdev) t statistics (|o/ stdev|) p values work experience -> working achievement 0.177 0.176 0.087 2.027 0.043 job satisfaction -> working achievement 0.261 0.257 0.109 2.394 0.017 work discipline -> working achievement 0.695 0.703 0.062 11.234 0.000 work experience -> job placement 0.351 0.357 0.076 4.601 0.000 job satisfaction -> job placement 0.472 0.466 0.082 5.723 0.000 work discipline -> job placement 0.179 0.175 0.072 2.490 0.013 job placement -> working achievement 0.447 0.443 0.134 3.327 0.001 table 3. spesific indirect effect konstruk originall sample (o) sampleimean (m) standardt deviation (stdev) t statistics (o/stdev) p values x1 → z →y 0.157 0.157 0.057 2.737 0.006 x2 → z →y 0.211 0.210 0.083 2.552 0.011 x3 → z →y 0.080 0.078 0.041 1.972 0.049 jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.38-45 list of figures figure 1. conceptual framework figure 2. outer loading test results figure 3. results of bootstrapping analysis correspondence to : herna.rizaldi@live.com received: 2 february 2022 accepted: 4 april 2022 published: 1 june 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 2, 2022, pp. 14 22 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the development of smartphones is the result of advances in mobile technology which is moving faster. owning and using a smartphone has become a lifestyle for modern society. the world's leading technology companies are constantly striving to innovate their products with the aim of winning the market competition. innovation can be realized in various things such as design, appearance, specifications, features, quality and performance. every year each smartphone manufacturer releases their new product, product updates can be seen from each series in the product. regular product releases are also an effort to maintain existence and at the same time deter competitors in the market. apple inc., is a multinational technology company from cupertino, california, united states that operates in the design, development, integrated hardware and software technology, with the title as the largest technology company in terms of revenue and assets in the world (maulidi and yuliati, 2017). apple is one of the companies that sells smartphone products. products made by apple with the iphone brand occupy the top position in the ranks of the most popular smartphone brands with the highest market share in the world. table 1. top 6 mobile vendor market share worldwide january 2022 mobile vendor market share apple iphone 29,51% samsung 27,16% xiaomi 11,54% huawei 6,66% oppo 5,29% vivo 4,26% source:https://gs.statcounter.com/vendormarket-share/mobile/worldwide accessed on february, 1st besides being used to make calls and send messages, smartphone users also use it to send and reply to emails, chat, social media, video calls, browse to find various kinds of information they need, take pictures, and record videos with the embedded camera feature. the more activities that can be done using a smartphone make users feel unable to not use it. this research was conducted to find out how the people of purwokerto responded to the phenomenon of popularity and high market share based on these data on iphone purchase intentions. studies on marketing state that consumer purchase intentions can be shaped by several things, including brand the influence of brand popularity, perceived quality, price, and need on purchase intention iphone products in purwokerto herna rizaldi 1master of management, economics and business faculty, universitas jenderal soedirman, indonesia abstract this study is a survey research that aims to determine and analyze the effect of brand popularity, perceived quality, price, and need on purchase intentions on iphone products at purwokerto city. the sample size in this study amounted to 120 using purposive sampling technique. based on the results of data processing, it is known that brand popularity has no significant and negative effect on purchase intention. price has a significant and negative effect on purchase intention. perceived quality and need have a significant and positive effect on purchase intention. the findings in this study are that popularity is not always a consumer factor in generating purchase intentions, while the factor that has the greatest influence on purchase intentions is need. keywords brand popularity; perceived quality; price; need; iphone jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 14-22 popularity (nathani and budiono, 2021), price and perceived quality (aztiani, et al., 2019) and needs (liwe and nurcaya, 2019). the benefit of this research is to investigate and analyze the effect of brand popularity, perceived quality, price, and need on the purchase intention of iphone products. brand popularity (bp) brand is a name, term, symbol, attribute, which has special characteristics attached to a product as a differentiator from other similar products (kotler and keller, 2012). brands are used to assist consumers in recognizing a product from a particular manufacturer or company. in addition, the brand also functions as product identification among the many products on the market. the strength of a brand lies in its ability to attract consumers to buy products with that brand (goenawan, 2014). every company competes to make the brand on their product popular. brand popularity can be defined as the level of purchase and consumer knowledge about the brand (kim and chung, 1997), the higher is the more popular. brand popularity can also be seen from how much market accepted (whang et al., 2015) so that if the market share is high then the brand can be said to be a popular brand. the study of brand popularity in the classical marketing literature explains that popular brands are characterized by higher user growth, strong corporate image, and occupying the top position in market share (raj, 1985). the study is still relevant today, so it can be used to determine the level of brand popularity in the market. brand popularity can also be used to find out how consumers recognize a product brand. the popularity of the brand referred to in this study is the level of popularity of smartphone products with the iphone brand. indicators of brand popularity include attractiveness, expertise or excellence, and characteristics (nathani and budiono, 2021). perceived quality (pq) perceived quality is defined as a statement or consumer assessment of a product, seen from the performance and ability of the product to meet consumer expectations (teas, 1993). measurement of perceived quality is based on the subjective side of buyers and users of a product (grunert, 2005). perceived quality is an important part of a product or brand that is attached to the assessment of a consumer (aaker, 1991) it is a discussion in the marketing literature because it can determine competitive advantage. according to zeithaml (1988) perceived quality is not the actual quality of the product, but is a subjective judgment or assumption of consumers about a product. perceived quality can be used to determine consumer ratings of what they value the brand of a product. in this research, perceived quality is a subjective assessment of the quality of smartphone products with the iphone brand. indicators of perceived quality include product performance, product characteristics, conformance to specifications, reliability, and product durability (krisno and samuel, 2013). price (p) according to kotler and keller (2020) price can be defined as the everything that is exchanged by consumers to obtain the benefits of a product. price is an element attached to a product. price can be used as a comparison between one product and another. the decision to determine the price of a product is determined by the producer in a company based on various factors, including market conditions. based on this description, it can be seen that price is the value that must be exchanged by a consumer in order to obtain ownership or use rights of a product. price is part of the marketing mix that can change (tjiptono, 2008). price can be used as a measuring tool used by consumers in assessing and evaluating a product based on the various considerations they use. the price referred to in this study is an assessment or assumption about the price of the iphone smartphone product. price indicators that can be known include price affordability, price suitability with product quality, suitability and competitiveness, and price suitability with product benefits (kotler and armstrong, 2012). need (n) needs are everything that humans desire to obtain goods or services (sukirno, 2013). as economic beings, consumers will continue to have needs attached to them. every consumer has a desire to meet their respective needs for what is their preference. needs are everything that is needed by consumers to be fulfilled in the hope of providing benefits or a sense of satisfaction with that fulfillment (paendong and tielung, 2016). the need for a product in every consumer allows for differences. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 14-22 the different of each consumer need to be known further so that the differences that may exist can be identified. different needs allow for different attitudes and behaviors in evaluating the need for a product. the need referred to in this study is an assessment of the level of fulfillment of smartphone product needs on the iphone brand. indicators to measure needs include the need for products, no substitute products, and product exclusivity. purchase intention (pi) according to kotler and keller (2012) purchase intention is the consumer's desire to choose and buy a product based on experience using or evaluating information about a product. purchase intention is important in projecting the marketing and sales performance of a product. shah, et al., (2012) explained that purchase intention is a consumer's decision in stating the reasons for choosing and then buying a brand. pavlou (2011) explains that purchase intention is a driving factor in making purchasing decisions for a product. purchase intention is the first step that needs to be considered by the company in increasing sales volume and is also useful for maximizing profits. companies that lead the market need to project how consumers perceive their products, which companies can use to make their products get the highest position in consumers and allow them to be prioritized to buy. the purchase intention referred to in this study is the willingness to buy an iphone as an effort to meet the need for smartphones. indicators of purchase intention include being interested in finding product information, interested in trying, want to know about the product, considering buying, and want to buy the product (schiffman and kanuk, 2007). research hypothesis research conducted by nathani and budiono (2021) states that there is no influence of popularity on purchase intention. consumers is not always consider the level of brand popularity in considering the purchase intention of a product. based on the description, the following hypotheses can be proposed: h1. brand popularity does not have a positive effect on purchase intention research conducted by sari (2018) explains that perceived quality has a positive and significant influence on purchase intention. the higher the consumer's assessment of perceived quality, the higher the purchase intention, conversely, the lower the consumer's assessment of perceived quality, the lower the purchase intention. another study conducted by satriawan and setiawan (2020) also stated that there was a positive and significant influence of perceived quality on purchase intention. based on the description, the following hypotheses can be proposed: h2. perceived quality has a positive effect on purchase intention research conducted by nusarika and purnami (2015) states that there is a positive and significant influence of price on purchase intention. in addition, research conducted by satria (2017) also states that there is a positive influence of price on purchase intention. based on the description, the following hypotheses can be proposed: h3. price has a positive effect on purchase intention research conducted by putri and utama (2021) states that needs have a positive effect on purchase intentions. in addition, research conducted by liwe and nurcaya (2019) also states that needs have a positive and significant influence on consumer purchase intentions. the higher the level of need, the higher the purchase intention, conversely, the lower the level of need, the lower the purchase intention. based on the description, the following hypotheses can be proposed: h4. needs have a positive effect on purchase intention research methods quantitative research, allows obtaining information about the causal relationship between valid and reliable variables by using survey methods. the survey method can be used to find out an overview of the characteristics of the relevant respondents, to get information through the responses given, and as a source of data used in research. this research was conducted in purwokerto, using a purposive sampling technique with the criteria of respondents including active smartphone users, using smartphones for make a calls, sms, video calls, social media, and browsing, with varied durations of daily use. respondents answers and responses were obtained through the questionnaires which were distributed and filled out independently. the sample size was determined based on the criteria of five times jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 14-22 the estimated parameter referring to hair et al., (2010). number of parameter = ʃ indicator + ʃ path coefficient in this study, there are 20 indicators and 4 path coefficients so that in total there are 24 parameters. based on these guidelines, the minimum sample size in this study is as follows: sampe size = (ʃ indicator + ʃ path coefficient) × 5 = (20 + 4) × 5 = 120 respondents answers were stated using a likert scale 7. the data was processed using the smartpls 3.3.3 application program. results and discussion based on the results of the questionnaire from 120 respondents, characteristics can be classified based on the main function of smartphone use and the duration of smartphone use in a day. table 2. the main function using a smartphone smartphone use percentage phone dan sms 20% video call dan chat 30% social media 60% browsing 10% source: primary data (processed) based on the data in table 2, it can be seen that most of the respondents in this study used smartphones as a tool to access social media. this data is used to determine the differences in the responses of each respondent based on the main function of smartphone use. table 3. duration of smartphone use per day duration percentage 1 hour – 6 hour 20% 7 hour – 12 hour 60% 13 hour – 18 hour 20% 19 hour – 24 hour 20% source: primary data (processed) based on the data in table 3, it can be seen that most of the respondents in this study used their smartphones in a span of seven hours to twelve hours a day. this data is used to determine the differences in the responses of each respondent based on the duration of smartphone use in a day. table 4. cronbach’s alpha, composite reliability, and ave variable ca cr ave bp 0,625 0,841 0,726 pq 0,930 0,947 0,782 p 0,867 0,908 0,711 n 0,938 0,960 0,890 pi 0,935 0,951 0,794 source: primary data (processed) the criteria used in this study are that each variable is said to meet the validity requirements if it has a cronbach's alpha (ca) value > 0.7 composite reliability (cr) > 0.7 and ave > 0.5. based on the data in table 4, it can be seen that all variables have met the validity requirements. table 5. r-square variable rsquare r-square adjusted pi 0,932 0,930 source: primary data (processed) based on the data in table 5, it can be seen that the repurchase intention can be explained by brand popularity, perceived quality, price, and needs of 93%. table 6. f-square variable f-square bp -> pi 0,001 pq -> pi 0,351 p -> pi 0,115 n -> pi 0,555 source: primary data (processed) the criteria used in this study in assessing the f-square are 0.02 (small effect), 0.15 (medium effect), and 0.35 (large effect). based on the data in table 6, it can be seen that the brand popularity has a small effect, price has a moderate effect, while perceived quality and need have a large effect on purchase intention. table 7. path coefficient variable path coefficient bp -> pi -0,018 pq -> pi 0,390 jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 14-22 p -> pi -0,287 n -> pi 0,878 source: primary data (processed) based on the data in table 7, it can be seen that the brand popularity and price have a negative relationship direction, while the perceived quality and need have a positive relationship direction. table 8. significancy test result variable tstatistic pvalue result bp -> pi 0,542 0,588 nosignificant pq -> pi 7,851 0,000 significant p -> pi 3,655 0,000 significant n -> pi 7,473 0,000 significant source: primary data (processed) the criteria used in this study, namely the relationship of variables is said to be influential if the t-statistic value> 1.96 and p-value <0.05. based on the data in table 8, it can be seen that all relationship variables have a significant effect, except brand popularity on purchase intention. table 9. predictive relevance variable predictive relevance (q2) pi 0,734 source: primary data (processed) based on the data in table 9, it can be said that the research model built has a predictive relevance value of 0.734, which means that observations made based on the model built have a relevance level of 73.4%. the higher the predictive relevance value, the better the observation value. brand popularity on purchase intention based on the results of data processing, brand popularity has no effect on purchase intention. respondents responses regarding the popularity of the brand did not lead to their purchase intention on the iphone product. although respondents directly admit that some popularity indicators such as the iphone are popular smartphone products because they have their own charm, have advantages, and have distinctive and unique characteristics compared to other smartphone product brands, the respondents did not take this as a factor of consideration in generating purchase intentions. this means that respondents' purchase intentions for iphone products are not caused by how high the level of popularity of the brand. h1 which states that brand popularity does not have a positive effect on purchase intention is accepted. respondents with limited use of smartphones to make calls and send conventional messages do not attach importance to the popularity of the brand as a factor they consider in generating purchase intentions, this is because popular or not a smartphone brand will still be able to carry out its main function in daily use as a tool for making calls and send sms. while browsing access, respondents prefer to use their desktop computers for more serious purposes. browsing using a smartphone is considered uncomfortable, the most comfortable browsing is still using a desktop computer. smartphone users with an average use of one hour to six hours per day prefer to access various kinds of content, both entertainment and education, or content with other genres without using a smartphone. the popularity of the brand among users with these characteristics does not make the smartphone the main tool in completing and fulfilling their various activities, but only as a tool in communicating with colleagues and family. this can also be seen based on the intensity of use per day which is low when compared to other characteristics. the results of this study are in line with the results of research conducted by nathani and budiono (2021) which states that there is no influence of brand popularity on purchase intention. perceived quality on purchase intention based on the results of data processing, perceived quality has an influence on purchase intention. respondents responses regarding perceived quality, such as the iphone having superior performance, having better product characteristics, performance in accordance with product specifications, being reliable, durable and long-lasting products are factors that respondents consider in generating purchase intentions. this means that respondents purchase intentions for iphone products can be caused by the perceived quality of the brand. h2 which states that perceived quality has a positive effect on purchase intention is accepted. smartphone users with daily needs for video calling and chat activities attach great importance to the quality aspects of smartphones. assessment of the quality of jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 14-22 smartphone products is based more on aspects of speed and performance. consumers' assessment of the quality of a good smartphone is that if it is used it does not experience interference or errors so that it can run as it should. in activities such as chatting and video calling, there are no picture errors, and the images displayed on both the smartphone itself and the smartphone used by the interlocutor are clearly visible, as well as the quality of the resulting audio. good performance on smartphones makes respondents prefer the quality aspect and their assessment of it becomes a factor of consideration in generating purchase intentions. perceived quality can be seen as a factor that can be used as a material for consumer evaluation in the use of their smartphone. respondents will be willing to buy an iphone on the grounds that it has better quality than other brands, this is because respondents have a good assessment of the iphone brand. the results of this study are in line with the results of research conducted by sari (2018) and research conducted by satriawan and setiawan (2020) which states that there is an influence of perceived quality on purchase intention. price on purchase intention based on the results of data processing, price has an influence on purchase intention but with a negative relationship direction, it means that the higher of price, the lower of purchase intention, conversely, the lower of price, the higher of purchase intention. respondents responses to prices such as the affordable price of iphone products, the suitability of the price with the quality, the suitability of the price with the product's capabilities and competitiveness against other brands, and the suitability of the price with the benefits obtained when using the product are the main consideration factors in generating purchase intentions. this means that respondents purchase intentions for iphone products can be caused by the price of the product. h3 which states that price has a positive effect on purchase intention is rejected. price is an important aspect for respondents in generating their purchase intentions for smartphone products. price is a part that is never overlooked in choosing which product to buy and use within a certain period of time to meet the needs of smartphone use. respondents who use smartphones for activities such as making calls, sending messages, making video calls, chatting, social media, and browsing are very considerate of price in eliciting their purchase intentions. the higher the price, the lower the intention to make a purchase. this is because of their interest in using smartphones, if they can buy it at a cheaper price then they will be more willing, if they are not willing then they will not be willing to buy it. the respondent's opinion is that although there are many features offered on smartphone products, the main function is only to contact people in an easier way, while other features cannot always be utilized in daily use. the results of this study are different from the research conducted by nusarika and purnami (2015), and also different from the results of research conducted by satria (2017). the study explains that price has a positive and significant effect on purchase intention, while in this study the price has a significant effect but the direction of the relationship is negative. need on purchase intention based on the results of data processing, needs have an influence on purchase intentions. respondents responses regarding needs such as choosing the iphone as the smartphone product of choice, the assumption that there are no other smartphone brands that can replace the iphone, and exclusivity are the main factors to consider in generating purchase intentions. this means that respondents purchase intentions for iphone products can be caused by needs. h4 which states the need has a positive effect on purchase intention is accepted. the need is a major factor in the consideration of giving rise to the purchase intention of smartphone products. respondents who use their smartphone for seven to twelve hours per day are very concerned about this factor, because their needs for using social media are very intense. if browsing activities can be done using a desktop computer, then the need for social media is more conveniently fulfilled using a smartphone. this is because the use of smartphones that strongly support mobility so that social media can be accessed from anywhere and anytime, do not have to access a desktop computer that does not support mobility. the use of smartphones in meeting social media needs greatly contributes to purchase intentions, so that these needs can be met quickly and well without being limited by place and time. other needs such as jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 14-22 making calls and sending messages, as well as making video calls are also a major consideration in generating purchase intentions for smartphone products. basically, the need for smartphone products with the iphone brand is a consideration in choosing a product. respondents have an interest in making purchases in the future based on their needs and preferences for iphone products. the results of this study are in line with research conducted by putri and utama (2021), and also in line with the results of research by liwe and nurcaya (2019) which states that there is an influence of need on purchase intention. conclusion the conclusion in this study is that several factors can influence purchase intentions on iphone products, including perceptions of quality, price, and need. brand popularity does not affect purchase intention on iphone products. brand popularity and price have a negative relationship direction, while perceptions of quality and need have a positive relationship direction. purchase intentions are most influenced by needs. the implications of the results of this study for smartphone company managers should pay attention to aspects of the needs of their customers, after all, needs are the most important and main aspects for customers in generating purchase intentions for smartphone products. in addition to needs, the other most influential aspect is the perception of quality. company managers can improve the perception of quality that exists in consumers for the products they market, so as to improve product ratings. these factors can be used as ingredients in generating purchase intentions. the importance of purchase intention in this case is to project the volume of product sales so that the company can estimate how many products should be produced, and the price decisions that will be set to maximize sales and profits that can be obtained. further research, it is recommended to focus on the influence of needs on purchase intentions, by examining the types and nature of needs that can have an effect, this is because needs have several differences in certain aspects, so that there are possible differences in results for each nature and type of need on purchase intention. originality value in this study is to find the fact that brand popularity does not always affect purchase intention. popular brands are not always the main ingredient for considering purchase intentions as stated in research on marketing topics in general. in fact, even though consumers are aware that the brand of a product has a high level of 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(1988). consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. journal of marketing, 52(3), 2-22. list of table table. hypothesis test jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2021, pp. 14-22 original sample (o) sample mean (m) standard deviation (stdev) t-statistics (io/stdevi) p-values p -> pi -0.287 -0.271 0,079 3.655 0.000 n -> pi 0.878 0.863 0.118 7.473 0.000 pq -> pi 0.390 0.397 0.050 7.851 0.000 bp -> pi -0.018 -0.024 0.034 0.542 0.588 list of figure figure 1. research model brand popularity perceived quality price need purchase intention correspondence to : muhammad.ashur@umi.ac.id received: 24 july 2022 accepted: 20 may 2022 published: 1 june 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 3, 2022, pp. 7 14 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the most influencing factor of the rapid growth of sharing economy (se) service sector has always been technology and its features. this business model has experienced dramatical rise and popularity in indonesia (ashoer, murdifin, basalamah, as’ad, & pramukti, 2021), owing primarily to an increase in ondemand applications (selloni, 2017). se is a component of e-commerce in which economic activity consisting of assets and service systems is shared or implemented between individuals. many research findings are still using terms like collaborative consumption, collaborative economy, on-demand economy, peer-to-peer economy, zero marginal cost economy, and crowd-based capitalism to describe the se concept (dreyer, lüdekefreund, hamann, & faccer, 2017). in practice, the se application platform is considered unstable and will continue to grow because it is still relatively new. this viewpoint is supported by the growth of several service providers, including uber, gojek, grab, airbnb, traveloka, and others. according to (li & fang, 2022), se businesses can save money and increase convenience is probably the biggest benefit for consumers. this service offers consumers the ability to compare prices quickly, which gives them the ability to choose cheaper options and save on expenses (hamari, sjöklint, & ukkonen, 2016). in terms of convenience, many of the goods and services exchanged are provided on demand, currently, (barnes & mattsson, 2016) the most noticeable savings come from reducing travel and transportation costs. the benefits of sharing economy (se) application services as a support for the availability of access to consumer needs and desires became an interesting phenomenon during the pandemic, particularly among millennials (generation z) (möhlmann, 2015). many previous studies have shown how quickly the younger generation adapts to modernization and even adopts technologies that can make their daily activities more convenient. surprisingly, during the covid-19 virus pandemic, young indonesians’ online shopping habits has changed. katadata insight center (kic) online survey of 1,146 respondents aged 18-29 years from jabodetabek, surabaya, medan, bandung, makassar, semarang, denpasar, and yogyakarta reported that before the pandemic, as many as 60.3% of young people said they had never shopped online, and the rest claimed it was very rare to shop online in the new normal during the pandemic, all student’s purchase intention in sharing economy: empirical study during new normal muhammad ashoer1, imaduddin2, jayadi3, jafar basalamah4 1fakultas ekonomi dan bisnis, universitas muslim indonesia, makassar, indonesia abstract this study aims to investigate how essential product quality, service quality, discounts, and perceived ease of use that influence students’ intention in using sharing economy (se) application during pandemic period. an online survey was conducted by directly scattering equestionnaires link generated from google formulir to collect primary data from active students in makassar, indonesia. we selected 132 respondents (grab users) who have met the judgment sampling and.then analyzed the collected primary data with structural equation modeling (sem) and partial least squares (pls). the result demonstrated that there was positive and significant relationship between service quality, discounts, perceived ease of use and purchase intention. meanwhile, product quality were found to be not significant in predicting students’ behavior. practically, the grabs’ management should reconfirm and reassure the product quality that the vendor offers via their apps to stimulate users’s buying especially in the covid-19 crisis. theoritically, some potential constructs needs to revisit to enrich the current se studies. keywords purchase intention, sharing economy, mobile application, pls-sem jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp.7-14 respondents reported switching to online transactions. young people who frequently purchase necessities online increased by 39.5 percent, while those who rarely or very rarely use the service increased by 39.2 percent and 21.4 percent, respectively (andrea lidwina, 2021). as a result, this raises fundamental questions about the importance of predicting young consumers’ behavior in using se applications during the pandemic (pazaitis, de filippi, & kostakis, 2017). this study offers several contributions, first, the provision of insights on the application of the tam, tpb, and utaut theories in a developing country that is experiencing economic recovery during a pandemic. by incorporating the constructs and these three underpinning theories, this study empirically investigates the highly-sought phenomenon of the development of se from an students perspective. second, to provide a reference and expansion of scientific insights and concepts about topics affecting students’ purchasing intention in se context (li & fang, 2022). the findings of this study are expected to serve as a resource for the next researcher conducting research on student purchasing preferences. this study is expected to be evaluated and considered as a reference for service improvements and innovations in sharing economy application in emerging economies. theoritical review and hypotheses developments sharing economy the sharing economy is an economic model characterized as a peer-to-peer (p2p) activity of acquiring, providing, or sharing access to products and services, which is typically enabled through a community-based online platform (belk, 2014). for thousands of years, communities have shared the use of assets, but the internet and its use of big data have made it easier for asset owners and individuals wishing to use those assets to find each other. this dynamic is also known as the shareconomy, collaborative consumerism, collaborative economy, and peer economy (akbari et al., 2022). sharing economies enable people and organizations to profit from underutilized assets such as parked automobiles and unused rooms. retamal (2019) concludes that there are many factors that indicate prospects for mainstreaming of cooperative consumption; e.g., high density of individuals, restricted housing sizes, traffic jams, and long commutation times. however, the study conjointly shows that there's resistance, significantly to shared-access practices like shared laundry machines or automotive sharing. the resistance stems from a lack of trust, a lack of data on a way to use the shared instrumentation, and a lack of institutional support for consumer-to-consumer business models. antecedents of se purchase intention the quality of a product, as perceived by consumers, varies from one individual to the next. kotler et al. (2018) explain that product is the most fundamental element of the marketing mix, as consumers expect it to satisfy their needs and desires. product quality is the state of a product based on research into its conformance with defined measurement standards. the assessment of a product’s quality will be more accurate the more applicable the criteria are. in se context, the majority of users will interact with both the trader offering the product or service and the platform linking them. moreover, ensuring that consumers comprehend the function of each party when they experience the apps and that they understand who to contact if difficulties emerge (belk, 2014). several previous research have proven that digital products offered on mobile apps play a significant role in stimulating consumers purchase intention (narasimhan et al., 2018). therefore, we hypothesize: h1: product quality had a significant impact on se purchase intention kotler et al. (2018) define service quality as the effort made to satisfy the wants and needs of consumers, as well as the precision of delivery to meet their expectations. because services that are directly experienced by consumers will be promptly evaluated based on whether they meet or fail to meet consumer expectations and ratings, it must explicitly reflect the requirements and expectations of consumers. in general, services are economic activities with intangible outputs that are provided by service providers, such as businesses, to service users or consumers. in se business model, a high quality service refer to the perfection of several aspect such as application performance, riders, customer service, and others (lovelock & wirtz, 2011). jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp.7-14 if the performance of the service meets the expectation, the customer perceives the service quality to be good, and vice versa. therefore, a company’s service quality rests on its capacity to consistently meet consumer expectations. the authors previously reported that the perceived impact of service quality on users generates prospects for future purchases (bilsen et al., 2019; tong & su, 2018). we then propose the second hypothesis as follow: h2: service quality had a significant impact on se purchase intention a discount is a price that is lower than the price that should be paid due to a number of factors, including early payment, quantity and quantity of purchases, and purchases made during specific seasons (modding et al., 2022). there are currently several discounts available on all products and services that are traded. the existence of discounts offered by each company in the promotion of their products increases consumer interest in owning and purchasing these items. kotler et al. (2018) describe a discount as an immediate price reduction for a purchase made within a specified time frame. on the basis of this explanation, it is clear that discounts are direct price reductions for specific products during a specific time period, as well as the sale of discounted prices by the seller to the consumer. each company’s discounting is influenced by its rules and aims. möhlmann (2015) found that savings enhances the probability of satisfaction with the service provided. in peer-to-peer sharing, lesser the expenditure, more the consumer will be motivated to engage in apps. most of the studies have found the beneficial influence of economic benefit on intention to buy among se consumers (hamari et al., 2016; möhlmann, 2015). based on the findings of these investigations, we can formulate the hypothesis: h3: discount had a significant impact on se purchase intention davis (1989) firstly elaborate ease of use as a person’s perception of a technology’s effortlessness. it also represents a person’s impression that a system is straightforward and valuable for decision-makers (pavlou, 2003). people will likely embrace an easy-touse information system when they believe the information system is satisfying. the ease of use element includes everything from the main way to online transaction protests (mohamed et al., 2014). prospective buyers often have trouble choosing based on their demands and cancel their purchases since they do not know how until the transaction procedure. potential purchasers who know how to shop and transact online may also try. from the preceding description, it can be stated that ease of use while buying goods or services online is highly significant. with the many conveniences provided by online sellers, consumers may engage more readily, get information easily, and not be confused or uncomfortable so taht they can keep customers happy (modding et al., 2022). in a empirical study to evaluate the consumer potential of collaborative consumption among indonesia consumers, some researcher concluded that sharing economy consumers need certain digital skills in order to improve their buying intention (dreyer et al., 2017). furthermore, some studies claimed that the requirement for computer skill is needed, but it is unclear if this is a measure of perceived ease of use or something else related to technology use (daunorienė et al., 2015). based on the above argumentation, we posit that: h4 ease of use had a significant impact on se purchase intention research methods design this study takes place under causality research because it attempts to investigate the causal relationship between product quality, service quality, discounts, and ease of use and millennial consumers' purchasing interests. all students that take courses in makassar have been chosen as the research population. the primary consideration for researchers in selecting a location is that students are currently the largest segment of consumers in the e-commerce market. as this number is uncountable, and to overcome the limitations of constraints (cost, effort and time) then judgement sampling techniques was applied. this technique concerns the use of subjective criteria or considerations in order to accurately screen respondents and obtain representatives who are relevant to the purpose of the research (hair et al., 2019). some of the criteria are as follows: 1) active students (not on leave or suspension); 2) knowledge and experience with the sharing jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp.7-14 economy application, such as grab; and 3) students who have used grab services at least once in the last three months (research period). during the data collection process, the researcher is speeding up the online survey by utilizing the electronic signature feature of google form (google drive). a link is created that contains information or a variable item, and it is then distributed via email and social media platforms such as whatsapp. this method is highly recommended by experts for reducing covid-19 through physical control of conventional of questionnaire. aside from that, online surveys are popular because the costs are low, they are easy to use (if you have access to the internet), and they can address privacy and security concerns (hamzah et al., 2021). during the data collection period, which lasted from october 2021 to january 2022, 209 records were added to the database. after the diversification process was completed, there were 132 responses (63.1 percent of the total responses) that were suitable for inclusion in the study. in addition, the number of samples reduces the power of the analysis model used, which is the structural equation model (sem) based on variables (pls). data measurement this research is a causality study that aims to test the influence of variable product quality, service quality, discounts, and ease of use on se consumer purchasing interests. in addition, research also aims to predict and develop a theory, not to confirm a grand theory. therefore, the proper analysis technique used is a variant-based structural equation model (sem) or partial least square (pls) – hereinafter called pls-sem. pls-sem aims to test predictive relationships between constructs by seeing if there is a relationship or influence between the constructs (hair et al., 2019). pls-sem as a prediction model does not assume a specific distribution to estimate parameters that predict causality relationships. however, parametric techniques for testing the significance of parameters are not required and evaluation models for prediction are non-parametric. the pls evaluation model is carried out by assessing the outer model and the inner model (memon et al., 2021). in order to analyze this study by means of the results of questionnaire data is managed with the help of statistics to calculate the numbers obtained. this analysis is then processed so that it can be measured how quantitative influences between each variable accurately. results and discussion respondents the sample is a grab customer that selected based on the criteria of the previous purposive sampling technique. after the data collection process with an online survey, the respondents who were netted in this study amounted to 132 millennial consumers. in terms of gender, the data showed that the most respondents were women as many as 80 people (61%) and men as many as 52 people (39%). furthermore, from the age category, the most respondents were at the age of 2123 years as many as 85 people (64%) and at the age of 17-20 years as many as 47 (36%). finally, 121 millennial consumers (91.6%) or the majority admitted to using grabfood and grabexpress services to meet their needs and desires during the pandemic. this demographic can be the initial capital of reassignment of the se company's strategy to increase the buying intentions of young consumers. outer model evaluation this phase is used to determine the model's validity and reliability. for latent constructforming indicators, measurement models with reflexive indicators are evaluated using convergent and discriminant validity, as well as composite reliability (cr) and cronbach alpha (ca) for their indicator items. each test has its own assessment criteria, which refer to the lowest threshold value that has been established or agreed upon in social research. based on the results of the tests, it is possible to conclude that all items that measure product quality variables, service quality, discounts, ease of use, and purchasing interest are worth more than 0.7, and this value is greater than the distribution of values on cross loading. as a result, both convergent and discriminant validity are confirmed. furthermore, the test results also found that the values of ave, ca, and cr were greater than the threshold values. with this, discriminant reliability is accepted. the outer model evaluations are depicted on table 1, 2, and 3. table 1. cross loading items kp kpe dis kpel mb kp1 0,867 0,619 0,698 0,511 0,449 kp2 0,869 0,598 0,663 0,507 0,415 jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp.7-14 kp3 0,814 0,622 0,721 0,595 0,369 kp4 0,831 0,591 0,677 0,486 0,376 kp5 0,809 0,602 0,650 0,535 0,442 kpe1 0,608 0,824 0,642 0,515 0,538 kpe2 0,570 0,764 0,726 0,641 0,506 kpe3 0,471 0,846 0,658 0,624 0,449 kpe4 0,462 0,758 0,731 0,539 0,379 kpe5 0,543 0,794 0,675 0,566 0,478 dis1 0,570 0,528 0,796 0,477 0,409 dis2 0,618 0,647 0,869 0,501 0,573 dis3 0,451 0,456 0,738 0,490 0,307 dis4 0,504 0,546 0,834 0,507 0,322 dis5 0,585 0,537 0,855 0,610 0,421 kpel1 0,553 0,707 0,645 0,842 0,461 kpel2 0,535 0,698 0,696 0,811 0,418 kpel3 0,526 0,697 0,722 0,822 0,453 kpel4 0,657 0,762 0,678 0,853 0,536 kpel5 0,538 0,708 0,658 0,844 0,532 mb1 0,389 0,462 0,402 0,416 0,775 mb2 0,406 0,509 0,530 0,439 0,855 mb3 0,399 0,498 0,470 0,366 0,840 mb4 0,465 0,452 0,500 0,438 0,758 mb5 0,458 0,512 0,457 0,353 0,851 note: dis=discount; kpe=ease of use; kpel=service quality; kp:=product quality; mb=purchase intention; ave=average variance extracted source: output smartpls 3.0 table 2. latent variabel correlations (fornell-larcker criterion) dis kpe kpel kp mb vif dis 0,782 2,179 kpe 0,672 0,821 2,757 kpel 0,676 0,557 0,833 2,591 kp 0,627 0,623 0,612 0,796 2,314 mb 0,519 0,596 0,580 0,492 0,884 2,225 source: source: output smartpls 3.0 table 3. ave, composite reliability (cr), cronbach alpha (ca) ave cr ca dis 0,672 0,911 0,879 kpe 0,636 0,897 0,857 kpel 0,696 0,920 0,891 kp 0,703 0,922 0,894 mb 0,667 0,909 0,875 source: source: output smartpls 3.0 inner model evaluation the first structural model assessment in pls analysis involves the goodness of fit model, which refers to the q-square predictive relevance (q2). the number of variances of the construct described by the model is represented by the pls r-square value. according to the test results, the endogenous variable r-square of purchase intent was worth 0.390 (39%) and was relatively low. this can illustrate that 39 percent of the variation in purchasing intention variables can be explained by product quality variables, service quality, discounts, and ease of use, or in other words, 39 percent of the variation in purchasing intention variables can be explained by product quality variables, service quality, discounts, and ease of use, while the remaining 61 percent is explained by another variable contribution that was not discussed in this study. figure 1. the result of pls-sem analysis table 4. results of hypothesis testing direct effect path t stat. p sig. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp.7-14 kp → mb 0,104 0,960 0,339 not sig. kpel → mb 0,393 3,694 0,000 ** dis → mb 0,481 4,433 0,000 ** kpe → mb 0,312 3,099 0,002 * note: the sig. symbol indicates the level of significance; **α<0.01; *α<0.05; not significant α > 0.05 source: source: output smartpls 3.0 the output indicates that the se application had a positive but insignificant influence on the influence of product quality on the purchasing interests of young consumers. previous research (bilsen et al., 2019) contradicts this finding. the average value of respondents' responses also supported this finding, as they considered the quality of products offered by grab to be average. these millennial consumers also believe that buying directly from a store or app does not affect the taste of food because food is provided by a third party (tong & su, 2018). instead, when freshness, cleanliness, and other factors are considered, the quality of food or drinks ordered will decrease. on the other hand, covid-19 conditions also have a strong impact on consumer preferences and behavior (boyer & hult, 2006) because they are considered potentially exposed to a high risk of virus transmission when package services are provided. the results also showed that there was a positive and significant influence on the influence of service quality on the purchasing interests of young consumers through the se application. this result is in line with previous research (tong & su, 2018). these findings prove that the grab app provides service certainty amid conditions of high uncertainty during the pandemic. when booking the motor mode transportation service, grab bike, consumers are satisfied with the hospitality and comfort applied by the driver during the trip. in addition, drivers are also considered sprightly in responding to consumer requests, such as confirming orders according to the application, or changing travel routes. the results showed that there was a positive and significant influence on the influence of discounting (promotion) on the buying interest of young consumers through the se application. this result is in line with previous research (möhlmann, 2015). discount offers are the variable whose influence is highest on consumer purchase intentions, so it is considered very important by respondents. these findings confirm that millennials (or at least parents who bear their expenses) do feel satisfaction with grab's discounted offers and this is a positive sentiment for consumers because they can recommend the grab app to their parents or friends. the findings revealed a positive and significant influence of ease of use perception on the purchasing interests of young consumers via the se application. this finding is consistent with previous studies (dreyer et al., 2017). this is certainly a familiar thing in the theory of technology acceptance and adoption that consumers tend to buy when the platform is simple to use. it has also been implemented by the grab app, so when customers order food, they can track the location of their orders, contact drivers if there is a change in order, and so on. in addition, the grab application also has an attractive user interface which pampers the user’s eyes, such as layout design, themes and icons. in terms of accessibility, this decacorn brand are significantly reliable to support consumers’ operations and daily activities like studying, working, relaxing, or business. hence, these advantages drive consumers’ intention to order directly through the application, wherever they are, or whatever they are doing. conclusion referring to previous exposures, variable service quality, discounts, and ease of use perception play a crucial role in stimulating millennial consumer purchasing interest in the sharing economy. however, there was no significant influence on the relationship between product quality and buying interest. in terms of practical implications, grab is expected to establish intense communication with its business partners to strive to improve the quality of food by presenting new and interesting menus. grab is also obliged to strictly select every vendor who wants to enter and use grab services to maintain the quality of service. another recommendation involves consideration of pandemic conditions where grab is required to continue to maintain the safety of drivers and consumers when providing services. from the theoretical aspect, this study provides several recommendations for future improvements. first, the variables raised are still very jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 3, 2022, pp.7-14 common so that subsequent research can add new variables and / or indicators to enrich the sharing economy research model such as social presence, word-of-mouth (wom), and loyalty. second, this study only targets the millennial consumer segment in one area. future research needs to expand populations and samples to get more comprehensive generalizations. finally, leveling up in designing research methods may be required, for example mediation, moderation, and multigroup analysis (mga) tests. references akbari, m., foroudi, p., khodayari, m., zaman fashami, r., shahabaldini parizi, z., & shahriari, e. 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(2018). exploring young consumers’ trust and purchase intention of organic cotton apparel. journal of consumer marketing, 35(5), 522–532. https://doi.org/10.1108/jcm-04-20172176. journal of accounting, management, and economics vol. 20, no. 1, 2018, pp. 16-36 published by faculty of economics and business, universitas jenderal soedirman published online on january 8, 2018 in http://jos.unsoed.ac.id/index.php/jame print issn: 1410-9336 online issn: 2620-8482  correspondence to: 1universitas jenderal soedirman, indonesia. e-mail: ramagardika@gmail.com 2universitas jenderal soedirman, indonesia. e-mail: a.banani@yahoo.com 3universitas jenderal soedirman, indonesia. e-mail: sulistyandari.yan@gmail.com received: december 4, 2017 revised: december 18, 2017 accepted: december 29, 2017 introduction background investing is one of controlled strategies to gain wealth that is very effective for everyone. according to morgan (2013), investing is the act of committing money or capital to an endeavor (a business, project, real estate, etc.) with the expectation of obtaining an additional income or profit. investing includes the amount of time of the investors put into the study of a prospective company, especially since time is money. there are many ways to make financial investments. one of them is investing in accordance with the principles of islamic sharia. sharia investment avoids investors from practices forbidden by islam. however, the transactions and facilities of sharia investment are limited right now. investment can be done on various business activities related to the activity of producing a product or service that is not forbidden by islam such as liquor, pork, gambling, fraud, etc. one of sharia investments is buying sharia securities including sharia stock, sharia bond, sharia mutual fund, and other securities in accordance with the principles of sharia. in the past decade, the demand for shariacompliant financial products had increased. according to dharani and natarajan (2011), sharia investment had grown significantly in developed and developing countries post 1990 through the introduction of broad macroeconomic and structural reformations in the financial system, the implementation of trade liberalization policies, capital movement, privatization, and global integration of financial markets. these conditions paved the way for the muslim community to participate in stock market operations. sharia capital markets are relatively more resilient to crises compared to conventional capital markets. it was stated by ahmad and albaity (2008), as the sharia capital market has a better ability to adapt to changes from external crisis disturbances. sharia capital markets offer a more secure investment medium for the crisis. thus, the indonesian capital and financial market institutions are expected to give their attention and commitment in the development of sharia capital market as an advantageous investment alternative. in the southeast asian region, there are two countries with the largest muslim population. both countries are indonesia and malaysia. muslim comparative study between the performances of two islamic indices study on ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock index (issi) rama gardika1, ade banani2, sulistyandari3 faculty of economics and business, universitas jenderal soedirman, indonesia abstract this study aims to analyze the differences in the performance of ftse bursa malaysia emas shariah (fbms) in malaysia and indonesia sharia stock index (issi) in indonesia by using sharpe, treynor, and jensen ratio. type of this study is quantitative research by using hypothesis testing and purposive sampling technique. population in this study is all sharia indices listed on indonesia stock exchange (idx) and bursa malaysia (bm). from the sampling process obtained two indices. these indices are ftse bursa malaysia emas syariah (fbms) and indonesia sharia stock index (issi). objects of this study are monthly index returns during the period of july 2012 to june 2012 which amounted to 60 data. hypothesis testing is intended to determine whether there is significant difference between the performance of fbms and issi on the measurement of sharpe, treynor, and jensen ratio. test was conducted by using two independent samples t-test. results showed that there is no significant difference between the performance of fbms and issi on the sharpe, treynor, and jensen ratio. implication of this study is that the results of this study can be used as a reference for companies in selecting which islamic index prefer to issue the stock in based on the performance measured using sharpe, treynor, and jensen ratio. results of this study also can be used as a reference for investors who are interested in investing funds in sharia stocks in indonesia and malaysia. keywords index; sharia; sharpe ratio; treynor ratio; jensen ratio journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 17 population comparison between both countries can be seen in figure 1. large number of muslim residents in both countries led to a demand for a sharia financial system or sharia capitalization system that could keep muslims not worried for being able to make a transaction in the economy without violating the teachings of their religion. it encourages the two countries to issue sharia-based stock index, malaysia issued the financial times stock exchange (ftse) bursa malaysia emas sharia or fbms and indonesia issued indonesia sharia stock index (issi). figure 1 muslim population comparison between malaysia and indonesia (2014) source: wikipedia.org malaysia and indonesia are countries with the majority of muslim population and have launched islamic indices. both countries also have the same economic characteristics. although malaysia economic condition is not identically the same with indonesia, but both economic conditions are almost the same and both countries are still the developing countries. trend of sharia stock growth in indonesia and malaysia also showed similar characteristics. it can be seen in the growth of issi capitalization that grew idr 1,200,689.06 million and fbms capitalization that grew idr 1,123,123.93 million from 2011 until 2016 (www.investing.com). it makes both countries leading the muslim-majority countries in the economic sector in the southeastern asia. these reasons led the author to be comparing the islamic indices of both countries in purpose to find out whether there is significant difference in performance between the indices from two different countries that have the same economic characteristics and the majority of muslim population. bursa malaysia has launched three indices to track the performance of sharia-compliant securities. these indices are ftse bursa malaysia emas shariah index (fbm emas shariah), ftse bursa malaysia hijrah shariah index (fbm hijrah shariah), and ftse bursa malaysia small cap shariah (fbm small cap shariah). these indices are designed for the creation of structured products, index tracking funds, and exchange traded funds or as performance benchmarks. the constituents are screened and tested on their market capitalization, free-float, and liquidity. the review is conducted semi-annually in june and december. the launch of the ftse bursa malaysia hijrah shariah index and ftse bursa malaysia gold shariah index was in response to increase interest in sharia-compliant investment. both index were the joint initiative between ftse, bursa malaysia, and the global leading sharia consultancy, yasaar ltd. ftse bursa malaysia emas sharia (fbms) consists of sharia-compliant constituents of the ftse bursa malaysia emas that meet the screening requirement of the shariah advisory council (sac). ftse bursa malaysia hijrah shariah (fbmhs) index consists of 30 largest sharia-compliant companies in fbmemas screened by yasaar ltd and the securities commission's shariah advisory council (sac). and the ftse bursa malaysia small cap shariah (fbmscap) comprises the constituents of the ftse bursa malaysia small cap index that are sharia-compliant according to the sac screening methodology. http://www.inesting.com/ journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 18 figure 2 sharia stock constituents growth in indonesia (2007-2016) source: financial services authority (ojk) demand of sharia stock in indonesia increases year to year. it is showed by the growth of sharia stock constituents in indonesia (figure 2). it made indonesia stock exchange launched islamic indices. indonesia has two islamic indices. both indices are indonesia sharia stock index (issi) and jakarta islamic index (jii). indonesia sharia stock index (issi) is a stock index that reflects the total sharia stocks listed on the indonesia stock exchange (idx). indonesia sharia stock index (issi) constituents are all sharia stocks listed on idx and listed in the list of sharia securities (des). growth of issi capitalization can be seen in figure 3. jakarta islamic index (jii) is more specific than issi. it may be said that jii's position against issi is like lq45 to ihsg. each period, the shares that enter jii amounted to 30 (thirty) shares considered not to violate the principles of sharia. jii uses the base day of january 1, 1995 with a base value of 100. figure 3 indonesia sharia stock index (issi) capitalization in billion rupiah (2011-2016) source: financial services authority (ojk) this study aims to measure the performance of two biggest islamic indices in south asia countries, ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock index (issi) using sharpe, treynor, and jensen ratio. these methods were selected instead of the other methods because sharpe, treynor, and jensen ratio can be found in variety of financial and investment management literature books at both basic and advanced levels. the methods have been accepted and valid as the standard in the measurement of mutual fund performance (rudiyanto, 2011). these methods were also consistently used by the previous research to measure the index performance. 1,968,091.37 2,451,334.37 2,557,846.77 2,946,892.79 2,600,850.72 3,168,780.43 0.00 500,000.00 1,000,000.00 1,500,000.00 2,000,000.00 2,500,000.00 3,000,000.00 3,500,000.00 2011 2012 2013 2014 2015 2016 journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 19 problem formulation research results of shofiyullah (2014) showed that the performances of two islamic indices, jii and fbmhs, are not significantly different. type of the research is hypothesis testing by using purposive sampling technique. population in the study was all listed islamic indeces in indonesia stock exchange and bursa malaysia. two indices are obtained from the sampling process, namely jakarta islamic index (jii) and the ftse bursa malaysia hijrah shariah index (fbmhs). object of this study is the monthly index return for the period of january 2009 to december 2011, amounting to 36 data. the researcher used the method of sharpe, treynor, and jensen index test to get the results and found out that there was no significant difference between the performance of jii and fbmhs. author adapted the method of sharpe, treynor, and jensen ratio used in shofiyullah’s research to measure the index performance. previous research took the sample of jii and fbmhs index that only consist of 30 sharia stock constituents with the highest liquidity. difference between previous research and this research are that this research took the sample of issi and fbms index that cover all sharia stock constituents in malaysia and indonesia, and this research expands the sampling period taken in the previous research from 3 years to 5 years. from the research gap above, the questions can be drawn as follow: (1) is there difference in performance of ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock index (issi) measured by sharpe ratio? (2) is there difference in performance of ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock index (issi) measured by treynor ratio? (3) is there difference in performance of ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock index (issi) measured by jensen ratio? literature review sharia stock conceptually, stocks are securities and also the proof of capital participation to the company and with that proof the shareholders are entitled to get the proceeds of the company's business (bodie, et al., 2012). concept of capital participation with the right to get the part of the results of the business is a concept that is not contrary to the principles of sharia. sharia principles recognize this concept as a musyarakah or syirkah activity. based on the analogy, then conceptually, the stock is a security that is not contrary to the principles of sharia. however, not all stocks issued by public companies may be referred to as sharia stocks. a stock may be categorized as sharia stock if the stock is issued by: (1) issuers / public companies that clearly state in their articles of association that the business activities of the issuers / public companies are in accordance with sharia principles (sharia issuers / public companies); or (2) issuers / public companies that do not state in their articles of association that the business activities of the issuers / public companies are not contradict with the principles of sharia in the capital market, but meet the following criteria: (a) not conducting business as follows: gambling; trading prohibited by sharia (for example: trade not accompanied by delivery of goods / services and trade with false supply / demand); ribawi financial services (for example: interest-based banks and interest-based financing companies); buying and selling risks that contain elements of uncertainty and / or gambling (for example: conventional insurance); producing, distributing, trading and / or providing: illegitimate goods or services because of the substance; illegitimate goods or services not because of the substance; and / or goods or services that undermine morality and / or harm; and conducting transactions containing bribery elements. (b) meet the following financial ratios: total interest-based debt compared to total assets of not more than 45%, for example bank muamalat indonesia, bank panin syariah, and sofyan hotel; or total interest income and other unlawful income compared to total business income and other income not more than 10%, for example stocks of issuers / public companies listed in the sharia securities list. indonesia sharia indices sharia capital market in indonesia already has two stock indices which are the reference for investors in measuring the performance of their portfolio. both indices include the jakarta islamic index (jii) that has been published on july 3, 2000 and the indonesian sharia stock index (issi) which was launched simultaneously with the fatwa of dsnmui on may 12, 2011. sharia capital market in indonesia already has the main instrument of composite index which takes into account the performance of all sharia stocks listed on the indonesia stock exchange. that index is called issi (indonesia sharia stock index). indonesia sharia srock index (issi) constituents consist of stocks listed in the sharia securities list as set out in the regulation of bapepam and lk number ii.k.1 on criteria and issuance of sharia securities list (see the explanation about sharia stocks). in addition, the sharia capital market also has a performance-based index called jakarta islamic index (jii) whose constituents consist of 30 stocks that have the highest liquidity in the indonesia stock exchange. to become a constituent of the jakarta islamic index (jii), a stock must first be included as a stock listed in the sharia securities list, after that, the stocks incorporated in the issi constituency will be selected into 60 stocks with the highest market capitalization. market capitalization is obtained from journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 20 the multiplication of the number of stocks outstanding multiplied by the prevailing price. thirty of sixty stocks that have the largest transaction value will be taken. sharia stock index plays an important role in the development of sharia capital market in indonesia. it is not only a benchmark for investors, but also the basis for measuring the performance of an islamic mutual fund even the foundation of an exchange traded fund (etf) product. in addition, issi publication ends a misunderstanding of the public regarding the number of sharia stocks, where many people think that the number is only 30 stocks. malaysia sharia indices bursa malaysia as an integrated exchange offers a good breadth of quality sharia-compliant stocks. development of the securities screening methodology by the shariah advisory council (sac) of malaysia securities commission (sc) determines the sharia compliance of securities listed and traded on bursa malaysia. the sharia compliance review is undertaken for securities of companies listed on the exchange and during preinitial public offering companies. each public listed company is reviewed based on the latest annual audited financial statements. the list of shariacompliant securities is updated and published every may and november. bursa malaysia has launched three indices to track the performance of shariah-compliant securities, the ftse bursa malaysia emas shariah index (fbm emas shariah), the ftse bursa malaysia hijrah shariah index (fbm hijrah shariah) and the ftse bursa malaysia small cap shariah (fbm small cap shariah). these indices are designed for the creation of structured products, index tracking funds and exchange traded funds or as performance benchmarks. constituents are screened and tested on market capitalization, freefloat and liquidity. the review is done semi-annually in june and december. fbms (ftse bursa malaysia emas shariah) is the index that consists of sharia-compliant constituents of the fbmemas that meet the screening requirement of the shariah advisory council (sac). fbmhs (ftse bursa malaysia hijrah shariah index) consists of 30 largest shariacompliant companies in fbmemas screened by yasaar ltd and the securities commission's shariah advisory council (sac). fbmscap (ftse bursa malaysia small cap shariah) comprises the constituents of the ftse bursa malaysia small cap index that are shariah-compliant according to the sac screening methodology. ftse bursa malaysia emas shariah (fbms) is a benchmark index that applies the principles set out by the sac of the sc. these sharia-compliant companies are further filtered for fbm hijrah shariah which consists of the 30 largest sharia compliant companies in fbm emas shariah screened by yasaar ltd., a leading global shariah consultancy, to meet the requirements of international sharia investors. ftse bursa malaysia emas shariah (fbms) has been designed to provide investors with a broad benchmark for sharia-compliant investment. constituents are screened according to the malaysian securities commission's shariah advisory council (sac) screening methodology. ftse bursa malaysia emas shariah (fbms) applies the principles set out by the sac in the design of this index. general criteria stipulate that sharia-compliant companies must not be involved in any of the following core activities: financial services based on riba (interest); gambling; manufacture or sale of non-halal products or related products; conventional insurance; entertainment activities that are non-permissible according to sharia; manufacture or sale of tobacco-based products or related products; stockbroking or share trading in sharia non-compliant securities; and, other activities deemed non-permissible according to sharia. ftse bursa malaysia emas shariah (fbms) is chosen as the object of this study because it covers all the sharia stock constituents in malaysia (bursa malaysia, 2017). sharpe ratio sharpe’s performance measurement method was first introduced in 1966 by william sharpe. sharpe's measurement is based on an excess return on risk or known as a reward-to-variability ratio. the excess return is derived from the difference between the rate of return of the investment portfolio and the risk-free investment (indiastuti, 2008). in this study, portfolio investment is an investment in each of issi and fbms issuers and riskless investment is assumed as the average interest rate of bank indonesia certificates (sbi) and overnight rate of bank negara malaysia. and the standard deviation portfolio used is a total risk value that combines the risk that can be diversified (unsystematic risk) and the risk that cannot be diversified (systematic risk). treynor ratio measurement with the treynor method are also based on excess return (rp-rf), as does sharpe. however, treynor method uses beta (β) as denominator which is a systematic risk or also called market risk (indiastuti, 2008). jensen ratio jensen's measurement method is based on capital asset pricing model (capm). this model states whether the investment manager can outperform the market in a predictable and statistically significant way, by indicating a positive alpha. a journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 21 good investment manager will produce significant positive alpha and vice versa. this method was developed by michael c. jensen in 1968. jensen ratio measures performance by calculating the difference in returns earned from a portfolio (actual return) with expected returns based on systematic risk levels. hypothesis development and research model many investors mistakenly base the success of their portfolios on returns alone. few investors consider the risk that they took to achieve those returns. since the 1960s, investors had known how to quantify and measure risk with the variability of returns, but no single measure actually looked at both risk and return together (pareto, 2017). today, investors have three sets of performance measurement tools for assisting with the portfolio evaluations. sharpe, treynor, and jensen ratio combine risk and return performance into a single value, but each model is slightly different. in measuring the index performance, this research used three methods. these methods are sharpe, treynor, and jensen ratio. these methods were selected instead of the other methods because sharpe, treynor, and jensen index can be found in variety of financial and investment management literature books at both basic and advanced levels. the methods have been accepted and valid as the standard in the measurement of mutual fund performance (rudiyanto, 2011). those methods are also used as a reference in assessing the performance of mutual funds and consistently used by the previous researches to measure the index performance. hypothesis in this research can be formulated as follows: h1: there are differences in the performance of issi and fbms measured by the sharpe ratio. h2: there are differences in the performance of issi and fbms measured by the treynor ratio. h3: there are differences in the performance of issi and fbms measured by the jensen alpha ratio. figure 4 analysis framework research method this research is an empirical study; the study of empirical facts based on observation of the ftse bursa malaysia emas shariah (fmbs) on bursa malaysia and indonesian sharia stock index (issi) on indonesia stock exchange (idx) on the period of 2012-2017. observation periods in this study were taken during 2012 to 2017. required data are the monthly index return for the period of july 2012 to june 2017 amounting to 60 data. data of this study were historical data collected from bursa malaysia and indonesia stock exchange (idx). both data were be obtained from the website of www.investing.com. populations in this study are all islamic indices in indonesia stock exchange and bursa malaysia. sampling was taken by using purposive sampling method. samples were chosen based on characteristic suitability with the criteria that has been determined to get the representative sample. these criteria are: (1) islamic indices operating on the indonesia stock exchange and bursa malaysia in the period of 2012 to 2017. (2) islamic indices covering all sharia stocks listed on the stock index of each country. from these criteria, samples of this study were indonesian sharia stock index (issi) on indonesia stock exchange (idx) and ftse bursa malaysia emas syariah index (fbms) on bursa malaysia. analysis tools sharpe ratio (sp) sharpe ratio is a method used to compare portfolio performance by using the concept of capital market line (cml) or better known as reward to variability ratio (rvar). sharpe states the portfolio performance series by calculating the net result of the portfolio with a risk-free rate per risk unit with the symbol of sp. sharpe's performance index is calculated by the following formula: 𝑆𝑝 = 𝑅𝑝 − 𝑅𝑓 𝜎𝑝 where: sp = sharpe performance ratio rp = portfolio return or market rate of return rf = risk-free return or risk-free interest rate σp = standard deviation of the portfolio return p during the time of the study treynor ratio (tp) treynor is the ratio used to measure portfolio performance. treynor assumes that the highly diversified portfolio is known as reward to valatility ratio (rvor). the treynor index, therefore, states that the portfolio performance series that is calculated as the net result of the portfolio with the risk-free interest rate per unit of market risk of the portfolio with the symbol of tp. treynor's t-test mann-whitney u test issi financial performance sharpe treynor jensen fbms financial performance sharpe treynor jensen h journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 22 performance ratio is calculated by the following formula: 𝑇𝑝 = 𝑅𝑝 − 𝑅𝑓 𝛽𝑝 where: tp = treynor performance ratio rp = portfolio return or market rate of return rf = risk-free return or risk-free interest rate βp = market risk of portfolio or systematic risk of portfolio (beta) jensen ratio (ap) jensen ratio or jensen alpha ratio is one of measurement methods of portfolio performance. jensen is very concerned about capm in measuring the performance of the portfolio which is often called jensen alpha (differential return measure). jensen alpha is an absolute measure that estimates the constant rate of return during the investment period in which the level of jensen alpha returns are above (below) the buy-hold strategy with the same systematic risk. the jensen alpha formula as follows: 𝑎𝑝 = 𝑅𝑝 − [𝑅𝑓 + 𝛽𝑝 (𝑅𝑚 − 𝑅𝑓)] higher the positive ap, better the portfolio performance. jensen ratio can be calculated in another way by simplifying the above equation into the equation below: 𝑅𝑝 − 𝑅𝑓 = 𝑎𝑝 + 𝛽𝑝 (𝑅𝑚 − 𝑅𝑓) where: rp rf = excess return (the difference between portfolio return with risk free rate) rm rf = market premium (the difference between market return with risk free rate) ap = jensen ratio βp = beta coefficient from the portfolio index return (rp) return is calculated by reducing the index value at the end of the unit of a certain period (t) with the end of the unit of previous period (t-1), then divided by the index value at the end of the unit of previous period (t-1). the equation form as follows: 𝑅𝑝 = 𝑃𝑡 − 𝑃𝑡−1 𝑃𝑡−1 where: pt = index value in period t (end of period) pt-1 = index value in period t-1 (beginning of period) standard deviation (σ) standard deviation (σ) gives a description of the magnitude of the risk of fluctuations in the change in returns per unit of a sub-period into subsequent sub-period, and is referred to as total risk. the greater the σ value, the higher the risk of change in return per unit that occurs. calculation of standard deviation in this study is conducted on the return rate of all islamic indices and market return. in microsoft excel program, this calculation can be done with the formula "stdev (...)". so can for standard deviation calculations. in the application of stdev, the calculation of standard deviation can be done manually using the following formula: 𝜎 = √∑ (𝑥1 − �̅�) 2 𝑛 where: x = n-th data �̅� = x mean = mean value of the sample n = amount of data risk-free rate (rf) risk free asset defined as definite return, this type of asset must be a fixed-interest security that has no default possibility. since all corporate securities are principally defaulted, risk-free assets cannot be issued by the company, but must be governmentissued securities. in this study, riskless investment is assumed to be the indonesia government securities (sun) series fr0061 issued on july 3, 2012 with the maturity period of 9.8 years obtained from the website of www.bi.go.id and the coupon rate of malaysian government security (mgs) series zi120012 which was issued on july 12, 2012 with the maturity period of 5 years obtained from the website of www.bondinfo.bnm.gov.my. the sun and mgs bonus levels are already in percentage form so that the returns can be calculated by dividing the bonus rate of sun and mgs respectively by the number of months until maturity to reflect the rate of return on a monthly basis. market return (rm) market return used in this research as a benchmark for issi is jakarta composite index (jci). jci is an index that shows the movement of stock prices in general listed on the stock exchange which became a reference about the development of activities in the capital market. jci can be used to assess the general market situation or measure whether stock prices increase or decrease. jci also involves all stock prices listed on the exchange. in addition to inflation and deposit rates, stock returns will be influenced by market indices used as indicators for market conditions and market returns. capital http://www.bondinfo.bnm.gov.my/ journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 23 market performance can be seen through the jci. while, market return as a benchmark for fbms is kuala lumpur composite index (klci). beta (β) beta (β) is a market risk that provides an overview of the relationship between the excess return of portfolio and the excess return from the market. index with β = 1 has the same risk with market risk (jci), so it is expected to get the same return with that produced by jakarta composite index (jci). the portfolio with β < 1 has a lower risk than market risk, so the potential return is generally below the return generated by the jci. an index with β > 1 has a greater risk than market risk, so it is expected to have a return above the jci return. calculation of beta in this study is the beta of issi and fbms, and the market beta is not calculated because the value is 1 (one). the calculation of beta in this research uses linear regression of y = a + bx in microsoft excel application with the function of “slope (...)” with the condition of return of issi and fbms as y axis and return market as x axis (jci as a benchmark of indonesian index and fbmklci as a benchmark of malaysian index). in formula form, beta can be calculated using: 𝛽𝑖𝐼 = 𝜎𝑖𝐼 𝜎2𝐼 where: βii = beta of portfolio σii = covariance of portfolio return of i with market portfolio σ2i = variance of the market portfolio two independent samples t-test after conducting the normality test mentioned above, to test whether there are differences in the performance of issi and fbms, conducted an independent sample t-test. independent sample ttest is a type of statistical test that aims to compare the average of two groups that are not paired or unrelated. unpaired can be interpreted that the study was conducted for two different sample subjects. independent sample t-test is used to determine whether two unrelated samples have different mean values. principle of this testing is to see the differences in the variances of the two groups of data, so before the test, must first know whether the variances are equal (equal variance) or different variances (unequal variance). the homogeneity of the variances is tested based on the formula: 𝐹 = 𝑆1 2 𝑆2 2 where: f = value of f count s12 = biggest variance value s22 = smallest variance value data is determined to have the same variance when f count < f table, and vice versa. data variance is not equal (unequal variance) when f count > f table. form of variance of both groups of data will affect the standard error value that will eventually differentiate the test formula. testing of t-test for the same variance (equal variance) is using the formula of polled variance: 𝑡 = �̅�1 − �̅�2 √ (𝑛1 − 1)𝑆1 2 + (𝑛2 − 1)𝑆2 2 𝑛1 + 𝑛2 − 2 ( 1 𝑛1 + 1 𝑛2 ) testing of t-test for different variance (unequal variance) is using the formula of separated variance: 𝑡 = �̅�1 − �̅�2 √ 𝑆1 2 𝑛1 + 𝑆2 2 𝑛2 where: �̅�1 = mean of sample 1 �̅�2 = mean of sample 2 s12 = variance of sample 1 s22 = variance of sample 2 n1 = number of sample 1 n2 = number of sample 2 purpose of independent sample t-test is to compare the average of two groups that are not related to each other. whether the two groups have the same mean or the mean is significantly different. mann-whitney u test in statistics, mann-whitney u test, or also called the mann-whitney-wilcoxon (mww), wilcoxon ranksum test, or wilcoxon-mann-whitney test, is a nonparametric test of the null hypothesis that it is equally likely that a randomly selected value from one sample will be less than or greater than a randomly selected value from a second sample. unlike the t-test it does not require the assumption of normal distributions. it is nearly as efficient as the t-test on normal distributions. this test can be used to determine whether two independent samples were selected from populations having the same distribution; a similar nonparametric test used on dependent samples is the wilcoxon signed-rank test. test involves the calculation of a statistic, usually called u, whose distribution under the null journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 24 hypothesis is known. in the case of small samples, the distribution is tabulated, but for sample sizes above 20, approximation using the normal distribution is fairly good. some books tabulate statistics equivalent to u, such as the sum of ranks in one of the samples, rather than u itself. mannwhitney u test is included in most modern statistical packages. it is also easily calculated by hand, especially for small samples. result descriptive statistics table 1 descriptive statistics for fbms and issi monthly returns (july 2012 june 2017) fbms issi mean 0.002882 0.00631 standard error 0.003358 0.004484 median 0.00715 0.01255 mode n/a 0.0475 standard deviation 0.02601 0.034735 sample variance 0.000677 0.001206 kurtosis 0.45981 0.054002 skewness -0.46592 -0.71055 range 0.1387 0.1476 minimum -0.0752 -0.0789 maximum 0.0635 0.0687 sum 0.1729 0.3786 count 60 60 source: microsoft excel based on table 1, resulted statistic data as follows: (1) index returns of fbms with 60 samples of data has minimum value of -0.0752, maximum value of 0.0635, mean / average value of 0.002882, and standard deviation of 0.02601. (2) index returns of issi with 60 samples of data has minimum value of -0.0789, maximum value of 0.0687, mean / average value of 0.00631, and standard deviation of 0.034735. it means that the average return of the indonesia sharia stock index (issi) is higher than the ftse bursa malaysia emas shariah (fbms) in the period of july 2012 june 2017. from the range, it can be concluded that the return of issi (0.1476) is more fluctuated than the fbms (0.1387). table 2 descriptive statistics for issi performance measured by sharpe ratio (july 2012 june 2017) source: microsoft excel based on table 2, resulted statistic data as follows: (1) index performance of fbms with 60 samples of data has minimum value of -3.36404, maximum value of 1.968442, mean / average value of -0.3621, and standard deviation of 1. (2) index performance of issi with 60 samples of data has minimum value of -2.60739, maximum value of 1.641974, mean / average value of -0.1709, and standard deviation of 0.988161. it means that the average performance of the indonesia sharia stock index (issi) measured by sharpe ratio is higher than the ftse bursa malaysia emas shariah (fbms) in the period of july 2012 june 2017. both indices performances ratio are negative which means that the excess returns of both indices are below the expected returns. table 3 descriptive statistics for issi performance measured by treynor ratio (july 2012 june 2017) fbms issi mean -0.01194 -0.00552 standard error 0.004258 0.004619 median -0.00653 0.00091 mode n/a 0.036911 standard deviation 0.032981 0.03578 sample variance 0.001088 0.00128 kurtosis 0.45981 0.054002 skewness -0.46592 -0.71055 range 0.175872 0.15204 minimum -0.11095 -0.09329 maximum 0.064922 0.058749 sum -0.71655 -0.33107 count 60 60 source: microsoft excel based on table 3, resulted statistic data as follows: (1) index performance of fbms with 60 samples of data has minimum value of -0.11095, maximum value of 0.064922, mean / average value of -0.01194, and standard deviation of 0.032981. (2) index performance of issi with 60 samples of data has minimum value of -0.09329, maximum value of 0.058749, mean / average value of 0.00552, and standard deviation of 0.03578. it means that the average performance of the indonesia sharia stock index (issi) measured by treynor ratio is higher than the ftse bursa malaysia emas shariah (fbms) in the period of july 2012 june 2017. both indices performances ratio are negative which means that the excess returns of both indices are below the expected returns. fbms issi mean -0.3621 -0.1709 standard error 0.129099 0.127571 median -0.198 0.023034 mode n/a n/a standard deviation 1 0.988161 sample variance 1 0.976462 kurtosis 0.45981 0.118362 skewness -0.46592 -0.71419 range 5.332477 4.249365 minimum -3.36404 -2.60739 maximum 1.968442 1.641974 sum -21.7259 -10.2539 count 60 60 journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 25 table 4 descriptive statistics for issi performance measured by jensen ratio (july 2012 june 2017) fbms issi mean -0.0012 -0.00092 standard error 0.001507 0.001208 median -0.00104 3.86e-05 mode n/a n/a standard deviation 0.011671 0.009354 sample variance 0.000136 8.75e-05 kurtosis 1.716452 -0.2413 skewness 0.730388 -0.14842 range 0.064489 0.04045 minimum -0.02725 -0.02002 maximum 0.037241 0.020428 sum -0.07196 -0.05511 count 60 60 source: microsoft excel based on table 4, resulted statistic data as follows: (1) index performance of fbms with 60 samples of data has minimum value of -0.02725, maximum value of 0.037241, mean / average value of -0.0012, and standard deviation of 0.011671. (2) index performance of issi with 60 samples of data has minimum value of -0.02002, maximum value of 0.020428, mean / average value of -0.00092, and standard deviation of 0.009354. it means that the average performance of the indonesia sharia stock index (issi) measured by sharpe ratio is higher than the ftse bursa malaysia emas shariah (fbms) in the period of july 2012 june 2017. both indices performances ratio are negative which means that the excess returns of both indices are below the expected returns. normality testing before applying the hypothesis testing, normality testing needs to be conducted. normality testing determines whether the data is normally distributed or not. this study used two-sample kolmogorovsmirnov test for the normality testing. two sample kolmogorov-smirnov test was applied to identify whether the data of fbms and issi are normally distributed or not. table 5 one sample kolmogorov-smirnov test for fbms and issi monthly returns data (july 2012 june 2017) fbms issi n 60 60 normal parameters mean 0.002882 0.006310 std. deviation 0.0260104 0.0347346 most extreme differences absolute 0.083 0.133 positive 0.071 0.085 negative -0.083 -0.133 test statistic 0.083 0.133 asymp. sig. (2-tailed) 0.200 0.010 source: spss based on table 5, resulted statistic data as follows: (1) kolmogorov-smirnov test for the data of fbms monthly returns during july 2012 june 2017 shows that asymp. sig. (2-tailed) > alpha (α) or 0.200 > 0.05. it means that the data is normally distributed. (2) kolmogorov-smirnov test for the data of issi monthly returns during july 2012 june 2017 shows that asymp. sig. (2-tailed) < alpha (α) or 0.010 < 0.05. it means that the data is not normally distributed. table 6 one sample kolmogorov-smirnov test for fbms and issi performance data (july 2012 june 2017) fbms issi n 60 60 normal parameters mean -0.3620973 -0.1708996 std. deviation 1.00000053 0.098816108 most extreme differences absolute 0.083 0.140 positive 0.071 0.085 negative -0.083 -0.140 test statistic 0.083 0.140 asymp. sig. (2-tailed) 0.200 0.005 source: spss based on table 6, resulted statistic data as follows: (1) kolmogorov-smirnov test for the data of fbms monthly returns during july 2012 june 2017 shows that asymp. sig. (2-tailed) > alpha (α) or 0.200 > 0.05. it means that the data is normally distributed. (2) kolmogorov-smirnov test for the data of issi monthly returns during july 2012 june 2017 shows that asymp. sig. (2-tailed) < alpha (α) or 0.050 < 0.05. it means that the data is not normally distributed. journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 26 table 7 one sample kolmogorov-smirnov test for fbms and issi performance data (july 2012 june 2017) fbms issi n 60 60 normal parameters mean -0.0119425 -.00055175 std. deviation 0.03298108 0.03577907 most extreme differences absolute 0.083 0.133 positive 0.071 0.085 negative -0.083 -0.133 test statistic 0.083 0.133 asymp. sig. (2-tailed) 0.200 0.010 source: spss based on table 7, resulted statistic data as follows: (1) kolmogorov-smirnov test for the data of fbms monthly returns during july 2012 june 2017 shows that asymp. sig. (2-tailed) > alpha (α) or 0.200 > 0.05. it means that the data is normally distributed. (2) kolmogorov-smirnov test for the data of issi monthly returns during july 2012 june 2017 shows that asymp. sig. (2-tailed) < alpha (α) or 0.010 < 0.05. it means that the data is not normally distributed. table 8 one sample kolmogorov-smirnov test for fbms and issi performance data (july 2012 june 2017) fbms issi n 60 60 normal parameters mean -0.0011997 -0.0009188 std. deviation 0.01167119 0.00935425 most extreme differences absolute 0.083 0.072 positive 0.083 0.060 negative -0.049 -0.072 test statistic 0.083 0.072 asymp. sig. (2-tailed) 0.200 0.200 source: spss based on table 8, resulted statistic data as follows: (1) kolmogorov-smirnov test for the data of fbms monthly returns during july 2012 june 2017 shows that asymp. sig. (2-tailed) > alpha (α) or 0.200 > 0.05. it means that the data is normally distributed. (2) kolmogorov-smirnov test for the data of issi monthly returns during july 2012 june 2017 shows that asymp. sig. (2-tailed) < alpha (α) or 0.200 < 0.05. it means that the data is normally distributed. hypothesis testing h1: there are significant differences in the performance of fbms and issi measured by the sharpe ratio. because the data of issi performances measured by sharpe ratio is not normally distributed, hypothesis testing will be conducted by using mann-whitney u test which is one of nonparametric methods used in statistics to measure the differences between the means of two groups of data. mann-whitney u test doesn’t require the data normally distributed. table 9 mann-whitney u test for fbms and issi performances measured by sharpe ratio (july 2012 june 2017) mann-whitney u 1566.500 wilcoxon w 3396.500 z -1.226 asymp. sig. (2-tailed) 0.220 source: spss based on table 9, showed that the value of asymp. sig. (2-tailed) > alpha (α) or 0.220 > 0.05. so, ho is accepted and ha is rejected. it means there is no significant difference in the performance of issi and fbms measured by the sharpe ratio. h2: there are significant differences in the performance of fbms and issi measured by the treynor ratio. because the data of issi performances measured by treynor ratio is not normally distributed, hypothesis testing will be conducted by using mann-whitney u test which is one of nonparametric methods used in statistics to measure the differences between the means of two groups of data. mann-whitney u test doesn’t require the data normally distributed. journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 27 table 10 mann-whitney u test for fbms and issi performances measured by treynor ratio (july 2012 june 2017) source: spss based on table 10, showed that the value of asymp. sig. (2-tailed) > alpha (α) or 0.214 > 0.05. so, ho is accepted and ha is rejected. it means there is no significant difference in the performance of issi and fbms measured by the treynor ratio. h3: there are significant differences in the performance of fbms and issi measured by the jensen ratio. because the data of fbms and issi performances measured by jensen ratio is normally distributed, hypothesis testing will be conducted by using two independent samples t-test. before conducting two independent samples t-test, two samples f-test must be conducted first to find out whether two groups of data have the equal or unequal variances. table 11 two samples f-test for fbms and issi performances measured by jensen ratio (july 2012 june 2017) fbms issi mean -0.0012 -0.00092 variance 0.000136 0.000088 observations 60 60 df 59 59 f 1.556802 p(f<=f) one-tail 0.0459 f critical one-tail 1.539957 source: spss based the table 11, it is showed that f statistic (1.556802) > f table (1.539957). it means that two groups of data have the unequal variances. so, kind of two independent samples t-test that will be conducted is t-test for unequal variances. table 12 two independent samples t-test for fbms and issi performances (july 2012 june 2017) fbms issi mean -0.0012 -0.000919 variance 0.000136 0.0000875 observations 60 60 hypothesized mean difference 0 df 113 t stat -0.14545 p(t<=t) one-tail 0.442309 t critical one-tail 1.65845 p(t<=t) two-tail 0.884618 t critical two-tail 1.98118 source: spss based on table 12, it is showed that the value of t statistic (-0.14545) > t table (1.98118). so, ho is accepted and ha is rejected. it means there is no significant difference in the performance of issi and fbms measured by the jensen ratio. discussion performance differences of fbms and issi measured by sharpe ratio statistic test shows that there is no significant difference between the performance of ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock index (issi) in the period of july 2012 june 2012 measured by sharpe ratio, so the ho is accepted and the ha is rejected. it means that there is no significant difference between the performances of ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock index (issi) (α = 0.05) with the issi sharpe value which outperformed the fbms. sharpe performance ratio measures how much excess return generated from each portfolio for each unit of total risk. greater sharpe performance value shows better portfolio performance. by looking at the results on negative sharpe performance measurements on both indices, can be seen that fbms and issi are not able to give positive excess return for each unit of total risk. issi has a greater sharpe value when compared to fbms, so the excess return of issi is greater than fbms for each unit of total risk. it means that the benefits of investing in fbms and issi stocks are lower than the benefits of investing in risk-free assets (sun and mgs), but the investment return on fbms is greater than issi profit when viewed from the total risk of each index. however, there is no significant difference in the sharpe ratio values of both indices. performance differences of fbms and issi measured by treynor ratio statistic test shows that there is no significant difference between the performance of ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock index (issi) in the period of july 2012 june 2012 measured by treynor ratio, so the ho is accepted and the ha is rejected. it means that there is no significant difference between the performances of ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock index (issi) (α = 0.05) with the issi treynor value that outperformed the fbms. fbms and issi have negative treynor index. these negative values are due to fbms and issi return rates which were lower than risk-free asset return (sun and mgs). issi has a higher treynor performance ratio than fbms, it shows that the excess return generated by investment in issi is greater than fbms for each unit of systematic risk (index risk that is affected by market risk) arising on each mann-whitney u 1563.000 wilcoxon w 3393.000 z -1.244 asymp. sig. (2-tailed) .214 journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 28 index. however, there is no significant difference in the treynor ratio values of both indices. performance differences of fbms and issi measured by jensen ratio statistic test shows that there is no significant difference between the performance of ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock index (issi) in the period of july 2012 june 2012 measured by jensen ratio, so the ho is accepted and the ha is rejected. it means that there is no significant difference between the performances of ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock index (issi) (α = 0.05) with the issi jensen value that outperformed the fbms. jensen or alpha ratio performance measurement is based on the capital asset pricing model (capm) theory, which is comparing the excess return with the required return predicted from capm. fbms and issi have negative jensen values. it shows that the performances of fbms and issi are under the expected return. however, there is no significant difference in jensen ratios of both indices. conclusion based on the description on data analysis and discussion, can be concluded things as follows: (1) there is no significant difference between the performances of ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock indices (issi) in sharpe ratio. (2) there is no significant difference between the performances of ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock indices (issi) in treynor ratio. (3) there is no significant difference between the performances of ftse bursa malaysia emas shariah (fbms) and indonesia sharia stock indices (issi) in jensen ratio. although there is no significant difference in the performances of both indices, calculations showed that the performance of issi in period of july 2012 june 2017 outperformed the fmbs in all the three measurements (sharpe, treynor, and jensen ratio). it differs to the results of the research of shofiyullah (2014) where although there was no significant difference between the performances of fbmhs and jii in the period of 2009-2011 measured by the same methods, performance of fbmhs in malaysia outperformed the jii in indonesia. it might be due to the increasing of issi constituents in the period taken in this study compared to the previous period (see figure 2). all of the three hypothesis in this research are rejected. it is the same with the research conducted by shofiyullah (2014) where the research investigated the differences between the performances of jakarta islamic index (jii) and ftse bursa malaysia hijrah shariah (fbmhs) with the same methods with this study, that are sharpe, treynor, and jensen ratio. all of the hypothesis of the shofiyullah was rejected which means that there was no significant difference in the performances of jii and fbmhs measured by sharpe, treynor, and jensen ratio. shofiyullah argued that it due to the similarity of excess returns of both indices. jii and fbmhs. in the descriptive statistics in table 1, it can be seen that the average return of issi (0.00631) is higher than fbms (0.002882) although the return of issi (range = 0.1476) is more fluctuated that fbms (range = 0.1387). these reasons might cause the issi outperformed the fbms although the difference of the performances of both indices is not significant. implication based on the conclusions of the research results, there are some suggestions that may be useful for the investors. results of this study can be used as a reference for investors who are interested to invest funds in sharia stocks in indonesia and malaysia. although there are differences in the results of sharpe, treynor, and jensen ratio calculations, where issi is superior to fbms on the sharpe ratio indicating that excess return on issi issuers' shares is greater than fbms issuers for each total index risk. issi outperformed fbms in treynor and jensen ratio. it means that for the issi treynor excess return is greater than the fbms for each unit of systematic risk. and for jensen ratio, return of issi is greater than fbms although both ratio values are under the expected return, but there is no significant difference between both indices on the three ratios. therefore, investment decisions are still adjusting to the tendency of investment managers. besides using the results of this study, investors should be still monitoring the performance of each stock issuer of fbms and issi which will be used as an investment instrument to see the performances of these stocks individually. limitation of study this study only examines the performances of sharia stock indices, so it cannot be generalized to the conventional stock indices listed on indonesia stock exchange and bursa malaysia. suggestions for further research as follows: (1) due to the limitations of index data owned by the author, the author recommend that the findings from this study to be tested on the next year's index return achievement to find out whether the findings are still relevant or not. (2) further research on the index performance will be better if it uses other ratios besides the ratios used by the author in order to increase the accuracy of the research, especially the ratios related to the portfolio assessment. journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 29 reference albaity, m. and ahmad, r. (2008). performance of syariah and composite indices: evidence from bursa malaysia. journal of accounting and finance, 4(1), 23-43. bapepam-lk and dsn-mui. (2010). set of bapepam-lk regulations about sharia capital market and fatwa of dsn-mui related to sharia capital market. jakarta: bapepam-lk. bodie, z., kane, a., and marcus, a. j. (2012). essentials of investments (9th ed.). texas: mcgraw-hill. bursa malaysia. live responsibly, invest responsibly, invest shariah. bulletin. bursa malaysia. dharani, m. and natarajan, p. (2011). equanimity of risk and return relationship between shariah index and general index in india. journal of economics and behavioral studies, 2(5), 213-222. indiastuti, f. (2008). evaluation against stock fund performance and formation of optimal portfolio on mutual fund equity securities. thesis. universitas indonesia. morgan, j. p. (2013). the art of investing. usa: treasury market practices group. pareto, c. (2017). measure your portfolio’s performance. http://www.investopedia.com/ articles/08/performance-measure.asp. (accessed on july 30, 2017). rose, p. s. and marquis, m. h. (2006). money and capital markets: financial institutions and instruments in a global marketplace (9th ed.). new york: mcgraw-hill. rudiyanto. (2011). evaluating the performance of mutual funds when the market is volatile. http://rudiyanto.blog.kontan.co.id/2011/10/04. (accessed on july 11, 2017). shofiyullah, n. f. (2014). comparison of jakarta islamic index and ftse bursa malaysia hijrah shariah index. journal of business and management, 14(2), 19-34. journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 30 appendix 1 ftse bursa malaysia emas shariah (fbms) historical data (july 2012 june 2017) number of data date price open high low return (%) 1 jul 12 11,278.60 11,016.30 11,436.66 11,016.30 2.5 2 aug 12 11,377.70 11,248.70 11,501.73 11,244.68 0.88 3 sep 12 11,341.75 11,402.18 11,470.60 11,040.69 -0.32 4 oct 12 11,488.38 11,352.54 11,575.89 11,318.06 1.29 5 nov 12 10,957.26 11,513.81 11,526.41 10,775.67 -4.62 6 dec 12 11,520.73 10,937.97 11,520.73 10,907.05 5.14 7 jan 13 11,112.97 11,492.50 11,629.01 10,963.86 -3.54 8 feb 13 11,105.74 11,147.75 11,178.13 10,838.73 -0.07 9 mar 13 11,357.06 11,105.88 11,399.94 10,986.71 2.26 10 apr 13 11,663.19 11,355.18 11,730.36 11,157.04 2.7 11 may 13 12,403.80 11,656.32 12,531.23 11,464.26 6.35 12 jun 13 12,294.50 12,387.24 12,541.42 11,934.08 -0.88 13 jul 13 12,373.68 12,290.23 12,640.60 12,255.78 0.64 14 aug 13 12,046.89 12,415.43 12,591.30 11,485.88 -2.64 15 sep 13 12,364.88 12,027.67 12,533.72 11,908.09 2.64 16 oct 13 12,742.22 12,360.51 12,805.02 12,335.38 3.05 17 nov 13 12,734.18 12,715.92 12,836.30 12,565.62 -0.06 18 dec 13 13,051.60 12,729.33 13,124.78 12,721.88 2.49 19 jan 14 12,604.02 13,046.11 13,048.59 12,389.31 -3.43 20 feb 14 12,895.61 12,426.57 12,945.38 12,372.65 2.31 21 mar 14 13,146.18 12,893.58 13,151.50 12,751.65 1.94 22 apr 14 13,214.50 13,119.57 13,224.69 13,032.83 0.52 23 may 14 13,136.04 13,211.51 13,395.88 13,134.49 -0.59 24 jun 14 13,387.34 13,121.39 13,418.80 13,075.53 1.91 25 jul 14 13,383.98 13,362.31 13,536.80 13,314.81 -0.03 26 aug 14 13,219.74 13,330.66 13,453.44 13,166.90 -1.23 27 sep 14 13,185.85 13,220.12 13,335.38 13,086.12 -0.26 28 oct 14 13,346.37 13,190.83 13,346.37 12,505.67 1.22 29 nov 14 13,036.26 13,357.46 13,393.64 12,924.09 -2.32 30 dec 14 12,507.03 13,028.55 13,028.55 11,804.03 -4.06 31 jan 15 12,851.97 12,470.56 13,041.52 12,201.59 2.76 32 feb 15 13,120.63 13,161.15 13,161.15 12,745.85 2.09 33 mar 15 13,122.15 13,144.92 13,146.07 12,833.51 0.01 34 apr 15 13,073.91 13,103.66 13,388.93 13,062.08 -0.37 35 may 15 12,576.45 13,122.38 13,133.74 12,548.20 -3.8 36 jun 15 12,208.85 12,609.68 12,685.78 12,138.77 -2.92 37 jul 15 12,373.72 12,270.45 12,477.22 12,033.14 1.35 38 aug 15 11,443.34 12,323.04 12,539.35 10,705.63 -7.52 39 sep 15 11,889.05 11,693.70 12,143.94 11,265.24 3.89 40 oct 15 12,392.83 11,895.74 12,682.58 11,866.12 4.24 41 nov 15 12,506.87 12,395.43 12,695.19 12,359.39 0.92 42 dec 15 12,800.65 12,529.44 12,894.94 12,180.94 2.35 43 jan 16 12,420.82 12,771.78 12,777.66 12,105.60 -2.97 44 feb 16 12,249.24 12,421.29 12,575.25 12,168.12 -1.38 45 mar 16 12,498.31 12,274.95 12,586.45 12,261.76 2.03 46 apr 16 12,208.99 12,482.39 12,559.51 12,131.99 -2.31 47 may 16 11,922.64 12,187.04 12,210.50 11,775.69 -2.35 48 jun 16 12,102.94 11,901.80 12,185.94 11,799.29 1.51 49 jul 16 12,198.77 12,089.77 12,283.49 12,000.22 0.79 50 aug 16 12,430.50 12,231.63 12,596.80 12,197.98 1.9 51 sep 16 12,348.18 12,421.72 12,530.61 12,231.59 -0.66 52 oct 16 12,384.01 12,398.66 12,477.95 12,368.19 0.29 53 nov 16 11,901.19 12,384.53 12,398.68 11,845.46 -3.9 54 dec 16 12,014.42 11,896.48 12,075.11 11,891.57 0.95 55 jan 17 12,227.59 11,998.95 12,372.47 11,966.63 1.77 56 feb 17 12,387.75 12,202.80 12,591.01 12,202.80 1.31 57 mar 17 12,811.34 12,387.80 12,880.42 12,370.91 3.42 58 apr 17 12,972.49 12,834.05 12,989.88 12,750.09 1.26 59 may 17 12,804.02 12,980.88 13,126.04 12,782.04 -1.3 60 jun 17 12,822.15 12,795.63 13,019.98 12,740.17 0.14 source: www.investing.com http://www.investing/ journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 31 appendix 2 indonesia sharia stock index (issi) historical data (july 2012 june 2017) number of data date price open high low return (%) 1 jul 12 137.86 132.34 138.14 132.07 4.75 2 aug 12 135.96 137.54 139.56 133.23 -1.38 3 sep 12 143.96 135.54 144.46 135.34 5.88 4 oct 12 147.78 143.47 147.94 142.00 2.65 5 nov 12 143.89 147.04 147.69 142.76 -2.63 6 dec 12 145.00 143.77 145.77 141.66 0.77 7 jan 13 147.51 145.23 149.45 143.64 1.73 8 feb 13 157.64 147.55 157.93 147.37 6.87 9 mar 13 162.64 158.16 163.56 156.15 3.17 10 apr 13 166.91 162.36 166.91 160.28 2.63 11 may 13 169.81 166.27 175.07 162.46 1.74 12 jun 13 164.24 169.10 169.73 146.43 -3.28 13 jul 13 154.20 161.15 163.56 149.03 -6.11 14 aug 13 143.92 154.91 158.06 129.47 -6.67 15 sep 13 145.16 143.84 159.93 136.66 0.86 16 oct 13 151.31 145.29 156.30 145.24 4.24 17 nov 13 143.03 150.10 151.78 141.43 -5.47 18 dec 13 143.71 143.38 145.87 137.95 0.48 19 jan 14 146.86 142.76 149.96 139.62 2.19 20 feb 14 152.88 146.12 153.32 143.27 4.10 21 mar 14 157.35 151.63 162.20 150.78 2.92 22 apr 14 158.83 158.18 162.72 155.53 0.94 23 may 14 161.08 158.59 167.33 158.42 1.42 24 jun 14 159.75 160.87 163.68 158.59 -0.83 25 jul 14 167.34 159.86 169.64 159.25 4.75 26 aug 14 168.98 166.34 171.86 166.04 0.98 27 sep 14 166.76 169.34 172.71 165.07 -1.31 28 oct 14 163.41 166.57 167.06 157.67 -2.01 29 nov 14 166.10 163.80 166.40 158.82 1.65 30 dec 14 168.64 166.02 168.64 161.26 1.53 31 jan 15 171.50 169.06 173.52 165.27 1.70 32 feb 15 174.32 170.97 175.41 169.30 1.64 33 mar 15 174.10 174.46 175.79 168.43 -0.13 34 apr 15 161.71 173.86 174.46 159.94 -7.12 35 may 15 167.07 162.22 171.92 162.05 3.31 36 jun 15 157.92 167.21 167.56 155.49 -5.48 37 jul 15 154.50 158.47 160.47 151.71 -2.17 38 aug 15 142.31 153.57 154.79 129.84 -7.89 39 sep 15 134.39 141.58 141.63 128.4 -5.57 40 oct 15 140.96 134.54 148.07 134.27 4.89 41 nov 15 139.80 140.65 145.73 138.53 -0.82 42 dec 15 145.06 141.59 145.18 134.45 3.76 43 jan 16 144.88 144.64 146.91 138.86 -0.12 44 feb 16 151.15 144.98 151.67 142.26 4.33 45 mar 16 155.91 151.02 158.76 150.98 3.15 46 apr 16 157.46 156.12 162.43 154.79 0.99 47 may 16 156.35 156.78 158.34 152.61 -0.70 48 jun 16 165.94 156.65 166.36 156.61 6.13 49 jul 16 173.75 166.29 177.58 164.28 4.71 50 aug 16 178.66 175.52 181.52 174.68 2.83 51 sep 16 176.93 177.72 180.78 168.81 -0.97 52 oct 16 179.22 178.41 181.14 176.19 1.29 53 nov 16 170.00 179.37 181.21 166.31 -5.14 54 dec 16 172.08 171.14 174.71 163.00 1.22 55 jan 17 172.48 171.66 174.14 169.87 0.23 56 feb 17 174.75 173.25 176.09 173.01 1.32 57 mar 17 180.49 174.90 181.52 173.46 3.28 58 apr 17 184.69 181.02 186.46 180.71 2.33 59 may 17 183.12 185.25 187.29 179.01 -0.85 60 jun 17 185.22 183.33 185.35 180.47 1.15 source: www.investing.com http://www.investing/ journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 32 appendix 3 kuala lumpur composite index (klci) historical data (july 2012 june 2017) number of data date price open high low return (%) 1 jul 12 1,631.60 1,599.87 1,647.94 1,599.67 2.03 2 aug 12 1,646.11 1,628.07 1,655.39 1,626.68 0.89 3 sep 12 1,636.66 1,649.48 1,655.49 1,595.85 -0.57 4 oct 12 1,673.07 1,635.38 1,679.37 1,633.39 2.22 5 nov 12 1,610.83 1,675.85 1,678.57 1,590.67 -3.72 6 dec 12 1,688.95 1,608.31 1,688.95 1,601.71 4.85 7 jan 13 1,627.55 1,685.15 1,699.68 1,602.12 -3.64 8 feb 13 1,637.63 1,634.54 1,639.58 1,597.00 0.62 9 mar 13 1,671.63 1,636.47 1,681.03 1,613.94 2.08 10 apr 13 1,717.65 1,671.88 1,718.44 1,632.28 2.75 11 may 13 1,769.22 1,715.01 1,826.22 1,685.28 3.00 12 jun 13 1,773.54 1,771.55 1,792.67 1,723.74 0.24 13 jul 13 1,772.62 1,771.98 1,811.65 1,762.87 -0.05 14 aug 13 1,727.58 1,775.71 1,801.26 1,660.39 -2.54 15 sep 13 1,768.62 1,723.77 1,805.15 1,702.57 2.38 16 oct 13 1,806.85 1,766.37 1,822.17 1,759.66 2.16 17 nov 13 1,812.72 1,803.68 1,814.73 1,780.54 0.32 18 dec 13 1,866.96 1,812.75 1,882.20 1,811.67 2.99 19 jan 14 1,804.03 1,865.73 1,868.29 1,777.62 -3.37 20 feb 14 1,835.66 1,795.89 1,836.14 1,769.80 1.75 21 mar 14 1,849.21 1,834.44 1,852.29 1,802.88 0.74 22 apr 14 1,871.52 1,846.10 1,871.52 1,842.06 1.21 23 may 14 1,873.38 1,869.50 1,889.47 1,853.31 0.10 24 jun 14 1,882.71 1,867.80 1,892.33 1,860.20 0.50 25 jul 14 1,871.36 1,879.24 1,896.23 1,866.47 -0.60 26 aug 14 1,866.11 1,866.11 1,879.62 1,837.28 -0.28 27 sep 14 1,846.31 1,865.46 1,876.21 1,829.24 -1.06 28 oct 14 1,855.15 1,847.00 1,855.15 1,766.22 0.48 29 nov 14 1,820.89 1,856.82 1,858.09 1,805.35 -1.85 30 dec 14 1,761.25 1,821.52 1,821.52 1,671.82 -3.28 31 jan 15 1,781.26 1,757.15 1,810.21 1,706.18 1.14 32 feb 15 1,821.21 1,814.72 1,831.41 1,780.21 2.24 33 mar 15 1,830.78 1,822.91 1,832.85 1,774.30 0.53 34 apr 15 1,818.27 1,831.35 1,867.53 1,818.27 -0.68 35 may 15 1,747.52 1,830.32 1,830.90 1,746.06 -3.89 36 jun 15 1,706.64 1,751.82 1,752.08 1,688.44 -2.34 37 jul 15 1,723.14 1,709.77 1,738.67 1,685.03 0.97 38 aug 15 1,612.74 1,716.99 1,744.19 1,503.68 -6.41 39 sep 15 1,621.04 1,655.47 1,691.93 1,567.91 0.51 40 oct 15 1,665.71 1,622.61 1,727.41 1,617.42 2.76 41 nov 15 1,672.16 1,665.30 1,696.99 1,644.29 0.39 42 dec 15 1,692.51 1,670.29 1,706.25 1,622.84 1.22 43 jan 16 1,667.80 1,686.82 1,687.89 1,600.92 -1.46 44 feb 16 1,654.75 1,663.99 1,685.88 1,631.11 -0.78 45 mar 16 1,717.58 1,658.42 1,726.55 1,655.47 3.80 46 apr 16 1,672.72 1,715.36 1,729.13 1,660.92 -2.61 47 may 16 1,626.00 1,674.51 1,676.03 1,611.91 -2.79 48 jun 16 1,654.08 1,623.33 1,664.04 1,611.88 1.73 49 jul 16 1,653.26 1,653.16 1,674.58 1,640.68 -0.05 50 aug 16 1,678.06 1,657.18 1,700.71 1,648.45 1.50 51 sep 16 1,652.55 1,682.35 1,692.12 1,645.18 -1.52 52 oct 16 1,672.46 1,658.36 1,679.11 1,652.63 1.20 53 nov 16 1,619.12 1,673.56 1,673.90 1,614.11 -3.19 54 dec 16 1,641.73 1,621.10 1,651.45 1,616.54 1.40 55 jan 17 1,671.54 1,636.94 1,695.72 1,630.67 1.82 56 feb 17 1,693.77 1,670.40 1,719.76 1,667.68 1.33 57 mar 17 1,740.09 1,694.64 1,759.76 1,692.33 2.73 58 apr 17 1,768.06 1,742.38 1,772.21 1,729.13 1.61 59 may 17 1,765.87 1,769.16 1,787.54 1,754.23 -0.12 60 jun 17 1,763.67 1,764.57 1,796.75 1,755.65 -0.12 source: www.investing.com http://www.investing/ journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 33 appendix 4 jakarta composite index (jci) historical data (july 2012 june 2017) number of data date price open high low return (%) 1 jul 12 4,142.34 3,976.71 4,149.71 3,963.47 4.72 2 aug 12 4,060.33 4,129.81 4,183.03 3,978.08 -1.98 3 sep 12 4,262.56 4,052.89 4,272.83 4,047.28 4.98 4 oct 12 4,350.29 4,249.69 4,366.86 4,214.52 2.06 5 nov 12 4,276.14 4,331.75 4,381.75 4,255.27 -1.70 6 dec 12 4,316.69 4,277.19 4,340.26 4,222.13 0.95 7 jan 13 4,453.70 4,322.58 4,472.11 4,298.61 3.17 8 feb 13 4,795.79 4,458.60 4,795.79 4,457.45 7.68 9 mar 13 4,940.99 4,798.49 4,940.99 4,721.32 3.03 10 apr 13 5,034.07 4,927.12 5,034.07 4,856.30 1.88 11 may 13 5,068.63 5,020.20 5,251.30 4,907.60 0.69 12 jun 13 4,818.90 5,053.54 5,055.83 4,373.38 -4.93 13 jul 13 4,610.38 4,757.18 4,815.73 4,403.80 -4.33 14 aug 13 4,195.09 4,618.96 4,699.73 3,837.74 -9.01 15 sep 13 4,316.18 4,196.72 4,791.77 4,012.68 2.89 16 oct 13 4,510.63 4,314.96 4,611.26 4,314.96 4.51 17 nov 13 4,256.44 4,473.73 4,518.65 4,202.92 -5.64 18 dec 13 4,274.18 4,269.08 4,331.59 4,109.31 0.42 19 jan 14 4,418.76 4,240.39 4,510.22 4,161.19 3.38 20 feb 14 4,620.22 4,407.00 4,665.27 4,320.78 4.56 21 mar 14 4,768.28 4,589.62 4,903.50 4,567.76 3.20 22 apr 14 4,840.15 4,796.16 4,933.11 4,721.60 1.51 23 may 14 4,893.91 4,845.34 5,091.32 4,828.22 1.11 24 jun 14 4,878.58 4,900.97 4,971.95 4,835.04 -0.31 25 jul 14 5,088.80 4,877.65 5,165.42 4,862.42 4.31 26 aug 14 5,136.86 5,076.23 5,223.98 5,043.52 0.94 27 sep 14 5,137.58 5,159.94 5,262.57 5,082.73 0.01 28 oct 14 5,089.55 5,148.57 5,165.39 4,900.72 -0.93 29 nov 14 5,149.89 5,102.54 5,157.08 4,965.39 1.19 30 dec 14 5,226.95 5,150.38 5,226.95 5,005.27 1.50 31 jan 15 5,289.40 5,233.80 5,325.04 5,121.81 1.19 32 feb 15 5,450.29 5,277.15 5,464.22 5,254.04 3.04 33 mar 15 5,518.67 5,452.83 5,518.67 5,350.47 1.25 34 apr 15 5,086.42 5,516.80 5,524.04 5,015.01 -7.83 35 may 15 5,216.38 5,093.33 5,347.13 5,089.42 2.55 36 jun 15 4,910.66 5,212.13 5,215.55 4,826.13 -5.86 37 jul 15 4,802.53 4,924.07 4,982.91 4,711.49 -2.20 38 aug 15 4,509.61 4,778.04 4,868.07 4,111.11 -6.10 39 sep 15 4,223.91 4,484.20 4,484.79 4,033.59 -6.34 40 oct 15 4,455.18 4,231.41 4,696.16 4,207.80 5.48 41 nov 15 4,446.46 4,442.42 4,621.26 4,395.97 -0.20 42 dec 15 4,593.01 4,504.22 4,595.51 4,330.76 3.30 43 jan 16 4,615.16 4,580.17 4,639.24 4,408.80 0.48 44 feb 16 4,770.96 4,620.15 4,803.61 4,545.14 3.38 45 mar 16 4,845.37 4,760.24 4,908.26 4,757.80 1.56 46 apr 16 4,838.58 4,843.39 4,920.40 4,766.81 -0.14 47 may 16 4,796.87 4,828.96 4,845.12 4,690.56 -0.86 48 jun 16 5,016.65 4,801.85 5,033.24 4,754.36 4.58 49 jul 16 5,215.99 5,027.62 5,334.12 4,971.58 3.97 50 aug 16 5,386.08 5,280.21 5,476.22 5,279.59 3.26 51 sep 16 5,364.80 5,368.52 5,474.31 5,128.17 -0.40 52 oct 16 5,422.54 5,403.86 5,482.84 5,332.08 1.08 53 nov 16 5,148.91 5,430.75 5,491.70 5,043.35 -5.05 54 dec 17 5,296.71 5,168.63 5,334.79 5,022.85 2.87 55 jan 17 5,294.10 5,290.39 5,360.06 5,228.29 -0.05 56 feb 17 5,386.69 5,319.94 5,418.38 5,317.49 1.75 57 mar 17 5,568.11 5,389.17 5,606.02 5,350.91 3.37 58 apr 17 5,685.30 5,583.35 5,726.53 5,577.49 2.10 59 may 17 5,738.15 5,703.87 5,874.44 5,577.52 0.93 60 jun 17 5,829.71 5,749.42 5,831.34 5,668.72 1.60 source: www.investing.com http://www.investing/ journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 34 appendix 5 sharpe ratio calculation for fbms and issi monthly returns (july 2012 june 2017) number of data date index return (rp) risk-free rate (rf) rp-rf std. deviation (σp) sharpe ratio (sp) fbms issi zi120012 spn12130704 fbms issi fbms issi fbms issi 1 jul 12 0.0250 0.0475 0.0123 0.01167 0.01270 0.03583 0.03473 0.02601 0.48827 0.03071 2 aug 12 0.0088 -0.0138 0.0123 0.01167 -0.00350 -0.02547 0.03473 0.02601 -0.13456 -0.73318 3 sep 12 -0.0032 0.0588 0.0123 0.01167 -0.01550 0.04713 0.03473 0.02601 -0.59591 1.35696 4 oct 12 0.0129 0.0265 0.0123 0.01167 0.00060 0.01483 0.03473 0.02601 0.02307 0.42705 5 nov 12 -0.0462 -0.0263 0.0123 0.01167 -0.05850 -0.03797 0.03473 0.02601 -2.24910 -1.09305 6 dec 12 0.0514 0.0077 0.0123 0.01167 0.03910 -0.00397 0.03473 0.02601 1.50324 -0.11420 7 jan 13 -0.0354 0.0173 0.0123 0.01167 -0.04770 0.00563 0.03473 0.02601 -1.83388 0.16218 8 feb 13 -0.0007 0.0687 0.0123 0.01167 -0.01300 0.05703 0.03473 0.02601 -0.4998 1.64197 9 mar 13 0.0226 0.0317 0.0123 0.01167 0.01030 0.02003 0.03473 0.02601 0.39600 0.57675 10 apr 13 0.0270 0.0263 0.0123 0.01167 0.01470 0.01463 0.03473 0.02601 0.56516 0.42129 11 may 13 0.0635 0.0174 0.0123 0.01167 0.05120 0.00573 0.03473 0.02601 1.96844 0.16506 12 jun 13 -0.0088 -0.0328 0.0123 0.01167 -0.02110 -0.04447 0.03473 0.02601 -0.81121 -1.28018 13 jul 13 0.0064 -0.0611 0.0123 0.01167 -0.00590 -0.07277 0.03473 0.02601 -0.22683 -2.09493 14 aug 13 -0.0264 -0.0667 0.0123 0.01167 -0.03870 -0.07837 0.03473 0.02601 -1.48786 -2.25616 15 sep 13 0.0264 0.0086 0.0123 0.01167 0.01410 -0.00307 0.03473 0.02601 0.54209 -0.08829 16 oct 13 0.0305 0.0424 0.0123 0.01167 0.01820 0.03073 0.03473 0.02601 0.69972 0.88480 17 nov 13 -0.0006 -0.0547 0.0123 0.01167 -0.01290 -0.06637 0.03473 0.02601 -0.49595 -1.91068 18 dec 13 0.0249 0.0048 0.0123 0.01167 0.01260 -0.00687 0.03473 0.02601 0.48442 -0.19769 19 jan 14 -0.0343 0.0219 0.0123 0.01167 -0.04660 0.01023 0.03473 0.02601 -1.79159 0.29461 20 feb 14 0.0231 0.0410 0.0123 0.01167 0.01080 0.02933 0.03473 0.02601 0.41522 0.84450 21 mar 14 0.0194 0.0292 0.0123 0.01167 0.00710 0.01753 0.03473 0.02601 0.27297 0.50478 22 apr 14 0.0052 0.0094 0.0123 0.01167 -0.00710 -0.00227 0.03473 0.02601 -0.27297 -0.06526 23 may 14 -0.0059 0.0142 0.0123 0.01167 -0.01820 0.00253 0.03473 0.02601 -0.69972 0.07293 24 jun 14 0.0191 -0.0083 0.0123 0.01167 0.00680 -0.01997 0.03473 0.02601 0.26143 -0.57484 25 jul 14 -0.0003 0.0475 0.0123 0.01167 -0.01260 0.03583 0.03473 0.02601 -0.48442 1.03163 26 aug 14 -0.0123 0.0098 0.0123 0.01167 -0.02460 -0.00187 0.03473 0.02601 -0.94577 -0.05374 27 sep 14 -0.0026 -0.0131 0.0123 0.01167 -0.01490 -0.02477 0.03473 0.02601 -0.57285 -0.71303 28 oct 14 0.0122 -0.0201 0.0123 0.01167 -0.00010 -0.03177 0.03473 0.02601 -0.00384 -0.91455 29 nov 14 -0.0232 0.0165 0.0123 0.01167 -0.03550 0.00483 0.03473 0.02601 -1.36484 0.13915 30 dec 14 -0.0406 0.0153 0.0123 0.01167 -0.05290 0.00363 0.03473 0.02601 -2.03380 0.10460 31 jan 15 0.0276 0.0170 0.0123 0.01167 0.01530 0.00533 0.03473 0.02601 0.58823 0.15355 32 feb 15 0.0209 0.0164 0.0123 0.01167 0.00860 0.00473 0.03473 0.02601 0.33064 0.13627 33 mar 15 0.0001 -0.0013 0.0123 0.01167 -0.01220 -0.01297 0.03473 0.02601 -0.46904 -0.37331 34 apr 15 -0.0037 -0.0712 0.0123 0.01167 -0.01600 -0.08287 0.03473 0.02601 -0.61514 -2.38571 35 may 15 -0.0380 0.0331 0.0123 0.01167 -0.05030 0.02143 0.03473 0.02601 -1.93384 0.61706 36 jun 15 -0.0292 -0.0548 0.0123 0.01167 -0.04150 -0.06647 0.03473 0.02601 -1.59551 -1.91356 37 jul 15 0.0135 -0.0217 0.0123 0.01167 0.00120 -0.03337 0.03473 0.02601 0.04614 -0.96062 38 aug 15 -0.0752 -0.0789 0.0123 0.01167 -0.08750 -0.09057 0.03473 0.02601 -3.36404 -2.60739 39 sep 15 0.0389 -0.0557 0.0123 0.01167 0.02660 -0.06737 0.03473 0.02601 1.02267 -1.93947 40 oct 15 0.0424 0.0489 0.0123 0.01167 0.03010 0.03723 0.03473 0.02601 1.15723 1.07194 41 nov 15 0.0092 -0.0082 0.0123 0.01167 -0.00310 -0.01987 0.03473 0.02601 -0.11918 -0.57196 42 dec 15 0.0235 0.0376 0.0123 0.01167 0.01120 0.02593 0.03473 0.02601 0.43060 0.74661 43 jan 16 -0.0297 -0.0012 0.0123 0.01167 -0.04200 -0.01287 0.03473 0.02601 -1.61474 -0.37043 44 feb 16 -0.0138 0.0433 0.0123 0.01167 -0.02610 0.03163 0.03473 0.02601 -1.00344 0.91072 45 mar 16 0.0203 0.0315 0.0123 0.01167 0.00800 0.01983 0.03473 0.02601 0.30757 0.57100 46 apr 16 -0.0231 0.0099 0.0123 0.01167 -0.03540 -0.00177 0.03473 0.02601 -1.36099 -0.05086 47 may 16 -0.0235 -0.0070 0.0123 0.01167 -0.03580 -0.01867 0.03473 0.02601 -1.37637 -0.53741 48 jun 16 0.0151 0.0613 0.0123 0.01167 0.00280 0.04963 0.03473 0.02601 0.10765 1.42893 49 jul 16 0.0079 0.0471 0.0123 0.01167 -0.00440 0.03543 0.03473 0.02601 -0.16916 1.02012 50 aug 16 0.0190 0.0283 0.0123 0.01167 0.00670 0.01663 0.03473 0.02601 0.25759 0.47887 51 sep 16 -0.0066 -0.0097 0.0123 0.01167 -0.01890 -0.02137 0.03473 0.02601 -0.72663 -0.61514 52 oct 16 0.0029 0.0129 0.0123 0.01167 -0.00940 0.00123 0.03473 0.02601 -0.36139 0.03551 53 nov 16 -0.0390 -0.0514 0.0123 0.01167 -0.05130 -0.06307 0.03473 0.02601 -1.97229 -1.81567 54 dec 17 0.0095 0.0122 0.0123 0.01167 -0.00280 0.00053 0.03473 0.02601 -0.10765 0.01535 55 jan 17 0.0177 0.0023 0.0123 0.01167 0.00540 -0.00937 0.03473 0.02601 0.20761 -0.26966 56 feb 17 0.0131 0.0132 0.0123 0.01167 0.00080 0.00153 0.03473 0.02601 0.03076 0.04414 57 mar 17 0.0342 0.0328 0.0123 0.01167 0.02190 0.02113 0.03473 0.02601 0.84197 0.60842 58 apr 17 0.0126 0.0233 0.0123 0.01167 0.00030 0.01163 0.03473 0.02601 0.01153 0.33492 59 may 17 -0.0130 -0.0085 0.0123 0.01167 -0.02530 -0.02017 0.03473 0.02601 -0.97269 -0.58059 60 jun 17 0.0014 0.0115 0.0123 0.01167 -0.01090 -0.00017 0.03473 0.02601 -0.41906 -0.00480 mean 0.00288 0.00631 0.0123 0.01167 -0.00942 -0.00536 0.03473 0.02601 -0.36210 -0.17090 source: microsoft excel journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 35 appendix 6 treynor ratio calculation for fbms and issi monthly returns (july 2012 june 2017) number of data date index return (rp) risk-free rate (rf) rp-rf index beta (βp) treynor ratio (tp) fbms issi zi120012 spn12130704 fbms issi fbms issi fbms issi 1 jul 12 0.0250 0.0475 0.0123 0.01167 0.01270 0.03583 0.78864 0.9708 0.01610 0.03691 2 aug 12 0.0088 -0.0138 0.0123 0.01167 -0.00350 -0.02547 0.78864 0.9708 -0.00444 -0.02623 3 sep 12 -0.0032 0.0588 0.0123 0.01167 -0.01550 0.04713 0.78864 0.9708 -0.01965 0.04855 4 oct 12 0.0129 0.0265 0.0123 0.01167 0.00060 0.01483 0.78864 0.9708 0.00076 0.01528 5 nov 12 -0.0462 -0.0263 0.0123 0.01167 -0.05850 -0.03797 0.78864 0.9708 -0.07418 -0.03911 6 dec 12 0.0514 0.0077 0.0123 0.01167 0.03910 -0.00397 0.78864 0.9708 0.04958 -0.00409 7 jan 13 -0.0354 0.0173 0.0123 0.01167 -0.04770 0.00563 0.78864 0.9708 -0.06048 0.00580 8 feb 13 -0.0007 0.0687 0.0123 0.01167 -0.01300 0.05703 0.78864 0.9708 -0.0165 0.05875 9 mar 13 0.0226 0.0317 0.0123 0.01167 0.01030 0.02003 0.78864 0.9708 0.01306 0.02064 10 apr 13 0.0270 0.0263 0.0123 0.01167 0.01470 0.01463 0.78864 0.9708 0.01864 0.01507 11 may 13 0.0635 0.0174 0.0123 0.01167 0.05120 0.00573 0.78864 0.9708 0.06492 0.00591 12 jun 13 -0.0088 -0.0328 0.0123 0.01167 -0.02110 -0.04447 0.78864 0.9708 -0.02675 -0.04580 13 jul 13 0.0064 -0.0611 0.0123 0.01167 -0.00590 -0.07277 0.78864 0.9708 -0.00748 -0.07496 14 aug 13 -0.0264 -0.0667 0.0123 0.01167 -0.03870 -0.07837 0.78864 0.9708 -0.04907 -0.08072 15 sep 13 0.0264 0.0086 0.0123 0.01167 0.01410 -0.00307 0.78864 0.9708 0.01788 -0.00316 16 oct 13 0.0305 0.0424 0.0123 0.01167 0.01820 0.03073 0.78864 0.9708 0.02308 0.03166 17 nov 13 -0.0006 -0.0547 0.0123 0.01167 -0.01290 -0.06637 0.78864 0.9708 -0.01636 -0.06836 18 dec 13 0.0249 0.0048 0.0123 0.01167 0.01260 -0.00687 0.78864 0.9708 0.01598 -0.00707 19 jan 14 -0.0343 0.0219 0.0123 0.01167 -0.04660 0.01023 0.78864 0.9708 -0.05909 0.01054 20 feb 14 0.0231 0.0410 0.0123 0.01167 0.01080 0.02933 0.78864 0.9708 0.01369 0.03022 21 mar 14 0.0194 0.0292 0.0123 0.01167 0.00710 0.01753 0.78864 0.9708 0.00900 0.01806 22 apr 14 0.0052 0.0094 0.0123 0.01167 -0.00710 -0.00227 0.78864 0.9708 -0.00900 -0.00233 23 may 14 -0.0059 0.0142 0.0123 0.01167 -0.01820 0.00253 0.78864 0.9708 -0.02308 0.00261 24 jun 14 0.0191 -0.0083 0.0123 0.01167 0.00680 -0.01997 0.78864 0.9708 0.00862 -0.02057 25 jul 14 -0.0003 0.0475 0.0123 0.01167 -0.01260 0.03583 0.78864 0.9708 -0.01598 0.03691 26 aug 14 -0.0123 0.0098 0.0123 0.01167 -0.02460 -0.00187 0.78864 0.9708 -0.03119 -0.00192 27 sep 14 -0.0026 -0.0131 0.0123 0.01167 -0.01490 -0.02477 0.78864 0.9708 -0.01889 -0.02551 28 oct 14 0.0122 -0.0201 0.0123 0.01167 -0.00010 -0.03177 0.78864 0.9708 -0.00013 -0.03272 29 nov 14 -0.0232 0.0165 0.0123 0.01167 -0.03550 0.00483 0.78864 0.9708 -0.04501 0.00498 30 dec 14 -0.0406 0.0153 0.0123 0.01167 -0.05290 0.00363 0.78864 0.9708 -0.06708 0.00374 31 jan 15 0.0276 0.0170 0.0123 0.01167 0.01530 0.00533 0.78864 0.9708 0.01940 0.00549 32 feb 15 0.0209 0.0164 0.0123 0.01167 0.00860 0.00473 0.78864 0.9708 0.01090 0.00488 33 mar 15 0.0001 -0.0013 0.0123 0.01167 -0.01220 -0.01297 0.78864 0.9708 -0.01547 -0.01336 34 apr 15 -0.0037 -0.0712 0.0123 0.01167 -0.01600 -0.08287 0.78864 0.9708 -0.02029 -0.08536 35 may 15 -0.0380 0.0331 0.0123 0.01167 -0.05030 0.02143 0.78864 0.9708 -0.06378 0.02208 36 jun 15 -0.0292 -0.0548 0.0123 0.01167 -0.04150 -0.06647 0.78864 0.9708 -0.05262 -0.06847 37 jul 15 0.0135 -0.0217 0.0123 0.01167 0.00120 -0.03337 0.78864 0.9708 0.00152 -0.03437 38 aug 15 -0.0752 -0.0789 0.0123 0.01167 -0.08750 -0.09057 0.78864 0.9708 -0.11095 -0.09329 39 sep 15 0.0389 -0.0557 0.0123 0.01167 0.02660 -0.06737 0.78864 0.9708 0.03373 -0.06939 40 oct 15 0.0424 0.0489 0.0123 0.01167 0.03010 0.03723 0.78864 0.9708 0.03817 0.03835 41 nov 15 0.0092 -0.0082 0.0123 0.01167 -0.00310 -0.01987 0.78864 0.9708 -0.00393 -0.02046 42 dec 15 0.0235 0.0376 0.0123 0.01167 0.01120 0.02593 0.78864 0.9708 0.01420 0.02671 43 jan 16 -0.0297 -0.0012 0.0123 0.01167 -0.04200 -0.01287 0.78864 0.9708 -0.05326 -0.01325 44 feb 16 -0.0138 0.0433 0.0123 0.01167 -0.02610 0.03163 0.78864 0.9708 -0.03309 0.03258 45 mar 16 0.0203 0.0315 0.0123 0.01167 0.00800 0.01983 0.78864 0.9708 0.01014 0.02043 46 apr 16 -0.0231 0.0099 0.0123 0.01167 -0.03540 -0.00177 0.78864 0.9708 -0.04489 -0.00182 47 may 16 -0.0235 -0.0070 0.0123 0.01167 -0.03580 -0.01867 0.78864 0.9708 -0.04539 -0.01923 48 jun 16 0.0151 0.0613 0.0123 0.01167 0.00280 0.04963 0.78864 0.9708 0.00355 0.05113 49 jul 16 0.0079 0.0471 0.0123 0.01167 -0.00440 0.03543 0.78864 0.9708 -0.00558 0.03650 50 aug 16 0.0190 0.0283 0.0123 0.01167 0.00670 0.01663 0.78864 0.9708 0.00850 0.01713 51 sep 16 -0.0066 -0.0097 0.0123 0.01167 -0.01890 -0.02137 0.78864 0.9708 -0.02397 -0.02201 52 oct 16 0.0029 0.0129 0.0123 0.01167 -0.00940 0.00123 0.78864 0.9708 -0.01192 0.00127 53 nov 16 -0.0390 -0.0514 0.0123 0.01167 -0.05130 -0.06307 0.78864 0.9708 -0.06505 -0.06496 54 dec 17 0.0095 0.0122 0.0123 0.01167 -0.00280 0.00053 0.78864 0.9708 -0.00355 0.00055 55 jan 17 0.0177 0.0023 0.0123 0.01167 0.00540 -0.00937 0.78864 0.9708 0.00685 -0.00965 56 feb 17 0.0131 0.0132 0.0123 0.01167 0.00080 0.00153 0.78864 0.9708 0.00101 0.00158 57 mar 17 0.0342 0.0328 0.0123 0.01167 0.02190 0.02113 0.78864 0.9708 0.02777 0.02177 58 apr 17 0.0126 0.0233 0.0123 0.01167 0.00030 0.01163 0.78864 0.9708 0.00038 0.01198 59 may 17 -0.0130 -0.0085 0.0123 0.01167 -0.02530 -0.02017 0.78864 0.9708 -0.03208 -0.02077 60 jun 17 0.0014 0.0115 0.0123 0.01167 -0.01090 -0.00017 0.78864 0.9708 -0.01382 -0.00017 mean 0.00288 0.00631 0.0123 0.01167 -0.00942 -0.00536 0.78864 0.9708 -0.01194 -0.00552 source: microsoft excel journal of accounting, management, and economics, vol. 20, no. 1, 2018, pp. 16-36 36 appendix 7 jensen ratio calculation for fbms and issi monthly returns (july 2012 june 2017) number of data date index return (rp) market return (rm) risk-free rate (rf) rm-rf index beta (β) jensen ratio (ap) fbms issi klci jci zi120012 spn12130704 fbms issi fbms issi fbms issi 1 jul 12 0.0250 0.0475 0.0203 0.0472 0.0123 0.01167 0.00800 0.03553 0.78864 0.9708 0.00639 0.00134 2 aug 12 0.0088 -0.0138 0.0089 -0.0198 0.0123 0.01167 -0.00340 -0.03147 0.78864 0.9708 -0.00082 0.00508 3 sep 12 -0.0032 0.0588 -0.0057 0.0498 0.0123 0.01167 -0.01800 0.03813 0.78864 0.9708 -0.00130 0.01011 4 oct 12 0.0129 0.0265 0.0222 0.0206 0.0123 0.01167 0.00990 0.00893 0.78864 0.9708 -0.00721 0.00616 5 nov 12 -0.0462 -0.0263 -0.0372 -0.0170 0.0123 0.01167 -0.04950 -0.02867 0.78864 0.9708 -0.01946 -0.01014 6 dec 12 0.0514 0.0077 0.0485 0.0095 0.0123 0.01167 0.03620 -0.00217 0.78864 0.9708 0.01055 -0.00186 7 jan 13 -0.0354 0.0173 -0.0364 0.0317 0.0123 0.01167 -0.04870 0.02003 0.78864 0.9708 -0.00929 -0.01381 8 feb 13 -0.0007 0.0687 0.0062 0.0768 0.0123 0.01167 -0.00610 0.06513 0.78864 0.9708 -0.0082 -0.00620 9 mar 13 0.0226 0.0317 0.0208 0.0303 0.0123 0.01167 0.00850 0.01863 0.78864 0.9708 0.00360 0.00194 10 apr 13 0.0270 0.0263 0.0275 0.0188 0.0123 0.01167 0.01520 0.00713 0.78864 0.9708 0.00271 0.00771 11 may 13 0.0635 0.0174 0.0300 0.0069 0.0123 0.01167 0.01770 -0.00477 0.78864 0.9708 0.03724 0.01036 12 jun 13 -0.0088 -0.0328 0.0024 -0.0493 0.0123 0.01167 -0.00990 -0.06097 0.78864 0.9708 -0.01329 0.01472 13 jul 13 0.0064 -0.0611 -0.0005 -0.0433 0.0123 0.01167 -0.01280 -0.05497 0.78864 0.9708 0.00419 -0.01941 14 aug 13 -0.0264 -0.0667 -0.0254 -0.0901 0.0123 0.01167 -0.03770 -0.10177 0.78864 0.9708 -0.00897 0.02043 15 sep 13 0.0264 0.0086 0.0238 0.0289 0.0123 0.01167 0.01150 0.01723 0.78864 0.9708 0.00503 -0.01980 16 oct 13 0.0305 0.0424 0.0216 0.0451 0.0123 0.01167 0.00930 0.03343 0.78864 0.9708 0.01087 -0.00172 17 nov 13 -0.0006 -0.0547 0.0032 -0.0564 0.0123 0.01167 -0.00910 -0.06807 0.78864 0.9708 -0.00572 -0.00029 18 dec 13 0.0249 0.0048 0.0299 0.0042 0.0123 0.01167 0.01760 -0.00747 0.78864 0.9708 -0.00128 0.00038 19 jan 14 -0.0343 0.0219 -0.0337 0.0338 0.0123 0.01167 -0.04600 0.02213 0.78864 0.9708 -0.01032 -0.01125 20 feb 14 0.0231 0.0410 0.0175 0.0456 0.0123 0.01167 0.00520 0.03393 0.78864 0.9708 0.00670 -0.00361 21 mar 14 0.0194 0.0292 0.0074 0.0320 0.0123 0.01167 -0.00490 0.02033 0.78864 0.9708 0.01096 -0.00221 22 apr 14 0.0052 0.0094 0.0121 0.0151 0.0123 0.01167 -0.00020 0.00343 0.78864 0.9708 -0.00694 -0.00560 23 may 14 -0.0059 0.0142 0.0010 0.0111 0.0123 0.01167 -0.01130 -0.00057 0.78864 0.9708 -0.00929 0.00308 24 jun 14 0.0191 -0.0083 0.0050 -0.0031 0.0123 0.01167 -0.00730 -0.01477 0.78864 0.9708 0.01256 -0.00563 25 jul 14 -0.0003 0.0475 -0.0060 0.0431 0.0123 0.01167 -0.01830 0.03143 0.78864 0.9708 0.00183 0.00532 26 aug 14 -0.0123 0.0098 -0.0028 0.0094 0.0123 0.01167 -0.01510 -0.00227 0.78864 0.9708 -0.01269 0.00033 27 sep 14 -0.0026 -0.0131 -0.0106 0.0001 0.0123 0.01167 -0.02290 -0.01157 0.78864 0.9708 0.00316 -0.01354 28 oct 14 0.0122 -0.0201 0.0048 -0.0093 0.0123 0.01167 -0.00750 -0.02097 0.78864 0.9708 0.00581 -0.01141 29 nov 14 -0.0232 0.0165 -0.0185 0.0119 0.0123 0.01167 -0.03080 0.00023 0.78864 0.9708 -0.01121 0.00461 30 dec 14 -0.0406 0.0153 -0.0328 0.0150 0.0123 0.01167 -0.04510 0.00333 0.78864 0.9708 -0.01733 0.00040 31 jan 15 0.0276 0.0170 0.0114 0.0119 0.0123 0.01167 -0.00090 0.00023 0.78864 0.9708 0.01601 0.00511 32 feb 15 0.0209 0.0164 0.0224 0.0304 0.0123 0.01167 0.01010 0.01873 0.78864 0.9708 0.00063 -0.01345 33 mar 15 0.0001 -0.0013 0.0053 0.0125 0.0123 0.01167 -0.00700 0.00083 0.78864 0.9708 -0.00668 -0.01378 34 apr 15 -0.0037 -0.0712 -0.0068 -0.0783 0.0123 0.01167 -0.01910 -0.08997 0.78864 0.9708 -0.00094 0.00447 35 may 15 -0.0380 0.0331 -0.0389 0.0255 0.0123 0.01167 -0.05120 0.01383 0.78864 0.9708 -0.00992 0.00800 36 jun 15 -0.0292 -0.0548 -0.0234 -0.0586 0.0123 0.01167 -0.03570 -0.07027 0.78864 0.9708 -0.01335 0.00175 37 jul 15 0.0135 -0.0217 0.0097 -0.0220 0.0123 0.01167 -0.00260 -0.03367 0.78864 0.9708 0.00325 -0.00068 38 aug 15 -0.0752 -0.0789 -0.0641 -0.0610 0.0123 0.01167 -0.07640 -0.07267 0.78864 0.9708 -0.02725 -0.02002 39 sep 15 0.0389 -0.0557 0.0051 -0.0634 0.0123 0.01167 -0.00720 -0.07507 0.78864 0.9708 0.03228 0.00551 40 oct 15 0.0424 0.0489 0.0276 0.0548 0.0123 0.01167 0.01530 0.04313 0.78864 0.9708 0.01803 -0.00464 41 nov 15 0.0092 -0.0082 0.0039 -0.0020 0.0123 0.01167 -0.00840 -0.01367 0.78864 0.9708 0.00352 -0.00660 42 dec 15 0.0235 0.0376 0.0122 0.0330 0.0123 0.01167 -0.00010 0.02133 0.78864 0.9708 0.01128 0.00522 43 jan 16 -0.0297 -0.0012 -0.0146 0.0048 0.0123 0.01167 -0.02690 -0.00687 0.78864 0.9708 -0.02079 -0.00620 44 feb 16 -0.0138 0.0433 -0.0078 0.0338 0.0123 0.01167 -0.02010 0.02213 0.78864 0.9708 -0.01025 0.01015 45 mar 16 0.0203 0.0315 0.0380 0.0156 0.0123 0.01167 0.02570 0.00393 0.78864 0.9708 -0.01227 0.01601 46 apr 16 -0.0231 0.0099 -0.0261 -0.0014 0.0123 0.01167 -0.03840 -0.01307 0.78864 0.9708 -0.00512 0.01092 47 may 16 -0.0235 -0.0070 -0.0279 -0.0086 0.0123 0.01167 -0.04020 -0.02027 0.78864 0.9708 -0.00410 0.00101 48 jun 16 0.0151 0.0613 0.0173 0.0458 0.0123 0.01167 0.00500 0.03413 0.78864 0.9708 -0.00114 0.01650 49 jul 16 0.0079 0.0471 -0.0005 0.0397 0.0123 0.01167 -0.01280 0.02803 0.78864 0.9708 0.00569 0.00822 50 aug 16 0.0190 0.0283 0.0150 0.0326 0.0123 0.01167 0.00270 0.02093 0.78864 0.9708 0.00457 -0.00369 51 sep 16 -0.0066 -0.0097 -0.0152 -0.0040 0.0123 0.01167 -0.02750 -0.01567 0.78864 0.9708 0.00279 -0.00616 52 oct 16 0.0029 0.0129 0.0120 0.0108 0.0123 0.01167 -0.00030 -0.00087 0.78864 0.9708 -0.00916 0.00207 53 nov 16 -0.0390 -0.0514 -0.0319 -0.0505 0.0123 0.01167 -0.04420 -0.06217 0.78864 0.9708 -0.01644 -0.00272 54 dec 17 0.0095 0.0122 0.0140 0.0287 0.0123 0.01167 0.00170 0.01703 0.78864 0.9708 -0.00414 -0.01600 55 jan 17 0.0177 0.0023 0.0182 -0.0005 0.0123 0.01167 0.00590 -0.01217 0.78864 0.9708 0.00075 0.00244 56 feb 17 0.0131 0.0132 0.0133 0.0175 0.0123 0.01167 0.00100 0.00583 0.78864 0.9708 0.00001 -0.00413 57 mar 17 0.0342 0.0328 0.0273 0.0337 0.0123 0.01167 0.01500 0.02203 0.78864 0.9708 0.01007 -0.00026 58 apr 17 0.0126 0.0233 0.0161 0.0210 0.0123 0.01167 0.00380 0.00933 0.78864 0.9708 -0.00270 0.00257 59 may 17 -0.0130 -0.0085 -0.0012 0.0093 0.0123 0.01167 -0.01350 -0.00237 0.78864 0.9708 -0.01465 -0.01787 60 jun 17 0.0014 0.0115 -0.0012 0.0160 0.0123 0.01167 -0.01350 0.00433 0.78864 0.9708 -0.00025 -0.00437 mean 0.00288 0.00631 0.00188 0.00710 0.0123 0.01167 -0.01042 -0.00457 0.78864 0.9708 -0.00120 -0.00092 source: microsoft excel correspondence to : deandra.vidyanata@ciputra.ac.id received: 5 may 2022 accepted: 20 may 2022 published: 1 june 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 2, 2022, pp. 46 55 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 the effect of perceived quality, brand loyalty, price fairness, satisfaction toward repurchase intention on bakery smes in central java gregorius marcelino agus1, deandra vidyanata2 1,2 management department, ciputra university, surabaya, indonesia abstract the purpose of this study was to determine the effect of perceived quality, brand loyalty, price fairness, customer satisfaction toward repurchase intention on smes cv. mitra pangan in central java. the data analysis tool used is multiple regression with spss software. data were collected using a questionnaire distributed to 200 consumers of cocola sweet bread which is a product of cv. mitra pangan. the results showed that perceived quality, brand loyalty, price fairness, customer satisfaction had a positive effect on repurchase intention keywords perceived quality, brand loyalty, price fairness, customer satisfaction, repurchase intention introduction the bakery industry is one industry that continues to grow because the level of bread consumption in indonesia continues to rise every year (ministry of agriculture, 2020). based on the ministry of agriculture (2020) it is known that the level of consumption of sweet bread in indonesia is always higher than the consumption of white bread. one of the sme companies that produce bread in the central java area is cv. mitra pangan located in kudus, central java. this company was founded in 2000 and sells its bread products to various regions in indonesia, namely kudus, magelang, salatiga, tegal, pekalongan, and various other cities in central java. the company has a production capacity of up to 50,000 packs of bread per day under the cocola brand. cv mitra pangan sells bread at a very affordable price, which is only 1,000 idr per pack. the covid-19 pandemic was the starting point for a significant decline in sales from the company. figure 1 shows the annual sales of sweet bread produced by cv. mitra pangan where in 2015 sales of bread reached around 18 million packs per year, then increased to 19 million packs in 2016. in 2017 sales of sweet bread were relatively the same as in 2016 which was 19 million packs, then in 2018 there was a decline in sales of bread sweet to 17 million packs. the downward trend continued in 2019 where sales of sweet bread reached 15.5 million packs. the peak of the decline occurred in 2020 when the covid-19 pandemic took place where the decline in sales was very significant to 8 million packs. in 2021, when covid-19 was under control, it was not able to increase sales of sweet bread because it turned out that sales in 2021 were only 6.5 million packs. from the graph, it can be concluded that the sales trend of cv. mitra pangan actually started in 2018 and continues until the latest data is in 2021, so it is necessary to do research regarding the reasons consumers do not repurchase the cocola brand bread produced by cv. mitra pangan because when consumers continue to make repeat purchases, the level of sales of cocola brand sweet bread will grow again. mitra pangan actually started in 2018 and continues until the latest data is in 2021, so it is necessary to do research regarding the reasons consumers do not repurchase the cocola brand bread produced by cv. mitra pangan because when consumers continue to make repeat purchases, the level of sales of cocola brand sweet bread will grow again. mitra pangan actually started in 2018 and continues until the latest data is in 2021, so it is necessary to do research regarding the reasons consumers do not repurchase the cocola brand bread produced by cv. mitra pangan because when consumers continue to make repeat purchases, jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.46-55 the level of sales of cocola brand sweet bread will grow again. cv. mitra pangan sells the bread it produces through a sales force who will then market the bread produced. there are many factors that influence product purchase intentions, including perceived quality (ariffin et al, 2016), brand loyalty (aquinia et al, 2020), price fairness (antwi, 2021), and customer satisfaction (suhaily and soelasih, 2017). according to shalehah (2019) perceived quality is emphasizing that perceived quality can be considered as an evaluation of the company's current performance from the consumer's point of view, and that such actions tend to positively influence their attitudes and behavioral intentions in relation to suppliers. consumers who have purchased a product have experience with the product and they can judge the product in various aspects such as durability, reliability and functionality so that they will repurchase the same product if they judge that the quality of a product is good (filieri and lin, 2016). repurchase intention is the activity of consumers in buying back products and they have bought before (suhailiy and soelasih, 2017) brand loyaltyis what makes customers repeatedly buy one particular brand in a certain time (aquinia et al, 2020). brand loyalty certainly affects the repurchase intention of customers consistently with repeat, although there will be situational influences or efforts from marketing that can cause switching behavior. pather, (2017) states that brand loyalty is the core value of a brand which can not only affect the customer's repurchase intention but can also inhibit the change of competitors' products and maintain customer loyalty which can affect the wealth of the business where it will be more cost-effective to sell. to loyal customers before having to influence new customers. consumers want a product that is sold at a fair price (suhaily and soelasih, 2017). a fair price does not mean expensive or cheap, but rather a price that consumers think is in accordance with what they get, in terms of bread products, of course consumers will determine the fair price by comparing the taste of the bread, the ingredients used or certain uniqueness (song et al, 2020). customer satisfaction is a feeling of pleasure or disappointment from a customer after comparing what is obtained with what is expected (kotler and keller, 2016). if someone gets what is more than what he expected, there will be a feeling of satisfaction, on the other hand when the reality is worse than what was expected, someone will feel disappointed and if the customer feels disappointed, there is a possibility that they will not repurchase the same product repurchase intention the repurchase intention is the possibility of using the service provider again in the future (awi and chaipoopirutana, 2017). basrah and samsul (2012) stated that there are several dimensions related to repurchase interest, including: transactional interest, namely consumers who will always repurchase products that have been purchased before. referential interest is the tendency of consumers to recommend products that have been previously purchased to others. preferential interest is consumer behavior to tend to make products that have been previously consumed as the main product of choice. explorative interest is the desire of a consumer to always seek information about the product they are interested perceived quality according to zeithaml (1988) in aquinia et al (2020), perceived quality is an assessment of the global superiority or superiority of a product or service. perceived quality emphasizes that perceived quality can be considered as an evaluation of a company's current performance from a consumer's point of view, and that such actions tend to positively influence their attitudes and behavioral intentions in relation to suppliers. aaker (1973) in ariffin et al (2016) describes several dimensions of perceived quality related to the quality of a product, namely the performance of a product whether it runs according to its operational function, product characteristics, namely secondary elements of a product that differentiate it from other products, suitability with specifications in the sense that the products purchased by consumers are perfect or without defects, reliability related to product performance that runs well within a certain time, durability related to durability or a long expiration date, services related to the quality of services provided by the company. in the case experienced by cv. mitra pangan who sell bread to consumers through sales personnel, the perceived quality that can be measured includes jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.46-55 product characteristics related to taste, durability of bread and its variants, conformity with the contents of sweet bread with written flavor variants, and resilience related to the shelf life of bread. sweets produced. brand loyalty brand loyalty is a behavioral response that is expressed over time by several decisionmaking units, with respect to one or more alternative brands from a set of brands, and is a psychological function of the process (shin et al, 2019). generally, strong and positive brand building leads to a preference for a particular brand among customers, which may lead to brand loyalty over time. durianto et al. (2004) in semuel and putra (2018) explains that brand loyalty can be measured through behavior measures, namely brand loyalty measurement which is carried out by taking into account actual purchasing patterns. price fairness price fairness is the degree to which consumers perceive their payments as fair and just behavior (song et al, 2020). in the case of a bakery, it sells low-involvement products and consumers are very sensitive to price variability, which anticipates the important accountability of price fairness for consumers' revisit intentions (chung, 2017). the price of a product is a cost in the consumer's perspective so that consumers certainly want the optimal cost to get the best product, so producers must be careful in determining product prices so that consumers can feel that the product they get is worth the money they pay to get the product. chung and petrick (2016) propose two dimensions for price fairness, namely distributive price fairness representing price results. meanwhile, procedural price fairness emphasizes the pricing process. this idea of justice comes from the theory of social justice. procedural fairness is concerned with the process used to determine the distribution and allocation of results. theoretically, the concept of distributive justice is rooted in the theory of justice and the concept of procedural justice is based on the theory of procedure by thibaut and walker (lind & tyler, 1988) in chung and petrick (2016). distributive justice includes three principles, namely justice, equality and necessity. on the other hand, the need-based distributive rule proposes that outcomes should be distributed based on what a person needs, contrary to distributive justice. customer satisfaction kotler and armstrong (2017) define customer satisfaction as a feeling of pleasure experienced by customers when the actual results obtained exceed those expected, while customers will be disappointed if the results obtained are worse than expected by the customer. customer satisfaction can be measured as an important price or value that influences and fosters satisfaction (amin et al, 2013) thus the dimension of customer satisfaction in this study is satisfaction with price, where for middle and lower middle class consumers price is a sensitive matter, so they will tend to feel more satisfied when they can get products at low prices. in the upper middle class, the price is not too important. if consumers can get a price below what they imagine, there will be satisfaction because they feel they have benefited from buying the product. satisfaction with product quality, namely if customers can get goods with good quality according to or more than what they expect then they will tend to be more satisfied, but if the quality of the product is poor, for example, it breaks quickly or is not durable, it will cause disappointment for the customer. satisfaction with product variety is related to consumer preferences for sweet bread variants, for example in bread there are brown bread, strawberry bread, vanilla, and others so that when they can get the product they want, satisfaction will arise because their wishes can be fulfilled by the company. effect of perceived quality on repurchase intention the overall quality of the product is matched with customer perceptions that can meet their expectations and if they have a good perception of a product, it will bring customers to keep coming back and loyally consuming the same product (aquinia et al, 2020). perceived quality reflects the characteristics of a product which in terms of sweet bread is related to the number of flavors and quality of bread, which means resistance is related to the shelf life of bread because if the bread expires too quickly, consumers will be more careful in buying the product if they have a good perception. of a product it will bring customers to keep coming back and loyal to consume the same product. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.46-55 filieri and lin research (2016), research by ariffin et al (2016), h1: perceived quality has a positive effect on repurchase intention the effect of brand loyalty on repurchase intention brand loyalty has been expressed as consumtableers' positive feelings about the same brand, consumers purchase the same brand more often than other brands and buy and use the same brand for a long time (chinomona and maziriri, 2017). companies with loyal brand customers will get a lot of market advantages because they will tend to recommend the brand they consume and when prices rise they will still buy the product so they will make repeat purchases of the same product. h2: brand loyalty has a positive effect on repurchase intention effect of price fairness on repurchase intention if consumers feel that the money they spend to buy a product or service is equivalent, then there is a tendency for consumers to feel satisfied, consumers are actually willing to spend big money on the condition that the product or service they get is considered worthy of what they pay (song et al, 2020). consumers have the perception that when they buy a product or service at a high price, they will get a good quality product or service, on the contrary when the price of the product is cheap they will have the perception that the quality of the product is poor up to standard (suhaily and soelasih, 2017). if consumers have a perception that the product or service they buy has a fair or appropriate price, they are more likely to make repeat purchases in the future. h3: price fairness has a positive effect on repurchase intention the influence of customer satisfaction on repurchase intention customer satisfaction is a very important factor in determining repurchase interest in a product, because if consumers are not satisfied with the product or service provided, there is a tendency for them to look for other products that they think are able to provide better satisfaction (antwi, 2021) so that they those who are dissatisfied or disappointed with the product or service may not make repeat purchases. conversely, when consumers get what they expect, there will be satisfaction that allows them to repurchase the product or service because it is able to provide what they expect. several previous studies such as research by awi and chaipopopirutana (2014), h4: customer satisfaction has a positive effect on repurchase intention methods the population of this study were all sweet bread customers of cv. mitra pangan in central java. the total population in this study is not known for certain because the bread products sold are distributed to various regions in central java, both to traditional markets, grocery stores and so on so that the number of consumers is unknown. according to hair et al (2014) that the sample size is at least ten times the number of indicators used. this study uses 20 indicators so that the number of samples needed is at least 200. sampling is done by purposive sampling, the number of samples in this study is 200 respondents who have at least bought cv products once. mitra pangan is cocola brand sweet bread. in this study, data were obtained through electronic questionnaires given to research respondents with a google form link. questionnaires will be distributed between april and may 2022. the measurement scale used is ordinal scale data with a likert scale to find out respondents' answers. the likert scale value used is five answers, ie a value of 1 is the answer strongly disagrees to a value of 5 is the answer strongly agrees. multiple regression analysis was used to test the hypothesis, the validity test procedure was carried out by pearson correlation and reliability was carried out by testing cronbach's alpha. classical assumption testing is done by testing normality, multicollinearity and heteroscedasticity. result and discussion characteristics of respondents the characteristics of research respondents, has the majority of respondents are male as many as 109 people or 54.5% of respondents, this shows that most of the jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.46-55 consumers of cocola bread that are sampled are male. the age of the majority of respondents is 41-50 years as many as 60 people or 30% of respondents, this shows that the majority of respondents are still in their productive age. the last education of the majority of respondents is sd as many as 64 people or 32% of respondents, this shows the majority of respondents have a low level of education. the majority of respondents' monthly income is in the range of less than 2 million rupiah per month as many as 86 people or 43% of respondents, this shows that the majority of respondents have incomes in the city minimum wage range in the central java area in 2022, which is between 1.8 million to 2, 3 million per month. the occupation of the majority of respondents is labor as many as 46 people or 23% of respondents. the results of this respondent's characteristics are also quite in accordance with the consumer profile of cocola brand sweet bread which has a low price of only rp. 1000 per pack, cocola sweet bread is bought by many lower class people such as laborers, farmers and artisans who are mostly male. cocola brand sweet bread is sometimes also a snack in offices and factories that are sold in the canteen so that quite a lot of private employees also consume this sweet bread. when viewed from the education of the majority of respondents are elementary school, this is quite in accordance with the type of work of the respondent because the work of laborers, farmers and craftsmen does not require too high an education. the results of this respondent's characteristics are also quite in accordance with the consumer profile of cocola brand sweet bread which has a low price of only rp. 1000 per pack, cocola sweet bread is bought by many lower class people such as laborers, farmers and artisans who are mostly male. cocola brand sweet bread is sometimes also a snack in offices and factories that are sold in the canteen so that quite a lot of private employees also consume this sweet bread. when viewed from the education of the majority of respondents are elementary school, this is quite in accordance with the type of work of the respondent because the work of laborers, farmers and craftsmen does not require too high an education. the results of this respondent's characteristics are also quite in accordance with the consumer profile of cocola brand sweet bread which has a low price of only rp. 1000 per pack, cocola sweet bread is bought by many lower class people such as laborers, farmers and artisans who are mostly male. cocola brand sweet bread is sometimes also a snack in offices and factories that are sold in the canteen so that quite a lot of private employees also consume this sweet bread. when viewed from the education of the majority of respondents are elementary school, this is quite in accordance with the type of work of the respondent because the work of laborers, farmers and craftsmen does not require too high an education. cocola sweet bread is bought by many lower class people such as laborers, farmers and artisans who are mostly male. cocola brand sweet bread is sometimes also a snack in offices and factories that are sold in the canteen so that quite a lot of private employees also consume this sweet bread. when viewed from the education of the majority of respondents are elementary school, this is quite in accordance with the type of work of the respondent because the work of laborers, farmers and craftsmen does not require too high an education. cocola sweet bread is bought by many lower class people such as laborers, farmers and artisans who are mostly male. cocola brand sweet bread is sometimes also a snack in offices and factories that are sold in the canteen so that quite a lot of private employees also consume this sweet bread. when viewed from the education of the majority of respondents are elementary school, this is quite in accordance with the type of work of the respondent because the work of laborers, farmers and craftsmen does not require too high an education. validity and reliability test table 1 presents the results of validity testing with pearson's correlation, from the results of tests carried out all the questionnaire items totaling 20 items have met the valid criteria because they have an r-count > r-table and have a significant value on the p-value. table 2 presents the reliability testing of each construct used, the test results have also shown a reliable value because it has cronbach's alpha > 0.7. correlation coefficient table 3 shows the value of the correlation coefficient of the regression results (adjusted r2) of 0.493 or 49.3% of the independent variables perceived quality, brand loyalty, price fairness, and customer satisfaction were able to explain the variation in the value of the dependent variable repurchase intention of 49.3% while the rest were explained by other variables outside the research model. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.46-55 hypothesis testing results table 4 and figure 2 shows the results of the t-test which are the basis for accepting or rejecting the hypothesis. the regression coefficient value of perceived quality is 0.135 so perceived quality has a positive effect on repurchase intention, the p-value of 0.020 is less than alpha 5% (sig < 0.05) so it can be concluded that perceived quality has a significant positive effect on repurchase intention and h1 is acceptable. regression coefficient value of brand loyalty is 0.513 so that perceived quality has a positive effect on repurchase intention, the pvalue of 0.000 is less than alpha 5% (sig < 0.05) so it can be concluded that brand loyalty has a significant positive effect on repurchase intention and h2 is acceptable. price fairness regression coefficient value is 0.134 so that price fairness has a positive effect on repurchase intention, the pvalue is 0.020 less than alpha 5% (sig < 0.05) so it can be concluded that price fairness has a significant positive effect on repurchase intention and h3 is acceptable. the regression coefficient value of customer satisfaction is 0.161 so that customer satisfaction has a positive effect on repurchase intention, the p-value of 0.003 is less than alpha 5% (sig < 0.05) so that it can be concluded that customer satisfaction has a significant positive effect on repurchase intention and h4 are acceptable. discussion from the results of the t-test, it is known that perceived quality has a significant positive effect on repurchase intention so that the greater the perceived quality, the greater the repurchase intention of consumers. this is because in food products such as quality bread is important because it will affect the health of consumers so that the quality of bread is one of the main concerns of consumers when buying bread (song et al, 2020). the overall quality of the product which is related to taste, durability and cleanliness is matched with customer perceptions that can meet their expectations and if they have a good perception of a product it will bring customers to keep coming back and loyally consuming the same product (aquinia et al, 2020). according to filieri and lin (2016) perceived product quality also influences consumers' repurchase intentions because that consumers who have purchased, and subsequently experienced, their product brand can assess the level of quality in terms of durability, taste, reliability, and flavor variance. based on previous usage experience. if cocola sweet bread is considered high quality, then consumers buy back the sweet bread because of the pleasant experience when consuming cocola sweet bread. from the results of the t-test, it is known that brand loyalty has a significant positive effect on repurchase intention so that the greater the brand loyalty, the greater the repurchase intention from consumers. companies with loyal brand customers will get a lot of market advantages because they will tend to recommend the brand they consume and when prices rise they will still buy the product so they will make repeat purchases of the same product. if cv. mitra pangan are able to increase brand loyalty to cocola sweet bread, the company will be able to maintain its market share in the cheap bread segment because consumers will be reluctant to switch to other brands of cheap bread and will continue to repurchase cocola brand sweet bread. brand loyalty is the attachment that a customer has to a brand, and in response to a positively biased motive, evaluative, and/or behavioral tendency toward a branded alternative or choice, labeled or judged by an individual in his capacity as a user, choice maker, and/or agent. purchase. (chinomona and maziriri, 2017). if a product succeeds in creating brand loyalty, then the product will have the potential to be repurchased by its consumers because consumers have become loyal to the product, so even though there are other similar products, consumers will still choose the initial product they trust. from the results of the t-test, it is known that price fairness has a significant positive effect on repurchase intention so that the better the customer's perception of price fairness, the greater the repurchase intention of consumers. consumers tend to build positive attitudes and exhibit positive behavior at reasonable prices for products and services. if consumers have a perception that the product or service they buy has a fair or appropriate price, they are more likely to make repeat purchases in the future (antwi, 2021). according to de toni et al (2017) when customers pay a fair price for the product jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.46-55 benefits received, the perceived value of a food tends to increase. as a result, the perceived fairness of the price of the food or sweetbread with respect to monetary sacrifice and the perception of healthy and quality consumption directly affect the perceived value of this product. consumers who feel the benefits and value when consuming cocola bread will repurchase the same product because they feel pleasure and satisfaction when enjoying cocola sweet bread. from the results of the t-test, it is known that customer satisfaction has a significant positive effect on repurchase intention so that the greater the customer satisfaction, the greater the repurchase intention from consumers. customer satisfaction is a very important factor in determining repurchase interest in a product because if consumers are not satisfied with the product or service provided, there is a tendency for them to look for other products that they think are able to provide better satisfaction so that those who are dissatisfied or disappointed with the product are satisfied. products or services may not make repeat purchases (antwi, 2021). conversely, when consumers get what they expect, there will be satisfaction that allows them to repurchase the product or service because it is able to provide what they expect. conclusion based on the results of hypothesis testing, it is known that all independent variables (perceived quality, brand loyalty, price fairness, and customer satisfaction) have a positive effect on repurchase intention. the company has a competitive advantage in terms of low product prices so that it is very affordable for the indonesian people. cv. mitra pangan needs to continue to improve the quality of its bread as a whole, for example by using quality ingredients, packaging according to product safety standards and being able to ensure that product quality does not decline to the hands of consumers. expired, it is better if the bread is not sold to consumers so that consumers always get a quality product. the limitation of this study is the use of online questionnaires where respondents may not fully understand the sentences used due to various educational and occupational backgrounds. this study combines respondents in various cities in central java, while the decline in sales of sweet bread is not known in detail in which city, so different results can be obtained when respondents are divided by groups in certain cities for later comparison. future research may be able to use cv. mitra pangan as the object of research and can differentiate research samples based on cities in central java so that it can be seen in which city sales of cocola bread have decreased and the causes can also be identified. references amin, muslim & yahya, zatilaziya & ismayatim, wan & nasharuddin, siti & kassim, emilia. (2013). service quality dimension and customer satisfaction: an empirical study in the malaysian hotel industry. services marketing quarterly, 34, 115–125. antwi, s. (2021). “i just like this e-retailer”: understanding online consumers repurchase intention from relationship quality perspective. journal of retailing and consumer services, 61, 1-6. aquinia, a, soliha, e, liana, l dan wahyudi, d. (2020). the role of perceived quality and brand loyalty influencing repurchase intention. advances in economics, business and management research, 169, 381-384. ariffin, s, yusof, m. d, putit, l, shah, m. i. a, (2016). factors influencing perceived quality and repurchase intention towards green products, procedia economics and finance, 37, 391-396. awi, y. l dan chaipoopirutana, s. 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(2017). brand equity as a predictor of repurchase intention of male branded cosmetic products in south africa. business & social sciences journal, 2(1), 1-23. shalehah, a., trisno, i. l. o., moslehpour, m., & cor, p. k. l. (2019). the effect of korean beauty product characteristics on brand loyalty and customer repurchase intention in indonesia. in 2019 16th international conference on service systems and service management (icsssm) (pp. 1-5). shin, s. k. s., amenuvor, f. e., basilisco, r., & owusu-antwi, k. (2019). brand trust and brand loyalty: a moderation and mediation perspective. current journal of applied science and technology, 38(4), 1-17. song, m.-k., moon, j.-h., & lee, w.-s. (2020). determinants of bakery revisit intention: case of paris baguette. asia-pacific journal of business, 11(1), 1-16. suhaily, l., soelasih, y. (2017). what effects repurchase intention of online shopping. international business research; 10 (12), 113122. young chung, jin and petrick, james f. (2016). a conceptual framework of perceived price fairness: an attributional approach. travel and tourism research association: advancing tourism research globally. vol 2. list of tables table 1. validity test variable indikator validity pearson correlation sig (2-tailed) conclusion percived quality (x1) pq1 0.698 0.000 valid pq2 0.757 0.000 valid pq3 0.760 0.000 valid pq4 0.751 0.000 valid brand loyalty (x2) bl1 0.851 0.000 valid bl2 0.812 0.000 valid bl3 0.819 0.000 valid bl4 0.773 0.000 valid price fairness (x3) pf1 0.799 0.000 valid jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.46-55 pf2 0.799 0.000 valid pf3 0.818 0.000 valid pf4 0.524 0.000 valid customer satisfaction (x4) cs1 0.874 0.000 valid cs2 0.826 0.000 valid cs3 0.870 0.000 valid cs4 0.883 0.000 valid repurchase intention (y) rpi1 0.845 0.000 valid rpi2 0.827 0.000 valid rpi3 0.820 0.000 valid rpi4 0.814 0.000 valid table 2. reliability test variable cronbach alpha (> 0.7) conclusion perceived quality (x1) 0.726 reliable brand loyalty (x2) 0.851 reliable price fairness (x3) 0.711 reliable customer satisfaction (x4) 0.888 reliable repurchase intention (y) 0.847 reliable table 3. coefficient determination model summary model r r square adjusted r square std. error of the estimate 1 .709a .503 .493 .50087 a. predictors: (constant), cs, pq, bl, pf table 4. t-test jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.46-55 coefficientsa model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) .204 .274 .747 .456 perceived quality (pq) .135 .057 .134 2.351 .020 brand loyalty (bl) .513 .066 .476 7.729 .000 price fairness (pf) .134 .061 .143 2.178 .031 customer satisfaction (cs) .160 .054 .187 2.962 .003 a. dependent variable: repurchase intention (rpi) list of figure figure 1. cv.mitra pangan sales volume figure 2. result of testing jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.46-55 jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 4, 2022, pp. 21-33 published online ... in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : 122012101037@std.trisakti.ac.id received: 1 aug 2022 accepted: 12 nov 2022 published: 1 dec 2022 introduction the new market realities are a challenge for retailers as they have to compete to provide a consistent shopping experience to sophisticated and knowledgeable consumers across multiple channels. the rise of marketing channels in a multi-channel environment is causing many retailers to have started the process of migrating monochannel to multi-channel with the ultimate goal of becoming omni-channel (stojković et al., 2021). the recent merger of physical stores and e-commerce introduced an omni-channel strategy in the retail industry. as part of an omni-channel strategy, retailers are integrating digital and physical channels to provide a combination of offline and online information, enabling consumers to purchase products through traditional or online channels (shao, 2021). therefore, omni-channel retailers need to efficiently manage multiple direct sales channels as well as reverse channels to ensure the success and customer satisfaction of their logistics operations. some work is considering the after-sales phase in relation to the previous literature on multi-channel or omni-channel customer journeys (de borba et al., 2021). in addition, omni-channel retailers work to ensure full coordination and synergy across all channels (hamouda, 2019). customer satisfaction, sales, and satisfaction are also all benefits of a multi-channel approach. the link between total customer satisfaction and loyalty is further strengthened by the use of several channels (karim & qi, 2021). the impact of different combinations of channel integration on consumer behavior is a recurring topic of research both in practice and across academia. in particular, both stakeholders (i.e., practitioners and academics) recognize the importance of expanding business opportunities through advanced technologies that empower today's citizens . (prentice et al., 2019). since customers feel more empowered, they have more control over their buying based on their preferences, how and when they want to shop, and where they want their purchases delivered. (zhang et al., 2018). perceived customer empowerment (pce) plays an important role in increasing customer the impact of omnichannel retail on customer patronage intentions: the role of consumer empowerment, service failure, and customer satisfaction abstract the effects of omnichannel integration on customers are examined in this study along with the mediating roles that customer empowerment, customer satisfaction, and service failure perform. omni-channel retail enables order processing convergence through continuous information exchange, general operations, logistics, and operations with inventory across all channels. to gather information, 160 young indonesian consumers who have utilized omnichannel-based applications will be questioned. in order to verify validity, reliability, and hypothesis testing, the data was processed using smart pls. the findings show that omnichannel integration increases consumer empowerment and satisfaction, which has a beneficial impact on purchasing intentions. the customer's intents are positively impacted by the service's failure as well. this study deepens our understanding of how multichannel shopping boosts purchase and patronage intentions by maintaining services across online and physical channels. in addition to the conclusion that customers prefer omnichannel, research on retail literature, customer experience, and e-commerce is demonstrating the ways in which internal consumer states influence consumers' buy intentions. keywords omnichannel retail; consumer patronage intention; consumer empowerment ; consumer satisfaction; service failure ; online-offline channel integration jurnal akuntansi, manajemen dan ekonomi , vol. 24 no. 4, 2022, pp. 21-33 satisfaction in retail transactions where awareness of such empowerment is the key to success. therefore, perceived customer empowerment is the transfer of power and control to the consumer, motivating the consumer to participate in the trade and succeed, and achieve a much better sense of accomplishment than expected (castillo & george, 2018). this study adds to the body of knowledge in three ways by aiming to pinpoint the variables that affect consumer patronage intentions (cpi) in the context of omni-channel retail. this study is the first to demonstrate the mediating function of observed satisfaction and perceived consumer empowerment in omnichannel shopping. the study's second result is that service failure could serve as a moderating factor for both the cpi and the integration of online-offline channels (oci). third, this study offers recommendations on how customer satisfaction and perceived consumer empowerment effect online-offline channel integration and cpi. literature review and hypothesis formulation omnichannel retailing omni-channel retail features continuous information sharing, general operations, logistics, and operations with inventory across all channels, enabling order processing convergence. this allows retailers to stay competitive in the face of increasing customer demand for a seamless and integrated shopping experience (z. w. y. lee et al., 2019) .however, from a consumer's point of view, an important feature of the omni-channel retail approach is that consumers can use the channel they are most comfortable with during the consumer journey to receive relevant information that best suits their needs. is. consumers can choose the channel, time and method of retail interaction. the retail technology used in-stores needs to improve the customer experience (hsia et al., 2020). the intelligent and complex integration of these channels provides customers with a seamless experience where different channels interact and are used simultaneously. the omni channel experience provides a smooth and intuitive transition between channels at every touchpoint in your customer journey, addressing customer preferences, needs, and behavior (ameen et al., 2020). online channels encounter difficulties with emotional and sensory information, but offline channels frequently experience concerns with accessibility, categorization, pricing, and time costs. organizations have concentrated on merging online and physical channels with multichannel shopping because merchants may make up for the inherent shortcomings of each option and respond to the variety of consumer preferences across channels. (bell et al., 2018). in the development of omnichannel retailing in indonesia, omni-channel is not new in indonesia. in fact, many domestic brands have omni-channel marketing strategies. these brands are proving that omni-channel marketing can improve performance. several brands have implemented an omnichannel marketing strategy, namely bukalapak, which has implemented an omni-channel strategy to allow online and offline diversification across various product lines and programs. in addition, tokopedia as one of the unicorn startups in indonesia, also uses this strategy to make the shopping experience as smooth as possible. this is supported by the large number of tokopedia users throughout indonesia, with around 250 million products, 7.2 million sellers and 35 digital products. bank bni has also used this strategy since 2018 for their banking services. the omnichannel technology they developed started from the service oriented architecture (soa) (asia quest indonesia, 2022). consumer empowerment theory according to the empowerment theory, people desire to be in control of the choices that affect their social, professional, and private lives. the freedom and power that customers feel while making decisions is referred to as consumer empowerment in marketing. (mishra et al., 2022). consumers may develop the confidence to buy more wisely by giving them more say in the decision-making process when it comes to their purchases. (flavián et al., 2019). from the perspective of consumer sovereignty, the degree of empowerment is explained by the skills, knowledge, and motives or actions of consumers to protect the interests of consumers. (nam, 2019). this poses a challenge for marketing professionals, as changes in consumer perceptions have a significant impact on the relationship between consumers and service jurnal akuntansi, manajemen dan ekonomi , vol. 24 no. 4, 2022, pp. 21-33 providers. different meanings and ideologies increase the complexity of the concept and are therefore not conducive to practical use. for those who want to make empowerment a strategic tool, it is important to have a solid conceptual foundation (buehler & maas, 2018). on the integration of online and offline channels and customer patronage intention, perceived consumer empowerment has a mediating effect. channel integration using technology enhances the customer experience throughout the purchasing process and enables the customer to manage the experience (flavián et al., 2019). in addition, the effect of these online reviews / complaints / suggestions is stimulated through the way time miles are placed and shows the confidence that customers have before discovering the product offline (orús et al., 2019). as they exercise control over information, options, and decisions, consumers feel empowered by channel integration. in the context of omnichannel distribution, customers may compare and evaluate items online, accumulating as much data as they can before the shop closes. above all, they have autonomy in choosing distribution mechanisms and payment methods (thaichon et al., 2020) . customer empowerment's impact on online channel patronage intentions has been identified, however it is no longer there for offline channel patronage intentions. (shakir goraya et al., 2022) . customers are more likely to identify a retailer's advantages and exhibit a greater willingness to continue with it as a result of channel integration's advantages for connection, engagement, collaboration, and decision-making. the following hypotheses might be put forth in order to experimentally evaluate the mediating influence of perceived buyer empowerment on the link between the integration of online and physical channels and purchasing intentions. h1. through the mediating effect of perceived consumer empowerment, integration of online and offline channels positively influences cpi. mediating the effects of perceived customer satisfaction on the integration of online and physical channels and consumer purchase intentions. authorized consumers are known to have greater control over the buying process and greater consumer control to better align their individual needs with market offerings (zhang et al., 2018). through webrooming, oci makes it easier for customers to compare products before making a purchase. webrooming, as opposed to showrooming, has a better impact on the customer's sense of entrance, perceived cost, and sense of pride (i.e. searching offline when shopping online) (viejo-fernández et al., 2019). webrooming, i.e. viewing products online at the same time as buying them offline, offers consumers self-assurance and a smart shopper feeling, which has an impact on consumer satisfaction. channel integration is undoubtedly related to client experience, enjoyment and buying behavior (mishra et al., 2022). both high quality reviews and feelings will influence consumers' affective judgments such as perceived satisfaction. however, perceived customer satisfaction (psa) did not appear to affect sponsorship intentions. it has received much research, particularly in channel integration. therefore, this study makes the following assumptions in an effort to close the gap: h2. through the mediating effect of perceived satisfaction, online-offline channel integration has a positive impact on cpi. service failure's mediation effects on online-offline integration and customer purchase intentions given that satisfaction is more important than service quality in influencing purchase intention, high satisfaction is expected to motivate repeaters. in addition, service failure (sfa) to handle dissatisfied customers results in negative reviews and loss of existing and potential customers (jeon & kim, 2016). if a service provider goes down, customers will reevaluate the quality and assurance of their service, and they are more likely to change their initial choice, especially when the level of competition is high. online service failure may have a negative effect on offline stores, as the spillover effect in brick and click service mode and previously jurnal akuntansi, manajemen dan ekonomi , vol. 24 no. 4, 2022, pp. 21-33 figure 1 conceptual framework has not been well understood by the previous literature despite a large number of studies confirming the positive form of click service overflow effect (wang & zhang, 2018). as online service failures worsen, the customer's tolerance zone narrows, increasing the likelihood of customer dissatisfaction. online customer satisfaction is vulnerable to online service failure because the internet reduces information asymmetry and has more alternatives and lowers the cost of switching to consumers. look for that service elsewhere (damangir et al., 2018). the third hypothesis is thus proposed as follows: h3. through the role of perceived service failure, online-offline channel integration has a negative influence on cpi. the association between consumer purchase intentions and perceived customer satisfaction and perceived consumer empowerment as mediators of online-offline channel integration. since it gives them more information and options, channel integration helps both merchants and customers more. by giving customers information and control over their choices, empowerment lowers their level of apprehension and perplexity. to give their consumers more control, retailers frequently combine offline and online channels, which increases customer happiness. (reid et al., 2016). the extent to which customers feel empowered, nevertheless, relies on their capacity to recognize relevant information, assess competing offerings, and fulfill their requirements with the least amount of effort. (mishra et al., 2022). results from consumer referrals come from empowering customers, with pleasure acting as the primary mediator. (zhang et al., 2018). these data serve as the foundation for this study, which aims to evaluate the sequential mediating effects of perceived consumer empowerment and perceived pleasure on the link between channel integration and customer purchase intentions. the following hypothesis is suggested : h4. online-offline channel integration and cpi are related through perceptions of perceived customer empowerment and satisfaction, respectively. jurnal akuntansi, manajemen dan ekonomi , vol. 24 no. 4, 2022, pp. 21-33 consumer patronage intent and the integration of online and offline channels. the majority of buyers often make purchases using both physical and digital (i.e. tangible) channels (sopadjieva et al., 2017). based on consumer shopping patterns across integrated channels, existing literature looks at the impact of online and offline channel integration from different perspectives (zhang et al., 2018). the perceived risk by consumers of the unavailability of a product is minimized through self-service information portals provided in offline stores, which offer the possibility for consumers to use online and offline channels (shakir goraya et al., 2022). due to technological advances and improved customer experience, physical channel integration is increasing more than expected (li et al., 2018). oci must nevertheless incorporate a variety of marketing mix, information access, order fulfillment, transaction information, and customer service components (w. lee, 2020). based upon this discussion, the following hypothesis is proposed: h5. online–offline channel integration positively affects cpi research methods the method used in this study using a questionnaire. the data is taken from consumers who come from the country of indonesia. the purpose of this study focuses on young consumers aged 20 to 25 years, namely those born between the millennial generation (1981-1994) to generation z (19952010) who are familiar and proficient in the digital world and have a lot of experience in omnichannel shopping (siti nur aeni, 2022). sample and procedure to find out how the effects of online-offline channel integration, consumer empowerment, customer satisfaction, and service failure on customer patronage intention, an online survey was conducted on customers who have used an omnichannel retail-based application. the survey was distributed through google forms and disseminated using social media channels. the criteria for participants are the population between the ages of 15 years and more than 50 years and over. in addition to age, gender and education are also considered to be representative of decision makers in this study and do not attribute the results to any particular group. participants were selected randomly and with different educational backgrounds and ages. correspondents are also given the freedom to choose when they complete the survey and how much time they devote to filling out the questionnaire. prior to the survey, the scales and items were tested in consultation with industry and marketing experts. the survey was refined again before being sent to participants. in the questionnaire section there is an introductory page that briefly explains the topics discussed in this study. in this study, participants were asked to answer whether they had ever used an omnichannel retail-based application or not. if not, they can complete the survey by pressing the submit button and if the participant has used it, then the participant can continue the questionnaire. after distributing the questionnaires, a total of 160 responses were obtained by removing 2 incomplete answers. among 160 responses, around 31.6% use tokopedia and shopee as their omnichannel retailing-based applications. about 53.8% of the 160 responses were male and 46.2% were female. then from the responses obtained, 63.9% are people aged 20 to 25 years and 77.2% are bachelor's degrees. measures in the measurement of this study using a five-point linear scale with a value of 1 representing strongly disagree and a value of 5 being strongly agree except for the control variable. the scale refers to a measure of how a person agrees or disagrees with the statement on each item. from previous studies, we have selected configuration items and scales for measurement. for example, the online-offline channel integration structure has four elements adapted from (li et al., 2018). adjusted perceptual satisfaction (3 item scale) and cpi item (3 item scale) (zhang et al., 2019). the next three items are customized service failures from (jeon & kim, 2016) . the five-point scale adopted to measure consumer empowerment comes from (zhang et al., 2018). results and discussion validity test the definition of instrument validity in the context of quantitative research has been proposed by research method experts as a measure of what they want to measure. this jurnal akuntansi, manajemen dan ekonomi , vol. 24 no. 4, 2022, pp. 21-33 means that the validity of a study depends on how much the researcher wants to measure. specifically, the validity of a study is based on evidence, objectivity, truth, reasoning, reasons, facts, and opinions based on numerical data (pallant, 2020). the validity test for this study was carried out using the convergence validity criteria. this is done by showing that the statement for each latent variable can be understood by the respondent according to the research intent (ghozali, 2018). the loading factor value shows the correlation between the indicator and the structure. an indicator with a low loading value indicates that the indicator does not work on the measurement model. the expected loading factor value in this study is > 0,7. reliability test the main purpose of testing the reliability of research equipment is to do this. measuring the consistency of the measuring tools used by quantitative researchers. in this case, the researcher wants to see if the measurement is correct at different times in the same sample. in other words, a questionnaire is considered reliable if the instrument can provide consistent assessment results for each measurement. therefore, the measuring instrument (item / question item) provides consistent measurement results at various time points (budiastuti & bandur, 2018). cronbach's alpha reliability factor is typically between 0 and 1. in reality, there is no lower bound on the coefficient. the closer the cronbach's alpha factor is to 1.0, the better the internal consistency of the items in the scale (gliem & gliem, 2003). the most appropriate internal consistency test used is cronbach's alpha also known as alpha coefficient. the range of alpha coefficient values starts from 0 (no reliability) and 1 (perfect reliability). the alpha coefficient ranges from 0 (no reliability) and 1 (perfect reliability). cronbach's alpha is acceptable if > 0,6 (ghozali, 2018). processing results of validity, reliability and descriptive statistics testing in testing the validity and reliability for the online-offline channel integration variable (oci), which consists of 4 measurement indicators, the variable values are valid and reliable. this is indicated by the loading factor> 0.7, namely the variable is valid and the cronbach alpha value is 0.780 > 0.6, which means that all items in the variable are reliable. based on the results of respondents' responses to the oci variable, the results obtained are good responses, namely the mean value of 4.1725, which is greater than the standard deviation of 0.72044. this means that the values on this variable indicator are increasingly similar or accurate to the mean. the standard deviation that is close to zero means that the answers from the respondents are close to homogen and do not experience large deviations. furthermore, for testing the validity and reliability of the consumer empowerment (pce) variable which includes 3 indicators, it produces a valid and reliable variable value. this is indicated by the load factor value> 0.7, which is a valid variable, and the cronbach alpha value of 0.653> 0.6 which means that all elements of the variable are reliable. based on respondents' responses to the pce variable, a good answer was obtained, namely the mean of 4.1013, which was greater than the standard deviation of 0.64036. this means that the indicator value of this variable is similar to or more precise to the mean. the standard deviation that is close to zero means that the answers from the respondents are close to homogeneous and do not experience large deviations. another validity and reliability test for the perceived satisfaction (psa) variable, which consists of 3 measurement indicators, produces valid and reliable variable values. this is indicated by the loading factor > 0.7, namely the variable is valid and the cronbach alpha value is 0.778 > 0.6, which means that all items in the variable are reliable. based on the results of respondents' responses to the psa variable, the results obtained are good responses, namely the mean value of 4.2595, which is greater than the standard deviation of 0.56008. this means that the values on this variable indicator are increasingly similar or accurate to the mean. the standard deviation that is close to zero means that the answers from the respondents are close to homogeneous and do not experience large deviations. furthermore, for testing the validity and reliability of the service failure (sfa) variable which includes 4 indicators, it produces a valid and reliable variable value. this is indicated by the load factor value> 0.7, which is a valid variable, and the cronbach alpha value of 0.814> 0.6 which means that all elements of the variable are reliable. based on the respondents' responses to the sfa variable, a good answer was obtained, namely the mean of 4.5316, which was greater than the standard deviation of 0.53443. this means jurnal akuntansi, manajemen dan ekonomi , vol. 24 no. 4, 2022, pp. 21-33 that the indicator value of this variable is similar to or more precise to the mean. the standard deviation that is close to zero means that the answers from the respondents are close to homogeneous and do not experience large deviations. the last test of validity and reliability is for the consumer patronage intention (cpi) variable, which consists of 3 measurement indicators resulting in valid and reliable variable values. this is indicated by the factor loading> 0.7, which means that the variable is valid and the cronbach alpha value of 0.809 > 0.6, which means that all items on the variable are reliable. based on the results of respondents' responses to the cpi variable, the results obtained are good responses, namely the mean value of 4.1582, which is greater than the standard deviation of 0.65239. this means that the values on this variable indicator are increasingly similar or accurate to the mean. the standard deviation that is close to zero means that the answers from the respondents are close to homogeneous and do not experience large deviations. jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 4, 2022, pp. 21-33 published online ... in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : 122012101037@std.trisakti.ac.id received: 1 aug 2022 accepted: 12 nov 2022 published: 1 dec 2022 1 0.780 4,1725 0,72044 1.1 oci1 situs web mengiklankan toko fisik dengan memberikan alamat dan informasi kontak toko fisik 0.743 4,1139 0,98378 1.2 oci2 situs web memungkinkan pelanggan untuk mencari produk yang tersedia di toko fisik 0.733 4,2342 0,90411 1.3 oci3 situs web menyoroti promosi di dalam toko yang sedang berlangsung di toko fisik 0.844 4,0886 0,89143 1.4 oci4 pusat layanan pelanggan di dalam toko menerima pengembalian, perbaikan, atau penukaran produk yang dibeli secara online 0.767 4,2532 0,93711 2 0.653 4,1013 0,64036 2.1 pce1 berbicara dengan penjual dan/atau mengunjungi situs web retailer membantu saya membandingkan harga dan kualitas barang di toko dengan pesaing lain 0.745 4,2848 0,76626 2.2 pce2 melalui berbagai media sosial, retailer memberi saya kesempatan untuk belajar tentang pengalaman/pilihan konsumen lain 0.825 4,1962 0,76098 2.3 pce3 melalui email, sms, promosi di dalam toko, dan sistem komunikasi pos, retailer memberikan informasi yang relevan tentang barang, merek, dan penggunaan 0.729 3,8228 0,96775 3 0.778 4,2595 0,56008 3.1 psa1 secara umum, saya senang dengan pengalaman berbelanja menggunakan salah satu aplikasi berbasis omnichannel retailing 0.836 4,4873 0,60505 3.2 psa2 secara umum, saya senang dengan kualitas layanan yang diberikan retailer didalam aplikasi yang saya gunakan 0.843 4,2532 0,66712 3.3 psa3 secara umum, pilihan saya untuk membeli dari pengecer ini adalah pilihan yang bijaksana 0.817 4,038 0,7477 4 0.814 4,5316 0,53443 4.1 sfa1 lambat atau tidak tersedianya layanan chat dapat mempengaruhi service evaluation 0.708 4,4494 0,75332 4.2 sfa2 cacat produk atau layanan dapat mempengaruhi service evaluation 0.820 4,6329 0,6010 4.3 sfa3 informasi yang buruk atau salah dapat mempengaruhi service evaluation 0.831 4,6139 0,60491 4.4 sfa4 kesalahan pengemasan dapat mempengaruhi service evaluation 0.833 4,4304 0,72593 5 0.809 4,1582 0,65239 5.1 cpi1 saya kemungkinan akan membeli produk dari retailer ini 0.880 4,1835 0,71239 5.2 cpi2 saya cenderung merekomendasikan retailer ini kepada teman-teman saya 0.828 3,9684 0,85526 5.3 cpin3 saya kemungkinan akan melakukan pembelian lagi dari retailer ini jika saya membutuhkan produk yang akan saya beli 0.843 4,3228 0,7338 no variabel online-offiline channel integration outer loading cronbach alpha consumer patronage intention mean std. deviation perceived consumer empowerment perceived satisfaction service failure table 1 results of validity, reliability and descriptive statistics testing jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 4, 2022, pp. 21-33 published online ... in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : 122012101037@std.trisakti.ac.id received: 1 aug 2022 accepted: 12 nov 2022 published: 1 dec 2022 fit model test the model fit test is a test that must be carried out as a prerequisite before testing the research hypothesis using the sem model shown in figure 2. in the fit model test, there are several analyzes that can be used and one of them is using the coefficient determination r-square and adjusted r square coefficient determination : r-square and adjusted r square furthermore, model testing is carried out by paying attention to the rsquare value which is a model fit test for the pls-sem internal model output. the coefficient of determination (r-squared) is a way to assess how much an endogenous construct can be explained by an extrinsic construct. the coefficient of determination (r-squared) is expected to be between 0 and 1. r square values of 0.75, 0.50, and 0.25 indicate that the model is strong, moderate, and weak (sarstedt et al., 2022). while the adjusted r square is the r square value that has been corrected based on the standard error value. adjusted r square value provides a stronger picture than r square in assessing the ability of an exogenous construct to explain endogenous constructs. based on the results of the analysis using smart pls, the results are shown in table 2 below with the following explanation: 1. for the perceived customer empowerment (pce) variable, the rsquare value is 0.151 with an adjusted rsquare value of 0.146. so, it can be explained that the independent variable, namely online-offline channel integration (oci) affects pce by 0.146 or 14.6%. because the adjusted r square value is less than 25%, the oci variable on pce is categorized as weak. in addition, the remaining 85.4% is a variation of other independent variables that affect pce but are not included in the model. 2. the service failure (sfa) variable model results in an r-square value of 0.027 with an adjusted r-square value of 0.021. so, it can be explained that the independent variable, namely online-offline channel integration (oci) affects sfa by 0.021 or 2.1%. because the adjusted r square value is less than 25%, the oci variable to sfa is included in the weak category. in addition, the remaining 97.9% are variations from other independent variables that affect sfa but are not included in the model. 3. for the perceived satisfaction (psa) variable, the r-square value is 0.438 with an adjusted r-square value of 0.431. so, it can be explained that the independent variables, namely oci and pce, affect psa by 0.431 or 43.1%. due to the adjusted r-square value between 25% and 50%, the oci & pce variable on psa is in the category close to moderate. in addition, figure 2 model pls jurnal akuntansi, manajemen dan ekonomi , vol. 24 no. 4, 2022, pp. 21-33 the remaining 56.1% is a variation of other independent variables that affect psa but are not included in the model. 4. the customer patronage intention (cpi) variable model obtained an r-square value of 0.510 with an adjusted r-square value of 0.497. so, it can be explained that the independent variables, namely oci, sfa, and pce affect the cpi by 0.497 or 49.7%. because the adjusted r square value is 50%, the oci, sfa, and pce variables to the cpi are categorized as moderate. in addition, the remaining 50.3% are variations from other independent variables that affect cpi but are not included in the model. table 2 coefficient determination hypothesis test bootstrapping analysis, which only produces a significance level. in testing this hypothesis, pls sem bootstrapping tools are used, which use direct effects and indirect effects. the results obtained for the hypothesis test as shown in table 3 below. in the test results for hypothesis 1, it was found that the magnitude of the oci variable parameter factor on the cpi mediated by pce was 0.133. this means that there is a positive indirect effect of oci on cpi mediated by pce. or, it can be interpreted that oci will increase cpi through pce's mediating role by 13.3%. based on calculations using bootstrap or resampling, the results of oci testing on cpi through the mediating role of pce obtained results of 0.133, t count of 3.039, and standard deviation of 0.044. in this case, the p-value is 0.003 < 0.05 so that h1 is accepted, which means that the positive indirect effect of oci on cpi through the mediating role of pce is significant or statistically significant. in the test results for hypothesis 2, it was found that the magnitude of the oci variable parameter factor on the cpi mediated by psa was 0.037. this means that there is a positive indirect effect of oci on cpi mediated by psa. or, it can be interpreted that oci will increase cpi through psa's mediating role by 3.7%. based on calculations using bootstrap or resampling, the results of oci testing on cpi through the mediating role of psa obtained results of 0.037, t count of 1.102, and a standard deviation of 0.034. in this case, the p-value 0.271 <0.05 so that h0 is accepted, which means that the positive indirect effect of oci on cpi through the mediating role of psa is not significant or statistically significant. in the test results for hypothesis 3, it was found that the magnitude of the oci variable parameter factor on the cpi mediated by pce and psa was 0.114. this means that there is a positive indirect effect of oci on cpi mediated by pce and psa. or, it can be interpreted that oci will increase cpi through the mediating role of pce and psa by 11.4%. based on calculations using bootstrap or resampling, the results of oci testing on cpi through the mediating role of pce and psa obtained results of 0.114, t count of 3.482, and standard deviation of 0.033. in this case, the p-value is 0.001 < 0.05 so that h1 is accepted, which means that the positive indirect effect of oci on cpi through the mediating role of pce and psa is statistically significant or significant. in the results of testing hypothesis 4, it was found that the magnitude of the oci variable parameter factor in the cpi mediated by sfa was 0.003. this means that there is a positive indirect effect of oci on cpi mediated by sfa. or it can be interpreted that oci will increase cpi through the mediating role of sfa by 0.3%. based on calculations using bootstrap or resampling, the results of oci testing on cpi through the mediating role of sfa obtained results of 0.003, t count 0.172, and standard deviation 0.017. in this case, the pvalue is 0.864 <0.05, so that h0 is accepted or which means that the negative indirect effect of oci on the cpi through the mediating role of sfa is not statistically significant or significant. construct r square r square adjusted consumer patronage intention 0.510 0.497 perceived consumer empowerment 0.151 0.146 perceived satisfaction 0.151 0.431 service failure 0.027 0.021 hipotesa original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) p values oci -> pce -> cpi 0,133 0,133 0,044 3,039 0,003 oci -> psa -> cpi 0,037 0,041 0,034 1,102 0,271 oci -> pce -> psa -> cpi 0,114 0,115 0,033 3,482 0,001 oci -> sfa -> cpi 0,003 0,006 0,017 0,172 0,864 oci -> cpi -0,105 -0,098 0,068 1,536 0,125 table 3 research hypothesis testing jurnal akuntansi, manajemen dan ekonomi , vol. 24 no. 4, 2022, pp. 21-33 in the test results for hypothesis 5, the results showed that the parameter factor for the oci variable for cpi is -0.105. this means that there is a direct negative effect of oci on cpi. or, it can be interpreted that the higher the oci value, the lower the cpi value. adding 1 unit to oci will decrease cpi by -10.5%. based on calculations using bootstrap or resampling, the results of the oci estimation factor test and bootstrap cpi results are 0.105, t count is 1.536, and standard deviation is 0.068. in this case, the p-value is 0.125 <0.05 so that h0 is accepted or which means that the positive direct effect of oci on cpi is not significant or statistically significant. conclusion this study shows that online-offline channel integration (oci) has a positive impact on customer patronage intention which is mediated by the influence of consumer empowerment. this means that if a retailer provides customers with the information and tools they need to make a decision in choosing the desired item or thing in the context of omnichannel retailing, it will increase customer patronage intention . as for what can be done by giving customers the opportunity to talk to the seller or visiting the website to help customers compare prices and quality. in addition, product-related information can also be disseminated on various social media to provide opportunities for customers to learn about other consumers' experiences or choices. this study also reveals that oci also has a positive impact on increasing cpi which is mediated successively by perceived customer empowerment and perceived satisfaction. this shows that if customers feel well served, given information about the product and what they want from the product, it creates customer satisfaction and, of course, this will increase customer patronage intention. but it should be noted that service failure at oci will create customer patronage intention. it is proved that the third hypothesis is not accepted . therefore, it is necessary to pay attention to always maintaining services both on online channels and offline channels in order to increase customer patronage intention. this study improves our understanding of how omnichannel retail contributes to the maintenance of services across online and offline channels, which ultimately results in increased sales and patronage intentions. this study contributes to the literature in the areas of retail, customer experience, and ecommerce by illuminating the processes through which customers' internal states impact their purchase intentions in addition to the finding that people rate multichannel retailers more positively. further, this research empirically supports the sequential mediating effects of perceived consumer empowerment and impact of service failure on the relationship between channel integration and cpi, in addition to the direct mediating effects of perceived consumer empowerment, consumer satisfaction, and relationship between channel integration and cpi. online-offline integration is a step towards advanced digital transformation, which may be achieved by combining chatbots, virtual reality, analytics, and other advanced collaborative business models with advanced collaborative business models, such as platform ecosystems, to offer value. more study is required in this area by highlighting the concrete and intangible advantages of multi-channel integration. this study provides insight to managers who certainly work in the retail and related industries that online-offline channel integration not only provides online access to product information but also requires good planning. in addition, the mechanism that affects oci is by empowering consumers. this suggests that more consumer empowerment will result in increased customer pleasure and patronage intentions. it is also necessary for managers to pay attention to how important it is to always maintain service both on online and offline channels. of course, failure in these services will reduce customer patronage intentions and this will have an impact on the industry's income. future studies might potentially employ unstructured review data from social media, where users expressly declare their preferences, to comprehend the aspects that contribute to increased footfall rates. in addition, this study also does not take into account the impact of types of products such as tangible and intangible or cheap and expensive goods. this certainly has an important role in understanding consumer behavior in the context of omnichannel retail. jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 4, 2022, pp. 21-33 published online ... in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : 122012101037@std.trisakti.ac.id received: 1 aug 2022 accepted: 12 nov 2022 published: 1 dec 2022 references journal article ameen, n., tarhini, a., shah, m., & madichie, n. o. 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(2018). the impact of channel integration on consumer responses in omni-channel retailing: the mediating effect of consumer empowerment. electronic commerce research and applications, 28, 181–193. https://doi.org/10.1016/j.elerap.2018.02.002 correspondence to : ade.anggraeni@unsoed.ac.id received: 29 january 2022 accepted: 18 february 2022 published: 1 june 2022 jurnal akuntansi, manajemen dan ekonomi vol.24, no. 2, 2022, pp. 23 37 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336 / e-issn: 2620-8482 introduction the research of generation z becomes a crucial topic in human resource management along with the efforts of an organization to build employer branding. this generation is starting to enter various organizations in increasing numbers and stronger effect (balnonando, 2018). not only large-scale organizations, small businesses with the aim of optimizing resources also strive to manage the employee value proposition so that they are able to maintain talented resources. there are significant differences regarding the character of generation z when compared to the previous generation. generation z grows up in rapid technological developments and prioritizes social networking in communicating (philip and garcia, 2013). employer branding which is a manifestation of a psychological contract needs to be developed in accordance with the motivational aspect that is able to encourage generation z employees. they are expected to develop skills and behaviours that fit the character of startup companies and they need to adapt and innovate continuously. the psychological contracts that are related to employability management aspects are important for employees to decide and stay in the organization through the mechanism of social exchange theory (zafirovsky, 2005; ng and feldman, 2008). agarwal and vaghela's research (2018) has explained that work life balance, co-workers, tendency of helping others, career development and individual development are the main work values of generation z. baldonado's research (2018) has proved that the components of career development, recognition, comfortable work environment, and giving greater responsibility to improve skills and knowledge are the expectations of generation z employees. due to the reasons, it is important for organizations to pay attention to these aspects in designing psychological contracts that appropriate for the work values of generation z. these work values also agree with the concept of wellbeing developed by ryan and deci (2000). the research of the psychological contracts effects on attitudes, behaviour and well-being has been previously conducted by gracia et al (2007). de cuyper's research (2011) has specifically examined the psychological contract that relates to employability on individual and organizational outcomes. however, van der vaart's (2014) research has given different results. his research explains that psychological contracts have no impact on wellbeing and individual intentions to leave the organization. it also explains that the insignificant effect of psychological contracts is caused by the issues related to the labour market, career and individual potential. it strengthens the research of van de vaart (2013) which has stated the need for consideration of demographic factors and the managing generation z: eudaimonic perspective ade irma anggraeni faculty of economics and business, universitas jenderal soedirman, indonesia abstract psychological contracts are dynamic and manifested in the form of employer branding as an understanding of work orientation of generation z in the digital era. according to social exchange theory, this study aims to empirically examine the effect of psychological contracts on employee resilience, employee agility and proactive behaviour with eudaimonic workplace wellbeing as a mediating variable. the research was conducted on startup companies in indonesia. the research model was tested using a structural equation modeling approach. this research contributes to explaining the mechanism for managing expectations of generation z through well-being, both intrapersonal and interpersonal aspects. the eudaimonic perspective becomes relevant to achieve alignment of generation z work orientation and job characteristics in the digital era. keywords agility, eudaimonic wellbeing, psychological contract, proactive behavior, resilience jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.23-37 fulfilment of psychological contracts in predicting individual wellbeing, attitude and behaviour. this statement agrees with the psychological contract concept proposed by guest and conway (2002) in considering the elements of wellbeing, individual background and the effect of organizational policies. generation z really understands their needs, desires and expectations. a research by ozkan and solmaz (2018) has explained that dynamic and fun working conditions are the factors that motivate generation z to work. this research also explains that this generation has self-confidence, prioritizes team spirit, wants happiness and independence in the workplace. generation z looks the uncertainty aspect as a challenge. this condition is an opportunity as well as a challenge for organizations in managing generation z. kuntz et al (2016) has explained that organizations needs to invest in employee resilience for sustainable change. due to this reason, intervention through organizational practices is needed. cooper et al (2013) has explained that employee wellbeing is a powerful approach in building employee resilience. this statement agrees with janssens’s view (2003) which has stated that employees who perceive a balance of obligations among employees and an employer have higher job-related performance. ruokolaoinen’s research et al (2016) has provided empirical evidence regarding the psychological contract effects on employee wellbeing and in role performance at work. generation z has an expectation of flexibility at work. micoleta (2012) has explained that this generation focuses on a boundless career that emphasizes performance aspects. it is open to improvement and concerns on work and learning oriented. arar and oneren (2018) have concluded that generation z expects a flexible career, organizational structure, development opportunities, creative and innovative work, significant work, and work results-based performance appraisal. it is related to eudaimonic perspective in the concept of wellbeing. eudamonic wellbeing is measured using the psychological wellbeing construct developed by ryff (1995). eudamonic wellbeing refers to the subjective evaluation of employees regarding the ability to develop and function optimally in the workplace. this concept is explained by social context theory and is divided into two dimensions. they are interpersonal and intrapersonal (keyes, 1998) which focuses on growth and development. seligman (2011) has explained that resilience is a key differentiator among employees who are able to recover and ones who fails to recover in a transforming situation. braun et al (2017) has stated that in the context of change, organizational management needs to encourage employees to be more proactive, resilient and agile to be along with the organization's movements. harvey et al (1999) suggests that employee agility and proactive behaviour are the main components needed by organizations to seize opportunities in unpredictable situations. this opinion agrees with the argument of pulakos et al (2019) that employee agility is a crucial factor in organizational change. parker and collins (2010) have identified three categories of proactive behaviour. they are work, strategic and person-environment fit. aim of research this research aims to examine the effects of psychological contracts on employee resilience, employee agility, employee proactive behaviour with eudaimonic wellbeing as a mediating variable. the research is conducted on a small-scale startup companies in indonesia and involve generation z as the respondents. employee proactive behaviour proactive behaviour of employees was an initiative and focuses on the future by seeing opportunities and consequences simultaneously (grant, et al, 2009). proactive behaviour was an anticipatory self-initiated action that aimed to change and improve a condition (parker and collins, 2010). this behaviour was divided into three categories. they were proactive work behaviour, proactive strategic behaviour and proactive person-environment fit behaviour. proactive work behaviour aimed to improve the organization's internal work processes, developed by the dimensions of taking charge, voice, implementing strategies, and problem prevention. proactive strategic behaviour aimed to improve the organization's suitability with the internal environment. this behaviour was manifested in actions such as issueselling, and the process of strategic observation of environmental conditions to anticipate new developments and opportunities to create competitive advantage. proactive person-environment fit behaviour aimed to increase the suitability between jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.23-37 oneself and the organization which was measured using the dimensions of feedback seeking and career development negotiations. the management of generation z in the workplace was determined by the organization's ability to communicate with this generation efficiently, assisting them to be with the community and the habitual culture in the organization and encouraging them to be effective employees in the digital era (elmore, 2014). employee agility employee agility referred to an individual's ability to quickly respond to environmental changes and adapted these changes to provide benefits to the organization (sherehiy and karwowski, 2014). the benefits included better customer service, learning and product quality improvement (binti safie et al, 2018). the efforts of building agility required individuals to have adequate information and capabilities to process that information. agility was related to efforts of obtaining various information in unpredictable conditions. the research of employee agility was initiated by breu et al (2002) and later developed by muduli (2016). discussions of employee agility developed in studies of enterprising social media as a basis for building collaboration (leonardi, 2014). employee agility meant the individual's capability to respond and adapt quickly toward unpredictable environmental changes and was able to provide benefits to the organization in these changing situations (cai et al, 2018). generation z was a generation with adequate knowledge of technology (bencsik, et al, 2016). this generation also tended to be more agile and highly motivated by new challenges because they grew up in a complex environment with high uncertainty (geyer and klein, 2015). employee resilience the concept of resilience developed as an individual stable characteristic that referred to an individual's effective response to diversity (rutter, 2006). resilience was related to the combination of various assets and resources of individuals and their environment that facilitated the capacity of individuals to adapt diversity. resilience, in the context of work, was related to the individual's ability to increase awareness and perform the ability to be more flexible, always made improvements and was ready to adapt to change (coutu, 2002). resilience, in the context of work, could be referred to the research of luthans (2002) in a discussion of positive organizational behaviour regarding the psychological capacity and positively oriented resources. this research then brought a review of human capital into psychological capital with dimensions of self-efficacy, trying to succeed in challenging goal-oriented jobs and resilience (luthans, youssef and avolio, 2007). the transformational perspective explained that employee resilience referred to the ability of employees to optimize resources, adapted and devoted energy to work. this perspective also emphasized that employee resilience could be manifested in stable or dynamic situations. it meant that the concept of employee resilience was an individual capability that did not just adapt in dynamic situations but continued to seek opportunities to develop in a stable situation (tonkin et al, 2018). individual resilience in the context of work was related to the combination of job challenges and learning from mistakes, the resources provided by the organization and could be developed in various work environments. basically, the organization sought to find employees with a set of abilities and who were able to add value to the organization. hochel and wilson (2007) explained that the consequences of recruiting errors had an impact on high workload, frustration, ineffectiveness, damaged to organizational reputation, high turnover and wasted the organizational resources. the presence of generation z in the workplace was unique, especially in using technology to find information that supported its considerations in producing a solution (2011). eudaimonic wellbeing the research of wellbeing was divided into two perspectives. they were hedonic and eudaimonic ryan and deci (2001). the hedonic perspective emphasized the aspect of good life while the eudaimonic perspective referred to the facilitation of individual potential regarding the aspects of growth and development. eudaimonic developed from the concept of psychological well-being which ryff (1998) divided into six dimensions of growth and development. the first three dimensions, such as self-acceptance, positive relations with others, and autonomy, were developed from the self-actualization and selfdetermination theory. the other three dimensions were mastery, purpose in life and personal growth. eudaimonic wellbeing in the jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.23-37 workplace was defined as an objective evaluation of an individual's ability to develop and optimize the functions at work. the previous six dimensions were included by involving the specific attributes. keyes (1998) developed a social context theory to explain five determinants of individual wellbeing in the workplace, such as social integration, social acceptance, social contribution, social actualization and social coherence. all six dimensions of ryff (1998) and five dimensions of keyes (1998) were developed by bartels (2019) to develop the concept of eudaimonic wellbeing in the workplace and divided into two dimensions. they were interpersonal and intrapersonal dimensions. the current presence of generation z in the workplace did not show any difference between employees who came from theoretical and practical educational backgrounds. (gimbergsson and lundberg, 2016). theoretical-oriented individuals were self-actualization-oriented (vanteenkiste et al 2007) while practical-oriented individuals were oriented to competence and autonomy (deci and ryan, 2000). psychological contract guest and conway (2004) explained that the concept of psychological contract had developed significantly since the 1960s. kotter (1973) interpreted this concept as an implicit contract between individuals and organizations within the framework of meeting the expectations of both parties. herriot and pemberton (1996) then explained the exchange mechanism that underlied the perception of both parties in the employment relationship. furthermore, this concept contextually was developed by rousseau and schalk (2004). generation z characters had a tendency to access information quickly and wanted a work atmosphere that was able to facilitate the knowledge sharing process. this explanation was described in the research of bencsik et al (2016), especially in an explanation of how this generation contributed to organizational success. the findings of freese et al (2011) confirmed that the effectiveness of the psychological contract was determined by the facilitation of the development of employee abilities and competencies within the organization. this condition made employees feel that the organization where they work could meet their expectations in career development. employees had motivations to develop themselves if the demands of the job required them to maximize all abilities. herriot et al (1997) asserted that job features were able to motivate employees to master and develop their skills. various and challenging job designs were able to encourage employees to master new skills to adapt to the demands of the job. employees could work optimally in conducive work atmosphere (rousseau, 1998). parmar (2014) asserted that employer branding aimed to create an environment that was capable of being a place to work that employees admired. baldonado's research (2018) proved that generation z had expectations of a work environment that provided opportunities for learning through assignments, meaningful work and the presence of balance between work and personal life. effect of psychological contract on eudaimonic wellbeing gracia (2017) confirmed the effect of psychological contracts on psychological wellbeing. parzefall and hakanen (2008) explained that when an organization fulfilled its promises and responsibilities to employees, energizes employees, so the process had a positive impact on employee wellbeing. the changing work environment currently met with the challenge of maintaining employee performance in the middle of the demands for technology adoption in a dynamic business environment. in addition, the changes of economic conditions played a role in changing the role of hr to focus more on employee wellbeing (kowalski, 2017). particularly, these challenges demanded that organizations provided opportunities for flexible working (joyce et al, 2010) and the management of employees with different generational backgrounds (wesolowski, 2014). the presence of generation z in the workplace who wanted flexibility in carrying out their work was a key factor in the psychological contract component. dewe and cooper (2012) stated that the development of communication technology facilitated employee expectations regarding work flexibility. particularly, the development of the gig economy encouraged employees to expect flexibility and precarious work. the changes in job management needed to provide significant benefits in increasing autonomy for employees, which could encourage performance and employee wellbeing (parker, 2003). baldonado's research (2018) recommended the jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.23-37 importance of organizations providing growth opportunities, providing responsibility, and a pleasant work environment for generation z. effect of psychological contract on employee resilience guest (2017) explained that there were main aspects of wellbeing, such as psychological, physical and social functioning. the researches on human resource management and employee resilience explained that there were several aspects that organizations could develop in order to encourage employee resilience, including developing social support, assistance and development programs and flexible work arrangements (bardoel, 2014). the regulatory focus perspective explained that employees were divided into two types. one who focused on changing the status quo and another one maintained the status quo. generation z character, that had an orientation to promotion focus, had the expectation of the availability of self-development opportunities within the organization. this speciality agreed with the contemporary perspective on the concept of employee resilience which focused on a transformational and change-oriented view (carvalho and areal, 2015). psychological contracts were built to provide social support for employees to develop dynamic abilities in dealing with the change. social support from supervisors and coworkers had an effect on employee resilience (bruque et al, 2016). this finding confirmed the findings of warner and april (2012) which proved the effect of social support on resilience. employees, who received support, were proven to have greater resources to invest in the organization and showed networking-oriented resilience behaviour (malik and nilakant, 2016). psychological contract was also related to the availability of performance feedback. the existence of this feedback was a signal that the organization was focused on sustainable individual development (meneghel et al, 2016) and was a critical resource in building employee resilience (kuntz, 2017). effect of psychological contract on employee agility employee agility was a behaviour developed from the concept of contextual performance. agile behaviour showed an interest in learning, completing work, development and social relations. this concept was a learningbased view and readiness to change (locascio et al, 2016); holt and vardaman (2013). organizations needed to give opportunities to develop themselves that supported the actualization of their abilities in the work to encourage individuals to become sustainable learners (frimousse, 2019). the concept of employee agility appeared from an organizational strategy that required a speed in responding to business changes that were full of uncertainty, but it required constant adaptation to new requirements, conditions and processes by employees (parker, 2007). galindo's research (2017) explained that effective human resource management for startup companies emphasized several aspects including knowledge, challenges, informality, involvement and delegation. employees were encouraged to be involved in solving collective problems and able to manage themselves in terms of delegation of responsibilities. employee agility was the main key in innovative programs developed by entrepreneurs. generation z had a tendency to think as an entrepreneur compared to generation y, was more optimistic and aware of opportunities in technological developments (peterson, 2014). this generation tended to expect flexibility in the workplace and was more likely to adopt the concept of a boundless career. effect of psychological contract on employee proactive behaviour psychological contract was an important concept in career perspective. there were various changes in employment relationships along with the development of career expectations. the protean career research explained that organizations played a role in providing growth and development opportunities to employees (hess et al, 2009). assumptions of socio-cognitive career theory explained that individual career development was in interpretive schemes and resource and institutional principles (duberley et al, 2006). the career contexts based on reciprocal exchange and negotiation significantly impacted proactive behaviour (lam, 2014). the research of parker and coolins (2010) also contributed to explaining contextual factors that influenced proactive behaviour. proactive behaviour of employees was needed by organizations in building capabilities to create a bright future, especially in innovating products, services and transforming in business models and organizational change (batistic et al, 2016). organizational contextual factors became jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.23-37 relevant in building proactive behaviour which was specifically described by lepak and snell (1999) in a research on hr configuration. mossholder’s research et al (2011) explained that an employee relationship, that was openended obligations, was needed to encourage proactive employee behaviour. other contextual factors related to communal sharing climate had also been shown to contribute to the proactive behaviour of employees (lengnick-hall and lengnick-hall, 2003). knowledge development activities were implemented by the organization were prerequisite conditions for employees to behave proactively (freese and fay, 2001). job design was flexible which facilitated opportunities to participate in decision making and a high autonomy stimulated employees to be more confident in acting (fuller jr et al, 2010). effect of eudaimonic wellbeing on employee resilience autonomy was an explanation for the concept of self-actualization in eudaimonic wellbeing. guest (2007) explained that human resource management, that focused on encouraging employee wellbeing, needed to invest some efforts to design engaging work. it was expected to be able to encourage the perception of autonomy and challenges at work. this research also contributed to explaining job design mechanisms that facilitated positive social interactions, communication channels and participatory management in promoting employee wellbeing. this finding agreed with the research of youssef and luthans (2005) which explained that the implementation of human resource management in a positive psychology frame was able to encourage employee wellbeing. baldonando's research (2018) explained that achievement and selfdevelopment were the main work motivations for generation z. effect on eudaimonic wellbeing on employee agility the findings of sheheriy and karwowski (2014) explained that the eudaimonic wellbeing component, autonomy, had a significant impact on employee agility. other factors that had an impact on employee agility sharing included the process of sharing information with colleagues and the support given to colleagues in activities and work (breu et al, 2002). collaborating and sharing information were key resources for employee agility. employees, with agile behaviour and a positive attitude towards learning and selfdevelopment, had the ability to solve problems, felt comfortable with new ideas and were willing to accept new responsibilities (plonka, 1997). the findings of baldonando (2018) proved that responsibility at work, the meaning of work and opportunities for selfdevelopment were motivational factors for generation z. effect of eudaimonic wellbeing on employee proactive behaviour fritz and sonnentag (2009) explained that positive affect increased energy, attention and optimism which were important in encouraging proactive behaviour. this argument confirmed the findings of den hartog and belschak (2007) which showed that there was a positive affect on proactive behaviour. furthermore, paeker (2007) explained that proactive behaviour required a form of individual choice to allocate his efforts in challenging goals. positive affect also had an impact on this selection process. this condition was confirmed by the findings of iles and judge (2005) which stated that positive affect was associated with higher and more challenging goals. the research by schuler et al (1993) explained that individuals with a high learning orientation tended to perform proactive behaviour. huta's research (2013) showed that meaningfulness, positive affect and neighbourhood to other individuals. previously, martin et al (1993) proved that positive affect provided self-regulatory benefits that could encourage individuals to persist in acting proactively. baldonado's research (2018) recommended the need for knowledge and skill development opportunities for generation z in the workplace. isen's (1999) findings showed that positive affect encouraged the assessment process if it involved a consideration of important value works. the important value works agreed with the concept of eudaimonic orientation (huta, 2017). proactive behaviour was interpersonal behaviour that was influenced by the reactions of other individuals in a change-oriented work environment. the findings of ashford et al (1998) proved that positive relationships with co-workers had an impact on individual proactive actions. the concept of positive relationships with others was described by ryff (1989) as an intrinsic goal in relationships and community. this concept agreed with the concept of jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.23-37 eudaimonic personality development (baueur and adams, 2008) which involved aspects of interdependence. this concept agreed with the terminology of psychological selection and optimal experience in creating social growth (delle fave et al, 2011). effect of eudaimonic wellbeing in mediating psychological contract effect on employee resilience, employee agility and employee proactive behaviour madsen and desai (2010) explained that a positive organizational approach had an impact on employee resilience. kuntz (2017) identified the influence of organizational factors that had an impact on employee resilience. resilience was a construct that arose from the need for developmental feedback (chiaburu et al, 2006) which was one of the orientations in eudaimonic values. the positive behaviour of employees, especially in the context of changing business environments also required organizations to build a learning atmosphere so that employees could respond to the challenges of change (putz, 2012). this atmosphere encouraged employees to feel safe both in sharing values, taking risks and expressing opinions (edmonson, 1999). the experiences of learning atmosphere within the organization encouraged employees to be more proactive because feedback from the organization focused on activities and behaviour, and not on personal aspects. (caniels and baaten, 2018). organizations also needed to manage employees to develop new skills and an agile mind set to handle crisis situations (paul et al, 2019). this research provided five recommendations for employees management, for instance maintaining expertise and skills, empowering human resources, focusing on individual values, encouraging collaboration and providing space for experimentation. this concept agreed with the value of eudaimonic in the concept of wellbeing. based on the explanation of the concept and formulation of the hypothesis above, the research framework was developed as follows: thus, the hypothesis of this study can be formulated as follows: h1. effect psychological contract on eudaimonic wellbeing h2. effect psychological contract on employee resilience h3. effect psychological contract on employee agility h4. effect psychological contract on employee proactive behaviour h5. effect eudaimonic wellbeing on employee resilience h6. effect eudaimonic wellbeing on employee agility h7. effect eudaimonic wellbeing on employee proactive behaviour h8. effect eudaimonic wellbeing in mediating psychological contract effect on employee resilience, employee agility and employee proactive behaviour methods the population of this research was generation z employees who worked at startup companies in indonesia. the sample of this research was non-probability sampling using purposive sampling technique. there were 300 respondents as the samples. the primary data collection method of this research was carried out by a survey method. the questionnaire format of the study used closed statements, supported by open questions that required short answers from respondents to obtain more answers detailly. the questions of the questionnaire were made using a scale of 1-10. it described the respondents' ratings from a scale of 1 for the strongly disagree criteria and a scale of 10 strongly agree criteria. data analysis was performed using structural equation modeling (sem). the first step of developing the theoretical model was to explain the constructs used in the research model in the form of dimensionalization variable. this research used five constructs, such as psychological contract, eudaimonic wellbeing, employee resilience, employee agility and employee work behaviour. the operational definitions of these constructs were presented as follows: eudaimonic wellbeing was an individual's subjective evaluation of his or her ability to develop and optimize functions in the work environment (bartels et al, 2019). the indicators of this research model referred to the instrument which was divided into two dimensions. they were the interpersonal and intrapersonal dimension. proactive behaviour was an anticipatory selfinitiated action that aimed to change and improve a condition (parker and collins, 2010). the indicators of the research model development were based on the categories of proactive work behaviour, proactive strategic behaviour and proactive person-environment fit behaviour. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.23-37 employee resilience referred to an individual's ability to develop awareness and capability to be more flexible, improvement-oriented and adaptive (coutu, 2002). the indicators of this research were developed by winwood (2012) including living authentically, finding your calling, maintaining perspective, managing stress, building social and staying healthy. employee agility referred to an individual's ability to quickly respond to environmental changes and adapt these changes to provide benefits to the organization (sherehiy and karwowski, 2014). the indicators of the research used the instrument developed by braun et al (2017) consisted of five aspects including responsiveness, quickness, competence, adaptability and cooperativeness. psychological contract referred to the employee's perception of an implicit agreement between himself and the organization that contained of shared responsibilities between the two parties. this definition referred to the formulation of the psychological contract concept proposed by rousseau (1995). the indicators of the research included six aspects related to job content, career development, social atmosphere, organizational policy, work-life balance and rewards developed by freese, schalk and croon (2008). result and discussion 300 questionnaires were distributed. these questionnaires were given to employees who worked at the startup companies in indonesia. it took a week to sharing and collecting back the questionnaires. there were 221 questionnaires returned back to the researchers. then, those questionnaires were filtered and checked for the data completeness. after that, there were some incomplete questionnaires in filling out the data so that they couldn’t be included for the next analysis stage. thus, there were 192 questionnaires that could be processed. this research had recorded that there were 34 startup businesses. they involved 3 educational businesses, 6 event organizer businesses, 4 computer assembly businesses, 2 beauty businesses, 9 coffee shop businesses, 6 graphic design businesses and 4 travel agency businesses. the total was 34 types of businesses. 13 of them had established for more than 3 years. based on the results of interviews, the business owners recruited employees from the community of friends and achieved the recommendations regarding specific skills and work experience from these employees. based on the results of statistical data processing, employee characteristics could be grouped into age, education, gender and length of work experiences. based on age, there were 85 male respondents and 107 female respondents. most of the respondents had graduated from high schools and vocational schools level, 83 respondents (43%). 30 respondents (16%) were from undergraduate education level, 79 respondents (41%) were from middle experts. most of the respondents that had worked in the business for less than 1 year were 94 respondents (49%). the respondents who had worked between 2-3 years were 47 respondents (24%) and the others that had worked for more than 3 years were 51 respondents (27%). based on the analysis, the cronbach alpha value for each construct and the loading factor value for each question item is above 0.6. meanwhile, the variance extract value is greater than the critical value, which is 0.5. the value of construct reliability is above 0.7 while the value of discriminant validity is above 0.7. sem analysis the next analysis is a full model of sem analysis to test the models and hypotheses developed in this research. the results of the chi-square calculation show a value that is smaller than the chi-square table with a significant degree 5%. then the probability value shows a value that is above 0.05 so that it can be concluded to be good. furthermore, the gfi value is greater than 0.9 so it can be categorized to be good. the tli value is greater than 0.90 so it can be categorized to be good. the cmin/df value is under 2.00 so it can be concluded to be good and the rsmea value is far under the standard value 0.08 so that the overall model can be categorized to be fit. hypothesis test the last stage is testing the hypotheses that have been proposed. hypothesis testing is based on data processing using sem analysis by analyzing the value of the critical ratio and the probability of data processing results. the required value is above 1.96 for the critical ratio and below 0.05 for the probability. hypothesis 1 of the research is that psychological contract has a positive effect on eudaimonic wellbeing. based on the results of jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.23-37 data analysis, it is known that cr value for the affective relationship between these two constructs is 2.674 with a probability 0.000. thus it can be determined that hypothesis 1 is supported. hypothesis 2 of the research is that psychological contract has a positive effect on employee resilience. based on the results of data analysis, it is known that cr value for the affective relationship between these two constructs is 2.318 with a probability 0.000. thus, it can be determined that hypothesis 2 is supported. hypothesis 3 of the research is that psychological contract has a positive effect on employee agility. based on the results of data analysis, it is known that cr value for the affective relationship between these two constructs is 2.126 with a probability 0.000. thus it can be determined that hypothesis 3 is supported. hypothesis 4 of the research is that psychological contract has a positive effect on employee proactive behaviour. based on the results of data analysis, it is known that cr value for the affective relationship between these two constructs is 3.785 with a probability 0.000. thus it can be determined that hypothesis 4 is supported. hypothesis 5 of the research is that eudaimonic wellbeing has a positive effect on employee resilience. based on the results of data analysis, it is known that cr value for the affective relationship between these two constructs is 2.785 with a probability 0.000. thus it can be determined that hypothesis 5 is supported. hypothesis 6 of the research is that eudaimonic wellbeing has a positive effect on employee agility. based on the results of data analysis, it is known that cr value for the affective relationship between these two constructs is 2.063 with a probability 0.00. thus it can be determined that hypothesis 6 is supported. hypothesis 7 of the research is that eudaimonic wellbeing has a positive effect on employee proactive behaviour. based on the results of data analysis, it is known that cr value for the affective relationship between these two constructs is 2.384 with a probability 0.000. thus it can be determined that hypothesis 7 is supported. the indirect relationship of psychological contract on employee resilience, employee agility and employee proactive behaviour has a greater coefficient than the direct relationship. thus, it can be determined that hypothesis 8 which states that there is an effect of eudaimonic wellbeing in mediating the effect of psychological contracts on employee resilience, employee agility and employee proactive behaviour is supported. discussion testing the first hypothesis proved the effect of psychological contract on eudaimonic wellbeing. this finding confirmed the results of research by gracia et al (2017); parzefall and hakanen (2008); (kowalski, 2017) and (joyce et al, 2010) regarding the fulfillment of the promise to create a flexible work environment, especially in managing employees with various generations of backgrounds. generation z employees interpret it as a fulfillment of their expectations and work values, especially in the intrapersonal aspects that support self-development and autonomy. testing the second hypothesis proved the effect of psychological contracts on employee resilience. these finding confirmed the results of guest (2017); carvalho and areal (2015) and kuntz (2017) mainly concerned the fulfillment of psychological and social aspects. the fulfillment of the generation z employees expectations regarding the feedback explains that the transformational approach is relevant in encouraging employees to focus on developing themselves in dynamic situations. testing the third hypothesis proved the effect of psychological contracts on employee agility. this finding confirmed the results of research (kayes (2015); holt and vardaman (2013); frimousse (2019) and peterson (2014). it is related to the existence of learning opportunities for generation z employees in the form of delegation and challenging assignments so that they are able to respond to business dynamics effectively. this condition is interpreted as an opportunity to develop self-confidence and the ability to find solutions and be adaptive to new ways that need to be mastered quickly. testing the fourth hypothesis proved the effect of the psychological contract on employee proactive behaviour. this finding confirmed the results of lam's research (2014); paker and collins (2010); and mossholder (2011) regarding career perspectives and contextual approaches in employment relationships as the basis for employees in developing employees' proactive capabilities. the existence of career development is interpreted by employee z as an organizational effort to manage knowledge-based resources that provide benefits for both parties so that jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.23-37 employees are more confident to participate in achieving organizational progress. testing the fifth hypothesis proved the effect of eudaimonic wellbeing on employee resilience. this finding confirmed research by baldonado (2018) and guest (2007) which explained the work motivation of generation z related to self-development and self-activation as the components of eudaimonic wellbeing, due to it was the basis for employees to build resilience behaviour. testing the sixth hypothesis proved the effect of eudaimonic wellbeing on employee agility. this finding confirmed the research results of sheheriy and karwowski (2014) and baldonando (2018) which explained that autonomy, meaningfulness of work and knowledge sharing as the components of eudaimonic wellbeing which were the work values of generation z. these values encourage generation z to have a positive view of various forms of learning and challenging assignments. testing the seventh hypothesis proved the effect of eudaimonic wellbeing on employee proactive behaviour. this finding confirmed the results of fritz and sonnentag (2009); den hartog and belschack (2007); huta (2013); iles and judge (2005); martin et al (1999) regarding the concept of positive affect in a review of eudaimonic wellbeing and its effect on employee proactive behaviour. testing the eighth hypothesis proved the effect of eudaimonic wellbeing in mediating the effect of psychological contract on employee resilience, employee agility and employee proactive behavior. this finding confirmed the research results of madsen and desai (2010); kuntz (2017); chiaburu (2006); putz (2012); caniels and baaten (2018) and paul et al (2019) which explained that skill and skill development, collaborative pursuit of constructive feedback, were the main motivational elements of employees and agreed with the concept of eudaimonic wellbeing that could be managed by organizations and were able to form employee, resilience, employee agility and employee proactive behaviour in responding to dynamic situations. this research describes the mechanism of the effect of eudaimonic wellbeing in the relationship among psychological contracts and employee resilience, employee agility and employee proactive behaviour. eudaimonic wellbeing testing equally examines interpersonal and intrapersonal aspects so it can capture both motivational bases of generation z. employee resilience testing specifically uses the dimensions of living authentically, finding your calling, maintaining perspective, managing stress, building social and staying healthy to holistically explain the form of resilience at workplace. testing employee proactive behaviour uses three categories including strategic, work and person-environment fit. therefore, it is capable of explaining the proactive form of generation z employees for the details. testing employee agility specifically uses components of responsiveness, quickness, competence, adaptability and cooperativeness that contribute to explaining benefits for the startup companies. this research examines the psychological contract concept from the perception of generation z employees. future research shall need to consider measuring psychological contracts from the perspective of both parties from the organization and employees. the psychological contract was a multiperspective construct. there were several approaches in creating the dimensions of the psychological contract. rousseau (2000) formed a psychological contract using two dimensions. they were the relational and transactional aspect based on the content approach. psychological contracts could also be explained through an employee evaluative approach. it was the employee's perception of the fulfillment of a contract or the violation of a contract. besides, content-based and evaluative-based, psychological contracts could also be explained through contract features including equality in exchange (balanced or unbalanced), contract level (individual or collective), scope (narrow or broad), time frame (long or short term relationship), contract clarity (explicit or implicit); formality (rules-based or trust-based) and negotiation (negotiated or determined). this research only focused on analyzing the effect of psychological contracts in reviewing flexibility contracts with a boundless career perspective. conclusion the results of this research explained the effect of eudaimonic wellbeing in the relationship among psychological contracts and employee resilience, employee agility and employee proactive behaviour. social exchange theory underlied the relationship between the psychological contract concept as a form of employer branding on the motivation, attitudes and behavior of jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 2, 2022, pp.23-37 generation z employees. psychological contracts in the employment relationship review of this research were based on the context of flexible contracts that were relevant in adopting generation z work value expectations. there was a primary difference among the contents from a contract, due to the changes in the workforce characteristics and the organization's efforts to manage human resources as the basis for competitive advantage. currently the organizations have been focusing on efforts to develop employee 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(2010). police recruitment and retention for the new millennium. santa monica, ca: rand corporation. youssef, c. m., & luthans, f. (2005). a positive organizational behavior approach to ethical performance. positive psychology in business ethics and corporate responsibility, 1-22. zafirovski, m. (2005). social exchange theory under scrutiny: a positive critique of its economicbehaviorist formulations. electronic journal of sociology, 2(2), 1-40. jurnal akuntansi, manajemen dan ekonomi vol. 24, no. 4, 2022, pp. 34-52 published online in http://jos.unsoed.ac.id/index.php/jame issn: 1410-9336/e-issn: 2620-8482 correspondence to : alfiyanwahyu_wicaksono@yahoo.com received: 28 aug 2022 accepted: 12 nov 2022 published: 1 dec 2022 introduction financial distress is a condition of a company experiencing a bad financial condition, namely when the company cannot fulfill its obligations to third parties (kamaluddin et al., 2019). companies experiencing financial distress will face financial difficulties and worsening financial performance (kazemian et al., 2017). in early 2020 the indonesian government officially announced that the covid-19 virus had become a pandemic in indonesia with the establishment of the task force for the acceleration of handling covid-19 on march 13, 2020 through presidential decree no. 07 of 2020. after the formation of the covid-19 task force, the government issued pp no. 21 of 2020 on large-scale social restrictions. the weakening economy due to the global crisis triggered by the covid-19 pandemic has affected the company's condition both directly and indirectly. the existence of regulations limiting physical distance that must be carried out makes people reduce activities outside the home. physical activity that is hampered makes the economy a bit hampered. according to statistics news no. 83/11/th. xxiv gross domestic growth in indonesia in the first quarter of 2020 decreased to 2.97% from 4.96% in the previous quarter. indonesia's economic growth in 2020 was the first time it touched negative numbers since 1998, which was more precisely in the second quarter of 2020, which decreased to -5.32%. in the next quarter, the indonesian economy experienced an increase but was still at a negative level, until in the fourth quarter of 2020 at -2.19%. the sector that was most affected at the end of 2020 was the trade sector which experienced a decline at -3.72%, followed by the construction sector at -3.26% and the sector that did not touch the negative level, one of which was the agricultural sector at 1.75%.. indonesia's economic situation continued to improve until in the second quarter of 2021 for the first time it touched a positive level since the pandemic occurred, namely at 7.07%, then decreased again to 3.51% in the third quarter of 2021. according to the indonesia stock exchange report, idx yearly 2019 and 2020 growth in the property, real eastat, and building construction sectors at the end of 2019 was at 2,052, while at the end of 2020 there was a drastic decline to 396. the trade sector is the sector that experienced the highest decline compared to other sectors, including the services trade sector. one of the companies affected by the covid-19 pandemic is a company engaged in hospitality services. where with the physical analysis of the effect of financial ratio on financial disress in the hospital sector in the list of sharia securities affected by the covid-19 pandemic alfiyan wahyu wicaksono1, imam agus faisol2 1,2accounting, trunojoyo madura university, indonesia abstract this study aims to examine the effect of the current ratio, debt to asset ratio, return on assets and tobin's q in influencing the incidence of financial distress in hotel sector companies affected by the covid-19 pandemic. the data used in this study is secondary data obtained from the company's financial statements in 2020 2021. the object of this research is the hotel sector company which is listed on the indonesia stock exchange and is included in the category of the sharia securities list. this study uses a purposive sampling method in determining the research sample, then obtained 8 companies with a total of 56 financial reports from the first quarter of 2020 to the third quarter of 2021. the hypothesis testing used is panel data regression with a significance level of 5%. the results of this study are showing that return on assets have no effect on financial distress. meanwhile, the current ratio, debt to asset ratio, and tobin's q have an effect on financial distress. keywords financial distress; covid-19; hotel sector companies jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 restrictions and the prohibition of activities outside the home, the number of hotel service users is decreasing. however, with diminishing income, companies still have to pay employee salaries, so many companies decide to terminate their employment to reduce the company's burden. companies have to limit their operating hours and also have to apply wfh (work from home) to some employees. however, even with the reduction in expenses, if it is not balanced with an increase in income, it will still not get the maximum profit, so that the company's cash flow is not smooth. the situation of financial difficulties can get worse if the company is illiquid, namely when costs increase and revenues decrease, especially in conditions of economic crisis (kamaluddin et al., 2019). it can be concluded that non-current company liquidity can increase the chances of financial distress. in addition to liquidity, solvency and profitability also have a relationship with financial distress (kamaluddin et al., 2019). one of the characteristics of a company experiencing financial distress is when the company has difficulty accessing credit (lópez-gutiérrez et al., 2015). can be concluded that when the company is in a condition of financial difficulty and difficulty in accessing credit, it can be interpreted that the company is in a condition of financial distress. the emergence of financial distress in a company which is reflected in the company's report can be used as a signal used by investors in making decisions in a company. financial distress signals can also be used by management and creditors. management will be able to make the right decisions when signs of financial distress appear, so that the possibility of bankruptcy in a company can be overcome before bankruptcy occurs. financial distress can also assist creditors in analyzing the company's condition before making a decision to grant a loan to the company, whether the company can repay the loan (kazemian et al., 2017). the results of research by iswari and nurcahyo (2020) state that the current ratio has no influence on the emergence of financial difficulties, but research conducted by kazemian et al., (2017) mentions different things, the study explains that the current ratio can be used in analyzing the emergence of financial difficulties. the current ratio can show the capability of a company in settling its current liabilities, besides that this ratio is the ratio used in assessing the liquidity of a company. research conducted by iswari and nurcahyo (2020) shows that there is evidence that return on assets has an impact on the emergence of financial difficulties. return on assets indicates the company's capability to earn a profit, the ratio of return on assets is used as an indicator of a company's profitability. kazemian et al., (2017) say that the tobin's q ratio has a significance in the occurrence of financial difficulties, in their research it is also stated that the lower the tobin's q value, the greater the possibility of financial distress. the high value of tobin's q ratio reflects that a company is considered more valuable by the market, thus indicating that the company is in optimal condition and has the ability to be better in the future. the research focuses on companies listed on the sharia securities list. the list of sharia securities was chosen because only sharia shares whose growth was in line with economic conditions in indonesia. according to the indonesia stock exchange report, idx statistics 3rd quarter 2021 recorded the growth of the indonesia sharia stock index ytd (year to date) as of december 2020, which decreased by -5.46%, at which time indonesia's economic growth was at -2.19% and in the third quarter three growth in the ytd of sharia shares was at a positive number, namely 2.29%, at which time indonesia's economic growth was also at a positive level of 3.51% and while other stock indices were at a negative level, namely the lq45 index, kompas 100, and bisnis-27 which the index is contrary to indonesia's economic growth. it can be said that sharia shares are experiencing growth in line with indonesia's economic growth, so it is necessary to further investigate the potential for financial distress in sharia shares, especially in the hotel sector. the results of this research can later be used by management to make decisions in anticipating financial distress. in addition, this research can also help investors to make investment decisions in a company. based on previous research, this study examines in depth the current ratio, debt to asset ratio, return on assets and tobin's q in influencing the incidence of financial distress as measured using altman z score analysis. literature review signaling theory the theory used in this research is signal theory. signal theory is used in providing an explanation that a financial report can convey positive signals and negative signals to the jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 parties who use financial statements. according to agustini and wirawati (2019), the higher the company's liquidity can convey a positive signal to investors and creditors, because with high liquidity the company is considered to have the capability to cover all of the company's current liabilities. signal theory uses the basis that information obtained by interested parties is likely not the same. signal theory can be related to the presence of asymmetry or information inequality. signal theory shows that there is an inequality of information received between management and other parties, so management is required to convey information needed by interested parties to the company. signal theory is an explanation that a company can convey signals to interested parties. the signal in question is information about the company's performance and management in running the company. signals can be in the form of activities to achievements that have been made by the company, one of which is a signal in the form of dividend distribution. the achievements of the company can also be a signal, namely information that shows that the company's performance has improved compared to the previous year. the published financial reports will be accepted by stakeholders and will be interpreted as a good signal or a bad signal. one of the signals used is the level of profit and loss submitted by the company through the issuance of profit/loss reports. the profit/loss report can be used as a good signal or a bad signal. the company's profit submitted in the financial statements by the company has increased, so that information can be classified as a good signal or a positive signal, because an increase in company profits indicates that the company's condition is in optimal condition and vice versa if the company's profit shows a declining condition, it can be said that the company is experiencing a less than optimal condition so that it can be classified as a bad signal. low profitability is a signal of the company's limitations in converting revenue streams into profits, so it can be interpreted that the greater profitability value means that the possibility of financial distress can occur is getting smaller (kazemian et al., 2017). meanwhile, according to lotfi (2018), to form a credible signal and not misinterpret, there must be alignment of interests with relevant stakeholders. it can be concluded that financial statements can be used as a signal for users of financial statements that are used as consideration when making a decision. indonesian sharia stock index one of the developments in the islamic economy in indonesia is the issi (indonesian sharia stock index). the islamic stock index is a summary that shows the performance of islamic stocks listed on the indonesia stock exchange. the indonesian sharia stock index consists of all companies included in the sharia securities list (des). the list of sharia securities is a list of all companies listed on the indonesia stock exchange whose business activities do not violate the provisions of islamic law. the list of periodic sharia securities is issued periodically by the board of commissioners of the financial services authority. the list of sharia securities was first published by bapepam-lk through regulation no. ix.a13 regarding the issuance of sharia securities and no. ix.14 concerning contracts used in the issuance of sharia securities, which was followed by the issuance of a list of sharia securities on september 12, 2007 (fauzani, 2021, p. 4). sharia shares at that time only amounted to 174 shares, but until now it has experienced significant growth until 2020 the number of sharia shares amounted to 457 shares. at present, the list of sharia securities is no longer issued by bapepam-lk, but is issued by the board of commissioners of the financial services authority. as of may 12, 2011, the indonesian stock exchange had two sharia stock indices, namely the jakarta islamic index (jii) and the indonesian sharia stock index (issi) (azis et al., 2015, p. 71). the difference between the sharia index and other indices is that its issuance is not only based on the law, but must also be based on the mui fatwa so that it can be ensured that the shares included in the sharia stock index are in accordance with the provisions of islamic law. fatwa concerning the capital market that has been issued, among others, is fatwa no. 40/dsnmui/x/2003 concerning capital markets and general guidelines for the implementation of sharia principles in the capital markets mou of bapepam & lk with dsn-mui, fatwa no. 65/dsn-mui/iii/2008 concerning sharia preemptive rights (preemptive rights), and fatwa no. 80/dsn-mui/iii/2011 concerning the application of sharia principles in the mechanism of trading equity securities in the regular market of the stock exchange. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 issuance of a list of sharia securities, the board of commissioners of the financial services authority must refer to the criteria for the issuance of sharia securities. the criteria for the issuance of sharia securities are regulated in the financial services authority regulation no. 35/pojk.04/2017 concerning criteria and issuance of sharia securities list. according to article 2 paragraph 1 letter b, the criteria for sharia shares are as follows, do not carry out activities and types of business that are contrary to sharia principles, one of which is the sale of goods or services that are haram not because of the substance (haram lighairihi) stipulated by the national sharia council indonesian ulema council and goods or services that damage morals and are harmful. apart from the aspect of the object of business activity, the company must also meet financial requirements, namely total interestbased debt compared to total assets of not more than 45% and total interest income and other non-halal income compared to total operating income and other income of not more than 45%. than 10%. based on the financial services authority regulation, it is clear that in order to determine the list of sharia securities which will later be included in the indonesian sharia stock index, a strict screening process has been carried out. the stringent regulations can eliminate public doubts about the presence of sharia shares and thus increase the number of investors in sharia shares in indonesia. current ratio one of the methods used in assessing high or low liquidity in a company is to use the current ratio or current ratio. the current ratio explains how a company's current liabilities can be covered by assets that can be converted into cash in a short time. the current ratio can be used as an indicator of a company's liquidity level. in the research of maulida et al., (2018), it is explained that the current ratio is the ratio used in assessing the capability of a company to meet current liabilities using current assets. the study also explains that the current ratio has a strong ability to measure liquidity. a current ratio with a high value can explain that a company will be more efficient in managing current assets to meet its obligations. a high current ratio is an indicator that shows the company's capability to settle current liabilities using current assets and conversely a low current ratio is a sign that the company does not have the ability to use current assets to meet current liabilities (kazemian et al., 2017). a high current ratio value can mean that a company's liquidity is also getting higher, this is because the company has the ability to pay or is able to settle its current liabilities. a current ratio that is too high can also be considered bad for the company, because it can be assumed that a lot of funds will not be used productively. a high current ratio can also show that the company has excess cash compared to the level of need and vice versa, a fairly low current ratio means that the company is in liquidity problems. debt to asset ratio debt to asset ratio is a ratio that can be used to measure solvency, by assessing the ratio of total debt and total assets of the company. it can be interpreted that the debt to asset ratio is the size of a company's assets funded by debt (sumani, 2020). the higher value of the debt-to-asset ratio means that more of the company's assets are obtained through debt. the higher the liability of a company, the higher the interest on debt that must be paid by the company. debt to asset ratio is a debt ratio used in assessing the comparison between total debt and total assets. debt in question is all debt that the company includes current liabilities and non-current liabilities. creditors like a debt ratio with a low value, this is because with a low debt ratio, the possibility of debt repayment will be greater so that the risk of bad credit is lower. in practice, if the company has a large solvency ratio, there is a high possibility of losses caused by high debt, but there is also the possibility of an opportunity to get a large profit if the debt can be managed optimally. conversely, if the company has a low solvency ratio, it has a low risk of loss, but reduces the rate of return because most of the funding is only done with equity. management must manage the solvency ratio optimally, with optimal management, the company will get high returns even though it has high solvency. it should be noted that the high or low this ratio depends on the liabilities owned by the company, in addition to the assets owned by the company (equity). return on assets return on assets is a ratio that can be used in assessing the capability of a company to earn a profit (daryanto et al., 2019). the return on assets value is obtained by comparing net income with the total assets owned by the company. the increase in the value of the return on assets means that the company's jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 ability to earn profits is getting better, so this is good for the company. return on assets is a ratio that has a relationship to profitability, namely assessing the capability of a company in obtaining profits. determinants of return on assets are net income and total assets. the net profit in question is the last number in the profit/loss statement. net income is the difference between income and expenses. the assets in question are assets owned by the company to conduct business. total assets are all assets owned by a company in the form of tangible assets and intangible assets. tobin's q ratio tobin's q ratio is the ratio used to provide an assessment of a company. tobin's q is one of the ratios used to measure the value of the company, which is a measuring tool that defines the value of the company in tangible and intangible assets (dura, 2022:56). tobin's q value is obtained from the comparison between the market value and book value of liabilities with the book value of assets (mediyanti et al., 2021). the higher the tobin's q value, the more valuable the company is, it can also be interpreted that the company is in optimal condition. the advantage of tobin's q is that this ratio can be used in making investment decisions. tobin's q can show the value of a company so that the information can later be relevant to investment decisions that will be made. the company will increase the share capital if the tobin's q ratio is high, this is because if the tobin's q value is high, the company will be able to get a higher rate of return. the company's assessment using tobin's q not only conveys an assessment through the company's fundamentals, but also measures the size of a market assessing the company. tobin and brainard (1976) in their research on tobin's q are as follows: “one, the numerator, is the market valuations: the going price in the market for newly produced commodities. we believe that this ratio has considerable macro-economic significance and usefulness, as the nexus between financial markets and markets for goods and services” tobin's q is a calculation that explains the value of the company through tangible assets and intangible assets. the small value of tobin's q indicates that the cost of replacing the company's assets is greater than the market value of the company. a low tobin's q value is also a sign that the market values a company low. conversely, if the tobin's q value of a company is high, the company's value is greater than the book value of the company's assets. financial distress financial distress is a condition of a company that is in a condition of unstable financial performance that starts from the company's cash flow that is not smooth and the company's sales decline, resulting in a decrease in the company's profit. according to beaver (1966) in vianez et al., (2019) "stated that financial distress is based on the theoretical framework of cash flow models, by performing a comparison between water deposits and companies in financial difficulties, as resources that were draining away." financial distress is a condition of a company that is experiencing financial difficulties which is characterized by a negative net profit for two years and if no improvement efforts are made, bankruptcy can occur (sumani, 2020). from this explanation, it can be concluded that financial distress can be a signal for the company to immediately make improvements to prevent bankruptcy. conceptual framework the conceptual framework used in the study is as follows: figure 1. research conceptual framework the approach used in detecting financial difficulties that occur in a company is through financial ratio analysis. based on figure 1, this study will examine whether the variables current ratio, debt to asset ratio, return on assets and tobin's q can affect financial distress in a company. variable x1 is the current ratio, which is the variable used to determine the level of the company's current debt to the company's current assets. the debt to asset ratio in the financial distress (y) current ratio (x1) debt to asset ratio (x2) return on asset (x3) tobin’s q (x4) jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 x2 variable is used in assessing the company's debt level to the company's assets. in the x3 variable, the return on assets is used to see the level of the company's capability to earn a profit, then for the x4 variable, namely tobin's q ratio, the ratio used to measure the value of the company which is assessed from the stock price. the y variable in this research is financial distress, to measure the y variable, the altman z score is used in assessing the size of financial distress in the company. hypothesis based on empirical studies, theoretical studies, and the conceptual framework of the research, the hypotheses in this study are as follows: effect of current ratio on financial distress the current ratio is an indicator that shows that the company has the ability to settle the company's short-term liabilities with current assets and vice versa, a high current ratio is a sign that the company has the ability to use current assets to meet short-term liabilities (kazemian et al., 2017). the current ratio can be used to measure the company's liquidity level. the liquidity of a company can be used as a signal for users of financial statements. according to agustini and wirawati (2019), high liquidity is able to give a positive signal to investors and creditors, the company is considered to have the ability to meet current liabilities and is able to manage the company. signaling theory can be used to explain that the current ratio can provide a signal for users of financial statements, where the greater the value of the current ratio, the better the financial condition of a company. however, a liquidity ratio that is too high can also indicate that the company's working capital is not productive. unproductive working capital can result in costs that can reduce the company's profit and in the end can lead to the possibility of financial distress. the results of research by nurhamidah and kosasih (2021) explain that the current ratio has an influence on financial distress. research conducted by nurhidayah and rizqiyah (2017) also explains the same thing, namely the current ratio has an influence on financial distress. based on this explanation, the hypotheses used are: h1: current ratio has an effect on financial distress. effect of debt to asset ratio on financial distress according to iswari and nurcahyo (2020) financial theory generally states that the amount of debt in a company can cause a large interest expense, and can lead to financial distress. this condition is in accordance with one of the characteristics of the emergence of financial distress where the company is unable to fulfill its obligations. however, the study also explained that with the amount of debt, the company can get a high level of return from the debt management activities (high risk high return). with a high rate of return, the company can pay its obligations. in signaling theory the debt to asset ratio can be used as a signal to users of financial statements. the smaller debt to asset ratio can be a positive signal and vice versa where the high debt to asset ratio can be a negative signal for users of financial statements. the results of research from sumani (2020) show results where primary sector companies experience financial distress. financial distress in primary sector companies is triggered by a high debt to asset ratio. this condition was triggered by improper debt management, so the risk became higher without being balanced by a high rate of return. the results of the research of nurhayati et al., (2017) state that the debt to asset ratio has an impact on the occurrence of financial distress. this research is also supported by research that has been done by sasongko et al., (2021) which says that debt to assets has an impact on financial distress. from this explanation, the hypothesis used is: h2: debt to asset ratio has an effect on financial distress. effect of return on assets on financial distress return on assets is an indicator that shows the capability of all assets to generate profits (agustini & wirawati, 2019). when the company decides to allocate an asset, it is necessary to calculate the return that will be obtained. if the allocation of assets only produces low returns, it will result in a smaller return on assets. in signaling theory the company can provide a signal from the published financial statements, a positive signal of a company can be seen from the high return on assets value and conversely a low return on asset value can give a negative signal. it can be concluded that a large return on assets indicates that the financial condition is in a healthy condition. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 in research conducted by iswari and nurcahyo (2020) there is evidence that the return on assets ratio has an impact on the emergence of financial distress. this research is also supported by research conducted by silvia and yulistina (2022) which states that return on assets has an impact on financial distress. based on this explanation, the hypotheses used are: h3: return on assets can affect the state of financial distress. effect of tobin's q on financial distress tobin's q ratio is the ratio used in assessing a company. the higher tobin's q ratio is an indication of the higher incentives to build assets for speculative purposes (curto, 2020). a large tobin's q ratio indicates a company is considered valuable by the market, thus indicating the company is in an optimal condition and has good possibilities in the future. tobin's q ratio can be used as a signal for users of financial statements. the higher the value of tobin's q means the company is in a healthy condition. in signaling theory, the larger tobin's q value can give a positive signal and vice versa where the lower tobin's q value can give a negative signal about the condition of the company. the results of research conducted by kazemian et al., (2017) say that the tobin's q ratio has an influence on the occurrence of financial distress. in his research, it is also stated that the lower the tobin's q value, the greater the possibility of financial distress. from this explanation, the hypothesis used: h4: tobin's q can affect financial distress. research methods the approach used in this research is a quantitative approach which is measured using numbers and statistical procedures. what is meant by quantitative research is research based on the philosophy of positivism whose data analysis is quantitative/statistical (saragih et al., 2021). the research method used in this research is used to obtain information about financial distress. with this research, it will be known the relationship between the current ratio, return on assets, debt to assets, and tobins'q on financial distress in a company, especially those engaged in the hospitality service sector. population and sampling techniques the population used in this research is a public entity that runs in the field of hospitality services and is registered in the sharia securities list. the sampling technique used is purposive sampling technique. only entities that meet the requirements will be the sample in this study. with the condition that the company must submit a report for the first quarter of 2020 until the third quarter of 2021. the population in this study is as follows: table 1. hotel service sector companies no. company name code 1. pt. indonesian paradise property tbk inpp 2. pt. hotel sahid jaya international tbk shid 3. pt. jakarta setiabudi international tbk jspt 4. pt. red planet indonesia tbk pskt 5. pt. isiand concepts indonesia tbk icon 6. pt. hotel fitra international tbk fitt 7. pt. planet properindo jaya tbk plan 8. pt. andaian perkasa abadi tbk nasa 9. pt. graha lestari indah tbk development pgli 10 . pt. jakarta international hotelis & development tbk jihd 11 . pt. bukit uiuwatu viia tbk buva source: ojk board of commissioners decree no. kep-63/d.04/2020 regarding list of sharia securities of these companies that meet the sample criteria, only 8 companies, this is because there are several entities that do not meet the purposive sampling requirements, namely the company pt. bukit uiuwatu viia tbk. with buva code. after searching the company's website and also the website of the indonesian stock exchange, annual financial statements were not found for 2020. the company's status is still suspended based on the announcement of the temporary suspension of securities trading number peng-spt00006/ bei.pp1 /07-2021, peng-spt-00012 /bei.pp2/07-2021, and peng-spt00009/bei.pp3/07-2021 dated july 16, 2021. in addition, pt. planet properindo jaya tbk. with the plan code also did not meet the requirements because they did not submit financial statements for the first quarter to the third quarter of 2020 and pt. hotel sahid jaya international tbk. have not submitted their financial statements for the third quarter of 2021. of the eleven companies, only eight met the purposive sampling requirements. the total sample in each variable is 56 originating from the financial statements of the first quarter of 2020 to the third quarter of 2021. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 list of entities that have met the purposive sampling requirements are as follows: table 2. sample of hotel service sector companies no. company name code 1. pt. indonesian paradise property tbk inpp 2. pt. jakarta setiabudi international tbk jspt 3. pt. red planet indonesia tbk pskt 4. pt. isiand concepts indonesia tbk icon 5. pt. hotel fitra international tbk fitt 6. pt. andaian perkasa abadi tbk nasa 7. pt. graha lestari indah tbk development pgli 8. pt. jakarta international hotelis & development tbk jihd source: ojk board of commissioners decree no. kep-63/d.04/2020 regarding list of sharia securities hotel fitra international with the code fitt is a company established with the deed of establishment no. 34 dated january 24, 2014 and domiciled in majalengka, previously this company was named pt. hotel fitra syariah. on june 11, 2019, this company was officially listed on the indonesia stock exchange. hotel fitri international has a subsidiary, namely pt. bumi majalengka permai and pt. fitra amanah wisata. jakarta international hotel & development was established under the name pt. djakarta international hotel. the company was later changed to pt jakarta international hotel based on the deed of amendment to the articles of association no. 41 dated june 8, 1973. the company was established in 1969 to continue the construction of the borobudur inter-continental hotel (now known as hotel borobudur jakarta hbj), as well as to take over its ownership from the previous owner pt perhotelan banteng baru. hotel borobudur jakarta has a 19-storey building with 866 rooms that stands on a land area of 89,510 m 2. hotel borobudur jakarta also has serviced apartments "garden wing" with a capacity of 140 units. the company turned into a public company by listing shares on february 29, 1984 on the jakarta stock exchange with a total of 6,618,600 shares (42.02% of the issued and fully paid capital) with a par value of rp 1,000 per share and an offering price of rp 1,500. the company has a subsidiary under the name pt. danayasa arthatama, the company's business business is increasing in real estate (mall) along with the operation of pacific place jakarta (integration of pacific place, one pacific place offices, the ritzcarlton pacific place and pacific place residence apartment) in scbd in 2007. then in 2007, through pt pacific place jakarta (a subsidiary of pt danayasa arthatama) operates the ritz-carlton pacific place and the langham jakarta, which are the integration of three new office buildings, namely revenue tower, treasury tower and prosperity tower. pt jakarta setiabudi international tbk. was established based on the deed of establishment no. 4 dated july 2, 1975 the company is engaged in the real estate investment business which concentrates on property and hospitality. in 1998, the company became a public company after conducting an initial public offering on the indonesian stock exchange with the stock code jspt. subsequently, in 2002, the company conducted a limited public offering i in the context of pre-emptive rights. several hotels that are subsidiaries of jakarta setiabudi internasional are pt hotel investama realty, pt bangun hotel nusantara, pt hotel kemang realty, pt hotel yogya realty, pt hotel cikini realty, pt hotel pekalongan realty, pt bali nusadewata village, pt belitung resort internasional, and pt natuna resort international. companies that are sampled in this study are companies registered in the list of sharia securities. if the company is in the list of sharia securities, it can be ascertained that the hotel company has fulfilled the requirements not to carry out activities and types of business that are contrary to sharia principles, one of which is the sale of haram goods or services not because of the substance (haram li-ghairihi) stipulated by the national sharia council indonesian ulema council and goods or services that damage morals and are harmful. apart from the aspect of the object of business activity, the company must also meet financial requirements, namely total interest-based debt compared to total assets of not more than 45% and total interest income and other nonhalal income compared to total operating income and other income of not more than 45%. than 10%. types and sources of data the data that will be used in this research is the type of quantitative data. quantitative data used are financial data for 2020 and 2021 issued by companies which are available on jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 the company's website and the indonesian stock exchange website. the data sources used are secondary data sources from published financial reports. variable operationalization independent variable the independent variables in this research are the current financial ratio, debt to asset ratio, return on assets and tobin's q. the data will be obtained from secondary data from the company's financial statements. table 3. variable formula no. variable formula 1. current ratio 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 2. debt to asset ratio 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡 3. return on assets 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡 4. tobin's q 𝑀𝑎𝑟𝑘𝑒𝑡 𝑉𝑎𝑙𝑢𝑒 + 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝐴𝑠𝑠𝑒𝑡 market value = share 𝑥 𝑃𝑟𝑖𝑐𝑒 source: (mediyanti et al., 2021; ramadhanty & sukmaningrum, 2020; sumani, 2020) dependent variable dependent variable is financial distress which is proxied by altman z score. the data can be obtained through analysis of data from the company's financial statements. altman z score is used to determine the level of financial distress in a company. the first altman z score model was first coined by altman 1968. goh et al., (2021) in their research stated as follows: “altman's z-model is a simple bankruptcy prediction model, yet largely accurate, and can be used by individuals who have limited or no in-depth exposure to accounting or finance to assess business continuity of a firm.” based on this statement, it can be concluded that the financial distress assessment method using the altman z score is still relevant and accurate. altman z score formula quoted from the research of goh et al., (2021) as follows : z = 3.3 (x1) + 0.999 (x2) + 0.6 (x3) + 1.2 (x4) + 1.4 (x5) x1 = ebit/total assets x2 = net revenue/total assets x3 = market cap/total liabilities x4 = working capitali/total assets x5 = retained earnings/total assets according to goh et al., (2021) “a healthy z-score is usually more than 2.99, while a score between 1.80 and 2.99 is normally categorized as “undetermined” where the model could not determine the financial health status of a firm. "a healthy z-score is usually above 2.99, while a score of 1.80 to 2.99 is usually categorized as "undetermined" which cannot explain the company's financial health status." data analysis techniques data analysis techniques used include descriptive statistical analysis, classical assumption test, panel data regression analysis, and hypothesis testing. in data analysis, eviews 12 software is used , eviews 12 is used because the software is more appropriate when used for panel data model research when compared to other software such as spss and minitab, especially on macroeconomic data (santoso, 2018:7). according to juanda (2021) advantages of eviews compared to other econometric application programs is its completeness in providing equipment for time series econometrics and panel data processing. eviews analytical skills include synthetic data, financial analysis, cost analysis and forecasting (kusumaningtyas et al., 2022:11). descriptive statistics according to wahyuni (2020) descriptive statistics are activities to calculate the mean, median, mode, and standard deviation. descriptive statistics is a part of statistical science, which is related to data collection which aims to explain the data displayed numerically (data distribution, placement size, data deviation and frequency distribution) or in the form of graphics (graphs and diagrams/tables) to make it easier to understand. panel data regression analysis according to juanda (2021:6) the combination of time series and cross section data is panel data, ie data obtained from the cross section is examined by repeating with the same individual unit but at different times. panel data regression is a combination of data from cross section and time series data where there are individual/object differences in a time span. panel data regression equation model which is a combination of cross section data and time series data juanda (2021:178) as follows: jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 yit = α + β1x1it + β2x2it + … + βnxnit + e yit = dependent variable (dependent) α = constant β1 = regression coefficient xit = independent variable i = entity-i t = period-t panel data model estimation according to mire (2022:167) there are three estimation techniques for panel data regression models. the models are the common effect model, fixed effect, and random effect model. common effect model this technique is a simple technique for measuring models in the form of panel data (kusumaningtyas et al., 2022:20). measurements using the common effect model are carried out in a combined way between cross-section and time series but do not take into account differences in time and entities. the most commonly used approach is the ordinary least square (ols) method. the common effects model does not take into account differences in individual time and size, i.e. the behavior of the data between individuals is the same over different time periods. fixed effect model the effects model approach still uses the assumption that the intercept force for each individual is different but the gradient between individuals remains. in this technique, dummy variables are used to define interindividual differences in intercepts. intercept differences can be in the form of work culture, incentives, and managerial (kusumaningtyas et al., 2022:20). random effect model according to kusumaningtyas et al., (2022:20) the random effect model is suitable for data with high complexity. the approach used in the random effect is assumed that each company has a different intercept where the intercept is a random variable. this model is useful if the sampled companies are randomly selected and represent the population. data analysis stage in determining/determining the right method in using panel data, how many tests can be done. the selection or determination of the best estimation technique between the common effect, fixed effect, and random effect model is the chow test and the hausman test (mire, 2022:172). chow test is used to see whether panel data regression using the fixed effect model is more appropriate than panel data regression that does not use dummy variables/ common effect method. hausman test used in determining whether the fixed effect model is better to use than the random effect model. classical assumption test in order to achieve the objectives of this research, first it is necessary to carry out a classical assumption test, this test is used to provide certainty whether the panel data regression model used has met the requirements of normality, multicollinearity, and heteroscedasticity. if all the classical assumptions are met, it means that the analytical model can be used. classical assumption test was run to get reliable regression results. however, specifically in panel data regression research, only a few classical assumption tests are needed, namely multicollinearity and normality. normality test according to hadi ismanto and february (2021:59) the normality test is intended to determine whether the residuals are normally distributed, or in other words, the research data is normally distributed or not. the normality test is used to see whether the variables in the research are normally or not normally distributed. multicollinearity test the multicollinearity test is a classic assumption test used to see whether there is a correlation between independent variables. to perform the multicollinearity test, it can be done with the vif test and the correlation test (hadi ismanto & february, 2021:67). hypothesis test hypothesis testing is used in assessing the significance of the regression coefficients. therefore, the regression coefficient needs to be tested. there are several kinds of hypothesis testing on the regression coefficient, namely: t test according to hadi ismanto and february (2021:137) the t-test is used to check whether the parameters used to estimate the regression model equation are the right measurements. if the f-test is used to check the regression coefficients simultaneously, then the t-test is used to check the regression coefficients individually. if the probability value is less than 0.05, it can be said to have a jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 significant effect and vice versa if the probability value is higher than 0.05, it means that it has no effect. coefficient of determination the coefficient of determination is a coefficient that shows the variation in the impact of an independent variable on the dependent variable (hadi ismanto & february, 2021:138). the coefficient of determination or often referred to as goodness of fit is explained by r-square, which is one of the measurements needed in the regression model, this is because r-square is able to provide information on the feasibility of an estimated regression model. the value of the coefficient of determination shows the amount of variation in the dependent variable can be explained through the independent variable. results and discussion descriptive statistical analysis descriptive statistical analysis is used in research to produce a description of the data or descriptive. descriptive statistical analysis in this research displays the number of observations, max value , mean and standard deviation of each variable used in a research. the display of descriptive statistics on each research variable is presented in table 4 below: table 4. descriptive statistics no. variabel mean maximum minimum std. dev. 1. z 3.293 2.870 -0.336 5.076 2. roa -0.019 0.075 -0.139 0.036 3. q 1.081 2.465 0.425 0.468 4. dar 0.298 0.595 0.049 0.149 5. cr 2.068 8.500 0.168 1.775 source: data processed eviews 12, 2022 based on the results of descriptive statistics in table 4 the following conclusions are obtained: 1. financial distress variable has a min value of -0.336 and has a max value of 2.870 the average value (mean) with a size of 3.293 thus means that most hotel sector companies do not have serious financial problems. financial distress has a standard deviation of 5,076 the number is greater than the average value (mean) is 3,293. based on the data, it can be interpreted that the average value of financial distress as measured by the altman z score has a high deviation. 2. return on asset variable has a min value of -0.13 9 and has a max value of 0.075. the average number (mean) is -0.019. return on assets has a standard deviation of 5.06 3 , this figure is more than the average (mean) which is -0.019. based on these data, it can be concluded that the average return on assets variable has a high deviation rate. 3. tobin's q ratio variable has a min value of 0.425 and a max value of 2.465. the average number (mean) is 1,081 which indicates that the hotel sector company has a high number of companies, which is greater than the book number. tobin's q ratio has a standard deviation of 0.468, this number is smaller than the average (mean) of 1.081. based on these data, it can be interpreted that the average tobin's q ratio has a low deviation. 4. debt to asset variable has a min value of 0.049 and a max value of 0.595. the average number (mean) is 0.298. debt to assets has a standard deviation of 0.149, which is smaller than the average (mean) of 0.298. based on these numbers, it can be concluded that the average debt to asset has a low deviation. 5. current ratio variable has a min value of 0.168 and a max value of 8,500. the mean (mean) is 2.068. the current ratio has a standard deviation of 1.775, which is smaller than the mean (mean) of 2.068. based on these data, it can be interpreted that the average current ratio has a low deviation. test of panel data model estimation common effect model common effect model technique is a simple model used in estimating the measurement of the panel data model, through the use of the assumption that the intercept and slope are constant over time periods and units. (individual). common effect models are presented in the following table. table 5. common effect model no. variable coefficient std. error tstatistic prob. 1. c 1.445 1.236 1.168 0.248 2. roa -1.870 1.029 -1.816 0.075 3. q 2.413 0.731 3.298 0.002 4. dar -1.469 2.599 -5.652 0.000 5. cr 1.578 0.223 7.064 0.000 source: data processed eviews 12, 2022 fixed effect model fixed effect model approach uses the basic assumption that the intercept for each individual is different and the slope between individuals is the same. the fixed effect model is presented in the following table: jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 table 6. fixed effect model no. variable coefficient std. error tstatistic prob. 1. c 2.334 1.868 1.249 0.218 2. roa 2.990 6.360 0.470 0.641 3. q 6.474 0.744 8.700 0.000 4. dar -2.607 6.748 -3.864 0.000 5. cr 0.868 0.187 4.640 0.000 source: data processed eviews 12, 2022 random effect model the approach used in random effects uses the assumption that each research object has a different intercept and the intercept is a random/stochastic variable. the random effect model is presented in the following table: table 7. random effect model no. variable coefficient std. error tstatistic prob. 1. c 0.665 1.502 0.442 0.660 2. roa 2.625 6.259 0.419 0.677 3. q 5.656 0.659 8.580 0.000 4. dar -1.839 4.261 -4.317 0.000 5. cr 0.991 0.177 5.592 0.000 source: data processed eviews 12, 2022 data analysis test there are several tests to determine the best panel data regression model, whether common effect , fixed effect or random effect. the following are the tests carried out for the selection of panel data regression models. chow test this test is used to see whether the panel data regression technique using the fixed effect method will more precise than regression using the common effect method. table 8. chow test no. effects test statistic d.f. prob. 1. cross-section f 24.857 -7,44 0.000 2. cross-section chi-square 89.617 7 0.000 source: data processed eviews 12, 2022 if the p-value < 0.05 then the fixed effects model is more appropriate to use than the common effects (kusumaningtyas et al., 2022:105). based on table 8, it can be seen that the probability of showing the number 0.000 means that the probability value is less than 0.05 and it can be concluded that the fixed effect model is the right model. the model chosen is fixed effect, so it is necessary to test hausman to ascertain whether the fixed effect model is more appropriate than the random effect method model. hausman test the hausman test is a test method to ensure that the fixed effect model is more appropriate than the random effect model. table 9. hausman test no. test summary chi-sq. statistic chisq. d.f. prob. 1. cross-section random 9.293 4 0.054 source: data processed eviews 12, 2022 conclusions in the hausman test are used as guidelines if the probability value > 0.05 means that a better model is used, namely the random effect model. if the probability value is < 0.05, it means that the most appropriate model to use is the fixed effect model (kusumaningtyas et al., 2022:105). the output results from the hausman test table above show the probability value of the hausman test of 0.05 4 which is greater than 0.05 so that it can be concluded that the most appropriate model used in this study is the random effect model rather than the fixed effect model. the method chosen is random effect, it is necessary to test the lagrange multiplier to determine whether the random effect method is more appropriate than regression using the common effects method. lagrange multiplier test this test is used to determine whether the panel data regression technique using the random effect method will more precise than regression using the common effect method. table 10. lagrange multiplier test no. test hypothesis crosssection time both 1. breuschpagan 48.001 0.104 48.106 2. (0.000) (0.746) (0.000) 3. honda 6.928 -0.323 4.671 4. (0.000) (0.626) (0.000) 5. king-wu 6.928 -0.323 4.469 6. (0.000) (0.626) (0.000) jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 7. standardized honda 10.421 -0.085 3.077 8. (0.000) (0.533) (0.001) 9. standardized king-wu 10.421 -0.084 2.792 10. (0.000) (0.53) (0.002) 11. gourieroux, et al. --48.001 12. (0.000) source: data processed eviews 12, 2022 if the breush-pagan p-value < 0.05, it means that the random effects model is more appropriate than regression using the common effect method (kusumaningtyas et al., 2022:105). the output results from the lagrange multiplier test table above show the breush-pagan probability value of = 0.000 which is smaller than 0.05 so that it can be concluded that the most appropriate model used in this study is the random effect model rather than the common effect model. classical assumption test normality test normality test is one of the classical assumption tests used in determining a dependent and independent variable having normal or abnormal distribution observations. the results of the normality test can be seen in the following figure: 0 2 4 6 8 10 -4 -2 0 2 4 6 seri es : standardi zed res iduals sa mpl e 2020q1 2021q3 obs e rva ti ons 56 me a n 2.04e -15 me di a n 1.146068 ma xi mum 6.600457 mi ni mum -5.105303 std. de v. 2.683586 ske wne s s -0.185895 kurtos i s 2.028657 ja rque -be ra 2.524048 proba bi l i ty 0.283080 figure 2. normality test source: data processed eviews 12, 2022 the normality test in this research uses the jarque-fall method. the data can be said to be normal if the p-value is > 0.05 (kusumaningtyas et al., 2022:64). based on figure 2, it can be seen that the results of the normality test show that the probability value shows the number 0, 283 and the number is greater than the number 0.05, so from the value 0, 283 > 0.05, it can be concluded that the data is normally distributed. according to pallant (2007) in viana et al., (2021) the data “pallant states that studies with a large sample of more than 40 samples can ignore the problem of normality because a large sample can follow the population distribution." the sample used in this study amounted to 56 and the jarque fallow value was above 0.05, so it can be concluded that the data is normal. multicollinearity test in multicollinearity testing, it is intended to explain that in the regression model there is a correlation between independent variables. the right regression model should not have a correlation between the independent variables. the variable has multicollinearity problems if the correlation between x1 and x2 exceeds 0.08 (kusumaningtyas et al., 2022:68). the results of the multicollinearity test are presented in the following table. table 11. muiticoiiinearity test no. z roa q dar cr 1. z 1 0.206 0.438 0.691 0.797 2. roa 0.206 1 -0.199 0.428 0.359 3. q 0.438 -0.199 1 0.089 0.273 4. dar -0.691 -0.428 -0.089 1 -0.539 5. cr 0.797 0.359 0.273 0.539 1 source: data processed eviews 12, 2022 based on the results of the multicollinearity test above, it shows that there is no large correlation value between the independent variables, namely with a value that does not exceed 0.8. with a value below 0.8, it can be concluded that from these results there is no data that has multicollinearity. panel data regression analysis based on the panel data regression model using the eviews program ( common effect model, fixed effect model, and random effect model ) and the tests carried out ( chow test , hausman test , and lagrange multiplier test ) it can be concluded that the most appropriate regression model is used for this research is a random effect model. the results of the fixed effect model panel data regression can be seen in the following table: table 12. random effect model no. variable coefficient std. error tstatistic prob. 1. c 0.665 1.502 0.442 0.660 2. roa 2.625 6.259 0.419 0.677 3. q 5.656 0.659 8.580 0.000 jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 4. dar -1.839 4.261 -4.317 0.000 5. cr 0.991 0.177 5.592 0.000 source: data processed eviews 12, 2022 research using panel data regression was conducted to see the impact of the independent variable on the dependent variable. the results of panel data regression in the fixed effect model show the results of the variable current ratio, debt to asset ratio, return on assets and tobin's q on financial distress , which in this case financial distress is measured using the altman z score. the panel data regression equation is as follows: z = 0.665 + 2,625roa + 5.656q + (1.839)dar + 0.991cr + e from the regression can be explained as follows: 1. constant coefficient of 0.665 and positive value, it can be concluded that y = z score will have a value of 0.665 if the current ratio, debt to asset ratio, return on assets and tobin's q each have a value of 0. 2. variable return on assets (roa) has a regression coefficient of 2.625 states that each addition of the return on asset variable is 1%, and it is assumed that other variables are the same, it can increase the z score by 2.625. 3. the regression coefficient of the q ratio shows a number of 5.656, which means that every 1% increase in the q ratio variable, and it is assumed that other variables are fixed, it will increase the z score by 5,656. 4. the variable debt to asset ratio (dar) has a regression coefficient of -1.839 that every increase in the debt to asset ratio variable is 1%, and it is assumed that other variables are fixed, it will reduce the z score by -1,839. 5. current ratio regression coefficient has a number of 0.991 , which means that each addition of the current ratio variable is 1%, assuming other variables are fixed, it will increase the z score by 0.991. hypothesis test t test t test is used in regression testing. the results of the t-test test are concluded using the t-statistical value and probability value, whether it is above 0.05, which means that the independent variable has no effect on the dependent variable. if the test number shows a probability number below 0.05 which means that the independent variable has an influence on the dependent variable. based on table 4.12 the t hypothesis test obtained the following research results: 1. first hypothesis (h1) current ratio has an influence on the state of financial distress. based on the results of the current ratio regression , it produces a probability value of 0.000 < 0.05 and the t statistic value is 5. 592. the current ratio variable has a probability value below 0.05 which means that the current ratio has an influence on financial distress. 2. the second hypothesis (h2) debt to asset ratio has an effect on financial distress. based on the results of the debt to asset ratio regression, it produces a probability value of 0.00 0 < 0.05 and the t statistic value is -4.3 17. from these data, it can be concluded that the debt to asset ratio has a negative effect on financial distress. 3. the third hypothesis (h3) returns on assets can affect the state of financial distress. based on the results of the regression return on assets produces a probability value of 0.6 77 > 0.05 and a statistical t value of 0.419. a value greater than 0.05 can be concluded that the return on assets has no effect on financial distress. 4. the fourth hypothesis (h4) tobin's q has an influence on financial distress. based on the results of tobin's q regression, it produces a probability value of 0.000 < 0.05 and the t statistic value is 8. 580. based on these data, it can be concluded that tobin's q has an influence on financial distress. coefficient of determination test testing the coefficient of determination / rsquare is a number that shows the size of the capability of the independent variable to explain the dependent variable. the magnitude of the value of r 2 is between zero and one (0 < r < 1). if the value shows a number that is getting closer to one, then the regression model can be said to be good. based on table 4.10 the value is 0.795 , it means that 79.5 % financial distress can be explained through the variables current ratio, debt to asset ratio, return on assets and tobin's q. while 20 0. the other 5 % is explained by variables other than this research model. discussion effect current ratio to financial distress ratio is an indicator that shows the company's capability to settle short-term liabilities using current assets (kazemian et al., 2017). the results of this research show that h1 is accepted, namely the current ratio has a positive influence on financial distress. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 these results are supported by a probability value of 0.000 < 0.05 and the t statistic value is 5. 592. these results are consistent with the research of nurhamidah and kosasih (2021) which shows that the current ratio has an effect on financial distress. the study also explained that the influence of the current ratio on financial distress means that the smaller the value of the current ratio , the greater the possibility of financial distress. this study is in line with the findings of nurhidayah and rizqiyah (2017) which show that liquidity measured using the current ratio has an effect on financial distress. the influential results in this study are because the company does not have enough funds to meet its obligations, so it takes a long time to liquidate other assets. the current ratio is one way to assess the level of liquidity of a company and the liquidation of a company can be used as a signal for users of financial statements. high liquidity can give a positive signal to investors and creditors, with high liquidity the company is considered to have the ability to meet current obligations and is capable of managing the company (agustini & wirawati, 2019). signaling theory is used to explain that the current ratio can provide a signal for users of financial statements, where the higher the current ratio value means the better the financial condition of a company. influence means that the higher the current ratio , the higher the z score, which means that the possibility of financial distress will be lower. the current ratio tall is a good indicator for the company. a hotel company with a high current ratio means that it has the ability to meet its current liabilities so that later it can reduce the occurrence of financial distress. influence debt to asset ratio against financial distress the amount of debt in a company can lead to high interest expenses, and can lead to financial distress (iswari & nurcahyo, 2020). one of the characteristics of the emergence of financial distress namely a condition where the company does not have the ability to settle its obligations. the debt to asset ratio (dar) is a comparison between total debt and total assets and is used in assessing solvency, in other words, the amount of company assets financed by debt (sumani, 2020). the results of this study show that h 2 is accepted, namely the debt to asset ratio has a negative effect on the emergence of financial distress, this is evidenced by the sig value of 0.00 0 < 0.05 and the t statistic value is -4.3 17. with signaling theory the debt to asset ratio is used as a signal to users of financial statements. the smaller the value of the debt to asset ratio can be a positive signal, this is because the value of the debt to asset ratio will be better the lower it is. debt to assets is a ratio that assesses a company 's assets financed by debt, so if the debt to asset ratio is higher, it means that more assets are financed through debt. this study is consistent with the findings of nurhayati et al., (2017) which shows that the debt to asset ratio has an effect on financial distress. the study also explained that the higher the value of the debt to asset ratio , the greater the company experiencing financial distress. the cause of financial difficulties is the increasing burden of the company in settling its liabilities and interest. the research results of sasongko et al. (2021) also show that the debt to asset ratio has an influence on financial distress. in this study, it is explained that if the company's financing is mostly sourced from debt, then the company will have difficulty paying future liabilities. the difficulty is due to the greater the amount of debt than assets. the negative effect on the emergence of financial distress occurs when the higher the debt owned by a company. the higher the debt, but not followed by higher income, the company will find it difficult to pay its obligations, thereby leading the company to a state of financial distress. the decline in hotel company revenues occurred as a result of the covid-19 pandemic resulting in a decrease in the company 's ability to pay debts and interest and bringing the company closer to financial distress. having a negative effect means the lower the debt to asset ratio , the higher the z score , which means the healthier the company's finances are. influence return on assets against financial distress return on assets is an indicator that shows the capability of all assets to generate profits (agustini & wirawati, 2019). the results of the study show that return on assets has no effect on financial distress , it is evidenced by the probability value of 0.6 77 > 0.05 and the t statistic value of 0.419. with a significance value above 0.05, it can be concluded that the research results reject h 3. the results of the study prove that return on assets has no effect on financial distress. this research contradicts jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 the research conducted by iswari and nurcahyo (2020) , which shows that there is evidence that the return on assets ratio has an influence on the incidence of financial distress. low profitability is a signal of the company's limitations in converting revenue streams into profits, so the higher the profitability, the lower the possibility of financial distress (kazemian et al., 2017). this condition is because the high return on assets has an indication that the financial condition is in a healthy condition. return on assets is a ratio used to assess the ability of a company to earn a profit (daryanto et al., 2019). the results of this study are in line with research maulana and suhartati (2022) who show that return on assets has no effect on financial distress. in signaling theory , the company can provide signals from the published financial statements. one of the positive signals of a company can be seen from the value of high return on assets , but based on research results that have no effect on financial distress , if the return on assets is high, the positive signal obtained is only in the form of improved profitability. research conducted by peluni et al., ( 2020) shows the same result, namely that return on assets has no effect on financial distress. in the study, it was stated that if the company is able to manage assets effectively and efficiently, then the company will get optimal profits and will not cause financial distress. basically roa is a company's strength in generating profits through empowering the company's assets, properly a high roa ratio should be followed by a decrease in financial distress. with a relationship that has no effect in this study, it can be explained that the higher/lower roa will not have an impact on financial distress. as long as the company has sufficient capital to bear the risks, sufficient liquidity, and good cost management, the roa ratio will not have a significant impact on financial distress. therefore, the high and low roa of hotel companies will not affect the occurrence of financial distress. influence tobin's q against financial distress tobin's q ratio is a ratio used to assess the value of a company. the higher tobin's q ratio is an indication of the higher incentives to build assets for speculative purposes (curto, 2020). the results of panel data regression analysis show a probability value of 0.00 0 < 0.05 and the t statistic value is 8. 580. based on this value, it can be concluded that h 4 is accepted, namely tobin's q ratio has an effect on financial distress. the results of this study are in accordance with research conducted by kazemian et al., ( 2017) which states that the tobin's q ratio has a significant relationship to the occurrence of financial distress. tobin's q ratio can be used as a signal for users of financial statements. the higher the value of tobin's q means the company is in a healthy condition. in signaling theory , a higher tobin's q value can give a positive signal. research conducted by maslachah et al., (2017) shows that tobin's q has an effect on financial distress. the study also explained that if the company has a high investment opportunity as measured by the tobin's q ratio, where the stock is highly valued by the market, it can affect the company's sales growth and the company's equity will be valued higher. this study is consistent with the findings of valentina and tjhai (2020) which state that company performance as measured by tobin's q has an influence on financial distress. in this study it is also stated that high company performance will be able to meet the expectations of shareholders who hope to make profits. high profits will also be able to attract new investors to invest in the company. tobin's q ratio is a ratio that becomes a benchmark for the company's value. based on the test results, this ratio has a positive effect, which means that the higher the tobin's q value, the higher the z score , which means the healthier the company's finances and the lower the possibility of financial distress. conclusion this study aims to determine the current ratio, debt to asset ratio, return on assets and tobin's q in influencing the incidence of financial distress. which is the financial distress variable measured using the altman z score. the research was conducted on hotel sector companies listed in the sharia securities list. the research data is obtained from secondary data in the form of financial statements for the first quarter of 2020 to the third quarter of 2021. based on the results of the regression test, it can be concluded that the current ratio, debt to asset ratio, and tobin's q ratio have an effect on financial distress , while return on assets has no effect on financial distress. jurnal akuntansi, manajemen dan ekonomi , vol. 24, no. 4, 2022 pp. 34-52 limitations the study was conducted to determine the current ratio, debt to asset ratio, return on assets and tobin's q in influencing the incidence of financial distress. observations were made for hotel sector companies during the covid-19 pandemic. a small number of observations in a short time were obtained only in the financial statements of 2020 and 2021. the limitations in this study are as follows: 1. the observation uses quarterly/quarterly financial reports, so the accuracy of the data is inadequate because the quarterly financial statements have not been audited/ unaudited. 2. observations using quarterly/quarterly financial reports, the capital expenditures issued by the company have not received optimal results and on the other hand the next quarter's financial statements have been issued. 3. purposive sampling requirement because the company was suspended from the indonesia stock exchange as a result of not submitting financial statements. 4. at the time this research was conducted, the company had not published its financial statements for the fourth quarter of 2021 because it was still in the process of being produced, so that the financial statements were only limited to the financial statements of the third quarter of 2021. suggestions based on the conclusions of the research above, the authors have several suggestions, namely: 1. it is hoped that further research can use audited financial statements so that the research data is more valid. 2. it is hoped that further research will be able to use a different sample. 3. it is hoped that further research will use other indicators apart from the current ratio, debt to asset ratio, return on assets and tobin's q. 4. it is hoped that further research can use a longer period than this research, in order to obtain more valid data and also be able to describe more precise results. research implications the implications that the author can give with this research are as follows: 1. for the company, it is hoped that the results of this study can be used as an analysis in anticipating the occurrence of financial distress. 2. for science, this research can be used as a reference for other researchers who will conduct research related to the title that the author is researching. 3. for practitioners, it is hoped that it can be used as material for analysis by investors and stakeholders in assessing the financial distress of a company. references agustini, nw, & wirawati, ngp (2019). the effect of financial ratios on financial 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