Volume 10 Number 2, 2020

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Adverse Selection and Moral Hazard: The Evidence on Business Lending of Micro and Small Enterprises in Banyumas and Purbalingga Working Areas (Agus Arifin, Rakhmat Priyono)

This research aims to investigate the presence of asymmetric information within business lending process between bank and micro and small enterprises. The two common conditions arise from this case are adverse selection and moral hazard. The data were collected from banks and debtors-entrepreneurs by simple random sampling method in Banyumas and Purbalingga. Adverse selection was detected by setting specific questions to debtors about the possibility of mistakes within proposal screening. Moral hazard was analyzed by rating scale method. Hereafter, the effect of adverse selection on moral hazard was analyzed by regressions. This research finds that (1) adverse selection was indicated during proposal screening, (2) most of debtors have medium-high level of moral hazard, (3) adverse selection effects on moral hazard significantly.

Analyzing Students’ Loyalty through Service Quality, Commitment, and Reputation (Tusyanah Tusyanah, Ashomatul Fadlilah, Muhammad Khafid)

The high number of institutions of higher education makes tighter competition to get prospective students. One of prospective students to choose universities is influenced by references. The purpose of this study is to analyze service quality, commitment and reputation as the determinants of students’ loyalty. The population of this research were 5th semester students of the Faculty of Economics, Universitas Negeri Semarang, they were 874 students. The data were analyzed by Structural Equation Model (SEM) with AMOS 22.0. The results of the study showed that the research model meets the criteria of goodness of fit or the model is feasible. The effect magnitude of service quality on reputation was 46%. Then, the effect of commitment on reputation was 36.9%. Furthermore, the effects of reputation, commitment, and service quality on students’ loyalty were 69.8%, 72.8%, and 58.3%. However, service quality and commitment had indirect effect on students’ loyalty through reputation.

Spatial Interaction Pattern of Local Workers in Central Java Province by using the Euclidean Distance Approach (Caroline Caroline, Etty Puji Lestari, Ceacilia  Srimindarti, Dyah Kusumawati, Achmad Nuruddin Safriandono)

The pattern of spatial interaction of labor in Central Java Province occurred in 5 regions, namely Pemalang Regency, and Sukoharjo Regency which experienced changes in the pattern of spatial interaction of labor. Originally in 2010 the city of Semarang had characteristics with low workforce interacting spatially with regions that had high characteristics, but it appeared in 2017 the city of Semarang with characteristics of high workforce interacting spatially with areas of high labor. Purbalingga Regency, and Kebumen Regency which experienced changes in the pattern of spatial interaction of labor. Initially in 2010, Purbalingga Regency and Kebumen Regency had characteristics with low labor spatially interacting with regions that had low characteristics, but it appeared in 2017 Purbalingga District, and Kebumen District with high labor characteristics interacting spatially with areas with low labor.

The Effect of Abusive Supervision on Employee Silence: Mediation Mechanism (S. Martono, Nury Ariani Wulansari, Siti Ridloah, Moh Khoiruddin)

This study explains the influence of poor supervision and leadership-member transition on the choices that exist in the company through emotional participation, organizational justice, and organizational political perceptions as mediating variables. The research population is employees of textile and garment companies that are growing rapidly. The sampling method uses multi-stage random sampling with a sample of 199 respondents. Data collection methods using observation, interviews, and questionnaires using a Likert scale. This research analysis method uses WarpPLS 6.0 software. The results showed that emotional exhaustion, organizational justice, and organizational political perceptions can mediate the relationship between poor supervision on the choice of employee reticence. However, organizational political perceptions cannot mediate the leader-member exchange relationship on the choice of reticence. It can be concluded that emotional fatigue, organizational justice, and organizational political perception can act as mediations, while organizational political perception cannot mediate the leader-member exchange relationship on the choice of reticence.

Amil Behavior Utilizing Productive Zakat for Alleviate Poverty and Empowerment of Mustahiq to Become Muzakki in Central Java Indonesia (Asrori, Ahmad Rofiq, Anis Chariri)

Zakat as one of the five pillars of Islam which has material and social dimensions is obligatory worship for every capable Muslim. In the life of the Muslim community zakat becomes Islamic philanthropy which is very important to the zakat payer (muzakki) and the zakat recipient (mustahiq). The purpose of this study is to obtain an empirical explanation of how behavior of amil (zakat manager) utilizing productive zakat for poverty alleviation and empowerment of mustahiq to become muzakki. The results of this study state that behavior of amil utilizing productive zakat for poverty alleviation and empowerment of mustahiq to become muzakki is determined by attitudes, subjective norms and productive zakat literacy. The indirect effects of attitudes on the behavior of amil utilizing productive zakat trough literacy is higher than the direct effects. It is recommended that the productive zakat literacy of amil needs to be improved.

Environmental Quality and Regional Autonomy in Indonesia (Amin Pujiati, Shanty Oktavilia, Fafurida, Indah Fajarini and Nadia Damayanti)

This study aims to explore economic conditions toward environmental quality, before and after the policy of regional autonomy in Indonesia. This paper is analyzed using regression, the influence of per capita income, Gross Domestic Product (GDP) of the agricultural, industrial, and manufacturing sectors on the quality of environment in Indonesia for the period of 1960-2016. The study uses time-series data derived from the publication of World Bank Key Indicators and dummy policy variables before and after regional autonomy, namely the value of 0 before 2001 and the value of 1 after 2001. The results of the study state that per capita income, GDP of the industrial sector, and GDP of the manufacturing sector negatively affect the quality of the environment in Indonesia. The regression of the result of policy variable shows the difference in environmental quality in Indonesia, pre and post the regional implementation of autonomy in Indonesia.  

The Role of Spiritual Intelligence in Moderating the Effect of Compensation Suitability, Apparatus Morality and Organizational Ethical Culture on Accounting Fraud Tendency (Kardiyem, Fadhilah Mahanani Saputri, Angga Pandu Wijaya)

This study aimed to explore the tendency of accounting fraud committed by the village apparatus in Weru District in relation to the role of spiritual intelligence in moderating the effect of compensation suitability, apparatus morality, and organizational ethical culture. This study only measures the factors that cause accounting fraud trends in the form of appropriateness of compensation, apparatus morality and organizational ethical culture in village fund management (Empirical study in Weru District Sukoharjo) with spiritual intelligence as a moderating variable. The population of this study was 145 village officials in Weru Subdistrict. This study used a purposive sampling technique with a total of 52 respondents. This study used a quantitative approach. The collecting data technique used a questionnaire. The data analysis technique used descriptive analysis and moderation regression with an absolute difference test.

Analysis of Monetary Policy Transmission Mechanism for Financing Line in Monetary System in Indonesia (Dewi Fatmasari, Waridin, Akhmad Syakir Kurnia, Ade Sunardi)

The main problem that needs to be addressed in depth with regard to monetary policy is whether its process has a positive relationship to the economy. This study is intended to investigate monetary policy transmission mechanism for financing line in a dual monetary system in Indonesia. The results of the Granger Causality test revealed that the relationship pattern within variables in the monetary policy transmission mechanism for financing line cannot be clearly identified. In addition, the Impulse response function test proved that the Consumer Price Index (CPI) responds to other shocks. As a whole, CPI responds positively to the shock of Bank Indonesia Sharia Certificate, Islamic interbank money market, and financing. On the contrary, Consumer price index responds negatively to the shock of Third Party Funds and Bank Indonesia sharia deposit facility. Meanwhile, the Variance Decomposition test proved that Islamic Banking Financing contributes to the final goal of the policy. Yet, its contribution is relatively small, which is 0.04%.

Universities Academic Service Quality to Student Satisfaction (Kardoyo, Lola Kurnia Pitaloka, Bayu Bagas Hapsoro)

Higher education business offering services in the field of education where the main focus on the service business that runs in the services sector. This study used the exploratory methods and used questionnaire method for the collection of data. The populations in this research were all students active in the Faculty of Economics, Universitas Negeri Semarang. The samples in this study using stratified random sampling, with the number of samples obtained for this research were 360 ​​students. This study answered three hypotheses that have been formulated and are accepted. The quality of academic services has a considerable influence on student satisfaction and confidence variables into partial intervening variables in this study due to the variable X has been able to influence the variable Y without having given intermediary other variables. However, in this study revealed some indicators that should be deleted, because it is not relevant to the situation of students in Indonesia.