Jurnal REKSA: Rekayasa Keuangan, Syariah dan Audit

The Effect of Board Characteristics and Media Exposure on Water Disclosure

Aisyah Risqi Wardani — 2026-09-08

This study examines the influence of board characteristics and media exposure on water disclosure among 204 observations from mining companies on the IDX between 2021 and 2024. Using multiple regression, the results show that board size and media exposure positively impact water disclosure, reflecting collective capacity and strategic responses to public pressure. Conversely, gender diversity and board independence yield negative effects. For independent directors, this is driven by IDX Regulation No. I-A (2018), which abolished mandatory independent directors, leading to tokenistic roles focused on administrative compliance rather than substantive oversight. Furthermore, meeting frequency is insignificant as agendas are dominated by routine financial matters. Robustness checks using the 1% winsorizing technique confirm that the model remains consistent and insensitive to extreme data. This study contributes to the water disclosure literature by demonstrating that board characteristics do not uniformly enhance corporate water transparency and that substantive board capacity and external stakeholder pressure are more important than the mere presence of governance mechanisms. The study concludes that firms must move beyond symbolic representation and address institutional gaps to achieve genuine water accountability.

Firm’s Life Cycle and Tax Avoidance: Longitudinal Evidence on the Mediating Role of Financial Distress

Indarti Diah Palupi — 2026-09-08

This study investigates the effect of the life cycle on tax avoidance, with a particular focus on the mediating role of financial distress. It uses a sample of 9,773 firm-years and longitudinal data on firms listed on the Indonesia Stock Exchange from 2007 to 2024. It obtains the data from the Refinitiv database. This study implements three estimators: fixed-effects panel data (stepwise test), Structural Equation Modeling (SEM) (simultaneous and mediating effect tests), and the Generalized Method of Moments with instrumental variables (GMM IV) to address endogeneity. These results indicate the effect of life cycle on tax avoidance and the mediating effect of financial distress on that relationship. This effect appears in the introductory and declining firms. Conversely, growth and mature firms are associated with lower financial distress and lower tax avoidance. Thus, financial distress does not mediate the relationship in either stage. This study is one of the few that compares the direct effect of the life cycle on tax avoidance with the mediating effect of financial distress. It contributes to the literature by establishing a systematic framework for how corporate evolution can influence tax avoidance practices, both directly and mediated by financial distress.

Corporate Governance and Bank Stability through Different Pathways

Revalina Revalina — 2026-09-08

This study examines the relationship between corporate governance and bank stability, focusing on profitability as a mediator and the moderating effect of the COVID-19 crisis in Indonesian banking. Using 180 firm-year observations from banks listed on the Indonesia Stock Exchange (IDX) over 2019–2024, the study applies panel data regression, bootstrap mediation analysis, and interaction analysis. The results show that board size and board independence significantly and positively affect bank stability, whereas audit committee size has no significant direct effect. Audit committee size, however, significantly and positively affects profitability, while board size and board independence do not. Profitability in turn significantly and positively affects bank stability. The interaction between profitability and the COVID-19 crisis is positive and significant, indicating that the crisis strengthened the profitability–stability relationship. The mediation analysis shows that profitability mediates the relationship between audit committee size and bank stability, but not the relationships involving board size or board independence. These findings highlight the importance of board monitoring, audit committee functions, and profitability in strengthening bank stability under economic uncertainty. The study contributes to the literature in three ways. First, it shows that governance mechanisms work through different pathways rather than a single uniform channel. Second, it provides new evidence on how a crisis moderates the profitability–stability nexus. Third, it offers context-specific evidence from Indonesian listed banks, thereby extending governance–stability theory to emerging markets.

Bridging Ethics, Digital Transformation, and Control Systems: The Role of Ethical Climate in SME Fraud Prevention

Yasya Rahmanda — 2025-09-30

This study aims to examine the mediating role of ethical climate in the relationship between ethical orientation, digital transformation, management control systems (MCS), and fraud prevention in small and medium-sized enterprises (SMEs). This study employs an explanatory quantitative design with primary data collected from SME owners and managers in the Special Region of Yogyakarta through purposive sampling. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS 4. The results indicate that idealism, digital transformation, and MCS significantly influence the enhancement of the ethical climate, which in turn strengthens fraud prevention. An ethical climate was found to fully mediate the effect of digital transformation and partially mediate the effects of idealism and SPM, while no mediating effect was found for relativism. These findings indicate that the effectiveness of fraud prevention in SMEs depends not only on formal control systems and the adoption of digital technology but also on the internalization of ethical values within the organizational climate. This study contributes by affirming the central role of the ethical climate as a mediating mechanism that links individual ethics and organizational governance in mitigating fraud risk.

Local Wisdom and Entrepreneurial Leadership on Competitive Advantage and MSME Performance

Siti Rodiah — 2025-09-30

Creative economy MSMEs play an important role in generating economic activity, creating employment opportunities, and sustaining cultural values. However, these enterprises face challenges in maintaining and improving performance. This study examines the relationships between local wisdom, entrepreneurial leadership, competitive advantage, and MSME performance, with competitive advantage as a mediating variable. The study involved 137 creative economy MSME operators in the culinary, handicraft, and herbal product sectors. Data were analyzed using PLS-SEM with SmartPLS. The results show that local wisdom is positively associated with competitive advantage and MSME performance, while entrepreneurial leadership is positively associated with competitive advantage but has no significant direct relationship with MSME performance. Competitive advantage is positively associated with MSME performance. The mediation analysis indicates that competitive advantage exhibits complementary partial mediation in the relationship between local wisdom and MSME performance, while it exhibits indirect-only mediation in the relationship between entrepreneurial leadership and MSME performance. These findings suggest that competitive advantage represents an important pathway linking culturally embedded resources and entrepreneurial leadership with MSME performance. The study contributes to the Resource-Based View and Dynamic Capabilities literature by demonstrating that local wisdom and entrepreneurial leadership may be associated with MSME performance through different pathways involving competitive advantage.

Factors Affecting the Intention to Use Sharia FinTech: The Mediating Role of Islamic Financial Literacy

Hesniati Hesniati — 2025-09-30

The limited adoption of Sharia FinTech shows the need to better understand what influences users’ intention to use these services. r. Survey data were obtained from 339 individuals in Indonesia using purposive sampling. The data were examined using Partial Least Squares-Structural Equation Modelling (PLS-SEM). The findings show that perceived trust significantly affects intention, while religiosity, Sharia compliance, and perceived risk do not have significant direct effects. All four factors significantly affect Islamic financial literacy, which then positively affects intention. Islamic financial literacy shows indirect-only mediation for religiosity, Sharia compliance, and perceived risk, while perceived trust shows complementary mediation. Theoretically, this study extends the Theory of Planned Behavior by showing that Islamic financial literacy helps explain how users’ beliefs and perceptions influence adoption intention. Practically, the findings highlight the importance of strengthening user trust and Islamic financial understanding to support Sharia FinTech adoption.