Agency Theory

This one hope you can understand about agency theory:
Merrill's Thain seeking 2008 bonus of $10 million: report
from Reuters

Merrill Lynch & Co Chief Executive John Thain has suggested to directors that he get a 2008 bonus of as much as $10 million, but the battered company's compensation committee is resisting his request, the Wall Street Journal said, citing people familiar with the situation.

The compensation committee has not reached a decision, but is leaning toward denying Thain and other senior executives bonuses for this year, the people told the paper.

Merrill could not be immediately reached for comment.

Shareholders on Friday approved Bank of America Corp's takeover of Merrill, a deal fraught with risk but one that would create a banking giant with a leading position in almost every major area of the financial system.

Merrill was arguably saved from extinction when it agreed to merge on September 15, an hour before Lehman Brothers Holdings Inc filed for bankruptcy. The fear was that Merrill could be next if shareholders and trading partners fled, as many did at Lehman and the former Bear Stearns Cos.

Thain has said he deserves a bonus because he helped avert what could have been a much larger crisis at the firm, people familiar with his thinking told the WSJ.

Members of Merrill's compensation committee agree with Thain that the takeover is in shareholders' best interest, but believe it would be foolish to ignore strong public sentiment against large compensation packages, the paper said, citing people familiar with their thinking.

Committee members are also weighing the fact that other Wall Street firms, including Goldman Sachs Group Inc, which did better than Merrill this year, are not giving out bonuses to top executives, the paper said.

Thain, who became Merrill's chief executive after losses in mortgage-related investments led to the October 2007 ouster of Stanley O'Neal, has also run NYSE Euronext, after a long career at Goldman.

After the Bank of America-Merrill deal is completed, he will run the merged company's global banking, securities and wealth management businesses. Thain will not be joining Bank of America's board.

So the agency theory is : A theory concerning the relationship between a principal (shareholder) and an agent of the principal (company's managers) or essentially it involves the costs of resolving conflicts between the principals and agents and aligning interests of the two groups.

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The Acquisitions and the Suspend of Century Bank

The Accuisition
Bank of Indonesia temporary cancel the acquisition of Century Bank by Sinar mas Multiartha. But Sinar Mas stil process the acquisition plan and now in due dilligence process.PT Century Mega Investindo and First Gulf Asia Holdings Ltd as share holder of PT Bank Century Tbk and Sinar Mas have signed the Letter of Intent (LoI) for accuisiting 70% of share Bank Century share.

The Suspend
Day before, Bank Century was having problems in settling its clearing payments due to a technical problem. Because of that, The Indonesia Stock Exchange (IDX) suspended the trade in Bank Century Thursday, pending clarification from the bank over the question that it could not provide Rp 5 billion to the central bank clearing house.

Century Bank history
Bank Century was formed from a merger between Bank CIC, Bank Pikko and Bank Danpac in late 2004.

Meaning of Suspend(Suspended of Trading)
A stoppage in the trading of a security for an extended period of time that normally occurs when there is a lack of material financial information on the security. Once the security is suspended, shares of that security cannot be traded on the market until the suspension is lifted or lapses. The exact amount of time for the suspension will be determined on on a case-by-case basis.

Meaning of Acquisition
A corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions are often made as part of a company's growth strategy whereby it is more beneficial to take over an existing firm's operations and niche compared to expanding on its own. Acquisitions are often paid in cash, the acquiring company's stock or a combination of both.


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Repurchase Agreement

From the Jakarta Post:

Bakrie & Brothers also announced it had defaulted Rp 134.9 billion to Recapital Securities and Rp 10 billion to PT Aldira as a result of the repo financing scheme. The firm had put up shares in Bumi and PT Bakrie Sumatera Plantations for these two deals.

What is REPO?
A repurchase agreement (or repo) is an agreement between two parties whereby one party sells the other a security at a specified price with a commitment to buy the security back at a later date for another specified price. Most repos are overnight transactions, with the sale taking place one day and being reversed the next day. Long-term repos—called term repos—can extend for a month or more. Usually, repos are for a fixed period of time, but open-ended deals are also possible. Reverse repo is a term used to describe the opposite side of a repo transaction. The party who sells and later repurchases a security is said to perform a repo. The other party—who purchases and later resells the security—is said to perform a reverse repo.

While a repo is legally the sale and subsequent repurchase of a security, its economic effect is that of a secured loan. Economically, the party purchasing the security makes funds available to the seller and holds the security as collateral. If the repoed security pays a dividend, coupon or partial redemptions during the repo, this is returned to the original owner. The difference between the sale and repurchase prices paid for the security represent interest on the loan. Indeed, repos are quoted as interest rates.

Securities dealers use repos to finance their securities inventories. They repo their inventories, rolling the repos from one day to the next. Counterparties may be institutions, such as money market funds, who have short-term funds to invest, or they may be parties who wish to briefly obtain use of a particular security. For example, a party may want to sell the security short, or they may need to deliver the security to settle a trade with another party. Accordingly, there are two possible motives for entering into a reverse repo: short-term investment of funds, or to obtain temporary use of a particular security.

In the latter case, the security is called a special security. In the former case, it is called general collateral or GC.

Interest rates payable on special repos tend to be lower than those payable on GC repos. This is because a party reverse repoing a special security will accept a reduced interest rate on its funds in exchange for receiving the special security it requires. Economically, the transaction is no different from cash collateralized securities lending. Pricing of either type of deal depends upon demand for the desired security.

Because repos are essentially secured loans, their interest rates do not depend upon the respective counterparties' credit qualities. For GC repos, the same rates apply for all counterparties. Accordingly, GC repo rates—or simply repo rates—are benchmark short-term interest rates that are widely quoted in the marketplace. They differ from Libor rates in that they are for secured loans whereas Libor rates are for unsecured loans.

More about Repo:




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Barack Obama Economic Strategy

Barack Obama will provide a tax cut for working families:
Obama and Biden will restore fairness to the tax code and provide 95 percent of working Americans the tax relief they need. They will create a new "Making Work Pay" tax credit of up to $500 per person, or $1,000 per working family.

Provide tax relief for small businesses and startups:
Obama and Biden will eliminate all capital gains taxes on startup and small businesses to encourage innovation and job creation.

Fight for fair trade:
Obama and Biden will fight for a trade policy that opens up foreign markets to support good American jobs. They will use trade agreements to spread good labor and environmental standards around the world.

Buy Barack Obama 2009 Calendar

Pre-Order Barack Obama Unreleased Book

Product Description
Barack Obama's path from Hawaii to Indonesia to the White House represents one of the most unlikely and fascinating journeys in U.S. political history. With this special publication that is sure to become an instant collector's item, "Time" will mark Obama's rise with an illustrated 96-page book. "Time Obama" will contain original "Time" magazine reporting and analysis from the magazine's political experts. The book will showcase the unrivalled, intimate behind-the-scenes photography of campaign photographer Callie Shell, who has been visually documenting Obama's journey since he began his run for President. And it will provide readers with a colourful and concise account of how Obama rose to power - from his early days to his Chicago years to the moment when he became a political phenomenon.

Book Description
Barack Obama’s path from Hawaii to Indonesia to the White House represents one of the most unlikely and fascinating journeys in U.S. political history. With this special publication that is sure to become an instant collector’s item, TIME will mark Obama’s rise with an illustrated 96-page book. TIME Obama will contain original TIME magazine reporting and analysis from the magazine’s political experts. The book will showcase the unrivaled, intimate behind-the-scenes photography of campaign photographer Callie Shell, who has been visually documenting Obama’s journey since he began his run for President. And it will provide readers with a colorful and concise account of how Obama rose to power — from his early days to his Chicago years to the moment when he became a political phenomenon.

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Dilbert: The Business Comic

Businessman familiar with Dilbert. Dilbert (first published April 16, 1989) is an American comic strip written and drawn by Scott Adams. Dilbert is known for its satirical office humor about a white-collar, micromanaged office featuring the engineer Dilbert as the title character. The strip has spawned several books, an animated television series, a computer game, and hundreds of Dilbert-themed merchandise items. Adams has also received the National Cartoonist Society Reuben Award and Newspaper Comic Strip Award in 1997 for his work on the strip. Dilbert appears in 2000 newspapers worldwide in 65 countries and 25 languages.


Love Dilbert? Buy the calendar here:


And the games:

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Review: You're Broke Because You Want to Be: How to Stop Getting By and Start Getting Ahead

You're Broke Because You Want to Be: How to Stop Getting By and Start Getting Ahead

If this describes you, you are not alone. Over 40% of families are feeling the pressure, spending more than they earn, and risking retiring financially dependent on the government, family, or charity. Larry Winget knows—he’s been where you are now. He grew up poor, then made and lost a fortune when a business in which he’d invested went bankrupt. But he worked his way back from rock-bottom to become a multi- millionaire.

Now he gets paid to help people in financial crisis on A&E’s reality series, Big Spender. On the show, he coaches people who have jobs, maybe even high-paying jobs, but are nevertheless in debt or living hand-to-mouth. His blunt take on their situations? They’re broke because they want to be. They all say they want stability, savings, and financial freedom, but their actions too often contradict their words. Larry helps them to see the contradiction, get back on track, and out of debt, step-by-step. He can help you, too.

Whether your aim is to get out of debt, save for a house, or simply stop kidding yourself when it comes to savings (for retirement, for your kids’ college, whatever your goal) this book encourages you, through easy-to-complete worksheets and Larry’s bullying yet wise counsel, to make it happen. Larry’s motivating message: If you want to be rich, you can. But first, you have to stop being broke, and start getting ahead. And he’ll walk you through not only the necessary attitude adjustment, but the practical choices and actions that will get you there.

Get the book here:


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Review: Greed and Glory on Wall Street: The Fall of the House of Lehman

Review: Greed and Glory on Wall Street: The Fall of the House of Lehman

Editorial Reviews
From Publishers Weekly
Based on probing research, this modern morality tale is an expansion of a 1984 New York Times Magazine article on the ruinous behind-the-scenes struggle between two top officers of the 134-year-old private investment banking firm Lehman Brothers Kuhn Loeb. Auletta (The Art of Corporate Success, etc.) recounts in detail the takeover of the traditional and specialized but dissent-ridden and undercapitalized Wall Street company by an outside trader, the recently formed global giant Shearson/American Express. The new conglomerates that emerge from such moves, Auletta maintains, emphasize transactual, service business rather than advisory functions, and short-term gains at the expense of long-range growth plans. Wall Street, he claims, is well on its way to being dominated by a few superpowers that combine all financial services under one roof. Photos not seen by PW. Major ad/promo; Fortune Book Club selection; BOMC alternate; author tour. January
Copyright 1985 Reed Business Information, Inc.

From Library Journal
Auletta chronicles the activity at Lehman Brothers during the months between July 1983 and April 1984, immediately preceding the firm's takeover by Shearson/American Express. During that brief period, Auletta reveals, Wall Street's oldest investment banking partnership was simultaneously buffetted by the ambition and greed of one faction and by the complacency and misplaced self-assurance of another group of partners. Details shared after the fact with Auletta by many of the participants make clear, often with self-serving insight, that blame for the takeover could well be shared by more than just the two principal players. This tension born of petty human motives is all the more striking when set against the sophisticated investment banking environment. Most business collections will want this title. Joseph Barth, U.S. Military Acad. Lib., West Point, N.Y.

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Bank Loan Funds: Investing Beyond T-Bills

Some risk-averse investors may want a majority of their wealth in non-equity holdings such as Treasury bills, certificates of deposit, and corporate bonds. But returns from these can be anemic. An alternative is an asset class known as bank loans or senior loans.

Bank loans are a multi-class hybrid asset. They are the short-term equivalent of high-yield bonds but with important differences such as shorter maturities, much lower default rates, and variable interest-rate features. Investors generally get
into this asset through a growing number of bank loan funds. The funds have never lost money in any given year, while averaging 2 percent more than T-bills.

Using standard Markowitz portfolio theory, this article studies the return/risk impact of allocating bank loan funds into a predominately bond portfolio. The study assumes an investor initially invested 100 percent in T-bills, with bank loan funds and other assets added to the mix for return requirements ranging from 5 to 10 percent (for years 1990–2005). As return requirements rise, bank loan allocations rise, and standard deviations fall, until allocations begin falling significantly above 8 percent return requirements, giving way to equities.

Bank loan funds should be the first asset class to consider when desiring to increase returns above standard T-bill rates. Otherwise, higher allocations must be given to high-yield bonds in order to attain relevant return levels. A study of future returns reconfirms the ability of bank loans to deliver returns more than commensurate with their risk.

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Avoid the risk! Don’t lose your hard-earned cash

By Jean Chatzky

For years, I've been preaching the mantra that boring is better when it comes to your investments. In fact, if you've been reading this column for any length of time, you know that my strategy is to come up with an asset allocation that you can live with and then dollar-cost average into the market on a regular, automatic basis.

Given the state of today's market, you might be thinking that I've changed my tune. But, in fact, this economy has only served to validate my position. If — at the onset — you can't commit to staying in the market despite its ups and downs, you're treading dangerous waters, particularly if you're not an experienced investor. You run the risk of overthinking the situation and making investment decisions that not only aren't rational, but are emotional as well. In other words, you run the risk of losing your hard-earned money. That's why now — more than ever — you need to dial in to your patient side.

Set it and forget it
When I saw "The Gone Fishin' Portfolio," a new book by Alexander Green, I knew I had to talk to him. He's been getting a lot of press these days because the portfolio outlined in his book can be managed in just 20 minutes a year, a strategy that is right up my alley. How did he do it? The key is very careful asset allocation. Green selected a range of asset classes that move independently of each other, so even when part of the portfolio is down, another portion will likely be up. "I tried to put together a blend of assets that will all give a better return than inflation over time, but when mixed together, give you a higher degree of return with less risk," Green explains.

If you have faith in your asset allocation and you're properly diversified, you can rest easy that your portfolio will come out on top without a lot of tinkering on your part. If you're unsure, it's worth seeing a financial adviser for help. These days, there's even a group of advisers that charge by the hour.

Have a plan
It doesn't have to be hugely detailed, but at the very least, you need a few rules in place that govern your reaction to the market. "Most people don't; they invest emotionally," says Green. "But if you're going to have investment discipline, that means sticking with your plan in good times and in bad times. You have to realize that the market has ups and downs."

Here's the deal — if you can't sleep at night, you need to change your asset allocation because you're clearly taking more risk than you can tolerate. I'm not suggesting that you sweat it out to the detriment of your mental health, and neither is Green. But what I am suggesting is that you set your asset allocation to a level of risk you can handle, then decide how much your budget will allow you to save each month. Once you have a figure, whether it's $100 or $1,000, put it on autopilot and continue to invest that amount whether the market is up or down.

Recognize your goal
Ask yourself: Why are you in the market in the first place? For most people, the end goal is a comfortable retirement, and it simply can't be reached without taking a little risk. If you forgo investing and just save in a standard money market account, your money isn't going to keep up with inflation, meaning you'll actually lose money over time. Keeping up with inflation means ceding a little control. "No one likes uncertainty. As a general rule, it's frightening. But what people tend to overlook is that there really is no alternative. The markets are always uncertain," says Jason Zweig, author of "Your Money and Your Brain."

There are, of course, circumstances when a money market is the way to go. If you're saving for a short-term goal — think five years or less; like a down payment on a house or your children's education — you're better off keeping that cash out of the market right now. You don't want to run out of time before you can recover from a big loss.

Don’t forget the basics
Save early, save often is a line you probably hear a lot, and it's an important one. Risk and return aside, the amount you stash away plays a big part in the number you'll have when you hit retirement age. "I tell people that there are only six things that will determine the future value of a portfolio," says Green. "The amount of money you save, the length of time you let it compound, what your asset allocation is, the market's annual return, the expenses you absorb and the taxes you pay." Don't get so caught up in the market's waves that you overlook these important rules of thumb.

Control everything else
You have no say over the stock market. But you can control how you spend your money. You can choose to keep your credit card in your desk drawer at home when you go out. You can decide to put a little extra money away each month so you have an emergency fund at the ready. Having a grasp on the rest of your financial life will help you remain calm if (and when) the market takes another dip. Read More..

Credit Union: What and Why

From: Credit Info Center

Why do I Care About Credit Unions?
One of the most important part of rebuilding your credit is establishing new credit. An excellent source of easy credit is the credit union. They have more lenient credit guidelines on auto loans, credit cards and second mortgages. However, most people don't know which credit unions they are qualified to join. Here are some tips.

How to Find a Credit Union
The good news: If you want to be a member of a credit union, you probably can. The bad news: They rarely advertise, so if you want a credit union, you'll most likely have to do a little legwork on your own... but the rewards will likely be worth the effort!
A credit union is a cooperative financial institution, not-for-profit, owned and controlled by its members. A credit union's charter defines its "field of membership," which could be an employer, a geographic region, school, religious or professional affiliation, or community. Anyone working for an employer that sponsors a credit union, for example, is eligible to join that credit union.

Whether you choose to entrust your hard-earned money to a bank or a credit union, you will want to make sure that it is federally insured. Where a bank might sport the FDIC logo, in a credit union you want to look for the insignia of the National Credit Union Administration (NCUA). The National Credit Union Administration regulates federal credit unions and insures the vast majority of all credit unions in the United States. Its insurance fund guarantees deposits up to $100,000, just like a bank.

What are the Advantages of a Credit Union?
Becoming a member of a credit union is advantageous because credit unions are non-profit, and exist to provide members with a place to save money. Credit unions typically have lower costs associated with all of their products and services.

Credit unions were created to enable people to pool their financial resources to help themselves and each other, working together as a team to create solutions to meet their financial needs. When you compare credit union information to that of a traditional bank, you'll find lower interest rates when borrowing and higher percentage rates in savings as a credit union member.

Because they are not-for-profit institutions, credit unions offer better rates on credit cards, sometimes up to three percentage points lower than the average bank card rate. Typically, they are more forgiving regarding creditand may even allow people with past bankruptcies to qualify for unsecured cards. Credit unions are an especially good option for people who are building credit for the first time or trying to re-establish good credit, as they are typically smaller organizations which offer personalized service and are more willing to consider factors beyond the "black and white".

Financial education is available to all members. Credit unions assist members in becoming better-educated consumers of financial services.

Your credit union can put you in business with a small business loan. And some credit unions have established a relationship with the Small Business Administration (SBA) to expedite loans to credit-worthy small businesses.

Credit unions are governed through an unpaid, volunteer Board of Directors, democratically elected by the credit union membership.

Finding a Credit Union
Governmental regulatory agencies require that credit unions restrict their membership to defined segments of the population, such as people who live, work, worship, or attend school in a well-defined geographic area; employees of specific companies or trades; members of specific non-profit groups (alumni associations, conservation or other advocacy organizations, lodges, churches, or the like); or a particular occupational group (teachers, doctors, etc.)


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Inventory Management: How to Control your Inventory

by. Onvia

Inventory control involves keeping a good balance - you’ll need to get rid of the items that are obsolete or unwanted, and keep your in-demand items in stock. There are plenty of inventory management methods to make sure that you meet your clients’ needs, especially if you’re a small business.

Goals of Inventory Control
The idea behind inventory control is to find out the minimum annual cost possible related to ordering and stocking each of your items.

Inventory Control Methods that Work Well for Small Businesses

1. Visual Control –Eye ball your inventory to examine the need for additional inventory. Keep in mind that this inventory management method works best if you have a small business.
2. Tickler Control – Physically count your inventory every day.
3. Click Sheet Control – Record your inventory items on a sheet of paper for reordering purposes.
4. Stub Control – This inventory control method is used by retailers and allows a manager to record inventory by taking a portion of the price ticket when the item is sold.
5. For larger businesses, you will need a more technical and sophisticated form of inventory control. You’re more likely to rely on software and computers for your inventory control and accounting / billing procedures.
6. Inventory Management for Larger Companies Utilizing Computer-Based Systems
7. Point-of-sale terminals – After each inventory item is sold, the information is tracked and the manager receives regular inventory management report print outs for review.
8. Off-line point-of-sale – This inventory control method is much like the point-of-sale terminals, except that the information is tracked by the supplier. Based on the tracked information, the supplier will ship additional items when needed.
9. Outside Agency – This method takes a lot of responsibility off your shoulders. Instead of tracking/monitoring the inventory managment data yourself, a manufacturer’s representative can visit on a regular basis to track your stock count and write up any reorders. Merchandise that is out of date can also be removed or returned to a manufacturer (if applicable), following a predetermined, authorized procedure.
   

There are two major control values in place:
1) Order Quantity: frequency and size of orders
2) Minimum Stock Level: the reorder point at which replenishment is needed

You may be familiar with the Economic Order Quantity formula (EOQ). This formula is widely used to figure out the minimum annual cost of stocking and ordering each item. Taken into account with the EOQ is the annual sales rate, the cost of placing any orders, the unit cost, and the cost of carrying inventory.


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10 Top Accounting Software in Indonesia by Google Search

Depending on SEO of the website and popularity of the software in the internet world, here are 10 Top (most popular) Accounting Software in Indonesia.

1. Zahir Accounting
2. Accurate Accounting Software
3. MYOB
4. MyBiz
   
5. Abipro
6. Akurasi
7. SIMAK Accounting Software
8. Intelegentexpert
   
9. Quickbooks
10. Pearchtree

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What is Accounting software

Accounting software is application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It functions as an accounting information system. It may be developed in-house by the company or organization using it, may be purchased from a third party, or may be a combination of a third-party application software package with local modifications. It varies greatly in its complexity and cost.

The market has been undergoing considerable consolidation since the mid 1990s, with many suppliers ceasing to trade or being bought by larger groups.

Accounting software is typically composed of various modules, different sections dealing with particular areas of accounting. Among the most common are:

Core Modules:
* Accounts receivable—where the company enters money received
* Accounts payable—where the company enters its bills and pays money it owes
* General ledger—the company's "books"
* Billing—where the company produces invoices to clients/customers
* Stock/Inventory—where the company keeps control of its inventory
* Purchase Order—where the company orders inventory
* Sales Order—where the company records customer orders for the supply of inventory

Non Core Modules:
* Debt Collection—where the company tracks attempts to collect overdue bills (sometimes part of accounts receivable)
* Electronic payment processing
* Expense—where employee business-related expenses are entered
* Inquiries—where the company looks up information on screen without any edits or additions
* Payroll—where the company tracks salary, wages, and related taxes
* Reports—where the company prints out data
* Timesheet—where professionals (such as attorneys and consultants) record time worked so that it can be billed to clients
* Purchase Requisition—where requests for purchase orders are made, approved and tracked

Implementation and Categories read form source (Wikipedia)

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10 credit card tips

By Jean Chatzky, "Today" Financial Editor

Rewards credit cards: Are they for you?
Whether it's cash back, airline miles or savings for college, reward credit cards have their appeal. After all, who doesn't want to get paid to shop? It's like free money. Unfortunately, reward cards are not for everybody:

Who should avoid reward cards?
If you tend to carry a balance from month to month, reward cards are not all they're cracked up to be. That's because reward cards tend to have higher rates than regular credit cards. The money you pay out in interest will essentially wipe out any of the rewards you earn.

Who should apply for reward cards?
If you pay off your balance each month, reward cards are worth considering.

What’s the difference between a credit card and debit card?
Debit cards and credit cards are not created equal. With a debit card, the money is automatically taken out of your account when you purchase something. In the case of a credit card, you pay at the end of the month. However, the biggest difference is in the legal protection that you have. Unlike with a credit card, you don't have the right to dispute a claim with a debit card. If, though, your debit card is stolen and items are charged to it, most companies will match the $50 credit-card loss limit. However, you may have to wait a while — since the money has already vacated your account, the bank may not be so quick to replace it.

A very expensive student loan?
Most college students have at least one credit card — and the popularity of multiple cards is on the rise. The good news is that the college card-users are fairly responsible with their plastic, but there are still horror stories of undergrads emerging from school with credit-card debt in the high five figures. How can you keep it from happening to your kids? Talk to them about how credit cards work. Chances are, the day they get to campus (if not shortly thereafter), they'll be bombarded by marketers trying to sign them up for a card. Here are a few items to make sure your child understands about credit cards.

* Interest rates: Many student cards now have rates around 15 to 20 percent, which is higher than standard cards. There are bargains out there, but they'll need to hunt around.
* Late fees and penalties: Paying your bill late (even just one time) can result in a much higher permanent interest rate, as well as a $25 to $35 fee.
* Cash advances: Unlike with purchases, the interest on cash advances generally is charged immediately, when the withdrawal is made. In addition, the interest rate may be even higher than that charged on regular purchases.

Consolidating credit-card debt?
One way to lower your credit-card rates is to consolidate your credit card debt into one big home equity loan or home equity line of credit. This can be a very cost-effective way to go. Not only are the rates on home equity products much lower than credit card rates, but they're tax deductible as long as your total mortgage debt doesn't exceed $1.1 million. So what's the difference?

* Home equity loan: A fixed-rate sum you borrow all at once.
* Home equity line of credit: A variable-rate loan that usually floats with the prime rate and you draw upon as needed.

One warning: The home equity approach can also be dangerous. Why? You're putting your home on the line. Default and you could lose it. The other big problem with consolidation is that many people clear the debt off their credit cards only to charge them right back up again. Don’t consolidate in this way if you have even the smallest doubt that a self-imposed moratorium on plastic will work for you.

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Lehman Brothers Bankruptcy Signals New Bottom for Economy

by. By Kimberly Amadeo, About.com

This weekend, U.S. Treasury Secretary Henry Paulson finally said no to further Wall Street bailouts. As a result, Lehman Brothers investment bank filed for bankruptcy, Merrill Lynch sold itself to Bank of America, and AIG turned to the Federal Reserve for emergency funding.

Paulson said no to government protection for some of Lehman's $60 billion in uncertain mortgage assets in a weekend negotiation with potential buyers Barclay's and Bank of America. The two suitors walked out of government-sponsored talks yesterday.

Paulson was unwillling to let the government take on all risk in the financial markets, thereby letting banks off the hook for making bad decisions during the Subprime Mortgage Crisis. Paulson felt that the government bailout of Bear Stearns and Fannie Mae and Freddie Mac was enough. (Source: The Economist, Nightmare on Wall Street, September 15, 2008)

What It Means to You
As a result, U.S. Treasury bond yields fell further as investors fled to the relative safety of these Government-backed investments. (Bond yields fall when demand for the underlying bond rises, since the government can afford to pay less in interest on products that are in high demand.) Although fixed mortgage rates usually closely follow that of Treasury Bond yields, fear of further bad mortgages are keeping these rates high, which is not helping the housing market.

The Dow dropped nearly 350 points in morning trading. If financial banks' stock prices continue to fall over the next week or so, then it could causes a downward spiral as more banks find they cannot raise enough capital to stay in business. The next few weeks will tell whether this is, in fact, a market bottom or only the beginning of further financial collapse for U.S. financial industry.

However, one thing is certain - that the U.S. banking model is flawed. Banks in Europe, Latin America and Asia were not allowed to have as much exposure to CDO's and other banking derivative products, meaning they are not in as much danger of bankruptcy. The U.S. financial sector has lost its pre-eminence which will now further shift to financial centers in the rest of the world.

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Technology Issues Facing Corporate Management in the 1990s

Paul J. Dixon; Darwin A. John

The article discusses major issues raised by the authors and several senior information technology executives in large corporations that affect the way technology is introduced and used in major corporations.

These issues and drivers (primary causes of change) are likely to have the most significant impact on the management of information technology within corporations now and in the future. If these drivers are acknowledged as real (or validated by research as real), then the understanding of their impact on both corporate organization and technology managemen would very much benefit by research.

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Using Technology and Constituting Structures: A Practice Lens for Studying Technology in Organizations

author: Wanda J. Orlikowski

Abstract
As both technology and organizations undergo dramatic changes in form and function, organization researches are increasing turning to concepts of innovation, emergence, and improvisation to help explain the new ways of organizing and using technology evident in practice. With a similar intent, I propose an extension the structurational perspective on technology that develops a practice lens to examine how people, as they interact with a technology in their ongoing practices, enact strutures which shape theiur emergent and situated use of that technology. Viewing the use of technology as process of enactment enables a deeper understanding of the constitutive role of social pratices in the ongoing use and change of technologies in the workplace. After developing this lens, I offer an example of its use in research, and the suggest some implications for the study of technology in organizations.

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Programmed Instruction and Computer Technology

by. Zenon S. Zannetos
The Accounting Review, vol. 42, No. 3 (Jul., 1967), pp. 566-567

Much has been written of the desirable attributes of programmed instruction, among the advantages claimed most often, one can include the following:

1. Programmed instruction allows the slow student to proceed at his own pace without impeding the progress of those who can absord the material faster
2. The student, if provided with a programmed text, can resort to it for review at any time and refresh his memory of the material covered.
3. Programmed instruction provides a logical step by step approach to the subject matter and therefore enables the students to get a firmer grasp of the material covered and also retain it longer

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Market efficiency, long-term returns, and behaviora finance

author: Eugene F. Fama
Graduate School of Business, University of Chicago, Chicago, IL 60637, USA
Received 17 March 1997; received in revised form 3 October 1997

Abstract
Market efficiency survives the challenge from the literature on long-term return anomalies. Consistent with the market efficiency hypothesis that the anomalies are chance results, apparent overreaction to information is about as common as underreaction, and post-event continuation of pre-event abnormal returns is about as frequent as post-event reversal.Most important, consistent with the market efficiency prediction that apparent anomalies can be due tomethodology,most long-termreturn anomalies tend to disappear with reasonable changes in technique.

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This is your solution of Loan

Money problem always there. The biggest challeging is how to make our financial freedom. But of course to get in financial freedom we really want to build new business or expand or existing business. And if we have problem to financing our business plan how we solve that ? Or, how if we need to access cash quickly for emergencies?

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Go to website of Payday Loan Maxx and see the list where Payday Loan Maxx in your state. Check the website to get Alabama cash advance or Texas paydal loan. Read More..

Positive Accounting Theory: A Ten Years Prespective

This paper reviews and critiques the positive accounting literature following publication of Watts and Zimmerman (1978, 1979). The 1978 paper helped generate the positive accounting literature which offers an explanation of accounting practice, suggests the importance of contracting costs, and has led to the discovery of some previously unkown empirical regularities. The 1979 paper produced a methodological debate that has not been very productive.

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The Investing Blog

Are you want to learn and try to enter the stock market? If yes, then you should learn from right teacher. There are many information around this world of information, should I think there are abundance of information. One you should read is from the Investing Blog and the link is http://www.investingblog.org. Here you can read all about the simple like Stocks, Forex and the expert like Hedge funds, futures and commodities.

Investing in stock market in this situation of global economic, one question we all ask? Is this really good time to buy or just wait? Investing Blog analysize that market reaction is many people looking for common trend. People take buying positions before the end of the day rather than selling. Investors were not just willing to hold overnight, but willing to hold positions over the weekend until Monday morning. The investing blog predict that Monday few points will upside, it is call right momentum.

Investment is about taking risk. How we predict and play just one recipe is don't panic in any situation. Because when the price is down that is the right time to buy, and you just should sell when it up price. Inveting blog is the right place to take update news about investing.

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AN ANALYSIS OF FACTORS INFLUENCING MIGRANTS’ INCOME

Jurnal Ekonomi Pembangunan
Vol. 7, No. 2, Desember 2006, hal. 244 - 249

Sri Murwanti and Didit Purnomo
Economics Department of Economic School, University of Muhammadiyah Surakarta

ABSTRACT
This study aims to examine the factors influencing the Sukoharjo migrants’ income in Surakarta. It used multiple linear regressions. In order to find the good estimate,
it used classic assumption and statistic tests. The findings of this study indicate that education level and household responsibility has a positive influence on migrants’ income while working experience has a positive relation to migrants’ income, but it does not significantly. The findings of classic assumption test indicate that the model used is specific and free from multi-co-linearity problem while there are heteroskedasticity and morality problems.

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ANALISIS TIME DEPOSIT MONEY DI INDONESIA

Jurnal Ekonomi Pembangunan
Vol. 7, No. 2, Desember 2006, hal. 250 - 261

Triyono
Fakultas Ekonomi Universitas Muhammadiyah Surakarta

ABSTRACT
Time deposit is one of the expected banking product can gather people money significantly. Gathered people money can be used to fulfill attainment of economy
growth target. In reality, position of time deposit often fluctuate caused many economic factors. This research aim to examine economic factors which theoretically influence time deposit. The factors are inflation rate, national income, deposit rate, rupiah exchange rate to dollar and invesment value. Result of the research indicate variables that influence position of time deposit are inflation and time deposit one year before.

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Additional evidence on equity ownership and corporate value

John J. McConnell
Henri Servaes
Purdue University, West Lafayette, IN 47907, USA
University of Chicago, Chicago, IL 60637, USA

Abstract
We investigate the relation between Tobin's Q and the structure of equity ownership for a sample of 1,173 firms for 1976 and 1,093 firms for 1986. We find a significant curvilinear relation between Q and the fraction of common stock owned by corporate insiders. The curve slopes upward until insider ownership reaches approximately 40% to 50% and then slopes slightly downward. We also find a significant positive relation between Q and the fraction of shares owned by institutional investors. The results are consistent with the hypothesis that corporate value is a function of the structure of equity ownership.

Journal of Financial Economics
Volume 27, Issue 2, October 1990, Pages 595-612

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Ownership, board structure, and performance in continental Europe

Victoria Krivogorsky
San Diego State University, USA

Abstract
This study examines the empirical validity of claims that the composition of boards of directors and ownership structures affect firms' profitability ratios (ROE, ROA, MTB) using data from 87 European firms, which were foreign U.S. registrants during 2000–2001. Results indicate a strong positive relation between the level of relational ownership and profitability ratios, and between the portion of independent directors on the board and profitability ratios. No strong relation was found between the portion of inside directors or level of managerial ownership and profitability in continental European companies.

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What motivates manager's choice of discretionary accruals?

Victor L. Bernard Douglas J. Skinner

Abstract
The papers by Subramanyam (1996) and Kasanen, Kinnunen, and Niskanen (KKN, 1996) both consider why managers manipulate accounting accruals, Subramanyam finds that discreationary accruals are associated with several performance measures, and concludes that managers' accrual choices increase the informativeness of accounting earning. However, a strong competing alternative is that the 'Jones model' systematically mismeasures discreationary accruals, so that they contain a significant non-discreationary component. Unlike many US studies, KKN find strong evidence of earnings management in Finland, where Finnish managers set earnings to satisfy the demand for dividends by keiretsu-like institutional investors.

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The Effect of Accounting Conservatism on Firm Valuation

Yonpae Park, 2002

Using the accounting valuation model proposed by Fetham and Ohlson (1995) this study examines firm valuation attributable to the joint effects of accounting conservatism and extent of voluntary disclosures on firm valuations and the joint effects of accounting conservatism and life-cycles stages.

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Rising conservatism: Implications for financial analysis

Dan Givoly, Carla Hayn. Financial Analysts Journal. Charlottesville: Jan/Feb 2002.Vol.58, Iss. 1; pg. 56, 19 pgs

Abstract (Document Summary)
Evidence is provided that is consistent with an increase in reporting conservatism by U.S. companies in the past few decades. Using a constant sample of almost 900 companies, we examined several measures of accounting conservatism, including the level and rate of accumulation over time of negative nonoperating accruals, the differential timeliness of incorporating good news versus bad news in reported earnings, the skewness and variability of the earnings distribution relative to the cash flows distribution, and changes in the market-to-book ratio. The increased conservatism has contributed to a persistent and prevalent decline in reported profitability, an increase in the incidence of losses, and an increase in the dispersion of earnings. Increased conservatism affects financial ratios and PIE multiples. Thus, incorporating information on the level of a company's reporting conservatism improves valuations and the yield to investment strategies that are based on these ratios.

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Time-Series Variation in Dividend Pricing

Kenneth M. Eades; Patrick J. Hess; E. Han Kim
The Journal of Finance, vol. 49, No. 5 (Dec 1994)

Ex-dividend day returns vary over time. The ex-day returns of high-yield stocks are persistently positive for some time periods and negative for others; in contrast, ex-day returns of low-yield stocks are always positive and less variable. We are unable to explain the variation with changes in the tax code, but we do find a strong effect for the introduction of negotiated commissions. We find evidence that corporate dividend capturing is affecting ex-day returns and confirm the findings of Gordon and Bradford (1980) that the price of dividends is countercyclical.

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Managerial Conservatism, Project Choice, and Debt

David Hirshleifer, Anjan V. Thakor
The Review of Financial Studies, Vol. 5 No. 3 (1992)

We show that the incentive for managers to build their reputations distorts firms' investment policies in favor of relatively safe projects, thereby aligning managers' interest with those of bondholders, even though managers are hired of fired by shareholders. This effect opposes the familiar agency problem of risky debt that is imperfectly covenant-protected, wherin shareholders are tempted to favor excessively risky projects in oder to expropriate concern for reputation results in conservatism, it can actually make shareholders better off ex ante by allowing the firm to issue more debt. We examine how the optimal choice of leverage from the shareholders' standpoint is influence by takeover activity, and how the adoption of anti-takeover measures affects a firm's investment policy and leverage choice.

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ANALISIS DAMPAK TRANSFER PEMERINTAH TERHADAP KINERJA FISKAL DI KABUPATEN/KOTA PROPINSI JAWA TENGAH DALAM PELAKSANAAN DESENTRALISASI FISKAL

Jurnal Ekonomi Pembangunan
Vol. 7, No. 2, Desember 2006, 224 - 243

Hadi Sasana
Fakultas Ekonomi Universitas Diponegoro Semarang

ABSTRACT
In the regional autonomy era, city or district have to be able to increase their own income to fund their government affairs. Realization of a more realistic regional autonomy can offer tangible economic, social and political benefits to the region. This paper analyze the influence of central government transfer, Gross Regional Domestic Product (GRDP) per capita, consumer price index to original regional income (PAD), and the influence of central government transfer, PDRB per capita, population to routine and regional development expenditure. Data panels of all districts and cities (29 districts and 6 cities) since 2001 up to 2004 are used and the analyzing instrument used by pooled data with fixed effect model. The result of the study shown that central government transfer and the GRDP per capita positive and significant influence to the PAD, routine and regional development expenditure.Consumer price index has positive and significant influence to the PAD, and the total population only has positive and significant influence to the routine expenditure and has nothing to do with development expenditure.

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PARADOKS ARROW, PERTUMBUHAN EKONOMI DAN RENCANA PEMBANGUNAN JANGKA MENENGAH NASIONAL (RPJMN) TAHUN 2004-2009

Jurnal Ekonomi Pembangunan
Vol. 7, No. 2, Desember 2006, hal. 203 - 223

Sayuti Hasibuan
Program Pascasarjana Universitas Muhammadiyah Surakarta

ABSTRACT
Based on past experience as well as implementation paradigms embedded in the five-year plan 2004-2009, there is a very small likelihood that it can be successfully implemented. In the past before the crises of 1997, for a long time economic growth has been on average 6.8% per year. But that did not prevent open unemployment from rising. The plan target of reducing open unemployment to 5.1% in 2009 from about 9.7% in 2005 with 6.6% yearly average of economic growth appears very unrealistic. This unrealism is the more so because the plan as it stands embodies paradoxes in its various agendas and programs of action resulting from the operation of Arrow’s impossibility theorem. While the plan aims at increasing productive employment, its assumption of human being as a resource is a passive, order receiving rather than an active, innovative and risk taking one. More fundamentally, even if the plan target of economic growth is achieved, it, being on the physical plane, will fail, as it has in the past, to translate the spiritual
and corporeal values of Belief in One God and Just and Enlightened Humanity contained in the 1945 constitution. Indonesian society will move further and further away from the cherished ideals of the founding fathers of the Republic with dire implications on its future prosperity and even of its existence. It has been proposed that the operational objective of maximizing economic growth be replaced by maximizing human capability which is more suited to accommodate the multiplicity of objectives in the 1945 constitution with the different levels of physical, corporeal and spiritual dimensions.

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HUBUNGAN ANTARA INDEKS HARGA PENGGUNA (IHP) MENGIKUT WILAYAH DI MALAYSIA

Jurnal Ekonomi Pembangunan
Vol. 7, No. 2, Desember 2006, hal.185 – 202
Artikel ini merupakan bagian dari hasil penelitian yang bertajuk “Variabiliti Harga Relatif dan Inflasi di Malaysia” yang dibiayai oleh Fakulti Ekonomi dan Perniagaan, UKM Malaysia

Zulkefly Abdul Karim & Norain Mod Asri, M. Farid Wajdi, Antoni
Fakultas Ekonomi dan Perniagaan Universiti Kebangsaan Malaysia
Fakultas Ekonomi Universitas Muhammadiyah Surakarta
Fakultas Ekonomi Bung Hatta Padang

ABSTRACT
Di Malaysia, isu serakan dalam perletakan harga boleh diteliti antara wilayah Malaysia Barat (Semenanjung Malaysia) dengan Malaysia Timur (Sabah dan Sarawak). Dari segi sejarah, kedua-dua wilayah tersebut memang terpisah dari segi politik dan ekonomi sehingga tertubuhnya Malaysia pada tahun 1963. Justeru, kajian ini bertujuan untuk memeriksa hubungan antara Indeks Harga Pengguna (IHP) di Semenanjung Malaysia dengan Sabah dan Sarawak. Di samping itu, kajian ini juga bertujuan untuk menentukan Indeks Harga Pengguna (IHP) di wilayah manakah yang menjadi peneraju atau pengikut. Jangka masa kajian bermula dari bulan Januari tahun 1970 hingga bulan Mac tahun 2005 yang melibatkan cerapan sebanyak 423 bulan. Kaedah ekonometrik siri masa telah diaplikasikan dalam kajian ini. Dapatan kajian menunjukkan kewujudan hubungan jangka panjang (kointegrasi) antara Indeks Harga Pengguna (IHP) mengikut wilayah di Malaysia. Dalam jangka panjang, didapati IHP di Malaysia Timur (Sabah dan Sarawak) merupakan indeks harga peneraju, manakala IHP di Semenanjung Malaysia adalah indeks harga pengikut. Walau bagaimanapun, dalam jangka pendek didapati kewujudan hubungan sebab-menyebab dua hala di kalangan IHP mengikut wilayah (kecuali bagi kes Sabah dan Sarawak). Keputusan ujian penguraian varians pula menjelaskan bahawa IHP di Semenanjung Malaysia memberikan pengaruh yang besar dalam menerangkan variasi perubahan terhadap IHP di Sabah dan Sarawak. Hasil kajian ini telah memberikan beberapa implikasi kepada dasar kawalan harga yang perlu dilakukan oleh pihak kerajaan untuk mengawal kestabilan harga.

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ANALISIS UJI KAUSALITAS PENERIMAAN PAJAK DAN PENGELUARAN PEMERINTAH DI KOTA SURAKARTA DENGAN MENGGUNAKAN METODE GRANGER TAHUN 1978-2003

Sarastika Indrawati dan Daryono Soebagiyo
Fakultas Ekonomi Universitas Muhammadiyah Surakarta

ABSTRACT
This research aim to analyse relation pattern between tax income (Tx) with government expenditure (G) in Surakarta. Referring to that made hypothesis that
tax income have causality with government expenditure. This research use time series data with period of year 1978 - 2003. Analysis result mention that there is causality unidirectional/one way pattern of tax income to government expenditure in Surakarta. It is mean that the increasing of tax income push government expenditure. But, the increasing of government expenditure will not push tax income in Surakarta.

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RANCANGAN MODEL PENENTUAN UPAH MINIMUM KABUPATEN/PERKOTAAN (UMK/P) DI SUBOSUKAWONOSRATEN TAHUN 2006-2008

Sutomo dan Yunastiti Purwaningsih
Fakultas Ekonomi Universitas Sebelas Maret Surakarta

Jurnal Ekonomi Pembangunan
Vol. 7, No. 2, Desember 2006, hal. 150 - 162

ABSTRACT
This research aim is to compile design of calculation manual program of regency/city minimum wage (UMK) for worker paid attention various
consideration, and agreed on by various relevant side in determination of minimum wage in Subosukawonosraten at period 2006-2008. This research is expected well for worker and for council of remunerating region as consideration material to all representatives of worker union and entrepreneur in determining proposal of regency and city minimum wage at period 2006-2008.
This research regarding base making of design model to determine UMK/P. Data that needed is KHM and KHL collected with survey method to merchants in some market in Subosukawonosraten, another data are inflation, PDRB, and labors amount from data publication of BPS Subosukawonosraten. Model used is projection method to determine level of UMK, the projection appropriate with Kepmenaker number 1, 1999, Permenaker number 17, 2005, and modification of model projection. The result of this research is guide book of UMP/K determination which contain data, formula and its simulation, determination result of UMK for Subosukawonosraten region, and identify its supporting data.

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ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI TINGKAT UPAH PEKERJA SEKTOR INFORMAL DI KOTA SURAKARTA

Anton Agus Setyawan and Mujiyati
Jurnal Ekonomi Pembangunan
Vol. 7, No. 2, Desember 2006, hal. 150 - 162

ABSTRACT
The development of informal sektor in many cities in Indonesia, interests many scholars to analyze it. This research tries to describe and analyze the phenomena of under employment and gender discrimination in the informal sektor at Surakarta. This research aims is to analyze the effects of education level, work experience and gender to productivity. The measurement of productivity uses level of income. This research tries to test the model proposed by Mincer (1974) and Jones (2001). The model contains of four variables, they are: level of education, work experience and gender as the independent variable, while level of income is the dependent variable. To test our hypotheses we use double log econometric models. The setting of this research is micro retail entrepreneur or in Indonesia they called PKL. PKL which become our respondents are those who locate in three PKL center in Surakarta. Their location at around Monument 45, Manahan Stadium and Kotta Barat field. Our sampling method is purposive-sampling method and we interviewed 100 respondents to complete the data. The result shows that there are no positive correlation between level of education and gender to level of income. While work experience seems to have a positive effect to level of income. It concludes that there is a under employment phenomena in informal sektor at Surakarta. While the hypotheses which said that there are gender discrimination is not supported.

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INFORMASI LABA PERUSAHAAN HUBUNGANNYA DENGAN DINAMIKA PERUBAHAN HARGA SAHAM PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK JAKARTA TAHUN 2001

Budi Sutrisno, Retno

Abstraksi
Penelitian ini dilakukan dengan tujuan untuk mengetahui apakah variabel-variabel informasi laba perusahaan yang meliputi NPM, ROI dan ROE mempunyai hubungan yang signifikan dengan harga saham. Sampel yang digunakan adalah 60 perusahaan manufaktur pada PT Bursa Efek Jakarta yang diambil dengan pendekatan purposive sampling. Ada dua variabel yang diangkat, yaitu : rata-rata harga saham sebagai variabel dependen dan informasi laba sesudah pajak yang diwakili rasio profitabilitas NPM, ROI dan ROE sebagai variabel independen. Data sekunder berupa rasio-rasio profitabilitas yang meliputi NPM, ROI dan ROE dari ICMD 2002 dan data harga saham harian sebelum dan sesudah penutupan dengan periode pengamatan lima hari sebelum dan lima hari sesudah publikasi dari perusahaan yang mempublikasikan laporan keuangan per 31 Desember 2001 pada bulan Maret dan April 2002.

Teknik statistik non-parametrik dengan uji korelasi Jenjang Spearman, digunakan untuk menguji koneksi antar variabel yang dihipotesiskan. Hasil uji statistik yang diolah dengan komputasi program SPSS menunjukkan bahwa korelasi antara NPM dengan harga saham sebelum publikasi dan harga saham sesudah publikasi adalah tidak signifikan. Hal ini ditunjukkan oleh koefisien probabilitas 0,201 dan 0,146 > 0,05. Demikian pula untuk korelasi antara ROI dengan harga saham sebelum publikasi dan harga saham sesudah publikasi adalah tidak signifikan dengan koefisien probabilitas 0,129 dan 0,085 > 0,05. Sedangkan korelasi antara ROE dengan harga saham sebelum publikasi dan harga saham sesudah publikasi adalah signifikan dengan koefisien probabilitas 0,008 dan 0,004 dibawah 0,05.

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Financial Distress, Bankruptcy Law and the Business Cycle

(Formerly: “A Stylized Model of Financially-Driven Business Cycles”)

Oren Sussman, Saïd Business School, University of Oxford
Javier Suarez, CEMFI and CEPR
June 2, 2005

Abstract
This paper explores the business cycle implications of financial distress and bankruptcy law. We find that due to the presence of financial imperfections the effect of liquidations on the price of capital goods can generate endogenous fluctuations. We show that a law reform that ‘softens’ bankruptcy law may increase the amplitude of the cycle in the long run. In contrast, a policy of bailing out businesses during the bust, or actively managing the interest rate across the cycle, could stabilize the economy in the long run. A comprehensive welfare analysis of the policy is provided as well.

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Analysis of Investment Opportunity Set (IOS) Relation with Growth Realization

ANALISIS HUBUNGAN INVESTMENT OPPORTUNITY SET (IOS) DENGAN REALISASI PERTUMBUHAN SERTA PERBEDAAN PERUSAHAAN YANG TUMBUH DAN TIDAK TUMBUH TERHADAP KEBIJAKAN PENDANAAN DAN DIVIDEN DI BURSA EFEK JAKARTA

Analysis of Investment Opportunity Set (IOS) Relation with Growth Realization and the Difference of Growing and Ungrowing Companies on Fund Policy and Dividend Policy in Jakarta Stock Exchange

Oleh : Isnaeni Rokhayati

Abstract
The aim of this research was to find out the correlation of IOS set value as the proxy of company’s growth to company’s growth realization and to test the difference between fund policy and dividend policy between company classified as growing campanies and ungrowing companies. There are seven (7) IOS variables used as the indicators of company’s growth, i.e.: Market to book value of asset (MVABVA), Market to book value of equity (MVEBVE), Price to earning ratio (PER), Capital expenditure to book value of asset (CAPBVA), Capital expenditure to market value of asset (CAPMVA), Firm to book value of property, plant and equipment (VPPE), and Current asset to net sales (CAONS). Those seven variables were correlation by Spearman Rank method to average company’s growth after IOS value was calculated. The company’s growth was proxied with sales, profit, equity and asset growth. In order to determine the company’s classification, several analysis were used. Based on the result of factor analysis, 23 growing companies and 13 ungrowing companies were determined from BEJ public company that met the requirement. From the research result, it can be found that all IOS variables have different correlation to all components of company’s growth realization. The significant positive correlation for growing companies was occurred in MVEBVE to sales by 0.389 and to equity growth by 0.708. MVABVA ratio to equity growth was 0.667. CAPBVA ratio to
assets growth by 0.377. VPPE to sales growth was 0.364 and to equity growth was 0.632. For ungrowing companies the significant positive correlation was occurred in CAPBVA to profit growth by 0.505 and CAPMVA ratio to assets by 0.538. Significant negative correlation for growing companies was occurred in CAPMVA to equity growth by –0.483. For ungrowinng companies the significant negative correlation was occurred in PER to profit growth by –0.479. CAONS ratio to sales growth was –0.484 and to equity growth was –0.533. From the testing of fund policy, it can be fund that market debt to
equity ratio has insignificant correlation by 0.779 but book debt to equity ratio has a significant correlation direction by 0.027. From the testing of dividend policy it can be found that dividend payout ratio has insignificant correlation in amount of 0.332, beside dividend yields ratio has significant correlation in amount of 0.000 to company dividend policy.


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IPO PRICING MODEL AT THE JAKARTA STOCK EXCHANGE USING REAL OPTION METHOD

(Model Penentuan Harga IPO di Bursa Efek Jakarta dengan Menggunakan Metode Real Option)
Hakiman, 2005, Universitas Padjajaran

Abstract
Undervalue Phenomena of IPO has common in the stock market around the world also in Jakarta Stock Exchange (BEJ). Data's from 1996 to June 2004 shows that there were 147 new emitent with 72.72% were undervalue. 11.88% overvalue, and 15.4% at price on the closing of the first trading day, On the closing of the 30th trading day the stock prices became 73.42% undervalue, 21.69% overvalue and 4.89% constant.

Many research and theories have been emerged, but unfortunately no research on determining the IPO price using the Option Method has been done.

This research applies the Real Option model based on the Black and Scholes equation and simultaneously uses the implied volatility model to calculate the price of the variant. The result is deviation of the Real Option Model to actual price less than the Traditional model, which shows that the Real Option Model is more accurate than the Traditional Model.

This research also develop an equation to predict the shares price after IPO, whether it will go to the state of being undervalued or overvalued. The logistics equation with the independent variable is equal to the option variable from the Black and Scholes equation. To increase the accuracy of the prediction model the variable Public is added. The Prediction model can predict 71% prices after IPO.

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HUBUNGAN KADAR OVERNIGHT MONEY ANTARA BANK KONVENSIONAL DENGAN BANK ISLAM : BUKTI EMPIRIK DI MALAYSIA

Zulkefly Abdul Karim & Norain Mod Asri
Fakulti Ekonomi dan Perniagaan Universiti Kebangsaan Malaysia

M. Farid Wajdi
Fakultas Ekonomi Universitas Muhammadiyah Surakarta

Antoni
Fakultas Ekonomi Universitas Bung Hatta, Padang

Abstract
The objective of this study is to examine the relationship between overnight money of Islamic bank and conventional bank based on daily data begins from 12th October 1998 until 10th June 2005. This study is important to determine whether overnight money of conventional bank or overnight money of Islamic bank, become the leader or follower in the interbank money market. The econometrics tests such as unit root test, VAR model and Granger causality test have been applied. Result shows that both variables are stationary at level form or I(0). This implies that we don’t need to further analysis with cointegration test. In this case, we appllied the traditional model of VAR and Granger causality test. Empirical findings indicates that the existence of bi-directional causality between overnight money of Islamic bank and conventional bank.

PENDAHULUAN
Kestabilan kadar bunga merupakan prasyarat pertumbuhan kegiatan ekonomi dalam jangka panjang. Misalnya, menurut McKinnon (1973) kadar bunga benar yang positif adalah diperlukan untuk menggalakkan agen ekonomi membuat pengumpulan baki uang benar, meningkatkan pengantara keuangan dan penyatuan pasar keuangan yang bisa menyalurkan sumber ekonomi secara tepat untuk menjana pertumbuhan ekonomi. Situasi ini dapat dicapai jika kadar bunga domestik dibiarkan bergerak secara bebas dalam pasar tanpa campur tangan kerajaan. Bagaimanapun, pengalaman negara Malaysia telah menunjukkan liberalisasi kadar bunga sejak tahun 1978 telah menyebabkan persaingan yang hebat di kalangan lembaga keuangan dalam menawarkan kadar bunga yang kompetitif. Hal ini menyebabkan kadar bunga pinjaman dan simpanan mengalami volatiliti yang kerap terjadi dan menyulitkan proses membuat keputusan pelaburan dan menyimpan. Keadaan demikian menyebabkan Bank Negara ...

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ANALISIS HUBUNGAN ANTARA ATRIBUT KONSUMEN DENGAN ATRIBUT PRODUK DALAM KEPUTUSAN PEMBELIAN BUKU DI TOKO BUKU GRAMEDIA SURAKARTA

Chuzaimah & Sujadi
Fakultas Ekonomi Universitas Muhammadiyah Surakarta

Abstract
This research aim to analyse relation among consumer attribute (gender, age, earnings and work) with product attribute (promotion, quality of and price) and to know tightest related degree. Formulation this research internal issue do there is relation among consumer attribute covering gender, age, earnings, and work to product attribute covering promotion, quality of, price, and tidiness at Bookstore Gramedia Surakarta. Hypothesizing in this research is anticipated there is related among consumer attribute covering gender, age, work and earnings to product attribute covering promotion, quality of, tidiness and price at Bookstore Gramedia Surakarta by significant Result of research indicates that there are relation among gender with promotion, quality, price, tidiness. There are relation among age with promotion, quality, price, tidiness, promotion, quality, price and tidiness. There are relation among work with promotion, quality, price, and tidiness. Calculation of Contiguity among C with Cmaks indicate that related degree sequence among consumer characteristic (gender, age, earnings and work) with product characteristic (promotion, quality of, tidiness and price) having tightest relation is earnings storey with quality, this matter is proved from value contiguity of C with smallest C maks.

PENDAHULUAN
Pemahaman akan perilaku konsumen sangat penting bagi perusahaan untuk mengetahui perubahan yang terjadi pada konsumen. Perilaku konsumen juga akan menentukan proses pengambilan keputusan dalam pembelian untuk setiap konsumen adalah sama, namun seluruh proses tidak selalu dilaksanakan oleh konsumen. Proses pengambilan keputusan merupakan sebuah pendekatan penyelesaian masalah pada kegiatan manusia untuk membeli suatu barang atau jasa dalam memenuhi kebutuhannya. Perusahaan yang memahami bagaimana konsumen akan bereaksi terhadap ciri-ciri produk yang berbeda yang meliputi daya tarik iklan, harga, jenis produk, selera konsumen, bentuk dan kemasan. Hal itu akan mendorong perusahaan untuk membuat produk yang dapat memenuhi keinginan konsumen, sehingga dapat meningkatkan volume penjualan dan meraih keuntungan yang lebih ....

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ANALISIS SIKAP DAN NIAT MEMBELI KAUM MUDA DI SURAKARTA TERHADAP PAKAIAN BATIK

Kussudyarsana
Fakultas Ekonomi Universitas Muhammadiyah Surakarta

Abstract
In recent time, Batik, as a traditional fashion not fully intention to the youth market. The Youth market, are very potential market that profitable for Batik Fashion Industry. This research try to answer the question about attitude and intention to buy of the young people toward batik. The author predict negative attitude but positive normative belief effect intention to buy of young people toward Batik.
This research uses non-random sampling method (convenience sampling) in order to collect data. One hundred young people are used as respondent. Majority of those respondents are student in university. Data were collected using self-administrative questionnaire. The result suggested model not fully confirm to reason action theory, because normative belief did not effect toward intention to buy. However, attitude had effect toward intention to buy. The study result could be taken into account any policies that link the all of characteristic used the study.

PENDAHULUAN
Industri batik di kota Solo, sudah lama berkembang dan menjadi lokomotif perekonomian di kota ini. Banyak perusahaan kecil, menengah dan besar menggantungkan ekonominya dari industri ini. Produk batik telah berkembang dengan berbagai motif dan corak serta dengan berbagai kegunaan. Di masyarakat Solo dan Jawa pada umumnya pakaian batik bahkan menjadi pakaian yang banyak digunakan untuk acara-acara resmi kemasyarakatan seperti resepsi pernikahan, kematian, acara keluarga dan lain sebagainya. Batik telah menjadi identitas budaya Surakarta. Batik, secara umum telah diterima masyarakat Solo. Namun demikian, bagi kaum muda batik belum menjadi produk yang populer. Dari sisi produksi, semakin sedikit anak muda yang menguasai teknik membatik karena lapangan kerja pada industri batik tidak menjajikan tingkat upah yang cukup tinggi. Banyak perusahaan kesulitan memperoleh tenaga kerja muda yang mampu dan mau terjun dalam produksi batik (Solo Pos, 2004). Penelitian yang dilakukan oleh UNIBA (2004) memperlihatkan bahwa proses regenerasi pada perusahaan Batik di Solo, dan khususnya di Kampung Laweyan mengalami hambatan. Dari sisi pemasaran, pasar batik untuk....

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INTELLECTUAL CAPITAL REALIZATION PROCESS (ICRP), SEBUAH UPAYA MEMETAKAN DAN MEMBENTUK PERSEDIAAN INTELLECTUAL CAPITAL BAGI PERUSAHAAN

Elvia Ivada & Andy Dwi Bayu Bawono
Fakultas Ekonomi Universitas Muhammadiyah Surakarta

Abstract
Although Intellectual Capital has become widely accepted as part of the most important assets for an organization, it is still confusing even to recognize it, according to its characteristic that it is commonly hidden. It is not visible just like traditional assets are, and largely absent from the financial statement. Trough the Intellectual Capital Realization Process, organizations can map and create an inventory of their IC, so they can use it as a competitive advantage that will bring wealth to the organization. ICRP is consistent with Resource-Based View (RBV) of the firm that suggests an organization analysis of its internal resources drives its strategic direction.

PENDAHULUAN
Abad industri telah berganti menjadi abad informasi, perusahaan yang dapat menguasai teknologi dan informasilah yang akan menjadi pemenang dalam persaingan global. Perusahaan yang berbasis bisnis konvensional, dengan sadar atau hanya sebagai pengikut trend merubah organisasinya menjadi berbasis pengetahuan. Penguasaan ilmu pengetahuan bagi sebuah perusahaan menjadi sebuah keniscayaan. Hal ini dikarenakan kondisi persaingan yang terus menerus mengalami perubahan sehingga menuntut perusahaan harus selalu inovatif dan mengembangkan diferensiasi produknya. Dengan demikian, investasi di bidang teknologi atau ilmu pengetahuan menjadi tidak terelakkan. Fenomena ini telah ditangkap oleh Ralph Stayer dan Thomas A. Stewart (Stewart 2002:xv) yang menyatakan bahwa sumber terpenting dan kekayaan terpenting perusahaan telah berganti, dari sumber daya alam, aset berwujud, menjadi Intellectual Capital yang sesuai dengan namanya yaitu adalah aset intelektual atau aset yang berhubungan dengan ilmu pengetahuan. Dengan kata lain, ilmu pengetahuan adalah aset terpenting bagi perusahaan. Secara tipikal, sumber daya disajikan dalam neraca perusahaan sebagai aset fisik atau finansial. Meskipun demikian, untuk banyak perusahaan yang beroperasi dalam bidang industri yang berbasis pengetahuan, mungkin aset terpenting yang mereka miliki yang tidak pernah muncul dalam ...

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PROFITABILITAS, KAPITALISASI, LIABILITAS, DAN PROBABILITAS KEBANGKRUTAN BANK

Studi pada Industri Perbankan Swasta di Indonesia
Imron Rosyadi
Fakultas Ekonomi Universitas Muhammadiyah Surakarta

Abstract
The purpose of this research was to examines and evidence empirically the effects of profitability (NIITA and NIATTA), capitalization (TETA) and liability (CDTD) on the probability of bank’s bankruptcy. The sample are taken from commercial banking listed in Jakarta stock exchange (JSE) in the period of 2001 to 2002. The Logistic regressions model is used to estimate the probability of company’s bankruptcy. The result of this study show that factors: profitability (NIITA and NIATTA), capitalization (TETA) and liability (CDTD) have significant effect to the probability of bank’s bankruptcy. Using analysis of logistic regression the research found that probability bank of bankruptcy (dummy variable) is dependent variable and NIITA, NIATTA, TETA, and CDTD at variable independent.

PENDAHULUAN
Keputusan pemerintah untuk mengurangi jumlah bank-bank yang bermasalah terus berlanjut, pada tanggal 31 Desember 2002 sebanyak 52 bank yang dibekukan operasi atau kegiatan usahanya dan sebanyak 6 bank yang diambil oleh Badan Penyehatan Perbankan Nasional (BPPN). Biaya penyelesaian likuidasi dan pembekuan operasi perbankan sebenarnya dapat dihindari apabila proses pengawasan dari bank sentral berjalan dengan baik. Penciptaan sistem pendeteksian dini dari bank sentral, digunakan untuk mengetahui lebih awal adanya bank-bank yang mengalami kesulitan keuangan dan diupayakan tindakan pencegahannya. Upaya pendeteksian ini bisa dilakukan dengan memanfaatkan laporan keuangan bank tersebut, sehingga dapat dikurangi biaya pemantauan lapangan dan juga dapat dihindarkan biaya penyelesaian kebangkrutan ( Thompson, 1991). Di Amerika Serikat, fenomena kepailitan perusahaan telah menjadi obyek penelitian yang intensif. Salah satu area penelitian telah menghasilkan kajian atas asosiasi informasi laporan keuangan terhadap kemungkinan perusahaan mampu mempertahankan bisnisnya atau harus dinyatakan bermasalah karena gagal secara ekonomi dan keuangan. Tradisi penilaian ini diawali oleh Beaver (1996), kemudian diteruskan antara lain oleh Altman (1968), Altman et, al. (1977) dan Gilbert et, al. (1990).

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CONSUMERISM DAN PERLINDUNGAN KONSUMEN

Fatchurrohman
Fakultas Ekonomi Universitas Muhammadiyah Surakarta

Abstract
Consumerism has become an important issue in consumer behavior. Consumerism known as a social movement to strengthen the rights and powers of buyers in relation to sellers. There are three institutions which have major role in consumerism, they are consumer organization, government and company. Consumer organization gives information and advocacy to consumer. Government have a responsible in the regulation and legislation of consumer rights. Finally, company have their own role to enforce self regulation about consumerism. Consumerism has developed into green consumerism. It means that consumer emphazises their attention in the environment issue. Consumerism has a major implication to the marketing management in a company. One of them is more attention in producing safe product by the company. Developed country implements consumerism in day to day company strategies while developing countries consider this as a new emerging issue.

PENDAHULUAN
Paradigma manajemen pemasaran modern mengemukakan tujuan perusahaan adalah memberikan kepuasan kepada konsumen. Perusahaan yang menyampaikan value kepada konsumen berarti memberikan kepuasan konsumen. Untuk melakukan hal ini perusahaan perlu mengenali kebutuhan konsumen, caranya dengan mengaktifkan marketing intellegence (Kotler, 2000). Perusahaan kemudian menerapkan sebuah konsep yang disebut customer orientation. Customer orientation adalah tanggung jawab dari seluruh departemen dalam perusahaan bukan hanya departemen pemasaran, dimana setiap departemen fungsional berpartisipasi aktif dalam market intelligence, diseminasi, dan dalam pengembangan kebijakan marketing mix yang tepat (Balakrishnan, 1996). Berdasarkan pengertian ini seharusnya kepentingan konsumen diutamakan. Kepentingan ini bukan hanya untuk meningkatkan profit perusahaan, namun juga peningkatan kualitas hidup konsumen. Peningkatan kualitas hidup konsumen bermakna luas, karena tidak hanya kehidupan material saja, melainkan juga kehidupan spiritual dan sosial. Namun, kenyataan yang kita lihat dunia bisnis mengeksploitasi konsumen secara berlebihan. Kita bisa melihat contoh riil dalam kehidupan kita sehari-hari. Maraknya produk-produk dengan berbagai daya tariknya. Stimuli melalui iklan dan ...

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PENGARUH PEMEDIASIAN KOMITMEN ORGANISASIONAL DALAM HUBUNGAN ANTARA KEPUASAN KERJA DAN INTENT TO LEAVE

Studi pada Rumah Sakit di Yogyakarta

Yuni Siswanti
Fakultas Ekonomi Universitas Pembangunan Nasional “Veteran”, Yogyakarta

Abstract
The purpose of this research is to examine the influence of organizational commitment as mediating variable in relation between job satisfaction and intent to leave. The samples were nurses those working at DKT, Panti Rapih, Bethesda, and PKU Muhammadiyah hospital’s in Jogjakarta. Of the 126 questionnaires were distributed to the nurses, 107 data that can employ on this study. The data were collected use 4-item job satisfaction, 6-item for each three dimension organizational commitment, 3-itemintnt to leave. The overall instruments those used in this study were perceptive instruments. Simple regression analysis was used to examine the influence independent variable to dependent variable. Regression analysis (Ballon and Kenny Model’s) was used to examine whether organizational commitment become mediating variable in relation between job satisfaction and intent to leave.

PENDAHULUAN
Penelitian tentang perilaku manusia dengan obyek rumah sakit di negeri ini ternyata menarik dilakukan. Fenomena yang terjadi saat ini terlihat bahwa setiap rumah sakit dituntut untuk meningkatkan kualitas pelayanannya terhadap pasien, karena semakin banyak muncul instansi atas nama untuk kesehatan dan rata-rata mereka berupaya memberi pelayanan optimal kepada masyarakat pengguna jasanya. Dalam rangka meningkatkan pelayanan tersebut, manajemen rumah sakit di Indonesia terpacu untuk senantiasa memperhatikan kualitas sumberdaya manusianya karena mereka adalah elemen yang sangat penting bagi kelangsungan hidup rumah sakit. Di sisi lain, tuntutan dari manajemen rumah sakit, seringkali menimbulkan beragam masalah dalam diri karyawan. Masalah-masalah yang sering dihadapi mereka di antaranya: meningkatnya stres kerja, karena dipacu harus selalu maksimal melayani pasien. Bila stres kerja karyawan tersebut tidak segera diatasi, maka berdampak pada perilaku karyawan yang tidak diinginkan pihak rumah sakit, seperti: kepuasan kerja yang rendah yang dapat berdampak pada komitmen organisasional turun, bahkan yang ...

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ANALISIS GCG DI SEKTOR MANUFAKTUR

ANALISIS GOOD CORPORATE GOVERNANCE DI SEKTOR MANUFAKTUR: PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE, RETURN ON ASSET, DAN UKURAN PERUSAHAAN TERHADAP NILAI PASAR PERUSAHAAN

Zulfikar

Fakultas Ekonomi Universitas Muhammadiyah Surakarta

source: BENEFIT, Jurnal Manajemen dan Bisnis, Volume 10, No. 2, Desember 2006

Abstract

This study aims to test empirically the impact of implementation good corporate governance on the market value of firms. The Good Corporate Governance Perception Index (IICG) used in this study developed by KNKCGI (2001). Moreover, this study also investigated whether investors also consider other Good Corporate Governance variables. This study examines twenty-eight companies that implemented Good Corporate Governance in Jakarta Stocks Exchange during 2001 to 2002. Regression model analysis is used to identify the effect implementation Good Corporate Governance on market value of firm. The result show that there are no positively impact to implementation Good Corporate Governance with market value of firms.

PENDAHULUAN

Agenda penting yang harus segera direalisasikan oleh pemerintah terkait dengan penandatanganan nota kesepahaman dengan International Monetary Fund (IMF) adalah melakukan perbaikan tata kelola perusahaan perusahaan di Indonesia. Perbaikan tata kelola perusahaan tersebut dimaksudkan untuk meningkatkan kepercayaan investor baik domestik maupun asing. Standar tata kelola yang baik (Good Corporate Governance)

secara internasional sudah banyak diterapkan oleh perusahaan-perusahaan berskala internasional. Komite Nasional Kebijakan Corporate Governance (KNKCG) berpendapat bahwa perusahaan-perusahaan di Indonesia mempunyai tanggungjawab untuk menerapkan standar Good Corporate Governance yang telah diterapkan di tingkat internasional (Warta Ekonomi, 2002). Kepentingan pemegang saham (publik) sebagai pemilik perusahaan dan kreditur sebagai penyandang dana ekstern adalah merupakan salah satu alasan diterapkannya Good Corporate Governance. Sistem Good Corporate Governance yang diterapkan diyakini akan memberikan perlindungan yang efektif kepada pemegang saham dan kreditor untuk memperoleh kembali atas investasi yang ditanamkan. Sehingga Corporate Governance dapat diartikan sebagai seperangkat peraturan yang mengatur hubungan antar..

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PENGARUH SKALA OPERASI DAN STRUKTUR MODAL TERHADAP KINERJA OPERASI BANK UMUM-BPR

Arif Julianto Sri Nugroho

Fakultas Ekonomi Universitas Widya Dharma Klaten

source: BENEFIT, Jurnal Manajemen dan Bisnis, Volume 10, No. 2, Desember 2006

Abstract

This study describes the effect of asset structures and capital structures on bank financial performance. Recently, bank financial performance could be seen through bank’s financial report published on mass media. The measurement criterias of bank performance are established by Bank Indonesia based on five aspects of CAMEL ie capital adequacy ratio, assets quality, management, earnings power and liquidity.

This research involves 15 Public Banks and 15 BPR’s at Klaten as samples. The sample periods in this research is one year 2005. The result shows that the capital adequacy ratio, assets quality,

This research involves 15 Public Banks and 15 BPR’s at Klaten as samples. The sample periods in this research is one year 2005. The result shows that the capital adequacy ratio, assets quality, rentability or earnings power, liquidity are not influenced by assets structures and capital structures

PENDAHULUAN

Statement of Financial Accounting Concept No. 1 menyatakan bahwa pelaporan keuangan harus mampu memberikan informasi tentang kinerja perusahaan selama periode tertentu, yang terutama bermanfaat bagi investor dan kreditor untuk penilaian terhadap prospek perusahaan tersebut di masa yang akan datang. Kinerja (performance) menurut kamus bisnis dan manajemen didefinisi-kan sebagai hasil nyata yang dicapai, kadang-kadang dipergunakan untuk menunjukkan dicapainya hasil positip (Tunggal, 1995).

Di samping itu, penilaian kinerja operasi suatu perusahaan juga sangat diperlukan oleh stake holder yang lainnya, misalnya oleh pemerintah, karyawan, dan pihak-pihak lain yang mempunyai kepentingan baik langsung maupun tidak langsung terhadap eksistensi perusahaan untuk penetapan kebijakan perpajakan, pembuatan berbagai regulasi, dan pemberian fasilitas, yang akan berpengaruh terhadap perekonomian secara makro. Karyawan berkepentingan terhadap kinerja operasi perusahaan untuk menjamin kelangsungan kerja mereka, dan menjamin kesejahteraannya. Para analis, underwriter, dan konsultan di bidang keuangan juga memerlukan kinerja operasi suatu perusahaan untuk kepentingan bisnisnya. Meskipun pelaporan bank sudah cukup transparan, namun masih banyak pihak yang merasa tidak paham bagaimana menilai kinerja operasi bank yang baik.

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