Journal of Research in Business, Economics and Management 2019-04-09T12:35:49+00:00 Managing Editor Open Journal Systems Journal of Research in Business Economics and Management The INFLUENCE OF PROFITABILITY, CASH FLOW, AND STOCK RETURNS ON EQUITY MARKET VALUES BASED ON COMPANY LIFE CYCLE (Study of Manufacturing Companies Listed in Indonesian stock exchange) 2019-02-21T14:58:30+00:00 Mulia Saputra Nurjannah nurjannah Darwanis darwanis <p>The purpose of this study is to examine the effect of profitability, cash flow, and stock returns on equity market values based on company life cycle of manufacturing companies listed in Indonesian Stock Exchange over the period of 2012-2014. The data used in this study were obtained from audited financial reports which published by the capital market reference center on the Indonesian Stock Exchange. The type of this research is the hypothesis testing which is applied the purposive sampling method and there are 204 samples of the company as the research object. The results of the study indicate that simultaneous profitability variables, cash flow, and stock returns have a positive effect on equity market values ​​regarding the company's life cycle. While, in the partial test the results of the study point that (1) Profitability at the stage of growth, mature and decline have a positive effect on equity market value. (2) The operating cash flow at the stage of growth, mature and decline have a positive effect on equity market value. (3) Investment cash flow at the stage of growth, mature and decline have a positive effect on equity market value. (4) Financing cash flow at the stage of growth, mature have a positive effect on equity market value while the decline stage has a negative effect on equity market value. (5) The stock returns at the stage of growth and maturity have a positive effect on equity market value while at the decline stage has a negative effect on equity market value.</p> 2019-02-20T00:00:00+00:00 ##submission.copyrightStatement## The ethics of conflict resolution in south-east Sierra Leone 2019-03-20T04:15:31+00:00 Agnes Caroline Dontina Mackay <p>Most conflict resolution literature focuses on strategic and tactical considerations, generally leaving aside psychological, and especially ethical, ones. Rapoport's Fights, Games and Debates is the notable exception and will be used to introduce satyagraha as a method of conflict resolution. The literature on law and society and the Gandhian literature are generally interlinked in political theory concerning civil disobedience but not in other areas such as interpersonal conflicts or the role of the legal system as a general mechanism of conflict resolution. This study aims at exploring these areas specifically and to look at the phenomenon of conflict and conflict resolution in the light of Gandhi's moral and ethical thought.</p> <p>The Gandhian technique of conflict resolution is known by its Gujarati name of satyagraha which has variously been interpreted as "passive resistance", "nonviolent resistance", "nonviolent direct action", and even as "militant nonviolence".</p> <p>"Satyagraha", Gandhi explained, is "literally holding on to Truth and it means, therefore, Truth-force. Truth is soul or spirit. It is therefore known as soul- force." The word was coined out of felt necessity. The technique of nonviolent struggle that Gandhi had evolved in South Africa for the conduct of the Indian indentured labourers' disputes with the government was originally described by the English phrase "passive resistance". Gandhi, however, found that the term "was too narrowly constructed, that it was supposed to be a weapon of the weak, that it could be characterised by hatred, and that it could finally manifest itself as violence."<a href="#_ftn1" name="_ftnref1">[1]</a> He decided that a new word had to be coined for the struggle:</p> <p>But I could not for the life of me find out a new name, and therefore offered a nominal prize through Indian Opinion to the reader who made the best suggestion on the subject. As a result, Maganlal Gandhi coined the word Sadagraha (sat: truth; Agraha: firmness) and won the prize. But in order to make it clearer I changed the word to Satyagraha.<a href="#_ftn2" name="_ftnref2">[2]</a></p> <p>Satyagraha means, in effect, the discovery of truth and working steadily towards it, thus converting the opponent into a friend. In other words, satyagraha is not used against anybody but is done with somebody. "It is based on the idea that the moral appeal to the heart or conscience is . . . more effective than an appeal based on threat or bodily pain or violence."<a href="#_ftn3" name="_ftnref3">[3]</a></p> <p>Over the years an enormous body of literature concerning satyagraha has developed. Generally the writings concern themselves with an examination of the various campaigns led either by Gandhi or his disciples, and, in the main, these writings clearly identify the main elements of the technique as truth (satya), nonviolence (ahimsa) and the relationship of ends to means. Most have realized that the use of the techniques of satyagraha as a policy, that is, a method to be brought into play in a given situation where it is considered effective in securing a victory, is contrary to its primary teaching. It must be a creed, a way of life, to be truly effective.</p> <p>This work examines the ethics of conflict resolution in south-east Sierra Leone using the Gandhian ethics resolution framework. Chapter One deals with the theoretical framework of conflict, it defines conflict and examines its causes and the way it is generally handled. It also illustrates the behavior that leads conflict onto either productive or destructive paths as defined.</p> <p>Chapter Two discusses the analytical framework for resolution generally and satyagraha specifically. It further examines satyagraha as a productive method of conflict resolution. Satyagraha is distinguished from other methods of nonviolent action and its main precepts are examined from the standpoint of the individual.</p> <p>Chapter Three gives a background of the research work, giving a geo-linguistics breakdown of the people and the community. This work further examines the practical application of satyagraha in the light of the first two chapters.</p> <p>Chapter Four briefly elucidates Gandhi's philosophy in action in the realm of interpersonal conflict in south-east Sierra Leone, while Chapter Five examines in some depth the possible practical application of satyagraha within our main institutionalised method of conflict resolution, namely the adversary legal system. It also examines industrial conflicts from the perspective of satyagraha.</p> <p>&nbsp;</p> <p>&nbsp;</p> 2019-03-20T04:15:31+00:00 ##submission.copyrightStatement## Empirical Research on Impact of Trade Liberalization on Wage Inequality in Indonesia 2019-03-20T04:23:44+00:00 Calieda Lupindra <p>Indonesia initiated the tariff liberalization since the late 80s up to the early 2000s. However, even though poverty within the country has been reduced, ever since the early 2000s, Indonesia experienced an increase in income inequality. In this paper, the effects of tariff reduction on wage inequality from 2003 to 2013 using bi-annual National Labor Survey data on individuals held by Indonesian Central Statistics Bureau that is representative on a province level is studied. Under the framework of Stolper-Samuelson theorem, considering labor market adjustment that take time as well another mechanism such as improvement in productivity by reduction in trade cost that is supported by importation, two mechanisms might appear: The effect of tariff imposition that leads unskilled labor to benefit in short and medium term as well as the productivity enhancing quality of lower input tariff that is supposed to increase wages among workers within these sectors.</p> <p>The effect of trade liberalization on wage inequality is examined and it is found that reduction in tariff has a significant impact that increase skill premium in the urban part and manufacturing-heavy regions of Indonesia.</p> <p><strong>&nbsp;</strong></p> 2019-03-20T04:23:44+00:00 ##submission.copyrightStatement## The GROWTH OF SHARIA BANKING IN ASIA 2019-04-08T13:07:20+00:00 Mochammad Fahlevi Nendi Juhandi Bambang Rahardjo Hestin Agus Tantriningsih <p class="Abstract"><span lang="EN-US">In the early days of the development of sharia banking between the period 1980-1990, the sharia banking industry focused only on the Middle East and Southeast Asia, or on countries that have a majority Muslim population. Since then sharia banking has grown very rapidly beyond 75 countries in the world. Sharia banking is believed to be the solution to the problems faced by banks today, from the only "basic banking" in the 1990s, the sharia banking industry developed wings to broader segments such as sukuk (sharia bonds), management assets, and takaful sharia insurance ) The growth of sharia banking assets from USD 150 billion in the 1990 period became USD 1.9 Trillion at the end of 2013, and was predicted in 2020 to be USD 6.5 Trillion. At present, sharia banking dominates 80.4% in "sharia financial assets". Sharia banking is currently an alternative choice for conventional banking, not only growing in Muslim countries but also in other countries.</span></p> 2019-04-08T13:07:19+00:00 ##submission.copyrightStatement## The EFFECT OF FINANCIAL PERFORMANCE, EXTERNAL FACTORS, AND OPERATIONAL RATIO ON CAR RATIO OF SHARIA COMMERCIAL BANKS IN INDONESIA 2019-04-09T12:35:49+00:00 Mochammad Fahlevi Dasih Irma Sari Maemunah Imam Mahfud <p>Capital becomes an important part of a bank, even to determine the bank is healthy or not is assessed from its capital ratio. Likewise, sharia banks in Indonesia are growing rapidly in this modern era. The maximum use of capital in profit-sharing financing is believed to be more a leverage than investments such as sukuk and others. The growth of sharia banking in Indonesia is considered slow when compared to growth in foreign countries, while Indonesia as the largest Muslim population in the world has greater potential than other countries. The monetary climate and the lack of capital that enter sharia banks are believed to be the cause of the slow growth of sharia banking in Indonesia. In this study I found that ROE of 0.1% and Inflation of 0.466% had a positive effect on the CAR ratio, while GDP was 0.431% and BOPO was 0.116% with negative effect on the CAR ratio.</p> 2019-04-08T13:09:49+00:00 ##submission.copyrightStatement##