Advances in Economics & Financial Studies

Investment Inefficiency and Financial Distress: Evidence from ASEAN Non-Financial Firms

2026-06-05T13:38:42+07:00

Purpose: This study examines the effects of investment intensity, over-investment, and under-investment on financial distress among non-financial firms in ASEAN. The study aims to investigate whether inefficient investment behavior increases firms’ financial vulnerability.

Research Method: This study employs unbalanced panel data obtained from the Bureau van Dijk OSIRIS database covering the 2020–2024 period, with a total of 14.371 firm-year observations. Financial distress is measured using the Altman Z”-Score model, while investment inefficiency is proxied by over-investment and under-investment. The analysis applies the fixed effects model with robust standard errors clustered at the firm level. In addition, robustness tests are conducted using ordinary least squares (OLS) and the random effects model (REM).

Results and Discussion: The findings indicate that investment intensity and over-investment significantly increase financial distress risk, suggesting that inefficient investment allocation may weaken firms’ financial conditions. Meanwhile, under-investment does not show a significant effect on financial distress. The robustness test results remain consistent across alternative estimation models, confirming the reliability of the findings.

Implications: This study provides implications for managers and investors regarding the importance of efficient investment decisions in maintaining firms’ financial stability. Future studies are expected to employ broader databases and additional variables to capture firms’ investment behavior more comprehensively.

Originality: This study contributes to the literature by examining the relationship between investment inefficiency and financial distress in the ASEAN context using recent panel data evidence.

The Role of Organizational Commitment in Mediating the Effects of Job Promotion and the Work Environment on Employee Performance

2026-06-17T23:14:24+07:00

Purpose: This study aims to analyze the effects of job promotions and the work environment on employee performance, with organizational commitment serving as a mediating variable, at the Manokwari Regency Education Office.

Research Method: This study employed a quantitative approach with an explanatory research design. The sample consisted of 56 civil servants (ASN) selected through saturation sampling. Data were collected using a questionnaire, supplemented by observations, interviews, and documentation, and were then analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 4.

Results and Discussion: The work environment has a positive and significant effect on organizational commitment and employee performance. Organizational commitment also positively affects employee performance and partially mediates the relationship between the work environment and employee performance. Conversely, job promotions do not have a significant effect on either organizational commitment or employee performance.

Implications: Improving the quality of the work environment is more effective than job promotions in strengthening organizational commitment and employee performance.

Originality: Improving the quality of the work environment is more effective than job promotions in strengthening organizational commitment and employee performance.

Predictive Analysis of Financial Distress in Construction Service Companies Using the Altman, Springate, Grover, and Zmijewski Models

2026-07-02T13:42:45+07:00

Purpose: This study aims to compare the results of financial distress classification produced by the Altman Z-Score (Modified), Springate, Grover, and Zmijewski models for service companies in the construction sector listed on the Indonesia Stock Exchange during the 2022–2024 period.

Research Method: The study employed a comparative quantitative approach with a saturated sample of 21 companies (63 company-year observations). Secondary data in the form of annual financial reports were analyzed using the four models and then evaluated through descriptive analysis, Cohen’s Kappa, the Friedman test, and the Wilcoxon Signed-Rank test.

Results and Discussion: The results of the study show that the four models produce different classification distributions, with varying levels of agreement among the models. The Friedman test revealed significant differences in classification (p < 0.001), indicating that differences in formulas, financial ratios, and threshold values cause each model to provide a different interpretation of the company’s financial condition.

Implications: The research findings provide insights for investors, creditors, and management to consider using multiple models when evaluating a company’s financial condition.

Originality: The novelty of this study lies in its comparative analysis of four financial distress classification models in Indonesia’s construction sector during the post-pandemic period, with an emphasis on the differences in classification results and the degree of agreement among the models.

The Effect of Service Quality and Brand Image on Revisit Intention at The Premiere Hotel Pekanbaru

2026-07-17T18:00:56+07:00

Purpose: This study examines the influence of service quality and brand image on guests’ revisit intention at The Premiere Hotel Pekanbaru amid fluctuating repeat guest rates, increasing hotel competition, and complaints concerning service, facilities, and guest experience.

Research Method: A quantitative causal-associative design was employed. The population comprised 12,680 repeat guests who stayed at the hotel from January to December 2025. Using the Slovin formula, 100 respondents were selected through purposive sampling. Data were collected through structured questionnaires using a five-point Likert scale and analyzed with descriptive statistics, classical assumption tests, and multiple linear regression.

Results and Discussion: Service quality and brand image each have a positive and significant effect on revisit intention. Simultaneously, both variables significantly influence revisit intention and explain 89.3% of its variance (R² = 0.893). These findings confirm that improved service quality and a stronger brand image encourage guests to revisit the hotel.

Implications: Hotel management should improve employee responsiveness, reliability, assurance, empathy, physical facilities, service consistency, and marketing effectiveness to strengthen guest trust, satisfaction, and intention to revisit.

Originality: This study provides empirical evidence from repeat guests of a four-star hotel in Pekanbaru and offers practical insights into strengthening revisit intention through service quality and brand image.

Return on Assets, Debt-to-Equity Ratio, and Current Ratio on Firm Value with Firm Size as a Moderating Variable in Industrial Sector Companies Listed on the Indonesia Stock Exchange

2026-07-15T13:07:40+07:00

Purpose: This study examines the associations of Return on Assets (ROA), Debt-to-Equity Ratio (DER), and Current Ratio (CR) with firm value and evaluates whether firm size moderates these relationships among Indonesian industrial companies.

Research Method: The study uses a quantitative short-panel design comprising 110 firm-year observations from 55 industrial companies listed on the Indonesia Stock Exchange during 2023–2024. Firm value is measured using Price-to-Book Value. The revised analysis requires panel regression with centered interaction terms, firm and year effects, relevant controls, influence diagnostics, sensitivity analysis, and firm-clustered robust standard errors.

Results and Discussion: Preliminary ordinary-regression estimates indicate positive associations of ROA, DER, and CR with firm value but provide no evidence that firm size moderates these relationships. These findings remain subject to confirmation using the revised panel specification.

Implications: Managers should improve asset efficiency, maintain sustainable leverage, and manage liquidity productively. Investors should assess financial quality and risk rather than relying solely on corporate scale.

Originality: The study evaluates firm size as a boundary condition linking financial ratios to the market valuation of Indonesian industrial companies.

Improving the Quality of Financial Reports through Human Resources, Information Technology, Internal Controls, the Implementation of Government Accounting Standards, and Leadership Style

2026-07-31T08:19:47+07:00

Purpose: This study investigates the influence of human resource competency, information technology utilization, internal control systems, Government Accounting Standards implementation, and leadership style on the quality of financial reporting in Regional Apparatus Organizations of West Papua Province.

Research Method: This study employed a quantitative descriptive design using primary data collected through structured questionnaires. Responses were measured using a five-point Likert scale ranging from strongly disagree to agree strongly. The data were converted into numerical values and analyzed using multiple linear regression to examine the relationships between the independent variables and financial reporting quality.

Results and Discussion: The study involved 46 Regional Apparatus Organizations, with a total population of 184 respondents. The findings indicate that human resource competency, internal control systems, and Government Accounting Standards implementation positively affect financial reporting quality. However, information technology utilization and leadership style do not significantly affect the quality of financial reporting in West Papua Province.

Implications: These findings provide empirical insights for policymakers and government institutions, particularly Regional Apparatus Organizations, in evaluating and improving government financial reporting quality.

Originality: This study enriches the literature by providing empirical evidence regarding factors influencing government financial reporting quality in West Papua Province.

Factors Influencing Accounting Students’ Interest in Pursuing a Career as an Internal Auditor

2026-07-09T08:36:58+07:00

Purpose: This study aims to analyze the relationship between financial compensation, labor market considerations, work environment, professional training, social values, and the interest of accounting students at the University of Papua in pursuing a career as an internal auditor.

Research Method: The study used a quantitative cross-sectional survey of 163 college students selected through simple random sampling. Data were collected using a Likert-scale questionnaire and analyzed using multiple linear regression with SPSS.

Results and Discussion: Labor market considerations and professional training are positively and significantly associated with career interest. Financial rewards, work environment, and social values show a positive trend, but the statistical evidence is not yet sufficient. The findings are interpreted as statistical associations, not causality.

Implications: The program needs to strengthen its labor market information, audit training, internships, and practitioner involvement. Future research should improve construct validity and expand the sample size.

Originality: The study provides contextual evidence regarding the career attributes associated with the interest of students at the University of Papua in the internal auditor profession.