Advances in Economics & Financial Studies

Asymmetric Impacts of Palm Oil Expansion and Industrial Downstreaming on Ecological Footprint: Evidence from Indonesia

2026-04-23T12:00:08+07:00

Purpose: This study empirically investigates the asymmetric impacts of palm oil production, downstream industrialization, and trade openness on the ecological footprint. The primary objective is to determine whether environmental degradation responds differently to positive and negative macroeconomic shocks.

Research Method: The research employs a nonlinear autoregressive distributed lag framework to analyze annual time-series data spanning 30 years. The analytical procedure involves descriptive statistics, unit root tests to confirm stationarity, nonlinear bounds testing for long-run cointegration, and short-run Granger causality tests.

Results and Discussion: The empirical findings reveal a statistically significant asymmetric relationship. A positive shock in palm oil production exacerbates environmental degradation, while a negative shock is associated with measurable ecological recovery. Furthermore, downstream industrialization marginally reduces the ecological footprint in the long run, suggesting the potential for adopting circular economy practices. Conversely, trade openness slightly increases environmental pressures, indicating a global telecoupling effect in which international demand influences domestic industrialization and upstream expansion.

Implications: To mitigate imported environmental burdens, producing nations must implement robust integrated policies. Strategic interventions, such as enforcing strict forest moratoriums, facilitating land swaps to degraded mineral soils, and accelerating sustainable certification for smallholders, are critical for achieving long-term ecological resilience.

Originality: This research breaks new ground by employing a nonlinear framework to reveal asymmetric "ecological hysteresis," in which environmental recovery fails to keep pace with the degradation caused by palm oil expansion.

The Impact of Effective Digital Onboarding on the Growth of Islamic Bank Customers in Indonesia

2026-05-13T09:11:59+07:00

Purpose: This study aims to analyze the relationship between the effectiveness of digital onboarding and the acceptance of digital banking services at Bank Syariah Indonesia in Medan.

Research Method: This study employs an associative quantitative approach with a cross-sectional design. Data were collected through a questionnaire distributed to 100 respondents who had used the digital onboarding service at Bank Syariah Indonesia in Medan. Data analysis was conducted using simple linear regression in SPSS, supported by tests of validity, reliability, normality, and heteroscedasticity.

Results and Discussion: The study indicates that digital onboarding has a positive and significant relationship with the acceptance of digital banking services. Ease of registration, time efficiency, flexibility of access, and ease of use of the system shape the public’s positive perception of digital banking services. These findings support the Technology Acceptance Model (TAM) and the Diffusion of Innovations Theory.

Implications: This study offers practical guidance for Islamic banking institutions on improving the quality of digital onboarding services to enhance public acceptance of digital services and advance financial inclusion.

Originality: This study focuses on digital onboarding as an initial mechanism for adopting digital services in Islamic banking in Medan

Determinants of Corporate Credit Growth

2026-05-15T07:53:47+07:00

Purpose: This study aims to analyze the effect of inflation, the BI 7-Day Reverse Repo Rate, Rupiah exchange rates, and gold prices on monthly outstanding loan distribution at PT Makmur Bersama Gadai Probolinggo Branch during the 2020–2025 period.

Research Method: This study employed a quantitative associative approach using saturated sampling, with 72 monthly time-series observations. Secondary data were analyzed using multiple linear regression with the Cochrane-Orcutt transformation to address autocorrelation.

Results and Discussion: The findings indicate that macroeconomic variables are significantly associated with the monthly distribution of outstanding loans. Partially, gold prices show a significant positive relationship, while the BI 7-Day Reverse Repo Rate demonstrates a significant negative relationship. Meanwhile, inflation and Rupiah exchange rates are not statistically significant. The model shows limited explanatory power, suggesting that the distribution of financing may also be influenced by other operational and customer-related factors not captured by the model.

Implications: The findings provide practical insights for private pawn institutions on managing collateral valuation and financing strategies amid fluctuating macroeconomic conditions.

Originality: This study focuses on a private pawn institution that implements a high Loan-to-Value (LTV) financing policy. This focus area has remained underexplored in previous studies, where state-owned pawn institutions have dominated.

Halal Lifestyle and Generation Z Interest in Saving at Indonesian Sharia Banks: A Mixed-Methods Approach

2026-05-13T09:07:42+07:00

Purpose: This study aims to analyze the role of the halal lifestyle in shaping Generation Z’s interest in saving at Bank Syariah Indonesia.

Research Method: This study employed a mixed-methods approach with a sequential explanatory design. Quantitative data were collected via a questionnaire administered to 132 Generation Z respondents in Medan and analyzed using simple linear regression in SPSS 22. Qualitative data were collected through semi-structured interviews with three employees of Bank Syariah Indonesia.

Results and Discussion: The study results indicate that a halal lifestyle has a positive and significant effect on Generation Z’s interest in saving with Bank Syariah Indonesia. However, the adjusted R² of 0.135 indicates that this effect remains relatively limited. Qualitative findings indicate that interest in saving is also related to digital services, product innovation, practical needs, and an understanding of Sharia contracts.

Implications: Islamic banking needs to strengthen its services, product innovation, and Islamic financial education in line with the characteristics of Generation Z.

Originality: This study employs a mixed-methods approach to examine the relationship between the halal lifestyle and Generation Z’s interest in saving, integrating quantitative and qualitative perspectives.

The Role of Institutional Ownership Moderation in the Relationship Between Financial Ratios and Financial Distress

2026-05-15T08:07:01+07:00

Purpose: This study aims to examine the effect of multidimensional financial ratios on corporate financial health, proxied by the Altman Z-Score, and to analyze the moderating role of institutional ownership in non-cyclical consumer-sector companies listed on the Indonesia Stock Exchange during 2022–2024.

Research Method: This study employs a quantitative research design using panel data regression and Moderated Regression Analysis (MRA). The sample was selected through purposive sampling based on the availability of annual financial reports. The independent variables include liquidity, profitability, solvency, leverage, operational efficiency, and firm size, while corporate financial health is measured using the Altman Z-Score. Institutional ownership is used as a moderating variable.

Results and Discussion: The findings reveal that profitability, measured by return on assets, and operational efficiency, measured by total asset turnover, have a significant positive effect on the Altman Z-Score. Meanwhile, liquidity, solvency, leverage, and firm size do not significantly affect financial health. Institutional ownership weakens the relationship between profitability and the Altman Z-Score.

Implications: The findings suggest that institutional ownership may function as a substitute monitoring mechanism rather than always strengthening financial signals.

Originality: This study contributes by integrating multidimensional financial ratios, the Altman Z-Score, and institutional ownership to assess financial health in Indonesia’s non-cyclical consumer sector.

The Impact of Transformational Leadership Style of School Principals and Work Motivation on Teacher Performance: An Empirical Study

2026-04-17T09:00:59+07:00

Purpose: This study aims to examine the influence of principals’ transformational leadership and teachers’ work motivation on the performance of senior high school teachers in Keerom Regency, Papua. The study addresses concerns regarding suboptimal teacher performance, limited instructional innovation, and leadership practices that remain largely administrative rather than transformational.

Research Method: This study employed a quantitative approach with descriptive and inferential designs. The population consisted of 113 senior high school teachers in Keerom Regency, of whom 88 were selected using the Slovin formula with a 5% margin of error. Data were collected through structured questionnaires based on indicators of transformational leadership, work motivation, and teacher performance. The data were analyzed using multiple linear regression to examine the partial and simultaneous effects of the independent variables.

Results and Discussion: The findings show that transformational leadership has a positive and significant effect on teacher performance. Work motivation also has a positive and significant effect, emerging as the dominant factor. Simultaneously, transformational leadership and work motivation significantly contribute to improving teacher performance.

Implications: The findings suggest that principals should strengthen transformational leadership practices, while policymakers should support teacher motivation through professional development and conducive work environments.

Originality: This study contributes by examining teacher performance in the specific context of the geographically challenging border areas of Keerom Regency, Papua.

Household Income, Debt Service Ratio, and Early Childhood Education Participation in Indonesia

2026-05-09T20:23:17+07:00

Purpose: This study examines the relationship between household financial conditions and children’s participation in Early Childhood Education (ECE) institutions in Indonesia, focusing on household income and Debt Service Ratio (DSR).

Research Method: This study employs a quantitative approach using secondary data from the Indonesia Family Life Survey (IFLS-5) conducted in 2014–2015 across 13 provinces. The final sample consists of 775 household observations. Preschool participation is measured as a binary variable covering ECE, kindergarten, and playgroup participation. The analysis applies Binary Logistic Regression using Maximum Likelihood Estimation (MLE).

Results and Discussion: The findings show that household income is positively associated with preschool participation across all models. DSR also shows statistically significant associations across several specifications, although the relationship should be interpreted with caution, as DSR reflects only the household debt repayment burden. Stronger associations are identified in regency areas than in municipalities.

Implications: The study highlights the importance of improving household economic resilience and equitable access to preschools.

Originality: This study integrates the household debt repayment burden into the analysis of preschool participation using Indonesian household-level survey data.

The Use of Social Media as a Promotional Tool to Increase Revenue for Makeup Businesses

2026-05-14T13:00:19+07:00

Purpose: This study aims to analyze the effect of social media use as a promotional tool on increasing the revenue of Suryanti Make Up in Bilah Hilir District, Indonesia.

Research Method: This study employed a quantitative approach using a survey method. Data were collected through questionnaires distributed to 130 respondents who had used Suryanti Make Up’s services and were aware of its promotional activities on social media. The independent variable was social media use, while the dependent variable was business revenue growth. Data were analyzed using validity and reliability tests, classical assumption tests, and simple linear regression, with assistance from SPSS.

Results and Discussion: The results indicate that social media use has a positive and significant effect on business revenue growth. The research instruments were valid and reliable, and the regression model met the assumptions of normality and heteroscedasticity. These findings show that social media can expand promotional reach, increase customer engagement, and strengthen business visibility in the digital era.

Implications: Business owners should optimize social media-based promotion to attract customers and increase revenue.

Originality: This study contributes empirical evidence on the role of social media promotion in increasing revenue within the makeup services industry in a local business context.

Employee Engagement as the Key Mechanism Driving Leadership and Work-Life Balance Toward Employee Performance

2026-05-18T16:45:58+07:00

Purpose: This study examines the influence of leadership and work-life balance on employee performance through employee engagement as a mediating variable. The study hypothesizes that leadership and work-life balance positively affect employee engagement and employee performance, both directly and indirectly.

Research Method: This study employed a quantitative approach with a causal-correlational design. Data were collected through questionnaires distributed to 100 employees selected from a population of 144 employees using simple random sampling. The research variables consisted of leadership, work-life balance, employee engagement, and employee performance. Data analysis was conducted using Structural Equation Modeling–Partial Least Squares (SEM-PLS).

Results and Discussion: The findings indicate that leadership and work-life balance positively and significantly affect employee engagement and employee performance. Employee engagement also has a significant positive effect on employee performance. Furthermore, employee engagement significantly mediates the relationship between leadership and employee performance, as well as between work-life balance and employee performance.

Implications: The findings emphasize the importance of strengthening leadership quality and implementing work-life balance policies to improve employee engagement and organizational performance in the financial service industry.

Originality: This study integrates the Job Demands-Resources Model and Social Exchange Theory by positioning employee engagement as a mediating mechanism in the multifinance industry, a gap noted in previous studies.

The Ethics and Procedures of Financial and Sustainability Reporting: Accounting Students' Perceptions

2026-05-27T15:16:00+07:00

Purpose: This study examines accounting students' perceptions of the ethics and procedures of financial reporting and sustainability reporting, and tests whether these perceptions differ between lower-level and upper-level students.

Research Method: A descriptive quantitative survey was conducted using cluster sampling. A questionnaire grouped items into five categories: misstatement, disclosure, cost and benefit, accountability, and the usefulness of sustainability reporting. Responses from 166 students, split into lower-level and upper-level groups, were analyzed using descriptive statistics, Levene's homogeneity test, and the Mann–Whitney U test.

Results and Discussion: All five hypotheses were rejected (Asymp. Sig. (2-tailed) ranging from 0.105 to 0.928, all > 0.05), indicating no significant differences in perception between the two groups across the five categories tested.

Implications: The findings suggest that semester level does not produce a significant difference in students' perceptions of financial reporting and sustainability reporting ethics, which may inform how accounting ethics is sequenced in the curriculum.

Originality: This study jointly assesses perceptions of financial reporting ethics and sustainability reporting across student levels within a single instrument.

The Influence of Financial Literacy and Lifestyle on Accounting Students’ Investment Interest

2026-04-23T12:31:59+07:00

Purpose: This study aims to examine the influence of financial literacy and lifestyle on the
investment interest of Accounting students at Universitas Labuhanbatu.
Research Design and Methodology: This study employed a quantitative approach with a
causal-associative design. The population consisted of all active Accounting students at
Universitas Labuhanbatu, and a saturated sampling technique was used to select respondents.
Data were collected through questionnaires and analyzed using SPSS version 26. The
analysis included validity and reliability tests, classical assumption tests, multiple linear
regression, t-tests, and F-tests.
Findings and Discussion: The results indicate that financial literacy has a positive and
significant effect on students’ investment interest. In contrast, lifestyle has a negative and
significant effect on investment interest. Simultaneously, financial literacy and lifestyle
significantly influence students’ investment interest. These findings suggest that students
with higher financial literacy are more likely to engage in investment activities, whereas a
more consumptive lifestyle tends to reduce investment interest.
Implications: Universities should strengthen financial education programs and encourage
responsible lifestyle behaviors to enhance students’ investment awareness and participation.
Originality: This study provides empirical evidence on the simultaneous effects of financial
literacy and lifestyle on investment interest among accounting students in an Indonesian
higher education context.