Economics, Business, Accounting & Society Review

The Role of Public Policy and Digital Connectivity in Driving GDP Growth: A Cross-Country Study of Emerging Economies

Rachmad Kresna Sakti — 2026-06-20

Despite extensive research on the relationship between digitalization and economic development, existing studies have largely examined digital connectivity and public policy as separate determinants of economic performance. Moreover, comparative evidence from emerging economies remains limited. This study investigates the roles of digital connectivity and public policy performance in shaping economic outcomes across 21 emerging Asian economies during the period 2018–2023. Using secondary data from the World Development Indicators and DataReportal, the study employs a composite Government Policy Index and estimates a panel regression model using the Panel-Corrected Standard Errors (PCSE) approach. The results reveal that internet penetration, internet speed, and internet security are positively and significantly associated with GDP per capita. In contrast, cellular connectivity exhibits a significant negative relationship with GDP per capita, suggesting that basic mobile access alone may be insufficient to support higher-value economic activities. The findings further indicate that public policy performance has a substantial positive effect on economic outcomes, highlighting the importance of effective governance, public service provision, and infrastructure development in supporting growth. The estimated model explains a considerable proportion of cross-country variation in GDP per capita, demonstrating the relevance of both digital and institutional factors in emerging economies. This study contributes to the literature by integrating digital connectivity indicators and public policy performance within a unified analytical framework and providing comparative evidence from emerging Asian economies. The findings suggest that investments in high-quality digital infrastructure should be complemented by effective public policies to foster sustainable and inclusive economic development.

Challenges in Oversight Budget Allocation and Disclosure of Irregularities by Local Government Inspectorates in Indonesia

Cenia Avrilly Nur Azizah — 2026-06-20

Regional financial management is an important component in realizing good and clean governance. In Indonesia, regional internal oversight is carried out by the Regional Inspectorate as the Government Internal Supervisory Apparatus (APIP). To strengthen this function, the Ministry of Home Affairs has established a mandatory policy on the minimum budget allocation threshold in the Regional Revenue and Expenditure Budget (APBD) for oversight programs. However, increased realization of the oversight budget has not always been followed by a decrease in BPK audit findings. These findings include weaknesses in the Internal Control System and non-compliance with statutory regulations. This condition indicates that regional financial management problems remain, even though internal oversight by APIP has been implemented. This study examines the relationship between the budget realization of the Regional Inspectorate Oversight Implementation Program and the number of BPK audit findings in provincial governments. This study uses a quantitative approach with panel data regression and a one-year lag. Data were obtained from the Financial Statements of Provincial Regional Inspectorates for 2021-2023 and BPK Audit Reports on Regional Government Financial Statements (LKPD) for the following years, 2022-2024, covering 20 provinces and 60 province-period observations. The results show that oversight budget realization has no significant relationship with the number of BPK audit findings next year. This finding indicates that increasing oversight budget realization in the current year is not yet sufficient to be associated with fewer BPK audit findings in the following year, particularly when budget allocation has not been directed toward substantive oversight outcomes.

Integrating Technical and Cultural Factors in Financial Reporting Quality: The Roles of Accounting Information Systems, Internal Control, Risk Management, and Tri Pantangan

Sri Lestari Yuli Prastyatini — 2026-06-20

The quality of local government financial reports is a critical component of public accountability and good governance. Previous studies have primarily focused on technical factors, such as Accounting Information Systems (AIS), Internal Control, and Risk Management, while the role of local cultural values remains underexplored. This study aims to examine the effects of Accounting Information Systems, Internal Control, Risk Management, and understanding of Tri pantangan on the quality of local government financial reports. A quantitative approach was employed using primary data collected through questionnaires distributed to employees involved in financial management within local government agencies in the Special Region of Yogyakarta, Indonesia. Using purposive sampling, 150 valid responses were obtained and analyzed using multiple linear regression with IBM SPSS 25. The results indicate that Accounting Information Systems have a significant negative effect on the quality of financial reports, whereas Internal Control, Risk Management, and understanding of Tri pantangan have significant positive effects. The findings suggest that technological systems alone are insufficient to ensure high-quality financial reporting unless supported by effective controls, risk management practices, and ethical values. This study contributes to the public sector accounting literature by integrating technical and cultural factors into a single empirical model and provides practical implications for strengthening value-based financial governance and accountability in local governments.

The Role of Profitability in Moderating the Effect of Capital Structure and Capital Adequacy on Firm Value

Ni Nyoman Rahma Dewi — 2026-06-20

Previous studies have reported inconsistent findings regarding the effects of capital structure and capital adequacy on firm value. Limited attention has been given to the contingent role of profitability, particularly in the banking sector. Addressing this gap, this study examines the influence of capital structure and capital adequacy on firm value, as well as the role of profitability as a moderating variable in banking companies. The study employs a quantitative research design using the annual financial statements of 12 banking companies listed on the Indonesia Stock Exchange during the 2020–2024 period. The findings reveal that capital structure does not have a significant effect on firm value, whereas capital adequacy positively and significantly enhances firm value. Furthermore, profitability significantly moderates the relationships between capital structure and firm value as well as between capital adequacy and firm value, indicating that the effectiveness of financing decisions and regulatory capital depends on banks' ability to generate sustainable profits. The study contributes to the corporate finance literature by providing updated evidence from the Indonesian banking sector during the post-pandemic period.

The Influence of Social Media Marketing and Electronic Word of Mouth in Increasing Brand Trust at Benny & Associates Architecture Studio

Wilbert Sia — 2026-06-20

This study aims to analyze the influence of social media marketing and electronic word of mouth (E-WOM) on brand trust at Benny & Associates Architecture Studio in Medan. The background highlights that weak digital communication strategies and poor management of online reviews have reduced the company’s credibility, despite sufficient technical capacity. The research method employs a descriptive quantitative approach with a sample of 75 respondents selected through saturated sampling. The questionnaire instrument was tested for validity and reliability, and the data were analyzed using multiple linear regression, t-test, F-test, and coefficient of determination. The findings show that social media marketing has a positive and significant effect on brand trust, with a regression coefficient of 0.211 and a t-value of 4.427 (sig. 0.000 < 0.05). Meanwhile, E-WOM exerts a more dominant influence, with a regression coefficient of 0.470 and a t-value of 6.207 (sig. 0.000 < 0.05). Simultaneously, both variables contribute 65.9% to brand trust, while the remaining percentage is influenced by other factors not examined in this study. These results emphasize the importance of integrating digital communication strategies through social media with proactive management of online reviews to strengthen brand trust. The study provides practical contributions for architectural service firms in enhancing content quality, transparency of information, and responsiveness to client reviews, while also enriching

The Effect of Perceived Usefulness, Promotional Value, and E-Service Quality on Customer Satisfaction of Generation Z of Digital Bank Users

Natasyah Natasyah — 2026-06-20

The rapid expansion of digital banking has intensified competition among financial service providers, making customer satisfaction a critical determinant of long-term success. However, prior studies have reported inconsistent evidence regarding the effects of perceived usefulness, promotional value, and e-service quality on customer satisfaction, particularly among Generation Z users. This study investigates the influence of these three factors on customer satisfaction among Generation Z SeaBank users in Medan, Indonesia. A quantitative research design was employed using a purposive sampling approach. Data were collected from 100 respondents through an online questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that perceived usefulness is the strongest predictor of customer satisfaction (β = 0.556, p < 0.001), followed by promotional value (β = 0.252, p = 0.027). In contrast, e-service quality does not exert a significant direct effect (β = 0.173, p = 0.184). The model explains 93.1% of the variance in customer satisfaction (R² = 0.931), indicating substantial explanatory power. These findings extend the Technology Acceptance Model by demonstrating that perceived usefulness remains a dominant determinant of post-adoption satisfaction rather than merely technology acceptance. Practically, the results suggest that digital banks should prioritize functional value and meaningful promotional benefits while maintaining reliable service quality as a prerequisite for sustaining customer trust and competitive advantage.

Earnings Persistence and Its Determinants The Moderating Role of Good Corporate Governance in Non-Cyclical Manufacturing Firms

Dilla Aisyah Putri — 2026-06-20

This study examines the effect of book–tax differences, operating cash flow, leverage, and firm size on earnings persistence, as well as the moderating role of good corporate governance in non-cyclical manufacturing companies listed on the Indonesia Stock Exchange during the 2020–2024 period. Using panel data regression and moderated regression analysis, the results show that book–tax differences, operating cash flow, leverage, and firm size have a positive and significant effect on earnings persistence. Furthermore, good corporate governance significantly weakens the relationship between book–tax differences and earnings persistence, indicating its role in reducing information risk arising from accounting–tax disparities. Good corporate governance also strengthens the effect of leverage on earnings persistence, suggesting that effective governance mitigates financial risk associated with debt usage. However, good corporate governance does not moderate the effects of operating cash flow and firm size on earnings persistence. Overall, the findings highlight the importance of financial fundamentals and corporate governance in supporting sustainable earnings quality.