Development of Tunneling Detection Model: A New Corporate Performance Improvement
Pembangunan Pengesanan Model Terowong: Suatu Peningkatan Prestasi Korporat Baru

Department of Accounting
Faculty of Economics
Universitas Negeri Yogyakarta
Jl. Colombo No.1 Yogyakarta 55281, INDONESIA.

ratnacandrasari08@gmail. com

Department of Management
Faculty of Economics and Business
Universitas Gadjah Mada
Jl.Sosio Humaniora No.1, Bulaksumur,Yogyakarta 55281,
INDONESIA

rika_paper@yahoo.com

Faculty of Business and Law
Edith Cowan University
270 Joondalup Drive, Joondalup WA 6027, AUSTRALIA.

h.djajadikerta@ecu.edu.au

Abstract

Tunneling through related party transactions is one of the most challenging aspects in corporate governance. In addition, the impact of tunneling activities may affect to corporate governance’s performance in most of Asian countries. Yet, studies on the effectiveness of corporate governance in relation to tunneling are still limited and the results have been inconclusive. This study tries to develop a detection model to distinguish related party transactions that can be categorised as tunneling activities. Furthermore, this study also examines whether corporate governance mechanisms can explain the tunneling activities. The main findings of this study suggest that companies, in Indonesian listed companies, with concentrated ownerships have a greater tendency to conduct tunneling transactions compared to companies with dispersed ownerships, and the overall corporate governance mechanisms implemented by the companies could not be used as predictors for tunneling behaviour.

Keywords

asset tunneling; corporate governance; Indonesian listed companies; quality and performance improvement; related party transactions; Tunneling
http://dx.doi.org/10.17576/pengurusan-2016-48-03

Citation

Sari, R. C., Fatimah, P. L. R., & Djajadikerta, H. G. (2016). Development of Tunneling Detection Model: A New Corporate Performance Improvement. Jurnal Pengurusan, 48, 33–46. http://dx.doi.org/10.17576/pengurusan-2016-48-03

@article{sari2016development,
  title={Development of Tunneling Detection Model: A New Corporate Performance Improvement},
  author={Sari, Ratna Candra and Fatimah, P.L. Rika and Djajadikerta, Hadrian Geri},
  journal={Jurnal Pengurusan},
 

volume={48},
  number={},
  pages={33—46},
  year={2016},
  doi={http://dx.doi.org/10.17576/pengurusan-2016-48-03},
  publisher={Penerbit UKM},
}

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48 (2016) 33 – 46

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