Testing Weak Form of Efficient Market Hypothesis before and during COVID-19 Pandemic Periods: Evidence from Indonesia

This research examines the Weak Form of Efficient Market Hypothesis (WFEMH) on the Indonesian Stock Exchange. Specifically, the study empirically tests the extent to which future stock price changes are not determined by the previous period's stock price movement or the stock price changes are random. Thus, future stock price changes fully reflect new relevant information on the market. This research utilizes the daily closing price of the Composite Stock Price Index on the Indonesian Stock Exchange from 2011 to 2021. The sample of the study is divided into two groups. The first group is from January 2011 to December 2019 as the normal pre-COVID-19 period, and the second group is from January 2020 to December 2021 as the economic crisis period (during COVID-19). We apply three statistical tests: A unit root test, serial correlation test, and regression model examining the WFEMH. The study found that the WFEMH is documented in the Indonesian Stock Exchange in some periods before and during COVID-19. These research findings advocate that regulators and policy-makers should monitor the issue of the market efficiency of public firms in Indonesia. © 2022 IEEE.

Do intellectual capital and financing matter for the profitability of the Islamic banking industry in Indonesia?

In Indonesia, the Islamic banking industry has been experiencing growth since its establishment in 1992. Although its profitability has declined slightly due to Covid-19, Islamic banks have recorded higher profitability than the average banking industry nationwide. Motivated to identify the factors that determine the banking profitability, this research empirically tests the contribution of intellectual capital (measured by VAICTM), banks’ liquidity (financing-to-deposit ratio), and financing ineffectiveness (non-performing financing or NPF) to the profitability (return on assets or ROA) of Islamic banks in Indonesia. We gathered data from the published financial information comprising a total of 130 observation years. The result shows that intellectual capital, banks’ liquidity, and financing ineffectiveness impacted the profitability of Islamic banks in Indonesia. The findings of this study provide policy implications for Indonesia’s Islamic banks to apply prudential banking principles in their financing activities. Copyright © 2022 Inderscience Enterprises Ltd.

Effects of Role Ambiguity on Work Stress with Islamic Coping as Mediation among Nurses during a Covid-19 Pandemic at the General Hospital in Aceh-Indonesia

The nursing work environment has changed during the Covid-19 pandemic. Its presence has impacted work stress among nurses in addition to other stressors including role ambiguity. Nurses with good stress coping can mitigate environmental stressors to minimize the work stress to the lowest level. This study intends to measure and analyze the direct effect of role ambiguity and Islamic coping on work stress. It also attempts to measure the indirect effect of role ambiguity on work stress through Islamic coping among nurses at the General Hospital dr. Zainoel Abidin (Rumah Sakit Umum dr. Zainoel Abidin - RSUDZA), Banda Aceh, Indonesia. A number of 206 nurses in inpatient rooms at the hospital were selected as the study's sample using a stratified random sampling method. The primary data were collected using the questionnaires and analyzed using a Structural Equation Modeling (SEM) approach. The study found that role ambiguity has positively influenced work stress, while Islamic coping has negatively impacted work stress. In addition, Islamic coping has mediated the effect of role ambiguity on work stress. These results have implications for reducing work stress of the nurses during the Covid-19 pandemic. The clarification of the roles and responsibilities and improvement of Islamic coping skills could mitigate the nurses' work stress during the Covid-19 pandemic. © 2022 IEEE.