Manuscript type: Research paper. Research aims: This study aims to investigate the Performance Mea- surement System implementation in Indonesian local governments and the phenomenon of institutional isomorphism. Design/ Methodology/ Approach: This paper employed a qualitative approach, using semi-structured interviews and observations. The samples comprise the heads of departments and individuals representing the agencies and institutions in the Yogyakarta Special Region. A deductive thematic method was utilised as the data analysis technique. Research findings: The study reveals that institutional isomorphism is still in existence. It plays a dominant role in the Performance Measurement System (PMS) implementation of Indonesian local governments at the coercive level. This situation leads to the underachievement of the successful PMS implementation. Theoretical contributions/ Originality: This paper fulfills an iden- tified need for studying how institutional isomorphism influences PMS implementation. This area of study is underresearched in the public sector of accounting, particularly in Indonesia. Practitioner/ Policy implications: The results of this study show that there is a need for the government or authorities to focus more on understanding how institutional isomorphism at the coercive level may lead to poor PMS implementation. The authorities also need to improve the condition by emphasising on normative isomorphism which can address the problems caused by limited information system, budgetary, human resources and difficulties in determining performance measures. Research limitation: This study is limited to the Yogyakarta Special Region province thus findings cannot be generalised while the approach used is confined to the qualitative method only. This may also affect the outcome of the findings to some extent. Keywords: Local Government, Institutional Isomorphism, Perfor- mance Measurement System, Public Sector Accounting. JEL Classification: G11, G02, C91

Environmental accounting is an emerging topic of research around the globe, but little is known of its practice and importance in the Philippines. This paper aims to determine the effect of environmental accounting on firm profitability and firm value of 24 publicly-listed mining and oil companies in the Philippines from 2012-2016. Panel regression was utilized with cross-sectional and time-series data. Environmental accounting was measured as environmental accounting disclosures and environmental costs reporting. Profitability was measured as net profit margin and return on equity, whereas firm value was measured as Tobin’s Q. Moderating variables used were auditor-firm type, firm size, board size, number of years listed Philippine Stock Exchange (PSE), and location. The major business implication concluded was that environmental accounting disclosure has no significant effect on either profitability or firm value, but when moderated by location, it has a significant effect on return on equity. Environmental costs reporting, on the other hand, has a significant effect on return on equity, but when moderated by firm size, board size, number of years listed in the PSE, and location has a significant effect net profit margin, return on equity, and Tobin’s Q.

Shareholder value maximization is one of the main objectives of a corporation; however, the management may not always achieve such an objective that may force them to employ some earnings management practices to manage reported earnings. This study deals with the opportunistic perspective where managers are suspected to perform some earnings management practices using cash flows from operations (CFO), production costs (PROD), and discretionary expenses (DISEXP), and further utilize their company’s corporate social responsibility (CSR) activities to shield the real earnings management (REM) performed. This study primarily investigates the role of CSR on the relationship of REM with financial performance and firm value. It examined 90 publicly listed companies in the Philippines for a five-year period from 2012 to 2016. Real earnings management is evaluated through deviations from normal operations which is termed as “abnormal” operations. Results show that when the company employs REM and uses CSR to shield such, the significant association between the two causes of improvement in the company’s financial performance. This study provides evidence of the benefits of using REM to manage company earnings. Employing REM and using CSR (to shield the earnings management performed) benefits not just the community but also serves the economic objectives of the firm. This study concludes that the public companies in the Philippines may have CSR activities on different dimensions and areas; however, the intention is not purely to fulfill their social obligations to the community but also to strategically achieve some economic objectives. Corporate social responsibility is used by the management not just to shield REM but also to improve the company’s financial performance.

This paper analyzes the impact of tax enforcement, trust in government, and demographic characteristics on the tax morale of firms in the Philippines. From the database of Business Environment and Enterprise Performance Survey (BEEPS), 864 firms were taken and analyzed using partial least squares on the structural equation of modeling (PLS-SEM). In the analysis, only trust in government, organizational form, and firm location provided a significant impact to tax morale. Thus, firms pay taxes religiously when the government acts trustworthily. On the other hand, sole proprietorship and Metro Manila firms exhibited lower tax morale as compared to corporations and outside capital city entities. The government should enhance the delivery of services as well as eliminate corruption to improve the firm’s tax compliance.

The mediating role of dividend policy on the impact of capital structure and corporate governance mechanisms on firm value was studied in this research. This study was conducted using the panel data of nonfinancial firms that were drawn from the firm’s financial statements and annual corporate governance report. The data were deracinated from the OSIRIS database, company website, and PSE Edge that were listed on the Philippine Stock Exchange for the years 2013 to 2016. To analyze the full model, the partial least squares–structural equation modeling approach was used with the statistical significance level of 0.05. With this, findings denuded that capital structure, the board size, and CEO duality have a negative significant effect, whereas executive compensation has a positive significant effect, both relating to firm value. However, board independence and institutional ownership have a positive but not significant effect on firm value. It was also ascertained that the impact of capital structure and corporate governance mechanisms on firm value was not mediated by dividend policy. These infer that markets are imperfect and firms do follow specific payout policies to enhance their value. Market factors such as legal, taxation, issuance cost, and informational asymmetry among investors, managers, and shareholders as well as different degrees of rationalization or psychological behaviors affect how dividend payment becomes a significant factor in increasing or decreasing firm value.

The Effect of Management Compensation and Debt Requirements on Earnings Management Concerning The Impairment of Assets