The Faculty of Economics, University of Islam Malang, again held an international seminar with the theme "Accounting Rules: Trading Incentives and Systemic Risk" with Prof. Cotibhak (Pab) Jotikasthira, who is Asc. Professor of Finance from Edwin L. Cox of Business School and Southern Methodist University. The event, which was held by FE UNISMA in collaboration with IFMA (The Indonesian Management Association), was held on Thursday, 27 July 2017, starting at 08.30 – 12.00 WIB at Abdurahman Wahid Hall, Postgraduate Building lt. 7, University of Islam Malang.

The Dean of the Faculty of Economics at the University of Islam Malang, Nur Diana, SE., M.Si, stated that the implementation of this international seminar was the culmination of a series of agendas to celebrate the 36th Anniversary of the Faculty of Economics, University of Islam Malang Malang. He also hopes that the presence of reputable speakers from international academic circles will become a starting point in building a symbiotic relationship of mutualism in the future. He hopes that all students will be able to gain global insight and have a deeper understanding of the importance of knowing the role of accounting (MTM and HCA) and capital policies in influencing investors' decisions to buy/sell a stock and the spillover impact due to the investor's decision through this seminar. Furthermore, Deputy Chancellor I of the University of Islam Malang, Junaidi Mistar, Ph.D. expressed his appreciation to the dean, all lecturers, employees, and students of the Faculty of Economics, University of Islam Malang. They continue to strive to develop themselves continually.

Prof. Cotibhak (Pab) Jotikasthira presented the results of his research in an exciting and easy-to-understand way for all seminar participants. It did not feel like 2 hours had passed when he presented a slide related to the influence of MTM (Market to Market) and HCA (Historical Cost Accounting) policies in controlling the emergence of systemic risk, which was summarized in his two journals, namely “Is Historical Cost Accounting a Panacea? Market Stress, Incentive Distortions, and Gains Trading” (2015) and “Mark-to-Market Accounting and Systemic Risk: Evidence from the Insurance industry” Economic Policy (2014). One valuable insight gained in his presentation was that MTM (Market to Market policy) provided more helpful information in buying/selling shares. As for the disturbances obtained from the MTM factor, it turns out that they cannot be adequately explained by the HCA factor (Historical Cost Accounting policy). The use of HCA will only result in ex-ante incentives for excessive risk-taking so that it can have a spillover impact. In this research, he uses the insurance industry as the object of his research.

This event was attended by no less than 500 participants who came from (not only) internally the University of Islam Malang but also representatives of researchers, lecturers, undergraduate and postgraduate students from several state universities, private universities, and colleges from all over East Java. The seminar ended with a question-and-answered session which was enthusiastically welcomed by all seminar participants, followed by the tradition of taking a group photo.

Finally, thank you for all the support and active involvement from the committee and participants who attended this seminar. See you at the following exciting activities of the Faculty of Economics.

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