• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.591-599
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• 2021

The increased risk in financial firms, due to Global Financial Crises and high international trade activities, has encouraged banks to use derivatives for both managing their financial risk and earning non-operating income simultaneously. The present study brings new evidence in the existing literature by determining the drivers behind financial derivative usage in Pakistani banks for 2011 till 2016. Moreover, the paper examines how risk plays a moderating role in determining the relationship between derivative usage and bank value. While assessing the determinants, a two-stage test has conducted, first, the logit regression was used to test the drivers behind the derivative usage in banks. Second, Tobit regression was run to analyze the factors leading to determine the extent of derivative usage. The findings demonstrate that Pakistani banks are using derivatives for both risk management and speculative motive as they are customers and users of derivatives at the same time. Empirical results, regarding moderating role of risk on the value implications of derivative usage, provide mixed findings as derivative usage gives value premium in case of non-systematic risk and foreign exchange risk. Whereas value discounts have been observed for cases where systematic risk is high and managers try to earn non-operating income from speculative activities.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.105-112
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• 2021

This study aims to find empirical evidence of the effect of increasing income on the potential transfer of wealth from manufacturing companies that go public to stakeholders. Earnings management with an accrual approach with the Modified Jones model is an identifier of the availability of earnings management practices, without paying attention to both positive and negative symbols. The interpretation of the results of the discretionary accrual measurement between positive and negative symbols has different meanings. Positive discretionary accruals indicate that management uses income-increasing techniques. Meanwhile, negative discretionary accruals indicate that management uses income-reducing techniques. Income-increasing techniques tend to be viewed as opportunistic behavior of managers. This study used 111 data from manufacturing companies listed on the IDX (Indonesia Stock Exchange) from 2015-2018. Path analysis is used to test the hypothesis. The results of this study are in line with the point of view of management strategy, increasing income is used as a way to transfer potential welfare from the company to stakeholders. Social welfare (tax) and managerial remuneration are proven to be mediators in increasing the effect of increasing income on future company value. Further research can complete the potential welfare transfer against the shareholders related to income-increasing strategy.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.9
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• pp.211-217
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• 2021

The article analyzes the impact of factors affecting the environmental accounting of enterprises in the food and beverage industry in Vietnam, providing more empirical evidence on factors affecting environmental accounting. The research method uses a questionnaire survey of managers at all levels, chief accountants, and cost accountants, of 56 enterprises in the food and beverage industry. The survey results collected 268 questionnaires. After eliminating the invalid questionnaires due to many blank cells, the author chose to use 236 questionnaires. Quantitative research was carried out with SPSS 25 software. Research results show that all 6 factors positively affect environmental accounting, which includes Firm size, Stakeholders, Awareness/Knowledge of leaders, financial resources, Qualifications of staff, and Regulations, in which stakeholders and leaders' perceptions are the most influencing factors. Based on the research results, the author has proposed recommendations to improve the ability of enterprises to successfully implement environmental accounting in the food and beverage industry, thereby contributing to improving the operational efficiency of the food and beverage enterprises. The Vietnamese market is very potential, so the Government, authorities, customers, investors, etc., contribute to creating significant pressure to implement environmental accounting in food and beverage enterprises.

• Journal of Convergence for Information Technology
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• v.7 no.5
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• pp.169-175
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• 2017

Accounting information systems (AIS) capture and process accounting data and provide valuable information for decision makers. However, in a rapidly changing environment, continual management of the AIS is necessary for organizations to optimize performance outcomes. I suggest that building a dynamic AIS capability enables accounting process and organizational performance. Using the dynamic capabilities framework (Teece 2007). I propose that a dynamic AIS capability can bedeveloped through the synergy of three competencies: having (1) a flexible AIS, (2) a complementary business intelligence system, and (3) accounting professionals with IT technical competency. Using survey data, I find evidence of a positive association between a dynamic AIS capability, accounting process performance, and overall firm performance. The results suggest that developing a dynamic AIS resource can add value to an organization. This study provides guidance for organizations looking to leverage the performance outcomes of their environment.

• Asia-Pacific Journal of Business
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• v.11 no.1
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• pp.167-183
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• 2020

Purpose - The purpose of this study is to achieve effective system improvement and operation methods for the improvements on the ability of firms'preparation of the financial statements Design/methodology/approach - This study conducts a survey of not only the accounting staff but also accounting specialist such as CPA or CTA. Findings - For the improvements on the ability of firms'preparation of the financial statements, comprehensive improvement in accounting education is needed as follows. First, the focus of accounting education should be converted to the consolidated financial statements, case study and analysis of accounting standards. Second, Financial Supervisory Service and Korea Accounting Institute in cooperation with accountancy firm need to create an accounting education program. Third, the focus of accounting education should be converted to consumer oriented education by providing accounting knowledge with various methods of teaching. Fourth, this study suggests the creation of the committee on Accounting Education. Research implications or Originality - As a result of the incorrect practice of firms'relying on auditors to prepare the financial statements, social concerns about the reliability of accounting information are raised because the incorrect practice decreases the auditor's independence and weaken the auditor's ability to verify accounting information. Therefore, this study analyzes the current status of auditors'preparation of the financial statements.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.8
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• pp.435-444
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• 2020

This study investigates the role of logistics capability and logistics outsourcing on the performance of manufacturing companies in Pakistan. It examines how logistics capability affects firm's performance, why outsourcing is essential and how firms benefited if they outsource the service rather than establishing their own logistics capability. This research is based on a survey using structured a questionnaire to collect the primary data. The target population is logistics specialists of manufacturing companies in Pakistan with head offices based on Karachi, that have their own logistics or outsource their logistics. The questionnaire has been distributed to 500 respondents in 113 manufacturing companies in Pakistan. Confirmatory factor analysis has been used as statistical techniques to check the factor loading of the components, and SEM (Structural Equation Model) is used to check the impact of logistics capability on firm's performance as well as the role of logistics outsourcing as a mediator. The findings of the research suggest logistics capability has positive impact on the performance of the manufacturing companies in Pakistan, and logistics capability has also an impact on logistics outsourcing. On the other hand, the study found that logistics outsourcing has no significant impact on the manufacturing companies in Pakistan.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.2
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• pp.247-255
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• 2019

This study examines the different roles of cash flow in assessing investment returns in the Association of Southeast Asian Nations (ASEAN). The analysis covers over 900 listed firms across Malaysia, Indonesia, Philippines, Singapore and Thailand for the period post the Asian financial crisis of 2001-2017. Firm-level panel data analysis shows that cash flow factors are important in all contexts of cash return on assets, earnings quality and market value multiple across the region even after controlling for typical measures of profitability. The results suggest that firms should manage cash flow prudently in considerations of firm value from the shareholder's perspective, measured directly using stock return. Cash profitability on assets should become an important firm performance indicator, whilst higher cash component over reported earnings is preferred. The market also tends to respond favourably to cash flow yield as a price multiple in valuation, outpacing the role of earnings yield. Such findings are robust across the pre and post subprime crisis periods, across estimation methods pertaining to finance panel standard errors, as well as across static and dynamic considerations of returns. It is hence sensible to consider cash flow factors in the research pertaining to asset pricing and factor investing in the ASEAN region.

• Asia-Pacific Journal of Business
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• v.14 no.1
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• pp.327-340
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• 2023

Purpose - The purpose of this study is to examine the information effect of securities firm's net operating capital, securities firm's regulatory purposes capital, by analyzing the value relevance of net operating capital. Design/methodology/approach - This study was empirically analyzed using samples of domestic listed securities firms in the past 12 years, and multiple regression analysis and Vuong (1989) test were used together as specific research methods. Findings - First, it was found that the net operating capital of securities firms has an incremental value relevance that is added to basic accounting information (equity book value, profit or loss information). Second, after classifying equity capital on the books into net operating capital and the rest of equity capital, the value relevance of net operating capital was significantly higher than that of other equity capital. Research implications or Originality - The results of this study indicate that the level of regulatory capital in the securities industry can be used in the process of evaluating firm value in the capital market, and it is significant in that capital market evaluation can be stratified according to regulatory purposes.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.1
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• pp.221-230
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• 2021

In this study, a firm's internationalization level was measured as the ratio of foreign sales to total sales (FSTS) of individual firms. A demonstration was conducted with several control variables that affect the persistence of the firm's profits using the Sloan (1996) model as a proxy for its primary relationship between net profit and the next profit. An empirical analysis of the end-December settlement firms listed on the securities market from 2011 to 2016 was conducted using a fixed-effect model to confirm that the persistence of the firm's internationalization and accounting profits was positive at the 1% significant level, indicating that the persistence of the firm's profits also increased as the level of individual firm's internationalization increased. In addition, the firm size, financial soundness, cash accompanying, growth, and investment ability, consistent with forecasts, represented a statistically significant (+) relationship with globalization. These results suggest that firms can maintain and expand their value stably by securing new overseas markets and promoting growth by implementing internationalization strategies.

• Management & Information Systems Review
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• v.12
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• pp.137-160
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• 2003

The association between accounting earnings and the stock price of an entity is the subject that has been most heavily researched during the past 25 years in accounting literature. Researcher's common finding is that there are positive relationships between accounting earnings and stock prices. However, the explanatory power of accounting earnings which was measured by $R^2$ of regression functions used was rather low. To be connected with these low results, The prior studies propose that there will be additional information, errors in variables. This study investigates empirically determinants of earnings response coefficients(ERCs), which measure the correlation between earnings and stock prices, using earnings level / change, as the dependent variable in the return/earnings regression. Specifically, the thesis tests whether the factors such as earnings persistence, growth, systematic risk, image, information asymmetry and firm size. specially, the determinable variables of ERC are explained in detail. The image / information asymmetry variables are selected to be connected with additional information stand point, The debt / growth variables are selected to be connected with errors in variables. In this study, The sample of firms, listed in Korean Stock Exchange was drawn from the KIS-DATA and was required to meet the following criteria: (1) Annual accounting earnings were available over the 1986-1999 period on the KIS-FAS to allow computation of variables parameter; (2) sufficient return data for estimation of market model parameters were available on the KIS-SMAT month returns: (3) each firm had a fiscal year ending in December throughout the study period. Implementation of these criteria yielded a sample of 1,141 firm-year observation over the 10-year(1990-1999) period. A conventional regression specification would use stock returns(abnormal returns) as a dependent variable and accounting earnings(unexpected earnings) changes interacted with other factors as independent variables. In this study, I examined the relation between other factors and the RRC by using reverse regression. For an empirical test, eight hypotheses(including six lower-hypotheses) were tested. The results of the performed empirical analysis can be summarized as follows; The first, The relationship between persistence of earnings and ERC have significance of each by itself, this result accord with one of the prior studies. The second, The relationship between growth and ERC have not significance. The third, The relationship between image and ERC have significance of each by itself, but a forecast code doesn't present. This fact shows that image cost does not effect on market management share, is used to prevent market occupancy decrease. The fourth, The relationship between information asymmetry variable and ERC have significance of each by. The fifth, The relationship between systematic risk$(\beta)$ and ERC have not significance. The sixth, The relationship between debt ratio and ERC have significance of each by itself, but a forecast code doesn't present. This fact is judged that it is due to the effect of financial leverage effect and a tendency of interest.