• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.303-314
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• 2020

This paper investigates the relationships between bank credit and trade credit with profit of 130 agricultural firms listed on Vietnam's stock exchanges during the period 2008-2014. Using the GMM approach, the paper reveals inverted-U shaped (∩) relationships between bank credit and trade credit with profit. Specifically, the optimal threshold of bank credit and trade credit to total assets of the firms are 0.4173 and 0.2425, respectively. The findings mean that if the ratio of bank credit to total assets exceeds the benchmark of 0.4173, firms should consider restructuring debts to get them back to the benchmark. To do so, firms should withdraw from those business fields that are not of their profession, in addition to liquiditizing unused assets to repay debts and not using short-term credit to invest in long-term projects. Firms may use trade credit wisely when other sources of finance are lacking. In concrete terms, firms can increase trade credit use if the ratio of trade credit to total assets is below 0.2425. Yet, if this ratio goes beyond this benchmark, firms should get back to this benchmark, e.g., keeping a suitable amount of inventory. The implications of this study is to boost firm growth in the proposed way.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.717-728
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• 2020

The objective of this study is to explore the whole process of fraud risk management strategies that should be implemented by the organizations. Secondly, this study discusses the governance issues that arise at each stage of the process. For the purpose of this study, a content analysis of previous literatures is used as a technique for gathering data. This process usually involves codifying qualitative and quantitative information into pre-defined categories in order to derive patterns in the presentation and reporting of information. Based on our content analysis, we found that the fraud risk management process should be made of at least five stages which are inculcating the culture of managing risks in an organization, identifying the risks, evaluating the risks, determining preventive actions and implementing and reviewing stages. Our extended analysis of the fraud risk management process finds that a lot of governance issues arise in the fraud risk management process that should be solved by regulators and companies in order to ensure that fraud risk management process is embedded as corporate culture, not merely as a process. Among them are how to create the risk culture in an organization and whether auditors and risk management committees identify risks from each available source.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.411-420
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• 2021

Based on the Financial Management Information Systems (FMIS) variables and supporting arenas, the current study aims to highlight the importance of FMIS in supporting organizations to achieve organizational excellence (Managing Liabilities, Support Decision Making, Cost Efficiency, Financial Quality, and Security). A quantitative approach was utilized by adopting a questionnaire as a tool. A convenient sample of (249) individuals from different Kuwaiti SMEs answered the questionnaire. SPSS v. 26 was used to analyze gathered data. The study's findings revealed that FMIS has a significant impact on organizational trials to achieve organizational excellence. This impact was most noticeable on the level of cost-efficiency, with an R-value of 0.583, followed by a positive impact on security, with an R-value of 0.453. Based on the results, it can be widely generalized that FMIS can help the organization reach organizational excellence through managing its financial affairs. As a result, the study recommends paying more attention to the quality of data presented to FMIS, keeping in mind that human errors in data entry might result in incorrect and malfunctioned data, even if it is processed by FMIS. FMIS also improves the ability of an organization to schedule financial information, such as obligations, receivables, debts, payments, and expenses.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.473-484
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• 2021

This study aims to examine the role of training and absorptive capacity as a mediator to examine the impact of human capital dimensions on the performance of an organization. This study employs the quantitative approach for analysis. A sample of 208 respondents was collected from the textile factories based in Karachi and Faisalabad. Data was analyzed using the PLS-SEM technique. PLS-SEM algorithm was used to check the validity and reliability of the data. PLS-SEM bootstrapping was used for studying the impact. The results show that the skills have an insignificant impact on organizational performance. Education and skills have an insignificant indirect impact on the performance of an organization. The research findings show that the human capital dimensions are full and partially mediated via absorptive capacity and training. The findings revealed that if we implement one by one dimension of human capital then it will not cause any increase in the organization's performance but if we implement all dimensions then it results in optimal performance. Thus, this study suggests adopting effective training techniques and creating absorptive capacity in an organization to increase the performance of an organization. The findings of this study significantly contribute to the existing body of knowledge.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.543-549
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• 2021

The stock market plays a crucial role in the growth of industry and trade, which eventually affects the economy. This paper studies the determinants of stock market development in Jordan using yearly time-series data (1978-2019). The autoregressive distributed lag approach is applied to examine co-integration, while the vector error correction model is employed to estimate (long-run and short-run) causal relationships. The results show that macroeconomic determinants such as gross domestic product, gross domestic savings, investment rate, credit to the private sector, broadest money supply, stock market liquidity, and inflation rate are important determinants of stock market development. These findings provide vital implications for policymakers in developed and emerging stock markets. First, economic development plays an imperative role in stock market development. Second, developing the banking sector is mandatory because it can significantly promote stock market development. Third, domestic investment is a significant determinant of stock market development, especially in emerging countries. However, it is vital to launch policies that lead to encourage investment and promote stock market development, and this could be done through (1) encouraging competition, (2) improving the institutional framework, and (3) removing trade blocks by establishing a mutual connection between foreign private investment entities and government authorities.

• Journal of Distribution Science
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• v.19 no.8
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• pp.25-35
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• 2021

Purpose: This study aims to propose an integrated MCDM model to support the qualified personnel selection in the distribution science. Research design, data, and methodology: The integrated approach of AHP and TOPSIS was employed to address the personnel selection problem. The AHP method was used to define the weights of the selection criteria, whereas the TOPSIS was applied to rank alternatives. The proposed model was then applied into a leading logistics company to select the best alternatives to be the sales deputy manager. Results: The results showed that Candidate 3 is the most qualified personnel for the sales deputy manager position as he is ranked first in the order of preference for recruitment. Conclusions: The proposed model provides the decision makers with more effective and time-saving methods than conventional ones. Therefore, the model can be applied to personnel selection around the world. In terms of theoretical contribution, this study proposes a personnel selection model for choosing the most appropriate candidates. In addition, the study adds to the theory of human resources management and logistics management the full set of personnel selection criteria including education, experience, skills, health, personality traits and foreign language.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.77-88
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• 2021

The stock markets in the BRICS (Brazil, Russia, India, China and South Africa) countries are the leading emerging markets globally. Therefore, it is pertinent to ascertain the critical drivers of stock market development in these economies. The currrent study empirically investigates to identify the linkages between stock market development, key macro-economic factors and institutional factors in the BRICS economies. The study covers the time period from 2000 to 2017. The dependent variable is the country's stock market development and the independent variables consist of six macroeconomic variables and five institutional variables. The study employs a panel cointegration test, Fully Modified OLS (FMOLS), a Pooled Mean Group (PMG) approach and a heterogeneous panel non-causality test.The findings of the study indicate co-integration among the selected variables across the BRICS stock markets. Long-run estimations reveal that five macroeconomic variables and four variables related to institutional quality are positive and statistically significant. Further, short-run causalities between stock market capitalization and selected variables are detected through the test of non-causality in a heterogeneous panel setting. The findings suggest that policymakers in the BRICS countries should enhance robust macroeconomic conditions to support their financial markets and should strengthen the institutional quality drivers to stimulate the pace of stock market development in their countries.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.329-338
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• 2021

The mobile payment system has not only changed the payment pattern but also has improved the performance of small and medium-sized enterprises (SMEs) and individuals' quality of life by saving their energy, reducing the risk of taking cash, and enabling them to give more time to businesses and do international business. Besides, with the current advancement in the Internet as well as the digital transformation, SMEs are being forced to adopt mobile payment systems (MPS). The purpose of this study is to investigate the effects of technological-organizational-environmental (TOE) determinants on the adoption of MPS and its impact on SMEs' firm performance operating in Ghana. This research employed a closed-ended questionnaire to collect data from January 2020 - April 2020. This study used a structural equation modeling (SEM) approach using SmartPLS 3.0 for path analysis of 145 responses. The findings of the study include the statistically significant effects of technological (relative advantage and compatibility), organizational (top management support and employees' readiness), and environmental (social influence and competitive pressure) factors on the adoption of MPS. Furthermore, this study also proved the positive and statistically significant effect of MPS on SMEs' performance. This study demonstrated that the TOE factor explains 70% variations in the adoption of MPS.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.653-663
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• 2021

There has been a massive increase in household debt in China, especially in the last five of years. Learning from past experiences, the country needs careful forecasting that may help to form new policies or make amendments to the existing ones. This research paper aims to highlight the impact of the monetary policy on household debt in China. The study covers the time period from 1996 to 2020 The study employs a cointegration test, Autoregressive Distributed Lag Bound Test (ARDL) approach, a Augmented Dicky Fuller (ADF) and PP test (PMG) and time series data. The findings suggest on a quantitative analysis using a time-series model in which gdp per capita and interest rate has a positive impact on household debt whereas, cpi doesn't have significant impact. In a short-term variables relationship, household debt responds more to an increase in income than in the long-term. Also, the impact of interest rate changes on household debt is lower than income in the short run.The research suggests that there should be some restrictions on household debt and consumer financing provided to citizens and for this, appropriate leverage measures should be taken in order for the central bank to sustain robust macroeconomic conditions.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.69-77
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• 2021

The objective of this research is to explore the inconclusive theoretical and empirical association between institutional ownership and firm performance in the context of emerging Pakistani economy. The data set consists of all the non-financial firms listed on the Pakistan Stock Exchange (PSX). Annual data set covers the period ranging from 2010 to 2015. However, the econometric analysis does not include those firms with incomplete data. Thus the final data set comprised of an unbalanced panel of sample of 276 firms with 1231 firms years observations. Data related to the institutional ownership and other variables taken for the study were extracted through the annual financial reports of the firms. The research used Tobin's Q as a proxy of market measure of firm performance and tested the endogenous relation with institutional ownership through OLS and 2SLS approach. The study also applied Durbin-Wu-Hausman test to determine the endogeneity before analyzing the 2SLS model. The Durbin-Wu-Hausman Test (DWH) conform the endogenous link between institutional ownership and performance and vice versa. The results derived from 2SLS also confirm a highly significant relationship and two way direct proportional relationships between the institutional investment and corporate performance in the studied companies.