• Journal of Korea Trade
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• v.24 no.8
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• pp.81-100
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• 2020

Purpose - Based on complexity theory, this study develops a configurational model to predict the profitability of Halal cosmetics firms in the Indonesian and Malaysian markets. The proposed research model involves two level configurations-industry context and selling strategies-to predict high and low scores of a firm's profitability. The industry context configuration model comprises industry stability, product homogeneity, price sensitivity, and switching cost. Selling strategies include customer-focused, competitor-focused, and margin-focused approaches. Design/methodology - This is the first empirical study that calculates causal models using a combination of industry context and selling strategy factors to predict profitability. Data obtained from the marketing managers of cosmetics firms are used to test the proposed configurational model using fuzzy-set qualitative comparative analysis (fsQCA). It contributes to the current knowledge of business marketing by identifying the factors necessary to achieve profitability using analysis of condition (ANC). Findings - The results revealed that unique and distinct models explain the conditions for high and low profitability in the Indonesian and Malaysian halal cosmetic markets. While customer-focused selling strategy is necessary to attain a higher profit in both the markets, margin-focused selling strategy appears to be an essential factor only in Malaysia. Complexity of the interactions of selling strategies with industry factors and differences between across two study markets confirmed that complexity theory can support the research configurational model. The theoretical and practical implications are also illustrated. Originality/value - Despite the rapid growth of the global halal industry, there is little knowledge about the halal cosmetic market. This study contributes to the current literature of the halal market by performing a set of asymmetric analytical approaches using a complex theoretical model. It also deepens our understating of how the Korean firms can approach the Muslim consumer's needs to generate more beneficial turnover/revenue.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.231-239
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• 2021

The purpose of this study is to analyze the effect of risk efficiency, financial decisions, and financial performance on firm value due to advances in financial reporting technology. This research was conducted on all banking sub-sector companies listed on the Indonesian capital market during a period of eight years, namely 2012-2019 which were selected using the purposive sampling method. The advancement of financial reporting technology is measured by two indicators based on the Internet financial reporting approach. Risk efficiency is measured using three indicators with a risk proxy relative efficiency approach using value at risk. Financial decisions are measured by two indicators that represent funding decisions and investment decisions. Financial performance is measured by two indicators with the profitability approach, and firm value is measured by two indicators based on the investor perception approach. The data analysis technique in this study used multivariate analysis with SEM-PLS. The empirical findings of this study are the advances in financial reporting technology, financial decisions, and risk-based efficiency value have a significant effect on firm value, while financial performance does not have a significant effect on firm value. Banking companies reduce risk to achieve efficiency and result in lower profits.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.349-356
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• 2021

This study comprehensively investigates whether there is an impact of risk, size, profitability, earnings per share, dividend yield, and book-to-market equity on the stock prices of Jordanian banks listed on the Amman Stock Exchange (ASE) for the period 2006-2018. To mitigate endogeneity concerns and to control for within-bank dynamics, panel data fixed effects estimations are used. This study shows that size (SIZE), profitability (ROA), dividend yield (DY) and book-to-market equity (BE/ME) ratios are statistically significant determinants of stock prices. The risk (RISK) factor measured by volatility of ROA has a positive and significant effect on the stock prices, while earnings per share has minimum influence on the stock prices. The results show that ROA has a significant and positive effect and provides the largest effect among all variables used in this study, while the RISK factor has a positive and significant effect. In contrast, SIZE, DY, and BE/ME have a significant negative effect on stock prices. The paper presented new evidence showing that ROA is a better determinant of stock prices in Jordanian banks, and RISK significantly affects stock prices. The researcher recommends using a factor of profitability represented by ROA which has a significant positive effect on the stock prices in Jordanian banks and applying the ROA variable to other sectors.

• (The) Korean Journal of Advertising
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• v.27 no.4
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• pp.71-90
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• 2016

Managers of firms often wonder whether advertising expenditure is a mere expense or an investment with foreseeable future returns. When top management makes a decision on the level of advertising expense, it must consider whether an increase in advertising spending will positively affect brand loyalty and the increased brand loyalty will positively affect profitability and firm value. We investigate the industry-specific effects of advertising spending on marketing and the effect of loyalty on financial performances using top companies in Korea, specifically, 184 firms' data from year 1998 to 2014. The empirical results of a fixed effect model indicate that the effects of advertising on customer satisfaction index and loyalty on the firms' financial performance are positive. In service industry, unlike manufacturing industry, advertising has a significantly positive effect Brand Loyalty. In addition, Brand Loyalty had positive impacts on ROA and ROE as profitability index, and Tobin's q, a market-value index. The research results suggest that advertising in service industry should be considered as customer satisfaction investment and the increased Brand Loyalty as a profit for present and a business investment for the future respectively.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.4
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• pp.37-43
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• 2019

The research aims to study the relationship between export performance and stock return of Vietnamese fishery companies. To conduct this study, quarterly data was collected for period from 2010-2018 of 13 fishery companies listing in Ho Chi Minh Stock Exchange (HOSE) and Ha Noi Stock Exchange (HNX). The export performance was measured by export intensity, export growth and export market coverage. In addition, interest rate, exchange rate, GDP, firm size, profitability, and financial leverage were considered as the control variables in the research model. Panel data analysis with Generalized Least Squares model was employed to estimate the predictive regression. The findings indicated that export intensity and export growth have a significant and positive relationship with stock returns. However, export market coverage has not a significant relationship with stock return at the 0.05 level. Profitability, financial leverage, and exchange rate have a positive relationship, while interest rate and GDP have no relation to stock return at the 0.05 significance level. The findings imply that investors should consider the export intensity instead of export growth and export market coverage as selecting stock of fishery exports firms to invest; managers should increase export intensity to increase company's stock price or firm market value.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.2
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• pp.75-87
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• 2020

This paper aims to not only investigate the nature of financial security and its measurement, but also to compare financial security level in 629 listed companies divided into four different industries (materials, industrials, health care, and consumer goods) before building a theoretical framework and regression models to examine the determinants of financial security. By gathering 2,167 financial statements published in Vietnamese Stock Exchange during eight years from 2012 to 2019, with the support of STATA, the research results indicate that six different internal factors, which are liquidity, profitability, firm size, debt management ratios, asset management ratios, and cash flows, explain 77.7% the change of financial security ratio and 3.4% the change in sustainable growth ratio. Specifically, while firm size has a positive impact on sustainable growth ratio but a negative impact on financial security ratio, deb management and profitability have an insignificant influence on the financial security level. Furthermore, an increase in asset management ratios would result positively in both two dependent variables whereas a rise in sustainable growth and a decline in financial security ratio are expected to witness if there is an increase in cash flows.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.1
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• pp.145-156
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• 2023

Within the context of publicly traded Sharia-compliant companies in Malaysia, this study investigated the influence that board and company characteristics have on corporate donations. The primary focus of the study was (i) two board characteristics derived from upper echelons theory, namely gender composition and education level, and (ii) four firm variables derived from stakeholder theory, specifically company size, profitability, leverage, and industry category. This study used a total of 402 Shariah-compliant companies that operated in accordance with Shariah law. The information utilized in this study was culled by hand from the annual reports of various companies covering the years 2017 through 2019. According to the findings, the educational level of a company's board of directors has a significant impact on the amount of money donated to charitable organizations by Shariah-compliant companies. The level of expertise possessed by board members can be of assistance to businesses in becoming more aware of the necessity of making contributions or donations. Corporate contribution practices among Shariah-compliant companies in Malaysia were also significantly influenced by the firm's size, profitability, and the industry category in which the business was classified. The findings of the study contribute to a better understanding of the impact that board and company variables have on the activities of corporate donors.

• Proceedings of the Technology Innovation Conference
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• 2005.08a
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• pp.5-28
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• 2005

This paper estimates the effect of networks on innovative performance at the firm level , using Korean Innovation Survey (KIS) dataset Product innovation, product improvement , and process innovation are used as proxies for innovative activity. The explanatory variables such as firm size, market concentration ratio, lagged profitability, foreign ownership, export ratio, firm's age, formal R&D activity, and industrial R&D intensity are yet other considerations. With two year-long (2000 and 2001) data from 1,124 Korean manufacturing firms, we estimated the logistic regression model. The research finding indicates that the external networks have a strong positive effect on innovative output regardless of type of innovation. However, the network effects by partner (other firms or research institutions) vary across the type of innovation. Especially, we found that the user-supplier linkage plays an important role in product ion innovation, product improvement, and process innovation.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.1
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• pp.19-27
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• 2020

This paper aims to empirically study the determinants of liquidity of Indian listed firms. To account for profit persistence, we apply a (pooled, fixed and random) effect models to a panel of Indian listed firms that covers the time period from 2010 to 2016. This study consists of 2154 firms operating in Indian market. Liquidity (LQD) of Indian firms is measured by liquid assets to total assets, whereas bank size, capital adequacy, profitability, leverage, and firm age are used as internal determinants. Further, economic activity, inflation rate, exchange rate, and interest rate are the external factors considered. The findings reveal that leverage, return on assets, and firm age are the essential internal determinants that impact the liquidity of Indian listed firms. Furthermore, among the internal determinants, the results indicate that firm size, leverage ratio, return on assets ratio, and firm age are found to have a significant positive association with firms' LQD, except leverage ratio and firm age has a negative relationship with firms' LQD. From this result, this article has provides helpful ideas and empirical evidence on the inner and external determinants of the companies mentioned in India is very useful to bankers, analysts, regulators, investors and other stakeholders.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.67-73
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• 2020

The paper examines the influence of internal factors and external factors on liquidity of Vietnamese listed enterprises. The study uses robust regression techniques in the fixed effects linear panel data using data collected from companies listing on the stock market in Vietnam during 2008-2019, with a total of 6,700 observations. Liquidity of Vietnamese listed enterprises is measured by current assets to current liabilities, whereas firm size, capital adequacy, profitability, leverage are used as internal determinants. Further, economic activity, inflation rate, exchange rate, and interest rate are the external factors which are considered. The research results indicate that capital adequacy, return on equity, leverage, economic activity have a positive effect on firm's liquidity, whereas return on assets and exchange rate have a negative effect on firm's liquidity and firm size, inflation rate and lending rate have no correlation with firm's liquidity. Based on the research results, the author suggests that the firms should have optimum current ratio by balancing the current assets and current liabilities in order to avoid a situation of high liquidity or low liquidity. This research seeks to bridge a gap which is present in the body of literature on listed enterprise's liquidity in Vietnam. The findings may be useful for financial managers, investors, and financial management consultants.