• Journal of Distribution Science
• /
• v.21 no.3
• /
• pp.71-82
• /
• 2023

Purpose: This study examines the distribution of income diversification in improving the financial sustainability of private universities amidst difficulties in operational funding during the Covid-19 pandemic with IT Capability moderation. Research design, data and methodology: Closed survey aimed at 468 financial sector leaders from 189 private universities in ten provinces in Indonesia. Results: All income diversification activity variables have a significant positive effect on financial sustainability. In the analysis of liquidity indicators, there are two activities that have a significant positive effect, namely goods and services (β=0.337) and profitable financial management (β=0.124). Furthermore, the results of the solvency indicator test obtained significant positive results in Goods and Services Activities (β=0.337), Commercial Intellectuals (β=0.161), Commercial Contracts (β=0.103), and Profitable Financial Management (β=0.147). The results of the test of higher education growth indicators on three activities have a significant positive effect, namely Goods and Services (β = 0.290), Endowments (β = 0.158), and Commercial Contracts (β = 0.134). The results of the moderation test conclude that IT Capability strengthens the effect of income diversification on financial sustainability. Conclusion: The results of the study as a recommendation for private universities in developing income diversification with information system technology-based management.

• Journal of Distribution Science
• /
• v.20 no.9
• /
• pp.23-28
• /
• 2022

Purpose: Research on banking sustainability plays an important role in helping banks understand the level of risk in different types of companies. Therefore, this study was conducted to determine the factors affecting the sustainability of Joint Stock Commercia l Banks in Vietnam. Research design, data and methodology: The following theories, the factors affecting the bank's sustainability include: Business model diversification (income diversification), bank size, loan ratio, and net interest margin. Data was collected from Joint Stock Commercial banks in Vietnam from 2015 to 2019. With GLS model on panel data with banks listed on Vietnam stock exchange. Results: The analysis results show that net interest income has a positive impact on the sustainable business results of banks through the rate of return on total assets (ROA). The non-interest income hasn't impact on bank stability. From this result, there aren't positive signs of income diversification in banks. At the same time, with the obtained results, the study also provides a policy implication for banks. Conclusions: The study also provides some policy implications to improve the bank stability. Diversifying income in banks is necessary, but how to make it influential banks has not yet been done. Therefore, the adjustments in non-interest business activities need to be carefully considered by banks.

• Journal of Korean Society of Rural Planning
• /
• v.27 no.4
• /
• pp.1-12
• /
• 2021

The purpose of this study is to analyze the effect of crop diversification on farm households' agricultural income. Abundant literature have explored the determinants and efficient strategies for crop diversification. Yet, there is a paucity of research studies that empirically test the effectiveness of crop diversification as a profitable farm management strategy. Utilizing the 2015 Agricultural Census, this study adopts a quasi-experimental research design to compare the outcomes between farm households that opted for crop diversification and farm households that did not engage in such a strategy. In doing so, this study applies the Heckman Selection Model and the decomposition technique to address the problem of selection bias and to identify the causal effect. Our empirical results show that farms that implement diversification are more likely to earn higher agricultural income than non-diversified farms, although the difference would not be much substantial. This study concludes with several policy proposals to stabilize agricultural income in conjunction with crop diversification.

• The Journal of Asian Finance, Economics and Business
• /
• v.9 no.2
• /
• pp.209-215
• /
• 2022

This study aims to analyze the livelihood resources and income diversification of informal recyclers in the Mekong River Delta (MRD). The multiple linear regression model was applied to determine income diversification and total household income with the sustainable livelihood analysis framework developed by the United Kingdom Department for International Development (2000), including human resources, physical resources, natural resources, financial resources, and social resources. The results indicated that up to 25% of itinerant waste buyers worked on average more than 7.3 hours/day, which was higher than the urban near-poor level regulated by the Vietnam government. The results of the regression model revealed that total households' income was affected by the factors of health status, gender, urban location type 1, the amount of potential savings, and informal credit participation, while the factors of health status, urban location, the amount of potential savings, and informal credit participation have the effect of diversifying farm household income. Thus, if the informal waste recycling sector is supported and regulated by proper government management, it will not only help poor households diversify their income, but it will also help poor households diversify their income, particularly women's income, which is vulnerable and lower than male income in the MRD.

• Asia-Pacific Journal of Business
• /
• v.14 no.4
• /
• pp.151-161
• /
• 2023

Purpose - In this study, we examine the factors related to the asset allocation decisions of individual investors who 1) directly invest in stocks or bonds, 2) indirectly invest in various fund products (excluding CMA and MMF), and 3) invest in both products. Design/methodology/approach - We collect a sample of 3,000 individual investors and investigate the factors influencing investment behavior, especially the diversification tendency in asset allocation, with the "Investor Behavior Survey" that is conducted jointly by the Korea Financial Investment Association and the Korea Gallup Research Institute in 2011 and 2012. Findings - Our regression analyses estimate the marginal effects of various factors such as the amount of total financial assets, monthly income, occupation, age, and gender. The results reveal that male investors with manual labor occupations were less inclined to diversify their investments compared to female investors in office jobs. Additionally, higher monthly income is associated with a greater inclination toward diversification. Therefore, if a positive relationship exists between income and educational level, we may suggest that higher educational levels lead to a greater tendency for diversification. Research implications or Originality - Interestingly, investors who engage in direct investments tend to exhibit a weaker diversification tendency as the amount of their direct investment increases. On the other hand, investors who engage in both direct and indirect investments show a weaker diversification tendency as the amount of total financial assets increases. This suggests that the investment style of investors is closely related to their diversification behavior.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.5
• /
• pp.291-304
• /
• 2020

This paper examines the factors that drive temporal income diversification in rural areas of the Mekong River Delta in Vietnam, based on a framework that conceptualized diversification as a function of a household's capacity to diversify and incentives (both push and pull factors) to diversify. Drawing from five rounds of the Vietnam Living Standard Measurement Surveys covering a 13-year span (1993-2006), two panel datasets made from five cross-sectional samples are used for the analyses. The data are drawn from the Vietnam General Statistics Office. Both tobit model and Ordinary Least Squares model with random and fixed effects are applied. The main points emerging from the analysis is that income diversification is strongly influenced by household labor capacity. The relationship between household labor capacity and increasing insertion in non-farming wage activities is not driven by unobserved time-invariant factors such as household ability and motivation, but is instead driven by the higher labor capacity of households. In terms of the other household capacity variables, the effect of farm size is much larger in terms of retaining households in traditional occupations as compared to pushing them towards non-farm wage employment. Other variables such as household access to financial capital do not play an important role.

• Journal of Ecology and Environment
• /
• v.42 no.4
• /
• pp.139-149
• /
• 2018

Background: Ethiopia is among the poorest countries where land degradation caused livelihood problem to its inhabitants. The livelihood of rural communities in Ethiopia is seriously threatened by land degradation. Land is the major natural resource that economic, social, infrastructure, and other human activities are undertaken on. Thus, land resources play an important role in shaping rural livelihoods, and lack of sustainable land management practices leads to land degradation. Thus, this study aimed to analyze interlink between land degradation and livelihood of rural communities in Chilga district, Northwest Ethiopia. It also addresses the factors which influence income diversification for livelihood of households in the study area. Result: The result depicts that the major causes of land degradation are both natural and anthropogenic. Land degradation and livelihood are negatively interlinked with each other. The livelihood of the majority of the population in the study area is dependent on subsistence agriculture both farming and animal husbandry with low diversification. The survey result showed that more than half (69%) of the sample households have farm size of less than 2 ha, nearly one third (31%) have 2.0-2.5 ha, and insignificant number of farmers have more than 2.5 ha. More than 80% of the respondents pointed out that land degradation has impacts both on crop yield and livestock production. Most of the explanatory variables such as gender, age, education level, farmland size, and family size have statistical significant influence (at P < .01 and P < .05 levels) for income diversification of households, while marital status on the other hand is not statistically significant though it has positive relation with income diversification in this study. Conclusions: Our results suggest awareness should be created in the community about the livelihood diversification mechanisms which enabled them to engage in different income-generating activities and comprehensive watershed management should be implemented.

• The Journal of Asian Finance, Economics and Business
• /
• v.10 no.1
• /
• pp.123-132
• /
• 2023

This study seeks to determine if the efficiency of bank human resources, as played by human capital, impacts the performance and diversification of banks. This study uses secondary data from data obtained from 385 commercial banks in 33 countries in Asia during the 2010-2020 period with the diversification analysis method. We use the Z-score to measure the amount of standard deviation that must be from earnings (ROAA). We examined it using the Tobit regression technique. According to the regression estimation results, human capital has a significant role in the performance and effective diversification of Asian banks. The human capital efficiency coefficient (HCE) is significantly negative with the cost-to-income ratio (CTIR) and significantly positive with Profitability, Financial Stability, and cost efficiency score. The level of efficiency of human resources has an effective role in increasing human capital which has an impact on bank diversification and performance. The development of human resources in a human capital framework plays an important role in the diversification and improvement of bank performance. Human capital has a significant role in the performance and effective diversification of Asian banks. The level of efficiency of human resources has an effective role in increasing human capital which has an impact on bank diversification and performance.

• KDI Journal of Economic Policy
• /
• v.46 no.1
• /
• pp.53-89
• /
• 2024

The effects of the betterment of enforced intellectual property rights (IPRs) provisions on services export diversification are investigated. The analysis used an unbalanced panel dataset of 76 developing countries over the period of 1970-2014. The empirical analysis is based on the feasible generalized least squares estimator. It suggests that the implementation of weaker IPR protection fosters services export diversification in less developed countries (i.e., those whose real per capita incomes are less than US$US$ 1458.60), including those with a low level of export product upgrading. Conversely, in relatively advanced developing countries (countries whose real per capita income exceeds US$ 3356.80), including those with high levels of export product upgrading, the implementation of stronger IPR laws induces greater services export diversification. Finally, the analysis revealed the existence of a non-linear relationship between IPR protection and services export diversification. The implementation of stronger intellectual property laws spurs services export diversification in countries with high degree of IPR protection, especially when IPR protection exceeds a certain level, recorded here as having a score of 1.197. In contrast, in countries with weaker IPR protection, in particular those with IPR protection levels that score less than 0.915, it is rather the implementation of weaker intellectual property laws that promotes services export diversification.

• Journal of Korea Trade
• /
• v.25 no.5
• /
• pp.74-92
• /
• 2021

Purpose - Utilizing a large sample of Korean firms, this study examines international diversification impacts on corporate tax avoidance and whether firms affiliated with large business groups (known in Korean as "chaebol") reinforce the relationship between international diversification and tax avoidance. Design/methodology - This paper hypothesizes that 1) international diversification is likely to increase tax avoidance, 2) the positive effect of international diversification on tax avoidance is likely to be more pronounced for chaebol firms. We examine the hypotheses by using Korean firms listed in the Korean stock market between 2011 and 2016. We employ the number of foreign subsidiaries and the entropy index as proxies for international diversification and CASH ETR and GAAP ETR as proxies for tax avoidance. Findings - Our findings are summarized as follows. First, we have found that as firms are more internationally diversified, tax avoidance increases. It means that international diversification can be employed as a method of reducing the tax burden. Second, firms affiliated with chaebol are strengthened by the positive relation between international diversification and tax avoidance. It is interpreted that chaebol firms have more effective opportunities to reduce taxes than other firms. When entering foreign markets, they can share experience and resources to decrease taxation within the large business group. Originality/value - This study provides empirical evidence regarding the tax effect of international diversification. Unlike prior studies, international diversification is positively related to tax avoidance in Korea. In addition, we present additional evidence on the chaebol effects of international diversification on tax avoidance, in which they have an advantage to reduce taxes using transfer pricing through related party transactions, income shifting to low tax rate countries, and establishing subsidiaries in tax havens.