• The Journal of Asian Finance, Economics and Business
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• v.8 no.11
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• pp.223-234
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• 2021

This study aims to examine whether operating cash flows influence banks' financial stability in Pakistan. The study employed annual panel data collected from annual reports of 20 commercial banks listed on the Pakistan Stock Exchange for the year 2011 to 2019. Free cash flow yield was taken as the dependent variable while cash flow ratio was selected as the independent variable, and net interest margin, income diversification, asset quality, financial leverage, the cost to income ratio, advance net of provisions to total assets ratio, capital ratio, financial performance, breakup value per share and bank size were taken as control variables. The study performed ordinary least square technique, random and fixed effects models, Hausman test, Lagrange multiplier test, descriptive and correlation analysis. Results showed that operating cash flows and net interest margin significantly and positively influenced banks' financial stability while the cost to income ratio and advances net of provisions to total assets ratio significantly and negatively associated with banks' financial stability. To improve financial stability, banks should become more cost-effective and enhance their liquidity levels by lowering lending activities. In the future, it would be useful to compare commercial and investment banks, also Islamic and conventional banks in the same research setting.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.11
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• pp.1-10
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• 2021

This paper compares the performance of Fama-French three-factor and five-factor models using a dataset of 20 Pakistani commercial banks for the period 2011 to 2020. We focus on an emerging economy as the findings from earlier studies on developed countries cannot be generalized in emerging markets. For empirical analysis, twelve portfolios were developed based on size, market capitalization, investment strategy, and growth. Subsequently, we constructed five Fama-French factors namely, R_M, SMB, HML, RMW, and CMA. The OLS regression technique with robust standard errors was applied to compare the predictive power of both the Fama-French models. Further, we also compared the mean-variance efficiency of the Fama-French models through the GRS test. Our empirical analysis provides three unique and interesting findings. First, both asset pricing models have similar predictive power to explain the expected portfolio returns in most cases. Second, our results from the GRS test suggest that there is no noticeable difference in the mean-variance efficiency of one asset pricing model over the other. Third, we find that all factors of both Fama-French models are statistically significant and are important for explaining the volatility of expected commercial bank returns in the context of Pakistan.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.29-35
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• 2021

This study discusses the effect of human capital and technology on economic growth in Indonesia using annual time series data over the 35-year research period (1984-2019). This study uses an autoregressive distribution gap to the cointegration approach to understanding the relationship between human capital, technology, and economic growth. Human capital is inherent in humans and becomes capital in providing the best performance that has an impact on their own income. We use the human capital framework in this study where education is one mechanism to increase human capital. Based on the results of our estimation, we find that the increase in human capital using the education mechanism affects economic growth. This shows the role of human capital investment is very important in economic growth. Technology shows a significant positive effect on economic growth. Increasing human resources and technology are important factors in efforts to increase economic growth in Indonesia. Educational development is the key to the success of increasing human capital and technological development because education plays a role in improving the quality of human resources. Increasing human resources here is in the form of increased knowledge, mastery of technology, innovation, and the ability to develop technology to encourage technology development.

• Journal of Korean Society of Water and Wastewater
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• v.33 no.4
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• pp.299-309
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• 2019

Waterworks facilities inevitably experience some amount of leakage even if there is a lot of investment or state-of-the-art technology that is applied such as DMA(District Metered Area) system construction, leakage detection, repair, pipe rehabilitation, etc. The primary reason is the leakage is naturally restored over time. In the UK, this restoration characteristic is defined as NRR(Natural rate of rise of leakage) and used to decision making for prioritizing active leakage control of DMAs. However, this restoration characteristic is well recognized, but researches on NRR in the water distribution system are insufficient in Korea. In this study, the estimation method of NRR was developed suitable for applicating in Korea considering of SCADA data, water infrastructure, and water usage patterns by modification of the UK's NRR method. The proposed method was applied to 9 DMAs and verified it's applicability by comparing with the other water loss performance indicators. It is expected that the proposed method can be used to support decision making for sustainable NRW(Nor-revenue water) management in the water distribution system.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.725-735
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• 2021

This study investigates whether the Islamic Exchange-Traded Funds (ETFs) provide significant benefit to investors relative to conventional ETFs. Six pairs of Islamic and conventional ETFs with 10-year daily price data from 2010 to 2019 have been selected from major market indices like MSCI World Index, MSCI Emerging Markets, MyETF Dow Jones Islamic Market Malaysia, MSCI South East Asia and Wahed FTSE Shariah USA Index for this study. For ETFs that are launched after 2010, the price data from launch date to 2019 are used. Our results show: First, Islamic ETFs are more likely to trade at a premium rather than at a discount, implying the investors are willing to pay a premium. Second, it is also found that Islamic ETFs have a relatively shorter period of price deviation from the benchmark, implying more price stability. Third, conventional ETFs have higher return and lower tracking errors relative to Islamic ETFs. These new findings add to the stylized facts of Islamic ETFs in the extant literature for investors, plan sponsors and regulators as to the differences between the ETFs. As policy suggestion, asset management companies can design new investment products to bridge the gap between conventional and Islamic finance.

• Journal of The Korean Society of Agricultural Engineers
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• v.63 no.4
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• pp.65-86
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• 2021

This study aims at testing a hypothesis that the resilience of agricultural water systems is characterized by trade-offs and synergies of effects from climate and socioeconomic change. To achieve this, an Agricultural Water System Climate Resilience Assessment (ACRA) framework is established to evaluate comprehensive resilience of an agricultural water system to the combined impacts of the climate and socioeconomic changes with a case study in South Korea. Understanding dynamic behaviors of the agricultural water systems under climate and socioeconomic drivers is not straightforward because the system structure includes complex interactions with multiple feedbacks across components in water and agriculture sectors and climate and socioeconomic factors, which has not been well addressed in the existing decision support models. No consideration of the complex interactions with feedbacks in a decision making process may lead to counterintuitive and untoward evaluation of the coupled impacts of the climate and socioeconomic changes on the system performance. In this regard, the ACRA framework employs a System Dynamics (SD) approach that has been widely used to understand dynamics of the complex systems with the feedback interactions. In the ACRA framework applied to the case study in South Korea, the SD model works along with HOMWRS simulation. The ACRA framework will help to explore resilience-based strategies with infrastructure investment and management options for agricultural water systems.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.375-386
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• 2021

The purpose of the research was to explore the factors which affect service innovation in organizations and how the utilization of resources can improve organizational performance, and gain a competitive advantage by adopting numerous innovative practices. This study hypothesizes Service Innovation Readiness (SIR) to consist of Strategic Alignment favoring Service Innovation (SASI) and Empowering Structure for Service Innovation (ESSI), which regulate the organization's preparedness to adopt service innovation changes. Six dimensions were identified and analyzed to understand their effects on SASI and ESSI. A structured questionnaire on a 5-point Likert scale was used to collect data from the selected hospitals of Saudi Arabia. The research results contribute considerably to the subject matter by theorizing SIR and the complex variable settings essential for embracing SI. This research also provides some understanding of the service innovation management dimension through a complete assessment that measures the organization's readiness and attempts to direct organizations' efforts to achieve and sustain competitive advantage. The study conducted is unique in the current geographic limits and has explored numerous SI areas of an organization's readiness to adopt service innovation.

• The Journal of Economics, Marketing and Management
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• v.9 no.1
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• pp.15-24
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• 2021

Purpose: This study measured the consumer-perceived importance and satisfaction of eco-friendly food selection factors and performed the IPA to derive the factors that need to be maintained, reinforced, improved and selectively improved or where investment need to be minimized, and thus provide some clues for eco-friendly food companies' sales growth. Research design, data and methodology: To this end, efficient questionnaires of a total of 312 respondents who answered the questions about the importance of and the satisfaction with 20 selection attribute factors of eco-friendly foods were returned, and then, paired-samples t-test and IPA by all respondents, gender, age and incomes were conducted. Results: The analysis showed that a maintenance/reinforcement strategies planned by companies are required for some factors including 'safety' and 'product quality' at the first quadrant, while active improvement strategies are required for others including 'price' and 'flavor' at the second quadrant. Conclusions: The findings show that different marketing strategies should be established for each consumer who often purchase eco-friendly foods, and that more effective and efficient performance of eco-friendly food companies may be acquired by establishing and operating active improvement strategies.

• Asian Journal of Innovation and Policy
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• v.10 no.3
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• pp.355-379
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• 2021

This study examined the evolution of S&T Basic Acts in Korea from the Science and Technology Promotion Act (1967) through the Special Act on STI (1997) to the Framework Act on Science and Technology (2001) in the following aspects: 1) comprehensive plans, 2) coordination mechanisms for S&T policies, 3) enforcement of R&D programs and performance diffusion, 4) promotion of human resources, 5) and S&T investment and budgeting. Before the Framework Act on S&T was enacted in 2001, critical issues were found in establishing S&T master plans, promotion of R&D programs, comprehensive coordination mechanisms, and R&D budgeting. The three Basic Acts have expanded the scope of regulation over time to cover the entire cycle of the S&T process. They concern a wide range of issues, including creating a basis for scientific and technological development, S&T promotion, disseminating and commercializing research outcomes, and preventing adverse effects from science and technology. The content of the Basic Acts has evolved in response to changes in the political, economic, and social environment of Korean industry during the past five decades.

• Journal of Korea Trade
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• v.23 no.7
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• pp.64-82
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• 2019

Purpose - This study's the ultimate goal is to analyze competitiveness improvement on multinational enterprises as firstly providing which factors are to strengthen or weaken competitiveness, secondly investigating if hypotheses development and research design is correct and thirdly finding significant implications for research and practices across country specific advantage. Design/methodology - Using feedback data provided by 250 firms, we extracted variable factors and hypotheses, which were empirically carried out by reliability and validity testing, correlation analysis, path analysis, and confirmatory factor analysis to prove which factors are to make the positive effect on the improvement of overseas subsidiaries' management performance and competitiveness. Findings - Through proceeding empirical analysis study, we found out that technology management capability, knowledge management capability, and local management capability had a statistically significant effect on the improvement of overseas subsidiaries' competitiveness, while linked activity capability revealed a negative effect. Originality/value - During business globalization, overseas investments and establishment of overseas subsidiaries have been essential. It is anticipated that this study results would be meaningful for analysis on multinational enterprises' competitiveness and helpful in promoting their entry into Korean market and enhancing their competitiveness. This paper would also help Korea government develops new FDI model and induce more investment from global major companies to Korea region.