• The Journal of Asian Finance, Economics and Business
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• v.7 no.8
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• pp.681-693
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• 2020

This study sees a critical gap in the previous body of research, which it seeks to fill; the disclosure of the unemployment ratio correlation has only been measured by the level of economic growth. This study is to add investment variables and government expenditure variables that objectively aim to measure the level of effectiveness in handling the unemployment ratio, which is then a measurement of the effectiveness of unemployment. Economic growth is measured by its impact on income inequality through empirical, conceptual relationships as a critical review and economic strategy for the future. The research uses secondary data on Indonesian macro and microeconomics since 2003-2018, then testing uses a quantitative approach to correlation, regression, and scatterplot. The results of this study show correlations between variables, and volatiles on the graphs show a similar trend. In other words, variables are bound together and support each other. The strategy of prioritizing the scale of government expenditure and investment to reach the target is the primary concern, so that the economic cycle can be optimal and equipped to face the possibility of an economic recession in the future. Many factors cause complex income inequality, though investment does not show a correlation to income inequality.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.363-370
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• 2021

This study aims to revisit the issues and misconceptions about financial inclusion (FI) indices. For indices construction, this study uses two approaches: one approach following the methodology of Sarma (2008) which is based on UNDP methodology, while the other is the Dynamic Factor Model (DFM)-based index of Stock and Watson (2002) and Rehman et al. (2021). The data of 18 economies of Asia from 1997 till 2017 is used for indices construction and analysis. The authors constructed macro and micro-level financial inclusion indices based on the different types of financial inclusion indicators. Second, the authors have critically evaluated two different approaches, and the results show that Sarma (2008)-based index show financial inclusion's level, while DFM-based index reveal fluctuation in the current year's financial inclusion level due to the prior variations. For measuring the level of financial inclusion, the Sarma (2008) index is effective, while for forecasting the level of financial inclusion, the DFM approach is more appropriate. Furthermore, the micro and macro aspects of financial inclusion should be reflected in separate indices for better understanding and in-depth insights.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.19-29
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• 2021

This study aims to measure financial inclusion and examine its impact on income inequality in a panel of 18 Asian countries over the period 1997-2017. Two alternative approaches for developing financial inclusion index are used: one approach following the methodology of Sarma (2008), while the other is the Dynamic Factor Model (DFM)-based index. The impact of individual indicators and index of financial inclusion on inequality in income is analyzed. The Generalized Method of Moment (GMM) approach is used for empirical analysis. The results indicate that micro-level financial inclusion has a weak negative and statistically significant impact on income inequality. Macro-level index and all individual indicators of financial inclusion do not affect income inequality in the selected sample of economies. The income inequality issues have different natures and cannot be fixed by financial inclusion only. It needs holistic structural reforms to enable fair distribution of income and make an equitable financial system. Financial inclusion is a relatively less important intervention tool regarding fixing the issue of income inequality. This is one of the first studies that used the DFM method for financial inclusion indices construction.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.10
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• pp.19-28
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• 2021

The present study aims to evolve the value cycle of e-business through value co-creation during the Coronavirus pandemic. The population of the study is experts consisting of university professors in the fields of marketing management, e-commerce, and managers of organizations and companies in Iran. Using the snowball sampling method, 50 of them were selected as the sample. This study employs the factor analysis method and structural equation modeling (SEM) approach for identification of the factors. The findings of this study reveal that 10 factors affect the evolution of the value chain into the value cycle, including customer relationship management, e-literacy, value co-creation, e-readiness, and integrated value creation, the logic of service dominance, shared value creation, virtual culture, e-trust, and network economics. Despite the difficulties that COVID-19 has created for businesses worldwide, the evolution of the e-business value cycle through value co-creation in the Coronavirus pandemic can be considered as a positive aspect of the pandemic. In fact, with more pandemics and more customers turning to e-businesses due to the co-creation of customer value, e-businesses can cover their weaknesses and improve their strengths by engaging customers and receiving their feedback, thus transforming their value chain into the value cycle.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.11
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• pp.317-324
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• 2021

This study aims to analyze how to increase the brand loyalty of BPJS Healthcare participants who are Muslim in Indonesia by increasing customer engagement and brand trust. This study is based on the premise that effective customer engagement is the first step toward gaining brand trust and loyalty. The five dimensions of customer engagement, namely enthusiasm, attention, absorption, interaction, and identification, were tested on how they affect brand trust and brand loyalty. This research was conducted by distributing questionnaires to 216 Muslim respondents who were BPJS Health users from six Islamic hospitals in Central Java, Indonesia. Data analysis was performed using a regression test with SPSS. The results showed that the dimensions of customer engagement consisting of enthusiasm, attention, and absorption had a significant effect on brand trust. Meanwhile, the dimensions of customer engagement which consist of interaction and identification, do not affect brand trust. Furthermore, brand loyalty can be influenced by enthusiasm, interaction, and brand trust. Meanwhile, attention, absorption, and identification cannot affect brand loyalty. Thus, the dimensions of customer engagement that can directly affect brand loyalty are enthusiasm and interaction, while those that affect indirectly (through brand trust), are enthusiasm, attention, and absorption.

• 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.5
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• pp.727-739
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• 2021

Over the past decades, the Jordanian government has made great efforts to help poor women start small businesses by providing microcredit and facilitating financial services. Although in Jordan almost hundreds of thousands of women have the ability to contribute more fully to their economy, they are reluctant to do so. Women's participation in economic activities in 2016 was only 13.2%, while the unemployment rate for Jordanian women was 24.1%. The decline in women's participation in small business management has gradually become an important issue following the trial of more than 13,000 Jordanian women for non-payment of their micro-loans. This study aims to identify the factors that hinder Jordanian women from achieving job stability. In this qualitative study, a semi-structured interview method with sixteen open-ended questions was used to collect relevant data. A purposeful sampling method is also used to select participants. To analyze the data, this study used NVivo 11 software as a method. Using System Theory, this study showed that women's failure depends on three factors: women entrepreneurs, the environment around women entrepreneurs, and micro-financial institutions. Findings of this study suggest that strengthen women's entrepreneurship sustainability and minimize the risk of failure should be done through integrated strategies include these three domains.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.807-815
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• 2021

Microfinance is seen as a tool for poverty elimination by providing various services characterized as financial and non-financial to minority groups in the society to be included in the mainstream financial system. This paper seeks to examine the effect of microfinance institutions' (MFIs) financial and non-financial services on women's entrepreneurship and empowerment in Jordan as a developing country. To gain a deeper understanding of the effectiveness of microfinance services, the study is undertaken to address the question of what kinds of services are available and whether the MFI services are in line with the actual needs of women entrepreneurs to improve their performance. Hence, a qualitative approach was adopted in this study using semi-structured interview questions to collect data from twenty-four women entrepreneurs in Jordan. The results showed that, as regards financial services, the most important needs of women entrepreneurs include providing adequate financing with necessary financial facilities such as reducing interest, reducing monthly installments, and extending the grace period, while non-financial services should include holding specialized courses, accessing a counseling center, providing incentives and psychological support, marketing support, and monitoring and evaluation. This study concluded that factors associated with MFI play a crucial role to uplift women entrepreneurs and eliminate gender inequality.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.1079-1089
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• 2021

The development of information technology has promoted organizational transformation through the utilization of an electronic information system. This research aimed to identify factors that influence continuous intention to use E-HRM. This empirical research applies the Technology Acceptance Model and Cognitive Model for identifying significantly impacted areas of continuous intention to use E-HRM in a highly dynamic environment. The data were collected using questionnaires delivered directly to respondents. The sample was 100 employees of ESQ Group selected through random sampling. The variables used were subjective norms (X1), perceived behavioral control (X2), perceived innovativeness (Y1), cognitive absorption (Y2), satisfaction (Y3), and continuous intention to use E-HRM (Y4). Statistical analysis using Structural Equation Modelling (SEM) with Smart PLS was applied. The results revealed that behavioral control (X2) did not influence the continuous intention to use E-HRM (Y4) and that cognitive absorption (Y2) and satisfaction (Y3) did not significantly influence continuous intention to use E-HRM (Y4). Subjective norms (X1) significantly influenced both perceived innovativeness (Y1) and continuous intention to use E-HRM (Y4), perceived behavioral control (X2) significantly influenced both perceived innovativeness (Y1) and cognitive absorption (Y2), and perceived innovativeness (Y1) significantly influenced both satisfaction (Y3) and continuous intention to use E-HRM (Y4).

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.1047-1056
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• 2021

The study aims to analyze the performance-prove goal orientation and organizational culture on employee work performance of performance appraisal by placing employee work motivation as an interning variable. The study was conducted on a quota sample basis with 134 employees and staff in educational institutions under the auspices of Islamic educational institutions in Banyuwangi, East Java, Indonesia. Analysis through structural equation modeling (SEM) was done, and results were obtined which showed that there is an influence of institutional culture on employee motivation and that there is an effect of employee motivation on performance appraisal. However, the statistical output showed that there is no significant effect of performance-prove goal orientation on employee motivation. In testing the mediating effect, the results showed the significant influence of employee motivation in bridging the relationship between organizational culture on performance appraisal, and performance-proven goals and performance appraisal. The theoretical contributions of the findings were in its examination of performance-prove goal orientation with motivational encouragement in educational institutions to analyze the extent to which an individual's self-confidence was able to integrate patterns in distinguishing the approach used, how to use, and the response to a specific situation of directing toward organizational achievement.