• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.12
• /
• pp.399-409
• /
• 2021

The demographic characteristics of a leader are important for small businesses during the COVID-19 pandemic. Several researchers have proven that demographic characteristics affect business success. Unfortunately, business success has only been analyzed from a financial perspective and has not been compared to the owner's interests perspective. This study examines business success from both perspectives. This study aims to analyze the demographic characteristics of small entrepreneurs and their impact on business success. Demographics consist of age, experience, education, and gender. Meanwhile, business success is seen from two perspectives: financial performance and the owner's interest. The study used an explanatory survey method. The number of samples is 155 entrepreneurs who are also the leaders of their businesses. The research was conducted in Bandung City, Indonesia, in 2021. The data was processed using descriptive statistics and multiple regression. The study results found that age only affects financial performance. Experience is proven to affect financial performance and the interests of the owner. Gender only affects the interests of the owner. This study concludes that in difficult times such as the COVID-19 pandemic, having young leaders who are experienced will make it easier to achieve business success.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.12
• /
• pp.731-738
• /
• 2020

Though their activities, companies have an impact on environmental problems and nature conservation. The accounting sector can play a role in environmental conservation efforts related to environmental costs, and the implemention of the Corporate Sustainability Management System (CSMS) could be a key factor that can improve the company's financial performance. This study aims to determine how green accounting through the application of CSMS can improve the financial performance of manufacturing companies in Indonesia, a developing country. The sampling method used was purposive sampling, while the research sample consisted of 38 companies that had followed PROPER and were indexed on the IDX. Data were analyzed using the Structural Equation Modeling (SEM) method known as the Partial Least Square (PLS) method. The results of this study indicate that manufacturing companies in Indonesia are able to implement green accounting by allocating appropriate environmental costs by earmarking a portion to carry CSMS implementation so as to improve financial performance. People in Indonesia consider that manufacturing companies that have good company rankings in the evaluation program for company performance ratings in environmental management run by the Indonesian Ministry of Environment are in a position to generate customer loyalty, especially in financial performance.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.11
• /
• pp.867-875
• /
• 2020

Quality internal audit (IA) plays a crucial role in accountability, transparency and preserving public properties. This paper gives a brief background of the IA system in Yemen and examines its impact with regards to financial performance in Yemeni commercial banks based on five factors: (i) independence of IAs, (ii) adherence to IA standards, (iii) governance principles implementation, (iv) size of the IA, and (v) frequency of internal audits committees' meetings. The primary data for the study were collected through a questionnaire prepared for this purpose. Fifty questionnaires were distributed out of which forty-two were retrieved and valid in the analysis process. For the empirical analysis, descriptive analysis and T-test were used for verification of the research hypotheses. Results revealed that sticking to standards internal audit, internal auditors' independence and quality governance have significant impact on banks' financial performance, while the size of internal audits committees, as well as their meeting, frequently has insignificant positive impact on banks' performance. Moreover, the country results show that the use of automated internal audit in banks has an impact on improving financial performance. This article provides avenues for further studies, mainly in developing countries, including Yemen, in quality internal audit and financial performance.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.4
• /
• pp.897-907
• /
• 2021

The purpose of this study is to investigate the quality of entrepreneurship - motivation, entrepreneurial orientation, and risk behavior - in relation to the odds of micro-, small- and medium-sized enterprises' (MSMEs) financial performance in Indonesia. Additionally, this paper investigates how these qualities apply for the current challenges perceived by MSMEs' entrepreneurs in Indonesia due to Covid-19 crisis; specifically, this paper examines the odds of MSMEs' financial performance during the pandemic in respect to when these qualities are implemented by the entrepreneurs. The empirical data was obtained from an online survey by means of a structured questionnaire. MSMEs surveyed were randomly selected on a national scale. To test the hypotheses, a quantitative approach is employed, using multinomial regression. The main result shows that, under normal economic environment, the more intrinsically-motivated and continuity-driven entrepreneur is, the more likely the MSME will achieve financial growth compared to remaining stagnant. To our surprise, innovativeness leads to less likelihood of MSME's financial growth, suggesting the significance of innovation does not apply to MSMEs in Indonesia. Lastly, MSMEs' risk behavior to operate in a stable business environment is found more likely to result in a better performance and is true for operational and financial risks, but not marketing risks.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.3
• /
• pp.539-549
• /
• 2021

This study aims to examine the relationship between corporate social responsibility (CSR) expenditures and both financial and non-financial performance of Jordanian commercial banks during the period 2008-2018. To measure the variables of interest, secondary data published on Amman Stock Exchange (ASE) website were processed to become preliminary data suitable for the nature of the study. The study sample amounted to 13 commercial banks, which represent all Jordanian commercial banks listed on ASE.. The study found that there is a positive, statistically significant relationship between CSR expenditures and financial performance, as the study showed that the return on equity (ROE) has a positive and significant relationship with CSR expenditure, while the return on assets (ROA) and Tobin's Q model have a statistically significant negative relationship with CSR expenditure, while the market stock price (MSP) had a positive, but not statistically significant. The study also found that there is a positive, statistically significant relationship between CSR expenditures and non-financial performance, which was represented by total deposits and total training expenditures in Jordanian commercial banks. Accordingly, the study recommends encouraging banks to prepare sustainability reports and CSR reports, which are considered comprehensive, and not only with disclosures within the annual reports.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.8
• /
• pp.75-83
• /
• 2021

For many years, many academics and practitioners have paid attention to the increasing popularity of corporate social responsibility (CSR) and its relationship with financial performance. They have shown that creating social and sustainable responsibility can strengthen the organization's financial performance as the organization can achieve its current needs without compromising the ability to meet future needs. While much theoretical and empirical evidence has been provided to support this argument in developed countries, this topic is under-researched, and the outcomes are controversial in developing countries. Therefore, this paper aims to examine and investigate the relationship between corporate social responsibility and financial performance in Vietnamese organizations. The dataset includes 27 firms listed on the stock market exchanges in Ho Chi Minh city (HOSE) and Hanoi (HNX) from 2015 to 2019. The disclosure approach is adopted to measure corporate social activities; four areas were developed: environment, community, employee and product, customer, and supplier practices. Return on average equity (ROE) and return on average assets (ROA) are two proxies for measuring financial performance. The research results confirm the existing literature with a strong correlation between employees and returns on average assets.

• Journal of Korea Port Economic Association
• /
• v.30 no.3
• /
• pp.187-207
• /
• 2014

The purpose of this paper is to examine the business performance difference based on the ownership structure type in the aspect of profitability and stability. In order to conduct this analysis in two aspects, the ship financial institutions have been classified into two groups: state-owned banks and private-owned banks. First of all, the difference of ROE and ROA between private and public ship financial institutions is statistically significant, but no difference has been shown in terms of stability measured through BIS capital adequacy ratio. Second, to test the business performance difference according to the ownership structure types before and after the global financial crisis, we examined the outcome difference in the ship financial institutions in terms of profitability and stability. However, in the event that the analysis was conducted with public and private financial institutions, the business outcome difference before and after the global financial crisis has been shown in the sector of private financial institutions, but has not been shown in the sector of public financial institutions. It is meaningful that this study is the first work which examined the difference of the operating performance by the ownership structure types of ship financial institutions. However, it is noted that small sample for this empirical study is a limitation of this thesis.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.12
• /
• pp.465-474
• /
• 2020

This study investigates how financial resources and entrepreneurial orientation (EO) may influence the performance of small- and medium-sized enterprises (SMEs) in the United Arab Emirates (UAE). Twenty-seven interviews were conducted and evaluated using the method of GABEK® (A GAnzheitliche BEwältigung von Komplexität - holistic processing of complexity). The research demonstrated that access to financial resources has significantly mediated EO's effect on the SMEs' performance. The study found that financial autonomy, enhanced through both personal financing and availability of external finance sources, plays a central role in supporting the EO dimension of autonomy and enhancing the SMEs' performance. In particular, the other EO dimension of risk-taking is stymied by lack of funds with which to take commercial and market opportunities. However, when an innovation strategy is pursued and adopted, access to finance can be facilitated, either through financial institutions or through other governmental funding programs attracting high potential innovators. Furthermore, financial barriers, difficulties accessing bank financing, and legal issues have a detrimental impact on SMEs' growth. The study has implications for policy-makers in the UAE, specifically in terms of sending a signal for lending institutions to consider strategies that provide access to affordable financial services to satisfy SMEs' needs.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.7
• /
• pp.105-112
• /
• 2020

The study investigates and measures the impact of capital structure, profitability and financial performance on the success of the business organization. Capital structure of the business organization refers to the proportion of external funds and internal funds, i.e., debt and equity. In Saudi Arabia, petrochemicals companies are working on equity, but financial performance reflects negative trend for the period 2004 to 2016. The research is based upon secondary data available on the websites of petrochemicals companies of Saudi Arabia. Financial Ratio variability analysis and Trend Indices of financial ratios (TI_CBI) measure and compare the financial variability and sensitivity of financial ratios of the business organization. Correlation between Trend Indices (TI_CBI) of independent variable and dependent variables are to be calculated to know the impact of changes in debt equity on other dependent variables. The results reveal the unexpected performance of petrochemicals companies due to under-utilization of the resources caused by low demand and lower prices of the products governed by some internal and external factors. The study finds that size, demand, cost of production, profitable streams of products, and low cost capital in external funds are the factors responsible for overall growth development of the petrochemicals industry of Saudi Arabia.

• The Journal of Asian Finance, Economics and Business
• /
• v.6 no.3
• /
• pp.327-337
• /
• 2019

The aim of this research is to contribute to enhancing the competitiveness of automotive parts suppliers while departing from the dependent relationship structure, by developing and interpreting factors that affect sale, which are financial achievements, in a practical way. The research data covered 200 companies from 2013-2017. The study hypothesis was verified by dividing the hypothesis into Model1 with control variables only and Model2 with control variables in independent variables. As a result of hypothesis testing, regarding sales, only capital size showed to have an effect in Model1, while in Model2, asset size, number of employees and joint ventures with foreign companies did but the other remaining factors did not. In particular, the results showed that an increase in financial performance required 'Economies of scale', and that companies that concentrated on a small number of items, diversified products into four or more items, or owned two to four suppliers, reaped positive results in financial performance. Therefore, in addition to the selection and concentration of corporate management for production items and account management, applying strategies, like the inter-company M&A, consortiums and co-branded strategies to achieve 'Economy of scale', would highly enhance the financial performance of automotive parts suppliers.