• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.433-444
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• 2020

The purpose of this study is to analyze integrated reporting disclosure and its implications on investor reactions. The population in this study is all manufacturing companies listed on the Indonesia stock exchange from 2017 to 2019, totaling 171 companies, and the sampling technique used is purposive sampling method. The method used in this research is a quantitative description using the financial statements of manufacturing companies listed on the Indonesia stock exchange. The data analysis method used is multiple regression analysis with intervening variables using AMOS 24 software. The results of this study show a positive and significant effect of profitability (X1) and company size (X2) on integrated reporting (IR); a positive and insignificant effect of stakeholder pressure (X3) on integrated reporting (IR); a positive and significant effect of profitability (X1) and stakeholder pressure (X3) on investor reactions (Y); a positive and insignificant effect of firm size (X2) and integrated reporting (IR) on investor reactions (Y). Suggestions are that in further studies, we can increase the sample size by including other industries, and in addition to using annual reporting, we can also use other sources such as websites, press releases, and prospectuses to improve the robustness of this study by relying on other data sources.

• Korea Trade Review
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• v.45 no.3
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• pp.91-117
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• 2020

This study aimed to understand the relationships among the institutional pressure and the level of compliance and corporate value. The research focuses on four main variables, which are regulatory pressure, normative pressure, and cultural-cognitive pressure as the institutional pressure, and the CSR score as the level of the firm's compliance. We examined the impact of the institutional pressure on the firm's compliance-level, together with the effect of compliance level on the corporate value. We analyzed the 3,792 CSR data listed in China's A market and 31 province and city-level data from China. Results showed that institutional pressure had a positive influence on the firm's compliance level. The corporate value was greater with a high compliance level when the institutional pressure was high. The firm's compliance level negatively influenced corporate value when the institutional pressure was low. This study took into account a level of institutional pressures in three dimensions when investigating the effect of CSR compliance level on the corporate value. Thus, this study has a unique academic contribution by demonstrating that CSR activities can have a positive or negative effect depending on the institutional environment for each firm. The findings of this study also provide valuable insights to industry practitioners by suggesting the importance of considering the institution-specific condition when deciding to comply with the institutional pressure.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1021-1034
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• 2021

The study investigates and measures the impact of the emotional intelligence orientation on audit sustainability in Vietnam. Survey data for this research were collected from 260 auditors (CPAs) currently working in auditing firms, for the period from April 2020 to July 2020. In this study, we have built a model with two dependent variables (Emotional intelligence orientation and Audit sustainability) and six independent variables (Proactive audit vision, Continuous audit development, Dynamic audit experience, Audit environmental change, Stakeholder expectation pressure, Advocacy culture). The research methods used include Cronbach's Alpha test, exploratory factor analysis (EFA), confirmation factor analysis (CFA) and linear structural model analysis (SEM). The results showed that (1) Proactive audit vision, (2) Continuous audit development, (3) Dynamic audit experience, (4) Audit environmental change, (5) Stakeholder expectation pressure are positively related to emotional intelligence orientation. However, Advocacy culture is not positively related to Emotional intelligence orientation. The findings of this study suggest that emotional intelligence orientation positively impacts audit sustainability (similar to the findings by Thapayom, Ussahawanitchakit, & Boonlua, 2017, 2018 in Thailand). The results of this study provide a scientific basis for managers at auditing firms to make appropriate decisions to improve auditing activities in the coming years.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.4
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• pp.251-259
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• 2022

This study investigates the impact of ownership structures and audit quality on carbon emission disclosure. It also examines how audit quality affects the relationship between ownership structures and carbon emission disclosure. This research includes 106 standalone sustainability reports from non-financial companies that were listed on the Indonesia Stock Exchange (IDX) between 2015 and 2018. Our findings show that family and concentrated ownerships convey less information about carbon emissions. Our results fail to demonstrate that disclosure of carbon emissions could be a corporation's approach to respond to stakeholder pressure and public visibility and to provide legitimacy for its existence. We also find a positive and significant association between high-quality (Big4) auditors and carbon emission performance. Our further result suggests that Big4 auditors seem to compromise their high standard quality on auditing family and concentrated ownership firms. They fail to influence their family and concentrated ownership clients to be socially responsible. Policymakers should support the existence of Big4 auditors as a driver of carbon emission performance. Top management should be proactive to tackle carbon emission issues by adopting stakeholder-driven mechanisms and establishing legitimacy with society. Nevertheless, the involvement of family and highly concentrated shareholders in decision-making processes and information disclosure should not be encouraged.

• Journal of the Korea Safety Management & Science
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• v.22 no.1
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• pp.33-44
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• 2020

This study analyzed how the installation of a pressure gauge in the indoor fire hydrant of an apartment building affected identifying pressurized water in the pipe, making it easier to conduct internal inspection on the fire suppression system, and ensuring reliability of fire suppression. The following are the study's results: First, identifying pressurized water in the indoor firefighting pipe had a positive effect on the installation of a pressure gauge in the indoor fire hydrant. This implies that a higher level of identification of pressurized water in the indoor firefighting pipe had a positive impact on improving the installation and use of a pressure gauge in the indoor fire hydrant. Second, making it easier for the fire safety officer to inspect the fire suppression system had a positive effect on the installation of a pressure gauge in the indoor fire hydrant. This suggests that if it becomes easier for the apartment building's stakeholder to conduct internal inspection or the firefighting facility manager to carry out inspection on the fire suppression system, it would have a positive effect on the installation of a pressure gauge in the indoor fire hydrant. Finally, ensuring reliability in fire suppression had a positive effect on the installation of a pressure gauge in the indoor fire hydrant. This implies that if it becomes easier to identify pressurized water in the indoor firefighting pipe, for the fire safety officer to conduct internal inspection, or for the firefighting facility manager to carry out inspection in accordance with the fire suppression system's internal inspection requirements, it would increase reliability in fire suppression, making it more necessary to install a pressure gauge in the indoor fire hydrant.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.46 no.1
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• pp.1-14
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• 2023

This study is a leading case of empirical analysis of whether, when corporate stakeholders (government, investors, customers, managers, employees) put pressure on companies for ESG management, it affects the introduction and implementation of ESG activities (environmental, social, governance) and affects business performance. As for the research method, a sustainability report was published, and a web survey of Korea Research Inc. was conducted from May 10 to May 20, 2022 targeting ESG management managers of 192 companies, and analyzed through the PLS structural equation model. As a result of the study, it was found that the introduction and execution of ESG is closely influenced by the pressure from the government, investors, managers, and employees, and in particular, the internal pressure of current managers and executives and employees has a great impact on the introduction and implementation of environmental, social, and governance activities. In particular, although external pressure also has some influence, it is practical to suggest that strong internal pressure is necessary for continuous activities and performance. And, methodologically, the main activity indicators of the GRI Reporting Guidelines, which are the most representative ESG management indicators, were developed as a questionnaire, and reliability, validity, and model fit were secured through comparison with indicators of multiple systems and expert reviews. The limitations of this study are that more in-depth analysis by industry or size is possible when ESG management is mature and sufficient samples are secured, and complex ESG pressure factor modeling is possible when more diverse stakeholders are added.

• Korean small business review
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• v.42 no.4
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• pp.173-212
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• 2020

Interest in sustainable management based on the stakeholder perspective is expanding not only within an organization but also across the supply chain. For large companies that have established networks, sustainability management of the supply chain is now a factor that not only determines the social performance of the company as a whole, but also determines its long-term competitive position. Despite these changes in the business world, especially the proliferation of the sustainable supply chain management (SSCM) system, systematic research on SSCM has been lacking. In particular, there was a lack of empirical analysis on which factors promoted the establishment of the SSCM system for large companies and what's the effects of SSCM. In this regard, this study analyzes i) the impact of the social responsibility pressure of customers as external stakeholders and the CSR orientation of purchasing managers as internal stakeholders on supply chain transparency and partnership cooperation respectively, and ii) whether supply chain transparency and partnership cooperation can enhance corporate reputation. The samples used in this study were 69 large companies representing Korea. The results showed that the social responsibility pressure of customers and the purchasing manager's CSR orientation were positively related to the transparency of the supply chain. However, for partnership cooperation, only the purchasing manager's CSR orientation was found to have a positive and significant effect. Meanwhile, both supply chain transparency and partnership cooperation were positively related to the corporate reputation. At the end of the study, discussions on the implications of the results and future research directions will be presented.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.3
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• pp.137-148
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• 2020

The purpose of this study is to investigate factors influencing risk assessment of material misstatement in Vietnamese enterprises listed on stock market. Expert interview method was conducted to discover the scales for three variables including information system, trademark, and risk assessment of material misstatement. Survey method was used to examine the impacts of eight factors on risk assessment of material misstatement. Data is collected from 317 auditors who have excellent experience in auditing financial statements of companies listed on stock market. Then, data is processed by descriptive statistics, reliability analysis, factor extracted analysis, correlative regression analysis, and analysis variance of residual change. The research findings showed that business characteristic, stakeholder pressure, and economic environment have positive relationships with risk assessment of material misstatement. Three variables including operation control and monitor, control environment, and information system negatively affect to risk assessment. Specially, business characteristic and information system, which are elements in internal control, have strongest impact on risk assessment. One the other hand, assessment of internal control plays an important role not only in the audit plan stage but also throughout the stages of the audit implementation and ending. Therefore, appropriate solutions are proposed to carry out all audit stages.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.263-271
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• 2021

The study examined the XBRL adoption process of Malaysian Business Reporting System (MBRS) by utilizing Everett Rogers' Diffusion of Innovation (DOI) theory. The study focused on the three phases, namely, knowledge gathering and persuasion phase, decision-making phase, and implementation phase of XBRL adoption process gathered from a government agency in Malaysia. This study employs a qualitative case study that incorporates semi-structured interviews with four members of the regulator. The results reveal that the regulator has realized the advantages, management support, and need to skills development in phase one. On the other hand, in phase two, it finds the way the regulator makes decision related to XBRL taxonomy and submission template, platform, tools and software. Through phase three, the regulator is concerned with the complexity of XBRL taxonomy, resources, external support, promotion, stakeholder involvement, limited trading pressure, critical mass, and professional bodies. The factors from each phase suggest an in-depth understanding on the experience of XBRL through the development of MBRS that provides a success story to the other government agencies and regulators in Malaysia. This study provides several insights on the factors that could contribute to the adoption of XBRL and the Diffusion of Innovation theory adoption process.

• Asia Pacific Journal of Business Review
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• v.6 no.2
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• pp.27-60
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• 2022

Previous studies stated that low carbon innovation performance could be influenced by government regulations and the green market, which is the new trend of consumer consumption in the present time, mainly focusing on external factors. Before study augured that low carbon innovation performance could be driven by internal and external factors of cooperation such as institutional pressure, stakeholder pressure, and innovation resources. However, the study of green transformational leadership and organizational environmental culture on low carbon innovation performance is rare, especially in Chinese manufacturing, as well as the effect of influencing factors of TPB model: environmental attitude, subjective norm, and perceived behavior capability on low carbon innovation performance. Previous studies mostly used the TPB model for predicting individual behavior. This study established a theoretical model combining the TPB model with green transformational leadership and organizational environmental culture of Chinese automobile manufacturing on low carbon innovation performance. This study consists of two sections of research methodology: section 1 related to questionnaire design and data collection. We established a questionnaire and distributed it online, targeting responses from the managerial level working in Chinese automobile manufacturing. Eventually, 155 valid questionnaires were used for analysis. Section 2 involved data analysis using statistical software. Reliability and data validity was examined by reliability analysis and factor analysis. Correlations and convergent validity analyses were applied, and structural equation modeling was conducted to test the proposed hypotheses. The findings indicated that green transformational leadership, organizational environmental culture, and essential factors of TPB model; environmental attitude, subjective norm and perceived behavior capability positively affect low carbon innovation performance. In addition, the indirect effect of green transformational leadership was tested and found that organizational environmental culture and TPB factors mediated the relationship between transformational leadership and low carbon innovation performance.