• The Journal of Asian Finance, Economics and Business
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• 제8권11호
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• pp.213-221
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• 2021

The paper attempts to investigate the optimal capital structure of Vietnamese listed firms based on a structural approach. Using the data from around 70 companies in the Consumer Staples sector listed on the Vietnamese Stock Exchange during the period 2018-2020, this study finds that the optimal capital structure of examined companies has a wide range of diversification. This can be explained by the various types of actual products for each typical firm within the chosen sector. The result also confirms that a large proportion of researched firms were actually overleveraged, which is consistent with the trade-off hypothesis that firms wish to take tax advantages while using more debt, which creates the benefits from tax-shield. Furthermore, the research highlights the reversed correlation, which suggests that the lower the company's risk (the lower the sigma of the assets), the greater the optimal capital structure is suggested. Another interesting finding is that almost all consumer staples companies have a better optimal capital structure under the Leland and Toft (1996) model than under the Leland (1994) model. Furthermore, there is a strong correlation of optimal financial leverage ratio between years. In other words, the optimal debt levels of the latter year are strongly dependent on the gearing levels of the previous years.

• The Journal of Asian Finance, Economics and Business
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• 제8권2호
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• pp.883-892
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• 2021

The issue of environmental crisis encourages companies to develop strategies and programs which incorporate social and environmental considerations into their processes. The objectives of this study are to identify the strategies used in implementing corporate social and environmental reporting (CSER) and to investigate the impact of these strategies on organization performance. This study uses as its sample companies listed on the Indonesia Stock Exchange (IDX) and engaged in environmentally sensitive business activities and applies content analysis to their annual reports. The data used in the study is secondary data in the form of annual and sustainability reports of companies, and primary data in the form of interviews. The results show that companies use both reactive and proactive strategies in reporting their social and environmental activities. The study also identifies the impacts of such reporting on both the financial and non-financial performances of the investigated companies. The study contributes to the social and environmental accounting literature by exploring the motivations and strategies of companies in their CSER. The empirical results will provide important insights into the influence of the strategies employed by companies in their corporate social and environmental reporting and the impacts of such strategies on organizational performance.

• The Journal of Asian Finance, Economics and Business
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• 제8권3호
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• pp.287-296
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• 2021

This paper investigates the relationship between the ownership of the largest family blockholders and corporate risk. We also examine whether firms that belong to 30 main Chaebol groups lower corporate risk. We use panel analysis for companies listed on the Korea Exchange from 2005 to 2017. We use beta, volatility, and idiosyncratic risk as a proxy for corporate risk. We employ both the ownership of the largest family blockholders and firms that belong to 30 main Chaebol groups as a major independent variable. The results show that the ownership of the largest family blockholders is associated with low beta. In terms of the effects of the ownership of the largest family blockholders on beta, we find that a firm that belongs to the 30 main Chaebol group reinforces the lower beta. These results suggest that the ownership of the largest family blockholders and firms that belongs to 30 main Chaebol groups may be associated with low systematic risk in the Korean stock market. Our findings can provide meaningful information to investors and field officers who are interested in the relationship between firm risk and both the largest family blockholders' ownership and firms that belong to 30 main Chaebol groups.

• 산경연구논집
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• 제13권12호
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• pp.23-31
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• 2022

Purpose: This research is to answer the following research questions because of the importance of learning how retired businesspeople increase their financial security and quality of life. (1) how does an entrepreneur contribute to economic development? (2) what types of investments are performed by businesspeople after retirement? (3) how entrepreneurial financial attainment capacity and anticipated net income after retirement are related? Research design, data and methodology: This research has conducted the qualitative analysis (QCA) using the current literature review. In the traditional positivist research paradigm, the quality of research is evaluated based on issues of validity, reliability, and objectivity. Contrary to the positivist approach, QCA focuses on the underlying meaning of the data. Results: This research found that finance management is increasingly challenging for businesspeople. The solutions based on the literature investigation suggest four categories. (1) Planned spending and revenue allocation, (2) Investing in the stock market, (3) Create a culture of saving, (4) Get Informed. Conclusions: This research puts forth a model to describe the connection between an investor's financial achievement potential and their desired net profits in retirement. The results of this study support the idea that the ability to achieve financial success as an entrepreneur has a salutary effect on the amount of money saved for retirement.

• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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• pp.863-873
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• 2021

The purpose of this research is to examine the effect of family share ownership on the value of family companies and differences in the value of the firm - a family firm managed by family members and a family firm managed by non-family members. This research is also related to agency problems, namely share ownership and professional management can increase company value. This research uses the firm value as the dependent variable that is measured using Tobin's Q. Meanwhile the independent variable in this research is family ownership, and firm size is the control variable. The purposive sampling method was used to determine the sample for this research. The object of this research is 78 family companies listing on the Indonesian Stock Exchange in 2017. The hypothesis is tested by using multiple linear regression analysis which meets the analysis requirements test or classic assumption test. The results show that majority family ownership does not affect the value of the firm and there is no difference in the firm value of family firm led by family members and the firm value of family firm managed by non-family members.

• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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• pp.727-734
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• 2021

The study aims to examine and analyze the factors that affect the return on assets (ROA) by placing net interest margin (NIM) as a moderating variable in influencing ROA. This research was conducted on 27 banks listed on the Indonesia Stock Exchange (IDX) for the period 2015 to 2018 with a total sample data of 91. The data used is a combination of time series data and cross-section data. The sampling technique used was the purposive sampling method. The data analysis technique used was path analysis with multiple regression analysis technique. The results of the analysis showed that the capital adequacy ratio (CAR) and loan to deposit ratio (LDR) have a positive but insignificant effect on ROA. NIM as a moderating variable does not influence the impact of CAR on ROA. However, NIM as a moderating variable is able to influence the impact of LDR on ROA. From the results of this study, it is evident that the LDR will increase the ROA at banks that generate high NIM.

• The Journal of Asian Finance, Economics and Business
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• 제8권3호
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• pp.1205-1215
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• 2021

The study's purpose is to assess how board chairman tenure (BCT) contributes to limiting the earnings management practices (EM) in Iraqi banks. We compare the direct influence of the corporate governance mechanisms (CG) on EM practices and use BCT as a moderator that affects the influence of CG on EM. The sample of the study is the financial' firms listed on the Iraqi Stock Exchange for the period 2013-2018. Using purposive sampling data was collected from annual reports and data stream. We use the random effect model in panel data regression by using Stata to analyze the data. Findings proved that CG mechanisms insignificantly influence EM, except the meeting frequency was significant. By contrast, BCT had a positive and considerable influence as the moderating variable between CG and EM. These results suggested that the Chairman's tenure on the board lead to enhanced governance mechanisms to limit the EM practice in Iraqi financial firms. Accordingly, this study is one of the few studies in the Iraq environment that examine the influence of CG mechanisms on EM practices, in addition to examining the BCT as a moderator between CG and EM, thus, filling the gap in such studies in developing countries.

• The Journal of Asian Finance, Economics and Business
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• 제8권3호
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• pp.953-965
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• 2021

This study aims to analyze the benefits of corporate social responsibility (CSR) performance on corporate risk in controversial and non-controversial industries. The hypothesis of this study is based on the conflicting effects of industry type on CSR and firm risk. The research sample consisted of 927 companies listed on the Indonesia Stock Exchange from 2016 to 2019. The main method for data processing was the ordinary least square method and subgroup analysis as a robustness test. The findings suggest that the performance of CSR can reduce corporate risk. However, the impact was only significant for non-controversial firms and weakened for controversial industries. These results support risk management and signaling theory. Firm risk in this study reflects the company's total risk, further research can categorize it into systematic and idiosyncratic risk. Besides, the number of samples of controversial industry research is not as much as non-controversial; further research can use paired samples. Regulators can use the results to create a new policy regarding CSR implementation. This study contributes to the existing literature by showing that the ability of social responsibility to reduce corporate risk only works in non-controversial industries. This result may be due to the controversial industry receiving negative stigma from its stakeholders.

• The Journal of Asian Finance, Economics and Business
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• 제8권8호
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• pp.533-539
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• 2021

This study aims to consider the role of women serving in the executive committee of the company and determine how it related to corporate social and environmental responsibilities (CSR and ESR). The data was collected from the 344 companies listed on the Stock Exchange of Thailand (SET) between 2013 and 2014. Especially, the CSR and ESR data was collected from the annual report and used to measure activities related to environmental and social responsibilities of companies listed on the SET. This study employed panel analysis regression to analyze the relationship between dependent and independent variables. The results indicated that the role of women who served in the executive committees of companies listed on SET had a positive impact on the social and environmental responsibilities of companies listed on the SET. The Granger causality test showed that the proportion of women holding positions on the board of directors had a statistically significant relationship with CSR and ESR, which is a unidirectional relationship. Moreover, the size of the company and the return to total assets also have a positive significant relationship with the CSR and ESR.

• The Journal of Asian Finance, Economics and Business
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• 제8권3호
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• pp.895-904
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• 2021

This study aims to investigate the impact of innovation on firm efficiency. Panel data of fourteen finance companies and nine technology companies from 2011 to 2019 on the Vietnam Stock Exchange Market is derived from audited financial statements, annual reports, and other crucial reports that are provided by Vietstock; macroeconomic variables are collected from the World Bank Database. A two-stage approach is used. First, use of the Data Envelopment Analysis methodology to measure firm efficiency. Second, use of the Pooled ordinary least squares, the Fixed effects model, and the Random effects model to investigate the impact of innovation on firm efficiency. Furthermore, the Generalized Method of Moments and the Tobit model are used to validate the impact of innovation on firm efficiency, and the t-test is used to confirm the difference in efficiency with and without the impact of innovation between two industries. The results show that there is a significant impact of innovation on efficiency, and innovation plays a more important in increasing the efficiency of the finance industry than the technology industry. Moreover, the relation between age and efficiency is like the U-shaped, and between size and efficiency is like the inverted U-shaped, whereas efficiency is not associated with inflation.