• Asian Journal of Business Environment
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• v.10 no.1
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• pp.37-43
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• 2020

Purpose: The purpose of this study was to examine the relationship between portfolio quality and financial sustainability of microfinance institutions in Kenya. Research Design, Data, and Methodology: The analysis was based on a panel dataset of 30 microfinance institutions for the period of 2010 to 2018. Data was obtained from the Microfinance information exchange (MIX) database, and it was analyzed through descriptive and inferential statistics with the aid of STATA. Based on the results of the Hausman test, the study adopted the fixed effect regression model to test the research hypothesis. Results: The study found that portfolio quality had a positive significant effect on financial sustainability of Microfinance institutions in Kenya (β= 0. 211; p-value < 0.05). For the control variables; firm age had a positive effect (β= 0.773; p-value <0.05), while firm size (β= -0. 749; p-value < 0.05) had a negative effect on financial sustainability. Conclusions: The study concluded that portfolio quality has an important influence on the financial sustainability of microfinance institution. The study recommends that managers of microfinance institutions should devise good collection policies to improve portfolio quality while lessening loan default rate. The portfolio quality may improve the overall profitability and enhance investor confidence in their strategic decision-making on refinancing.

• Journal of Distribution Science
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• v.21 no.3
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• pp.71-82
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• 2023

Purpose: This study examines the distribution of income diversification in improving the financial sustainability of private universities amidst difficulties in operational funding during the Covid-19 pandemic with IT Capability moderation. Research design, data and methodology: Closed survey aimed at 468 financial sector leaders from 189 private universities in ten provinces in Indonesia. Results: All income diversification activity variables have a significant positive effect on financial sustainability. In the analysis of liquidity indicators, there are two activities that have a significant positive effect, namely goods and services (β=0.337) and profitable financial management (β=0.124). Furthermore, the results of the solvency indicator test obtained significant positive results in Goods and Services Activities (β=0.337), Commercial Intellectuals (β=0.161), Commercial Contracts (β=0.103), and Profitable Financial Management (β=0.147). The results of the test of higher education growth indicators on three activities have a significant positive effect, namely Goods and Services (β = 0.290), Endowments (β = 0.158), and Commercial Contracts (β = 0.134). The results of the moderation test conclude that IT Capability strengthens the effect of income diversification on financial sustainability. Conclusion: The results of the study as a recommendation for private universities in developing income diversification with information system technology-based management.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.631-638
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• 2020

The intention of this research is to identify the effect of corporate social responsibility (CSR) disclosure on firm value with profitability as a moderating variable. Data collection is carried out with data documentation that is based on financial reports and sustainability reports. All companies listed on the Indonesia Stock Exchange (IDX) during the 2013-2017 period are considered as the population of this study. Samples were selected using the purposive sampling method. The following are criteria that would be used in this study: 1) publish a sustainability report using the GRI G4 standard as a reference in preparing reports for 2013-2016, 2) publish a complete financial report for the 2014-2017 observation period, 3) not experience a loss during the 2014-2017 period. The total sample of the study was 109 companies. The study uses path analysis assisted with WarpPLS software version 6.0. The results show that the disclosure of corporate social responsibility has a positive and significant effect on firm value, and profitability moderates the effect of corporate social responsibility disclosure on firm value. The implication of the research is that implementing corporate social responsibility is very important to increase firm's value and firm's sustainability in the future.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.1097-1104
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• 2020

This research seeks to provide evidence about how political connections, proxied by government ownership and the existence of politically connected board members, affect the extent of corporate social responsibility (CSR) disclosures in Indonesian listed companies. This research uses the legitimacy theory as a basis for explaining management's motivation for disclosing its CSR. The sample consists of 131 firm-year observations from 38 non-financial public companies that published sustainability reports from 2013 to 2017. We measured the CSR disclosures using a disclosure checklist on the sustainability reports. We subsequently processed the data using a random effect (RE) linear regression. The result shows that CSR disclosures were greater in government-owned companies but lower in companies that have politically connected board members. The results support the legitimacy theory that the government intends to demonstrate legitimate national economic and political conditions by showing that government-owned companies are sustainable. However, CSR disclosures seem to have a substitutive relationship with the existence of politically connected board members, since those political connections may protect the company from public pressure and/or the risk of litigation, reducing the need for CSR disclosures. This research provides evidence that different types of political connections may have different impacts on corporate disclosures.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.409-419
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• 2021

The study examines the effects of digital accounting on financial reporting quality, accounting information usefulness, and strategic decision effectiveness of listed firms in Thailand through digital transformation as the moderating variable. A total of 313 listed firms in Thailand were selected as the sample for the study. Structural equation model and multiple regression analysis are applied to test the research relationships. The results of the study show that digital accounting has a significant effect on financial reporting quality, accounting information usefulness, and strategic decision effectiveness. Financial reporting quality significantly affects both accounting information usefulness and strategic decision effectiveness while accounting information usefulness has a significant effect on strategic decision effectiveness. Both financial reporting quality and accounting information usefulness mediate the digital accounting-strategic decision effectiveness relationship. In addition, digital transformation moderates the digital accounting-financial reporting quality relationship and the digital accounting-accounting information usefulness relationship, but it does not moderate other relationships. Accordingly, digital accounting plays a significant role in determining and explaining firms' goal achievement. Executives are suggested to learn, invest and utilize the digital accounting system in the organization to ensure goal achievement and enhance organizational sustainability.

• The Journal of Asian Finance, Economics and Business
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• v.4 no.2
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• pp.55-68
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• 2017

This research is carried out to investigate the relationship between sustainability practices and performance in a financial sense for Malaysian Oil and Gas sector. Objectives include to study the state of sustainability disclosure among Malaysian oil and gas companies, to understand if companies that practiced sustainability had better performances to their financial bottom-line and to conduct a data analysis to understand the relationship between Environmental, social and governance performance [represented by the acronym ACSI] and financial performance. Sustainability performance is measured using ACSI checklist, which is an adaptation of the GRI 3.0 by Global reporting initiative while financial performance was measured on financial and profitability parameters namely EBITDA, EPS and PE ratio. Secondary data sources are used which were then converted into a rating scale to develop quantitative data. SPSS 21 is used for the analysis. The result shows that the majority of oil and gas companies in Malaysia had poor performance in terms of sustainability disclosure. On all three chosen profitability parameters, the companies that practiced sustainability were found to perform better than their counterparts that did not. Strong and significant relationship exists between sustainability practices and better financial performance.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.161-167
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• 2021

Nowadays, small- and medium-sized enterprises (SMEs) are placed among the key components of the economy in both developed and developing countries. They are internationally known as the driving force based on their enormous contributions to Gross Domestic Product (GDP) and generating new employment. They are generally presumed as the leader of environmental sustainability, economic prosperity, and innovation, particularly for the economy of developing countries such as Vietnam. However, SMEs have difficulty in raising capital, as well as access to credit. One of the reasons is that there are inadequacies in accounting information quality in SMEs as well as the provision of accounting information and accounting information confidentiality. The main objective of this study was to identify, evaluate, and measure the attributes of accounting information quality of SMEs in Hanoi. The study was based on a field survey using a semi-structured questionnaire on a sample of 150 accountants. The study has identified and measured six (6) attributes of accounting information quality of SMEs that have great effects on accountants. There is, statistically, no significant difference in the level of accounting information quality of SMEs in Hanoi from these different business areas. There is no, statistically, significant difference in the level of accounting information quality of SMEs in Hanoi between the mentioned three groups of the job description. Based on the findings, some recommendations are given for SMEs to improve accounting information quality.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.302-309
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• 2009

The effectiveness of Building Information Modeling (BIM) tools and processes has been recognized by the industry and owners are beginning to adopt Triple Bottom Line accounting practices, to enhance economic performance and environmental and social performance. However, the widespread and practical application of Green BIM remains largely unrealized. The authors identify that lack of understanding of the applicability of sustainability metrics to BIM design process is a significant barrier to this adoption. Through literature review this paper outlines the various sustainability metrics available to construction and elaborates on the potential of BIM for sustainable design. The paper maps and correlates applicable concepts of sustainability evaluation systems to BIM and describes the constraints in current BIM tools.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.73-84
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• 2020

The paper investigates the effect of the factors on the disclosure of sustainable development information of enterprises. The research sample includes 120 manufacturing companies listed on Vietnam stock market in 2019. This research uses ordinary least squares (OLS) to address econometric issues and to improve the accuracy of the regression coefficients. The empirical results show that five variables have a statistically significant positive effect on disclosure of sustainable development information of manufacturing companies, including firm size (SIZE), independence of board of directors (BOD), foreign ownership (FRO), return on equity (ROE), and financial leverage (LEV). The results indicate that state ownership (STO) has a statistically significant negative effect on disclosure of sustainable development information of manufacturing companies listed on Vietnam stock market. Besides, the research results also show there is a large difference in the disclosure of sustainable development information between listed companies in Vietnam, those of other emerging economies in the region, and the companies in developed markets. Therefore, this paper provides a new insight to managers and related parties on how to improve the firm's sustainability disclosure to bring benefit for the firm itself and the stakeholders by reasonable decisions about the factors that affect disclosure of sustainable development information.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.353-361
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• 2021

An economic system is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country. The Islamic financial system faces a number of challenges as part of its role as a tool for developing economic activities. This study intends to advance research by Lassoued (2018) by expanding the research population to include Islamic banks in Asia and adding new dimensions - the size of the independent commissioner and corporate governance. The population of this study is the 100 largest Islamic banks in Asia. Statistical calculations with the STATA application is used for data analysis. Based on the test results, it was found that the size of the sharia board and the independent board of directors did not affect the financial stability of Islamic banking companies. Another finding is that the size of the independent commissioner affects financial stability. This finding shows that commissioners have played an active role in the company, indicating that if the sharia banking company has an ideal number of independent commissioners, it will be advantageous to the company's stability and business sustainability.