Pub Date : 2024-06-07DOI: 10.21315/aamjaf2024.20.1.9
Jing Wu, Chee Yoong Liew
This study intends to investigate the relationship between the different corporate social responsibility (CSR) practices of firms and their corporate sustainable development (CSD) as well as whether venture capital (VC) and corporate governance (CG) moderate this relationship and capital allocation efficiency (CAE) mediates the relationship. The sample of this study consist of Chinese A-share public-listed firms as well as the Growth Enterprise Market (GEM) listed firms in China. The duration covered is from 2013 to 2020. There are significant positive relationships between CSR and CSD among Chinese A-shares listed firms and GEM listed firms. In addition, there is a significant positive moderating effect of CG and no significant moderating effect of VC on the relationship between CSR and CSD among Chinese A-shares listed firms. However, for GEM listed firms, there is no significant moderating effect of both VC and CG on the relationship between CSR and CSD. Finally, there is a significant positive mediating effect of CAE on the relationship between CSR and CSD among Chinese A-shares listed firms and GEM listed firms.
本研究旨在探讨企业不同的社会责任（CSR）实践与企业可持续发展（CSD）之间的关系，以及风险投资（VC）和公司治理（CG）是否对这一关系起到调节作用，资本配置效率（CAE）是否对这一关系起到中介作用。本研究的样本包括中国 A 股上市公司和创业板上市公司。研究时间跨度为 2013 年至 2020 年。在中国 A 股上市公司和创业板上市公司中，企业社会责任与 CSD 之间存在显着的正相关关系。此外，在中国 A 股上市公司中，CG 对企业社会责任与 CSD 的关系有显著的正向调节作用，而 VC 对企业社会责任与 CSD 的关系没有显著的调节作用。然而，对于创业板上市公司而言，风险投资和企业管治对企业社会责任与 CSD 的关系都没有明显的调节作用。最后，在中国 A 股上市公司和创业板上市公司中，CAE 对企业社会责任和 CSD 之间的关系有明显的正向中介效应。
{"title":"Corporate Social Responsibility Practices, Corporate Sustainable Development, Venture Capital and Corporate Governance: Evidence from Chinese Public Listed Firms","authors":"Jing Wu, Chee Yoong Liew","doi":"10.21315/aamjaf2024.20.1.9","DOIUrl":"https://doi.org/10.21315/aamjaf2024.20.1.9","url":null,"abstract":"This study intends to investigate the relationship between the different corporate social responsibility (CSR) practices of firms and their corporate sustainable development (CSD) as well as whether venture capital (VC) and corporate governance (CG) moderate this relationship and capital allocation efficiency (CAE) mediates the relationship. The sample of this study consist of Chinese A-share public-listed firms as well as the Growth Enterprise Market (GEM) listed firms in China. The duration covered is from 2013 to 2020. There are significant positive relationships between CSR and CSD among Chinese A-shares listed firms and GEM listed firms. In addition, there is a significant positive moderating effect of CG and no significant moderating effect of VC on the relationship between CSR and CSD among Chinese A-shares listed firms. However, for GEM listed firms, there is no significant moderating effect of both VC and CG on the relationship between CSR and CSD. Finally, there is a significant positive mediating effect of CAE on the relationship between CSR and CSD among Chinese A-shares listed firms and GEM listed firms.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2024-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141372140","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-06-07DOI: 10.21315/aamjaf2024.20.1.10
Chai Wen, Jack Goh, Amirah Chai, Rahman, Wen Eng Ong
Palm oil is one of the major export products of Malaysia. Predicting the price of crude palm oil futures (FCPO) traded on BURSA Malaysia Derivative is essential as agricultural markets have an inherent tendency towards instability, and thus are more vulnerable to price shocks than other industrial sectors. Hence, if the price of the futures contract on crude palm oil can be forecasted accurately, many parties such as farmers, refiners and distributors can manage the risk of price fluctuations through FCPO. This study proposes the metaheuristic and machine learning hybridised model of simulated annealing-based support vector regression (SA-SVR). The SVR in this model produces close price predictions of the FCPO with minimum deviation from the actual value with the help of SA, which first determines the best hyperparameter set to be utilised in the SVR. Although the proposed Radial Basis Function (RBF) kernelised SA-SVR model inputs only 10% of training data due to memory overload issues, it has produced a satisfying prediction result with an average execution time of 2 minutes and 34 seconds. The model performance was analysed further by using different ratios in data splitting, varying temperature combinations for the SA algorithm and initiating the parameter search based on the previous best hyperparameter set. Results show that keeping the test size constant and extracting more historical data on FCPO price for model training is better than varying train-test split ratios. The temperature schedule strategy showed that different initial and minimum SA temperature combinations affects the overall optimisation results. The best combination was the initial temperature of 100 and minimum of 40. In addition, the number of temperature reductions and average execution time to reach the best state decreases when the starting point of the parameter search space is close to the best values.
棕榈油是马来西亚的主要出口产品之一。预测在马来西亚衍生品交易所（BURSA Malaysia Derivative）交易的毛棕榈油期货（FCPO）的价格至关重要，因为农产品市场具有内在的不稳定性，因此比其他工业部门更容易受到价格冲击的影响。因此，如果能准确预测毛棕榈油期货合约的价格，农民、精炼厂和分销商等多方就能通过 FCPO 管理价格波动的风险。本研究提出了基于模拟退火的支持向量回归（SA-SVR）的元启发式和机器学习混合模型。该模型中的 SVR 借助模拟退火，首先确定 SVR 中要使用的最佳超参数集，然后以与实际值最小的偏差生成接近的 FCPO 价格预测值。虽然由于内存超载问题，拟议的径向基函数（RBF）核化 SA-SVR 模型只输入了 10%的训练数据，但它的预测结果令人满意，平均执行时间为 2 分 34 秒。通过使用不同的数据分割比例、不同的 SA 算法温度组合以及根据之前的最佳超参数集启动参数搜索，对模型性能进行了进一步分析。结果表明，保持测试规模不变并提取更多有关 FCPO 价格的历史数据进行模型训练，比改变训练-测试分割比例效果更好。温度安排策略表明，不同的初始和最低 SA 温度组合会影响整体优化结果。最佳组合是初始温度为 100，最低温度为 40。此外，当参数搜索空间的起点接近最佳值时，温度降低的次数和达到最佳状态的平均执行时间都会减少。
{"title":"Crude Palm Oil Price Prediction Using Simulated Annealing-based Support Vector Regression (SA-SVR)","authors":"Chai Wen, Jack Goh, Amirah Chai, Rahman, Wen Eng Ong","doi":"10.21315/aamjaf2024.20.1.10","DOIUrl":"https://doi.org/10.21315/aamjaf2024.20.1.10","url":null,"abstract":"Palm oil is one of the major export products of Malaysia. Predicting the price of crude palm oil futures (FCPO) traded on BURSA Malaysia Derivative is essential as agricultural markets have an inherent tendency towards instability, and thus are more vulnerable to price shocks than other industrial sectors. Hence, if the price of the futures contract on crude palm oil can be forecasted accurately, many parties such as farmers, refiners and distributors can manage the risk of price fluctuations through FCPO. This study proposes the metaheuristic and machine learning hybridised model of simulated annealing-based support vector regression (SA-SVR). The SVR in this model produces close price predictions of the FCPO with minimum deviation from the actual value with the help of SA, which first determines the best hyperparameter set to be utilised in the SVR. Although the proposed Radial Basis Function (RBF) kernelised SA-SVR model inputs only 10% of training data due to memory overload issues, it has produced a satisfying prediction result with an average execution time of 2 minutes and 34 seconds. The model performance was analysed further by using different ratios in data splitting, varying temperature combinations for the SA algorithm and initiating the parameter search based on the previous best hyperparameter set. Results show that keeping the test size constant and extracting more historical data on FCPO price for model training is better than varying train-test split ratios. The temperature schedule strategy showed that different initial and minimum SA temperature combinations affects the overall optimisation results. The best combination was the initial temperature of 100 and minimum of 40. In addition, the number of temperature reductions and average execution time to reach the best state decreases when the starting point of the parameter search space is close to the best values.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2024-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141373749","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-06-07DOI: 10.21315/aamjaf2024.20.1.5
Ana Filipa, M. Roque, Maria-Céu G. Alves, Mário Lino Raposo
Internationalisation has become crucial to economic development, especially for companies that are more technological and scientific. These companies arouse curiosity, as they quickly begin their internationalisation process (IP), adopting the Born Global model shortly after its creation. It has also been noted that, when they seek to benefit from mutual flexibility, the opportunity to use technical and economic knowledge, and even the collective assumption of costs and risks, it is common for them to resort to the internationalisation model based on Network Theory. Considering that internationalisation is part of the company’s growth strategy, and that this may require an adjustment of the information structure, namely the Management Accounting and Control System (MACS), it becomes relevant to understand how IP affects MACS. In this way, our study aims to respond to how MACS adjusts to Born Global internationalisation model (BGIM) and Network Model of Internationalisation (NMI) for a successful internationalisation strategy? In this study, we evaluate how MACS is adjusted in order to become a tool capable of collecting and processing the set of useful information necessary for the implementation of the internationalisation strategy. We conducted a single case study in a Portuguese health-sector company. Our results show that MACS needs to be adjusted to facilitate the implementation of IP.
国际化已成为经济发展的关键，尤其是对于那些科技含量较高的公司而言。这些公司引起了人们的好奇，因为它们很快就开始了国际化进程（IP），并在创立后不久就采用了 "天生全球 "模式。人们还注意到，当这些公司寻求从相互灵活性、利用技术和经济知识的机会，甚至集体承担费用和风险中获益时，它们通常会采用基于网络理论的国际化模式。考虑到国际化是公司发展战略的一部分，而这可能需要调整信息结构，即管理会计和控制系统（MACS），因此了解知识产权如何影响管理会计和控制系统就变得十分重要。因此，我们的研究旨在回答 MACS 如何根据 Born 全球国际化模型（BGIM）和国际化网络模型（NMI）进行调整，以实现成功的国际化战略？在本研究中，我们将评估如何调整 MACS，使其成为能够收集和处理实施国际化战略所需的一系列有用信息的工具。我们在一家葡萄牙卫生部门公司进行了一项单一案例研究。研究结果表明，需要对 MACS 进行调整，以促进 IP 的实施。
{"title":"Internationalisation Strategy and Management Accounting and Control Systems: A Network Approach","authors":"Ana Filipa, M. Roque, Maria-Céu G. Alves, Mário Lino Raposo","doi":"10.21315/aamjaf2024.20.1.5","DOIUrl":"https://doi.org/10.21315/aamjaf2024.20.1.5","url":null,"abstract":"Internationalisation has become crucial to economic development, especially for companies that are more technological and scientific. These companies arouse curiosity, as they quickly begin their internationalisation process (IP), adopting the Born Global model shortly after its creation. It has also been noted that, when they seek to benefit from mutual flexibility, the opportunity to use technical and economic knowledge, and even the collective assumption of costs and risks, it is common for them to resort to the internationalisation model based on Network Theory. Considering that internationalisation is part of the company’s growth strategy, and that this may require an adjustment of the information structure, namely the Management Accounting and Control System (MACS), it becomes relevant to understand how IP affects MACS. In this way, our study aims to respond to how MACS adjusts to Born Global internationalisation model (BGIM) and Network Model of Internationalisation (NMI) for a successful internationalisation strategy? In this study, we evaluate how MACS is adjusted in order to become a tool capable of collecting and processing the set of useful information necessary for the implementation of the internationalisation strategy. We conducted a single case study in a Portuguese health-sector company. Our results show that MACS needs to be adjusted to facilitate the implementation of IP.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2024-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141373670","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-06-07DOI: 10.21315/aamjaf2024.20.1.8
Rozaimah Zainudin, Karren Lee-Hwei, Lee-Hwei Khaw
On 29th November 2013, the Security Commission Malaysia revised the Sharia-compliant screening policy and about 20% of the Sharia firms lost their certification for not meeting the additional criteria. Using 107 affected firms, we examine the removal announcement effect on the stocks’ liquidity and trading activities. Our analysis focuses only on the removal announcement due to the screening policy changes. We use 181 days event window for the short-term effect and multivariate panel estimation models for the long-term effect. The event study observes a decreasing trend for the liquidity measures, indicating a higher liquidity post-Sharia removal announcement among the affected stocks. Conversely, trading activities decrease substantially within the first few days post-event date before picking up gradually. The regression analysis confirms the results, but we do not find consistent results supporting the relationship between institutional investors and liquidity and trading activities. The study is among the pioneers to unfold the effect of Sharia-compliant status removal announcement due to the policy changes on the stock liquidity and trading activities within short and long-term perspectives. We also provide post-effect evidence on the change of the institutional investors due to the removal announcement on the liquidity and trading aspect.
{"title":"Does the Sharia-compliant Status Removal Announcement Matter? Liquidity, Trading Activities and Institutional Investors","authors":"Rozaimah Zainudin, Karren Lee-Hwei, Lee-Hwei Khaw","doi":"10.21315/aamjaf2024.20.1.8","DOIUrl":"https://doi.org/10.21315/aamjaf2024.20.1.8","url":null,"abstract":"On 29th November 2013, the Security Commission Malaysia revised the Sharia-compliant screening policy and about 20% of the Sharia firms lost their certification for not meeting the additional criteria. Using 107 affected firms, we examine the removal announcement effect on the stocks’ liquidity and trading activities. Our analysis focuses only on the removal announcement due to the screening policy changes. We use 181 days event window for the short-term effect and multivariate panel estimation models for the long-term effect. The event study observes a decreasing trend for the liquidity measures, indicating a higher liquidity post-Sharia removal announcement among the affected stocks. Conversely, trading activities decrease substantially within the first few days post-event date before picking up gradually. The regression analysis confirms the results, but we do not find consistent results supporting the relationship between institutional investors and liquidity and trading activities. The study is among the pioneers to unfold the effect of Sharia-compliant status removal announcement due to the policy changes on the stock liquidity and trading activities within short and long-term perspectives. We also provide post-effect evidence on the change of the institutional investors due to the removal announcement on the liquidity and trading aspect.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2024-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141375080","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-06-07DOI: 10.21315/aamjaf2024.20.1.6
Tze-Haw Chan, Abdul Saqib, H. Lean
Extant literature fails to conclusively shed light on the asymmetric effects of market sentiment during bulls and bears, especially for small open markets like Malaysia. This study constructs a sentiment index for Malaysia using Principal Component Analysis. A nonlinear ARDL model is applied to capture and distinguish the optimistic and pessimistic sentiments to justify sectoral stock price movements. Our threefold findings reveal the significant explanatory power of sentiment on sectoral stock prices for both market phases, validated by bound test statistics and error correction terms. Furthermore, the study uncovers long-run asymmetric effects in most sectors (excluding technology) and emphasises their insignificance in the short run, attributable to limited and regulated short selling. Dynamic multiplier graphs underscore the temporal nature of sentiment effects, peaking in the 3rd to 7th months for most stocks, with technology stocks exhibiting an overreaction to negative sentiments. Notably, most stocks respond to positive adjustments, indicating that investors are not driven by loss aversion stemming from diverse market news. These insights are vital for individual traders, fund managers, and regulatory bodies involved in risk assessment and hedging strategy formulation. The study contributes to non-conventional equity analyses, offering valuable perspectives for navigating the complexities of small open markets.
{"title":"Asymmetric Effects of Investor Sentiment on Malaysian Sectoral Stocks: A Nonlinear Autoregressive Distributed Lag Approach","authors":"Tze-Haw Chan, Abdul Saqib, H. Lean","doi":"10.21315/aamjaf2024.20.1.6","DOIUrl":"https://doi.org/10.21315/aamjaf2024.20.1.6","url":null,"abstract":"Extant literature fails to conclusively shed light on the asymmetric effects of market sentiment during bulls and bears, especially for small open markets like Malaysia. This study constructs a sentiment index for Malaysia using Principal Component Analysis. A nonlinear ARDL model is applied to capture and distinguish the optimistic and pessimistic sentiments to justify sectoral stock price movements. Our threefold findings reveal the significant explanatory power of sentiment on sectoral stock prices for both market phases, validated by bound test statistics and error correction terms. Furthermore, the study uncovers long-run asymmetric effects in most sectors (excluding technology) and emphasises their insignificance in the short run, attributable to limited and regulated short selling. Dynamic multiplier graphs underscore the temporal nature of sentiment effects, peaking in the 3rd to 7th months for most stocks, with technology stocks exhibiting an overreaction to negative sentiments. Notably, most stocks respond to positive adjustments, indicating that investors are not driven by loss aversion stemming from diverse market news. These insights are vital for individual traders, fund managers, and regulatory bodies involved in risk assessment and hedging strategy formulation. The study contributes to non-conventional equity analyses, offering valuable perspectives for navigating the complexities of small open markets.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2024-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141375125","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-06-07DOI: 10.21315/aamjaf2024.20.1.4
Ming-Chuan Wang, Shen-Yuan Chen, Shih-Wei Hung
Given the scarcity of literature exploring the nexus between corporate governance and employee salaries, this study investigates the impact of corporate governance on employee compensation and its subsequent effects on financial performance. We identify a positive correlation between robust corporate governance and higher employee salaries, which in turn enhances firm profitability and value. Our findings also suggest that employee salaries act as a partially mediate in the relationship between corporate governance and firm value, indicating a nuanced mechanism through which governance quality influences organisational outcomes. Notably, we observe that enhanced corporate governance is associated with a wider salary gap between management and non-management employees, a factor that might adversely affect financial performance. These results underscore the complex dynamics between corporate governance and employee compensation strategies, contributing to a deeper understanding of their interplay.
{"title":"The Relationship between Corporate Governance, Employee Salaries, Salary Gaps and Financial Performance","authors":"Ming-Chuan Wang, Shen-Yuan Chen, Shih-Wei Hung","doi":"10.21315/aamjaf2024.20.1.4","DOIUrl":"https://doi.org/10.21315/aamjaf2024.20.1.4","url":null,"abstract":"Given the scarcity of literature exploring the nexus between corporate governance and employee salaries, this study investigates the impact of corporate governance on employee compensation and its subsequent effects on financial performance. We identify a positive correlation between robust corporate governance and higher employee salaries, which in turn enhances firm profitability and value. Our findings also suggest that employee salaries act as a partially mediate in the relationship between corporate governance and firm value, indicating a nuanced mechanism through which governance quality influences organisational outcomes. Notably, we observe that enhanced corporate governance is associated with a wider salary gap between management and non-management employees, a factor that might adversely affect financial performance. These results underscore the complex dynamics between corporate governance and employee compensation strategies, contributing to a deeper understanding of their interplay.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2024-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141371718","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-06-07DOI: 10.21315/aamjaf2024.20.1.1
Xue Chang
In the ever-evolving capital market, safeguarding shareholder rights and interests is paramount for Chinese listed companies facing escalating risks. This article explores the dynamic discourse surrounding Directors and Officers (D&O) insurance, focusing on its implications in emerging markets with lower institutional support and disclosure quality. Spanning 2000 to 2020, this study rigorously examines the impact of D&O insurance in China, investigating its associations with capital markets, regulatory frameworks, managerial practices and financial reporting. My analysis reveals that D&O insurance correlates negatively with CEO turnover and litigation risk. However, its influence on investment efficiency, earnings management, financial reporting and corporate governance is comparatively modest. I also uncover nuanced disparities between stateowned enterprises (SOEs) and non-state-owned enterprises (non-SOEs). In SOEs, where CEOs are appointed by the government and litigation risk is lower, D&O insurance’s impact is less pronounced. Conversely, non-SOEs, facing higher litigation risk, find greater significance in D&O insurance as protection against legal action. In summary, this article highlights D&O insurance’s role as a protective shield for CEOs and underscores its evolving dynamics in Chinese listed companies’ corporate governance and risk management.
{"title":"The Multifaceted Impact of Directors and Officers (D&O) Insurance on Corporate Governance and Performance","authors":"Xue Chang","doi":"10.21315/aamjaf2024.20.1.1","DOIUrl":"https://doi.org/10.21315/aamjaf2024.20.1.1","url":null,"abstract":"In the ever-evolving capital market, safeguarding shareholder rights and interests is paramount for Chinese listed companies facing escalating risks. This article explores the dynamic discourse surrounding Directors and Officers (D&O) insurance, focusing on its implications in emerging markets with lower institutional support and disclosure quality. Spanning 2000 to 2020, this study rigorously examines the impact of D&O insurance in China, investigating its associations with capital markets, regulatory frameworks, managerial practices and financial reporting. My analysis reveals that D&O insurance correlates negatively with CEO turnover and litigation risk. However, its influence on investment efficiency, earnings management, financial reporting and corporate governance is comparatively modest. I also uncover nuanced disparities between stateowned enterprises (SOEs) and non-state-owned enterprises (non-SOEs). In SOEs, where CEOs are appointed by the government and litigation risk is lower, D&O insurance’s impact is less pronounced. Conversely, non-SOEs, facing higher litigation risk, find greater significance in D&O insurance as protection against legal action. In summary, this article highlights D&O insurance’s role as a protective shield for CEOs and underscores its evolving dynamics in Chinese listed companies’ corporate governance and risk management.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2024-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141371545","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-06-07DOI: 10.21315/aamjaf2024.20.1.3
Hooy Guat-Khim, Phua Lian-Kee
This study examines the relationship between chief executive officer (CEO) power and tax avoidance and the moderating effects of board gender diversity on this relationship. Based on companies listed on the Main Market of Bursa Malaysia from 2009 to 2019, it is found that CEO power is positively associated with tax avoidance. This suggests that CEOs with more dimensions of power are more competent in reducing the firm’s tax burden. Further tests show that this positive relationship is strengthened by board gender diversity. This implies that CEO competence in tax avoidance increases as the proportion of female directors on the board increases.
{"title":"CEO Power and Tax Avoidance in Malaysia: The Moderating Effect of Board Gender Diversity","authors":"Hooy Guat-Khim, Phua Lian-Kee","doi":"10.21315/aamjaf2024.20.1.3","DOIUrl":"https://doi.org/10.21315/aamjaf2024.20.1.3","url":null,"abstract":"This study examines the relationship between chief executive officer (CEO) power and tax avoidance and the moderating effects of board gender diversity on this relationship. Based on companies listed on the Main Market of Bursa Malaysia from 2009 to 2019, it is found that CEO power is positively associated with tax avoidance. This suggests that CEOs with more dimensions of power are more competent in reducing the firm’s tax burden. Further tests show that this positive relationship is strengthened by board gender diversity. This implies that CEO competence in tax avoidance increases as the proportion of female directors on the board increases.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2024-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141374042","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-06-07DOI: 10.21315/aamjaf2024.20.1.7
Mehmet Hüseyin Bilgin, G. Vardar, Berna Aydoğan, Evan Lau, Fakültesi Dekanlığı, Güney Yerleşkesi, A. Blok, Dumlupınar Kat, Mahallesi D-100, Kadıköy Istanbul Turkey Karayolu
Empirical research exploring the relationship between capital markets and energy prices plays a crucial role in shaping policies for the growth of the Islamic financial system. This study aims to investigate potential shock transmission and volatility spillover effects among Islamic stock indices from selected Middle East and Northern Africa countries as well as crude oil prices and natural gas, over the period from August 2007 to September 2020. Applying VAR-BEKK-GARCH representation, the results reveal the evidence of bidirectional cross-market shock and volatility spillover effects between Kuwait and Qatar Islamic stock indexes, crude oil prices, and natural gas. Moreover, the results indicate the existence of bidirectional/unidirectional shock and volatility spillovers between Islamic indexes and all other variables, meaning there are information flows between these variables in all four countries except Turkey. Regarding the results of volatility spillovers, there is no spillover effect between Turkey’s MSCI Islamic index and Brent crude oil. These findings bear significant implications for portfolio management, offering valuable insights to financial market participants for making improved portfolio allocation decisions. Also, comprehending the volatility transmission mechanism across these markets is vital to provide policymakers and regulatory authorities with insight into the impact of energy prices on Islamic stock markets.
{"title":"Volatility Spillovers Effects between Energy Commodities and Islamic Stock Markets","authors":"Mehmet Hüseyin Bilgin, G. Vardar, Berna Aydoğan, Evan Lau, Fakültesi Dekanlığı, Güney Yerleşkesi, A. Blok, Dumlupınar Kat, Mahallesi D-100, Kadıköy Istanbul Turkey Karayolu","doi":"10.21315/aamjaf2024.20.1.7","DOIUrl":"https://doi.org/10.21315/aamjaf2024.20.1.7","url":null,"abstract":"Empirical research exploring the relationship between capital markets and energy prices plays a crucial role in shaping policies for the growth of the Islamic financial system. This study aims to investigate potential shock transmission and volatility spillover effects among Islamic stock indices from selected Middle East and Northern Africa countries as well as crude oil prices and natural gas, over the period from August 2007 to September 2020. Applying VAR-BEKK-GARCH representation, the results reveal the evidence of bidirectional cross-market shock and volatility spillover effects between Kuwait and Qatar Islamic stock indexes, crude oil prices, and natural gas. Moreover, the results indicate the existence of bidirectional/unidirectional shock and volatility spillovers between Islamic indexes and all other variables, meaning there are information flows between these variables in all four countries except Turkey. Regarding the results of volatility spillovers, there is no spillover effect between Turkey’s MSCI Islamic index and Brent crude oil. These findings bear significant implications for portfolio management, offering valuable insights to financial market participants for making improved portfolio allocation decisions. Also, comprehending the volatility transmission mechanism across these markets is vital to provide policymakers and regulatory authorities with insight into the impact of energy prices on Islamic stock markets.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2024-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141372746","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-06-07DOI: 10.21315/aamjaf2024.20.1.2
Leviticus Mensah, Richard Arhinful, Murad Abdurahman Bein
The objective of this study was to examine the impact of corporate governance on the financial choices of non-financial companies operating in the Australian Securities Exchange. A purposive sampling technique was employed to select a total of 113 firms representing 14 sectors listed in the Australian Securities Exchange during the period from 2008 to 2021. The findings of the study revealed a positive and significant relationship between the size of the board, gender diversity among board members, board member affiliation and board compensation with the financial decisions of the corporations. Additionally, the study identified that the presence of experienced and non-executive board members had a negative and significant impact on internally generated funding. Furthermore, it was observed that board gender diversity, board size, board member affiliation and board compensation displayed a positive and significant association with debt financing, internally generated financing and equity financing. Most organisations displayed a preference for internal and debt financing over equity funding. Aligning governance with financial decisions enhances firms’ cost of capital. Governance quality affects capital market access, debt and equity costs. Effective governance leads to favourable financing terms.
{"title":"The Impact of Corporate Governance on Financial Decision-making: Evidence from Non-financial Institutions in the Australian Securities Exchange","authors":"Leviticus Mensah, Richard Arhinful, Murad Abdurahman Bein","doi":"10.21315/aamjaf2024.20.1.2","DOIUrl":"https://doi.org/10.21315/aamjaf2024.20.1.2","url":null,"abstract":"The objective of this study was to examine the impact of corporate governance on the financial choices of non-financial companies operating in the Australian Securities Exchange. A purposive sampling technique was employed to select a total of 113 firms representing 14 sectors listed in the Australian Securities Exchange during the period from 2008 to 2021. The findings of the study revealed a positive and significant relationship between the size of the board, gender diversity among board members, board member affiliation and board compensation with the financial decisions of the corporations. Additionally, the study identified that the presence of experienced and non-executive board members had a negative and significant impact on internally generated funding. Furthermore, it was observed that board gender diversity, board size, board member affiliation and board compensation displayed a positive and significant association with debt financing, internally generated financing and equity financing. Most organisations displayed a preference for internal and debt financing over equity funding. Aligning governance with financial decisions enhances firms’ cost of capital. Governance quality affects capital market access, debt and equity costs. Effective governance leads to favourable financing terms.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2024-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141374443","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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