Pub Date : 2018-12-19DOI: 10.22452/AJBA.VOL11NO2.9
B. Nghiêm-Phú
Manuscript type: Research paper Research aims: This study aims to examine the Facebook-based grey market transactions of female customers in Vietnam. Specifically, this study investigates why (the reasons) and how (the ways) Vietnamese customers purchase grey (unofficial parallel imported) products on Facebook. Design/Methodology/Approach: Semi-structured interviews were conducted with thirteen female customers who had purchased grey products bought in Japan. Content analysis was applied and findings were discussed. Research findings: The Vietnamese unofficial parallel imported products (UPIP) or grey market has transformed itself into an online customer-to-customer (C2C) market with all the characteristics of an e-commerce market, thanks to the development of social media platforms such as Facebook. This market is expanding because it can fulfil the diverse needs of Vietnamese consumers whose incomes are expanding but whose needs are not satisfied. Buyers enter the market after carefully consulting their own experiences and those of their acquaintances. However, due to their lack of experience in buying and using the products in the country of origin, consumers may over-trust the sellers and be taken advantage of.Theoretical contribution/Originality: The grey market of Vietnam has partly merged with the C2C market and the e-commerce market. Grey market customers are better supported by the development of social networking sites (e.g., Facebook) which serve as powerful tools for customer reviews. The grey market, therefore, has been turned into an open one. However, due to the lack of a strong and effective legal framework, it is still unofficial. In addition, since social media platforms have already been transformed into real shopping venues, customers can presently enjoy a personalised service with many of their niche needs met satisfactorily. Practitioner/Policy implications: Legal brand owners should consider opening official stores in Vietnam to exploit the promise of a market whose spending power is the best in the Southeast Asian region. However, before any official entry initiatives are undertaken, a careful market research and a trial basis is necessary. In addition, the Vietnamese government should implement a non-tax policy for social-media-based grey traders as a measure to control the import of illegal or harmful products. The government should also facilitate the introduction of an e-commerce law. Research limitations: This study only captured the opinions of female customers from one urban area of buying UPIPs on Facebook. Those of the male and rural consumers were not investigated. In addition, the current study focused on the buyers’ side of the UPIP transaction and had excluded the sellers’ perspective. Moreover, this study only focused on Vietnam. The activities of the Facebook-based UPIP markets in other countries were overlooked.Keywords: C2C, Facebook, Grey Market, Social Media, VietnamJEL Classification: M00
{"title":"Grey Markets in Customer-to-Customer Transaction and Social Networking – The Case of Vietnam","authors":"B. Nghiêm-Phú","doi":"10.22452/AJBA.VOL11NO2.9","DOIUrl":"https://doi.org/10.22452/AJBA.VOL11NO2.9","url":null,"abstract":"Manuscript type: Research paper Research aims: This study aims to examine the Facebook-based grey market transactions of female customers in Vietnam. Specifically, this study investigates why (the reasons) and how (the ways) Vietnamese customers purchase grey (unofficial parallel imported) products on Facebook. Design/Methodology/Approach: Semi-structured interviews were conducted with thirteen female customers who had purchased grey products bought in Japan. Content analysis was applied and findings were discussed. Research findings: The Vietnamese unofficial parallel imported products (UPIP) or grey market has transformed itself into an online customer-to-customer (C2C) market with all the characteristics of an e-commerce market, thanks to the development of social media platforms such as Facebook. This market is expanding because it can fulfil the diverse needs of Vietnamese consumers whose incomes are expanding but whose needs are not satisfied. Buyers enter the market after carefully consulting their own experiences and those of their acquaintances. However, due to their lack of experience in buying and using the products in the country of origin, consumers may over-trust the sellers and be taken advantage of.Theoretical contribution/Originality: The grey market of Vietnam has partly merged with the C2C market and the e-commerce market. Grey market customers are better supported by the development of social networking sites (e.g., Facebook) which serve as powerful tools for customer reviews. The grey market, therefore, has been turned into an open one. However, due to the lack of a strong and effective legal framework, it is still unofficial. In addition, since social media platforms have already been transformed into real shopping venues, customers can presently enjoy a personalised service with many of their niche needs met satisfactorily. Practitioner/Policy implications: Legal brand owners should consider opening official stores in Vietnam to exploit the promise of a market whose spending power is the best in the Southeast Asian region. However, before any official entry initiatives are undertaken, a careful market research and a trial basis is necessary. In addition, the Vietnamese government should implement a non-tax policy for social-media-based grey traders as a measure to control the import of illegal or harmful products. The government should also facilitate the introduction of an e-commerce law. Research limitations: This study only captured the opinions of female customers from one urban area of buying UPIPs on Facebook. Those of the male and rural consumers were not investigated. In addition, the current study focused on the buyers’ side of the UPIP transaction and had excluded the sellers’ perspective. Moreover, this study only focused on Vietnam. The activities of the Facebook-based UPIP markets in other countries were overlooked.Keywords: C2C, Facebook, Grey Market, Social Media, VietnamJEL Classification: M00","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2018-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45757465","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 : 2018-12-19DOI: 10.22452/AJBA.VOL11NO2.8
Berto Usman, Yennita Y
Manuscript type: Research paper Research aims: This paper aims to revisit the concept of the virtual community of practice among undergraduates in Italy and Indonesia. Design/Methodology/Approach: This study employs a quantitative approach to retrieve data from a questionnaire survey. Data are collected from undergraduate students of the business faculty from the University of Padua, Italy and the University of Bengkulu, Indonesia. Based on a systematic sampling method, the questionnaires are distributed through several social media platforms such as WhatsApp, e-mail, Messenger and Facebook. Analysis is conducted via Structural Equation Modeling (SEM). Research findings: The findings highlight that Wikipedia characteristics and member promotion, community trust and community identification are found to be positively related to knowledge sharing intention. There is insubstantial evidence to demonstrate the significant effect of community participation on knowledge sharing intention.Theoretical contribution/Originality: This study expands on existing literature on virtual community of practice by offering a comparative analysis of two different samples from Italy and Indonesia. Practitioner/Policy implications: The findings of this study suggest that virtual communities of practice are important vehicles of knowledge sharing in universities. However, many approaches need to be taken in order to ensure that the distribution and circulation of knowledge is properly conducted among members so as to sustain the dynamics of knowledge sharing in the community of practice. Research limitation: Future research needs to emphasise on collecting data from diverse respondents in different geographical settings so as to increase the generalisability of the findings. Keywords: Wikipedia, Community of Practice, Virtual Community Outcomes, Knowledge SharingJEL Classification: O30, O32, O35
{"title":"A Glimpse into the Virtual Community of Practice (CoP): Knowledge Sharing in the Wikipedia Community","authors":"Berto Usman, Yennita Y","doi":"10.22452/AJBA.VOL11NO2.8","DOIUrl":"https://doi.org/10.22452/AJBA.VOL11NO2.8","url":null,"abstract":"Manuscript type: Research paper Research aims: This paper aims to revisit the concept of the virtual community of practice among undergraduates in Italy and Indonesia. Design/Methodology/Approach: This study employs a quantitative approach to retrieve data from a questionnaire survey. Data are collected from undergraduate students of the business faculty from the University of Padua, Italy and the University of Bengkulu, Indonesia. Based on a systematic sampling method, the questionnaires are distributed through several social media platforms such as WhatsApp, e-mail, Messenger and Facebook. Analysis is conducted via Structural Equation Modeling (SEM). Research findings: The findings highlight that Wikipedia characteristics and member promotion, community trust and community identification are found to be positively related to knowledge sharing intention. There is insubstantial evidence to demonstrate the significant effect of community participation on knowledge sharing intention.Theoretical contribution/Originality: This study expands on existing literature on virtual community of practice by offering a comparative analysis of two different samples from Italy and Indonesia. Practitioner/Policy implications: The findings of this study suggest that virtual communities of practice are important vehicles of knowledge sharing in universities. However, many approaches need to be taken in order to ensure that the distribution and circulation of knowledge is properly conducted among members so as to sustain the dynamics of knowledge sharing in the community of practice. Research limitation: Future research needs to emphasise on collecting data from diverse respondents in different geographical settings so as to increase the generalisability of the findings. Keywords: Wikipedia, Community of Practice, Virtual Community Outcomes, Knowledge SharingJEL Classification: O30, O32, O35","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2018-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43864351","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 : 2018-12-18DOI: 10.22452/AJBA.VOL11NO2.6
K. Wongboonsin, Pitichai Dejprasertsri, Tanasak Krabuanrat, Siriyupa Roongrerngsuke, S. Srivannaboon, Piyachart Phiromswad
Manuscript type: Research paper Research aims: This study aims to examine the effects of perceived co-worker and supervisor support on employees’ intention to quit in the food and beverage industry in Thailand. Design/Methodology/Approach: A total of 322 entry-level employees were recruited from one of Thailand’s largest food and beverage company as respondents for our survey. Data were then analysed using the OLS regression.Research findings: Our results highlight that workplace social support as indicated by existing literature were predominantly conducted in Western countries and these were found to be inapplicable in the Thai context. Our study also highlights some inconsistent results between the different age group of workers. Theoretical contributions/Originality: Our study expands on previous literature by making empirical contributions from the perspective of Thailand. As a collectivistic and feminine society, Thailand carries results that are different from the West. Our study also makes contributions by providing evidence drawn from the different age group perspective. Practitioner/Policy implications: Companies in Asian countries should reconsider their strategies in retaining workers. Our results offer strategies that are guided by the outcome generated from an Asian context which is highly different from the Western context. Research limitation/Implications: Since this study only focused on employees from one company, the generalisability of our results may be restricted. Keywords: Co-Worker Support, Supervisor Support, Intention to Quit, Employee Retention, Employment SustainmentJEL Classification: M12, M54, M59
{"title":"Sustaining Employees through Co-worker and Supervisor Support: Evidence from Thailand","authors":"K. Wongboonsin, Pitichai Dejprasertsri, Tanasak Krabuanrat, Siriyupa Roongrerngsuke, S. Srivannaboon, Piyachart Phiromswad","doi":"10.22452/AJBA.VOL11NO2.6","DOIUrl":"https://doi.org/10.22452/AJBA.VOL11NO2.6","url":null,"abstract":"Manuscript type: Research paper Research aims: This study aims to examine the effects of perceived co-worker and supervisor support on employees’ intention to quit in the food and beverage industry in Thailand. Design/Methodology/Approach: A total of 322 entry-level employees were recruited from one of Thailand’s largest food and beverage company as respondents for our survey. Data were then analysed using the OLS regression.Research findings: Our results highlight that workplace social support as indicated by existing literature were predominantly conducted in Western countries and these were found to be inapplicable in the Thai context. Our study also highlights some inconsistent results between the different age group of workers. Theoretical contributions/Originality: Our study expands on previous literature by making empirical contributions from the perspective of Thailand. As a collectivistic and feminine society, Thailand carries results that are different from the West. Our study also makes contributions by providing evidence drawn from the different age group perspective. Practitioner/Policy implications: Companies in Asian countries should reconsider their strategies in retaining workers. Our results offer strategies that are guided by the outcome generated from an Asian context which is highly different from the Western context. Research limitation/Implications: Since this study only focused on employees from one company, the generalisability of our results may be restricted. Keywords: Co-Worker Support, Supervisor Support, Intention to Quit, Employee Retention, Employment SustainmentJEL Classification: M12, M54, M59","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2018-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42891041","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 : 2018-12-18DOI: 10.22452/AJBA.VOL11NO2.4
L. Kengatharan, Mohamed Nurullah
Manuscript type: Research paper Research aims: This study aims to investigate the prevalent choice of capital investment appraisal practices and the influence of firm characteristics on the choice of these practices. Design/Methodology/Approach: A survey is conducted by using a sample of 186 Chief Financial Officers (CFOs) from companies listed on the Colombo Stock Exchange platform in Sri Lanka. Research findings: This study reveals that the most popular capital investment appraisal techniques used in Sri Lanka encompass Net Present Value (NPV), followed by Internal Rate of Return (IRR), Payback (PB), Accounting Rate of Return (ARR) and Discounted Payback (DPB). As for the capital investment appraisal tools incorporating risks, Sri Lankan firms prefer uncertainty absorption in cash flows, followed by sensitivity analysis, probability analysis, scenario analysis, and adjusting the required returns. Emerging real options are used at the embryonic stage in Sri Lanka. The use of naive capital budgeting practices is mostly preferred by small firms managed mainly by CFOs with non-MBA educational qualifications with short tenures in the firms. In contrast, sophisticated and advanced capital budgeting practices are mostly used by large firms managed by MBA qualified CFOs with a long tenure in the firms. As for industry differences, ARR is primarily applied by non-MBA CFOs in most non-manufacturing firms. None of the other methods trigger any significant difference in terms of industry types. Theoretical contributions/Originality: This study makes contextual contributions by providing evidence of the application of capital investment appraisal practices in an emerging market economy, namely Sri Lanka. This study also provides parametric contributions as it identifies the influence of firm characteristics on the choice of capital budgeting practices. Practitioner/Policy implications: This study raises the awareness of top management, policy makers, practitioners and stakeholders of companies with regards to capital investment appraisal practices and the influence of firm characteristics on these practices. Research limitations/Implications: A more detailed study encompassing other countries with a similar culture like Sri Lanka is beneficial for further validation, replication and generalisation. Future studies may also consider looking at the influence of behavioral factors in making capital budgeting choices. Keywords: Capital Budgeting, Risk, Developing Countries JEL Classification: G30, G31, G32JEL Classification: G30, G31, G32
{"title":"Capital Investment Appraisal Practices in the Emerging Market Economy of Sri Lanka","authors":"L. Kengatharan, Mohamed Nurullah","doi":"10.22452/AJBA.VOL11NO2.4","DOIUrl":"https://doi.org/10.22452/AJBA.VOL11NO2.4","url":null,"abstract":"Manuscript type: Research paper Research aims: This study aims to investigate the prevalent choice of capital investment appraisal practices and the influence of firm characteristics on the choice of these practices. Design/Methodology/Approach: A survey is conducted by using a sample of 186 Chief Financial Officers (CFOs) from companies listed on the Colombo Stock Exchange platform in Sri Lanka. Research findings: This study reveals that the most popular capital investment appraisal techniques used in Sri Lanka encompass Net Present Value (NPV), followed by Internal Rate of Return (IRR), Payback (PB), Accounting Rate of Return (ARR) and Discounted Payback (DPB). As for the capital investment appraisal tools incorporating risks, Sri Lankan firms prefer uncertainty absorption in cash flows, followed by sensitivity analysis, probability analysis, scenario analysis, and adjusting the required returns. Emerging real options are used at the embryonic stage in Sri Lanka. The use of naive capital budgeting practices is mostly preferred by small firms managed mainly by CFOs with non-MBA educational qualifications with short tenures in the firms. In contrast, sophisticated and advanced capital budgeting practices are mostly used by large firms managed by MBA qualified CFOs with a long tenure in the firms. As for industry differences, ARR is primarily applied by non-MBA CFOs in most non-manufacturing firms. None of the other methods trigger any significant difference in terms of industry types. Theoretical contributions/Originality: This study makes contextual contributions by providing evidence of the application of capital investment appraisal practices in an emerging market economy, namely Sri Lanka. This study also provides parametric contributions as it identifies the influence of firm characteristics on the choice of capital budgeting practices. Practitioner/Policy implications: This study raises the awareness of top management, policy makers, practitioners and stakeholders of companies with regards to capital investment appraisal practices and the influence of firm characteristics on these practices. Research limitations/Implications: A more detailed study encompassing other countries with a similar culture like Sri Lanka is beneficial for further validation, replication and generalisation. Future studies may also consider looking at the influence of behavioral factors in making capital budgeting choices. Keywords: Capital Budgeting, Risk, Developing Countries JEL Classification: G30, G31, G32JEL Classification: G30, G31, G32","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2018-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43060598","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 : 2018-12-18DOI: 10.22452/AJBA.VOL11NO2.3
Z. Ali, Yang Hanming, Assad Ullah
Manuscript type: Research paper Research aims: This paper empirically examines the effects of ownership and board structure on dividend smoothing in Pakistani listed banks between 2006 and 2014. Design/Methodology/Approach: This study employs random Tobit regression to analyse the effects of ownership and board structure on dividend smoothing. It also applies principal component analysis (PCA) to develop a corporate governance index. Research findings: The findings indicate that Pakistani banks with concentrated and foreign ownership, small size audit committee and less independent boards, exhibit higher levels of dividend smoothing. Interestingly, the study finds Pakistani banks having a joint position of CEO and chairperson, demonstrate lesser dividend smoothing. The study concludes that increasing dividends is an alternative monitoring mechanism for shareholders who are enclosed within a weak corporate governance environment such as Pakistan. Theoretical contribution/Originality: This study contributes to previous literature on corporate governance and dividend smoothing by investigating the role of the boards and the ownership structure. It also fills the research gap by investigating the impact of corporate governance on dividend smoothing by using the CG-Index. Practitioner/Policy implications: The findings of this study offer practical implications for payout and corporate governance policies. Higher information asymmetry and regulatory requirements, low shareholders’ rights and weak corporate governance environment make dividend smoothing another tool for safeguarding the interest of minority shareholders in Pakistani listed banks. Currently, regulators in Pakistan are only focusing on corporate governance mechanism as a means of protecting shareholders. This study recommends that smooth dividends can serve as an additional instrument to help safeguard the minority shareholders’ interest from expropriation. Research limitation: The findings of this study may not be generalised due to the small sample size. Keywords: Dividend Smoothing, Corporate Governance, Tobit Regression, Principal Component Analysis, PakistanJEL Classification: G350, G300, C24, C19
{"title":"Corporate Governance and Dividend Smoothing: Evidence from Pakistani Listed Banks","authors":"Z. Ali, Yang Hanming, Assad Ullah","doi":"10.22452/AJBA.VOL11NO2.3","DOIUrl":"https://doi.org/10.22452/AJBA.VOL11NO2.3","url":null,"abstract":"Manuscript type: Research paper Research aims: This paper empirically examines the effects of ownership and board structure on dividend smoothing in Pakistani listed banks between 2006 and 2014. Design/Methodology/Approach: This study employs random Tobit regression to analyse the effects of ownership and board structure on dividend smoothing. It also applies principal component analysis (PCA) to develop a corporate governance index. Research findings: The findings indicate that Pakistani banks with concentrated and foreign ownership, small size audit committee and less independent boards, exhibit higher levels of dividend smoothing. Interestingly, the study finds Pakistani banks having a joint position of CEO and chairperson, demonstrate lesser dividend smoothing. The study concludes that increasing dividends is an alternative monitoring mechanism for shareholders who are enclosed within a weak corporate governance environment such as Pakistan. Theoretical contribution/Originality: This study contributes to previous literature on corporate governance and dividend smoothing by investigating the role of the boards and the ownership structure. It also fills the research gap by investigating the impact of corporate governance on dividend smoothing by using the CG-Index. Practitioner/Policy implications: The findings of this study offer practical implications for payout and corporate governance policies. Higher information asymmetry and regulatory requirements, low shareholders’ rights and weak corporate governance environment make dividend smoothing another tool for safeguarding the interest of minority shareholders in Pakistani listed banks. Currently, regulators in Pakistan are only focusing on corporate governance mechanism as a means of protecting shareholders. This study recommends that smooth dividends can serve as an additional instrument to help safeguard the minority shareholders’ interest from expropriation. Research limitation: The findings of this study may not be generalised due to the small sample size. Keywords: Dividend Smoothing, Corporate Governance, Tobit Regression, Principal Component Analysis, PakistanJEL Classification: G350, G300, C24, C19","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2018-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43478580","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 : 2018-12-18DOI: 10.22452/AJBA.VOL11NO2.2
Vandana Bhama, P. Jain, Surendra S. Yadav
Manuscript type: Research paper Research aims: This study examines firms’ adherence to the pecking order in deficit and surplus situations by comparing firms in India and China. It also examines the extent of debt issues and redemption when the deficits and surpluses are relatively large in amount. Design/Methodology/Approach: This study analyses the data of the Bombay Stock Exchange (BSE) 500 index and the Shanghai Stock Exchange (SSE) 380 index firms. It uses Ordinary Least Square (OLS) regression to examine the effect of deficit and surplus on debt issuance and redemption. Research findings: The findings indicate that deficit firms in India as well as China adhere to the pecking order by issuing large amounts of debt. The debt issues (short-term debt) are exceptionally higher among Chinese firms whereas Indian firms issue more longterm debts. In addition, Chinese firms prefer to utilise new funds to redeem the existing debts because most of their debts are short term whereas Indian firms use a major chunk of their proceeds to finance deficits. Chinese surplus firms do not retain sizeable funds, an overwhelming proportion of these funds is used to redeem their existing short-term debts. In contrast, Indian surplus firms are reluctant to retire debts at a fast pace because of the existing low debt to equity ratios. Indian firms also have more long-term debts in their capital structure. Theoretical contribution/Originality: This study extends on previous works on the pecking order theory in developing countries by splitting the analysis into two: deficit firms and surplus firms. Practitioner/Policy implications: This study provides insights into the financing practices of the two developing economies. It also highlights the differences in corporate financing of these two countries. Research limitations/Implications: This study is confined to only Indian and Chinese firms. It mainly focusses on dataset that have been accumulated over a period of 12 years only. Future studies may consider adding the financing cost aspect so as to generate a more impressive analysis of firms’ adherence to the pecking order theory. Keywords: Pecking Order Theory, Financing, Deficit, Surplus, Debt, EquityJEL Classification: Q14, G32
{"title":"Adherence to the Pecking Order in Deficit and Surplus Conditions: A Comparative Study of Firms in India and China","authors":"Vandana Bhama, P. Jain, Surendra S. Yadav","doi":"10.22452/AJBA.VOL11NO2.2","DOIUrl":"https://doi.org/10.22452/AJBA.VOL11NO2.2","url":null,"abstract":"Manuscript type: Research paper Research aims: This study examines firms’ adherence to the pecking order in deficit and surplus situations by comparing firms in India and China. It also examines the extent of debt issues and redemption when the deficits and surpluses are relatively large in amount. Design/Methodology/Approach: This study analyses the data of the Bombay Stock Exchange (BSE) 500 index and the Shanghai Stock Exchange (SSE) 380 index firms. It uses Ordinary Least Square (OLS) regression to examine the effect of deficit and surplus on debt issuance and redemption. Research findings: The findings indicate that deficit firms in India as well as China adhere to the pecking order by issuing large amounts of debt. The debt issues (short-term debt) are exceptionally higher among Chinese firms whereas Indian firms issue more longterm debts. In addition, Chinese firms prefer to utilise new funds to redeem the existing debts because most of their debts are short term whereas Indian firms use a major chunk of their proceeds to finance deficits. Chinese surplus firms do not retain sizeable funds, an overwhelming proportion of these funds is used to redeem their existing short-term debts. In contrast, Indian surplus firms are reluctant to retire debts at a fast pace because of the existing low debt to equity ratios. Indian firms also have more long-term debts in their capital structure. Theoretical contribution/Originality: This study extends on previous works on the pecking order theory in developing countries by splitting the analysis into two: deficit firms and surplus firms. Practitioner/Policy implications: This study provides insights into the financing practices of the two developing economies. It also highlights the differences in corporate financing of these two countries. Research limitations/Implications: This study is confined to only Indian and Chinese firms. It mainly focusses on dataset that have been accumulated over a period of 12 years only. Future studies may consider adding the financing cost aspect so as to generate a more impressive analysis of firms’ adherence to the pecking order theory. Keywords: Pecking Order Theory, Financing, Deficit, Surplus, Debt, EquityJEL Classification: Q14, G32","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2018-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43365994","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 : 2018-12-17DOI: 10.22452/AJBA.VOL11NO2.1
P. Sinnadurai
Manuscript type: Review paperResearch aims: This paper offers Southeast Asian researchers, particularly those from ASEAN, a vision to contribute to international agency theory literature.Design/Methodology/Approach: Most of the studies reviewed were identified during the author’s preparation for this paper which involves Malaysia.Research findings: Three research streams to which Malaysian researchers can contribute are: political connections, family companies and corporate recovery. The socio-political contexts thathave resulted in Malaysia being a suitable environment are also discussed. This paper identifies gaps in the literature; it accumulates arguments defining why the Malaysian setting is apposite and it also offers research design suggestions for Malaysians and researchers from Indonesia, the Philippines and Thailand, with some defining differences, to follow.Theoretical contributions/Originality: The outcome drawn from this paper assists Malaysian researchers in utilising the agency based theory to approach various topic selections and executions. The comparisons and contrasts made between Malaysia and the other three ASEAN countries may further motivate researchers of the ASEAN region to engage agency theory as a base for their research. Research limitation: A limitation to this paper is that the boundaries between the proposed categories of shareholder political connections are blurred. Keywords: Agency Theory, ASEAN, Malaysia, Review PaperKeywords: Agency Theory, ASEAN, Malaysia, Review PaperJEL Classification: G31, G33, G38, M41
{"title":"A Vision for Malaysian and Other ASEAN Researchers to Contribute to the International Agency Theory-based Literature","authors":"P. Sinnadurai","doi":"10.22452/AJBA.VOL11NO2.1","DOIUrl":"https://doi.org/10.22452/AJBA.VOL11NO2.1","url":null,"abstract":"Manuscript type: Review paperResearch aims: This paper offers Southeast Asian researchers, particularly those from ASEAN, a vision to contribute to international agency theory literature.Design/Methodology/Approach: Most of the studies reviewed were identified during the author’s preparation for this paper which involves Malaysia.Research findings: Three research streams to which Malaysian researchers can contribute are: political connections, family companies and corporate recovery. The socio-political contexts thathave resulted in Malaysia being a suitable environment are also discussed. This paper identifies gaps in the literature; it accumulates arguments defining why the Malaysian setting is apposite and it also offers research design suggestions for Malaysians and researchers from Indonesia, the Philippines and Thailand, with some defining differences, to follow.Theoretical contributions/Originality: The outcome drawn from this paper assists Malaysian researchers in utilising the agency based theory to approach various topic selections and executions. The comparisons and contrasts made between Malaysia and the other three ASEAN countries may further motivate researchers of the ASEAN region to engage agency theory as a base for their research. Research limitation: A limitation to this paper is that the boundaries between the proposed categories of shareholder political connections are blurred. Keywords: Agency Theory, ASEAN, Malaysia, Review PaperKeywords: Agency Theory, ASEAN, Malaysia, Review PaperJEL Classification: G31, G33, G38, M41","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2018-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45872321","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 : 2018-06-28DOI: 10.22452/AJBA.VOL11NO1.6
H. Sofyani, Rusdi Akbar, Rodiel C. Ferrer
Manuscript type: Research paper. Research aims: This study aims to investigate the Performance Mea- surement System implementation in Indonesian local governments and the phenomenon of institutional isomorphism. Design/ Methodology/ Approach: This paper employed a qualitative approach, using semi-structured interviews and observations. The samples comprise the heads of departments and individuals representing the agencies and institutions in the Yogyakarta Special Region. A deductive thematic method was utilised as the data analysis technique. Research findings: The study reveals that institutional isomorphism is still in existence. It plays a dominant role in the Performance Measurement System (PMS) implementation of Indonesian local governments at the coercive level. This situation leads to the underachievement of the successful PMS implementation. Theoretical contributions/ Originality: This paper fulfills an iden- tified need for studying how institutional isomorphism influences PMS implementation. This area of study is underresearched in the public sector of accounting, particularly in Indonesia. Practitioner/ Policy implications: The results of this study show that there is a need for the government or authorities to focus more on understanding how institutional isomorphism at the coercive level may lead to poor PMS implementation. The authorities also need to improve the condition by emphasising on normative isomorphism which can address the problems caused by limited information system, budgetary, human resources and difficulties in determining performance measures. Research limitation: This study is limited to the Yogyakarta Special Region province thus findings cannot be generalised while the approach used is confined to the qualitative method only. This may also affect the outcome of the findings to some extent. Keywords: Local Government, Institutional Isomorphism, Perfor- mance Measurement System, Public Sector Accounting. JEL Classification: G11, G02, C91
{"title":"20 Years of Performance Measurement System (PMS) Implementation in Indonesian Local Governments: Why is Their Performance Still Poor?","authors":"H. Sofyani, Rusdi Akbar, Rodiel C. Ferrer","doi":"10.22452/AJBA.VOL11NO1.6","DOIUrl":"https://doi.org/10.22452/AJBA.VOL11NO1.6","url":null,"abstract":"Manuscript type: Research paper. \u0000Research aims: This study aims to investigate the Performance Mea- surement System implementation in Indonesian local governments and the phenomenon of institutional isomorphism. \u0000Design/ Methodology/ Approach: This paper employed a qualitative approach, using semi-structured interviews and observations. The samples comprise the heads of departments and individuals representing the agencies and institutions in the Yogyakarta Special Region. A deductive thematic method was utilised as the data analysis technique. \u0000Research findings: The study reveals that institutional isomorphism is still in existence. It plays a dominant role in the Performance Measurement System (PMS) implementation of Indonesian local governments at the coercive level. This situation leads to the underachievement of the successful PMS implementation. \u0000Theoretical contributions/ Originality: This paper fulfills an iden- tified need for studying how institutional isomorphism influences PMS implementation. This area of study is underresearched in the public sector of accounting, particularly in Indonesia. \u0000Practitioner/ Policy implications: The results of this study show that there is a need for the government or authorities to focus more on understanding how institutional isomorphism at the coercive level may lead to poor PMS implementation. The authorities also need to improve the condition by emphasising on normative isomorphism which can address the problems caused by limited information system, budgetary, human resources and difficulties in determining performance measures. \u0000Research limitation: This study is limited to the Yogyakarta Special Region province thus findings cannot be generalised while the approach used is confined to the qualitative method only. This may also affect the outcome of the findings to some extent. \u0000Keywords: Local Government, Institutional Isomorphism, Perfor- mance Measurement System, Public Sector Accounting. \u0000JEL Classification: G11, G02, C91","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2018-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47450888","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 : 2018-06-28DOI: 10.22452/ajba.vol11no1.9
R. Raut, N. Das, R. Kumar
Manuscript type: Research paper. Research aims: This paper aims to investigate the applicability of the Theory of Planned Behaviour (TPB) in examining individuals’ behavioural intention to invest in the capital market. This study ex- tends on the TPB model by considering the role of past behavioural biases (PBB) as a factor in influencing the individuals’ behavioural investment intentions. Design/ Methodology/ Approach: This paper employs a hypothesis deductive approach. The research model is tested through structural equation modelling (SEM). Data were collected from 396 individuals in Eastern India through a survey and then analysed. Research findings: The results of this study demonstrate the applicability of the TPB in predicting the individuals’ behavioural intention to invest in the capital market. This study indicates that attitude toward behaviour, subjective norms and perceived behavioural control are significantly associated with behavioural intentions. The findings signify that the inclusion of past PBB can improve the predictive power of the model. Theoretical contributions/ Originality: This study expands on the well-established TPB model by incorporating PBB in examining behavioural intentions. It also extends the applicability of the TPB in the area of investment decision making. Practitioner/ Policy implications: The findings of this study reveal that behavioural biases are inseparable from normal human beings’ decision making. The reason is because behavioural biases can distort the individuals’ fundamental valuation of stocks. Therefore, it is imperative that fund managers incorporate this dimension as part of their risk modelling to enhance investment analysis and strategies. The outcome of this study can be used as a guideline for understanding the factors and programmes that need to be instilled to increase online stock trading among current and future investors. Research limitation: This study is limited to non-financial sectors due to measurement limitations. Keywords: Theory of Planned Behaviour, Past Behavioural Biases, Investment Decision Making. JEL Classification: G11, G02, C91
{"title":"Extending the Theory of Planned Behaviour: Impact of Past Behavioural Biases on the Investment Decision of Indian Investors","authors":"R. Raut, N. Das, R. Kumar","doi":"10.22452/ajba.vol11no1.9","DOIUrl":"https://doi.org/10.22452/ajba.vol11no1.9","url":null,"abstract":"Manuscript type: Research paper. \u0000Research aims: This paper aims to investigate the applicability of the Theory of Planned Behaviour (TPB) in examining individuals’ behavioural intention to invest in the capital market. This study ex- tends on the TPB model by considering the role of past behavioural biases (PBB) as a factor in influencing the individuals’ behavioural investment intentions. \u0000Design/ Methodology/ Approach: This paper employs a hypothesis deductive approach. The research model is tested through structural equation modelling (SEM). Data were collected from 396 individuals in Eastern India through a survey and then analysed. \u0000Research findings: The results of this study demonstrate the applicability of the TPB in predicting the individuals’ behavioural intention to invest in the capital market. This study indicates that attitude toward behaviour, subjective norms and perceived behavioural control are significantly associated with behavioural intentions. The findings signify that the inclusion of past PBB can improve the predictive power of the model. \u0000Theoretical contributions/ Originality: This study expands on the well-established TPB model by incorporating PBB in examining behavioural intentions. It also extends the applicability of the TPB in the area of investment decision making. \u0000Practitioner/ Policy implications: The findings of this study reveal that behavioural biases are inseparable from normal human beings’ decision making. The reason is because behavioural biases can distort the individuals’ fundamental valuation of stocks. Therefore, it is imperative that fund managers incorporate this dimension as part of their risk modelling to enhance investment analysis and strategies. The outcome of this study can be used as a guideline for understanding the factors and programmes that need to be instilled to increase online stock trading among current and future investors. Research limitation: This study is limited to non-financial sectors due to measurement limitations. \u0000 \u0000Keywords: Theory of Planned Behaviour, Past Behavioural Biases, Investment Decision Making. \u0000JEL Classification: G11, G02, C91","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2018-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45134791","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 : 2018-06-28DOI: 10.22452/AJBA.VOL11NO1.4
Nguyen Thi Phuong Linh, Sundaresan Mohanlingam
Manuscript type: Research paper. Research aims: This study investigates the relationship between cash conversion cycle and profitability that exists in the agriculture and food industries in Thailand. It specifically aims to examine the influence of production cycle, cash collection cycle, and cash payment cycle on profitability. In addition, it also aims to measure the influence of control variables such as size and debt ratios have on profitability. Design/ Methodology/ Approach: This study analysed the data of 34 listed companies in agriculture and food industry in the Stock Exchange of Thailand from 2009 to 2013. Pearson’s correlation and the regression analysis approach were used to examine the relationship between cash conversion cycle and profitability. Research findings: The results indicate that cash conversion cycle (CCC) has a significant inverse relationship with profitability in the agriculture and food companies in Thailand. Further, production cycle and debt ratio were found to have a significant negative relationship with return on assets (ROA) while payment cycle and size have a positive relationship with return on equity (ROE). No significant relationship was found between cash collection cycle and profitability. Theoretical contributions/ Originality: This study expands on the theoretical concepts of cash conversion cycle and its effects on profitability. Although studies have been done on manufacturing firms and industrial SMEs, no study has focused on the agriculture and food industries in Thailand. Practitioner/ Policy implications: Insights gained from the findings can be used to improve working capital decisions and to provide policy directions in the management of agriculture and food industries in Thailand. This study is especially significant as it deals with perishable goods where time is of vital importance for the inventory, collection and payment cycle management since these factors have subsequent influence on firm profitability.Research limitation: This study is limited to 34 listed firms in Thailand and for a period of five years due to the limited access to the annual reports of firms. In addition, some annual reports were only available in the Thai language which hindered the interpretation of data for the current study. Therefore, future studies should investigate the agriculture and food industries of other ASEAN countries by studying the same relationship for comparison. Keywords: Cash Conversion Cycle, Production Cycle, Cash Collection Cycle, Payment Cycle, Profitability, Working Capital Management.JEL Classification: M41, L25, Z12
{"title":"The Effects of Cash Conversion Cycle on Profitability: An Insight into the Agriculture and Food Industries in Thailand","authors":"Nguyen Thi Phuong Linh, Sundaresan Mohanlingam","doi":"10.22452/AJBA.VOL11NO1.4","DOIUrl":"https://doi.org/10.22452/AJBA.VOL11NO1.4","url":null,"abstract":"Manuscript type: Research paper. \u0000Research aims: This study investigates the relationship between cash conversion cycle and profitability that exists in the agriculture and food industries in Thailand. It specifically aims to examine the influence of production cycle, cash collection cycle, and cash payment cycle on profitability. In addition, it also aims to measure the influence of control variables such as size and debt ratios have on profitability. \u0000Design/ Methodology/ Approach: This study analysed the data of 34 listed companies in agriculture and food industry in the Stock Exchange of Thailand from 2009 to 2013. Pearson’s correlation and the regression analysis approach were used to examine the relationship between cash conversion cycle and profitability. \u0000Research findings: The results indicate that cash conversion cycle (CCC) has a significant inverse relationship with profitability in the agriculture and food companies in Thailand. Further, production cycle and debt ratio were found to have a significant negative relationship with return on assets (ROA) while payment cycle and size have a positive relationship with return on equity (ROE). No significant relationship was found between cash collection cycle and profitability. \u0000Theoretical contributions/ Originality: This study expands on the theoretical concepts of cash conversion cycle and its effects on profitability. Although studies have been done on manufacturing firms and industrial SMEs, no study has focused on the agriculture and food industries in Thailand. \u0000Practitioner/ Policy implications: Insights gained from the findings can be used to improve working capital decisions and to provide policy directions in the management of agriculture and food industries in Thailand. This study is especially significant as it deals with perishable goods where time is of vital importance for the inventory, collection and payment cycle management since these factors have subsequent influence on firm profitability.Research limitation: This study is limited to 34 listed firms in Thailand and for a period of five years due to the limited access to the annual reports of firms. In addition, some annual reports were only available in the Thai language which hindered the interpretation of data for the current study. Therefore, future studies should investigate the agriculture and food industries of other ASEAN countries by studying the same relationship for comparison. \u0000Keywords: Cash Conversion Cycle, Production Cycle, Cash Collection Cycle, Payment Cycle, Profitability, Working Capital Management.JEL Classification: M41, L25, Z12","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.9,"publicationDate":"2018-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41946889","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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