• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.875-883
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• 2021

In view of integration and development, compliance with regulations on information disclosure has important implications for users. Corporate social responsibility disclosure (CSRD) is an increasing concern of the community and society. CSRD always poses many challenges for the profitability of banks. The article uses the ordinary least square method to examine this relationship and employs timeseries data of five years from 18 Vietnamese listed banks from 2015 to 2019. The analysis is informed by Jensen and Meckling's Agency theory, Freeman's Stakeholder theory, and Dowling and Pfeffer's Legitimacy theory. The study results show that, with the CSRD dependent variable, return on assets (ROA) and net interest margin (NIM) have an opposite influence, but return on equity (ROE) has no effect on CSRD, while on the profitability dependent variable, CSRD has a different influence from ROA, ROE, and NIM. To enhance the relationship between CSRD and profitability, Vietnamese listed banks need to comply with CSRD as well as demonstrate responsibility to the community and society. Managers need to have clear development policies and strategies to ensure both profitability and responsibility regarding social and community activities. The State Securities Commission of Vietnam should enforce strict sanctions, conduct inspection, and complete evaluation criteria for Vietnamese listed banks.

• Asian Journal of Business Environment
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• v.11 no.1
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• pp.5-15
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• 2021

Purpose: The study aims to delineate Shariah Governance Framework (SGF) by applying the components of New Institutional Theory (NIT) to provide an understanding of how Islamic banks theoretically influence Shariah Governance (SG) practice, structure, and process. Design/methodology/approach: As it is a conceptual paper, this paper has prepared based on an analytical approach to show how such institutions could provide a more effective system concerning the contents, procedures, and practices for the multiple users in the SG process of Islamic banks. Findings: The paper critically explores the adoption of NIT to develop SGF with its existing practice, structure, and procedure. Utilizing NIT, a proposed theoretical framework has developed for exploring the SG through its major components, i.e., 'isomorphism' and 'legitimacy'. It is stated that NIT can offer a useful framework by which homogenous structures, comprising guidelines, standards, and practices become recognized and authorized as a satisfactory standard corporate exercise. Thus, the proposed theoretical framework would be beneficial in understanding and exploring the SGF. Conclusion: The application of this SGF could help to justify the key dimensions of NIT with its overall formation, function, and practices that might also help to attain legitimacy.

• Journal of Digital Convergence
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• v.13 no.8
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• pp.113-121
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• 2015

This study is to identify that the efforts of business ethics build customer loyalty, and it makes customers lead to purchase behavior in the viewpoint of grasping convergence effect. The survey has proved that ethical management influences consumers' purchase behaviors, and consumers' image perception and trust on corporate play parameter role in that process. This results imply that corporate's ethical management gives increase in revenue and reputation to corporate. So managers must recognize business goes on when the social legitimacy is approved by the public, and make efforts to arrange systems and programs to foster ethical management. In the future study, it is required that an analysis to differentiate target range and level of implementation of ethical management and research associated with ethical issue of high public interest.

• Management & Information Systems Review
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• v.28 no.3
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• pp.117-140
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• 2009

The purpose of this study is to investigate the effects of corporate mecenat activities, ultimately making more firmly established the theory of mecenat activities from the perspective of marketing. For the purpose, this researcher examined the motives of such activities and analyzed the current state and problems of those activities in Korea. In this study, the motives of corporate mecenat activities are largely classified into the improvement of corporate image, which is identified from the view of cultural investment, and direct corporate profits like tax favor, from the view of marketing. Regarding the effects of corporate mecenat activities, P. Kotler and J. Scheff suggested that in future, corporate supports to art would be the most remarkable part of marketing. In association, the Australian Foundation for Culture & Humanities and Arthur Andersen described the effects of corporate mecenat activities in form of cultural investment largely in terms of business, market and employees. In a similar vein, the Korea Business Council for the Arts classifies the effects of corporate mecenat activities largely into three, corporate legitimacy, market advantage and benefit to employees. In relation to corporate mecenat activities, now, the theory of mecenat which is established from the perspective of marketing is considered more persuasive than that which is provided from the perspective of philanthropy. For more corporate efficiency and effectiveness, in conclusion, it's needed to orient the theory of mecenat from the perspective of marketing.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.1-12
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• 2021

Altman's Z-score is used to measure a company's financial health and to predict the probability that a company will collapse within 2 years. It is proven to be very accurate to forecast bankruptcy in a wide variety of contexts and markets. The goal of this study is to use Altman's Z-score model to forecast insolvency in non-financial publicly traded enterprises. Non-financial firms are a significant industry in Malaysia, and current trends of consolidation and long-term government subsidies make assessing the financial health of such businesses critical not just for the owners, but also for other stakeholders. The sample of this study includes 84 listed companies in the Kuala Lumpur Stock Exchange. Of the 84 companies, 52 are considered high risk, and 32 are considered low-risk companies. Secondary data for the analysis was gathered from chosen companies' financial reports. The findings of this study show that the Altman model may be used to forecast a company's financial collapse. It dispelled any reservations about the model's legitimacy and the utility of applying it to predict the likelihood of bankruptcy in a company. The findings of this study have significant consequences for investors, creditors, and corporate management. Portfolio managers may make better selections by not investing in companies that have proved to be in danger of failing if they understand the variables that contribute to corporate distress.

• The Korean Journal of Archival Studies
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• no.79
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• pp.33-82
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• 2024

Interest in ESG management, which spread through the UN PRI in 2006, has recently spread throughout our society. Consumers use a company's activeness in the ESG field as the standard of consumption behavior, and the international community is reorganizing and strengthening various regulatory measures. In the investment market, non-financial performance (ESG information) is used as an important investment indicator along with financial performance (credit rating). Due to these changes in the corporate evaluation paradigm and market pressure, if a company neglects ESG response activities, it is more likely to be excluded from market selection, and accordingly, the importance of ESG management is also increasing. Companies are making various efforts to secure legitimacy in response to these market pressures, but in the process, it is difficult to systematically manage and utilize records/data that are the basis for ESG management. For a basic understanding of ESG management, this paper summarizes the emerging process of ESG and the current ESG-related regulations applied to companies. Through this, it can be seen that ESG management is not carried out with the good will of the company, but is accepted as a management strategy for the survival of the company according to the change in the corporate evaluation paradigm. Through interviews with the company's ESG-related personnel, the company's ESG response process was divided into passive communication and active communication, and the problems identified during the interview were summarized for each communication type. In addition, in the process of passively and actively communicating ESG management information with internal and external stakeholders, the possibility that ESG archives can function as a tool to overcome problems for each communication type was raised, and five types of ESG archives that can play this role were presented.

• Journal of East Asia Management
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• v.3 no.2
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• pp.1-19
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• 2022

This study suggests an integrated theoretical framework for the relationship between political risk and multinational corporation (MNC) subsidiary's performance in the emerging market. The political risk would have a negative impact on MNC subsidiary's performance in the emerging countries that are developing in Asia, the Commonwealth of Independent States, Africa, and South America. The major reason is that political risks could generate a loss of benefit or a loss of control for MNC's subsidiary. In this study, I suggest that corporate social responsibility (CSR) strategy would be a solution to overcome various political risks. Specifically, the affiliated firms with diversified industries or greater financial resources could mitigate the negative impact of political risk than unaffiliated firms. Because they can use their tangible or nontangible asset such as information, technology, and construction in order to gain legitimacy and trust from local government, local community, and local firms in the emerging market. Finally, I claimed the costs of the affiliated firms would exceed the benefits at the initial stages, while the benefits of affiliated firms would exceed the costs over time when political risks become higher. The reason is that the trust gained from local stakeholders accumulates over time and the impact of CSR strategy would become an important solution to overcome the risks in and unstable context.

• Journal of Distribution Science
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• v.21 no.10
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• pp.77-84
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• 2023

Purpose: This study aims to determine the impact of green accounting on the distribution of company financial performance. Green Accounting is seen as an accounting approach that considers the environmental impact of business activities and the distribution of financial performance which is expected to provide great benefits to the company. Research Design Data and Methodology: The population of this study is 168 manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2020. The research theory uses the Legitimacy Theory and the Shareholder Theory. Research data were analyzed using multiple regression models with purposive sampling. Green Accounting in this study uses environmental cost proxies using Return on Capital Employed (ROCE). Financial performance uses the Return on Equity (ROE) proxy. Results: research shows that the influence of green accounting can provide important input to operational managers in manufacturing companies in making decisions regarding environmental costs and environmental protection that will provide economic benefits for the company. In addition, these findings also clarify the great benefits of green accounting policies for a company's production process. Conclusion: Green Accounting has a long-term impact through the company's financial performance. Green Accounting can be the basis for companies in deciding whether to invest or not.

• Asia pacific journal of information systems
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• v.32 no.3
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• pp.537-563
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• 2022

This study investigates the adoption and application of digital transformation in the financial sector and analyzes the process and outcomes of digitization and digitalization in the field of the finance industry of South Korea and overseas, in order to seek both managerial and strategic implications for successful implementation of digital transformation in the future. The findings show that, for successful digital transformation, it is necessary to maximize active and systematic use of advanced online and digital technologies that form the basis of business and create an open, horizontal organizational culture and communication system to equally share and distribute advanced technologies and competencies through the entire organization. Furthermore, this study also discovers the legitimacy to concentrate the organizational competencies and know-how in providing technical training for members, expanding customer experience, and improving customer satisfaction services to contribute to improving the quality of life for members of the organization and creating and improving social and public infrastructures, instead of using digital transformation only to improve productivity of organizations or firms. As such, it is necessary to concentrate corporate competencies in establishing and supplying digital transformation that is not just human-centered but also has productivity, innovativeness, and reliability at the same time.

• Journal of Technology Innovation
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• v.29 no.4
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• pp.59-93
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• 2021

This article discusses the innovation activities of firms that aim for system transformation from the perspective of 'Transformative Innovation Policies'. Here, for the sustainable transformation of our society, a firm that finds the 'purpose' of business activities in solving social problems and implements a new business model is defined as a 'transition-oriented firm'. The main characteristics of a transition-oriented firm are examined in terms of 1) transition vision and mission setting, 2) business model innovation for transition, 3) network formation for system transition, and 4) securing legitimacy of transition. And through case studies, the approach, significance, and limitations of the transition-oriented corporate innovation theory are discussed. The case study is from a Eisai Korea, which aims for an integrated prevention, treatment, and care system centered on residents and citizens.