• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.453-463
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• 2021

The current study aims to investigate the relationship between CSRD and firm performance, as an indicator for corporate socially responsible behavior, and corporate market performance of listed companies on the Amman stock exchange (ASE). The study adopts a quantitative methodology and utilizes pooled data sets that was collected following content analysis approach of the annual reports for the period 2014 to 2019. The study sample consists of 42 listed companies. The study ran a multiple regression model in order to capture the relationship between the independent variable CSRD and the dependent variable that is Firm performance which was measured using Tobin's Q. The study also utilized five control variables in order to control the hypothesized relationship between CSRD and Firm Performance. The results indicate a negative but significant relationship between CSRD and corporate market performance measured by Tobin's Q. The results stand against the notion of the business case for CSR, and indicate the opposite position, so, the higher CSRD, the lower will be Tobin's Q. Such results support the notion of the institutional theory, and provide an initial evidence for legitimacy seeking behavior in Jordanian companies. However, the results indicate a lower level of awareness of CSR across investors and market players, which support arguments of the difference in market perceptions towards CSR.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.465-473
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• 2021

This study is the application of a choice experiment to assess Mekong Delta urban households' preferences and motivations for ecosystem conservation in the U Minh forest. The study applied a choice modeling approach to estimate the economic values of the proposed ecosystem conservation program in the U Minh forest by accessing urban consumer preferences and their willingness to pay for the project. Discrete choice experimental data was collected from 450 residents in the cities of the Vietnamese Mekong Delta. The multinomial logit model was employed to identify consumer's stated preferences for the environmental and sustainability attributes of the conservation project. The results showed that Mekong Delta urban residents paid much attention to the proposed project to protect and develop the U Minh forest. In addition, the results showed that higher education, income, and knowledge of the U Minh forest revealed a higher likelihood of selecting the project, while the older residents would select the status quo more than the younger ones. The study also proved that the effect of participation had a strong impact on the willingness to pay for the project. The findings could be useful for policymakers to take action to raise resident's awareness and willingness to pay for the U Minh forest project.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.157-166
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• 2021

In the past four decades, corporate social responsibility (CSR) issues have grown substantially due to the increasing demand for transparency and growing expectations that corporations should manage and improve their social, environmental, and economic performance. As a result, most organizations, companies, and governments provide CSR reports, while a large number of companies are still engaged in defining and integrating CSR into several aspects of their business. CSR is an obligation to society (Lee, 2020). The linkage between CSR and consumer-company identification (CCI) is important under company stakeholders. Consumers who care about those issues often change their shopping habits to bring greater value to the community. They will avoid buying environmentally or socially harmful products, and actively seek the products and services of the companies that carry out social responsibility. Companies conducting CSR activities such as charity works or environmental activities will be easy to associate as a responsible organization for always meeting the necessity of society. Therefore, companies must consider CSR a long-term strategy. The strategic approach to CSR plays an increasingly significant part in the business competitiveness - which helps create companies' values while gains trust and respect from the consumers, partners in particular, and the social community in general. This study is conducted to show evidence from project-based organizations about the CSR factors that influence consumer loyalty and the impact level of those factors on customer loyalty.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.717-729
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• 2021

This paper examines the efficacy of the default risk factor in an emerging market context using the Fama-French five-factor model. Our aim is to test whether the Fama-French five-factor model augmented with a default risk factor improves the predictability of returns of portfolios sorted on the firm's characteristics as well as on industry. The default risk factor is constructed by estimating the probability of default using a hybrid version of dynamic panel probit and artificial neural network (ANN) to proxy default risk. This study also provides evidence on the temporal stability of risk premiums obtained using the Fama-MacBeth approach. Using a sample of 3,806 firm-year observations on non-financial listed companies of Pakistan over 2006-2015 we found that the augmented model performed better when tested across size-investment-default sorted portfolios. The investment factor contains some default-related information, but default risk is independently priced and bears a significantly positive risk premium. The risk premiums are also found temporally stable over the full sample and more recent sample period 2010-2015 as evidence by the Fama-MacBeth regressions. The finding suggests that the default risk factor is not a useless factor and due to mispricing, default risk anomaly prevails in the Pakistani equity market.

• Asia-Pacific Journal of Business
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• v.11 no.2
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• pp.189-206
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• 2020

Purpose - The purpose of this study is to clarify the mediating effect of profitability and activity in the relationship between productivity and stock return, assuming that the productivity of the company will affect share prices with the parameters of profitability and activity. Design/methodology/approach - The study extracted productivity indicators, profitability indicators, activity indicators, and share price-related indicators from 1999 to 2018 of non-financial enterprises listed on the securities market, and then classified them into three factors: productivity (labor productivity LP, capital productivity CP), activity (TT), and profitability (net profit rate NI, operating profit ratio OI) through the factor analysis method, and analyzed the impact of each factor on the stock return through steps 1 to 3. Findings - The regression analysis shows that productivity has a significant positive effect on the stock return through the full mediating effect of profitability and activity. Research implications or Originality - In a situation where the relationship between productivity and profitability is not clear, this study is meaningful in that it has empirically analyzed that productivity has a positive effect on the stock return by mediating effects of profitability and activity.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.123-133
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• 2021

The purpose of this study was to analyze the influence of product quality factors, product risk, company reputation, and service quality on the purchase intention of insurance policies by customers in Indonesia. The variables in this study are product quality, service quality, company reputation, perceived risk, and purchase intention. This study uses a quantitative approach. Primary data were obtained from 154 respondents. Data processing and model testing use the Structural Equation Modeling procedure with Lisrel 8.80. At the significance level of 0.05, the research found that product quality had a positive and significant effect on purchase intention; product quality had a positive and significant effect on company reputation; product quality had a positive and significant effect on perceived risk perception; company reputation had a positive and significant effect on purchase intention; company reputation has a positive and insignificant effect on service quality; product quality has a positive, but non-significant effect on service quality; service quality has a positive and significant effect on purchase intention; perceived risk has a negative and significant effect on purchase intention; perceived risk has a positive and significant impact on service quality; and perceived risk has a positive and significant effect on company reputation.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.933-941
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• 2021

This research aims to test the effect of corporate governance factors on corporate social responsibility (CSR) disclosure and its impact on a company's financial performance. The factors of corporate governance referred to in this research are foreign ownership, state ownership, number of board of commissioners, the proportion of independent commissioners, and educational background of commissioners' board. Based on the purposive sampling method, 194 companies were selected with a total of 582 observations. The data analysis used in this study was the Structural Equation Model (SEM) approach by using the alternative Partial Least Square (PLS) method. The results of this research indicated that state ownership, number of board of commissioners, and the proportion of independent commissioners had a significant positive effect on CSR disclosure. While the foreign ownership and the educational background of the commissioners' board have had an insignificant effect on CSR disclosure. Then, CSR disclosure had a significant positive effect on the companies' financial performance. The findings of this study suggest that the positive effect of the CSR disclosure on performance is because the disclosure is able to improve the company's reputation; the more social activities are carried out will improve the customers' loyalty as well as the support from other stakeholders which in turns will improve the company's performance.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.1269-1275
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• 2021

The phenomenon of money laundering through capital market instruments and various investment instruments in it is a challenge for law enforcement officials, particularly the Corruption Eradication Commission (KPK) in investigating money laundering crimes originating from corruption. This study aims to analyze comprehensively about: (1) implementation of policies on prevention and eradication of money laundering at the KPK in the context of handling money laundering on the capital market; and (2) an effective model for implementing policies to prevent and eradicate money laundering in the KPK in the context of handling money laundering on the capital market. By using a qualitative approach and Interactive Model analysis from Miles and Huberman, it was concluded that the results of the implementation of the policy of preventing and eradicating money laundering at the Corruption Eradication Commission in the context of handling money laundering crimes in the capital market had a positive impact on society, individuals and groups. The theoretical implications of the results of this study are related to the content of policy that is still relevant but for the context of implementation it needs to be refined or reconstructed by adding three elements, namely: communication, monitoring, and evaluation and security.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.543-550
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• 2021

The purpose of the study is to investigate the simulated effects of the Philippine tax reform, which is called Tax Reform for Acceleration and Inclusion Law, on household income and occupational choice. The study utilized the Family Income Expenditure Survey and tax collection as input to Computable General Equilibrium-Top Down Behavioral Microsimulation approach to determine the effect of Philippine tax reform on household income and occupational choice. The results of the study show that the household income in the Philippines will increase due to the implementation of the Philippine tax reform. Also, the study had found that tax reform results drive the household to shift from being farming entrepreneur to salaried workers since the utility derived from being workers is much higher compared to the utility derived from being entrepreneur. The findings of this research suggest that the Philippine Tax Reform for Acceleration and Inclusion Law is beneficial to the household since their income would increase, which will further result to an increase in their capability to buy goods and services. However, the tax reform would also lead to imbalance between the distribution of numbers of workers across sectors such as entrepreneurial farming, entrepreneurial non-farming, and wage sector.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.927-938
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• 2021

Small and Medium Enterprises (SMEs) is one of several activators that drives the economy of Indonesia because SMEs provide jobs, increase Gross Domestic Product (GDP), and assure the delivery of products and services. However, Indonesian SMEs are not very competitive in the industrial world, and one of the causes is the low quality of products that undermine customer satisfaction. There are several factors presumed as influencing customer satisfaction, which among others include product knowledge, service quality, and competitive advantage. The objective of this research is to reveal the contribution of product knowledge and service quality to customer satisfaction with competitive advantage as the mediation variable. This research used a quantitative approach. The causal relationship across variables was examined with Structural Equation Modeling-Partial Least Squares (SEM-PLS). The sample of this research involved 140 respondents. Data was collected through a questionnaire and the items in the questionnaire were processed with a software called SmartPLS version 3.3.2. Results of this research indicate (1) product knowledge and service quality can increase competitive advantage and customer satisfaction in East Java SMEs; (2) competitive advantage can act as a mediator in the effect of service quality on customer satisfaction (3) product knowledge can increase customer satisfaction but the increase is not significant statistically.