• Communications for Statistical Applications and Methods
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• v.27 no.6
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• pp.649-673
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• 2020

This paper makes a theoretical contribution by providing clear and detailed derivation of economic agents' decision problems including elastic labor supply in Gertler's overlapping generation (OLG) model. We apply the model to the Korean economy by calibration based on Korean economic data. It also analyzes the impact of current social issues such as aging and extension of retirement age, on the Korean economy in a long-run equilibrium. Subsequently, we also discuss the implications of the analysis. Aging has prolonged the period of retirement; therefore, population structure changes by the increase in the proportion of retirees, the total consumption-to-GDP ratio decreases, and capital stock increases due to reduced propensity to consume out of wealth in preparation for an individual's retirement life. The implementation of retirement age extension increases the proportion of retirees relatively less and alleviates fluctuations in labor supply and the share of financial assets for both economic agents. However, the decrements in consumption-to-GDP ratio is larger than before, and this leads to a larger rise in the capital stock compared to when there is only an aging effect.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.325-334
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• 2021

The study investigates the effectiveness of the macroprudential policy on credit growth in Vietnam. The authors use the logic of the transmission mechanism of macroprudential policy on credit growth. Research variables include economic growth, inflation, interest rate, and quarterly bank-level data from 28 commercial banks in Vietnam during 2011-2018. The results reveal that: (i) GDP growth had a positive impact on credit growth of small banks but had no impact on large banks, (ii) Domestic Systemically Important Banks (D-SIBs) and small banks respond differently to macroprudential measures of imposing different credit growth targets for different bank groups, (iii) Restrictions on foreign currency loans are found to be effective in curbing credit growth for the full sample and small banks, (iv) Inflation and economic cycle have significantly impacted credit growth at bank-level in Vietnam and (v) Interestingly, a significant positive relationship between interest rates and credit growth is found for the full sample and D-SIBs in Vietnam. The findings suggest that a stable macroeconomic environment should be good conditions for financial stability, and monetary authority should pay more attention to small banks' behaviors than D-SIBs behavior, toward such "administration" tools since small banks tend to prefer "breaking the rules" to make profits.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.149-156
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• 2021

Gambling negatively affects the economy, and it brings unwanted financial, social, and health outcomes to gamblers. On the one hand, unemployment is argued to be a leading cause of gambling. On the other hand, gambling can cause unemployment in the second-order via gambling-induced poor health, falling productivity, and crime. In terms of significant effects, previous studies were able to establish an association, but not causality. The current study examines the time-sequence and contemporaneous causalities between lottery gambling and unemployment in Thailand. The Granger causality and directed acyclic graph (DAG) tests employ time-series data on gambling- and unemployment-related Google Trends indexes from January 2004 to April 2021 (208 monthly observations). These tests are based on the estimates from a vector autoregressive (VAR) model. Granger causality is a way to investigate causality between two variables in a time series. However, this approach cannot detect the contemporaneous causality among variables that occurred within the same period. The contemporaneous causal structure of gambling and unemployment was identified via the data-determined DAG approach. The use of time-series Google Trends indexes in gambling studies is new. Based on this data set, unemployment is found to contemporaneously cause gambling, whereas gambling Granger causes unemployment. The causalities are circular and last for four months.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.513-524
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• 2021

Many organizations have realized that to stand out in today's competitive business world, they need not only academic skills but also emotional intelligence (EI). This study aims to investigate the relationship between EI and the organizational performance of university teachers. The convenient sampling technique has been used to select 200 respondents from 25 universities, and a self-administered research instrument has been employed to collect data from the respondents. The reliability test of items is confirmed by Cronbach's Alpha test using SPSS. Factor analysis has been used to find out the significant constructs of EI, which influence organizational performance. Likert scale and multivariate regression analysis have been used for measuring questionnaire items and testing hypotheses. The key outcomes of this study suggest that interpersonal competence, job performance, effective leadership, motivation and creativity, and social competence have a vital influence on organizational performance. The study also reveals that a decision-making system should be developed and the policymakers and concerned authorities should give more emphasis on key variables of EI that are affecting the advancement of higher education. Further investigation is encouraged to identify the mediating and moderating effects of EI on the relationship between employee work engagement and job performance in the organization.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.401-410
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• 2021

The study tests resilience and work ethics as mediators between charismatic leadership and affective commitment to change. Many organizations, such as banking, insurance companies, and financial institutions, face strong competition and consequently need to effect considerable change within the organization. Many variables have a significant impact on the success of organizational change, and people (resilience and work ethics) as well as change leaders are primary variables in this research. This study, using structural equation modeling, was conducted on a sample of 355 employees from banking and insurance companies. In this study, the inventory of affective commitment to change, the Conger-Kanungo charismatic leadership scale, resilience, and work ethic inventory was used. The results showed that resilience is a partial mediator between charismatic leadership and affective commitment to change. Meanwhile, work ethic was not a mediator between the two variables. The results showed that charismatic leadership can have a direct, positive, and significant impact on affective commitment to change without mediators, and that resilience can act as partial mediator. Furthermore, work ethic had a significant and positive effect on affective commitment to change through resilience. In other words, resilience is a full mediator for the impact of work ethic on affective commitment to change.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.943-952
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• 2021

The purpose of this study is to evaluate the effect of COVID-19 on corporate governance attributes and firm performance association. This research used a sample of 188 non-financial firms from the Malaysian market for the years 2019-2020. We found that the COVID-19 has affected all firm characteristics including firm performance, governance structure, dividend, liquidity, and leverage level, yet, the difference between prior and post COVID-19 pandemic is not significant. Also, the investigation revealed that board size exerts a significant positive impact on firm performance. After splitting the sample based on year, however, we found that board size does not matter in the uncertain time of the current crisis, while board diversity appeared to be significantly enhancing firm performance in the crisis time compared to the prior year where it has an inverse association with firm performance in both indicators. Board meetings and audit committee meetings seemed to have a significant negative influence on firm performance pre and post-COVID-19. This study contributes to the limited literature by providing the first empirical evidence on the impact of Coronavirus on the firm performance and corporate governance association.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.563-572
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• 2021

This study aims to investigate the implementation of village fund (VF) policy in Indonesia by addressing the following issues: (1) what is the VF policy; (2) factors that support and hinder policy implementation; (3) impact of policy implementation; and (4) model for implementing village fund policies that can improve community welfare. Through a descriptive qualitative-based approach, several indicators are measured, namely, the substance of implementing rules, the results of project implementation, supporting and inhibiting factors for policies, participation factors, and the impact generated by village fund policies, which include social and economic effects. The extraction of this information and indicators will lead this study to produce ideal models and propositions for quantitative confirmatory research as a future research agenda. This study was conducted in two villages (Mojomulyo and Tambakromo) in Pati District, Central Java, Indonesia. Data collection model using interviews and observations from all actors who play a role (e.g., village government, village supervisory agency, and community). The study results show that policies have been implemented by normative rules; there are several supporting and inhibiting factors both internal and external. The study results also confirm the relevance of the articulated theory and some comprehensive input to our study.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.951-960
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• 2021

The paper aims to explain the influence of celebrity endorser on consumers' purchase intention, and explain the influence of brand perception on purchase decision in regard to the case of OPPO F-series and singer Son Tung MTP, in the Vietnamese context. Advertisement is regarded as the fastest and most effective communication method for brands to build an association and attract their target consumers. Among various types of communication tools, the use of celebrity endorsement is considerably growing owing to the explosion of social platforms. This study employs survey data from 258 people living and working in Ho Chi Minh City, Vietnam. Then, those data were used to analyze the general hypotheses by conducting research reviews based on foregoing investigations. The results from data analysis reveal that celebrity's physical attractiveness, credibility, popularity, expertise, match-up, and multiple endorsements all have positive impacts on purchase intention. The findings from this study would suggest that brands, in general, and smart-phone brands, in particular, should not only focus on these attributes to select a suitable brand endorser, but also need to predict some potential risks when utilizing celebrity endorsement. Finally, various implications and recommendations for further studies and marketers are also discussed.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.783-790
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• 2021

The remittances play a major and a very critical role in promoting economic growth and development activities in the developing countries. In this study, the relationship between per capita gross domestic product (GDP) and remittances paid has been investigated based on the case studies in Malaysia from 1987 to 2018. Data was collected from various sources namely statistical yearbook by World Bank and Asian Development Bank. All variables are expressed in natural logarithm form. The technique utilized is the nonlinear autoregressive distributed lags (hereafter NARDL) approach which was introduced by Shin et al.(2014) to examine both short run and long run relationships, as well as the direction of causality, due to the asymmetric relationship between GDP and remittances. The bound test verifies asymmetric cointegration among the variables. The empirical results show that the remittances paid has a momentous short-run and long-run effect towards capital accumulation in Malaysia. Remittances also increase a positive relationship with capital accumulation for Malaysia. We found that remittances form a significant source of external capital and investment for developing countries especially Malaysia which helps in promoting economic development. Furthermore, as a developing country, foreign workers are a source of income to the receiving countries and an indicator to boost sender countries.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.151-164
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• 2021

The paper identifies the enablers (drivers) and inhibitors (barriers) influencing e-customs implementation in Vietnam (known as a developing country with a lower technological environment) along with determining the impact of e-customs on firm performance. The survey was conducted with the representatives (managers) of firms in five cities and provinces dominating Vietnam's international trade. The data was analyzed using structural equation modeling (SEM). The findings show two significant drivers (enablers) - relative advantages and national culture, while compatibility and ease of use are the barriers. Previous studies showed that cultural dimensions related to 'uncertainty acceptance' and 'individualism' encourage innovation; however, this paper demonstrates that 'uncertainty avoidance' and 'collectivism' promote e-customs deployment in Vietnam. Previously, Vietnamese culture was known for scoring high on cultural dimensions related to 'power distance' and 'short-term orientation'. However, today, as an emerging country, Vietnamese has switched to 'low distance' and 'long-term orientation', especially in terms of e-customs innovation. Additionally, the paper also emphasized that e-customs implementation had a positive influence on firm performance in Vietnam. Based on the results of the paper, policy-makers can devise essential solutions to enhance e-customs implementation as well as managers of firms can set-up strategies to adapt to the modernized environment.