• The Journal of Asian Finance, Economics and Business
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• v.6 no.1
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• pp.231-240
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• 2019

The paper aims to investigate the relationship between firm size and organizational actions on adopting social media for corporate reputation management. The sample group of 198 companies is selected with a simple random sample method from the New York Stock Exchange (NYSE) listings: Sixty nine companies were from the Fortune 500 listings, seventy one companies from the NYSE midsize capitalization and fifty eight companies from the NYSE small capitalization listings. This study employs cross tabulations and Chi-square analysis, and the Kruskal-Wallis that enables the comparison of three samples that are independent. The results of the study show that (1) large firms have more social media ownership than small firms, (2) large firms respond to social media posts at a greater frequency and quickly than small firms, and (3) firm size is less likely associated with response styles to social media for online reputation management. The results show that reply time and response styles of organizations to social media customers in the 2015 survey has no significant change compared to that of 2011. There appears to be a pervasive lack strategic framework as most firms in the study were found not to be adequately monitoring or leveraging social media communication for their reputation management.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.1
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• pp.59-69
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• 2019

The auditor, an important instrument of corporate governance, ensures the transparency and accountability of the firm to the stakeholders. The objective of this paper is to explore the impact of audit characteristics on firm performance. In this study, external audit quality (BIG4), frequencies of audit committee meetings, and audit committee size are used as the proxies of audit characteristics and firm performance is measured through ROA, profit margin and EPS. A total of 503 firm years are considered as sample size from the listed manufacturing firms of Dhaka Stock Exchange (DSE) during the period of 2013 to 2017 to find out the impact of audit characteristics on firm performance. In this study, multivariate regression analysis is conducted using the pooled OLS method. Moreover, time dummy and lag model of multivariate analysis are also analyzed as robust check. The multivariate regression results find that external audit quality (BIG4) and audit committee size are significantly positively associated with firm performance. This study also finds that there is a significant negative relationship between audit committee meeting and firm performance. This study recommends that the regulatory authority and audit committee should review the frequencies of audit committee meeting to make it more effective to ensure better firm performance.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.1
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• pp.281-288
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• 2019

This study examines the relationship between R&D intensity and disclosure. R&D activities are essential in bringing innovation to companies. However, R&D activities are naturally uncertain and increase information asymmetry. Thus, firms with high R&D activities are more likely to have the incentive to communicate the potential of R&D investment to the market through voluntary disclosure and, concurrently, resolve information asymmetry. Meanwhile, incentives to less voluntary disclosure exist because of the proprietary cost and the risk of competitiveness loss. Furthermore, the uncertainties inherent in R&D activities caused the possible decrease in the information accuracy. For the two opposing views, this study investigates the relationship between R&D intensity and disclosure frequency using the Regulation Fair Disclosure data in Korea. Moreover, the relationship between R&D intensity and usefulness of the information disclosed is also examined. Using firm sample listed in the 2011-2016 Korea Stock Market, results show that firms with high R&D intensity make disclosures more frequent. Subsequently, the analysis using forecast sample shows that management forecast error is higher in firms with high R&D intensity. This research contributes to the existing literature by presenting evidence that R&D intensity is a significant factor affecting manager's disclosure behavior and information usefulness.

• Journal of Korea Technical Association of The Pulp and Paper Industry
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• v.34 no.5
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• pp.63-69
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• 2002

A new concept of stock preparation for the increase of bending stiffness in paper and board was proposed. The "stiff" fibers, which were mechanically not treated or treated slightly to remove fiber curls, were combined with extensively refined fibers (ERF) to produce higher stiffness papers than those where the whole fibers were refined. The combination of "stiff" fibers and extensively refined fibers produced higher stiffness at the same tensile strength than the control furnish, in which all the fibers are refined together. In this concept, the fibers from recycled papers could be as much useful as the virgin fibers as long as they are stiff enough or they can produce highly bondable fiber fractions by extensive refining. Use of the concept in real paper mill needs considerations such as increase of refining energy, slower drainage, and added drying burden, but savings of wood fibers, utilization of more recycled fibers, and increase of physical properties may offset the negative concerns. The success of this concept implementation in mills, therefore, depends on the wood fiber market around the mills and the proper decision making for the papermakers about how to apply this concept. apply this concept.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.159-167
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• 2021

The objective of this study is to examine the effect of family ownership and family CEO on the dividend policy of family firms by using the demographic characteristics of the CEO as a moderator. Dividend policy is a decision taken by the firm in determining whether the profits earned by the firm will be distributed to shareholders in the form of dividends or will be reinvested in the company as retained earnings for future internal resources. Using samples from non-financial family firms listed on the Indonesian Stock Exchange in 2013-2017, 93 firms were selected based on adequate data. We also used logit regressions to provide robustness. The results show that family ownership and family CEO have a positive effect on the dividend payout ratio. This finding supports the family income hypothesis. Among CEO demographic characters, CEO age significantly strengthens the positive effect of family CEO on dividend payout ratio. While CEO tenure does not significantly strengthen the positive effect of family CEOs on dividend payout ratios. Meanwhile, leverage, ROA, and firm size significantly affect the dividend payout ratio, but firm age does not significantly affect the dividend payout ratio.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.10
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• pp.361-371
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• 2021

This research aims to analyze the effects of managerial overconfidence and corporate governance on investment decisions. Besides, it also tries to discover the effect of internal financing mediation between managerial overconfidence and corporate governance on investment decisions. This study employed panel data from 44 manufacturing companies from 2014 to 2019, out of a total of 117, thus the total observations are 264. The hypothesis was verified through structural equation modeling (Smart PLS 2). The study revealed as follows: 1) Managerial overconfidence has a positive and significant effect on internal financing, while corporate governance has a negative and significant effect on internal financing, 2) managerial overconfidence, internal financing, and corporate governance have a positive and significant effect on investment decisions, 3) internal financing partially mediated the effect of managerial overconfidence on investment decisions, However, internal financing does not mediate the effect of corporate governance on investment decisions. The findings in this study will help company managers implement good corporate governance to improve investment efficiency. In addition, managers can reduce the proportion of retained earnings and increase the proportion of dividend payout ratios, and increase the use of external sources of funds in making investments to minimize agency costs and manager's opportunistic behavior.

• Asian Journal of Business Environment
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• v.11 no.4
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• pp.31-38
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• 2021

Purpose: This paper uses the resource-dependency theory to present the case of the Pakistan sugar industry to highlight how the industry uses a strategic alliance to gain a powerful bargaining position over its critical dependencies. The case of the Pakistan sugar industry is well-known and it is common knowledge that the alliance or the cartel within it is responsible for frequent price hikes and sugar supply shortages in the country. Research design, data and methodology: We use a case study, qualitative document analysis design to trace how the alliance overcomes its various dependencies, and in doing so, how does it harm various stakeholder interests. Results: This paper finds that the sugar industry alliance maintains its bargaining power by manipulating sugar supply through horizontal alliances, political affiliations, underselling and under-reporting sugar stocks, purchasing sugarcane from the black market, and by gaining billions of rupees in export subsidies by hoarding stock and using its political connections. Conclusion: The paper concludes by providing a summary of the measures which the government has taken to curb this anticompetitive conduct; the most important of which is the removal of protectionist measures for sugar trade and allowing market forces to control the demand and supply of sugar in the local market.

• Asian Journal of Business Environment
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• v.11 no.4
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• pp.5-16
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• 2021

Purpose: This study aims to investigate the impact of auditor-client traffic convenience on accrual -based and real earnings management of the client firms. Research design, data and methodology: Using a sample of firms listed in Shanghai and Shenzhen Stock Exchanges over the period of 2007 to 2018, this paper empirically investigates the association between auditor-client traffic convenience and earnings management. We use three measures of auditor-client traffic convenience: railway traffic convenience, expressway traffic convenience, and air traffic convenience. The accrual-based earnings management is measured by abnormal accruals estimated by industry and year using the Modified Jones Model. Results: Findings indicate that traffic convenience is conducive to detecting and restraining positive accrual earnings management and real earnings management. After changing the measurement of independent variable and dependent variable, including potential omitted variables, the results are statistically unchanged. Further, the research shows that traffic convenience can not only improve audit quality, but also lead to higher fee premiums. Auditors didn't share with clients the cost reduction benefits caused by traffic convenience. Conclusions: Traffic convenience provides auditors with easy access to the client firms, alleviating the information asymmetry and improving corporate earnings quality. The findings have implications for regulators, audit practitioners and stakeholders.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.363-370
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• 2021

This study aims to revisit the issues and misconceptions about financial inclusion (FI) indices. For indices construction, this study uses two approaches: one approach following the methodology of Sarma (2008) which is based on UNDP methodology, while the other is the Dynamic Factor Model (DFM)-based index of Stock and Watson (2002) and Rehman et al. (2021). The data of 18 economies of Asia from 1997 till 2017 is used for indices construction and analysis. The authors constructed macro and micro-level financial inclusion indices based on the different types of financial inclusion indicators. Second, the authors have critically evaluated two different approaches, and the results show that Sarma (2008)-based index show financial inclusion's level, while DFM-based index reveal fluctuation in the current year's financial inclusion level due to the prior variations. For measuring the level of financial inclusion, the Sarma (2008) index is effective, while for forecasting the level of financial inclusion, the DFM approach is more appropriate. Furthermore, the micro and macro aspects of financial inclusion should be reflected in separate indices for better understanding and in-depth insights.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.129-139
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• 2021

The aim of this study is to provide insight into tax avoidance through planning and management, and its investment consequences in financially constrained and unconstrained firms, as well as to empirically examine the interrelationships between the variables studied. Data was extracted from the financial statement analysis of non-financial companies listed on the Pakistan stock exchange (PSX) published by the State Bank of Pakistan, covering ten major manufacturing sectors. KZ index and WW index are used to identify financially constrained and unconstrained firms. Tax avoidance is measured by using GETR and LETR. All the equations are estimated through panel data regression models using common, fixed, and random effects. The empirical investigation of the role of tax avoidance in all firms collectively and constrained and unconstrained firms separately showed that the tax avoidance behavior of these firms is translated into investments by these firms. The study will help policymakers in strategy formulation and implementation related to tax planning and investment decisions in constrained and unconstrained firms to overcome their financial constraints and to optimize their investment decisions for value maximization. This will substantially increase the investment in the country by providing growth opportunities and lowering the tax rates.