• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.283-291
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• 2020

Although the corporate governance plays a crucial role in protecting shareholder wealth, the effect of corporate governance on cost of debt is unclear. On one hand, the corporate governance reduces asymmetric information between corporate and external investor including debtholder leading to a decreasing in cost of debt financing. On the other hand, bondholders require higher rate of return for an improvement corporate governance. Hence, this study aims to investigate the relationship between the mechanism to improve corporate governance namely board effectiveness and the cost of debt in an emerging market. As we aim to explore the relationship between cost of debt and board effectiveness, we select corporation in Thailand as our sample because the businesses in Thailand are major debt-financing. Hence, our sample include listed firm in Stock Exchange of Thailand between 2007 and 2016. Our main findings support the sub-optimal investment hypothesis in that improved board effectiveness is associated with higher cost of borrowing. In addition, we find that the number of board member-board size, the number of board meeting, and the percentage of non-executive on audit committee play are positively associated with the cost of debt financing. Furthermore, we perform two-stage-least square (2SLS) to ensure that our results are far from endogeneity issue.

• Journal of Distribution Science
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• v.16 no.10
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• pp.77-82
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• 2018

Purpose - This paper examines the relationship between corporate social responsibility and financial reporting quality. Corporate social responsibility is a way for firms to take responsibility for the social and environmental impacts of their business operations. Corporate social responsibility is a broad concept that can take various forms depending on the firm and industry. Through corporate social responsibility programs, firms can benefit society. At the same time, firms improve their reputations by increasing engagement in corporate social responsibility activities. However, corporate social responsibility activities are not directly related to profitability, especially for distribution firms. Research design, data, and methodology - 229 distribution & service firm-years between 2011 and 2016 are used for the main analysis. In Korea, Korean Economic Justice Institute evaluates the ethical performance of Korean firms, and the institute annually discloses the scores of top firms. This study uses the KEJI Index scores to measure firm-level corporate social responsibility activities. Discretionary accruals are used as a proxy for financial reporting quality. Discretionary accruals can be used opportunistically, and thus distort the information in earnings. We extract financial data from the KIS Value database. Results - We find that distribution & service firms' engagement in corporate social responsibilities is positively related to their financial reporting quality. First, there is a negative correlation between implementation of corporate social responsibility activities and discretionary accruals. In addition, we find that the coefficient of CSR is significantly negative, supporting our prediction. The result is significant at the 1% level. Conclusions - We examine the relationship between corporate social responsibility activities of distribution firms and their financial reporting quality while most prior studies examine the engagement in corporate social responsibility activities of manufacturing firms. The results of this study show that distribution & service firms engaging in corporate social responsibility activities are likely to maintain high-quality financial reporting.

• The Journal of Asian Finance, Economics and Business
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• v.3 no.3
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• pp.5-15
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• 2016

This study examines whether Korean rating agencies such as Korea Investors Service (KIS), National Information & Credit Evaluation (NICE), and Korea Ratings Corporation (KR), incorporate corporate governance into their corporate bond ratings in Korea. We find that the Korean rating agencies assign higher ratings to the bonds issued by Chaebol (Korean business group) affiliated firms. Our results also indicate that those rating agencies give higher ratings to the bonds with greater foreign investor share ownership. Moreover, if the rating agencies value corporate governance, higher rated firms should issue bonds at lower yield to maturity. We discover that Chaebol affiliation is counted favorably by the rating agencies. We find that investors are willing to pay lower risk premium for bonds with higher institutional ownership, but higher risk premium to bonds with greater equity ownership in the form of depository receipts. Therefore, even if the rating agencies and investors in Korea consider corporate governance (Chaebol affiliation and ownership structure) an important determinant in bond ratings and the yields to maturity, they have opposite views on institutional ownership and share ownership in the form of depository receipts.

• 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.

• East Asian Journal of Business Economics (EAJBE)
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• v.10 no.2
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• pp.81-91
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• 2022

Purpose - This study explores the role played by the government in spreading corporate green IT. Indeed, a lot of evidence is emerging that governments acting independently are not in a position of attaining the far end economic and social changes need for the realization of green IT. As much as matters about green IT was initiated by many governments. Research design, Data, and methodology - This study selected the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) as a research design. The PRISMA is recognized for its standard evidence reporting system and can provide adequate systematic review among previous studies. Result - A lot of consensus leads to the acquisition of the value of corporate green IT concerning the effectiveness of the collaboration. This study could obtain six suggestions from the systematic review, such as 'Rebalancing Government and Public Duties', 'Direct Regulation', 'Marketing Tools and Fiscal or Economic Measures', 'VNRP', 'Education for Decision Making', 'Latest Policy Trends within the G8 Nations'. Conclusion - The most challenging aspect when it comes to ensuring corporate green IT is the separation of economic growth from the perspectives regarding life qualities. According to the study (Falcone, 2020), this needs a second policy-oriented wedge concerning re-socialization with the desire of encouraging the development of the culture associated with the corporate green IT.

• East Asian Journal of Business Economics (EAJBE)
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• v.10 no.2
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• pp.93-104
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• 2022

Purpose - Organizational individuals can gain profit from any trials and errors concerning the knowledge others have been able to accumulate. The culture also states the organizational behaviors by identifying the principal aims, and the way members handle personal relationships. This study aims that how corporate cultures can be connected with particular occupations. Research design, Data, and methodology - For the systematic review in prior literature dataset, the present author used the PRISMA which is a set of items that are evidence-based and utilized in reporting systematic reviews. It includes the reporting of meta-analyses. Result - The present author figured out that corporate culture is one of the most crucial factors that workers consider in deciding whether or not they want to be employed in an organization. Having an excellent corporate culture sets the company apart from the competition and increases the company's status to new positions of recruiting and business success Conclusion - The current research concluded that possessing an excellent corporate culture positions the company apart from the competition but boosts the company to new recruiting and business success levels. The two traits of an excellent corporate culture include the culture allowing every individual in the organization to succeed, and the culture works for every individual involved.

• Asian Journal of Business Environment
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• v.9 no.1
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• pp.29-31
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• 2019

Purpose - The aim of this paper is to examine the newly formed a partnership of Amazon, Berkshire Hathaway (Berkshire) and JPMorgan through the lens of strategic alliance, corporate philanthropy, and corporate social responsibility. Research design, data, and methodology - This is an analytical case study that examines the existing scholarly articles in strategic alliances, corporate philanthropy, and corporate social responsibility to explain the recent strategic alliance. Results - There is a clear limitation in explaining this type of unconventional strategic alliance with exiting definitions and concepts because there is no existing study or case available today. Forming a strategic business alliance to create and operate healthcare for their domestic employees could be viewed as a social innovation that resulted from an effort to resolve a social problem, the ineffective healthcare system in the U.S., rather than focusing on business benefits and profits. Conclusions - The success or failure of this type of business alliance would certainly affect the current healthcare system of the United States and global businesses and healthcare industries in the future. However, just entering or tapping into uncharted territory by these three companies to deal with a social issue is significant enough to merit further exploration and analysis for scholars and practitioners.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.341-350
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• 2021

This study tested the effect of the board of directors' (BOD) characteristics on the corporate performance of the Jordanian industrial and service companies listed on the Amman Stock Exchange (ASE) during the period 2015-2019. The characteristics of the BOD were measured through the following variables: MO = managerial ownership; CEODU = CEO duality; BI = board independence; GD = gender diversity; ND = nationality diversity; AE = advanced education; BM = board meetings; BSIZ = board size; CSIZ = corporate size; CA = corporate age. The corporate performance was measured by return on assets (ROA) and return on equity (ROE). The corporate size and corporate age were used as control variables. The study sample consisted of 85 industrial and service companies with 425 observations to identify the nature of the effect of the BOD characteristics on performance. This study applied time-series data (panel data), and the multiple linear regression method was used to achieve study objectives. Results showed a positive effect of the study variables on performance, while the corporate age and the education level (BOD members) have a negative effect on performance.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.8
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• pp.135-144
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• 2022

Organizational culture has been recognized as a determinant of corporate Effectiveness. Cultural components could affect corporate Effectiveness to different extents. However, it seems that none of the previous studies have evaluated and compared these influential extents of cultural components. The current research applies analytic hierarchy processes to assess and rate the significance extents that, cultural components play in resulting in corporate Effectiveness. Then, the current work utilizes regression analyses to re-evaluate the significance extents for the robustness of analytic hierarchy processes. The findings indicate that clan culture is the most vital component in explaining corporate Effectiveness. In contrast, adhocracy culture is the least important component in affecting corporate Effectiveness. Market culture is a cultural component that is ranked the second in determining corporate Effectiveness, and next is hierarchy culture which is the third. The findings are in support of the positive influences of clan, market, and adhocracy cultures on corporate Effectiveness; whereas it found the negative impact of hierarchy culture on corporate Effectiveness.

• International Journal of Advanced Culture Technology
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• v.11 no.2
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• pp.118-124
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• 2023

With the acceleration of globalization and economic integration, multinational enterprises are becoming more and more important in the international market, and Sinar Mas Group, one of the largest integrated companies in Indonesia, has become one of the most influential overseas Chinese companies in Indonesia due to its outstanding performance and leadership position. This study aims to analyze the success factors of Sinar Mas Group and reveal its competitive advantages in the global market. Founded in 1962, Sinar Mas Group is an integrated multinational company headquartered in Indonesia, with significant presence in various fields such as paper, palm oil, real estate, finance and energy, with operations in Indonesia and many other countries and regions around the world. This study investigates the aspects of corporate history, corporate status, and corporate competitiveness. In addition, this study analyzes the reasons for Sinar Mas Group's success using the SWOT model. By comprehensively analyzing these key factors, this paper provides readers with an insight into the vitality and remarkable achievements of this Indonesian corporate giant in the global market. This study will help Korea enter Indonesia and contribute to Indonesian business research.