• The Journal of Industrial Distribution & Business
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• v.10 no.7
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• pp.7-16
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• 2019

Purpose - Economic globalization provides firms with a new channel to gain benefits from foreign countries. Therefore, using the real MNEs, this paper set China's firms as an example to explore the relationship between multinationality and performance. Research design, data, and methodology - Panel data from 2008 to 2017 was used and 390 multinational firms listed in China's A-share market was selected. Additionally, related econometric methods were employed to analyze the relationship between multinationality and performance in this study. The return on assets was treated as a dependent variable, and the sales of a firm, the firm age, the debt asset ratio of a firm, the ratio of foreign sales to total sales and the enterprise properties were treated as independent variables. All of these factors were used to conduct an empirical analysis. Results - The empirical findings in this study revealed that there is a linear relationship between multinationality and performance, as well as that non state-owned enterprises (non-SOEs) have a greater effect on the relationship between multinationality and performance than that of the state-owned enterprises (SOEs). Conclusions - On the basis of evidences this paper provided, China's government should take measures in the future to help China's firms when they fulfil international economic activities.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.835-842
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• 2020

The study aims to investigate the impact of debt on corporate profitability in the context of Vietnam. The paper investigates the impact of debt on corporate profitability in non-finance listed companies on the Vietnam stock market. The panel data of the research sample includes 118 non-financial listed companies on the Vietnam stock market for a period of nine years, from 2009 to 2017. The Generalized Method of Moments (GMM) is employed to address econometric issues and to improve the accuracy of the regression coefficients. In this research, corporate profitability is measured as the return of EBIT on total assets. The debt ratio is a ratio that indicates the proportion of a company's debt to its total assets. Firm sizes, tangible assets, growth rate, and taxes are control variables in the study. The empirical results show that debt has a statistically significant negative effect on corporate profitability. The result also shows this effect is stronger in a non-linear (concave) way, we show that the debt ratio has nonlinear effects on corporate profitability. From this, experimental evidence shows that the optimal debt ratio is 38.87%. This evidence provides a new insight to managers of the non-finance companies on how to improve the firm's profitability with debt.

• Journal of Korean Society of Rural Planning
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• v.26 no.3
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• pp.25-38
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• 2020

The purpose of this study is constructing a regional-level crop acreage choice model incorporating the impacts of producer risk aversion, and applying the constructed model to the Korean policy that promotes rice paddy conversion into non-rice crop fields. The study adopts the approach of Paris (2018) which estimates the absolute risk aversion coefficient inside of a positive mathematical programming model. A panel data set of 143 cities/counties is used for the empirical study where agricultural land in each region is allocated to 8 crops. Our estimated absolute risk aversion coefficients are smaller than those of Paris (2018), but are a little bit larger than those of the existing Korea studies based on survey or econometric methods. We found that there are close relationships among the estimated risk aversion, regional characteristics, and farming patterns. We also found that incorporating the estimated risk attitudes results in substantial differences in the impacts of the rice paddy conversion policy.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.10
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• pp.249-257
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• 2021

Industrial agglomeration policy is a strategy that is expected to accelerate economic growth to transform an impoverished region into a prosperous one. However, industrial agglomeration also has the potential to exacerbate development inequality due to the concentration of economic development activities in certain areas. Therefore, this study aims to investigate what strategies are best to minimize the adverse effects of industrial agglomeration. This study uses econometric analysis with panel data covering 38 districts/cities in East Java during the 2011-2019 period. The results showed that the combination of industrial agglomeration policies coupled with accelerated sectoral growth, hard infrastructure development, and soft infrastructure provided the best policy outcome, improving regional inequality and accelerating economic growth in East Java. Based on the analysis, we find that East Java's economic growth characteristics are convergent but relatively long. Therefore, the East Java economic development policy during 2010-2019 should be reviewed due to the relatively long convergence period. Furthermore, this study also found that industrial agglomeration slows down the convergence and economic growth of East Java. In the future, the deployment of Industrial Development Centers (PPI) outside the existing eight districts/cities is needed to accelerate the spread of economic activity in East Java.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.769-775
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• 2021

The objective of this research was to analyze the factors influencing the farm-gate shrimp prices in Thailand using monthly time series from January 2001 to December 2019. The econometric methodology was employed to satisfy the purpose, consisting of the cointegration test for revealing the long-run relationship and equilibrium elasticity between the variables as well as the error correction model for detecting speed adjustment to shock responses. The empirical results revealed that (1) the export shrimp prices, shrimp production in the country, and shrimp export volume indicated a long-run relationship running to the farm-gate shrimp prices in Thailand with the size of equilibrium elasticity equal to 1.083%, -0.256%, and 0.123, respectively, and (2) the farm-gate shrimp prices in Thailand would adjust to the equilibrium line with a speed equal to 20.147% if there was any kind of incident or shock which caused the relationship to deviate from the equilibrium point. There was no relationship in terms of global shrimp prices and the exchange rate for farm-gate shrimp prices in Thailand. The recommendations should emphasize the varieties of shrimp products for export to other countries beyond the main trading markets nowadays to reduce risks and fluctuations in the export prices of shrimp products.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.373-385
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• 2021

The objective of the study is to empirically investigate the impact of bank capital on the lending behavior of Vietnamese commercial banks from 2007 to 2019. Lending behavior is captured by two dimensions, including the quantity (loan growth) and quality (credit risk) of loans. Instead of investigating loan growth and credit risk separately, we combine these two aspects in our study and further develop the interaction term between capital buffers and credit risk to capture the asymmetric impact. We apply the dynamic model (regressed by the generalized method of moments) and the static models (regressed using the fixed effects, random effects, and the pooled regression approach) to perform regressions. The results show that banks with higher capital ratios tend to expand lending more, while the risk of credit portfolios is controlled at lower levels at these banks. Further analysis reveals that credit risk mitigates some aspects of the relationship between bank capital and loan expansion. The patterns remain robust across alternative measures and econometric techniques. The study provides insightful policy implications for bank managers and regulators in the process of upgrading capital resources to ensure the safety and soundness of the banking industry in an emerging country.

• Journal of Distribution Science
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• v.20 no.12
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• pp.13-22
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• 2022

Purpose: The paper contributes to the existing literature on Vietnamese corporate governance and firm performance with a focus on listed family firms and the use of a more suitable econometric framework to analyze firm performance. The study investigates how family firm performance is affected by corporate governance under the standpoint of stewardship theory in Vietnam. Research design, data and methodology: With the use of different measures for firm performance (Tobin's Q, ROA, and ROE), regression models were estimated using Generalized Least Square (GLS) method on a panel data of a total of 113 listed companies during the five-year period from 2015 to 2019. Results: We found that family ownership as the main characteristic of the stewardship theory affects family firms positively. In addition, several other characteristics in corporate governance as board composition (board independence, board audits, and board committees), CEO (age and tenure) and firm characteristics (size, age, expansion, and annual sales) showed significant impacts on firm performance. Our findings also suggest that family firm performance can be either positively or negatively affected based on the characteristics of corporate governance. The findings can help companies evaluate the significance of corporate governance through deciding board structure and the selection of CEOs to match family firm characteristics. It also gives insights for investors, rating agencies, and policymakers for relevant purposes.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.69-77
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• 2021

The objective of this research is to explore the inconclusive theoretical and empirical association between institutional ownership and firm performance in the context of emerging Pakistani economy. The data set consists of all the non-financial firms listed on the Pakistan Stock Exchange (PSX). Annual data set covers the period ranging from 2010 to 2015. However, the econometric analysis does not include those firms with incomplete data. Thus the final data set comprised of an unbalanced panel of sample of 276 firms with 1231 firms years observations. Data related to the institutional ownership and other variables taken for the study were extracted through the annual financial reports of the firms. The research used Tobin's Q as a proxy of market measure of firm performance and tested the endogenous relation with institutional ownership through OLS and 2SLS approach. The study also applied Durbin-Wu-Hausman test to determine the endogeneity before analyzing the 2SLS model. The Durbin-Wu-Hausman Test (DWH) conform the endogenous link between institutional ownership and performance and vice versa. The results derived from 2SLS also confirm a highly significant relationship and two way direct proportional relationships between the institutional investment and corporate performance in the studied companies.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.403-411
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• 2021

This study discusses the influence of economic factors on the clothing exports from China and 15 South and Southeast Asian countries to the United States. A basic gravity trade model with three predictors, including the GDP value produced by exporting and importing countries and their geographical distance was established to explain the bilateral trade patterns. The conventional approach of multiple regression and the novel approach of Artificial Neural Networks (ANNs) were developed based on the value of clothing exports from 2012 to 2018 and applied to the trade pattern prediction of 2019. The results showed that ANNs can achieve a more accurate prediction in bilateral trade patterns than the commonly-used econometric analysis of the basic gravity trade model. Future studies can examine the predictive power of ANNs on an extended gravity model of trade that includes explanatory variables in social and environmental areas, such as policy, initiative, agreement, and infrastructure for trade facilitation, which are crucial for policymaking and managerial consideration. More research should be conducted for the examination of the balance between developing countries' economic growth and their social and environmental sustainability and for the application of more advanced machine-learning algorithms of global trade flow examination.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.6
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• pp.325-329
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• 2022

Enterprises play an increasingly important role in economic development in each country. Effective businesses will make the economies of countries also become efficient and develop. Enterprises play a role in creating jobs, improving labor productivity, and connecting foreign trade and import-export activities. The study aims to evaluate the factors affecting the profitability of small and medium enterprises in Hanoi by using a study of 210 enterprises in the area as well as advanced econometric regression analysis. The research results show that firm size and human capital have no impact on business performance. However, older firms are likely to have higher firm performance, and conversely, younger firms have lower firm performance. The research also confirms that the growth of businesses often has higher firm performance than low-growth ones. Furthermore, a firm with greater value is also more likely to stimulate business performance than lower its value, and this effect is the largest among the analyzed factors. Finally, the study also has some recommendations for the Vietnamese government to develop small and medium enterprises. Specifically, the government needs to create an open mechanism for the start-up movement and create a favorable financial mechanism for small and medium-sized enterprises to be able to access.