An important macro-economic objective of a country is poverty reduction. This objective is shared by its development partners. Many policies have been introduced at the international and national levels to tackle poverty, especially hard core and abject poverty. Each policy is theory- driven. These theories that shape and inform the policies are developed by practitioners whom in most cases have not directly experienced poverty themselves. Thus, it is no surprise these policies fail to solve or minimise the problems via the resultant intervention. There is therefore a mismatch as it were, that requires a reset, or at the very least, adapting as opposed to adopting the theories and their prognosis therein. Based on the Feagin scale, there are three main categories related to perceptions of poverty: Individual, Structural, and Fatalistic. The objectives of the paper are to examine the perceptions of causes of poverty among households in Malawi, and the factors influencing those perceptions. A special focus is on rural and urban households to see if there exists a significant difference in their perceptions. The results show a variation in perceptions, with household income, location of the household and gender of the head of household proving to be significant predictors. Additionally, by location, people in the rural areas allude to the individualistic causes of poverty. Thus, approaches to tackle poverty can be effective if these perceptions are taken into account.
The objective of this study is to identify factors affecting the attainment of ideal retirement income among retirees in Selangor, Malaysia. This study adopted Maslow's hierarchy of human needs to show the relationship between attainment of ideal retirement income and health level, assets owned, financial satisfaction, financial knowledge and will preparation. This was achieved through a survey and stratified sampling of respondents aged 50 years or in Selangor. Results from multiple regression analysis revealed that health level, assets owned, financial satisfaction, financial knowledge and will preparation are positively related to the attainment of ideal retirement income. The findings confirm those of previous studies and offers useful insight for future studies on this topic.
Assets, retirement income, financial knowledge, financial satisfaction, health, Maslow's hierarchy of human needs
This study estimates Technical efficiency (TE) and Total Factor Productivity (TFP) through a stochastic frontier analysis and decomposes growth into technological progress, technical efficiency change, and scale for the Indonesian manufacturing sector. Global economic slowdown characterises the period of study (2007-2013), as well as peak and fall of commodity prices, massive global integration and development of a Master plan for Indonesia (MP3EI). This study looks at patterns of productivity as important sources of growth. Results are aggregated based on technological intensity, firm size, capital/output ratio, labour skills, and location. The findings show that companies perform differently as those factors vary, and while larger companies are more efficient, smaller ones have higher rates of TFP growth, mainly through technological progress and scale. The TFP had moved from initial negative levels to positive ones. Firms with low tech, low capital/output ratio, and more skilful workers have the highest TFP.
Indonesia, manufacturing industry, technical change, total factor productivity, technical efficiency
Gross Domestic Product (GDP) is a key indicator of a country's economic growth and its well-being. Technological innovation on the other hand is an important driver of growth for productivity and revenue. This paper examines the relationship between GDP per capita and government spending on technology innovation in Malaysia. on in Malaysia. It employs Augmented Dickey-Fuller (ADF) test, Vector Autoregression (VAR) model and variance decomposition to measure the estimation models. The results point to a strong positive relationship between GDP per capita and the expenditure on technology innovation. Furthermore, GDP has a large impact on Malaysia's government spending on technology innovation.
This paper is based on qualitative research conducted between 2013 and 2015 in Ho Chi Minh City (HCMC), Vietnam, to explore its people's attitudes and behaviours toward healthy eating and food safety, the discrepancy between attitudes and behaviours, and the factors affecting them. A total of 69 respondents were interviewed for this purpose. Results showed that i) healthy eating and food safety have become a more pressing concern in HCMC, which was welcomed by both food producers and business people; ii) there is a considerable gap between people's cognition, attitudes, and behaviour; and iii) people's financial capacity, their knowledge, and especially mass media and food quality control by the authorities have a significant impact on raising awareness of healthy eating and food safety, positively altering food choices and eating behaviours. This study is important as it reveals people's understanding of healthy eating and food safety in Vietnam, and which can serve as a basis for further research.
Attitudes, behaviours, food safety, healthy eating, Ho Chi Minh City
The objectives of this study are first, to understand community attitude in food waste recycling as a business opportunity and second, to gauge their expectations of the local authority. In order to examine the above, a total of 171 respondents residing in Kuala Terengganu for at least two years were interviewed for this study. The results indicated that the community showed a moderate level of interest in engaging in food waste business opportunity and had high expectations of the local authority whereby they believed that the latter should aggressively promote recycling food waste products through the media, establish early education of food waste recycling in schools, enforce law to fight food waste problem and lastly, provide financial aid and courses for interested parties to get involved in the business of converting waste to money.
Supporters of Efficient Market Hypothesis argued that investors are not able to make abnormal returns when the market is in an efficient condition. In contrast Overreaction Hypothesis theory acknowledges the presence of anomalies in the financial markets and indicated that investors can generate abnormal returns through the establishment of trading strategy like Dogs of the DoW (DoD). Thus, this paper examines Dogs of the Dow (DoD) trading strategy to generate abnormal returns in stock markets in developing and developed Asian countries. The trading strategy is based on dividend anomaly and was tested in three developed markets in Asia (Singapore, South Korea and Hong Kong) and in three developing markets (Malaysia, Thailand and Indonesia). The DoD portfolio comprises 10 shares with the highest dividend yield from the identified stock market indices between 2000 and 2014. The calculated returns of DoD portfolio were benchmarked against the market returns of the respective countries studied. Results show that on average the DoD strategy statistically and significantly outperforms the average market returns for both Asian developed and developing markets. Findings appear to contradict the validity of Efficient Market Hypothesis (EMH) and support the Overreaction Hypothesis.
Abnormal return, Asian developed markets, efficient market hypothesis, Dogs of the Dow strategy, overreaction hypothesis, stock markets
This paper examines the relationship between bidâ€“ask spread approach proposed by Corwin and Schultz to measure illiquidity and its impact on excess stock returns in the Indonesian stock exchange using extended Fama and French models. The sample of the study is daily stock prices in the KOMPAS 100 Index covering the first quarter of 2013 up to second quarter 2016. Data regression analysis suggests that a stock's illiquidity is not a price factor in the Indonesian market even after controlling three factors from Fama and French. Concentrated ownership of a firm by the founder and his or her family might lead to thin liquidity in the market because owners tend to hold their stocks; thus, there is only limited stocks for transactions in the market. As expected, market risk and size premium have a positive effect on excess stock returns; however, considering other factors based on Fama and French, the value premium factor is not significantly linked to capital asset pricing. Lagged return is a variable and an important factor for consideration before making an investment. Additionally, a positive relationship between inflation and excess returns implies that the Indonesian capital market has provided a hedge against inflation.
Corwin and Schultz model; excess returns; illiquidity; liquidity, three factors model
This study examines the evidence for commonality in liquidity of the American Depository Receipts (ADR) in the context of Asia Pacific countries which are classified into developed markets (Australia, Hong Kong, Japan, New Zealand and Singapore) and emerging markets (China, India, Indonesia, South Korea, Malaysia, Philippines, Thailand and Taiwan). In order to understand the impact of cross listing towards co-movement in liquidity of stocks across border, liquidity features of each market are first evaluated. The ADRs from developed markets tend to be more liquid. In terms of commonality, this study shows (i) commonality in liquidity is evident at the firm level in which the emerging market displayed more co-movement in contrast with developed market; (ii) at the country level, commonality only indicated by weak sign in which the developed market tends to be higher than emerging market; (iii) at the regional level, the commonality of the ADR is also evident in which there is an influence of the ADRs from developed market on the emerging market, and (iv) commonality in liquidity of ADR still holds during the crisis period (based on robustness test).
American Depository Receipts (ADR), liquidity, commonality in liquidity, cross-listing
According to the theory of capital structure, excessive debt financing can result in default risk or bankruptcy, and liquidation. This study is an attempt to identify the impact of debt ratio on the performance of State-Owned Enterprises (SOEs). In order to achieve this, it surveyed 140 Indonesian SOEs and categorised them as healthy, less healthy and unhealthy based on their Return on Asset (ROA), Debt-to-asset (DA), Asset-to-Utility (AU) and Current Asset ratio (CR). With regards to specific financial indicators that can be utilised to differentiate the company based on their categorisation, ANOVA and discriminant analysis were employed. The results show that healthy companies (67%) tend to use debt financing more conservatively than the less healthy (22%) and unhealthy ones (11%). Additionally, less healthy companies were considerably more aggressive in utilising debt financing.
ANOVA, capital structure, default risk, discriminant analysis, state owned enterprises
The purpose of this study was to first analyse the effect of agency costs and investment on dividend policy of state-owned and non-state-owned companies and second, to examine the effect of agency costs, dividend policy and investment on the capital structure of these companies. A total of 40 companies divided equally between state-owned and 20 non state-owned companies, were surveyed The Partial Least Square was used to test the hypotheses. Results showed agency cost had an effect on dividend policy of non-state-owned companies. It did not have any effect on the capital structure of both types of companies. In terms of investment, agency cost did have an effect on the capital structure of both types of companies.
Agency costs, capital structure, dividend policy, investment
This study examines the effect of growth of public listed banks in Asia Pacific and their credit risks during 2005-2015. Using random effect estimation, evidence shows the effect of loan growth on credit increase in low middle- income countries during pre- and post-crises. This finding implies the possibility of moral hazard hypothesis in the banking sector. Furthermore, bank inefficiency contributes to the rise in credit risk, except in low middle-income countries. This supports bad management hypothesis, where the bank's inability to reduce their inefficiency worsens credit risk. There is significant impact of loan loss provision and exchange rate on increases in credit risk. In addition, credit risk is also affected significantly by gross domestic product (GDP) in high-income and high middle-income countries. It is recommended the government improves its economic performance to reduce non-performing loans (NPL). These results highlight the importance of a study risk management policy and an effective cost management system to evaluate banking performance.
Asia Pacific Banks, credit risk, GDP, inefficiency, loan growth, NPL
This paper develops a research model based on the feedback of individual stock market investors in Bangladesh regarding Environmental, Social and Governance (ESG) issues. By applying Theory of Planned Behaviour (TPB) and the positivistic paradigm, this study contributes to the literature on ESG adapting the ESG dimensions from the United Nations Global Compact (UNGC) and Thomson Reuters Corporate Responsibility Index (TRCRI). Preliminary findings from Structural Equation Modelling (SEM) analysis indicates that ESG issues influence investment decisions, while governance issues provide the most remarkable influence on respondents' investment decisions, followed by social and environmental issues. The study has important theoretical contributions and vast practical implications for regulators, business organisations, and most importantly, for stock market investors from developing countries. This study indicates investors' preference for ESG and it may proceed towards the formulation of rules and regulations to improve ESG performance of companies, ESG reporting, and the ultimate introduction of ESG index in Bangladesh, which can ensure stable stock markets as well as overall sustainable growth of the country.
Bangladesh, Environmental, Social and Governance (ESG), investment decision, Theory of Planned Behaviour (TPB)
The trade-off between economic growth and environmental quality has long been debated. The aim of this study was to find out if the hypothesis of the Environmental Kuznets Curve (EKC) in five Southeast Asian countries - Indonesia, Malaysia, the Philippines, Singapore, and Thailand â€“ is supported. This study analysed the effect of GDP per-capita and the ratio of trade openness on CO2 emissions. Using annual data from 1975 to 2014, this study employed the Error Correction Model (ECM) to test the EKC hypothesis for each country and applied the fixed effect panel data model to test the EKC hypothesis for all countries. The results showed that in the long run, the inverted U of the EKC hypothesis was supported in Singapore, without any turning point in Indonesia and in the Philippines, but no evidence was found for Malaysia and Thailand. Except for Singapore, trade liberalisation had positive effect on CO2 emissions. The results of panel data analysis indicated that, in general, the inverted U of the EKC hypothesis was supported in Southeast Asian countries, while trade liberalisation positively affected the increase of CO2 emissions.
Conservation is very important for Islamic enterprises in their effort to protect the environment. This research examines the effect of conservation on the environmental performance of Indonesian Islamic enterprises from the perspective of legitimacy theory. The relationship between conservation and environmental performance examined and tested using Partial Least Square-Structural Equation Model (PLS-SEM). The results of the study showed positive influence of conservation on environmental performance at Islamic enterprises to guarantee the quality of human life. It was recommended Institute of Indonesia Chartered Accountants (IAI) publish the Environmental Accounting Standards.
Management control systems (MCS) is a set of formal and informal systems used to help management to direct the company toward its goals. In particular, this study applied Simon's Levers of control (beliefs systems, boundary systems, interactive control systems and diagnostic control systems) to reveal the role of MCS in generating motivation; in clear market orientation; in facilitating organisational learning; and in increasing firm performance. This study aims to examine the effect of MCS on motivation, market orientation, organisational learning, and firm performance. The population in this study was all 32 Conventional Rural Bank (in Indonesia, BPR) in Riau Province, - Indonesia. Data was collected through questionnaires which were distributed to 116 respondents consisting of the top- and middle- management of BPRs. Data of this study was analysed by using WarpPLS 5.0. The results showed that management control system have an influence on motivation, market orientation and organisational learning. Further analysis found that motivation, market orientation and organisational learning mediate the relationship between MCS and firm performance.
Firm performance, management control systems (MCS), motivations, market orientation, organisation learning, partial least squared (PLS), rural bank
The RMB's exchange rate plays a very important role in China's economic development, more so as the country relies heavily on foreign trade. As RMB's exchange rate regime changes from a fixed exchange rate regime to a completely free floating one, China's plan to open capital accounts is in the pipeline. Evidence point to a relationship between RMB's fluctuation and capital flows. This paper uses vector auto-regression (VAR) model to evaluate the relationship between RMB's fluctuation and capital flows. Combined with the actual situation in China, this study introduces the exchange rate expectations (NDF), Gross Domestic Product (GDP) growth, and interest rate factors into the model. In the past two years, RMB's rate regime reform has moved fast, and the benchmark interest rate and repo-bond's rate are not reflective of the market's true rate. Therefore, the currency market's rate gap between China and the USA is used in the VAR model as rate variables. The results show that the rate variable has a high degree of influence on both exchange rate and capital flow. RMB exchange rate's fluctuation has an influence on capital flow, however, it is not considered significant, especially in relation to the spot exchange rate. This phenomenon is largely due to the intervention of the Central Bank of China in the RMB exchange rate. Under China's special conditions, the spot exchange rate's fluctuation is the government's goal. In this case, the Central Bank's intervention is efficient, but the costs involved are still increasing as the exchange rate regime reform moves forward.
Capital flows, Central Bank of China, exchange rate, fluctuation, GDP growth, non-delivery forward, RMB, VAR
This research aims to examine the effect of tax aggressiveness and independent boards on debt policy as well as the effect of independent boards as a moderating variable on the effect of tax aggressiveness on debt policy. The sample of this research is 632 non-financial firms listed on the Indonesian Stock Exchange between 2010 and 2015. The result of this research shows that tax aggressiveness has no effect on debt policy. It also shows that tax implications do not have an influence on the financing decisions of the company. Independent boards however have a positive effect on debt policy. This means that control of an independent board will increase if the company has high levels of debt. An independent board does not moderate the effect of tax aggressiveness on debt policy. When the companies requested approval for financing, the board did not consider the tax implications. Therefore, it can be concluded that an independent board has no impact on the decision-making process of company financing, particularly relating to tax aggressiveness. Seven controlled variables were used in this research; two of them have a positive effect on debt policy, one showed a negative effect while the rest have no effect on debt policy.
Company financing , debt policy, independent board, Indonesian stock exchange, tax aggressiveness
On 1st April 2017 was the second year Goods and Services Tax (GST) in Malaysia was implemented. Though Royal Malaysian Customs Department (RMCD) has recorded good tax collection, the signs of non-compliance have increased. Using the Responsive Regulation Theory, this study investigates audit probability and tax knowledge determination on GST compliance among businesses in Malaysia. In order to do this, a survey was conducted from April 2016 until the end of August 2016 and the Respondents were business operators registered with RMCD, under the GST System. The results show that both audit probability and tax knowledge contribute significantly to the compliance level among businesses. These findings are important for tax regulators (RMCD specifically) in promoting tax knowledge through continuous programmes and workshops, as GST is still at an early stage of implementation.
Audit probability, Goods and Services Tax, Goods and Services Tax compliance, moderating effect, tax knowledge
The purposes of this study are first, to analyse the influence of corporate governance structure and ownership structure on earnings quality and second, to examine the role of institutional ownership on the causal relationship between managerial ownership and market outcomes. The sample of the study was 242 companies from 430 companies listed on the Indonesia Stock Exchange (IDX) using purposive sampling technique. Data analysis technique used moderating variables regression with institutional ownership. The results showed board composition of directors and managerial ownership significantly affected market outcomes. The number of audit committees did not affect significantly market outcomes while institutional ownership did not affect significantly the profit but as a moderating variable, institutional ownership significantly improved the effects of managerial ownership on earnings quality. Accounting-based profit quality is reflected by the solid profit persistence and predictability.
This paper aims to examine the effect of political connection and board of commissioners (BOC) effectiveness on the performance of conglomerates. The sample of this research is all 66 conglomerates listed on Indonesia Stock Exchange from 2006 to 2014. Regression panel data with General Least Square was used for analysis. It was found that the effectiveness of the BOC as measured by independence, activity, the number of commissioners and competency have a different effect on the conglomerate's performance. Findings show that independence does not affect market and accounting performance, activities of the board of commissioners have a negative effect on the market performance and accounting performance, the number of commissioners has positive effect on the market performance and accounting performance, whereas education and experience of commissioner have a positive effect on market and accounting performance. However, the results of the board of commissioners' effectiveness on politically connected conglomerates show they have a positive and significant effect on market performance and accounting performance. The presence of independent board of commissioners and their activities in the conglomerate is not so effective, but the presence of commissioners, especially ones who are officials (both active and inactive) and their activities in the conglomerate are very effective and have a positive impact on the conglomerates' performance both in short and long term. Conglomerates that ignore good corporate governance practices are heavily monitored by their BOC and serves as a means of political rent-seeking.
Board of commissioners' effectiveness, conglomerates' performance, political connection
The role of board of commissioner in choosing an auditor has increased significantly as a result of 2008 global financial crisis of 2008. This paper examines whether the effectiveness of the BOC (BOC) affects the choice of an auditor. Past research related to the internal mechanisms of Good Corporate Governance (GCG) used the number of commissioners, the proportion of independent commissioners and the number of board meetings as indicators. However, this paper measures the effectiveness of board of commissioners (BOC) by conducting content analysis technique based on the level of independence of the commissioners, board activity, and the number of members, expertise and competence. A sample of 218 companies listed on the Indonesia Stock Exchange between 2013 and 2014 were selected. In this study, descriptive statistics and linear regression models were used for the purpose of revealing the significance of the variables. The results show that companies listed on the Indonesia Stock Exchange have an effective BOC in accordance with related administrative regulations. In addition, the effectiveness of the BOC has a positive effect on the choice of auditor.
Auditor, Board of Commissioners, effective, good corporate governance, Indonesia
This study examined the influence of gender diversity among company boards of directors and managerial ownership on corporate risk-taking. The sample was manufacturing companies listed on the Indonesian Stock Exchange from 2010 to 2013 selected using the purposive sampling method. Data was examined using multiple regression methods. The results showed that gender diversity on a board of directors (BOD) and managerial ownership have no significant effect on corporate risk-taking. This is likely due to the relatively low percentage of both variables in Indonesia, thus, they do not tend to affect corporate risk-taking decisions. The study recommends increasing gender diversity and managerial ownership in the corporate risk-taking process towards sustainable business practices.
This paper explores mechanisms of corporate governance (board characteristics, audit committee, and audit quality) of Indonesian listed companies and their influence on the likelihood of a financial distress. This study was conducted between 2012 and 2014. The results confirm that the composition of board of commissioners has a significant impact on the likelihood of financial distress, at least in the Indonesian context; the larger the number of Commissioners, the greater is the likelihood of financial distress. Companies with larger numbers of Commissioners have not been able to coordinate and communicate and engage in decision-making better than those with smaller numbers. In other words, the marginal value of a larger board size is questionable. There is also a significant relationship between the size of the audit committee and financial distress. It is argued the bigger the audit committee, the greater the likelihood the company experiencing financial distress as it appears to divert focus away from the company's operations. Additionally, the relationship between audit quality and the likelihood of financial distress is insignificant. This suggests that variations in the scale of auditing may not have a significant effect on the possible issuance of audit opinion by the auditor or on the likelihood of financial distress.
This study offers homo pancasilaus as antithesis to homo economicus. Homo economicus has become the ontology of Positive Accounting Theory (PAT) that dominates capitalistic accounting. By employing Pancasila as research paradigm, it is revealed that homo pancasilaus has a number of indicators which characterises human personality: divinity, humanity, unity, society, and justice. These characteristics can be used as the basis to transform accounting that is based on Pancasila, and to offer alternative Positive Accounting Theory.
Critical accounting, homo economicus, homo pancasilaus, positive accounting theory, pancasila paradigm
This research is based on Rook and Fisher's (1995) theory of taxonomy that explains the reasons for impulsive purchase. The aim of this study was to understand the motivations for hedonic expenditure and utilitarian expenditure physical environment, personality and culture as moderating variables on impulsive purchases. A total of 400 respondents who shopped at a souvenir store in Bengkulu, Indonesia were interviewed. The SmartPLS 2.0, a statistical technique, was used to identify the variables. Results showed physical environment, personality, and culture partially and positively affected impulsive purchases. Lifestyle however, has no effect on impulsive purchases. Second, there was the difference between hedonic expenditure motivation and utilitarian expenditure motivation. Third, motivation for hedonic expenditure was stronger.
This study investigates the role of brand experience from the perspective of customer brand equity looking at their favourable brand preference. The structural equations model (SEM) and quantitative research method was adopted. The LISREL software is applied to analyse data and results confirm that brand building blocks of experiential based model are key sources of brand equity and brand sustainability. All the nine research variables have a direct positive impact on brand sustainability. The findings also show the impacts on the general brand personality and brand trust of brand sustainability was mediated by brand experience.
Brand building blocks, brand sustainability, corporate brand equity, LISREL, SEM