Index
Asia-Pacific Contemporary Finance and Development
ISBN: 978-1-78973-274-0, eISBN: 978-1-78973-273-3
ISSN: 1571-0386
Publication date: 19 June 2019
Citation
(2019), "Index", Asia-Pacific Contemporary Finance and Development (International Symposia in Economic Theory and Econometrics, Vol. 26), Emerald Publishing Limited, Leeds, pp. 311-323. https://doi.org/10.1108/S1571-038620190000026015
Publisher
:Emerald Publishing Limited
Copyright © 2019 Emerald Publishing Limited
INDEX
Accounting
accounting-based measures, 244
measures, 215–216
practices and procedures, 124
principles, 304–305
Accounting and Auditing Organization of Islamic Financial Institution (AAOIFI), 197
Advertising expenditure ratio, 126
Agency
COD, 118, 119, 120, 131
COE, 118, 119
cost, 196–197
theory, 118, 119–121
Aggregate financial resources, 149
Aggressive working capital
financing policy, 40, 42, 43, 47
investment policy, 40, 41, 42–43, 46–47
Agricultural area, 59
American’s Most Admired Companies (AMAC), 243–244, 247, 250–251
Asia Pacific region, 2, 17
Asia Pacific trade network, 2–3, 9, 16, 17
aggregate network indices, 10
analysis, 9–18
average weighted degree for, 12
countries in, 9
graph density for, 12
percentage of exports share among TPP nations, 15
share, 13
total number of edges, 11
TPP and non-TPP countries, 14
Attraction of private Russian investments, 158, 160
Augmented Dickey–Fuller test (ADF test), 30, 32–33, 34
Autonomous factors, 78, 81–82, 83
Bank of Japan (BOJ), 27–28, 29, 36
Bankruptcy, 288–289
of institution, 288–289
probability, 90
Basis swap, 30
cross-currency, 28, 29
dollar–yen, 28
rate, 29, 31–32
Beta (equity market), 300
Betweenness centrality, 6–7
BI rate, 200, 204
Bilateral aggregate banking network, 3–4
Bond rating, 199
Book to market ratio, 126
Bovespa index, 297
Brazilian IBOVESPA Stock Exchange, 298
Business, 208
categories, 99
managers, 266
services, 54
Capital asset ratio (CAR), 170
Capital structure, 101, 104–105
theories, 199–200
Cause-and-effect association, 237
Central Asia, financial development of
agreements on cooperation with Russia, 156
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
Central place theory, 54
Centrality measures
aggregate, 2
inclusion of, 3
for individual nodes, 21, 22–24, 25–26
Centre for Monitoring Indian Economy (CMIE), 212–213
Centre for Responsive Politics (CRP), 242–243
CFA, 238–239
China, financial development of, 144
cooperation for Central Asia and, 142
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
China’s Insurance Yearbook, 98–99, 102–104
Chinese Household Income Project (CHIP), 266–267, 270–271
Chinese property and casualty industry, 98–99, 104–105
risk management, 90
variables role in, 91
Cointegration test, 31–32, 33–34, 35, 36
Community organization, 242
Comparative fit index (CFI), 45–46
Competition
business environment, 239
intensity in industry, 96–97
Compustat Industry Segment database, 209
Concentrated ownership, 118, 119–120
Conditional probability distribution, qth quantile of, 296
Conservative working capital
financing policy, 42
investment policy, 40, 42
Consumption propensity and entrepreneurship, 273–276
connection, 279–281
data, 270–271
financial constraint, 276–278
literature review, 267–269
methodologies and empirical findings, 272–281
risk preference, 272–273
Consumption-to-income ratio, 268, 272, 276
Conventional CPA models, 236
Convergence of interests, 119, 123
Convexity of tax functions, 91–92
Corporate diversification, 208
conceptual development and research hypotheses, 209–213
control variables, 216
curvilinear measurement and firm’s performance, 216
descriptive statistics, 217–218
EI, 218–222
implications, 229–230
measurement of degree of diversification, 214–215
measurement of firm’s performance, 215–216
measurement of type of corporate diversification, 214
methods and measures, 213–217
model specification for, 216–217
related diversification, 222–226
strategy, 218
studies on developed countries, 209
studies on developing countries, 210–213
unrelated, 226–229
Corporate diversification types, 214, 217, 218
Corporate financial performance (CFP), 236, 245
CPA effect on, 240–241
hypothesized relationships, 240
interaction effect between CPA and CSR on, 241–242
interactive effect of CSR and CPA on, 251–253
measurement, 244
Corporate governance (CG), 166, 169, 177
hypothesis, 167–168
indicators, 172
Corporate political activities (CPAs), 236, 237–238
CPA–CFP relationship, 238–239, 248–251
CSR, 239
effect on CFP, 240–241
empirical model, methodology, and data, 242–247
empirical results, 248–253
future research, 258
implications for theory and literature, 254–257
effect of interaction between CPA and CSR on CFP, 241–242
managerial and policy implications, 257–258
research hypotheses, 239–242
robustness test, 253–254
Corporate social responsibility (CSR), 236, 239
CFP measurement, 244
control variables, 245
correlation, 249
CPA measurement, 242–243
CPA–CFP relationship, 248–251
CSR measurement, 243–244
data and sample period, 247
descriptive statistics, 248
econometric methodology, 246–247
empirical model, 245–246
empirical results, 248–253
interaction effect between CPA and CSR on CFP, 241–242, 251–253
measurement, 243–244
Corporate variables, 288, 299–300, 301
Cost of debt (COD), 118, 124–125
FGLS regression, 131
insider-ownership and, 120–121
pairwise correlation of, 129
Cost of equity (COE), 118, 125, 130–131
FGLS regression on, 132
insider-ownership and, 121–122
pairwise correlation of, 130
CoVaR methodology, 290, 292, 295–297
Covered interest parity (CIP), 28, 29
Credit
constraint, 269
risk model, 29
Crisis, 288
dummies, 301–303
econometric of financial factors in, 110
shock, 177
Critical success factors (CSFs), 70, 71, 78
analysis, 82–83
ISM, 77
literature review, 71–78
managerial implications of research, 84
MICMA analysis, 78
MIMAC analysis of CSF, 81–82
prioritization and modeling of CSFs using ISM, 79–81
research methodology, 78–82
retailing management, 71–73
for Thai retailers, 73–77
Cross-currency basis swaps, 28, 29
Curvilinear
behavior, 210
corporate diversification model, 216
effect, 209
measurement of diversification, 216
DataStream information, 242–243
Debt, 120
debt-based sukuk
, 197
financing, 118
holder, 118
long-term, 42
short-term, 42
Degree centrality, 5
Degree of diversification measurement, 214–215, 230
Dependent factors, 78, 81–82, 83
Dependent variable, 57–58
COD, 124–125
COE, 125
firm performance, 125
Descriptive statistics, 68, 172–175, 217–218, 248
corporate diversification type, 217
degree of corporate diversification, 218
number of firms by type of industry, 217
of research variables, 200–201, 202
ROA, Tobin-Q, and corporate diversification strategy, 218
Direction of Trade Statistics (DOTS), 2–3, 9–10, 16
Distressed insurance premium (DIP), 291, 292
Diversification, 214
See also Corporate diversification
Diversion economic region, 99
Dollar–yen basis swaps, 28
Driving factors, 83
Dutch dairy industry, 242
Dynamic CSR–CFP relationship, 250–251
Dynamic graph, 14–15, 16, 18
Dynamic OLS method, 33–34
Dynamic panel
data system GMM estimation, 246
model, 218, 237
E-commerce system, 157, 160
Earning(s)
growth, 200–202
per share, 125
Econometric analysis, 99–102, 246–247
Economic
additional financial resources for development of countries, 149–155
crisis, 216, 304
forecasters, 266
implications, 146–155
integration, 149–151
performance, 237
system, 142, 288
Economic growth (EG), 142, 145, 266
Electronic marketing, 157
Empirical measure
for firm volatility, 170
for RT, 170–171
for stock market informational efficiency, 171–172
Entrenchment hypothesis, 123–124
Entrepreneurial
dynamism, 266
process, 268
Entropy index (EI), 213, 215, 217–229, 220–221
Entropy measurement, 214–215
Equity return volatility (ERV), 300
Equity-based return, 122
ERM, 97–98
Estimation technique, 127, 296–297
European car manufacturers, 241
European-Asian integration, 153
Feasible generalized least square regression (FGLS regression), 127
on COD, 131
on COE, 132
on firm performance, 133
Federal program implementation, 242–243
Financial covenants, 121
Financial crisis, 10–11, 188, 213, 288
Financial development through cooperation with Russia
economic implications, 146–155
literature review, 143–144
methodology, 144–146
Financial executives, 40
Financial institutions, 295–296
in Latin America, 294
non-US financial institutions, 28
state-owned, 305–306
Financial resources, 142, 152
China and countries of Central Asia, 146, 147, 149–155
for development, 142, 145
evaluation, 146
of modern economic systems, 143
non-borrowed, 142
optimization, 149
recommendations for attracting additional, 155–160
Financial resources for development (FRD), 145
Financial resources for development of countries, 149–155
Financial system, 288
Financial variables, 298
Financing policy, 44–45
Firm performance, 125
FGLS regression on, 133
insider-ownership and, 123–124
pairwise correlation of, 130
Firm volatility
alternative measure, 186
empirical measure for, 170
Firms, 91–92, 97, 105
age, 177, 201–202
characteristics, 196–197, 199–200
financial performance, 208, 209, 213, 216–217, 222
hedging, 107–108
incentive, 95
insiders, 121
liquidity risk, 166
manager, 97
number, 96
number by type of industry, 217
performance, 215–216, 218–229
production function, 56
size, 92–93, 126, 177
Fisher-type test, 127–133
COD, FGLS regression on, 131
COD, pairwise correlation of, 129
COE, FGLS regression on, 132
COE, pairwise correlation of, 130
descriptive statistics, 128
FGLS regression on firm performance, 133
firm performance, pairwise correlation of, 130
Fixed-effect model, 100–102, 248–249
Fixed-effects framework, 175
Foreign economic policy, 154
Foreign exchange (FX), 28
swap market, 28
Fortune AMAC, 247
Free cash flow, 120, 245, 249–250
Generalized Autoregressive Conditional Heteroscedastic (GARCH), 170
GARCH(1,1), 175–177
Generalized method of moments (GMM), 218, 246
model, 237, 248–249
German car manufacturers, 241
Gharar
risk, 199
uncertainty, 202–204
Global Climate Coalition (GCC), 252–253
Global clustering coefficient, 7
Global financial crisis (2008), 111, 142, 300
Global interbank, 28
Global price delay measures, 171
Global resource markets, 151
Globalization, 142
Goodness-of-fit index (GFI), 45–46
Government-related units, 266–267, 268–269
Governmental membership, 236
Graph theory, 3
Great Financial Crisis, 290
Great Financial Depression (2008Q4-2010Q2), 293, 303
Greenbelt area, 59
Gross domestic product (GDP), 145
Group, 101
firms, 104
learning process, 77–78
Haram
, 199
Hausman test, 102, 111
HEDGE variable, 101–104
Hedging, 93
level in industry, 95
Herfindahl geographic index, 94–95
Herfindahl index, 94–95, 105
Household’s consumption propensity, 270–271
IBOVESPAReturn, 298
Ijarah sukuk
, 196–197, 198, 199–200, 201–202
In-degree, 5
In-system connection, 266–267, 279–280
Incremental fit index (IFI), 45–46
Independent variable
control variables, 126
insider-ownership, 126
in study, 44–45
Index of sustainable development (IS), 146
Indirect utility
curve, 56, 57
function, 56
Individual
demographic characteristics, 272
entrepreneurial engagement, 266
Indonesia
Sharia economic activities in, 196
Sukuk issuance in, 196–197
Sukuk market in, 196
Indonesia Stock Exchange working capital investment policy, 46–47
Industry
industry 4.0, 159
shares, 64–65
Inflation, 204
Information efficiency (IE), 177
Information hypothesis, 168
Infrastructure variable (CtrIm), 217
Insider-ownership (INS), 120, 126, 128–130
and COD, 120–121
and COE, 121–122
dependent variable, 124–125
estimation technique, 127
and firm performance, 123–124
Fisher-type test, 127–133
impact on firm performance, 118–119
independent variable, 126
literature review and hypotheses development, 119–124
samples and variables, 124
Institutional investors, 28
Instrument variable approach, 276
Intangibles, 126, 127
Integrated financial system, 288
Internal and external borrowings of economic system (SB), 145
Internal and external investments (IE investments), 145
International Monetary Fund (IMF), 2–3
Interpretive structural modeling (ISM), 70–71, 77
CSFs of Thai retailers, 82
prioritization and modeling of CSFs using, 79–81
Intra-firm production, 225–226
Inventory storage, 40
“Iron rice bowl”, 280
Islamic joint venture bonds (IJV bonds). See Partnership-based sukuk
Istishna sukuk
, 197
Japanese Government Bonds (JGBs), 27–28
markets, 29
yield, 30, 31–32
“Just-in-time” approach, 157
Kazakhstan (foreign economic activities), 144
Korea, 54
local attributes and composition of areas, 64–65
local public goods, 54
quality of business and residential environment, 56–63
Kwiatkowski–Phillips–Schmidt–Shin test (KPSS test), 30, 32–33, 34, 35
Kyrgyzstan (foreign economic activities), 144
Land rent, 55–56
Latin American banking industry, systemic risk in
corporate variables, 299–300
measures of systemic risk, 291–292
methodology, 295–298
model specifications and empirical results, 300–306
sample of analysis, 293–295
Law of Insurance, 91
Leverage, 93–94, 101, 104, 111, 126, 201–202, 299
Linkage factors, 78, 81–82, 83
Liquidity spread (LiqSpread), 297
Lobbying Disclosure Act (1995), 242–243
Local clustering coefficient, 7–8
Long-tailed insurance price, 98
Macroeconomic condition, 200
Macroprudential policy, 292
Malaysian
corporations, 208
firms, 208, 210
Malaysian Accounting Standards Board (MASB), 213
Malaysian Institute of Accountants (MIA), 213
Management area, 59
Managerial implication, 257–258
Managerial ownership, 118–119, 121
Marginal effects of consumption propensity, 274
Marginal expected shortfall (MES), 291–292
Market To Book Value (MBV), 126, 300
Market(ing), 208
activities, 257–258
channel, 76
imperfection factors, 91
leaders, 94
market-based indicators, 244
market-based measure, 215–216
participants, 289
share, 94, 101, 105
value, 40, 41, 43, 45, 47, 48, 200, 304–305
Matrice d’Impacts croises-multiplication appliqúe à un classement analysis (MICMA analysis), 78
analysis of each CSF, 81–82
Maturity mismatch (MM), 288, 289
Maysir (gambling), 202–204
Merchandise management, 75
Merton distance-to-default (DD), 167, 170–171, 192–193
Micro-level data, 270
Model-based measures for RT, 167
Moderation effect, 253
Modern economic theory, 142
Modern graph theory, 4
Modigliani and Miller theory, 199–200
Mongolia (foreign economic activities), 144
Mudharabah sukuk
, 196–198, 199–200, 201–202
Mukharabah sukuk
, 197
Multi-channel retailer, 76
Multiple business lines model, 98
Multiple regression dependence, 146
Murabahah sukuk
, 197
Musaqah sukuk
, 197
Musyarakah sukuk
, 197
Muzaraah sukuk
, 197
National Bureau of Statistics (NBS), 270
Natural environment conservation area, 59
Network(s), 2
analysis of Asia Pacific trade network, 9–18
composition, 9
evolution, 2
modularity, 8–9
relation to literature, 3–4
structures, 3–4
theoretical background, 4–9
Node degree for weighted node, 6
Non-borrowed financial resources, 142
Non-compliance to sharia law, 199
Non-diversified firms, 209
Non-governmental organizations, 242
Non-life insurance business, 91
Non-market
activities, 236, 254–258
strategy, 237–238
Non-stationary time series, 31
Non-tradable sukuk
, 197
Non-traditional monetary policy
data, 29–30
descriptive statistics of data for analysis, 31
methodology, 30–32
movement of three series, 30
results, 32–34
See also Working capital policy
Norm fit index (NFI), 45–46
North American Free Trade Agreement (NAFTA), 2
Observatory of Economic Complexity (2018), 144
Occupation and Employment Statistics
, 57–58
Ohlson and Juettner-Nauroth model, 125
Optimal compensation contracts, 97–98
Ordinary least squares (OLS), 31, 246–247
Organization’s behavioral theory, 240
Out-degree, 5
Outside-system connection, 266–267, 279–280
Overinvestment, 118, 120
Pair-wise analyses, 32, 33
Pairwise correlation
of COD, 129
of COE, 130
of firm performance, 130
Pakistani Stock Exchange (PSE), 118–119
Panel regression
before, during, and post-crises periods, 188–189
model, 169
moderation indicators, 177–188
results of risk-taking on volatility, 175–177, 179, 181–182
Paradox volatility, 304
Partnership-based sukuk
, 197
Path length and strength of network, 5–6
Pecking order theory, 196–197, 199–200
Performance
firm, 216, 218–229
performance-dependent variable, 253–254
pricing, 121
Policy
financing, 44–45
implication, 257–258
selection, 40
Political action committees (PACs), 236, 241, 242–243
Pool time series data, 99
Pooled OLS regression model, 99
Population shares, 64
Portfolio design, 166
Price–earnings–growth ratio technique, 125
Pricing, 74–75, 78
call option pricing formula, 192–193
credit risk model for, 29
performance, 121
Principle of duration, 159
Principle of full involvement, 159
Principle of mutual profit, 159
Probability level analysis, 45–46
Probability of default (PDs), 291
Probit model, 272
Product type, 98
Profit maximization, 56
Profitability, 40, 43, 44, 45, 126, 201–202
Prudential equity asset ratio, 292
Public policy-makers, 254–257, 266
Public–private partnership system, 158
Quadratic model, 123–124
Quality of business environment, 54–55, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality of residential environment, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality-adjusted average wage and rent estimation, 57–60
Quantile regression, 296–297, 298
Quantitative data, 45–46
Random-effect model, 99, 102
Rate of socioeconomic development (RED), 145
Reachability matrix development, 77, 79–80
Region-specific amenities, 55
Regression model, 55, 58–59, 201–204, 251, 274, 280
See also Panel regression
Reinsurance, 90, 91–92
demand, 93–94, 104
premium, 91
ROA and, 93
tax-exempt policy and, 92
Related corporate diversification, 211
Related diversification, 216–217, 222–226
Resource dependence theory, 123–124
Retailing management, 71–73
convenience stores, 72
department stores, 71–72
discount stores and superstores, 73
specialty stores, 73
supermarkets, 72–73
See also Strategic risk management
Return on assets (ROA), 43, 45, 93, 101, 104, 125, 130, 170, 216–217, 218–229, 238, 245–246, 254
Return on equity (ROE), 244, 255, 256, 257
Riba (usury), 196, 199, 202–204
Risk preference, 272–273, 274, 278
Risk-coping strategies, 267–268
Risk-taking (RT), 165–166
average, 175, 176
effect on company performance, 165–166
effect on volatility, 167
empirical measure for, 170–171
empirical results, 175–189
hypothesis developments, 167–169
methodology, 169–175
and multitude of firm’s performance measures, 166
propensity, 266
Riskier institutions contribute to lower stock return volatility, 167
with better CG, 168
with increasing information efficiency, 168
with larger firm size, 168
Robustness test, 253–254
Root mean square residual (RMR), 45–46
Rumelt diversification category, 214
Russia, financial development through cooperation with
cooperation for Central Asia and China, 142
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
Salam sukuk
, 197
SARA bonds. See Ijarah sukuk
Sharia compliance, 196–197, 201
Sharia economic activities in Indonesia, 196
Sharia Supervisory Board (SSB), 196–197, 199, 202–204
“Sink”, 5
Social network analysis, 3
Socioeconomic development, 142, 143, 149–151
China and countries of Central Asia, 143, 147, 148, 153
evaluation, 146
of modern economic systems, 143, 145–146
strategic course of, 154
“Soft money”, 238–239
Sovereign debt crisis (2010Q3-2012Q4), 293, 303
Specialty stores, 73
Spillover effects of money market turbulence, 28
Squared entropy index (SEI), 217, 219
Standard deviation (SD), 172–173
Standard Industrial Classification code (SIC code), 214
Standard operating procedures (SOPs), 240–241
State revenues (SR), 145
State Sharia Bonds (SBSN), 196
See also Japanese Government Bonds (JGBs)
Static OLS, 248–249
Stock Exchange of Thailand, 41, 45, 46–47
Stock market informational efficiency, 171–172
Stock return volatility, 166, 167–168
See also Firm volatility
Store(s)
convenience, 72
department, 71–72
design and display, 75–76
discount, 73
location, 74
specialty, 73
Strategic risk management, 90
assets display, 104
using Chinese database, 90–91
Chinese property and casualty industry, 104–105
data, 98–99
diversification, 94–95
econometric analysis, 99–102
econometric geographic, 107–108
econometric of business line, 106
econometric of financial factors in crisis, 110
econometric of industry Herfindal business line, 109
econometric of industry Herfindal region, 108
financial distress and leverage, 93–94
firm size, 92–93
intensity of competition in industry, 96–97
level of hedging in industry, 95
literature review, 91–98
market share, 94
number of firms, 96
product type, 98
ROA, 93
salary position in industry, 97–98
statistics of variables, 101
taxes, 91–92
variables of interest, 100
Strong board hypothesis, 167, 168–169, 177
Structural self-interaction matrix (SSIM), 77
Subprime crisis (2007Q3-2008Q3), 293, 294–295, 301–303
Subworking capital policy, 40
See also Working capital policy
Sukuk
, 196
descriptive statistics of research variables, 200–201
determinants of Sukuk issuance type, 199–200
issuance in Indonesia, 196–197
market, 196
regression, 201–204
research methods, 200
risk, 199
Sukuk-specific characteristics, 196–197, 199
theoretical framework and hypothesis development, 197–200
variable definitions and measurement, 201
Supply chain management distribution networks, 211, 212
Swap markets, 28
System GMM method, 218, 222, 246–247
Systemic expected shortfall (SES), 291–292
Systemically important financial institutions (SIFIs), 289
Tajikistan, foreign economic activities in, 144
Tax, 90, 91–92, 101, 104, 110, 158, 266
Tehran Stock Exchange, 42–43
Thai retail business modernization, 71
Thai retailers, CSFs for, 73–77
communication mix, 76–77
customer service, 74
location, 74
marketing channel, 76
merchandise management, 75
pricing, 74–75
store design and display, 75–76
Thai retailing, 70, 72
Tobin-Q
, 43, 45, 125, 215–217, 218–229
Total firm, 216–217
Tradable sukuk
, 197
Trade agreements, 2
Trade area, 74
Trade diversification, 294
Trade networks, 9
See also Asia Pacific trade network
Traditional finance theory, 165–166
Trans-Pacific Partnership (TPP), 2, 14–15
Transformation process, 2, 4
Transnational cooperation development, 158–159
Turkmenistan, foreign economic activities in, 144
24-hour convenience store concept, 72
Two-step system GMM estimator, 248–249
Unit cost curve, 56, 57
Unit root test, 30, 32–33
Unrelated corporate diversification, 211–212, 226–229
Unrelated diversification firm, 211, 214, 216–217
US Climate Action Partnership, 252–253
US financial services industry, 212–213
Uzbekistan, foreign economic activities in, 144
Value, 74–75
creation, 119
market, 200
value-based measurement, 244
Value-at-risk (VaR), 288, 289–290, 295–297, 304
Variance equation, 170
Variance inflation factor (VIF), 248
Variance minimization hedging strategy, 96–97
Visual merchandizing, 75–76
Visualization techniques, 2, 16
Volatility, 126, 127
index, 297
stock return, 166, 167–168
Volcker rule, 28
Voluntary disclosure, 122–123
Wage
estimating quality-adjusted average, 56–63
estimation, 55
theoretical model, 55–56
unemployment risk, 55
Wakalah sukuk
, 197
Working capital policy, 40, 41, 43
analysis and results, 46–48
conceptual framework, 44
financing policy, 40, 41, 42, 43
investment policy, 40, 41, 42–43
literature review and hypotheses, 41–44
research methodology, 44–46
sample and data, 45–46
variables, 44–45
See also Non-traditional monetary policy
World Business Council for Sustainable Development, 239, 252–253
Yield
JGB, 28, 29, 31
profits for firms, 211
in Sukuk
, 199, 202
Z score, 167, 170, 175–177
Zoning, 59
Capital asset ratio (CAR), 170
Capital structure, 101, 104–105
theories, 199–200
Cause-and-effect association, 237
Central Asia, financial development of
agreements on cooperation with Russia, 156
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
Central place theory, 54
Centrality measures
aggregate, 2
inclusion of, 3
for individual nodes, 21, 22–24, 25–26
Centre for Monitoring Indian Economy (CMIE), 212–213
Centre for Responsive Politics (CRP), 242–243
CFA, 238–239
China, financial development of, 144
cooperation for Central Asia and, 142
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
China’s Insurance Yearbook, 98–99, 102–104
Chinese Household Income Project (CHIP), 266–267, 270–271
Chinese property and casualty industry, 98–99, 104–105
risk management, 90
variables role in, 91
Cointegration test, 31–32, 33–34, 35, 36
Community organization, 242
Comparative fit index (CFI), 45–46
Competition
business environment, 239
intensity in industry, 96–97
Compustat Industry Segment database, 209
Concentrated ownership, 118, 119–120
Conditional probability distribution, qth quantile of, 296
Conservative working capital
financing policy, 42
investment policy, 40, 42
Consumption propensity and entrepreneurship, 273–276
connection, 279–281
data, 270–271
financial constraint, 276–278
literature review, 267–269
methodologies and empirical findings, 272–281
risk preference, 272–273
Consumption-to-income ratio, 268, 272, 276
Conventional CPA models, 236
Convergence of interests, 119, 123
Convexity of tax functions, 91–92
Corporate diversification, 208
conceptual development and research hypotheses, 209–213
control variables, 216
curvilinear measurement and firm’s performance, 216
descriptive statistics, 217–218
EI, 218–222
implications, 229–230
measurement of degree of diversification, 214–215
measurement of firm’s performance, 215–216
measurement of type of corporate diversification, 214
methods and measures, 213–217
model specification for, 216–217
related diversification, 222–226
strategy, 218
studies on developed countries, 209
studies on developing countries, 210–213
unrelated, 226–229
Corporate diversification types, 214, 217, 218
Corporate financial performance (CFP), 236, 245
CPA effect on, 240–241
hypothesized relationships, 240
interaction effect between CPA and CSR on, 241–242
interactive effect of CSR and CPA on, 251–253
measurement, 244
Corporate governance (CG), 166, 169, 177
hypothesis, 167–168
indicators, 172
Corporate political activities (CPAs), 236, 237–238
CPA–CFP relationship, 238–239, 248–251
CSR, 239
effect on CFP, 240–241
empirical model, methodology, and data, 242–247
empirical results, 248–253
future research, 258
implications for theory and literature, 254–257
effect of interaction between CPA and CSR on CFP, 241–242
managerial and policy implications, 257–258
research hypotheses, 239–242
robustness test, 253–254
Corporate social responsibility (CSR), 236, 239
CFP measurement, 244
control variables, 245
correlation, 249
CPA measurement, 242–243
CPA–CFP relationship, 248–251
CSR measurement, 243–244
data and sample period, 247
descriptive statistics, 248
econometric methodology, 246–247
empirical model, 245–246
empirical results, 248–253
interaction effect between CPA and CSR on CFP, 241–242, 251–253
measurement, 243–244
Corporate variables, 288, 299–300, 301
Cost of debt (COD), 118, 124–125
FGLS regression, 131
insider-ownership and, 120–121
pairwise correlation of, 129
Cost of equity (COE), 118, 125, 130–131
FGLS regression on, 132
insider-ownership and, 121–122
pairwise correlation of, 130
CoVaR methodology, 290, 292, 295–297
Covered interest parity (CIP), 28, 29
Credit
constraint, 269
risk model, 29
Crisis, 288
dummies, 301–303
econometric of financial factors in, 110
shock, 177
Critical success factors (CSFs), 70, 71, 78
analysis, 82–83
ISM, 77
literature review, 71–78
managerial implications of research, 84
MICMA analysis, 78
MIMAC analysis of CSF, 81–82
prioritization and modeling of CSFs using ISM, 79–81
research methodology, 78–82
retailing management, 71–73
for Thai retailers, 73–77
Cross-currency basis swaps, 28, 29
Curvilinear
behavior, 210
corporate diversification model, 216
effect, 209
measurement of diversification, 216
DataStream information, 242–243
Debt, 120
debt-based sukuk
, 197
financing, 118
holder, 118
long-term, 42
short-term, 42
Degree centrality, 5
Degree of diversification measurement, 214–215, 230
Dependent factors, 78, 81–82, 83
Dependent variable, 57–58
COD, 124–125
COE, 125
firm performance, 125
Descriptive statistics, 68, 172–175, 217–218, 248
corporate diversification type, 217
degree of corporate diversification, 218
number of firms by type of industry, 217
of research variables, 200–201, 202
ROA, Tobin-Q, and corporate diversification strategy, 218
Direction of Trade Statistics (DOTS), 2–3, 9–10, 16
Distressed insurance premium (DIP), 291, 292
Diversification, 214
See also Corporate diversification
Diversion economic region, 99
Dollar–yen basis swaps, 28
Driving factors, 83
Dutch dairy industry, 242
Dynamic CSR–CFP relationship, 250–251
Dynamic graph, 14–15, 16, 18
Dynamic OLS method, 33–34
Dynamic panel
data system GMM estimation, 246
model, 218, 237
E-commerce system, 157, 160
Earning(s)
growth, 200–202
per share, 125
Econometric analysis, 99–102, 246–247
Economic
additional financial resources for development of countries, 149–155
crisis, 216, 304
forecasters, 266
implications, 146–155
integration, 149–151
performance, 237
system, 142, 288
Economic growth (EG), 142, 145, 266
Electronic marketing, 157
Empirical measure
for firm volatility, 170
for RT, 170–171
for stock market informational efficiency, 171–172
Entrenchment hypothesis, 123–124
Entrepreneurial
dynamism, 266
process, 268
Entropy index (EI), 213, 215, 217–229, 220–221
Entropy measurement, 214–215
Equity return volatility (ERV), 300
Equity-based return, 122
ERM, 97–98
Estimation technique, 127, 296–297
European car manufacturers, 241
European-Asian integration, 153
Feasible generalized least square regression (FGLS regression), 127
on COD, 131
on COE, 132
on firm performance, 133
Federal program implementation, 242–243
Financial covenants, 121
Financial crisis, 10–11, 188, 213, 288
Financial development through cooperation with Russia
economic implications, 146–155
literature review, 143–144
methodology, 144–146
Financial executives, 40
Financial institutions, 295–296
in Latin America, 294
non-US financial institutions, 28
state-owned, 305–306
Financial resources, 142, 152
China and countries of Central Asia, 146, 147, 149–155
for development, 142, 145
evaluation, 146
of modern economic systems, 143
non-borrowed, 142
optimization, 149
recommendations for attracting additional, 155–160
Financial resources for development (FRD), 145
Financial resources for development of countries, 149–155
Financial system, 288
Financial variables, 298
Financing policy, 44–45
Firm performance, 125
FGLS regression on, 133
insider-ownership and, 123–124
pairwise correlation of, 130
Firm volatility
alternative measure, 186
empirical measure for, 170
Firms, 91–92, 97, 105
age, 177, 201–202
characteristics, 196–197, 199–200
financial performance, 208, 209, 213, 216–217, 222
hedging, 107–108
incentive, 95
insiders, 121
liquidity risk, 166
manager, 97
number, 96
number by type of industry, 217
performance, 215–216, 218–229
production function, 56
size, 92–93, 126, 177
Fisher-type test, 127–133
COD, FGLS regression on, 131
COD, pairwise correlation of, 129
COE, FGLS regression on, 132
COE, pairwise correlation of, 130
descriptive statistics, 128
FGLS regression on firm performance, 133
firm performance, pairwise correlation of, 130
Fixed-effect model, 100–102, 248–249
Fixed-effects framework, 175
Foreign economic policy, 154
Foreign exchange (FX), 28
swap market, 28
Fortune AMAC, 247
Free cash flow, 120, 245, 249–250
Generalized Autoregressive Conditional Heteroscedastic (GARCH), 170
GARCH(1,1), 175–177
Generalized method of moments (GMM), 218, 246
model, 237, 248–249
German car manufacturers, 241
Gharar
risk, 199
uncertainty, 202–204
Global Climate Coalition (GCC), 252–253
Global clustering coefficient, 7
Global financial crisis (2008), 111, 142, 300
Global interbank, 28
Global price delay measures, 171
Global resource markets, 151
Globalization, 142
Goodness-of-fit index (GFI), 45–46
Government-related units, 266–267, 268–269
Governmental membership, 236
Graph theory, 3
Great Financial Crisis, 290
Great Financial Depression (2008Q4-2010Q2), 293, 303
Greenbelt area, 59
Gross domestic product (GDP), 145
Group, 101
firms, 104
learning process, 77–78
Haram
, 199
Hausman test, 102, 111
HEDGE variable, 101–104
Hedging, 93
level in industry, 95
Herfindahl geographic index, 94–95
Herfindahl index, 94–95, 105
Household’s consumption propensity, 270–271
IBOVESPAReturn, 298
Ijarah sukuk
, 196–197, 198, 199–200, 201–202
In-degree, 5
In-system connection, 266–267, 279–280
Incremental fit index (IFI), 45–46
Independent variable
control variables, 126
insider-ownership, 126
in study, 44–45
Index of sustainable development (IS), 146
Indirect utility
curve, 56, 57
function, 56
Individual
demographic characteristics, 272
entrepreneurial engagement, 266
Indonesia
Sharia economic activities in, 196
Sukuk issuance in, 196–197
Sukuk market in, 196
Indonesia Stock Exchange working capital investment policy, 46–47
Industry
industry 4.0, 159
shares, 64–65
Inflation, 204
Information efficiency (IE), 177
Information hypothesis, 168
Infrastructure variable (CtrIm), 217
Insider-ownership (INS), 120, 126, 128–130
and COD, 120–121
and COE, 121–122
dependent variable, 124–125
estimation technique, 127
and firm performance, 123–124
Fisher-type test, 127–133
impact on firm performance, 118–119
independent variable, 126
literature review and hypotheses development, 119–124
samples and variables, 124
Institutional investors, 28
Instrument variable approach, 276
Intangibles, 126, 127
Integrated financial system, 288
Internal and external borrowings of economic system (SB), 145
Internal and external investments (IE investments), 145
International Monetary Fund (IMF), 2–3
Interpretive structural modeling (ISM), 70–71, 77
CSFs of Thai retailers, 82
prioritization and modeling of CSFs using, 79–81
Intra-firm production, 225–226
Inventory storage, 40
“Iron rice bowl”, 280
Islamic joint venture bonds (IJV bonds). See Partnership-based sukuk
Istishna sukuk
, 197
Japanese Government Bonds (JGBs), 27–28
markets, 29
yield, 30, 31–32
“Just-in-time” approach, 157
Kazakhstan (foreign economic activities), 144
Korea, 54
local attributes and composition of areas, 64–65
local public goods, 54
quality of business and residential environment, 56–63
Kwiatkowski–Phillips–Schmidt–Shin test (KPSS test), 30, 32–33, 34, 35
Kyrgyzstan (foreign economic activities), 144
Land rent, 55–56
Latin American banking industry, systemic risk in
corporate variables, 299–300
measures of systemic risk, 291–292
methodology, 295–298
model specifications and empirical results, 300–306
sample of analysis, 293–295
Law of Insurance, 91
Leverage, 93–94, 101, 104, 111, 126, 201–202, 299
Linkage factors, 78, 81–82, 83
Liquidity spread (LiqSpread), 297
Lobbying Disclosure Act (1995), 242–243
Local clustering coefficient, 7–8
Long-tailed insurance price, 98
Macroeconomic condition, 200
Macroprudential policy, 292
Malaysian
corporations, 208
firms, 208, 210
Malaysian Accounting Standards Board (MASB), 213
Malaysian Institute of Accountants (MIA), 213
Management area, 59
Managerial implication, 257–258
Managerial ownership, 118–119, 121
Marginal effects of consumption propensity, 274
Marginal expected shortfall (MES), 291–292
Market To Book Value (MBV), 126, 300
Market(ing), 208
activities, 257–258
channel, 76
imperfection factors, 91
leaders, 94
market-based indicators, 244
market-based measure, 215–216
participants, 289
share, 94, 101, 105
value, 40, 41, 43, 45, 47, 48, 200, 304–305
Matrice d’Impacts croises-multiplication appliqúe à un classement analysis (MICMA analysis), 78
analysis of each CSF, 81–82
Maturity mismatch (MM), 288, 289
Maysir (gambling), 202–204
Merchandise management, 75
Merton distance-to-default (DD), 167, 170–171, 192–193
Micro-level data, 270
Model-based measures for RT, 167
Moderation effect, 253
Modern economic theory, 142
Modern graph theory, 4
Modigliani and Miller theory, 199–200
Mongolia (foreign economic activities), 144
Mudharabah sukuk
, 196–198, 199–200, 201–202
Mukharabah sukuk
, 197
Multi-channel retailer, 76
Multiple business lines model, 98
Multiple regression dependence, 146
Murabahah sukuk
, 197
Musaqah sukuk
, 197
Musyarakah sukuk
, 197
Muzaraah sukuk
, 197
National Bureau of Statistics (NBS), 270
Natural environment conservation area, 59
Network(s), 2
analysis of Asia Pacific trade network, 9–18
composition, 9
evolution, 2
modularity, 8–9
relation to literature, 3–4
structures, 3–4
theoretical background, 4–9
Node degree for weighted node, 6
Non-borrowed financial resources, 142
Non-compliance to sharia law, 199
Non-diversified firms, 209
Non-governmental organizations, 242
Non-life insurance business, 91
Non-market
activities, 236, 254–258
strategy, 237–238
Non-stationary time series, 31
Non-tradable sukuk
, 197
Non-traditional monetary policy
data, 29–30
descriptive statistics of data for analysis, 31
methodology, 30–32
movement of three series, 30
results, 32–34
See also Working capital policy
Norm fit index (NFI), 45–46
North American Free Trade Agreement (NAFTA), 2
Observatory of Economic Complexity (2018), 144
Occupation and Employment Statistics
, 57–58
Ohlson and Juettner-Nauroth model, 125
Optimal compensation contracts, 97–98
Ordinary least squares (OLS), 31, 246–247
Organization’s behavioral theory, 240
Out-degree, 5
Outside-system connection, 266–267, 279–280
Overinvestment, 118, 120
Pair-wise analyses, 32, 33
Pairwise correlation
of COD, 129
of COE, 130
of firm performance, 130
Pakistani Stock Exchange (PSE), 118–119
Panel regression
before, during, and post-crises periods, 188–189
model, 169
moderation indicators, 177–188
results of risk-taking on volatility, 175–177, 179, 181–182
Paradox volatility, 304
Partnership-based sukuk
, 197
Path length and strength of network, 5–6
Pecking order theory, 196–197, 199–200
Performance
firm, 216, 218–229
performance-dependent variable, 253–254
pricing, 121
Policy
financing, 44–45
implication, 257–258
selection, 40
Political action committees (PACs), 236, 241, 242–243
Pool time series data, 99
Pooled OLS regression model, 99
Population shares, 64
Portfolio design, 166
Price–earnings–growth ratio technique, 125
Pricing, 74–75, 78
call option pricing formula, 192–193
credit risk model for, 29
performance, 121
Principle of duration, 159
Principle of full involvement, 159
Principle of mutual profit, 159
Probability level analysis, 45–46
Probability of default (PDs), 291
Probit model, 272
Product type, 98
Profit maximization, 56
Profitability, 40, 43, 44, 45, 126, 201–202
Prudential equity asset ratio, 292
Public policy-makers, 254–257, 266
Public–private partnership system, 158
Quadratic model, 123–124
Quality of business environment, 54–55, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality of residential environment, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality-adjusted average wage and rent estimation, 57–60
Quantile regression, 296–297, 298
Quantitative data, 45–46
Random-effect model, 99, 102
Rate of socioeconomic development (RED), 145
Reachability matrix development, 77, 79–80
Region-specific amenities, 55
Regression model, 55, 58–59, 201–204, 251, 274, 280
See also Panel regression
Reinsurance, 90, 91–92
demand, 93–94, 104
premium, 91
ROA and, 93
tax-exempt policy and, 92
Related corporate diversification, 211
Related diversification, 216–217, 222–226
Resource dependence theory, 123–124
Retailing management, 71–73
convenience stores, 72
department stores, 71–72
discount stores and superstores, 73
specialty stores, 73
supermarkets, 72–73
See also Strategic risk management
Return on assets (ROA), 43, 45, 93, 101, 104, 125, 130, 170, 216–217, 218–229, 238, 245–246, 254
Return on equity (ROE), 244, 255, 256, 257
Riba (usury), 196, 199, 202–204
Risk preference, 272–273, 274, 278
Risk-coping strategies, 267–268
Risk-taking (RT), 165–166
average, 175, 176
effect on company performance, 165–166
effect on volatility, 167
empirical measure for, 170–171
empirical results, 175–189
hypothesis developments, 167–169
methodology, 169–175
and multitude of firm’s performance measures, 166
propensity, 266
Riskier institutions contribute to lower stock return volatility, 167
with better CG, 168
with increasing information efficiency, 168
with larger firm size, 168
Robustness test, 253–254
Root mean square residual (RMR), 45–46
Rumelt diversification category, 214
Russia, financial development through cooperation with
cooperation for Central Asia and China, 142
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
Salam sukuk
, 197
SARA bonds. See Ijarah sukuk
Sharia compliance, 196–197, 201
Sharia economic activities in Indonesia, 196
Sharia Supervisory Board (SSB), 196–197, 199, 202–204
“Sink”, 5
Social network analysis, 3
Socioeconomic development, 142, 143, 149–151
China and countries of Central Asia, 143, 147, 148, 153
evaluation, 146
of modern economic systems, 143, 145–146
strategic course of, 154
“Soft money”, 238–239
Sovereign debt crisis (2010Q3-2012Q4), 293, 303
Specialty stores, 73
Spillover effects of money market turbulence, 28
Squared entropy index (SEI), 217, 219
Standard deviation (SD), 172–173
Standard Industrial Classification code (SIC code), 214
Standard operating procedures (SOPs), 240–241
State revenues (SR), 145
State Sharia Bonds (SBSN), 196
See also Japanese Government Bonds (JGBs)
Static OLS, 248–249
Stock Exchange of Thailand, 41, 45, 46–47
Stock market informational efficiency, 171–172
Stock return volatility, 166, 167–168
See also Firm volatility
Store(s)
convenience, 72
department, 71–72
design and display, 75–76
discount, 73
location, 74
specialty, 73
Strategic risk management, 90
assets display, 104
using Chinese database, 90–91
Chinese property and casualty industry, 104–105
data, 98–99
diversification, 94–95
econometric analysis, 99–102
econometric geographic, 107–108
econometric of business line, 106
econometric of financial factors in crisis, 110
econometric of industry Herfindal business line, 109
econometric of industry Herfindal region, 108
financial distress and leverage, 93–94
firm size, 92–93
intensity of competition in industry, 96–97
level of hedging in industry, 95
literature review, 91–98
market share, 94
number of firms, 96
product type, 98
ROA, 93
salary position in industry, 97–98
statistics of variables, 101
taxes, 91–92
variables of interest, 100
Strong board hypothesis, 167, 168–169, 177
Structural self-interaction matrix (SSIM), 77
Subprime crisis (2007Q3-2008Q3), 293, 294–295, 301–303
Subworking capital policy, 40
See also Working capital policy
Sukuk
, 196
descriptive statistics of research variables, 200–201
determinants of Sukuk issuance type, 199–200
issuance in Indonesia, 196–197
market, 196
regression, 201–204
research methods, 200
risk, 199
Sukuk-specific characteristics, 196–197, 199
theoretical framework and hypothesis development, 197–200
variable definitions and measurement, 201
Supply chain management distribution networks, 211, 212
Swap markets, 28
System GMM method, 218, 222, 246–247
Systemic expected shortfall (SES), 291–292
Systemically important financial institutions (SIFIs), 289
Tajikistan, foreign economic activities in, 144
Tax, 90, 91–92, 101, 104, 110, 158, 266
Tehran Stock Exchange, 42–43
Thai retail business modernization, 71
Thai retailers, CSFs for, 73–77
communication mix, 76–77
customer service, 74
location, 74
marketing channel, 76
merchandise management, 75
pricing, 74–75
store design and display, 75–76
Thai retailing, 70, 72
Tobin-Q
, 43, 45, 125, 215–217, 218–229
Total firm, 216–217
Tradable sukuk
, 197
Trade agreements, 2
Trade area, 74
Trade diversification, 294
Trade networks, 9
See also Asia Pacific trade network
Traditional finance theory, 165–166
Trans-Pacific Partnership (TPP), 2, 14–15
Transformation process, 2, 4
Transnational cooperation development, 158–159
Turkmenistan, foreign economic activities in, 144
24-hour convenience store concept, 72
Two-step system GMM estimator, 248–249
Unit cost curve, 56, 57
Unit root test, 30, 32–33
Unrelated corporate diversification, 211–212, 226–229
Unrelated diversification firm, 211, 214, 216–217
US Climate Action Partnership, 252–253
US financial services industry, 212–213
Uzbekistan, foreign economic activities in, 144
Value, 74–75
creation, 119
market, 200
value-based measurement, 244
Value-at-risk (VaR), 288, 289–290, 295–297, 304
Variance equation, 170
Variance inflation factor (VIF), 248
Variance minimization hedging strategy, 96–97
Visual merchandizing, 75–76
Visualization techniques, 2, 16
Volatility, 126, 127
index, 297
stock return, 166, 167–168
Volcker rule, 28
Voluntary disclosure, 122–123
Wage
estimating quality-adjusted average, 56–63
estimation, 55
theoretical model, 55–56
unemployment risk, 55
Wakalah sukuk
, 197
Working capital policy, 40, 41, 43
analysis and results, 46–48
conceptual framework, 44
financing policy, 40, 41, 42, 43
investment policy, 40, 41, 42–43
literature review and hypotheses, 41–44
research methodology, 44–46
sample and data, 45–46
variables, 44–45
See also Non-traditional monetary policy
World Business Council for Sustainable Development, 239, 252–253
Yield
JGB, 28, 29, 31
profits for firms, 211
in Sukuk
, 199, 202
Z score, 167, 170, 175–177
Zoning, 59
E-commerce system, 157, 160
Earning(s)
growth, 200–202
per share, 125
Econometric analysis, 99–102, 246–247
Economic
additional financial resources for development of countries, 149–155
crisis, 216, 304
forecasters, 266
implications, 146–155
integration, 149–151
performance, 237
system, 142, 288
Economic growth (EG), 142, 145, 266
Electronic marketing, 157
Empirical measure
for firm volatility, 170
for RT, 170–171
for stock market informational efficiency, 171–172
Entrenchment hypothesis, 123–124
Entrepreneurial
dynamism, 266
process, 268
Entropy index (EI), 213, 215, 217–229, 220–221
Entropy measurement, 214–215
Equity return volatility (ERV), 300
Equity-based return, 122
ERM, 97–98
Estimation technique, 127, 296–297
European car manufacturers, 241
European-Asian integration, 153
Feasible generalized least square regression (FGLS regression), 127
on COD, 131
on COE, 132
on firm performance, 133
Federal program implementation, 242–243
Financial covenants, 121
Financial crisis, 10–11, 188, 213, 288
Financial development through cooperation with Russia
economic implications, 146–155
literature review, 143–144
methodology, 144–146
Financial executives, 40
Financial institutions, 295–296
in Latin America, 294
non-US financial institutions, 28
state-owned, 305–306
Financial resources, 142, 152
China and countries of Central Asia, 146, 147, 149–155
for development, 142, 145
evaluation, 146
of modern economic systems, 143
non-borrowed, 142
optimization, 149
recommendations for attracting additional, 155–160
Financial resources for development (FRD), 145
Financial resources for development of countries, 149–155
Financial system, 288
Financial variables, 298
Financing policy, 44–45
Firm performance, 125
FGLS regression on, 133
insider-ownership and, 123–124
pairwise correlation of, 130
Firm volatility
alternative measure, 186
empirical measure for, 170
Firms, 91–92, 97, 105
age, 177, 201–202
characteristics, 196–197, 199–200
financial performance, 208, 209, 213, 216–217, 222
hedging, 107–108
incentive, 95
insiders, 121
liquidity risk, 166
manager, 97
number, 96
number by type of industry, 217
performance, 215–216, 218–229
production function, 56
size, 92–93, 126, 177
Fisher-type test, 127–133
COD, FGLS regression on, 131
COD, pairwise correlation of, 129
COE, FGLS regression on, 132
COE, pairwise correlation of, 130
descriptive statistics, 128
FGLS regression on firm performance, 133
firm performance, pairwise correlation of, 130
Fixed-effect model, 100–102, 248–249
Fixed-effects framework, 175
Foreign economic policy, 154
Foreign exchange (FX), 28
swap market, 28
Fortune AMAC, 247
Free cash flow, 120, 245, 249–250
Generalized Autoregressive Conditional Heteroscedastic (GARCH), 170
GARCH(1,1), 175–177
Generalized method of moments (GMM), 218, 246
model, 237, 248–249
German car manufacturers, 241
Gharar
risk, 199
uncertainty, 202–204
Global Climate Coalition (GCC), 252–253
Global clustering coefficient, 7
Global financial crisis (2008), 111, 142, 300
Global interbank, 28
Global price delay measures, 171
Global resource markets, 151
Globalization, 142
Goodness-of-fit index (GFI), 45–46
Government-related units, 266–267, 268–269
Governmental membership, 236
Graph theory, 3
Great Financial Crisis, 290
Great Financial Depression (2008Q4-2010Q2), 293, 303
Greenbelt area, 59
Gross domestic product (GDP), 145
Group, 101
firms, 104
learning process, 77–78
Haram
, 199
Hausman test, 102, 111
HEDGE variable, 101–104
Hedging, 93
level in industry, 95
Herfindahl geographic index, 94–95
Herfindahl index, 94–95, 105
Household’s consumption propensity, 270–271
IBOVESPAReturn, 298
Ijarah sukuk
, 196–197, 198, 199–200, 201–202
In-degree, 5
In-system connection, 266–267, 279–280
Incremental fit index (IFI), 45–46
Independent variable
control variables, 126
insider-ownership, 126
in study, 44–45
Index of sustainable development (IS), 146
Indirect utility
curve, 56, 57
function, 56
Individual
demographic characteristics, 272
entrepreneurial engagement, 266
Indonesia
Sharia economic activities in, 196
Sukuk issuance in, 196–197
Sukuk market in, 196
Indonesia Stock Exchange working capital investment policy, 46–47
Industry
industry 4.0, 159
shares, 64–65
Inflation, 204
Information efficiency (IE), 177
Information hypothesis, 168
Infrastructure variable (CtrIm), 217
Insider-ownership (INS), 120, 126, 128–130
and COD, 120–121
and COE, 121–122
dependent variable, 124–125
estimation technique, 127
and firm performance, 123–124
Fisher-type test, 127–133
impact on firm performance, 118–119
independent variable, 126
literature review and hypotheses development, 119–124
samples and variables, 124
Institutional investors, 28
Instrument variable approach, 276
Intangibles, 126, 127
Integrated financial system, 288
Internal and external borrowings of economic system (SB), 145
Internal and external investments (IE investments), 145
International Monetary Fund (IMF), 2–3
Interpretive structural modeling (ISM), 70–71, 77
CSFs of Thai retailers, 82
prioritization and modeling of CSFs using, 79–81
Intra-firm production, 225–226
Inventory storage, 40
“Iron rice bowl”, 280
Islamic joint venture bonds (IJV bonds). See Partnership-based sukuk
Istishna sukuk
, 197
Japanese Government Bonds (JGBs), 27–28
markets, 29
yield, 30, 31–32
“Just-in-time” approach, 157
Kazakhstan (foreign economic activities), 144
Korea, 54
local attributes and composition of areas, 64–65
local public goods, 54
quality of business and residential environment, 56–63
Kwiatkowski–Phillips–Schmidt–Shin test (KPSS test), 30, 32–33, 34, 35
Kyrgyzstan (foreign economic activities), 144
Land rent, 55–56
Latin American banking industry, systemic risk in
corporate variables, 299–300
measures of systemic risk, 291–292
methodology, 295–298
model specifications and empirical results, 300–306
sample of analysis, 293–295
Law of Insurance, 91
Leverage, 93–94, 101, 104, 111, 126, 201–202, 299
Linkage factors, 78, 81–82, 83
Liquidity spread (LiqSpread), 297
Lobbying Disclosure Act (1995), 242–243
Local clustering coefficient, 7–8
Long-tailed insurance price, 98
Macroeconomic condition, 200
Macroprudential policy, 292
Malaysian
corporations, 208
firms, 208, 210
Malaysian Accounting Standards Board (MASB), 213
Malaysian Institute of Accountants (MIA), 213
Management area, 59
Managerial implication, 257–258
Managerial ownership, 118–119, 121
Marginal effects of consumption propensity, 274
Marginal expected shortfall (MES), 291–292
Market To Book Value (MBV), 126, 300
Market(ing), 208
activities, 257–258
channel, 76
imperfection factors, 91
leaders, 94
market-based indicators, 244
market-based measure, 215–216
participants, 289
share, 94, 101, 105
value, 40, 41, 43, 45, 47, 48, 200, 304–305
Matrice d’Impacts croises-multiplication appliqúe à un classement analysis (MICMA analysis), 78
analysis of each CSF, 81–82
Maturity mismatch (MM), 288, 289
Maysir (gambling), 202–204
Merchandise management, 75
Merton distance-to-default (DD), 167, 170–171, 192–193
Micro-level data, 270
Model-based measures for RT, 167
Moderation effect, 253
Modern economic theory, 142
Modern graph theory, 4
Modigliani and Miller theory, 199–200
Mongolia (foreign economic activities), 144
Mudharabah sukuk
, 196–198, 199–200, 201–202
Mukharabah sukuk
, 197
Multi-channel retailer, 76
Multiple business lines model, 98
Multiple regression dependence, 146
Murabahah sukuk
, 197
Musaqah sukuk
, 197
Musyarakah sukuk
, 197
Muzaraah sukuk
, 197
National Bureau of Statistics (NBS), 270
Natural environment conservation area, 59
Network(s), 2
analysis of Asia Pacific trade network, 9–18
composition, 9
evolution, 2
modularity, 8–9
relation to literature, 3–4
structures, 3–4
theoretical background, 4–9
Node degree for weighted node, 6
Non-borrowed financial resources, 142
Non-compliance to sharia law, 199
Non-diversified firms, 209
Non-governmental organizations, 242
Non-life insurance business, 91
Non-market
activities, 236, 254–258
strategy, 237–238
Non-stationary time series, 31
Non-tradable sukuk
, 197
Non-traditional monetary policy
data, 29–30
descriptive statistics of data for analysis, 31
methodology, 30–32
movement of three series, 30
results, 32–34
See also Working capital policy
Norm fit index (NFI), 45–46
North American Free Trade Agreement (NAFTA), 2
Observatory of Economic Complexity (2018), 144
Occupation and Employment Statistics
, 57–58
Ohlson and Juettner-Nauroth model, 125
Optimal compensation contracts, 97–98
Ordinary least squares (OLS), 31, 246–247
Organization’s behavioral theory, 240
Out-degree, 5
Outside-system connection, 266–267, 279–280
Overinvestment, 118, 120
Pair-wise analyses, 32, 33
Pairwise correlation
of COD, 129
of COE, 130
of firm performance, 130
Pakistani Stock Exchange (PSE), 118–119
Panel regression
before, during, and post-crises periods, 188–189
model, 169
moderation indicators, 177–188
results of risk-taking on volatility, 175–177, 179, 181–182
Paradox volatility, 304
Partnership-based sukuk
, 197
Path length and strength of network, 5–6
Pecking order theory, 196–197, 199–200
Performance
firm, 216, 218–229
performance-dependent variable, 253–254
pricing, 121
Policy
financing, 44–45
implication, 257–258
selection, 40
Political action committees (PACs), 236, 241, 242–243
Pool time series data, 99
Pooled OLS regression model, 99
Population shares, 64
Portfolio design, 166
Price–earnings–growth ratio technique, 125
Pricing, 74–75, 78
call option pricing formula, 192–193
credit risk model for, 29
performance, 121
Principle of duration, 159
Principle of full involvement, 159
Principle of mutual profit, 159
Probability level analysis, 45–46
Probability of default (PDs), 291
Probit model, 272
Product type, 98
Profit maximization, 56
Profitability, 40, 43, 44, 45, 126, 201–202
Prudential equity asset ratio, 292
Public policy-makers, 254–257, 266
Public–private partnership system, 158
Quadratic model, 123–124
Quality of business environment, 54–55, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality of residential environment, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality-adjusted average wage and rent estimation, 57–60
Quantile regression, 296–297, 298
Quantitative data, 45–46
Random-effect model, 99, 102
Rate of socioeconomic development (RED), 145
Reachability matrix development, 77, 79–80
Region-specific amenities, 55
Regression model, 55, 58–59, 201–204, 251, 274, 280
See also Panel regression
Reinsurance, 90, 91–92
demand, 93–94, 104
premium, 91
ROA and, 93
tax-exempt policy and, 92
Related corporate diversification, 211
Related diversification, 216–217, 222–226
Resource dependence theory, 123–124
Retailing management, 71–73
convenience stores, 72
department stores, 71–72
discount stores and superstores, 73
specialty stores, 73
supermarkets, 72–73
See also Strategic risk management
Return on assets (ROA), 43, 45, 93, 101, 104, 125, 130, 170, 216–217, 218–229, 238, 245–246, 254
Return on equity (ROE), 244, 255, 256, 257
Riba (usury), 196, 199, 202–204
Risk preference, 272–273, 274, 278
Risk-coping strategies, 267–268
Risk-taking (RT), 165–166
average, 175, 176
effect on company performance, 165–166
effect on volatility, 167
empirical measure for, 170–171
empirical results, 175–189
hypothesis developments, 167–169
methodology, 169–175
and multitude of firm’s performance measures, 166
propensity, 266
Riskier institutions contribute to lower stock return volatility, 167
with better CG, 168
with increasing information efficiency, 168
with larger firm size, 168
Robustness test, 253–254
Root mean square residual (RMR), 45–46
Rumelt diversification category, 214
Russia, financial development through cooperation with
cooperation for Central Asia and China, 142
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
Salam sukuk
, 197
SARA bonds. See Ijarah sukuk
Sharia compliance, 196–197, 201
Sharia economic activities in Indonesia, 196
Sharia Supervisory Board (SSB), 196–197, 199, 202–204
“Sink”, 5
Social network analysis, 3
Socioeconomic development, 142, 143, 149–151
China and countries of Central Asia, 143, 147, 148, 153
evaluation, 146
of modern economic systems, 143, 145–146
strategic course of, 154
“Soft money”, 238–239
Sovereign debt crisis (2010Q3-2012Q4), 293, 303
Specialty stores, 73
Spillover effects of money market turbulence, 28
Squared entropy index (SEI), 217, 219
Standard deviation (SD), 172–173
Standard Industrial Classification code (SIC code), 214
Standard operating procedures (SOPs), 240–241
State revenues (SR), 145
State Sharia Bonds (SBSN), 196
See also Japanese Government Bonds (JGBs)
Static OLS, 248–249
Stock Exchange of Thailand, 41, 45, 46–47
Stock market informational efficiency, 171–172
Stock return volatility, 166, 167–168
See also Firm volatility
Store(s)
convenience, 72
department, 71–72
design and display, 75–76
discount, 73
location, 74
specialty, 73
Strategic risk management, 90
assets display, 104
using Chinese database, 90–91
Chinese property and casualty industry, 104–105
data, 98–99
diversification, 94–95
econometric analysis, 99–102
econometric geographic, 107–108
econometric of business line, 106
econometric of financial factors in crisis, 110
econometric of industry Herfindal business line, 109
econometric of industry Herfindal region, 108
financial distress and leverage, 93–94
firm size, 92–93
intensity of competition in industry, 96–97
level of hedging in industry, 95
literature review, 91–98
market share, 94
number of firms, 96
product type, 98
ROA, 93
salary position in industry, 97–98
statistics of variables, 101
taxes, 91–92
variables of interest, 100
Strong board hypothesis, 167, 168–169, 177
Structural self-interaction matrix (SSIM), 77
Subprime crisis (2007Q3-2008Q3), 293, 294–295, 301–303
Subworking capital policy, 40
See also Working capital policy
Sukuk
, 196
descriptive statistics of research variables, 200–201
determinants of Sukuk issuance type, 199–200
issuance in Indonesia, 196–197
market, 196
regression, 201–204
research methods, 200
risk, 199
Sukuk-specific characteristics, 196–197, 199
theoretical framework and hypothesis development, 197–200
variable definitions and measurement, 201
Supply chain management distribution networks, 211, 212
Swap markets, 28
System GMM method, 218, 222, 246–247
Systemic expected shortfall (SES), 291–292
Systemically important financial institutions (SIFIs), 289
Tajikistan, foreign economic activities in, 144
Tax, 90, 91–92, 101, 104, 110, 158, 266
Tehran Stock Exchange, 42–43
Thai retail business modernization, 71
Thai retailers, CSFs for, 73–77
communication mix, 76–77
customer service, 74
location, 74
marketing channel, 76
merchandise management, 75
pricing, 74–75
store design and display, 75–76
Thai retailing, 70, 72
Tobin-Q
, 43, 45, 125, 215–217, 218–229
Total firm, 216–217
Tradable sukuk
, 197
Trade agreements, 2
Trade area, 74
Trade diversification, 294
Trade networks, 9
See also Asia Pacific trade network
Traditional finance theory, 165–166
Trans-Pacific Partnership (TPP), 2, 14–15
Transformation process, 2, 4
Transnational cooperation development, 158–159
Turkmenistan, foreign economic activities in, 144
24-hour convenience store concept, 72
Two-step system GMM estimator, 248–249
Unit cost curve, 56, 57
Unit root test, 30, 32–33
Unrelated corporate diversification, 211–212, 226–229
Unrelated diversification firm, 211, 214, 216–217
US Climate Action Partnership, 252–253
US financial services industry, 212–213
Uzbekistan, foreign economic activities in, 144
Value, 74–75
creation, 119
market, 200
value-based measurement, 244
Value-at-risk (VaR), 288, 289–290, 295–297, 304
Variance equation, 170
Variance inflation factor (VIF), 248
Variance minimization hedging strategy, 96–97
Visual merchandizing, 75–76
Visualization techniques, 2, 16
Volatility, 126, 127
index, 297
stock return, 166, 167–168
Volcker rule, 28
Voluntary disclosure, 122–123
Wage
estimating quality-adjusted average, 56–63
estimation, 55
theoretical model, 55–56
unemployment risk, 55
Wakalah sukuk
, 197
Working capital policy, 40, 41, 43
analysis and results, 46–48
conceptual framework, 44
financing policy, 40, 41, 42, 43
investment policy, 40, 41, 42–43
literature review and hypotheses, 41–44
research methodology, 44–46
sample and data, 45–46
variables, 44–45
See also Non-traditional monetary policy
World Business Council for Sustainable Development, 239, 252–253
Yield
JGB, 28, 29, 31
profits for firms, 211
in Sukuk
, 199, 202
Z score, 167, 170, 175–177
Zoning, 59
Generalized Autoregressive Conditional Heteroscedastic (GARCH), 170
GARCH(1,1), 175–177
Generalized method of moments (GMM), 218, 246
model, 237, 248–249
German car manufacturers, 241
Gharar
risk, 199
uncertainty, 202–204
Global Climate Coalition (GCC), 252–253
Global clustering coefficient, 7
Global financial crisis (2008), 111, 142, 300
Global interbank, 28
Global price delay measures, 171
Global resource markets, 151
Globalization, 142
Goodness-of-fit index (GFI), 45–46
Government-related units, 266–267, 268–269
Governmental membership, 236
Graph theory, 3
Great Financial Crisis, 290
Great Financial Depression (2008Q4-2010Q2), 293, 303
Greenbelt area, 59
Gross domestic product (GDP), 145
Group, 101
firms, 104
learning process, 77–78
Haram
, 199
Hausman test, 102, 111
HEDGE variable, 101–104
Hedging, 93
level in industry, 95
Herfindahl geographic index, 94–95
Herfindahl index, 94–95, 105
Household’s consumption propensity, 270–271
IBOVESPAReturn, 298
Ijarah sukuk
, 196–197, 198, 199–200, 201–202
In-degree, 5
In-system connection, 266–267, 279–280
Incremental fit index (IFI), 45–46
Independent variable
control variables, 126
insider-ownership, 126
in study, 44–45
Index of sustainable development (IS), 146
Indirect utility
curve, 56, 57
function, 56
Individual
demographic characteristics, 272
entrepreneurial engagement, 266
Indonesia
Sharia economic activities in, 196
Sukuk issuance in, 196–197
Sukuk market in, 196
Indonesia Stock Exchange working capital investment policy, 46–47
Industry
industry 4.0, 159
shares, 64–65
Inflation, 204
Information efficiency (IE), 177
Information hypothesis, 168
Infrastructure variable (CtrIm), 217
Insider-ownership (INS), 120, 126, 128–130
and COD, 120–121
and COE, 121–122
dependent variable, 124–125
estimation technique, 127
and firm performance, 123–124
Fisher-type test, 127–133
impact on firm performance, 118–119
independent variable, 126
literature review and hypotheses development, 119–124
samples and variables, 124
Institutional investors, 28
Instrument variable approach, 276
Intangibles, 126, 127
Integrated financial system, 288
Internal and external borrowings of economic system (SB), 145
Internal and external investments (IE investments), 145
International Monetary Fund (IMF), 2–3
Interpretive structural modeling (ISM), 70–71, 77
CSFs of Thai retailers, 82
prioritization and modeling of CSFs using, 79–81
Intra-firm production, 225–226
Inventory storage, 40
“Iron rice bowl”, 280
Islamic joint venture bonds (IJV bonds). See Partnership-based sukuk
Istishna sukuk
, 197
Japanese Government Bonds (JGBs), 27–28
markets, 29
yield, 30, 31–32
“Just-in-time” approach, 157
Kazakhstan (foreign economic activities), 144
Korea, 54
local attributes and composition of areas, 64–65
local public goods, 54
quality of business and residential environment, 56–63
Kwiatkowski–Phillips–Schmidt–Shin test (KPSS test), 30, 32–33, 34, 35
Kyrgyzstan (foreign economic activities), 144
Land rent, 55–56
Latin American banking industry, systemic risk in
corporate variables, 299–300
measures of systemic risk, 291–292
methodology, 295–298
model specifications and empirical results, 300–306
sample of analysis, 293–295
Law of Insurance, 91
Leverage, 93–94, 101, 104, 111, 126, 201–202, 299
Linkage factors, 78, 81–82, 83
Liquidity spread (LiqSpread), 297
Lobbying Disclosure Act (1995), 242–243
Local clustering coefficient, 7–8
Long-tailed insurance price, 98
Macroeconomic condition, 200
Macroprudential policy, 292
Malaysian
corporations, 208
firms, 208, 210
Malaysian Accounting Standards Board (MASB), 213
Malaysian Institute of Accountants (MIA), 213
Management area, 59
Managerial implication, 257–258
Managerial ownership, 118–119, 121
Marginal effects of consumption propensity, 274
Marginal expected shortfall (MES), 291–292
Market To Book Value (MBV), 126, 300
Market(ing), 208
activities, 257–258
channel, 76
imperfection factors, 91
leaders, 94
market-based indicators, 244
market-based measure, 215–216
participants, 289
share, 94, 101, 105
value, 40, 41, 43, 45, 47, 48, 200, 304–305
Matrice d’Impacts croises-multiplication appliqúe à un classement analysis (MICMA analysis), 78
analysis of each CSF, 81–82
Maturity mismatch (MM), 288, 289
Maysir (gambling), 202–204
Merchandise management, 75
Merton distance-to-default (DD), 167, 170–171, 192–193
Micro-level data, 270
Model-based measures for RT, 167
Moderation effect, 253
Modern economic theory, 142
Modern graph theory, 4
Modigliani and Miller theory, 199–200
Mongolia (foreign economic activities), 144
Mudharabah sukuk
, 196–198, 199–200, 201–202
Mukharabah sukuk
, 197
Multi-channel retailer, 76
Multiple business lines model, 98
Multiple regression dependence, 146
Murabahah sukuk
, 197
Musaqah sukuk
, 197
Musyarakah sukuk
, 197
Muzaraah sukuk
, 197
National Bureau of Statistics (NBS), 270
Natural environment conservation area, 59
Network(s), 2
analysis of Asia Pacific trade network, 9–18
composition, 9
evolution, 2
modularity, 8–9
relation to literature, 3–4
structures, 3–4
theoretical background, 4–9
Node degree for weighted node, 6
Non-borrowed financial resources, 142
Non-compliance to sharia law, 199
Non-diversified firms, 209
Non-governmental organizations, 242
Non-life insurance business, 91
Non-market
activities, 236, 254–258
strategy, 237–238
Non-stationary time series, 31
Non-tradable sukuk
, 197
Non-traditional monetary policy
data, 29–30
descriptive statistics of data for analysis, 31
methodology, 30–32
movement of three series, 30
results, 32–34
See also Working capital policy
Norm fit index (NFI), 45–46
North American Free Trade Agreement (NAFTA), 2
Observatory of Economic Complexity (2018), 144
Occupation and Employment Statistics
, 57–58
Ohlson and Juettner-Nauroth model, 125
Optimal compensation contracts, 97–98
Ordinary least squares (OLS), 31, 246–247
Organization’s behavioral theory, 240
Out-degree, 5
Outside-system connection, 266–267, 279–280
Overinvestment, 118, 120
Pair-wise analyses, 32, 33
Pairwise correlation
of COD, 129
of COE, 130
of firm performance, 130
Pakistani Stock Exchange (PSE), 118–119
Panel regression
before, during, and post-crises periods, 188–189
model, 169
moderation indicators, 177–188
results of risk-taking on volatility, 175–177, 179, 181–182
Paradox volatility, 304
Partnership-based sukuk
, 197
Path length and strength of network, 5–6
Pecking order theory, 196–197, 199–200
Performance
firm, 216, 218–229
performance-dependent variable, 253–254
pricing, 121
Policy
financing, 44–45
implication, 257–258
selection, 40
Political action committees (PACs), 236, 241, 242–243
Pool time series data, 99
Pooled OLS regression model, 99
Population shares, 64
Portfolio design, 166
Price–earnings–growth ratio technique, 125
Pricing, 74–75, 78
call option pricing formula, 192–193
credit risk model for, 29
performance, 121
Principle of duration, 159
Principle of full involvement, 159
Principle of mutual profit, 159
Probability level analysis, 45–46
Probability of default (PDs), 291
Probit model, 272
Product type, 98
Profit maximization, 56
Profitability, 40, 43, 44, 45, 126, 201–202
Prudential equity asset ratio, 292
Public policy-makers, 254–257, 266
Public–private partnership system, 158
Quadratic model, 123–124
Quality of business environment, 54–55, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality of residential environment, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality-adjusted average wage and rent estimation, 57–60
Quantile regression, 296–297, 298
Quantitative data, 45–46
Random-effect model, 99, 102
Rate of socioeconomic development (RED), 145
Reachability matrix development, 77, 79–80
Region-specific amenities, 55
Regression model, 55, 58–59, 201–204, 251, 274, 280
See also Panel regression
Reinsurance, 90, 91–92
demand, 93–94, 104
premium, 91
ROA and, 93
tax-exempt policy and, 92
Related corporate diversification, 211
Related diversification, 216–217, 222–226
Resource dependence theory, 123–124
Retailing management, 71–73
convenience stores, 72
department stores, 71–72
discount stores and superstores, 73
specialty stores, 73
supermarkets, 72–73
See also Strategic risk management
Return on assets (ROA), 43, 45, 93, 101, 104, 125, 130, 170, 216–217, 218–229, 238, 245–246, 254
Return on equity (ROE), 244, 255, 256, 257
Riba (usury), 196, 199, 202–204
Risk preference, 272–273, 274, 278
Risk-coping strategies, 267–268
Risk-taking (RT), 165–166
average, 175, 176
effect on company performance, 165–166
effect on volatility, 167
empirical measure for, 170–171
empirical results, 175–189
hypothesis developments, 167–169
methodology, 169–175
and multitude of firm’s performance measures, 166
propensity, 266
Riskier institutions contribute to lower stock return volatility, 167
with better CG, 168
with increasing information efficiency, 168
with larger firm size, 168
Robustness test, 253–254
Root mean square residual (RMR), 45–46
Rumelt diversification category, 214
Russia, financial development through cooperation with
cooperation for Central Asia and China, 142
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
Salam sukuk
, 197
SARA bonds. See Ijarah sukuk
Sharia compliance, 196–197, 201
Sharia economic activities in Indonesia, 196
Sharia Supervisory Board (SSB), 196–197, 199, 202–204
“Sink”, 5
Social network analysis, 3
Socioeconomic development, 142, 143, 149–151
China and countries of Central Asia, 143, 147, 148, 153
evaluation, 146
of modern economic systems, 143, 145–146
strategic course of, 154
“Soft money”, 238–239
Sovereign debt crisis (2010Q3-2012Q4), 293, 303
Specialty stores, 73
Spillover effects of money market turbulence, 28
Squared entropy index (SEI), 217, 219
Standard deviation (SD), 172–173
Standard Industrial Classification code (SIC code), 214
Standard operating procedures (SOPs), 240–241
State revenues (SR), 145
State Sharia Bonds (SBSN), 196
See also Japanese Government Bonds (JGBs)
Static OLS, 248–249
Stock Exchange of Thailand, 41, 45, 46–47
Stock market informational efficiency, 171–172
Stock return volatility, 166, 167–168
See also Firm volatility
Store(s)
convenience, 72
department, 71–72
design and display, 75–76
discount, 73
location, 74
specialty, 73
Strategic risk management, 90
assets display, 104
using Chinese database, 90–91
Chinese property and casualty industry, 104–105
data, 98–99
diversification, 94–95
econometric analysis, 99–102
econometric geographic, 107–108
econometric of business line, 106
econometric of financial factors in crisis, 110
econometric of industry Herfindal business line, 109
econometric of industry Herfindal region, 108
financial distress and leverage, 93–94
firm size, 92–93
intensity of competition in industry, 96–97
level of hedging in industry, 95
literature review, 91–98
market share, 94
number of firms, 96
product type, 98
ROA, 93
salary position in industry, 97–98
statistics of variables, 101
taxes, 91–92
variables of interest, 100
Strong board hypothesis, 167, 168–169, 177
Structural self-interaction matrix (SSIM), 77
Subprime crisis (2007Q3-2008Q3), 293, 294–295, 301–303
Subworking capital policy, 40
See also Working capital policy
Sukuk
, 196
descriptive statistics of research variables, 200–201
determinants of Sukuk issuance type, 199–200
issuance in Indonesia, 196–197
market, 196
regression, 201–204
research methods, 200
risk, 199
Sukuk-specific characteristics, 196–197, 199
theoretical framework and hypothesis development, 197–200
variable definitions and measurement, 201
Supply chain management distribution networks, 211, 212
Swap markets, 28
System GMM method, 218, 222, 246–247
Systemic expected shortfall (SES), 291–292
Systemically important financial institutions (SIFIs), 289
Tajikistan, foreign economic activities in, 144
Tax, 90, 91–92, 101, 104, 110, 158, 266
Tehran Stock Exchange, 42–43
Thai retail business modernization, 71
Thai retailers, CSFs for, 73–77
communication mix, 76–77
customer service, 74
location, 74
marketing channel, 76
merchandise management, 75
pricing, 74–75
store design and display, 75–76
Thai retailing, 70, 72
Tobin-Q
, 43, 45, 125, 215–217, 218–229
Total firm, 216–217
Tradable sukuk
, 197
Trade agreements, 2
Trade area, 74
Trade diversification, 294
Trade networks, 9
See also Asia Pacific trade network
Traditional finance theory, 165–166
Trans-Pacific Partnership (TPP), 2, 14–15
Transformation process, 2, 4
Transnational cooperation development, 158–159
Turkmenistan, foreign economic activities in, 144
24-hour convenience store concept, 72
Two-step system GMM estimator, 248–249
Unit cost curve, 56, 57
Unit root test, 30, 32–33
Unrelated corporate diversification, 211–212, 226–229
Unrelated diversification firm, 211, 214, 216–217
US Climate Action Partnership, 252–253
US financial services industry, 212–213
Uzbekistan, foreign economic activities in, 144
Value, 74–75
creation, 119
market, 200
value-based measurement, 244
Value-at-risk (VaR), 288, 289–290, 295–297, 304
Variance equation, 170
Variance inflation factor (VIF), 248
Variance minimization hedging strategy, 96–97
Visual merchandizing, 75–76
Visualization techniques, 2, 16
Volatility, 126, 127
index, 297
stock return, 166, 167–168
Volcker rule, 28
Voluntary disclosure, 122–123
Wage
estimating quality-adjusted average, 56–63
estimation, 55
theoretical model, 55–56
unemployment risk, 55
Wakalah sukuk
, 197
Working capital policy, 40, 41, 43
analysis and results, 46–48
conceptual framework, 44
financing policy, 40, 41, 42, 43
investment policy, 40, 41, 42–43
literature review and hypotheses, 41–44
research methodology, 44–46
sample and data, 45–46
variables, 44–45
See also Non-traditional monetary policy
World Business Council for Sustainable Development, 239, 252–253
Yield
JGB, 28, 29, 31
profits for firms, 211
in Sukuk
, 199, 202
Z score, 167, 170, 175–177
Zoning, 59
IBOVESPAReturn, 298
Ijarah sukuk
, 196–197, 198, 199–200, 201–202
In-degree, 5
In-system connection, 266–267, 279–280
Incremental fit index (IFI), 45–46
Independent variable
control variables, 126
insider-ownership, 126
in study, 44–45
Index of sustainable development (IS), 146
Indirect utility
curve, 56, 57
function, 56
Individual
demographic characteristics, 272
entrepreneurial engagement, 266
Indonesia
Sharia economic activities in, 196
Sukuk issuance in, 196–197
Sukuk market in, 196
Indonesia Stock Exchange working capital investment policy, 46–47
Industry
industry 4.0, 159
shares, 64–65
Inflation, 204
Information efficiency (IE), 177
Information hypothesis, 168
Infrastructure variable (CtrIm), 217
Insider-ownership (INS), 120, 126, 128–130
and COD, 120–121
and COE, 121–122
dependent variable, 124–125
estimation technique, 127
and firm performance, 123–124
Fisher-type test, 127–133
impact on firm performance, 118–119
independent variable, 126
literature review and hypotheses development, 119–124
samples and variables, 124
Institutional investors, 28
Instrument variable approach, 276
Intangibles, 126, 127
Integrated financial system, 288
Internal and external borrowings of economic system (SB), 145
Internal and external investments (IE investments), 145
International Monetary Fund (IMF), 2–3
Interpretive structural modeling (ISM), 70–71, 77
CSFs of Thai retailers, 82
prioritization and modeling of CSFs using, 79–81
Intra-firm production, 225–226
Inventory storage, 40
“Iron rice bowl”, 280
Islamic joint venture bonds (IJV bonds). See Partnership-based sukuk
Istishna sukuk
, 197
Japanese Government Bonds (JGBs), 27–28
markets, 29
yield, 30, 31–32
“Just-in-time” approach, 157
Kazakhstan (foreign economic activities), 144
Korea, 54
local attributes and composition of areas, 64–65
local public goods, 54
quality of business and residential environment, 56–63
Kwiatkowski–Phillips–Schmidt–Shin test (KPSS test), 30, 32–33, 34, 35
Kyrgyzstan (foreign economic activities), 144
Land rent, 55–56
Latin American banking industry, systemic risk in
corporate variables, 299–300
measures of systemic risk, 291–292
methodology, 295–298
model specifications and empirical results, 300–306
sample of analysis, 293–295
Law of Insurance, 91
Leverage, 93–94, 101, 104, 111, 126, 201–202, 299
Linkage factors, 78, 81–82, 83
Liquidity spread (LiqSpread), 297
Lobbying Disclosure Act (1995), 242–243
Local clustering coefficient, 7–8
Long-tailed insurance price, 98
Macroeconomic condition, 200
Macroprudential policy, 292
Malaysian
corporations, 208
firms, 208, 210
Malaysian Accounting Standards Board (MASB), 213
Malaysian Institute of Accountants (MIA), 213
Management area, 59
Managerial implication, 257–258
Managerial ownership, 118–119, 121
Marginal effects of consumption propensity, 274
Marginal expected shortfall (MES), 291–292
Market To Book Value (MBV), 126, 300
Market(ing), 208
activities, 257–258
channel, 76
imperfection factors, 91
leaders, 94
market-based indicators, 244
market-based measure, 215–216
participants, 289
share, 94, 101, 105
value, 40, 41, 43, 45, 47, 48, 200, 304–305
Matrice d’Impacts croises-multiplication appliqúe à un classement analysis (MICMA analysis), 78
analysis of each CSF, 81–82
Maturity mismatch (MM), 288, 289
Maysir (gambling), 202–204
Merchandise management, 75
Merton distance-to-default (DD), 167, 170–171, 192–193
Micro-level data, 270
Model-based measures for RT, 167
Moderation effect, 253
Modern economic theory, 142
Modern graph theory, 4
Modigliani and Miller theory, 199–200
Mongolia (foreign economic activities), 144
Mudharabah sukuk
, 196–198, 199–200, 201–202
Mukharabah sukuk
, 197
Multi-channel retailer, 76
Multiple business lines model, 98
Multiple regression dependence, 146
Murabahah sukuk
, 197
Musaqah sukuk
, 197
Musyarakah sukuk
, 197
Muzaraah sukuk
, 197
National Bureau of Statistics (NBS), 270
Natural environment conservation area, 59
Network(s), 2
analysis of Asia Pacific trade network, 9–18
composition, 9
evolution, 2
modularity, 8–9
relation to literature, 3–4
structures, 3–4
theoretical background, 4–9
Node degree for weighted node, 6
Non-borrowed financial resources, 142
Non-compliance to sharia law, 199
Non-diversified firms, 209
Non-governmental organizations, 242
Non-life insurance business, 91
Non-market
activities, 236, 254–258
strategy, 237–238
Non-stationary time series, 31
Non-tradable sukuk
, 197
Non-traditional monetary policy
data, 29–30
descriptive statistics of data for analysis, 31
methodology, 30–32
movement of three series, 30
results, 32–34
See also Working capital policy
Norm fit index (NFI), 45–46
North American Free Trade Agreement (NAFTA), 2
Observatory of Economic Complexity (2018), 144
Occupation and Employment Statistics
, 57–58
Ohlson and Juettner-Nauroth model, 125
Optimal compensation contracts, 97–98
Ordinary least squares (OLS), 31, 246–247
Organization’s behavioral theory, 240
Out-degree, 5
Outside-system connection, 266–267, 279–280
Overinvestment, 118, 120
Pair-wise analyses, 32, 33
Pairwise correlation
of COD, 129
of COE, 130
of firm performance, 130
Pakistani Stock Exchange (PSE), 118–119
Panel regression
before, during, and post-crises periods, 188–189
model, 169
moderation indicators, 177–188
results of risk-taking on volatility, 175–177, 179, 181–182
Paradox volatility, 304
Partnership-based sukuk
, 197
Path length and strength of network, 5–6
Pecking order theory, 196–197, 199–200
Performance
firm, 216, 218–229
performance-dependent variable, 253–254
pricing, 121
Policy
financing, 44–45
implication, 257–258
selection, 40
Political action committees (PACs), 236, 241, 242–243
Pool time series data, 99
Pooled OLS regression model, 99
Population shares, 64
Portfolio design, 166
Price–earnings–growth ratio technique, 125
Pricing, 74–75, 78
call option pricing formula, 192–193
credit risk model for, 29
performance, 121
Principle of duration, 159
Principle of full involvement, 159
Principle of mutual profit, 159
Probability level analysis, 45–46
Probability of default (PDs), 291
Probit model, 272
Product type, 98
Profit maximization, 56
Profitability, 40, 43, 44, 45, 126, 201–202
Prudential equity asset ratio, 292
Public policy-makers, 254–257, 266
Public–private partnership system, 158
Quadratic model, 123–124
Quality of business environment, 54–55, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality of residential environment, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality-adjusted average wage and rent estimation, 57–60
Quantile regression, 296–297, 298
Quantitative data, 45–46
Random-effect model, 99, 102
Rate of socioeconomic development (RED), 145
Reachability matrix development, 77, 79–80
Region-specific amenities, 55
Regression model, 55, 58–59, 201–204, 251, 274, 280
See also Panel regression
Reinsurance, 90, 91–92
demand, 93–94, 104
premium, 91
ROA and, 93
tax-exempt policy and, 92
Related corporate diversification, 211
Related diversification, 216–217, 222–226
Resource dependence theory, 123–124
Retailing management, 71–73
convenience stores, 72
department stores, 71–72
discount stores and superstores, 73
specialty stores, 73
supermarkets, 72–73
See also Strategic risk management
Return on assets (ROA), 43, 45, 93, 101, 104, 125, 130, 170, 216–217, 218–229, 238, 245–246, 254
Return on equity (ROE), 244, 255, 256, 257
Riba (usury), 196, 199, 202–204
Risk preference, 272–273, 274, 278
Risk-coping strategies, 267–268
Risk-taking (RT), 165–166
average, 175, 176
effect on company performance, 165–166
effect on volatility, 167
empirical measure for, 170–171
empirical results, 175–189
hypothesis developments, 167–169
methodology, 169–175
and multitude of firm’s performance measures, 166
propensity, 266
Riskier institutions contribute to lower stock return volatility, 167
with better CG, 168
with increasing information efficiency, 168
with larger firm size, 168
Robustness test, 253–254
Root mean square residual (RMR), 45–46
Rumelt diversification category, 214
Russia, financial development through cooperation with
cooperation for Central Asia and China, 142
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
Salam sukuk
, 197
SARA bonds. See Ijarah sukuk
Sharia compliance, 196–197, 201
Sharia economic activities in Indonesia, 196
Sharia Supervisory Board (SSB), 196–197, 199, 202–204
“Sink”, 5
Social network analysis, 3
Socioeconomic development, 142, 143, 149–151
China and countries of Central Asia, 143, 147, 148, 153
evaluation, 146
of modern economic systems, 143, 145–146
strategic course of, 154
“Soft money”, 238–239
Sovereign debt crisis (2010Q3-2012Q4), 293, 303
Specialty stores, 73
Spillover effects of money market turbulence, 28
Squared entropy index (SEI), 217, 219
Standard deviation (SD), 172–173
Standard Industrial Classification code (SIC code), 214
Standard operating procedures (SOPs), 240–241
State revenues (SR), 145
State Sharia Bonds (SBSN), 196
See also Japanese Government Bonds (JGBs)
Static OLS, 248–249
Stock Exchange of Thailand, 41, 45, 46–47
Stock market informational efficiency, 171–172
Stock return volatility, 166, 167–168
See also Firm volatility
Store(s)
convenience, 72
department, 71–72
design and display, 75–76
discount, 73
location, 74
specialty, 73
Strategic risk management, 90
assets display, 104
using Chinese database, 90–91
Chinese property and casualty industry, 104–105
data, 98–99
diversification, 94–95
econometric analysis, 99–102
econometric geographic, 107–108
econometric of business line, 106
econometric of financial factors in crisis, 110
econometric of industry Herfindal business line, 109
econometric of industry Herfindal region, 108
financial distress and leverage, 93–94
firm size, 92–93
intensity of competition in industry, 96–97
level of hedging in industry, 95
literature review, 91–98
market share, 94
number of firms, 96
product type, 98
ROA, 93
salary position in industry, 97–98
statistics of variables, 101
taxes, 91–92
variables of interest, 100
Strong board hypothesis, 167, 168–169, 177
Structural self-interaction matrix (SSIM), 77
Subprime crisis (2007Q3-2008Q3), 293, 294–295, 301–303
Subworking capital policy, 40
See also Working capital policy
Sukuk
, 196
descriptive statistics of research variables, 200–201
determinants of Sukuk issuance type, 199–200
issuance in Indonesia, 196–197
market, 196
regression, 201–204
research methods, 200
risk, 199
Sukuk-specific characteristics, 196–197, 199
theoretical framework and hypothesis development, 197–200
variable definitions and measurement, 201
Supply chain management distribution networks, 211, 212
Swap markets, 28
System GMM method, 218, 222, 246–247
Systemic expected shortfall (SES), 291–292
Systemically important financial institutions (SIFIs), 289
Tajikistan, foreign economic activities in, 144
Tax, 90, 91–92, 101, 104, 110, 158, 266
Tehran Stock Exchange, 42–43
Thai retail business modernization, 71
Thai retailers, CSFs for, 73–77
communication mix, 76–77
customer service, 74
location, 74
marketing channel, 76
merchandise management, 75
pricing, 74–75
store design and display, 75–76
Thai retailing, 70, 72
Tobin-Q
, 43, 45, 125, 215–217, 218–229
Total firm, 216–217
Tradable sukuk
, 197
Trade agreements, 2
Trade area, 74
Trade diversification, 294
Trade networks, 9
See also Asia Pacific trade network
Traditional finance theory, 165–166
Trans-Pacific Partnership (TPP), 2, 14–15
Transformation process, 2, 4
Transnational cooperation development, 158–159
Turkmenistan, foreign economic activities in, 144
24-hour convenience store concept, 72
Two-step system GMM estimator, 248–249
Unit cost curve, 56, 57
Unit root test, 30, 32–33
Unrelated corporate diversification, 211–212, 226–229
Unrelated diversification firm, 211, 214, 216–217
US Climate Action Partnership, 252–253
US financial services industry, 212–213
Uzbekistan, foreign economic activities in, 144
Value, 74–75
creation, 119
market, 200
value-based measurement, 244
Value-at-risk (VaR), 288, 289–290, 295–297, 304
Variance equation, 170
Variance inflation factor (VIF), 248
Variance minimization hedging strategy, 96–97
Visual merchandizing, 75–76
Visualization techniques, 2, 16
Volatility, 126, 127
index, 297
stock return, 166, 167–168
Volcker rule, 28
Voluntary disclosure, 122–123
Wage
estimating quality-adjusted average, 56–63
estimation, 55
theoretical model, 55–56
unemployment risk, 55
Wakalah sukuk
, 197
Working capital policy, 40, 41, 43
analysis and results, 46–48
conceptual framework, 44
financing policy, 40, 41, 42, 43
investment policy, 40, 41, 42–43
literature review and hypotheses, 41–44
research methodology, 44–46
sample and data, 45–46
variables, 44–45
See also Non-traditional monetary policy
World Business Council for Sustainable Development, 239, 252–253
Yield
JGB, 28, 29, 31
profits for firms, 211
in Sukuk
, 199, 202
Z score, 167, 170, 175–177
Zoning, 59
Kazakhstan (foreign economic activities), 144
Korea, 54
local attributes and composition of areas, 64–65
local public goods, 54
quality of business and residential environment, 56–63
Kwiatkowski–Phillips–Schmidt–Shin test (KPSS test), 30, 32–33, 34, 35
Kyrgyzstan (foreign economic activities), 144
Land rent, 55–56
Latin American banking industry, systemic risk in
corporate variables, 299–300
measures of systemic risk, 291–292
methodology, 295–298
model specifications and empirical results, 300–306
sample of analysis, 293–295
Law of Insurance, 91
Leverage, 93–94, 101, 104, 111, 126, 201–202, 299
Linkage factors, 78, 81–82, 83
Liquidity spread (LiqSpread), 297
Lobbying Disclosure Act (1995), 242–243
Local clustering coefficient, 7–8
Long-tailed insurance price, 98
Macroeconomic condition, 200
Macroprudential policy, 292
Malaysian
corporations, 208
firms, 208, 210
Malaysian Accounting Standards Board (MASB), 213
Malaysian Institute of Accountants (MIA), 213
Management area, 59
Managerial implication, 257–258
Managerial ownership, 118–119, 121
Marginal effects of consumption propensity, 274
Marginal expected shortfall (MES), 291–292
Market To Book Value (MBV), 126, 300
Market(ing), 208
activities, 257–258
channel, 76
imperfection factors, 91
leaders, 94
market-based indicators, 244
market-based measure, 215–216
participants, 289
share, 94, 101, 105
value, 40, 41, 43, 45, 47, 48, 200, 304–305
Matrice d’Impacts croises-multiplication appliqúe à un classement analysis (MICMA analysis), 78
analysis of each CSF, 81–82
Maturity mismatch (MM), 288, 289
Maysir (gambling), 202–204
Merchandise management, 75
Merton distance-to-default (DD), 167, 170–171, 192–193
Micro-level data, 270
Model-based measures for RT, 167
Moderation effect, 253
Modern economic theory, 142
Modern graph theory, 4
Modigliani and Miller theory, 199–200
Mongolia (foreign economic activities), 144
Mudharabah sukuk
, 196–198, 199–200, 201–202
Mukharabah sukuk
, 197
Multi-channel retailer, 76
Multiple business lines model, 98
Multiple regression dependence, 146
Murabahah sukuk
, 197
Musaqah sukuk
, 197
Musyarakah sukuk
, 197
Muzaraah sukuk
, 197
National Bureau of Statistics (NBS), 270
Natural environment conservation area, 59
Network(s), 2
analysis of Asia Pacific trade network, 9–18
composition, 9
evolution, 2
modularity, 8–9
relation to literature, 3–4
structures, 3–4
theoretical background, 4–9
Node degree for weighted node, 6
Non-borrowed financial resources, 142
Non-compliance to sharia law, 199
Non-diversified firms, 209
Non-governmental organizations, 242
Non-life insurance business, 91
Non-market
activities, 236, 254–258
strategy, 237–238
Non-stationary time series, 31
Non-tradable sukuk
, 197
Non-traditional monetary policy
data, 29–30
descriptive statistics of data for analysis, 31
methodology, 30–32
movement of three series, 30
results, 32–34
See also Working capital policy
Norm fit index (NFI), 45–46
North American Free Trade Agreement (NAFTA), 2
Observatory of Economic Complexity (2018), 144
Occupation and Employment Statistics
, 57–58
Ohlson and Juettner-Nauroth model, 125
Optimal compensation contracts, 97–98
Ordinary least squares (OLS), 31, 246–247
Organization’s behavioral theory, 240
Out-degree, 5
Outside-system connection, 266–267, 279–280
Overinvestment, 118, 120
Pair-wise analyses, 32, 33
Pairwise correlation
of COD, 129
of COE, 130
of firm performance, 130
Pakistani Stock Exchange (PSE), 118–119
Panel regression
before, during, and post-crises periods, 188–189
model, 169
moderation indicators, 177–188
results of risk-taking on volatility, 175–177, 179, 181–182
Paradox volatility, 304
Partnership-based sukuk
, 197
Path length and strength of network, 5–6
Pecking order theory, 196–197, 199–200
Performance
firm, 216, 218–229
performance-dependent variable, 253–254
pricing, 121
Policy
financing, 44–45
implication, 257–258
selection, 40
Political action committees (PACs), 236, 241, 242–243
Pool time series data, 99
Pooled OLS regression model, 99
Population shares, 64
Portfolio design, 166
Price–earnings–growth ratio technique, 125
Pricing, 74–75, 78
call option pricing formula, 192–193
credit risk model for, 29
performance, 121
Principle of duration, 159
Principle of full involvement, 159
Principle of mutual profit, 159
Probability level analysis, 45–46
Probability of default (PDs), 291
Probit model, 272
Product type, 98
Profit maximization, 56
Profitability, 40, 43, 44, 45, 126, 201–202
Prudential equity asset ratio, 292
Public policy-makers, 254–257, 266
Public–private partnership system, 158
Quadratic model, 123–124
Quality of business environment, 54–55, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality of residential environment, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality-adjusted average wage and rent estimation, 57–60
Quantile regression, 296–297, 298
Quantitative data, 45–46
Random-effect model, 99, 102
Rate of socioeconomic development (RED), 145
Reachability matrix development, 77, 79–80
Region-specific amenities, 55
Regression model, 55, 58–59, 201–204, 251, 274, 280
See also Panel regression
Reinsurance, 90, 91–92
demand, 93–94, 104
premium, 91
ROA and, 93
tax-exempt policy and, 92
Related corporate diversification, 211
Related diversification, 216–217, 222–226
Resource dependence theory, 123–124
Retailing management, 71–73
convenience stores, 72
department stores, 71–72
discount stores and superstores, 73
specialty stores, 73
supermarkets, 72–73
See also Strategic risk management
Return on assets (ROA), 43, 45, 93, 101, 104, 125, 130, 170, 216–217, 218–229, 238, 245–246, 254
Return on equity (ROE), 244, 255, 256, 257
Riba (usury), 196, 199, 202–204
Risk preference, 272–273, 274, 278
Risk-coping strategies, 267–268
Risk-taking (RT), 165–166
average, 175, 176
effect on company performance, 165–166
effect on volatility, 167
empirical measure for, 170–171
empirical results, 175–189
hypothesis developments, 167–169
methodology, 169–175
and multitude of firm’s performance measures, 166
propensity, 266
Riskier institutions contribute to lower stock return volatility, 167
with better CG, 168
with increasing information efficiency, 168
with larger firm size, 168
Robustness test, 253–254
Root mean square residual (RMR), 45–46
Rumelt diversification category, 214
Russia, financial development through cooperation with
cooperation for Central Asia and China, 142
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
Salam sukuk
, 197
SARA bonds. See Ijarah sukuk
Sharia compliance, 196–197, 201
Sharia economic activities in Indonesia, 196
Sharia Supervisory Board (SSB), 196–197, 199, 202–204
“Sink”, 5
Social network analysis, 3
Socioeconomic development, 142, 143, 149–151
China and countries of Central Asia, 143, 147, 148, 153
evaluation, 146
of modern economic systems, 143, 145–146
strategic course of, 154
“Soft money”, 238–239
Sovereign debt crisis (2010Q3-2012Q4), 293, 303
Specialty stores, 73
Spillover effects of money market turbulence, 28
Squared entropy index (SEI), 217, 219
Standard deviation (SD), 172–173
Standard Industrial Classification code (SIC code), 214
Standard operating procedures (SOPs), 240–241
State revenues (SR), 145
State Sharia Bonds (SBSN), 196
See also Japanese Government Bonds (JGBs)
Static OLS, 248–249
Stock Exchange of Thailand, 41, 45, 46–47
Stock market informational efficiency, 171–172
Stock return volatility, 166, 167–168
See also Firm volatility
Store(s)
convenience, 72
department, 71–72
design and display, 75–76
discount, 73
location, 74
specialty, 73
Strategic risk management, 90
assets display, 104
using Chinese database, 90–91
Chinese property and casualty industry, 104–105
data, 98–99
diversification, 94–95
econometric analysis, 99–102
econometric geographic, 107–108
econometric of business line, 106
econometric of financial factors in crisis, 110
econometric of industry Herfindal business line, 109
econometric of industry Herfindal region, 108
financial distress and leverage, 93–94
firm size, 92–93
intensity of competition in industry, 96–97
level of hedging in industry, 95
literature review, 91–98
market share, 94
number of firms, 96
product type, 98
ROA, 93
salary position in industry, 97–98
statistics of variables, 101
taxes, 91–92
variables of interest, 100
Strong board hypothesis, 167, 168–169, 177
Structural self-interaction matrix (SSIM), 77
Subprime crisis (2007Q3-2008Q3), 293, 294–295, 301–303
Subworking capital policy, 40
See also Working capital policy
Sukuk
, 196
descriptive statistics of research variables, 200–201
determinants of Sukuk issuance type, 199–200
issuance in Indonesia, 196–197
market, 196
regression, 201–204
research methods, 200
risk, 199
Sukuk-specific characteristics, 196–197, 199
theoretical framework and hypothesis development, 197–200
variable definitions and measurement, 201
Supply chain management distribution networks, 211, 212
Swap markets, 28
System GMM method, 218, 222, 246–247
Systemic expected shortfall (SES), 291–292
Systemically important financial institutions (SIFIs), 289
Tajikistan, foreign economic activities in, 144
Tax, 90, 91–92, 101, 104, 110, 158, 266
Tehran Stock Exchange, 42–43
Thai retail business modernization, 71
Thai retailers, CSFs for, 73–77
communication mix, 76–77
customer service, 74
location, 74
marketing channel, 76
merchandise management, 75
pricing, 74–75
store design and display, 75–76
Thai retailing, 70, 72
Tobin-Q
, 43, 45, 125, 215–217, 218–229
Total firm, 216–217
Tradable sukuk
, 197
Trade agreements, 2
Trade area, 74
Trade diversification, 294
Trade networks, 9
See also Asia Pacific trade network
Traditional finance theory, 165–166
Trans-Pacific Partnership (TPP), 2, 14–15
Transformation process, 2, 4
Transnational cooperation development, 158–159
Turkmenistan, foreign economic activities in, 144
24-hour convenience store concept, 72
Two-step system GMM estimator, 248–249
Unit cost curve, 56, 57
Unit root test, 30, 32–33
Unrelated corporate diversification, 211–212, 226–229
Unrelated diversification firm, 211, 214, 216–217
US Climate Action Partnership, 252–253
US financial services industry, 212–213
Uzbekistan, foreign economic activities in, 144
Value, 74–75
creation, 119
market, 200
value-based measurement, 244
Value-at-risk (VaR), 288, 289–290, 295–297, 304
Variance equation, 170
Variance inflation factor (VIF), 248
Variance minimization hedging strategy, 96–97
Visual merchandizing, 75–76
Visualization techniques, 2, 16
Volatility, 126, 127
index, 297
stock return, 166, 167–168
Volcker rule, 28
Voluntary disclosure, 122–123
Wage
estimating quality-adjusted average, 56–63
estimation, 55
theoretical model, 55–56
unemployment risk, 55
Wakalah sukuk
, 197
Working capital policy, 40, 41, 43
analysis and results, 46–48
conceptual framework, 44
financing policy, 40, 41, 42, 43
investment policy, 40, 41, 42–43
literature review and hypotheses, 41–44
research methodology, 44–46
sample and data, 45–46
variables, 44–45
See also Non-traditional monetary policy
World Business Council for Sustainable Development, 239, 252–253
Yield
JGB, 28, 29, 31
profits for firms, 211
in Sukuk
, 199, 202
Z score, 167, 170, 175–177
Zoning, 59
Macroeconomic condition, 200
Macroprudential policy, 292
Malaysian
corporations, 208
firms, 208, 210
Malaysian Accounting Standards Board (MASB), 213
Malaysian Institute of Accountants (MIA), 213
Management area, 59
Managerial implication, 257–258
Managerial ownership, 118–119, 121
Marginal effects of consumption propensity, 274
Marginal expected shortfall (MES), 291–292
Market To Book Value (MBV), 126, 300
Market(ing), 208
activities, 257–258
channel, 76
imperfection factors, 91
leaders, 94
market-based indicators, 244
market-based measure, 215–216
participants, 289
share, 94, 101, 105
value, 40, 41, 43, 45, 47, 48, 200, 304–305
Matrice d’Impacts croises-multiplication appliqúe à un classement analysis (MICMA analysis), 78
analysis of each CSF, 81–82
Maturity mismatch (MM), 288, 289
Maysir (gambling), 202–204
Merchandise management, 75
Merton distance-to-default (DD), 167, 170–171, 192–193
Micro-level data, 270
Model-based measures for RT, 167
Moderation effect, 253
Modern economic theory, 142
Modern graph theory, 4
Modigliani and Miller theory, 199–200
Mongolia (foreign economic activities), 144
Mudharabah sukuk
, 196–198, 199–200, 201–202
Mukharabah sukuk
, 197
Multi-channel retailer, 76
Multiple business lines model, 98
Multiple regression dependence, 146
Murabahah sukuk
, 197
Musaqah sukuk
, 197
Musyarakah sukuk
, 197
Muzaraah sukuk
, 197
National Bureau of Statistics (NBS), 270
Natural environment conservation area, 59
Network(s), 2
analysis of Asia Pacific trade network, 9–18
composition, 9
evolution, 2
modularity, 8–9
relation to literature, 3–4
structures, 3–4
theoretical background, 4–9
Node degree for weighted node, 6
Non-borrowed financial resources, 142
Non-compliance to sharia law, 199
Non-diversified firms, 209
Non-governmental organizations, 242
Non-life insurance business, 91
Non-market
activities, 236, 254–258
strategy, 237–238
Non-stationary time series, 31
Non-tradable sukuk
, 197
Non-traditional monetary policy
data, 29–30
descriptive statistics of data for analysis, 31
methodology, 30–32
movement of three series, 30
results, 32–34
See also Working capital policy
Norm fit index (NFI), 45–46
North American Free Trade Agreement (NAFTA), 2
Observatory of Economic Complexity (2018), 144
Occupation and Employment Statistics
, 57–58
Ohlson and Juettner-Nauroth model, 125
Optimal compensation contracts, 97–98
Ordinary least squares (OLS), 31, 246–247
Organization’s behavioral theory, 240
Out-degree, 5
Outside-system connection, 266–267, 279–280
Overinvestment, 118, 120
Pair-wise analyses, 32, 33
Pairwise correlation
of COD, 129
of COE, 130
of firm performance, 130
Pakistani Stock Exchange (PSE), 118–119
Panel regression
before, during, and post-crises periods, 188–189
model, 169
moderation indicators, 177–188
results of risk-taking on volatility, 175–177, 179, 181–182
Paradox volatility, 304
Partnership-based sukuk
, 197
Path length and strength of network, 5–6
Pecking order theory, 196–197, 199–200
Performance
firm, 216, 218–229
performance-dependent variable, 253–254
pricing, 121
Policy
financing, 44–45
implication, 257–258
selection, 40
Political action committees (PACs), 236, 241, 242–243
Pool time series data, 99
Pooled OLS regression model, 99
Population shares, 64
Portfolio design, 166
Price–earnings–growth ratio technique, 125
Pricing, 74–75, 78
call option pricing formula, 192–193
credit risk model for, 29
performance, 121
Principle of duration, 159
Principle of full involvement, 159
Principle of mutual profit, 159
Probability level analysis, 45–46
Probability of default (PDs), 291
Probit model, 272
Product type, 98
Profit maximization, 56
Profitability, 40, 43, 44, 45, 126, 201–202
Prudential equity asset ratio, 292
Public policy-makers, 254–257, 266
Public–private partnership system, 158
Quadratic model, 123–124
Quality of business environment, 54–55, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality of residential environment, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality-adjusted average wage and rent estimation, 57–60
Quantile regression, 296–297, 298
Quantitative data, 45–46
Random-effect model, 99, 102
Rate of socioeconomic development (RED), 145
Reachability matrix development, 77, 79–80
Region-specific amenities, 55
Regression model, 55, 58–59, 201–204, 251, 274, 280
See also Panel regression
Reinsurance, 90, 91–92
demand, 93–94, 104
premium, 91
ROA and, 93
tax-exempt policy and, 92
Related corporate diversification, 211
Related diversification, 216–217, 222–226
Resource dependence theory, 123–124
Retailing management, 71–73
convenience stores, 72
department stores, 71–72
discount stores and superstores, 73
specialty stores, 73
supermarkets, 72–73
See also Strategic risk management
Return on assets (ROA), 43, 45, 93, 101, 104, 125, 130, 170, 216–217, 218–229, 238, 245–246, 254
Return on equity (ROE), 244, 255, 256, 257
Riba (usury), 196, 199, 202–204
Risk preference, 272–273, 274, 278
Risk-coping strategies, 267–268
Risk-taking (RT), 165–166
average, 175, 176
effect on company performance, 165–166
effect on volatility, 167
empirical measure for, 170–171
empirical results, 175–189
hypothesis developments, 167–169
methodology, 169–175
and multitude of firm’s performance measures, 166
propensity, 266
Riskier institutions contribute to lower stock return volatility, 167
with better CG, 168
with increasing information efficiency, 168
with larger firm size, 168
Robustness test, 253–254
Root mean square residual (RMR), 45–46
Rumelt diversification category, 214
Russia, financial development through cooperation with
cooperation for Central Asia and China, 142
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
Salam sukuk
, 197
SARA bonds. See Ijarah sukuk
Sharia compliance, 196–197, 201
Sharia economic activities in Indonesia, 196
Sharia Supervisory Board (SSB), 196–197, 199, 202–204
“Sink”, 5
Social network analysis, 3
Socioeconomic development, 142, 143, 149–151
China and countries of Central Asia, 143, 147, 148, 153
evaluation, 146
of modern economic systems, 143, 145–146
strategic course of, 154
“Soft money”, 238–239
Sovereign debt crisis (2010Q3-2012Q4), 293, 303
Specialty stores, 73
Spillover effects of money market turbulence, 28
Squared entropy index (SEI), 217, 219
Standard deviation (SD), 172–173
Standard Industrial Classification code (SIC code), 214
Standard operating procedures (SOPs), 240–241
State revenues (SR), 145
State Sharia Bonds (SBSN), 196
See also Japanese Government Bonds (JGBs)
Static OLS, 248–249
Stock Exchange of Thailand, 41, 45, 46–47
Stock market informational efficiency, 171–172
Stock return volatility, 166, 167–168
See also Firm volatility
Store(s)
convenience, 72
department, 71–72
design and display, 75–76
discount, 73
location, 74
specialty, 73
Strategic risk management, 90
assets display, 104
using Chinese database, 90–91
Chinese property and casualty industry, 104–105
data, 98–99
diversification, 94–95
econometric analysis, 99–102
econometric geographic, 107–108
econometric of business line, 106
econometric of financial factors in crisis, 110
econometric of industry Herfindal business line, 109
econometric of industry Herfindal region, 108
financial distress and leverage, 93–94
firm size, 92–93
intensity of competition in industry, 96–97
level of hedging in industry, 95
literature review, 91–98
market share, 94
number of firms, 96
product type, 98
ROA, 93
salary position in industry, 97–98
statistics of variables, 101
taxes, 91–92
variables of interest, 100
Strong board hypothesis, 167, 168–169, 177
Structural self-interaction matrix (SSIM), 77
Subprime crisis (2007Q3-2008Q3), 293, 294–295, 301–303
Subworking capital policy, 40
See also Working capital policy
Sukuk
, 196
descriptive statistics of research variables, 200–201
determinants of Sukuk issuance type, 199–200
issuance in Indonesia, 196–197
market, 196
regression, 201–204
research methods, 200
risk, 199
Sukuk-specific characteristics, 196–197, 199
theoretical framework and hypothesis development, 197–200
variable definitions and measurement, 201
Supply chain management distribution networks, 211, 212
Swap markets, 28
System GMM method, 218, 222, 246–247
Systemic expected shortfall (SES), 291–292
Systemically important financial institutions (SIFIs), 289
Tajikistan, foreign economic activities in, 144
Tax, 90, 91–92, 101, 104, 110, 158, 266
Tehran Stock Exchange, 42–43
Thai retail business modernization, 71
Thai retailers, CSFs for, 73–77
communication mix, 76–77
customer service, 74
location, 74
marketing channel, 76
merchandise management, 75
pricing, 74–75
store design and display, 75–76
Thai retailing, 70, 72
Tobin-Q
, 43, 45, 125, 215–217, 218–229
Total firm, 216–217
Tradable sukuk
, 197
Trade agreements, 2
Trade area, 74
Trade diversification, 294
Trade networks, 9
See also Asia Pacific trade network
Traditional finance theory, 165–166
Trans-Pacific Partnership (TPP), 2, 14–15
Transformation process, 2, 4
Transnational cooperation development, 158–159
Turkmenistan, foreign economic activities in, 144
24-hour convenience store concept, 72
Two-step system GMM estimator, 248–249
Unit cost curve, 56, 57
Unit root test, 30, 32–33
Unrelated corporate diversification, 211–212, 226–229
Unrelated diversification firm, 211, 214, 216–217
US Climate Action Partnership, 252–253
US financial services industry, 212–213
Uzbekistan, foreign economic activities in, 144
Value, 74–75
creation, 119
market, 200
value-based measurement, 244
Value-at-risk (VaR), 288, 289–290, 295–297, 304
Variance equation, 170
Variance inflation factor (VIF), 248
Variance minimization hedging strategy, 96–97
Visual merchandizing, 75–76
Visualization techniques, 2, 16
Volatility, 126, 127
index, 297
stock return, 166, 167–168
Volcker rule, 28
Voluntary disclosure, 122–123
Wage
estimating quality-adjusted average, 56–63
estimation, 55
theoretical model, 55–56
unemployment risk, 55
Wakalah sukuk
, 197
Working capital policy, 40, 41, 43
analysis and results, 46–48
conceptual framework, 44
financing policy, 40, 41, 42, 43
investment policy, 40, 41, 42–43
literature review and hypotheses, 41–44
research methodology, 44–46
sample and data, 45–46
variables, 44–45
See also Non-traditional monetary policy
World Business Council for Sustainable Development, 239, 252–253
Yield
JGB, 28, 29, 31
profits for firms, 211
in Sukuk
, 199, 202
Z score, 167, 170, 175–177
Zoning, 59
Observatory of Economic Complexity (2018), 144
Occupation and Employment Statistics
, 57–58
Ohlson and Juettner-Nauroth model, 125
Optimal compensation contracts, 97–98
Ordinary least squares (OLS), 31, 246–247
Organization’s behavioral theory, 240
Out-degree, 5
Outside-system connection, 266–267, 279–280
Overinvestment, 118, 120
Pair-wise analyses, 32, 33
Pairwise correlation
of COD, 129
of COE, 130
of firm performance, 130
Pakistani Stock Exchange (PSE), 118–119
Panel regression
before, during, and post-crises periods, 188–189
model, 169
moderation indicators, 177–188
results of risk-taking on volatility, 175–177, 179, 181–182
Paradox volatility, 304
Partnership-based sukuk
, 197
Path length and strength of network, 5–6
Pecking order theory, 196–197, 199–200
Performance
firm, 216, 218–229
performance-dependent variable, 253–254
pricing, 121
Policy
financing, 44–45
implication, 257–258
selection, 40
Political action committees (PACs), 236, 241, 242–243
Pool time series data, 99
Pooled OLS regression model, 99
Population shares, 64
Portfolio design, 166
Price–earnings–growth ratio technique, 125
Pricing, 74–75, 78
call option pricing formula, 192–193
credit risk model for, 29
performance, 121
Principle of duration, 159
Principle of full involvement, 159
Principle of mutual profit, 159
Probability level analysis, 45–46
Probability of default (PDs), 291
Probit model, 272
Product type, 98
Profit maximization, 56
Profitability, 40, 43, 44, 45, 126, 201–202
Prudential equity asset ratio, 292
Public policy-makers, 254–257, 266
Public–private partnership system, 158
Quadratic model, 123–124
Quality of business environment, 54–55, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality of residential environment, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality-adjusted average wage and rent estimation, 57–60
Quantile regression, 296–297, 298
Quantitative data, 45–46
Random-effect model, 99, 102
Rate of socioeconomic development (RED), 145
Reachability matrix development, 77, 79–80
Region-specific amenities, 55
Regression model, 55, 58–59, 201–204, 251, 274, 280
See also Panel regression
Reinsurance, 90, 91–92
demand, 93–94, 104
premium, 91
ROA and, 93
tax-exempt policy and, 92
Related corporate diversification, 211
Related diversification, 216–217, 222–226
Resource dependence theory, 123–124
Retailing management, 71–73
convenience stores, 72
department stores, 71–72
discount stores and superstores, 73
specialty stores, 73
supermarkets, 72–73
See also Strategic risk management
Return on assets (ROA), 43, 45, 93, 101, 104, 125, 130, 170, 216–217, 218–229, 238, 245–246, 254
Return on equity (ROE), 244, 255, 256, 257
Riba (usury), 196, 199, 202–204
Risk preference, 272–273, 274, 278
Risk-coping strategies, 267–268
Risk-taking (RT), 165–166
average, 175, 176
effect on company performance, 165–166
effect on volatility, 167
empirical measure for, 170–171
empirical results, 175–189
hypothesis developments, 167–169
methodology, 169–175
and multitude of firm’s performance measures, 166
propensity, 266
Riskier institutions contribute to lower stock return volatility, 167
with better CG, 168
with increasing information efficiency, 168
with larger firm size, 168
Robustness test, 253–254
Root mean square residual (RMR), 45–46
Rumelt diversification category, 214
Russia, financial development through cooperation with
cooperation for Central Asia and China, 142
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
Salam sukuk
, 197
SARA bonds. See Ijarah sukuk
Sharia compliance, 196–197, 201
Sharia economic activities in Indonesia, 196
Sharia Supervisory Board (SSB), 196–197, 199, 202–204
“Sink”, 5
Social network analysis, 3
Socioeconomic development, 142, 143, 149–151
China and countries of Central Asia, 143, 147, 148, 153
evaluation, 146
of modern economic systems, 143, 145–146
strategic course of, 154
“Soft money”, 238–239
Sovereign debt crisis (2010Q3-2012Q4), 293, 303
Specialty stores, 73
Spillover effects of money market turbulence, 28
Squared entropy index (SEI), 217, 219
Standard deviation (SD), 172–173
Standard Industrial Classification code (SIC code), 214
Standard operating procedures (SOPs), 240–241
State revenues (SR), 145
State Sharia Bonds (SBSN), 196
See also Japanese Government Bonds (JGBs)
Static OLS, 248–249
Stock Exchange of Thailand, 41, 45, 46–47
Stock market informational efficiency, 171–172
Stock return volatility, 166, 167–168
See also Firm volatility
Store(s)
convenience, 72
department, 71–72
design and display, 75–76
discount, 73
location, 74
specialty, 73
Strategic risk management, 90
assets display, 104
using Chinese database, 90–91
Chinese property and casualty industry, 104–105
data, 98–99
diversification, 94–95
econometric analysis, 99–102
econometric geographic, 107–108
econometric of business line, 106
econometric of financial factors in crisis, 110
econometric of industry Herfindal business line, 109
econometric of industry Herfindal region, 108
financial distress and leverage, 93–94
firm size, 92–93
intensity of competition in industry, 96–97
level of hedging in industry, 95
literature review, 91–98
market share, 94
number of firms, 96
product type, 98
ROA, 93
salary position in industry, 97–98
statistics of variables, 101
taxes, 91–92
variables of interest, 100
Strong board hypothesis, 167, 168–169, 177
Structural self-interaction matrix (SSIM), 77
Subprime crisis (2007Q3-2008Q3), 293, 294–295, 301–303
Subworking capital policy, 40
See also Working capital policy
Sukuk
, 196
descriptive statistics of research variables, 200–201
determinants of Sukuk issuance type, 199–200
issuance in Indonesia, 196–197
market, 196
regression, 201–204
research methods, 200
risk, 199
Sukuk-specific characteristics, 196–197, 199
theoretical framework and hypothesis development, 197–200
variable definitions and measurement, 201
Supply chain management distribution networks, 211, 212
Swap markets, 28
System GMM method, 218, 222, 246–247
Systemic expected shortfall (SES), 291–292
Systemically important financial institutions (SIFIs), 289
Tajikistan, foreign economic activities in, 144
Tax, 90, 91–92, 101, 104, 110, 158, 266
Tehran Stock Exchange, 42–43
Thai retail business modernization, 71
Thai retailers, CSFs for, 73–77
communication mix, 76–77
customer service, 74
location, 74
marketing channel, 76
merchandise management, 75
pricing, 74–75
store design and display, 75–76
Thai retailing, 70, 72
Tobin-Q
, 43, 45, 125, 215–217, 218–229
Total firm, 216–217
Tradable sukuk
, 197
Trade agreements, 2
Trade area, 74
Trade diversification, 294
Trade networks, 9
See also Asia Pacific trade network
Traditional finance theory, 165–166
Trans-Pacific Partnership (TPP), 2, 14–15
Transformation process, 2, 4
Transnational cooperation development, 158–159
Turkmenistan, foreign economic activities in, 144
24-hour convenience store concept, 72
Two-step system GMM estimator, 248–249
Unit cost curve, 56, 57
Unit root test, 30, 32–33
Unrelated corporate diversification, 211–212, 226–229
Unrelated diversification firm, 211, 214, 216–217
US Climate Action Partnership, 252–253
US financial services industry, 212–213
Uzbekistan, foreign economic activities in, 144
Value, 74–75
creation, 119
market, 200
value-based measurement, 244
Value-at-risk (VaR), 288, 289–290, 295–297, 304
Variance equation, 170
Variance inflation factor (VIF), 248
Variance minimization hedging strategy, 96–97
Visual merchandizing, 75–76
Visualization techniques, 2, 16
Volatility, 126, 127
index, 297
stock return, 166, 167–168
Volcker rule, 28
Voluntary disclosure, 122–123
Wage
estimating quality-adjusted average, 56–63
estimation, 55
theoretical model, 55–56
unemployment risk, 55
Wakalah sukuk
, 197
Working capital policy, 40, 41, 43
analysis and results, 46–48
conceptual framework, 44
financing policy, 40, 41, 42, 43
investment policy, 40, 41, 42–43
literature review and hypotheses, 41–44
research methodology, 44–46
sample and data, 45–46
variables, 44–45
See also Non-traditional monetary policy
World Business Council for Sustainable Development, 239, 252–253
Yield
JGB, 28, 29, 31
profits for firms, 211
in Sukuk
, 199, 202
Z score, 167, 170, 175–177
Zoning, 59
Quadratic model, 123–124
Quality of business environment, 54–55, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality of residential environment, 56–63
indices, 60–61
preferred locations, 61–63
theoretic model, 56–57
Quality-adjusted average wage and rent estimation, 57–60
Quantile regression, 296–297, 298
Quantitative data, 45–46
Random-effect model, 99, 102
Rate of socioeconomic development (RED), 145
Reachability matrix development, 77, 79–80
Region-specific amenities, 55
Regression model, 55, 58–59, 201–204, 251, 274, 280
See also Panel regression
Reinsurance, 90, 91–92
demand, 93–94, 104
premium, 91
ROA and, 93
tax-exempt policy and, 92
Related corporate diversification, 211
Related diversification, 216–217, 222–226
Resource dependence theory, 123–124
Retailing management, 71–73
convenience stores, 72
department stores, 71–72
discount stores and superstores, 73
specialty stores, 73
supermarkets, 72–73
See also Strategic risk management
Return on assets (ROA), 43, 45, 93, 101, 104, 125, 130, 170, 216–217, 218–229, 238, 245–246, 254
Return on equity (ROE), 244, 255, 256, 257
Riba (usury), 196, 199, 202–204
Risk preference, 272–273, 274, 278
Risk-coping strategies, 267–268
Risk-taking (RT), 165–166
average, 175, 176
effect on company performance, 165–166
effect on volatility, 167
empirical measure for, 170–171
empirical results, 175–189
hypothesis developments, 167–169
methodology, 169–175
and multitude of firm’s performance measures, 166
propensity, 266
Riskier institutions contribute to lower stock return volatility, 167
with better CG, 168
with increasing information efficiency, 168
with larger firm size, 168
Robustness test, 253–254
Root mean square residual (RMR), 45–46
Rumelt diversification category, 214
Russia, financial development through cooperation with
cooperation for Central Asia and China, 142
economic implications, 146–155
economic system development, 142
literature review, 143–144
methodology, 144–146
recommendations for attracting additional financial resources, 155–160
Salam sukuk
, 197
SARA bonds. See Ijarah sukuk
Sharia compliance, 196–197, 201
Sharia economic activities in Indonesia, 196
Sharia Supervisory Board (SSB), 196–197, 199, 202–204
“Sink”, 5
Social network analysis, 3
Socioeconomic development, 142, 143, 149–151
China and countries of Central Asia, 143, 147, 148, 153
evaluation, 146
of modern economic systems, 143, 145–146
strategic course of, 154
“Soft money”, 238–239
Sovereign debt crisis (2010Q3-2012Q4), 293, 303
Specialty stores, 73
Spillover effects of money market turbulence, 28
Squared entropy index (SEI), 217, 219
Standard deviation (SD), 172–173
Standard Industrial Classification code (SIC code), 214
Standard operating procedures (SOPs), 240–241
State revenues (SR), 145
State Sharia Bonds (SBSN), 196
See also Japanese Government Bonds (JGBs)
Static OLS, 248–249
Stock Exchange of Thailand, 41, 45, 46–47
Stock market informational efficiency, 171–172
Stock return volatility, 166, 167–168
See also Firm volatility
Store(s)
convenience, 72
department, 71–72
design and display, 75–76
discount, 73
location, 74
specialty, 73
Strategic risk management, 90
assets display, 104
using Chinese database, 90–91
Chinese property and casualty industry, 104–105
data, 98–99
diversification, 94–95
econometric analysis, 99–102
econometric geographic, 107–108
econometric of business line, 106
econometric of financial factors in crisis, 110
econometric of industry Herfindal business line, 109
econometric of industry Herfindal region, 108
financial distress and leverage, 93–94
firm size, 92–93
intensity of competition in industry, 96–97
level of hedging in industry, 95
literature review, 91–98
market share, 94
number of firms, 96
product type, 98
ROA, 93
salary position in industry, 97–98
statistics of variables, 101
taxes, 91–92
variables of interest, 100
Strong board hypothesis, 167, 168–169, 177
Structural self-interaction matrix (SSIM), 77
Subprime crisis (2007Q3-2008Q3), 293, 294–295, 301–303
Subworking capital policy, 40
See also Working capital policy
Sukuk
, 196
descriptive statistics of research variables, 200–201
determinants of Sukuk issuance type, 199–200
issuance in Indonesia, 196–197
market, 196
regression, 201–204
research methods, 200
risk, 199
Sukuk-specific characteristics, 196–197, 199
theoretical framework and hypothesis development, 197–200
variable definitions and measurement, 201
Supply chain management distribution networks, 211, 212
Swap markets, 28
System GMM method, 218, 222, 246–247
Systemic expected shortfall (SES), 291–292
Systemically important financial institutions (SIFIs), 289
Tajikistan, foreign economic activities in, 144
Tax, 90, 91–92, 101, 104, 110, 158, 266
Tehran Stock Exchange, 42–43
Thai retail business modernization, 71
Thai retailers, CSFs for, 73–77
communication mix, 76–77
customer service, 74
location, 74
marketing channel, 76
merchandise management, 75
pricing, 74–75
store design and display, 75–76
Thai retailing, 70, 72
Tobin-Q
, 43, 45, 125, 215–217, 218–229
Total firm, 216–217
Tradable sukuk
, 197
Trade agreements, 2
Trade area, 74
Trade diversification, 294
Trade networks, 9
See also Asia Pacific trade network
Traditional finance theory, 165–166
Trans-Pacific Partnership (TPP), 2, 14–15
Transformation process, 2, 4
Transnational cooperation development, 158–159
Turkmenistan, foreign economic activities in, 144
24-hour convenience store concept, 72
Two-step system GMM estimator, 248–249
Unit cost curve, 56, 57
Unit root test, 30, 32–33
Unrelated corporate diversification, 211–212, 226–229
Unrelated diversification firm, 211, 214, 216–217
US Climate Action Partnership, 252–253
US financial services industry, 212–213
Uzbekistan, foreign economic activities in, 144
Value, 74–75
creation, 119
market, 200
value-based measurement, 244
Value-at-risk (VaR), 288, 289–290, 295–297, 304
Variance equation, 170
Variance inflation factor (VIF), 248
Variance minimization hedging strategy, 96–97
Visual merchandizing, 75–76
Visualization techniques, 2, 16
Volatility, 126, 127
index, 297
stock return, 166, 167–168
Volcker rule, 28
Voluntary disclosure, 122–123
Wage
estimating quality-adjusted average, 56–63
estimation, 55
theoretical model, 55–56
unemployment risk, 55
Wakalah sukuk
, 197
Working capital policy, 40, 41, 43
analysis and results, 46–48
conceptual framework, 44
financing policy, 40, 41, 42, 43
investment policy, 40, 41, 42–43
literature review and hypotheses, 41–44
research methodology, 44–46
sample and data, 45–46
variables, 44–45
See also Non-traditional monetary policy
World Business Council for Sustainable Development, 239, 252–253
Yield
JGB, 28, 29, 31
profits for firms, 211
in Sukuk
, 199, 202
Z score, 167, 170, 175–177
Zoning, 59
Salam sukuk
, 197
SARA bonds. See Ijarah sukuk
Sharia compliance, 196–197, 201
Sharia economic activities in Indonesia, 196
Sharia Supervisory Board (SSB), 196–197, 199, 202–204
“Sink”, 5
Social network analysis, 3
Socioeconomic development, 142, 143, 149–151
China and countries of Central Asia, 143, 147, 148, 153
evaluation, 146
of modern economic systems, 143, 145–146
strategic course of, 154
“Soft money”, 238–239
Sovereign debt crisis (2010Q3-2012Q4), 293, 303
Specialty stores, 73
Spillover effects of money market turbulence, 28
Squared entropy index (SEI), 217, 219
Standard deviation (SD), 172–173
Standard Industrial Classification code (SIC code), 214
Standard operating procedures (SOPs), 240–241
State revenues (SR), 145
State Sharia Bonds (SBSN), 196
See also Japanese Government Bonds (JGBs)
Static OLS, 248–249
Stock Exchange of Thailand, 41, 45, 46–47
Stock market informational efficiency, 171–172
Stock return volatility, 166, 167–168
See also Firm volatility
Store(s)
convenience, 72
department, 71–72
design and display, 75–76
discount, 73
location, 74
specialty, 73
Strategic risk management, 90
assets display, 104
using Chinese database, 90–91
Chinese property and casualty industry, 104–105
data, 98–99
diversification, 94–95
econometric analysis, 99–102
econometric geographic, 107–108
econometric of business line, 106
econometric of financial factors in crisis, 110
econometric of industry Herfindal business line, 109
econometric of industry Herfindal region, 108
financial distress and leverage, 93–94
firm size, 92–93
intensity of competition in industry, 96–97
level of hedging in industry, 95
literature review, 91–98
market share, 94
number of firms, 96
product type, 98
ROA, 93
salary position in industry, 97–98
statistics of variables, 101
taxes, 91–92
variables of interest, 100
Strong board hypothesis, 167, 168–169, 177
Structural self-interaction matrix (SSIM), 77
Subprime crisis (2007Q3-2008Q3), 293, 294–295, 301–303
Subworking capital policy, 40
See also Working capital policy
Sukuk
, 196
descriptive statistics of research variables, 200–201
determinants of Sukuk issuance type, 199–200
issuance in Indonesia, 196–197
market, 196
regression, 201–204
research methods, 200
risk, 199
Sukuk-specific characteristics, 196–197, 199
theoretical framework and hypothesis development, 197–200
variable definitions and measurement, 201
Supply chain management distribution networks, 211, 212
Swap markets, 28
System GMM method, 218, 222, 246–247
Systemic expected shortfall (SES), 291–292
Systemically important financial institutions (SIFIs), 289
Tajikistan, foreign economic activities in, 144
Tax, 90, 91–92, 101, 104, 110, 158, 266
Tehran Stock Exchange, 42–43
Thai retail business modernization, 71
Thai retailers, CSFs for, 73–77
communication mix, 76–77
customer service, 74
location, 74
marketing channel, 76
merchandise management, 75
pricing, 74–75
store design and display, 75–76
Thai retailing, 70, 72
Tobin-Q
, 43, 45, 125, 215–217, 218–229
Total firm, 216–217
Tradable sukuk
, 197
Trade agreements, 2
Trade area, 74
Trade diversification, 294
Trade networks, 9
See also Asia Pacific trade network
Traditional finance theory, 165–166
Trans-Pacific Partnership (TPP), 2, 14–15
Transformation process, 2, 4
Transnational cooperation development, 158–159
Turkmenistan, foreign economic activities in, 144
24-hour convenience store concept, 72
Two-step system GMM estimator, 248–249
Unit cost curve, 56, 57
Unit root test, 30, 32–33
Unrelated corporate diversification, 211–212, 226–229
Unrelated diversification firm, 211, 214, 216–217
US Climate Action Partnership, 252–253
US financial services industry, 212–213
Uzbekistan, foreign economic activities in, 144
Value, 74–75
creation, 119
market, 200
value-based measurement, 244
Value-at-risk (VaR), 288, 289–290, 295–297, 304
Variance equation, 170
Variance inflation factor (VIF), 248
Variance minimization hedging strategy, 96–97
Visual merchandizing, 75–76
Visualization techniques, 2, 16
Volatility, 126, 127
index, 297
stock return, 166, 167–168
Volcker rule, 28
Voluntary disclosure, 122–123
Wage
estimating quality-adjusted average, 56–63
estimation, 55
theoretical model, 55–56
unemployment risk, 55
Wakalah sukuk
, 197
Working capital policy, 40, 41, 43
analysis and results, 46–48
conceptual framework, 44
financing policy, 40, 41, 42, 43
investment policy, 40, 41, 42–43
literature review and hypotheses, 41–44
research methodology, 44–46
sample and data, 45–46
variables, 44–45
See also Non-traditional monetary policy
World Business Council for Sustainable Development, 239, 252–253
Yield
JGB, 28, 29, 31
profits for firms, 211
in Sukuk
, 199, 202
Z score, 167, 170, 175–177
Zoning, 59
Unit cost curve, 56, 57
Unit root test, 30, 32–33
Unrelated corporate diversification, 211–212, 226–229
Unrelated diversification firm, 211, 214, 216–217
US Climate Action Partnership, 252–253
US financial services industry, 212–213
Uzbekistan, foreign economic activities in, 144
Value, 74–75
creation, 119
market, 200
value-based measurement, 244
Value-at-risk (VaR), 288, 289–290, 295–297, 304
Variance equation, 170
Variance inflation factor (VIF), 248
Variance minimization hedging strategy, 96–97
Visual merchandizing, 75–76
Visualization techniques, 2, 16
Volatility, 126, 127
index, 297
stock return, 166, 167–168
Volcker rule, 28
Voluntary disclosure, 122–123
Wage
estimating quality-adjusted average, 56–63
estimation, 55
theoretical model, 55–56
unemployment risk, 55
Wakalah sukuk
, 197
Working capital policy, 40, 41, 43
analysis and results, 46–48
conceptual framework, 44
financing policy, 40, 41, 42, 43
investment policy, 40, 41, 42–43
literature review and hypotheses, 41–44
research methodology, 44–46
sample and data, 45–46
variables, 44–45
See also Non-traditional monetary policy
World Business Council for Sustainable Development, 239, 252–253
Yield
JGB, 28, 29, 31
profits for firms, 211
in Sukuk
, 199, 202
Z score, 167, 170, 175–177
Zoning, 59
Wage
estimating quality-adjusted average, 56–63
estimation, 55
theoretical model, 55–56
unemployment risk, 55
Wakalah sukuk
, 197
Working capital policy, 40, 41, 43
analysis and results, 46–48
conceptual framework, 44
financing policy, 40, 41, 42, 43
investment policy, 40, 41, 42–43
literature review and hypotheses, 41–44
research methodology, 44–46
sample and data, 45–46
variables, 44–45
See also Non-traditional monetary policy
World Business Council for Sustainable Development, 239, 252–253
Yield
JGB, 28, 29, 31
profits for firms, 211
in Sukuk
, 199, 202
Z score, 167, 170, 175–177
Zoning, 59
Z score, 167, 170, 175–177
Zoning, 59
- Prelims
- Chapter 1 Asia Pacific, Trans-Pacific Partnership, and the United States: The Network Perspective
- Chapter 2 Short-term Cross-currency Basis Swap and Japanese Government Bond Markets under Non-traditional Monetary Policy
- Chapter 3 The Impacts of Working Capital Policy on Firms’ Performances: An Empirical Study on Thai Listed Companies in Production Sector
- Chapter 4 Local Amenities and Geographic Disparity in Population and Industry Distribution in Korea
- Chapter 5 Modeling of Critical Success Factors of Thai Retailers: Interpretive Structural Modeling Approach
- Chapter 6 Strategic Risk Management in the Chinese Property and Casualty Insurance Industry
- Chapter 7 Economic Consequences of Insider-ownership: An Emerging Market Perspective
- Chapter 8 Central Asia and China: Financial Development through Cooperation with Russia
- Chapter 9 The Impact of Risk-taking on Firm Volatility
- Chapter 10 What Determines Sukuk Issuance Type in Indonesia?
- Chapter 11 Does the Method of Corporate Diversification Matter to Firm’s Performance?
- Chapter 12 Corporate Political Activity and Financial Performance: A Corporate Social Responsibility Perspective
- Chapter 13 Consumption Propensity and Entrepreneurship: Evidence from China
- Chapter 14 Explaining Systemic Risk in Latin American Banking Industry over 2002–2015
- Index