Duc Hong Vo, Loan Thi Hong Van, Hien Thi Thu Hoang and Ngoc Phu Tran
Intellectual capital, corporate governance (CG) and corporate social responsibility (CSR) are generally considered three essential pillars to enhance firms’ performance in the…
Abstract
Purpose
Intellectual capital, corporate governance (CG) and corporate social responsibility (CSR) are generally considered three essential pillars to enhance firms’ performance in the developed world. However, in developing countries such as Vietnam, these pillars have not received sufficient attention from practitioners. In addition, this study aims to investigate the interrelationship between these three essential pillars and their combined effects, in the Vietnamese context.
Design/methodology/approach
This study uses data collected from the annual reports of the largest listed banks in Vietnam from 2011 to 2018. Intellectual capital is measured using a modified value-added intellectual coefficient model. CG is proxied by board remuneration. This study measures CSR using the ratio between charitable contributions and profit before tax. In addition, this study uses the generalized method of moments to overcome several econometric problems exhibited in previous empirical studies.
Findings
Results indicate that CG and CSR have a positive impact on intellectual capital. Intellectual capital plays a moderating role in the relationship between CG and CSR. Moreover, CG and intellectual capital in the previous year significantly affect CG in the current year.
Practical implications
Based on the findings from this study, policy implications have emerged for bank executives and policymakers in formulating and implementing policy about the balance between intellectual capital accumulation, CG and CSR.
Originality/value
To the best of the authors’ knowledge, this is the first empirical study conducted to examine the interrelationship between intellectual capital, CG and CSR and their combined effects in emerging countries such as Vietnam.
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Ngoc Phu Tran, Loan Thi-Hong Van and Duc Hong Vo
This paper aims to examine the relationship between corporate governance and intellectual capital in the context of Vietnam. In this paper, corporate governance is proxied by…
Abstract
Purpose
This paper aims to examine the relationship between corporate governance and intellectual capital in the context of Vietnam. In this paper, corporate governance is proxied by various characteristics, including board size, a number of independent members in the board, board remuneration, major shareholder holding more than 20 per cent of the outstanding shares and duality of the CEO. In addition, intellectual capital is measured using the modified value-added intellectual coefficient model (MVAIC).
Design/methodology/approach
The study uses data of 45 Vietnamese listed firms during 2011-2018. The MVAIC model is used incorporating four components, namely, human capital, structural capital, capital used and relational capital. In addition, GMM regression technique is used in this paper.
Findings
Empirical findings from this paper indicate that key characteristics of corporate governance, except for board remuneration, may provide a negative effect on the efficient use of intellectual capital.
Research limitations/implications
Intellectual capital emerges as a new field of research that has not been widely examined in emerging countries such as Vietnam. As such, there have not been many studies focusing on understanding intellectual capital and its role in the performance of enterprises. Further studies can evaluate the relationship between intellectual capital and corporate performance, capital structure, corporate value and social responsibility. This study is limited to listed companies in Vietnam because of data limitations in an emerging market. Studies in the future should extend the sample and/or compare differences between manufacturing enterprises and financial institutions, or between countries.
Practical implications
Findings from this paper provide a valuable framework for executives, managers and policymakers in managing corporate governance and intellectual capital within the Vietnamese context.
Originality/value
To the best of the authors’ knowledge, this is the first empirical study that has been conducted to examine the relationship between corporate governance and intellectual capital in the context of Vietnam.
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Duc Hong Vo, Ngoc Phu Tran, Hien Thi-Thu Hoang and Loan Thi-Hong Van
This paper aims to provide empirical evidence and policy implications on the link between corporate social responsibility, financial inclusion and financial performance of the…
Abstract
Purpose
This paper aims to provide empirical evidence and policy implications on the link between corporate social responsibility, financial inclusion and financial performance of the banking sector in an emerging market.
Design/methodology/approach
This study uses data collected from the annual reports of 13 listed banks in Vietnam from 2011 to 2019. CSR is proxied by the ratio between charitable contributions and bank profits. Besides, this study uses the number of branches and the number of agents as the proxies for a level of financial inclusion. The generalized method of moments and various tests are used to ensure the robustness of the findings.
Findings
Findings in this study indicate that CSR activities do matter, and they contribute positively to financial inclusion. In addition, the bank’s size is also associated with an increased level of financial inclusion.
Practical implications
Findings from this study provide important implications for bank executives and policymakers in Vietnam in managing and extending CSR activities with the view of supporting and enhancing financial inclusion.
Originality/value
To the best of the author’s knowledge, this is the first empirical study in the context of the banking sector in Vietnam in which the impact of CSR activities and financial performance of the banking sector on financial inclusion at the bank level is examined.
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Cong Doanh Duong, Ngoc Thang Ha, Thi Loan Le, Thi Lan Phuong Nguyen, Thi Hong Tham Nguyen and Thanh Van Pham
This study aims to achieve two objectives: First, to investigate the moderating influences of Coronavirus-19 (Covid-19)-related psychological distress on the process of…
Abstract
Purpose
This study aims to achieve two objectives: First, to investigate the moderating influences of Coronavirus-19 (Covid-19)-related psychological distress on the process of entrepreneurial cognition; and second, to close the gap between entrepreneurial intention and behavior of higher education institutions students.
Design/methodology/approach
Scales from previous studies have been adopted to develop a questionnaire survey. An online survey questionnaire then is carried out to collect the data; the final sample includes 405 university students. The validity and reliability of scales are tested throughout Cronbach's alpha and confirmatory factor analysis. Hypothesized correlations were then tested via structural equation modeling.
Findings
The results confirm the important roles of perceived behavioral control and entrepreneurial intention in encouraging entrepreneurial behavior, whereas attitude toward entrepreneurship is strongly and positively related to intention to engage in a business venture. Yet, subjective norms are not found to have an impact on entrepreneurial intention. Entrepreneurial attitude-intention link has been negatively moderated by Covid-19-related psychological distress. Also, Covid-19-related psychological distress can lessen the entrepreneurial intention–behavior linkage of higher education institutions students.
Practical implications
The study provides useful recommendations for practitioners such as educators and policymakers to promote higher education institutions students' entrepreneurship, especially in the global crisis context of the spread of Covid-19.
Social implications
Being aware of the effects of the Covid-19 pandemic on the entrepreneurship process and translations from intention into behavior to become entrepreneurs provide useful insights to nascent entrepreneurs, community and our society to limit the negative influence of the Covid-19 pandemic and help us overcome this crisis.
Originality/value
Addressing the entrepreneurial intention–behavior gap is considered as the biggest contribution of this study. Moreover, the association between perceived behavioral control and entrepreneurial behavior, overlooked by previous studies, is also tested in this study. Furthermore, the findings confirm that psychological distress caused by Covid-19 can inhibit the cognitive process of entrepreneurship.
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Huu Minh Nguyen, Thi Hong Tran and Thi Thanh Loan Tran
“The world needs science, science needs women” is the message given by UNESCO in the program for the development of women in science” (UNESCO, 2017). In Vietnam, women’s…
Abstract
“The world needs science, science needs women” is the message given by UNESCO in the program for the development of women in science” (UNESCO, 2017). In Vietnam, women’s participation and achievements in scientific research is considered a great and important resource for industrialization and modernization. Even so, are there gender differences in scientific achievement in the social science research institutes in Vietnam? What factors influence the scientific achievement of female social researchers? The answers will be based on data from a 2017 survey with a sample of 756 researchers, of which 77.6% were female. The survey was conducted by the Vietnam Academy of Social Sciences, a leading, ministry-level national center for the social sciences in Vietnam. This chapter analyzed the scientific achievements of researchers through their position as principal investigators of research projects and their publications, and factors that may impact this. Bivariate and multivariate analyses of factors that may affect the scientific achievement of researchers found that gender differences in academic achievement in the social sciences in Vietnam was still prevalent. Female researchers’ scientific achievements were lower than those of their male counterparts. The contribution to science of Vietnamese female researchers was limited by many different factors; the most important were the academic rank of the researchers and gender stereotype that considered housework the responsibility of women.
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Thuy Thi Cam Nguyen, Anh Thi Hong Le and Cong Van Nguyen
Although there are many efforts within organisations to improve the financial performance of business processes, the results of studies on the impact of internal factors on the…
Abstract
Purpose
Although there are many efforts within organisations to improve the financial performance of business processes, the results of studies on the impact of internal factors on the financial performance of business processes in an organisation are inconsistent, even contradictory. Therefore, this paper aims to examine the extent and trends of the impact of factors inside companies on the financial performance of business processes and discover lessons learned to improve the financial performance of business processes.
Design/methodology/approach
This analysis was done through a quantitative study of listed companies in Vietnam. Pooled OLS regression, REM, FEM and robust regression were performed on 566 companies.
Findings
The results provide four main findings. First, firm size and operational efficiency strongly correlate with financial performance. Second, financial leverage has a negative, significant connection with financial performance. Third, net working capital has a positive and meaningful relationship with EPS and a negative association with ROE. Fourth, liquidity does not have any significant association with financial performance.
Research limitations/implications
This study only restricts the internal factors affecting the financial performance of business processes without mentioning the external factors. Furthermore, this study is limited to one emerging country and has not been compared with companies in different countries.
Practical implications
The findings of this study may help inform users inside and outside the organisation to understand the factors that affect the financial performance of business processes. As a result, information users will focus more on aspects that can improve their financial performance to make informed decisions.
Originality/value
This study has many differences compared to previous studies. First, it focuses on the internal factors affecting the financial performance of business processes in non-financial listed companies in Vietnam, which has an emerging economy. First, it focuses on the internal factors affecting the financial performance of business processes in non-financial listed companies in Vietnam, which has an emerging economy. Second, this study analyses data in companies' financial statements for the ten years from 2012 to 2021, when the Vietnamese economy, in particular, and the world economy experienced many fluctuations due to the impact of the post-financial crisis 2007–2008 and the COVID-19 pandemic. Third, this study provides empirical evidence to support RBV, RDT theories and the trade-off theory of capital structure.
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Rovier Djeudja and Yang Salamon
The purpose of this study is to evaluate the contribution of the business climate on the sustainability of Cameroonian small- and medium-sized enterprises (SMEs) in times of…
Abstract
Purpose
The purpose of this study is to evaluate the contribution of the business climate on the sustainability of Cameroonian small- and medium-sized enterprises (SMEs) in times of coronavirus disease 2019 (COVID-19).
Design/methodology/approach
To achieve this purpose, the study proceed with a quantitative analysis using the simple LOGIT model on a sample of 52 individuals.
Findings
Through the administration of questionnaires and estimations, results reveal that certain variables such as the taxation regime of the enterprise, the different types of taxes paid by the enterprise, the frequency of payment of income tax, the nature of the training of managers, the clauses of the debt contracts with banks/EMFs (Microfinance institution), the time taken to apply for a loan from the bank and the nature of the manager’s training have a negative influence on the sustainability of Cameroonian SMEs during COVID-19, while others such as the evolution of financial profitability in the context of the coronavirus pandemic in Cameroon, the company’s sector of activity and the main methods of financing the SME have a positive influence on the sustainability of Cameroonian SMEs during COVID-19 pandemic. The improvement of the business climate by the institutional authorities is, therefore, essential in the perspective of an eventual development of the country; the said development cannot take place without capitalizing on the potential for income and job creation by SMEs.
Research limitations/implications
The first limitation is related to the size of the sample and also to the specificity of our study. In fact, the study is conducted among individuals/actors likely to have access to information on the business climate and sustainability of Cameroonian SMEs at the time of COVID-19 encountered in the city of Yaoundé. In this context, the sample size is considered to be small (52). This element does not immediately allow the results of the present research to be generalized to all regions where SMEs are located in Cameroon, as other criteria or other elements must still be taken into account and the results obtained must, therefore, be interpreted with caution. This research could be deepened in the future by considering more business climate variables on the one hand and a larger sample size extended to all cities in Cameroon on the other.
Practical implications
The results of this research confirm the importance of institutional bodies establishing a rigorous policy of support for businesses. Such a policy would contribute to improving the business climate and extend beyond mere resilience.
Originality/value
The originality of this study lies in the fact that it looks at the sustainability of SMEs in the context of the COVID-19 pandemic in Cameroon using a simple LOGIT econometric model.
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Thi Hong An Thai and Minh Tri Hoang
Using imbalanced panel data of nonfinancial Vietnamese listed firms from 2005 to 2021, this paper explores the potential effect of ownership on firms' cash levels.
Abstract
Purpose
Using imbalanced panel data of nonfinancial Vietnamese listed firms from 2005 to 2021, this paper explores the potential effect of ownership on firms' cash levels.
Design/methodology/approach
Two hypotheses are tested using different methods, including pooled ordinary least squares (POLS) and system-generalized method of moments (GMM), to investigate the ownership–cash holding relationship for various firm scenarios. Both book and market measures of the cash ratio are examined.
Findings
Results show that foreign and state ownership encourages firms to increase their cash reserves. The positive relationship between ownership and cash holding is, especially, pronounced for firms in the financial deficit.
Research limitations/implications
This research suggests that in this emerging market, outside ownership substantially accelerates cash to hedge against the unexpected issues caused by poor investor protection, low political accountability and information asymmetry.
Originality/value
The study contributes to the existing understanding of the relationship between ownership and corporate cash holdings in the context of a typical emerging market. Besides, it expands the existing knowledge to the extent of such relations in the event of a financial shortage.
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Binh Nguyen The, Tran Thi Kim Oanh, Quoc Dinh Le and Thi Hong Ha Nguyen
This article aims to study the nonlinear effect of financial inclusion on tax revenue of 21 low financial development countries (LFDCs) and 22 high financial development countries…
Abstract
Purpose
This article aims to study the nonlinear effect of financial inclusion on tax revenue of 21 low financial development countries (LFDCs) and 22 high financial development countries (HFDCs) from 2004 to 2020.
Design/methodology/approach
The study calculates the world average financial development index (
Findings
Using the Bayesian method, the results show that financial inclusion negatively impacts tax revenue with an absolute probability of 100% in LFDCs and a lower probability of 92.45% in HFDCs. Additionally, the financial inclusion threshold at LFDCs is 18.90. Below this threshold, financial inclusion promotes tax revenue with a 100% probability. On the contrary, when financial inclusion exceeds the threshold, it will have a negative effect on tax revenue. Similarly, the financial inclusion threshold at HFDCs is 20.14, with a probability of 92.45%.
Originality/value
To the best of the authors’ knowledge, this is the first paper to examine the nonlinear impact of financial inclusion on tax revenue in high and low financial development countries.
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Ba Hung Nguyen, Nhat Bao Quyen Pham and Thi Hong Ha Do
As small and medium-size enterprises (SMEs) rely on board heterogeneity to raise capital and establish credit relationships with suppliers, it is crucial to investigate the board…
Abstract
Purpose
As small and medium-size enterprises (SMEs) rely on board heterogeneity to raise capital and establish credit relationships with suppliers, it is crucial to investigate the board heterogeneity effect on their survival. In this study, the first research objective is to provide further insights on the discriminatory power of survival approaches, specifically on semiparametric approaches in survival analysis that take into consideration both fixed and time-varying covariates. The second objective is to examine the relationship between board size and SME liquidation by using resource-based theories that focus on measuring board heterogeneity through board size.
Design/methodology/approach
This paper uses survival approaches for modelling SMEs survival by examining the survival of more than 68,000 SMEs in the UK covering the before, onset and post 2008 crisis periods and with firms’ demographic characteristics and financial indicators. Survival analysis is effective to examine multiple causes of default/failure and how do particular circumstances or characteristics increase or decrease the probability of survival. Survival analysis brings more advantages than linear-based regression approaches by effectively handling the censoring of observations.
Findings
Motivated by resource-based theories, the authors find that the likelihood of a firm being liquidated robustly increases with a reduction in its board heterogeneity measured through board size. This finding is held under non-parametric, parametric, and semiparametric approaches using survival analysis. The research shows better causal explanation and discriminatory power on using the semiparametric-based survival analysis approach considering both fixed and time-varying covariates.
Practical implications
This study demonstrates the better performance and causal explanation of the survival model using time-varying covariates compared with those using fixed covariates. In addition, the authors delve into board heterogeneity, measuring through the board size to investigate how the number of board directors affects the firm liquidation, it is also a factor worth considering when a small and medium firm is forming its board.
Originality/value
This research investigates the board heterogeneity effect on firm survival using survival analysis approaches. The authors contribute to the knowledge on board heterogeneity of SMEs. Specifically, the size of more than three directors could help reduce SMEs liquidation risk. This result gives a recommendation to firms or start-ups when forming their director board. This research also provides further insights on the applicability of survival models with unique UK SMEs data covering the before, onset and post 2008 crisis periods.