Matteo P. Arena and Nga Q. Nguyen
The purpose of this paper is to study the relation between compensation clawbacks and lawsuits and analyze how these two corporate disciplinary forces interact. This paper…
Abstract
Purpose
The purpose of this paper is to study the relation between compensation clawbacks and lawsuits and analyze how these two corporate disciplinary forces interact. This paper hypothesizes that by allowing firms to recoup compensation from managers who breach their fiduciary duty, clawbacks provide a form of discipline that potentially reduces the likelihood of managerial wrongdoing, which, in turn, lowers the risk of corporate lawsuits.
Design/methodology/approach
This paper identifies whether or not a company in the S&P 1500 had a clawback policy between 2007 and 2014 by searching the company filings and press releases. The authors also construct different proxies for litigation risk and lawsuit outcomes using the Audit Analytics Database. They then perform a variety of empirical tests to examine the association between clawbacks and litigation risk and the association between clawbacks and litigation outcomes.
Findings
This paper finds that firms with higher litigation risk are more likely to adopt a clawback policy. In addition, after the adoption of clawback provisions, litigation risk significantly declines, suggesting that clawback policies are effective in reducing the likelihood of corporate lawsuits. Furthermore, firms with clawback policies are approximately 50 per cent more likely to have lawsuits against them dismissed or settled for lower amounts (approximately 12 per cent lower).
Practical implications
The findings of this paper provide insights to the efficacy of a current change in compensation regulation, the mandatory clawback adoption requirement by the Dodd–Frank Act of 2010.
Originality/value
This paper contributes to the literature on both clawbacks and litigation, as it is the first to analyze the relation between the two.
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Muntazir Hussain, Usman Bashir and Ahmad Raza Bilal
The purpose of this paper is to investigate the risk-taking channel of monetary policy transmission in the Chinese banking industry. This study also investigates the role of…
Abstract
Purpose
The purpose of this paper is to investigate the risk-taking channel of monetary policy transmission in the Chinese banking industry. This study also investigates the role of various other factors in the risk-taking channel.
Design/methodology/approach
This study used panel data from 2000 to 2012, and a dynamic panel model (Difference GMM) was applied.
Findings
The empirical findings of this paper suggest that loose monetary policy rates increase bank risk-taking. Unlike previous studies, the results of this paper suggest that the bank-specific factors (size, liquidity and capitalization) do not significantly affect the risk-taking channel. However, the market structure does have a stabilizing effect on monetary policy transmission and the risk-taking channel. Higher market power weakens the risk-taking channel of monetary policy transmission.
Practical implications
Of significance to the policymakers' point of view is that loose monetary policy induces banks to take excessive risks. However, such effects can be mitigated by encouraging a proper level of market power in banking markets.
Originality/value
This study investigated the risk-taking channel of monetary policy transmission for the Chinese banking industry. Due to the unique features of the People's Bank of China (PBC, Central Bank of China) policy, this study also contributes to the literature by comparing price-based and quantity-based monetary policy tools and their effectiveness in financial stability and monetary policy transmission. Furthermore, the role of market structure is also investigated in the risk-taking channel.
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Tien Dung Luu, Khanh Huyen Nguyen Mai, Cuong Chi Huynh, Ngoc Huong Thi Phan, Nga Thanh Le and Thao Nguyen Diep Le
This study aims to reveal the impact mechanism of franchisor-owned resources, franchise relationship quality and franchisee's dynamic capabilities on franchisee performance, with…
Abstract
Purpose
This study aims to reveal the impact mechanism of franchisor-owned resources, franchise relationship quality and franchisee's dynamic capabilities on franchisee performance, with the moderating role of cultural sensitivity.
Design/methodology/approach
The sample consisted of 290 middle managers and team leaders at 113 hotels and food and beverage settings participating in the international- and domestic franchises in Ho Chi Minh City, Vietnam. A partial least squares structural equation model (PLS-SEM) is used to analyse the data.
Findings
The result reveals that franchisor-owned resources, franchise relationship quality and franchisee's dynamic capabilities significantly impacted franchisee performance. Furthermore, cultural sensitivity has a beneficial role in the effect of franchise relationship quality on franchisee performance.
Originality/value
This study develops an integrated analytical framework of franchisee performance from the franchisee's perspective, contributing to integrating international business theory in franchising studies, namely the resource-based view, dynamic capability view and relationship-marketing theory.
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Manh-Hoang Do, Yung-Fu Huang and Thi-Nga Do
This article aims to evaluate total quality management (TQM)-enabling factors' impact on corporate social responsibility (CSR) activities and business performance through evidence…
Abstract
Purpose
This article aims to evaluate total quality management (TQM)-enabling factors' impact on corporate social responsibility (CSR) activities and business performance through evidence from Vietnamese coffee firms.
Design/methodology/approach
Based on collecting data via in-depth face-to-face interviews with employees, who are working in the Vietnamese coffee companies. The partial least squares structural equation modeling (PLS-SEM) approach has been employed to investigate the relationship among the TQM-enabling factors, corporate social performance (CSP) and business performance.
Findings
A total of 13 TQM-enabling factors have been identified and divided into two categories, namely human and functional. The statistical results revealed a positive signal to remarkably enhance CSP and business performance by adopting those TQM-enabling factors into Vietnamese coffee firms.
Research limitations/implications
The framework model of this research should be evaluated in different contexts worldwide or in another sector that can further identify the TQM-enabling factor and the correlation among these constructs.
Practical implications
This article provides top managers of Vietnamese coffee firms with knowledge of TQM-enabling factors that may enable them to meet superior performance, including CSP, finance and reputation.
Originality/value
This is a unique study to employ the approach into the Vietnamese coffee industry context up-to-date, which is one of the essential sectors affecting Vietnam's sustainable development.
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Khoa Tien Tran, Nga Le and Phuong V. Nguyen
In response to increasing concerns about climate change and evolving public policies, consumer behaviour and attitudes are shifting towards the adoption of renewable energy…
Abstract
Purpose
In response to increasing concerns about climate change and evolving public policies, consumer behaviour and attitudes are shifting towards the adoption of renewable energy solutions like photovoltaic (PV) panel systems. This study aims to address this shift by developing a conceptual framework grounded in the Unified Theory of Acceptance and Use of Technology and Diffusion of Innovation theory. The framework identifies and analyses the factors influencing Vietnamese consumers’ decisions to install PV panels, focusing on the roles of consumer innovativeness, government incentives and social influence. By examining these dynamics, this study offers insights to inform policy in promoting renewable energy adoption.
Design/methodology/approach
Data from 339 Vietnamese households were analysed using SmartPLS 3.0 to test the proposed hypotheses. A structured questionnaire survey focused on consumer innovativeness, government incentives and social influence. The partial least squares structural equation modelling approach was used to evaluate the relationships between constructs.
Findings
The findings indicate that consumer innovativeness significantly predicts knowledge, sustainable lifestyles and attitudes towards solar PV panels. Moreover, household attitudes are influenced by government incentives and knowledge, but not by sustainable lifestyles. Crucially, the intention to install solar PV panels among Vietnamese households is positively affected by facilitating conditions, government incentives and social influence.
Originality/value
The results can assist government officials and policymakers in emerging markets in devising strategies to alleviate environmental burdens and facilitate a shift towards sustainability. Furthermore, by understanding the factors impacting the residents’ intention, public communication can be improved to raise awareness of environmental concerns and sustainable lifestyles, which results in the encouragement of the purchase and installation intention of solar panels.
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Hieu Thanh Nguyen, Thinh Gia Hoang, Loan Thi Quynh Nguyen, Giang Tinh Ngo Nguyen and Nga Thi Nguyen
This paper aims to explore how family culture can contribute to support the development of corporate social responsibility (CSR) initiatives in a Korean immigrant enterprise in…
Abstract
Purpose
This paper aims to explore how family culture can contribute to support the development of corporate social responsibility (CSR) initiatives in a Korean immigrant enterprise in Vietnam.
Design/methodology/approach
This research highlighted a critical case, in which entrepreneurs and most of the organisational members share a common family culture and the culture support management capability of an entrepreneur, during the introduction of a new organisation initiative. In addition, Bourdieu’s tripartite analytical framework of field, capitals and habitus was adopted to facilitate the case analysis.
Findings
Firstly, the motivation behind the development of CSR came from the intention to gain access to the local capital market. Secondly, family culture plays an important role in maintaining the support of organisational actors to support the decision of the entrepreneur.
Research limitations/implications
This research contributes to the emerging literature about CSR and immigrant entrepreneurship. This study sheds light on how family culture can aid the leadership of CSR initiatives and CSR practices in the context of the immigrant organisation.
Practical implications
This study identifies processes that immigrant entrepreneurs can use to inspire organisational members to engage in a new initiative in which organisational culture and norms can help to overcome challenges to enable engagement with a novel initiative.
Originality/value
This paper explains how family culture supports the leading role of an entrepreneur, in which the absolute pressures inherited from family values and traditions in the place of origin help an organisation to overcome existing barriers such as lack of time and financial support towards a new initiative.
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Thi-Nga Do, Vimal Kumar and Manh-Hoang Do
The purpose of this paper is to identify the critical parameters of the Vietnam coffee industry and develop a comprehensive structural relationship to rank them for effective…
Abstract
Purpose
The purpose of this paper is to identify the critical parameters of the Vietnam coffee industry and develop a comprehensive structural relationship to rank them for effective sustainable development.
Design/methodology/approach
The team of ten experts, having experience of over eight years in the field of various coffee industries in Vietnam, was created to give scores to multiple parameters. Technique for order of preference by similarity to ideal solution (TOPSIS) technique is used to develop the model for fifteen key parameters and then to rank them.
Findings
From the data analysis and results, marketing and brand innovation, product quality, strategic planning and implementation have emerged as top three key parameters while new technology development, supply chain and logistics management, and alliance-joint venture are identified as the bottom three parameters. The findings provide a rank of parameters that help to other coffee industries to identify their key parameters. Besides, the key parameters defined as necessary inputs show the firms more active and well-prepared comprised of ten companies.
Practical implications
The key parameters of the success of any organization are essential contributions. Aiming to improve organizational performance, metrics should be identified as the source of strength to achieve high productivity, profitability and sustainable business performance.
Originality/value
The emphasis of study on key parameters will help organizations to achieve competitive advantage and high productivity for high sustainability in an organizational context.
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Tam Nguyen, Tuan Le-Anh, Nga Nguyen Thi Hong, Lien Thi Huong Nguyen and Thanh Nguyen Xuan
This paper studies the factors affecting digital transformation in accounting of small and medium enterprises (SMEs) and then influencing accounting information quality.
Abstract
Purpose
This paper studies the factors affecting digital transformation in accounting of small and medium enterprises (SMEs) and then influencing accounting information quality.
Design/methodology/approach
The research model includes seven independent variables, namely organizational culture, competitive pressure, employee's awareness, readiness of the information technology systems, organization's mindfulness, alignment of the organization’s strategy and top management support, which affect digital transformation in accounting. Besides, the research model proposed to examine the relationship between digital transformation in accounting and accounting information quality. The paper uses a survey (with 253 respondents) and applies exploratory factor and regression analysis to examine Vietnamese SMEs.
Findings
This paper aims to examine the antecedents of the digital transformation in accounting and its positive impact on the accounting information quality. The research results highlight three factors: the organization's mindfulness, alignment of the organization’s strategy and top management support. In the SMEs, top management may be the one, so the top management in SMEs has a strong influence on the digital transformation in accounting.
Research limitations/implications
There are small sample sizes and not yet guaranteed to cover all business areas of Vietnamese SMEs. Control variables will be added to the research model to evaluate, such as firm size, operation time, sex of top management and age of top management.
Practical implications
The results of this paper provide practical insights into the digital transformation in accounting for business managers, researchers and other stakeholders. Vietnamese SMEs should communicate and educate employees and spend resources to improve the information technology system. It helps to improve the financial accounting quality for SMEs.
Originality/value
To the best of the authors’ knowledge, this study is the first to examine factors affecting digital transformation in accounting and the relationship between digital transformation in accounting and the financial accounting quality of SMEs in Vietnam.
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Nga Quynh Thi Vo, Hien Thanh Thi Dang, Nhat Thong Thi Nguyen and Phuong Kim Thi Tran
This study proposes a serial mediation model to investigate the factors influencing hospitality and tourism (H&T) students' destination choice intentions in an experiential…
Abstract
Purpose
This study proposes a serial mediation model to investigate the factors influencing hospitality and tourism (H&T) students' destination choice intentions in an experiential learning context. By extending the theory of planned behavior (TPB) model to include extended variables and the stimulus-organism-response (S-O-R) theory, this study explores pathways in which experiential learning involvement (IEL) and destination emotions (DE) interact with attitude (ATT), subjective norms (SN) and perceived behavioral control (PBC) to predict H&T students' intentions (ITT). This work also examines the moderating role of destination familiarity (DF) on relationships between destination emotions and attitudes, subjective norms and perceived behavioral control.
Design/methodology/approach
The conceptual model and research hypotheses were each assessed using partial least squares structural equation modeling (PLS-SEM). Paper-based surveys were used to collect data from 715 students majoring in tourism and hospitality training at schools in Vietnam and applying experiential learning activities during their training.
Findings
Research results confirm a serial mediation model wherein IEL and DE promote the formation of intention to choose a specific destination through various pathways: IEL? PBC? ITT; IEL? DE? SN/PBC? ITT and DE? SN/PBC? ITT. In addition, the results show that destination familiarity dampens the relationship between emotions and attitudes as well as with perceived behavioral control.
Practical implications
This study offers practical recommendations for destination management organizations (DMOs) seeking to increase the intention of H&T students to choose their particular destination. These recommendations include: forming strategic alliances with H&T educational institutions; implementing preferential policies like discounted or free admission to attractions and corporate discounts for students; launching targeted digital marketing campaigns on social media platforms and promoting the destination through youth-oriented media such as television shows and music videos.
Originality/value
From addressing the research gap by developing and testing a serial mediation model of destination choice intention of H&T students in an experiential learning context, this study offers new insights into developing scales of constructs in the research model associated with the context of experiential learning and highlights the importance of IEL and DE as a stimulus to achieve ATT, SN and PBC, all of which serve to increase H&T students' intention to choose a destination through different paths under the moderating lens of destination familiarly.
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Quynh Nga Nguyen Thi, Quoc Trung Tran and Hong Phat Doan
This paper investigates how the global financial crisis changes the effects of state ownership and foreign ownership on corporate cash holdings in an emerging market.
Abstract
Purpose
This paper investigates how the global financial crisis changes the effects of state ownership and foreign ownership on corporate cash holdings in an emerging market.
Design/methodology/approach
We employ an interactive term between state ownership (foreign ownership) and a crisis dummy to analyze how the global financial crisis determines the effect of state ownership (foreign ownership) on corporate cash holdings.
Findings
With a research sample including 5,493 observations from 621 listed firms over the period 2007–2017, we find that state ownership (foreign ownership) is negatively (positively) related to corporate cash holdings and the effect of state ownership (foreign ownership) is stronger (weaker) during the crisis period. Moreover, the increase in the effect of state ownership is larger in financially unconstrained firms.
Originality/value
Prior research shows that the effects of state ownership and foreign ownership on corporate cash holdings in emerging markets are still debatable. This paper extends this line of research by investigating how the global financial crisis – an exogenous shock – changes these effects.