Ly Thi Hai Tran, Thoa Thi Kim Tu, Tran Thi Hong Nguyen, Hoa Thi Lien Nguyen and Xuan Vinh Vo
This paper examines the role of the annual report’s linguistic tone in predicting future firm performance in an emerging market, Vietnam.
Abstract
Purpose
This paper examines the role of the annual report’s linguistic tone in predicting future firm performance in an emerging market, Vietnam.
Design/methodology/approach
Both manual coding approach and the naïve Bayesian algorithm are employed to determine the annual report tone, which is then used to investigate its impact on future firm performance.
Findings
The study finds that tone can predict firm performance one year ahead. The predictability of tone is strengthened for firms that have a high degree of information asymmetry. Besides, the government’s regulatory reforms on corporate disclosures enhance the predictive ability of tone.
Research limitations/implications
The study suggests the naïve Bayesian algorithm as a cost-efficient alternative for human coding in textual analysis. Also, information asymmetry and regulation changes should be modeled in future research on narrative disclosures.
Practical implications
The study sends messages to both investors and policymakers in emerging markets. Investors should pay more attention to the tone of annual reports for improving the accuracy of future firm performance prediction. Policymakers should regularly revise and update regulations on qualitative disclosure to reduce information asymmetry.
Originality/value
This study enhances understanding of the annual report’s role in a non-Western country that has been under-investigated. The research also provides original evidence of the link between annual report tone and future firm performance under different information asymmetry degrees. Furthermore, this study justifies the effectiveness of the governments’ regulatory reforms on corporate disclosure in developing countries. Finally, by applying both the human coding and machine learning approach, this research contributes to the literature on textual analysis methodology.
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Ho Hoang Gia Bao, Thi Hai Ly Tran and Thi Thu Hong Dinh
This paper scrutinizes the relationship between idiosyncratic risks and stock returns at different quantiles, especially the extremely low and high ones, to explore the…
Abstract
Purpose
This paper scrutinizes the relationship between idiosyncratic risks and stock returns at different quantiles, especially the extremely low and high ones, to explore the applicability of the Prospect Theory’s rationale in Vietnam’s stock market.
Design/methodology/approach
The Prospect Theory demonstrates that investors’ attitudes towards risks can change from risk-seeking in the loss domain to risk-averse in the gain domain. This can be observed by the negative (positive) connection between idiosyncratic risks and returns for the losing (winning) stocks. To explore if the aforesaid patterns occur in Vietnam’s stock market, this paper employs the quantile regression method which is suitable for inspecting the relationship at the high and low tails of the stock returns.
Findings
The estimation results acknowledge the changes in attitudes towards risks as mentioned by the Prospect Theory.
Practical implications
The negative relationship between idiosyncratic risks and stock returns confirms investors’ risk-seeking behavior in the loss domain, which is in line with the prediction of the Prospect Theory. This behavior may cause worse investment performance as the losing stocks in investors’ portfolios remain overvalued, leading to subsequent negative returns. Therefore, investors should establish and follow their investment disciplines to protect themselves from larger losses.
Originality/value
Existing research found little evidence for the Prospect Theory’s rationale in Vietnam’s stock market, which can stem from the usage of the conditional-mean regression methods. Different from the prior studies, this paper is the first to apply the quantile regression method and provide new evidence supporting the Prospect Theory’s rationale in Vietnam’s stock market.
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Ly Thi Hai Tran, Thoa Thi Kim Tu and Thao Thi Phuong Hoang
This paper examines the effects of managerial optimism on corporate cash holdings.
Abstract
Purpose
This paper examines the effects of managerial optimism on corporate cash holdings.
Design/methodology/approach
The authors construct a novel measure of managerial optimism based on the linguistic tone of annual reports by applying a Naïve Bayesian Machine Learning algorithm to non-numeric parts of Vietnamese listed firms' reports from 2010 to 2016. The paper employs firm and year fixed effects model and also uses the generalized method of moments estimation as robustness checks.
Findings
The authors find that the cash holding of firms managed by optimistic managers is higher than the cash holdings of firms managed by non-optimistic managers. Managerial optimism also influences corporate cash holdings through internal cash flows and the current year’s capital expenditures. Although the authors find no evidence that optimistic managers hold more cash to finance future growth opportunities in general, optimistic managers hold more cash for near future investment opportunities than non-optimistic managers do.
Research limitations/implications
The novel measure proposed in this study is expected to provide great potential for future finance studies investigating the relation between managerial traits and corporate policies since it is applicable for any levels of financial market development. In addition, the findings highlight the important role, both direct and indirect, of managerial optimism on cash holdings. Related future research should take this psychological trait into account to gain a better understanding of corporate cash holding.
Originality/value
This paper helps to extend the literature on managerial optimism measurement by introducing a new measure of managerial optimism based on the linguistic tone of annual reports. Furthermore, this is among the first studies directly linking annual report linguistic tone to cash holding. The paper also provides new evidence regarding how managerial optimism affects the relationship between the firm's growth opportunities and cash holding, given that mispricing corrections are naturally uncertain.
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Ly Thi Hai Tran, Thoa Thi Kim Tu and Bao Cong Nguyen To
This paper aims to investigate the relationship between uncertainty and corporate cash holdings with the moderating role of political connections.
Abstract
Purpose
This paper aims to investigate the relationship between uncertainty and corporate cash holdings with the moderating role of political connections.
Design/methodology/approach
We employ fixed effects estimation on a panel dataset of 669 Vietnamese listed firms over the 2010–2020 period, with one- and two-way standard error clustering. We conduct various robustness tests, including two-stage least squares/instrumental variable and generalized method of moments regressions, alternative cash holding measure, and additional controls for macroeconomic conditions and ownership types.
Findings
The effect of uncertainty on cash holdings is weakened for firms with political connections relative to those without the connections. Although general firms depend on cash flows to adjust their cash holding behavior when uncertainty increases, our findings suggest that politically connected firms do not rely on internal cash flows to accumulate cash when confronted high uncertainty.
Practical implications
Our findings on the role of political connections in moderating the relationship between cash holding and economic policy uncertainty have practical implications for policymaking. Since political connections serve as a buffer for a firm’s liquidity, firms may want to seek those connections, which can, in turn, lead to increasing informal costs and unfair business environment.
Originality/value
This is the first study investigating the role of political connections to the nexus of cash, cash flow and uncertainty, providing novel evidence regarding the less dependence on internal cash flows to save cash by politically connected firms. Second, the paper enriches the literature on the motives of cash holdings by proposing a modified agency view in the context of weak investor protection. Therefore, our findings strengthen the explanation for the positive effect of uncertainty on firms’ cash holdings in emerging markets.
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Phuong Minh Luong, Ly Thi Tran, Huyen Thanh Nguyen, Yen Thi Hai Tran, Giang Hoang Dang and Toan Van Vu
This article reviews the intercultural adaptability (IA) development models for students in South Korea and China in response to the growing internationalisation of higher…
Abstract
Purpose
This article reviews the intercultural adaptability (IA) development models for students in South Korea and China in response to the growing internationalisation of higher education. The article provides significant implications for Confucian heritage culture (CHC) countries and others that wish to enhance in higher education.
Design/methodology/approach
This scoping review systematically investigates the literature on different IA development strategies for students in higher education across these two Asian countries.
Findings
South Korea has promoted the self-growth model reflected in internationalised programmes such as English as a Medium of Instruction (EMI), an international learning environment with an increasing number of international students and student exchange programmes. Through these initiatives, domestic students’ identity and intercultural learning dynamics are enriched in an intercultural learning environment. Meanwhile, China has adopted the “Outward-oriented” higher education internationalisation model to attract international students to study in Chinese universities and entice Chinese returnees through its International Talent Training Programmes. In this strategy, international students are exposed to Chinese language and cultural knowledge development programmes, and Chinese students are motivated to learn the English language and cultures through interactions with their international peers.
Originality/value
Student IA development models in CHC countries remain underexplored. This article responds to the need of higher education institutions in Asian countries that wish to access and learn from effective IA models from other CHC countries. The study makes a valuable contribution by putting forward significant recommendations for developing students’ IA in CHC countries.
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Yaw A. Debrah and Ian G. Smith
Presents over sixty abstracts summarising the 1999 Employment Research Unit annual conference held at the University of Cardiff. Explores the multiple impacts of globalization on…
Abstract
Presents over sixty abstracts summarising the 1999 Employment Research Unit annual conference held at the University of Cardiff. Explores the multiple impacts of globalization on work and employment in contemporary organizations. Covers the human resource management implications of organizational responses to globalization. Examines the theoretical, methodological, empirical and comparative issues pertaining to competitiveness and the management of human resources, the impact of organisational strategies and international production on the workplace, the organization of labour markets, human resource development, cultural change in organisations, trade union responses, and trans‐national corporations. Cites many case studies showing how globalization has brought a lot of opportunities together with much change both to the employee and the employer. Considers the threats to existing cultures, structures and systems.
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Man has been seeking an ideal existence for a very long time. In this existence, justice, love, and peace are no longer words, but actual experiences. How ever, with the American…
Abstract
Man has been seeking an ideal existence for a very long time. In this existence, justice, love, and peace are no longer words, but actual experiences. How ever, with the American preemptive invasion and occupation of Afghanistan and Iraq and the subsequent prisoner abuse, such an existence seems to be farther and farther away from reality. The purpose of this work is to stop this dangerous trend by promoting justice, love, and peace through a change of the paradigm that is inconsistent with justice, love, and peace. The strong paradigm that created the strong nation like the U.S. and the strong man like George W. Bush have been the culprit, rather than the contributor, of the above three universal ideals. Thus, rather than justice, love, and peace, the strong paradigm resulted in in justice, hatred, and violence. In order to remove these three and related evils, what the world needs in the beginning of the third millenium is the weak paradigm. Through the acceptance of the latter paradigm, the golden mean or middle paradigm can be formulated, which is a synergy of the weak and the strong paradigm. In order to understand properly the meaning of these paradigms, however, some digression appears necessary.
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Building on my earlier work (Dang, 2007, 2008), this chapter provides an updated review of the private tutoring phenomenon in Vietnam including the reasons, scale, intensity…
Abstract
Purpose
Building on my earlier work (Dang, 2007, 2008), this chapter provides an updated review of the private tutoring phenomenon in Vietnam including the reasons, scale, intensity, form, cost, and legality of these classes. In particular, this chapter offers a comparative analysis of the trends in private tutoring between 1998 and 2006 using all available data.
Design/methodology/approach
This chapter analyzes data from different sources, including (i) the 2006 Vietnam Household Living Standards Measurement Survey (VHLSS), (ii) the 1997–1998 Vietnam Living Standards Measurement Survey (VLSS), (iii) the 2008 Vietnam Household Testing Survey (VHTS), and (iv) local press in Vietnam. Quantitative methods are used.
Findings
Several (micro-)correlates are examined that are found to be strongly correlated with student attendance at tutoring, including household income, household heads’ education and residence areas, student current grade level, ethnicity, and household sizes. In particular, I focus on the last three variables that received little attention in the previous literature on the determinants of tutoring.
Originality/value
This chapter provides an updated and systematic review of the private tutoring phenomenon in Vietnam. Findings are highly relevant to the ongoing debates on private tutoring among all stakeholders in Vietnam, as well as policymakers/researchers in other countries. Suggestions are proposed on current gaps in the literature for future research.
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Vu Thi Minh-Uyen and Seongah Im
This study examined psychometric properties of the ten-item Connor–Davidson resilience scale (CD-RISC-10) among university undergraduate students in Vietnam.
Abstract
Purpose
This study examined psychometric properties of the ten-item Connor–Davidson resilience scale (CD-RISC-10) among university undergraduate students in Vietnam.
Design/methodology/approach
The study followed a cross-sectional design using a sample of 414 students from multiple universities in Southern Vietnam. Three bilingual experts back-translated the provided scale to verify its content. Factor analyses were used to explore and confirm the scale structure, and item response theory (IRT) model for polytomous responses was selected to further examine individual items and the entire scale.
Findings
Factor analyses confirmed a single-dimensional structure of the CD-RISC-10. IRT analysis demonstrated that individual items and the entire scale reliably measured resilience. However, probabilities to endorse the lowest category were particularly low for most of the items, suggesting a potential to modify the number of the response categories. The overall results indicated that the CD-RISC-10 in Vietnamese was a reliable and accurate tool to measure a range of university students' resilience levels.
Research limitations/implications
Convenience sampling method, the use of self-reported survey and the inclusion of only university students were limitations of the study. However, using IRT to thoroughly examine the CD-RISC-10 was an important contribution to the work of validating research instruments.
Practical implications
The CD-RISC-10 could be a valid, reliable and convenient assessment tool for school psychologists and psychiatrists to use in trainings, counseling services or resilience intervention programs.
Originality/value
While many studies have investigated psychometric properties of the CD-RISC-10 in other languages, none has been conducted in Vietnamese.