Thi Thuy Anh Vo and Thi Hong An Thai
This study aims to investigate the impact of ownership structure on firm adjustment speed toward the target leverage.
Abstract
Purpose
This study aims to investigate the impact of ownership structure on firm adjustment speed toward the target leverage.
Design/methodology/approach
The study employs a partial adjustment model on a sample of 694 publicly listed firms from 2007 to 2021 in Vietnam.
Findings
The study finds that state and foreign ownerships inhibit the speed at which firms approach their optimal level of debt. Interestingly, this negative association is less pronounced in firms managed by powerful CEOs (duality CEOs; highly experienced CEOs; CEOs who they own or their families possess a large number of shares). Further, state and foreign ownership are found to be positively associated with firm performance. This beneficial impact weakens, however, when firms use more debts.
Originality/value
The outcome reveals that having a powerful CEO on board can help businesses in this emerging market counteract the detrimental effects that foreign and state ownership leave on the process of adjusting leverage.
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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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Viet Anh Hoang, Huu Cuong Nguyen, Ba Thanh Truong, Phuong Uyen Le, Hoang Long Phan and Thi Hong An Thai
Using a substantial sample of U.S.-listed firms’ Seasoned Equity Offerings (SEOs) spanning the period from 2012 to 2017, we examine the relationship between hierarchical…
Abstract
Purpose
Using a substantial sample of U.S.-listed firms’ Seasoned Equity Offerings (SEOs) spanning the period from 2012 to 2017, we examine the relationship between hierarchical complexity and the selection of SEO methods.
Design/methodology/approach
We employ multinomial logistic regression to examine the influence of hierarchical complexity on the choice among various SEO techniques. To strengthen the robustness of our results, we employ a two-stage-least-squares (2SLS) analysis and utilize propensity score matching to address potential endogeneity issues and mitigate self-selection bias, respectively.
Findings
The research indicates that companies characterized by high levels of hierarchical complexity tend to steer clear of accelerated offerings but exhibit a preference for rights offerings over firm commitment offerings. This tendency is plausibly attributed to the impact of hierarchical complexity, which diminishes information transparency and heightens information asymmetry. Furthermore, the study highlights a negative association between hierarchical complexity and firm value following SEOs.
Originality/value
While an expanding body of evidence establishes a connection between hierarchical complexity and various firm- or market-specific activities, to the best of our knowledge, there are no specific empirical studies that have investigated how hierarchical complexity impacts equity offering strategies. Building on the established correlation in previous research between hierarchical complexity, information transparency, and asymmetric information, and recognizing the critical role of information in the selection of SEO methods, our study reveals that hierarchical complexity may diminish information transparency, heighten information asymmetry, and hinder outside investors from fully grasping a firm’s actions and outcomes. Consequently, this influence extends to the methods of offerings chosen by listed companies.
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This experiment investigates the effect of cultural adaptation by American business people on their trustworthiness as perceived by Chinese Indonesians. The sample consists of 140…
Abstract
This experiment investigates the effect of cultural adaptation by American business people on their trustworthiness as perceived by Chinese Indonesians. The sample consists of 140 Indonesian professionals born and raised in Indonesia, who read one of the four stories that differ in degrees of Americans’ cultural adaptation: none, moderate, high using English, and high using the native (i.e., Indonesian) language. The results show that there is no difference among the four adaptation levels on disconfirmation of the adaptor’s stereo types. The high adaptation using English condition is perceived to be more situationally caused than is the high adaptation using the native language condition, which in turn is perceived to be more situationally caused than is the moderate adaptation condition, and the high adaptation using English condition is perceived to be more situationally caused than is the no adaptation condition. The high adaptation using the native language and the high adaptation using English conditions are perceived to be trustworthier than is the moderate adaptation condition, which in turn is perceived to be trustworthier than is the no adaptation condition; these results contradict the findings of some earlier studies but are consistent with those in the cases of Americans adapting to Thais and Japanese in Pornpitakpan (1998), to People’s Republic of China Chinese in Pornpitakpan (2002b), and to Malaysians in Pornpitakpan (2004). Marketing implications are discussed.
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Tuan_Thanh Chu, Thi Thu Tra Pham, Thai Vu Hong Nguyen, Chau Trinh Nguyen, Thi Hong Nhung Vu, Thanh Binh Nguyen and Thi My Hanh Nguyen
This study explores how authentic assessment has helped improve self-perception of leadership skills among business students in a developing society where authentic assessment is…
Abstract
Purpose
This study explores how authentic assessment has helped improve self-perception of leadership skills among business students in a developing society where authentic assessment is not popular.
Design/methodology/approach
Data on self-perception of leadership was collected using the Leadership Skills Inventory. Collected data was analyzed using Principal Component Analysis, two-way ANOVA, and Multiple Regressions.
Findings
Authentic assessment designed toward enriching teamwork positively affects leadership development. Students' involvement in extra-curricular activities fosters the impact of authentic assessment on self-perception of leadership. Female students demonstrate higher self-confidence in leadership, which is surprising to the conventional view of cultural expectations. Work-integrated learning assessment or cross-country real-trade data assessment projects do not trigger gender biases in self-perception of leadership.
Practical implications
Our study emphasizes the importance of group work authentic assessments and a work-integrated approach to authentic assessment design in business education.
Originality/value
The results provide meaningful implications regarding authentic assessment development in business education in a developing country where authentic assessment is not common at high school and university levels.
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Thi Tuan Linh Pham, Guan-Ling Huang, Tzu-Ling Huang, Gen-Yih Liao, T.C.E. Cheng and Ching-I Teng
Online games are widely adopted electronic applications that facilitate flow experiences, which is a highly enjoyable experience for players, thus motivating further engagement in…
Abstract
Purpose
Online games are widely adopted electronic applications that facilitate flow experiences, which is a highly enjoyable experience for players, thus motivating further engagement in online gameplay. During gameplay, players set gaming goals, and they must make cognitive efforts to achieve these goals. However, we do not know how goal-setting and cognitive gaming elements (game complexity and game familiarity) create flow, indicating a research gap. To fill this gap, we use the cognitive gaming elements in the literature and the theoretical elements of goal-setting theory to build a model.
Design/methodology/approach
Conducting a large-scale online survey, we collect 3,491 responses from online game players and use structural equation modeling for data analysis.
Findings
We find that challenging goals, game complexity, game familiarity and telepresence are positively linked to player-perceived flow, explaining 45% of the variance. The new finding is that challenging goals can strengthen the link between game complexity and flow. We also find that telepresence can strengthen the link between game familiarity and flow.
Originality/value
Our study provides the novel insight that gaming goals and cognitive gaming elements can generate player-perceived flow. This insight can help game makers design gaming elements to accommodate players' cognitive efforts to achieve in-game goals, thus creating flow and effectively increasing players' game engagement.
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Nguyen Khanh Doanh, Nguyen Ngoc Quynh and Thi Tuan Linh Pham
The purpose of this study is to examine how use of agriculture information systems could impact farmers' intention to convert from traditional to organic agriculture production in…
Abstract
Purpose
The purpose of this study is to examine how use of agriculture information systems could impact farmers' intention to convert from traditional to organic agriculture production in the mountainous areas of Northern Vietnam, based on a research framework developed from integrating Diffusion of Innovation Theory and Theory of Planned Behavior. Specifically, the authors aim to test the direct impact of use of agriculture information systems on converting intention and the interaction between use of agriculture information systems and perceived economic benefits, perceived non-economic benefits of organic production and market access on the formation of converting intention.
Design/methodology/approach
Data were collected from a sample survey that included 634 agriculture-producing households in Thai Nguyen, Tuyen Quang and Cao Bang provinces of Northern Vietnam. The logistic regression was used for data analysis.
Findings
Research findings indicate that perceived economic benefits, non-economic benefits, market access and use of agriculture information systems positively support the converting intention. Moreover, the use of information systems strengthens the links between the converting intention and perceived economic benefits, perceived non-economic benefits and market access.
Originality/value
This research is innovative in incorporating the use of agriculture information systems as both direct contributor and moderator in converting decisions.
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Gen-Yih Liao, Thi Tuan Linh Pham, Tzu-Ling Huang, T.C.E. Cheng and Ching-I Teng
Online games are prevalent internet applications and are known for satisfying the various needs of users. Nonetheless, little is known about whether online games could be a resort…
Abstract
Purpose
Online games are prevalent internet applications and are known for satisfying the various needs of users. Nonetheless, little is known about whether online games could be a resort for users encountering workplace frustration. Explaining how workplace frustration and users' need satisfaction affect loyalty of online gamers, this study aims to formulate hypotheses and develop a framework based on the self-determination theory (SDT).
Design/methodology/approach
The authors use an online survey to collect 848 responses and use structural equation modelling to test the hypotheses.
Findings
The authors find that workplace frustration, autonomy need satisfaction and competence need satisfaction are positively related to online gamer loyalty. Moreover, workplace frustration enhances the link between competence need satisfaction and online gamer loyalty.
Originality/value
The authors are the first to use SDT to identify the three antecedents and the moderator of online gamer loyalty. Our findings offer a key message that game providers could design effective means to retain their gamers by understanding their gamers' workplace frustration and informing them that playing games could alleviate the associated negative feelings.
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Contrasts the stability of Hong Kong’s currency with the fall of other Asian currencies during the 1997‐1998 crisis and asks whether a Hong Kong‐style currency board could help…
Abstract
Contrasts the stability of Hong Kong’s currency with the fall of other Asian currencies during the 1997‐1998 crisis and asks whether a Hong Kong‐style currency board could help other Asian countries. Discusses the underlying causes of the crisis and compares it with the currency crises of the European Monetary System (1992‐1993) and Mexico (1994‐1995). Considers the advantages and disadvantages of a currency board but concludes that most Asian countries have insufficient foreign reserves, wage/price flexibility or prosperity to benefit from having one.
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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.