Department of Financial and Business Systems

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  • PublicationOpen Access
    The effects of corporate governance on firm performance in the Association of Southeast Asian Nations (ASEAN): A comparative analysis : A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University
    (Lincoln University, 2023) Fernando, Chavika
    Increasing dependence on corporate governance (CG) raises questions about whether corporate governance positively impacts firm performance and whether other variables can change the relationship between corporate governance and firm performance. We investigate the relationship between corporate governance features, including board effectiveness, block ownership, and national governance, on the firm performance of ASEAN-6 non-financial listed firms. We use the fundamental features of CG, such as board size, board independence, gender diversity, CEO duality, institution ownership, foreign ownership, insider ownership, government effectiveness, the rule of law and regulatory quality to analyse their impact on firm performance as measured by return on equity and Tobin’s Q. We use 265 ASEAN-6 non-financial listed firms (2385 firm-year observations) from 2010-2019 and uses OLS estimation and System-GMM estimator to control for the endogeneity issue. The results show that, except for CEO duality and insider ownership, that have no significant impact on performance, the other governance mechanisms significantly influence the performance of ASEAN-6 non-financial listed firms. Specifically, board independence, board gender diversity, governance effectiveness, the rule of law, and regulatory quality significantly positively influence ASEAN-6 non-financial listed firms. The results show a significant negative relationship between block ownership variables and the performance of ASEAN-6 non-financial listed firms. From a theoretical perspective, we emphasise how CG impacts firm performance and uncover the importance of CG systems in ASEAN-6 non-financial listed firms. From a practical perspective, we not only explain the optimal structure of CG that can enhance performance but also identify the moderating impact on board effectiveness, block ownership, national governance and the performance of ASEAN-6 non-financial listed firms.
  • PublicationOpen Access
    Examining the role of personal innovativeness and trust in predicting generation Z’s online booking behaviour
    (Universitas Negeri Surabaya, Indonesia, 2023-04) Hapsari, R; Sabil Husein, A; Gan, Christopher
    This study responds to the Technological Acceptance Model (TAM) critics regarding the model's missing self-regulatory and motivational variables. The research integrates personal innovativeness and perceived risk in the TAM model and explores the interrelationships among those constructs. A self-administered questionnaire was used to collect the data for this study, and 293 consumers of the Indonesia Online Travel Agent (OTA) industry participated. The data were analysed using Partial Least Square, which employed the inner and outer model evaluations to analyse the data. The results demonstrated that Generation Z's attitude toward using the OTA application is positively affected by its perceived usefulness and ease of use. Moreover, three variables significantly affect Generation Z's behavioural intention to use e-commerce applications. Personal innovativeness significantly affects perceived transaction risks and attitudes toward using the OTA application. These results imply that in order to enhance customers’ willingness to keep using the application, the OTA practitioners should ensure that their customers experiencing the ease-of-use dan the usefulness of the application, so that the customers will have a greater willingness to use the same application in the future.
  • PublicationOpen Access
    Using Google Trends to track the global interest in International Financial Reporting Standards: Evidence from big data
    (Wiley-Blackwell, 2023-04) Zhang, Yuqian
    This study proposes a novel method for identifying international accounting differences under International Financial Reporting Standards (IFRS). Using Google Trends data extracted between January 2014 and August 2022, it creates an index, the Global IFRS/IAS Search Index (GISI), which comprises the search activities of 121 jurisdictions for 45 IFRS accounting standards. To assess its relative validity, I classify Nobes' (1983) 14 jurisdictions in addition to 20 OECD countries. The cluster analysis demonstrates that the GISI is a viable alternative for analyzing international differences under IFRS. The results indicate that incorporating big data could be beneficial for examining global accounting issues. A judgmental international classification of financial reporting practices.
  • PublicationRestricted
    Working capital management practices of small and medium-sized businesses in New Zealand : A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University
    (Lincoln University, 2023) Lim, Yew Hock
    Small and medium-sized businesses (SMEs) contribute significantly to a country’s economic growth. As the business environment changes constantly; SMEs need support and guidance on how to address working capital management (WCM) issues. Such knowledge will enable them to implement WCM effectively, increase their competitive advantage, and ensure their ultimate survival. Knowledge of WCM in SMEs, including a greater understanding of the WCM practices that SMEs actually employ and their motivations for, and barriers to, WCM, is needed to help SMEs adapt to ever-changing conditions. WCM is central to a business’s profitability, growth, and survival. However, only some SMEs manage working capital (WC) well. Since the early 1980s, poor WCM has been identified as the primary cause of SMEs’ failure, with approximately half of all SMEs failing within the first five years. WCM involves the management of four key business components: cash, inventory, accounts receivable, and accounts payable. The goal of WCM is to achieve an optimal WC level, where the business’s current assets are sufficient to meet its obligations or current liabilities. While excessive WC incurs opportunity costs, insufficient WC increases the risk that a business cannot meet its short-term obligations. Despite its critical role in business success, scholarly literature has shown that, due to SMEs’ unique characteristics, many SMEs lack identifiable, systematic, and/or effective WCM procedures. WCM for SMEs is often overlooked in previous studies. Given the importance of WCM, this research addresses omissions in the WCM literature by examining the WCM practices of New Zealand SMEs. More specifically, it identifies SMEs’ WCM practices, their motivators for, and barriers to, adopting (effective) WCM practices, and actions that SMEs could take to modify their WCM practices to address potential WCM issues. It contributes through the collection of qualitative data to provide deeper insights. The findings draw on questionnaire responses from 164 SMEs from 15 industries, and 11 interviews with SMEs, located in the Auckland and Canterbury regions. The research found that many of the participating SMEs lacked an understanding of the importance of WCM and had limited knowledge of WCM practices or procedures that could be taken to manage WC more effectively. While some of the SMEs lacked any identifiable systematic processes, others adopted informal, ad-hoc WCM practices and/or only basic WCM techniques. The identified causes are related to barriers such as resource constraints, having a simple business model with low sales volumes, and a lack of knowledge and expertise in financial management. Consequently, rather than spending time to identify and develop systematic WCM practices, most of the SME management teams of this research focused on revenue-generating activities or activities perceived to generate a higher return. This may provide insight into other aspects of WCM outside the scope of this research, including why SMEs are less efficient in managing WC, and why they are more vulnerable to financial crises. The research identifies WCM actions, from WCM planning to daily operations monitoring, that, when implemented will assist SMEs in addressing potential WCM issues and subsequently, improving the effectiveness of their WCM. Given their significant role in local economies, this research’s findings have implications that extend far beyond individual businesses.
  • PublicationOpen Access
    Using accounting information systems to benefit micro businesses : A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University
    (Lincoln University, 2024) Benbow, Pamela
    Ninety percent of all businesses in New Zealand are micro businesses, defined as having zero to five employees. This sector is critical to New Zealand’s economy. Micro businesses create opportunities for new entrepreneurial talents, provide employment and offer consumers choice and variety including specialist goods and services. Central to all businesses is the need for information, managed by the accounting information system (AIS). The AIS supports decision-making, achieving business objectives and managing limited resources. Prior studies and government reports call for further research of micro businesses so that this sector of the economy can be strengthened. This research addresses this call by exploring the benefits of using AIS in micro businesses using multiple methods, including desk-based research, semi-structured interviews with professional accountants, a survey of micro business and finally semi-structured interviews of micro business owners. Findings show that a variety of tools are used, ranging from manual record keeping, to spreadsheets, to computerised AIS, and including a mixture of these tools. The majority of microbusinesses use computerised AIS tools, of which two software providers dominate. Some accounting firms specialise their practice either through industry or choice of AIS. Other accountants accommodate any AIS approach, focusing on the individual micro business needs. AIS use by micro businesses is primarily focused on monitoring cash flow, sales and income activities and compliance reporting (GST and income tax). The greatest utilisation of computerised AIS and add-on tools are observed with these activities. Micro businesses could utilise other features more, especially reporting, as a basis for decision-making. The decision to adopt computerised AIS includes factors affecting the individual business owner (generation, individual knowledge and skill and personal attitude to technology), internal business factors (financial costs, time costs and the business purpose and future) and external business factors (supply chain, regulatory bodies and supporting services). The benefits of using computerised AIS include connectivity, autofill, automated calculations and drilldown. Connectivity through cloud technology provides accessibility to a single version of the data between users regardless of location. Autofill populates data entry screens with information previously captured, reducing the need for typing. Automated calculations automatically completes basic arithmetic in the creation of invoices, supplier bills and reports. Finally, drilldown enables direct access to supporting detail for information provided on screen. These benefits may not be available in older versions of computerised AIS, or versions that only include a subset of the features. This research increases the understanding of factors impacting micro businesses in their decision to implement computerised AIS, and the benefits from doing so. The findings support accountants, government agencies and AIS software developers to devise strategies to support micro businesses. Findings from this research are applicable to micro businesses throughout New Zealand and more globally and will benefit other small businesses outside of the micro definition, both locally and globally.
  • PublicationOpen Access
    Relationship investment and local corruption environment: Evidence from China
    (John Wiley & Sons Australia, Ltd on behalf of Accounting and Finance Association of Australia and New Zealand, 2023-12) Li, Zhaohua; Pan, X
    We examine how firms interact with government officials within a corruption environment. Using corruption convictions to measure the extent of political corruption at the province level and a sample of Chinese listed firms, we find that firms located in more corrupt provinces invest more in building connections than firms located in less corrupt provinces. These results are robust to the instrumental variable approach, adjacent province matching, propensity score matching and alternative measurement of political corruption. We also show that the effect of political corruption is more pronounced in non-state-owned enterprises (non-SOEs), smaller firms, firms with financial constraints and firms without political connections. Additionally, we find that those firms that invest more on connection building are less likely to restate financial reports and have lower financial statement comparability. Overall, the evidence from China is consistent with the political connection view that firms respond to political corruption by investing in relationship building, which contrasts with the evidence from the US.
  • PublicationRestricted
    Remuneration. It affects employees motivation to work and their commitment to work: A dissertation submitted in partial fulfilment of the requirements for a Post Graduate Diploma in Commerce at Lincoln University
    (Lincoln University, 1990) Poplawski, Marek
    This study initially examines theories of motivation that have been applied to world in recent times. Following this examination, the study looks at the ways some of these theories have been applied in a work situation, by studying a small timber firm in Christchurch. The case study showed that each worker in the small timber firm was motivated to work in a different way : i) For the three 'workers' in the firm, the main motivation to work was money; yet other motivators, such as the bonus payment scheme, company t-shirts and sweat-shirts, and increased responsibilities, also act as strong motivators. Some of these were separate to each employee, and were found to be very influential in making each employee work harder. ii) The production manager was not motivated to work primarily by money. He claims that as long as he is able to meet his financial commitments he will be content with what he is being paid. However, other factors in the work environment are important in the motivation of this employee. The challenge of the job, the creativity he is able to apply to the job and the large responsibilities this employee has, are major factors in motivating this man. iii) The owner/operator cares strongly about the fate of this organisation. For this reason he is interested in money as a means of keeping this business running. Part of the motivating force behind this man is the success of his business. He wants to be perceived as a 'successful businessman'. Money in terms of profit is an important goal motivating the owner. He is very proud to be part of this organisation and is extremely glad that he chose this type of firm to operate. Despite this he does not feel totally loyal to the organisation. The main motivating force behind this man is the life style that he is able to live by owning his own business. The flexibility that this affords him is important. The owner/operator is also motivated by the success of his employees. He wants to improve their skills so they can move on to better jobs and lead better lives. Being able to influence the future success of these people, is also a strong motivator. The owner/operator is able to apply different motivating techniques to each worker. These apply to specific things that motivate each employee. The result of applying different motivational techniques to each individual has been that total production is well above that expected from 'normal' employees under 'normal' conditions. It would be expected that in larger firms, such as a national organisations (eg Ministry of Agriculture and Fisheries and the New Zealand Post Office), employers would be unable to apply strategies that appeal to individual workers. Instead 'theories' are likely to be applied that appeal to the majority. The result of this is often dissatisfaction, low worker motivation and low commitment In terms of the ability to motivate individual staff members and promote commitment to the firm, small organisations have a great advantage over large organisations. This study also examines the predictors and outcomes of organisational commitment using Porter's Organisational Commitment questionnaire to survey employees of a small timber firm. The results showed that significant predictors that could be used to assess commitment included absenteeism, desire to remain in the firm, intention to remain in the firm, education, and awareness of the economic situation. Other factors influencing commitment to the firm were aspects of the job itself, fellow workmates, promotional opportunities, supervision and pay.
  • PublicationEmbargo
    The relationship between team structure and technological advancement in Formula One : A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Commerce and Management at Lincoln University
    (Lincoln University, 2023) Thomas, Anisha Andrew
    Formula One is renowned for its global reach, technological advancements, and the skill required to compete at the highest level. While the sport has historically been associated with innovation and the evolution of technology, there is a growing concern that Formula One has become more conservative and risk-averse in recent years, with regulations limiting true innovation. Additionally, financial pressures have shifted the focus towards incremental evolution rather than groundbreaking innovations, leading to a lack of diversity in engine manufacturers and a concentration of power among a few dominant teams. This thesis aims to investigate the role of team structure in determining the level of technological innovation or evolution pursued by Formula One teams. It explores the hypothesis that Entrepreneurial teams are more likely to drive Innovation, while corporate teams tend to focus on evolutionary changes within the sport. By analysing secondary data and conducting statistical analysis, the study examines the historical progression of Formula One, ownership structures within the sport, and the evaluation of technological development encompassing both innovation and evolution. The analysis of the data reveals that radical innovations in Formula One were predominantly driven by Entrepreneurial teams in the early years of the sport. However, as corporate participation increased, revolutionary innovation diminished over time. This contradicts the conventional theory that suggests larger firms with greater capital investments are more successful. Corporate interests, risk aversion, cost control, and profitability concerns have led to stringent rules and regulations that restrict teams' ability to innovate. To reclaim its status as the pinnacle of motorsports, Formula One must shift its focus towards nurturing and supporting entrepreneurial organisations that drive innovation. By fostering an environment that empowers these entities, the sport can rejuvenate its reputation as a breeding ground for groundbreaking technological advancements. While this study provides valuable insights into the relationship between team structure and technological development in Formula One, further research using primary data collection methods and updated information is needed to explore additional linkages and relationships.
  • PublicationOpen Access
    Three essays on CEO expertise power and bank strategic decisions : A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University
    (Lincoln University, 2023) Ali, Maisam
    A CEO's expertise power is a combination of a CEO’s educational background, career path and experience, which influences the critical components of the bank task environment, e.g., bank diversification, bank lending and other financial services, thus, needing a close attention to investigate the CEO’s expertise power and bank key decisions. This thesis comprises three essays on a chief executive officer’s (CEO’s) expertise power and bank strategic decisions using US commercial banks data from 1990-2020. The first essay examines the effect of a CEO’s expertise power on bank diversification. The results show that a CEO's expertise power is positively associated with bank diversification. Market competition and board composition (size and independence) positively moderate this relationship. The results also show that CEO delta and vega are the underlying mechanisms through which expertise power leads to higher diversification. I address endogeneity concerns using the two-stage least squares, Heckman estimation and the Differences-in-Differences approaches and check robustness in several ways. The second essay examines the effect of a CEO’s expertise power on bank lending growth. The result reveals that a CEO's expertise power is positively associated with bank loan growth. Further, the result shows that GDP growth, board size and gender diversity positively and financial crises negatively affect this relationship. In channel analyses, I find that bank opacity (information asymmetry) and CEO delta (CEO pay-performance sensitivity) are the underlying mechanisms through which the CEO’s expertise power is associated with loan growth. I address endogeneity concerns using the fixed effects, generalized method of moments (GMM) and Heckman's two-stage approaches. The third and final essay examines the effect of CEO expertise power on bank tax avoidance. The result shows that a CEO's expertise power is positively associated with bank tax avoidance. The result also finds that diversification and gender diversity negatively and board size and financial crises positively affect this relationship. In channel analyses, the result reveals that CEO delta and vega are the underlying mechanisms through which the CEO’s expertise power is associated with bank tax avoidance. I address endogeneity concerns using the fixed effects, generalized method of moments (GMM), Differences-in-Differences (DID) and Heckman's two-stage approaches. This study enhances the scope of upper echelon theory by examining the implications of CEO characteristics (expertise power) for bank diversification, loan growth and tax avoidance decisions. This study provides a new explanation for bank diversification, loan growth and tax avoidance that will be useful for policymakers in developing bank strategy for CEO appointment that affects bank decisions. This study has several managerial and practical implications. The findings show that expert CEOs are highly skilled managers who can efficiently manage bank risk and other challenges, such as financial crises, reduce bank information asymmetry that improves bank lending, improve bank risk management and performance that generate more cash flows. Thus, CEO expertise contributes to bank stability by making value enhancing decisions.
  • PublicationOpen Access
    Enhancing students’ employability skills and experiential learning through integration of Xero software
    (University of New England, Armidale, 2021-11) Jones, G; Jones, H; Pensiero, D; Beattie, Claire; Gregory, S; Warburton, S; Schier, M
    Introducing XERO Accounting software into a core accounting unit can have many benefits for students, including improving their professional skills and enhancing their employability. However, it is important that students gain knowledge and skills in all aspects of the software as well as understanding the accounting processes that underlie the software’s operations. This paper presents an overview of implementation of Xero software, in a core accounting course, at a regional university in Australia. Student numbers ranged from 24-63 across the semesters studied. We highlight and discuss the processes adopted to appropriately scaffold students’ learning and assessment. We assess the effectiveness of the intervention by observing student engagement with specially developed videos and measuring student results in associated assessment tasks over three offerings of the course. The provision of a suite of learning opportunities, (training and use of excel and Xero accounting software) translated to improved student outcomes on the technologyrelated assessment items. Few students who viewed the learning videos contacted the course teaching team for further assistance, suggesting the videos were an effective resource that provided enhanced learning opportunities for students. These findings provide advice and information regarding the issues associated with integrating accounting software for other teaching teams or institutions considering similar applications in their courses or programs.
  • PublicationOpen Access
    Farmers' perception of and adaptation to climate change: An investigation in Northeast Vietnam
    (Economic Research Institute of Chung-Ang University, 2021) Nong, TT; Gan, Christopher; Hu, Baiding
    This study investigates farmers’ perception of and adaptation to climate change in Thai Nguyen province in the Northeast region of Vietnam. Using a structured survey questionnaire, personal interviews were conducted with 534 farmers in the study province. A multivariate probit model was utilized to examine factors affecting farmers’ choices of adaptation to climate change. The results show that climate change has threatened farmers’ livelihood and agricultural cultivation. Gender, education, farming experience, land, perceived temperature, perceived precipitation, income source, climate information, agricultural training, membership and credit access significantly affect farmers’ choices of different adaptation methods. The results suggest that government should integrate climate change adaptation activities into local development plans. In addition, climate information, agricultural training, and community-based networks should be made available and accessible to all farmers
  • PublicationOpen Access
    A sustainable business model for commercial banks: An empirical study of APEC banks : A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University
    (Lincoln University, 2023) Van, Binh Cong
    Sustainable banking is a topic that has recently attracted the increasing interest of researchers, practitioners, consultants, non-governmental organisations, social bodies and policymakers. This attraction has grown intensively since 1987 when the United Nations officially defined the sustainability concept. It is evident that sustainable business models for banks and sustainable bank performance are two dominant areas in the current sustainable banking research. However, the results of such studies are diverse. For example, there is no consensus on banks' main dimensions of a sustainable business model. More importantly, how bank regulations, such as the Net Stable Funding Ratio (NSFR), affect sustainability performance is still debatable and subject to future research. This study endeavours to partly fill the gap of the dearth of sustainable banking literature by examining banks in the Asia-Pacific Economic Cooperation (APEC) countries. First, we propose a new sustainable business model for the banking sector based on a comprehensive sustainable banking literature review and analyse the operational content of two banks, Triodos and Westpac, as role models in sustainable banking practice. The proposed model called TIMESe comprises six dimensions: technological, institutional, management, economic, social and environmental. We use the TIMESe model to explore the sustainable banking practices of banks in APEC countries. This includes measuring, ranking and tracking the sustainability performance and investigating the impact of the new regulations from the Basel Committee, the NSFR, on bank sustainability performance. Using the TOPSIS method, we measure and rank the sustainability performance of 81 banks in 17 APEC countries from 2015 to 2020. The Bank Sustainability Index (BSI) is used to complete this objective. The index based on the TIMESe model comprises 28 quantitative indicators. The application of the BSI indicator in this study differs from sustainability indexes in previous research because we use the industry standard value as the threshold to conduct sustainability tests to check whether banks are sustainable; almost 56% of our sample banks are unsustainable. Next, we use the Relative Comparison Indicator (RCI) to track the sustainability standing of banks over time. The RCI identifies a bank’s sustainability level as stable, high, or low. From this RCI status, a bank can decide which sustainability policy to apply to maintain or improve its future sustainability performance. Finally, we investigate the impact of the NSFR on bank sustainability performance by exploring data from 40 banks in 11 APEC countries from 2018-2020. The results show that NSFR significantly improved the sustainability performance of 82.5% of the sample banks, especially the 100% sustainable banks. Thus, we recommend applying the NSFR for a more resilient banking system nationally, regionally and globally. This study applies the TIMESe model, the BSI, the sustainability test, the sustainable threshold and the RCI for sustainable banking management practice. These concepts and their applications can be reference points for other production and services industries.
  • PublicationOpen Access
    A CEO's expertise power and bank diversification
    (Wiley on behalf of Accounting and Finance Association of Australia and New Zealand, 2023-02-23) Ali, M; Gan, Christopher; Nadeem, M
    We examine the effect of a chief executive officer (CEO)'s expertise power on bank diversification. Using US bank data from 1990 to 2020, we find that a CEO's expertise power is positively associated with bank diversification. Market competition and board composition (size and independence) positively affect this relationship. We also find that CEO delta and vega are the underlying mechanisms through which expertise power leads to greater diversification. We address endogeneity concerns using the two-stage least squares, Heckman estimation and the difference-in-differences approaches and check result robustness in several ways. We provide a new explanation for bank diversification that is useful for policymakers in developing a bank strategy concerning CEO behaviour in diversification.
  • PublicationOpen Access
    Members' perspectives of good governance practice of Thailand's credit union cooperatives
    (Emerald Publishing Limited, 2023-02-20) Kumkit, T; Dao, L; Gan, Christopher; Hu, Baiding
    Purpose: This study explores the awareness (AWN) levels of good governance amongst Thai credit union cooperatives' (CUCs) members and the factors hindering good governance practice in Thai CUCs. Design/methodology/approach: This study used a survey questionnaire from 629 members of 36 selected CUCs in Thailand. This study analysed the determinants of governance AWN levels of Thai CUCs' members using the ordered probit model. The study also employs OLS estimation to investigate the factors hindering good governance practices. Findings: The study shows that members of different CUC types and sizes have different levels of governance AWN. Members' characteristics, experiences, and perceptions significantly influence CUC members' AWN of governance issues. The findings also suggest that a lack of morality, transparency, participation, responsibility and accountability are key obstacles that hinder good governance practices of Thai CUCs. Originality/value: This is the first study that attempts to assess the level of AWN amongst Thai CUCs' members in different CUC sizes and types. This is also the first research that identifies the factors that hinder good governance practice in Thai CUCs based on members' evaluations. The study's findings provide important reference and implications for Thai policy makers and CUCs' board of managers to enhance members' AWN and CUCs' governance performance, and thus increase income and living standard of CUCs' members in the long term.
  • PublicationOpen Access
    Volatility spillovers between stock market and hedge funds: Evidence from Asia Pacific region
    (MDPI, 2022-09) Fatima, S; Gan, Christopher; Hu, Baiding
    This paper investigates the nature of volatility spillovers between stock returns and hedge funds returns in twelve Asia Pacific countries in the 1997–2018 period. The sample period encompasses sub periods, 1997 Asia financial crisis, 2008 Global financial crisis and 2010 Eurozone crisis; these sub periods were characterised by financial upheavals. We apply the EGARCH methodology to model volatility and volatility spillovers in and between the markets. Our results show that the volatility of stock returns does not affect the volatility of hedge funds returns; however, there are inconsistent evidence of unidirectional volatility spillover from hedge funds to stock market returns.
  • PublicationOpen Access
    Research and development investment and cash holdings of Asian start-up firms: Evidence from economic policy uncertainty : A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University
    (Lincoln University, 2022) Luong, Thi Thanh
    Economic policy uncertainty (EPU) affects firms’ financial decisions (Gulen & Ion, 2016). Scholars argue that firms might confront severe cash shortages and difficulties obtaining external funds during high EPU periods. Therefore, firms are more likely to defer their R&D investment projects and hold more cash when EPU increases. However, given the important contribution of start-up firms to economic growth and job creation, most studies focus on the effect of EPU on R&D investment and cash holdings of mature firms. Several studies have recently investigated if ownership intervenes in the EPU – firms’ R&D investment relationship. However, scholars have paid limited attention to such ownership intervention in start-up firms’ R&D investment. Interestingly, the intervention of ownership in the EPU – firms’ cash holdings nexus has not been addressed. Therefore, further investigation is needed to address if ownership influences start-up firms’ cash holdings decisions in the presence of EPU. The study is the first to investigate the effect of EPU on start-up firms’ R&D investment and cash holdings using a panel dataset of 3,536 start-up firms listed on the Asian start-up markets for the period 2010-2019. In addition, this study examines if institutional and insider ownership intervene in the EPU - start-up firms’ R&D investment and the EPU - start-up firms’ cash holdings relationships using the selected dataset. The study employs the instrumental variable (IV) estimator to control for potential endogeneity problems. The empirical results indicate that EPU positively affects R&D investment of start-up firms in the dataset. Meanwhile, a negative relationship exists between EPU and start-up firms’ cash holdings. The results show that institutional ownership has no effect on the EPU - start-up firms’ R&D investment. However, insider ownership encourages start-up firms to increase R&D investment when EPU is higher. Further, the empirical results reveal a positive effect of institutional ownership on the relationship between EPU and start-up firms’ cash holdings. This means institutional shareholders encourage start-up firms to spend their cash holdings in the presence of EPU. However, insider ownership discourages start-up firms from using their cash holdings when EPU increases.
  • PublicationOpen Access
    Financial accessibility, entrepreneurship, and government initiatives: an investigation of small and medium-sized enterprises in Vietnam : A thesis submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy at Lincoln University
    (Lincoln University, 2022) Phong, Luu
    Small and medium-sized enterprises (SMEs) in Vietnam account for 98% of total enterprises, employ about 40% of the labour force and contribute about 40% to Vietnam’s gross domestic product (GDP). Vietnam’s SMEs grew by an annual average of 14.6% from 2007 to 2019, with an associated average SME loan growth of 14.7% from 2012 to 2019. However, the lending rate to Vietnam’s SMEs then gradually declined from 13.5% in 2012 to 7.7% in 2019. A survey by the Central Institute for Economics Management (CIEM) in 2015 revealed that financial constraint is the top challenge facing Vietnam’s SMEs in growing their business. The survey also highlighted that only 25% of surveyed SMEs applied for a bank loan and over 85% had problems obtaining loan approval. The two significant reasons that Vietnamese SMEs confront credit constraints are complicated government regulations and SMEs' capacity to repay the loans. The literature also shows that SME entrepreneurship is significantly correlated with credit constraints and SME performance. This study investigates the determinants of credit constraints and how these constraints facilitate or hinder SME performance in Vietnam. We also consider the mediating roles of SME entrepreneurship and government support in the correlation between credit constraints and SME performance. We develop a survey questionnaire to collect information from Vietnamese SMEs about financial accessibility, entrepreneurship, government support/constraints, and SME performance. The results show that SME credit constraints are significantly driven by credit demand, perceived credit constraints and SME characteristics (e.g., size, business association membership and corporate social responsibility). We also find that credit-unconstrained SMEs have a higher performance than credit-constrained SMEs. Mediation analysis results confirm the complementary mediating effect of SME entrepreneurship that enhances the positive correlation between credit access and SME performance. Mediation analysis also shows that government support significantly positively affects SME credit access, but there is no strong evidence of the effect of government support on SME performance.
  • PublicationOpen Access
    Enhancing governance practice for better performance of credit union cooperatives in Thailand
    (Wiley, 2022-08-17) Kumkit, T; Gan, Christopher; Anh, DLT; Hu, Baiding
    Credit union cooperatives (CUCs) are member-owned financial organisations that aim to improve the members’ living standards in Thailand. The success of Thailand CUCs is significantly associated with their good governance practices. This study provides an overview of Thailand CUCs’ governance practices and examines the impact of governance on the performance of Thailand CUCs. The study finds Thailand CUCs’ success varies in terms of financial and social performance. The results suggest that Thailand CUCs’ performance is affected by members’ participation, the board of directors, the management team, as well as the organisations’ age and size. This study extends the current limited knowledge on the governance-performance nexus of Thailand CUCs in the literature, thus helping Thailand policymakers and practitioners boost both the financial and social performance of the CUCs in Thailand.
  • PublicationOpen Access
    Financial reporting quality, ownership structure and investment efficiency: An empirical analysis of Vietnamese listed firms : A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University
    (Lincoln University, 2022) Dinh, Thi Ha Thu
    Investment efficiency (IE) is one of the most researched topics in corporate finance in the last 20 years. In an ideal world, firms invest until the marginal benefit of their investments equals the marginal cost. However, because of market imperfections such as information asymmetry, moral hazard and adverse selection, firms may deviate from the optimal level, which results in inefficient investment. Prior research suggests that inefficient investment negatively affects firm performance and leads to higher costs of equity. Given the importance of efficient investment to firm growth and performance, there has been a significant body of literature on the factors affecting IE. However, there is a limited number of studies exploring IE in newly emerging markets such as Vietnam. In order to enrich the literature on IE in emerging markets, this study examines the impacts of two firm-specific characteristics - ownership structure and financial reporting quality (FRQ) - on the IE of Vietnamese listed firms. This study uses four proxies for FRQ and three measures of ownership structure - ownership concentration, institutional ownership and managerial ownership - to test the effects of ownership structure and FRQ on IE. Using unbalanced panel data of 645 Vietnamese listed firms from 2007 to 2018, the results show that FRQ has a positive influence on IE. In addition, institutional ownership positively impacts IE but there is no significant relationship between managerial ownership and IE of Vietnamese listed firms. Ownership concentration also has a positive effect on the IE of Vietnamese listed firms but its effect disappears after we control for the effects of institutional ownership and managerial ownership. The impact of FRQ on IE is stronger in Vietnamese state-owned enterprises (SOEs). However, the impact of ownership concentration, institutional ownership and managerial ownership on IE shows no difference between SOEs and non-SOEs. Finally, ownership concentration and institutional ownership have no significant influence on the relationship between FRQ and IE. Managerial ownership, on the other hand, reduces the positive relationship of FRQ on IE. To the best of my knowledge, this is the first study that investigates the influence of ownership concentration, institutional ownership and managerial ownership on IE as well as the interaction effect of these three measures of ownership structure and FRQ on the IE of Vietnamese listed firms. The results of this study provide some managerial implications and suggestions for Vietnamese listed firms and policy-makers on how to mitigate firm-level investment inefficiency.
  • PublicationOpen Access
    How do infectious diseases affect corporate social responsibility? Evidence from China
    (Emerald Publishing Limited, 2022-05-31) Hoang, HV; Hoang, Khanh; Ho, Linh; Ha, OK
    Purpose: The recent decades have witnessed the rising frequency and severity of infectious diseases in the international context and their detrimental impacts on the corporate world as a result of growing interconnection among nations. This study examines the effect of previous infectious diseases (H5N1, H1N1, and MERS) on the disclosure of corporate social responsibility among listed Chinese firms from 2006 to 2017. Research design: We obtain firm-level financial and CSR data of Chinese non-financial listed firms from CSMAR. The data on corporate governance are collected from Bloomberg financial database. Three infectious diseases under examination are H5N1 (2006-2007), H1N1 (2009-2010), and MERS (2015-2016). This study employs the fixed-effect estimations to account for time-invariant differences among firms in our sample. Findings: We reveal that Chinese firms disclose less CSR information during the time of public health crises, and this impact is more pronounced in small-sized and low-growth firms. Besides, our analysis suggests that Chinese firms are becoming more resilient to infectious diseases. Originality: The study provides new insights into how businesses react to previous epidemics and pandemics at different scales other than the COVID-19 pandemic. Besides, our findings shed light on the dynamic of firms’ CSR engagement during and after the infectious outbreaks. Research implications: The findings provide implications for corporate stakeholders to understand corporate policies under uncertainties and inform vulnerable businesses to develop an appropriate CSR strategy in preparation for future health calamities.