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Article
Publication date: 4 March 2021

Nguyen Tuan Anh, Christopher Gan and Dao Le Trang Anh

This study simultaneously explores the nexus among formal, semiformal and informal credit markets and farm households' credit demand determinants in Vietnam.

Abstract

Purpose

This study simultaneously explores the nexus among formal, semiformal and informal credit markets and farm households' credit demand determinants in Vietnam.

Design/methodology/approach

This study uses a multistage stratified random sampling process for a survey of 648 smallholder farmers in the Red River Delta (RRD), Vietnam. The trivariate probit model (TVPM) is used to address the interdependence of farm households' credit demands in different credit markets.

Findings

The results reveal complementary relationships among two pairs of credit markets (formal versus informal and semiformal versus informal). There are dissimilarities among the determinants (household characteristics, household head's characteristics, credit history and geographic factors) of farm households' credit demands in different markets, reflecting segmentation of Vietnam credit markets.

Practical implications

The study's empirical findings are important for policymakers and credit providers to enhance farm households' access to credit for agriculture and to improve the operations of the three credit markets.

Originality/value

This is the first empirical study in Vietnam and one of few in other developing countries simultaneously exploring the determinants of credit demand in and interrelationships among all three credit markets to provide more comprehensive and accurate results.

Details

International Journal of Social Economics, vol. 48 no. 5
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 8 May 2018

Fei Liu, Chao Bian and Christopher Gan

This paper aims to examine whether government intervention acts as a substitution mechanism for laws and institutions in affecting firms’ long-term debt financing decision…

Abstract

Purpose

This paper aims to examine whether government intervention acts as a substitution mechanism for laws and institutions in affecting firms’ long-term debt financing decision and the moderating effect of firm ownership on the relationship between law and finance in Chinese capital market.

Design/methodology/approach

This study uses ordinary least squares with standard errors clustered at the firm level in the regressions. To address the potential endogeneity problem, the authors also use the system generalized method of moments in their estimation.

Findings

The results show that both long-term bank debt and long-term bank debt maturity structure ratios are positively related to government intervention. The results also reveal that with improvement in the legal environment, public non-state-owned firms have more access to long-term bank debt in the regions where the level of government intervention is low.

Research limitations/implications

Government intervention appears to replace laws and institutions in influencing the allocation of financial resources in China.

Originality/value

The finding suggests the necessity of increasing the protection of both creditors and investors, and shows the importance of a free and independent judiciary system in allocating funds to private firms. The results also imply that the non-state-owned Chinese firms also benefit from the improved laws and institutions.

Details

Journal of Asia Business Studies, vol. 12 no. 2
Type: Research Article
ISSN: 1558-7894

Keywords

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Article
Publication date: 14 January 2020

Dao Le Trang Anh and Christopher Gan

The purpose of this paper is to measure profitability and marketability efficiencies as well as examine the efficiencies’ determinants of listed manufacturing firms in Vietnam.

Abstract

Purpose

The purpose of this paper is to measure profitability and marketability efficiencies as well as examine the efficiencies’ determinants of listed manufacturing firms in Vietnam.

Design/methodology/approach

This study employs a bootstrap two-stage data envelopment analysis (DEA) approach to investigate the profitability and marketability efficiencies of 102 listed manufacturing firms on Vietnam stock market from 2007 to 2018. The study also applies fractional regression models (FRM) to identify the determinants of Vietnam manufacturing firms’ efficiencies.

Findings

The results reveal that Vietnam manufacturing firms obtain higher average profitability efficiency scores (0.888) than marketability efficiency scores (0.527) from 2007 to 2018. The high-tech firms achieve better profitability and marketability efficiencies than the traditional (resource-intensive and labour-intensive) Vietnam manufacturing firms in recent years (2016–2018). Further, the financial and non-financial factors have heterogeneous impacts on Vietnam manufacturing enterprises’ profit and market valuation efficiencies.

Research limitations/implications

Due to the nature of DEA technique that requires every decision-making unit to have available data of all inputs and outputs, the listed Vietnam manufacturing firms that have incomplete data or go public after 2007 are not included in the data set.

Practical implications

This study provides a reference for Vietnam manufacturing managers to position their firms competitively in the market as well as make wise operating, financing and management decisions.

Originality/value

This is the first study that attempts to combine bootstrap two-stage DEA and FRM, which are considered advantageous methods for DEA scores’ measurements and determinant evaluations in the current literature.

Details

International Journal of Social Economics, vol. 47 no. 1
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 11 June 2021

Christopher Gan, Dao Le Trang Anh and Quang Thi Thieu Nguyen

This study investigates the psychological impact of the COVID-19 lockdown on Vietnamese people and examines the factors affecting their psychological well-being during and…

Abstract

Purpose

This study investigates the psychological impact of the COVID-19 lockdown on Vietnamese people and examines the factors affecting their psychological well-being during and after the lockdown period.

Design/methodology/approach

Based on the survey answers of 701 Vietnamese respondents, this study explores the psychological impact associated with COVID-19 lockdown in Vietnam. Using a newly developed “mvord” package in R that controls the heterogeneity in error structure of the sample units (Hirk et al., 2020), the study runs multivariate ordinal logistic regression models to examine the determinants of the emotional outcomes.

Findings

The study discloses negative psychological states among the Vietnamese community during and after the lockdown, including boredom, anxiety, sadness, stress, anger, precautionary measures and post-traumatic stress symptoms. Demographic characteristics (male gender, young age, poor-health condition, high educational level, small family size, officers or professionals, using public transport, quarantine experience before the lockdown, non-extended lockdown period and living in rural areas) and various difficulties during lockdown (insufficient information about COVID-19, income loss, having daily-life difficulties and unhappy experiences during lockdown) are related to higher degrees of different psychological symptoms during and after lockdown in Vietnam.

Originality/value

This study identifies the importance of mitigating the detrimental effects of the COVID-19 lockdown on Vietnamese well-being and prepares the Vietnamese government better to handle the public mental issues during future lockdowns.

Details

International Journal of Social Economics, vol. 48 no. 9
Type: Research Article
ISSN: 0306-8293

Keywords

Content available
Article
Publication date: 31 August 2020

Dao Le Trang Anh and Christopher Gan

This study explores the effects of the COVID-19 outbreak and its following lockdown on daily stock returns in Vietnam, a fast-growing emerging market that successfully…

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Abstract

Purpose

This study explores the effects of the COVID-19 outbreak and its following lockdown on daily stock returns in Vietnam, a fast-growing emerging market that successfully revived after the pandemic lockdown.

Design/methodology/approach

This study uses panel-data regression models to evaluate the influence of the daily increase in the number of COVID-19 confirmed cases during pre-lockdown and lockdown on daily stock returns of 723 listed firms in Vietnam from 30 January to 30 May 2020.

Findings

The study confirms the adverse impact of the daily increasing number of COVID-19 cases on stock returns in Vietnam. The study also discloses that the Vietnam stock market before and during the nationwide lockdown performed in opposing ways. Though COVID-19 pre-lockdown had a significant, negative impact on Vietnam's stock returns, the lockdown period had a significant, positive influence on stock performance of the entire market and the different business sectors in Vietnam. The financial sector was hardest hit on the Vietnam stock market during the COVID-19 outbreak.

Research limitations/implications

The study indicates investors' confidence and trust in the Vietnam government's decisions to combat COVID-19 and favorable stocks prices were the main reasons that the Vietnam stock market rebounded during and after lockdown.

Originality/value

This is the first study to examine the impact of COVID-19 during the pre-lockdown and lockdown periods on stock performance in Vietnam, a rapidly developing economy that was successful in controlling the pandemic with a rejuvenated stock market after lockdown.

Details

Journal of Economic Studies, vol. 48 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

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Article
Publication date: 28 February 2019

Liqiong Lin, Mohamad Dian Revindo, Christopher Gan and David A. Cohen

The rapid growth of credit card use in China poses the potential for card overuse and the accumulation of increased debt. The purpose of this paper is to report on an…

Abstract

Purpose

The rapid growth of credit card use in China poses the potential for card overuse and the accumulation of increased debt. The purpose of this paper is to report on an investigation into the determinants of overall credit card spending and card-financed debt by Chinese consumers.

Design/methodology/approach

This study focusses on two dependent variables: credit card monthly spending and card debt. The spending measure is based on consumer outlay for the month preceding the survey. Card debt is the consumers’ outstanding credit card debt when the survey was conducted. Three groups of independent measures are used: socio-demographic characteristics, card features and consumer attitude towards money. Both card spending and card debt are estimated with OLS methods. Data was obtained from the 2013 China Household Finance Survey of 1,920 households in 29 provinces and 262 counties across China that used credit cards over the survey period.

Findings

The empirical findings suggest consumers’ attitude towards money is more important in explaining card spending and debt variation than socio-demographic characteristics and card features. The credit limit set for a card, obligations to other loans and the method of paying for ordinary shopping exhibit positive effects on both card spending and card debt, while age exhibits a negative effect. Further, card spending is positively correlated with card debts, but the factors that determine card spending do not necessarily affect card debt and vice versa. Minimum card debt payments, cash advances, card tenure and interest-bearing debt have no effect on card spending but have positive effects on card debt. In addition, gender and income have opposite effects on card spending and debt.

Practical implications

The relationships we have documented suggest several actions the Chinese Government could consider dealing with credit card debt risk. Controlling the aggressive promotional campaigns that card issuers use to attract consumers and aggressive credit policies should be a focus of attention. The Chinese Government might, for example, impose minimum age and income requirements for granting credit cards and prohibit issuance of new cards to applicants who are already in debt with other types of credit. In addition, more stringent criteria to curb increases in card limits and tighter control over cash advances made on cards should be applied. Minimum payment amounts can also be increased in order to reduce credit card debt risk.

Originality/value

Despite ample documentation of consumers’ credit card behaviour, the literature is deficient in at least two areas of enquiry. First, most previous research has investigated either credit card spending behaviour or card debt, but not both. Second, with few exceptions, most research has investigated a range of specific factors that affect credit card use. In contrast, this study investigates card spending as well as card debt behaviour using a wide variety of consumer dimensions particularly relevant to credit card use and resulting debt. In addition, this study focusses on Chinese consumers, who traditionally prefer to save first and delay spending. The impact of the rapid growth of credit card use on this traditional Chinese orientation towards spending is dynamic. Documenting the influence of the individual factors examined in this study is likely to be of value to both policy makers and institutions that offer and manage credit in this changing environment.

Details

International Journal of Bank Marketing, vol. 37 no. 2
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 6 August 2018

Weizhuo Wang, Christopher Gan, Zhiyou Chang, David A. Cohen and Zhaohua Li

This paper aims to develop and estimate a logit model of whether homeownership could be promoted by participation in and use of the Housing Provident Fund (HPF) program…

Abstract

Purpose

This paper aims to develop and estimate a logit model of whether homeownership could be promoted by participation in and use of the Housing Provident Fund (HPF) program, with a focus on factors that influence the use of HPF loans.

Design/methodology/approach

This paper develops and estimates a logit model of whether homeownership could be promoted by participation in and use of the HPF program, with a focus on factors that influence the use of HPF loans.

Findings

The results show that coefficients of marital status, educational level, age, duration of employment and employer are significantly related to the use of HPF loan for homeownership.

Research limitations/implications

Because of the chosen research approach, the research results may lack generalizability.

Practical implications

The research findings provide a better understanding of homeowners’ characteristics.

Originality/value

To manage the HPF program effectively, it is important for government to have a better understanding of the underlying demand for homeownership, especially with respect to the different demographic variables and accessibility to HPF loans and the HPF.

Details

Journal of Asia Business Studies, vol. 12 no. 3
Type: Research Article
ISSN: 1558-7894

Keywords

Content available
Article
Publication date: 8 July 2021

Quang Thi Thieu Nguyen, Dao Le Trang Anh and Christopher Gan

This study investigates the Chinese stocks' returns during different epidemic periods to assess their effects on firms' market performance.

Abstract

Purpose

This study investigates the Chinese stocks' returns during different epidemic periods to assess their effects on firms' market performance.

Design/methodology/approach

The study employs an event study method on more than 3,000 firms listed on Shanghai and Shenzhen stock exchanges during periods of SARS, H5N1, H7N9 and COVID-19

Findings

Epidemics' effect on firms' stock returns is persistent up to 10 days after the event dates. Although the impact varies with types and development of the disease, most firms experience a negative impact of the epidemics. Among the epidemics, COVID-19 has the greatest impact, especially when it grows into a pandemic. The epidemics' impact is uneven across industries. In addition, B-shares and stocks listed on Shanghai Stock Exchange are more negatively influenced by the epidemic than A-shares and those listed on Shenzhen Stock Exchange.

Research limitations/implications

The results of the study contribute to the limited literature on the effects of disease outbreaks as an economic shock on firm market performance. Given the possibility of other epidemics in the future, the study provides guidance for investors in designing an appropriate investing strategy to cope with the epidemic shocks to the market.

Originality/value

The research is novel in the way it compares and assesses the economic impact of different epidemics on firms and considers their impact at different development stages.

Details

China Finance Review International, vol. 11 no. 3
Type: Research Article
ISSN: 2044-1398

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Article
Publication date: 20 January 2021

Wittawat Hemtanon and Christopher Gan

The purpose of this paper is to analyze the impact of microfinance programs on the income and food expenditure of farm and nonfarm households in Thailand.

Abstract

Purpose

The purpose of this paper is to analyze the impact of microfinance programs on the income and food expenditure of farm and nonfarm households in Thailand.

Design/methodology/approach

The study employs secondary data from the Thai Socioeconomic Survey (cross-sectional data from 2017 and panel data from 2012 to 2017). The cross-sectional data (2017) include 43,210 households. Panel data from the 2012 and 2017 Socioeconomic surveys (SES surveys) include 4,406 households. The estimation methods include propensity score matching (PSM) and a fixed effect (FE) model.

Findings

The result shows that village funds (VFs) have a significant negative impact on income and food expenditure for both farm and nonfarm households. The empirical results reveal that the saving groups for production (SGPs) effects are positively significant in terms of income and food expenditure, but only for farm households. The FE model result also shows that while VFs have a negative impact on income they have a positive impact on food expenditure for farm households. In contrast, SPGs have no impact on both farm and nonfarm households' income and food expenditure.

Practical implications

Farm and nonfarm households require both welfare and microfinance programs. Microfinance programs can only help these households once they have the necessary education. The government should provide social programs and business skills for these households; completion of these courses should be a pre-requisite for accessing microfinance programs.

Originality/value

This study is unique because it reveals the microfinance impact between VFs and SGPs programs so that most low-income and poor people in Thailand can access basic financial services.

Details

Agricultural Finance Review, vol. 81 no. 5
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 18 August 2020

Nguyen Tuan Anh, Christopher Gan and Dao Le Trang Anh

This study investigates the short-run and long-run impacts of agricultural credit on Vietnam's agricultural GDP over the period 2004:Q4–2016:Q4, with the incorporation of…

Abstract

Purpose

This study investigates the short-run and long-run impacts of agricultural credit on Vietnam's agricultural GDP over the period 2004:Q4–2016:Q4, with the incorporation of agricultural labor, public investment and rainfall as important determinants of agricultural GDP.

Design/methodology/approach

This study applies the indicator saturation (IS) break tests and the autoregressive distributed lag (ARDL) bounds test with structural breaks to examine the credit–agricultural performance nexus. The causal relationships among variables are explored through the Toda–Yamamoto Granger causality test.

Findings

The results indicate that agricultural credit positively influences agricultural GDP in both the short-run and long-run. A unidirectional causal relationship running from credit to agricultural GDP is confirmed. The results also discover the positive and significant effects of labor and rainfall on agricultural GDP in the long-run.

Practical implications

The results imply that the government should focus on expanding agricultural credit as well as enhancing the efficiency of agricultural credit. Furthermore, formal credit institutions should be encouraged to work closely with farmers and agricultural enterprises to offer flexible lending periods and amounts to meet the real situation of agricultural production.

Originality/value

This study is the first to examine the credit–agricultural performance relationship at the macro-level in Vietnam. Based on the empirical results, the study provides crucial implications for policymakers to optimize the effectiveness of agricultural credit and enhance nationwide agricultural performance.

Details

International Journal of Social Economics, vol. 47 no. 9
Type: Research Article
ISSN: 0306-8293

Keywords

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